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in banks
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Federal Reserve Bank of St. Louis

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''P ro v id in g o ur custom ers w ith q u a lity
service dem ands m ore from us than
sim ply a surface response. W e go
deeper. Take o ve rlin e and liq u id ity
loans, for exam ple.
" A t M N B , w e act decisively on all
o ve rlin e loan requests. But first, o ur
q u a lified experienced loan specialists
study the situation and apply fresh,
in novative th in k in g in ta ilo rin g a loan
package to yo u r bank and yo u r b o r­
ro w e r's in d ivid u a l needs."

An o p p o rtu n ity to serve.
" W e believe a loan request is an o p ­
p o rtu n ity to serve — not o n ly the b o r­

ro w e r but the respondent bank and
the c o m m u n ity it serves. So, the close
w o rk in g relatio nship w e create and
m aintain w ith each o f o ur respondent
banks and th e ir o ve rlin e custom ers
assures co n tin u e d g ro w th , stability
and q u a lity in th e ir loan p o rtfolio s
and o u rs ."
If q u a lity service is im p o rta n t to
you, too, call 319/398-4320, or call,
to ll free, 1-800-332-5991 and talk to
Jerry or M N B C o rrespondent Banker
John E. M angold, Stan R. Farmer or

Terry M . M a rtin .

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

Member F.D.I.C.


is i


W hen a custom er needs m ore
th an your lending lim it o r lease capacity
look to Bank o f America.

W hen your bank’s customers decide to additional assistance you might need.
With nearly 1100 offices around the
expand or replace major equipm ent,
they’ll probably turn to you for additional globe, Bank of America can provide a
world of correspondent banking serv­
financing. And even if they ask for m ore
than your lending limit or leasing capacity, ices—including lease participations. So
the next time you need a correspondent
you may still be able to honor their
bank, look to Bank of America.
requests. Because Bank of America can
Call us in San Francisco at (415) 622help you with overline or lease assistance.
We can also put the skills of our account 6909. In Los Angeles, at (213) 228-3288.
officers to work for you. They have
decision-making capabilities and direct
access to BankAmeriLease® Group for any Look to the Leader.™

Bank of America NT&SA • Member FDIC
© Bank of America NT&SA 1982
Federal Reserve Bank of St. Louis

C o rre s p o n d e n t B a n kin g S e rv ic e s


Continental Strengthens
Credit Evaluation Process

FEBRUARY 1983 • 90th Year • No. 1433

Micro-Computer Special Section
ON THE COVER — The interest displayed by bankers nationwide in micro­
computers is among the highest of any industry nationwide, and nowhere is that
interest keener than among upper midwest banks. Three articles in this issue are
keyed to this snowballing move. The cover photo from Financial Systems, Inc.,
Kearney, Nebr., which is the author and publisher of BankDisk microcomputer
software, was taken at City Bank & Trust Company of Lincoln, Nebr. It
demonstrates the ability to handle “ what if” situations, often making the micro­
computer the hub of daily decision-making for bank professionals.


The m ighty m icro -co m p uter


M icros in banks

Expert David Waldron looks at past, present and future.


A/L m an a g em e n t w ith a m icro

How $90 million Omaha bank improves management analysis


N ew products w ith m icro

Nebraska community bank develops, markets new programs



Increased productivity

Richard Moore discusses training plan for cross-selling


P redicts housing starts to be up

MGIC Chairman Kendall sees 30% improvement in 1983

8 Calendar
12 Bank Promotions
31 Illinois
36 Minnesota
38 Twin Cities


South Dakota
North Dakota


Des Moines
Adv. Index

306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor


Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1433 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.
 Banker, February, 1983
Federal Reserve Bank of St. Louis

C ontinental Bank Chairman
Roger E. Anderson recently an­
nounced the creation of a new credit^
risk evaluation division to strength­
en Continental's credit risk iden­
tification, evaluation, and reporting
Mr. Anderson said the new divi^
sion was a major recommendation
resulting from the bank’s manage­
ment review of its involvement in
the Penn Square Bank situation.
One portion of the review concent
trated on credit philosophy, policies,
practices and procedures, and an
earlier phase dealt with personnel.
The entire study now has been com­
pleted, its report approved by the(
board of directors and recommenda­
tions are being implemented, Mr.
Anderson said.
The new division, which is an ex­
pansion of the present loan admini-<
stration division, is headed by
William L. Staples, senior vice presi­
dent, who has returned to Chicago
from New York where he headed
Continental’s multinational banking#
division. Mr. Staples reports to
William D. Plechaty, executive vice
president and auditor, who reports
to Mr. Anderson. Mr. Staples and
the new credit risk evaluation divi­
sion will serve as staff to appro­
priate board committees and meet
regularly with them.
Mr. Staples has been with Con­
tinental since 1965 and has held
many important managerial posi­
tions in the bank’s lending areas. He
has headed the New York multina­
tional division since 1979 and before
that managed another multinational
banking division for North Amer­
ican customers. Prior to that he was
assigned to positions in the commer­
cial lending area.
Mr. Anderson added that the new
credit risk evaluation division, in ad­
dition to the rating of credit, will
carry out risk concentration studies
and industry studies, and monitor
the loan portfolio. The new division
will institute a credit rating system
which is in closer concert with that
employed by the Comptroller of the
Mr. Anderson said that an imple­
mentation committee of senior man­
agement is proceeding on the re­
maining recommendations of the
review, fitting proposed changes in­
to improved operating procedures.

Now, you can provide effective sales training for your people
with “Selling Banking Services: How To Get People To Buy,” the
premiere videoclass training tape from ABAs BANCTRAINING
BANCTRAINING is an on-going, quality video-centered train­
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provided in four key Core Curriculum areas: Business Develop­
ment, Customer Relations, Communications, and Productivity
and Performance Measurement.
As a BANCTRAINING subscriber, you receive 10 new video­
tapes annually...eight Core Curriculum videoclass training tapes,
plus two Financial Update tapes which detail late-breaking
developments in the industry
So, if you haven’t already signed up for BANCTRAINING, do it
today and receive “Selling Banking Services: How To Get People
To Buy”
Complete and mail the coupon below. You will be billed
later. Or call Jeanie Howard toll-free: 1-800-247-0010
(Iowa bankers call 1-800-622-0022).

FO. Box 10390, Des Moines, IA 50306
□ YES. Please sign up our bank for ABAs BANCTRAINING program
(10 videotapes plus Videoclass Discussion Guide, quarterly news­
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Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983

Imagine getting only bare walls
when, for the same price,
you could have had a
beautifully built, elegantly
furnished bank.
“ It just about happened to us,”
says Henry Kinberger, president of
Security 1st National Bank, in
Alexandria, Louisiana.
“ We listened to not one, but a
number of proposals for an important
building project for our bank. One
from an architect, another from a
leading plan-design-build firm. Both
would have offered us far less than
the solution we got from HBE.”

“A lot more value for
the dollar.”
“ Instead of remodeling our old
building, HBE showed us how we
could build a brand-new building
that would be much more functional,
for about the same cost, on the same
site, without any interruption of
business. And the HBE price included
a spectacularly beautiful, finished
interior, not just bare walls.”

“Other bankers couldn’t
believe how much we got
for the price.”
“ When many of our banker
friends visited us, they were amazed.
One of them said, ‘I came here
expecting to be disappointed. I can’t
believe my eyes.’ ”
“ What they saw were things like
floor-to-ceiling solid-oak doors,
marble floors, really nice furniture
and the like. All included at the
square-foot price they thought would
have been bare walls only.”

“They didn’t try to
boss us around.”
“ We enjoyed an excellent working
relationship throughout the project.
HBE listened to our thoughts and
responded to what we wanted to do.
There was never any attempt to
impose formulas or rigid sets of ideas
on us. And we liked that.”

“Everything about it works
better for us.”
“ We have such nice touches as
an exceptionally fine heating and air­
Federal Reserve Bank of St. Louis

conditioning system with a lot of
zone controls and real energy savings.
Better departmental and work flow
arrangements. And an employees’
patio on our drive-in roof. All the site
work was included, too. So was
demolition of our old building. Even
vault and security equipment. Plus
new sidewalks, fountains, and so on.
And throughout, HBE stayed with us,
directing all phases and weeding out
anything that proved inefficient.”

Practically no work
change orders.
Security 1st was so satisfied that
work change orders amounted to only
a tiny fraction of the industry average.
Better planning, closer personal
attention, and a more careful, more
concerned, more thoroughly pro­
fessional approach throughout made
the difference. A difference we feel
you can see in every HBE project,
whether bank, savings and loan or
credit union.
Stories like this are not just
once-in-a-while happenings at HBE.
We make them happen all the time.
It’s our specialty, our point of difference,
our pride. We’d like to start making
things happen for you. Find out more.
Call or write me, Sally Eaton, right now
at 314-567-9000. HBE Bank Facilities,
11330 Olive Street Road, St. Louis,
Missouri 63141.

2 2 HBE
Bank Facilities

You can’t afford
not to look at HBE

‘We achieved everything we wanted
and a lot more by working with HBE.’
Henry Kinberger, president of Security 1st
National Bank, is shown here in the lobby of their
beautiful new facility planned, designed, and built
Federal Reserve Bank of St. Louis

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

Broadmoor, Colorado Springs, Colo.
May 8-11—Association of Reserve City
Bankers, Annual Meeting, Boca Raton
Hotel, Boca Raton, Fla.
May 8-13—ABA National Commercial Lend­
ing Graduate School, University of
Oklahoma, Norman, Okla.
May 15-18—BAI Tax Conference, Hyatt Re­
gency Hotel, Orlando.
May 22-25—ABA National Operations and
Automation Conference, Miami Beach
National Conventions & Schools
Convention Center, Miami Beach, Fla.
Feb. 22-25—ABA Bank Investments Con­ May 22-27—BMA School of Trust Sales and
ference, Hyatt Regency, Dallas, Tex.
Marketing, and Essentials of Bank
Feb. 27-Mar. 2—BAI Conference on Bank
Marketing School, University of Col­
Security, Fairmont Hotel, New Orleans.
orado, Boulder, Colo.
Feb. 27-Mar.2—BMA Electronic Banking May 22-June 3—BMA School of Bank Mar­
Conference, Four Seasons Hotel.
keting, University of Colorado, Boulder,
Feb. 27-Mar.2—BMA Community Bank May 28-June 2—ABA National AIB Leaders
CEO Seminar, M arriott’s Mountain
Conference, Sheraton Washington, Wash­
Shadows, Scottsdale, Ariz.
ington, D.C.
Feb. 27-Mar.2—ABA Bankers Education June 5-8—BAI Strategic Planning, Four
and Training Forum, Fairmont Hotel,
Seasons Hotel, Houston.
June 5-17—ABA Stonier Graduate School
Mar. 2-4—ABA Corporate/Commercial
of Banking, Rutgers University, New
Marketing Conference, Capital Hilton,
Brunswick, N.J.
Washington, D.C.
June 9-11—Association of Bank Holding
Mar. 6-9—ABA Community Banks Execu­
Companies, Annual Meeting, Opryland
tive Conference, Fairmont Hotel, New
Hotel, Nashville, Tenn.
July 11-12—IBAA Spread Analysis and AsMar. 7—RMA Loan Review Seminar, Jack­
set/LiabiIity Management Workshop,
sonville Hilton, Jacksonville, Fla.
Hyatt Regency Minneapolis on Nicollet
Mar. 7-11 —RMA Uniform Credit Analysis
Mall, Minneapolis.
Seminar, Xerox International Center for July 13-16—Central States Conference,
Training & Development, Leesburg, Va.
Jackson Lake Lodge, Wyo.
Mar. 13-15—ABA National Credit & Cor­ Aug. 8-9—IBAA Spread Analysis and Asrespondent Banking Conference, Fair­
set/Liabi I ity Management Workshop,
mont, New Orleans.
Caesar’s Tahoe, Lake Tahoe, Nevada.
Mar. 14-16—RMA Asset-Based Lending Sept. 11-14—ABA National Personnel Con­
Workshop, Atlanta Hilton & Towers,
ference, Hyatt Regency, Phoenix, Ariz.
Sept. 12-14—IBAA Commodity Marketing
Mar. 23-26—ABA Mid Sized Bank CEO
Seminar, Chicago, III.
Seminar, Marriott’s Rancho Las Palmas, Sept. 13-16—BMA National Corporate
Marketing Conference, Westin Alpine
Mar. 23-27—IBAA 53rd Annual Convention,
Resort, Vail, Colorado.
Town and Country Hotel, San Diego, Calif. Sept. 14-16—ABA Senior Operations Sem­
Mar. 27-30—BMA Advertising Conference,
inar, Marriott’s Marco Beach, Marco Is­
Hyatt Regency Chicago.
land, Fla.
Apr. 5-7—ABA International Banking Sym­ Sept. 18-21 —NABW Annual Convention,
posium, Hyatt Regency Chicago.
Hyatt Regency, Dallas, Tex.
Apr. 5-8—BAI Check Processing Confer­ Sept. 18-21 —BAI National Convention, Fair­
ence, Marriott Hotel, Chicago.
mont Hotel, San Francisco.
Apr. 10-13—IBAA 21st Seminar/Workshop Sept. 18-23—RMA Loan Management Sem­
on the One-Bank Holding Company,
inar, The Ohio State University, Colum­
Alameda Plaza Hotel, Kansas City, Mo.
Apr. 10-13—ABA National Retail Banking Sept. 18-30—ABA National School of Retail
Conference, Hyatt Regency Atlanta, Ga.
Banking, University of Oklahoma,
Apr. 14-17—AIB Regional Leaders Work­
Norman, Okla.
shop, Omaha, Nebr.
Sept. 20-23—ABA National Bank Card Con­
Apr. 17-27—ABA National Commercial Lend­
vention, Bonaventure, Los Angeles, Calif.
ing School, University of Oklahoma, Nor­ Oct. 8-12—ABA Annual ABA Convention,
man, Okla.
Honolulu, Hawaii.
Apr. 18-20—IBAA Commodity Marketing
Oct. 23-25—ABA International Banking
Seminar, Chicago, III.
Conference, Grand Hyatt New York.
Apr. 24-27—BMA Research and Planning Oct. 23-26—BMA 68th Annual Convention,
Conference, Hyatt Regency Crystal City,
Atlanta Hilton, Atlanta, Ga.
Washington, D.C.
Oct. 30-NOV.2—RMA 69th Annual Fall Con­
Apr. 28-May1—AIB Regional Leaders Work­
ference, Fairmont Hotel, San Francisco.
shop, Salt Lake City, Utah.
Nov. 2-4—ABA Chief Financial Officer
May 3-6—BAI Accounting and Finance Con­
Seminar, Hyatt on Hilton Head, Hilton
ference, Amfac Hotel, Dallas.
Head Island, S.C.
May 8-10—Conference of State Bank Nov. 2-5—IBAA 23rd Seminar on the OneSupervisors, Annual Convention, The
Bank Holding Company, Marriott’s Hilton
for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis

Head Resort, Hilton Head Island, S.C.
Nov. 13-16—ABA National Agricultural
Bankers Conference, Bonaventure, Los
Angeles, Calif.
Nov. 13-17— BMA Trust Marketing Con­
ference, Fairmont Hotel, Dallas, Tex.

State Conventions & Schools

Sept. 21-24—Independent Bankers of Col­
orado Annual Meeting and Convention,
Keystone Resort.

Feb. 23-24—IBA Marketing Conference,
Marriott Pavillion Hotel, St. Louis.
April 5-6—IBA Commercial Credit Confer­
ence, Ramada Inn, Champaign.
Apr. 19-21 —IBA Estate Planning Seminars,
Mount Vernon, III.
May 4-5—IBA Consumer Credit Conference,
Holiday Inn, Decatur.
May 10-11—Independent Community Banks
in Illinois 9th Annual Convention, Holiday
Inn East, Springfield.
May 23-31 —IBA Bankers School, Southern
Illinois University, Carbondale.
June 9-11 —IBA Annual Convention, Chi­
cago Marriott Hotel.
June 12-18— IBA Agricultural Lending
School, Illinois State University, Normal.
June 15-18—IBA Advanced Ag Lending
Clinic, Illinois State University, Normal.
June 19-25—IBA Commercial Lending
School, Illinois State University, Normal.
June 10-22—AMBI Executive Graduate
School of Banking, University of Illinois,
Champaign, III.

Feb. 16-18—IBA State Legislature Trip/
Leadership Conference, Des Moines
Feb. 20-21 —IBA Group II Meeting, Holiday
Inn, Burlington.
Feb. 23-25—IBA Midwinter Management
Conference, Colo.
Mar. 14-16—IBA Ag Credit Conference,
Scheman Center, Ames.
Mar. 29-30—IBA Chief Executive Officer
Conference, Des Moines.
Apr. 24-27—IBA Washington, D.C. Trip.
June 19-24—Iowa School of Banking, Uni­
versity of Iowa, Iowa City.

Mar. 1-3—MBA Marketing Workshops.
Mar. 15-17—MBA Agricultural Work shops.
Apr. 12-14—MBA Lending Workshops.
May 3-6—MBA Washington Legislative
Conference, Washington, D.C.
May 9-11 —MBA Investment Workshops.
June 20-21—MBA Annual Convention, Hy­
att Regency, Minneapolis.
June 26-July 1—Minnesota School of Bank­
ing, St. Olaf, Northfield.
July 24-29—Midwest Banking Institute,
University of Minnesota, Morris.
Aug. 18-21—Independent Bankers of Min­
nesota Annual Convention, Arrowwood
Lodge, Alexandria.

Mar. 31-Apr.1—MBA Bank Presidents Con­
ference, Colonial, Helena.
Apr. 24-26—MBA Consumer Lending Con­
ference, Big Sky.
May 12-13—MBA Trust Conference, Sher­
aton, Billings.
May 19-20—MBA Commercial Lending Con-


safekeeping advice:
Go Mid-west,young man.
That advice holds for mature
m en. A nd ladies of all ages. You
see, some bankers think there’s onlyone city for Safekeeping. T hey
need good reasons to consider Safe­
keeping w est of the H udson River.
At Continental B ank, w e’ve
got the reasons. Good ones. A nd
lots of them . Take som ething that
can affect your P&L. Like m atu r­
ing securities. O ther banks m ake a
big hoop-de-lah about nextday cash availability. We skip the
hoop-de-lah. A nd give you im m e­
diately available fu n d s... 90% of the
time. Your funds can be reinvested
before m ost banks even pay out.
How about sub-accounting?
Your bank offer that? We do.
O ur correspondents get one m ain
account. A nd 999 sub-accounts to
assign to custom ers or other bank
departm ents. A n im portant extra
that saves time and headaches
come audit time.
W ant more good reasons?
How about quality transaction
service at a penny price? Or an
im m ediate response to inquiries
th at’s hard to find elsew here?
Ma ybe it’s time to start
thinking Big O n io n ... not Big
Apple. Call Robert C. Vasko in
Chicago. A t (312) 828-4046.
Safekeeping business. A nd w e’ll
w ork to keep it.

C ontinental Illinois N ational B an k and Trust C om pany
of C hicago, 231 South LaSalle Street, C hicago, IL 60693
A tla n ta • C h ic a g o • C le v elan d • D allas • D e n v e r • D e tro it
H o u s to n • L os A n g e le s • M in n eap o lis • N e w York
S an F ra n c is c o • S e attle • W h ite P la in s.
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983


Convention Calendar...
ference, Colonial, Helena.
June 16-17—MBA Real Estate Conference,
Colonial, Helena.
June 28-July 2—MBA Annual Convention &
Membership Meeting, Sun Valley.

Feb. 27-Mar.4—NBA Basic School of Bank­
ing, Regency West, Omaha.
Mar. 13-18—NBA Intermediate School of
Banking, Regency West, Omaha.
Mar. 30-31—NBA Ag Outlook Conference,
Holiday Inn, Kearney.
Apr. 10-16—ABA Leadership Conference,
Apr. 24-29—ABA Commercial Lending,
School, Regency West, Omaha.
May 4-6—NBA Annual Convention, Holiday
Inn, Omaha.
June 11-14—NBA Washington Visit.
July 10-15—NBA Trust School, Regency
West, Omaha.
North Dakota:

Mar. 16-17—NDBA Agricultural Credit Con­
ference, Fargo.
Apr. 26-28—NDBA Washington Legislative
and Administrative Conference, Hyatt

Regency on Capitol Hill.
May 23-24—NDBA 98th Annual Convention,
Civic Auditorium, Grand Forks.
June 5-10—NDBA North Dakota School of
Banking, Grand Forks.
Sept. 14-16—Independent Community
Banks of North Dakota Annual Conven­
tion, Kirkwood Motor Inn, Bismarck.
Sept. 26—NDBA Northeast Group Meeting.
Sept. 27—NDBA Northwest Group Meeting,
Sept. 28—NDBA Southwest Group Meeting,
Sept. 29—NDBA Southeast Group Meeting,
South Dakota;

Apr. 6-7—SDBA Ag Credit Conference,
Kings Inn, Pierre.
Apr. 20-21—Joint NDBA/SDBA Trust Con­
ference, Holiday Inn City Centre, Sioux
May 16-17—SDBA Annual Convention, Con­
vention Center, Sioux Falls.

June 16-18—WBA Annual Convention,
Jackson Lake Lodge, Moran.

BAI Offers New Certificate Program
For Professional EDP Auditors


ANK Administration Institute
has announced the banking industry’s first professional certificate

program in Bank EDP Auditing.
“The role of the bank auditor is
changing rapidly as automation con-

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P.O. Box 128 Brookings, SD 57006
(605)692-6145 Toll Free 800/843-9879 (exc. AK, HI & SD)
Telex 29-5013 DAKTRONCS BKNG

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

tinues to revolutionize the banking
industry,” says Bill W. Newer, vice
president and deputy general aud­
itor, Security Pacific National Bank,
Los Angeles.
“The BAI Certificate in Bank
EDP Auditing meets the important
and growing need for professional
development programs serving this
profession,” says Mr. Newer, who is
chairman of the Institute’s audit
Besides changing bank opera­
tions, electronic data processing is
significantly affecting many key
banking professions, Mr. Newer
states. “Auditors are particularly
affected,” he says, “because aud­
itors must stay at the leading edge
of systems technology. BAI’s cer­
tificate curriculum is designed to
provide auditors with a thorough
understanding of all relevant EDP
concepts and techniques.”
The certificate itself is also a
critical measurement of professional
development, according to Mr. New­
er. “Auditors who earn it,” he says,
“have demonstrated advanced lev­
els of skill and knowledge in the
EDP field. This includes the critical
ability to evaluate and utilize EDP
concepts in protecting their institu­
tions against possible financial
Mr. Newer explained that the cer­
tificate program is an expanded se­
quence consisting of BAI’s estab­
lished, 5-day introductory and inter­
mediate courses in EDP Bank Aud­
iting, interspersed with two homestudy case problems, and culmina­
ting in a new 5-day advanced course.
Auditors who wish to receive the
certificate may enter the BAI pro­
gram at any time, and may take up
to three years to complete the se­
quence. Auditors with some EDP
experience may take a proficiency
test in lieu of the introductory
course, and auditors who have taken
the introductory or intermediate
course prior to November, 1980,
may enter the program at their cur­
rent levels. All participants must
complete the two case problems.
The introductory, intermediate
and advanced courses are each held
four times annually at various loca­
tions nationwide. The fee for each
course is $750 for BAI members,
$1,125 for non-members. For further
information, including course loca­
tions and schedules, contact Angela
J. Maniak, audit program manager,
BAI, 60 Gould Center, Rolling
Meadows, IL 60008, 312/228-6200.


these monthlyTeleconferencemeetings
to savetimeandtravel expense
deserves abonus.
Somebody in my company is really on the ball. They
figured that we could save a lot of time and travel expense
by getting everyone we need together in regularly scheduled
Bell Teleconferences. And they sure were right.
Starting with a conference call, we can meet with
anyone or any number of people anywhere, right from our
conference room.
Since we started these regular Teleconference
meetings, we’re getting more done much faster. And our
travel expenses have been cut way back.
Whoever suggested the idea probably does
deserve a bonus. I wish I’d thought of it myself.
To find out more about
Teleconferencing, call
your Northwestern i
Bell Account

Northwestern Bell
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983



Bank Promotions

ROMOTIONS and other an­
nouncements have been made
by the following banks:
Bank of America, San Francisco:
Three senior vice presidents have
been appointed, two in San Francis­
co, one in New York. Judith Ann
Prowda, 39, heads the treasury
management service in the world
banking division at headquarters.
Thomas E. Walther, 45, heads cor­
porate real estate-world banking, a
part of corporate real estate division
in San Francisco. Stuart Westwater,
31, heads the North America divi­
sion’s liability management section
in New York.
Commerce Bancshares, Inc., Kan­
sas City: Larry W. Taylor has been
named loan administration officer
and will continue his responsibilities
as loan review manager.
Continental Bank, Chicago: The
following have been elected vice
president: Mark M. Morgan and
Jean E. Perkins, financial services
department; George E. Heck Jr. and
Robert A. Manna, trust and invest­
ment services department; Thomas
B. Clark and Robert J. Ptacek, bond
and treasury services department;
V. John Chalupa, operations and
management services department,
and Neal T. Halleran, personal bank­
ing services departments.
New second vice presidents are:
Ruth A. Cekal, financial services;
Mary Gail Fitzpatrick, special in­
dustries; Patricia L. Wheeler, U.S.
banking services; Matthew R. Feld­
man, Shirley J. Miller and Glenn H.
Moody, trust and investment ser­
vices; Kendrick D. Anderson and
Michael J. Daley, bond and treasury
services; David W. McElroy and
Christian Rexer, operations and
management services, and Darrell
M. Pepple, personal banking.
In Continental Illinois Leasing
Corp., Charles D. Codrea, J. Jeffrey
Millikin and John F. Wehner have
been elected second vice presidents.
Federal Reserve Bank of Kansas
City: Marvin R. Duncan, an employ­
ee since 1975, has been elected vice
president and economist.
Douglas A. Fleming, personnel of­
ficer in Kansas City, and James H.
Jonson, examining officer in Den­

