View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank of St. Louis

1986 Agricultural Survey

He's Stan Farmer, your MNB Correspondent banker.
MNB's Stan Farmer means business — more
business for you and your bank. He can help
you say "yes" to your valuable bank
customers when their financial need exceeds
your ability to fulfill it.
Stan has the knowledge and experience to
work with you and your customer on
agricultural loans, or commercial and real
estate loans. He w ill also consult with you on
your personal plans for bank ownership.
He means business when it comes to
assisting with your day-to-day cash
management needs, as well. In addition to
providing standard services — such as federal
fund transactions, short-term investments and
check clearing — Stan and our MNB
Federal Reserve Bank of St. Louis

Correspondent banking staff can help you
deal with critical cash transfer deadlines,
complicated collection requirements,
international transactions and difficult check
clearing problems. Additionally, Stan w ill
work with you to provide operational
innovations that prepare your bank for any
service need.
At MNB, we're dedicated to bringing
together the resources, experience and
services you want in a correspondent bank.
That's MNB's commitment to productivity, so
talk to Stan, soon. When he says he can help
your bank's business grow, he means
business. Call Stan at 319/398-4320 or
1-800-332-5991, toll free, today.

National Bank 1:1
Cedar Rapids. Iowa 52401
Member F.D.I.C.



We’ve Spent 45 Years
. D eveloping Our Good Name
to Stand Behind Yours.

Travelers Express has been in the
mainstream of financial processing
services for many years. In fact, we’re
the largest volume money order provider
in the commercial marketplace...and
that didn’t happen overnight.
Teamwork and state-of-the art
equipment put us at the head of the class

for reliable and efficient processing of
money orders and official checks.
Official Check and Money Order
services from Travelers Express relieve
your institution of paper inventory and
storage costs, back office reconciliation,
stop payments, photocopies and tracing.
Our services also offer you an oppor­
tunity to earn income for your financial

institution through increased balances.
Best of all, we stand behind your
institution as well as our products. We’re
not a bank and don’t compete for your
customers’ attention.
For more information, contact
Terry Franzen, Marketing Manager,
1- 800 - 328- 5678 .

#1 Travelers Express
Federal Reserve Bank of St. Louis



Northwestern Banker, February, 1986



FEBRUARY 1986 • 93rd Year • No. 1469



1986 agricultural survey

M idw est bankers o u tlin e plans in exclusive survey


Off-premise EDP center chosen

“ S o ft” costs in flue nce de cisio n of tw o South Dakota banks


“Our staff would revolt. . .

if we went o ff prem ise n o w !” says Cairo, Nebr., banker


IBAA convention is March 8-13

Las Vegas is site fo r 56th annual independent m eeting


Illin o is
W isconsin
M innesota
Twin C ities
South Dakota
North Dakota
W yom ing
M ontana


C olorado
Des M oines
Index of Advertisers

A he knowledge of the
gnomes is very close to

Through our system of
regional offices, Freddie
Mac makes it easy to do
business locally. And,
because our representa- *
tives live there, they
understand your particu­
lar needs. Our North
Central Region includes:
Illinois, Indiana, Iowa, ^
Michigan, Minnesota,
North Dakota, Ohio,
South Dakota, and
Wisconsin. Our office is:
Federal Home Loan Mortgage
I I 1 East Wacker Drive.
Suite 1515
Chicago. Illinois 60601-4580
(312) 861-8455
Representatives are:
Ann Alexander: Marketing
Elizabeth Gill: Marketing
Judy Graves: Regional Account
Everett Howard: Regional
Account Executive
Dick Hammond: Regional
Account Executive
Jeanne Redfern: Regional
Account Executive
Mark Roble: Regional Account
John Sabal: Regional Account



1535 Linden Street, Suite 201, Des Moines, Iowa 50309

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Carla Lukenbill

Diane Nelson

No. 1469 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Banker, February, 1986
Federal Reserve Bank of St. Louis

Home Loan
I Owned h> America's Savings Institutions I



We m ake house calls.
The gnomes o f Freddie Mac are not only well-versed but also welltraveled. ■ Indeed, we are always eager to meet with our
customers. And each of our regional offices is tailored to suit
local needs. ■ Whether you want to sell your mortgages for
cash or swap them for PCs, we’re ready to structure the
deal that’s right for you. Just say when— our bags are packed.
This is not an offer to sell or a solicitation o f an offer to buy PCs. PCs are sold only by means o f an offering circular. PCs are not guaranteed by the
United States or by any Federal Home Loan Bank and do not constitute debts or obligations o f the United States or any Federal Home Loan Bank.
Freddie Mac ■ Marketing Communications ■ 1776 G Street, N.W. ■ P.O. Box 37248 ■ Washington, D.C. 20013-7248
© 1984, FHLMC
Federal Reserve Bank of St. Louis


Home Loan
_______ Mortgage
Owned by A m erica's Savings Institutions


ABA Corporate Banking Conference
Is in San Francisco, March 9-11
EATURED speakers at the
American Bankers Association
1986 National Corporate Banking
Conference, March 9-11, in San
Francisco include Security Pacific
Corporation Chairman Richard J.
Flamson, III, General Motors Corpo­
ration Chairman Roger B. Smith,
and Rutgers University Finance
Professor Dr. Paul Nadler.
Conference sessions will focus on
improving bank quality in three
areas — people, marketing, and pro­
ducts. The meeting, to be held in the
Westin St. Francis Hotel, is spon­
sored by ABA’s Commercial Lend­
ing Division and Financial Institu­
tions Division.
A keynote address on marketing
will be presented by A1 Ries, chair­
man of the New York advertising
agency, Trout & Ries, Inc. Mr. Ries
is also co-author of Marketing War­
Related workshops include “Pric­
ing Strategies for Credit and NonCredit Products,’’ “Understanding
Federal Reserve Bank of St. Louis

the Financial Needs of the Services
Industry,’’ “Franchise Banking —
Institutional or Product” and “Pen­
etrating the Small Business Mar­
Dr. Charles Garfield, president of
Performance Sciences, Inc., Berke­
ley, California, will make a luncheon
presentation titled “People: Peak
Performance in Business.” Person­
nel quality will also be the subject of
workshops on “Loan Officer Perfor­
mance Standards, Productivity and
Compensation,” and “Are You
Ready to be a Powerhouse Lender.”
The third key area, products, will
be highlighted by Roger Smith’s
keynote address on the changing
structure of the financial services in­
dustry. General Motors subsidiaries
already offer auto financing and
mortgage servicing, and the corpo­
ration plans additional forays into
the financial services marketplace.
Related workshops at the confer­
ence will be: “Product Development
— The Future of Correspondent

Banking;” “Corporate Treasurers’
Perspectives,” “Uses and Abuses of
Standby Letters of Credit,” and
“Technology — Making Sure It
Works for You.”
Other workshops of special inter­
est to senior commercial lenders and
correspondent bankers will be
“Trends in Acquisition Financing,”
“Investment Banking Opportuni­
ties for Commercial Banks,” and
“Interfacing with Bank Regulators.”
Co-chairmen of the conference Eire
Donald H. McCree, Jr., chairman of
the ABA Commercial Lending Divi­
sion and sector executive vice president, Manufacturers Hanover Trust
Company, New York, and Robert B.
Philipp, chairman of the ABA Fi­
nancial Institutions Division and ex­
ecutive vice president, Security Pacific National Bank, San Francisco.

Seminars Teaching Bank
Personnel Protection Begin
A series of seminars titled, “The
1986 National Symposium on The
Protection of Banking Personnel”
was slated to begin in early Febru-







ary and continue through March 21
^ at 19 locations in five upper midwest
states. The programs are presented
by Loss Prevention Services, Inc.,
Sioux Falls, S.D.
George Kirk of LPS said the one^ day seminars will deal with the pro­
tection of banking executives and
their employees. Topics included in
the seminars are: Identifying and
Understanding the Threats, How to
9 Minimize Your Risk, How to Avoid
a Confrontation, Dealing with Ag­
gressive Persons, Hostage Situa­
tions, Executive Protection, Kidnap
and Extortion, Establishing a Bank
Hit Plan.
Mr. Kirk said LPS more than a
year of planning and research was
spent by its staff of psychological,
law enforcement, banking and secur<§>ity management personnel in devis­
ing this one-day seminar. Those in­
volved have such diverse back­
grounds as service with the FBI, the
U.S. Marshal’s protection unit,
# banking security management, and
mental health counseling.
The first five seminars, which
began February 5 in Rapid City,
were scheduled for South Dakota

and North Dakota through Febru­
ary 14. Iowa seminars commence
February 19 in Sioux City and con­
tinue the following two days in Fort
Dodge and Des Moines.
Consecutive day seminars in Neb­
raska are February 26, 27 and 28 at
Grand Island, Lincoln and Omaha,
plus another seminar March 12 in
Minnesota seminars are March 6 ,
7 and 8 at Marshall, Mankato and
St. Cloud, as well as Minneapolis
March 14 and Rochester March 19.
The seminars conclude in Iowa at
Waterloo March 20 and Davenport
March 21.
LPS is located at 705 E. 41st
Street, Sioux Falls 57105. Its tollfree number is 1-800-843-1300,
extension 850.

United Missouri Bank
Promotes Four Officers
United Missouri Bank of Kansas
City, N.A. has announced the follow­
ing officer promotions:
Robert T. Browne to senior vice
president in the Operations Depart­
ment where he is responsible for

overseeing operations for the corpo­
rate services division. He joined
UMB-KC in 1978. He holds a bache­
lor’s degree from Michigan State
University and a master’s degree in
Business Administration from the
University of Wyoming.
Gary Foltz to senior vice presi­
dent in the operations department
where he is responsible for market­
ing the department’s various ser­
vices. He joined the bank in 1972
upon graduating from Pittsburgh
University with a bachelor’s degree
in Business Administration.
Maggie R. Klein to vice president
in the operations department where
she manages the bank services divi­
sion. Ms. Klein was affiliated 10
years with another local bank prior
to joining UMB-KC in 1981.
Jack A. Hylton to commercial
banking officer in the national com­
mercial banking division, where he
is primarily responsible for commer­
cial banking business in Kansas and
Nebraska. Mr. Hylton joined United
Missouri in 1984 after receiving his
bachelor’s degree in Business Ad­
ministration from the University of

We don’t m ean to make a big deal out of
a phone number. But this one is different.
First of all, it’s free. Doesn’t cost a dime to
call. Secondly it’ll put you in touch with a
Drovers correspondent banker. Which
could be the start of a very rewarding
relationship. After all, Drovers is well
known for the personal attention and
assistance it gives to correspondents
in matters like acquisition financing,
investments, check processing, trust ser­
vices and overlines. So, at all costs, call
John Crotty or Kathy Hardy at Drovers. In
Illinois, phone 1-800-572-2498.



/ Drovers Bank

of Chicago
47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000
Federal Reserve Bank of St. Louis

/4 Cole-Taylor Bank


College Credits May Be Earned in
Some ABA-Developed State Schools


SIGNIFICANT advance in lieves the ABA accreditation pro­
banker education was made re­ cess truly measures educational
cently when the American Council standards and assures quality con­
on Education recommended that col­ trol.”
Four state bankers associationleges and universities grant college
credits for many American Bankers sponsored schools have been accre­
Association-developed state associa­ dited: the Wisconsin General Bank­
tion banking school curricula and ing School and the Wisconsin Com­
American Institute of Banking mercial Lending School, the North­
west Intermediate Banking School
“The ACE recommendation is an and the Northwest Intermediate
independent stamp of approval for Commercial Lending School.
However, a total of 30 schools
these ABA offerings,” stated Rich­
ard G. Kelley, chairman of ABA’s from 19 state associations are affili­
Education Policy & Development ated with the PDP and are eligible
Council. “Bankers will know that for accreditation. Four state bank­
they are getting the highest quality ing schools are scheduled for accre­
education.” The American Council ditation visits in 1986.
Results of the first accreditation
on Education is the major national
coordinating body for post-secon­ review of AIB chapters are expected
early in 1986. Other AIB chapters
dary educational institutions.
Three requirements must be met will be visited later in the year.
Mr. Kelley said ACE college
before a banker may receive college
credit for completing a school or credit recommendations are retroac­
tive to former students if they have
The program must have re­ completed a course to which ACE
ceived credit recommendations from has assigned equivalent college
ACE. A team of academicians has credits.
made credit recommendations for
five state banking school curricula
developed by ABA and 44 courses Chicago Fed Announces
offered by the AIB, an educational
Building Expansion Plan
arm of the ABA.
The program must be adminis­ The Federal Reserve Bank of
tered by an institute or organization Chicago has announced that it will
accredited by the ABA as part of its renovate and expand the bank’s
Professional Development Program, headquarters at 230 South LaSalle
a system designed to coordinate Street to house more than 2,000 em­
banker education nationwide. For an ployees.
“This project will enable us to re­
organization to receive accredita­
tion, it must use school curricula or main in the heart of Chicago’s finan­
AIB materials developed for the cial district and preserve the charac­
PDP, submit extensive self-evalua­ ter of the area,” stated Silas Keehn,
tions, and undergo site visits by a president of the Chicago Reserve
Bank. “These considerations were
team of bankers and educators.
The college to which the bankerextremely important to us in our
applies must accept the ACE recom­ decision to improve our facilities
mendations. Currently, more than rather than construct a new build­
1,800 colleges and universities ing.”
Keehn noted that a comprehen­
throughout the country subscribe to
sive review of the bank’s operations
the program.
“The ACE report is also an en­ had shown that a larger, more
dorsement of ABA’s accreditation modern facility will be needed to
program,” stated Mr. Kelley, who is serve the bank’s requirements over
chairman of the board of Citizens the next 25 years.
The original bank building was
First National Bank of New Jersey,
Glen Rock. “By requiring that a completed in 1922 and a 16-story ad­
school or organization be ABA-ac- dition was constructed in 1957. New
credited before its courses can re­ construction is slated to begin dur­
ceive the college credit recommenda­ ing the early part of 1986.
When completed four years from
tions, ACE has implied that it be­
Banker, February, 1986
Federal Reserve Bank of St. Louis

now, the renovation and expansion
will provide the bank with over
700,000 square feet of space com­
pared to the 500,000 square feet now
in use. An addition will rise 14 stor­
ies over the northwest corner of the
building, which occupies the block
bounded by LaSalle, Jackson, Wells
and Quincy Streets. Expansion of
the current facilities will provide for
consolidation of staff now located in
various buildings in the South Loop.
It was also announced that
Robert J. Day, chairman of the
board, chief executive officer, and
president of USG Corporation, has
been designated chairman of the
board of the Federal Reserve Bank
of Chicago for 1986, and Marcus
Alexis, dean of the College of Busi­
ness at the University of Illinois at
Chicago, has been named deputy
chairman of the board.
Mr. Day—who was named to the
Chicago Fed board in 1984 and
served as deputy chairman in 1985—
will replace out-going chairman
Stanton R. Cook, president and chief
executive officer of The Tribune
Company, who served the maximum
of two full three-year terms on the
Reserve Bank board.
Mr. Keehn also recently an­
nounced that Thomas G. Ciesielski,
previously head of the bank’s Mil­
waukee office, has been named vice
president and transferred to Chi­
cago where he is responsible for
human resource services which in­
cludes the staffing, payroll, training
and development, compensation,
and benefits areas.
Charles M. Lund has been pro­
moted to assistant vice president
and will assume Mr. Ciesielski’s pre­
vious position as head of the Mil­
waukee office.

