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Micros in banks A/L management with micro New products with micro Increased productivity Predicts housing starts up https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis *:Y -; v.^y-j,. *‘.V--^-V-— :*.:» ;v> ■ .SBH| :*<>•:•-.Wy-;■-• 'ISssSW siiSSiif • .^ ■■'■■'.i :r'--' /-• - Sp® ® # - I$liÉ#ÉÉÉf ig g M ^N É ■ ^ M l ip iiip l^ ..f M iis ¡li#lpl#t //Vy,l-‘ P S f e W liip l ■ fill É^IÉIP H H fiÉ M I H s l s w ® » -# g $ k f$ ra n ^ I M 9B M M K >xA M M #W gSM É&ÉÉ ^iiP M M M M is P££g$£M M ililililsllliilll ìMgmwÉmà ''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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member F.D.I.C. M is i A BANKS OF IOWA BANK 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.™ BANKof AMERICA Bank of America NT&SA • Member FDIC © Bank of America NT&SA 1982 https://fraser.stlouisfed.org 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 4 Continental Strengthens Credit Evaluation Process FEBRUARY 1983 • 90th Year • No. 1433 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES 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. 19 The m ighty m icro -co m p uter 20 M icros in banks Expert David Waldron looks at past, present and future. 21 A/L m an a g em e n t w ith a m icro How $90 million Omaha bank improves management analysis 23 N ew products w ith m icro Nebraska community bank develops, markets new programs OTHER FEATURES 18 Increased productivity Richard Moore discusses training plan for cross-selling 29 P redicts housing starts to be up MGIC Chairman Kendall sees 30% improvement in 1983 DEPARTMENTS 8 Calendar 12 Bank Promotions 31 Illinois 36 Minnesota 38 Twin Cities 46 46 50 51 52 South Dakota North Dakota Montana Wyoming Colorado 55 56 60 63 72 78 Nebraska Omaha Lincoln Iowa Des Moines Adv. Index NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Phone (515) 244-8163 Publisher & E ditor A ssociate Publisher A ssociate E ditor Consultant 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 Northwestern https://fraser.stlouisfed.org 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 mechanisms. 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 Currency. 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 VIDEO SYSTEMS™ BANCTRAINING is an on-going, quality video-centered train ing program for every employee of your bank. Training is 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). BANCTRAINING VIDEO SYSTEMS™ 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 letter and enrollment in special video training seminar) @ $1,400 annually INDICATE TAPE FORMAT: □ Vz" VHS □ V Î Beta I □ V2" Beta II □ V " U-matic (please add $47.50) □ Please send m ore information on the complete BANCTRAINING program plus money-saving “package prices” on video equipment. NAME BANK CITY https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Convention Calendar V 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, Houston. Colo. 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. Denver. 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. Orleans. 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. Atlanta. 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 Calif. 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. bus. 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 DigitizedNorthwestern for FRASER Banker, February, 1983 https://fraser.stlouisfed.org 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 Colorado: Sept. 21-24—Independent Bankers of Col orado Annual Meeting and Convention, Keystone Resort. Illinois: 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. Iowa: Feb. 16-18—IBA State Legislature Trip/ Leadership Conference, Des Moines Hyatt. 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. Minnesota: 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. Montana: 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- 9 Some 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. CONTINENTAL BANK 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 10 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. Nebraska; 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, Greenbriar. 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, Rugby. Sept. 28—NDBA Southwest Group Meeting, Dickinson. Sept. 29—NDBA Southeast Group Meeting, Ellendale. 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 Falls. May 16-17—SDBA Annual Convention, Con vention Center, Sioux Falls. Wyoming: June 16-18—WBA Annual Convention, Jackson Lake Lodge, Moran. BAI Offers New Certificate Program For Professional EDP Auditors DAKTRONICS ANK Administration Institute B 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- TIME & TEMPERATURE Our engineers will custom design a display to enhance the architec ture of your building. Color draw ing and quote at no cost. Call or write today - g CO “O I— Hull, Iowa Custom designed > Elmhurst, Illinois Attached display Warrensburg, Missouri Attached display Eagle Grove, Iowa Custom market report D DAKTRONICS, INC. DAKTRONICS, INC. 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 https://fraser.stlouisfed.org 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 committee. 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 loss.” 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. 11 Whoeversuggested 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 1 Executive. m Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 12 r Bank Promotions ROMOTIONS and other an P 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ver, have been elected assistant vice presidents. 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 ment. 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. 13 Graduate School of Banking Task Force To Identify Senior Management Needs A 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 ture. 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, Madison. 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 https://fraser.stlouisfed.org 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? CALL NOW FOR RESERVATIONS: 312/939-2800 Ask for Deli D ollars Or call toll-free 800/621-6909 ESSEX INN 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 14 IBAA Offers New Insurance Program HE Independent Bankers Asso T 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 $ CUT PROCESSING COSTS 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.” YOU CAN BANK ON BENCHMARK SERVICE BENCHMARK COMPUTER SYSTEMS 11236 D a ve n p o rt • O m aha, NE 68158 • 402/330-5040 Northwestern Banker, February, 1983 https://fraser.stlouisfed.org 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 Commission. 