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

ver, have been elected assistant vice
Gary P. Verver, manager of data
processing in Denver, was promoted
to data systems officer.
First National Bank of Kansas Ci­
ty: Paula L. Hofius has been pro­
moted to trust officer; Kevin R. In­
gram and Michael A. Voy to assis­
tant trust officer, and Susan A.
Barket to assistant cashier.
Miss Hofius received her BA de­
gree (1976) and MBA degree (1981)
from the University of Missouri. Mr.
Ingram holds a BA degree (1976)
from William Jewell College, Liber­
ty, Mo., and his JD degree (1980)
from the University of Missouri. Mr.
Voy holds a BA degree (1967) from
Huron College, Huron, S.D., an
MBA (1978) from Rockhurst Col­
lege, Kansas City, and JD degree
(1981) from the University of
Missouri. Miss Barket has a BS/BA
degree (1973) from St. Louis Univer­
sity, and her MA degree from the
University of Missouri.
Harris Bank of Chicago: Norwood
B. Maddry has joined the bank as
vice president and head of the
marketing services division. He
served previously as vice president
in the marketing division of Wells
Fargo Bank, San Francisco. He
received an A.B. degree in 1965 from
the University of North Carolina
and a J.D. degree in 1980 from the
San Francisco Law School.
Manufacturers Hanover Trust
Co., New York: John R. Price Jr. was
elected senior vice president and
secretary of the holding corporation
and the bank, as well as secretary of
the bank’s general administrative
board and agent of the Manufactur­
ers Hanover Foundation. He suc­
ceeds Stanley van den Heuvel, who
retires at year-end. Mr. Price will
continue to supervise the corpora­
tion’s government relations depart­
Northern Trust Company, Chi­
cago: John S. Sutfin has been pro­
moted to executive vice president.
He had been senior vice president
and head of the operating depart­
ment since 1978, responsible for
computer and system design resour­
ces as well as customer service. He is

a graduate of the University of
Denver and attended Kent College
of Law. Mr. Sutfin joined Northern
Trust in 1961.
In the trust department, Michael
M. Schräge was promoted to vice
president and Mary Jane Fletcher is
joining the bank in a similar capacity.
United Missouri Bank of Kansas,
N. A.: Leone H. Park has been pro­
moted to executive vice president.
She formed a personal financial
planning division for the bank near­
ly two years ago and also heads the
estate planning division. She joined
United Missouri in 1968 as the first
woman enrolled in the bank’s execu­
tive training program. She is a grad­
uate of the University of Kansas.
Barbara Pendleton has been pro­
moted to chairman of City Bank and
Trust Company, an affiliate of
United Missouri Bancshares, Inc.
She joined City National Bank, now
United Missouri Bank, in 1942 as a
messenger. In 1947 she joined
Grand Avenue Bank, which later
became City Bank and Trust Com­
pany. She specialized in lending for
the remainder of her career.
Wells Fargo & Company, San
Francisco: Directors have elected
Carl E. Reichardt, 51, as chairman,
president and chief executive officer.
He succeeds Richard P. Cooley, 59,
who took early retirement at yearend. Mr. Reichardt has been presi­
dent and chief operating officer of
Wells Fargo & Company.
Carlos Rodriguez-Pastor has re­
signed from Wells Fargo Bank as ex­
ecutive vice president to accept ap­
pointment as minister of economy,
finance and commerce in the govern­
ment of Peru. A native of Lima, he
joined Wells Fargo in 1969.

Harris Has Income Property
Fund for Trust Clients
Harris Trust and Savings Bank,
Chicago, has established an Income
Property Fund for real estate in­
vestments of its trust department’s
institutional clients, it was announced
last month.
The new fund, directed toward
smaller tax-exempt pension and pro­
fit sharing plans, will begin phasing
in selective purchases over the next
several months.
Manager of the fund is John K.
Rutledge, vice president in the
bank’s trust investment group.


Graduate School of Banking Task Force
To Identify Senior Management Needs


TASK FORCE charged with un­
dertaking a comprehensive re­
view and evaluation of the Prochnow Graduate School of Banking
has been appointed by the School’s
president, Lee E. Gunderson.
When naming the task force, com­
posed of senior bankers, academi­
cians, present School faculty and
alumni, Mr. Gunderson pointed out
that the School is looking to the
group to provide direction to the
School in two major areas: educa­
tional program and academic struc­
Members of the task force in­
clude: Truman L. Jeffers, executive
vice president, Minnesota Bankers
Association, and chairman of the
board of trustees of the School;
William E. Blevins, senior vice
president and director of personnel,
NBD Bancorp, Inc., Detroit, Mich.;
Jerome L. Chandler, president, The
Farmers State Bank, Sterling,
Kans.; Marie Clutter, senior vice
president, BankOhio National Bank,
Columbus, Ohio.
Also, Leonard F. De Baker, presi­
dent and chief executive officer,
First National Bank, Stevens Point,
Wis.; Marvin R. Duncan, assistant
vice president and economist, Fed­
eral Reserve Bank, Kansas City,
Mo.; Clyde H. Fischer, president and
chief executive officer, First Na­
tional Bank, Aitkin, Minn.; Robert
E. Knight, president, Alliance Na­
tional Bank and Trust Company, Al­
liance, Nebr.; Robert A. Krane, vice
chairman, Northwest Bancorporation, Minneapolis.
Also, John B. McCarter, senior
vice president, Central National
Bank, Cleveland, Ohio; Patrick E.
McNarny, president and chief ex­
ecutive officer, First National Bank,
Logansport, Ind.; Donald C. Miller,
vice chairman and director, Con­
tinental Illinois National Bank and
Trust Company, Chicago; Andrew J.
Paine, Jr., president, The Indiana
National Bank, Indianapolis, Ind.;
James L. Pappas, professor of fi­
nance, University of Wisconsin,
Also, Thomas G. Patterson, vice
president, Continental Illinois Na­
tional Bank and Trust Company;
Michael Ross, senior vice president,
Bank of St. Louis, St. Louis; Thom­
Federal Reserve Bank of St. Louis

as R. Smith, president, Fidelity
Brenton Bank and Trust Company,
Marshalltown, la.; Willis J. Wheat,
executive vice president, Liberty

National Bank and Trust Company,
Oklahoma City, Okla.
William M. Berliner, professor of
management at the Graduate School
of Business, New York University,
serves as management and academic
consultant to the group. Richard I.
Doolittle, executive vice president of
the School, is staff coordinator.

IBAA Exec. Dir. Kenneth Guenther (right) and St. Paul Companies V.P. Dick Diedrich confirm
new agreement by which St. Paul will provide total insurance program to IBAA’s 7,100
member banks.

W ell give you $25 when you
stay at the Essex In a'

We’ll give you $25 worth of Deli
Dollars - good for $25 worth of
delicious dining and drinks at our
new 8th Street Deli & Lounge, every
day you stay at the Essex Inn.*
Or, in lieu of Deli Dollars, you
can have a second room FREE, or
choose one of our elegant suites.
Rates are $45 single, $50 double.
It’s our way of introducing you to

the comfort and inform ality of the
Essex Inn on Chicago’s famed
Michigan Avenue. Right on Grant
Park, in the heart o f all of
Chicago’s downtown action — close
to business, shopping,
entertainm ent, includes FREE
PARKING, courtesy car service along
Michigan Avenue.

Can you afford
to give u p $25?

312/939-2800 Ask for Deli D ollars
Or call toll-free 800/621-6909

8th & Michigan
Chicago, Illinois 60605

Program Runs: Through Apr. 9, 1983. *One coupon per day per room. Rooms subject to
availability. Offer excludes conventions and groups. Program not available these dates:
Jan.’83, 14, 15, 16, 17, 18, 28, 29, 30, 31, Feb.’83, 1, 2, 9, 10, 11, 12, 18, 19, 20, 21, 22,
Mar.’83, 27, 28, 29, 30. Benefits valid with current stay only. Management reserves the right
to cancel this program at any time w ithout notice.

Northwestern Banker, February, 1983


IBAA Offers New Insurance Program
HE Independent Bankers Asso­
ciation of America and St. Paul
Fire and Marine Insurance Com­
pany have reached agreement to
have The St. Paul provide a total in­
surance program for the IBAA’s
7100 member banks.
“We are pleased to be able to offer
the St. Paul’s ‘total insurance’ plan
to IBAA members because it pro­
vides a broader scope of coverage
than may otherwise be available to

individual banks,’’ said IBAA Presi­
dent Robert L. McCormick, Jr. in
announcing the agreement. “This in­
surance package, specially designed
for the IBAA, offers independent
banks a variety of coverages from
the Blanket Bond to workers’ com­
pensation to data processing protec­
tion,” noted Mr. McCormick, who is
also president of Oklahoma’s Still­
water National Bank. “We believe
this insurance program will save

BY 40%

BANK SOLUTIONS FROM $10,000 to $100,000
w ith extensive softw are and local support.
Solutions w ithin DDA, Savings, CD’s, Loans, G/L,
Word Processing, and the Bankers’ Planner...
“ ForeCash.”


11236 D a ve n p o rt • O m aha, NE 68158 • 402/330-5040

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

IBAA member banks money,” add-^
ed the IBAA president.
The total insurance program for
the IBAA features The St. Paul’s
Bankers Blanket Bond. The bond in­
cludes an optional endorsement form
computer theft—one of the broadest
available from a U.S. insurer. The
St. Paul is presently a leading under­
writer of Bankers Blanket Bonds,
providing coverage for one out of six #
United States banks. It also fea­
tures the company’s Data Process­
ing Policy which was recently ex­
panded to provide protection in
other data processing policies.
Other coverages available in the
IBAA total insurance program in­
clude directors and officers liability,
the traditional property, liability
and umbrella coverages of The S t.#
Paul’s Multicover Policy, and work­
ers’ compensation. It also includes
protection for risks incurred
through the use of registered, first
class, and transfer agents mail.

Two Men Are Promoted in
ABA Government Relations #
The appointments of Jim Cash as
senior government relations coun­
selor and Denis O’Toole as senior
federal legislative counsel and director of legislative operations were®
announced recently by Gerald M.
Lowrie, executive director of govern­
ment relations of the American
Bankers Association.
Mr. Cash, previously legislative®
director, will aid in the overall ad­
ministrative functions of the govern­
ment relations group. He joined
ABA in 1970, after having served as _
principal legislative assistant to ^
Senator J.W. Fulbright. He had pre­
viously held posts with the Agency
for International Development, the
Federal Housing A dm inistration,^
the Senate Banking and Currency^
Committee and the Civil Service
Mr. O’Toole, previously federal
legislative counsel, will have re-^
sponsibility for coordination and
management of Congressional liai­
son and development of specific lob­
bying plans on each issue. Mr.
O’Toole previously served as staff^
vice president and legislative coun­
sel to the National Association of
Home Builders, as well as in the
general counsel’s office of the De­
partment of Housing and U rban#


Let's face it. The giant downtown bank you correspond with is a different place
than it was ten or twenty years ago. You were important then, but they have
other interests now. As a correspondent, you rarely get to deal with the top
echelon—the people who could provide fast action and quick approvals for loan
participations and the other services you need.
It's time you started working with a bank you can bank on. At Drovers Bank
of Chicago, you have direct daily access to top level banking professionals and a
staff whose careers are centered on correspondent banking. We’re one of the ten
largest correspondents in Illinois. You and your bank’s financial needs are very impor­
tant to us. It explains why we’re so responsive and why our correspondent
relationships have almost quadrupled in three years.
Call John Crotty toll-free at 800-621-8991 (in Illinois, 800-572-2498). He’ll
fill you in on all the ways we can help —a full range of services that includes
overline participations, purchase and sale of Federal Funds, bond portfolio analysis,
and any other service you want or need.

The Responsive Correspondent

K? Drovers Bank

of Chicago
47 th & Ashland Avenue, Chicago, Illinois 60609, 312-927-7000

M em ber, C ole-T aylor Financial G ro u p — Independent Banks W orking Together
Member Federal Reserve System and F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983

We can help you increase originations and compete
successfully for secondary market funds.
Lenders and homebuilders alike see a brighter
year in 1983. But even with an improving economy,
mortgage affordability and mortgage funds
availability will continue to be the primary chal­
lenges facing lending institutions. Your success
depends on innovative mortgage instruments
that attract borrowers and appeal to secondary
market investors.
Here are just a few of the ways MGIC can help.

Action-Plus: Computerized mortgage
design service.
All you need is a computer terminal. MGIC will
provide you with access to a databank of
information on the Action-Plus family of
mortgages, including all ARM, EOM and buydown
variations. With this diversified “ m enu" at your
fingertips, you can quickly customize mortgages
that are affordable for borrowers and attractive to
secondary market investors.

Secondary market services.
MGIC is bringing lenders new national sources of
capital in addition to the traditional secondary
market sources. We continue to help lenders sell
their loans easily and profitably to FNMA, FHLMC
and other national investors. In addition, we have
expanded our secondary market efforts to attract
funds from nontraditional investors, such as
pension funds, life insurance companies and trust
funds. MGIC Mortgage Marketing Corporation, or
Maggie Mae, has assisted in over $1 billion in
private placements.
Federal Reserve Bank of St. Louis

Truth-in-Lending services.
When you utilize Action-Plus programs, you can
also take advantage of M G lC s computerized
TIL services. In a few minutes, you can obtain
complete, customized TIL disclosure information,
including the Federal box, for virtually any type
of loan.

ays to help you profit
The Adjustor: Protection for ARM s.

O ur services are yours for the asking.

Consumer surveys show that the acceptance of
Adjustable Rate Mortgages has increased
considerably. M G lC s Adjustor Coverage enables
you to offer these flexible loans without worrying
about the risks of varying monthly payments
and the potential for negative amortization. Your
coverage adjusts dollar-for-dollar with the loan
balance and your exposure is never more than 75%
of the original property value.

For complete information, contact your
MGIC Account Executive or call 800-558-9900
(800-242-9275 in Wisconsin).


Working hard to earn your business

Condominium and manufactured
housing programs.
MGIC has insurance coverages and sales assistance
programs tailored to the unique requirements of
these increasingly popular types of housing. Our
experienced Project Specialists are up-to-date on
the latest financing techniques and secondary
market requirements.
Federal Reserve Bank of St. Louis



...truly innovative microcomputer software.

Microcomputer software from BankDisk combines
innovation with accuracy based on a solid
foundation of experience. It quickly transforms a
microcomputer into a desk-top workshop for any
bank executive.
Versatility is apparent throughout the entire series
of specialized BankDisk programs. From a
personalized IRA proposal to an analysis of loan
portfolios...from exciting graphic illustrations to
distinctively-printed proposals and reports...
BankDisk becomes the hub of productivity
and daily decision making.
BankDisk programs are easy to operate.
Self-running demonstrations take you on a guided
tour of every BankDisk function. You control the
programs through clear instructions on the
screen. And, each program includes a thorough
documentation manual that answers any potential
question in a language that bankers understand.
BankDisk is fast becoming the standard for comparison in the financial software industry.
As you consider microcomputer software, either in your own bank or as a supplier to banks, join with

A product of FSI
Post Office Box 2012
Kearney, Nebraska 68847
Phone: 308-237-5998
Federal Reserve Bank of St. Louis

The mighty
micro E

* ...a developing tool for community bankers
ing further their management muscle to fight off in­
ANKER interest in micro-computers has accelerroads of competition from various sources. Because so
ated at a geometric pace in just 24 months. De­
many bankers in this area jumped in early and have
signers of these desk-top computers have given every





business, regardless of size, a new tool that facilitates
many management and operational functions. This
technology explosion has been noticeable especially in
banking, where human decisions and statistical infor­
mation are so distinctly intertwined.
Recognizing this, the American Bankers Associa­
tion, at its 108th annual convention in Atlanta last Oc­
tober, scheduled a special Community Bankers program on “The New Wave of Micro-Computer Technol­
ogy.” We reported on that meeting by writing it “had
fantastic acceptance by the registrants. The main con­
vention hall of 5,500 seating appeared to be at least
70% occupied, possibly more.” Following that, three
separate panel-discussion sessions were held twice in
separate rooms to overflow crowds.
Experienced vendors of hardware and software alike
have told us that one of the real “hotbeds” of interest
in micro-computers is the upper midwest where so
many independent bankers are aggressively develop­
Federal Reserve Bank of St. Louis

developed a high degree of skill with micros, we have
put together on the following pages three special ar­
ticles we hope will encourage the interest of other
readers to study further the possible application of
micro-computers to their business.
The first article, by a recognized expert technician in
the software field, introduces the subject of micro­
computer usage in banks and the need for top manage­
ment to be aware of its advantages. The other two ar­
ticles are N orthwestern B anker staff interviews
with officers at two banks relating how one specializes
in using its micro basically for management assistance
while the other has specialized in utilizing its micro­
computer for the development and operation of com­
munity bank products that improve the bottom line.
Comments and experiences of other banker readers
will be welcome, since we are already gathering
selected material for a later issue on this same topic.
—The Editor
Northwestern Banker, February, 1983


Micros in banks
Past • Present • Future
Written especially for The N orthwestern B anker
Financial Systems, Inc., Kearney, Nebr.

EING a vendor in such a fast moving industry as
micro computers is very interesting to say the
least. Delivering high technology to the financial mar­
ket, with its volatility and change, is similar to Rus­
sian Roulette. Long range planning often means six to
eighteen months because of ever changing technology.
Where does this all lead for banks?
Many articles have been written during the past few
months about the use of micro computers in banks.
The articles range from operations and control to mar­
keting, and from software selection to hardware com­
patibility. Several conclusions can be drawn from these
articles and the market in general:
• Micro computers are here to stay and have earned
their place as legitimate tools.
• The micros are the beginning of the electronic of­
fice and office automation.
• Studies have been performed that prove micro com­
puters can and will increase employee productivity.
• Software selection often dictates hardware selection.
•Non-technical users have become ‘‘datagrammes
and use the micros successfully.
•Don’t wait...more is lost by indicision than wrong
•And micros will offer one of the tools for banks to
cope with deregulation and a changing environment.
The continuance of articles and discussion on micro
computers is extremely important to all bankers. Suc­
cess, failures, new ideas, new software and different
perspectives on the market are all subjects that will
contribute to the overall computer literacy and general
understanding of the market.
What’s Really Happening?
We are all so involved in the day to day activities
that we very seldom back away from our situations to
analyze what is really happening. It is especially im­
portant that anyone resisting the use of micro com­
puters understand what is happening to all of us. We
are all involved in a technological revolution and an in­
formation explosion.
John Naisbitt, in his book Megatrends describes the
“transition from an industrial society to an infor­
mation society. ” He says, “One way to think of bank­
ing is as information in motion. Money is information
in motion. The shift from money to electronics is as im­
portant as the earlier shift from barter to money.”
 Banker, February, 1983
Federal Reserve Bank of St. Louis

If banks do not adjust to the changes and utilize new
technology, they simply will not exist. Micro compu-^
ters are one step in the right direction, but it is impor­
tant to understand the transition we are experiencing
in order to best understand the direction to move with
micro computers.
Where are we in the progression of the use of micro^
computers in banks? The use of micro computers in
banks started gaining acceptance in 1980. By the end
of 1981, it has been projected that there were 1000
micros in banks, and by the end of 1982 there were in
excess of 10,000 micros in banks. There were several’
contributing factors for the explosion...the ABA devel­
oped a micro computer model for bank performance...
several software companies recognized the potential
and entered the market...micro computers were the
theme of the National ABA Convention...and the BAI’
sponsored MICROSCAPE, a national convention dedi­
cated to micro computers.
The market is still fragmented, with very little coor­
dination of effort. There were many first time users
who caught the fever, purchased a system and experi­
enced some success. Yet others felt frustrations and
Computer Literacy
The banking industry probably has fewer cyber­
phobics (people afraid of computers) than most indus­
tries; however, there are a few and education is the on­
ly cure. We are in a period of learning...gaining com­
puter literacy.
I cannot overemphasize the importance of computer
literacy. Education is the bottleneck holding back new
technology. If employees can not use the technology,
what good is it? Computer literacy can only be gained
through the use of micro computers in a learning en­
The industry recognized the need for ways to short­
en the learning curve and it is responding. An example
is a company called Cdex Corporation that develops
computer aided instruction (CAI) software to assist in
the teaching of how to use other software. The first
package it announced was “Cdex Training for VISIMICROS IN BANKS...
(Turn to page 25, please)

$90 million bank improves
A/L management with a micro
A N orthwest ern B a n k er interview w ith
Vice President
First Westside Bank, Omaha, Nebr.
SING the micro-computer as a management tool
didn’t come easy for officers of First Westside
Bank in Omaha. One officer said in this interview last
®month, “We got it originally as an eduational tool for
the staff as much as anything. We used it very lightly
the first six months—in fact, it was kind of scary—for
we hadn’t realized the vast array of applications it of­
® That period of uncertainty passed and today that
same officer reports, “We practically have to schedule
time on our micro-computer because we use it for so
many things and we now have a number of people trained
_ to use it.”
w David Klipsch, president of First Westside Bank,
stressed the positive advantages the staff is now get­
ting from this high usage of the micro. He said, “We
use our micro-computer for a variety of internal func^tio n s, but there are several key areas where it aids us
w considerably as a management tool—in asset/liability
management, marketing and purchasing.
“Ken Champagne, our auditor, is doing some inter­
esting work with the micro-computer in the area of as^ set/liability analysis, and he can tell you more about
that. Also, Rich Norby, our vice president for market­
ing, is using it to handle our officer call reports and all
of his marketing details, which he can discuss with
you. And then, Jim Kalina, our operations officer who
0 supervises,all our purchasing, maintains all the bank’s
inventory on the micro-computer.”
Mr. Klipsch added, “ I ’m very pleased with the re­
sults we’re getting from this equipment.”
Asset/Liability Model
One of those results is an asset/liability computer
model that Auditor Ken Champagne has developed in
cooperation with First Westside’s accounting firm,
Touche Ross. After joining the bank in January, 1981,
he became involved in A/L work about 18 months ago,
doing sensitivity gap analysis manually.
“I soon realized I had to go forward and crank in
‘what if’ solutions,” Mr. Champagne relates. “We
realized we’d have to computerize this function so we
looked at software then on the market and were not
satisfied. Touche Ross, our auditing firm, had some
Federal Reserve Bank of St. Louis

staff people with software programming ability and
experience, one of their CPAs did his M aster’s thesis
on GAP financial modeling. They developed a linear
regression model to forecast interest rates.
“We developed the model to give us the GAP posi­
tion for the first year by months, then by year for the
next four years. This tells us where we are. The next
step is to forecast our future growth. We’re now a $90
million bank, but say, for example, we plan to be a
$110 million bank. As in any bank, we have certain
liabilities and certain assets running off. What we then
need to do is add to our assets and liabilities to equal
the runoff plus the growth needed.”
Mr. Champagne stressed, “The important thing at
this point is ‘W hat’s going to happen to interest
rates?’ So, based on historical information we’ve
cranked in we can play ‘what if’ scenarios with future
interest rates. We’re really talking about volume and
spread for the future; that is, with so much in assets
and liabilities of so much, we project what given in­
terest rate levels will do to our spread.
Only a Management Tool
“We must remember that this is just a tool. Man­
agement decisions can always over-ride computer pro­
jections. The model creates certain answers as a best
guess based on variables we crank in, but if manage-

Pictured with their Apple III micro-computer are Richard L. Norby
(left), v.p.-mktg., and Ken Champagne, auditor, at First Westside
Bank in Omaha.
Northwestern Banker, February, 1983


“I can’t emphasize enough that this micro-computer
is just a tool to help management make d ecision s.”
ment experience shows otherwise, then management
can adjust to what it believes is more realistic.
“The most important thing the model does is max­
imize earnings by periods. Based on the three factors
of management, economic environment and regulatory
constraints, the model will tell you to put so much in
CDs, so much in commercial loans. For example, if we
can only put a certain amount in CDs, then the model
knows this and uses alternative calculations to max­
imize earnings.”
Mr. Champagne is quick to point out that an impor­
tant step is to get the necessary information from the
main computer to start with — “For example,” he
said, “maturities by month or year and weighted
average interest rates. It is essential to have good
records and the ability to extract that information.”
Varied Background
An interesting facet of Mr. Champagne’s dedication
to developing this A/L model with Touche Ross is the
interesting background he brought to the job when he
joined First Westside. After receiving his BS degree in
Geological Engineering (that’s right, Geological Engi­
neering) from the University of Southwestern Louis­
iana in 1959, he joined the Air Force as an ROTC
graduate and spent the next 20 years in military ser­
vice as an accredited meteorologist. During that time
he received an MBA from Hardin-Simmons University
at Abilene, Tex., in Economics and Finance in 1971.
His hobbies have been following the stock market and
the economy.
His background as a meteorologist involved many
years working with computers. At Offutt Air Force
Base at Bellevue outside Omaha, commonly known
worldwide as SAC headquarters, Mr. Champagne was
working daily with the large Uni vac 1108 scientific
computer which aided in weather forecasting world­
From that background he went directly to First
Westside as assistant to the president, the late Dick
Flory, in January, 1981. His solid mathematical back­
ground and penchant for “working with numbers,” as
he puts it, led him in a short time to A/L analysis, then
into the micro-computer venture. He became auditor in
January, 1982. He beefed up his banking skills with
two Bank Administration Institute Schools—one on
Auditing, the other on Internal Audit Controls.
More Plans for A/L Models
With that 20-year background of working with com­
puters, Mr. Champagne has a feel for what to expect—
and what not to expect—from any computer. “ I can’t
emphasize enough that this micro-computer is just a
tool to help management make decisions. A person
could do this work by hand, but when it was all finished
and someone said, ‘what if?’ you’d have to go through
the same exercise all over again. The computer just in­
creases the analyst’s’ efficiency.”
However, the asset/liability model developed by
First Westside in cooperation with Touche Ross has
enough significance that the bank has further plans for
it. “What we’re planning to do, and hope to have it

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis


perfected shortly,” Mr. Champagne states, “is to take
this model out into the market and sell it to other®
banks, basically within $50 to $75 million of our size
either way. Essentially, with this software program,
all you need to do is to turn it on. It is so simple that
even a clerk can follow the explicit directions and use
it. Presently, it is designed for the Apple III, but we®
hope to have it adapted for other micros in the near
future. ’’
Used in Marketing Area
The other principal area where First Westside’s®
micro is being used constantly is in the marketing de­
partment. Vice President Rich Norby, who joined the
bank two years ago after several years in marketing at
National Bank of Commerce in Lincoln, is the officer
who said the staff found it “kind of scary” at first.®
Recalling those first few months when he and two
others went through training to use the Apple III, he
says, “I felt guilty wasting my time learning to use
this tool because I didn’t fully appreciate the produc­
tivity of it. But, as I became familiar with it, I could®
show others things they could do with it.
“For example, in personnel all our records there are
on this computer. Jim Kalina, our operations officer,
has put all the inventory on it and soon we’ll have a
furniture and fixtures program on it. A program came®
with the Visicalc diskette that has a depreciation
schedule built into it.”
Mr. Norby uses the Apple III extensively in his own
marketing work. “ I use it in the budgeting process, of
course. I ’m responsible for developing what the in-®
terest rate expense for the bank will be. Once this was
entered in the micro, all we had to do was change the
interest rate at the appropriate time and everything
was automatically recalculated.”
Officer Call Program
It’s easy to imagine the myriad of details involved in a
full-fledged officer call program. Mr. Norby programmed
details of First Westside’s call program into the Apple
III and now has weekly and monthly reports th a t’
serve as printed reminders to each officer of all report­
ed details of each call. One benefit, he notes, is that
“our follow-up procedures are on a more businesslike
basis. Each month every officer involved in calls gets a
page with printed reminders of future appointments 1
made for the coming month. They probably have these
already on their desk calendars, but this report serves
the useful function of reminding them.”
Looking back at his initial feelings about the micro, ^
Mr. Norby says, “Originally, it was just a ‘foreign’
thing sitting out there. Now, we practically have to
schedule time on it. So many of our younger people es­
pecially know how to operate it. You don't have to be a
programmer. You can find about anything you want on^
the market, or you can modify a program for yourself.”
The experience of First Westside is echoed by doz­
ens of other community banks throughout the upper
midwest who have found and are finding now that
micro-computers are an excellent adjunct to aiding^
management decisions.