Graduate School of Banking
Announces Staff Promotions ^
Janet A. Primus has been named
director-operations and Ann M.
Kleist has been named assistant di­
rector-operations of the Graduate
School of Banking at the University ^
of Wisconsin-Madison.
Ms. Primus has served as regis­
trar and secretary to the board of
this industry-sponsored advanced
bank management program since f t
1971. Ms. Kleist joined the Gradu­
ate School of Banking in 1975 as sec­
retary to the administrator and was
later appointed administrative as-

E V E R G R E E N S Y S T E M S , IN C .






P.O. BO X 147 •


Federal Reserve Bank of St. Louis

(402) 572-8158


Five State Associations
Get Banclnsure Going
After lining up reinsurers in the
foreign market, five state banker as­
sociations from Minnesota, North
Dakota, South Dakota, Wisconsin
and Oklahoma began official opera­
tion January 1 of Banclnsure, Inc.,
headquartered in Oklahoma City.
The firm was organized to serve
banks in those five states and was
ready to start up early last year;
however, the initial date had to be
delayed until reinsurance contracts
were in hand from the Lloyd’s of
London market, Copenhagen Rein­
surance Company of America, and
other foreign and domestic market
Robert E. Harris, executive vice
president of the Oklahoma Bankers
Association, said the new firm will
have a significant impact on Okla­
homa banks by offering them
needed insurance at drastically
lower overhead costs. Many banks
have been unable to find the kind of
coverage needed, or have been as­
sessed greatly increased premiums
over previous charges for the same

The initial policies offered, he
said, hopefully will be expanded
soon to include D&O insurance. He
noted that of the 2,217 banks in the
five states, 808, or 36%, have signed
letters of intent representing ap­
proximately $15 million in pre­
miums. Galen Pate, president of the
Minnesota Bankers Association,
and president of Signal Hills State
Bank in West St. Paul, Minn., is
chairman of the five-state group.
C.L. Frates & Co., the general agen­
cy in Oklahoma City that helped
work out details of the new com­
pany, will be manager of Banc­

New Free Agricultural
Software Catalog
Harris Technical Systems, Lin­
coln, Nebr., the largest supplier of
microcomputer software for agricul­
ture, has released a new 40-page
catalog of products for farmers and
ranchers. Forty-four different soft­
ware tools are included, ranging in
price from $29.95 to $1495.00.
A unique selector guide is dis­
played with each product in the
catalog to show buyers the compu­
ter experience needed to use the soft­

ware (for many products, no experi­
ence is required) and, for manage­
ment products, a “Management
Horsepower Range’’ graph clearly
indicates the power range over
which the software can be operated.
In addition to HTS’s own product
line of AgDisk software, the catalog
includes products from: Red Wing;
AgriData Network; Doane’s; Finan­
cial Systems, Inc.; Monogram; Blue
Chip; and DLM. Plus the catalog in­
troduces a new product line under
the title “AgDisk Professional.”
Toll-free technical support from
the experienced Harris staff is in­
cluded with the price of each pro­
duct. Specially priced “Trial Size”
demonstration versions for fourteen
of the more expensive products are
available so potentially interested
users can “try before they buy.”
Bob Harris, Chairman of HTS,
commented: “This is truly a unique
catalog. It brings together the best
in agricultural software and makes
it available all in one spot. Few rural
computer dealers are able to stock
substantial farm or ranch software,
so it is difficult for interested onfarm buyers to find a place to

Commerce Banks Tests
New Quotation Systems

Let’s talk. . .

Commerce Bank of Kansas City,
Mo., has added SPMI from Security
Pacific Market Information Inc. to
its information service for the 28
sales representatives and traders on
its bond trading floor.
Stephen Freidell, vice president in
the bond division, said the bank in­
stalled two independent work sta­
tions and eight slave monitors to
“test the new technology” and to de­
termine how responsive SPMI
would be to the bank’s needs. The
trading division deals with institu­
tions making multi-million dollar
trades, as well as individuals with
in v e stm e n ts from $5,000 to

. . . if your non-perform ing assets are higher than
w hat they should be, we believe we can help . . .
so le t’s ta lk!


4900 OAK



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


100 , 000 .

Mr. Freidell said one of the major
problems experienced by traders is
system downtime. A factor in the
decision to test SPMI was its claim
to greater uptime via small-dish
satellite transmission, stated to be
averaging nearly 24 hours per day of
uptime. An SPMI spokesman said
that “because SPM I’s satellite ser­
vice doesn’t rely on telephone lines
in most cases, the service is 25% to
40% less expensive than its leading


ABA Conference to Focus on
• Commercial Real Estate
The commercial real estate mar­
ket will receive special attention at
the American Bankers Association’s
^ 1986 National Conference on Real
^ E s ta te Finance, April 6-9 at the
Fairmont Hotel in Dallas.
Michael R. Buchanan is chairman
of the ABA Housing and Real Es^ tate Finance Division and executive
w vice president of Citizens and South­
ern National Bank, Atlanta.
Conference concurrent sessions
on the subject will include “ Origi­
n a t i n g and Managing a Construc­
tion Loan Portfolio,” “Emerging
Theories of Lender Liability in Con­
struction Lending” and “Construc­
tion Lending Opportunities for Com^ munity Banks.” In addition, a bank­
ing regulator’s perspective will be
provided by Jonathan K. Fiechter,
director, Economic and Policy An­
alysis Division, Office of the Comp0 troller of the Currency.
Although the commercial market
is getting added attention at ABA’s
real estate conference this year, the
residential real estate market is not
0 1being ignored, according to Mr.
Buchanan. Concurrent sessions on
this subject include “Your First
Sale in the Secondary Market,”
“Accessing the Private Secondary
0 Mortgage Market,” and “Successful
Management and Disposition of
R esidential REO (real e sta te

S T A T E -O F -T H E -A R T
S T A T E -O F -T H E -A R T

MasterCard, Visa Sales
Set Midwest 1985 Records
The dollar volume of MasterCard
and Visa combined sales increased
to $4,214,905,000 in the midwest in
1985, up 11% over 1984. It was a
new all-time record for any 120 month period in the area.
For D ecem ber’s C h ristm a s
period, bank charge card sales in the
same area increased 12% to $508,
636,000. It was the biggest single
0 1month in the region’s history.
This record-setting midwest busi­
ness volume for the two national
bank charge cards was reported by
Credit Systems Incorporated, the
0 i bank card operating center for the
five-state area of Missouri, Kansas,
Illinois, Iowa and Kentucky.
The average transaction in 1985
was $46.04, compared to $43.47 in
0 1984.
Federal Reserve Bank of St. Louis


9910 N. 48th St., Suite 201
Omaha, Nebraska 68152
(402) 451-8440
Toll Free—1-800-255-2255 ext. 8440

Northwestern Banker, February, 1986





BetaWest Properties, Inc. is part o f U S WEST.
That m eans a lot o f stability and breadth o f expe­
rience that enables us to m eet your corporate
real estate needs. We are owned by one o f the
largest corporations in Am erica. Its assets are
approximately $17 billion, 1984 revenues were
$7.2 billion, earnings were $887 m illion. It’s
owned by 1.2 m illion shareholders and has over
70,000 em ployees.
BetaWest is both a real estate owner and devel­
oper. Our capabilities and experience gives us the
ability to meet a wide variety of property develop­
m ent needs for a broad spectrum o f client users.
BetaWest operates on a national scale. For
BetaWest developm ents, our capabilities include:
site evaluation, negotiations for the purchase or
sale o f buildings and/or raw land, construction

© 1985 BetaWest
Federal Reserve Bank of St. Louis


project m anagem ent, space planning, value engi­
neering analysis, property developm ent, financial
packaging, joint ventures, sale/leaseback, syn­
dications, property m anagem ent, lease adm in­
istration and em ployee relocation.


W hen you ’re thinking about m aking a m ove
in corporate real estate, call on the com pany
with all the resources you need. BetaWest
Properties, Inc., 1999 Broadway, Suite 2000,
Denver, Colorado 80202, (303) 292-7000.
Regional offices in Seattle, W ashington
and Phoenix, Arizona.

BetaWest. Breaking new ground
in corporate real estate.

A LIËWEST Com pany
Federal Reserve Bank of St. Louis

previous disk limit utilizing four of
the 10 mb drives.
The B25 accommodates to many
Burroughs Corporation is offering popular software packages. One is
banks and other business firms an Burroughs’ word processing pack­
upgraded B25 microcomputer sys­ age (OW25) that is offered in two
tem, as well as its more recently levels to address specific occupa­
developed B28, an enhanced version tional needs of both managerial
(Professional Word Processing) and
(but not replacing the B25).
The minimum capacity of the B25 clerical personnel (Secretarial Word
hard disk drive has been doubled to Processing). This easy-to-use soft­
20 mb. Also available is a 37 mb ware utilizes a special word process­
hard disk. This allows the B25 total ing keyboard which can be used for
disk capacity to improve to 130 mb, all B25 applications. This keyboard
using three 37 mb drives and one 20 offers numerous added functions.
The B25’s spreadsheet program is
mb drive. This combination of four
disk drives is a big jump over the Enhanced Multiplan that can be

Burroughs Upgrades Micro,
Offers One New Version

Glass Banks
with YO U R Design

used for forecasting, planning,
modeling and tracking information,
as well as resolving numerous “what
if” situations. There is also a seam­
less interface to the excellent Busi­
ness Graphics Package. The B25
also offers a relational database
management system called R:base,
developed by Microrim, Inc. With
R:base, a relational data base, typi­
cally associated with manframes, is
now available at the micro level.
Most important to the B25 is its
“clustering” capability. One unit
with the hard disk can support up to
five additional work stations, thus
allowing sharing of programs, files
and hard disk. Any printer in this
configuration, may be shared by
another workstation. For more than
six stations clustered, the XE520
will allow up to 64 workstations to
be clustered.
Burroughs new B28 offers the
range between the clustering of six
B25 stations and the 64 offered
through the XE520. The B28 is con­
figured with 1 mb of memory and ex­
pandable to 4 mb. It is up to two
times faster on CPU intensive tasks
and even greater in performing float­
ing point calculations. Cluster sta­
tion capacity of the B28 also ex­
tends to 12 (master plus 11 slaves),
as opposed to the B25’s six in a clus­

Ag Credit Software

Say Goodbye to Promotion Premium Worries
Imagine... your design mouthblown in white-hot flame. Molten, liquid glass, shaped by
hand with centuries old tools and fast-dying skills. Unlike anything your competitor has ever
offered. A big 8" bold and sparkles on window shelves. It becomes part of the household
decoration, lived with and talked about long after your initial promotion. You choose from six
charming colors to match your promotional theme. Arrives gift boxed, ready for display,
stores easily. Your design copied from your letterhead, advertisement or brochure. Picture
your glass bank with the Statue of Liberty on one side, your design on the other. Mouthblown glass, since 1739 an American tradition, now yours to offer as a modern treasure.
Free details sent fast.
Custom Classics Marketing Ltd., P.O. Box 94423, Des Moines,
Iowa 50394 / Phone (515) 270-6003
Banker, February, 1986
Federal Reserve Bank of St. Louis

Agri Systems Development, Inc.,
of Okemos, Mich., announcs the re­
lease of ACE - The Ag Credit Ex­
pert. The ASDI software develop­
ment firm staff is comprised of ex­
perienced ag bankers, ag economic
researchers, computer program ­
mers, electrical engineers, and agri­
business managers.
The ACE credit analysis system
is designed specifically for agricul­
tural lenders and credit consultants
working with ag borrowers. ACE fo­
cuses on the essential elements of ag
credit analysis—accurate financial
reporting, debt servicing capacity,
working capital management, and
collateral analysis for evaluation of
the bank’s security position.
ACE is modularly designed with
the modules fully integrated to pro­
vide a flexible, systematic, and com­
prehensive approach to complete
credit analyses for each farm loan
ranging from a historical analysis of
a borrower’s financial performance

and position to projections of the
borrower’s likely financial perfor­
mance under alternative price, yield,
and expense assumptions.
Features of ACE include:
• Automated CCC grain and capi­
tal lease accounting and loan amorti­
• Program design which reflects
the way loan officers analyze ag
• Financial statement forms for
data collection from farmers
• Optional financial statement
supporting schedules
• Preformatted graphics analysis
• User-specified formats for ini­
tial balance sheet and income state­
ment data entry
• Standardized commodity bud­
gets for enterprise analysis and cash
flow planning
• Integrated collateral analysis
for liquid assets, intermediate assets
and fixed assets
• A full range of analysis report
• Availability of a complete ag
credit analysis training manual
which parallels the software system

tion from that key post to pursue
new career opportunities. Mr. Clark
joined the ABA staff 17 years ago
and has worked closely with hun­
dreds of ABA volunteer workers in­
volved in such important work as
the Ag Bankers, Bank Investments,
CFO, Commercial Lending, Corpo­
rate Planning, Correspondent Bank­
ing and International Banking Divi­
John Clark Leaves ABA
sions. Mr. Clark will continue to
John S. Clark, director of the cor­ assist ABA on a consulting basis
porate financial services group of through the transition period of se­
the American Bankers Association, lecting a new director for the corpo­
announced January 1 his resigna­ rate financial services group.
State Bank Supervisors. His elec­
tion is to fill the four-month un­
expired portion of the 1985-86 Con­
ference year, and he is expected to
stand for re-election to a full oneyear term at the CSBS Annual Con­
vention in Colonial Williamsburg in

Most lease programs lack
a certain flexibility.

Maynard I. Wishner
Retires at Heller
Maynard I. Wishner, 62, presi­
dent of Heller Financial, Inc., and
vice chairman of parent Heller Inter­
national Corporation, retired from
active service on February 1, but
will continue as a consultant for the
Chicago-based financial services
After serving as outside counsel
for six years to Heller, Mr. Wishner
joined the firm in 1962 as a vice
president. He was elected president
in 1973 after serving in several other
executive positions.
Since Heller’s acquisition by The
Fuji Bank, Limited, in 1984, Mr.
Wishner has been a part of the man­
agement team that has restructured
the company, developed new operat­
ing strategies, and established new
ventures to leverage H eller’s
strengths and improve its financial

Kuthy Elected CSBS V.P.
Eugene W. Kuthy, commisioner
of financial institutions of Michigan
since April, 1983, has been elected
vice president of the Conference of
Federal Reserve Bank of St. Louis

Any leasing company can keep you from tying up your capital.
Bankers/Plus can keep you from being tied down to unwanted
In fact, we’re probably the most flexible leasing
company in the country.
Unlike other lease programs, ours
allows you to upgrade whenever you need
to. Because ours are designed with a
genuine understanding of your needs.
Call us today. (612) 331-1164.
©1985 Bankers/Plus, Inc.