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# Development. 15 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 lightens. 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). MGIC 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I îmÊsÊÊm BankDisk ...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 BankDisk. A product of FSI Post Office Box 2012 Kearney, Nebraska 68847 Phone: 308-237-5998 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The mighty micro E computer * ...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 B _ 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 https://fraser.stlouisfed.org 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 20 t Micros in banks Past • Present • Future Written especially for The N orthwestern B anker By DAVID WALDRON Financial Systems, Inc., Kearney, Nebr. EING a vendor in such a fast moving industry as B 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 decision. •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 Northwestern https://fraser.stlouisfed.org 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 disappointment. 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 vironment. 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) Management Analysis $90 million bank improves A/L management with a micro A N orthwest ern B a n k er interview w ith RICHARD L. NORBY KEN CHAMPAGNE and Vice President Auditor First Westside Bank, Omaha, Nebr. SING the micro-computer as a management tool U 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 fers.’’ ® 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 https://fraser.stlouisfed.org 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 22 “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 wide. 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 https://fraser.stlouisfed.org 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. □ 23 The might 3 micro computer ® Products & service Community banker scores with new consumer products A N orthwest ern B anker interview with RAYMOND G. TIEDJE, President and KEVIN OLSON, Vice President Bank of Norfolk, Norfolk, Nebr. S YOU enter the office of Independent Community A Bank Network (ICBN), boldly displayed is the 0 following phrase as a reminder to Vice President Kevin • ^ 9 ^ ^ ^ ® ® ^ 9 Olson. “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 selves. 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 education). 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 https://fraser.stlouisfed.org 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 24 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. Olson. ^ 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 https://fraser.stlouisfed.org 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. □ 25 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 '^ CREDIT MARKETING 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 market...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. DISK S T O R A G E ^ APPLE APPLE III ^>M BM PC 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 https://fraser.stlouisfed.org 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 computers. These are exciting times that we live in and new technology will accelerate change in all of our lives. The key is learning...you 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 26 Increasing productivity by cross selling A N orthwestern B anker interview with RICHARD J. MOORE Vice President Central States Health & Life Co. Omaha, Nebr. MPROVED productivity is a goal Isegments 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 “Take Five” has the psycholog following an established tenet of sel ical connotation of taking five ling—your greatest prospects come minutes out every so 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. Qualification, Presentation and To help meet this urgent need, an Close. 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 https://fraser.stlouisfed.org 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 staffs. 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 CROSS SELLING... (Turn to page 78, please) 27 w R.L. MC CORMICK J.D. HERRINGTON P.H. BRINGGOLD J.R. TAYLOR K.A. GUENTHER President 1st Vice Pres. 2nd Vice Pres. Treasurer 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 M 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 P. MARTIN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R.T. MC ÑAMAR 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 computer. 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 Americans. 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. □ WM. ISAAC D.L. BOREN F. CAPPIELLO Northwestern Banker, February, 1983 28 BMA Announces Several Staff Changes ENNIS J. Hillen, a financial D 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 D.J. HILLEN 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 T 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 areas. 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 B DigitizedNorthwestern for FRASERBanker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ty of your officers and pay them ac- £ cordingly? 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 ment. 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 Market.” 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. f 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 of ^ 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 borrowings. 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- 29 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 explained. 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, 1983. 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 development. Predicts housing starts in 1983 will be up 30% • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 30 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 Boulevard Bank 410 N. M ICHIGAN AVE„ C H IC A G O , IL 60611 Northwestern Banker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ONE ILLINOIS CENTER [111 E. W acker), CHICAG O , IL 60601 (312) 836-6500 • MEMBER FDIC 31 r Illinois 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 the Mid-City National Bank in 1965. month by the Illinois Bankers Asso He 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 two children are residents of Down accounts. The folder contains three ers Grove, Illinois. In addition to tear-out postcard already addressed directorships with Mid-Citco, the to the two senators and represen Mid-City Bank and the First Na tative in a bank’s congressional tional Bank of Morton Grove, he is a 0 district. Extensive initial response director of the West Central Asso was reported, and meshed with a na ciation in Chicago. 