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FEBRUARY 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Meet the trust department people who can make MNB work for you. Frank Ceynar Our trust department will help you and your customers deal with today’s increasingly complex tax and estate structures. Among the many trust services we offer: Administration and execution of estates; trustee for living trust, trustee for trust under will, trustee for life insurance trust, agency and custodian services, estate plan- ning, trustee of employment benefit accounts, corporate accounts and trustee for investment management, For knowledgeable, dependable planning, call on one of MNB’s trust experts... Dick, Ed, Frank or Hugo will make MNB work for you. The num ber to call is 319-398-4224 or toll free 1-800-332-5991. Make sure you g et th e b e st by callin g on e of MNB’s C orrespondent Banking P rofession als. John E. Mangold Terry Martin Jerry N. Trudo Mark W. Christen Dale C. Froehlich Senior Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President (319) 398-4313 (319) 398-4320 (319) 398-4306 (319) 398-4315 (319) 398-4314 Stan R. Farmer Assistant Vice President (319) 398-4217 OUR PEOPLE MAKE IT WORK Merchants National Bank Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOW A’ BANK Meet a few o f the somebodies who set the standards. M e et M o rrie H a u ltm a n , Je n n y Spenger, W a lt H a m m o n d , A r t H a n s o n , K en L o k k e n , M a rc ie B o ro w ic k , a n d a b o u t 30 o th e r s p a rk lin g faces. T h e y 're fro m all over. F rom St. P a u l, M ia m i, P o r tla n d , S y ra cu se , a n d a b o u t 42 o th e r cities a n d to w n s fro m c o a s t to c o a st. T h e y a re th e so m e b o d ie s w h o set th e s ta n d a rd s . You see, n o m a tte r h o w m u c h w e ta lk a b o u t o u r p ro d u c ts , o r p ro m is e service a n d q u a lity , w h e n it gets rig h t d o w n to it, it's th e p e o p le w h o m a k e th e d ifference. I t’s p e o p le w h o set th e s ta n d a rd s . So, w e ’d lik e to p u b lic ly th a n k th ese p e o p le w h o b rin g so m e th in g to D eluxe each d a y th a t w e th in k m a k e s all th e d iffe re n c e in the w o rld . T h e ir s ta n d a rd s . WWf DELUXE CHECK PRINTERS, INC SALES HDQTRS ■P.0. BOX 43399, ST. PAUL, MN. 55164 ■STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 A FEBRUARY 1980 • 87th Year • No. 1397 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES MEMBER OF AUDIT BUREAU OF CIRCULATION > MEMBER BANK MARKETING ASSOCIATION ON THE COVER The tranquil, nostalgic scene portrayed on the cover is reproduced from a water color.by Nebraska-born artist James R. Hamil. He was commissioned by The Omaha National Corporation to paint several watercolors to illustrate the essay titled, “Nebraska: The Pioneer Dream,” which was prepared by a noted Nebraska historian, Dr. Robert N. Manley, especially for The Omaha National. Their essay and watercolors were reproduced as a 12-page supplement to the holding company’s 1978 annual report. A review of that report was published last mid year by the Northwestern Banker. The original watercolors have been framed and are on display in executive offices of The Omaha National. MORTGAGE OUTLOOK 21 Sales delayed— not lost W. L. Hemphill says loans eventually will be made 22 Usury ceilings must go! Dr. Wayne Dobson likens them to price control 23 Dropping usury a positive step Leon Kendall sees free flow of mortgage money 24 Mortgage money like fuel Expensive, volatile, scarce states Robert Waldo 25 Mobile home ownership Nationwide survey profiles average owner OTHER FEATURES 26 I BAA 50th convention 2,500 expected in San Francisco for Golden Anniversary 28 I BAA success story Three strong secretaries, strong membership support 30 A look at the 1980s Two more executives comment on the decade ahead DEPARTMENTS 6 10 18 35 36 Calendar Bank Promotions Corporate News Minnesota Twin Cities 46 51 53 54 55 56 Illinois South Dakota North Dakota Montana Colorado Nebraska 58 64 66 69 82 88 Omaha Lincoln Wyoming Iowa Des Moines Advertisers’ Index NORTHWESTERN BANKER 30615th Street, Des Moines, Iowa50309 Phone (515) 244-8163 Publisher E ditor Business Manager A ssociate E ditor Malcolm K. Freeland Ben Haller, Jr. Mike Freeland Deborah Peck A uditor Field R epresentative Debbie Hibbert Glen Hicks Field R epresentative Paul Masters No. 1397 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of address Form 3579, manuscripts, mail items) to above address. Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W HEN IT CO M ES TO BETTER CO IN DISPENSING,W E ARE THE CO M PETITIO N Pictured in the foreground is our new Model 580 — the most advanced coin d isp en se r Brandt, Inc. has ever developed. Behind it is our sales team’s most formidable obstacle . . . an earlier generation of Brandt, Inc. coin dis penser, typical of the units which endure year after year, reliably dis pensing coin at a prodigious rate. You may question why we draw this comparison. The reason is simple. This is 1980. And to meet the needs of modern banking, the 580 is unsurpassed. The 580 accommodates the new dollar https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis coin and is able to dispense change from 10 to $4.99 on command. Its tenkey pad is easy to operate and a lighted electronic display provides clear visual verification of each transaction. And here’s another advantage the Model 580 offers: a built-in adding machine function! That means your teller can now perform addition and subtraction right on the 580 . . . eliminating the need for a separate adding machine . . . no more turning away from the customer to complete a transaction! And, of course, there’s your choice of delivery: chute, envelope spout or “ trap door’’ arrangements. But don’t take our word for it. Try a Brandt, Inc. 580 wherever you dispense coin. We’re convinced you’ll find it signif icantly better than your present coin dispenser. Even if it’s one of ours. Brandt, Inc. has a better way. Brandt Brandt, Inc. W atertown, Wl 53094 Brandt® Cashier® Countess® Convention Calendar ABA—American Bankers Association AIB—American Institute of Banking BAI — Bank Administration Institute BMA— Bank Marketing Association IBAA— Independent Bankers Association of America NABW— National Association of Bank Women, Inc. RMA— Robert Morris Associates National Conventions & Schools Feb. 19-22—ABA Bank Investments Con ference, Los Angeles Bonaventure, Los Angeles. Mar. 2-5— National Automated Clearing House Assn. Annual Conference, The Adams Hotel, Phoenix. Mar. 9-13— IBAA 50th Annual Convention, San Francisco Hilton, San Francisco. Mar. 12-14— BAI 1980 Check Processing Conference, Crown Center Hotel, Kan sas City, Mo. Mar. 16-19— BMA Community Bank CEO Seminar, Del Webb’s Mountain Shad ows, Scottsdale, Ariz. March 23-26— BMA Advertising Confer ence, Hyatt Regency Cambridge, Cam bridge, Mass. March 26-28— BMA Public Relations Con ference, Hyatt Regency Cam bridge, Cambridge, Mass. Mar. 29-Apr. 1—Assn, of Reserve City Bankers 69th Annual M eeting, Boca Raton Hotel & Club, Boca Raton, Fla. Apr. 13-16— ABA National Instalment Cred it Conference, Sheraton Park, Washing ton, D.C. Apr. 23-25—ABA Governing Council Meet ing, The Greenbrier, W hite Sulphur Springs, W. Va. Apr. 27-30—ABA National Marketing Con ference, Americana Bal Harbour, Miami Beach. Apr. 27-30—Conference of State Bank Su pervisors Annual Convention, MGM Grand Hotel, Las Vegas. May 7-10— NABW Western/Rocky Moun tain Regional Conference, Doubletree Inn, Tuscon, Ariz. May 11-14—ABA Northern Regional Bank Card Conference, The Fairmont Hotel, New Orleans. May 15-18— NABW Northwestern Regional Conference, Red Lion Motor Inn, Portland, Ore. May 18-21—ABA National Operations & Automation Conference, New York Hil ton and Sheraton Centre, New York City. May 24-29— AIB Annual Convention, Hyatt Regency, New Orleans. May 25-30— BMA School of Trust Sales and M arketing, University of Colorado, Boulder. May 25-June 6 — BMA School of Bank M arketing, University of Colorado, Boulder. June5-7— Assn, of Bank Holding Compan ies 22nd Annual Meeting, Williamsburg Inn, Williamsburg, Va. June 16-18— NABW Tri-Regional Confer ence, (North Central, Lake and Midwest regions) Pfister Hotel and Tower, Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Milwaukee, Wis. Sept. 14-17— BMA 65th Annual Conven tion, San Francisco H ilton , San Francisco, Calif. Oct. 5 -8 — NABW Annual C onvention, Washington, D.C. Oct. 11-15—ABA106th Annual Convention, Chicago. Nov. 9-12— RMA 66th Annual Fall Confer ence, Stouffer’s Riverfront Towers, St. Louis, Mo. State Conventions & Schools Colorado: Feb. 17-20— Colorado Bankers Association Consumer Credit Conference, Broad moor Hotel, Colorado Springs. Mar. 2-5— Colorado Bankers Association Ag Credit Conference, Broadmoor Hotel, Colorado Springs. June 5-7— Colorado Bankers Association 79th Annual Convention, Broadmoor Ho tel, Colorado Springs. Illinois: Mar. 4— IBA Gp. 7, Holiday Inn, Charles ton. Mar. 5— IBA Gp. 10, SIU, Carbondale. Mar. 6— IBA Gp. 9, Augustine’s, Belleville. Mar. 18— IBA Gp. 4, Emerald Hills Country Club, Sterling. Mar. 19— IBA Gp. 3, O’Hare Hyatt Regency Hotel, Chicago. Mar. 20— IBA Gp. 2, Holiday Inn South, Joliet. Mar. 21— IBA Gp. 1, Chicago. Mar. 25— IBA Gp. 5, Holiday Inn East, Springfield. Mar. 27— IBA Gp. 6, Continental Regency, Peoria. June 8-10— Illinois Bankers Association 89th Annual Convention, Stouffer’s Ri verfront Towers, St. Louis, Mo. Iowa: Feb. 17-18— Gp. 11, Holiday Inn, Burling ton. Feb. 20-21— Marketing Conference, Hilton Inn, Des Moines. Mar. 2-4 — State Legislative V is it, State Capitol, Des Moines. Mar. 17-19— Ag Credit Conference, Sche- man Continuing Education Center, Ames May 5— Gp. 8, Davenport. May 6— Gp. 4, Dubuque. May 7— Gp. 7, Marshalltown. May 8— Gp. 3, Clear Lake. May 19— Gp. 5, Council Bluffs. May 20— Gp. 6, Des Moines. May 21— Gp. 2, Fort Dodge. May 22— Gp. 12, Okoboji. June 9-20—Ag Credit School, Iowa State University, Ames. June 15-20— Iowa School of Banking, Uni versity of Iowa, Iowa City. Sept. 21-23 — 94th Annual Convention, Civic Center, Des Moines. Minnesota: Mar. 4-6— Ag Workshops (3), Statewide. Mar. 11-13—Ag Workshops (3), Statewide. Mar. 18-19— Marketing Conference, Radisson South, Bloomington. Apr. 22-23— Lending Conference, Radisson Hotel, St. Paul. May 5-8—Washington Legislative Trip. June 16-17—90th Annual Convention, Du luth Arena Auditorium, Duluth. June 22-27— Minnesota School of Banking, St. Olaf College, Northfield. Montana: Feb. 16— Teller Symposium, Great Falls. Feb. 23—Teller Symposium, Missoula. Feb. 28-29— Bank Director Seminar, Bill ings. Mar. 23-24— Bank Presidents Conference, Sheraton Hotel, Great Falls. June 25-27 — 77th Annual C onvention, Broadmoor H otel, Colorado Springs, Colo. Nebraska: Feb. 27-28— Personnel Conference, Kear ney. Mar. 26-27— Executive Council Meeting, Kearney. Mar. 27-28— Ag Outlook Conference, Kear ney. Apr. 8—Teller Training Symposium, Nor folk. Apr.9—TellerTraining Symposium, Omaha Apr. 10—Teller Training Symposium, Lin coln. May 4-6—83rd Annual Convention, Hilton Hotel, Omaha. June 7-11—Washington Legislative Visit. North Dakota: Feb. 20-22— Bank of North Dakota MidWinter Break, Kirkwood Motor Inn, Bis marck. Mar. 17-19—Washington Legislative Visit. Mar. 26-27— Consumer Credit Conference, Kirkwood Motor Inn, Bismarck. May 19-20—95th Annual Convention, KirkWood Motor Inn, Bismarck. June 8-13— School of Banking, University of North Dakota, Grand Forks. July 20-25— Upper Midwest Ag Credit Con ference, Medora. South Dakota: May 11-13—88th Annual Convention, How ard Johnson’s, Rapid City. “I really don’t see how you stand it — on your feet all day long.” Wyoming: Mar. 20-21— Instalment Loan Conference, Cheyenne. Apr. 20-22— Biennial Washington Trip. June 1 1-13— 72nd Annual C onvention, Jackson Lake Lodge, Moran. 7 First Chicago Offers Corporate Programs FFICIALS at First Chicago Cor poration have developed and are O now marketing a cash management program to assist corporate manage ments in combatting high interest rates and inflation. The consultive approach is PIC AM —Program for Improved Cash Management—and balances the experience and know ledge of corporate management with the objective overview and expertise of First Chicago consultants. First Chicago has designed special manuals and data collection forms to identify and analyze float. The first PI CAM project designed by First Chicago was for I.T.T. and is expected to save that corporation several million dollars, according to First Chicago spokesmen. The pro ject was conducted in six phases over an 18 month period. The first follow up phase concluded in late December, 1979, and the net effect, according to the two firms, will be to improve cash management techniques on a scale not yet achieved in private industry. Although PICAM was designed for a large, multi-product/multi-division organization, it is not limited to corporations of that scope, according to First Chicago, which is currently developing many PICAM features for a variety of corporate customers. First Chicago’s cash management division also is offering companies that use lockboxes the opportunity to use its Collection Evaluator at no charge. This system helps companies regularly and simply gauge the effectiveness of their lockbox loca tions and direct customer payments to the one th a t provides earlier collection time. The Collection Evaluator also gives an overview of the com pany’s to tal collection system. It allows the company cash manager to evaluate each collection point in terms of average dollar float and reports changing mail times and bank availablity schedules. The usual subscription price for Collection E valuator is $1,000 annually; however, First Chicago is offering companies use of the system for one quarter at no charge, after which the company may continue to subscribe at the normal rates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in downtown Minneapolis ... where all the action is Your satifaction is our concern . . . That's why all 575 guest rooms have been completely refurbished and reconstructed. Add to this, our Polynesian dining and enter tainment, and distinctive block-long lobby and expansive, yet flexible meeting space for 20 to 2300, magnificant restaurants, near the famous Nicollet Mall and Orchestra Hall, plenty of parking plus excellent airport service . . . and you'll know what makes the Leamington special. For your meeting cal! 612-370-1100, Sales Dept. Third Avenue at Tenth Street So. Minneapolis, Minnesota 55404 Northwestern Banker, February, 1980 8 Continental Bank Spearheads Formation Of ATM Network with 69 Other Banks ONTINENTAL Illinois National Bank and Trust Company and other Chicago-area banks are negoti ating the formation of a joint venture to operate a $3.6 million electronic banking network for off-premises automated teller machines in north eastern Illinois. The current discussions with more than a dozen banking companies representing 69 banks, according to W illiam D. Plechaty, senior vice president and head of Continental’s personal banking services, are con tinuing as the interested banks assess their individual requirements for a system serving Cook and its five adjacent counties. A new state law effective January 1, 1980, permits banks to expand the use of the ATM, which is expected to help satisfy growing customer re quirements for convenience and lead to lower business costs. Mr. Plechaty predicted that a sys tem of 30 ATM’s could become opera tional by the second half of 1980, eventually serving as many as 400,000 households. Although Continental has devel oped the joint-venture proposal and initiated discussions with the banks, Mr. Plechaty said that Continental would have only a minority interest in the proposed network. In addition to providing all mem bers with a voice in the establishment and operation of the program, Mr. Plechaty cited other advantages of Continental’s shared-network pro posal. While lowering the cost of operation by spreading fees and risks among its participants, the system makes it possible for members to “ piggy-back” on the advertising efforts of each other through a com mon card design and identity pro gram. Mr. Plechaty said other interested banks can join the discussions. “We foresee the system being offered on a fee basis to banks that may want to participate but are unable or un willing to put capital into the pro gram.” C and Rural M anagem ent education programs. The Farm and Ranch Management courses will give the individual in tensive training and instruction in the aspects of the management of farm and ranch properties. It is rec ommended for m anagers, owners, consultants and the decision maker. Two seminars aimed at the profes sional rural appraiser are planned: “Transitional Use/Scenic Easements Appraisal” Seminar, Boise, Idaho, March 17, 18; and “Minerals Ap p ra isal” Seminar, Denver, Colo., September 25, 26. The third seminar is designed for the professional farm manager: “Consultant or Manager? The Role of the Professional in the ’80s,” March 10, 11, Bettendorf, la. The American Society of Farm Managers and Rural Appraisers is a national professional agriculture society with over 3,800 professional farm-ranch managers, rural apprais ers and agriculture consultant mem bers throughout the United States and Canada. I t’s office is headquar tered in Denver. “Survival for the 80s” is the theme of the Bank Marketing Association’s annual Community Bank CEO Seminar to be held March 16-19, 1980, at Del Webb’s Mountain Sha dows Resort in Scottsdale, Ariz. The seminar is designed exclusively for chief executive officers of banks with assets up to $150 million. The three-day agenda will address potential threats to bank earnings in the 1980s and the necessity for disci plined, tight controls with well-devel oped marketing plans for maintain ing or increasing bank earnings. R egistration fee is $325 (BMA member discount fee, $275). The spouses registration fee is $60. En rollment has been limited to ensure the right environment to meet and talk with peers from other commun ity banks. In previous years there have been w aiting lists for the seminar. For more inform ation contact Michael A. Lindahl, director, Com m unity Bank D epartm ent, Bank M arketing A ssociation, 309 W est W ashington S treet, Chicago, IL 60606; 312/782-1442. American Express Buys First Data Resources Express Company, A MERICAN New York, announced last month it has acquired First Data Resources Inc., an Omaha-based processor of credit and debit card transactions, for approximately $50 million in cash paid over the next four years, plus additional amounts based on future earnings. “ The acquisition of F irst D ata Resources will add important new services which complement those American Express has provided to the financial services industry for many y e a rs,” said Jam es D. Robinson, III, chairman of the board of American Express Company. “ It is a logical and compatible step in our long term objectives to broaden the range of services American Express can offer to financial institutions.” Mr. Robinson said, “First Data Resources is in the business of providing sophisticated data based services and has shown a capacity 1980 Rural Appraisal during the past 10 years to be an Seminar Dates Set innovative leader in this rapidly The American Society of Farm growing field.” Managers & Rural Appraisers has First Data Resources, one of the announced its 1980 Rural Appraisal larger processors of credit and debit Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Plan CEO Conference In Scottsdale card accounts in the United States, offers data entry services, descriptive billing and mailing services, card embossing, authorization and securi ty services to approxim ately 130 financial service institutions in 38 states. It also provides sim ilar services for several air lines and retail stores. In 1979, the company processed about 250 million card transactions. First Data Resources will operate as a wholly owned subsidiary, and currently employs approxim ately 2,000 people at operating centers in Omaha, Denver, Atlanta and San Mateo, Calif. “ Joining the American Express family,” said Bill Esping, founder and chairm an of F irst D ata Re sources, “will provide us with the impetus and financing required to broaden our business and to provide new services to depository institu tions. My key management executive team and I look forward to our new association and we believe it will be materially beneficial to First Data Resources and our present and future customers.” 9 “ The Bank o f N orth Dakota Philosophy” I oí Dakota 700 Main Street P.O. Box 1657 Bismarck, North Dakota 58505 To encourage and promote Agriculture Commerce, and Industry in North Dakota II To provide the most efficient and economical financial services to the State, its Agencies, and Instrumentalities III To provide professional assistance whenever possible and wherever it will encourage and promote the well being and Advancement of North Dakota and its citizens STA TEM EN T OF C O N D ITIO N December 31, 1979 RESOURCES Cash and Due from Banks.........................$51,894,743.60 U.S. Government Securities.........................84,620,553.22 Federal Agencies Securities...................... 72,365,475.73 Bankers Acceptances and Other Investments................................... 13,156,905.28 State and Municipal Securities................... 8,190,774.33 Federal Funds S o ld ................................... 110,735,000.00 Loans FmFIA Business & Industry Guaranty....................................... 5,867,723.91 FmHA Housing G uaranty................ 479,991.35 FHA and Gl Home Loans........................................ 126,373,177.32 Farm R. E. Loans.......................... 20,689,778.09 R. E. Contracts................................... 293,008.28 Loans to State Institutions...................................... 281,051.00 Bank Stock Loans........................... 3,042,660.63 SBA Participation Loans.......................................... 16,850,037.05 N.D. Bank Participation Loans........................................ 114,544,562.24 Other L oan s..................................... 2,375,694.58 TOTAL LOANS...................................... 290,797,684.45 Accrued Interest Receivable........................ 7.717,778.88 Bank Building and Equipment.................... 1,496,083.71 Unamortized Bond Issue Costs....................... 543,133.88 Other Assets........................................................ 831,050.46 TOTAL RESOURCES............................ $642,349,183.54 This Bank is owned, operated and controlled by the State of North Dakota under the supervision of the Industrial Commission. LIABILITIES Demand Deposits: Individuals, Partnerships & Corporations.................................. $5,443,718.31 Deposits of B anks...........................30,210,213.02 State and Political Sub-divisions..................................... 79,325,111.03 Official Checks, etc............................... 546,549.93 115,525,592.29 Time and Savings Deposits: Individuals, Partnerships & Corporations..................................24,786,019.71 State and Political Sub-divisions..............................268,712,372.54 293,498,392.25 TOTAL DEPOSITS....................................409,023,984.54 Fed. Fds. Purch. & Sec. Sold under Agreement to Repurchase............. 135,616,500.00 Accrued Interest Payable.............................. 6,583,518.06 Other Liabilities............................................ 14,015,078.61 Long Term Debt - Mtg. B onds................... 47,500,000.00 Reserves...................................................3,500,000.00 Capital................................................... 12,000,000.00 Surplus................................................. 12,000,000.00 Undivided Profits.................................... 2,110,102.33 29,610,102.33 TOTAL LIABILITIES, RESERVE & CAPITAL..........................$642,349,183.54 IN D U S T R IA L COMMISSION A R TH U R A. LIN K Governor A LLE N I. OLSON M Y R O N JUST Attorney General Comm, of Agriculture H. L. T H O R N D A L President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 10 Bank Promotions and other changes P ROMOTIONS have been announced by the fol lowing banks: MOUNTAIN GROVE NATIONAL BANK POPE County State BANK TIME AND TEMPERATURE DISPLAYS 100% solid state. Custom designed. Attached to your building or free standing. Daktronics has taken the service expense out of message displays with 100% solid state electronics. Our engineers will custom design a display to enhance the architecture of your building and will provide a color drawing and quote at no cost. Call or write for details today. x> DAKTRONICS INC. DAKTRONICS, INC. Box 299 Brookings, SD 57006 Phone 605-692-6145 Northwestern Benker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank of America, San Francisco: Robert W. Frick has been appointed an executive vice president, it was announced last month by A. W. Clausen, president of the bank. Mr. Frick, 42, will head the bank’s World Banking Division Financial Services, a newly formed administra tive section in San Francisco. Previ ously, as a senior vice president, Mr. Frick had served as managing direct or of the bank’s merchant banking subsidiary, Bank of America Inter national Limited (BAIL), headquar tered in London. Appointed to that position in 1976, he was BAIL’S first m anager and was responsible for organizing and integrating it into the bank’s global network of merchant banking facilities. Mr. Frick will con tinue to serve as chairman of the board of BAIL. A native of St. Louis, Mr. Frick joined the bank in 1963 after receiv ing his masters degree in business adm inistration from W ashington University in St. Louis. Named to succeed Mr. Frick as managing director of BAIL is Ken neth D. Green, formerly director of loan syndications with BAIL. J international, m ulti-national and general banking services d e p art ment. Gail J. Loveman, multi-national banking services, was elected a vice president. She joined the bank 1972 and was named a second vice president in 1977. She received a bachelors degree in 1970 from Indiana U niversity and an MBA degree in 1975 from the University of Chicago. Newly-named second vice presi dents are Nancee J. Zipper, general banking services; J. Andrew Spindler, international banking services, and Gary H. Hickok, multi-national banking services. Also, Thomas R. Williams, Jr., multi-national bank ing, and Robert L. W illoughby, international banking, were named banking officers. First N ational Bank of Kansas City: Four new executive vice presidents head a list of officer promotions and changes. Advanced from senior vice president to executive vice president by the board were Donald H. Kasle, Stephen A. Melcher, Paul B. Rossan and James C. Stewart. William A ntoniello, Thomas H. Holcom, Jr., and Donald LacKamp were promoted from vice president to Continental Bank, Chicago: Four senior vice president. Mr. Kasle, who joined the bank in promotions have been announced in the bond and money market services 1965, is in charge of the commercial department. Richard E. Bratton was banking national division. elected vice president. Douglas D. Coy, Michael J . Daley and Michael J . McDonough were named bond officers. Bruce H. Luehrs, who calls on cus tomers in Iowa and Minnesota, was p r o m o t e d to banking officer in the commercial banking services D. H. KASLE S. A. MELCHER department. Mr. Luehrs joined the bank in 1977. He received a bache lors degree in e c o n o m ic s in 1975 from Duke U niversity and an MBA in finance in 1977 from Northwestern University. Six promotions also were announc P. B. ROSSAN J. C. STEWART ed by Continental officials in the I^| ^ . lb% At ICS we know it’s easy to fall into. But there’s never been a better time to market higher yield property im provem ent loans. We guarantee it. Risk-free security. 100% protection against every unpredictable default. Strikes, divorces, skips, bankruptcies, layoffs. Greater flexibility. ICS tailors a program to your Tight money means loan dollars must be concen needs. Amounts. Terms. And all types of improve trated where they return the most productive yield. ments are eligible. Risk-free property improvement loans provide excel lent returns. And, with new home costs mushroom Fast, com prehensive service. Claims are paid in ing, Americans are investing billions in improvements days —not weeks or months. ICS offers portfolio re to existing property. view and evaluation on a continuing basis, plus a proven marketing program to help broaden your HIL ICS, the world’s leading insurer of property improve volume. ment loans, can tailor an HIL program to expand your portfolio volume and build profits in this important Financial stability. Insurance provided by Old area. We get at the bottom line by cutting through Republic —world’s largest insurer of consumer credit red tape. Here’s what you get: with full-line coverage in the lender insurance field. Greater yield. Property improvement loans generate Over 1600 institutions are already profiting from the substantially greater income than most ICS plan. Let us show how we can help other types of consumer loans. And 0^increase your portfolio profitability. net yields to lenders average 25% I N S U R E D C R E D IT Call W illiam F. S c h u ma n n , more under the ICS plan than President, (312) 621-9400, for a V S E R V IC E S under FHA Title I. plan tailored to your needs. * * * > INC.A m e r i c a ’s N o. 1 i n s u r e r o f p r o p e r t y i m p r o v e m e n t loans. 307 N. M ich iga n A ve n u e • C hicago, Illin o is 60601 • 312/621-9400 A SUBSIDIARY OF OLD REPUBLIC Other Subsidiaries: Old Republic Life Insurance Company, Old Republic Insurance Company, Old Republic Mortgage Assurance Company, Title Insurance Company of Minnesota https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12 W. L. ANTONIELLO T. H. HOLCOM Mr. Melcher has been with the bank since 1973 and is in charge of the commercial banking m etropolitan division. Mr. Rossan joined First National in 1969. He is a CPA and is in charge of the administrative division. Mr. Stewart has been with the bank since 1973 and heads the retail banking division. D. R. LacKAMP G. DUDLEY Mr. LacKamp has been designated head of the correspondent division with full administrative repsonsibilities. He succeeds George C. Dudley, who has assumed responsibilities as a senior consultant. Mr. LacKamp became associated with the bank in 1974 assum ing calling responsibilities in Kansas and working with the b an k ’s ag loan portfolio. He is a graduate of Kansas State University. As a senior consultant, Mr. Dudley, with over 30 years in correspondent bank work, will place emphasis on research, credit and training. He will also devote more time to travel and representing the bank at conferences. Federal Reserve Bank of Chicago: Roger E. Anderson, chairm an of Continental Bank of Chicago, has been reappointed to the Federal ACORN S a le R eg isters "A c c e p te d S ale R eg is ters b y Bank C lerks E v e r y w h e r e " Tor i n l o r m n t i o n write THE ACORN PRINTING CO. Oakland, Iowa Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Advisory Council. The 12-member council is composed of one represen tative from each of the 12 districts. The council meets periodically with the Federal Reserve Board and makes advisory recommendations on FRB System monetary policy affairs. This is the second of Mr. A nderson’s one-year term s as 7th D istrict representative for the Federal Reserve Bank of Chicago. First National Bank in St. Louis: John W. Rowe has been promoted to senior vice presi dent of the bank and its parent, First Union Bancorporation. He will continue his present responsi bilities as m an ager of First Na tional’s bond de partm ent. Mr. J. W. ROWE Rowe joined the bank in April, 1967 and has been a vice president since 1971. He was named assistant manager of the bond department in 1977 and became man ager in December, 1978. He holds a BS degree from Bradley University. Other promotions at First National include the following: M. F. TIMMERMAN J. C. SOLOMON ed vice president. She is secretary to Roger Hegarty, president of the bank and the h o ld in g com pany. She began her career at the bank in 1963 and will continue her duties as secre M. DUNCAN tary to Mr. Hegarty as well as management of First National’s investment accounts and m anagem ent of the holding com p an y ’s investm ent and liquidity planning. Promoted to assistant vice presi dent at First National were John J. Ford, Bill Manring and Mrs. Carol Horn, while Stanley M. Hulett was named ag representative. C. HORN S. M. HULETT Mr. Ford first joined the staff in John C. Solomon and Michael F. Timmerman as vice presidents in the Jan u ary , 1971, then returned to international division. Mr. Solomon graduate school the following Sep headquarters in St. Louis, while Mr. tember. He rejoined the bank in Jan Timmerman is located at F irst uary, 1979, as real estate loan officer National’s representative office in in charge of that department. He re ceived a BA degree from Tarkio London. New assistant vice presidents are College, Tarkio, Mo., in 1970 and an Timothy L. Drone, special industries MBA from the University of Arkan division; Shay Eikner, international sas in 1972. He is a licensed real banking, and John R. Small, EDP estate broker. He is the son of Mr. and Mrs. Jacob M. Ford II. department. Mr. Manring graduated from the First Midwest Bancorp., Inc., St. U niversity of M issouri-Columbia Joseph, Mo.: Seven staff members with a BS degree in ag economics. He were prom oted at January board joined the bank following graduation meetings of their respective banks, in 1976, was named ag rep a short according to Jacob M. Ford II, chair time later and has been involved with ag lending, correspondent banking man. At F irst N ational Bank in St. and trust farm management. Mrs. Horn has been a staff member Joseph, Ms. Meg Duncan, was elect 13 Too often, commercial overline requests get put in their place. They get filed away. Forgotten. Politely ignored. The correspondent banker, who w as all ears w hen you w anted to talk non-credit services, suddenly isn ’t listening. At Continental Bank, w e ll listen to anything. T hat’s right. Anything. Commercial custom ers m ean a lot to our correspondents. And our correspondents m ean a lot to us. So, w e set out to accom m odate. The loan might not be as w ell-docum ented as m any banks would like. The risk might be higher. The profit, lower. But if you’re ready to go to the legal limit, you’ve got every right to expect us to hear you out. And answer you quickly. At Continental, you get the decisiveness you expect. And deserve. Your credit request isn’t bogged down in redtape. Or held up in committee. It goes directly to your account manager —the officer who can authorize most loans. So, you get a decision, fast, from the person who made it. Call John Tingleff at (312) 828-2191. Tell him you want to discuss commercial overlines. Then, start talking. You can be sure we’re listening. It’s what you expect from a top correspondent bank. At Continental Bank, it’s reality. CO NTINENTAL BANK Continental Illinois National Bank and Trust Company of Chicago 231 South LaSalle Street, Chicago, Illinois 60693 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 14 at First National for 28 years and will continue as operations manager. She attended Central State College in Warrensburg, Mo. Mr. H ulett joined the bank in August, 1979, after receiving his BS degree in ag economics from the U. of M. His duties involve ag lending and correspondent banking. At First Trust Bank, also in St. Joseph, Ms. Jeanette Venable was advanced to assistant vice president and Mrs. Lorene Wood was elected an assistant cashier. J. VENABLE L. WOOD Ms. Venable has been with First Trust since 1966 and will continue as supervisor of tellers and the book keeping departm ent. M rs. Wood started at the bank in 1974 and is serving as assistant supervisor of tellers. Morgan Guaranty Trust Com pany, New York: A rthur C. Eschenlauer has been elected a senior vice president and named head of the industries group of the national banking division. The group consists of the petroleum, real estate, public u tilities and m ining/construction departments. Previously, he headed the petroleum department. He has been with the bank since 1958. The Northern Trust Company, Chicago: The following promotions to vice president were announced after a recent board meeting: Lisa M. Featherer and C. Mark Shumaker, banking departm ent; James A. Harrington and Roger F. Siara, bond department; Diego G. M artinez and Pedro M. Toro, international department, and Fran cis R. Driscoll, operating d ep art ment. New second vice presidents include: Val G. Wisniewski, banking department; Russell L. Jones, bond department; Robert A. Clark and Jack H. Washow, operating depart ment, and Gerald F. Keeney, trust department. Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 Named to Task Force on Inflation HE membership of the American T Bankers A ssociation’s Select Task Force on In fla tio n has been announced. Gaylord Free man, chairman of the task force, said the group held an initial org a n iz a tio n a l meeting recently in Washington. G. A. FREEMAN Mr. Freeman is also honorary chairman and former chairman of the board, The First Na tional Bank of Chicago, 111. The task force expects its work to take a signif icant period of time. The following prominent members of the economic and financial com munities have agreed to serve on the task force, Mr. Freeman announced: • Professor Martin S. Feldstein, Department of Economics, Harvard University, Cambridge, Mass. • Professor Jay Forrester, System Dynamics Group, M assachusetts Institute of Technology, Cambridge, Mass. • Richard D. Hill, chairm an of the board, The First National Bank of Boston, Mass. • W alter E. Hoadley, executive vice president, Bank of America, San Francisco, Calif. • Sidney L. Jones, American Enterprise Institute for Public Policy Research, Washington, D.C. • Henry Kaufman, partner, Salo mon Brothers, New York, N.Y. • Ben F. Love, chairman of the board, Texas Commerce Bank, Houston. •Dr. Paul W. McCracken, E d mund Ezra Day University Professor of Business A dm inistration, The University of Michigan, Ann Arbor. • A. A. Milligan, president, Bank of A. Levy, Oxnard, Calif. • Arthur M. Okun, senior fellow, The Brookings Institution, Washing ton, D.C. • Leif H. Olsen, senior vice president and economist, Citibank, New York, N.Y. • Joseph J. Pinola, chairman of the board, Western Bancorporation, Los Angeles, Calif. • David Rockefeller, chairm an, The Chase Manhattan Bank, New York, N.Y. The creation of the task force, and the appointment of Mr. Freeman to head it, were announced last October by ABA President C. C. Hope during the Association’s annual convention in New Orleans. American Express Will Co-Sponsor Disney Exhibit American Express Company will co-sponsor a major pavilion at Walt Disney World’s EPCOT Center, the Experimental Prototype Community of Tomorrow, an $800 million project scheduled to open on October 1, 1982, in Florida. The announcement was made fol lowing the signing of an agreement by Louis V. Gerstner J r ., president of the travel related services group of American Express, and Card Walker, president and chief executive officer of Walt Disney Productions. Under term s of the agreem ent, American Express will become the official Card and Travelers Cheque of W alt Disney World and EPCOT. Special allocations of guest rooms at the on-site hotels will be set aside for American Express Travel customers. A unique American Express travel service office, featuring the ultimate in computerized customer systems and services for travelers from around the world, will be located in the Fu ture World Mall area of EPCOT Center. The pavilion American Express is co-sponsoring will be known as “The American Adventure.’’ It will tell the story of the American spirit and the role it has played in sustaining us as a nation for more than two hundred years. U tilizing the Disney-developed Audio-Animatronics process, threedimensional sets: 70mm film, special effects and a spectacular finale fea turing a life-size torch of the Statue of Liberty, with Benjamin Franklin and Mark Twain joining together in a dia logue concerning America’s future, “The American Adventure’’ will offer guests a totally new experience and dimension in dramatic presentations. In addition to Franklin and Twain, the wit, wisdom and philosophy of other great Americans, such as H arriet Beecher Stowe, Teddy Roosevelt, Frederick Douglas, John Muir, Thomas Edison, A lexander Graham Bell and Will Rogers, will be augmented with a stellar supporting “cast” of over 30 other Audio-Anima tronics “actors.” ; □ : Like silent sentries, LeFebure surveillance and alarm systems help defend your operation from security threats. Because there's no w ay of know ing w hen or w here crim es m ight occur at your financial institution, you need the security provided by LeFebure surveil lance and alarm system s. They're the Protectors — the in d u stry 's m ost a d vanced, cost-efficient security systems. LeFebure Closed Circuit Television is a protector w hose attention never w av ers. It's on the job 24-hours a day, every day to provide you w ith full-tim e su r veillance of the premises and immediate photo evidence in the event of a robbery. You also have records of everyday crimes such as forgeries and bad checks. The L eFebure Central Station/ Proprietary Alarm System is a protector of broad capabilities. It not only provides surveillance and controls alarms, but it sim ultaneously gathers data, processes ev en ts an d sto res in fo rm a tio n from branch operations as well. The LeFebure Modular Alarm System is a protector w ith exceptional grow th p o ssib ilities. Start w ith a small alarm system and add on com ponents as you grow. The M odular System can in co r porate every kind of sensing, triggering and responding devices. Talk to a LeFebure Sales E ngineer soon ab o u t y o u r sec u rity system re quirem ents. You need all the protection you can get and LeFebure has all the protection expertise you need. Central station/proprietary alarm system Modular alarm system LeFEBURE D ivision of W alter Kidde & Com pany, Inc. KIDDE Cedar Rapids, Iowa 52406 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 password is flexibility. I t is this transition that has brough a need to redefine the aspects of banking. And F irst Bank System , Inc., the it is this redefinition that is continu regional bank holding company head ing to shape the banking industry quartered in Minneapolis-St. Paul, today.’’ announced January 21 the establish ment of First Trust Company of Ari James Brown Discusses zona, with offices in Phoenix at 1651 East Morten. George L. Beall, form Bank Acquisitions erly senior vice president of First James E. Brown, president of Mer Trust Company of Montana and a cantile B ancorporation In c., St. veteran of 21 years in trust admin Louis, participa istration, has been named president. ted last month as Donald R. Grangaard, chairman a member of the and chief executive officer of FBS, faculty in a semi gave three major reasons for the de nar on bank ac cision to establish a trust company in q u is itio n s and Arizona. “First, many FBS custom b a n k h o ld in g ers and others from our service area of company expan M innesota, W isconsin, N orth D a sions sponsored kota, South Dakota and Montana by the Legal have retired and moved to the south Times of Washj E BROWN west. Our custom ers w ant to ington and the continue to receive our trust services publishing firm of Harcourt Brace in Arizona and First Trust Company Jovanovich. of Arizona provides us the opportun The seminar, intended for lawyers ity to answer that need. and bank executives, was offered in “ Second, until quite recently, Washington, D.C., and will be offered estate and death taxes in Minnesota again in San Francisco February 25 provided an additional incentive to and 26. ward retirement in the southwest. As president of Mercantile BanRecent changes in the M innesota corporation since the corporation was laws have made that less of a prob organized in 1970, Mr. Brown has lem. Yet, because those laws acceler been involved in the acquisition of 25 ated the move to Arizona for many existing banks and the organization people, the potential for developing of two de novo banks. Since 1970 he trust service business there remains has held negotiations with the man strong. agem ent owners of approxim ately “Third, Arizona is a rapidly grow 100 banks in Missouri. ing area that attracts new residents from throughout the country, not Richard Tennant Dies just our operating area.’’ Mr. Beall has been with FBS since Richard P. Tennant, 49, who re 1959. He has been senior vice presi tired in September as president and dent of the First Trust Company of chief operating officer of Credit Sys Montana since 1978 and holds a JD tem s Incorporated, died recently. degree from the U niversity of Cause of death was believed to be Montana. heart failure. Credit Systems Incorporated is the St. Louis-based operating center for Plan NABW Regionals Master Charge and VISA in Mis “Banking: An Industry in Transi souri, K ansas, Iowa, Illinois and tion’’ has been announced as the western Kentucky. theme of the 1980 regional confer Mr. T ennant coordinated the ences of the National Association of founding of Credit Systems Incor Bank Women, Inc. porated in 1967. In announcing the theme at a re cent planning meeting of conference chairmen, NABW Vice President Fed Amends FIRA Regs Jane McGavock Smith, vice presi The Federal Reserve Board has dent and compliance officer, First & published amendments to the board’s M erchants N ational Bank, Rich Regulation Q to implement the re mond, Va., said, “In the past few porting requirements of Titles VIII years, the banking industry has and IX of the Financial Institutions moved into a business environment in Regulatory and Interest Rate Control which change occurs daily and the Act of 1978 (FIRA). First Bank System Opens Arizona Trust Company https://fraser.stlouisfed.org Northwestern Banker, February, 1980 Federal Reserve Bank of St. Louis The b o ard ’s revised regulation, which was effective December 31, applies to both state chartered member banks and national banks. The Office of the Comptroller of the Currency concurred in the amend ments to Regulation Q. To implement Title V III, the revised regulation requires: 1. That each executive officer and principal shareholder of an insured bank should report annually, to the bank’s board of directors, their own indebtedness, and that of their “re lated interests” to each of the insured b an k ’s correspondent banks, the amount of debt outstanding 10 days before the report is filed, the range of interest rates on such loans and other terms and conditions of the loans. A related interest is a company con trolled by, and political or campaign committees controlled by or benefit ing, bank officials and shareholders. For the purpose of reporting require ments, Regulation O, as amended, defines a correspondent bank as a bank that maintains an account at an insured bank that exceeds an average daily balance of $100,000, or half of one percent of the insured bank’s total deposits. 2. That each insured bank forward an annual publicly available report to the appropriate banking agency list ing the name of each executive officer or principal shareholder who files a report of indebtedness w ith the bank’s board of directors, and the aggregate amount of indebtedness of these persons and their related in terests to the insured bank’s corre spondent banks. To implement Title IX, the revised regulation requires: That each insured bank file with its appropriate regulator an annual re port, available to the public upon re quest, listing the names of the bank’s principal shareholders as of Decem ber 31, a list of executive officers and principal shareholders of the bank who were indebted, or whose related interest were indebted to the bank during the year and the aggregate amount of such debt to the bank. The first such annual report will cover the period from July 1, 1979, to December 31, 1979. Executive officers and principal shareholders filing reports of indebt edness under Title VIII will file be fore Jan u ary 30, 1980, and the insured banks will file reports with their appropriate regulators, based on these reports by March 31. Accurately Reporting the Used Car Market O F F IC IA L USED CAR GUIDE A New, Updated Edition Every 30 Days, Regional For Your Market In these days of higher priced used cars and market uncertainty, the NADA Guide performs the important service of bringing you timely, concise and accurate market value data, derived from transactions of dealers and auctions in your general trading area. In addition, the Guide provides all essential information for vehicle identification. America’s Number One Used Car Guide NATIONAL AUTOMOBILE DEALERS USED CAR GUIDE CO. SUBSCRIPTION ORDER FORM National Automobile Dealers Used Car Guide Co. 8400 Westpark Drive, McLean, Va. 22102 SUBSCRIPTION RATES 1 Sub..........19.00 2-4 Sub. .. .18.00 ea. 5-9 Sub. ...17.00 ea. 10-24 Sub. .15.50 ea. 100 and up..12.50 ea. Please enter our order for . . . New □ Additional □ Annual Subscriptions to the N.A.D.A. Official Used Car Guide, issued every 30 days. Name. □ Remittance enclosed Street (P.O. Box)........................................ □ Will remit on receipt of invoice 25-49 Sub...14.50 ea. 50-99 Sub...13.50 ea. PLEASE TYPE OR PRINT By...... City......................................................State. Zip Code.. ■8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 18 Corporate and other anPROMOTIONS noucements have been made by the following firms: Aetna Business Credit, Inc., Detroit office: Larry J. Vingelman has been ap pointed business development of ficer in A B C I’s midwest market ing center, head quartering in the Detroit office. He will serve a wide variety of pro spective business clients in the midwest region, with special respons ibilities in the lower Michigan and w estern Ohio areas, according to James T. Pearce, vice president and manager of the midwest marketing center in Chicago. A native of Detroit, Mr. Vingel man has a BBA degree in finance from the University of Michigan. / ------------------------------------------^ SINGLE INTEREST INSURANCE For Installment Loans / ------------------------------ \ BLANKET SINGLE INTEREST INDIVIDUAL SINGLE INTEREST PROGRAMS • Autom ated • Manual V - ________ ' PROTECT YOUR LOANS AGAINST THO SE PHYSICAL DAMAGE LOSSES. CONTACT US ABOUT A PROGRAM FOR YOUR BANK. call or write: G.D. VAN WAGENEN CO. 1678 Northwestern Bank Bldg. Minneapolis, MN 55402 (612) 333-2261 v_____________ —y Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Before joining ABCI he was a field analyst for a commercial lending firm in Detroit. American Express Company, Dal las office: Edwin J. Lichtwardt has been advanced to senior d istrict manager for American Express Travelers Cheque and Money Order Divisions. He will continue to be based in Denver and will be responsible for the states of Colorado, New Mexico and Wyoming. Robertson & Associates, a Madison, W is., m arketing and advertising agency, where she was an account executive and media director. She is a graduate of M adison College. At Financial Shares she will manage marketing planning, budget ing, production and media for the firm Heller, Walter E. & Company, Chicago: Lawrence M. Taylor, Jr., 34, has been appointed international sales m anager for the equipment leasing and financing division. An attorney on the Heller legal staff for the past three years, Mr. Taylor will be responsible for the development and funding of cross-border equip Computer Research Company, ment financing arrangem ents in Chicago: Ron Ellis, president, has North and South America. He will announced the appointment of Helen also serve as H eller’s w estern J . Tierney to the new position of man hemisphere representative for PK ager of financial services. She was Heller International Finance, S.A., a vice president of Financial Shares Luxem bourg-based capital equip Corporation in Chicago, where she ment financing firm jointly owned by had been employed since 1975. Walter E. Heller Overseas Corpora tion and PKbanken of Stockholm, Diebold, Incorporated, Canton, Sweden. PK Heller offers a variety of Ohio: Donald E. Homstad has been leasing and lending plans for the appointed a dis worldwide sale of capital equipment. trict service man Mr. Taylor is a native of Boston ager, according and practiced law there before joining to William TusPepsico Leasing Corp. as an attorney sing, central area in 1975. That firm subsequently was service and in purchased by Heller and renamed stallation m an Chandler Leasing Corporation. ager. Mr. Hom stad will be re Lease America Corporation, Cedar sponsible for es Rapids, la.: Five individuals have tablishing a new been promoted to service branch D- E‘ HOMSTAD c o rp o ra te vice office to serve the western Wisconsin and eastern Minnesota area, with presidencies by residence in Anoka, Minn. A native this national eof Cromwell, Minn., he is a graduate quipment leasing of Minnesota Technical Institute and firm, according has attended the U niversity of to President Em Minnesota. He joined Diebold in 1974 mett Scherrman. and most recently served as super All appointments visor of the company’s Minneapolis w ere e ffe c tiv e January 1. office. RichardW. R. W. MYERS Financial Shares Corp., Chicago: Cathy L. Hurless has joined this bank consulting firm as assistant vice president in the m arketing con sulting division, a c c o rd in g to George M. Morvis, president. Ms. Hurless has been employed the p ast seven years with John C. L. HURLESS Myers was advanced to executive vice president from his post as vice president for operations. He joined the firm in April, 1977, after serving as vice president of a division of Gelco Corporation, a large leasing firm in Minneapolis. His position now in cludes supervision of all LeaseAmerica operations, including recruitment and training of marketing personnel, m arket developm ent, accounting, collections and management activ ities. A native of Minneapolis, Mr. Myers is a 1968 graduate of Stanford 19 University in Palo Alto, Calif. Named vice president-credit was George L. Lehnertz, who joined the company as credit manager in Jan uary, 1978, after five years as senior credit analyst for Commercial Credit Equipment Corporation in Minne apolis. He is responsible for credit analysis and recommendations for the seven LeaseAmerica regional offices. A native of Dorchester, W is., Mr. Lehnertz was graduated from the University of Wisconsin at Madison in 1972 with a BA degree in econom ics. Three marketing representatives were appointed regional vice presi dents—Michael L. Green, Arthur A. Greve and Robert W. Kubik. Mr. Green is promoted to regional vice president for northeast Iowa after four and one-half years with LeaseAmerica. He is a native of Cedar Rapids and received his BS degree in business from Loras College in Dubuque in 1968. He was a life in surance salesman for six years before joining LeaseAmerica. Mr. Greve was account manager for Burroughs Corporation computer m arketing before joining Lease America in June, 1977. He received a BS degree in education in 1970 from wr ßm kt ! G. L. LEHNERTZ equipment distributor in Calgary, A lberta, and M assey-Ferguson in Des Moines and Canada. A 1962 graduate of Coe College in Cedar Rapids, Mr. Kubik’s region includes southeast Iowa and southern Illinois. He lives at Lake McBride in Solon, la., near Cedar Rapids. LeaseAmerica is a wholly-owned subsidiary of MorAmerica Financial Corporation, a diversified bank hold ing company founded in 1916. In operation since 1968, LeaseAmerica’s seven regional offices are in Cedar Rapids, D avenport, Des Moines, Minneapolis, Omaha, Milwaukee and Kansas City. Lincoln Benefit Life, Lincoln, Neb.: The election of Carl W. Weidner to the regional staff of the 41-year-old Lincoln-based life and disability company was announced last m onth. He was appointed regional vice president to head up recruiting and sales counseling in the company’s northwest territory com prised of Oregon, Washington, Idaho and Montana. An Oregon native, Mr. Weidner lives in Lake Oswego, Ore., and was with an Oregon-based insurance company prior to joining Lincoln Benefit Life. :/C» M. L. GREEN 110 East 7th Street Waterloo, Iowa 50705 Phone 319-234-6641 Ask for Dick or Jerry A. A. GREVE R. W. KUBIK Concordia Teachers College, Seward, Neb., and tau g h t high school in Honolulu before entering business. He resides in Bloomington, Minn., to serve his area for LeaseAmerica. Mr. Kubik was LeaseA m erica’s top m arketing representative for 1979, his third year with the com pany. Previously, he represented R. Angus, a m ajor Canadian heavy https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J.T. Miller Company, St. Paul, Minn.: Andrew M. Myers, manag ing p artn er an nounced recently that Ralph “Andy” Ander son has joined the Miller firm as a marketing rep resentative and will serve finan cial institutions in northeastern R. ANDERSON M innesota and the Twin Cities area. Mr. Anderson is well known in financial circles. For the past 13 years he was associated with the Foremost Insurance Co., most recently as district manager for Minnesota, North Dakota and South Dakota. Prior to that he was with Universal C.I.T. Travelers Express Company, Min neapolis: Norman A. Carlson and Kenneth W. Royer have been named vice presidents. Mr. Carlson, vice president for fi nancial institution sales, is a 25-year CORPORATE NEWS . . . (Turn to page 33, please OUR BEST NEW CUSTOMERS ARE OUROLD ONES! Kirk Gross Co. has an outstanding record for designing and/or remodeling financial institutions in Iowa. At last ouuru, more man ij u since January, 1971! Best part of this unequaled record is that so many are repeat, satisfied customers. We take the responsibility and worry of building or remodeling off your shoulders and put it in the professional hands of our designers and planners. And you get a Turn Key program. If you’re thinking about a new facility, but you haven’t talked to Kirk Gross Co., do it now. Our old friends do it every day! Northwestern Banker, February, 1980 20 READ ANY GOOD BOOK-ENTRIES LATELY? It’s fiction that certificates should change hands when securities are bought or sold. It’s fact that book-entry processing via deposi tories saves you money, time and headaches. At MHT, we’ve long been a leading advocate of the depository environment. In fact we designed our own securities system called IM PACSM to make the m ost of the electronic book-entry programs of the Depository Trust Company (stocks and corporate bonds) and the Federal Reserve Bank (government securities). Working together, the M H T and DTC systems produce faster confirms— which, in turn, reduce fails. You’re ahead in other ways, too. By sharing in the lower rates we get as a major DTC participant. Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By waiving the cash deposit and collateral required by DTC of direct participants. Today, more and more M HT correspondents are adopting book-entry securities processing for the sake of efficiency and economy. Take a page out of their book. Leave certifi cates in their place and curl up with a good book-entry. For more information, get in touch with Brian V. Carty, Vice President. He can be reached directly at (212) 350-4658. MANUFACTURERS HANOVER America's premier correspondent bank National Division, 350 Park Avenue. New York, N.Y. 10022 Membe fdic 21 1980 will be a trying year but Mortgage sales are delayed not lost W. L. HEMPHILL President and C.E .O. United Guaranty Corporation Greensboro, N.C. CAN’T remember a time when it was more difficult to I forecast with any degree of certainty. Those who forecast now for calendar year 1980 should probably be prepared to make rolling adjustments about every 90 days so as to take into account events as they unfold. Certainly, it is obvious that housing is in a severe downturn and that housing activity, however measured, will be substantially less than similar activity in 1978. Most housing analysts express housing activity in terms of new starts. At United Guaranty, we find new starts to be a very useful tool in forecasting concomitant sales activity and mortgage originations. From a level of about 1,750,000 starts in 1978, we estimate at United Guaranty that 1980 starts will total about 1.3 million. As our major activity is the insurance of single-family home loans, we are particularly interested in single-family starts. From single-family starts of about 1.2 million in 1979, we anticipate 1980 activity will fall to about 900,000. It appears that total starts in the northeast, north central and west will decline about 30 to 35%. The reduction from 1979 levels in the south will run about 20 %. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In a down cycle of housing activity, coupled with rising prices and high interest reates, the low-income and middle-income prospective homeowner has difficulty in participating in the housing market. His problems are two-fold. F irst, he has difficulty in accumulating funds for a higher down payment and closing costs and, second, he has difficulty meeting monthly payments at historically high levels. Mortgage insurers can be of assistance to both the lender and the borrower by insuring loans up to a 95 % loan-to-value ratio, thus reducing the down payment which otherwise would be required. As it looks now, 1980 will be a trying year for lenders. Thrift institutions have been and will be hard hit by competition for savings from other institutions offering higher yields. The continuing out-flow of funds from thrift institutions will make more important those services of mortgage insurers which aid lenders in selling off parts of existing loan portfolios to bring in funds for new mortgages. At United Guaranty, assistance to lenders in the secondary market is an important part of our services. In 1980, we expect to see more and more lenders participate in the selling of mortgage pools, which will bring in dollars from institutional investors to replace the savings dollars of individuals who have withdrawn to make investment elsewhere. Both lenders and mortgage insurers may take comfort from the fact that shelter is a basic need and that it is a discretionary expenditure which is only postponed but not eliminated. The prospective home purchaser who does not acquire shelter in 1980 will be in the market in 1981 or 1982. If I skip lunch today, McDonald’s will have lost the sale in perpetuity. Mortgaged lenders and mortgage insurfers m ust only be p atien t, because the loan eventually will be made and the insurance will be provided at that time. □ Northwestern Banker, February, 1980 22 Usury ceilings must go! DR. L. WAYNE DOBSON Abbott Professor of Banking College of Business Administration University of Nebraksa Lincoln, Neb. SURY ceilings should be abolished, or raised to a U level that would not encumber the availability of credit, according to L. Wayne Dobson, noted Abbott Professor of Banking and Professor of Economics at the University of Nebraska-Lincoln. Dr. Dobson states “usury ceilings are a form of price control; that is, an attempt by a governmental unit to impose the maximum price (interest rate) that may be charged for a commodity or service (credit).“ The ceil ings imposed by state governments were not an effective force in the credit market until the late 1960s, he ob serves, because they had traditionally been high enough that market forces acted under those ceilings on a supply and demand basis. With the change of market forces just over a decade ago, usury ceilings began inhibiting the free operation of m arket rates for interest, he relates, and state legislatures began raising some usury rates, making ex emptions and devising ways to circumvent the law to accommodate various sectors of the markets so credit could be supplied. □ Dr. Dobson has been recognized by his professional peers and bankers as an economist well-qualified to research and interpret data relating to the financial industry. The following article is a condensation of Dr. Dobson’s interesting study on “The Effects of Usury Ceilings,” which was published recently by the Univer sity of Nebraska-Lincoln in its College of Business Administra tion publication about “Business in Nebraska.” Because the United States Congress has pre-empted state usury ceilings on mortgage loans until March 31, 1980, and because a number of state legislatures now plan to take up the matter of possible raising or elimination of state usury rates, Dr. Dobson’s com ments and conclusions have special significance at this time. Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Three Arguments for Usury Ceilings Dr. Dobson cited these three most frequently used arguments for usury ceilings: 1. They are necessary to protect the small, unsophis ticated borrower who would otherwise be subjected to excessive rates by the lender and must be protected from himself and the lender. This argument, if ever valid, is redundant today because of the “small loan” statutes in all states. 2. It has been argued usury laws are necessary to re strain the monopoly power of the lender. It has little applicability in complex economic and financial systems. Monopoly power is questionable—there are alternative sources of credit. 3. It is contended low usury ceilings will promote higher levels of consumption and investment and, thereby, a higher level of economic growth and develop ment. This is great, Dr. Dobson says, if it leads to lower interest rates, but has little relevance if usury ceilings are below the market rates because of a lack of adequate credit to support higher economic activity. Dr. Dobson says the effects of interest rate ceilings depend primarily on two factors: 1) the level of the ceil ing and 2) the types and sizes of loans exempted from the ceiling. When the usury ceiling is below the market rate of interest the volume of credit supplied to borrowers is reduced and whatever volume is supplied will be ration ed among borrowers. Also, the high cost of funds for lenders must be considered. Lenders have loan commit ments that must be kept, as well as customers of long standing relationship to maintain. Additionally, he states, usury ceilings below the market rates lead to rationing which drives marginal borrowers from the market, and residential mortgage lending declines in relation to states where higher interest rates are permis sible, so money flows to the latter. Three Alternatives Dr. Dobson lists three alternatives: 1) abolish usury statutes, 2) adopt a floating usury rate ceiling, 3) retain fixed usury ceiling but broaden the types of loans that are declared exempt. He gives further details of each of these alternatives. 1. Abolish general usury statutes. “Two states have taken this action,” he notes, “and it is being discussed in several others. The central question resulting from this action is whether lenders are able to take undue advant age of borrowers without some type of usury ceiling. The evidence seems to indicate that there is adequate competition in the financial markets to protect the borrower from abuse. One study conducted in five metropolitan areas where the ceiling was above the national average does not suggest that local lenders immediately raise the rates to the ceiling but are re strained by the national average. These results appear to be consistent with a competitive and mobile financial market . . . If lenders were free to arbitrarily impose rates on borrowers without regard to market forces, it seems odd that they did not do so during the years prior to the late 1960s.” 2. Adopt a floating usury ceiling. Such ceilings are tied to some other interest rate. Despite this, “the un- 23 usually high interest rates of 1979 have forced many states to consider further changes,” Dr. Dobson says. He lists three problems associated with a floating rate that may cause it to be disruptive. First, to what interest rate should the usury ceiling be tied? The Fed discount rate, which allows national banks to charge one percentage point above the discount rate or the state usury ceiling (whichever is higher), “is perhaps the most undesirable rate to use” since it is not a market-set rate but one set administratively by the Fed and historically has lagged behind the market-deter mined rates. Some states have used long-term bond rates as the base for floating ceilings. Periods of tight USURY CEILINGS . . . (Turn to page 27, please) *‘Dropping usury ceiling is a positive step ’ ’ A N orth w estern B an k er interview with LEON T. KENDALL President MGIC Milwaukee, Wis. É É T HE federal pre-emption of state usury ceilings which will probably soon be made permanent, is a positive step which will reduce geographic and institu tional barriers to the movement of funds and allow a more efficient distribution of available mortgage financ ing,” states Leon T. Kendall, president of Mortgage Guaranty Insurance Corporation, Milwaukee. Mr. Kendall stressed that the absence of usury con straints will permit the free flow of mortgage money to capital-short areas across the nation at rates competi tive with other instruments. “Homebuyers will be able to compete for funds on favorable terms with corporate and governmental bor rowers,” Mr. Kendall argues. “The absence of state usury ceilings will contribute to general economic effici ency, enhance the liquidity of mortgage lending institu tions, put the vital construction industry back to work and provide homes for a growing nation.” Offers Promise of National Rate In addition, the president of the nation’s oldest and largest private mortgage insurer believes that pre emption offers the promise of a national mortgage rate under which local interest rates will be set by local and regional supply and demand rath er than artificial legislative restraints. Indicating his confidence that “Congress will realize that usury limits have a deleterious effect on people seeking new homes,” Mr. Kendall expressed his con viction that the federal pre-emption will be extended https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis beyond the current March 31 deadline and eventually will be made permanent. Of the states reached by this publication, Illinois, Iowa, Nebraska (12.5%), North Dakota (12%), South Dakota (12%) and Wisconsin (12%) have had serious problems due to usury limits. However, lenders in 14 other states across the nation were forced to close their lending windows in recent months because of usury re strictions. In that regard, Mr. Kendall pointed to a 1979 study by Kaplan, Smith & Associates, Inc. which concluded that there is now overwhelming evidence that state usury ceilings make it virtually impossible for young, low- and moderate-income families to obtain mortgage credit; severely limit the ability of first time home buyers with smaller down payments to secure mortgage money; produce sharp drops in construction industry employ ment that weaken the entire economic base of local com munities, and encourage lenders to ship local funds to distant places which do not have usury ceilings. One Less Impediment “The federal pre-emption of usury rates means banks, savings and loans and other mortgage lending institu tions now have one less impediment to full participation in mortgage lending,” Mr. Kendall reasoned. “Lenders now will be able to offer a full range of mortgage pro ducts, including high ratio loans and graduated pay ment mortgages (GPMs), because the pricing of such products can be at market rates. In addition, lenders can more readily meet their CRA responsibilities.” Mr. Kendall says housing markets “will always be cyclical” and that the number of homes and the amount of funds available versus short-term demand will always determine the price money gets. “In the past, American financial institutions have adapted to major changes in fundamental marketplace forces in housing from the day of the GI (now VA) loans in the late 1940s right to today,” notes Mr. Kendall. “I am confident that permanent removal of state usury laws will allow the natural forces of supply and demand to operate, enabling private lenders to service America’s housing demand efficiently and privately. ” □ Northwestern Banker, February, 1980 24 Mortgage money is like fuel— By ROBERT L. WALDO President Verex Assurance, Inc. Madison, Wis. FORECAST for 1980 is guardedly optimistic. MYHowever, I do not minimize the challenges and the hard work ahead. The greatest housing demand in history will occur in this decade as forty million people, representing the post-war Baby Boom, enter the first-home buying age. Consequently, in 1980 and beyond, the housing demand will continue with vigor. However, mortgage money, one of the basic ingredi ents fueling the housing industry, will continue to have all of the characteristics of fuel—it will be volatile, expensive and scarce. I expect that the Federal Reserve Board will keep a tight rein on money supply. https://fraser.stlouisfed.org Northwestern Banker, February, 1980 Federal Reserve Bank of St. Louis A factor contributing to the high cost of money is the anticipated capital shortfall for the 1980s. Professors Rosen and Jaffe of Regional Data Associates have fore cast an average annual $66 billion mortgage credit gap during the decade in the housing finance area alone. Bridging this gap will require expansion of the secondary marketing to the non-traditional buyers— pension funds, trust departments, insurance companies, and the multitude of foreign investors looking for a sound investment. Portfolio managers of non-tradition al investors may not need residential mortgages to accomplish their jobs. But we need them to do ours. In 1980, the lending industry will begin making studies gaining the non-traditional buyer’s appreciation of the residential mortgage as a standard portfolio investment. It won’t be an easy sell, but it’s a sale that can and must be made. With interest rates at 12%-14%, there will be a marked decline in housing upgrades by people who already have homes. Not many buyers will leave an ade quate home for a bigger one, even if they can afford it. This may reduce the supply of used homes for first-time buyers to choose from, resulting in a larger supply of “no-frills” new homes as well as stepped-up production of condominiums. Political Pressure for Relief In 1980 it is probable that strong political pressure will be exerted for laws and regulations to make home mortgages more affordable and more available. Already under consideration are: tax exemptions on savings accounts, neutralization of state usury laws, use of taxexempt municipal and state revenue bonds to finance housing for low-to-moderate income families, and expanded use of new financing techniques, such as grad uated payment mortgages. In spite of tight money and high interest rates, housing starts in 1980 will not dip to the lows of 1974-75. There is no large, unsold inventory overhanging the market, and demographic pressure is simply heavier now than it was five years ago. I feel that 1980 will mark the beginning of the public’s understanding of the profound nature of the problems that face us, both at home and internationally. There may be a feeling of queasiness as we move into 1980, but our national mood will become more positive as we re gain our confidence in our ability to solve these prob lems, and the spillover into the approach of buyers, lenders and investors to the marketplace will create a more favorable environment for housing. □ □ THE AUTHOR attended the University of Wisconsin, Madison, following infantry service in World War II, receiving his under graduate degree there in 1949 and a law degree from the U of W Law School in 1951. After eight years of private law practice he served for 10 years as assistant secretary and assistant general counsel with Wisconsin Gas Company. In 1969 he became vice president and general counsel of Verex predecessors and after several promotions was elected president in October, 1978. He holds several important posts in the mortgage insurers’ trade association including membership on the MICA executive committee. 