Bastersîm is

Northwestern Banker, February, 1986


Two F irsts m ake
a force in correspondent banking. *

First Bank Minneapolis and First Bank Saint
Paul Correspondent Banking Departments have joined
forces to become First Bank Correspondent Banking.
We combined all the resources of two of the largest
correspondent banks in the region to create the newest,
biggest and most customer-driven correspondent
in the Upper Midwest.
What does that mean to you? It means you
can draw on the largest credit resources of any corres­
pondent in the Upper Midwest. It means you can build
a solid banking relationship with the largest stalfof
professional calling
officers in the area. And it
means you can rely on
the resources of our
banking officers to solve
your specialized, multi­
bank, agricultural and
non-credit needs.
We reorganized to
fit the changing banking
world. You still need
regular contact with our
calling officers for bank
stock financing, standard
overlines and other credit
services, so we left that side of our organization
unchanged. But, you also needed more and more advice
about the' rapidly changing world of deregulated
banking. And so we’re giving it to you.
We created three new specialty divisions within

our expanded correspondent department: A Multi•
Bank Ownership Division, a Non-Credit Products
Division and an Agriculture Production Credits Division.
All of our specialty banking officers are experts in their
own area and in correspondent banking. And that
means that they too, can operate directly with you on a
regular basis, when you need them.
Also, First Bank Correspondent Banking officers
have instant access to all of the resources and expertise
of First Bank Minneapolis and First Bank Saint Paul.
So you can get the expert banking advice you need
whether it’s in inter­
national banking, consult­
ing services, security
sales and safekeeping, SBA •
loans, leasing, and much
more. We even have an
entire division that
specializes in financial
services for the new high- ®
growth, high-technology
and service industries.
So, when you need
correspondent banking
services, talk to us. At
First Bank Correspondent
Banking you don’t have to go around in circles to
get to the experts. We have the credit you need and the
technical advice you have to have to stay profitable
in today’s ever changing world of banking.
At First, good news is all you get.

First Bank

Federal Reserve Bank of St. Louis

First Bank Minneapolis
First Bank Place
Minneapolis, MN 55480

First Bank Saint Paul
332 Minnesota Street
St. Paul, MN 55101

Members FDIC


1986 Agricultural Survey

A N orthwestern B anker Survey

Editor's Note: The following survey was made ju st
before the announced potential cuts in the United
States Department of Agriculture budget that could be
^ imposed by the Gramm-Rudman-Hollings Act, which
dictates across-the-board cuts if the Congress and
President cannot agree on specific cuts needed to
reduce the budget by the $11.7 billion for 1986 dictated
by the law. Since no agreement has been reached, the
^ Office of Management of the Budget (OMB) and the
Congressional Budget Office (CBO) jointly published

details of the mandatory cuts that would reduce mili­
tary spending by 4.9% and domestic programs by
Of the latter amount, ag spending would take the brunt
with a 22% reduction, or $1.3 billion between March 1
and September 30, when the current fiscal year ends.
Further cuts are mandated for the ensuing fiscal years
until the budget is balanced
A ny effect of the Gramm-Rudman-Hollings A ct is
not reflected in the following survey.

to a cross-section of community
bankers and 333, or 67%, of them
were returned in time to be included
• or more ag lending in 1986 as in pre­ in this exclusive report. Three na­
vious years. A comparable number tionally prominent ag bankers
will accept new customers, while helped draft the survey question­
60% of them say the problems of the naire, designed to elicit basic infor­
Farm Credit System and Production mation about the plans of ag bank­
• Credit Associations have created ers as they begin working with farm
more loan activity at their banks. In customers for spring planting.
Details of the survey follow:
addition, 95% of these banks say
they have ample funds to meet the
Chart No. 1
loan needs of their present and poQ. Do you plan to handle your
• tential ag customers.
These and other findings are re­ share of the ag lending in your area
vealed in the “ 1986 Agricultural this year?
Respondents were asked to check
Survey” conducted in January by
the N orthwestern B ank er . A “Same - More - Less - Don’t know
® total of 500 questionnaires were sent yet” and Chart No. 1 shows the reORE than 80% of the rural
banks across 10 upper midwest
states plan this year to do as much
Federal Reserve Bank of St. Louis

Q. Do you plan to handle your share of
the ag lending in your area this year?
Same = 67%
More = 15.9%

Don’t Know Yet = 5.4%
Q. Will you accept any new customers?
Yes = 81.7%_____________
No = 9%
No Answer = 9.3%

Northwestern Banker, February, 1986

suits. Of the 333 who replied, 67%
said “Same,” while 15.9% said
“More,” for a total of 82.9%. Of the
39 bankers (11.7%) who said they
would do “Less” ag lending this
year, 11 of them are from Iowa. The
next highest concentration was
eight in Minnesota who said “Less,”
and the other 20 were scattered
among the remaining eight states.
Iowa also had the lowest percentage
of bankers who said they would do
the “ Same” amount of lending—
63.5%, and 12.7% in the Hawkeye
state responded “More.” By con­
trast, Nebraska and North Dakota
respondents stated 70.3% and
72.4% respectively for “Same,” and
21.9% and 17.2% for “More.” This
made their totals 92.2% and 89.6%
A second part of Question 1 was,
“Will you accept any new custo­
mers?” The response, as noted in
Chart No. 1 was 81.7% “Yes,” and
the balance almost evenly divided
between “No” and “No Answer”—
9% and 9.3%.
Bankers also were asked to list
briefly the conditions under which
they would accept new customers.
By far the most frequently men­
tioned qualification was that the
loan “must cash flow!” A few other
selected comments were these:
“May consider with FmHA gua­
“Excellent Credit” or “top line.”
“50% equity.”
“Low debt/asset ratio, solid cash
flow projections and be willing to of­
fer very adequate collateral.”
“Realistic assumptions, well-se­
cured with good equity, crop insur­
“Operating funds requirement
must not represent any carryover
from previous years. F/S must look
good and cash flow figures must be
able to show ability to pay off all ac­
counts with a normal crop.”
“Proven money maker, good char­
acter, collateral, low risk.”
“Positive cash flow, debt/assets
of 50% or less, gross receipts in ex­
cess of $200 ,000 , three years history
of net income with at least one year
of profitability.”
Other comment continued in the
same vein—“above average, gilt
edged, gold plated, top rating, finan­
cially sound,” etc.

Chart No. 2
Q. Have FCS and PCA problems
Banker, February, 1986
Federal Reserve Bank of St. Louis

time to their loans so we declined.
$48 million: We have picked up
some real good accounts. Good man­
agement people, good cash flows
and good net worths.
$14 million: We’ve gotten some ®
loans back that switched 3-4 years
$170 million: We have taken on
about 20% of the PCA applications
$16.7 million: Very few meet our
created more loan activity in your
credit standards.
As seen in Chart No. 2, approxi­
mately 60% of the banks responded Illinois
$26 million: We have had a few in- %
“Yes,” while 25.3% said “No” and
and have loaned to a few
15.1% said “Not yet known.” It was
who have been with the
interesting to note that three of the
PCA. We expect to get
four states served by the Farm
business as our rates
Credit Banks of Omaha, which have drop below the
PCA and FLB. Our £
experienced millions of dollars in best rate of 11.5% is in effect for our
losses and delinquent loans, had top customers.
high “Yes” responses. Those three,
$326 million: The FCS has not
in the order of their “Yes” response, suffered
to any great degree in our
were: W yom ing—80%, I o w a - area as of yet.
65.1%, N ebraska —64.1%. The
fourth state in that district is South been well-to-do farmers refinancing
Dakota, which reports a “Yes” vote their FLB loans. They are afraid
in this survey of 59.4%. Outside the their stock will be frozen if they
Omaha district, North Dakota came don’t get out.
in with 69% “Yes,” while Wisconsin
and Illinois gave the lowest reports Wisconsin
$40 million: We have refinanced a
with 37.5% and 51.9% “Yes” re­
number of rural housing loans. We
In their comments, many bankers have had a number of farm loan re- ^
told about acquiring high quality finace requests. We did not make
real estate loans from FLB custo­ any.
mers and, frequently, they told of re­
jecting many PCA customers as Minnesota
$10 million: We are turning down
“not bankable.” In between those
new credit applications until •
ranges, the comments reflected care­
regulatory agencies change
ful selection of loans from among
the many FLB and PCA customers
$22 million: Turn them down this
who are turning—and often return­
Took them last year and wish
ing—to local commercial banks for
help. One reason mentioned often in
the comments is the fear by farm
customers that they will have their cations from financially strong PCA
FLB stock frozen or lost if they stay borrowers. There appears to be
in the system. Here is a sampling of growing distrust of PC As and a de­
comment by states and bank deposit sire to detach from any association ®
with governm ent agency/quasi
agency. Same applies to FLB.
$29 million: We are getting the
$11 million: Getting customers
of the PCA accounts.
back that are financially secure and
South Dakota
will cash flow.
$12 million: Minimal activity. Our
$11.5 million: High quality real
bank has picked up a very small
estate loan volume up.
$27 million: Have refinanced number of PCA borrowers who were
many FLB real estate loans. Have in good shape.
Size unlisted: Consolidation
taken on some top quality accounts.
$50 million: Have had several re­ caused our PCA branch office to
quests to refinance PCA. Most lines close. It is 55 miles to the nearest of­
were average but not disastrous; fice now and some customers are not
however, we couldn’t devote the willing to drive that far.


• “We will make some farm R/E loans on a 20-year amortized
basis with either a three-year or five-year maturity basis.”

North Dakota
$75 million: We have been refi­
nancing good quality real estate
loans. We have also hired a PCA
loan officer who has brought good
loan volume with him.
I®1 $49 million: Customers solicited
away from us by PCA now appear
less loyal than before.
$40 million: Local PCA closed and
'I* 200 customers seeking new lenders.
Banks have taken 25%; reorganized
PCA took maybe 50%, and 25% are
still looking.

Chart No. 3
Q. Does your bank have ample
funds for ag loans?
Chart No. 3 shows that 93.7% of
responding banks say they have am­
ple funds for ag lending at this time.
In only three states did that figure
dip below 90%—South Dakota re­
sponded 81.2% and 12.5% replied
“No.” In Wisconsin it was 81.3%
“Yes,” and the other 18.7% all an­
swered “Don’t Know Yet.” The
“Yes” vote in Montana was 85.8%
with 7% “No” and 7% “Don’t Know
Q. Does your bank have ample funds
for ag loans?
Yes = 93.7%
No = 3%
Don’t Know = 3.3%

Typical of the comments offered
^ in replies to this question was the
one from an Iowa banker with a $46
million deposit bank: “We have seen
an above average paydown this year
because so many farmers are selling
^ corn and soybeans.”
Several bankers also mentioned
the use of MABSCO and MASI
funds as being helpful. Many merely
commented “loaded and looking for
f good quality loans. ’’ The lowest L/D
Federal Reserve Bank of St. Louis

ratio cited to indicate the need for
good loans to use up the bank’s am­
ple supply of money was 23%!

Q. How are your loans for livestock
purposes at this time compared to a
year ago?
Higher = 8%

Chart No. 4
Q. Will you make any operating
Lower = 45.8%
loans without being fully collateral­
The responses to this question
were rather surprising, for the “No”
No Answer = 2.5%
vote, as shown in Chart No. 4, was
only 72.1%, while 27.9% said “Yes”
to the question. However, some of Nebraska
the “No” voters offered comments
$15.6 million: Not enough feed.
to explain their choice. In most More selling than buying.
$170 million: Fewer cattle feeding
loans. One large feedlot has cut back
and some smaller feeders are feeding
less cattle. Loans associated with
swine remain about the same.
$83 million: Cow calf people have
not made money. Most cattle feed­
ers who have used marketing tools—
i.e., contracts, hedging or options—
have managed to stay in the black.
Others have gone by the wayside or
are struggling.
$180 million: Feeders have pur­
cases, that “Yes” vote indicated chased more livestock because of
such choice would be made only on a better feed supply.
selective basis “to a few prime bor­
rowers,” and several explained that Minnesota
$20 million: Very few feeder cattle
this would include “long-time bor­
as compared to a year ago.
rowers with strong net worth, profit
$23 million: There hasn’t been too
history, and sound record as farm­
much money made in cattle for the
years, so the cattle loan de­
The two states with the higest mand???
is down. In hogs we have seen
“Yes” votes were Illinois (50%) and
increase in the last year because
Montana (57.1%). In North Dakota, an
turnover and those who
44.8% said “Yes,” while in Iowa the
facilities have just in­
“Yes” vote was 32.8%.
creased about 10 % this past year.
South Dakota
Chart No. 5
$50 million: No feed because of
Q. Are your loans for livestock drought last summer.
purchases at this time, compared to
a year ago: Higher - Lower - Same? Montana
$14 million: Due again to the
Chart No. 5 displays the results,
with responses almost equal be­ drought, over 50% of livestock has
tween “Lower” and “Same,” while been sold off.
$16 million: Area cattle numbers
the “Higher” votes netted only 8 %.
There were 2.5% who did not answer are very low at present.
$50 million: High feed costs; low
the question. Here is sample com­
or no profit margin.
Northwestern Banker, February, 1986


Q. Have you, or will you, become in­
volved in longterm real estate lending?
Yes = 40.2%

Doubtful = 20.1%
Don’t Know = 5.3%
No Answer = 7.8%
Five states of la., Neb., N.D., Wis.,
S.D., ranged from 59% down to 46.2%
and averaged 50.2%
Five states of Minn., Mont., S.D.,
Wyo., Colo., ranged from 31.9% down
to 20% and averaged 25.7%.