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 Thomas 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. JD. HENDERSON 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONEYCARD of Kansas 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 MONEYCARD ATMs. 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 Education. The council, an affiliate of the (national) Joint Council on Eco nomic E d u ca tion, is a non G.M. MORVIS 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 32 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 Northwestern Banker, February, 1983 https://fraser.stlouisfed.org 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 offices.” “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.” ^ d Q # # ® ® ® ® 33 FREE FOR ONE HOUR! •• Learn how you can get the inside track on your competition with a free one hour offer from InnerLine. ^ • In n e rL in e is u n iq u e . It's a n e w lo w -co st, c o m p u te r b a s e d b u sin ess in fo rm a tio n se rv ic e . E xclu siv ely d e s ig n e d fo r b a n k e rs, it g ives y o u in s ta n t ac c e ss to facts, figures, financial new s, tre n d s , analysis, e le c tro n ic m a il— a n d m o re . I ts th e h a r d w o rk in g , 2 4 h o u r - a - d a y p a r tn e r y o u 'v e b e e n lo o k in g for. A n d w ith In n e rL in e y o u d o n 't h a v e to b e a n e le c tro n ic e x p e r t to p u t th e p o w e r o f c o m p u te r - b a s e d in fo rm a tio n to w o rk fo r y o u . You ow e it to y o u rs e lf to ta k e a d v a n ta g e o f th is fre e o ffe r fro m In n e rL in e . Specifically, In n e rL in e h elp s y o u : # m • • • • • • Bid fo r fu n d s E v a lu a te p o rtfo lio p e r f o r m a n c e P ro s p e c t fo r n e w c o r p o r a te c u s to m e rs E n su re a c c u r a te lo a n p a r tic ip a tio n billing A n a ly z e y o u r c o m p e titio n M a k e b e t t e r p u rc h a s in g d ecisio n s • • • • S av e re s e a r c h a n d analysis tim e A c cess u p - to - th e - m in u te fin an cial new s C o m p ly w ith b a n k in g re g u la tio n s C o m m u n ic a te in s ta n tly w ith b a n k e rs th r o u g h o u t th e w o rld . J u s t call d ire c t ( n u m b e r listed b elo w ) o r m ail in th e c o u p o n w ith th e in fo rm a tio n re q u e s te d . In r e tu r n , y o u will re c e iv e y o u r sp ecial c o d e w o rd to a c cess In n e rL in e th r o u g h a lm o st a n y d ia l-u p te rm in a l, as well as e a sy d e ta ile d lo g o n in stru c tio n s. F o r in fo rm a tio n o n o u r fre e o n e h o u r o ffer a n d d e ta ils o n h o w In n e rL in e c a n g iv e y o u th e in sid e tr a c k o n y o u r c o m p e titio n , ju st m ail th e c o u p o n b e lo w fo r o u r fre e a n d in fo rm a tiv e b o o k le t, " T h e Inside T r a c k " o r call In n e rL in e to ll-fre e 1- 800 / 323 - 1321. In Illinois call 1- 800 / 942 - 8861. NB 283 InnerLine 60 Gould Center, Rolling Meadows, IL 60008 □ Please send me "The Inside Track” booklet. □ Please call me with details on your free one hour offer. Name________________________________________________ Tide_________________________________________________ . IM PERLINE. Bank/Company________________________________________ Address______________________________________________ City________________________________ State____________Zip Code. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Telephone. Northwestern Banker, February, 1983 If your primary correspondent doesn’t call as often as you’d like, call First Bank M inneapolis« aL r 9K*ai ■ 1* *., IB8t IMI PSPNfi- & J j M j p K $ $ f e Alflt M Sa i / v i; ., •"*' fss» v^|4^,, / * 1 i ■^pw ^_1 M ^^SpK K ^^B m tm n l H ilf f l n^. H i ^ H S ^ « ,r ' * lip ippjr a -i| J r W J vt f tm PU K ^ • ’■¿vs.- ; M^ JpZ -iik. P t e g & f c jIKh r . --j 4 . Tgr \ *• ^gf t t \ " J H tfS H L ■ ^ i i i i l W I dU3 T i 1 ■ **ngg*v* w?*gjjp 0 I M M *^MWL' " .v B US 1 m .. ■"•• Jr# Ip»*'IJvjfr 9>| at * ib jpJ 6; <v- 4* X W* https://fraser.stlouisfed.org ','yf .'^ *Reserve W ~7J~:• ’Bank of St. Louis ____ /*V-4jy ______ /, Federal . ( j ;■ j ' l ™ JE* ^ / $0t . ** i i I d jjjjgfc' |;j mJ 1 1I Jf ip ] 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, Minneapolis bond and money market specialists, ^ llr Correspondent Banking data processing professionals and Department cash management consultants in the First Bank Place Upper Midwest. Experienced people Minneapolis, MN 55480 trained to know you and your markets. 612/370-4762 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 ♦ ? ; wmIS/I IP ter SI :I L ... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VN 36 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.’’ Minnesota J.P . Ingebrand, pres., Mora T. L. J e ffe rs , exec. v . p . , M inneapolis Promoted in Cottonwood Marketing Conference Planned March 2 A 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 Pricing.” 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 Function.” 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 ident. DigitizedNorthwestern for FRASERBanker, February, 1983 https://fraser.stlouisfed.org 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 Boerboom. 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 F 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 complex. The complex has been designed by B.W.B.R. Architects, St. Paul, which has designed over 150 financial facil ities. Building completion is scheduled for the summer of 1984. O' • ® ® _ ^ ^ 37 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 American. We are particularly sensitive to the needs and A M E N A T I O N A L https://fraser.stlouisfed.org 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. R B A N K . I C A N S A I N T P A U L Northwestern Banker, February, 1983 38 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. R.P. FOUSSARD W.S. MARVIN 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. Paul. First Bank Robbinsdale has Mr. Marvin is chairman and chief elected Kent V. Stone and Patrick J. executive officer of Marvin Win Corrigan as assistant vice pres dows of Warroad, Minn. A past Mr. 