The might
3 micro


& service
Community banker scores
with new consumer products

A N orthwest ern B anker interview with
KEVIN OLSON, Vice President
Bank of Norfolk, Norfolk, Nebr.

S YOU enter the office of Independent Community
Bank Network (ICBN), boldly displayed is the
0 following phrase as a reminder to Vice President Kevin









“The banks that survive and prosper are those
with managers who are best equipped to anticipate
change. They create environments in which new
ideas and new patterns can flourish. When change
comes, they don’t resist - they respond.”
Not surprisingly, his associate Ray Tiedje, president
of the Bank of Norfolk, is constantly reminded of the
same phrase as it is one of the many mottoes used in
guiding the bank through its recent challenges and op­
portunities. Why has a small rural Nebraska bank had
to reshape its thinking as a community bank? Mr.
Tiedje answers with two words - deregulation and survival.
It was just a year and a half ago that the advantages
and opportunities of deregulation became apparent to
Mr. Tiedje and thus provided a launching pad for the
corporate goals and objectives of the Bank of Norfolk.
Those goals were to include in large part micro-com­
puters and sales. It was those goals, combined with an
innovative computer program designed for an inexpen­
sive micro-computer, which opened the bank’s eyes to
an even greater realm of opportunities in the deregulated environment in which all bankers find them­
Money Market Checking
After discovering the ease with which micro-com­
puters could be operated, the bank officers set out to
develop a cash management program called Money
Market Checking. They became acquainted with a
Catholic priest from Elgin, Nebr., who consented to
write the program. (The priest had been writing programs for Apple Computers designed for secondary
Although the bank software program met with skep­
ticism in its early stages, it has proven to be a tremen­
dous and profitable answer to the deposit changes presently facing the banking industry. The concept of increasing a bank’s cost of funds by competing with
Federal Reserve Bank of St. Louis

money market mutual funds, although unpopular at
the time, proved inevitable.
“By adopting this attitude and doing something
about it,” Mr. Tiedje said, “we have been successfully
segmenting our market ever since. The saying that
20 % of your customers hold 80% of your deposits is
really true. Mr. Tiedje does admit that raising the cost
of funds will have tremendous impact on margins;
however, he contends that the loss of income due to the
decreasing margins can be made up in part by increas­
ing fee income. He said, “for too long banks have been
marketing to the 80% less profitable customer base
and not enough to the 20 % more profitable customer
base. I t ’s time to segment that 20% and charge the
other 80% for services rendered.”
More Consumer Products Developed
With the cash management program came a new out­
look on micro-computers for the Bank of Norfolk. It
provided the impetus to embark it on a consumeroriented approach to micro-computers. Like other
banks, they pursued computer programs that would
perform internal and operational functions, but going
one step further the Bank of Norfolk began using and
developing micro-computer programs which helped
them market to their segmented customer base.
In addition to the cash management program, Mr.
Tiedje and Mr. Olson developed an IRA program that
generates a personalized disclosure statement for in­
terested customers.
The bank is also using two Dow Jones software
packages called the Dow Jones Portfolio Evaluator
and the Dow Jones News and Quotes Retrieval. Using
the brokerage service offered to banks through In­
dependent Community Bank Network and the two
Dow Jones programs, the bank has developed a pro­
fitable stock package whereby the bank may buy or
sell stocks for its customers and receive attractive fee
income. Periodically, the bank will mail to the cus­
tomer information on a particular stock generated by
using the Dow Jones software package and a telephone
modem. Additionally, the bank has the ability to track
a portfolio of stocks for its customers using the port­
folio evaluator.
In light of the increased competition from non-banks
and near banks, Bank of Norfolk made a decision to
package its consumer-oriented computer programs in­
to an innovative marketing theme called the Investor
Center. The Investor Center is located in the lobby of
Northwestern Banker, February, 1983

of its member banks in Massachusetts which recently ^
acquired deposits upwards of eight million dollars us­
ing the micro-computer software program to admin­
ister the December 14 H IFI account. The Merchants
National Bank in Leominster, Mass., a $60 million
bank, has tracked through its marketing program that q
60% of the funds have been new money. “The flexibili­
ty exists for many of the 26 banks to adapt to the
changing environment quicker than their competition,
due in large part to the micro-computers,” says Mr.
Providing flexibility for the members of ICBN plays
a major role in determining the endeavors which ICBN
undertakes. “There is no doubt,” says Mr. Olson,
“that the micro-computer provides the driving force
behind the development of the future packages ICBN
has in mind of developing. ICBN is currently develop­
ing a stock package which will provide community
banks the ability to buy and sell stocks for their
customers while at the same time allowing the bank
the flexibility to price the service at a profitable <|)
margin within its community.”
the bank and gives the customer access to precious
metals trading, stock trading, a cash management ac­
count, C.D.s, real estate analysis, IRAs, and many
other products all designed around the micro-computer
for the high net worth customer. “The Investor Center
concept stems back to taking care of your profitable
20 % customer base by offering them the products they
are most interested in,” says Mr. Tiedje.
Development of ICBN
The bank, through all its efforts in the consumer
side of micro-computers, has had the good fortune to
be mentioned in the Wall Street Journal and recently
won a Gold Coin Award from the Bank Marketing As­
sociation for its innovativeness in developing its
Money Market Checking account and adapting it to a
micro-computer. Those accomplishments, however,
have not lured Mr. Tiedje and others in the bank into
resting on their laurels. On the contrary, they have re­
cognized the need for community banks across Amer­
ica to compete with the increasing non-bank competi­
tion using just such programs which the bank has de­
veloped. In view of that, Mr. Tiedje and others have
formed Independent Community Bank Network, a cor­
poration designed with the purpose of delivering pro­
ducts which are cost effective and fee income-oriented
to community banks.
Independent Community Bank Network, Inc., (ICBN)
was formed in May of 1982 and began marketing its
concept to community banks. It developed a package
which included the Money Market Checking program
and the ability for banks to buy and sell stocks to their
customers. Since May, ICBN has acquired 26 member
banks in 12 states using the Money Market Checking
software program. In the midwest it has the Amer­
icana Bank, Alden, Minn.; the Rock Rapids State
Bank, Rock Rapids, la.; the Klossner State Bank,
Klossner, Minn.; the Farmers State Bank, Russell,
Minn.; the Larkin Bank, Elgin, 111.; Keith County
Bank, Ogallala, Nebr., and Gateway Bank and City
Bank, both of Lincoln, Nebr.
One of ICBN’s favorite success stories is about one
Digitized Northwestern
for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis

Securities Firm Organized
ICBN will introduce next month (in March) a stock #
package that will provide community banks with an al­
ternative to the other stock services currently on the
market. It will be designed using the concept of a bank
cooperative brokerage service program which will al­
low ICBN member banks the luxury of choosing their €1
own mixture of fee income and discounted commis­
sions they require in order to remain competitive in
their market areas. Furthermore, they are not required
to house a registered broker. The trades will be con­
summated through ICBN’s subsidiary, Wall Street of •
America, Inc., a newly formed securities firm.
Additionally, ICBN will have available a software
program designed to administrer the stock program if
the bank so chooses. The stock program will be devel­
oped in such as way as to remove all contact from ®
brokerage firm to customer and place it where the con­
tact belongs — in the banks. “For too long,” says Mr.
Tiedje, “banks have been accustomed to watching and
sometimes even sending their customers to the broker
down the street. Inevitably, you lose the contact with ®
that customer and eventually the broker will provide
him with all the services you can. The stock package
being introduced by ICBN in March will put a halt to
that trend,” Mr. Tiedje stated confidently.
Responding to the changes rather than resisting •
those changes appears to be providing the challenges
and opportunities to innovative banks like Bank of
Norfolk. Deregulation is inevitable, stresses Mr. Tied­
je, but early acceptance of deregulation provides the
impetus for innovativeness as a key ingredient for sur- •
vival of the community bank in this country. Despite
the uncertainties of a deregulated environment, the
long-range growth and profit opportunities for the best
managed banks have never been greater, he points out ^
enthusiastically. The Bank of Norfolk’s Investor Cen- 9
ter concept is just one example.
An integral part of this bottom line-oriented product
development at the Bank of Norfolk has been the in­
telligent usage of the newest tool available to com- ^
munity bankers - the micro-computer.


Micros in banks...

You’ve come a long way baby!

(Continued from page 20)

CALC.” It has reduced the time required to learn
VISICALC from over 20 hours to as few as 2 hours.
Other companies have entered the market with soft­
ware to teach specific bank application.
I would like to offer two suggestions to help with
computer literacy: 1) Direction must begin at the top.
If the CEO understands the uses (and limitations) of
the micro computer, it will be much easier to develop a
micro computer strategy and implement a plan.
.CEO .
O P E R A T IO N S '^



2) Appoint a micro computer coordinator. He or she
does not have to be a technical person and certainly
does not have to be able to program. You need a person
who understands the micro computer and also under­
stands various bank applications. The coordinator’s
primary role will be solving bank problems with micros
and the secondary role will be developing an educa­
tional program within the bank. All of the information
should funnel through the coordinator.
What to Expect in the Future
The channels of distribution are now starting to
form for what we refer to as vertical markets. Vertical
markets are industries or groups of users with specific
common need; thus, the financial industry is a vertical
market. The normal retail computer store does not un­
derstand banking needs or applications.
Several organizations have started to emerge as spe­
cialists in the bank processors, holding
companies, consulting firms, OEM’s, system houses
and even direct mail order companies. These organ­
izations will be much easier to deal with since they
understand and can speak your language and ulti­
mately solve your problems. Good software and other
training and support functions will be available
through these companies. Less time will be spent
searching for solutions.
Many banks already have started buying multiple
systems. There has been great concern that all of the
systems are of the same manufacture and compatible.
I would suggest that there is some merit to standar­
dization; however, there is a concept that has been
developing that will offer an alternative to brand or
product standardization. The concept is called local
area networking, only it applies to individual micro
computers within one bank. The network allows for
several micros to use a common data base on hard disk
storage. The network will allow APPLES to com­
municate with other APPLES and/or IBM PC’s.



The network will allow electronic mail, electronic fil­
ing and other office automation functions...all with dif­
ferent types of micro computers. This is an example of
technology waiting for the user. Computer literacy is
the key to the use of micro computers.
Communications is the other growth area of the
Federal Reserve Bank of St. Louis

Every university of any size has incorporated formal
classes or seminars in its curriculum on the use of com­
puters. The Universities of Minnesota, Nebraska and Iowa
State, among others, have extensive ag records on com­
puter that are accessible by outside computers. The Min­
nesota Bankers Association has a 21-bank pilot project
now accessing the UofM ag computers for help in making
ag lending decisions. The University of Iowa reports more
than 1,000 terminals and small computers in use on cam­
pus and projects there could be 10 times that many by 1990.
In a recent issue that devoted several articles to on-campus
computer usage, The Uofl Spectator ran the above photo
from the 1950s showing the late E.F. Lindquist, a pioneer in
national student testing, watching an early computer work.
The accompanying story reported, “ The things this roomful
of equipment could do, a computer one-foot square could
do today cheaper and quicker!”

future. The BAI recently developed a data base called
INNERLINE that is only the start of the communica­
tions networks beginning to form. Several bank pro­
cessors are gearing up for communications to micro
These are exciting times that we live in and new
technology will accelerate change in all of our lives.
The key is must learn to learn using the
new technology. Ride the wave rather than try to swim
against it.

Schools of Banking Names President
Schools of Banking Inc. has announced the election
of David T. Fairchild as 1983 board president. Mr.
Fairchild is cashier at the Colonial
Bank, St. Louis.
The schools are sponsored by the
Nebraska, Kansas, and Missouri
Banking Associations and are joined
by the Iowa Trust Department in
sponsoring the trust school. The
first sessions of the basic school
and intermediate school will be
held Feb. 27-March 4 and March
13-18, respectively, at the Regency
West, Omaha. The second sessions
of the basic and intermediate schools will be held Sept.
11-16 and Sept. 25-30, respectively, at the Rodeway
Inn, Overland Park, Kans. The commercial lending
school (April 24-29), trust school (July 10-15) and ad­
vanced school (Oct. 16-20) are scheduled for the Regen­
cy West, Omaha.
Northwestern Banker, February, 1983


Increasing productivity
by cross selling
A N orthwestern B anker
interview with
Vice President
Central States Health & Life Co.
Omaha, Nebr.

MPROVED productivity is a goal
in every bank, just as it is in other
of business and industry.

is offering banks a sales training
course identified as “Take Five and
Prosper” that has been developed
A time-tested way of achieving this after four years of intensive research
goal is through encouraging greater and preparation.
usage of bank services by more bank
Meaning of “Take Five”
customers; in other words, through
Five” has the psycholog­
following an established tenet of sel­
of taking five
ling—your greatest prospects come
often to think
from among your own customers.
As deregulation continues to about what is being done and re­
thrust commercial banks into a direct one’s mental efforts to con­
more and more competitive posture centrating objectively on the job at
with other financial, as well as non- hand. Central States’ Richard J.
financial, institutions, it becomes in­ Moore, vice president of the credit
creasingly more important for banks insurance division, also offers to
of every size to make sure their bankers a professional insurance
staffs know how to sell traditional salesman’s definition of “Take
Five” : Introduction, Condition,
and new services alike.
Presentation and
To help meet this urgent need, an
Omaha-based life insurance com­
pany is showing banks how they can
By following this proven sales
transfer proven insurance selling track, a bank staffer in a customer
techniques so that bank personnel contact setting would introduce the
can become more skilled in cross- subject of credit insurance on a loan
seling of bank services. Central and/or other services of the bank;
States Health & Life Co. of Omaha would condition the customer’s re­

A group of Omaha bankers take part in one of “ Take Five” seminars offered by Central
States Health and Life Ins. Co. in the insurance firm ’s extensive home-office training facili­
ty in Omaha.

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

ceptiveness with an approach appro­
priate to the customer and the ser­
vice; would quickly determine the
customer’s need or interest in the
service (that is, “ qualify” the
customer); would move smoothly in­
to presenting salient details of the
service showing benefits to the
customer; then, with customer in­
terest aroused and agreement to the
service value, move directly into the
close of the sale.
The formula sounds simple enough
and logical, but it is one that
thousands of professional sales per­
sonnel have found basic to their suc­
cess. Dick Moore set out several
years ago to show banks how they
could apply that success formula to
selling more credit life and disability
insurance on bank loans. As he fur­
ther studied the needs of his cus­
tomer banks, he realized the need for
each customer contact person in a
bank to help sell the other bank ser­
vices outside that staff member’s
immediate area of responsibility.
This led him to concentrated re­
search into developing a system his
company could offer banks to instill
this sales consciousness into their
Program Development
After three years of intensive
study, visiting with professional
sales trainers and bank executives,
then writing and re-writing a pro­
posed sales training manual, he
came up with the finished “Take
Five” product. He had the complete
backing of the chief executive officer
of the Central States Health & Life,
President William Kizer. The pro­
gram was formally offered to banks
October 1, 1981.
Basic to this program is a threering binder titled “Sales Com­
munication Systems” that has an
inside-front-cover compartment for
up to six cassette tapes, and printed
pages divided into four sections—
Senior Management, Cross Selling,
Communication Skills and Time
Management. Each section delves
into the topic matter in detail that
can be followed as a study or train­
ing manual within the bank.
To make the “Take Five” pro­
gram more effective for Central
States bank customers, Dick Moore
devised a three-day seminar that
covers on successive days the sales
(Turn to page 78, please)









1st Vice Pres.

2nd Vice Pres.


Exec. Dir.

IBAA Will Meet in San Diego

Town and Country Hotel
March 2 3 -2 7

ORE THAN 2,000 bankers and spouses are ex­
pected to attend the 53rd annual convention of
the Independent Bankers Association of America in
San Diego, March 23-27, according to IBAA President
Robert L. McCormick, Jr., president of the Stillwater
Bank and Trust Company, Stillwater, Okla.
The Town and Country Hotel will be headquarters
for the meeting and will include the exhibit area. More
than 150 exhibit spaces have been sold, making 1983’s
show the largest IBAA display of equipment.
Featured speakers will include Preston Martin, vice
® chairman of the Federal Reserve System Board of Gov­
ernors; R.T. McNamar, deputy secretary of the Trea­
sury; William Isaac, chairman of the FDIC; Senator
David L. Boren of Oklahoma, and Frank Cappiello,
economist and frequent guest on Wall Street Week
® television program.
Following the successful format of previous conven­
tions, the program will feature committee meetings
and other internal IBAA functions during the day on
Thursday, along with special interest sessions for the

Federal Reserve Bank of St. Louis


membership. A morning general session will be held on
both Friday and Saturday, with special sessions again
interspersed through the two days. Special sessions
will focus on the formation of a one-bank holding com­
pany, improving asset/liability management perfor­
mance, and banking applications for the micro­
Gala dinners will be held on Thursday and Saturday
nights, with special entertainment following. That
entertainment includes Harry James and his band, and
two musical groups—Up With People and the Young
Slated to succeed Mr. McCormick as IBAA presi­
dent for 1983-84 is James D. Herrington, currently
first vice president, who is chairman and president of
the Coldwater National Bank, Coldwater, Kan. Slated
to move up from his second vice president position to
succeed Mr. Herrington is Paul H. Bringgold, presi­
dent of the First National Bank, Cannon Falls, Minn.
Treasurer is James R. Taylor, president and treasurer
of the McKeesport National Bank, McKeesport, Pa. □



Northwestern Banker, February, 1983


BMA Announces Several Staff Changes
ENNIS J. Hillen, a financial
training specialist and current­
ly senior consultant for Double
Eagle Enterprises Inc., a diversified
Roanoke, Va., firm, has been ap­
pointed director
of training and
professional de­
velopment for
the Bank Mar­
keting Associ­
ation, it was an­
nounced recent­
ly by Raymond
M. Cheseldine,
BMA executive
vice president.
During the last year, Mr. Hillen,
39, has served as chairman of the
association’s Training and Profes­
sional Development Council, a BMA
leadership body which oversees
training and sales development pro­
grams for marketing professionals
in the banking industry.
Prior to joining Double Eagle in
1979, Mr. Hillen held a number of
marketing and sales training posi­
tions with Virginia banks. He has
conducted over 1,500 training ses­
sions in his banking career and has
planned the marketing and business
development action plans for over
45 new banking locations through­
out Virginia.
In taking over the training post

with BMA, Mr. Hillen succeeds
Robert J. Moustakis, who moves up
to director of membership develop­
ment for the association. Mr. Mous­
takis, an assistant vice president,
has been with BMA since 1979.
In a further realignment of staff
duties, Dr. Robert E. Moore, direc­
tor of BMA’s Schools Department
and an assistant vice president, has
been named head of a newly com­
bined Schools and Chapter Services
Department within the association,
Mr. Cheseldine announced.
Dr. Moore, a former University of
Colorado educator, joined BMA in
August, 1979, as director of the
association’s four schools—Essen­
tials of Bank Marketing, School of
Trust Sales and Marketing, School
of Bank Marketing and School of
Bank Marketing Management and
Strategic Planning.
Assisting Dr. Moore in the de­
partment will be two associate direc­
tors, Ellen Wrend and Linda Dean.
Ms. Wrend, who will be in charge of
chapter services, holds a degree in
public administration from Drake
University, Des Moines, and has
been with BMA since 1979. Ms.
Dean, who will be in charge of the
Schools section, holds a bachelor’s
degree in marketing from the Uni­
versity of Illinois. She joined BMA
in 1980.

ABA Reveals Plans for Conferences
ECHNIQUES for Improving Pro­
fitability is the theme for the
ABA Bank Investments and Funds

by Dr. Jerry Jordan, professor of
economics, University of New Mexicao, Albuquerque, and Leonard
Management Conference, February Santow, senior vice president, J.
23-25, at the Hyatt Regency Hotel, Henry Schroder Bank and Trust
Dallas. A wide array of general ses­ Company, New York. George W.
sion speakers, breakout sessions, McKinney, Jr., professor of bank
workshops and panels will address a management, University of Virgin­
multitude of sensitive topics in the ia, Charlottesville, will moderate.
* * *
investments and funds management
ANKERS seeking answers to a
variety of community banking
Featured speakers include Dr. Al­
bert Wojnilower, managing director questions and seeking additional
and chief economist, First Boston ways to improve the performance
Corp., New York; Elvis L. Mason, and profitability of their institutions
chairman, InterFirst Corporation, will be attending the ABA National
Dallas, and Jim McKay, sports com­ Assembly for Community Banking,
mentator and host of “ABC’s Wide March 6-9, at the Fairmont Hotel,
World of Sports,” New York. In ad­ New Orleans. The conference will ad­
dition, Congressman Jack F. Kemp dress such questions as: Is a one(R., N.Y.), has been invited to ad­ bank holding company or a service
corporation the better way to offer
dress the conferees.
The popular session on “The Out­ new services? How can your accoun­
look for Interest Rates and the Se­ tant make money for your bank?
curities Market” will be presented How do you measure the productivi­


for FRASERBanker, February, 1983
Federal Reserve Bank of St. Louis

ty of your officers and pay them ac- £
Other subjects that will be pre­
sented include microcomputer appli­
cations in the community bank, cre­
ating an ag credit corporation and £
pricing in a deregulated environ­
A one and one-half day pre-con­
ference workshop on market and
product development has been sche- q
duled March 4-6.
Contact Susan Moomaw (202/
467-5367) at ABA.



