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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


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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

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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%

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property im provem ent loans. We guarantee it.

Risk-free security. 100% protection against every
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Greater flexibility. ICS tailors a program to your
Tight money means loan dollars must be concen­
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Risk-free property improvement loans provide excel­
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Fast, com prehensive service. Claims are paid in
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Financial stability. Insurance provided by Old
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Greater yield. Property improvement loans generate
Over 1600 institutions are already profiting from the
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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.”

;

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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.

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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
/ ------------------------------ \
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• 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


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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 %.

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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
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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

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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.


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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


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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


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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!


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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
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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—

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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


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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)

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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
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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.

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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

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lets you maximize your custom er’s
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Which is why more resourceful
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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.

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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

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Federal Reserve Bank of St. Louis

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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


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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

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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
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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 .

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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.


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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

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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
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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


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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