25 HE average owner of a mobile home is a married, T 44-year-old high school graduate living in a single wide, eight-year-old home that was purchased for about $9,000 and financed through a dealer, and is satisfied with his home. This broad description is part of the findings in a survey conducted by the nation’s leading mobile home insurer. Eight thousand questionnaires were sent this year to mobile home owners in order to provide a broad base of contem porary inform ation about to d a y ’s existing mobile home market, according to R. A. Wettergreen, director of marketing communications and research at Foremost Insurance Company, Grand Rapids, Mich. The study was conducted during 1979 through National Family Opinion, Inc. and resulted in a substantial number of new assumptions about the more than 10 million people who now reside in mobile homes. This survey, part of Foremost’s extensive market research effort, was the first attempt at conducting an in-depth study of the total existing mobile home market. Past surveys concentrated on the purchasers of new mobile homes. Foremost, the nation’s leading insurer of mobile homes, reports that of the 8,000 questionnaires mailed, 4,460 completed responses were received and are believed to be proportionately balanced according to U.S. Census figures. The following results are based on completed questionnaires. Demographic Information The average age of a male head of household is 44 years, with a median educational level of 12.4 years. Of those interviewed, 15% were female head of household. Twenty-six percent of the females and 67 % of the males are employed full time. Blue collar occupations are high est with 37%, white collar at 15%, and retired people represent 32%. The median annual family income is https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $9,481. Ninety-eight percent of the respondents are white. Married couples took the lead in mobile home living with 83%. Size of family indicates 45% are couples, three members 21%, four members 15% and one member 11%. Fifty-one percent of the mobile home owners live in areas of less than 50,000 population. Residence Information Median model year for the mobile homes was 1971.9, with single wides the overwhelming favorite nationally' at 81%. Aluminum exterior siding represented 96% of the homes. Eight percent of the homes have woodburn ing fireplaces, 16% a pitched roof and 72 % of the mobile home owners favor a tie-down law in their state, while 62% actually have their homes tied-down. Thirty-one percent of mobile home owners have moved their home at least once. Mobile home parks hold 44 % of the homes and 53 % are situated on private property. Park managers got a good rating with 67 % of the respondents saying they are excellent or pretty good. Only 13% said they had to make a repair to their heating/cooling system; 11% experienced plumbing or electrical repairs and major appliance repairs accounted for 4 %. Purchase Information An especially interesting note is that the average purchase price of a mobile home was determined to be $8,930, while its resale value had increased to $10,857. Mobile home appreciation is a big factor in today’s mar ket. Fifty-nine percent of the mobile home owners pur chased their home new from a mobile home dealer, and MOBILE HOME OWNERSHIP . . . (Turn to page 32, please) Northwestern Banker, February, 1980 26 NE-HALF century of dedication to a strong, inde O pendent banking system will be recalled during the 50th anniversary convention of the Independent Bank ers Association of America at the San Francisco Hilton Hotel, March 9-12. A record turnout of approximately 2,500 registrants is expected for this Golden Anniversary meeting. Advance registration of 1,700 in mid-January was running well ahead of previous years. Presiding at the 50th convention will be IB AA Presi dent Raymond D. Campbell, president and chief execu tive officer of Oberlin Savings Bank, Oberlin, Ohio. Scheduled to succeed him as president for 1980-81 is Thomas F. Bolger, president and chief executive officer of McHenry State Bank, McHenry, 111. Other officers Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis serving this year were W. C. Bennett, chief executive officer of Arthur State Bank, Union, S.C., second vice president, Oneida Valley National Bank, Oneida, N.Y., treasurer. Howard Bell is executive director at headquarters in Sauk Centre, Minn. Two top fed eral banking regulators will address the convention. FDIC Chairman Irvine C. Sprague will address the con vention on Tuesday, and Federal Reserve Board Chair man Paul Volcker will address the general sessionon Wednesday. Another noted guest speaker will be Dr. C. John Tupper, dean of the school of medicine at the University of California-Davis, whose topic wil be “Executive Health.” Outstanding entertainment has been arranged for the 50th anniversary convention. This will include banjoist Scotty Plummer, comedian Hal Roach and Walt Tolleson and his orchestra on Monday. The Wednesday pro gram entainm ent will feature noted pianist Roger Williams and dance music provided by Ernie Hecksher and his 20-piece orchestra. The complete program follows: Sunday, March 9 A.M. 8:30- 5:30 Registration—East Lounge. 8:30- 5:30 Dinner Table Reservation Desk Open. 8:30- 5:30 Exhibits Open—Hilton Plaza. Committee Meetings Agriculture-Rural America—Lassen Room Bank Education—Diablo Bank Operations—Whitney Federal legislation—Shasta Regulation Review—Tampalais Resolutions—W alnut 27 P.M. 1:30- 5:00 Executive Council—California Room. 3:00 Hostess Coffee Party—IBAA President’s Suite. 5:00 Executive Council recesses overnight. Monday, March 10 A.M. 8:30- 5:00 8:30- 8:00 8:30-11:00 9:00- 5:00 10:00-Noon 10:00-Noon Registration —E ast Lounge. Dinner Table Reservations. Buffet Breakfast—Continental Room. Exhibits Open—Hilton Plaza. Executive Council—California. Resolutions Committee—Walnut. P.M. 6:30- 7:30 Reception—Imperial Ballroom and Fran ciscan. 7:30 Dinner/Dance and Show—Continential Ballroom. Tuesday, March 11 A.M. 8:30- 4:30 8:30- 4:30 9:00- 5:00 9:00-12:15 Registration—East Lounge. Dinner Table Reservations. Exhibits Open—Hilton Plaza. First General Session—Continental Ball room. P.M. 1:00- 2:30 Men’s Luncheon—Continental Ballroom. Paul Volcker Irvine Sprague Or. John Tupper 1:00- 2:30 Women’s Luncheon—Imperial Ballroom. Afternoon and evening free. Wednesday, March 12 A.M. 8:30- 2:00 8:30- 2:00 9:00- 2:00 9:00-12:00 Registration —East Lounge. Dinner Table Reservations. Exhibits Open—Hilton Plaza. Second General Session—Continental Ball room. 10 : 00 - 11:00 Program for Wives of Bankers—Imperial Ballroom. Afternoon free. P.M. 6:30 Reception—Imperial Ballroom, Franciscan Room. 7:00 Convention Banquet—Continental Ball room. Entertainment. □ most states with a fixed ceiling ‘‘have declared loans to corporations exempt, while others have also established loans beyond a certain size not subject to the legal ceil ing” (as ag loans of a certain size in many states). This makes the ceiling less effective, he reports, and, thereby, less disruptive to the state’s economy. ‘‘But here again, (Continued from page 23) it may reduce the availability of credit for those individ uals that usury ceilings are designed to protect. It is the small, personal borrower who will see his sources of credit eliminated, or he will be forced to a higher priced form of credit; that is he will be compelled to seek a credit policies slope the yield curve downward and lender with the authority to charge a rate higher than during periods of inflation and tight credit conditions, that charged by more traditional lenders.” “a floating ceiling tied to longer-term instruments is From all of these varying alternatives and arguments, unlikely to provide much relief.” He adds that tying a Dr. Dobson draws a distinct conclusion. He states: floating ceiling to short-term rates provides no better alternative as a permanent solution. Conclusion—Abolish Usury Ceiling “A second problem with a floating ceiling is the size of ‘‘In summary, it is my judgment that general usury differential required before adjustments in the ceiling ceilings should be abolished or, if retained, they should are permitted,” according to Dr. Dobson. ‘‘That is, how be set or permitted to vary at a high enough level to close to the ceiling must the chosen rate be before it is avoid encumbering the availability of credit. This judg permitted to be increased. In addition, are the incre ment is not made on the assumption or contention that ments in the float to be broad or narrow, say, 50 or 100 higher interest rates are socially or economically more basis points at a time? Also, the speed must be deter desirable than lower rates. The empirical evidence leads mined with which the adjustments will be made; for one to conclude that ceilings simply do not accomplish example, if the key rate increases this week, how much the objectives for which they were designed, and when time must elapse before the ceiling floats upward or they are below the market rate of interest they have their downward? None of these questions is easily answered, worst impact on both potential borrowers and the state’s and the concept of a floating usury ceiling is not a simple economy. If these observations were not fairly obvious, solution to the problem. state legislatures would not subject themselves to 3. Retain a fixed usury ceiling but broaden the types debating such a sensitive topic each time the usury of loans that are declared exempt. Dr. Dobson notes that ceiling becomes effective. ” □ Usury ceilings must go! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 28 The IBAA Success Story: A tale of three secretaries an S MEMBERS of the Independent Bankers A Association of America reflect on the accom plishments of their organization’s first 50 years, they are impressed with an important fact. In that first half-century, IBAA has gained stature and solidarity in great measure through the dedicated work of the three secretaries who have guided its destiny from an idea in 1930 to a reality of today with more than 7,300 member banks who continue to espouse the cause of independent banking. The urgency to organize independent bankers surfaced in 1929 when the rapid expansion of A. P. Giannini’s Bank of America in California began to alarm individuals committed to local ownership of independent banks. At the same time, two holding companies in M innesota, according to IBAA archives, “saw an opportunity to duplicate in northwestern states the success that A.P. Giannini had achieved in dominating the banking system of California.” The Minnesota holding companies couldn’t branch under state laws of those years but could buy banks and they expanded rapidly, those records relate. Organizational Meeting With that background, 28 concerned independ ent bankers met in Glenwood, Minn., on May 9, 1930, discussed a course of action and wound up organizing as The Independent Bankers Associ ation. Each contributed $25.00 for an initial treasury of $700.00. A Minnesota banker, Bob Beery, was named secretary and held that post until 1933. The Great Depression that had started in November, 1929, with the Wall Street crash, was in full swing, with banks going under daily. In 1933, the fledgling IB A had just won its first victory by defeating in the Minnesota legislature a branch banking bill. In that same year, 4,000 banks in the nation failed and President Franklin D. Roosevelt declared a Bank Holiday. The IB A had spent practically all its funds fighting the branch banking bill and had practically no money to pay Mr. Beery’s salary. When the state com missioner of banks asked Mr. Beery to join his staff as bank liquidation officer, he was urged to accept by Ben DuBois, managing officer of First State Bank in Sauk Centre, and one of the 28 IBA found ers, who offered to be temporary secretary. 30-Year “Side Career” This began a 30-year “side career” that started as a temporary two-month job! Mr. DuBois was to stay that long until another secretary could be found. He personally contacted prospective mem bers, convinced them of the need for their partici Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ben DuBois, now 94, is pictured at his desk in Sauk Centre, Minn., when he was active as executive secretary of the IBAA during a 30-year period from 1933 through 1962. A sign perched atop his rolltop desk states succinctly a strong tenet of his life and a major reason for his success with IBAA, “Quitters never win, Winners never quit.” Although retired and living in a nursing home, Mr. DuBois still carries thetitleof chairman of First State Bank of Sauk Centre. The other surviving member of the 28 IBAA found ers is Norman Tallakson, 88, retired president of Bank of Willmar & Trust Co., Willmar, Minn. pation in IBA and in just one month had increased the treasury from $98.18 to $500. He scheduled a convention for August, 1933, and the IBAA began its long, slow climb to achieve its goals and, in the process, the national recognition it now has in the industry and among legislators far and wide. Ben DuBois kept doing the job “just a little longer” and soon became so identified as the IBAA leader that after several years he was recognized as “Mr. Independent Banker.” His continuing concern, and that of his fellow IBAA members, centered on branch banking and bank holding company expansion. In February, 1934, he took his first plane ride—a long, cold one—to Washington, D.C., to express his concerns with members of Congress. It soon became obvious that a one-state association had little clout in the 29 trong membership support! capitol. He returned home determined to remedy that situation. In the next few years he began traveling outside Minnesota to solicit memberships in The Inde pendent Bankers Association. His son, Pat, now president of First State Bank in Sauk Centre, where Ben continues as chairman, joined him in this venture. They traveled separate states and soon began building the foundation of the current national organization known as IBAA. The Western Independent Bankers Association under Harry Harding was also gaining steam and recog nition. 14-Year Effort Encouraged with this success, Mr. DuBois re turned to Washington in 1942 to launch his first offensive in the halls of Congress to restrict branch banking and multi-bank holding company expans ion. It took 14 years, but he and IBAA succeeded. His first effort was aimed at getting a federal law against FDIC members from branching. This in volved the state’s rights issue which lost southern Congressmen, who otherwise apparently support ed the concept banning branching. A t the suggestion of “a big fellow” in Washington, as Ben DuBois recalled in a later interview , IBAA switched its tactic to the holding company approach. Rep. W right Patm an (deceased) of Texas sponsored the bill. House Banking and Cur rency Committee Chairman Brent Spence con curred and with the strong support of Speaker Sam Rayburn got the bill passed 327-24 in 1956, 14 years later! Speaker Rayburn’s influence with the Senate was enough to get it passed there with 54 votes. Howard Bell Era In that same year of 1956, Mr. DuBois hired a young man named Howard Bell as editor of The Independent Banker, IBAA’s monthly magazine. Six years later, in 1962, when Ben DuBois retired as IBAA secretary, Howard Bell was named to succeed him as executive director, the post he con tinues to hold today. In 1946, IBAA had risen to 1,600 members, and with the spreading awareness of its clout with Con gress, more bankers continued to join so that by 1956 the numbers had tripled to more than 5,000. Mr. Bell continued the expansion of IBAA and by 1966 there were 6,300 members and there are now 7,300 member banks in 38 states. The year after Mr. Bell took over from Mr. DuBois, IBAA opened a Washington office— https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1,1963. Within a few years, IBAA’s persistance was being felt in the courts, and the Comptroller of the Currency found himself on the short end of two Supreme Court rulings made in favor of IBAA and against his regulations inter preted to be branch banking not authorized by state law. Under Mr. Bell’s direction, state associations began to be organized after Missouri had been the first in 1960 and Minnesota the second in 1961. There are now 27 state associations of independent bankers. Throughout the life of IBAA since Ben DuBois took over as secretary in 1933, the association’s headquarters have continued to be located in Sauk Centre, Minn. That was Mr. DuBois’ birthplace in 1885. His father, Dr. Julian A. DuBois, was pres ident of First State Bank from 1913 until his death in 1937. Ben succeeded him in the presidency, the position his son, Pat, now has held for some years. Ben DuBois has reasonably good health for a 94year-old fighter but will not attend the Golden Anniversary convention of the IBAA next month. In recent years, Ben DuBois’ gentle character has been especially noticeable with children. He loves them all and during his one or two-hour stays at the bank each day it is not uncommon to see small children run to him, climb in his lap and have Ben surround them with his big arms. There’s always a bit of candy magically popping out of one of his pockets, which delights the youngsters. “Strength is in Membership” In his typical, analytical, practical fashion, Ben DuBois noted in the spring of 1964, when inter viewed about his accomplishments, “Officials of associations are just front men; their strength is in the support of their membership, the influence of their membership. His observations about membership strength are undoubtedly true, but along the way, until that strength had time to mature as IBAA came of age, Ben DuBois was “Mr. Independent Banker” to Washington, where he was received and welcomed by Presidents, Congressmen and knowledgeable officials. Secretaries Beery, DuBois and Bell have initiated and continued a tradition of dedication and work th a t has benefited all independent bankers. □ Northwestern Banker, February, 1980 30 Challenge of the 80s: Protect banks and their custom ers therefore, is twofold: First, accelerate public inform ation program s to advise financial institutions of ways and means of protecting people and assets and, second, provide stronger, more cost effective deterrent devices to stem projected crime increases. At Mosler we are doing both. During the coming decade, we see security training for bank personnel playing a larger, more important role in the industry’s attempt to fight crime. For instance, in all bank rob beries that occurred in 1978, in nearly 25% of those financial institutions where silent alarms and camera sys tems were m aintained, bank per sonnel failed to activate them. We see at least two major reasons for this: fear of what might happen and im proper or inadequate training. By ROBERT F. MURPHY Check fraud remains the single President largest loss area for financial institu Mosler Safe Company tions. While few, meaningful statis Hamilton, Ohio tics are available, two sources—U.S. Chamber of Commerce and General S THE SECURITY world pre A ccounting Office (GAO) —guess pares for a new decade of bank that between 4 and 40 billion dollars ing, we are crit are lost each year in all commercial ically mindful of fraud schemes. D uring the past criminal trends decade, our industry has made some which began in gains in curtailing these losses through security surveillance sys the mid fifties and then mush tems. Recently, the use of plastic roomed in the sixties and sev enties. Bank robbery, check fraud, extortion, HAROLD W. GREENWOOD, JR. b o mb t h r e a t s R- F- MURPHY and kidnaps have increased at alarm President, Midwest Federal ing rates. In a span of just 20 years, Savings and Loan Assn. bank robberies have increased an Minneapolis, Minn. incredible 1171%—373 incidents in Principal and Owner 1958 compared with 4739 in 1978. Bank of Minneapolis & Trust Co. And the U.S. Department of Justice Minneapolis, Minn. estim ates th a t 1979 will record another jump to more than 5500 robberies. HERE is an interesting dichoto Unemployment, drugs, inflation, my of view today regarding the and a myriad of lesser social/econom outlook for the savings and loan ic ills are causative factors for this up industry. turn in crime. But, more important, On the one hand, we hear a number we feel these trends will continue of commentators talking of a growing through the next decade with little profits squeeze among some thrift in abatement. stitu tio n s in certain areas of the country. Twofold Challenge Indeed, a number of savings and Our challenge and opportunity, Editor's Note: In the last issue a number of banking executives offered their comments about “Banking in the 1980s" as part of our annual sur vey each January looking at the year ahead and, in this case, the decade ahead. Two additional com ments have been received that are worthy of study by bank executives. The first, from the president of one of the larg est bank protection manufacturers in the nation, looks at what might be done to better protect banks and em ployes from attack. The second, which might make some bankers un comfortable, is how a com petitor from the savings and loan industry perceives the years ahead. This is presented so bankers may be aware of what the competition is planning. A card identification and access/secure system s have been accepted by banks, and now I.D. systems with personal codes, coupled with on-line verification, should see greater use during the 1980s as a means to reduce check losses further. Decade of Upgrading The new decade also will see a rapid upgrading of traditional security de vices and systems. New vaults and money safes constructed with more sophisticated locking devices, higher strength and lighter weight materials are already in the marketplace. Outdated alarm systems will be replaced by upgrading to highly sophisticated interrogate/response alarms with “state of the art’’ line integrity. Many banks will install branch reporting consoles to monitor their own risks, and closed circuit television will play an even greater part in total security. In summary, banks will become more conscious of the problems they face, and will direct increased efforts to the protection of their sole com m o d ity -m o n ey — by in stitu tin g stricter controls on security through training programs, providing bandit barriers for protection of employes and depositors, upgrading devices and systems to the latest technology, and maintaining existing equipment in good working order. We at Mosler will continue to keep the nation’s financial institutions up dated and informed as to better and more cost-effective ways to protect themselves and their customers. □ Congress will reshape S & L industry T Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis loan associations have and are experiencing such a squeeze on earnings. Major and Positive Shift On the other hand, however, and despite any short run profitability problems, savings and loan associa tions across the country are poised today to take advantage of what appears will be a major—and positive —shift in the industry’s ability to serve its major customer, the family unit. Not since the Federal Home Loan Bank System was first established in the 1930s has the savings and loan CONGRESS . . . (Turn to page 32, please) quality forms which will process efficiently, fast service and reason able prices. Banks get all o f these, and more, from the forms professionals at Deluxe. Deluxe is the leading forms printer specializing exclusively in financial institution printing. There are more than 80 standard forms from which to choose, or you can have a custom form for a one-time charge of $25 and printing at standard catalog prices. Your form is produced and shipped within 10 days of receipt, and your satisfaction is guaranteed. Put your forms in the hands of the Pro Formers! Return this reply coupon for a Forms Catalog, price information and more details, or call toll free. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Send me a Deluxe Forms Catalog and price information. Name. Bank. Address . State. CHECK PRINTERS, INC. Forms Division/P.O. Box 43497 St. Paul, Minnesota 55164 1-800-328-9600 32 industry been as close as it is today to receiving such major new legislative authorities. And, once Congress acts on the proposal — which could be in early 1980— savings and loan associations will be well positioned to meet what is expected to be a major increase in demand for home financing during the next 10 years and beyond. The significance of the legislation being moved through the Congress right now cannot be stressed too strongly. It will reshape the savings and loan industry. I t will at once provide th rift in stitu tio n s with the ability to side-step short term earnings squeez es such as are evident today, and at the same time retain the th rift institutions’ particular expertise in serving the nation’s home buyers. S&Ls Serve Family The legislation, which is being called The Financial In stitu tio n s Deregulation Act, is a recognition on the part of the Congress that the public is going to be better served by a savings and loan industry that is equipped to handle all their family financial requirements. It is a recognition on the part of Congress that outdated and archaic usury laws have only served to impede the flow of money to some p arts of the country —and the legislation calls for an exemption to state usury statutes for mortgage loans. This provision continues to generate controversy but, when looked at closely, what it means is more money for home finance—at lower rates of interest. Consumer Type Loans Sim ilarly, the Congress has recognized that families should be able to secure the money, both for their homes and the consumer goods that go into that home, from the same financial institution- and the legislat ion calls for authority for savings and loan associations to write consumer type loans. A dditionally, the proposal will allow savings and loan associations to offer a full range of trust services to families-and this, too, should help to eliminate the mystique that has for so long surrounded trust services. And, in so doing, it should bring that service within the affordable range of all families. Other Authority Aside from this, the same legis lative package calls for authority for savings and loan associations to write new kinds of mortgages, such as the very attractive, renewable type loan, and would substantially increase the size of loans that would be permitted, in recognition of today’s high and rising costs for housing. The proposal contains an increase in Federal insurance of savings accounts, to $50,000, up from $40,000, and additionally would set up new rules by which savings and loan associations could continue to provide funds for housing during all cycles of the economy. Taken together, the package represents the biggest advance in financial institition legislation since the 1930s—and will be the vehicle used to establish full equity for savers, borrowers and lenders, as regulations now on the books to Mobile Home Ownership.. • (Continued from page 25) 29 % purchased a previously owned home from a private party. Twenty-seven percent of the homes have perma nent room additions, and 54% own adjacent buildings, such as garages and barns. Financing Information Sixty-five percent of all those surveyed said they are financing their mobile home, and the mobile home dealer arranged 70% of those financed. The largest single finance source was banks with 60 %. The average finance term is eight years and the median total monthly finance payment is $143. Insurance Information Ninety percent of all mobile home owners surveyed Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis restrict the rates paid savers are phased out. Indeed, the legislation will be considered landmark law when it is signed and for years to come. For families who will be seeking funds from thrift institutions in the future, it will be like having the doors flung wide open. □ Gabriel Hauge Honored Gabriel Hauge, former chairman of M anufacturers H anover C orpora tion, New York, was awarded the grade of Com mander of the Royal Order of St. Olav, one of N orw ay’s high est honors. The award was con ferred by King Olav V of Nor way in recogni tion of Mr. Hauge’s contribution to Norwegian-American economic co operation. A similar Royal Order decoration had been received by the honoree’s Norwegian-born father 25 years ago. Mr. Hauge retired as chairman of Manufacturers Hanover Corporation and its flagship subsidiary, Manu facturers Hanover Trust Company, last April. B of A Expands in Yemen Bank of America has announced its affiliation as a 20 % shareholder in the new International Bank of Yemen. Ceremonies January 5 marked the opening of the new bank’s headquar ters in the city of Sana’a, located in central Yemen. said they had insurance on their home. The average annual insurance premium is $135. The leading insur ance companies include: Foremost Insurance Company, Allstate, State Farm and Farm Bureau. Level of Satisfaction Fifty-nine percent of mobile home owners surveyed said they are very satisfied with their homes, while 27 % said they were somewhat satisfied. Only 5% were dis satisfied with their mobile homes. Fifty percent plan to remain in their mobile home indefinitely. Construction quality of today’s mobile home compared to those built over five years ago showed that 28 % felt there was much better construction and 29 % said somewhat better con struction. Only 11% felt the construction of their home was not as good as before. Ninety-eight percent of those surveyed did feel as though quality of construction was very important and 88 % thought the improved energy efficiency of their home was very important. □ 33 Ed Kallemyn Honored at Retirement HONOREE Ed Kallemyn and his wife, Dorothy, are pictured at his recognition dinner with Frank Augustine (left), a former Iowa associate of Mr. Kallemyn’s and now v.p., First Federal S&L, Minneapolis, who acted as master of ceremonies, and Jerry Friedman (right), pres., Mortgage Guaranty Investment Corp., Milwaukee. SPECIAL recognition dinner to A honor Edward J . Kallemyn on his retirement from Mortgage Guaranty Corporation was attended by 191 per sons from several states last month at Des Moines Golf and Country Club in West Des Moines. Mr. Kallemyn has retired from active duty with MGIC as regional vice president, but will continue for a period of time as a consultant to assist company personnel taking over his duties. Ed Kallemyn was the seventh employe hired by MGIC after the One of the several guests who paid tribute to Mr. Kallemyn was C. S. “Chuck” John son (at mike), exec. v.p. (ret.), Brenton Banks, Inc., Des Moines, who was one of the first persons to encourage Mr. Kallemyn to sign an MGIC master contract. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis firm was established in Milwaukee in 1958 to provide for the first time a private company offering insurance of home mortgages and, eventually, a secondary market in which lenders could sell the loans and roll over mortgage money to assist new homebuyers. Mr. Kallemyn started with MGIC November 1, 1959, and personally developed the company’s business across a seven state a re a —Iowa, Nebraska, Missouri, South Dakota, North Dakota, Minnesota and Wis consin. As he developed business with financial institutions, he hired and trained new company personnel to work in each state to offer personal service to lenders. His efforts helped solidly establish MGIC in the upper midwest and the company springboarded from its midwest beginning to become the nation’s largest private insurer of home mortgages. Before joining MGIC Mr. K al lemyn had a distinguished career. Born on a southwestern Minnesota farm, he was reared in G rundy Center, la., and after high school graduation pitched for the Sioux Falls Canaries baseball club. While attending Central College in Pella, la., he met his wife, Dorothy. After leaving college he worked a year for the Iowa D epartm ent of Public Safety, leaving to join the Army. His fluency in German and Dutch langu ages earned him a job as a military courier with the headquarters staff of General George Patton in World War II. From that post he was appointed to the Criminal Investigation Divi sion. He was separated from the Army in October, 1945, as a Master Sergeant with a shirt-front full of military decorations and citations. He joined the Iowa Bureau of Criminal Investigation as an agent, then in January, 1948, was appointed executive secretary of the World War II Bonus Board in Iowa, administer ing and supervising distribution of $94 million to 260,000 Iowa veterans. He continued in state of Iowa work until joining MGIC in 1959. Included in the audience of 191 per sons were executive officers from 17 of the first 25 institutions where Mr. Kallemyn wrote master contracts for MGIC insurance, and all 25 are still in effect. CORPORATE NEWS . . . (Continued from page 19) company veteran. Originally Boston district manager, he was transferred to Minneapolis as a region manager in 1974 and later to the home office as financial sales director. N. A. CARLSON K. W. ROYER Mr. Royer, vice president for re search and developm ent, joined Travelers Express in 1978 and is en gaged in the com pany’s paym ent systems and electronic transfer appli cation and services. Previously he was a ssista n t vice president with First National Bank of Minneapolis and in 1976-77 was executive director of the Upper Midwest Automated Clearing House Association, which serves the Ninth Federal Reserve District. Travelers Express, a Greyhound subsidiary, is one of the largest money order issuers and credit union share draft processors in the U.S. It also provides financial institutions with official checks and offers clear ing services for Negotiable Orders of Withdrawal. Northwestern Banker, February, 1980 34 IF YOU NEED A CORRESPONDENT BANK that’s more than computerized print-outs and electronic transfer wizardry ..if you need a one-on-one relationship with a bank that treats your account like big business, Midland is the right size for you. Call us anytime: Mike Higgins, Stan Petersoa or Marge La Mosse. (WATS line at your service: 1-800752-4200.) In North and South Dakota call 1 800 328-8678 - - W E R E BIG ENOUGH TO KNOW HOW AND SMALL ENOUGH TO KNOW YOU. Midland National Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New President Elected at First National, Wayzata Lowell G. Wakefield has taken over as the new president of the First National Bank of Wayzata. For the past six years Mr. Wakefield served as president of the First Nation al Bank of Waconia and as a di rector of Klein Bancorporation. He succeeds Jo- L. G. WAKEFIELD seph Clemons, whose plans have not been made public. Mr. Wakefield attended the Uni versity of Minnesota. He previously held positions with Thorp, Wis., Fi nance; Citizens Bank and Trust Co. of H utchinson and N orthw estern State Bank of Appleton, where he was also president. Joins Boyd Bank as VP Keith Williams has joined the staff of the State Bank of Boyd in the position of vice president. He come to Boyd from Scotsdale, Ariz., and was formerly on the staff of the First State Bank in Okabena. 35 appointment of Carolyn Roberts as manager of the bank’s new Denfeld office. Ms. Sproat’s position represents an expansion of the marketing de partment. She received a BS degree from the University of Minnesota in 1973 and was formerly associated with the Amway Corp. Ms. Roberts has served as assist ant manager of the Miller Hill office since it opened in 1978. She joined the bank as a teller in 1976. The Denfeld review and comment on national leg office is now open in tem porary islative and regulatory issues affect quarters. ing agriculture, inform the state association of national agricultural banking activities and channel state and local farm finance issues and in formation to the national association. Two Named at Duluth Bank Dennis W. Dunne, president of the First National Bank of Duluth, has announced the election of Brenda Sproat as marketing officer and the B. SPROAT C. ROBERTS MBA 1980 Calendar of Events Six Workshops, Statewide Radisson Hotel, Bloomington Radisson Hotel, St. Paul Agricultural Workshops March 4-6 March 11-13 March 18-19 Marketing Conference April 22-23 Lending Conference May 5-8 June 16-17 Washington Legislative Conference 90th Annual Convention June22-27 Minnesota School of Banking Duluth Arena Auditorium St. Olaf College, Northfield Breaks Ground For Detached Facility Named Ag Action Banker Charles K. Pederson, senior vice president of Farmers & Merchants State Bank, Springfield, has again been ap pointed the Min nesota Agricultural Action Banker by the Minnesota Bank ers A ssociation Agricultural and Rural D evelop ment Committee. C. K. PEDERSON As MBA A gricultural Action Banker to the American Bankers A ssociation, Mr. Pederson will https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE STAFF and directors of the State Bank of Worthington, along with the town’s ambassadors, recently broke ground for the bank’s new detached facility. The new office will provide three drive-in lanes and parking areas for both customers and employes. Northwestern Banker, February, 1980 36 eter A. Heegaard, senior vice P president, has been named man ager of the $2.5 billion trust dep a r t m e n t of N o rth w e s te rn National Bank of Minneapolis. He continues to re p o rt to James C. Harris, vice chairm an, and retains his duties as manP. A. HEEGAARD ager of the investment department. He now assumes responsibility for all other areas of the trust department including personal trust and corpor ate services. Mr. Heegaard joined the bank in 1960, having received an MBA from Dartmouth’s Amos Tuck School of Business in 1958. He was named senior vice president in 1974 and deputy manager of the trust depart ment last July. *** Philip L. Jones was elected budget officer. He joined the bank’s budget department in 1977 and was previ ously employed by F irst Bank Minneapolis. He has an MBA in business analysis from Indiana Uni versity. *** National City Bank of Minneapolis has announced three staff changes, cording to C. Bernard Jacobs, c h a irm a n and chief executive officer. Roberta L. Comstock was named personal banking officer; Gerald F. Marick , a s s is ta n t vice president, will become the R- L. COMSTOCK officer in charge of the credit division, and Michael A. Summers, vice presi- Berardino R. [Bob] Lanza has been elected vice president in Northwest Bancorporation’s m arketing divi sion. He formerly served as assist ant vice p resi dent of market ing services. Mr. Lanzi join ed Banco in 1968 as a regional m a n a g e r for Northwest ComB- R- LANZI puter Services. He is a graduate of Long Beach (Calif.) State College. *** The board of Northwestern Na tional Bank of Saint Paul has an nounced the promotion of nine em ployes, according to G. Richard Slade, president. Carol Trusz was promoted to vice president from assistant vice presi dent and community development officer. A graduate of Temple Uni versity, she joined the bank last year and is responsible for Northwestern’s James W. Reagan, chairman and community development activities. president, American National Bank Stephen P. Gianoli was elected vice and Trust Company, St. Paul, has president. A graduate of Loras announced two promotions. 3 College in Dubuque, Iowa, he joins Edward L. Stowe, assistant vice I Northwestern from Midway National president, was elected vice president Bank. He will head the funds man and assistant manager of the trust agement area. division. He joined the bank’s trust G. F. MARICK M. A. SUMMERS John G. Adams was promoted to division in 1977. He is an attorney and hold a BS degree and an LLB dent, will take charge of group E of assistant vice president from trust investment officer. A graduate of the degree from the University of Wis the commercial banking division. Ms. Comstock has been employed University of Minnesota, he joined consin. at the bank since 1973, serving as a personal banking representative since 1976. Mr. Marick, who has been with National City since 1978, is a gradu ate of Wisconsin State University with a bachelors degree in business administration. Mr. Summers has been with the bank since 1978. He is a graduate of the University of Minnesota with a E. L. STOWE P. L. JONES degree in business administration. C. TRUSZ S. P. GIANOLI Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 "Part of myjob is to understand yourjob.” Jim G ow an, V ice President, Correspondent Banking Division (612) 291-5577 “Operating the w hole Correspondent Bank D ivision is my responsibility. A nd that means that it’s my duty to see that our correspondent customers are getting the best service possible. “To do that, I have to really understand correspondent banks’ needs, so that my division can tailor-make banking programs that best suit those needs. A n d I think the best way to stay in touch is by talking with correspondent bankers. T h at’s w hy I not only spend time out in the field, I also attend most of the regional conventions. T h e more time I spend with our correspondent customers, the more I learn. “Part of my job is to understand your job. S o next time you have an idea, a question or a problem, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis don’t hesitate to share it with m e— or with one of our people. Together w e can build better Correspondent services that truly serve your needs, and help you serve your customers best.” Correspondent Bsuik Division Member F.D.I.C. A Full Service Bank Wfedoourjob. ’Vbuget the credit 38 Twin Cities News First Bank Merchants of St. Paul has announced a number of staff changes. Additions include the election of Robert A. Rylance, vice president; Jay D. Hendrickson, sales finance officer, and Dean J. Saunders, con sumer banking officer. Promotions include Marie S. Kavaloski, cashier to senior operations officer; Shirley A. Johnson, assistant vice president and personal banking m anager; Kevin J. Riba and Ann M. Williams, personal banking officer; Odin J. Tollerud, consumer banking officer, and Margaret M. Capocasa, person nel officer. Kay A. Hirte, formerly a personal banking officer, is now a systems officer. Mr. Rylance was formerly an assistant vice president at First Bank Southdale. His present duties include E. S. EICHHORN J. B. WOLFE The board of First Bank System, Inc. has elected Elden S. Eichhorn vice president-audit division. Most recently he served as vice president and internal auditor of First Compu ter Corporation, St. Paul. James B. Wolfe has been appointed regional internal audit officer of the First System Services, Inc. He joined R. W. JORDAN C. M. JOHNSON FBS in 1973 and served most recently as an audit officer. the bank in 1974 and is currently the *** m anager of the tru s t investm ent division. N orthw estern N ational Bank of Dean E. Beyer was promoted to M inneapolis has announced the assistant vice president from opera election of three new officers. tions officer. He has been with North Michael J. Sadak was elected inter western since 1976 and is currently national banking officer, internation the manager of the computer center. al finance division of the corporate Rodney W. Jordan was elected banking- international department. assistant vice president in the capital He is a lending officer for the interna banking division. A graduate of tional banking Far East area. He Cornell University, he joins North formerly was with the Industrial In western from the First National Bank ternational Bank of New York. of Minneapolis. Loria Danage-Scott and David M. Catherine M. Johnson was pro McQuoid were elected human re moted to assistan t vice president sources officers. from investment officer. A graduate Ms. Danage-Scott joined North of the University of Minnesota, she western in 1978 and is the manager of joined Northwestern in 1976. training and developm ent in the Lori J. Loney was elected instal human resources department. ment loan officer. She joined the bank Mr. McQuoid joined Northwestern K. J. RIBA K. A. HIRTE in 1973 and has served as manager of in September, 1979, as staffing man commercial lending and bank man ager. the Endicott facility. Paul L. Nelson was elected com agement. Mr. Hendrickson was formerly at mercial services officer. He joined the First Bank of North Dakota First Bank Hopkins Northwestern in 1978 as a commer Fargo. His present duties include cial services representative. Displays Wildlife Art Carol W. Rohde was elected com dealer relationships in the timepay mercial loan officer and manager, department. Mr. Saunders, formerly with First small business department. A gradu ateci the College of St. Benedict, she Bank St. Paul, works in the areas of joins the bank from Banco where she Checking Plus, management of loan adjustments and general consumer was a credit analyst. banking. *** Ms. Kavaloski joined the bank in The F irst M innehaha N ational 1961, was promoted was to auditor in Bank of Minneapolis has announced 1974 and cashier in 1975. Ms. John the grand opening of its new bank son joined the bank in 1969 and was building located at 2800 E. Lake St. named a personal banking officer in FIRST Bank Hopkins recently had an ex The week-long celebration was held 1976. hibit of paintings depicting wildlife scenes Messrs. Riba and Tollerud joined loaned from an Eden Prairie gift shop. in December featuring an open house for the public. Refreshments were the bank in 1977, Ms. Williams in Pictured at the display, from left, are: Kevin served, tours given and visitors saw 1959, Ms. Capocasa in 1976 and Ms. Daniel, artist; John Raymond, pres., and Bruce Watson, v.p. Hirte in 1965. Santa Claus. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis nh 39 Look ForU sln San Francisca Jim Reagan Bob Sipple Don Johnson Bob Jacobson Bill Langford We look forward to seeing our Ninth Federal Reserve District banker friends at the Independent Bankers of America Convention. Come join us in our hospitality suite at the San Francisco Hilton, Imperial Ballroom, on Tuesday, March 11 from 6:00 - 8:00 p.m. Do stop by and let us talk with you about how American's full line of correspondent services can benefit your bank. Am erican National Bank and Trust C om pany Correspondent Division https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5th & Minnesota Street St. Paul, Minnesota 55101 (612)298-6331 Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 W hen farm ers, feeders and ranchers have to produce, so do you. Farm ers, m erch a n ts, m an u fa ctu rers, a lm o st a ll of you r cu sto m ers. T heir w ork ca n ’t w a it for go o d tim es. A nd go o d tim e s or bad, th e y a ll depend on y o u for help. So w h en y o u n eed a corresp on d en t, y o u n eed on e y o u ca n depend on. You n eed F irst M in n eap olis. F irst M in n ea p o lis g iv e s y o u o n e sim p le co m m itm en t. W hen y o u n eed us, w e’ll be th ere. P eriod. It’s o fficia l policy. So w h en yo u r cu sto m ers are ready to produce and y o u find y o u n eed a corresp on d en t w h o ca n produce, w e’ll be ready. If y o u h a v e q u estio n s ab out a n y of our C orrespondent S erv ices, c a ll Ken W ales, V ice P resid en t, (612) 370-4687. You’ll g et a n sw ers and a co m m itm en t y o u ca n co u n t on. J ft First M inneapolis "W hen you need us, we’ll he there.” F irst N ational B ank of M inneapolis, 120 S outh Sixth S treet • M inneapolis, MN 55402 • Member FDIC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 42 M innesota N ew s Dawson Bank Appoints Three and has performed teller duties. She Charles L. Kretchman, president of the Northwestern State Bank of Dawson, has an nounced that Sandra Smaagaard has been elected operations and m arketing officer. Ms. Smaagaard joined the bank in 1974 and m o st re c e n tly served as a man S. SMAAGAARD agement trainee. She has 15 V2 years of banking experience. Helen V. Holtan and Lyle Hanson have been elected to the board of di rectors. Mrs. Holtan has interests in farm, commercial and residential pro perties and is active in civic affairs. Mr. Hanson of Garfield Township represents the agricultural industry on the board. Pierz Bank Promotes Two W. T. Stoll, president of Farmers & Merchants State Bank of Pierz, has announced two staff changes. Karina Patnaude was promoted to assistant cashier in the loan depart ment. She has been with the bank 18 years and was most recently opera tions supervisor. Judy Fyten was advanced to audit or after working as head bookkeeper. She has been with the bank 10 years was previously employed at First Bank Minneapolis. Joins First Bank Austin William W. Strausburg, president of First Bank Austin, recently an nounced that Randall J. Mickelson has joined the bank as assistant vice president. Mr. Mickelson is respons ible for the agricultural loan depart ment. He comes from the Vinton (Iowa) State Bank where he was assistant vice president and agricultural repre sentative. He graduated from Iowa State University with a BA degree in agronomy in 1973. Hopkins Bank Names Sr. VP, Tells of Personnel Changes The board of First Bank Hopkins has elected Luther Magelssen senior vice president. M r. M a g e l s sen, who serves as second officer of the bank, is also senior credit officer. He joined the bank in 1973 as vice president and head of the commercial loan L. MAGELSSEN department. He joined First Bank System in 1956 and formerly was employed at First Bank Minnehaha, Minneapolis. Electronic communication brings th e National M unicipal Market to you in m inutes at th e F irst N ational Bank of St. Paul The “Blue List Bond Ticker” makes available on a CRT screen new listings and price changes as they happen in the Municipal Market. This new service together with the “Telerate”, Munifacts”, “J. J. Kenney” and “Chapdelaine” wires provides up-to-the-minute infor mation on the market needed to make sound investment decisions. Ask your investment representative how elec tronic communication can help manage your bond portfolio. First Bank Saint Paul A Full Service Bank Member FDIC Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 612-291-5659 Investment Services Group First National Bank of Saint Paul St. Paul, Minnesota G. BRINDISE R. PRIEBE Also named were Rod Brostrom and Pat Skeffington, personal bank ing officer; Gerald Brindise, sales fi nance officer, and Rod Priebe, finan cial planning officer. Mr. Brostrom joined the bank in 1978 as a management trainee and was most recently a personal banker. Ms. Skeffington, formerly a personal banker, joined the bank in 1969. Mr. Brindise has been with the bank since 1977 as a personal banker. Mr. Priebe has been with the bank since 1978 as unit manager of the sales finance department. Remodels Banking Facility The First National Bank of Fergus Falls celebrated the grand opening of its newly remodeled banking facility last month, according to Roger John son, president. Present quarters, occupied since 1966, were changed moving all the operational functions, including the proof departm ent, bookkeeping, savings and loan operations, into a lower level. The focal point of the facility is a new glass enclosed elevator which operates between the lower level and the second floor. Joins Virginia Bank Terry D. Matson has been elected loan officer in the instalment loan de p artm ent, F irst Bank Virginia, according to Ralph O. Johnston, president. He began his financial career at the First National Bank of Aberdeen, 43 IN TODAY’S MARKET YOU NEED A FINANCIAL GAME PIA N TO REACH YOUR GOAL. Use your assets to secure POWER PL/Of a tailor-made revolving credit line. Accounts receivable, inventories, machinery, equipment, land and buildings can be turned into a source of working capital-Asset Money™ The perfect play for companies short on capital, those looking toward expansion or growing firms eager to increase sales. Or money for buy-outs, mergers and acquisitions. Bank participations. Banco Financial Corporation can help you build your company’s future. Contact Clarence Adams, Lee Mork, Robert Olson, or Paul Weingart, (612) 372-7988, 830 Northwestern Bank Building, Minneapolis, Minnesota 55402. Banco Financial Corporation An Affiliate of Northwest Bancorporation END RUN Conserve working capital by leasing needed equipment. Decide on a Lease Purchase Contract with a guaranteed purchase option at the end of the term. Go with a leverage lease or purchase your equipment outright. Whatever your business, whatever the equipment you need—Lease Northwest, Inc. has the financing options that put it to work for you. Contact Dave Michael at 612/372-7416, Minneapolis; Roger Meier, 402-536-2310, Omaha; Jim Sheedy, 515-245-3392, Des Moines; or Tim Lundberg, 701-293-8136, Fargo. Lease Northwest, Inc. Affiliated with Northwest Bancorporation B a n co A C H IE V E Y O U R G O ALS W ITH M O N E Y S E R V IC E S FR O M AFFILIATES O F N O R T H W E S T BANCO RPO RATIO N. A SS E TS O VER $10 BILLION. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 44 Minnesota News S.D., and comes to Virginia from First Federal Savings & Loan Associ ation of Minneapolis. Mr. Matson has a degree in business administra tion from Northern State College, Aberdeen. Ridgedale State Bank Elects New Officer Barbara J. Anderson has been ap pointed assistant cashier for Ridge dale State Bank of M innetonka, according to Fred W inston, presi dent. She joined the bank in 1978 when it opened after serving as marketing officer B. J. ANDERSON at Americana State Bank of Edina. Promoted to Auditor Kenneth C. Sheehan, president of the First Robbinsdale State Bank, has announced th a t Evelyn W oolard has been elected aud itor. Mrs. Woolard joined the bank in 1970. She has held various po sitions in the operating de p a r t m e n t and E- WOOLARD has been assistan t auditor since April. Promoted at Richfield Bank Martin Chorzempa, president of the Richfield Bank & Trust Co., has announced that K. “Raja” Rajalingam has been named trust account officer, and Tim Bates was named data processing officer. Mr. Rajalingam joined the bank in 1973 as a teller and was named IRA/ Keogh administrator in 1978. He has First Bank Willmar Celebrates 50 Years FIRST BANK Willmar celebrated 50 years of banking on Litchfield Avenue in Decem ber, according to Oliver H. Hagen, pres. A week-long open house was held featuring a “Millionaire for a Day” drawing. Pictured are William G. Ferguson, Willmar mayor, and Joyce Elkjer, marketing rep., drawing the winning entry. The bank also offered free color family portraits by a local photo grapher in commemoration of the annivers ary. First Bank Willmar opened its doors in December, 1929, as the Security National Bank. a degree in economics from the Uni versity of Sri Lanka in Ceylon, India. Mr. Bates joined the bank last March as data processing manager. He has had previous bank experience and is a graduate of the Electronic Computer Programming Institute. Passes $2 Billion Mark The $2 billion mark of insurance in force has been reached by N orth Central Life, ac cording to Bur ton W. Bauernfeind, CLU, the newly - elected p r e s i d e n t and chief operating officer of the St. Paul - based in surance com pany. “ It took the B. W. BAUERNFEIND company 54 years to reach the first billion,” he remarked, “and only four to make the second!” The new landmark of two billion was reached during the third quarter of this year, the president said. Mr. Bauernfeind associates the company’s phenomenal growth with the long-time leadership of Theodore Sanborn, his predecessor as president until August, 1979, and now chief executive officer and chairman of the board for North Central. It was Mr. Sanborn, his successor said, who guided the com pany’s growth from a small Minnesota in surer to a national leader in creditrelated insurance that it is today. Fergus Falls Bank Names 2 K. RAJALINGAM T. BATES Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Robert D. Phillips, president of Northwestern National Bank of Fer gus Falls, recently announced the election of Joyce Clausen to human resource officer and Darlene Hanson to assistant marketing officer. Ms. Clausen joined the bank in J. CLAUSEN D. HANSON 1952. She has worked in several de partments and had been a customer service officer since 1975. Ms. Hanson has been in banking since 1967, including a position at First State Bank in Minneota. In 1970 she joined the Northwestern National. St. Louis Fed Makes Three Appointments Armand C. Stalnaker of St. Louis and William B. Walton of Memphis have been redesignated chairman and deputy chairman, respectively, of the board of directors of the Federal Re serve Bank of St. Louis, President Lawrence K. Roos announced. Clarence C. Barksdale of St. Louis also was reappointed to the Federal Advisory Council, which makes rec ommendations to the Board of Gov ernors of the Federal Reserve System on economic, banking and policy matters. Mr. Stalnaker is chairman of Gen eral American Life Insurance Co. Mr. Walton is vice chairman of Holiday Inns Inc. Mr. Barksdale was named for the third time by directors of the St. Louis bank to represent it on the Fed eral Advisory Council, which is com posed of representatives of each of the 12 Federal Reserve District banks. He is chairman and chief executive officer of F irst Union Bancorporation, parent company of First Na tional Bank of St. Louis. 45 S till Movin’ On Up Our 15th. Year Statem ent of Condition December 31,1979 and 1978 Resources December 31 1979 1978 26,096,126 $ 25,275,762 20 ,000,000 15,000,000 Cash and Due from B a n k s......................................... Interest Bearing Time Deposits with Foreign Banks Investment Securities: U.S. Treasury.......................................................... U.S. Government Agencies..................................... Obligations of States and Political Subdivisions .. Other Securities..................................................... Total Investment S ecurities............................ Trading Account Securities..................................... Federal Funds Sold and Securities Purchased Under Agreements to R esell................................ Loans Net of Reserve for Loan Losses 1979 $1,933,144; 1978 $1,587,935 and unearned discount 1979 $897,752; 1978 $1,237,781.......... Leasehold Improvements and E quipm ent............ Accrued Income Receivable ................................... Other A s s e ts ............................................................ Total Resources 13,805,016 2,767,012 30,759,834 681,001 7,573,176 933,200 34,536,080 581,750 48,012,863 809,461 43,624,206 425,515 2 ,000,000 15,300,000 149,374,816 1,765,152 4,269,608 1,660,709 128,828,831 1,642,042 3,191,315 3,789,773 $237,077,444 $253,988,735 L iab ilities 6* Stockholders’ Equity Demand.......................................................................................................................... Time............................................................................................................................... Foreign Branch ............................................................................................................ Total Deposits.......................................... Federal Funds Purchased and Securities Sold Under Agreements to Repurchase ............ Other Borrowed F un d s................................... Other Liabilities.............................................. Total Liabilities.......................................................................................................... Stockholders’ Equity: Common Stock, Par Value $5.00 Authorized Shares 1979—2,500,000; 1978—1,750,000 Issued and Outstanding 1979—2,000,000; 1978—1,585,732........................................................................................................ Surplus.......................................................................................................................... Undivided P rofits................................................................................................................ Total Stockholders’ Equity Total Liabilities and Stockholders’ Equity L.W. Andreas Director Archer-Daniels-Midland Company Sister Mary Madonna Ashton, CSJ President and Chief Executive Officer St. Mary’s Hospital Howard E. Barnhill President, Chairman of the Board & Chief Executive Officer North American Life and Casualty Company $ 73,191,361 111,886,489 14,619,398 $ 61,658,539 109,356,744 22,281,646 199,697,248 193,296,929 18,065,857 3,965,683 4,857,046 226,585,834 11,101,641 3,672,607 3,913,140 211,984,317 10,000,000 10,000,000 7,402,901 27,402,901 25,093,127 $253,988,735 $237,077,444 Board of Directors C. Bernard Jacobs Chairman of the Board & Chief Executive Officer Marvin Borman Partner Maslon, Kaplan, Edelman, Borman, Brand and McNulty 7,928,660 7,928,660 9,235,807 Edward C. Brown, Jr. Retired President National City Bank John H. Daniels Chairman of the Board National City Bancorporation Frederick L. Doming President National City Bancorporation Kenneth H. Dahlberg Chairman of the Board Detection Sciences, Inc. James B. Goetz President Westland Capitol Corporation James H. Hearon, HI President and Chief Operating Officer National City Bank Walter W. H eller Regents’ Professor of Economics University of Minnesota C. Wilbur Peters President Minnesota Fabrics, Inc. Ralph C. Tum quist Chairman of the Board & Chief Executive Officer Turnquist Paper Company NATIONAL CITY BANK 75 South 5th St. Mpls., M I 55402 612-340-3000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OF MINNEAPOLIS A National City Bancorporation Affiliate A FULlA !SERVICE] BANK. Member F.D.I.C. Northwestern Banker, February, 1980 46 cago City Bank & Trust Co.; George Lazarus, Chicago Tribbune. Annual meeting and election of officers. Illinois P.M. 1:45 Workshops—A. Direct Mail. B. The Time is NOW. C. EFT as a Marketing Tool. 3:00 Coffee break. 3:15 Workshops repeated. 5:00 Reception. G. Weir, p res., Chicago W. J . Hocter, exec, v . p . , Chicago V _____ Illinois Bankers Association Sponsors: Consumer Credit Conference Feb. 13-14 consumer credit division will Iat BA’s conduct its 32nd annual conference the Holiday Inn East in Springfield February 13-14. Jerom e R. Thomas of American National Bank & Trust Co., Chicago, is the confer ence chairman. The schedule follows: Wednesday, February 13 A.M. 8:00 Registration and exhibits. 8:45 First General Session. Welcome: James E. Brown, president, consumer credit di vision, vice president, State Bank of Collinsville. Presiding: Jerome R. Thomas 9:00 You Make the Difference—Bill Gove, sales consultant. 9:45 Outlook for the Automotive Industry. 10:30 Coffee Break 10:45 Bankruptcy — WilliamV. A ltenberger and Leonard Groupe, attorneys. 11:30 Reception. Noon Luncheon. Remarks: Gavin Weir, presi dent, IB A, and chairman and president, Chicago City Bank & Trust Co. Chrysler Looks at 1980 —John W. Day, group vice president and controller, Chrysler Corp. P.M. 1:45 Workshops—A. Structuring a Profitable Loan. B. B ank ruptcy. C. Compliance for Con sumer Lending. 3:00 Coffee break. 3:15 Workshops repeated. 5:30 Reception. 6:30 Banquet. Success Can Be Fun — Doc Blakely, humor columnist. Thursday, February 14 A.M. 8:00 Registration and exhibits. 8:45 Second General Session. Presiding: B.J. King, first vice president, consumer credit di vision, and assistant vice pres ident, Herrin Security Bank. Annual meeting and election of officers. 9:00 Legislative Update—State and Federal. 10:00 Coffee break. 10:15 And Now the 80s, Consumer Lenders in a New Era—Steve Falken, Dealing with Change, Inc. 11:15 Adjournment. □ Marketing and PR Conference Feb. 27-28 HE Illinois Bankers Association T will sponsor its 28th annual Mar keting and PR Conference at the Hyatt Regency O’Hare in Chicago February 27-28. James Fitzgerald of Champaign County Bank & Trust Co., Urbana, is the conference chair man. The schedule follows: Wednesday, February 27 A.M. 8:00 Registration. 9:00 First General Session. Presiding: James Fitzgerald. Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9:45 10:30 10:45 11:30 Noon Thursday, February 28 A.M. 8:00 Registration and exhibits. 8:30 Second General Session. Identification—Murray Raphel, Murray Raphel Adver tising, and Ray Considine, Considine & Associates. 9:30 Anatomy of an Ad—Raphel and Considine. 10:00 Coffee break. 10:15 60 Ideas in 60 Minutes (com parison ads) —Raphel and Con sidine. 11:15 Telephone Marketing—Ra phel and Considine. 12:15 Adjournment. □ Promoted to Exec. VPs At Elmhurst National Following a recent board meeting at Elmhurst National Bank, Frank C. R athje, president, announced the promotion of Arthur W. Plass and Everett F. Seegers to the position of executive vice president. Both men A. W. PLASS E. F. SEEGERS began their careers at the bank in Importance of Sales to Your 1946 upon completion of m ilitary Bank—Gus Economos, service with the Navy. DePaul University. Mr. Plass started as a teller and The Practical Approach to Im proving Cross Sales and New has worked in the instalment, real estate and commercial loan depart Accounts—Kent D. Stickler, m ents. His former position was Financial Shares Corp. senior vice president-loans and he is a Coffee break. Officer Call, We’re Beginning member of the board of directors. Mr. Seegers has worked in various to Break Through—Kent capacities in the bank, which include Stickler. auditor, com ptroller, senior vice Reception. president-investments and secretary Luncheon. Remarks: Gavin of the board of directors. He is a Weir, president, IBA, and chairman and president, Chi graduate of Elmhurst College. 47 FINANCIAL FUEL FROM HELLER The resource to tap when a customer wants to borrow more than you want to lend. W hen a customer or prospect requests a larger loan than you may be willing to provide, you don’t have to lose him. A Bank/Heller participation loan lets you maximize your custom er’s credit availability. You continue to provide his normal banking functions, retain his deposit balances and generate interest from your portion of the loan. Heller assumes responsibility for all administrative and supervisory details. Heller has provided banks with this kind of financial creativity for over a half century. Which is why more resourceful bankers today are tapping Financial Fuel from Heller — the proven money resource. HELLER Financial Services Financial Fuel from Heller" is a service mark of W alter E. Heller & Company. Walter E. Heller & Company 105 W. Adams St., Chicago, III. 60603 • New York • Boston • Philadelphia • Baltimore • Syracuse • Minneapolis • Detroit Kansas City • Denver • Atlanta • Charlotte • Miami • Birmingham • Columbia, S.C. • New Orleans • Houston • Dallas • San Antonio • Phoenix • Tucson Albuquerque • El Paso • Salt Lake City • Los Angeles • San Francisco • Irvine, CA • Portland • Seattle • Spokane • San Juan, P.R. Heller services also available in Canada and twenty one other countries around the world. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 48 Illinois News Top Management Changes Told at Suburban, Palatine Gordon A. Ramsay III has been elected vice chairman of the board and Francis Catini has been elected president of Suburban National Bank of Palatine. Mr. Ramsay, formerly president of the Palatine bank, began his financial career with the First National Bank of Chicago in 1953. Prior to joining Suburban National Bank of Palatine in 1973 he was with the Valley Bank of South Elgin as chief executive officer. Mr. Catini joined the Suburban Bank Group in 1972 at the Suburban Bank of Rolling Meadows. In 1975 he was named vice president and cashier of Suburban National Bank of Pala tine. In 1978 he joined Suburban Bank of Cary-Grove as vice president and cashier and later became senior vice president and a director. Mr. Catini received a BBA degree in marketing from Loyola University in 1969. Named President at Aurora Gerald P. Czuba has been elected president of the First Security Bank of Fox Valley, Aurora, according to J. Jay Gerber, chairman. Mr. Czuba was named executive vice president of the bank two years ago. Previously he was vice president and cashier of the Bank of Hinsdale. He joined that bank in 1968 after completing his service in the Army. Joins Schaumburg Bank Thomas Lamoureaux has been ap pointed cashier of the Suburban Na tional Bank of Woodfield, Schaum burg, according to Douglas A. MacNiff, president. Formerly assistant cashier of Sub urban Bank of Rolling Meadows, he began his banking career with the Suburban Bank Group in 1977. Mr. Lamoureaux is a graduate of North ern Illinois University. New Bank Names Cashier Charles Wendt, president of the Andalusia Community Bank, has an nounced the promotion of Rita C. Jackson to cashier. Mrs. Jackson has been operations manager since the new ly-chartered bank opened for business last October. She was formerly employed at the Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1980 IBA Group Meetings Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10 March 21 March 20 March 19 March 18 March 25 March 27 March 4 March 26 March 6 March 5 Chicago Holiday Inn South, Joliet O’Hare Hyatt Regency Hotel Emerald Hills Country Club, Sterling Holiday Inn East, Springfield Continental Regency, Peoria Holiday Inn, Charleston Holiday Inn, Decatur Augustine’s, Belleville SIU, Carbondale National Bank of Aledo, where she in the consumer credit department; Robert A. Grover and Robert T. Ishbegan her banking career in 1968. mael, consumer loan officers. Mr. Grover has been with the bank for six years, while Mr. Ishmael has been Two Join Service Firm there two years, coming from the Daniel A. Hyland, president of Crown Banking Services, Mt. Pro Affiliated Bank of Madison. spect, has announced the addition of two employes to the staff, Herb Gib son and Kathy Franke. Both individ uals have had prior experience in bank officer placement. Crown specializes in the placement of bank officers and also acts as a broker for bank sales. Appointments Announced At 1st National Rockford Several prom otions have been made at the First National Bank & Trust Company of Rockford. Ralph E. Dyreson has been named senior vice president of the consumer credit department. Mr. Dyreson has been with the bank for 21 years and was named a vice president in 1966. William E. Gorman has been named senior vice president of the commercial loan departm ent. Mr. Gorman has been with the bank for 15 years and was named a vice president in 1973. Carl A. Accardo was made vice president of the commercial loan de partment. Mr. Accardo has been with First National for 23 years and was made an assistant vice president in 1973. Robert C. Dempsey has been pro moted to assistant vice president of the consumer credit department after serving as operations officer. He has been with the bank for 17 years. Richard E. Stokes will replace Mr. Dempsey as operations officer. Mr. Stokes has been the assistant oper ations officer for the past two years. He joined the bank in 1973. Two new officers were also named HE board of directors of Capitol T Bank of Chicago has announced that Sam Scott, former executive vice president of the bank, has been named pres ident. He suc ceeds Jerry R. Scandiff who has retired. Prior to jo in ing Capitol Bank, S. SCOTT Mr. Scott was executive vice president and board member of the Bank of Chicago since 1971. He held various financial exec utive positions with the Kemper Or ganization, the parent company of the Bank of Chicago, since 1961. Early in his career he was with the General Finance Corp. His banker has to recognize the big potential in a small business. Every successful bank has a few of them — the very big, very loyal customers who started small and stayed with the same banker. Stayed because they got muchneeded help when they were big only in potential. It takes extraordinary vision and a serious commitment to the community to be the banker who gets in on the ground floor. And it’s easier when your correspondent bankers have the same kind of vision. At American National, we started long term relationships with some of our best https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and biggest customers by looking hard to find the bright side. W ere as hard-nosed as the next guy about getting a sound deal, with all the necessary information. But we won’t back away from good companies just because they’re small companies. We spend almost all our time on business banking. And we’ve got the experience it takes to help you help a small venture grow. Shake hands with American National. T he bank for business. 50 Chicago News The Merchandise National Bank of Chicago recently announced several new appointments. Named a ssistan t vice president were Carl E. Chevedden Jr. and John H. Ebert. Mr. Chevedden, with the bank since 1968, has served in the instal ment loan departm ent previously holding positions as assistant cashier and instalm ent loan officer. Mr. Ebert, with the bank since 1976, has served in several positions with the credit section of the commercial loan department. Named operations officer were Patricia Ann Falbo and Larry E. Starzec. Mrs. Falbo, with Merchandise Na tional since 1966, has held several positions in the data processing de partment. Mr. Starzec served for the past five years with the Bank of Lakehurst in Waukegan. Named as auditor is Patricia Lynne Emans. Ms. Emans, with Merchan dise National since 1970, has held several positions in the auditing de partment. *** Seaway National Bank Breaks Ground IN A CEREMONY attended by the board of directors and local dignitaries, Seaway Na tional Bank of Chicago recently broke ground for a $1 million, 19,450 square foot addition to its main office. Shown above tossing out the traditional first shovels of dirt are Richard K. Pearson, president & c.e.o., left, and Moses T. Proffitt, the bank’s first chairman who is currently an honorary director. An architect’s rendering of the new construction appears on the right. The addition marks the fifth major construction project undertaken by the bank since it opened for business 15 years ago. degree. Mr. Bolda, who joined the award, at the Direct Mail Marketing bank in 1977, has a BS degree in ac Association’s recent annual confer counting from San Sebastian College ence in New Orleans. The award was given for a fund in the Philippines. Ms. Campbell joined the bank in raising campaign sponsored by the 1972. She works in the vault and bank for the Lincoln Square Chamber Dennis Voss, chairman of the First collection division. Ms. Lonero joined of Commerce. State Bank of Chicago and Parkway the bank in 1970 and was formerly The campaign’s objective was to Bank & Trust Company, Harwood executive secretary. increase sales in the local area and Heights, has announced four promo identify Lincoln Square as a good *** tions. Named at Parkway Bank were community in which to live. A direct Fred Frankston, auditor, and Romeo Emory W illiam s, chairm an and response campaign was sent to local S. Bolda, assistant cashier. Promot chief executive officer of the Sears m erchants who responded with ed at First State were Darlene Camp Bank and Trust monthly commitments totalling more bell and Dorothy A. Lonero, assist than $40,000. With these funds, the Co mp a n y , has ant cashier. Chamber of Commerce was able to announced the Mr. Frankston, a CPA, has a BS following promo put on more than 20 sales and events degree in accounting and a masters including Chicago’s largest and finest tions: Oktoberfest. Jack S. Cleve *** land, senior vice president; D en The Bank Marketing Association nis J. Reidy and has named the members of its 1980 Adeline Conti, Advertising Council and 1980 Public second vice presRelations Council. i d e n t : D e b r a J. S. CLEVELAND Named to the Advertising Council Chandler and Rosine Dunne, assist from the midwest are John V. Egan, ant vice president; Frances Hansel Jr., vice president and director, cor and Barbara Tomczak, operations porate communications, Continental officer; Darlene Nowak, documenta Bank of Chicago, and Lark Billick, F. FRANKSTON R. S. BOLDA tion officer; Roger Wittmer, account assistant vice president and advertis ing officer, and Maureen Rafa and ing manager, Marine Banks, Mil Susan L. W eidenbach, a ssistan t waukee, Wis. Before joining Marine trust administration officer. Banks several years ago, Mr. Billick *** was marketing director for the Iowa Bankers Association, Des Moines. Named to the Public Relations Michael Moebs, vice president and m arketing director of Commercial Council from the midwest is Gerald National Bank of Chicago, was pre E. Buldak, second vice president and sented with the ECHO Award, the manager of press relations, Contin direct m arketing in d u stry ’s top ental Bank of Chicago. D. CAMPBELL D. A. LONERO Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 / -------------------------------------- South Dakota and director of marketing in 1977 and vice president last year. Joins First Bank Clark First Bank Clark has announced the appointment of Robert Orton as assistant vice president. He comes to G. H. Waltner, p rès., F re em an Clark from W essington Springs J . M. S chwar tz, exec. m g r . , Pierre where he was a loan officer for the Na V tional Bank of South Dakota for the past five years. National Bank of S.D. dent and second officer at First Bank Mr. Orton has been with First Windom, Minn. He has served at Bank System since 1973 and is a Announces Appointments other First Bank System affiliates in graduate of Augustana College with a The board of the National Bank of Fargo and Spring Valley, Minn. bachelors degree in business. South Dakota has elected three new Mr. Currier rejoins FBS after serv officers, accord ing as vice president and director of ing to Nels E. personnel at United Bank of Denver Western Bank Names Three Tumquist, presi and as president of Republic National T. M. Reardon, president of West dent and chief in Englewood, Colo. He began his ern Bank, Sioux Falls, has announced executive officer. banking career with FBS in Man three officer elec Omer Trom kato, Minn. tions. was elected vice Mr. Kroger served as an insurance Timothy C . p r e s i d e n t and representative in Rapid City prior to Keller, Western ma n a g e r , Ho t •>;, joining the Hot Springs insurance Bank West, has Springs branch; agency. been promoted to Robert Currier a s s i s t a n t vice was elected vice TROM president - con president and m anager, consumer FBS Promotes Renken services division, main office, Sioux First Bank System, Inc. has an sumer loans. He Falls, and Merlin Kroger was elected nounced the promotion of Randy L. has been with the bank four years Renken to assist and was formerly T. C. KELLER ant vice p resi consumer loan officer. Mr. Keller is a dent and group manager - South D akota group, Sioux Falls. A graduate of Dakota State College in Madi son, he joined the National Bank of R. CURRIER M. KROGER South Dakota as R- L- RENKEN insurance manager at Hot Springs. a management trainee in 1972. He Mr. Trom was formerly vice presi was named assistant vice president D. J. KLEIN C. G. WOSJE NW Sioux Falls Opens Home Loan Center C. P. “Buck” Moore, center, pres., NW Nat’l. Bank, and pres., Sioux Falls Area Chamber of Commerce, wore two hats recently as he officiated at the ribbon cutting ceremony marking the opening of the bank’s new Home Loan Center. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National Bank of Sioux Falls recently held N a grand opening at the new Home orthwestern Loan Center in newly-remodeled quarters at the bank. Richard G. Munce, vice president and manager of the center, was presented with a commemorative plaque. The new center features private offices for confidential discussion of financial needs with customers. The Mortgage Service Center will handle loan processing for all types of home loans. Over 100 realtors were given a tour of the facility and were guests at a program presented by David Beal, president of Banco Mortgage Com pany. Northwestern Banker, February, 1980 52 South Dakota News graduate of South Dakota State Uni versity. Daryl J. Klein has been elected customer service officer at Western Bank East. He joined the bank’s real estate mortgage loan department in 1977 and is a graduate of Mankato State University. Connie G. Wosje, Western Bank West, has been promoted to vice president of personnel. She assumed officer status in 1974 following 12 years experience at the bank. She formerly was assistant vice presi dent/ operations/personnel. upper peninsula of Michigan. Prices in the area, though, will rise almost 13 % this year, two percentage points faster than in 1979, the Quar terly says. These forecasts are based on the Fed’s small econometric model of the Ninth District. Two strong industries in the region are expected to be manufacturing and agriculture, according to recent sur veys by the bank. In the first half of 1980, district manufacturers expect their sales to be up 11 % from a year earlier, the Quarterly says. And most rural bankers tell the Fed they think early 1980 farm income in their areas will equal or surpass that in early 1979. Retailing and homebuilding are not expected to do that well, however. The Fed’s model predicts that infla tion will offset any increases in retail sales. And indicators of future resi dential building activity point down ward, the Quarterly says. No Regional Recession But Higher Prices Fed Says There will be no recession in the Upper Midwest in 1980, but inflation will be in double-digits again, re searchers at the Federal Reserve Bank of Minneapolis predict. In the b an k ’s la te st Q uarterly Review, Fed researchers say busi nesses in the Ninth Federal Reserve District will add 2 % more workers to their payrolls in 1980. They say the district’s unemployment rate will be only 4.5%, about the same as in 1979. The district includes Minnesota, Montana, North and South Dakota, northw estern W isconsin, and the Farm ers a n d M erchants B ank Huron, South Dakota THE NEW f a c i l i t y f o r t h e C h a m b e r la in o ffic e of N o rth w e s te rn N a tio n a l Bank, Sioux Falls, is scheduled for c om p le tion this summer. Statement of Condition, December 3 1 ,1$79 ASSETS Cash and Due from Banks ................................................................................. $ 6,363,948.48 United States Government Obligations .......................................................... 5,346,412.80 State and Municipal Bonds ............................................................................... 8,479,543.95 Loans and Discounts .......................................................................................... 43,083,319.01 Overdrafts ............................................................................................................. 76,398.93 Stock in Federal Reserve Bank ......................................................................... 90,000.00 Federal Funds Sold ............................................................................................ 4,700,000.00 Banking house, safety deposit vaults, after hour depository, furniture and fixtures ................................................................ 771,527.14 Interest Earned But Not Collected ................................................................... 936,299.62 Prepaid Expense and Insurance ....................................................................... 190,683.17 Total ...................................................................................................................... $70,038,133.10 LIABILITIES Capital Stock [common] ............................................. Surplus ........................................................................... Undivided P r o fits .......................................................... Total Capital A c c o u n ts ............................................... Reserve for Losses ...................................................... Interest Collected, Not Earned ................................ Expense and Interest A c c ru e d .................................. Deposits ....................................................................... Total ........................................................................... W. M. GRIFFITH, Chairman of Board L. L. STEELE, President (Retired) E. E. PUGSLEY, Exec. Vice Pres, and Cashier MERLE MARSHALL, Exec. Vice President JACK STEELE, Vice Pres, and Trust Officer ROBERT G. OLSON, Trust Officer WARREN GILCHRIST, Vice President and Mgr. Hitchcock Branch GUS J. CARLSON, Vice President LARRY MATTKE, Asst. Vice President $ 1, 000 , 000.00 2 , 000 , 000.00 1,988,898.24 ............................$ 4,988.898.24 ............................ 498,514.94 ............................ 226,446.81 ............................ 746,575.99 ............................ 63,577,697.12 .............................. $70,038,133.10 ROBERT E. GLANZER, Farm Representative DELMER BOYD, Asst. Cashier LAVERNE E. BARTA, Asst. Cashier A. L. LOVETT, Asst. Cashier SCOTT DEXTER, Asst. Cashier DONALDTSCHETTER, Asst. Cashier CLARICE McMANUS, Asst. Cashier PHYLLIS ROSS, Asst. Cashier TERRY ZELL, Auditor Member FDIC • Member Federal Reserve System Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FFICIAL ground breaking cere O monies were recently held in Cham berlain signifying the com mencement of construction of a new banking facility on the comer of Main and Kings Street. The building, an office of North w estern N ational Bank of Sioux Falls, will be a two-story construct ion containing 11,742 square feet. The main banking floor will be 8,261 square feet and the second floor will be3,481 square feet, which will house the bookkeeping department, lounge and storage area. The exterior will be brick and the interior will contain a blend of wood, brick, vinyl and fabric in earth-tones to achieve an environment of con temporary warmth and convenience. The new building will have parking facilities for 38 cars, drive-in banking facilities, a walk-up window, a night depository and letter drop. Occupancy is scheduled for the summer of 1980. 53 economics from North Dakota State University. Joins Halliday Bank as VP Bismarck Bank Names Three Bob W estbee, president of the First National Bank & Trust Co. of B i s ma r c k , r e cently announced three staff a d vancements. June Bohn was named an officer and manager of the collections department. She joined the bank in D e c e m b e r , 1978, as a trainee. Kathy Mertz was named an officer and assistant manager of the Arrow- Gordon H. Hoffner has joined The Union Bank, Halliday, as a vice pres ident and loan officer. He has also been elected to the board of directors. Mr. Hoffner began his banking career with the Citizens Bank of Mobridge, S.D., in 1971. Since 1976 he kota affiliates since 1976. He has a served as executive vice president in bachelors degree from Minot State charge of commercial and real estate College and a m asters degree in loans at Citizens. NDBA 1980 Calendar of Events March 17-19 March 26-27 Legislative Visit Consumer Credit Conference May 19-20 Annual Convention June8-13 School of Banking July 20-25 Upper Midwest Agricultural Credit Conference Washington, D.C. Kirkwood Motor Inn, Bismarck Kirkwood Motor Inn, Bismarck University of N.D., Grand Forks Medora Bank of N.D. Plans ‘Mid-Winter Break’ HE annual “Mid-Winter Break” T hosted by the Bank of North Dakota is slated for February 20-22 K. MERTZ K. ULMER head office. She joined the bank in 1973 and was most recently an oper ations supervisor. Keith Ulmer was named assistant m anager of the personal banking center. He joined the bank in 1973 and was appointed an officer in 1978. FBS Promotes Danielson First Bank System, Inc. has an nounced the promotion of Harley J. Danielson to as sistant vice pres ident and group marketing man ager - North Da kota group, Far go. Mr. Danielson has served as regional market ing manager for FBS’s North Da- H. J. DANIELSON https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis at the Kirkwood Motor Inn in Bis marck. An outstanding conference is plan ned this year, according to R. E. Caudel, senior vice president of the bank’s commercial loan and corre spondent banking department. Also featured will be entertainment and a special spouses program . Details follow: Wednesday, February 20 A.M. 9:30 Registration. 11:05 Call to order—R.E. Caudel. 11:10 Welcome—Arthur A. Link, North Dakota governor. 11:30 Conference resume—H. L. Thomdal, president, Bank of North Dakota. Noon Luncheon. P.M. 1:20 What You Are Is Where You Were When—Terry Heineman, Morris Massey Associ ates, Boulder, Colo. 2:30 Agriculture, The State of the A rt—Thomas L. Frey, ag fi nance professor, University of Illinois. 4:05 Housing, Where Do We Go From Here? —Ronald D. John son, vice president, First State Bank of Oregon, Portland. 4:51 Adjourn. 7:00 Smorgasbord Dinner. Thursday, February 21 A.M. 7:30 Breakfast buffet. 9:00 Call to order. 9:05 News and comments—A1 Gustin, farm director, KFYR radio & television. 9:20 FIRA (Or Confusion Unlimit ed)—Hudley Crockett, Finan cial Institution Services, Nashville, Tenn. 10:45 Where and Whenergy! —Dr. Edwin Amend, Cooperative Extension Service, NDSU, Fargo. Noon Luncheon. P.M. 1:20 Energy for the Next Decade Northwestern Banker, February, 1980 54 from North Dakota—Arthur R. Seder Jr., American Natur al Resources Co., Detroit, Mich. 2:30 Transportation, Is There an Answer? —Bruce Hagen, state public service commissioner. 3:30 The New Bankruptcy Laws— Richard A. Pollard, Triangle Management Co., Pittsburgh, Pa. $q50 Adjourn. Through Communications and Negotiations—Michael Emig, Praxes Management Con cepts, Woodbury, Conn. 10:45 Address by Philip Coldwell, Friday, February 22 Board of Governors, Federal Reserve System (if his sche dule permits). Breakfast buffet. 11:35 Closing remarks and adjourn Call to order. ment—Ruben Sailer, senior News and comments—A1 Gustin. vice president, Bank of North Dakota. □ Developing Leadership 7:15 Banquet. 8:15 After Dinner Theater—Side by Side by Sondheim. A.M. 7:30 9:00 9:05 9:20 development officer. Prior to joining the bank he was employed in the retail business. He is a graduate of the University of Minnesota. Sheila Sharkey and Terry Lee were advanced to personal banking offi cers. Mrs. Sharkey has been with the bank nine years and has served as a new accounts clerk, supervisor and personal banker. Mr. Lee joined the bank in 1978 as Bank W est G reat Falls and was an accounts ad ju sto r in the Top Management Changes elected cashier in 1965. In 1967 he instalment loan department. He is a Told at Great Falls Bank joined First Bank Butte where he be Montana State University graduate. The board of First Bank West came manager of the real estate mort Great Falls has elected James W. gage department in 1968 and was Connelly chair promoted to vice president in charge Retires at Helena man of the board, of commercial loans in 1973. He T. Chase Patrick has retired as Robert M. Panrejoined First Bank West Great Falls assistant vice president and director cich p r e s i d e n t in 1976 as senior vice president and of marketing at and a director, second officer. First Bank Hel and George R. Mr. Reece began his banking ena, according to Reece vice presi career in 1966 at the First National Earl W. Johnjjj| dent and second Bank of Missoula. In 1976 he joined son, president. officer. Mr. Con the First Security Bank of Livingston Mr. Patrick joinnelly, who has and in 1977 joined First Bank James ed the bank in announced his re town, N.D., where he now serves as 1936 as a messen>¿ | tirem ent effect- J- w- CONNELLY vice president and agricultural repre ger and after a K v. ive July 31, will continue as chief sentative. leave rej oi ned * executive officer. the bank in 1948. SWPr w 1* " Mr. Connelly joined First Bank He served in the T. C. PATRICK System, Inc. in 1940 as a trainee at Security Bank, Billings state legislature as a representative First Bank Willmar, Minn. He has from 1967-72. served at First Bank West Great Announces Promotions Richard A. Kjoss, president of Se Falls since the bank’s inception in 1955, when he was elected vice presi curity Bank, Billings, has announced Joins Fed Branch Board dent and managing officer. He was five promotions. Agnes Hoffman, director of the elected president and m anaging Harry W. Nelson, president of the real estate department, was promot First National Bank in Bozeman, has officer in 1957. Mr. Pancich began his banking ed to vice president. She joined the been named to the board of directors career in 1959 as a trainee at First bank in 1969 as an insurance clerk, of the Helena branch of the Federal was named mortgage loan officer in Reserve Bank of Minneapolis. He 1975, assistant vice president in 1977 succeeds W illiam B. Andrews of and head of the real estate depart Helena on the board. ment last March. Norris E. Hanford of Fort Benton Connie Marshall was promoted to was reappointed by the Board of assistant vice president in the per Governors of the Federal Reserve sonal banking division. She joined System to a second two-year term on the bank in 1969 and formerly served the board. The M inneapolis Fed in the marketing and customer serv board also reappointed Lynn D. Groices departments. bel, president of the First National Frank E. Hemphill was appointed Bank in Glasgow, to a second twoR. M. PANCICH G. R. REECE assistant vice president and business year term on the branch board. Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 Colorado pal accounting officer, his responsi bilities include accounting, tax and risk management. Mr. Schnabel joined the bank in 1979 as a corporate trust administra tor. He later became a corporate trust officer and subsequently a tru s t officer. Prior to joining United Bank of Denver, he practiced law for six years, including two years with the Denver District Attorney’s Office. Heads Fed Bank Branch C. B. Hurtt, vice president of the Denver division of Martin Marietta Aerospace, has been designated v ______________________________ y chairman of the Denver branch of the Federal Reserve Bank of Kansas Holding Company Tells of City. Promotions, Appointment Mr. H urtt was appointed recently Two senior management promo as a director by the Federal Reserve tions and a new appointment have Board of Governors. been announced at United Banks of Colorado, Inc. Tapped by Holding Company by N. Berne Colorado N ational B ankshares, Hart, president Inc., Denver, recently announced and chairman. that Frank J. Brainerd has been Frank E. Blat named a senior vice president and ter was appoint legal counsel of the holding company. ed senior vice He also is currently a vice president p r e s i d e n t and and legal counsel of Colorado Nation treasurer; Dennis al Bank. D. Erickson, vice Mr. Brainerd has been with the president and controller, and E. Eu bank since 1957. He has served as a gene Schnabel, secretary. Mr. Schnatrust administrator and commercial loan officer and in 1976 was named legal counsel. He is a graduate of Trinity College and Harvard Law School. D. L. F a rm e r, p re s ., R ocky Ford First National, Denver Announces 7 Promotions D. D. ERICKSON E. E. SCHNABEL bel was named secretary following the resignation of Jack W. Swanson. Mr. Blatter was named to vice president-finance and treasurer in 1974 after serving in several positions with United Banks. He serves as the principal financial officer and is a member of the management group. He is responsible for seven subsidiary banks, serves as chairman of United Banks of Arvada and is a director of United Mortgage Co. and United Banks Service Co. He has been with United Banks for 16 years. Mr. Erickson joined United Banks in 1969 and was named controller in 1974 after serving as manager of the accounting and tax areas. As princi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Seven major promotions were an nounced recently by The First Na tional Bank of Denver. George B. Acker and John R. Wells have been named senior vice presidents, and David E. Blackford, James J. Campbell, Jack G. Haselbush, Michael Logan and Harold G. Young have become vice presidents. Mr. Acker is manager of the corre spondent banking department. Prev iously he was executive vice president of The F irst N ational Bank of Greeley. Mr. Wells, director of the person nel department, joined the bank in 1978. Prior to that he was vice presi dent-personnel at City National Bank of Columbus, Ohio. Mr. Blackford, an officer in the cor porate banking department, formerly G. B. ACKER J. R. WELLS was assistant vice president in the real estate department. He joined First of Denver in 1978. Mr. Campbell joined the bank in 1970 and has served as an assistant loan officer, loan officer and assistant vice president in the commercial loan department. Mr. Haselbush joined First of Den ver in 1970 and has held several positions in the correspondent bank ing department, most recently that of assistant vice president. Messrs. Logan and Young each head a loan division of the energy banking group, corporate banking department. Mr. Logan has been a member of the bank staff since 1973. Mr. Young has been with the bank since last October. Joins Denver National The appointm ent of Robert A. Gowans to assistant vice president, commercial loan department, of Den ver National Bank, was announced recently by Gale Sellens, president. Most recently with Colorado Na tional Bank here, Mr. Gowans began his banking career as a trainee with Bank of America in California. He has a degree in finance from the Uni versity of Colorado. United Bank of Denver Tells of Personnel News Richard A. Kirk, president of U nited Bank of Denver, has an nounced several personnel changes. Four men have been elected senior vice presidents—David E. Bailey, Michael J. Fowles, William P. Lober and Thomas W. Swanson. Mr. Bailey has been with the bank since 1969 and has management re sponsibility for corporate banking activities. Mr. Fowles joined the bank in 1968. He served in the commercial and operations divisions prior to COLORADO NEWS . . . (Turn to page 66, please) Northwestern Banker, February, 1980 56 inals, like those proposed by First National Bank of Omaha, to complete a sharing mechanism necessary to comply with Iowa EFT statutes.’’ First National of Omaha was one of the first banks in the country to issue plastic bank cards in 1953. In 1967 the bank began issuing BankAmericard, now commonly known as Visa. First of Omaha Joins Visa-Plus NNOUNCEMENT by First Na A tional Bank of Omaha on Janu ary 9 of its affiliation with the Rocky Mountain BankCard Association’s Visa-Plus program has created con siderable interest in Nebraska and neighboring states, according to J. William H enry, vice president of marketing at First National Bank. The bank’s announcement, in addi tion to offering bank custom ers access to their accounts on a 24hour a day basis, also stated that F irst N ational plans to install numerous a ut o mated teller ma chines thro u g h out Nebraska, Iowa, Minnesota and the Dakotas J. W. HENRY in early 1980. These ATMs, it was stated, will be located at banking in stitutions throughout the region and at off premises locations, such as grocery stores, shopping centers and major employers. All such facil ities would be ATMs and not POS units. F irst N ational’s affiliation with Visa-Plus puts it in a network de signed to include Nebraska, Iowa, M innesota, N orth D akota, South Dakota, Kansas, Wyoming, Colora do, New Mexico and Arizona. Rocky Mountain BankCard headquarters and central switch are located in Denver. Last month, the Visa-Plus system had 76 ATMs, mostly in Colorado, with a few in Wyoming, two or three in New Mexico and one in K ansas, operating through 175 participating banks in those states. The ATMs are shared by any banks in the system , but not by other banks. Iowa law mandates that any offpremise electronic facility maintained by a financial institution must be Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis shared with other like institutions. The Visa-Plus system, according to Mr. Henry, precludes this by stating that only the Visa-Plus card may be used in these ATMs by bank custom ers, no other system symbol may appear on the card, and no member bank may also be a member of an other system—such as the Nebraska Electronic Transfer System (NETS) or Iowa Transfer System (ITS). When asked about the conflict with the Iowa law which mandates shar ing, Mr. Henry referred to the busi ness review letter sent to the N ebraska Bankers A ssociation by the U nited S tates D epartm ent of Justice just prior to the May, 1977, NBA convention in Omaha, which said the Justice Department would consider taking action against NBA or an EFT system if m andatory sharing was legislated. First Nation al then withdrew from NETS to avoid such a suit. The Ju stice D epartm ent later asked for all details of the ITS pro gram and after one year returned the m aterial with no comment. Iowa Superintendent of Banking Tom Huston said his department is open to cooperating with any bank or sys tem operating in harmony with Iowa law, and would also be obliged to seek court determination, if necessary, on any situation contrary to current law. Mr. Henry said several banks in Nebraska had signed by mid-January with the Visa-Plus program offered by F irst N ational. In addition, several bankers from Iowa, South Dakota and North Dakota have been in Omaha to look at the system and obtain further details. Mr. Henry noted that First National plans to take delivery by mid-March on 20 ATMs, each valued at $30,000. Dale Dooley, executive manager of ITS in Des Moines said, “ITS is ready to work with any data center to allow ATM networks or POS term Siouxland Nat’l. Organizes At South Sioux City Site The Comptroller of Currency has granted preliminary approval to or ganize a national bank in South Sioux City, the Siouxland National Bank. It will be located at 39th & Dakota Ave. and capitalized at $1,250,000. The proposed officers of the new bank are Francis J. Palmersheim, president, and Robert K. Lynch, vice president, both of South Sioux City. Other organizers include: Norman C hristiansen, Pender; D orothy B. H olstein, W innebago; Edw ard D. Duling, Jam es E. H udson and George T. Qualley, Sioux City, Iowa; Donna D. Engel, Leo R. Ericksen, William K. Ferris, Norma M. Graves, Lonnie A. Slaughter, Dr. Jerry R. Smith, Oscar B. Stone and Dr. James H. Walston, all of South Sioux City. A temporary facility is planned until a permanent building is con structed. Bennington Bank Taps Two Jerry E . Roe, president of the Bank of Bennington, has announced the promotion of Lenora Klabunde from assistant cashier to assistant vice president. Jean Olsen was appointed assist ant cashier. Changes Told at Osceola Gene Bartak, president of the First N ational Bank, Osceola, has a n nounced personnel changes. Randy Helgren has resigned as the bank’s cashier to accept the position of executive vice president of the State Bank of Palmer. Bill Bates, who was most recently employed at The Farmers State Bank & Trust Co., Aurora, has accepted the position of cashier at the Osceola bank. Sue Greenwood, formerly an as sistant cashier, has been promoted to loan officer. We can make it easy for you to become a part of today's growing Electronic Funds Transfer (E F T ) environm ent. . . without a lot of waiting. For your bank, Inclant fa c li ran ready,op“al(or'") Instant Our ready-to-go Instant Cash package includes the card, the equipment, the processing system, technical support, and a proven-effective marketing and advertising program. Best of all, we're l l f t s l n l l l L u l l of it to work for you now. Learn how you can make the most of our Instant Cash Services. . . to make your account relationships more valu able, to maintain your bank's identity, and to compete more effectively in your marketplace. Call a U.S. National Correspondent Banker at 402/536-2072 today. Howard Nielsen Larry Hansen Lee Bachand John Lewis Myron Peterson US National U.S. National Bank, 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC BankOf Omaha 58 Richard Dunlop has been elected pur chasing officer. Mr. Morsman serves as manager of the commercial banking division. He joined the bank in 1969 after six years with Morgan Guaranty Trust Com pany in New York. Omaha ohn E. Martin has been named J m anager of the correspondent banking - agricultural lending depart ment of The Omaha National Bank. Mr. M artin succeeds F. Donald Lewis, who has resigned from the bank to accept a position in the Chicago office of ACLI International, a New York-based commodity firm. With the bank since 1972, Mr. Martin has been leader of correspond - J. E. MARTIN D. F. BOEHLE ent team 1, which handles corre spondent bank accounts in the north ern tier of counties in Nebraska and in states generally west and northwest of Nebraska. Prior to that he was leader of correspondent team II, which handles accounts in the south ern tier of Nebraska counties and in states generally northeast and south of Nebraska. A native of Falls City, Mr. Martin joined the bank as a credit analyst. He later served as a mortgage loan inspector, a correspondent banking