ORPORATE banking risks and
opportunities will be the focus
of the first ABA National Credit
and Correspondent Banking Confer­
ence, March 13-15, at the Fairmont
Hotel, New Orleans.
More than 800 bankers are ex­
pected to attend this meeting, which
combines the national conferences of
ABA’s Commercial Lending and
Correspondent Banking divisions.
General sessions will spotlight
speakers and issues of mutual con­
cern, but special interest sessions
and workshops will be specialized of­
ferings for either lending officers or
correspondent bankers.
Featured speakers at the 1983
conference include Joseph J. Pinola,
chairman of the board and chief
executive officer, First Interstate
Bancorp., Los Angeles; David W.
Fox, vice chairman, Northern Trust
Company, Chicago, and William H.
Kennedy, Jr., president, American
Bankers Association and chairman
of the board, National Bank of Com­
merce, Pine Bluff, Ark. In addition,
a panel of senior editors from Bus­
iness Week will discuss “The Eco­
nomic Environment - Its Impact on
Banking and the Business Credit

HBE Bank Facilities
Awarded Three Contracts









Three Midwestern credit unions
in Iowa, Missouri and Illinois have
awarded contracts exceeding $2 mil- ^
lion to HBE Bank Facilities. The an­
nouncement of the contract signings
was made last month by Fred S.
Kummer, president of the St. Louisbased design/build firm.
The ISU Credit Union in Ames,
la., selected HBE Bank Facilities to
design and build its new $795,000
main office. HBE will remodel and
expand an existing one-story build- ^
ing purchased by the credit union to

^ T HE UPTURN in leading ecow I nomic indicators — particularly
housing starts — gives hope that a
recovery is just ahead, though any
recovery is likely to be modest and
^ halting, according to Leon T. Ken­
dall, chairman of Mortgage Guaran­
ty Insurance Corporation.
In his annual
economic fore^ cast for the com­
ing year, Mr.
K endall, who
also serves as
p re s id e n t
^ M o rtgage In ­
su ran ce Com­
panies of Amer­
ica, p ro jected
th a t h o u sin g
0 starts will be up 30% in 1983. More
important, he stressed that “Ac­
comodative monetary policy, mod­
est economic growth and lower lev­
els of inflation should serve to bring
0 both long-term and short-term in­
terest rates down further.’’
These forces should validate the
consensus forecast of short-term in­
terest rates in the 7 to 8 % range,
O with the prime lending rate ranging
between 9 and 11% and long-term
governments around the 10% level.

As a result, Mr. Kendall expects
long-term home mortgages to be
available to consumers in the 12 to
13% range.
Any movement in mortgage rates,
he warns, will reflect cash flows at
thrift institutions and the huge
backlog demand for mortgage mon­
ey stemming from the need of many
homeowners to refinance short-term
Noting that consumers will play a
critical role in the 1983 economic
recovery, he stated that most poten­
tial homebuyers are likely to be in­
creasingly conscious of value in a
home purchase, shifting away from
the formerly-held belief that houses
will always go up in price.
“Housing will once again be seen
as an expense of living, rather than a
way to speculate profits,’’ said Mr.
Kendall. “Sound construction, good
location, good schools, good com­
munity services and acceptable
taxes will all be more important to
the buyer.’’
Under this scenario, his projec­
tion of 1.3 to 1.4 million housing
starts should generate one-to-four
family mortgage originations of
$120 billion, up from an expected
$90 billion in 1982. “ If and as mort-

gage interest rates decline, however,
the heavy demand for refinancing
the two, three and five year short­
term loans taken out under stress
between 1980 and 1982 may add $30
billion to $40 billion in mortgage
originations in 1983,’’ Mr. Kendall
The high levels of unemployment
in 1982, which should hold longer
than anyone would like, will also
mean a continuation of the high
level claims payments by mortgage
insurers in 1983. He further explains
that states and areas with peak un­
employment are experiencing both
record levels of delinquencies and
foreclosures, even though lenders
and insurers are doing all they can
to keep deserving homeowners in
their properties.
Summing up, Mr. Kendall states
that “it’s good news on the inflation
front.’’ As falling price indexes
translate into lower money costs, it
can help housing and encourage more
potential home owners to become ac­
tual home buyers. Tempering this,
unemployment is likely to remain at
extremely high levels by historic
standards and a good deal of that
unemployment will be structural
rather than cyclical and tied to per­
manent plant shutdowns, according
to the MGIC chairman.
“Nevertheless, for the first time in
any postwar recession, we have
avoided planting the seeds of the
next inflation through massive Fed­
eral spending programs,’’ he ex­
plained. “This should permit the Fed­
eral Reserve to help fuel the recov­
ery by supplying the funds neces­
sary to sustain it without reigniting
inflation. Thus, prospects for the lat­
ter months of 1983 and all of 1984
appear distinctly positive in terms
of potential for real growth. ’’

replace its outdated, cramped existing headquarters. The new ISU
Credit Union, scheduled for comple­
tion in September, 1983, will feature
a lobby area with six line tellers and
a two-teller drive-up with rough-ins
® for two additional remote tellers in
the future.
The Postal and Federal Employ­
ees Credit Union in Springfield, Mo.,
signed HBE to a $708,000 contract.
® In this building program, the credit
union will relocate to a new, larger
facility of more than 6600 square
feet. It will include a lobby area with
four line tellers, waiting area, pri® vate offices for the manager, loan

manager and treasurer, board room,
conference room, cash vault, loan
record storage, data processing,
employee lounge and accounting of­
fices. The drive-up facility will in­
clude one remote teller with rough-in
for a future second. HBE expects to
complete the project in December,
In Wood River, 111., HBE has de­
signed and will build new expanded
headquarters for the Shell Wood
River Federal Credit Union. The
$531,000 single-story structure will
contain a lobby area with four line
tellers, waiting area, private offices
for the manager, assistant manager

and loan officer, cash vault, com­
puter room, clerk and loan process­
ing area.
The board room and employee
lounge will be separated by a folding
partition, which can be opened for
larger meetings. The new credit
union’s drive-up facility will provide
for one remote teller. The Wood
River project should be completed in
September, 1983.
HBE Bank Facilities, one of the
eight operating divisions of HBE
Corporation, currently has projects
totaling $63 million in 21 states
under construction or in design

Predicts housing
starts in 1983
will be up 30%

Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983


If a bank answers, hang up.
As a correspondent of The Boulevard Bank, you don’t deal with a bank, you
deal with a person — a professional correspondent banker. Each one is a
senior Boulevard officer and each one is capable of making some seventy
Boulevard banking services available to you and your customers.
This unique Boulevard combination of “big bank’’ service and personal
attention involves four basic areas - Loan participations, Assets-Liability
Management Services, Operational and Clearing Services and Management
and Marketing Services.
It also involves our day-to-day dedication to applying people and
state-of-the-art technology in helping our correspondent customers meet
the challenges and benefit from the opportunities of today’s and
tomorrow’s economy.
If you’d like to find out more about the Boulevard approach to correspondent
banking, call (312) 836-6868. And talk to a person, not a bank.

Earning your

b U S in G S S

6V©ry day.

N ational Boulevard Bank of Chicago

410 N. M ICHIGAN AVE„ C H IC A G O , IL 60611

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

ONE ILLINOIS CENTER [111 E. W acker), CHICAG O , IL 60601

(312) 836-6500




D.R. Lovett, ch m n . & pres., Dixon
W. J . H ooter, exec. v . p . , C hicago

Bankers Fight Withholding

Yenerich served as executive vice
A massive campaign to repeal the president until elected to his new
withholding of interest provision of position.
Mr. Yenerich began his career at
0 the 1982 tax bill was launched last
Mid-City National Bank in 1965.
month by the Illinois Bankers Asso­
received a B.S. degree from In­
ciation with a mailing to every bank
in the state. Banks were advised diana University and a MBA from
that they can order folders to mail to De Paul University.
Mr. Yenerich, his wife Patti and
0 customers holding interest bearing
children are residents of Down­
accounts. The folder contains three
Illinois. In addition to
tear-out postcard already addressed
with Mid-Citco, the
to the two senators and represen­
and the First Na­
tative in a bank’s congressional
Grove, he is a
0 district. Extensive initial response
was reported, and meshed with a na­
tionwide effort led by the American
Mid-Citco’s assets, which include
Bankers Association.
two banks and an Executive Bank­
ing Center at III Center in Chicago,
• Named President and CEO
now exceed $342 million.
Joseph D. Henderson has been ap­
pointed president and chief exec­
Three Advance at Evanston
utive officer of
the F irst Na­
FirstBank Evanston has an­
tional Bank of
nounced that Richard C. Slater, 42,
Sterling, accor­
has been promoted to president. Mr.
ding to James L.
Slater, previously employed by
Elliott, chairman
McKinnon Securities, joined
of the board. Mr.
FirstBank in 1977.
Henderson as­
The bank has also announced that
sumes the office
Marilyn K. Williams has been pro­
vacated by the
moted to branch manager of the
retirement of C.
Robert Bickel.
Grove and Elmwood office, and W.
Mr. Henderson comes to the bank Franklin Appleby has been pro­
from Crawford County State Bank, moted to commercial banking of­
Robinson, 111., where he also served ficer.
as president and CEO. Mr. Hender­
son has 25 years of commercial bank­
ing experience.
Illinois Network Support

Elected President of 1st Natl.
Bank of Morton Grove
Randall J. Yenerich has been
0 elected president of the First Na­
tional Bank of Morton Grove, accor­
ding to Kenneth A. Skopec, chair­
man of the board of directors. Mr.
Yenerich is a director of Mid-Citco
0> Incorporated, the bank holding com­
pany which recently purchased the
Morton Grove Bank.
Mid-Citco also owns the Mid-City
National Bank of Chicago, where
# Mr. Skopec is president and Mr.
Federal Reserve Bank of St. Louis

ATM Network Management Cor­
poration (SATM) and MONEYCARD of Kansas, Inc. have com­
pleted arrangements whereby MON­
EYCARD ATMs will be supported
by the SATM Network.
With 50 participants, MONEYCARD is the only true switching
network in Kansas, providing full
ATM interchange services to finan­
cial institutions and data processors
from Kansas City to the state’s
southern border. Presently, mem­
bers have deployed 25 ATMs and

are planning to install another 15 by
year-end. Also, seven data centers
are currently under contract to
distribute ATM support services.
Nearly all of the network’s ATMs
are shared, and all carry the white
and green MONEYCARD logo.
MONEYCARD’s 100,000 cardhold­
ers utilize MONEYCARD, proprie­
tary and MasterCard II plastic
cards, and transactions offered in­
clude withdrawals and deposits af­
fecting any of four accounts: check­
ing (or NOW), savings, credit card,
or a line of credit. Other transac­
tions include transfers, payments
and balance inquiries.
Under the new agreement, SATM
will operate and provide main­
te n an c e d ia g n o stic s for th e
MONEYCARD ATMs via commun­
ication lines to the ATMs in Kansas.
Initially, all transactions will be
switched by the Illinois SATM
Center, and daily settlement reports
will be electronically routed to the
data centers or financial institutions
in Kansas.
January 30th is the schedule date
for full operation of the contracted

Morvis Will Head Illinois
Economic Education Council
George M. Morvis, president of
Financial Shares Corporation, Chi­
cago, was elected
president of the
Illinois Council
on E conom ic
The council,
an affiliate of the
(national) Joint
Council on Eco­
nomic E d u ca­
tion, is a non­
profit organiza­
tion of business and labor leaders,
government officials, and educators
whose aim is to increase economic
literacy in school children from
kindergarten through 12th grade,
via teacher training in economics.
Mr. Morvis succeeds Herbert
Neil, vice president and economist
for Harris Bank and Trust Com­
pany, Chicago. Elected to succeed
M.P. (Pete) Venema as chairman of
the council was Raymond N. Carlen,
retired chairman of Inland Steel.
Both positions are three-year terms.
Financial Shares Corporation is a
financial services industry con­
sulting firm.
Northwestern Banker, February, 1983


Illinois News

First Illinois Corporation and the
Wilmette Bank announced recently
that through a stock exchange the
Wilmette Bank will become a whol­
ly-owned subsididary of the corpora­
tion. Howard B. Silverman, presi­
dent and chief executive officer of
First Illinois Corporation, said that
Carl S. Stanley will continue as
chairman of the board of the Wil­
mette Bank and will become chair­
man of the board of First Illinois
Corporation. Upon stockholder and
regulatory approval, the Wilmette
acquisition and a previously an­
nounced acquisition of Northwest
Trust and Savings Bank of Arl­
ington Heights would increase total
assets of First Illinois Corporation
to in excess of $600 million.

Stephen C. Diamond, president of
the National Commerce Finance
Conference, is joining the First Na­
tional Bank of Chicago as head of
the bank’s asset-based financing ef­
fort, including secured lending and
vendor leasing. Since 1980, Mr. Dia­
mond, 47, has been president of
Chase Commercial Corporation,
which is responsible for Chase Man­
hattan Corporation’s asset-based
lending, factoring and leasing ac­
tivities. He was also a senior vice
president of the parent corporation.
Mr. Diamond is a consultant to and
director of several corporations and
author of articles on commercial fi­
nance and related subjects.



Proceeds from the fourth annual
Skokie Spirit Fun Run were recently
donated to the Good Health Program
of the Skokie Valley Hospital. Making
the $3,632 donation at the mayor’s
office were race director Monica
Sherry and Thomas C. Weise, vice
president operations, Skokie TVust
and Savings Bank. The Fun Run, co­
sponsored each year by Skokie Thist
and Savings Bank and Skokie Valley
Hospital, was held in October and had
more than 1200 entries.

John L. Penny has been named
executive officer of CBC Leasing, a
new division of Capitol Bank and
* * *
Thist Company of Chicago, as well as
vice president of the bank. CBC Leas­
Kenneth A. Skopec, president of ing offers capital equipment leasing
the Mid-City National Bank of Chi­ services.
cago, has announced the following
promotions: Brian J. Griffin and
James R. Sieben, assistant cashiers; Promotions Announced
Henry J. Maas, real estate loan of­
Carl A. Accardo, Jr., has been
ficer; William F. McCarty, pro named senior vice president, con­
cashier, and Bernardo F. Simon, pro sumer loans, of the First National
cashier and assistant data process­ Bank and Thist Company, Rockford.
ing officer.
Richard E. Stokes has been promoted
* * *
to assistant vice president, opera­
tions, John L. Wickman has been
Frank P. Espina, Jr., 39, has been appointed auditor and Jerry A. Leckelected assistant vice president at lider has been named controller at the
Amalgamated Trust & Savings bank. In addition, Pat Perrin has
Bank, One West Monroe Street, been appointed trust officer, Steven
Chicago. Mr. Espina, a native of the Downing data processing officer,
Philippines, had been manager of Douglas Burmeister trust operations
the accounts receivable loan servic­ officer and Robert Pomerenke assis­
ing department. He began his bank­ tant operations officer.
ing career
in 1974 with the
American National Bank, Chicago,
and joined Amalgamated Bank in Joins Elmhurst Bank
February, 1979.
Charles C. Kaiser has joined the
Banker, February, 1983
Federal Reserve Bank of St. Louis

Elmhurst National Bank as commer­
cial banking officer, corporate bank­
ing division, according to Frank C.
Rathje, bank president. Mr. Kaiser
will assist in the expansion of the
bank’s overall commercial loan port­
folio through the development of new
loans to middle-market businesses. A
1978 graduate of Northern Illinois
University, he began his banking
career with Bartlett Bank and Trust.
A year later he joined Mount Pro­
spect State Bank where he became a
commercial loan officer.

AE Offers Cheque Refunds
Via Automated Dispensers
The American Express Company,
New York, has announced that refunds for lost or stolen Travelers
Cheques are now available 24 hours
a day through the Company’s North
American network of nearly 100
Travelers Cheque dispensing machines. Travelers Cheque refund
claimants will not need a charge or
credit card in order to use the
machines for a refund.
Tom Cash, vice president of marketing for American Express Trav­
elers Cheques, said the new refund
system offers a unique advantage
for American Express Travelers
Cheques customers. “We are the only Travelers Cheque company that
can issue refunds through Travelers
Cheque dispensing machines, oper­
ating every day, around the clock.
American Express Travelers
American Express Travelers
Cheque dispensing machines are
located predominantly at airports
across the United States, including
Hawaii. Machines are also located in
major metropolitan areas in Canada
and in San Juan, Puerto Rico.
Procedures for getting a Travel­
ers Cheque refund will remain the
same, said Mr. Cash.
“The refund customer will be giv­
en a Refund Identification Number
to activate the machine,” Mr. Cash
continued. “And if the customer has
any problem, he can use the telephone mounted on the machine
which is wired directly to our
“Your refund will be rounded
down to the nearest $100,” explained
Mr. Cash. “The balance of your re­
fund will be mailed to you, or you
may pick it up during business
hours at one of our 105,000 staffed
refund locations.”












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on your competition with a free one
hour offer from InnerLine.


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City________________________________ State____________Zip Code.
Federal Reserve Bank of St. Louis


Northwestern Banker, February, 1983

If your primary correspondent
doesn’t call as often
as you’d like, call
First Bank M inneapolis«


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To find out how often you
wanted to see your primary corre­
spondent, we took the direct approach.
We asked.
And most of you said three or
four times a year.
Then we realized that few, if
any, major correspondent banks had
enough calling officers or support
staff to pull that off. We knew we didn’t.
So again, we took the direct
approach. We reorganized our
Correspondent Banking Department
and increased our staff of professionals

in every area. So all our primary
correspondent bank around, you’re
getting the right idea.
respondents will see us as often as
they’d like.
First Bank
We now field the largest force
of correspondent calling officers,
bond and money market specialists,
^ llr
Correspondent Banking
data processing professionals and
cash management consultants in the
First Bank Place
Upper Midwest. Experienced people
Minneapolis, MN 55480
trained to know you and your markets.
And all because that’s what
you’ve asked for.
So if you’re getting the idea
that we’re the most responsive

We are w hat you w ant a correspondent bank to be.

gfi -v
m ♦





L ...
Federal Reserve Bank of St. Louis


1979, the MBA has paid 47 rewards
on 43 bank robberies.
“That’s a small price to pay to
discourage people from committing
bank robberies,’’ said Mr. Berthiaume. “We want people to know
that committing a bank robbery is
an extremely unattractive risk.’’

J.P . Ingebrand, pres., Mora
T. L. J e ffe rs , exec. v . p . , M inneapolis

Promoted in Cottonwood

Marketing Conference Planned March 2


MARKETING Conference joint­
ly sponsored by the Minnesota
Bankers Association’s communica­
tions committee and the Minnesota
Chapter of Bank Marketing Asso­
ciation will be conducted March 2 at
the Holiday Inn International in
Bloomington. Chairman of the host
MBA committee is Roy Terwilliger,
president, Suburban National Bank,
Eden Prairie. President of the Min­
nesota BMA chapter is Lucille Stoffels, marketing officer, First Grand
Avenue State Bank, St. Paul.
The conference will commence with
registration at 8:30 a.m., the pro­
gram starting promptly at 9:00 a.m.,
luncheon at noon, and afternoon pro­
gram concluding at 4:00 p.m.
Three speakers will share the plat­
form for the day. Bob Dye and Vicki
Unanest of Financial Shares Corp.,
Chicago, will participate in several
sessions looking at the bank market­
ing function. Ms. Unanest will
discuss “The Role of Marketing in a
Community Bank,” as well as a later
topic, “Measuring Marketing Effec­
tiveness.” Mr. Dye will discuss
“ P ro d u c t D ev elo p m en t and
Joining them on the platform will
be Pat Colbert, president of the
American State Bank in Blooming­
ton, whose topic will be, “What the
CEO Expects of the Marketing
This conference replaces the
MBA marketing workshops previ­
ously scheduled for March 1-3
around the state.

Robbery Program
Yields Rewards
The Minnesota Bankers Associa­
tion Robbery Reward Program is
making a significant contribution to
catching and indicting bank rob­
bers, according to Wayne Berthiaume, MBA administrative vice pres­
for FRASERBanker, February, 1983
Federal Reserve Bank of St. Louis

Mr. Berthiaume quoted FBI sta­
tistics showing that of the 62 bank
robberies occurring in Minnesota in
1982, 39 have been solved and over a
third (16) of the solved cases involved
informants who received a reward
from the MBA.
Of the 62 robberies in 1982, 55 oc­
curred in the Twin Cities area. In
1981, 76 bank robberies were com­
mitted state-wide.
The MBA Robbery Reward Pro­
gram pays informants up to $5,000
for information leading to the arrest
and indictment of any person sus­
pected of or attempting to commit a
robbery, burglary, larceny or extor­
tion of a Minnesota commecial bank.
Since the program’s inception in

Empire State Bank of Cotton­
wood has announced the promotions
of Douglas Anderson, Mark Bjornebo, Loretta Dieken and James
Mr. Anderson moves from vice
president to senior vice president.
He began his career in 1961 at
Western State Bank of Marshall and
joined Empire State Bank in 1972.
Mr. Bjornebo, who started his
career at the bank in 1975, has been
advanced from assistant vice presi­
dent to vice president, with respon­
sibility for installment loans, re­
ports and personnel.
Ms. Dieken, who has been serving
as assistant cashier, was elected to
cashier, replacing Ruth Post, who
retired December 31.
Elected to the position of agri­
cultural loan officer, Mr. Boerboom
joined the bank in December.

First Bank Complex Underway
IRST Bank (N.A.)-Duluth re­
cently unveiled plans for First
Bank Place, the multi-milion dollar
bank/office tower now under con­
struction at the corner of Second
Avenue West and Superior Street.
“Our decision to proceed with con­
struction despite current economic
conditions is reaffirmation of our


faith in the underlying strength of
this area,” said Larry L. Gilb, First
Bank-Duluth president.
“Construction of First Bank Place
will provide jobs for the people of our
area and work for area firms at a
critical time,” noted James H.
Claypool, bank chairman. “We fully
expect that this project will spur fur­
ther development.”
According to Mr. Claypool, the
project has moved along rapidly wth
the help of Duluth Mayor John Fedo
and the city administration.
First Bank Place will be a 12-story
complex including two subfloors. Six
of the floors will be occupied by First
Bank-Duluth. The remaining floors
will be leased to local, regional and
national firms, according to Clarence
D. Maddy, bank vice president, who
is responsible for coordinating con­
struction and the leasing of the new
The complex has been designed by
B.W.B.R. Architects, St. Paul, which
has designed over 150 financial facil­
Building completion is scheduled
for the summer of 1984.








Gary Rohlîsen
Speaks Overlines

When one of your customers needs to borrow
beyond your limit, or when you run into a com ­
plicated credit situation, it’s helpful to talk with
an experienced banker who cares about com ­
munity banks. That’s Gary Rohlfsen, and that’s
We are particularly sensitive to the needs and




Federal Reserve Bank of St. Louis

pressures faced by independent community
banks. We believe in cooperation, not competi­
tion, for your customers.
We want to be your partner and help you solve
your problems. It’s easy to put an American
correspondent banker to work for your bank.
Just call (612) 298-6331.

B A N K .



Northwestern Banker, February, 1983


James W. Reagan, chairman and
chief executive officer of American
National Bank of St. Paul, has an­
nounced the election of Roger P.
Foussard and William S. Marvin to
the board of directors.



ments at the Minnetonka State
Bank. A native of Stillwater, Mr.
Peterka joined the bank in 1982. He
has been employed for nine years at
First Bank Robbinsdale.
Liberty State Bank, St. Paul, has
announced that Timothy J. Macke
was elected president and David R.
Fesler board chairman.
Mr. Macke began his career in
1967 at the Bank of Wisconsin Dells
and joined First National Bank of
St. Paul in 1970. He came to Liberty
State Bank in 1976 as an assistant
vice president and was elected ex­
ecutive vice president in 1980.
Mr. Fesler joined Liberty on a
full-time basis in 1964 and was
elected president in 1967.
* * *

A life-long resident of St. Paul,
Mr. Foussard is president of Hos­
pital Linens Services Inc. of St.
First Bank Robbinsdale has
Mr. Marvin is chairman and chief
Kent V. Stone and Patrick J.
executive officer of Marvin Win­
as assistant vice pres­
dows of Warroad, Minn. A past
president of the Northern Min­ id e n ts .
nesota Manufacturers Association, Stone, who will
he was elected to the Minnesota be manager of
th e B rooklyn
Business Hall of Fame in 1980.
P a rk
* * *
joined the bank
Marquette State Bank of Colum­ in 1980. Mr. Cor­
bia Heights has announced the ap­ rigan, who be­
gan his career in
p o in tm e n t of
1979 with First
Jeffrey D. Bauer
Bank Worthing­
as loan officer.
ton, will work in
Mr. Bauer joined
the commercial lending division of
Marquette after
the bank.
serv in g th ree
First Bank President Kenneth C.
years as loan of­
Sheehan also has announced the
ficer with the
First State Bank
of Spring Lake
Park. Mr. Bauer,
who will also
serve as compliance officer, is a 1979
graduate of the University of Wis­
consin, River Falls.
* * *
David Peterka has been elected
vice president in charge of the com­
mercial and real estate loan depart­
Banker, February, 1983
Federal Reserve Bank of St. Louis

election of Robert A. Ranwick to
commercial banking officer. Mr.
Ranwick began his career with ITT
Industrial Credit Company in 1978
and joined the bank in 1981.
* * *
Northwest Bancorporation an­
nounced last month that Richard S.
Levitt, Des Moines, la., has been
named a vice chairman of the cor­
poration. He had been chairman and
chief executive officer of Dial Cor­
poration, a unit of Northwest Bancorporation acquired last year.
Mr. Levitt will be succeeded as
chief executive officer of Dial by
Richard J. Brinkman, Dial's presi­
dent. Mr. Levitt will continue as
chairman of Dial. The Dial head­
quarters will remain in Des Moines.

John W. Morrison, chairman of
Northwest Bancorporation, said Mr.
Levitt is recognized as one of the
outstanding executives in the finan­
cial services industry. “We are for­
tunate to have him join the cor­
porate office, where his experience
and counsel will be an invaluable ad­
dition to our management.”
Mr. Levitt is expected to move to
Minneapolis in the near future. He
will be one of three vice chairmen of
the corporation and will have line
management responsibility over all
Northwest Bancorporation financial
services subsidiaries. Reporting
directly to Mr. Levitt, in addition to
Mr. Brinkman, will be Walter C.
Johnson, president of Northwest
Bancorporation’s financial services





Statement of Condition
National City Bank
(in thousands)
December 31

Cash and Due from B anks..............................................................................................
Interest Bearing Time Deposits with Foreign Banks......................................................
Investment Securities:
U.S. Treasury................................................................................................................
U.S. Government Agencies........................................................................................
Obligations of States and Political Subdivisions........................................................
Other Securities............................................................................................................