Chart No. 6
Q. Have you, or will you, become
involved in long-term ag real estate
Chart No. 6 shows that all respon­
dents together average 40% “Yes,”
with one-fourth “No” and another
20% “Doubtful.” However, there
was a distinct divergence among the
10 states so separate calculations
were made for better comparisons as
shown in the second part of the
chart. As noted, one group of five
states averaged a 50.2% “Yes” ans­
wer, while the second group of five
states averaged only 25.7%.
A follow-up question asked,
“What are your customers’ alterna­
tives?” A sampling of comment
from that question follows:
$51 million: Our customers can go
to FHA, Federal Land Bank (which
is not making loans) or the only
other place for long-term real estate
mortgages—insurance companies.
$66 million: New loans require
40% down on current value. On refi­
nance loans we will loan 75%.
$50 million: FLB, insurance com­
panies, contract purchases.
$20 million: We will make some
farm r/e loans on a 20-year amor­
tized basis with either a three-year
or five-year maturity basis. Federal
Land Bank is still making some
loans. We understand Travelers In­
surance Co. is considering some
farm loan applications. Iowa’s mora­
torium has caused some insurance
companies to wait until that expires.
A number of brief comments men­
tioned that if and when such loans
were made they must cash-flow, be
Banker, February, 1986
Federal Reserve Bank of St. Louis

regular customers, and terms would
be for 60% of appraised value and
rate re-negotiable.
Chart No. 7
Q. Do you plan to use FmHA pro­
grams for your farm customers this
Nearly three-fourths of the re­
spondents—72.8%—said “Yes” to
this question; 8.4% said “No”;
11.8% said “Don’t Know Yet” and
7% did not respond to the question.
These details are in Chart No. 7.
A follow-up question asked “what
percent of your ag loans will you try
to get into these FmHA programs?”
The answers were so varied that
tabulation would not reflect a mean­
ingful response. However, except for
an occasional reply that had “50% ”
or perhaps “ 100%,” practically all
other replies ranged downward from
25%. Comment follows:
$140 million: Guaranteed loans
used on customers with minimal
$62 million: Since the State of
Wyoming has a buy-back program
at a subsidized interest rate, we plan
to try and work at least our heavy
loans through the guaranteed pro­
gram as the FmHA will accept this
as an interest rate write-down.
$28 million: Subordinated colla­
teral (lending) is like having a securi­
ty blanket. It makes you feel good
until you find out there was no crop
or the livestock has all died.
$60 million: Difficult to place
loans with FmHA.
$58 million: Sending virtually all
customers for emergency loans due
to ’85 drought disaster declaration.
Farmer can receive 4% loan.
North Dakota
$17 million: Experience from 1985
regarding these programs is poor.
Several farmers need the help but
FmHA officials seem intent upon
eliminating some eligible farmers.
Don’t blame them as some farmers
are only stalling for more time when
what they need is not time but bet­
ter prices, management and luck.
South Dakota
$17 million: We intend to use
FmHA programs with as many cus­
tomers as possible. Any marginal
credit or potentially marginal credit
will be referred to FmHA.
$35 million: Only have a very few
on hand. Lousy setup from FmHA.
$19 million: Currently have 45%

of ag portfolio guaranteed. Am ex­
cited about flexibility of the new
$90 million: Time is the problem.
It takes six months to get answers
from the local FmHA office and that
is not the intent of the guarantee
$21 million: Don’t know how co­
operative the FmHA will be.
$23 million: FmHA has the best
program out now this year. They
have a guaranteed operating line of
credit for three years. You only pay
a one-time charge for the guarantee
fee and the line of credit is guaran­
teed for three years. They have a lot
of good programs for your farm cus­
tomers now.
$39 million: Our FmHA office is
like a Maginot line—they act as if
they were lending their own per­
sonal funds. It is not functioning as
intended and, therefore, is of margi­
nal assistance to our borrowers and







Q. Do you plan to use FmHA pro­
grams for your farm customers this
Yes = 72.8%
No = 8.4%
Don’t Know = 11.8%
No Answer = 7%

$10 million: We find it impossible
to deal with local FmHA office;
therefore, the only way we will deal
with them is to send farmers there
to get direct loans. A comment by
one of the women in the FmHA of­
fice was, “You need me worse than I
need to talk to you. ” I do not need to
try to do business with people with
attitudes like that.
$24 million: At this point the gua­
ranteed loan doesn’t sound like it is
in the banker’s best interest to be in­
$39 million: Very little success
getting loans from FmHA.
$31 million: Have achieved 25%
guaranteed loans of our total
$75 million: Guarantee loans only
prevent examiner criticism. If farm-







ers are in that condition they are
most likely near insolvent.
$24 million: Trying to set up some
lines on term basis over seven years
to 20 years when real estate equity
$38 million: FmHA has been
beneficial in lowering bank risk.
$46 million: Still too much paper­
work, inconsistencies and lack of
program knowledge by personnel in
$48 million: Feel that if you gua­
rantee the loan that the repayment,
if need be, will be questionable.
Settling with the FmHA is a night­
$14 million: Will make as many of
them as we can. We get no help from
them in our area.

“We have a very good FmHA office. The
only problem they have is adequate time
to get the work completed.”

answer. I feel there is much room for
improvement in the FmHA system.
$55 million: They were very re­
sponsive in 1985. Our county direc­
tor left December ’85, so don’t know
what direction it will go in 1986.
$58 million: Not in the past. New
personnel at FmHA have made
some improvement.
$60 million: We have a very good
FmHA office. The only problem
they have is adequate time to get
the volume of work completed.
$65 million: Problem credits do
$80 million: Overloaded for staff
not have enough available collateral available.
to qualify for guaranteed loans.
$80 million: Slow processing prob­
$45 million: Will continue to re­
quest direct loans which pay us off,
Q. Do you feel that FmHA in your area
is being responsive to farmers and/or
and restructure customer’s debts
bankers needs at this time?
totally with FmHA. Received over
$1 million in payoffs in 1985.
Yes = 55.1%
$14 million: To date we seem to
have had trouble getting guaranteed
No = 30.3%
loans approved for varied reasons...
will keep trying.
Don’t Know = 7.7%
$48 million: We work closely with
FmHA. The Farm Depression is too
big for anyone except federal gov­
$30 million: FmHA supervisors in
ernment to handle.
$27 million: FmHA very difficult Pocahontas and Humboldt counties
to work with in this area. They try have been cooperative and respon­
to find reasons not to make a loan, sive.
$30 million: Two counties good,
rather than a reason to make one.
$16 million: The need is for in­ one county bad.
$14 million: Our FmHA office has
sured loans for a reduction in debt
worked closely with us and seems to
service rather than guarantees.
do as agreed.
$20 million: Really tough to get
Chart No. 8
approvals and we are a Certified
Q. Do you feel that FmHA in your Lender.
area is being responsive to farmers
$16 million: FmHA has generally
and/or bankers needs at this time?
done an excellent job. The unfortu­
Ju st over half, or 55.1% of the re­ nate fact is that some operations
sponding bankers said “Yes” to this cannot be salvaged.
question. A disturbing 30.3% said Nebraska
“No,” while the remainder either
$50 million: The local office tends
said “Don’t Know” or didn’t answer to be very slow in their processing of
the question.
applications and also leaves us with
Some of the comment follows:
the impression that they don’t fol­
low through on their policies, caus­
$51 million: I feel FmHA cannot ing sometimes long and unnecessary
make a decision and cannot get their delays.
work done in a timely manner. We
$50 million: They are trying, but
have had customers messed around their work load is too heavy to do a
by FmHA for up to one year and good job. Guaranteed loans are not
then they still did not get a solid the answer.
Federal Reserve Bank of St. Louis

$25 million: This (positive) change
took place in about October, 1985,
when a new office was created and
giving us a new FmHA representa­
$75 million: They cannot take on
additional work load without at
least doubling their already inadequ­
ate staffs.
$87 million: Positive and coopera­
tive in media comments, but not in
reality in dealings with farmers and/
or bankers.
Size unlisted: Extremely hard to
get cooperation from area FmHA.
They don’t seem responsive to the
guarantee program. Speculate the
county supervisors had a hand in
not granting us approved lender
$180 million: We have had no suc­
cess whatsoever in getting coopera­
tion from the FmHA.
$26 million: Too much politics.
They are not interested in any mar­
ginal customers. Government pro­
grams never seem to reach our part
of the state.
$40 million: Sometimes they have
been disappointing, but part of the
problem lies with their being under­
staffed to meet all the loan demand.
$31 million: They are responsive,
but when it takes four months or
longer, what help is it?
$27 million: FmHA is short on
manpower to handle the load.
$90 million: We have had requests
for guarantees in since April ’85 and
they just sit on them—no action.
$50 million: I think it is improv­
ing the past two months.
$42 million: One detrimental fac­
tor is that our county office is saying
that anyone with off-farm income in
excess of $20,000 does not qualify as
a farmer.
$39 million: Many FmHA offices
are doing a great job. We happen to
have one that is failing to respond to
the spirit and letter of their charge.
$10 million: Our FmHA office is
very difficult to work with. They will
Northwestern Banker, February, 1986

not schedule an appointment with­
out a waiting period of six to ten
weeks. They will not give out forms
for farmers to complete, and offer no
help as to what might be available or
how to go about applying for vari­
ous loan programs that are avail­

South Dakota
$50 million: Bad situation in
South Dakota. Not carrying out fed­
eral intentions.
$17 million: As a general rule,
FmHA is being responsive. We
work with four different FmHA of­
fices and there seems to be no real
consistency among the different of­
$28 million: Our office hasn’t been
as liberal as others in state, but
rightfully so. I feel other offices
should tighten up.
$17 million: FmHA is responding
to lifetime FmHA borrowers who
haven’t a prayer of making it, while
first-time borrowers fail “to get to
first base.’’
$12 million: Due to our respon­
siveness in the past, FmHA is sad­
dled with non-performing loans
hampering its ability to be effective
now. More debt is not the answer to
agriculture’s problems!!
North Dakota
$30 million: They approach all dif­
ficulties with us with the idea the
bank wants to get bailed out. They
are not doing the farm customers
$43 million: FmHA personnel in
our area do an excellent job and are
very cooperative.
$60 million: Certain programs of­
fer some help. FmHA personnel
unable to process applications pro­
mptly due to heavy demand and lack
of staff. I feel they require excessive
collateral under current conditions.
Chart No. 9
Q. How do you think the new
Farm Bill program will affect your
ag portfolio?
The Farm Bill had been enacted
only a short time before this survey
was sent to bankers; consequently,
they did not have a great deal of
time to study its ramifications,
although many of its features had
been thoroughly discussed and aired
in recent months. Chart No. 9 shows
th at 11.5% feel the Bill will
Banker, February, 1986
Federal Reserve Bank of St. Louis

strengthen their ag portfolio, while
20.7% feel it will weaken it, 31.6%
figure it will have no effect on them,
28.5% said they don’t know yet and
7.7% did not answer this question.
Selected comments follow:
Q. How do you think the new Farm
Bill program will affect your ag port­
Strengthen It = 11.5%
Weaken It = 20.7%
Have No Effect = 31.6%
Don’t Know Yet = 28.5%
No Answer = 7.7%

$80 million: Income will be less
going in at signup. Market strength
must come about for many borrow­
ing farmers.
$38 million: It will maintain in­
come in the first two years, but the
built-in price decrease will weaken
the farm economy over the longer
$48 million: I look for GrammRudman to reduce the farm bill pay­
ments to the farmer. Where it cur­
tails production and encourages soil
conservation it will help us all.
$48 million: The loan prices make
it very difficult to cash flow, and defi­
ciency drags to April, thus making
tough decisions that are delayed too
long into spring. Plus 20% set-aside
is a real problem.
$38 million: Lower loan rate,
lower ta rg e t p ric e —assum ing
Gramm-Rudman takes effect, less
production, cheap corn, cheap hogs,
etc., etc.
$83 million: Too much discretion
in the hands of Secretary of Agricul­
$10 million: I believe the new
Farm Bill over time will force our
farm customers to become better
marketers. As always, the better
managed units will do better.
$26 million: It will strengthen our
ag loan portfolio mainly because the
uncertainty is no longer an issue. I
am going to be a bit more optimistic
and say that farm land prices will
begin to turn around sometime in
1986 as I am beginning to get some
inquiries from outside monied peo­
ple wanting to buy bargain farm

land. I do not encourage outside
ownership and would much rather
have the land owned locally.
$16 million: If the dairy whole
herd buyout materializes attractive­
ly at all, we will definitely benefit.
We are in a large dairy area.
$31 million: The Farm Bill is a di­
saster. When you lower the income
of those farmers who want to farm
to pay for those that are either city
farmers or retiring, you put a big
strain on your good farmers.
$39 million: I would think that
the result will be negative relative to
the old program simply because sup­
ports will be lower. Long-term bene­
fits are unlikely to be felt for at least
several years.
$90 million: Net cash flows will
still be too low. The weeding out pro­
cess will take another year at least.
The farm economy in our area is
traumatic now—it will get worse
during 1986.
South Dakota
$19 million: It will lower market
prices in 1986. Much uncertainty
about subsequent years.
$35 million: Farm program is
written to help Republican Presi­
dent, not farmers. No damn good for
agriculture and will have same effect
on the country, but Republicans
won’t focus on this!!
North Dakota
$49 million: Cash flow will pro­
bably decrease with lower loan rates
pulling cash prices lower, thus re­
turning less on bushels produced
outside the program or over proven
$50 million: The lower prices for
grain, as well as dairy supports, will
make it increasingly difficult to cash
$43 million: Advance payments
made by CCC greatly reduce bank
loan volume in terms of operating
It appears from this survey that
midwest ag banks have ample
money to loan to farm customers.
Their problem will be in determining
which ones can be financed with rea­
sonable prospects of paying back
the depositors’ money being loaned
out—an age-old problem—but one
made more critical by events of the
past two years that have placed
farmers financial problems directly
inside the community banks’ loan

Citing “soft,” hidden costs:

South Dakota banks choose
off-premise service center
Written especially for
T he N orthwestern B anker

Farmers State Bank, Irene, S.D.
Hurley State Bank, Hurley, S.D.
ABOUT THE AUTHOR— Jam es B. Heine, C.P.A., joined B illion
Com panies in Sioux Falls as co n tro lle r in 1984. The holding com ­
pany ow ns Farmers State Bank in Irene and Hurley State Bank, as
well as other interests. Mr. Heine was graduated from the Univer­
sity of M innesota w ith a M aster’s degree in Business T axation,
and from M ount M arty College w ith a Business degree. He was
em ployed w ith M cG ladrey, H endrickson & Pullen ce rtifie d public
acco un ting firm from 1978 to 1984.

UR two banks (with a Farmers State office in Viborg) range in size up to $30 million in assets,
they’re within 25 miles of each other, have two to three
officers each, and staffs of up to 11 people. Our activity
is above the national average per employee and in the
process of considering whether to establish an in-house
computer system or to utilize a service center we
wanted to maintain that activity efficiency per em­
ployee. We didn’t want to add to our overhead, but we
needed operational improvements. With this back­
ground and these needs, we considered our alterna­
tives—in-house or service center.
First, we studied three popular, good in-house sys­
tems, examining both their hardware and software.
Then, we looked at batch type processing via courier,
with the option of being on-line with one of two service
centers we were considering.
Second, we studied the monetary standpoint. I ran
through my figures, taking into consideration all fac­
tors, such as film, microfiche — a lot of small items one
tends to overlook, and there are a lot of them.
We looked at purchasing in-house equipment and
figured a five-to-six year life until being outdated on
hardware. We also figured software would be continu­
ously updated. Then, we figured we would need
another employee.
Also, we weighted in a minimal factor to account for
the computer going down at critical times and the cost
of high-priced help to stick around until it is corrected.
All of these comparisons washed out to be a “push”
on the cost status.
Third, we studied the “soft” costs. For example, my
time worrying about getting the 1099s run off Decem­
ber 31, when the computer goes down, then it’s my
problem. We have three banks, so I can imagine adding
in the complexities of problems interconnected among
them. Also, we would need to provide backup if some­
Federal Reserve Bank of St. Louis

one is sick or quits.
We looked at the farm economy and decided our
presidents and loan officers needed time to be inspect­
ing farms and projecting cash flows, not fixing a down
I call these “soft” costs.
Finally, we made our decision. We recognized there
is lots of flexibility with in-house processing and we
were impressed, but we decided for our circumstances
and objectives to go with a service center. Then, our
next step was to examine a courier versus an on-line
system. The on-line vendor was willing to work with us
and was most responsive. If bank customers need
something — they develop it.
Based on this research, we selected American Data
Technology. Some of the positive factors resulting
from this choice were these:
• Our proof operation consists of entering into a
video proofing mode, with all keystrokes captured.
• We were below average on personnel for banks our
size and wondered if we could maintain this. But, not
only have we not added personnel, our staffs are going
home at 4:03 p.m. when we lock the door! It used to be
4:30 p.m., or later, before they left.
• Since ADT sends our Fed letter every night we de­
cided to let them do all our printing and deliver it by
courier in the evening, getting same day credit. The
courier is cheaper than mail most times, but we can use
the mail when we want to.
• Our vendor costs versus buying machines. If we
expended $150,000 for a complete system of hardware
and software, we would have taken that out of our in­
vestment portfolio. At the time of our decision we
could buy a five-year T-Note at 11.5%, a realistic in­
vestment. This came out just about even with our ven­
dor costs, but it eliminated the “soft” costs.
Summarizing, we list these as the advantages of
working with ADT:
1. Ease of conversion, rather than doing it ourselves.
2. Consolidated reporting and resultant controls.
3. Ability to run three banks with no proof machines.
4. Avoiding the “soft” costs of in-house processing
that absorb money and time.
5. Fewer capital dollars expended.
6. Focuses capital toward earning assets, not depre­
ciation on equipment.
7. Less fear of technological obsolescence.
8. Less management distraction and headache in
“leanly” staffed banks.
9. “Marketability” of individual banks if one
becomes an acquisition candidate.
We think these benefits clearly illustrate why we de­
cided that going on-line with a service vendor like ADT
meets the overall objectives of our three community
Northwestern Banker, February, 1986


After 5 years’ experience
with in-house computer—

‘Staff would revolt
if we went
off-premise now!’
“TODAY, we operate w ith fewer em ployees in our bookkeeping
departm ent than in 1981. The system has accom m odated our
grow th w ith o u t adding to our overhead.”