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 office, * * * 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. K.V. STONE 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 P.J. CORRIGAN R.A. RANWICK mercial and real estate loan depart Northwestern Banker, February, 1983 https://fraser.stlouisfed.org 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 Q 0 0 ® Statement of Condition National City Bank (in thousands) December 31 1982 1981 Assets 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 15,200 $ 29,878 30,000 30,330 8,370 32,358 721 20,317 15,342 23,016 681 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 .................................................................................................................... 71,779 1,411 10,000 59,356 770 20,400 237,945 2,975 4,588 615 3,370 207,654 2,580 5,897 2,903 3,970 Total A ssets.............................................................................................................. $370,426 $363,408 $ 74,636 206,400 11,477 $ 75,713 131,294 72,905 Total D eposits.......................................................................................................... Federal Funds Purchased and Securities Sold Under Agreements to Repurchase.............................................................................. Other Borrowed Funds.................................................................................................... Acceptances Outstanding................................................................................................ Other Liabilities................................................................................................................ Subordinated N o te .......................................................................................................... 292,513 279,912 31,382 4,187 615 6,125 3,000 34,813 4,460 2,903 10,944 3,000 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;.............„ ................................. Surplus.......................................................................................................................... Undivided P ro fits........................................................................................................ 337,822 336,032 12,000 12,000 8,604 10,000 10,000 7,376 Total Stockholders’ Equity...................................................................................... 32,604 27,376 Total Liabilities and Stockholders’ Equity ............................................................ $370,426 $363,408 Liabilities & Stockholders’ Equity Deposits: 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 President, Chairman o f the Board and C hief Executive Officer Retired President President, Chairman o f the Board and C hief Executive Officer Regents’ Professor o f Economics James H. Hearon, III President 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 President, Chairman o f the Board and C hief Executive Officer Partner 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 NATIONAL CITY BANK 75 South Fifth Street • Minneapolis, Minnesota 55402 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone 612-340-3000 Member F.D.l.C. Northwestern Banker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Your ag financing partner. For more than a century; Omaha National has furnished capital for agricultural growth. We're committed to assisting banks throughout our region in your efforts to meet the rapidly increasing financial needs of your customers. We've been successful at providing conven tional loans and at developing unique methods of financing for your customers. And we offer you a talented team of correspondent officers with experience in both finance and agriculture — so that we can serve as effective partners with you and your customers in determining the best financing package. Omaha National has the financial tools to meet the needs of your agricultural customers. Tb discover how we can help you serve your customers better, contact your Omaha National representative or call (402) 348-6565. Omaha National Banl^ 17th & Farnam • Omaha, N ebraska 68102 • M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New Branch Opens in Miami A.J. MANGAN 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. Northwestern Banker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R.L. STEHLIK D.F. MAETZOLD 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 tomers. W.J. RIKKERS 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 cil. 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 THE 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 jvÆ2/%j _ /f" communi ryj iSTATE BAXÉl 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 Alexandria. __ -~<*»*«•**. ".-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. CORRESPONDENT BANKING DEPARTMENT Northwestern National Bank Of Minneapolis SH O U LD N ’T WE TALK SO M ETIM E ? a*»-™ - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ?10Hl 44 Minnesota News Citizens State Bank was the 48th largest bank in Minnesota. It now becomes the 17th largest bank in the state. * * * 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 keting. Also as part of J.E. FOSS J.K. LUKASKA 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. America. * * * 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 https://fraser.stlouisfed.org 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, Minnesota. *** J.E. BARRY R.L. NELSON 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, J.G. GEIKEN 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 45 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. 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 bank 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, Montana. ® 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 https://fraser.stlouisfed.org 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 46 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. V_________________ 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 South Dakota Bankers Association Western Bank, Sioux Falls. Mr. in 1938, a post held later in 1980-81 Roers, who joined the bank in 1981, by his only 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 tee. Among his other survivors are his wife, Muriel, whom he married in Centerville in 1927, and one daugh ter, Mrs. Martha Christenson, of J.E. ROERS C.H. BIEVER 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, r 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, Sioux 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 years. f 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. 373 post-secondary educational in Mr. Falconer began his banking Guaranteed Student Loans stitutions. 