$ 22,543

$ 29,878



Total Investment Securities......................................................................................
Trading Account Securities..............................................................................................
Federal Funds S o ld ..........................................................................................................
Loans, Net of Reserve for Loan Losses
1982 $3,189; 1981 $2,756 and Unearned Discount 1982 $406; 1981 $ 389 ..........
Leasehold Improvements and Equipment......................................................................
Accrued Income Receivable............................................................................................
Customer Acceptance Liability......................................................................................
Other Assets ....................................................................................................................





Total A ssets..............................................................................................................



$ 74,636

$ 75,713

Total D eposits..........................................................................................................
Federal Funds Purchased and Securities Sold
Under Agreements to Repurchase..............................................................................
Other Borrowed Funds....................................................................................................
Acceptances Outstanding................................................................................................
Other Liabilities................................................................................................................
Subordinated N o te ..........................................................................................................





Total Liabilities........................................................................................................
Stockholders’ Equity:
Common Stock, Par Value $5.00
Authorized 2,500,000 shares
Issued and Outstanding 1982—2,400,000 shares;
1981—2,000,000 shares;.............„ .................................
Undivided P ro fits........................................................................................................





Total Stockholders’ Equity......................................................................................



Total Liabilities and Stockholders’ Equity ............................................................



Liabilities & Stockholders’ Equity
D em and........................................................................................................................
T im e..............................................................................................................................
Foreign Branch..............................................................................................................

Directors of National City Bank of Minneapolis
C. Bernard Jacobs

Howard E. Barnhill

Edward C. Brown, Jr.

James B. Goetz

Walter W. Heller

Chairman o f the Board

Chairman o f the Board
and C hief Executive Officer

Retired President

Chairman o f the Board
and C hief Executive Officer

Regents’ Professor
o f Economics

James H. Hearon, III


Ralph C. Tumquist

David L. Andreas
Vice President

National City Bancorporation

Lowell W. Andreas
Retired President

Archer Daniels Midland Company

Sister Mary Madonna
Ashton, CSJ
Commisioner o f Health

North American Life
and Casualty Company

National City Bank

University of Minnesota
Information Dialogues, Inc. C. W ilbur Peters

Kenneth H. Dahlberg

Marvin Borman

Chairman o f the Board
and C hief Executive Officer


Dahlberg Electronics, Inc.

President and Chief
Executive Officer

Maslon, Edelman, Borman,
Brand and McNulty

Frederick L. Deming

National City Bank

Minnesota Fabrics, Inc.

Retired President

Chairman o f the Board
and C hief Executive Officer

National City Bancorporation

Turnquist Paper Company

State of Minnesota

75 South Fifth Street • Minneapolis, Minnesota 55402
Federal Reserve Bank of St. Louis

Phone 612-340-3000

Member F.D.l.C.
Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

New Branch Opens in Miami


OFFICIALS OF Northwestern National Bank of Minneapolis and parent company, Northwest

Bancorporation, got together in Florida recently for the official opening of the Miami branch of the bank’s
subsidiary, Northwest International Bank. Left to right James W. Johnson, exec. v.p. and head of
Northwestern’s International Group; E. Peter Gillette Jr., vice chmn., A. William Charlton, v.p. and
mgr. of the Miami branch, and Daniel G. Brian, v.p. of the bank’s Latin American division.

companies, which include: Banco
Mortgage Company, the third
largest mortgage banking firm in
the country; Northwest Growth
Fund, Inc., a leader in venture
capital financing; Banco Financial
Corp., an asset-based lending cor­
poration; Lease Northwest, one of
the largest bank-related leasing
organizations in the Upper Midwest,
and the corporation’s insurance
related subsidiaries.
Mr. Morrison said Mr. Levitt’s
election is part of a corporate-wide
reorganization process begun last
August that included appointments
of two other vice chairmen, E. Peter
Gillette, Jr., and Robert A. Krane,
who now share line management
responsibility for the corporation’s
86 banks in a seven-state region.
Mr. Levitt has been with Dial
since 1954. He became president and
chief operating officer in 1972 and
chairman and chief executive officer
in 1979.
Mr. Brinkman joined Dial in
1959. He was elected executive vice
president and chief operating officer
in 1979 and president in 1981.
* * *
Robert L. Stehlik has been named
president and managing officer of
First Bank Southdale, Edina. Pre­
viously president and managing of­
ficer of First Bank Burnsville, Mr.
Stehlik succeeds David Orlady, who
has been named managing director
of the Central Minnesota affiliates
of First Bank System. Mr. Stehlik
joined First Bank System in 1956
and assumed the presidency at
Burnsville in 1980.

Banker, February, 1983
Federal Reserve Bank of St. Louis



First Bank Southdale also an­
nounced the appointment of Dennis
F. Maetzold to senior vice president
in charge of strategic planning, mar­
keting and business development for
the retail and commercial divisions
of the bank. Prior to this position, he
served as vice president at First
Bank Minneapolis in charge of the
Executive and Professional Center.
* * *
Robert A. Holzinger, Anthony J.
Mangan and William J. Rikkers
have been appointed executive vice
p re s id e n ts a t
Northwest Com­
puter Services
Inc., a unit of
Northwest Bancorporation. The
a p p o in tm e n ts,
said David Van
Lear, NCS presi­
dent, are part of
a restructuring
intended to pre­ R.A. HOLZINGER
pare the company for an expanded
role in support of Northwest Bancorporation, affiliated banks, cor­
respondent banks and other cus­


Mr. Holzinger, executive vice
president of systems development,
was president of Financial Data Pro­
ducts, Minneapolis, a subsidiary of
Twin Cities Federal Savings and
Loan Association. Mr. Mangan,
whose new area of responsibility is
information processing, joined NCS
in 1973. Mr. Rikkers, an NCS vice
president since 1968, assumes du­
ties in administration.
* * *
Richard L. Falconer, district
manager of Northwestern Bell, Bis­
marck, N.D, and Curtis W. Kuehn,
senior vice president of First Na­
tional Bank, Sioux Falls, S.D., have
been elected to three-year terms on
the board of directors of the Federal
Reserve Bank of Minneapolis. E.
Peter Gillette, chairman and chief
executive officer of Northwesten Na­
tional Bank of Minneapolis, has
been appointed to serve a one-year
term on the Federal Advisory Coun­
William G. Phillips, chairman of
the board and chief executive officer
of International Multifoods, and
John B. Davis, Jr., president of
Macalester College, have been reap­
pointed by the Board of Governors
of the Federal Reserve System to
serve as chairman and deputy chair­
man, respectively. The Board of
Governors also appointed Sister
Generose Gervais, administrator of
St. Marys Hospital, Rochester, to a
second three-year term.
* * *
Roger L. Hauge, president and
chief executive officer of Citizens
State Bank of St. Louis Park, re­
cently announced the merger of Cit­
izens State Bank and Guaranty
State Bank of Robbinsdale. The re­
sultant bank will still be known as
Citizens State Bank of St. Louis
Park and will have its main office at
the present Citizens State Bank site
with two full-service branches, one
of them in the former Guaranty
State Bank. Prior to the merger,

Alexandria, Minnesota, a city that likes itself, is a
jewel set amidst 23 silvery lakes filled to over-flowing
with accommodating, frenzied fish of various
persuasions. It bills itself with bumptious charm as
the birthplace of America, claiming a band of
Vikings hit the area in the mid-1300s. In any event,
brave Norwegians and stalwart Swedes are today well
represented among Alex’s 7,600 population (which
balloons to 25,000 in the warmer months). The city’s
economy is based on tourism, manufacturing,
a brisk retail business, and a big, prosperous farm trade.
The city’s served by three banks and two S&Ls.
The newest bank is the 10-year-old Community State
Bank located in a handsome brick building on the
comer of 3rd &- Maple. It has assets of $25 million. Its
incorporation and success, which some said was
impossible, was facilitated by Northwestern National
Bank of Minneapolis, 130 miles southeast of Alex.
Micheál Lillehaugen, Community Bank’s CEO, recently
talked about the good fortune that had brought
him to Alexandria.
„ * '¿JJ


_ /f"
communi ryj


I discovered Alexandria
long before I moved here. It looked
marvelous to me. I’m a country boy, one
T --of nine kids. I grew up on a wheat and beef
farm over in North Dakota. It was my kind of town.
I’ve been a banker since 1958, and a lawyer/
banker since 1962. In time I became a troubleshooter
for a big Twin City banker. Looking back, what
I was really doing was training myself as a CEO of
a small-city bank.
When I finally asked about a bank in Alex, I
was told to forget it—there was a waiting list as long
as your arm of people who wanted to move to
__ -~<*»*«•**.

".-Ss -V

I walked across the street and
talked to Northwestern Minneapolis.
The very next day I got a call. Eight
businessmen from Alexandria, Northwestern
said, including the personable E.C. Beliveau,
wanted to create a community bank. They needed a
CEO. Was I interested?
The deal moved fast. Northwestern gave us the
information we needed to set up a bank and later a
holding company. It gave us a bank-stock loan. It
then lent us much of the money we needed
to buy this building.
Northwestern was accommodating. It was always
helpful. It was courteous. And it got the job done.
We dealt with professionals. And to this day
Northwestern continues to help with a half million
dollar line of credit.
What do I think of small-city banking? Listen,
I tried the other kind for 13 years.


National Bank

Of Minneapolis


a*»-™ -
Federal Reserve Bank of St. Louis



Minnesota News

Citizens State Bank was the 48th
largest bank in Minnesota. It now
becomes the 17th largest bank in the
* * *
As part of major organizational
changes in its domestic banking
group, Northwestern National Bank
of Minneapolis has set up a new
financial services departm ent.
Peter R. Reis, senior vice president,
will head the
departm ent
which includes
cash m anage­
ment, corporate
finance, econom­
ics, economic de­
velopment and,
in the future,
corporate mar­
Also as part of



Northwestern Donates Its
Weatherball to State Fair

John E. Barry, senior vice presi­
dent of American National Bank of
St. Paul, has been elected vice presi­
dent of the Aircraft Finance Associ­
ation. Robert L. Nelson, American
National vice president, has been ap­
pointed to the board of directors’ ad­
visory council of the National Bus­
iness Aircraft Association.

THE familiar Weatherball sign on top of the

Northwestern National Bank in Minneapolis
will find a new home at the Minnesota State
Fair grounds. It was announced last Sep­
tember the Weatherball would be taken
down when Northwest Bancorporation
changes its name this spring to Norwest
Corporation. The 78-ton, 12-story high
Weatherball (157' high) is the largest bank
sign between Chicago and the West Coast.
It was first turned on October 7, 1949, and it
immediately turned on Twin City residents
with its weather reminder—white for colder
weather, red for warmer, green for no
change, flashing color for precipitation. The
Weatherball survived the $75 million
Thanksgiving Day fire that put the building
itself out of action. No site has yet been
selected on the State Fair grounds.

the reorganization, newly-elected
senior vice president Joseph E. Foss
will succeed Mr. Reis as manager of
the national department. John K.
Lukaska, vice president, will suc­
ceed Mr. Foss as manager of the land, vice president of financial ac­
manufacturing and electronics divi­ counting in the Finance Group, has
been with the bank since 1972.
sion of domestic banking.
* * *
* * *
Eugene M. Bloom, vice president,
Richard S. Thurley has been
has retired from First Bank Mer­ elected asset/liability officer of
chants, St. Paul, according to bank Bremer Service Company. Inc., and
President David Waddington. Mr. Edward L. Ttabing has joined the
Bloom began his banking career in company as a vice president respon­
1942 at First National Bank in St. sible for coordinating the activities of
Paul, served in the Air Force from affiliated insurance agencies. Mr.
1943 to 1945, and returned to St. Thurley joined Bremer as an auditor
Paul in 1946 to join First Bank Mer­ in 1978. Mr. Tfabing spent the past 18
chants. He was made cashier in years as a director of marketing for
1959, and in 1971 he was appointed the Insurance Company of North
vice president.
* * *
Bremer Service Company Inc. pro­
Thomas G. Grace and Mary A. vides staff services for the Otto
Shefland have been elected vice Bremer Company group of 29 banks
presidents at Northwestern Na­ and 37 bank-related affiliates in Min­
tional Bank of Minnepolis. Mr. nesota, North Dakota and Wisconsin.
Grace, vice president of the trust
department services division, went
to Northwestern in 1980 from Piper
The Federal Reserve Bank of Min­
Jaffray & Hopwood Inc. Ms. Shef- neapolis has announced its approval
Digitized Northwestern
for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis

of the application by Hutchinson
Bancorp, Minneapolis, to become a
bank holding company through the
acquisition of the First National
Bank of Hutchinson, Hutchinson,



Mr. Barry has been a director of
the AFA, a national organization of
finance companies in the corporate
aircraft field, and will continue in
that capacity.
As a member of the N.B.A.A. ad­
visory council, Mr. Nelson will re­
present corporate aircraft manufac­
turers, aircraft parts and service
suppliers, and fixed base operators.
* * *
Larry D. Buegler, chief executive
officer and chairman of the board of
Northwestern National Bank of St.
Paul, has announced the following
election and promotions:
John Geiken
has been pro­
moted to senior
vice president
and cashier. Mr.
Geiken has been
with Northweste r n / S t . P a u l ’s
parent company,
Northwest Bancorporation,
since 1964. He
joined the St. Paul bank in 1978.
Stephen J. Urion has been pro­
moted to vice president. He joined
Northwestern in 1978 from Citicorp,
New York, where he was a business
credit lender and officer.
Steven M. Dolan has been elected
officer in the corporate services

of Minnesota’s major trucking firms,
and is president and owner of several
other related area firms. For 10 years
he was a director and fifty percent
owner of Klossner State Bank.
Mr. Bentdahl, 45, has been in bank­
ing since 1963. He is currently con­
trolling shareholder and chairman of
the Americana State Banks in Albert
Lea, Alden, Hayward, Clara City,
Willmar, Danube and Edina. He is
presently on the bank management
committee of the Minnesota Bankers
Association. Mr. Bentdahl is vice
chairman of the board of regents of
Luther College, Decorah, Iowa.
Minnesota News

of the customer service department;
Karen Owen promoted to assistant
vice president in the real estate and
loan department; Sandy Cosert pro­
moted to secretary to the president
and secretary section supervisor;
Susan Olson advanced from auditor
to assistant comptroller; LaVonne
VanVickie from operations officer to
auditor, and Emma Rademacher pro­
moted to head of the bookkeeping

department of the commercial bank­
ing group. Mr. Dolan joined Northwestern/St. Paul in 1981 from Acquisition Approved
The Federal Reserve Bank of
Northwestern Bank West, an affil• iate bank where he was consumer Minneapolis has announced approval
of the application by Donnelly Banebanking officer.
shares, Inc., Donnelly, to become a
holding company through the
Commercial Lending School acquisition
of the Farmers and Mer­
0 Announced by MBA
chants State Bank of Donnelly.
The Minnesota Bankers Associa­
tion will sponsor a new banking Acquisition Approved
school August 7-12 for commercial
The Federal Reserve Bank of Min­
lending personnel, according to neapolis has approved the application
® John P. Ingebrand, MBA president of Gary Holding Company to become
and president of Kanabec State a bank holding company through the
Bank, Mora. The school, to be held acquisition of Gary State Bank.
at St. Olaf College, Northfield, is
designed for bankers with limited
® lending experience and a fundamen­ New Waconia Bank
The recently chartered Waconia
tal background in accounting, credit
administration and financial state­ State Bank opened for business in
December. The bank was chartered
ment analysis.
Mr. Ingebrand noted that MBA’s initially in 1979 but was delayed to
^ Lending Committee considered allow for court hearings protesting
sponsoring a lending school for sev­ the application from other banks. It
eral years, and the decision to create finally received clearance in January,
a program was based on the results 1982, and opened in December in a
of a March, 1981 survey. Requests remodeled Waconia building. Paul
® for applications for the 1983 session Tbllefsrud is president and Jeffrey
Koenen is cashier.
are now being accepted.

Application Approved

Moves to Albert Lea

W. A. Jensen moved recently to
The Federal Reserve Bank of Min­ Albert Lea as president and chief
neapolis recently announced ap­ executive officer at First Bank Albert
proval of the application by Vernon Lea. Previously, he held similar posi­
Center Bancshares Inc., Vernon tions with First Bank East Grand
Center, to become a bank holding Forks. He succeeds Gordon Bickle,
® company through the acquisition of who has been appointed to a similar
the State Bank of Vernon Center.
post with First Bank in Miles City,

Named at Brainerd Bank
The board of directors of Citizens
State Bank of Br ainerd and Baxter,
Minn., have approved the designa­
tions of Warren L. Williams as presi­
dent and chief executive officer and
Marvin R. Campbell as chairman of
the board. Mr. Campbell has been
president for a number of years.
Other changes at the bank include:
Beverly Marx from executive secre­
tary to assistant cashier and manager
Federal Reserve Bank of St. Louis

Sleepy Eye Bank Sold
Controlling interest in the State
Bank of Sleepy Eye has been sold by
Donald E. Schmid, 67, president, and
Director George Wooldrik, 70, to Bob
Dittrich of New Ulm and Ray Bentdahl of Edina. Mr. Schmid is retiring
from the bank after 36 years of ser­
vice there.
Mr. Dittrich, 45, is owner and
operator of Dittrich of Minnesota, one

Approval Announced
First State Agency of Stewart, Inc.,
Stewart, has received approval from
the Federal Reserve Bank of Min­
neapolis to become a bank holding
company through the acquisition of
the First Bank of Minnesota, Stewart,
and to continue to engage in general
insurance activities.

RMA Publishes Text on
Effective Loan Management
A new 224-page text on properly
managing the lending function is
now available from Robert Morris
Associates—the national associa­
tion of bank loan and credit officers.
Titled Effective Loan Management,
the book contains 10 chapters; each
provides specific examples of how
loan managers can run their lending
functions at peak efficiency for max­
imum profitability.
The book was written by RMA Di­
rector Edgar M. Morsman, Jr., vice
president, Northwest Bancorporation, Minneapolis. It is designed
primarily for bankers who manage
either lenders or subordinate loan
managers. It also will be helpful to
potential loan managers and exec­
utive management.
Effective Loan Management fo­
cuses on three important areas of
managing the lending function: (1)
objectives of proper loan manage­
ment and how results can be mea­
sured; (2 ) strategies loan managers
employ to accomplish their objec­
tives; and (3) management skills, in­
terpersonal skills, and ability to
manage change. It also offers infor­
mation on evaluating the adequacy
of a bank’s loan administration and
provides examples of how to im­
prove it.
Northwestern Banker, February, 1983

Watertown, as an assistant branch £
manager at Castlewood. Mr. Paul­
son was formerly a loan officer at
United National Bank, Sioux Falls,
Viborg branch.

South Dakota

Named Ag Loan Rep
D.O. Mehlhaff, pres., Eureka
J. M. Schwartz, exec. m g r., Pierre

Peter A. Atkins has been named
agricultural loan representative by
Northwestern National Bank in Hu­
ron. He joined the bank last June •
following his graduation.

Promotions Announced

cently at the age of 83. He spent his
John E. Roers has been elected entire career with the bank in
vice president and Cindi H. Biever Centerville.
Mr. Thomson was president of the
elected assistant vice president of
Dakota Bankers Association
Western Bank, Sioux Falls. Mr.
a post held later in 1980-81
Roers, who joined the bank in 1981,
son, John W. Thomson,
heads the agricultural loan departwho is president of The Bank of
Centerville. The senior Mr. Thomson
served s South Dakota State Trea­
surer in 1942. In 1945 he served as
chairman of the American Bankers
Association’s Agriculture Commit­
Among his other survivors are his
wife, Muriel, whom he married in
Centerville in 1927, and one daugh­
Mrs. Martha Christenson, of
Tuscon, Ariz. One of his five grand­
ment at Western Bank North. Ms. children is John Thomson, assistant
Biever, a bank employee since 1967, vice president in the agri-business
works in the operations department department at Northwestern Na­
at the downtown bank.
tional Bank of Minneapolis.

John N. Thomson Dies

Appointed at Castlewood

John Norman Thomson, chairman
of The Bank of Centerville, died re­

David Paulson has joined the
staff of United National Bank,


North Dakota

Advanced in Belle Fourche
Jerry Letellier was promoted to in- 0
stallment loan officer recently at THState National Bank in Belle Fourche.
He joined the bank a year ago.

Leighton Scott has been elected
corporate trust officer at First Bank
of South Da­
kot a,
Falls, according
to David Birkeland, bank pres­
ident and chief
e xec u t i v e of­
ficer. Mr. Scott
joined the bank
in December. He
had served as
director of fiL- SCOTT
nance and accounting for the South
Dakota Housing Development Au­
thority in Pierre for the past three


which is a slight increase in the
amount guaranteed by the former
federal program last year.

Named Officers
Keith Falconer has been ap­
pointed commercial banking officer
J.M. McGinley, pres., W illiston
and Paul Smith installment loan of­
H. J. Argue, exec. d ir . , Bism arck
ficer at the First National Bank of
Fargo, according to George W.
Schwartz, bank president.
Mr. Falconer began his banking
Guaranteed Student Loans
career in 1963 with First National
Total Over $20 Million
The program was created by the Bank of Fargo and moved on to
North Dakota’s Guaranteed Stu­ last session of the state legislature Marquette National Bank of Min­
dent Loan Program has backed in response to the phasing out of the neapolis, Merchants National Bank
more than 10,000 student loans Federal Insured Student Loan Pro­ of Fargo and First National Bank in
totaling more than $20.7 million gram. State lawmakers placed the Moorhead. Before joining First Na- | |
since the program became opera­ newly-created loan agency under the tional in 1982 he was regional coor­
tional last year. Governor Allen Bank of North Dakota.
dinator for the marketing division of
Olson has announced that loan ap­
Governor Olson stated agency of­ Northwestern Bancorporation.
plications have been received from ficials anticipate student loan
Mr. Smith, a Renville, Minn., na­
86 commecial lenders across the guarantees to toal more than $27.5 tive, joined the First National of
state for students attending some million in the current academic year, Fargo in 1979 in the collection area
Banker, February, 1983
Federal Reserve Bank of St. Louis

Bank of North Dakota
December 30, 1982


Cash and Due from Bank.........................
U.S. Government Securities.....................

$ 52,246,696.46

Federal Agencies Securities .
Bankers Acceptances and
Other Investments..............................
State and Municipal Securities...............
Federal Funds S o ld ................................
Securities Purchased Under
Agreement to Resell ..........................


I 111



I I» E E







FmHA Business & Industry Guaranty ..
FmHA Housing Guaranty...................
FHA and Gl Home Loans.....................
Farm R.E. Loans.........................
R.E. C ontracts..........................
Loans to State Institutions........
Bank Stock Loans.....................
SBA Participation Loans...........
N.D. Bank Participation Loans ..
Federally Insured Student Loans
Other Loans............... ...............


TOTAL LOANS........................................
Accrued Interest Receivable...................
Bank Building and Equipment.................
Unamortized Bond Issue C osts...............
Other A sse ts..........................................
TOTAL RESOURCES..............................


Demand Deposits:
Individuals, Partnerships
and Corporations .....................
Now Accounts - Individuals
Now Accounts - Public.............
Deposit of Banks.........................
State and Political Subdivisions
Official Checks, etc...................
Time and Savings Deposits:
Individuals, Partnerships
and Corporations...................
State and Political Subdivisons ..

1 1#


TOTAL DEPOSITS........................
Fed. Fds. Purch. & Sec. Sold
Under Agreement to Repurchase
Accrued Interest Payable
Other Liabilities
Long Term Debt— Mtg Bonds

for 64 years

238,060, 910.69
6,066, 725.01
5,374, 461.03
35,158. 000.00
6,500, 000.00
16,000. 000.00
18,000. 000.00



North Dakota Growth



Undivided Profits ..




orth Dakota

700 Main Street
P.O. Box 1657
North Dakota 58505
The Bank of North Dakota is owned, operated and controlled by the State of North Dakota under the
supervision of the State Industrial Commission:

Robert O. Wefald

H.L. Thorndal

Kent Jones

Attorney General


Commissioner of Agriculture
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983


Changing economic
conditions require the ability
to anticipate change,
instead of reacting to it

First Bank Saint P a u ls
financial model helps you
forecast current and future
trends for effective bank
m anagem ent.
In today's competitive market place, high
performance depends on effective
management of both assets and liabilities.
At First Bank Saint Paul we have a tool to
make this job easier.
It is a financial model that allows you to
forecast changing profit levels under
varying circumstances. In other words,
what will happen to net income if interest
rates go up or down? How will a change in
the mix of assets and liabilities affect

for FRASERBanker, February, 1983
Federal Reserve Bank of St. Louis

income? O ur model not only forecasts a
complete balance sheet and income
statement, but also provides a detailed
summary of rate sensitivity and gap. It is a
planning tool that helps you prepare for
changing conditions.
To find out how our financial model can
help you manage your bank, call our
Investment Services G roup at (612)

First Bank Saint Paul
Member First Bank System

Investment Services Group
332 Minnesota Street
Saint Paul, Minnesota 55101
Federal Reserve Bank of St. Louis

of the installment loan department.
Prior to joining First National, he
was assistant manager for two years
at Finance America in Moorhead.