A N orthwestern B anker interview with
State Bank of Cairo, Nebr.
Editor's Note: The State Bank of Cairo, Nebr., will
soon celebrate the fifth anniversary of installing its
own in-house computer system. The N orthwestern
B anker featured this central Nebraska community
bank in a February, 1981, article shortly after the in­
stallation of its new system. The article focused on the
reasons why the $24 million bank selected in-house
computerization. Both banking and computer hardware/software technology have changed dramatically
since the State Bank of Cairo ordered its system from
Modern Banking Systems, Inc. of Omaha in late 1980.
To determine how State Bank officials feel about this
in-house system five years later, we asked Richard
Heckman, vice president of the bank, who authored the
article five years ago, to give our readers an up-date on
the system. His comments follow in response to sev­
ered questions:


H ow h a s th e earlier d e c is io n b e n e fite d y o u r b a n k
■ a fte r fiv e y e a r s?


We made the decision to install our own system
■ primarily because of cost considerations in 1980.
To have all our work processed by our correspondent
processor was getting very expensive. We selected
Modern Banking Systems, Inc. of Omaha because we
felt they really understood the community bank mar­
ketplace better than the other vendors. In addition,
they had the best on-line CIF based system available
at an affordable cost for a bank our size.


Has the decision to install an in-house system
■ proven to be a good investment?


Yes, it has. We have grown from $24 million to
■ $33 million since the installation of our MBS
System. Today, we operate with fewer employees in
our bookkeeping department than in 1981. The system
has accommodated our growth without adding to our
overhead. The bookkeeping staff, which runs the com­
puter, is finished with all updates, reports and notices
Northwestern Banker, February, 1986
Federal Reserve Bank of St. Louis

by 4:30 p.m. From a cost vs. investment standpoint,
we are paying approximately half of what it would cost
if our work was done by a service bureau, and this
takes into consideration depreciation costs, opportuni­
ty, maintenance and personnel costs. The system paid
for itself in about 36 months, but even more important
is that we have been able to utilize a completely inte­
grated CIF System to manage more effectively our
customer and account data.
Has your software kept pace with the many
in the industry?
Q changes


Modern Banking Systems, Inc. has been particu■ larly good at keeping our software up-to-date.
We have never missed a regulatory change deadline.
Enhancements to our software have been as regular as
clockwork. Each new software release has made our
job easier and it always includes additional features
important to our bank. The monthly MBS software
maintenance fee takes care of the question of updates.



H ow a b o u t c o m p u te r d o w n tim e d u r in g t h e p a s t
■ f iv e y e a r s — h a s it b e e n a p ro b lem ?

Naturally, any system downtime is at the least a
■ nuisance and at worst can be disastrous. I am
thankful to say in our case it has never been anything
more than a minor disruption. The Texas Instruments
hardware we utilize has been exceptional. We probably
average fewer than three service calls per year! Also,
since MBS provides the hardware maintenance ser­
vice, we never worry about possible finger-pointing be­
tween organizations. This single-vendor responsibility
eliminates many potential service problems. Let me
also say that part of the reason for the success of our
in-house operation is that everyone in the bank has
great trust in the MBS System. There isn't any suspi­
cion or apprehension about system results because of
chronic hardware or software problems. We are confi­
dent in the accuracy and integrity of system data.



STATE Bank of Cairo, a tow n of 750 population 13 m iles northw est o f Grand Island, was founded in 1910 and now has $33 m illio n in de­
posits. RIGHT— Using th is MBS equipm ent, Mr. Heckman says, “ the system paid fo r its e lf in about 36 m onths.” The bank’s off-prem ise
processing costs had moved from $7,000 to $28,000 per year in the six years ju st prior to purchasing the on-prem ise system.


Has an in-house system improved or hindered
■ your competitive position?


A There are several advantages to having an inr \ m house system in addressing competitive posi­
tioning. These advantages focus on three key areas of
our bank — marketing, customer service and pricing.
The MBS System provides a completely integrated
• CIF System architecture which allows us to visualize
the full banking relationships our customers have with
the State Bank of Cairo. This enables us to chart more
effectively our product and service strategies. The inhouse system allows our officers and staff instant,
® easy access to account data to provide better service
and counseling for our customers. Finally, we can es­
tablish or modify our product and service pricing
quickly, depending on competitive situations or inter­
nal decisions. The ability to get at marketing and pro® duct information any time we want or need it is ex­
tremely valuable. This “Ad Hoc” independence to
managing and utilizing information is as important to
us as the efficiency of the system’s bookkeeping func_ tions.

PENTABS Two Software
Packages Geared to Banks




PENTABS has announced two
software packages geared to the
banking industry: The 401(k)/Defined Contribution Pension Plan Administration System and the Pen­
sion Plan Trust Accounting System.
The software packages are designed
to help banks and savings and loans
institutions attract stable retirement plan deposits and produce fee
income for plan administration and
trust accounting duties. Both sys­
tems are high-quality menu-driven
software packages designed specifically to run on IBM and IBM com­
Federal Reserve Bank of St. Louis


Do you plan on staying in-house and with the
■ same vendor?


Even if I wanted to, and I don’t, I believe the
■ staff would revolt if we were to go back off-pre­
mise. Our bank and our employees like the indepen­
dence of processing our own data. We are in control
and we do not have to rely on another organization to
do our work. Also, we are not subject to the same cost
variables, such as periodic rate increases and volume
increases that most off-premise users are. Finally, we
have the ability to assert our bank’s personality and
independence through our in-house system. We
couldn’t do that tied to an outside data processor.
As for any thoughts about a vendor change, no, we
are very happy with Modern Banking Systems. They
have provided an excellent, cost/effective product
since 1981 and they have backed their product with
quality support. Naturally, I do try to keep current
with the technology and software changes that have
taken place since we installed our system; however, I
have not found other bank computer systems that in
1985 are better for the community bank. I think this
speaks for itself so far as MBS’s continuing ability to
supply us with a state-of-the-art system.

patible microcomputers.
The 401(k)/Defined Contribution
System is a simple to use software
package that prepares pension plan
proposals and performs a full range
of administration tasks for popular
401(k), Profit Sharing, Money Pur­
chase, Keogh and Target Benefit
Plans. All federal regulations are
built into the system, and qualifica­
tion tests are automatically per­
formed. And, the System allows
complete flexibility in choosing in­
vestment options, insurance pro­
ducts or other financial products.
Clear professional reports such as
the Age and Service Analysis, Cen­

sus Reports, Participant Summary
Report, Summary of Accounts, Con­
tribution Analysis, Participant Cer­
tificates, Qualification Analysis are
generated at the touch of a button.
The Pension Plan Trust Account­
ing package is a complete record­
keeping system for retirement pen­
sion trusts, other types of trusts or
collections of assets. Designed speci­
fically for the non-accountant, the
system handles all transactions easi­
ly and prepares a full range of re­
ports and financial statements in­
cluding a reproduction of the 5500-C
facsimiles now m andatory for
Keogh plans.
Northwestern Banker, February, 1986


I BAA To Meet in Las Vegas, March 9-13
EMBERS of the Independent Bankers Association of America, their
spouses and families will gather in Las Vegas, Nevada, March 9-13 for
the 56th annual IBAA Convention. Presiding will be IBAA President B.F.
Backlund, president, Bartonville Bank, Bartonville, 111. Officers serving
with him the past year are: President-Elect—Charles T. Doyle, CEO, Gulf
National Bank, Texas City, Tex.; 2nd V.P.—Thomas H. Olson, president,
Lisco State Bank, Lisco, Neb., and Treas.—Charles L. VanArsdale, presi­
dent, Bank of Castile, Castile, N.Y. The IBAA executive director is Ken­
neth A. Guenther, who heads the Washington headquarters staff.
Important highlights of the convention are:
General Session Speakers:
• Robert L. Clarke, U.S. Comptroller
• L. William Seidman, FDIC Chairman
• John Sloan, National Federation of Independent Business
• Edward R. Madigan, U.S. Representative (R-IL)
• Charles Russell, president of VISA
• Paul Nadler, Rutgers University
• Hugh Downs, ABC commentator
• Les Brown and his Band of Renown
• Helen Reddy, vocalist
• Mark Russell, political satirist
• Steve Garvey, baseball star
Special Sessions for Spouses:
• “Coping in Today’s World’’
• “Time To Get Your Act Together’’
• “Financial Self Defense’’
• ‘‘The Life of a Las Vegas Showgirl’’


institutions with the most complete
line of quality products in the world.
LeFebure maintains manufactur­
LeFebure Corporation, Cedar ing facilities at Anamosa and
Rapids, la., announces the termina­ Marion, la., and Farmington, Mo.,
tion of its agreement with Docutel/ in addition to the Cedar Rapids
Olivetti Corporation to market auto­ plant. It operates out of 31 regional
mated teller machines produced by and branch offices in major cities,
with hundreds of sales and service
the Dallas-based firm.
The announcement by Mylo D. points throughout the U.S.
Schultz, vice president of LeFebure
sales and marketing, is a prelude to
LeFebure’s introduction of its own NABW Introduces New
entry into the ATM market sche­
Financial Woman Magazine
duled for the first quarter of 1986.
A new magazine has been intro­
Mr. Schultz emphasized that Le­
Febure recent decision to build an duced which covers the latest issues
ATM merely underscores a continu­ and trends in financial services from
ing commitment to provide financial the unique perspective of women

LeFebure and Docutel End
ATM Marketing Agreement

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







and men executives who manage
this newly competitive industry.
Executive Financial Woman is a
40-page bimonthly magazine, pub­
lished by the National Association
of Bank Women. Using interviews
with industry leaders and analysts
and industry trends and statistics,
Executive Financial Woman paints
an up-to-date picture of the financial
services and the role of women in
banks, credit unions, thrifts, insur­
ance, investments, financial plan­
ning securities, government and cor­
porate finance.
The magazine boasts original re­
search, lively writing, exclusive
interviews, four-color covers and
strong, attractive graphics.

years ago as a teller and has been an
investment advisor since 1979.
Mr. Scott joined the bank in 1980
and has been in the consumer loan
area for a year.

Three Promoted in Evanston
First Illinois Bank of Evanston
has announced the promotion of
Bruce N. Duff to executive vice
president and trust officer; Howard
I. Kain to executive vice president,
which also includes Colonial Bank of and Lorenzo Dawson to senior vice
Pres. Named in Rockford
Rockford; Carpentersville Savings
Carl J. Dargene, chairman of Bank; First National Bank, Pekin; president and cashier.
Amerock Corporation and senior First National Bank, Woodstock;
Mr. Duff heads the financial and
vice president of Anchor Hocking and Americorp Life Insurance Com­ trust services division at all the
Corporation, will resign those posts pany, Phoenix, Arizona.
First Illinois Banks. He holds his
on February 25, 1986 to become
degree from the University of
AMCORE Financial, Inc. assets
president and CEO of AMCORE Fi­ at year-end 1985 are estimated at Michigan and a BS in accounting
nancial, Inc., (AFI) Rockford-based approximately $900,000,000.
from the University of Illinois.
multi-bank holding company, ac­
Mr. Kain is responsible for admin­
cording to Roger Reno, chairman of
istration and operations of the bank.
He holds a BA and an MBA from
Six Promoted in Aurora
the University of Chicago.
Aurora National Bank, Aurora,
Mr. Dawson is responsible for re­
has announced several promotions: tail banking and bank operations.
Ralph L. Egeland to chairman; He holds a BA from Alabama A&M.
David G. Stangland to executive
vice president; Connie J. Graham to
assistant vice president; Diane M.
Beukelman to marketing officer; Awarded in Des Plaines
Des Plaines National Bank was
Karen L. Meyer to assistant cashier,
and Stephen F. Scott to assistant the recipient of two “Excellence in
Business’’ awards presented recently
Mr. Egeland, president of Aurora by the Des Plaines Economic Devel­
Mr. Dargene will fill the position National Bank, has been given the opment Commission.
The award was created by the
vacated by the death of David W. additional title of chairman while he
Knapp, formerly AMCORE Finan­ continues as chief executive officer Commission to identify the contri­
of the bank and its parent, Aurora butions local businesses have made
cial, Inc. President.
Mr. Dargene has served on the Bancshares Corporation. He began to the city of Des Plaines from Aug­
AFI board and executive committee his career at the bank in 1971 follow­ ust 1, 1984 through July 31, 1985.
A panel of independent judges
since 1982 and, prior to that, on the ing employment at two other finan­
from the business press, academia
board of the American National cial institutions.
Mr. Stangland began his banking and state government judged Des
Bank & Trust Co. (American Na­
tional Bank and Trust Co. and Illi­ career thirteen years ago at Aurora Plaines companies in two categories:
nois National Bank and Trust Co., National, as a trust administrator in economic enhancement and commu­
both of Rockford, merged in 1985 to the trust department. After three nity enhancement. Des Plaines Na­
become AMCORE Bank N.A., and one-half years he transferred to tional Bank was recognized for its
the commercial loan division and achievements in the community en­
Mr. Dargene was associated with most recently served as senior vice hancement category and was unani­
mously selected from among the
Amerock and Anchor Hocking Cor­ president.
Ms. Graham has been in the other businesses receiving awards
poration for more than 34 years.
In addition to the Dargene ap­ bank’s installment loan area for fif­ as the most outstanding business in
pointment, Mr. Reno announced teen years. Most recently she served both categories.
The award for economic enhance­
that he will assume the chairman­ as assistant cashier. As assistant
ship of AMCORE Bank N.A., Rock­ vice president in consumer lending, ment was based upon a company’s
ford, a post also held by Mr. Knapp she is responsible for consumer growth in assets and revenue, and
loans, the student loan program and the ways in which that growth has
prior to his death.
benefited the city of Des Plaines or
Mr. Reno also announced that J. real estate loans.
Ms. Beukelman joined the mar­ the company’s employees. In addi­
Peter Jeffrey, president and CEO of
AMCORE Bank N.A., Rockford has keting department of Aurora Na­ tion to its 16 percent growth in
been named a director of AMCORE tional two years ago and most re­ assets and a 33.8 percent increase in
Financial Inc. AMCORE Bank, cently served as marketing coordi­ net revenue, Des Plaines National
Bank increased its net investment in
Rockford, is the lead bank in the nator.
Ms. Meyer joined the bank seven its physical plant by 31.5 percent.
holding company’s financial group
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1986


Illinois News

Celebration in Wheeling

Savings Bank, Ford City Bank &
Trust Co. in Chicago and in Bur­
bank, and Bank of Yorktown in
The directory, produced by South­
western Bell, provides listings of
businesses which offer a special ser­
vice or discount to senior citizens.
U.S. citizens age 60 or older are eligi­
ble to receive the directories and a
card which entitles them to the dis­
The Cole-Taylor Banks are among
the listings in the directory. Eligible
seniors will receive their first set of
checks free when they open a check­
ing account at any Cole-Taylor
bank. Each bank also offers other
special services to senior citizens.
Over 2,000 people have already
signed up for the directory and card
through the Cole-Taylor banks.

lion asset Community Bank and
Trust Company of Edgewater, lo­
cated at 5340 N. Clark Street, Chi­
cago, and its parent, Edgewater
Capital Corporation.
According to First Colonial Bankshares Chairman and Chief Execu­
tive Officer C. Paul Johnson, the ac­
quisition gives the bank group fur­
ther access to another important
Chicago business and retail market.
Terms of the agreement were not
disclosed and the purchase is sub­
ject to regulatory approval. This ac­
quisition will bring First Colonial
Bankshares’ total assets to more
than $600 million.