trainee and an agricultural loan officer. He was named a second vice president in 1975 and a vice president in 1976. He has undergraduate and masters degrees from the University of Nebraska-Lincoln. Succeeding Mr. Martin as leader of correspondent team I is Daniel F. Boehle, who has been a senior corre spondent agricultural loan officer. Mr. Boehle joined the bank in 1974 as a financial analyst in commercial https://fraser.stlouisfed.org Northwestern Banker, February, 1980 Federal Reserve Bank of St. Louis bank administration and later be came a commercial loan officer. In 1975 he was named controller for the bank and was promoted to vice president. The next year he moved to the correspondent banking-agricul tural lending department where he has been involved in direct agricul tural lending. A Grand Island native, Mr. Boehle holds an undergraduate degree from Creighton U niversity and a m asters degree from the University of Minnesota. *** Edgar M. Morsman Jr. has been named senior vice president of the U nited S tates N ational Bank of Omaha, and Stephen J. Navin has been promoted to second vice presi dent, Donald J. Murphy, chairman, has announced. Elected operations officer were: Debra L. Kraft and Raymond F. Sak. Loretta N. McConeghey has been elected loan services officer, and F. E. M. MORSMAN S. J. NAVIN D. L. KRAFT R. F. SAK pany in New York. He is a graduate of Stanford University. Mr. Navin joined U.S. National in 1974 and has served in several operat ing areas. He was named electronic banking manager last February. Mr. Sak was recently named man ager of the bookkeeping department. He has been with the bank four years and is a University of NebraskaOmaha graduate. Ms. Kraft joined the bank five L. N. McCONEGHEY F. R. DUNLOP years ago and was recently named manager of the check collection de partment. Mrs. McConeghey joined the bank in 1962. She recently served as ad ministrative supervisor in the loan services department. Mr. Dunlop joined the bank last July after 20 years with the Navy. He was named manager of the purchas ing department in November. *** Robert G. Lueder, president of Lueder Construction Company here, has been designated chairman of the Omaha branch of the Federal Reserve Bank of Kansas City. Mr. Lueder was a director during 1979. *** John M. Shonsey, chairman of the American National Bank, has announc ed t h r e e elections — Den nis C. Robey, as sistant vice pres ident, commer cial lending divi sion: Sharon Hu e y , a u d i t o r and officer, and James W. Burns, assistant cashier. D. C. ROBEY In addition to his new duties, Mr. Robey is in A-'A - , A KA ■**p#s ,■ It L Bob Brown, Don Ostrand, Ralph Peterson, George McFadden, Jim Flodine, Merv Aegerter. Here are the reasons why First National is now one of the fastest growing correspondent banks in this area. These superb profes sionals are dedicated to meeting all your individual corres pondent needs. Call us for details on elec tronic data processing, cash letter processing, overlines, fed fund transactions; or any other correspondent service. We’ll show you how friendly effi ciency can be. firstnational bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of omaha In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at 800-228-9533. Member FDIC. W 60 Omaha News S. HUEY J. W. BURNS charge of the consumer loan division where he was most recently assistant cashier. He has been with the bank for three years and active in the lending field for 12 years. Ms. Huey was supervisor in the control department prior to assuming the newly-created post of auditor and officer. She has been with the bank since 1974. Mr. Burns joined the bank in 1973. He continues to oversee the opera tions department where he had been departmental supervisor. *** R. K. Flory, president of the Omaha Bankers A ssociation, and president of First West Side Bank of Omaha, has announced the following officers of the association for 1980: President—Thomas Allen, presi dent, The Omaha National Bank; first vice president—Perry Francis, president, Southwest Bank; second vice president—Dennis Wood, presi dent and chief executive officer, Packers National Bank, and secre tary-treasurer—Kay Kenworthy, ex ecutive vice president, Bankers Serv ice Bureau, Inc. Center Bank Sponsors Annual Mitten Contest PICTURED are the judges of Center Bank’s fourth annual Mitten Contest, along with a Salvation Army representative. The bank sponsors the contest each Christmas and mittens are distributed to needy children in the Omaha area. This year there were over 2,000 entries. https://fraser.stlouisfed.org Benker, FederalNorthwestern Reserve Bank of St.February. Louis 1980 Several officer appointments have been announced by John D. Woods, c h a i r ma n and chief executive officer of The Omaha National Bank. Christian B. O tt was named vice p r e s i d e n t and controller. He joined the bank in 1971, C. B. OTT was assigned to the controllers department in 1973, appointed a control officer in 1975 1977 and was appointed an assistant systems officer in 1978. Joining the bank in 1974, Mr. Crithfield later moved to the bond department and was named an investment officer in 1977. He currently is assigned to the metropolitan banking department. Mr. Laisle was appointed a sys tems officer in 1977 and currently is in charge of planning and administrat ion for the information systems and payment services department. Mr. Politano joined the bank in 1974 and was named a loan officer in 1976. He presently is manager of credit card marketing and credit card credit. L. F. UEBNER N. S. WEST J. W. LAISLE D. R. POLITANO J. W. BLACKETER D. J. CRITHFIELD J. C. WELLS M. A. WYNN and second vice president in 1976. He has been acting controller since last April. Also promoted to vice president were Lawrence F. Uebner and Neil S. West. Mr. Uebner joined the bank in 1970 and was operations manager before being named manager of inter national banking and a second vice president in 1972. He has been assigned to the metropolitan banking department since 1974. Mr. West, who joined the bank in 1972, initially was assigned to the consumer banking department and served as manager of the downtown drive-in and the Grover Plaza office. He currently is senior officer in the corporate banking deparment. Promoted to second vice president were John W. Blacketer, Duane J. Crithfield, John W. Laisle Jr., Donald R. Politano, Jean C. Wells and Michael A. Wynn. Mr. Blacketer was named product ion manager of the systems area in Ms. Wells joined the bank’s estate and trust division in 1973 as an ad m in istrato r and was appointed a trust officer in 1976. Mr. Wynn came to Omaha National in 1974 and was transferred to the Empire Park office in 1976 as an operations officer. He has been manager of that office since last January. O ther officer appointm ents in clude: Ken E. Bressm an, credit officer; B etty J. D uffy, auditing officer; Janelle F. File, commercial banking officer; C. William Joe and Kerry Winterer, trust officer; Wil liam J. Ju stsen , system s officer; Richard D. Nelson, check collections officer; Theresa L. Shanahan, loan officer; Dewey E. Straka, compliance officer; James A. Swoopes, officer. Douglas Burns and Mel S. Lan caster, assistant operations officer; Bruce E. Cramer and Carol K. Mul len, assistant commercial banking officer, and Marcus S. Ward, assist ant corporate banking officer. 61 You learn a lot about Correspondent B anking in 136 years... Experience is one of the most important assets of our Correspondent Banking Division. The nine officers of this division have a total of 136 years of specialized experience in dealing with the unique problems and goals of correspondent banking. And our people give you the kind of service you need and expect to build for the future. Call us and find out what 136 years of experience can do for your bank. W ilbur Baack Senior Vice President T om S tu ck e y B ob D eahn Vice President Vice President Vice President S teve K ness M ax Callen Assistant Vice President Assistant Vice President D uane N elson Iren e R ezac Correspondent Bank Officer The Correspondent Banking Division of NBC : Building on a firm foundation Brad K orell Vice President D o n n a Bieck Correspondent Bank Officer l" » l-s si& la si& alii w r n r i N a tio n a l B ank o f C om m erce 111 J f V T he B ank w ith th e P lu s Member FDIC NBC Center, 13th & O St., Lincoln, Nebraska 68508 Telephone (402) 472-4321, WATS 800-742-7317 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 62 Omaha News Statement of Condition O DECEMBER 31, 1979 ASSETS Cash on hand and due from banks ..................................................... Treasury, Federal Agency and Government guaranteed obligations Municipal bonds .................................................................................... Loans and discounts.............................................................................. Federal funds sold & securities purchased under agreement to re s e ll................................................................................................ Banking house, furniture & fixtures ................................................... Other as s e ts ............................................................................................ Total assets ........................................................................................ $ 8 , 000,000 8.918.000 8.489.000 40,428,000 5.027.000 2.262.000 1,607,000 $74,731,000 LIABILITIES Deposits ..................................................................... Capital stock ............................................................. Surplus ........................................................................ Undivided profits and other reserves ..................... Federal funds purchased & securities sold under agreement to repurchase ..................................... Other liabilities ......................................................... Total liab ilities ....................................................... $63,079,000 200,000 800,000 4.075.000 5.770.000 807,000 $74,731,000 OFFICERS Russell E. Kendall, Chairman of the Board Laddie J. Kozeny, Vice Chairman of the Board Dennis R. Wood, President Donald E. Dworak, Executive Vice President W. D. Bowen, Senior Vice President Donald E. Thompson, Senior Vice President Thomas K. Grove, Vice President Albert J. Janousek, Vice President Marvin C. Kelley, Vice President James R. Riha, Vice President and Cashier Helene M. Lesac, Assistant Vice President Robert L. Schilke, Assistant Vice President Thomas M. Stoker, Assistant Vice President Terence J. Tvrdik, Assistant Vice president Donald F. Holst, Loan Officer Laura A. Kearney, Loan Officer Mark D. Dunlap, Loan Officer Richard R. Otto, Correspondent Officer Dolores O’Connor, Facility Manager Robert E. Wolf, Facility Manager Timothy P. Galvin, Auditor BOARD OF DIRECTORS Glenn M. Adair William T. Apking William A. Bowness E. L. Burke III D. Clarke Casey M. W. Dunlap Donald E. Dworak Roland E. Emmett Russell E. Kendall Laddie J. Kozeny Ronald J. Krejci Robert C. Larson Elbert Lowenstein Allan E. Masters Paul L. Merker Allen Norris Guy Saunders Mike Shafer Greg Stine Vernon Viergutz Hugh F. Wilkins Dennis R. Wood National Bank 24th & 0 • 402/731-4900 Omaha, Nebr. 68107 Member FDIC https://fraser.stlouisfed.org Northwestern Banker, February, 1980 Federal Reserve Bank of St. Louis Del Bowden has been named senior vice president of Realbanc, Inc., an Omaha - based mortgage bank ing firm. He had been vice p r e s i d e n t and division head of production for Realbanc, a sub sidiary of the Omaha National Corporation , D. BOWDEN since 1973. Prev iously Mr. Bowden was a second vice president in the mortgage loan area of The Omaha National Bank. *** John D. Woods, 49, chairman and chief executive officer of The Omaha N ational Bank, was selected last month as one of the 10 N ebras kans most likely to have the great est im pact on their state in the 1980s. The 10 were selected by a panel of 12 Ne braska business J- D- WOODS leaders, political officeholders and editors of daily and weekly news papers. Four were from Omaha, four from Lincoln and four from other communities in the state. The panel also selected the late Peter Kiewit, who died at age 79 on November 2, as the person whose j work and influence had the greatest impact on Nebraska in the decade of the 70s. Mr. Kiewit was founder and chief executive for several decades of the Peter Kiewit Sons’ Inc., an| Omaha-based construction firm re nowned world-wide. Mr. Kiewit also I was owner and publisher in recent years of the Omaha World-Herald J For many years he was a director of I The Omaha National Bank, serving the past few years on the bank’s [ advisory council to the board. Six other bank directors were] among the top 10 selections named] for the 1970s and for potential leader-1 ship in the 1980s—five from Omaha| and one from Lincoln. Of that number, four were from! The Omaha National Bank. V. J.[ Skutt, 77, chairman and chief execu tive officer of Mutual of Omaha in-| surance companies, and Willis A.I Strauss, 57, chairman of Northern! Natural Gas Co., were among the topi Omaha News 63 10 leaders of the 1970s. Mr. Skutt was an active director of The Omaha National for many years and now is on the advisory council, while Mr. Strauss is an active director of the bank. Also, Walter Scott, Jr., 48, chair man and president of the Kiewit firm, who succeeded Mr. Kiewit as an active director on The Omaha Na tional board, and Robert B. Daugh erty, 57, Omaha, president of Valmont Industries of Valley, Neb., and also an active director of The Omaha National, both were selected among the 10 leaders for the 1980s. Leo A. Daly, 60, president of Leo A. Daly Co., the Omaha-based archi tectural firm that is a world-wide leader in its field, and an active di rector of the United States National Bank of Omaha, was another of the 1970s leaders. In Lincoln, Bob D evaney, 64, athletic director and former head football coach at the University of Nebraska, was another of the 1970s leaders. He is a director of the Na tional Bank of Commerce in Lincoln. In addition to the above, the fol lowing were identified as leaders who have contributed the most to the state in the past decade and are ex pected to in the decade ahead: 1970s Harold W. Andersen, 56, Omaha, president of The World-Herald. Terry Carpenter (deceased at 78 in Mosler Designs Seward Bank Facility A NEW brochure offered by The Mosler Safe Company of Hamilton, Ohio, highlights the C attle N ational Bank’s new motor branch in Seward. Mos lems facilities planning depart ment prepared proposal draw ings for Cattle National Bank showing a functional and effic ient plan for its new branch. When comparing the proposal drawing with the actual struc ture, it’s evident that Cattle Na tional’s management was im pressed with these ideas. For a free copy of this four-page color brochure, write Mosler, Department PR - 181, 1561 Grand Blvd., Hamilton, Ohio 45012. 1978), state senator from Scottsbluff. U.S. Senator J. J. Exon, 58, Lin coln (former Governor two terms). D. B. Varner, 61, Lincoln, presi dent of the University of Nebraska Foundation and former U. of N. Chancellor. U.S. Senator Edward Zorinsky, 51, Omaha (former Mayor of Omaha). chief justice of the Nebraska Supreme Court. U.S. Rep. John Cavanaugh, 34, Omaha. William A. Fitzgerald, 42, Omaha, president of Commercial Federal Savings & Loan Assn. Tom Osborne, 41, U. of N. head football coach, Lincoln. Ronald Roskens, 47, Lincoln, pres 1980s ident of the University of Nebraska. Gov. Charles Thone, 55, Lincoln. Paul Schorr III, 43, Lincoln, presi Norman Krivosha, 45, Lincoln, dent of Commonwealth Electric Co. Serving the Midwest... FIRST MID AMERICA INC. Hal F. Childs Dies Hal Frederick Childs, 72, vice pres ident of Chiles-Heider & Co., Inc., Omaha-based in vestm ent firm, died last month %% following a long illness with can cer. A graduate of the University of Nebraska -Lin coln and a World War II Navy vet eran, Mr. Childs started with the H. F. CHILDS firm in 1960 when it was known as Chiles-Schütz Co. and continued with it following the change of name to Chiles-Heider. Throughout that 20 year period. Mr. Childs was wellknown to bankers throughout Nebraska, as well as in western Iowa and South Dakota. Burial was in his native town of Lenox, la. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Municipal Bonds Fiscal Agents Corporate Bonds Listed and Unlisted Securities Government Agency Bonds Investment Bankina Municipal Bond Department 100 Continental Building 19th & Douglas Omaha, Nebraska 68102 Call collect 402-444-1900 First Mid America Member New York Stock Exchange, Inc. and other Principal Stock and Commodity Exchanges CORPORATE AND M UNICIPAL BONDS • GOVERNMENT AGENCIES STOCKS • COMMODITIES • OPTIONS • INVESTMENT BANKING Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic • Cedar Rapids • Des Moines • Fort Dodge • Marshalltown • Chicago • Kansas City • Wichita V. Northwestern Banker, February, 1980 president of Commerce T HE Group, Inc., James Stuart Jr., will be working with the financial subsidiary boards and senior officers and the holding company board. Previously a Fremont resident, he had been involved in banking in that community for 15 years. Interm ediate School —first ses sion: March 16-21, Nebraska Center; second session: October 19-24, Glen wood Manor. Commercial Lending School— April 13-18, Nebraska Center. Trust School—July 6-11, Nebras ka Center. Advanced School—November 2-7, Nebraska Center. The schools are sponsored by the N ebraska, Kansas and M issouri Banking A ssociations. The Iowa Trust Department joins in sponsor ing the Trust School. These schools are open to all employes of member banks of the sponsoring associations. *** William C. Smith, president, First National Lincoln, and Charles Heider, president, Chiles, Heider Corpor ation of Omaha, have announced that * * * an agreem ent has been executed which provided for the assets of the Three promotions were announced bank’s Lincoln Tour & Travel Divi recently by Gateway Bank & Trust sion to be purchased by Chiles, Heid Co. They are Alan O. Austin, vice president and controller; Harry Se er Corporation. Mr. Smith said the bank’s decision ward I I I , vice president and trust to sell Lincoln Tour & Travel was dic officer, and Kris Riggs, assistant vice tated by a ruling by the Comptroller president-operations. of the Currency requiring all national *** banks to divest of their interest in The Schools of Banking, Inc. an travel agency operations. nounces the following dates for all 1980 sessions: Basic School—first session: March Two Join NBA Staff 2-7, N ebraska Center, Lincoln; There are two recent additions to second session: Septem ber 14-19, the staff of the Nebraska Bankers Glenwood Manor, Overland Park, Association, Katie Ayres Birtwell as Kan. assistant counsel, and Marcia Hecox as a bookkeeper. Ms. Birtwell was formerly senior law clerk at a Lincoln law firm. Her primary responsibilities in the NBA office involve legislative research. She received her law degree from the University of Nebraska law school last May. Ms. Hecox handles NBA account ing and serves as secretary to Bill Brandt, general counsel, and to NBA committees on federal legislation and Call Toll Free in Nebraska compliance. 800-742-7335 or call collect has announced that Hugh Han sen has been pro moted to execu tive vice presi dent of the com pany. M r. H a n s e n had been senior vice president of the holding com H. HANSEN pany, serving in that capacity for about one year. Previously he served as president of the Overland National Bank, Grand Island, and the North Platte State Bank, both Commerce Group affili ates. Mr. Hansen will act in an executive management capacity to assist man agement at the individual Commerce Group subsidiaries and affiliates. He Call Steve Sutton For Complete Credit Insurance Service . . . Steve W. Sutton Vice President 402-475-4061 Bank Programs for Group • Individual Life • Accident & Sickness LIN CO L LIFE Where BENEFIT is more than a middle name Lincoln, Nebraska 68508 Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New President at Wayne The First National Bank, Wayne, has elected Bob Reeg to the position of president. He most recently served as executive vice president and has been with the bank for nine years. Mr. Reeg succeeds John A. Nigh who has resigned and accepted a position as president of the Chaffee County Bank in Salida, Colo. Specialists in helping you maximize the profit potential of your investment portfolio... JAMES G. BULLOCK DWAIN C. CARLSON RAYMOND J. McMAHON JAY D. CALLAHAN JOHN WALTERS SAMUEL A. WHITWORTH IIIIIIIHilllllll FIRST N A T IO N A L L IN C O L N 13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501 Phone: (800) 742-7376 Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 66 Richard B. Doby, vice president, has been named to head the bank’s recently-created legislative relations d ep artm en t. Alan D. Linton, vice president, has assuming his present responsibility been named to head the bank’s leas as manager of personal banking. Mr. Lober, who joined the bank in ing market. D. David Jones has been named 1949, is responsible for the financial management services activity. He vice president. The manager of the also serves as comptroller and as agribusiness market, he was named assistant secretary to the board of assistant vice president last May. Douglas S. Sprague, named vice directors. Mr. Swanson manages the metro president, joined the bank in July as politan banking activities. He has manager of engineering, energy and minerals group. been with the bank since 1966. COLORADO NEWS . . . (Continued from page 55) Other appointments announced in clude Linda Archambault, personal banking officer; Susan K. Rogers, m a rk etin g officer, and R obert E. Young, Richard T. Fulmer, William L. Wong and Ronald D. Edwards, commercial banking officer. Joseph E. Wagner, president of Wagner Equipment Co., has been elected to the bank’s board of direct ors. The company is the Caterpillar Tractor dealer for Colorado and em ploys 550 people. His election brings the number of United Bank directors to 21. / Wyoming G. W. M cllvain e, pres., Saratoga M. C. M u ndell, exec, d ir., Laram ie K. McNINCH Charles Stilwell was elevated to Wyoming National, Casper vice president and assistant manager Announces Appointments of the real estate loan department. He Robert W. Miracle, president of joined the bank in 1976 as a loan Wyoming National Bank of Casper, officer. He received a BS degree in re c e n tly a n 1970 and an MA in 1973 from the nounced the pro University of Colorado. motion of six of Kim McNinch was promoted from ficers and th e real estate loan officer to assistant election of one vice president, real estate loan de new officer. partm ent. He joined the bank in 1977 James Watson and has a BS degree in business was promoted to administration from the University v ic e p r e s id e n t of Wyoming. and tru st officer. David Palfrey, tru st officer, was He joined the promoted to assistant vice president bank’s tru st deJ- WATSON partm ent in 1960 and was elected an officer in 1967. He has a BS degree in b u sin ess ad m in istra tio n from th e University of Denver. William Rader, assistant vice pres ident, was promoted to vice president and manager of the investment de partm ent. A 1972 graduate of the University of Wyoming, he joined the bank as a trainee and was named W. RADER C. STILWELL assistant tru st officer in 1973. WBA 1980 Calendar of Events Feb. 7-8 March 20-21 April 20-22 June 11-13 Credit Conference Ramada Inn, Casper Instalm ent Loan Conference Cheyenne Biennial Washington Trip 72nd Annual Convention Jackson Lake Lodge, Moran Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. PALFREY and tru st officer. He received an MBA degree from Suffolk Univer sity, Boston, in 1972 and joined the bank in 1977. Richard Brehm, instalment loan operations officer, was promoted to assistant vice president and oper ations officer-instalment loan depart ment. He joined the bank in 1973 as a trainee after receiving a BS degree in b u sin ess ad m in istra tio n from th e University of Nebraska. Arlene Brow was elected an officer with the title of assistant manager of R. BREHM A. BROW operations in the instalment loan de partm ent. She joined the bank in 1977 and formerly served as a super visor in the instalment loan depart ment. New President Takes Over American National, Powell George E. Cooke has resigned as president of the American National Bank of Powell to pursue private business interests. He is succeeded W yom ing N e w s by Harold R. Hand, most recently executive vice president. Mr. Cooke will remain with the bank in an advisory capacity and co ntinues as a directo r. He had served as president of the bank since its inception 16 years ago and was one of the original organizers. Mr. Hand has been with the bank for 15 years and has been chief execu tive officer since 1977. Mr. Cooke, first vice president of the Wyoming Bankers Association, leaves office after over 30 years serv ing in Wyoming banks. He also re signs as president of the Clarks Fork National Bank in Fromberg, Mont. ices, and Pam Wood to assistant credit administrator. Mr. Mangum joined the bank in 1978 as vice president of commercial loans. Prior to this he was senior vice president at the Bank of Las Vegas, N.M ., and vice president of the First National Bank Farmington, N.M. Mr. Sadowski has been with the bank since 1978 as assistant vice president of commercial loans. Prior to this he resided in Wilmington, Del., where he was with The Farmers Bank as assistant vice president and manager of the Newark branch. 67 Ms. Steltenphol was most recently teller manager. She joined the bank in 1977 as a teller. Ms. Wood joined First Wyoming Bank-Casper in 1976 as a central file clerk and was later promoted to man ager of central file. Joins Gillette Bank Max S. Beebe has joined the Stockmens Bank & Trust Company, Gil lette, as vice president, personnel. Mr. Beebe was formerly vice presi dent of personnel at the First N a tional Bank in Fort Collins, Colo. Williams Succeeds Allen as Cheyenne Bank President William C. (Bill) Allen has resigned as president of the First Wyoming B ank-C heyenne to p u rsu e p riv ate business interests in Wyoming and Colorado. He is succeeded by Gordon Williams, most recently executive vice president of the bank. Mr. Allen had been president of the bank since 1970. Previously he served as vice president for commençai loans at the American National Bank in Denver for nine years. Mr. Williams joined the bank in 1971, first serving as vice president of the commercial loan division, then as senior vice president until he was named executive vice president a year ago. He also had served Denver’s American National Bank. Honored at Sheridan Bank The board of directors of The First National Bank, Sheridan, recently adopted a resolution in recognition of 50 years of service to the banking industry by Carl G. Ralston, chair man. He was honored at the bank’s Christmas party. Mr. Ralston began his banking career at Sheridan’s Bank of Com merce and joined First National in 1930. He has served as a teller, assist ant cashier, cashier, assistant vice president, vice president, president and subsequently chairman. The U nited B ank o f D enver Correspondent B an kin g Group believes in being innovators in our industry. N ot imitators. A n d the fa c t th at 11 different banks around the state have presidents th a t have come fro m our ranks bears out our philosophy. I f you re a bank th at needs a bank, give our Correspondent B an kin g Group a call a t 861-8811. Who knows, you m ig h t talk to a fu tu re president. 3$ United Bank of Denver National Association Correspondent B anking Group 1740 Broadway Street Denver, Colorado 80217 Phone 303-861-8811 Member FD IC First Wyoming, Casper Announces 4 Promotions Jay Bordewick, president of First Wyoming-Casper, recently announc ed four promotions; Joseph Mangum to executive vice president, Peter Sadowski to vice president, Carol Steltenphol to manager of teller serv https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 68 the people weserre Our Statement of Condition as of December 31, 1979, follows the strong growth pattern established in 1978 and continues to demonstrate our sustained commitment to meet the financial needs of our community. We appreciate the support and confidence of our customers and friends which make these results possible. During 1979 we increased our total capital position by the issuance of over $1 million in additional capital stock and the placement of a $10 million subordinated capital note. This added capital will provide a stronger base for continued service to our customers. We are an Iowa bank . . . and we’re Des Moines’ largest locally owned, independent bank. Our basic mission is to serve the people of Iowa! As we move into 1980 and a new decade, our economy faces major challenges. We believe these challenges can become opportunities and we look forward to a continued partnership with you — the people of Iowa — as we grow together! John Ruan Chairman of the Board Herman C. Küpper ' President and Chief Executive Officer STATEMENT OF CONDITION ' December 31 1979 1978 Cash and Due from Banks ............................................................................................................................. U.S. Treasury and Federal Agency Securities................................................................................................ State and Municipal Securities........................................................................................................................ Other Securities.............................................................................................................................................. Funds Sold and Securities Purchased Under Agreements to Resell ...................................................................................................................... Loans, Net of Allowance for Loan Losses ($2,350,000 in 1979, $2,000,000 in 1978) ................................................................................................. Bank Premises and Equipm ent...................................................................................................................... Interest Receivable and Other A ssets............................................................................................................. $ 84,473,720 67,645,142 1,798,562 2,669,217 $ 65,926,454 64,238,124 798,172 3,568,237 43,368,750 41,400,000 305,299,094 5,449,770 10,684,080 247,625,271 4,948,197 10,079,616 Total A sse ts........................................................................................................................................ $521,388,335 $438,584,071 $347,438,195 $326,846,942 132,560,113 7,751,292 10,000,000 82,736,482 8,730,098 — $497,749,600 $418,313,522 $ $ ASSETS LIABILITIES Deposits ......................................................................................................................................................... Funds Purchased and Securities Sold Under Agreements to Repurchase............................................................................................................. Accrued Expenses and Other Liabilities......................................................................................................... Subordinated Capital N o te ............................................................................................................................. Total Liabilities..................................................................................................................................... STOCKHOLDERS’ EQUITY Common Stock................................................................................................................................................ Surplus ........................................................................................................................................................... Undivided Profits ............................................................................................................................................ 1,500,000 10,500,000 8,270,549 Total Stockholders'Equity.................................................................................................................. $ 23,638,735 $ 20,270,549 Total Liabilities and Stockholders’ E quity............................................................................................ $521,388,335 $438,584,071 Bankers DIRECTORS ROBERT G. BEERS President, Hubbell Realty Company MARTIN BUCKSBAUM Chairman of the Board, General Growth Companies, Inc. JOHN CHRYSTAL President and Director, Iowa Savings Bank, Coon Rapids, Iowa JOHN E. EVANS President, AID Insurance Services ROBERT J. FLEMING President, National By-Products, Inc. 1,585,000 13,435,000 8,618,735 HOWARD V GREGORY President, Des Moines Flying Service, Inc. Com e C ro w M M I O T W ith US I I U O l CRAWFORD C HUBBELL Des Moines, Iowa 50304 Member: FDIC/Federal Reserve System President, Check-All Valve Mfg. Co. ROBB B. KELLEY President, Employers Mutual Casualty Co. HERMAN C. KILPPER President and Chief Executive Officer WILLIAM C. KNAPP Chairman of the Board, Iowa Realty Company, Inc. FREDRIC P.G. LATTNER Consultant, Blue Cross of Iowa Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ROBERT ROOT Chairman of the Board (Retired), Ruan Transport Corp. JOSEPH F. ROSENFIELD KENNETH J. MCCARTHY Senior Vice President, Younkers, Inc. E. T. MEREDITH III Chairman of the Board, Meredith Corp. B. J. O ’DOWD President, AGRI Industries RUSSELL B. REYNOLDS* Chairman of the Board, American Mutual Life Insurance Co. Retired Business Executive JOHN RUAN Chairman of the Executive Committee and Chairman of the Board President, Ruan Transport Corp. JOHN RUAN III Senior Vice President, Ruan Transport Corp. and Ruan Leasing Company GEOFFREY F. N. SMITH President and Chief Executive Officer, American Mutual Life Insurance Co. ROBERT J. STERLING President, Ruan Center Corporation DWIGHT H. SW ANSON Chairman of the Board and President, Iowa Resources Inc. Chairman of the Board, Iowa Power & Light Company THOMAS N. URBAN President, Pioneer Hi-Bred International, Inc. ’ Advisory Member 69 tive months utilizing newspaper ads and statem ent stuffers. All materials featu re “ The B anks of H am ilton County” logo recently designed by a member of the publicity committee. Donna J. Dickinson, First State Bank, Webster City, is the newlyelected president of the association— the first woman to hold the office. D. R. Vanderheiden, Farmers National Bank of Webster City, was elected vice president, and Steve Ostrem, dent and cashier; Grethe M. Gauger, Farmers State Bank, Jewell, is the New Bloomfield President Avery E. Johnson has been elected formerly assistant cashier, named as secretary-treasurer. Members of the Hamilton County p resid en t of th e D avis C ounty assistant vice president; Doris A. Bankers Association include Farmers Westemeier named as manager of Savings Bank, Bloomfield. State Bank, Jewell; Randall-Story Mr. Johnson joined the bank in consumer loans, and Michael J. B ut State Bank, Randall office; Farmers N ovem ber, and had previously ler and Jay Robert Hall now to serve State Bank, Stanhope; The Farmers as consumer loan officers. served as executive vice president of Savings Bank, Stratford; Williams th e U n iv ersity B ank & T ru st Savings Bank, Williams; First State C om pany, A m es. P revious to his Hamilton County Bankers Bank, Webster City, and Farmers Ames position, he was with banks in Coordinate Ad Campaign National Bank of Webster City. Clear Lake and Ackley. The H am ilto n C ounty B ankers New directors elected at the annual Promoted at Estherville meeting include Mr. Johnson; Mrs. Association recently kicked off a co George H. Shadle, president of the Marne Bond, vice president; Donald o p erativ e a d v e rtisin g cam Iowa T rust & Savings Bank, Esther W. Treharne, vice president; Wayne ville, has announced th at David W. French, air conditioning contractor, paign. This uni Wood has been given the title of exec and Dick N ysw onger, area farm fied effort is the first of its kind utive vice president. manager. in th e g ro u p ’s Mr. Wood will be responsible for h isto ry and is credit and marketing and will retain Change of Ownership aim ed tow ard his active participation in agricul Told at Bennett State c o m p e titio n tural credit. He joined the bank in 1973 and had served as vice president The FDIC and the state depart from th e s a v ment of banking have approved the ings & loans and credit unions. The and senior vice president of agricul change of control of the Bennett S tate campaign will run for four consecu- tural lending since th at time. Bank from N. L. Kotz to a group of local investors. Virgil K. Hering has been named Jefferson State Starts Junior Loan Program president and trust officer of the bank. Darlene V. Buttolph is vice president, cashier and assistant tru st officer, and Eilene Langley is serving as assistant vice president. JEFFERSON FFA members Mike Bravard and Rodney McDonald discuss the new educational loan program with Jefferson State ag offi cers Clay Miller and Paul Johnson. Retires as Rippey CEO Clark Bardole has retired as chief executive officer of the First National Bank, Rippey. Mr. Bardole had been with the bank since 1931. May belle Wisecup has been named his successor. J Midway Bank, Cedar Falls Announces Appointments Philip S. Berg, president of Mid way Bank & Trust, Cedar Falls, has announced the promotion of six bank officers. They include: Dale J. Diamond, formerly vice president, now senior vice president; Darrel E. Wilken, previously cashier, now vice presi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EFFERSON State Bank has an nounced the creation of a special educational loan program for junior livestock exhibitors. According to ag loan officer Clay Miller, the program stresses the educational importance of financial planning, record-keeping and building credit responsibility, along w ith offering a s u b sta n tia l interest refund for completed pro jects. Any 4-H or FFA member may par- ticipate in the loan program as long as he or she exhibits the financed live stock at a show in 1980 and keeps accurate records. Each participant will learn how to set up his or her own loan and operate a special checking account for the duration of the project. When the livestock is sold and records com pleted, Jefferson State will refund 40% of the interest expense, result ing in a 9% interest rate. Northwestern Banker. February, 1980 70 Iowa News IBMC Exceeds Capitalization Goal; Acts as ‘Real Estate Loan Department’ By DEBORAH PECK Associate Editor A U N IQ U E idea to help Iowa bankers gain entry into the cap ital and real estate secondary m ar kets has evolved into the Iowa Bank ers Mortgage Corporation, which ex ceeded its minimum capitalization goal of $2.5 million last month. Developed by the Iowa Bankers Association, IBMC is the result of a study prompted by IBA members looking for a mechanism to originate, process, package and market real estate loans in the secondary market, explained Sam Callahan, IBMC pres ident. “Many banks in Iowa are small to medium-sized rural banks th at don’t have the expertise or volume to do th a t,” he said. “ Our mission is the centralization of processing, packag ing and marketing of mortgage loans o rig in ated by Io w a’s com m ercial banks.” Of the 650 IBA member banks, 126 participated in the initial capital sub scription for the mortgage corpor ation (which concluded January 15) and paid in over $3 million in capital notes. Participation in IBMC is limit ed to commercial banks in Iowa, ac cording to Mr. Callahan, and addi tional banks wishing to participate now must do so on a non-refundable fee basis. “We underwrite loans directly, but IBMC STAFF, from left, includes Teresa Monahan, admin, asst.; Sam Callahan, pres., and Nodi Lim, v.p. of production, standing. Northwestern Banker. February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis don’t retain them, as they are all sold in th e secondary m a rk e ts ,” said IBMC’s chief executive. “ Banks that utilize our services will be in a strong er position to compete against the thrift institutions and credit unions. ” Collateral Trust Notes Another aspect of the Iowa Bank ers Mortgage Corporation is its plan ned issuance of $56 million in collat eral tru st notes using mortgages from member banks’ existing portfolios as collateral for the notes. “This will inject liquidity into Iowa’s banking system and provide a sizable servic ing base for the mortgage corporation which gives the mortgage company creditability in the secondary market as well as a base of income,” Mr. Callahan pointed out. “We represent over $4.2 billion— the combined assets of the initial sub scribers,” he added. Member banks range from a $500 million deposit bank to one th at hasn’t even opened yet. The average member bank has about $20 million in assets. Mr. Callahan said the collateral tru st note issue has been postponed due to unfavorable market condi tions, but added th at his group has already m et w ith re p resen tativ e s from investment banking firms and Standard & Poors “ so we can enter the market quickly as soon as it be comes profitable and prudent to do so.” The Iowa Bankers Mortgage Cor poration, through the efforts of Mr. Ms. Lim and Mr. Callahan review the vari ous locations in Iowa where there are IBMC member banks. Steve Jacobs (left), real estate loan officer at Bankers Trust Company, Des Moines, clarifies a point with John R. Hayes (cent er), regional v.p., and Edward H. Erickson, regional appraiser, both with the FNMA office in Chicago. Callahan, Neil Milner (IBA’s execu tive vice president), and counsel, has gone through eight separate regulat ory agencies to become operational. Final approval from Fannie Mae and G innie Mae re p re se n ta tiv e s was scheduled to be received by the first of February. “When final approval is granted, we will be the largest satellite opera tion under Fannie M ae,” Mr. Calla han pointed out. With the recent minimum capital ization achieved, IBMC is now pro cessing FHA and VA mortgages and was scheduled to begin processing conventional home loan mortgages. A Fannie Mae underwriting seminar was conducted late last month by officials from the Chicago regional office and was attended by about 180 Iowa bankers. Mr. Callahan explained that con tinuing education also is a part of the Iowa B ankers M o rtg ag e C o rpora tion. “We provide banks all the ex pertise—we act as the real estate loan department for th at particular (mem ber) bank.” He agreed th at a downturn in con struction and the high cost of infla tion are having an effect on IBMC and member banks, and predicted th at the rates are going to stay high for the time being. The first such undertaking by a state bankers association, the Iowa Bankers Mortgage Corporation has received “ g re a t rece p tio n ” from Fannie Mae and the Federal Housing Administration. Mr. Callahan has com pleted sp eak in g engagem ents and several states have requested in formation on IBMC’s conception to use as a role model for a similar or ganization. □ 71 Statement of Condition AMERICAN TRUST & SAVINGS BANK Senior Officers Nicholas J. Schrup, Chairman of the Board Christy F. Armstrong, President December 31, 1979 D. W. Ernst, Chairman Exec. Committee Senior Vice Presidents Leo F. Kane, Executive Vice President ASSETS C a s h ................................... U.S. Government Securities U.S. Public Housing Bonds U.S. Agency Bonds .......... Robert G. Scott, Senior Vice President $ 24,217,589.02 $ 26,654,968.36 21,756,018.64 1,202,713.90 W. G. Baumhover, Senior Vice President Robert G. Holscher, Senior Vice President 49,613,700.90 Municipal Bonds............................................... Federal Reserve Bank S to c k ............................................... Federal Funds S o ld .............................................................. Loans .................................................................................. Bank Premises & Equipment ............................................. Accrued Interest & Other A ssets......................................... Trust Department Charles J. Schrup, Executive Vice President & Trust Officer 1,597,946.11 150,000.00 3,000,000.00 83,137,739.74 1,675,172.65 2,203,233.08 TOTAL Leo J. Meier, Senior Vice President, Secretary & Trust Officer Board of Directors F. Collier Altman, President — Spahn & Rose Lumber Co. Christy F. Armstrong, President $165,595,381.50 Frank H. Bertsch, President — Flexsteel industries, Inc. Paul D. Dale, Chairm an of the Board — Thermolyne Corp. D. W. Ernst, Chairman of the Executive Committee C. P. Frommelt, Chairman of the Board — Frommelt Industries LIABILITIES Capital Debentures........................................... Equity Capital: Capital Stock ........................................... Surplus...................................................... Undivided P rofits..................................... $ Courtland Hillyard, Retired; formerly President Midland Laboratories 850,000.00 Robert G. Holscher, Senior Vice President Arnold N. Honkamp, Senior Vice President 2.000. 000. (X) 3.000. 000.00 5,848,233.98 David P. Hopley, General M anager — John Deere, Dubuque Herbert L. Hughes, Financial Vice President— Flexsteel Industries, Inc. W. J. Klauer, President — Klauer Manufacturing Co. $ 11,698,233.98 1,460,970.32 15,995,929.45 2,350,428.16 134,089,819.59 Provision for Taxes, Interest & Expenses ........ Securities Sold Under Agreement to Repurchase Other Liabilities ............................................... Deposits ............................................................ TOTAL J. Bruce McDonald, Vice President — A.Y. McDonald Manufacturing Co. John M. McDonald, III, President — Brock-McVey Companies, Lexington, Ky. $165,595,381.50 Robert E. Molo, President — Molo Oil Company Louis H. Pfohl — The Fischer Companies Charles J. Schrup, Executive Vice President Nicholas J. Schrup, Chairman of the Board R. W. Steele, Chairman of the Board and CEO— Interstate Power Co. Leo A. Theisen, President — Theisen's, Inc. -A m cricd n W v T ru st Sa vin gsD a n l^ 6 Robert C. W ahlert, Chairman Executive Committee — Dubuque Packing Co. Honorary Directors D. B. Cassat OWN CLOCK PLAZA DUBUQUE, IOWA 52001 m e m b e r fd ic & fe d e r a l reserve system N. J. Greteman Otto F. Henker M. L. Kapp https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker. February. 1980 Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 Know your customers. Look around. Banking has become one of The operative word is exhaustive. Since today’s most competitive businesses. every possible piece of information gathered Your customers are being wooed by every is centrally stored, you have immediate ac financial institution in your market area. cess to such things as the status and history The trick to keeping your customers loyal, of a given customer’s account and his ac and to increasing your profits, is knowing as count relationships. The businesses he’s in much about them as possible and keeping and how they’re doing. And any pertinent that information updated daily. family information. Unfortunately, complete up-to-the-minute This information is critical in making quick, customer profiles are rare. Background in knowledgeable, profitable decisions. formation is often gathered randomly and CIF is the most economical, efficient and tored in many different places, making it sensible way to gather all this information ifficult to obtain for useful purposes. and to use it for increased profits. Until now. Until Banks of Iowa Computer D on’t kid yourself. ervices Central Information File (CIF). There aren’t many new With Banks of Iowa Computer Services’ customers around. What IF, complete information on your custom- you need to do is expand rs can be obtained in moments, either on a the ways your existing cus isplay terminal or as hard copy. tomers use your bank. Because a lot of other financial institutions would like them as customers. And are trying to get them. Can you trust your customers? Yes — if you can trust your information retrieval sys tem. And that means CIF. Contact us today for an appointment. We’ll be glad to explain our system at your convenience. For more information call Joe Phernetton or BICS marketing at (319) 399-3600. anks of Iowa Computer Services £ “ B A N K S O F IO W A ’’ S U B S ID IA R Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 74 Iowa News Lending Seminar Planned the Iowa State Bank and Trust Co. The Small Business Administra and SB A and will include a workshop tion has announced th at a two-day on SBA g u aran teed lending and Com m ercial L ending Sem inar for secondary market opportunities on bankers and accountants of south SBA loans. Topics of the first day’s session will east Iowa will be held in Iowa City February 20-21. include: A n Overview of S B A ’s The program will be presented by Guaranteed Loan Program; Appli STATEMENT OF CONDITION [Consolidated] DECEMBER 31, 1979 O F F IC E R S A S S E TS Cash and Due from Banks $11,454,893.35 United States Bonds 3,805,960.03 Other Bonds 26,714,032.68 Funds Sold 600,000.00 Loans and Discounts 81,541,739.24 Bank Building & Fixtures 2,428,343.18 Other Assets 1,915,419.61 $128,460,388.09 Ed H. Spetman, Jr., President and Chairman of the Board Thomas D. Whitson, Exec. Vice President and Trust Officer Ronald F. Sealock, Executive Vice President R. B. Graeme, Vice President and Cashier Operations Douglas Goodman, Assistant Cashier Agricultural and Commercial Loans Donald D. Fox, Ronald P. Searcy, Gary D. Woods, Craig S. Lovstad, Asst. Vice President Vice President Vice President Vice President Instalment Loans Douglas M. Schuster, Vice President Robert E. Starr, Vice President RonaldW. King, Asst. Cashier GeorgeA. Rossum, Asst. Cashier Real Estate Loans James L. Beneke, Vice President Trust Department Gary R. Faust, Trust Officer Wesley D. Lacy, Trust Investment Officer Dorothy D. Sloma, Asst. Trust Officer Gary L. Thien, Trust Farm Manager Kelly E. Summy, Asst. Cashier L IA B IL IT IE S Capital Stock (Common) 2 , 000 , 000.00 $ Surplus 2 , 000 , 000.00 Undivided Profits 6,187,168.46 Total Capital Data Processing Department Gary F. Kirkendall, Vice President Data Processing Officer Dennis D. Weeks, Asst. Vice President, D.P. Donald L. Malick, Asst. D.P. Officer Personnel Department 10,187,168.46 Funds Purchased 5,460,989.36 Other Liabilties 985,931.59 Deposits GayleA. Beddow, Asst. Cashier Patio East Office Charlene K. Williams, Asst. Cashier Patio West Office Mary Lou Wrinkle, Asst. Vice President Maquoketa Bank Tells News C raig B e n tro tt, executive vice president and chief executive officer of the Jackson State Bank and Trust Co., M aq u o k eta, announced the election of two new members to the board of directors, Ann Osterhaus and Kenneth Manders. The b an k also announced the following promotions at the recent annual m eeting: P a tric ia B urris, tru st officer; Gary Drew, assistant vice p resid en t; R ichard Brown, assistant vice president and office manager; Donna Henry, assistant cashier and office m anager, and Loras Herrig, instalment loan officer. Named New Board Member Gene C. Luken, manager and vice president of the Spencer Lumber Co., has been elected to the board of di rectors of the Clay County National Bank, Spencer. He is a native of Spencer and grad uated from the University of Iowa in 1972. Carson Office Don D. Fletcher, Manager 111,826,298.68 McClelland Office $128,460,388.09 Franklin H. Geiger, Manager Council Bluffs ___ Savings Bank 151 A BANKS OF IOWA BANK Member Federal Deposit Insurance Corporation O FFIC ES IN CO U N C IL BLUFFS, M cC l e l l a n d , a n d c a r s o n , i o w a Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cation, Processing and Approval of SBA Loans; Closing, Servicing and Liquidation; Building a Quality SBA Portfolio, and Management A ssist ance Available for Small Business. The second day’s agenda includes the SBA and Secondary Markets; The Secondary Market and Corre sp o n d en t B anks; The Secondary Market and Bank Trust Department, and The Iowa Business Development Credit Corp. The program will con clude with concurrent sessions by different commercial secondary m ar ket brokers. For in fo rm atio n co n tact Tracy Clark Jr. at the Iowa State Bank and Trust Company in Iowa City, phone (319)338-3625. Iowa Transfer Statistics As of January 1, the statistics for the Iowa Transfer System were as follows: Iowa Convenient Banking com m unities — 38; ITS m ember banks—570; participating banks— 73, and data processing centers—6. Terminal Volumes: terminals — 167; full fu nctioned m an n ed —61; ATM on premise—74, and ATM off premise—32. Switch Transactions: N ovem ber105,806; December—112,597. T o tal T ran sac tio n s: O ctober — 355,516; November—365,048. 75 Why our man in Io w a ... should be yW i/m an in Iow a Chances are you already know him. Most every banker in Iowa does. He’s Max Roy. Max has been traveling the state for over 25 years... helping correspondent bankers in just about every way you could think of. It’s not presumptuous to say that this man knows as much about farm ing in Iowa, and the needs of bankers there, as any banker who could knock on your door. You see, Max Roy isn’t j u s t a banker. He’s a farmer-rancher. Has his own farm just o u ts id e o f B lo o m fie ld , Iowa. 700 acres. Runs over 300 head of cattle. Like you, he's been through the ups and downs of different cattle cycles. When you talk to Max about farming, feed, c a ttle ... the needs of your customers, he knows what you’re talking a b o u t... first hand! Max Roy is the kind of person you’ll find in Drovers Correspondent Banking Depart ment. We’re proud to have him with us, and to offer you the years of banking know-how he represents. If you’re one of the few Iowa bankers who doesn’t know Max, you ought to! He’ll prove that Drovers should be your b a n k -a n d that Max Roy should be y o u r man in Iowa. Member Federal Reserve System Drovers Bank of Chicogo 4 7 th S t r e e t & A s h l a n d A v e n u e , C h i c a g o , IL 60609 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 312/927-7000 Northwestern Banker, February, 1980 76 Iowa News Four Named at Ames Bank Ida Grove Banker Is Honored At a recent board meeting of the F irs t N atio n al B ank, A m es, two officers were promoted and two new officers were named. Steven J. McLaughlirr^was promoted from assist ant tru st officer to tru st officer, Larry Cole was promoted from auditor to assistant cashier, Kevin Deardorff was named auditor and Donald Millage was named assistant cashier. Mr. McLaughlin joined the bank in 1974. He is a graduate of the Univer sity of Iow a and C reighton Law School. Mr. Cole, an instalment loan offi cer, joined First National in 1977. He attended Iowa State University and graduated from the University of Northern Iowa in 1975. Mr. Deardorff is a 1977 graduate of Iowa State University. Mr. Millage graduated from Iowa State Univer sity. He is presently handling the student loan program for the bank. New Operations Officer SELECTED as Ida Grove’s Outstanding Businessman of the Year at the annual meeting of the local Chamber of Commerce last month was James Lipton Jr., pres., Ida County State Bank. Present for the award ceremony, which recounted the numerous civic endeavors in which Mr. Lipton has been a leader, were several visiting bankers. Shown above after the ceremony are, from left to right: Front row— H. W. Godbersen, chmn.; Mr. Lipton, and Peter H. Nielsen, sr. v.p. & cash., ail with IdaCounty State Bank. Back row—Jerry Just, sr. v.p., Northwestern Nat’l., Sioux City; Doug Schmidt, corr. bkg. off., and Gary Stevenson, v.p., both with 1st Nat’l., Sioux City; Dale C. Smith, exec. v.p. (ret.), and Eddie Wolf, sr. v.p., both with Central Nat’l. B&T, Des Moines, and Neil Milner, Des Moines, exec, v.p., Iowa Bankers Assn. MAHASKA STATE BANK OSKALOOSA, IOWA Statement of Condition, December 31,1979 RESOURCES CAPITAL ACCOUNTS Cash & Due From Banks U.S. Government Bonds Municipal Bonds U.S. Government Agencies Loans & Discounts Bank Premises & Furniture & Fixtures Other Assets Total Assets 4,430,098 2,691,944 9,898,132 4,347,263 41,077,777 Capital Stock Surplus Earned Surplus Other Reserves Total Capital 553,553 1,309,456 64,308,223 LIABILITIES Deposits Other Liabilities Total Liabilities & Capital 500,000 1,500,000 2,609,387 348,851 4,958,238 57,993,651 1,356,334 64,308,223 OFFICERS R. S. Howard, Jr. , Chairman & President John Pothoven, Exec. Vice President Rex L. Blom, Vice President Dale G. Stansbeary, Vice President & Cashier Will Schippers, Sr. Operations Officer Alice M. Parlet, Executive Secretary Steve A. Brend, Sr. Personal Loan Officer James W. Goering, Commercial Loan Officer Charles S. Howard, Commercial Loan Officer Steve C. Knutson, Agricultural Loan Officer David L. Shelquist, Agricultural Loan Officer Judith L. Warrick, Personal Loan Officer Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Donna Sarver, Personal Loan Officer Hester Whitlatch, Controller Roger A. Parlett, Data Processing Officer Evelyn Vos, Trust Officer David Meinert, Auditor Robert Westenhaver, Officer Manager Johnita Jones, Assistant Cashier Gladys Allsup, Assistant Cashier Harold Sutherland, Assistant Cashier Floydine Dunwoody, Assistant Cashier Irene Finch, Assistant Cashier W illiam G. H erb rech tsm ey er, president of the First Security Bank & Trust Co., Charles City, has an nounced the appointment of Randy E. Burrack as operations officer. Mr. Burrack has served as a bank operations officer at the Northwest State Bank of Arvada, Colo., and was also with Central Bank of Denver. Jerry Gross Will Head Kirk Gross Co., Waterloo Gerald L. Gross has been elected president of Kirk Gross Co., W ater loo, succeeding R ic h a rd Z a h n , who has been named chairman. The com pany specializes in the design and re m odeling of fi n ancial in s titu tions and offers a com plete tu r n key program. G. L. GROSS Mr. Zahn and Mr. Gross purchased the company in January, 1971. It had been founded by Kirk Gross and operated by him for many years. Jerry Gross attended Loras College in D ubuque, th en w orked as an industrial engineer for Inland Steel Co. in Milwaukee and later for U.S. Plywood Corp. in New York City be fore joining Kirk Gross Co. as vice president. 77 S tatem ent o f Condition B o a rd o f D ire c to rs V. O. FIGGE President December 31,1979 PHILIP D. ADLER Lee Enterprises A SSETS EDWARD L. CARMODY Cash and Due From Banks Federal Reserve Funds Sold U.S. Government and its Agency Securities Other Marketable Corporate Obligations Municipal Securities Federal Reserve Bank Stock Loans Bank Premises and Equipment Interest Accruals Customers Liability for Letters of Credit Other Assets $ 28,507,153.33 75,050,000.00 34,804,625.97 31.511.112.80 78.378.948.80 1,122,000.00 203,839,647.06 7,759,195.78 4,882,812.17 1,431,165.05 2,359,122.82 Senior Vice President JAMES KAHL FIGGE Executive Vice President JOHN KAHL FIGGE Executive Vice President THOMAS KAHL FIGGE Executive Vice President MEL FOSTER, JR. Mel Foster Company ROBERTA. HANSON $469,645,783.78 President Deere & Company $ Senior Vice President LIA B ILITIES KENNETH C. HARTMAN Capital Stock Surplus Undivided Profits Total Capital Funds 2,400,000.00 35,000,000.00 14,239,623.45 $ 51,639,623.45 Reserves for Interest, Taxes, and Other Liabilities Banks Liability for Letters of Credit Federal Reserve Funds Purchased Deposits 8,155,572.60 1,431,165.05 53,323,000.00 355,096,422.68 $469,645,783.78 LLOYD G. SCHERMER President Lee Enterprises DEAN R. STICHNOTH President lowa-lllinois Gas & Electric Company CHARLES R. VON MAUR Petersen-Harned- Von Maur LARNEDA. WATERMAN Lane and Waterman HENRY C. WURZER Kahl Properties D avenport Bank and Trust Company I Mem ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 78 Iowa News 1980 Iowa Group Meetings Date Feb. 8-9 Feb. 17-18 May 5 May 6 May 7 May 8 May 19 May 20 May 21 May 22 City Sioux City Burlington Davenport Dubuque Marshalltown Clear Lake Council Bluffs Des Moines Fort Dodge Okoboji Group 1 11 8 4 7 3 5 6 2 12 Joins Davenport B&T Davenport Bank and Trust Com pany has announced th at Michael D. Ja n se n was re cently elected ac counting officer. H e p r e v io u s ly held positions at United Bank of Illin o is, R ock ford, and at First N atio n al B ank, Rock Island, 111. He is a 1975 gradm . D. JANSEN uate of St. Ambrose College. ‘Royal Facelift’ at Centerville National Farley State Makes Changes Don E. Moran was elected senior vice president of the Farley State Bank at the bank’s annual meeting last month. He formerly served as a vice president. Jerome I. R itt was named assist ant cashier and manager of the Holy Cross office, and Charles Maiers of Holy Cross was elected to the board of directors. CENTERVILLE Nat’l. Bank celebrated a complete remodeling of its facilities, inside and out, with an open house in December. Described as a “royal facelift,” the remodeling fea tures a wide open lobby area with individual offices along one wall. All woodwork and office furniture are oak, complimented by blue and gold carpeting. Kirk Gross Co. of Waterloo served as general contractor on the project. FIRST NATIONAL BANK OF MUSCATINE Muscatine, Iowa STATEMENT OF CONDITION DECEMBER 31,1979 ASSETS Cash and Due fro m B anks .......................................................... $ 9,576,000.00 U nited S tate s G ove rnm ent S e c u ritie s ...................................... 500,000.00 O th er B ond s ..................................................................................... 500,000.00 S tate, C o u n ty and O th er M u n ic ip a l O b lig a tio n s .................. 13,045,000.00 Federal Reserve B ank S to c k ......................................................... 120,000.00 Federal F u n d s S old ..................................................................... 7,500,000.00 Loans (e x c lu d in g unearned incom e) .........$65,496,000.00 L e ss— Reserve fo r Loan Losses .................. 715,000.00 N et Loans ....................................................................................... 64,781,000.00 B ank, P arking L o t, O ffic e and F ix tu re s ................................. 3,531,000.00 O th er A s s e ts ................................................................................... 928,000.00 Inco m e Earned b u t N ot C o lle cte d ............................................. 661,000.00 T o tal A s s e ts $101,142,000.00 LIA B ILIT IE S C ap ita l ..............................................................................................$ 2,000,000.00 S u rp lu s ............................................................................................ 2,000,000.00 U nd ivid e d P ro fits .......................................................................... 4,491,000.00 O th e r L ia b ilitie s and D eferred Taxes ...................................... 1,549,000.00 In te re s t-B e a rin g Dem and N ote s ............................................... 3,071,000.00 D e p o s its ......................................................................................... 88,031,000.00 T o tal L ia b ilitie s $101,142,000.00 OFFICERS C. D. OBERWORTMANN, Chairman of the Board GEORGE A. SHEPLEY, President and C.E.O. ROBERT A. LOTHRINGER, Exec. Vice President ROBERT P. SOLHEIM, Vice Pres. & Trust Officer H. W. OGILVIE, JR., Vice President LOUIS RECHTFERTIG, Vice. Pres. — Instalment Loans MARGARET MATHES, Vice Pres. & Trust Officer JUDD W. LELAND, Vice Pres. & Farm Manager L. G. SULZBERGER, Cashier EDWARD H. SCHROEDER, Asst. Vice President E.S. “ KELLY” BURNS, Asst. Vice President Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JO MERCER, Asst. Vice Pres. & Secretary JOHN VOLKMAN, Asst. Vice President JAMES V. PULLIAM, Asst. Vice Pres. — Mgr. Mall Office DOROTHY DRAKE, Asst. Cashier LEO KOSSIVES, Auditor JAY S. McKEE, Loan Officer JANICE METZGER, Mgr. — Bookkeeping Dept. SHIRLEY SMITH, Administrative Assistant LINDA ANDREWS, Administrative Assistant DEE ANN EMLET, Head Teller PHYLLIS BISHOP, Mgr. — Downtown Drive-In Hawkeye Plans to Buy First National of Sibley Paul Dunlap, president of Hawkeye Bancorporation, Des Moines, an nounced last month an agreement has been signed for purchase of First Na tional Bank of Sibley by Hawkeye, subject to Federal Reserve Board ap proval. Terms of the cash transaction were not announced. Leo E. Carolson Jr., president of First National, and all other officers and staff will continue in their present positions. First National had 1979 year-end assets of $21 million and is one of two banks in Sibley, the county seat of Osceola County in extreme northwest Iowa. The other bank, Sibley State Bank, also has in excess of $20 million assets. Mr. Dunlap said Sibley is in an “ excellent ag area, noted for its grain and liv esto ck p ro d u ction and the bank and the market it serves fit ideally into Hawkeye’s network of trade center banks.” Hawkeye has assets of over $900 million, Mr. Dunlap stated, with 22 member banks in 54 locations. The multi-bank holding company also has an application pending with the Fed eral Reserve for acquisition of Hawkeye State Bank in Iowa City. 79 Q uietly announcing that Iow a B ankers Insurance Services, Inc., returned $353,384 from earnings to the benefit o f participating Iow a Banks for the year ended A ugust 31, 1979. T hat’s an in crease over the previous year by IBIS. T he o n ly in su ra n c e agency ow ned by a ll b a n k s in sta te . IB IS provides th e m ost com plete coverages to p ro tect a b a n k s em ployees, custom ers, an d fin an cial assets. IB IS p erso n n el h a v e th e ex p ertise to d esig n in su ra n c e p ro g ram s for y o u r specific needs. C all us now for m ore inform ation. Iow a B ankers Insurance Services, Inc., 430 L ib erty B uilding, D es M oines, Iow a 50308 (515)286-4300 Call our toll FREE WATS number 1-800-532-1432 T h e r ig h t co m b in a tio n . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 80 Iowa News Dunlap Bank To Have New Quarters and the First National Bank of Ari zona in Phoenix. He is a 1973 gradu ate of Central College, Pella, with a degree in economics. I Central Nat’l. Bancshares May Acquire Spencer Bank Kenneth M. Myers, president of j Central National Bancshares, Inc., Des Moines, and John W. Rahn, president of Spencer National Bank, jointly announced recently the man agement of the two companies are considering a possible cash tender offer whereby Central would offer to THE NEW headquarters building of the Dunlap Savings Bank is expected to be completed acquire all of the 100,000 outstanding shares of capital stock of Spencer Na this May. tional Bank. The final terms of any such offer C o n s t r u c t i o n is underway on windows. The basement will allow for would be disclosed in the offering a new banking facility for the future expansion. There will be a drive-up window materials at the time the tender offer D unlap S avings B ank across th e street from present quarters, accord and night depository on the east side is made to the Spencer shareholders. The acquisition would be subject to of the 62’ by 68’ building. Limited ing to Richard Randall, president. The main level will feature five parking is featured behind the build approval by appropriate bank regu latory authorities. office areas, board room , lounge, ing. Spencer National has two offices Wood and brick will make up the bookkeeping room, waiting area with fireplace, record v a u lt, cash and fa c ility ’s ex terio r. C om pletion is and has total assets of $35 million. Central owns controlling interest in safety deposit vault and four teller scheduled for this May. 10 Iowa banks, the largest of which is Central National Bank & T rust Com Promoted 3 t Norwalk is also a member of the board of dipany of Des Moines, and owns a The board of the Norwalk-Cum- rectors, mortgage banking and a leasing com ming State Bank has elected John A. Prior to joining the Norwalk bank, Donhowe an assistant cashier. He Mr. Donhowe was associated with pany. Central has total assets of has been with the bank 2 Via years and Central National Bank of Des Moines approximately $745 million. SECURITY SAVINGS BANK Peoples Bank Announces Bank Officer Promotions MARSHALLTOWN, IOWA Statement as of December 31,1979 Resources Cash and Due from Banks .......................................................................................... $ 7,883,190 U.S. Treasury Securities ............................................................................................. 5,145,550 Obligations of Other U.S. Government Agencies and Corporations .................... 1,004,033 Obligations of States and Political Subdivisions .................................................... 17,707,384 Federal Reserve Bank Stock ....................................................................................... 90,000 Federal Funds Sold ..................................................................................................... 4,500,000 Loans [net of unearned interest and valuation reserve] .......................................... 58,382,547 Bank Premises ............................................................................................................. 1,483,030 Furniture and Fixtu res............................ 218,745 Accrued Interest and Other A sse ts............................................................................ 1,333,464 $97,747,943 LIABILITIES Deposits Demand .................................. T im e ........................................ Accrued Interest, Taxes, Etc. .. Capital Stock ...................................... Surplus .................................. Undivided Profits nd Reserves OFFICERS Ronald E. Fenton, President W. A. Lane, Jr., Chairman of the Board R.M. W ilson, Chairman of the Exec. Committee Sam W. Neill, Senior Vice President G. G. Leth, Senior Vice President Wendell Stanley, Vice President and Cashier F. R. Dunham, VP and Personal Loan Manager Robert F. Scott, Vice President Leo E. Herrick, Vice President Michael W. Bloom, Vice Pres. & Trust Officer Eugene M. Yordy, Auditor $20,174,341 67,765,102 $87,939,443 2,361,166 1,000,000 2 , 000,000 4,447,334 Richard A. Beasley, Assistant Vice President Richard K. Isaacson, Farm Manager BarbaraJ. Atha, Assistant Trust Officer May Ball, Assistant Cashier Dan J. Bomar, Assistant Cashier Vernelle Clay, Assistant Cashier Myrna K. Muench, Assistant Cashier LAUREL OFFICE Richard Thorson, Vice President and Manager Mavis McMahon, Assistant Cashier SOUTHRIDGE OFFICE Michael W. Hurd, Asst. Cashier and Manager Member of the Federal Reserve System Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7,447,334 $97,747,943 Peoples Bank and Trust Company, Cedar Rapids, has announced the following bank officer promotion.