Elected President at
Jamestown Bank
James Exner was elected recently
as president of the Stutsman County
State Bank in Jamestown. A native of
Jamestown, Mr. Exner is returning
from Casselton where he has been
with the Casselton State Bank since
1976, most ecently as vice president
and senior loan officer. His previous
experience includes 10 years with the
Federal Land Bank in Minnesota.

Joins Casselton Bank
R. J. (Skip) Klinkhammer, who had
been general manager of Farmers
Union Oil Company in Casselton
since 1976, recently joined the Cassel­
ton State Bank as vice president in
charge of operations.
R. T. Carley, president of the bank
also a n n o u n c e d t h e s e s t a f f
John J. Spiekermeier, senior vice

president, as senior loan officer and in
charge of overall operation of the
H. George Poulson, promoted to
vice president and continuing in
charge of ag loans.
Tb assistant cashiers: Jon Carley,
in charge of the "Farm Plan” and
manager of Cassabanka Insurance
Agency; Mary Jendro, savings, and
Loree Schobinger, operations.

Marketing Officer Appointed
Brian Carey has been appointed
marketing officer at the Fargo Na­
tional Bank and Trust Company,
according to David D. Gordon, pres­
ident. Prior to his appointment at the
bank, Mr. Carey was a sales represen­
tative for Xerox Corporation and most
recently with Bankers Systems.

Washington Conference
North and South Dakota Bankers
Associations will visit the nation’s
capital April 26-28 for the 1983
Washington Legislative and Admin-

istrative Conference. The joint con­
ference will spend April 27 and 28 in'
briefings and dialogues with offi­
cials of the American Bankers As­
sociation, Federal Reserve Board,
Federal Deposit Insurance Corpora­
tion and Comptroller of the Currency.

Acquisition Approved
The Federal Reserve Bank of Min­
neapolis has approved an applica-^
tion by First Sharon Holding Com­
pany, Sharon, to become a bank
holding company through the acquistion of the First State Bank of

Advanced at Grand Forks
David J. Boliou has been pro­
moted to regional planning, opera- q
tions and financial officer for the
Northern North Dakota Region of
First Bank System Inc. Mr. Boliou
has been associated with First Bank
System Inc. since 1971 and has held 4 ,
positions at First Bank Minneapolis
and First Bank Worthington, Minn.
He will be stationed at First Bank of
North Dakota, N.A., Grand Forks.
Davidson remained in Windom until
joining Citizens Bank.

Two Men Are Promoted in
ABA Government Relations

Three Advanced at Sidney
Keith Robinson has been pro­
moted to senior vice president,
Diane Ford to cashier and Kae
Tihista to operations officer and
assistant cashier at Richland Na­
tional Bank and Trust of Sidney.
Mr. Robinson joined the bank in
1977 after several years as a na­
tional bank examiner with the
Comptroller of the Currency’s office.
He will be responsible for commer­
cial and consumer loans and loan
Ms. Ford, supervisor of bank
operations and responsbile for regu­
latory reporting, has been with the
bank since 1972. Ms. Tihista, who
joined the bank in 1976, has supervi­
sion of the secretarial staff and the
escrow department among her du­
for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis

The appointment of Jim Cash as
senior government relations coun­
selor and Denis O’Toole as senior
federal legislative counsel and direc­
tor of legislative operations were an­
nounced recently by Gerald M. LowAcquisition Approved
rie, executive director of govern­
The Federal Reserve Bank of Min­ ment relations of the American
neapolis has announced its approval Bankers Association.
of the application by Raldon, Inc.,
Mr. Cash, previously legislative
Billings, to acquire the voting stock director, will aid in the overall ad­
of the Powder River County Bank, ministrative functions of the gov­
ernment relations group. He joined
ABA in 1970, after having served as
Returns to Havre
principal legislative assistant to
Douglas Davidson has been Senator J.W. Fulbright. He had pre­
elected executive vice president, viously held posts with the Agency
senior credit officer and director of for International Development, the
Citizens State Bank of Montana, Federal Housing Administration,
Havre. Mr. Davidson’s career began the Senate Banking and Currency
in 1961 at the First National Bank Committee and the Civil Service
in Bozeman, where he advanced to Commission.
assistant vice president. In 1972 he
Mr. O’Toole, previously federal
was promoted and transferred to the legislative counsel, will have respon­
First National Bank in Havre. In sibility for coordination and man­
1977 he became president and chief agement of Congressional liaison
executive officer of the First Na­ and development of specific lobby­
tional Bank in Windom, Minn. Mr. ing plans on each issue.

Four Named in Casper
The following employees of First
Interstate Bank of Casper, N.A.,
• recently have been promoted:
Mark E. Vincent, who joined the
bank in 1971, has been elected vice
president and chief financial officer.

and cashier. He has a Masters degree
in finance from the University of
Wyoming and has five years of exper­
ience with banks in Casper and

Resigns at Glenrock
E. Rube Rider recently resigned as
president of Security Bank of Glen­
rock. Named as interim president was
Don Pfaff, vice president. Mr. Rider
had been vice president of Hilltop
National Bank in Casper for five
years before joining the new bank in
Glenrock. He has 25 years of banking



Heading the accounting depart­
ment is newly-elected vice president
and comptroller Elenor Jeffres.
A bank employee since 1977, Ken
Simms has been elected assistant
vice president.
And a Casper native, Mary M.
McNeill, has been elected student
£ loan officer.

R. H. Durfee Killed
In Hunting Accident
Richard H. Durfee, 54, president of
Sundance State Bank, Sundance, was
accidentally killed last month when
his gun discharged as he crawled
through a fence while hunting alone.
0 He was a native of Sundance. He
started in banking with the Union
State Bank in Upton, but returned to
the Sundance State Bank in 1964.
When his father retired in the early
# 1970s he succeeded him as president.

Wheatland Changes
Jack Crews has been elected chair^ man of the American Bank of Wheat® land, succeeding D. L. Day, Jr., who
will remain on the board. Mr. Crews
is president of American National
Bank of Cheyenne.
Jeffrey Dove has joined the WheatW land bank as assistant vice president
Federal Reserve Bank of St. Louis

Hulett Stock Being Sold
Organizers of the newly-chartered
Hulett National Bank were still offer­
ing stock in the proposed bank to area
residents last month. The $100
shares, with a minimum of 10 shares
and a maximum of 500 shares per
holder, must be sold by March 1, 1983
to comply with startup rules imposed
by regulatory authorities.

ABA Names Community
Banker State Coordinators
The American Bankers Associa­
tion (ABA) Community Bankers
Council has announced the appoint­
ment of state coordinators to facil­
itate the flow of information be­
tween the council and the nation’s
more than 12,500 community bank
presidents and CEOs, according to
Larry A. Johns, chairman of the
Council and president of the Isabella
Bank and Trust, Mt. Pleasant, MI.
As two examples of new commun­
ity banker products now available
from ABA, Mr. Johns cited BANC­
TRAINING, a new video training
program for in-bank use, and Competitech, a monthly subscription
series containing easily-imple­
mented techniques and technologies
to improve bank performance.
“The state coordinators will have
a two-day communications mission,’’

Mr. Johns continued. “First, they
will help keep the bankers within
their state informed about the Com­
munity Bankers Council’s efforts on
their behalf, and second, they will
serve as conduits for bankers to
transmit their needs and concerns
back to ABA so that it may address
them. ’’
State coordinators from N orth ­
west ern B anker area are:
Region II
Illinois: Randall A. Killebrew,
president, First National Bank of
Region V
Montana: J. William Kearns, Jr.,
executive vice president, State Bank
of Townsend
Nebraska: James H. Oliver, chair­
man of the board, Commercial Na­
tional Bank and Trust Company,
Grand Island.
North Dakota: John McGinley,
president, American State Bank and
Trust Company, Williston.
South Dakota: John Lillibridge,
president, First Fidelity Bank, Burke.
Iowa: Ed Leahy, chairman of the
board and president, Northwestern
State Bank, Orange City.
Minnesota: William A. Sands, pres­
ident, Western State Bank, St. Paul.
Wisconsin: Larry S. Carson, presi­
dent, Lancaster State Bank, Lan­
Region VI
Wyoming: George W. Mcllvaine,
president, Saratoga State Bank,
Colorado: Donald R. Starnes, pres­
ident, Farmers State bank of Yuma.

Federal Reserve Reports
$16.5 Billion Gross Income
Preliminary figures indicate that
gross income of the Federal Reserve
Banks amounted to $16,520 billion
during 1982. More than $15 billion
in earnings was paid to the U.S.
Income of the Federal Reserve
System is derived primarily from in­
terest accrued on U.S. government
securities that the Federal Reserve
has acquired in the conduct of
monetary policy through open mar­
ket operations. In 1982, earnings on
such securities were up $942 million
over 1981, accounting for most of
the increase of $ 1,011 billion in
gross income. Income from Federal
Reserve services amounted to $390
million during 1982.
Northwestern Banker, February, 1983


New President Named
William F. Lloyd has been elected
president of Colorado National
Bank-South. Mr. Lloyd replaces
Dennis Peterson, who resigned re­
cently, according to Ivan R. Sweetman, chairman of the bank’s board
of directors. Previously vice presi­
dent and loan department manager
of Colorado National Bank-North­
east, Mr. Lloyd was also formerly
president of the Greenwood, Arapa­
hoe and Governors Ranch Industrial
Banks, members of the associated
Industrial Banks of Colorado.

Assume V.P. Roles
Barbara Engle and Sid Papedo
have been named vice presidents at
IntraWest Mortgage Company, for­
merly First Denver Mortgage Com­
pany, according to Robert G.
Boucher, president and chairman of
the board.

tions in the operations, personnel 0
and lending divisions.
Mr. Hutchens, a former Boulder
City Council member, joined the
bank in 1980. Before that, he was
director of personnel for Affiliated 0
Bankshares of Colorado.
Others promoted at the bank inelude: Kathleen M. Thomas, vice
president and manager of personnel;
Kay E. Solberg, vice president; 0
Richard P. Fogg, assistant vice
Ehrlich came to Cache National president and trust officer; Ronald
Bank in 1977 as an executive sec­ L. Smullins, assistant vice presi­
retary. In her new position, Ms. dent; Douglas D. Drohman, con­
Ehrlich will be responsible for all sumer loan officer, and Richard W. 0
marketing and business develop­ Lawrence, assistant vice president.
ment activities of the bank.

Denver Bank Opens
M arket N ational Bank, the
Alamo Plaza Building, 1401 17th
St., Denver, recently opened for bus­
iness. Bank President Jack Rudolf
said the Market National will be a
full-service financial institution
oriented toward the banking needs
of the many small to medium-sized
businesses in the lower downtown
Mr. Rudolf has named Loyd
Klemsz executive vice president and
Margo Nash cashier.

Grand Junction
Promotions Told

Advancements Told
R.K. Hudson, president of the Na­
tional City Bank of Denver, has an­
nounced the appointment of two
assistant vice presidents, Barbara
Hyde and Shirley Mueller, and three
officers: Ruth Roberts, Katherine
Loewen and Barbara McGovern.
Both Ms. Hyde and Ms. Mueller
joined the bank five years ago. Ms.
Hyde is responsible for teller opera­
tions, Ms. Mueller for bank accoun­
ting services. Ms. Roberts is a
marketing director, Ms. Loewen a
personal trust officer and Ms.
McGovern an operations officer at
the bank.

Jan Cox has been elected cashier Five Named Senior V.P.
Richard A. Kirk, chairman and
and Jack Kammerer has been ap­
Jerald E. Slocum, Harold E. pointed vice president and controller chief executive officer of United
Smethills, Jr., and Dennis D. Erick­ at the Mesa United Bank of Grand Bank of Denver, has announced the
son have been promoted by United Junction. Ms. Cox has been with the apppointments of Alvin W. Hagger­
Banks of Colorado, Inc., a multi­ bank since 1968. Mr. Kammerer was ty, Jerome M. Hause, Lawrence J.
bank holding company. Mr. Erick­ with IntraWest Banks of Grand Ricketts, Candice Rogers and Gil­
son, a 13-year veteran of the United Junction and Denver before joining bert L. Romero to senior vice president.
Banks’ system, becomes senior vice Mesa United Bank.
Mr. Haggerty joined UBD in
president-finance and treasurer. Mr.
1959 and most recently served in the
Smethills, corporate secretary for
resources/corporate planning divi­
the past year, also assumes the post Boulder Promotions Told
Walter A. Browning, Jr., has been sion. Mr. Hause, manager of the ^
of vice president-legal. Mr. Slocum,
who came to work for United Banks named chairman of the board and banking services division, has been "
in 1974, becomes senior vice chief executive officer of First Na­ with the bank since 1971. Mr. Rick­
tional Bank in Boulder. In addition, etts is the manager of United Bank
president-planning and marketing.
Kenneth W. Charlton was elected of Denver’s Executive Banking
president and J. Wayne Hutchens Group and has been with the bank
Promoted at Greeley
senior vice president.
since 1978. Ms. Rogers became
Ronald T. Hinman, president of
Mr. Browning joined the bank as director of marketing for the bank in
Cache National Bank of Greeley, senior vice president in 1972 and in 1980. Mr. Romero has 15 years of
recently announced the promotion 1977 succeeded Leo Hill as presi­ banking experience. He will con­
of Douglas L. Laubach to senior vice dent when Mr. Hill became presi­ tinue as United Bank of Denver’s 0
president, commercial loans, and N. dent of Affiliated Bankshares of Col­ cashier.
Joyce Erhlich to marketing officer.
orado, Inc.
The bank also announced that
Prior to joining the bank in 1981,
Mr. Charlton, formerly executive Matthew J. Lynett has been ap­
Mr. Laubach was a commercial lend­ vice president, joined First National pointed vice president and Richard
ing officer with the First National Bank in 1966 as a management K. Dehn assistant vice president. 0
Bank of Arizona in Phoenix. Ms. trainee. He held a variety of posi- Both bankers joined UBD in 1979.

Denver Bankers Promoted

for FRASERBanker, February, 1983
Federal Reserve Bank of St. Louis




You m ay work late managing your bank,
but you don’t hds/e to w ork in the dark.

Colorado National Bank of Denver introduces the Financial
Management System to help you make the decisions today that
will affect your bank for years to come.
FMS is a software package developed and maintained byx
Littlewood, Shain & Company with a full array of asset/liability
management and financial planning tools. With this program you
can analyze your bank’s historical performance and project
profitability based on a wide variety of margin and growth
scenarios. Then, by program control, compare yourself to your
NBSS peer group (the way the regulators do!).
Examine your bank’s asset/liability mix by maturity, perform
margin, gap and spread analysis and determine your bank’s
vulnerability to rising or falling interest rates.
Then plan ahead!
This tool, combined with your good, sound judgement, gives
you the information you need to manage your balance sheet,
reduce risk and increase profits. Use it with your desktop computer
or access it through the timesharing terminal in your bank.
For more details on this low cost program package, contact our
Correspondent Banking Department.




imP §3
17th & Champa, Denver, CO S0217 • 303/893-1S62

v/M iim
Federal Reserve Bank of St. Louis


"O ur system has
in vested o v e r $160
m illio n in to the
c a p ita l lea sin g needs
o f the u p p er
m id w e s t.”
B en n ie G ates
U.S. N a tio n a l/
Lease N orth w est, Inc.

When your customer wants to
do more than their working
capital will allow, remember—
you can depend on US.
It’s not uncommon for correspondent banks
to have a number of good clients who want to
grow, but are held back. They’re using their line
of credit for working capital. They need a new
resource for capital equipment needs.
The U.S. National Bank, through the vast re­
sources of Banco’s Lease Northwest, can help
you help your customer. For whatever your cus­
tomers’ equipment needs-tax-oriented leases,
lease purchase contracts, or outright installment
purchases - there is a financing option available.
Lease financing. A good reason for corre­
spondent banks to depend on us.


For more information, call
Bennie Gates.

Main Bank
20th & Farnam
Regency Office
Central Park Plaza Office

Member FDIC
Affiliate of Northwest

Digitized Northwestern
for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis

US National Bank
of Omaha


a director of Citizens National Bank
of Wisner and North Side Bank of
Omaha. He is also on the board at the
Bank of Leigh.

Retired Banker Dies

Crawford and Swanton
Banks Change Hands
Charles R. Leffler, Sr., and his son,
Charles R. Leffler, Jr., sold the Bank
of Swanton last month and also an­
nounced their purchase of the Craw­
ford State Bank.
The Swanton bank was sold to
James D. Krantz, president of the
First National Bank in Bayard, who
will continue living in Bayard.
Thomas A. Bass will continue as pres0 ident at Bank of Swanton, Mr. Krantz
Mr. Leffler and his son purchased
the Crawford State Bank from Dan L.
and Alice Fisher, who are moving to
% Grand Island. Charles Leffler, Sr., has
been elected chairman and president
of Crawford State Bank. He said no
changes in personnel are planned at
the Crawford bank.
Mr. Leffler is chairman and his son
is president of Leffler Investment Co.,
Lincoln. Mr. Leffler also owns the
Sioux National Bank at Harrison,
where he is chairman, and Security
# State Bank in Holbrook, where
Charles Leffler, Jr., is president. Mr.
Leffler said his goal has been to con­
solidate his bank ownership in a more
geographically compatible area in
western Nebraska.
In addition to operating his three
banks, Mr. Leffler also is administra­
tive officer for First National Bank of
Omaha, working from his Lincoln
® office.

New Hordville Bank Opened
After 75 years in the same build­
ing, the First State Bank of Hordville
has opened a new bank across from
the old one. A recent open house,
hosted by bank President R.A. Dick
0 Anderson, debuted the facility begun
in December, 1981. The original bank,
chartered and built soon after the
town was founded, was much the
same in 1982 as it was in 1907; the
0 original counters and teller windows
were still in use, and the vault was

Federal Reserve Bank of St. Louis

the original one installed when the
doors were first opened.
R.C. Gustafson, who joined the
bank in 1918, was associated with the
facility until 1979 as president. Mr.
Anderson who has been associated
with First State since 1957, became
president in 1979.

Joins North Platte Bank
Gary Hodde has been appointed
vice president of the installment loan
department at First National Bank
and Thist Company, North Platte.
Mr. Hodde was
formerly with
F irst National
Bank of Lincoln
as collections
manager and has
an e x t e n s i v e
banki ng back­
ground in a num­
ber of areas in­
c l u d i n g l oan
analysis, install­
ment loans, agriculture loans and
customer service. During his banking
career he has held several adminis­
trative positions.
Mr. Hodde is a native of Milford.

Oshkosh Changes Reported
Donald L. Fecht and Cora Fecht
have retired from the Nebraska State
Bank, Oshkosh, after 36 years of
service each.
New officers at the bank are: W.S.
Olson, president; Gerald Bruning,
executive vice president, and Glen
Vincent, cashier.

Elected in Hallam
Tom Damkroger was recently elect­
ed to the board of directors and pro­
moted to assistant vice president at
the Hallam Bank. He joined the bank
in 1981.

Named to Directorships
Charles Mullenhoff, president of
the Bank of Leigh, has been named

Funeral services for Harvey B.
Koop, retired president of the Louis­
ville Home State Bank and former
Louisville city clerk, were held re­
cently. Mr. Koop was 85. He began his
banking career at the Home State
Bank in 1920 and retired as bank
president in 1977. He also served as
city clerk for 50 years, until 1971.

Joins Humboldt Bank
Randal Bums, 31, has joined Home
State Bank & Trust Co., Humboldt, as
executive vice president. Mr. Burns
has moved from Dundas, Minn.,
where he was chairman and president
of the $7 million asset Dundas State
Bank. He had been with the Dundas
bank for 10 years, serving as presi­
dent the past 18 months.
The Kotouc family, which owns the
Humboldt bank, also owns the State
Bank of Elk Creek and The Dawson
Bank, both of which are managed out
of Humboldt.

Leonard Ross Dies
Funeral services were held recently
in Norfolk for Leonard W. Ross, with
burial service at a Minneapolis
Mr. Ross was a native of North
Dakota, then lived in Sioux Falls
until completing his college work. He
began his banking career in Hensel,
N. D., became a bank officer at Platte,
S. D., then joined Live Stock National
Bank in Sioux City. He transferred to
First National Bank of Norfolk (now
Northwestern National Bank of Nor­
folk). Both banks are part of Banco.
Mr. Ross retired from the bank as
senior vice president in 1959 but
continued as a director until retiring
from the board in 1974.

Hershey Bank Addition
With grand opening ceremonies
scheduled for the first week of April,
work is well underway on the addi­
tion to the Hershey State Bank. The
new meeting rooms, offices and a
computer room will be occupied by
Agri-Credit Corporation. General
Constmction of North Platte is con­
tractor for the nearly 3,000 square
foot facility.
Northwestern Banker, February, 1983




Upon graduation from the Uni­
versity of Nebraska at Lincoln in
1973, Mr. Turille joined the bank as
a management trainee.
Mr. Barry, promoted to opera­
tions officer in the BankCard De­
First National Bank of Omaha Buchele, Rita Galus, John Langen­ partment, was most recently Bankhas promoted Eric S. Turille to vice feld and Ronald Sailors to opera­ Card’s accounting manager.
Mr. Buchele, who joined the bank
president and Joseph W. Barry, Mel tions officers.
in 1974, has been promoted to opera­
tions officer in the marketing
Ms. Galus and Mr. Langenfeld
also become operations officers in
the BankCard Department. They
joined the bank in 1965 and 1975,
Mr. Sailors, who has worked in the
computer industry since 1960, has
been promoted to operations officer
in the Communications and Systems
Programming Department.
* * *
R. John Burford, Jr., has been
named executive vice president of Se­
curity National Bank of Omaha. Mr.
Burford, who joined the bank in 1969,
First in Service to the Midwest.
has been vice president since 1978.
Other promo• M unicipal Bonds
tions announced
• Corporate Bonds
were: Gary Pe­
• Government Agency Bonds
• Listed and Unlisted Securities
president to vice
• Fiscal Agents
president; Paul
Shirley from
vice president to
For c o m p le te in v e s tm e n ts e rv ic e y o u can rely on...
vice president
The Midwest’s Investment Professionals
and cashier; C.L.
Landen I I I from R.J. BURFORD JR.
assistant cashier to assistant vice
president; Charlene Meyen to assis­
tant cashier, and Terri Kuemmerle
Member New York Stock Exchange, Chicago Mercantile Exchange
to assistant cashier.
and other Principal Stock and Commodity Exchanges.
* * *
Municipal Bond Department, 100 Continental Building
M. David Klipsch, president of
Omaha, Nebraska 68102 / (402) 444-1900
First Westside Bank, Omaha, has
the promotion of three
vice president.
Diane M. Piccolo, assistant vice
Lincoln, Omaha, Grand Island, Hastings, Columbus, Shelby, Plainview, Nebraska.
president and manager of teller oper­
Des Moines, Atlantic, Cedar Rapids, Fort Dodge, Marshalltown, Iowa.
ations, was first elected an officer in
Kansas City, Missouri • Wichita, Kansas • Chicago, Illinois • Houston, Texas.
1978; Sharon J. Rueschoff, a bank
employee since 1960, is assistant




for FRASERBanker, February, 1983
Federal Reserve Bank of St. Louis

Jim Flodine, Fred Kuehl, Don Ostrand, Ralph Peterson, Charles Leffler.

Trust your correspondent
*banking to our efficiency experts.


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In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at
800-228-9533. Member FDIC


Nebraska News

Statement of Condition
DECEMBER 31, 1982
Cash on hand and due from banks......................................................... $ 12,416,000
Treasury, Federal Agency and Government guaranteed obligations . . . .
Municipal bonds.....................................................................................
Loans and discounts.............................................................................
Federal funds sold and securites purchased under
agreement to resell.............................................................................
Banking house, furniture and fixtures.....................................................
Other a sse ts...........................................................................................
Toal a sse ts......................................................................................... $148,097,000

Deposits ................................................................................................ $ 87,314,000
Capital s to c k ...........................................................................................
Surplus ..................................................................................................
Undivided profits and other reserves.....................................................
Federal funds purchased and securities sold under
agreement to repurchase....................................................................
Other lia b ilitie s.......................................................................................
Total liabilities ...................................................................................

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, Senior Vice President
Marvin C. Kelley, Senior Vice President
James R. Riha, Senior Vice Pres, and Comp.
Robert L. Schilke, Cashier
Helene M. Lesac, Assistant Vice President
Thomas M. Stoker, Assistant Vice President
Terence J. Tvrdik, Assistant Vice President
Donald F. Holst, Assistant Vice President
Patrick Conway, Assistant Vice President
Mary Gibbs, Trust Officer
Karen Lee, Bond Investment Officer
Virgil Wiesner, Bond Investment Officer
Gerard Schmidt, Loan Officer
Dolores O’Connor, Facility Manager
Mary Thompson, Personnel Officer
Timothy P. Galvin, Credit Officer
Diane Bidrowski, Auditor
Michael Drahota, Investment Banking Officer
Mary Herzberg, Bond Investment Officer
Terry Reiff, Bond Investment Officer
James P. Harding, Loan Officer

John C. Barry
Stephen Beachler
M.W. Dunlap
Donald E. Dworak
Don Ellison
Jeff Gerhart
David Jacobson
Russell E. Kendall
Laddie J. Kozeny
James McCabe

Andrew McMullen
Paul L. Merker
Thomas F. Riedmiller
Joe Roh, Jr.
Guy L. Saunders
Gene Stanosheck
Rudy Stoysich
Lloyd Van Cleef
Rodney Vandeberg
Dennis R. Wood
Gary D. Wrage

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vice president and manager of the q
bank’s bookkeeping department,
and Alan W. Stone, assistant vice
president, is head of the personal
banking department.