Robert M. Wrobel, senior vice
president, has been elected execu­
tive vice president of Amalgamated
Trust & Savings Bank.
In addition, Gerald Steinmetz
elected a senior accountant and
Poster Offered in Lombard
investment officer and Vicky Brock
The Bank of Yorktown, Lombard, Benda was named installment loan
offered a poster at a reduced price to officer and assistant manager of the
its customers and friends as a holi­ installment loan department.
day value. The poster was entitled
Mr. Wrobel, a graduate of North­
“The Chicago Bears at Soldier western University, joined Amalga­
Field” and was done in watercolor mated in 1972, was named vice pres­
by Brad Bennett. Mr. Bennett is the ident in 1979, and elected senior vice
Seven Appointed in Skokie
only living American artist with the president in 1984. He also serves on
Skokie Trust & Savings Bank re­ distinction of having each of his the boards of Oak Brook Bank and
cently appointed Phyllis Cramer to suites of prints registered with the First National Bank of Oak Brook.
assistant vice president of opera­ Library of Congress as works of his­
* * *
tions; Waltraud Goetz to assistant tory. The bank offered the prints for
vice president of consumer lending; sale both framed and unframed at a
Stephen L. Rulo has recently been
Leslie Packer to assistant vice presi­ reduced price as a gift to the com­
vice president in Michigan
dent of operations; Carole Botoske munity.
National Bank’s commer­
to assistant personal banking man­
cial loan department. Mr. Rulo pre­
ager; Patricia LeBeau to assistant
viously served as vice president,
operations manager; Roberta Lustig
commercial lending at Harris Bank
to assistant cashier, and Jacquelaine
Hinsdale, which he joined in 1976.
McIntosh to personal loan officer.
* * *
Ms. Cramer has been an employee
of Skokie Trust for eight years.
John W. Gabbert, president and
Ms. Goetz has been employed at
CEO of the First National Bank &
the bank for 18 years.
Trust Company in La Porte, Indi­
Ms. Packer has been with the
ana, and Max J. Naylor, owner and
bank for five years and will also
operator of a grain and livestock
manage bookkeeping, customer ser­
farm in Jefferson, Iowa, have been
vice, and the safe deposit area.
elected to the board of the Federal
Reserve Bank of Chicago.
Banks Participate in
Both Mr. Gabbert and Mr. Naylor
were elected to serve three-year
Program for Seniors
terms on the board by Federal Re­
It was recently announced by
serve System member banks located
Cole-Taylor Financial Group, Inc.
the Chicago Fed’s service area—
that all five banks would be senior
seventh district.
citizen sign-up locations for the “Sil­
ver Pages Directory.”
The Cole-Taylor Bank’s eight lo­
First Colonial Bankshares Corpo­
cations are Main Bank in Wheeling,
Main Bank in Chicago, Drovers ration, Chicago, announced that it CHICAGO NEWS . . .
Bank of Chicago, Skokie Trust & has agreed to purchase the $42 mil­ (Turn to page 37, please)

MAIN Bank’s W heeling o ffic e recently cele­
brated the firs t anniversary of Cole-Taylor’s
purchase of the W heeling T rust & Savings
Bank. Sheila Schultz, m ayor of W heeling,
was on hand w ith Sidney J. Taylor, ch a ir­
man and CEO, and Irwin H. Cole, deputy
chairm an of the Cole T aylor Financial
Group and W illiam Olsen, president and
CEO of Main Bank to o ffic ia lly celebrate the
event. Clowns also handed out balloons
and co lorful visors and an assortm ent of
treats to the bank’s custom ers and friends.

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


Acquisition by First
Interstate Signed

states have already enacted or are
actively considering similar laws
allowing interstate ownership of fi­
In a joint announcement recently, nancial institutions.
David C. Beck, president and chief
According to Dean Treptow,
executive officer of First Interstate WBA president and president of the
Corporation of Wisconsin, Sheboy­ Brown Deer Bank, the Wisconsin
gan, and Thomas R. Van Wyk, presi- Bankers Association is supporting
dent and chief executive officer of this regional compact to allow Wis­
Outagamie Bank Shares, Inc., Ap­ consin banks to enter interstate
pleton, reported that a definitive banking in a controlled environ­
agreement calling for the acquisition ment. The WBA represents 568
of Outagamie by First Interstate commercial banks and is headquar­
<D has been signed. The affiliation is tered in Madison. “The states we are
subject to approvals by Outagamie proposing to join in reciprocal agree­
Bank Shares, Inc. shareholders and ments have common economic deno­
certain regulatory approvals.
minators, and mutual governmental
As of September 30, 1985, Outa- pacts, such as the Council of Great
# gamie had total assets of $109,393, Lakes Governors,” he said.
“This legislation is needed to
First Interstate, a multi-bank bring Wisconsin financial institu­
holding company, operates out of 20 tions into the 21st Century,” Mr.
locations and had total assets of Treptow added.
# $1,145,000,000 as of September 30,
An additional hearing on the in­
terstate bill was to be scheduled for
Under the proposed merger each Madison in late January or Febru­
share of Outagamie stock would be ary.
exchanged for two shares of First
# Interstate. The affiliation is ex­
pected to be completed by mid-1986.

ment Finance of Wisconsin, Inc.
Mr. Fredrickson has responsibility
for corporate credit quality, report­
ing and analysis, loan operations
and microcomputer-based manage­
ment information systems. He
joined First Interstate Bank of Wis­
consin in Sheboygan two years ago
as vice president in the loan admin­
istration area. Prior to that he was
an assistant vice president and cor­
respondent banking officer at First
Wisconsin National Bank, Milwau­
Mr. Schueller is an account officer
for major corporate customers. He
joined First Interstate Bank of Wis­
consin in Sheboygan in 1970, as a
management trainee, and later
served as a mortgage loan officer
and commercial banking officer
there. In 1977 he was promoted to
vice president in the business bank­
ing area.
Mr. Scheel has responsibility for
corporate banking customers in She­
boygan County and other areas of
Wisconsin. He joined First Inter­
state Bank of Wisconsin last year,
as a commercial banking officer.
Prior to that he worked as a com­
mercial banking officer at First Wis­
consin National Bank, Milwaukee.
Mr. Morgan supervises internal
and external financial reporting, tax
planning and compliance and bud­
geting. He joined the bank holding
company eight years ago as senior
auditor, and became vice president
and controller in 1979. Prior to that
he was employed at Ernst and Whinney, a public accounting firm in

Five Promoted in Sheboygan





Hearing on Interstate Bkg.
A bill to allow interstate owner­
ship of depository financial institu­
tions within an eight state region
has been the subject of a hearing in
Milwaukee on December 18 and one
held January 6 in Blair. Questions
were raised during those hearings on
the inevitability of interstate bank­
ing, effect on capital availability in
the state and the future of the small
independent bank.
The regional interstate bill being
considered for Wisconsin allows re­
ciprocal ownership between eight
states: Wisconsin, Illinois, Indiana,
Iowa, Michigan, Minnesota, Mis­
souri and Ohio. Four of these, Illi­
nois, Indiana, Michigan and Ohio,
have already passed enabling legislation. Nation-wide, thirty-three
Federal Reserve Bank of St. Louis

First Interstate Corporation of
Wisconsin, Sheboygan, has an­
nounced the promotions of five offi­
cers. Frederick M. Bowes II, Ralph
T. Fredrickson and Thomas N.
Schueller have been elected regional
senior vice presidents of the newly
formed corporate central commer­
cial credit group. Curtis J. Scheel
has been elected regional assistant
vice president of the credit group.
Edward A. Morgan has been pro­
moted to senior vice president and
Mr. Bowes joined the bank hold­
ing company in 1977 and works out
of First Interstate’s Sheboygan and
Shorewood offices, structuring large
credits throughout the state. He
also serves as a liaison with the cor­
poration’s Green Bay office and
manages First Interstate Equip-

Promoted in Menomonee Falls
F&M Financial Services Corpora­
tion, Menomonee Falls, recently an­
nounced the promotions of Gordon
C. Mueller and Lawrence K. Elton to
executive vice presidents of the cor­
poration. They will head newly cre­
ated divisions in the corporation.
Mr. Mueller currently is vice pres­
ident, chief financial officer of F&M
Financial Services Corporation, a
member of the corporation’s board
of directors and senior vice presi­
dent of F&M Bank, Menomonee
Falls. He joined F&M Bank in 1974.
Mr. Elton currently is, and will re­
main, executive vice president, chief
operating officer of F&M Bank,
(Turn to page 41, please)
Northwestern Banker, February, 1986


joined the bank in 1974 and worked
initially in the installment loan and
real estate lending divisions. He was
At Norwest Bank Worthington, successively promoted to real estate
Gary M. Hoffman has been elected mortgage officer, installment loan
president and chief executive officer. officer and assistant vice president
He succeeds John Troth, who will re­ prior to being named vice president
main as chairman until his sched­ in the commercial lending division in
uled retirement in October 1986. Mr. 1983.
Troth began his banking career in
1952 at what is now the Mitchell Pres. Elected in Rochester
branch of Norwest Bank South Da­
Norwest Bank Rochester has
kota. He was president of the bank elected Lance D. Davenport presi­
since 1970.
dent and chief executive officer. He
Mr. Hoffman previously served as joins
the bank from Norwest Bank
vice president/commercial loans of LaCrosse, Wisconsin, where he was
Norwest Bank Marshall. He began regional vice president and commer­
his banking career there in 1972.
cial business manager for Norwest’s
Region III. He succeeds Edgar M.
Morsman Jr., who has been ap­
Pres. Elected in Winona
pointed chief lending officer for
R.P. Roehl has been elected presi­ Norwest’s Twin Cities Corporate
dent of the Merchants National Banking Group, based in Minneapo­
Bank of Winona.
Mr. Morsman has headed the
Mr. Roehl, for­
Rochester bank since 1982. In 1984
merly senior vice
he was elected to the additional
president, suc­
posts of chairman and chief execu­
ceeds Gordon
tive officer of Norwest Bank Dodge
Espy, who re­
Center. Prior to coming to Roches­
tired from the
ter, he was vice president and head
position Dec. 31,
of loan administration for Norwest
1985. Mr. Roehl
joined the bank
Mr. Davenport began his banking
in 1967 from the
at Norwest Bank Des Moines
N ational C ity
in 1969. He was senior vice presi­
Bank of Cleveland.
In addition, T.R. (Bob) Hennessy dent and commercial banking man­
was elected chairman of the board. ager there when he transferred in
According to Mr. Roehl, he will facil­ 1981 to Norwest Bank LaCrosse as
itate strategic planning and re­ senior vice president and a director.
search opportunities for the newly He assumed his most recent post in
formed bank holding company. Mr. 1983.
Espy was elected as chairman emeri­
tus and senior vice president.

Norwest Worthington
Elects President

St. Bk. of Frost Reopens
As Frost State Bank

Pres. Elected in Virginia
Norwest Bank Mesabi, Virginia,
has elected Roger W. Suihkonen
president and chief executive officer.
He succeeds Norman H. LaPole,
who has left the bank to pursue
other interests. Mr. Suihkonen

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

On Dec. 20 the State Bank of
Frost, Frost, was closed by Minne­
sota Deputy Commissioner of Com­
merce James G. Miller, and the
FDIC was named receiver. The
FDIC then approved the assump­
tion of the deposit liabilities of the

bank by Frost State Bank, a newlychartered state nonmember bank.
The failed bank reopened as Frost
State Bank on Dec. 23 and its depos­
itors automatically became deposi­
tors of the assuming bank, subject
to approval by the appropriate
Mr. Miller said, “The bank failed
because of an unusually high percen­
tage of poor quality loans and the re­
cent loss of depositor confidence.
The seriousness of the problem was
compounded by withdrawals in ex­
cess of $1 million by depositors over
the past 30 days.”
Frost State Bank will assume
about $6.2 million in 1,300 deposit
accounts and has agreed to pay the
FDIC a purchase premium of
$34,101. It also will purchase certain
of the failed bank’s loans and other
assets for $5 million. To facilitate
the transaction, the FDIC will ad­
vance $1.7 million to the assuming
bank and will retain assets of the
failed bank with a book value of
about $2.3 million. Total assets of
the failed bank amounted to $7.3
The FDIC Board of Directors ap­
proved the deposit assumption
under its authority to do so when­
ever it determines that such a trans­
action will reduce the potential loss
to the FDIC. It made such a finding
in this case because of the premium
paid by First State Bank.
The FDIC expects to recover a
substantial portion of its outlay
through the liquidation of assets not
transferred to the assuming bank.
In this respect, the FDIC notes that
its claim will have priority over the
claims of shareholders of the closed
The State Bank of Frost became
the sixth bank in Minnesota and the
118th in the country to fail in 1985.

Purchase in Sauk Centre
First Bank System, which in midAugust announced plans to restruc­
ture its banking assets by offering
to sell 28 of its banks with 45 offices
to employees and directors of those
banks, recently announced the first
purchase agreement resulting from
that offer. First Bank Sauk Centre,
in central Minnesota, will be bought
by employees and community mem­
bers including the bank’s president,
Dale Emmel. The sale is pending
regulatory approval. Specific pur­
chase terms were not disclosed.

Some things have to change.
At Marquette Bank Minneapolis, we feel
some things should endure.


Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it shows. . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our willingness to roll up our
sleeves, to work with you, to deliver all the


resources of a billion dollar bank to help
you meet the challenges of today, and
Technologies and services change, but our
attitude hasn’t. Because Marquette Bank
Minneapolis will never put aside our oldest
promise to our customers: professional
service with a personal difference.

Marquette Bank

Member FDIC

Correspondent Services Division
Federal Reserve Bank of St. Louis


Jud McManigal
Vice President
Correspondent Division
Ag Financing Specialist

FDIC © 1985 FWC
Federal Reserve Bank of St. Louis


« 8*

itllltfi slèfslil



Weighing O pportunities. The transform ation
underway in agribusiness is a challenge to everyone
involved. Those who w ill succeed must be able to see
beyond current difficulties—fluctuating costs, volatile
interest rates, unusually severe weather—to the
opportunities: improved financial management, foreign
market potential, better use of technology.
It’s important to realize good ag credit exists now
—and First Wisconsin can help your bank find it.
We have funds available for financing packages or
overlines to accommodate your customers. And our
ag lending expert, Jud McManigal, understands the
issues you face; his 3 0 years as a banker and farm
owner have taught him how to handle the risks
unique to agribusiness.
For the ag lending expertise your bank needs,
come to First Wisconsin. Give Jud McManigal a callat 4 1 4 / 7 6 5 -4 1 4 3 . H ell help you and your customers
make the most of agribusiness opportunities.