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 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank of North Dakota STATEMENT OF CONDITION December 30, 1982 LIBILITIES RESOURCES Cash and Due from Bank......................... U.S. Government Securities..................... $ 52,246,696.46 97,898,079.05 Federal Agencies Securities . Bankers Acceptances and Other Investments.............................. State and Municipal Securities............... Federal Funds S o ld ................................ Securities Purchased Under Agreement to Resell .......................... 79.587.947.60 111 I 111 Loans j I I» E E ¡§p Um - 35,482,396.83 18.357.010.60 207,150,000.00 1 is 25,365,600.00 is : 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............... ............... 7,064,707.12 1,403,792.64 173,225,637.34 17,919,556.30 187,356.43 159,360.18 9,379,337.80 12,460,938.80 100,703,854.49 2,005,570.13 5,012,860.99 TOTAL LOANS........................................ Accrued Interest Receivable................... Bank Building and Equipment................. Unamortized Bond Issue C osts............... Other A sse ts.......................................... TOTAL RESOURCES.............................. 329,522,972.22 11,707,394.' 1,404,107.82 1,019,130.885,939,978.15 $865,681,314.54 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 .. t' i** 1 1# 1 Il TOTAL DEPOSITS........................ Fed. Fds. Purch. & Sec. Sold Under Agreement to Repurchase Accrued Interest Payable Other Liabilities Long Term Debt— Mtg Bonds Reserves................... Capital Surplus................. for 64 years 530,278,588.31 238,060, 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 & TOTAL LIABILITIES, RESERVE & CAPITAL . . . North Dakota Growth 27,886,168.11 393,268,314.88 421,154,482.99 10,242,629.50 Undivided Profits .. pf 9,259,904.88 701,982.33 1,168,344.46 33,192,472.86 62,173,843.41 2,627,557.38 $109,124,105.32 $865,681,314.54 nkof orth Dakota 700 Main Street P.O. Box 1657 Bismarck, 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: ALLEN I. OLSON Governor Robert O. Wefald H.L. Thorndal Kent Jones Attorney General President Commissioner of Agriculture https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 48 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 # DigitizedNorthwestern for FRASERBanker, February, 1983 https://fraser.stlouisfed.org 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) 291-5659. First Bank Saint Paul Member First Bank System Investment Services Group 332 Minnesota Street Saint Paul, Minnesota 55101 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 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 promotions: John J. Spiekermeier, senior vice president, as senior loan officer and in charge of overall operation of the bank. 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 Slated 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 Sharon. ^ 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 review. 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 ties. DigitizedNorthwestern for FRASER Banker, February, 1983 https://fraser.stlouisfed.org 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 Broadus. 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 Cheyenne. 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 experience. M.E. VINCENT E. JEFFRES Heading the accounting depart ment is newly-elected vice president and comptroller Elenor Jeffres. q 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. 0 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 https://fraser.stlouisfed.org 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,’’ 51 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 Petersburg. 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 caster. Region VI Wyoming: George W. Mcllvaine, president, Saratoga State Bank, Saratoga. 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. Treasury. 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 52 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 area. 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 DigitizedNorthwestern for FRASERBanker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i I ; , I Ip* ! 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. %|p. 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. mwrrto | | ¡0 cnb | COLORADO NATIONAL BANK OF DENVER imP §3 17th & Champa, Denver, CO S0217 • 303/893-1S62 v/M iim https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 "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. ONU.S. For more information, call Bennie Gates. 402/536-2310 Main Bank 20th & Farnam Regency Office Central Park Plaza Office Member FDIC Affiliate of Northwest Bancorporation Digitized Northwestern for FRASER Banker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis US National Bank of Omaha 55 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. 0 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 stated. 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. 0 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 0 https://fraser.stlouisfed.org 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 G. HODDE 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 cemetery. 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 56 J.G. LANGENFELD R.L. SAILORS 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 department. Ms. Galus and Mr. Langenfeld also become operations officers in the BankCard Department. They joined the bank in 1965 and 1975, respectively. Mr. Sailors, who has worked in the computer industry since 1960, has been promoted to operations officer E.S. TURILLE J.W. BARRY M. C. BUCHELE R.M. GALUS 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 terson from • Government Agency Bonds assi st ant vice • 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 FMA president; Charlene Meyen to assis S IP C 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 announced the promotion of three STOCKS, CORPORATE, MUNICIPAL AND GOVERNMENT BONDS, officers to asisstant vice president. OPTIONS, TAX SHELTERS AND COMMODITIES. 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 Omaha F IR S T M ID A M E R IC A IN C . FIRST MID AMERICA INC. DigitizedNorthwestern for FRASERBanker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jim Flodine, Fred Kuehl, Don Ostrand, Ralph Peterson, Charles Leffler. Trust your correspondent *banking to our efficiency experts. ^ • These superb professionals are dedicated to meeting all your m individual corres- ■ pondent needs. Call us for details on electronic data processing, # https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I cash letter processing, overlines, fed fund transactions; or any ■ other correspondent M service. We’ll show you how friendly efficiency can be. first n a tio n a l b a n k of omaha In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at 800-228-9533. Member FDIC 58 Nebraska News Statement of Condition DECEMBER 31, 1982 ASSETS Cash on hand and due from banks......................................................... $ 12,416,000 Treasury, Federal Agency and Government guaranteed obligations . . . . 