Returns to Plattsmouth
Lori Schneider has returned to her
native Plattsmouth to join the staff of
Plattsmouth State Bank as assistant
cashier, thus becoming the fourth
generation of the Schneider family to
be associated with the bank. She
received her Master of Business Edu­
cation degree in 1981 from Arizona
State University and has been em­
ployed at the Houston Association
of Credit Management in Houston,
Tfex., until resigning to return to

Three Advanced at Columbus
Harold J. Luchtel, president of the ||>
Columbus Bank and TLust Company,
announced that Robert C. Labenz has
been named executive vice president
and Arthur Klug vice president of the
bank. Mr. Labenz, who holds a Juris
Doctor degree from the College of
Law at Lincoln, joined the bank in
1977. Mr. Klug began work as an
assistant cashier when the bank
opened in 1935.
In addition, Donna Meierding has
been promoted to customer service

Advanced at Falls City
Rod Vandeberg, president of the
First National Bank and Thist Co.,
Falls City, has announced that Merle 0
Veigel, senior vice president and trust
officer, has been promoted to execu­
tive vice president. Mr. Vandeberg
also announced that Ed Jackson has
been promoted to operations officer. 0

Named at Grand Island
Jerry A. Piper has been appointed _
assistant vice president in the real w
estate division of Commecial Na­
tional Bank and Trust Company,
Grand Island. Mr. Piper has 18
years of financial experience and ^
most recently was employed by the
Morris Plan of Iowa. It was also an­
nounced that Thomas G. Damkroger has been promoted to assistant
vice president from a ssista n t 0

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N B C C e n te r, 13th & O S t., L in c o ln , N e b ra s k a 68508, T ele p h o n e (402) 472-4321 / M em W ef*fpm (?rn Banker, February, 1983
Federal Reserve Bank of St. Louis

nounced seven officer promotions at
its December board meeting.
Promoted to
vice presidents
were: Mike Don­
nelly, employee
benefit trust adm inistrator;
Rich Filbert,
trust operations
Tom Henning,
c o rre s p o n d e n t
o ffic e r ;

Janice Durflinger, Paul Wendell
and A. John Walters have been named
vice presidents at First National
Lincoln Corporation.
Ms. Durfling­
er joined First
National in 1966.
In her present
pos i t i on
ma r k e t s
bank’s automa­
ted systems to
banks in Nebras­
ka and surroun­ J. DURFLINGER
ding states.
A University of Nebraska grad­
uate, Mr. Wendell has also worked
with the automated products sold to
banks since he started with First
National in 1965. He was Burroughs
Corporation sales representative
prior to joining the bank.




Mr. Walters, formerly an assis­
tant vice president and investment
officer, will continue to market in­
vestment products. He began his
career at First National in 1974.
The bank also announced that
Gerald D. Ficke has been promoted
to commercial banking officer in the
commercial banking division.
* * *



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Maurice Lange, general services
department, and Dave Lebsack, de­
positor services department.
Promoted to assistant vice presi­
dents were: Rick Berkheimer; dealer
services department, and Janet
Stenberg, trust administration of­
* * *

Vice President



for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis


Thomas Donald Clabaugh, inter­
nal auditor with Commerce Group
Inc., Lincoln, has been recognized as
a chartered bank auditor by Bank
Administration Institute. Mr. Cla­
baugh, a Commerce Group Inc.
employee since 1978, was one of 143
internal bank auditors to qualify for
the CBA certification this year.


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13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Member, F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983


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Federal Reserve Bank of St. Louis

L.C. “Bud” Pike, pres., Grundy Center
N. Milner, exec, v.p., Des Moines

3 Promoted at Sioux City
R.E. Hagen, president of Security
National Bank, Sioux City, has an­
nounced the following promotions:
Richard A. Waller, senior vice presi­
dent, financial
services; David J.
Holub, vice presi­
dent, marketing
services, and Lois
A. Boone, vice
president, retail
Mr. Waller has
served the bank
in several capa­
cities, including



as vice president of the retail banking
division. Mr. Holub, a bank employee
since 1970, was promoted from mar­
keting director. Ms. Boone, with the
bank since 1967, has served as senior
personal banking officer for the past
year and a half.
Other advancements at Security
National include: Michael D. More­
land elected senior investment officer
of the bank’s investment department
and Steve Corrie named to chairman
of the Asset/Liability Committee at
the bank.

State Conference Planned
The Iowa National Association of
Bank Women State Conference is
scheduled for June 1-3 at the Conway
Civic Center, Waterloo, with lodging
at the new Holiday Inn downtown.
"Strategies for Success” will cover
such topics as mergers, acquisitions
and regulatory legislation and will
include a session on leadership train­
Federal Reserve Bank of St. Louis

ing. The registration fee will be ap­
proximately $125.

Named at Davenport

first job after graduation in 1929 with
Pocahontas State Bank. In 1937 he
joined the Iowa department of bank­
ing as an examiner, was on leave from
1941 to 1946 to serve in the Armed
Forces, then rejoined the department.
In 1954 he resigned as an examiner to
become president of Lake City State
Bank, serving in that position until
his election as chairman in 1979.
In 1965, Mr. Goodyear was appoint­
ed by then Gov. Harold Hughes to a
four-year term on the state banking
Mr. Goodyear was honored by the
board and staff of the bank and many
area residents at an open house held
in his honor upon his retirement.

First Trust and Savings Bank,
Davenport, has made one promotion
and elected two officers, according to
David A. Shem, president. Ramona Retired Banker Dies
Hann, a bank employee since 1970,
Leo L. Jones, 74, retired auditor
was promoted to assistant vice presi­ from the First National Bank, Fort
dent and loan review officer from Dodge, died recently after an illness
assistant cashier and manager of the with cancer. In 1927 Mr. Jones attend­
credit department. Karen Bonis, ed Fort Dodge Business College and
manager of the bank’s Cumberland began a career with the bank that
Square Office, has been given the spanned over 45 years. He retired
added title of assistant cashier. And in 1974.
Marcia Johnson, most recently man­
ager of the new accounts department Dubuque Banker Promoted
at the main office, has been named
Linda L. Budde has been appointed
customer services officer.
real estate loan officer-manager of the
real estate loan department at First
Joins Dixon Office
National Bank of Dubuque. Ms. Bud­
First Thist and Savings Bank of de, who joined the bank in 1981 as a
Wheatland has announced that Mar­ real estate mortgage originator, was
tin L. Jacobs has been named assis­ previously associated with Banco
tant vice president and branch man­ Mortgage Company where she spe­
ager of the First Ihist office at Dixon. cialized in VA/VHA financing.
Mr. Jacobs, formerly a representative
with Farm Bureau Insurance, was Named Trust Officer
more recently an agricultural loan
Richard C. Stoufer has been ap­
officer with Creston Production pointed a trust officer of the Council
Bluffs Savings Bank. A Council
Bluffs native and graduate of the
Bill Goodyear Retires
University of Nebraska at Omaha,
Wm. M. Goodyear retired Decem­ Mr. Stoufer has been an auditor for
ber 31 as chairman of Lake City State the Council Bluffs Savings Bank and
Bank, completing a career of 53 years a comptroller for the Banks of Iowa
as a banker. Mr. Goodyear took his Inc.

1983 Iowa Group Meetings

Feb. 20-21
May 9
May 10
May 11
May 12
May 23
May 24
May 25
May 26

Cedar Rapids
Des Moines
Council Bluffs
Fort Dodge
Clear Lake
Northwestern Banker, February, 1983


Iowa News

Cedar Falls Bank Office Opened

Become Bank Officers

Resignation Announced

GRAND OPENING ceremonies were held recently for the new Westside Office of First National Bank,

Cedar Falls. The new facility has two drive-in lanes, a drive-up ATM, three inside teller stations, loan and
new account areas as well as a safe deposit vault. This is the third office for First National.


Jeanette Hugo and Linda Hesley
have been named officers of the First
State Bank in Britt. Ms. Hugo, who
joined the staff 23 years ago, becomes
assistant cashier. Ms. Hesley, the
bank’s new data processing officer,
has been with the bank for eight


Thomas S. Martin, who has chosen
to pursue other interests, recently
resigned as president of the First
State Bank of Mapleton. He had been
with the bank since 1972 and had ®
been president for the last two years.
Mr. Martin will be replaced by Neil
Kirby, who was also elected to the
board of directors.

Ankeny V.R Named
Two Des Moines Men Buy
University Bank in Ames
Larry Wenzl and Richard O. Jacob­
son, both of Des Moines, have com­
pleted the purchase of the University
Bank & Thist, Ames, from Duane
Sandage and Richard Stark. Mr.
Wenzl was elected Chairman and Di­
rector and Mr. Jacobson a Director.
Mr. Wenzl stated a one bank hold­
ing company is in the formation,
which will include other investors, of
which several are Iowa independent
banks which will allow both owner­
ship and sharing of services between
numerous banks.
Mr. Wenzl is currently chairman of
Hawkeye-Capital Bank & Thist, Des
Moines, on a part-time basis through
1983, and has other bank interests
in Iowa and Illinois. Mr. Jacobson
is in the warehouse business in
Des Moines.
Mr. Wenzl announced the promo­
tion of Wayne C. Wilson from vice
president to senior vice president and
head of the lending division. Robert
O. Grathwohl, president and chief
executive officer, said all other officers
and staff will continue in their pre­
sent positions.

previously worked for the Federal
Land Bank Association of Spokane,

Advanced at Cedar Rapids
Peoples Bank and Thist Company
has announced the promotion of
Joseph F. Starcevic and Peter B.
Welch from assistant trust officers to
trust officers. Promoted from assis­
tant cashier to assistant vice presi­
dent were Marc C. Moeller, manager
of Peoples Bank Newhall, and
Richard A. Paterson, manager of Peo­
ples Bank Westdale Mall. Further,
the bank has named James L. Spears
assistant cashier of the installment
loan department and David E. Wilson

Banker Elected to
Natural Heritage Foundation
Rod Amlie, president of Commer­
cial State Bank in Pocahontas, has q
been elected to the Iowa Heritage
Foundation, an organization that
raises funds to preserve wildlife land
in Iowa. Mr. Amlie is also chairman of
the board of Farmers National Bank f
in Webster City and has other busi­
ness interests.

Advanced at Indianola

New Bank Manager

The Warren County Brenton Bank
and Thist Company of Indianola has
promoted Norma Harmison and Beth
McGeough. Ms. Harmison, who joined
the bank in 1971, was appointed vice
president, loans. Ms. McGeough, who
came to the bank from Cedar Falls
Thist and Savings Bank in 1974, was
named assistant vice president.

New manager of the Moravia ®
branch of the Iowa Thist and Savings
Bank is Hilda Walter. Ms. Walter, who
has been with the bank for 18 years,
replaces Jack Lee, who retired at the
end of 1982.

Fort Dodge Promotions Told

Named to Newton Board

Stephen M. Warwick has been pro­
moted to trust officer and Roger L.
Blanchfield has been advanced to ag­
ricultural loan officer at the First
American State Bank. Prior to joining
the bank in 1981, Mr. Warwick was a
member of an accounting firm in
Rapid City, S.D. Mr. Blanchfield, who
also joined the bank in 1981, had

W.E. (Bill) Shields has been named
to the board of directors of the Jasper
County Savings Bank, Newton, ac­
cording to Denis G. Wilcox, bank
president and CEO. Mr. Shields is
well known in Central Iowa as an
auctioneer and for his association
with the Colfax Livestock Sales Com­
pany Inc.

Digitized Northwestern
for FRASER Banker, February, 1983
Federal Reserve Bank of St. Louis

Dean Minor, chairman of the board
of Ankeny State Bank, Ankeny, has
announced the promotion of Gerald T. <§
Fehn to vice president. Mr. Fehn
joined the bank in 1972 and recently
had served as assistant vice president
in the labor department.

Dale Smith Retires from
UCB Greenfield Board
Dale C. Smith retired at year-end •
from the board of directors of United
Central Bank of Greenfield. He has
served on the board of the bank (for­
merly Adair County State Bank)
since January, 1974.
Mr. Smith was associated with
United Central Bank of Des Moines
for about 45 years until his retire­
ment five years ago as executive vice



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Tim Mercer

Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983


 Banker, February, 1983
Federal Reserve Bank of St. Louis


Know your
Or else.




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The trick to keeping your customers loyal,
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Contact us today for an appointment.
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For more information call BICS marketing
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Banks of Iowa Computer Services oc:
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983


Iowa News

Bill Carr to Address
Area Bankers in March
The Northwest Iowa Technical Col­
lege in Sheldon has scheduled a twohour session on "Insurance Needs for
Banks” at the school on March 9.
James Dye, coordinator/business,
trade and indus­
try for NITC,
said Bill Carr,
vice president of
Iowa Bankers In­
surance Services,
Inc., Des Moines
has been invited
to present the
p ro g ra m th a t
will review the property and casualty
coverages needed by banks.
Mr. Carr has 23 years of experience
in planning property and casualty
coverages, having served 15 years
with Continental Insurance Co. be­
fore joining IBIS in April, 1975.

Two New Directors Named
Paul Johnson, president of the Iowa
State Bank, Algona, has announced
that Bette Gilmore and W.R. (Rex)
Thylor has been appointed to the
bank’s board of directors. Ms. Gilmore
is a longtime resident of Algona and
the widow of former vice president
and director E.J. Gilmore. Mr. Thylor

is also a longtime resident of the
Algona community and has been in­
volved in several Algona businesses.

Promoted in Tipton


Bruce Stedronsky has been hired as
loan officer at the Holstein State
Bank, Holstein, according to bank
President Wayne Hettinger.
Mr. Hettinger also announced that
the bank will start a remodeling pro­
gram which will include new offices
and enlargement of the teller area
and lounge and director’s room on the
second floor.

Glenn W. Eaton, 62, a director of
the Tipton State Bank for the last 14
years, died January 2nd. At the annu­
al meeting of the stockholders of the
bank last month, Otto E. Kruse,®
M.D., was elected to fill the vacancy.
The following promotions also were
R.L. Lehmeier, vice president, is
also now trust officer.
M.C. Cord, cashier, is also now
assistant trust officer.
Diane Chambliss, assistant cashier,
is also now manager, installment loan

Elected at Hills Bank

Named to Board

Ray Glass and Tim Smith have
been promoted to assistant vice presi­
dents at Hills Bank and Thist Com­
pany in Hills, it was reported by John
R. Hughes, president. Also, Wayne
Beck and Sandra Harmes have been
elected assistant cashiers.
Mr. Glass joined the bank in 1979
and presently is a loan officer in the
bank’s Iowa City office. Mr. Smith
went with Hills Bank and Thist in
1980 and is presently a loan officer
and marketing director at the main
bank. Both new assistant cashiers
joined the bank in 1980 and are loan
officers, Mr. Beck at the main bank
and Ms. Harmes in Iowa City.

Kenneth D. Bicket, Reinbeck, has
been appointed to fill the vacancy on q
the Lincoln Savings Bank board
created by the recent death of J.
Harold Miller. He has been a full-time
bank officer at LSB since 1947.

Loan Officer Named,
Remodeling Announced

Muscatine, Iowa

DECEMBER 31, 1982

Cash and Due from B a nks......................................
United States Government Securities.....................
Other B onds............................................................
Federal Reserve Bank S to c k ..................................
Federal Funds S o ld .................................................
Net Loans................................................................
Bank, Parking Lot, Office and Fixtures...................
Other Assets ..........................................................
Total Assets

$ 10,454,000.00
11,731 ’ooo.00


Capital ....................................................................
Surplus ....................................................................
Undivided P ro fits.....................................................
Other Liabilities and Deferred Taxes.......................
Securities Sold Under Agreement to
Repurchase .........................................................
D eposits..................................................................
Total Liabilities


Advanced in Newton
Diane Plumb has been named new
accounts-customer service coor­
dinator, and Jane Wolf has been
named data processing supervisor of®
First Newton National Bank. Ms.
Plumb joined the bank in 1976 and
Ms. Wolf in 1978.

Changes Told


Elliott C. Lee has retired as execu­
tive vice president and cashier of the
First National Bank in Le Mars, after
19 years with the bank. Randall ^
Johnson will assume the position
vacated by Mr. Lee.

Honored in Parkersburg
Bob Kluiter, vice president and ®
cashier at Parkersburg State Bank,
was recently named the town’s "Out­
standing Citizen” for his active in­
volvement in the community.

Boone Banker Retires
Warren E. Clark, vice president of
Boone State Bank and Thist Com­
pany, has retired, President Robert F. q
Scott announced. Mr. Clark joined the
bank and its board of directors in


C.D. OBERWORTMANN, Chairman of the Board
GEORGE A. SHEPLEY, President and C.E.O
CHARLES S. BULLOCK, Executive Vice President
ROBERT A. LOTHRINGER, Sr. Vice President
ROBERT P. SOLHEIM, Sr. 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

 Banker, February, 1983
Federal Reserve Bank of St. Louis

L.G. SULZBERGER, Vice President & Cashier
E.S. “ KELLY” BURNS, Vice President
JO MERCER, Vice Pres. & Secretary
JOHN VOLKMAN, Asst. Vice President
JAMES V. PULLIAM, Asst. V.P.— Mgr. Mall Office
JANICE METZGER, Assistant Vice President



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Northwestern Banker, February, 1983


Iowa News

Appointed Controller
Roger A. Jenks
has been appoint­
ed controller at
Toy N a tio n a l
Bank of Sioux
City. Prior to join­
ing Tby National
Bank, Mr. Jenks
was a s s is ta n t
vice president of
operations at the
U n ite d S ta te
Bank of Cedar Rapids. A graduate of
Upper Iowa College, Fayette, la., he
has eight years of auditing experience.

To Buy Mt. Pleasant Bank
Banks of Iowa, Inc., Des Moines,
will acquire the Henry County Sav­
ings Bank, Mount Pleasant, during
the fourth quarter of this year pend­
ing regulatory approval and approval
of the Banks of Iowa Inc. board of
directors. Holmes Foster, president of
Banks of Iowa Inc., has announced
that no changes in personnel or the
board of directors of Henry County
Savings Bank are contemplated.
Henry County Savings Bank had
assets of approximately $60 million
on Sept. 30, 1982. Banks of Iowa had
consolidated assets of approximately

$1.5 billion on the same date. Banks
of Iowa currently owns all of the
outstanding stock of 11 banks and
Banks of Iowa Computer Services,
Inc., Cedar Rapids.
The acquisition announcement was
made by Mr. Foster and Robert L.
Norris, president of Henry County
Savings Bank.

Harlan National Bank
Announces Promotions
R.W. O’Bryan was advanced to the
presidency of Harlan National Bank
at year-end, succeeding Robert S.
Ross, who retired. This was in line
with plans announced last May when
Mr. Ross told the board of his desire to
take early retirement.
The board also approved these pro­
motions: Clifford H. Hanson to senior
vice president and continuing as cash­
ier; Wayne Lytle from ag loan officer
and Warren Oldberg from assistant
vice president, both to vice president;
Peggy Hess, assistant cashier, and
Dave Gude, both to assistant vice
president, and Steve Ohlinger elected
assistant cashier.
Mr. Ross, 51, has been with Harlan
National since 1959 and was elected
president in January, 1981.
Mr. O’Bryan was graduated from

Committed to
making your
bank stand
apart from the

 Banker, February, 1983
Federal Reserve Bank of St. Louis

the University of South Dakota in
1959 with a BS degree in business. He
went to work that year with North­
west Bancorporation, working first
for Northwestern State Bank in
Dodge Center, Minn., then transfer­
ring to First Northwestern National
Bank in Winona, Minn., in 1962. He
joined the Harlan National Bank in
1967 and was elected executive vice
president in January, 1981. He is a
graduate of the Iowa Ag Credit School
at Ames.

S&L Will Convert to
Federal Savings Bank
The Central Federal Savings Asso­
ciation of Chariton has taken action
to convert to a federal savings bank
according to its president, David
McCabe. This is the second Iowa
thrift to announce such a conversion.
Last month United Federal Savings
& Loan of Des Moines revealed its
application to become a federal sav­
ings bank. Both will continue under
Federal Home Loan Bank supervision
and FSLIC coverage.
This type of change was authorized
by Congress December 15 and per­
mits thrifts to offer essentially the
same deposit and loan services as
commercial banks. Both thrifts will
continue presently as mutuals.
Central Federal was chartered in
1938 and has offices in six other
locations — Corydon, Lamoni, Green­
field, Osceola, Indianola and Des
Moines — all of which may be re­
tained under FHLBB regulations.

Helgerson Retires from
Iowa Banking Department
Austin Helgerson retired at yearend from the Iowa banking depart­
ment after 33 years of service with
the department. He started his career
there December 1, 1948, as an assis­
tant examiner, became a junior ex­
aminer in 1954, then was appointed
senior trust examiner, a new position
in the department, in 1958.
He resigned July 1, 1963, to join
Valley National Bank of Des Moines
as a trust officer, but returned to the
banking department exactly one year
later as trust examiner.
In subsequent promotions he be­
came senior bank examiner in 1967,
and was moved into the headquarters
office in 1969 where he has served for
the past 10 years as an assistant to
the superintendent.
Mr. Helgerson will continue mak­
ing his home in Des Moines.


s e r v ic e s a t A m e r ic a n
T r iis t a n d S a v in g s
Anyway you slice it, Correspondent Banking is
better with American TVust and Savings.
Our Correspondent Banking Team is sharp.
Together they offer you over 100 years experience.
They have the inside track on banking regulations
and rules. And they can assist you in providing
your customer with a full-range of specialized
banking services.
Behind every good Correspondent Banking
Tteam is a great Trust Department, like ours. It’s
fully-staffed with experts who prepare inflation­
fighting programs for personal and professional
These ingredients combined mean service and
growth for your bank and for your customers. Help
yourself to great Correspondent Banking Services by
calling Bemie Miller, American Trust’s
Correspondent Banker at 319/582-1841. He has the
recipe for success.

S e r v ic e s :
Over-line loan participation
Depository for excess funds
Bond investment counseling
Domestic and foreign wire
transfer of funds
Currency and silver procurement
ACH (Automatic Clearing House
Cash letters
Custom HR-10s
Keogh prototypes
Corporate profit sharing plans
Tkx shelters
Unincorporated pension plans

B em ie Miller,
C orrespondent B anker
3 1 9 /5 8 2 -1 8 4 1

American CTrust & Savings Danl^
The Bank^of O pportunity

Town Clock Plaza, Dubuque, Iowa 52001 • 319/582-1841
Federal Reserve Bank of St. Louis

Member FDIC and FRS
Northwestern Banker, February, 1983


Eddie A. Wolf, senior vice presi­
dent and head of the correspondent
bank department at United Central
Bank of Des Moines, N.A., conclud­
ed a 42-year banking career with
that institution on January 31 when
he took early retirement at age 62.
Mr. Wolf was
known through­
out the state of
Iowa by hun­
dreds of bank­
ers. He has head­
ed the depart­
ment for nearly
12 years.
A native of
Lake Okoboji,
Mr. Wolf grad­
uated from Arnolds Park High
School and came to Des Moines for a
two-year accounting course of stud­
ies at the American Institute of Bus­
iness. He joined United Central
Bank (then Central National Bank)
on January 31, 1941, as a messen­
ger, progressing through the oper­
ations areas of the bank. His bank­
ing career was interrupted at an ear­
ly stage for three years of service
with the United States Navy in
World War II. He returned to the
bank immediately following his war­
time duty.
From 1947 to 1958, Mr. Wolf was
manager of the bank’s transit
department. He was transferred to
the correspondent bank department
in 1958 and was made an assistant
cashier in 1961. He was advanced to
assistant vice president in 1965 and
to vice president in 1970. In May,
1971, he was named head of the cor­
respondent bank department to suc­

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

ceed Dale C. Smith, who moved into
senior management of Central as ex­
ecutive vice president (now retired).
During his earlier years with the
correspondent bank department,
Mr. Wolf worked under the tutelage
of Arthur T. Donhowe, one of Iowa’s
veteran correspondent bank officials
and long-time director of Central
National. He continued that train­
ing under Mr. Smith, who followed
Mr. Donhowe as department head.
Mr. Wolf is a graduate of the Iowa
Bankers Association Ag Credit
School at Iowa State University,
Ames, and the Graduate School of
Banking at the University of Wis­
consin, Madison.
He and his wife, Ardie, will con­
tinue to make their home in Des
Moines at 7202 Maple Drive, 50322.
* * *
David N. Walthall, president of
Hawkeye-Capital Bank & Thist, an­
nounced that the bank has moved
into the first phase of its $3.5 million

remodeling project at its main bank q
location, East 5th and Locust.
On January 10, the existing driveup teller lanes were closed and the
new drive-up bank was opened. Entry
will be from Locust Street. F o u r^
lanes will be available, with the in­
nermost lane for commercial custom­
ers and three express lanes for retail
Extensive remodeling in the bank’s £
lobby now has begun. 'Temporarily,
the teller and new accounts areas will
move into the new addition. They will
be accessed from the new front en­
trance on the comer of East 5th and ®
Locust. When the current lobby re­
modeling is completed, both the teller
and new account areas will be perma­
nently located in the existing lobby.
The general contractor for the®
Hawkeye-Capital project is the Weitz
Company. Mechanical and electrical
sub-contractor is Stroh Corporation.
Equipment for the new drive-up bank
was purchased from Mosler. Es-®
timated completion date for the entire
project is June 1, 1983.
* * *
The Greater Des Moines Chamber
of Commerce recently named two®
men to its Iowa Business Hall of
Fame. They are John Ruan, chair­
man, Bankers Thist Co., and the late
W. Harold Brenton, who founded
Brenton Banks, Inc.