Federal Reserve Bank of St. Louis

American Bancorporation recent­
ly elected Scott Seiberlich as presi­
dent of F irst
Burnsville State
Bank in Burns­
Mr. Seiberlich
has over four­
teen years of
banking experi­
ence. His most
recent position
was commercial
loan vice presi­
dent at Commercial State Bank in
St. Paul.
* * *

president of Western Insurance
Agency, Inc., and a member of the
Western Bank board of directors.
Mr. Prchal, formerly a senior vice
president of Western Bank, has been
responsible for the establishment
and management of Western Bank’s
McCarrons Lake office. Currently,
he is managing the construction of a
permanent facility for the McCar­
rons office, the establishment of the
Western Bank Oakdale office, and
the management of Western In­
surance Agency. Prior to joining
Western in 1978, Mr. Prchal worked
for First Bank, St. Paul, in the in­
stallment loan area.
James J. Kuhn has been pro­
moted to senior vice president of
Western Bank, with responsibilities
for planning, tax and control func­
tions. Prior to joining the bank in
1981, he served as accounting officer/supervisor of financial analysis
at Norwest Bank, Minneapolis.
A1 Mueller has been promoted to
vice president of Western Bank. He
has served as assistant vice presi­
dent since he began employment
with Western in June, 1985. Prior to
that Mr. Mueller served as commer­
cial banking officer at First National
Bank of St. Paul.
* * *

sion of Norwest Capital Markets,
Inc. Mr. Randall joined the division
in October as a corporate finance
representative. Prior to that he was
the director of acquisitions for Gen­
eral Mills, Inc.
Mr. Weir joined the bank as a cor­
porate finance representative in
August. He had been with First
Chicago Corporation, where he held
a variety of positions, most recently
assistant vice president in the capi­
tal markets group.
Virginia Terry recently joined
Norwest Bank Minneapolis as man­
ager of stock transfer administra­
tion. She had been with First Trust
Company of St. Paul since 1951,
serving most recently as senior vice
president of stock transfer services.
* * *

Cherokee State Bank has recently
promoted Charlette House to the
position of vice president and Heidi
Lampert to assistant vice president.
Ms. House has held a number of
positions with Cherokee and most
recently served as manager-select
At Western Bank and Insurance
for Cherokee’s new bank on Grand
Agency, A. William Sands has been
elected chairman of the board. He
Ms. Lampert joined the bank in
has served as president of the bank
from First Bank St. Paul. She
since 1978. Prior to joining Western
recently served as assistant
Bank in 1969, he worked for two
Norwest Bank Minneapolis an­
years at the First Bank, St. Paul, in
* * *
the areas of commercial lending and nounced the appointment of four
vice presidents.
equipment leasing.
Charles D. Hendrickson has
Kent Bergemann was named vice
Stephen C. Erdall has been
elected to the board of directors and president, capital lending, special joined Bremer Financial Services,
as president and CEO of Western loan division. He is a commercial Inc. as insurance president. Bremer
Bank. With expertise in commercial banking representative and had Financial Services, Inc. provides
lending, he began employment with been assistant vice president since staff services for the Bremer Finan­
the bank in 1978 in commercial/real joining the division in February. Mr. cial Corporation group of 26 banks
estate. Mr. Erdall joined the bank Bergemann joined the bank in 1983 and 37 bank-related affiliates in
from First Minnehaha with respon­ after holding a variety of positions Minnesota, North Dakota and Wis­
sibility relating to residential, com­ with Norwest Bank Bloomington.
Mr. Hendrickson had been with
Ronald Randall and Gregory
mercial and construction/real estate
Insurance as chief operating of­
Dennis J. Prchal has been elected the Norwest Corporate Finance divi­ ficer for FBS Metro Agency.
Northwestern Banker, February, 1986
Federal Reserve Bank of St. Louis


How ADT became
the largest processor of
independent banks in the area
It started 20 years ago.
That’s when our parent, Amer­
ican N ational Bank of St. Paul,
pioneered data processing services
to com m unity banks th roughout
the 9th Federal Reserve District.
A nd ADT h a s n ’t s to p p e d
growing since.
B a n k e rs seem to like o u r
approach to data processing.
They appreciate the fact that

becoming an ADT client requires
no heavy up-front investment. And
that we always keep them current
with new banking technology and
They enjoy reliable reporting
and the prompt, personal attention
of their own ADT customer service
Each month, they get to tell
us what we’re doing right or how we

can make improvements.
And in the end, they know that
their total data processing costs
with ADT are lower than other DP
ADT has b e e n su c c e ssfu l
because we help our clients become
successful. To see what we can do
for you, call Dick Aird at 800/2373762 Extension 112. Or contact one
of our data centers listed below.

r— v a
1/ \

» y.
I /\

Subsidiary of
American National Bank
of St. Paul

Largest processor of
independent banks in the
9th Federal Reserve District

Federal Reserve Bank of St. Louis

ADT Minot • Jerry Lee • 701/852-1274
ADT Fargo • Doug Marquart • 701/237/5164
ADT Sioux Falls • Rich Miller • 605/336-8704

Northwestern Banker, February, 1986


Minnesota News

FBS Mortgage Corporation, the
mortgage banking subsidiary of
First Bank System, Inc., announced
the promotion of Kathy M. Shirk to
senior vice president-loan servicing;
Lynn P. Bishop to vice presidentloan operations; Kathryn L. Hanson
to vice president of the Edina office,
and William C. Mase to vice presi­
dent of the Minneapolis office.
Ms. Shirk has served as vice presi­
dent and loan servicing manager
since March of 1985.
Ms. Bishop joined FBS Mortgage
in 1982 as a senior loan processor.
Ms. Hanson has served as assis­
tant vice president and branch man­
ager of the Edina office since 1984.
Mr. Mase joined FBS Mortgage
in 1984 as assistant vice president
and branch manager of the Minnea­
polis office.
* * *

Mr. Gillette joined Norwest Bank
Minneapolis as a security analyst in
the trust investment department in
1959; he was elected a bank officer in
1962; became the bank’s chief execu­
tive officer in 1980, and in 1982, was
named vice chairman of the corpora­
Mr. Gillette is a 1956 graduate of
Princeton University and received
his LL.B from William Mitchell Col­
lege of Law and was admitted to the
bar in 1963. He completed the
Stonier Graduate School of Banking
in 1969 and the advanced manage­
ment program at Harvard Business
School in 1973 as a recipient of a
Bush Fellowship.
* * *

Norwest Bank Central recently
announced the election of Jeff
Whipps as vice
president/portfolio manager,
Willis T. Heupel
as assistant vice
president, How­
ard Palmer as
commercial loan
officer, Jeffrey
C. Washey as
Allison-Williams Company has credii officer and
named Willy s P. Jones, former Jack D. Shovein
chairman, to the
as assistant vice president in com­
new position of
mercial lending.
senior chairman.
Mr. Jones re­
c e n tly
c ele ­
brated his 40th
a n n iv e rs a ry
with the firm.
He became a
vice president in
1961, president
in 1973 and
chairman in 1977
* # #

Jon D. Sorenson has joined First
Bank System, Inc. as vice president
and a s s is ta n t
Mr. Sorenson
has most recent­
ly served as vice
p re sid en t and
tr e a s u r e r
F ir s t F ederal
S a v in g s and
Loan in E au
Claire, Wiscon­
sin, a position
Norwest Bank Midland has
he has held since 1982. Prior to that
Mary C. Meier as assistant
time he was associated with Ernst &
analyst and
Whinney in Milwaukee, Wisconsin,
where he served as an audit super­
* * *

Piper, Jaffray & Hop wood an­
nounced recently that E. Peter Gil­
lette, Jr. will join
the company as
a senior invest­
ment banker in
its corporate fi­
nance d e p a rt­
ment, effective
March 1, 1986.
Mr. Gillette, a
fo rm er
chairman of Nor- E.P. GILLETTE, JR.
w est C orpora­
tion, brings more than 26 years’ ex­
perience in commercial and invest­
ment banking and bank manage­
ment to the firm, according to Ad­
dison L. Piper, chief executive offi­

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

policy officer.
Ms. Lucas began her banking
career at Society Bank, N.A.,
Springfield, Ohio as a management
trainee in 1983. She was later pro­
moted to branch manager.
* * *



Ms. Meier joined Norwest Bank
Center in Omaha, Nebraska in 1977
as an operations trainee. Her bank­
ing experience includes working as a
teller supervisor and systems an­
alyst at Norwest Bank Minneapo­
lis and as a systems section super­
visor at Norwest Bank Metrowest.
Ms. Meier joined Norwest Bank
Midland from Seattle First National
Bank where she was the expense



Mr. Whipps began his career at
Finance America, a BankAmerica
subsidiary. In 1975, he joined Nor­
west Bank Centred as an installment
loan representative. In 1981, he was
promoted to assistant vice president
and transferred to the commercial
lending area.
Mr. Heupel joined Norwest Cor­
poration as a systems analyst in
1978. He was later promoted to
operations officer and then, commer­
cial banking officer at Norwest
Bank Central.
Mr. Palmer began his banking
career as an examiner with the
North Dakota State Banking De­
partment in 1979. In 1982, he joined
Norwest Audit Services.
Mr. Washey joined Norwest Bank
Minneapolis in 1981 and later be­
came a part of Norwest Electronic
Delivery System. He was promoted
to credit analyst at Norwest Bank
Minneapolis in 1984.
Mr. Shovein began his career as a
regional auditor for First Wyoming
Bancorporation in 1982.

Minnesota News

The Federal Reserve Bank of Min­ Reported in Roseville
neapolis recently named Robert B.
The Roseville Bank recently sur­
Litterman to the position of assis­ passed $100 million in total assets,
tant vice president of research.
according to a report by D. Dean
Mr. Litterman joined the Minnea­ Hansen, senior vice president.
polis Fed in 1978 as a research assis­
The bank, located in the Har Mar
tant and left in 1980 to become an Mall at Snelling Avenue and County
assistant professor of economics at Road B, Roseville, was founded in
Massachusetts Institute of Technol­ 1962 with four employees and assets
ogy. In 1981 he rejoined the Minnea­ of $400,000.00, and has grown
polis Fed as an economist, was steadily. In 1975, the bank opened
named senior economist in 1983, and its first detached facility on County
promoted to senior economist and Road B and Pascal Avenue. The
manager of technical support in Arden Hills-Shoreview branch,
County Road F and Lexington Ave­
The Federal Reserve Bank of Min­ nue, built in 1979, recently under­
neapolis also appointed John A. went major expansion. A Rosedale
Rollwagen and Duane W. Ring to office was opened in 1983.
three-year terms on the board of di­
The bank now employs more than
rectors. DeWalt Ankeny, Jr. has 100 persons and serves 24,000 cus­
been appointed by the board to tomers. It is ranked among the top
serve a one-year term on the Federal 50 in deposits in the seven county
Advisory Council.
metropolitan area.
Mr. Rollwagen is chairman and
CEO of Cray Research, Inc.
Mr. Ring is chairman and presi­ MBA Plans Bank
dent of Norwest Bank La Crosse,
Operations School
N.A. in La Crosse Wisconsin.
The Minnesota Bankers Associa­
Mr. Ankeny is chairman and CEO
tion has been working on starting
of First Bank System, Inc.
the MBA Bank Operations School.
* * *
An advisory board met in December
to discuss plans for the school,
National City Bank of Minneapo­ which is scheduled to begin its first
lis announced that Michael A. Sum­ session in 1987.
mers is rejoining the staff as vice
According to MBA Executive
president and manager of Group Vice President Truman L. Jeffers,
W-special loans, in the commercial the purpose of the new school is to
banking department. Mr. Summer prepare entry to mid-level officers to
has 13 years of banking experience. effectively and efficiently manage
National City Bank also recently the operations functions in a bank.
opened its Fifth Avenue office and The curriculum will qualify the
drive-up in downtown Minneapolis. school to be part of the American
James H. Hearon, III, chairman Bankers Association’s Professional
and CEO, noted that the new facility Development Program.
includes complete teller, personal
According to MBA Administra­
banker, automated teller machine tive Vice President Wayne Berthiaservices, and one commercial and ume, it has taken at least two years
four consumer drive up lanes, one of of discussion and numerous surveys
which is a 24 hour ATM.
to place a groundwork for the
* * *
The MBA Bank Operations
School will add a new dimension to
John E. Mannillo of John E. Man- MBA’s banking schools. The four
nillo & Associates, a real estate other schools are the Minnesota
brokerage and management com­ School of Banking, Midwest Bank­
pany, has been elected director of ing Institute, the MBA Commercial
the board of Metropolitan Bank St. Lending School, and the Graduate
School of Banking at Madison.
Mr. Mannillo is a St. Paul Heri­
tage Preservation and Riverfront
Commissioner, regional director of
the Building Owners and Managers Krogh Wins Ag Scholarship
Association International and direc­
Minnesota Bankers Association
tor of the Downtown Community President Clinton Kurtz has an­
Development Council and Down­ nounced Richard L. Krogh, vice
town Council.
president, First National Bank, Osa
Federal Reserve Bank of St. Louis


kis, to be the winner of the American
Bankers Association Agricultural
Bank Management School scholar­
ship sponsored by the MBA. The
scholarship provides one year’s tui­
tion at the ag school, worth $1,195.
The school consists of two one-week
sessions held in two consecutive
years at Iowa State University in
Ames, Iowa.

(Continued from page 28)

Mr. Gabbert joined First National
Bank & Trust Company as president
and CEO in 1977 after serving with
three other banking institutions in
Ohio, Indiana, and Iowa. He is also
president and a director of First La
Porte Financial Corporation, the
parent holding company of First Na­
tional Bank & Trust.
Mr. Naylor owns and operates a
1,200 acre farm with principal crops
of seed corn and soybeans. He at­
tended Iowa State University in
Ames, Iowa and served as an officer
with the U.S. Navy during World
War II.
Mr. Naylor and Mr. Gabbert are
replacing Chicago Fed directors
Mary Garst, manager of the cattle
division, The Garst Company in
Coon Rapids, Iowa and Patrick E.
McNarny, president and CEO of the
First National Bank of Logansport
in Logansport, Indiana. Both Mr.
Garst and Mr. McNarny served the
maximum of two full terms on the
Chicago Fed board.
* * *
C. Paul Johnson, chairman, First
Colonial Bankshares, Inc., Chicago
was recently honored with the “Gol­
den Apple Award’’ by Global Per­
spectives in Education, Inc., (GPE)
for his outstanding service in pro­
moting global education among
Mr. Johnson was recognized by
GPE for his involvement and leader­
ship role with the American Field
Service, an international youth ex­
change program. He received the
award at a special reception held in
conjunction with the International
Business Council MidAmerica.
Other recipients of the “Golden Ap­
ple Award” included U.S. Senator
Paul Simon and U.S. Trade Repre­
sentative Clayton Yeutter.
Northwestern Banker, February, 1986

mortgage servicing department at
Western Bank-Downtown, Sioux
Mr. Hovendick’s new responsibili­
ties include management of con­
sumer loan servicing at Western
Bank-West and bank-wide manage­
ment of the consumer loan payment
program. Mr. Hovendick joined the
bank in 1984 with over eight years
experience in consumer lending and

Hosted by SDBA
The South Dakota Bankers Asso­
ciation will host a Bank Manage­
ment Conference February 19-20 at
the Holiday Inn City Center, Sioux
The conference will begin at 5:00
p.m. Wednesday with registration
and a “get acquainted” mixer.
Thursday’s program begins at
8:30 a.m. with registration and a
continental breakfast. Three ad­
dresses will be presented Thursday.
The first address, “What You Need
to Know About the Economy in the
’80’s” will be given by Dr. Jim
H a g e rb a u m e r, H a g e rb a u m e r
Economics, Waukegan, Illinois.
“How to Meet the Press in the
Event of a Bank Failure” will be the
title of the second address presented
by Dr. Larry Solomon, director of in­
form ation, Oklahoma Bankers
A sso ciatio n , O klahom a C ity,
Oklahoma. The third address entitl­
ed “ Theory of A sset/Liability
Management” will be presented by
Dr. William F. Staats, professor of
banking and finance, Louisiana
State University, Baton Rouge, La.
Thursday’s program will adjourn at
4:00 p.m.
The preregistration fee for the
workshop is $110 per registrant
which includes speakers, printed
materials, mixer and reception, con­
tinental breakfast and breaks. On­
site registration fee per person is
$ 120.
For additional information con­
tact the SDBA office in Pierre.