9,735,000 Municipal bonds..................................................................................... 13,476,000 Loans and discounts............................................................................. 54,021,000 Federal funds sold and securites purchased under agreement to resell............................................................................. 52,550,000 Banking house, furniture and fixtures..................................................... 2,507,000 Other a sse ts........................................................................................... 3,392,000 Toal a sse ts......................................................................................... $148,097,000 LIABILITIES Deposits ................................................................................................ $ 87,314,000 Capital s to c k ........................................................................................... 200,000 Surplus .................................................................................................. 800,000 Undivided profits and other reserves..................................................... 8,115,000 Federal funds purchased and securities sold under agreement to repurchase.................................................................... 50,278,000 Other lia b ilitie s....................................................................................... 1,390,000 Total liabilities ................................................................................... 148,097,000 OFFICERS Russell E. Kendall, Chairman of the Board Laddie J. Kozeny, Vice Chairman of the Board Dennis R. Wood, President Donald E. Dworak, Executive Vice President W.D. Bowen, Senior Vice President Donald E. Thompson, Senior Vice President Thomas K. Grove, 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 BOARD OF DIRECTORS 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 packers national bank m n 402-731-4900 Or TOLL FREE In Nebraska 800-642-9980 4710 South 23rd Street DigitizedNorthwestern for FRASER Banker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omaha, Nebraska 68107 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 Plattsmouth. 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. (flf In addition, Donna Meierding has been promoted to customer service officer. 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 cashier. “I need a correspondent banker who’ll work as hard for my bank as he does for his own.” That’s just what a working relationship with NBC offers. If you judge them by their ads, correspondent banks look quite a bit alike. But the banks w e serve are looking for m ore than a friendly smile and a passing know ledge o f their special problem s. They’re looking for a professional partnership they can co u nt on. O ur w orkin g relationship involves all the traditional correspondent services plus program s that are uniquely ours: from custom ized bank cash m anagem ent services, to a clearinghouse for banking forms, to financial planning softw are packages for banks and their custom ers. Vital contact includes our “ News & Views” executive letter citing industry trends and changing regulations. In to d a y’s co m p etitive financial market, you need that kind o f su p p o rt from yo u r correspondent. Call us to hear m ore about w hat our clients mean w hen they say, “ NBC w orks for m e.” SC /J O i,# # '' The Correspondent Banking Division of National Bank of Commerce 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60 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 department; Tom Henning, c o rre s p o n d e n t bank 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 she ma r k e t s the bank’s automa ted systems to correspondent 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. R. FILBERT P. WENDELL A.J. WALTERS 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. * * * M. LANGE D. LEBSACK National Bank of Commerce an- Call Steve Sutton For Complete ^ Credit Insurance Service . . . Call Toll Free in Nebraska 800-742-7335 or call collect 402-475-4061 Bank Programs for GroupHndividual Life*Accident & Sickness R. BERKHEIMER Steve W. Sutton Where BENEFIT is more than a middle name Lincoln, Nebraska 68508 J. STENBERG 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 ficer. * * * Vice President LIFE LIN CO LI DigitizedNorthwestern for FRASER Banker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M DONNELLY 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. 61 Specialists in fulfilling your every correspondent need... GARY L. BIECK Vice President & Manager Correspondent Bank Division MARK HAHN Correspondent Bank Officer STEVEN L. ANDERSON Vice President KATHY M. VOTAW Correspondent Bank Officer CURT DENKER Correspondent Bank Officer MARVIN HEFTI Correspondent Bank Officer CHARLES R. ELLIS Correspondent Bank Officer llllimRillllll FIRST NATIONAL LINCOLN 13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501 Phone: (800) 742-7462 Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 62 Talk over your invest ment needs with us and let us help you m ake prof itable decisions. We're Bankers Trust, where Iowa's future grows! Com e Grow m |r| I C T WithUs 11 U w l Des Moines, Iowa 50304 Member: FDIC/Federal Reserve System Iow a’s la rg e st locally ow ned, In d ep e n d en t b a n k Use our to ll-free WATS lin e: 800-362-1688 DigitizedNorthwestern for FRASERBanker, February, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa 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 banking. Mr. Waller has served the bank Ml in several capa R.A. WALLER cities, including D.J. HOLUB L.A. BOONE 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ing. The registration fee will be ap proximately $125. Named at Davenport 63 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 board. 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 Credit. 