- : Kenneth F. Schoenauer from assist ant vice president and trust officer to vice p resid en t and tr u s t officer; James R. Schultz and Glen R. Subra from assistant vice president to vice president, and James P. Bell, Comie W. Bender and Gary L. Ellis to assistant cashier. Union Pacific, Missouri Pacific Plan Merger Jam es H. E v an s, chairm an of Union Pacific Corporation, Omaha, and Downing B. Jenks, chairman of M issouri Pacific C orp oration, a n nounced last month their respective boards of directors have approved an agreement in principle under which the two corporations would merge. Upon consummation of the merger, each share of the common stock of Missouri Pacific Corporation will be converted into 0.55 of a share of a new I convertible preferred stock of Union Pacific. You don’t have to go long-distance for b ig investment service. There are larger banks in bigger cities. But when it com es to your investm ent needs, no bank anyw here offers bigger or better service than the professional staff of the lowa-Des Moines Investm ent D epartm ent. We have a full range of investm ent services including Bond Accounting which allows us to work closely with you and your bank in the planning of your bond portfolio. And, we now have up-to-the-m inute inform ation oh tax swap availabilities through an on-line term inal. Every m em ber of our staff is an experienced professional who can assist you in your investm ent decisions. And your investm ent with an Iowa bank is an investm ent in Iowa. Call us to get a lot of help for your money, right here in Iowa. IOW A . nesMom es A Banco® A n a t io n a l b a n k Member FDIC Yes, you can get a lot of help for your m oney Lynn Horak Janine Young Roger Mahoney John Johnson Barb Estey Tom Naughton ©1980 lowa-Des Moines National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of AIB for many years, having served as a vice president and a member of the Board of Governors of the Des Moines Chapter. He attended the Fi nancial Public Relations Association school at Northwestern University, Evanston, 111. Among his many civic organiza tion activities, Mr. Nelson served as president and later as Lt. Governor of the Optimists Club. *** C APITAL City Bank announced several promotions following a re c e n t b o ard meeting. G. Kurt Wayne, most re cently senior vice president of the commercial lend ing center, was named executive vice p resid en t. He has been with the bank since G- K- WAYNE 1971. John R. Langin was named vice president of lending. He has been with the bank since 1978 and formerly was credit manager at the GibbsCook Eqipment Co. James M. Middendorf was pro moted to vice president of commercial lending. He joined the bank in 1977 as a commercial loan officer, coming from th e Iow a D ep artm en t of Banking. Sally L. Dechant was promoted to vice president of mortgage lending. She joined the bank as a commercial loan secretary, was named assistant commercial loan officer in 1976 and a commercial loan officer in 1977. Bill J . Boyer was nam ed vice president of retail banking. He joined the bank in 1948 and over the years has worked in the retail and lending areas. Most recently he was vice president of commercial lending. Patricia J. Hutchins was promoted to vice president and corporate sec retary. She joined the bank over 20 years ago and has served as executive secretary, assistant personnel officer and, most recently, personnel officer and corporate secretary. C lifton E. D eitrick was nam ed assistant vice president and com Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis puter manager. He joined the bank in 1978 as senior o p eratio n s officer, coming from Bankers Trust. Dale L. Hunter, named computer officer, joined the bank last August as a com puter program m er. He formerly was with Financial Industry Systems. Susan R. Zingula, promoted to auditor, joined the bank last Septem ber. She has a degree in accounting from Iowa State University. Jo h n M. [Jack j S anders was nam ed farm m anager. He joined Capital City in 1977 as a fieldman in the farm management department. He formerly was an area crop special ist with Servi-Tech. David G. Werner, named admin istration officer, joined the bank last May as assistant auditor. He has a degree in construction management from the University of Nebraska. *** George T. Nelson, 67, who retired from C en tral N atio n al B ank and T ru s t Com pany July 1,1977, died last month. Mr. N e ls o n jo in e d Central National in 1934 as a col lecto r and m es senger. He work ed in all phases of o p eratio n s and for a number of years prior to reG. T. NELSON tirem en t was asso ciated w ith th e marketing department. He was elect ed assistant vice president in 1965, the position he held at the time of his retirement. Mr. Nelson was an active member The Iowa Bankers Association is currently planning a March “Trip to Des Moines” similar to the annual IB A Washington, D.C., visit. The IBA staff is looking into the possibility of a two-day Des Moines Trip th at would feature legislative visits, meetings with the various fi nancial institutions regulators, dis cussions with key Iowa officials and briefings by the IBA staff. *** Herman C. Kilpper, president and chief executive officer of B ankers Trust Company, recently a n nounced the fol lowing additions and promotions. J. Michael Deege joined the staff on January 1 as vice presi dent and head of th e tr u s t d iv i J. M. DEEGE sion. M ost re cently he served as vice president and tru st officer of Central State Bank in Muscatine. Formerly he headed the estate planning and new business division of Central National Bank and Trust Co. here. Roger Arwood has joined the bank as assistant vice president in the cor respondent banking division. Most recently he was a commercial loan officer a t th e N atio n al B ank of Detroit. He has a BS degree in busi ness a d m in istra tio n from C entral Missouri State University and an R. ARWOOD B. A. CORNWELL A short guide to choosing a correspondent hank. Nearly every large bank has a correspondent banking department. So how do you choose which bank to do business with? A. Talk to the people. Find o u t h o w know ledgeable th ey are. H ow professional. M ake th em explain h o w their co rresp o n d en t b anking d e p a rtm e n t can help you. 83 A re th ey easy to deal w ith? They sh o u ld be. A c o rre sp o n d e n t b an k er an d his client n e ed to w o rk in h arm ony. C heck th eir rep u tatio n . A re they d ep en d ab le a n d reliable? All solid relationships are built on trust. In a ban k in g relationship, tru st is th e m ost im p o rtan t elem ent. Be certain th a t freq u en t com m unication will be m ain tain ed b etw een th e co rresp o n d en t b an k a n d y o u r bank. If one or b o th of y o u a re n 't aw are an d well inform ed, th e re 's b o u n d to be trouble. Of course, at Central National, we think the people in our correspondent banking department can do the best job for you. But you be the judge. Call us toll free, 1-800-362-1615. Make an appointment. Then put us to the test. Left to Right: William B. Greaves, Vice Pres.; Margo Foxhoven, sec.; Raymond Schneider, Corsp. Bk. Officer; Eddie A. Wolf, Sr. Vice Pres.; Jeannine Gathercole, sec.; Cyrus D. Kirk, Vice Pres. ttfe ’r e d eterm in ed to d o th e b e st fo r y o u . "C " Central National Bank & Trust Company DES MOINES MEMBER FDIC flg AFFILIATED WITH CENTRAL NATIONAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1980 84 Iowa News MBA from N o rth w est M issouri State. Betty A. Cornwell was named ac- G. J. ORTALE D. L. SHADE counting officer. She joined Bankers Trust in January, 1978, and is a grad uate of the University of Northern Iowa. Gary J. Ortale was named assist ant auditor. He joined Bankers Trust in August, 1978. Mr. Ortale is a certi fied public accountant and a graduate of Drake University. Donna L. Shade was named corpo rate services officer. She started at Bankers Trust in the check proces sing division in 1968, and joined the co rp o rate b an k in g d ep artm en t in 1976. STATEMENT OF CONDITION at close of Business December 31,1979 ASSETS Cash and due from b a n k s .............................................. $ 9,172,081 Investment securities: U.S. Treasury se cu ritie s............................................ 13,490,192 Obligations of states and political subdivisions . . . . 24,563,992 Total investment securities ....................... 38,054,184 Federal funds sold ........................................................ 6,800,000 Loans, net of unearned income ..................................... 70,224,705 Less valuation reserve for loan losses ..................... (679,554) Total lo a n s .................................................. 69,545,151 Accrued interest receivable ........................................... 1,148,386 Bank premises and equipment ................................... 2,960,311 Other assets .................................................................. 98,728 Total assets .................................................. $127,778,841 LIABILITIES and CAPITAL Deposits: Demand deposits ........................................................ 30,556,020 Savings deposits ...................................................... 28,561,752 Time deposits ............................................................ 52,120,225 Total deposits ............................................. 111,237,997 Securities sold under agreements to repurchase .......... 2,350,000 Other short-term borrow ings......................................... 1,489,246 Accrued expenses and other liabilties ......................... 986,893 Total liabilities ........................................... 116,064,136 Stockholders’ equity: Capital stock ...................................... 2,800,000 Surplus ...................................................................... 2,800,000 Retained e arnin g s...................................................... 6,114,705 Total stockholders’ equity ......................... 11,714,705 Total liabilities and stockholders’ equity .. $127,778,841 L o w e ll J . W a lk e r J a m e s R . G e rb e r Chairman of the Board Assistant Vice President R o b e rt L . S m ith D a le K . D e K o s te r President & Chief Executive Officer OFFICERS Assistant Vice President R ic k A . T h u e s e n Controller F r e d e r ic k K o c h D e o n S e n c h in a Senior Vice President & Trust Officer Consumer Loan Officer M e r le W . R o d g e rs E v e ly n K . Y a g la Senior Vice President Consumer Loan Officer R o b e rt V . C o o p e r B e tty M . R u n y a n Senior Vice President Assistant Cashier E . J a m e s O ’C o n n o r , C C L C h a r le s P . B e a rd Senior Vice President Trust Officer W illia m D . D a v id s o n D e n n is E . E g e l Vice President Assistant Trust Officer G e r a ld J . C u rra n D ia n e C . K u p fe r s c h m id t Cashier Personnel Director D o n a ld N . R ic h a r d s A n ita M . W a rd Assistant Vice President Auditor WATERLOO SAVINGS BANK W est Park at Cedar, W aterloo, Iowa 50704 Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Executive Changes Made At Farmers Bank, Wever Several appointments have been made at the Farmers Savings Bank in Wever. They include: William W. Burk, president; Harold D. Liddle, vice president; Edson P. Cornick, cashier, and Robert H. Hansenclever, director. Mr. Burk, a farmer, has served on the board of directors for 18 years. Mr. Liddle, a Wever businessman, has served on the board for four years and succeeds Mr. Burk as vice presi dent. Mr. Cornick, a Wever business man, succeeds Clifford G. M atteson. Mr. Matteson died in December fol lowing a heart attack. He had served as the bank’s chief executive officer for 19 years and had been with the bank for 30 years. Mr. Hansenclever is a local farmer. New Executive VP Named at Morningside, Sioux City Jack B. Conley, president of the Morningside State Bank, Sioux City, has announced th at Steven G. P at terson has joined the bank as execu tive vice president in charge of asset management. Mr. Patterson was most recently cashier at the First Federal State Bank in Des Moines, where he began his banking career seven years ago. He is a graduate of the University of Iowa with a degree in business ad ministration. Both Morningside and First Fed eral are members of Hawkeye Bancorporation. Herbert Schneckloth Herbert Schneckloth, 85, honorary chairman of Central Trust & Savings Bank, Eldridge, died in December. He had served as chairman of the bank for a number of years, joining the board in 1934. He was a lifelong Eldridge resi dent, a farmer and cattle feeder and nationally known as a Belgian horse breeder. Iowa News Burlington Will Again Host Group 11 Meeting, February 17-18 Sunday, February 17 P.M . 4:00 5:30 7:00 8:30 B URLINGTON will host the annual meeting of Group 11 of the Iowa Bankers Association February 17-18 at the Holiday Inn, located at the junction of Highways 34 and 61. Presiding will be Robert H. Berg, vice president and cashier, Iowa State Bank & Trust Co., Fairfield, chairman of Group 11. The secretary is William A. Logan, chairman of The State Central Sav ings Bank, Keokuk. According to usual custom, a buffet dinner and dance on Sunday will be followed with the 85 business meeting and luncheon on Monday, as noted in this program: Registration—Holiday Inn. Social H our—Holiday Inn. Buffet Dinner—Holiday Inn. Dancing to 11:30 p.m. —Holiday Inn. M onday, February 18 A .M . 10:00 Business M eeting—Holiday Inn. Presiding: Robert H. Berg, Chairman, Group 11. Report of Nominating Committee. Minutes: William A. Logan, secretary, Group 11. Guests: Leslie H. Olson, president, Iowa Bank ers Association, and president, Toy National Bank, Sioux City; Thomas H. Huston, Iowa superintendent of banking; Neil Milner, executive vice president, Iowa Bankers Association. P.M . R. H. BERG W. A. LOGAN B. A. ELLIOTT I 12:30 Luncheon—Holiday Inn. Invocation. Remarks: Bump Elliott, athletic director, Uni versity of Iowa, Iowa City. □ Statement of Condition December 31,197? Resources Liabilities Cash and Due from Banks....................... $ 20,270,597.28 U.S. Government Securities..................... 12,503,388.23 Municipal B o n d s ...................................... 22,539,116.13 U.S. Agency Bonds................................... 8,134,507.61 Other Securities including 3144,000.00 Federal Reserve Bank S to ck............... 747,017,68 Loans, Net of Unearned Discount (32,638,898.41)..................... 71,349,499.42 Less: Reserve for Possible Loan Losses .. (430,260.42) Federal Funds Sold ................................. 1,000,000.00 Banking House, Furniture and Fixtures . . . 2,686,804.11 Other Assets.............................................. 1,745,026.30 3140,545,696.34 C a p ita l....................................................... 3 2,400,000.00 Surplus....................................................... 2,400,000.00 Undivided P rofits...................................... 6,155,446.23 Reserve for Contingencies....................... 238,587.32 Total Equity C a p ita l............ 3 11,194,033.55 Provision for Taxes, Interest and Expenses 1,541,375.88 Other Liabilities ........................................ 264,868.02 Interest Bearing Demand Notes to U.S. Treasury........................................ 566,271.11 Federal Funds Purchased and Securities Sold under Agreements to Repurchase............................................... 10,561,240.61 Deposits.................................................... 116,417,907.17 3140,545,696.34 Officers William G. Kruse President J. Bruce Meriwether BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Richard T. Tempelman Assistant Vice President Gladys Hueneke Assistant Vice President L. Richard Winter Richard A. Bean Senior Vice President Assistant Vice President Paul J. Gisch John M. Hansen Robert G. Koehler Investment Officer P. Jeanne Sinhold Vice President- Accounting Real Estate Loan Officer Daniel E. Welu Raymond J. Schirmer Vice President-Operations Comptroller Leo M. Mallie Guy W. Jones Vice President Thomas W. Buelow Dubuque, Iowa Assistant Vice President Executive Vice President and Cashier Senior Vice President FIRST NATIO NAL John J. Savary Installment Loan Officer Richard A. Wertzberger Vice President Personal Banking Officer David D. Moore Sara J. Candy Trust Department President John W. Law Chairman of the Board John W. Law Co. Mark J. Willging Trust Officer John K. Lawson Kenneth E. Weitz Trust Operations Officer Works Manager, John Deere Dubuque Works Directors Executive Vice President and Cashier J. Bruce Meriwether Wayne A. Norman Roger J. Rhomberg Waldo Adams Chairman of the Board Pres., Rhomberg Fur Co. Edward A. Babka Pres., Babka Publishing Co. Paul L. Britt Vice. Pres., General Mgr. Toledo Stamping & Mfg. Co Dubuque Division Vice President and Director of Marketing Personal Banking Officer Thomas J. Stecher Personal Banking Officer Senior Vice President Vice President and Director of Personnel David W. Spahn Auditor Jim H. Houtz Mary A. Piersch William G. Kruse Dale P. Repass Vice President and Trust Officer Frank A. Fluckiger Paul J. Gisch Charles J. Spahn Chairman, Exec. Committee Spahn & Rose Lumber Co. James E. Walsh Pres., Bird Chevrolet Co. N. J. Yiannias Pres., Dubuque Theotre Corp. Pres. Key City Investment Co. Pres., CyCare Systems Northwestern Banker, February, 1980 86 Iowa News Marion Bank Opens Drive-Up Facility Morris F. Neighbor, president of Farmers State Bank, Marion, has announced the opening of a new 10-lane drive-up banking facility located at 9509th Ave. At present six lanes will be open during business hours and additional lanes will be opened when needed. During the first month of operation nearly 12,000 vehicles used the new facility. Eight Bankers Serve on Foundation Board men to begin the evaluation process. They were R obert B u ck m aster, chairman of Black Hawk Broadcast ing Company, Waterloo, and William B ren to n , chairm an of B renton Banks, Inc., Des Moines. With the aid of Des Moines attorney Richard Ramsay, they reported six months later to the Governor their recom mendation for the establishment of a p riv a te fo u n d atio n com pletely fi nanced by private monies. The sug E IGHT bankers are included in the list of 45 Iowans comprising the executive committee and board of trustees of the Iowa Natural Heritage Foundation. The organization was established 18 months ago by Iowa Governor Robert D. Ray to aid him in evaluating the need for and potential of th e p riv a te sector a ssistin g government in the preservation of the state’s natural lands and resources. Gov. Ray initially requested two Farmers & Merchants Bank & Trust BURLINGTON, IOWA Statement of Condition December 31,1979 RESOURCES Cash and Due from Banks U.S. Government Bonds Municipal B o n d s ............. Other Bonds ................... Loans and Discounts . . . Bank Building ................. Furniture and Fixtures .. Federal Funds Sold Other Assets ................... ...............................................................$ 3,685,000.00 ............................................................... 15,020,000.00 .............................................................. 7,509,000.00 .............................................................. 6,752,000.00 .............................................................. 22,324,000.00 .............................................................. 683,000.00 .............................................................. 224,000.00 ............................................................... 9,950,000.00 ............................................................... 729,000.00 $66,876,000.00 LIABILITIES Capital S t o c k ..........................................................................................................$ 600,000.00 Surplus .................................................................................................................. 2,000,000.00 Undivided Profits ................................................................................................. 1,737,000.00 Reserves ................................................................................................................ 879,000.00 Unearned Discount ............................................................................................... 784,000.00 Deposits ................................................................................................................ 53,153,000.00 Securities Sold Under Agreement to Repurchase ......................................... 6,650,000.00 Interest Bearing Demand Notes Due U.S. Treasury ..................................... 598,000.00 Other Liabilities ................................................................................................... 475,000.00 $66,876,000.00 BOARD OF DIRECTORS W. B. D itto , M.D. M arshall J. M arkey- Food Service & D ist. Co. John M cC ulley - O akville Feed & G rain, Inc. R. J. N ac h a z e l-V ic e President M. A. N ordstrom - C hittenden & Eastman Co. Melvin E. Raid - Medusa A ggregates Gerald D. S m ith - Brown Shoe F it Com pany C. H. W alsh - President C. E. W alsh - Vice P resident Bruce Werden - Retired Joseph W irt - Farmer A lbert E. Zupek - B onew itz Laboratories & S upply Co. OFFICERS C. H. W alsh, P resident R. J. Nachazel, S enior Vice President R. O. Y oun gstro m , Vice President & Trust O ffice r W illia m A. Kuehn, Vice President and Farm Representative Leonard W. Lane, Vice president and Cashier C. E. W alsh, Vice President W. D. S chnirring, A ssista n t Vice President F. W. Rentzsch, A s sista n t Vice President Beverly N. W uellner, A ssista n t Vice President John T. Hanna, A ssista n t Cashier N e llie Jackson, A ssista n t Cashier David W ittm e r, A s s is ta n t Cashier C lair A. Penney, A s sista n t Trust O ffice r M ichael D. E astin, A ssista n t Cashier Member Federal Deposit Insurance Corporation Northwestern Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gested name, later adopted, was Iowa Natural Heritage Foundation. Goals of the Foundation are to aid in the preservation of natural areas, open space, park land and cultural featu res, as well as provide an. encourage a long-range perspective to the management of Iowa’s natural resources. An additional nine members later were added to Board of Trustees, and Governor Ray later invited 34 other persons to represent a cross-section of Iowa citizenry. An 11-member executive commit tee was appointed, with Mr. Buckmaster as chairman, Mr. Brenton as president and Mr. Ramsay as secre tary-treasurer. Among the 34 mem bers ap p o in ted to th e B oard of T ru stee s are th ese seven other b an k ers now serv in g actively the Foundation programs th at have been initiated to date: Ken Benda, president, Hartwick State Bank. Jo h n C h ry stal, p resid en t, Iowa Savings Bank, Coon Rapids. Tom K ern d t, p resid en t, K erndt Bros. Savings Bank, Lansing. M. J . (Dick) K uehl, p resid en t, Security State Bank, Lake Park. William Logan, president, State Central Savings Bank, Keokuk. Bill R onan, p resid en t, D ecorah State Bank, Decorah. Ed Spetman, president, Council Bluffs Savings Bank, Council Bluffs. Named at Waukon Bank Ed Lauerman J r., executive vice president of the Farmers & Mer chants Savings Bank, Waukon, has announced the promotion of James L . Rathbun from assistant cashier to cashier, and th e ap p o in tm en t of R obert N. E rick so n as a s s is ta n t cashier. Jay C. Blackford F u n eral services were held la st m onth for J a y C. B lackford, 70, former president of the Union Bank and Trust Company, Ottumwa. Mr. Blackford came to Ottumwa in 1931 following graduation from the University of Iowa. He was associ ated with the Union Bank for 33 years, retiring as its president in 1972. He had also served as president of the First National Bank, Eldon. He was a past president of Iowa Bankers Association and a former director of the Banks of Iowa. He was Iowa News a member of the board of Union Bank and T rust Co. Among his survivors are his wife, B ancent; his m other a t O ttum w a Manor; daughters Dr. Nancy Sue Jo h n so n of R iverside, C alif., and Sarah McCaughey of Boulder, Colo., and four grandchildren. W re committed to data services. Los Angeles to Host Bank Investments Conference More than 800 bank investment officers are expected to attend the A m erican B ankers A sso ciatio n ’s Bank Investments Conference Feb ruary 19-22 at Bonaventure Hotel, Los Angeles. Thomas N. Slonaker, senior vice president of Mellon Bank, P itts b u rg h , and chairm an of th e ABA bank investments division, will lead off the program on February 20. The program that first afternoon will featu re co n cu rren t w orkshop sessions, allowing bankers to select two in ten siv e d iscussio n sessions from a list of 10 topics offered. These will be repeated Thursday afternoon. Art Buchwald, syndicated news paper columnist and humorist from Washington, D.C., will address the evening banquet. The Thursday morning session will feature Mayor Tom Bradley, ABA President C. C. Hope Jr., and Henry K aufm an, p a rtn e r and executive com m ittee m em ber of Salom on Brothers, New York, who has pre dicted America has not yet seen the peak in interest rates. Two mid-morning programs with identical topics will be divided into two deposit size groups. Three areas for discussion will be Portfolio M an agement in the 80s, Asset/Liability Management in the 80s and Ultimate Impact Changes in the 80s on Bank Portfolios. Luncheon Speaker on Thursday will be Tom Wilcox, chairman of Crocker National Bank of San Fran cisco. Thursday afternoon’s program will offer a repeat of the morning dual general sessions, as well as the Wed nesday topical workshops. C arter Golem be, W ash in g to n , D .C ., widely known in b an k in g circles for his work as a consultant and researcher, will be the featured speaker at the Friday morning gen eral session. Following his speech will be a panel moderated by economist George W. McKinney J r., senior vice president at Irving Trust Company, New York, which will conclude the program. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87 A t Security National, we’re committed to giving you the finest possible correspondent data processing services. T hat’s because we’re more than just another city bank. We’re a country bank, too. Our Security Bankers understand the special data processing needs of ag'Oriented banks like yours. Just one more way you get more when you bank with Security. Talk with our Security Bankers about data processing, ag overlines, and complete investment services. You’ll find they speak your language. W henever you think of correspondent banking, think Security National. We’re committed to helping you. SECURITY NATIONAL BANK ©1979SNB SIOUX CITY, IOWA 51101 712/277-6670 MEMBER ED.I.C. Your Security Bankers Steve Hatz, Wayne Johnson, Wilma Weeks and Jim H ongsk Northwestern Banker, February, 1980 88 Sophisticated Traveler A young lady who had returned from a tour through Italy with her father informed a friend th at he liked all the Italian cities, but most of all he loved Venice. “Ah, Venice, to be sure!” said the friend. “ I can readily understand that your father would like Venice, with its gondolas, and St. M ark’s, and Michelangelos.” “ Oh, n o ,” th e young lady interrupted, “it wasn’t that. He liked it because he could sit in the hotel and fish from the window.” successful there is nothing to worry about; if you are not successful there are only two things to worry about. Your health is either good or you’re sick; if your health is good there is nothing to worry about; if you are sick there are only two things to worry about. You are either going to get well or you are going to die; if you are going to get well there is nothing to worry about; if you are going to die there are only two things to worry about. You are either going to heaven or you are not going to heaven; and if you are going to heaven there is nothing to worry about; if you are going to the other place you’ll be so damn busy shaking hands with old friends you won’t have time to worry — so why worry? Enough School Jeff had reached school age and his mother managed to instill him with enthusiasm about the idea. She bought him new clothes, told him about the other children he would meet and got him so sold on the project that he eagerly went off the first day, and came back with excellent reports of school. Next morning, his mother went into his bedroom and said he had to get up. “W hat for?” he asked. “You have to go to school,” she said. “What, again?” asked Jeff. Why Worry? Either you are successful or you are not successful. If you are IN D EX O F February, 1980 Acorn Printing Co...........................................................12 American National Bank & Trust Co., Chicago ........49 American National Bank & Trust Co., St. P a u l..........39 American Trust & Savings Bank, Dubuque ................71 Banco Financial/Lease Northwest ............................. 43 Bankers Trust Co., Des Moines ................................... 68 Bank of North Dakota ................................................. 9 Banks of Iowa Computer Services ..........................72-73 Brandt Systems ........................................................ 5 Central National Bank & Trust Co., Des Moines . . . . 83 Continental Bank, Chicago ......................................... 13 Council Bluffs Savings Bank ....................................... 74 DigitizedNorthwestern for FRASER Banker, February, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “Our son now has a bank account!” Daktronics .................................................................... 10 Davenport Bank & Trust Co............................................ 77 DeLuxeCheck Printers, Inc.......................................... 3 DeLuxeCheck Printers (Forms Division) ................. 31 Drovers Bank of Chicago ............................................. 75 Farmers & Merchants Bank, B u rlin g to n ......................86 Farmers & Merchants Bank, H u ro n ............................. 52 First Mid America .........................................................63 First National Bank, D ubu que..................................... 85 First National Bank of L in c o ln ..................................... 65 First National Bank of M in n eap olis..................... 40-41 First National Bank, Muscatine ................................. 78 First National Bank of Omaha ..................................... 59 First National Bank, St. Paul ....................................... 37 First National Bank, St. Paul (Bonds) ....................... 42 Gross & Co., Kirk .........................................................19 Heller, Walter E...............................................................47 Insured Credit Services ............................................... 11 Iowa Bankers Insurance & Services ............................79 lowa-Des Moines National Bank (Investments) . . . . 81 lowa-Des Moines National Bank ................................. 90 Kooker&Associates, Earl ................... 8 Leamington Hotel ................................. LeFebure Corporation ......................... Lincoln Benefit Life C o m p a n y.............. 1 1 6 Mahaska State Bank, O skaloosa.......... Manufacturers Hanover Trust Co........... Merchants National Bank, Cedar Rapids Midland National Bank, Minneapolis .. 7 2 3 Nat’l. Automobile Dealers Assn............. National Bank of Commerce, Lincoln .. National City Bank of Minneapolis . . . . Packers National Bank, O m a h a ............ 61 4 Security National Bank, Sioux City . . . . Security Savings Bank, Marshalltown . 8 8 United Bank of Denver ......................... United Guaranty Corporation .............. United States National Bank of Omaha Van Wagenen & Co., G. D........................ 6 8 5 1 Waterloo Savings Bank ....................... 8 6 N ow you can calculate APR for insured and uninsured conventional loans easily and quickly w ith Dial R. This unique chartwheel m ethod anticipates m ortgage insurance prem ium s as well as all other prepaid finance charges in one m anual calculation. C alculation accuracy is w ithin the tolerances specified by the Federal Reserve. United G uaranty's Dial R can be used to disclose APR at the time of loan application or at any stage of loan processing. To prepare Truth- n-Lending forms. To m ake at-the-desk estimates. A nd to check com puter calculations. W hy calculate APR the hard w ay w hen you can do it the Dial R w ay? It's easy, useful and m ade especially for lenders. Ask your United G uaranty representative. We deliver. ---------ty 823 N. ELM STREET • GREENSBORO. NC 27401 800/334-8966 THE MORTGAGE INSURERS A subsidiary of United Guaranty Corporation which also offers Commercial and Property Improvement Insurance. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1979: An excellent year s t a t e m e n t s o f f in a n c ia l /■ .. i , . ,, > (in thousands of dollars) c o n d it io n December 31 1979 1978 Assets Bob Buenneke ¿m e. Cash and due from banks....................................................................................... Investment securities U.S. Treasury.................................................................................................... State, municipal and housing............................................................................ Federal agencies and o th e r.............................................................................. $190,487 $162,535 34,279 88,452 23,720 59,740 73,540 31,625 Total investment securities....................................................................... 146,451 164,905 Trading account securities..................................................................................... Money market investments..................................................................................... Loans Commercial, industrial, agricultural and othe r................................................... Real estate mortgages ..................................................................................... Construction and land development................................................................. Consumer......................................................................................................... Less unearned discount on loans ..................................................................... 5,120 66,975 4,573 70,700 194,154 88,701 27,829 127,483 (3,429) 170,419 75,036 29,616 127,759 (3,145) Total loans .............................................................................................. Valuation reserve for lo a n s ................................................................................ 434,738 (4,376) 399,685 (3,996) Bernie Kersey ffJt Total loans, net of the valuation reserve ................................................... 430,362 395,689 Bank premises and equipm ent............................................................................... Customers’ acceptance liability.............................................................................. Interest receivable and other assets ....................................................................... 14,450 1,537 24,422 13,897 8,334 23,127 Total assets ............................................................................................. $879,804 $843,760 Deposits Demand .............................................................................................. \ .......... Regular savings................................................................................................ Savings certificates........................................................................................... Certificates of deposit and other time ............................................................... $344,834 84,277 110,646 124,129 $296,084 102,639 92,997 86,210 Total deposits........................................................................................... Federal funds purchased and other short-term borrowings.................................... Acceptances outstanding ..................................................................................... Accrued expenses and other liabilities................................................................... Obligations under capital leases............................................................................. Subordinated notes paya ble .................................................................................. 663,886 140,101 1,537 18,875 8,096 9,000 577,930 188,083 8,334 16,623 8,136 9,000 Total liabilities........................................................................................... 841,495 808,106 Stockholders’ equity Common stock $100 par value - Authorized and outstanding 100,000 shares at December 31,1979 and 1978 ......................................... Capital surplus.................................................................................................. Retained earnings............................................................................................. 10,000 10,000 18,309 10,000 10,000 15,654 Total stockholders’ equity........................................................................ 38,309 35,654 èzd Dorothea Wolfe Liabilities and Stockholders’ Equity Voldy Vanags t« v Lance Davenport Commitments and contingent liabilities.................................................................. ...........— — Total liabilities and stockholders’ e q u ity ................................................... $879,804 $843,760 IO W A -. nesMoines _ Member FDIC © 1980, lowa-Des Moines National Bank A Garry Frandson https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A NATIONAL BANK An Affiliate of Northwest Bancorporation B a n c o ® 7th & Walnut, Des Moines, Iowa 50304 • (515) 245-3131 • Call toll-free 1-800-362-2514