Donald Roby was appointed re­
cently by directors of the Federal
Home Loan Bank Board in Washing- ®
ton D.C., to be president of the Feder­
al Home Loan Bank in Des Moines,
which serves 218 member thrift in­
stitutions in Iowa, Minnesota, Mis­
souri, South Dakota and N orth®
Mr. Roby, 53, formerly was presi­
dent and chief executive officer of



Our goal is to meet all of your
correspondent bank needs now and in
the future. We know that as your bank
grows and changes, you’ll need special
services and counsel on how to deal with
rapidly changing technology and regula­
tions. We can provide those services and
counseling but we’re not sitting behind
our desks waiting for you to come to us.
In order to meet your needs —

whatever they may be — Lending...Cash
Management... Investments... Farm ... TYust
...Data Processing, we want to meet with
you...on your own turf, and discuss
what we can do for you. Today, no bank
can afford to satisfy your needs by merely
opening its doors each morning.
If you do need some answers now,
call one of our Correspondent Bankers at

LOCUST AT 6TH, DES MOINES, IOWA 50304 (515) 245-7111
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1983

Iowa News
First Federal Savings & Loan Associ­
ation of Minneapolis. Prior to 1977 he
worked 13 years at the FHLB in Des
Moines. He is a native of Osceola and
a graduate of Drake University. He
succeeds Dean Prichett, who retired
at year-end after 15 years as head of
the Des Moines bank.
* * *

used to introduce the bank’s new
theme of “NOW’S THE TIME.”
Each year the Bank Marketing
Association conducts an advertising
competition among its members and
recognizes 35 banks for creative ex­
cellence. The winning commercials
are shown at the Annual BMA Con­
vention, this year held in Phoenix,
Steven B. Barger, director of sales Ariz. The bank’s advertising agency
and marketing for Hawkeye Bancor- is Chuck Ruhr Advertising, Inc. of
poration, has been selected as one of Minneapolis.
six marketing executives to serve on
Bank Marketing Association’s Gain­
ing and Professional Development Merger Completed
Council for 1982-83. The council
The Centerville National Bank and
serves the needs of BMA marketing Seymour State Bank merger, effective
executives involved in bank training. in December, 1982, has created
He is the only midwesterner on the
Hawkeye Bank and Thust, National
Association. The impending merger of
* * *
the banks was first announced last
United Central Bank has received July by Paul Dunlap, president of
the “ 1982 Best of TV Award” for its Hawkeye Bancorporation.
Assets of Hawkeye Bank and Thust,
television commercial entitled
“Baker/Banker.” This television N.A., exceed $67 million.
The two banks will continue in the
commercial was first aired in Des
Moines in May of this year and was same locations with the same person-

I as

Robert F. Malmberg has served as
chairman of the board of the two
banks and is now chairman of the
new bank.

Joins Spencer Bank
Tbm Manley has joined United Cen- ^
tral Bank in Spencer as a marketing
officer. Mr. Manley, a representative
for Woodmen Accident and Life Com­
pany since 1972, will be marketing
bank services and financial products q
and may also work in commercial

Statement of Condition
DECEMBER 31, 1982



Cash and Due from B a n k s ....................... .
U .S. Government S e c u ritie s...................
Municipal B o n d s....................................
U .S. Agency Bonds ..............................
Other Securities Including $288,000
Federal Reserve Bank S t o c k ...............
Loans, Net of Unearned Discount
($1,18 0 ,0 0 0 ) ....................................
Reserve for Possible Loan Losses
Federal Funds Sold and Securities
Purchased under Agreements
to R e s e ll............................................
Banking House, Furniture and Fixtures ..
Other A s s e t s ..........................................

$ 14,309,000
3 0 ,110 ,0 0 0
5 ,3 11,0 0 0
$ 17 8 ,14 4 ,0 0 0

Capital ............................................... . .
Surplus ..............................................
Undivided Profits ................................
Reserve for Contingencies ...................
Total Equity C a p ita l..........................
Provision for Taxes,
Interest and Expenses .....................
Other Liabilities ..................................
Interest Bearing Demand Notes
to U .S. T re a s u ry ..............................
Federal Funds Purchased and
Securities Sold under Agreements
to Repurchase ................................
Deposits ..............................................
TOTAL ............................................. . .


4 ,2 17,0 0 0
$ 13 ,9 77 ,0 0 0

7 ,19 1,0 0 0
15 3 ,5 3 1,0 0 0
$ 17 8 ,14 4 ,0 0 0

William G. Kruse

Craig R. Cordt

Dubuque Office

Paul L. Britt

Wayne A. Norman

Chairman of the Board and
Chief Executive Officer

Assistant Vice President
ILD Manager

C. Michael Reilly

Vice President,
General Manager
Toledo Stamping & Mfg. Co.
Dubuque Division

Planning and Development
Officer, University of

J. Bruce Meriwether

John J. Savary

Marketing and Business
Development Officer


Assistant Vice President
Manager North
Dubuque Office

Advertising and
Promotion Officer

Paul J. Gisch

Senior Vice P residentSpecial Lending
L. Richard Winter

Senior Vice President



President, Rhomberg Fur Co.
James E. Walsh

David W. Spahn

Mark E. Small

Assistant Vice President


Philip T. Kelly

Personnel Officer

Beverly J. Anderson

Daniel E. Welu

Gladys A. Hueneke

Assistant Vice President

Thomas J. Stecher

P. Jeanne Sinhold

Trust Department

Vice President— Operations

Real Estate Loan Officer

Mark J. Willging

Thomas W. Buelow

Linda L. Budde

Trust Officer

Vice PresidentLoan Administration

Real Estate Manger

Kenneth E. Weitz

Sara J. Candy

Trust Administration Officer

Leo M. Mallie

Personal Banking Officer

Cheryl M. Christ

Mary A. Piersch

President, Communication
Properties, Inc.
William G. Kruse

Chairman of the Board and
Chief Executive Officer
John W. Law

Chairman of the Board
John W . Law Co.
John K. Lawson

Trust Administration Officer

General Manager, John Deere
Dubuque Works

John M. Hansen

Personal Banking Officer
Manager Asbury Office


J. Bruce Meriwether

Vice President-Investments

Alan L. Schuster

Edward A. Babka


Richard A. Bean

Personal Banking Officer
Manager West

President, Babka
Publishing Co.

Vice President—
Agricultural Lending


Vice President— Finance

Roger J. Rhomberg

Paul J. Gisch

Senior Vice PresidentSpecial Lending

Vice President and Cashier

L) U D U Cj U 6 ,

 Banker, February, 1983
Federal Reserve Bank of St. Louis

Mary Jo Keating


President, Bird Chevrolet Co.
N.J. Yiannias

President, Dubuque
Theatre Corp.
President, Key City
Investment Co.

Waldo Adams
Frank A. Fluckiger
Charles J. Spahn
Catherine Winall


Iowa News


^ New Look for ITS Newsletter





Increased reader participation is a
key element in the ITS Current’s
format change beginning with the
April, 1983 issue. The newsletter’s
editors plan to introduce four new
features that draw almost exclusively
upon ideas and information submit­
ted by members. The changes, to be
implemented over the course of the
year, include a reader suggestion col­
umn entitled "ITS Ideas,” a guest
editorial feature, a letters to the
editor section and a feature called
"FYI,” which will include announcements of meetings, new products, rec­
ommended readings etc.
In addition to these features, the
ITS Current encourages members to
submit general articles regarding
EFT subjects. The articles should be
submitted no later than 60 days prior
to issue date.

Lenox V.P. Retires
After 42 years of banking, Leo M.
Kinnick has retired as vice president
of operations at the First National
Bank in Lenox. He joined the bank in
^ 1971. Prior to that, Mr. Kinnick was
assistant vice president of the Union
TVust and Savings Bank in Fort
Dodge. His banking career began in
1940 when be became a teller at the
^ Old Commercial Savings Bank in
Lohrville, la.

Acquisitions Told
United Central Bank & Thist Com­
pany of Algona has acquired the as­
sets and assumed substantially all
liabilities of both the Exchange State
Bank, Wesley, and Bode State Bank of
Bode. The acquired banks’ sharehold­
ers are receiving cash for their stock.
The former bank offices in Wesley and
Bode will house UCB of Algona. As­
sets of the Algona bank now approxi­
mate $65 million. United Central
Bancshares Inc., Des Moines, is the
parent company.

Three Named in Toledo
John C. Kavalier has joined the
State Bank of Tbledo, as executive
vice president. Mr. Kavalier was pre­
viously employed as a commissioned
bank examiner for the Federal De­
posit Insurance Corporation, Cedar
Rapids field office. Also, William R.
Skow Jr., who joined the bank in
June, was promoted to assistant vice
president and Janet K. Kucera was
promoted to assistant cashier.
Federal Reserve Bank of St. Louis

A former country banker and
currently vice president of the
Correspondent Bank Department,
Steve Hatz has a special understand­
ing of what community bankers
need in today’s marketplace.
Steve also has a personal com­
mitment to his correspondent bank
customers. They know they can
count on him to provide not only
the best in ag overline, data
processing and cash management
services, but the information, ad­
vice and guidance necessary for a
better, more profitable operation.
If that’s the kind of service
you’d like to be able to count on
from a correspondent banker, call
Steve Hatz at Security National
today 712/277-6554.


Sioux City, Iowa 51101 Member F.D.I.C.

Northwestern Banker, February, 1983


Iowa News

Building Plans Announced

of that facility. Mr. Zdychnec also
announced that in the next three to
four months the Burgason office will
move to the new downtown Ottumwa

Livermore State Bank. The resulting
bank will have over $60 million in
assets and a lending limit to anyone
borrower of over $500,000.
Livermore will operate as a full
service office and the name will be­
Board Member Named
come Hawkeye Bank and Trust,
Roy Cain, of Elwood, was recently Livermore office. The merger is sub­
appointed to the board of directors of ject to regulatory approval. Tferms of
the First Thist and Savings Bank. Mr. the purchase were not disclosed.
Cain is a former farmer and partner
of Hollingsworth and Cain of Lost Named to Bank Board
Gene Zuzich of Waterloo has been
elected to the board of directors of
Hawkeye Bank Humboldt to
the Evansdale State Bank, Evansdale, according to Richard K. Hansen,
Buy Livermore State Bank
Hawkeye Bancorporation has an­ board chairman, Mr. Zuzich operates
nounced the proposed merger of a fleet of trucks as an independent
Retirement, Promotion,
Livermore State Bank, Livermore in­ contractor for Kroblin Transportation
Relocation Announced
to H aw keye B ank and Trust, Systems.
John Zdychnec, president and chief Humboldt.
executive officer of First National
Livermore, located in Humboldt Remsen Appointments Told
Bank, Ottumwa, has announced the County is approximately eleven road
David R Strautz has been named
retirement of Hugh Stufflebeam as miles from Humboldt. It is proposed vice president and Dean Conrad cash­
manager of the First National Bank that Hawkeye Bank and Thist of ier at the First Thist and Savings
Burgason office, and the promotion of Humboldt will purchase the assets Bank, Remsen. Mr. Strautz had previ­
Donna D. TFenshaw as new manager and assume the liabilities of the ously been with the Farmers State
Bank in Marcus for ten years. Mr.
Conrad has been with the bank for
two years.
In addition, Dale Anderson has
Statement of Condition
named to senior vice president
December 31, 1982
Augustine to assistant
Planning a major expansion and
remodeling project this year, the First
State Bank of Fredericksburg has
reached an agreement with Richard
TfeKippe to purchase his building
located east of the bank. The building
presently houses law offices and the
Fredericksburg Review.
According to bank executive vice
president Dave Morris, the project
will eliminate crowded conditions
created by an increased volume of
activity. According to Mr. Morris,
plans call for the newly-purchased
building to be tom down and con­
struction to begin in the spring.

Farmers & Merchants Bank & Trust
Cash and Due from B anks.....................................................
U.S. Government B o nd s.........................................................
Municipal B o n d s....................................................................
Other B onds............................................................................
Loans and D iscounts............................................................
Bank B uilding..........................................................................
Furniture and F ixture s...........................................................
Federal Funds S o ld ................................................................
Other Assets ..........................................................................

Capital S to c k ..........................................................................
Surplus ...................................................................................
Undivided P ro fits ....................................................................
Unearned D iscount................................................................
Deposits .................................................................................
Securities Sold Under Agreement
to Repurchase................................................................
Interest Bearing Demand Notes
Due U.S. Treasury...........................................................
Other L ia b ilitie s......................................................................
W.B. Ditto, M.D.
James L. Kacena - Kacena Equipment, Inc.
Marshall J. Markey - Food Service & Dist. Co.
John McCulley - Oakville Feed & Grain, Inc.
R. J. Nachazel - Retired
M.A. Nordstrom - Chittenden & Eastman Co.
Melvin E. Raid - Retired
Gerald D. Smith - Brown Shoe Fit Company
C.H. Walsh - President
C.E. Walsh - Vice President
Bruce Werden - Retired
Joseph Wirt - Farmer

$ 4,071,000.00



C.H. Walsh, President
R.O. Youngstrom, Senior V.P and Tr. Off.
William A. Kuehn, Vice Pres and Farm Rep.
Leonard W. Lane, Vice President and Comp.
C.E. Walsh, Vice President
W.D. Schnirring, Assistant Vice President
F.W. Rentzsch, Assistant Vice Preident
Beverly N. Wuellner, Assistant Vice President
Paul L. Peterson, Assistant Vice President
Michael D. Eastin, Cashier
John T. Hanna, Assistant Cashier
Clair A. Penney, Assistant Trust Officer
Greg Strandberg, Assistant Cashier
Virginia Schramm, Loan Officer
Member Federal Deposit Insurance Corporation

 Banker, February, 1983
Federal Reserve Bank of St. Louis

Promotion Told
Dale Anderson has been promoted
to vice president and manager of First
Thist and Savings Bank, Remsen.

Elected Loan Officer
Jerome B. Kedley has been elected
a commercial-ag loan officer at
Camanche State Bank. Previously he
was with Continental Grain and
a PCA.

Advanced at Sioux City
Don Vaudt has been elected senior
vice president and division head for
the loan management area of Tby
National Bank. A native of Lohrville,
la., Mr. Vaudt joined the bank in 1970
and was promoted to vice president
and head of the commercial loan de­
partment in 1977.

Iowa News

0 Named to Board of Directors
Clifford D. Mortenson has been
elected to the board of directors of the
Cedar Falls Thist
an d S a v in g s
>Bank, according
to P a u l H all,
board chairman
and bank presi­
dent. Mr. Morten' son, a vice presi­
dent, has been
associated with
the bank for two c D MORTENSON
years. He was a
'senior bank examiner for the State
Department of Banking before joining
the bank.

»Joins Wilton Staff
Craig W. Symons, 25, has joined the
staff of Wilton Savings Bank, Wilton,
as manager of the motor bank and
agricultural loan officer. Before join­
ting the bank Mr. Symons served as an
agricultural loan officer and assistant
security officer at First National
Bank of Iowa, Marion.

Joins Cedar Falls Bank
George R. Mullins, formerly vice
president of the Evansdale State
£ Bank, Evansdale, has joined the com­
mercial loan department of Cedar
Falls Trust and Savings Bank Cedar
Falls, as assistant vice president.
Mr. Mullins has been in banking for
0 2 0 years.

IlB Offers New Service
Through its headquarters office in
•D e s Moines, the Iowa Independent
Bankers is offering a new service to
members in its concentrated effort
to keep Iowa banks independent. At
a recent meeting the I IB executive
•council adopted a resolution that
says, in part:
“It is recommended that the
Association act as a clearinghouse
for parties who are interested in ac­
q u ir i n g Iowa banks. Naturally,
these individuals must subscribe to
the principles of independent bank­
ing and should not be connnected
—directly or indirectly with multibank
^holding companies. It is suggested
that potential purchasers provide in­
formation in writing to the Associa­
tion concerning what type, size and
^location of banks they are interested
in acquiring. They might also wish
Federal Reserve Bank of St. Louis

to provide additional details regard­
ing their banking background and
ability to handle the financial re­
quirements of such a purchase.
“The Association will hold this
material on file, and, in the event a
member is contemplating sale, the
information regarding potential pur­
chasers will be provided upon re­
quest. After reviewing the informa­
tion forwarded by the Association,
it would then be the member’s re­
sponsibility to make any contacts
and negotiate the sale.


“The recommended arrangement
contemplates that the Association
would act only as a clearinghouse for
disseminating information between
potential buyers and potential
sellers. Neither the Association nor
its officers or staff will be involved
directly or indirectly in any sale
negotiations or proceedings.”
I IB Executive Vice President
Richard W. Berglund stressed that
this is a one-way service in that only
potential sellers will be given infor­

at close of Business December 31, 1982
Cash and Due from banks...............................................
Investment securities:
U.S. Treasury se curitie s.............................................
Obligations of other U.S. Government
agencies and corporations......................................
Obligations of states and political subdivisions.......
Total Investment securities................................
Federal funds s o ld ...........................................................
Loans, net of unearned incom e......................................
Less valuation reserve for loan losse s.......................
Total lo a n s ...........................................................
Accrued interest receivable............................................
Bank premises and equipment........................................
Other assets....................................................................
Total a s s e ts .........................................................



’ 57’o68

Demand deposits.........................................................
Savings dep osits.........................................................
Time deposits..............................................................
Total d e p o s its .....................................................
Securities sold under agreements to repurchase.........
Other short term borrow ings..........................................
Accrued expenses and other lia b ilitie s..........................
Total lia b ilitie s .....................................................
Stockholders’ equity:
Capital s to c k ..............................................................
Surplus ........................................................................
Retained earnings.......................................................
Total stockholders’ e q u ity ..................................
Total liabilities and
stockholders’ e q u ity ...........................................

$ 21,243,327
4 0 ,194,441

Dale K. DeKoster
Chairman of the Board & President
Commercial Division

E. James O’Connor, CCL
Senior Vice President
James R. Gerber
Vice President
Mortgage Division

Merle W. Rodgers
Senior Vice President
Robert V. Cooper
Senior Vice President
Consumer Lending Division

Robert L. Smith
Vice President

Deon Senchina
Consumer Loan Officer
David A. Mulnix
Consumer Loan Officer
Gary L. Dodge
Consumer Loan Officer
Agricultural Division

William D. Davidson
Vice President
Operations Division

Gerald J. Curran
Rick A. Thuesen
Donald N. Richards

Vice President
Betty M. Runyan
Assistant Cashier
Diane C. Kupferschmidt
Personnel Director
Anita M. Ward
Trust Division

Frederick Koch
Senior Vice President
& Trust Officer
Dennis E. Egel
Trust Officer
James E. Thielen
Assistant Trust Officer

West Park at Cedar, Waterloo, Iowa 50704
Northwestern Banker, February, 1983


Iowa News

Cross Selling...
(Continued from page 26)
techniques of “Take Five’’ itself,
Communication Skills and Time
Management. Dick Moore and Fred
Schott, a training consultant used
by Central States, present the
Dick Moore says, “ It might in­
terest you to know that the midwest
services per customer. We have al­
ready trained some 700 personnel
bankers and loan officers and many
of them have increased their aver­
ages from 1.5 to over two services
per customer.”
The seminars combine quality
materials, practical video and other
audio-visual aids, role playing and
lively discussions. A key factor in
Central States’ program, Mr. Moore
points out, is the follow-up given to
each bank by his staff. Part of the
program’s success is the records
kept to track usage of time, sales,
number of cross-selling presenta­
tions made and closed, and similar
information. Central States person­
nel sit down with department heads
and employees, review the records
and sales procedures again.
Banker’s Comment
Proof that the entire program
works is reflected in these positive
comments offered in a telephone in­
terview with J. Wallace Blatt, vice
president-installment loans at First
Interstate Bank of Casper, N.A., in
Casper, Wyo. A factor about “Take
Five and Prosper” that appeals to
him is that it offers the option of
customizing the suggested ap­
proaches to the personality of each
bank contact person. Mr. Blatt says:
“Each program builds confidence
back into our lending officers.” he
notes, “for it reminds them of the
elements that help sell services. I
find for myself that it helps me to
keep a positive attitude, making it
easier to sell credit insurance and
cross-sell the bank’s services.”
Mr. Blatt continued, “Each lend­
ing officer winds up using parts of
the total program to adapt to in­
dividual ability and personality.
They all find that when they have
the customer’s attention while loan
papers are being typed, they can
proceed to acquaint the customer
better with other bank services. I
think each of us develops a feel for

Northwestern Banker, February, 1983
Federal Reserve Bank of St. Louis

certain bank services we feel more
comfortable selling and I ’m sure we
push those first.”
Continuing on the overall value of
Central States’ sales training pro­
gram, Mr. Blatt said “using their
method has been helpful, especially
for younger and newer employees.
Five of us have had this training
program. We use the follow-up
charts and records faithfully to have
an accurate log of credit life and
credit disability sales. I know from
my own personal experience that
since I went through this program I
have increased my own sales at least
10% and I ’m sure we would find the
same with others. I know that over­
all in our department that of those
customers qualified for credit in­
surance, we sell credit life insurance
on 82% of our loans and credit
disability insurance on 70% of
them. ’’
Company Growth
“Take Five and Prosper” repre­
sents a sizable investment on the
part of Central States Health & Life.
A unique part of it is that it’s of­
fered to customer banks at no
charge. Asked if the program has
been worth the investment, Mr.
Kizer replied emphatically, “Yes,
we’re very happy with it.”
In addition to helping banks in­
crease their productivity by cross­
selling of bank services, Mr. Moore
points out that Central States is
achieving its own goal of increasing
its sales of credit life and credit
disability coverages in banks. In
1979 the company sold between $12
and $13 million in credit insurance.
In 1980 that figure dropped by 31%,
remained about the same in 1981,
then since “Take Five and Prosper”
was offered in October, 1981, credit
insurance sales through the com­
pany have increased 10%, represen­
ting a marked increase in market
penetration in 1982 despite a down

Osage Bankers Advanced
The following promotions were
made at a recent board meeting of
the Home Trust and Savings Bank
in Osage: Charles A. Young from
vice president to senior vice presi-

dent; Lamoyne D. Bonjour from f
assistant vice president to vice
president; Cheryl A. Hagen from
assistant vice president to vice
president; Harold E. McWilliams
from cashier to vice president and £
cashier, and Sharon Bechstum to
operations officer.

Appointment Told
Dean Ekstrand has joined the,
staff of Mahaska State Bank as a
loan represen­
tative. Mr. Ek­
strand, 23, will
be working with
farm customers
and a g r i b u s i ­
nesses on loan
supervision mat­
ters. A Pocahontas-area native,
he received a
B.S. degree in
agri culture from Iowa State Univer­
sity in 1981.

Acorn P rin tin g ..................................................................... 68
American National Bank & Trust, St. P a u l....................... 37
American Trust & Savings Bank, D ubuque...................... 71
Banctraining Video S y s te m s............................................ 9 ®
Bank of A m e ric a ................................................................ 5
Bank of North D a k o ta ......................................................... 47
Banks of Iowa Computer S e rvice s............................... 66-67
Bankers Trust Co., Des M o in e s ......................................... 62
Benchmark Computer Systems, O m a h a .........................14
Colorado National Bank, D enver....................................... 53
Continental Bank, C h ic a g o ............................................... 3 ^
Daktronics, Inc......................................................................10
Drovers Bank of C h ic a g o ...................................................15
Essex Inn, C h ic a g o .............................................................13
Farmers & Merchants Natl. Bk., B u rlin g to n ..................... 76
Financial Systems, Inc., K e a rn e y.....................................18
First Mid-America, L in c o ln .................................................5 6 ^
First National Bank, D ub u q ue .......................................... 7 4 9
First National Bank, L in c o ln ............................................. 61
First National Bank, M inne a po lis................................. 34-35
First National Bank, M u scatin e ......................................... 68
First National Bank, O m a h a ............................................. 57
First National Bank, St. P a u l......................................... 48-49
Gross, Kirk Co., W a te rlo o ...................................................79
HBE Bank Facilities, St. L o u is ........................................ 6 - 7 ®
In n e rlin e ...............................................................................33
Iowa Bankers Insurance & Services, Inc...........................69
lowa-Des Moines National B a n k ..................................... ,80
Kooker, E.F. & A s s o c ia te s ................................................ 76
Lincoln Benefit Life Co....................................................... 60
Merchants National Bank, Cedar R a p id s ........................ 2 ®
Mortgage Guaranty Insurance Corp..............................16-17
National Bank of Commerce, L in c o ln .............................. 59
National Boulevard Bank, C h ic a g o .................................. 30
National City Bank, M inn e a po lis...................................... 39
Northwestern Bell Telephone C om pany..........................11
Northwestern National Bank, M in n e a p o lis....................43
Office Concepts, W a te rlo o ................................................7 0 ®
Omaha National B a n k ................................................... 40-41
Packers National Bank, O m a h a ........................................58
Security National Bank, Sioux C it y ..................................75
UCB Leasing Corporation, Des M o in e s ..........................65
United Central Bank, N.A., Des M o in e s ..........................73
United States National Bank, O m a h a ..............................5 4 ^ |
Waterloo Savings B a n k ....................................................77

Tama 5tate Bank • Tama, lowa


4015 Alexandra Drive • Box 2097
Waterloo, lowa 50704
Phone 519-254-6641


Federal Reserve Bank of St. Louis

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