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 Group 11 8 4 7 6 5 12 2 3 Date Feb. 20-21 May 9 May 10 May 11 May 12 May 23 May 24 May 25 May 26 City Burlington Davenport Cedar Rapids Waterloo Des Moines Council Bluffs Okoboji Fort Dodge Clear Lake Northwestern Banker, February, 1983 64 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 years. • 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, Wash. 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 auditor. 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 https://fraser.stlouisfed.org 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 president. ® 65 DOHIGHIHTERESTRATES HAVEYOURCUSTOMERSDOWN? If the answer is yes, then NOW’S THE TIME to look at the competitive advantage for your bank...your own leasing company, which can offer your customers a low cost alternative for financing the equipment they need but have delayed purchasing. Today’s high interest rate environment has put a real strain on your customer’s cash flow, and has probably reduced their ability to qualify for loans. By offering your customers the ability to lease, they will improve their cash position and will be able to increase their borrowings f r o m y o u r b a n k . By operating y o u r o w n leasing com pany, you will enhance your relationship with your customer and broaden the range of services you offer. UCB Leasing Corporation is familiar with and experienced in meeting the needs of banks and their customers. We have the expertise to assure that your venture into leasing gets started right. And, we will direct your full documentation in the critical areas of accounting, marketing and tax sheltering. If you are concerned about your cus tomers, your bank’s shrinking loan portfolio and loss of market share, you need to investigate the leasing alternatives. NOW’S THE TIME to call (without obligation) Bill Ranes or Tim Mercer at (515) 245-7222 to find out how UCB Leasing can help you and your customers. Bill Ranes Tim Mercer ucb UCB LEASING CORPORATION AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC. LOCUST AT SIXTH, DES MOINES, IOWA 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 66 Banker, February, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 Know your customers. Or else. 0 ^ ^ # Look around. Banking has become one of today’s most competitive businesses. Your customers are being wooed by every financial institution in your market area. The trick to keeping your customers loyal, and to increasing your profits, is knowing as much about them as possible and keeping that information updated daily. Unfortunately, complete up-to-the-minute customer profiles are rare. Background in formation is often gathered randomly and stored in many different places, making it difficult to obtain for useful purposes. Until now. Until Banks of Iowa Computer Services Central Information File (CIF). With Banks of Iowa Computer Services’ CIF, complete information on your custom ers can be obtained in moments, either on a display terminal or as hard copy. The operative word is exhaustive. Since every possible piece of information gathered is centrally stored, you have immediate access to such things as the status and history of a given customer’s account and his account relationships. The businesses he’s in and how they’re doing. And any pertinent family information. This information is critical in making quick, knowledgeable, profitable decisions. CIF is the most economical, efficient and sensible way to gather a n this information and to use it for increased profits. D o n ’t kid yourself. There aren’t many new customers around. What you need to do is expand the ways your existing cus tomers use your bank. Because a lot of other financial institutions would like them as customers. And are trying to get them. Can you trust your customers? Yes — if you can trust your information retrieval system. And that means CIF Contact us today for an appointment. We’ll be glad to explain our system at your convenience. For more information call BICS marketing at (319) 395-6600. Banks of Iowa Computer Services oc: A “ BANKS OF IOWA” SUBSIDIARY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 68 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 q 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 made: 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 department. ® 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 F IR S T N A T IO N A L BA NK O F M U S C A T IN E Muscatine, Iowa STATEMENT OF CONDITION DECEMBER 31, 1982 ASSETS 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 2|419’000.00 11,731 ’ooo.00 120,000.00 10,000^000.00 88,943,000.00 3,633,000.00 3,774’000.00 $131,074,000.00 LIABILITIES Capital .................................................................... Surplus .................................................................... Undivided P ro fits..................................................... Other Liabilities and Deferred Taxes....................... Securities Sold Under Agreement to Repurchase ......................................................... D eposits.................................................................. Total Liabilities 2,000,000.00 2,000,000.00 7,028,000.00 3,576,000.00 1,525,000.00 114,945,000.00 $131,074,000.00 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 1964. OFFICERS 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 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L.G. SULZBERGER, Vice President & Cashier EDWARD H. SCHROEDER, Vice President 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 LEO KOSSIVES, Auditor JANICE METZGER, Assistant Vice President ACORN Registers " A c c e p t e d S a l e R e g is t e r s b y C le r k s E v e r y w h e r e " T or information write Bank THE ACORN PRINTING CO. O akland, Iow a 69 When you use Iow a Banners Insurance & Services, Inc. fo r Creditor Protection, you g et professional service. IB IS offers YO U : ■ A f u l l line o f credit insurance products ■ A complete excess progra?n ■ A n uncomplicated insurance program fo r the complex agri-business world. ■ A fu lly computerized claim system ■ Sales a n d product seminars ■ Life a n d credit life licensing schools For details call our toll-free W ats line number 1 -8 0 0 -5 3 2 -1 4 2 3 , or write to G ary Livesay or Ron Meyer. Io w a B ankers Insurance & Services, In c. 400 F in a n c ia l S e rv ic e s B u ild in g 508 T e n th S tr e e t D es M oines, Io w a 50308 (515) 286-4300 C all o u r to ll F R E E W A T S n u m b e r 1-800-532-1423 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 70 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 R.A. JENKS 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 Northwestern https://fraser.stlouisfed.org 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. 71 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 needs. 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 (portfolios) Collections Domestic and foreign wire transfer of funds Currency and silver procurement ACH (Automatic Clearing House Services) Cash letters Custom HR-10s Keogh prototypes Corporate profit sharing plans Tkx shelters Unincorporated pension plans IRAs 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC and FRS Northwestern Banker, February, 1983 72 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 https://fraser.stlouisfed.org 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 customers. 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® Dakota. Mr. Roby, 53, formerly was presi dent and chief executive officer of 73 ' NOBANKCANSATISFYYOURNEEDS BYMERELYOPENING ITSDOORSEACHMORNING 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 1-800-362-1615. UNITEDCENTRALBANK AFFILIATED WITH UNITED CENTRAL BANCSHARES INC. MEMBER FDIC LOCUST AT 6TH, DES MOINES, IOWA 50304 (515) 245-7111 3400 WESTOWN PKWY. • 35TH & INGERSOLL • 501 E. ARMY POST RD. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, February, 1983 74 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 council. 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 lending. Statement of Condition DECEMBER 31, 1982 Resources Liabilities 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 ) .................................... Less: 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 .......................................... TOTAL . $ 14,309,000 3 0 ,110 ,0 0 0 16,945,000 5 ,3 11,0 0 0 388,000 99,963,000 (588,000) 5,500,000 2,506,000 3,700,000 $ 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 ............................................. . . $ 4,800,000 4,800,000 4 ,2 17,0 0 0 160,000 $ 13 ,9 77 ,0 0 0 2,573,000 184,000 688,000 7 ,19 1,0 0 0 15 3 ,5 3 1,0 0 0 $ 17 8 ,14 4 ,0 0 0 Officers 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 Dubuque J. Bruce Meriwether John J. Savary Marketing and Business Development Officer President 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 Controller Auditor 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 Directors J. Bruce Meriwether Vice President-Investments Alan L. Schuster Edward A. Babka President Richard A. Bean Personal Banking Officer Manager West President, Babka Publishing Co. Vice President— Agricultural Lending Iowa 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 Northwestern https://fraser.stlouisfed.org 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. Honorary Directors Waldo Adams Frank A. Fluckiger Charles J. Spahn Catherine Winall A» Iowa News 75 ^ New Look for ITS Newsletter 0 # # # 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. https://fraser.stlouisfed.org 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. SECURITY NATIONAL BANK Sioux City, Iowa 51101 Member F.D.I.C. Northwestern Banker, February, 1983 76 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 Center. 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 Nation. 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. BURLINGTON, IOWA In addition, Dale Anderson has Statement of Condition been named to senior vice president December 31, 1982 and David Augustine to assistant RESOURCES cashier. 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 .......................................................................... LIABILITIES Capital S to c k .......................................................................... Surplus ................................................................................... Undivided P ro fits .................................................................... Reserves................................................................................. Unearned D iscount................................................................ Deposits ................................................................................. Securities Sold Under Agreement to Repurchase................................................................ Interest Bearing Demand Notes Due U.S. Treasury........................................................... Other L ia b ilitie s...................................................................... BOARD OF DIRECTORS 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 20,527,000.00 7,015,000.00 5,839,000.00 22,194,000.00 705,000.00 162,000.00 10,900,000.00 1,361,000.00 $72,774,000.00 $ 600,000.00 2,000,000.00 2,783,000.00 950,000.00 563,000.00 63,554,000.00 951,000.00 299,000.00 1,074,000.00 $72,774,000.00 OFFICERS 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 Northwestern https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. 77 “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 mation. STATEMENT OF CONDITION at close of Business December 31, 1982 ASSETS 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 ......................................................... $ 7,865,930 38,614,255 6,021,792 23,682,857 68,318,904 12,000,000 67y91^391 (648,485) 67,142,906 2,433,033 2^692^359 ’ 57’o68 $160,510,200 LIABILITIES and CAPITAL Deposits: 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 68,200^427 129,638,195 13,063,591 1,530^255 l'803'600 146,035,641 2,800,000 2,800,000 8,874,559 14,474,559 $160,510,200 OFFICERS 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 Cashier Rick A. Thuesen Controller Donald N. Richards Vice President Betty M. Runyan Assistant Cashier Diane C. Kupferschmidt Personnel Director Anita M. Ward Auditor Trust Division Frederick Koch Senior Vice President & Trust Officer Dennis E. Egel Trust Officer James E. Thielen Assistant Trust Officer W A T E R L O O S A V IN G S B A N K West Park at Cedar, Waterloo, Iowa 50704 Northwestern Banker, February, 1983 78 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 seminars. 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 https://fraser.stlouisfed.org 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 economy. □ 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 D EKSTRAND B.S. degree in agri culture from Iowa State Univer sity in 1981. INDEX OF ADVERTISERS FEBRUARY 1983 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 THE m v \ÁJE PUT IT TOGETHER 15 ÌÀJHAT5ET5 4015 Alexandra Drive • Box 2097 Waterloo, lowa 50704 Phone 519-254-6641 líüJ KIRK] GROSS CQ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Some customers write a lot of checks. 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