Networks Shared in S.D.
Two networks of automatic teller
machines serving 11 communities
throughout South Dakota recently
announced an agreement to share
each other’s networks.
The agreement gives customers of
31 institutions that are participants
in the ADVANTAGE ATM net­
Banker, February, 1986
Federal Reserve Bank of St. Louis

work access to the Norwest IN­
STANT CASH n etw o rk and
through the INSTANT CASH net­
work to an international network
with outlets in 48 states and
The ADVANTAGE network, op­
erated by First National Bank in
Sioux Falls, has 23 ATMs in nine
South Dakota communities. Most of
the 31 institutions participating in
the ADVANCE network are inde­
pendent banks, savings and loan as­
sociations and credit unions.
The Instant Cash network has 16
ATMs in South Dakota, mostly at
or near Norwest Banks, and more
than 370 in Minnesota, Iowa, Kan­
sas, Nebraska, Montana, Wisconsin,
Wyoming and the Dakotas.
The international CIRRUS net­
work, of which Norwest is one of 14
founding-member banking organiza­
tions, has more than 10,000 ATM
outlets in the United States and
C.P. “Buck” Moore, Norwest re­
gional president, explained that cus­
tomers of any of the participating in­
stitutions are now able to access
their accounts through ATMs con­
nected to the ADVANTAGE, IN­



Mr. Wigg joined Western Bank
this past year with eleven years
prior experience. His education in­
cludes a BS from Iowa State Univer­
sity and an MBA from the Univer­
sity of South Dakota.

NABW Elects Officers

The South Dakota National Asso­
ciation of Bank Women has elected
th e follow ing
wom en
1985-1986 state
PresidentMarlyce Chris­
te n se n , F ir s t
Bank of South
Dakota, Sioux
Falls; Vice Presid e n t- P a tr i c ia
W aring, Nor- M. CHRISTENSEN
west Bank, Sioux
Falls; Membership Chair-Joy Berry,
Elected in Sioux Falls
Dakota State Bank, Milbank; Scho­
Western Bank, Sioux Falls, has larship and Awards Chair-Sandy
elected Pat Hansen as mortgage ser­ Vollmer, First Bank of South Da­
vicing officer;
kota, Rapid City; Public Affairs
Russ Hovendick
Chair-Laurel Merrick, Norwest Cap­
as senior per­
ital Management & Trust Co., South
sonal banking
Dakota, Sioux Falls, and Education
officer, and Kent
and Training Chair-Ruth-Ann DanWigg as senior
nenbring, First Dakota National
personal bank­
Bank, Yankton. The South Dakota
ing officer.
organization through its two local
Ms. H ansen
chapters has a current membership
joined the bank
of 138.
in August and
brings ten years
of experience to her new position. SOUTH DAKOTA NEWS . . .
Her office will be located in the (Turn to page 41, please)

Staff Changes in Minot
First American Bank & Trust,
Minot, announced the addition of
Duane D. Friez as senior vice presi­
dent-loan administration, and the
promotion of Michael J. Hale to se­
nior vice president-operations/finance; Bill Kolb to vice presidenthuman resources, and Kim T. Albert
to vice president-marketing officer.



Mr. Friez joined First American
Bank & Trust of Minot with over 27
years of banking experience begin­
ning as a junior loan officer and lead­
ing to chief executive officer in two
banks which he chartered.
Mr. Hale joined the bank staff in
1984 as vice president-controller. He
has over 12 years banking experi­
ence with banks in Montana and
South Dakota.

staff at First American Bank &
Trust of Minot as marketing officer.

Banclnsure Formed by NDBA
The board of directors for Banc­
lnsure Inc., the captive insurance
company formed earlier this year by
NDBA and four other state bankers
associations, directed its manage­
ment company recently to proceed
with offering blanket bonds and lim­
ited director and officer liability in­
surance to member banks.
The NDBA staff is aware of at
least several member banks inter­
ested in securing these products dur­
ing January. While banks wishing
Banclnsure to quote on their insur­
ance coverages should normally give
the company 60 days notice of their
interest to allow adequate time for
underwriting, the company will do
everything possible to accommodate
banks that have anniversary dates
during the initial months of opera­
Banclnsure will have underwrit­
ing standards similar to those of
other insurance carriers, but will do
its best to try to find a way to write
most banks. There will be those who
fail to qualify, but the company will
work with them to correct deficien­
cies and/or direct them to other
The NDBA planned to hire a full­
time insurance coordinator who will
be responsible for marketing Banc­
lnsure products to the membership.

Three Promoted
in Watford City


Mr. Kolb began his career with
the bank in 1978 after a 21-year
career in the United States Air
Mr. Albert began his banking
career in 1978 before moving to
Minot in 1983, when he joined the
Federal Reserve Bank of St. Louis

Three officers have been pro­
moted at First International Bank,
Watford City.
Stephen L. Stenehjem was pro­
moted to executive vice president.
He oversees many operational dut­
ies along with handling business and
agricultural loans. Mr. Stenehjem
joined the bank in 1982 as vice presi­
dent after previous employment at

Norwest Bank in Bismarck and
Mankato, Minn. When he left Nor­
west Bank Bismarck he was an as­
sistant vice president in commercial
David A. Brendsel was promoted
to senior vice president. He joined
the bank in 1972 as an agricultural
loan officer. He is now in charge of
the agricultural loan department as
well as investments for the bank.
His previous employment was with
American State Bank in Minot and
the Production Credit Association
of Williston.
Anita Quale was promoted to
cashier and has been with the First
International Bank since 1981. She
was previously employed at Ameri­
can State Bank in Williston. Ms.
Quale is in charge of internal audit­
ing, new accounts, and also works in
the installment loan area.

Promoted in Grand Forks
First National Bank in Grand
Forks recently promoted Neal Ar­
nold to assistant vice president, Cin­
dy Wentz to operations officer,
Sharon Brattvet to operations offi­
cer, Tracy Sande to personnel officer
and Susan Kraft to personal bank­
ing officer.
Mr. Arnold joined the staff at
First National Bank in 1980 while
attending the University of North
Dakota. He graduated in 1982 with
a BSBA in banking and finance and
will complete a master’s degree in
business administration in May.
Ms. Wentz started at First Na­
tional Bank in 1978. A graduate of
the Vocational Technical Institute
in East Grand Forks, her responsi­
bility is to oversee technical opera­
tions in the bank’s lending areas.
Ms. Brattvet supervises the book­
keeping and proof departments. She
joined the staff in 1983 after pre­
viously working for the First Na­
tional Bank in Hettinger, North Da­
Ms. Sande started working at
First National Bank while attending
the University of North Dakota. She
is a 1981 graduate of UND and
holds a BSBA in personnel manage­
Ms. Kraft graduated from the
University of North Dakota with a
BSBA in marketing. She joined the
staff at First National in 1983 after
previously being employed by Nor­
west Bank in Jamestown, North Da­
Northwestern Banker, February, 1986


Pres. Named in Sheridan
The First National Bank of Sheri­
dan has elected James R. Bullard as
president and CEO. Mr. Bullard
previously was vice president and
counsel to credit administration
with the Hawkeye Bancorporation
of Des Moines, Iowa. He has over 20
years of experience in the banking
industry. He has been president of
the Clay County National Bank,
Spencer, Iowa and the Burlington
Bank and Trust Company of Bur­
Mr. Bullard follows Robert G.
Miller as president of First National
Bank. Mr. Miller has been president
of First National since 1974. Mr.
Miller has resigned from the presi­
dency and board of First National
Bank but will retain his position as
chairman of First National Bankshares, Inc. and will continue to be
associated with Ranchester State

Norwest and ABC Name
Credit Administrator
Robert Miracle, president of the
Norwest Banks Casper and Affili­
ated Bank Cor­
poration, a Cas­
per-based hold­
in g com pany
which owns and
administers to
the eight Nor­
west Banks in
Wyoming, has
announced that
Lund Galbraith
has been named
to head the administration of credits
for both Casper Norwest and the
other seven banks of the corpora­
Prior to joining Norwest and
ABC, Mr. Galbraith was senior vice
president and manager of credit re­
view for the Idaho First National
Bank of Boise. In that position, he
Banker, February, 1986
Federal Reserve Bank of St. Louis

was responsible for the overall man­
agement of the bank’s $ 1.6 billion
loan portfolio, which included the re­
view and approval of all major com­
mercial and agricultural credit lines.
He served on the bank’s senior loan
committee and board of directors
loan committee.
At Norwest and ABC, Mr. Gal­
braith will serve on the long range
planning, asset/liability, manage­
ment, special asset, directors loan
and bank loan committees.

Seven Promoted by
First Wyoming Bancorp
Judith T. Walz, vice president of
First Wyoming Bancorporation re­
cently announced the appointments
of several people throughout the
First Wyoming Bancorporation sys­
John Horne has been named exec­
utive vice president of First Wyom­
ing Bank-North Cheyenne. Mr.
Horne’s most recent position was
president of First Wyoming Bank,
N.A.-Green River. Previous to that
position he served as vice president
of commercial loans at First Wyom­
ing Bank-Evanston.
Marshall Jay Alexander has been
named vice president and cashier at
First Wyoming Bank, N.A.-Kemmerer. Mr. Alexander’s most recent
position was vice president and
cashier at the Bank of Wallowa
County, Joseph, Oregon. Previous
to that position he served as com­
mercial loan officer at Old National
Bank of Washington, Sunnyside,
Donald R. Schulz has been named
executive vice president at First
W yom ing B an k -H an n a . M r.
Schulz’s most recent position was
executive vice president at First Na­
tional Bank & Trust, Wibaux, Mon­
tana. Previous to that position he
served as general manager at Metro
Catholic Credit Union, Denver, Colo­

C. Mike Long has been appointed
president and CEO of First Wyom­
ing Bank, N.A.-Green River. Mr.
Long’s most recent position was
chairman, president and CEO of
Lake National Bank, Lake Ozark,
Missouri, an affiliate of Midwest
Bancorp, a Missouri bank holding
Sally L. Fernau has been named
vice president and cashier at First
Wyoming Bank-Gillette. Ms. Fer­
nau most recently served as vice
president and cashier at First
Wyoming Bank-Wright, Wright,
Wyoming. Previous to that position
she served as cashier at Lusk State
Bank, Lusk, Wyoming for 24 years.
Ken Simms has been named new
vice president for commercial loans
at First Wyoming Bank-Sheridan.
He previously held a similar position
at First Interstate Bank, Casper, for
seven and a half years.
David Shadrick has been ap­
pointed president and CEO of First
Wyoming Bank-Saratoga. Mr. Shad­
rick has held positions at First
Wyoming Bank N.A.-Rawlins since
1972. He recently served as the vice
president of commercial loans.

Winona Flower Dies
One of the most prominent
women bankers in Wyoming, Wino­
na Flower, died of cancer January 20
in Jackson Hole. Mrs. Flower, 62,
began working at Jackson State
Bank in 1951 and retired in August,
1985, due to her illness. She served
as secretary for Felix Buchenroth
and Felix Buchenroth, Jr., who
served consecutively as presidents
of the bank, and was executive sec­
retary at her retirement to the cur­
rent president, Richard Scarlett. She
also was secretary to the bank’s
board of directors.
Mrs. Flower had served for many
years as registrant and secretary for
the annual conventions of the
Wyoming Bankers Association held
at Jackson Lake Lodge each June.
She was a long-time member of the
N ational Association of Bank
Women and was regional vice presi­
dent at the time of her death.
Always active in many civic and
social affairs in Jackson Hole, Mrs.
Flower was named in 1982 as
Women of the Year by the Business
and Professional Women’s Club of
Jackson Hole. She was a co-founder
of the Soroptomist Club in Jackson.

(Continued from page 38)

Norwest Promotes Seven

Two Appointed to
Minneapolis Fed



1979, having worked in the account
reference department. Most recent­
ly, Ms. Craig served as operations

F. Charles Mercord, chief executive officer, First Federal Savings
Bank of Montana, Kalispell, and
Warren H. Ross, Ross 87 Ranch, Chuck Froehle Dies
Chinook, have been appointed to
Clarence “Chuck” J. Froehle,
two-year terms on the board of direc- well-known sales representative for
tors of the Helena Branch of the Deluxe Check Printers, Inc., died
Federal Reserve Bank of Minneapo­ December 27th at the age of 50 in a
Great Falls hospital. Mr. Froehle
was well-known throughout the
Officer Elected in Billings
state for his work with Montana
The board of First Interstate banks on a statewide basis. He
Bank of Billings, N.A. recently moved with his family to Great Falls
elected Dianna Craig as operations as Deluxe’s sales representative in
officer. Ms. Craig joined the bank in 1957.
(Continued from page 29)


Menomonee Falls’ affiliate of F&M
Financial Services Corporation. He
joined F&M in 1984.


Banks Offer Brochure

To help consumers understand
Wisconsin’s new marital property
law, many Wisconsin banks are of­
fering a brochure giving simple
^ answers to typical questions which
arise about the law. According to
Dean Treptow, president of the Wis­
consin Bankers Association, the
^ new law affects virtually everyone,
^ married or not, in some way.
“State bankers want to help con­
sumers understand the new law and
how it may affect the way they have
^ been managing their business and
personal affairs,” Mr. Treptow said.
He pointed out that the law poten­
tially affects all property owned by
spouses including; income, real esa tate, insurance policies, pension
plans, vehicles, investments, bank
accounts, personal possessions and
trust benefits.
The brochure, “Answers to your
m Questions about Wisconsin’s New
Federal Reserve Bank of St. Louis

Marital Property Law,” available
free from participating banks or
from the WBA, uses a question and
answer format to explain key points
in the law which converts Wisconsin
to a community property state. In­
cluded are seventeen questions and
answers about such areas as credit
and bank accounts, as well as gen­
eral information about the law and
how it might affect individuals and

Banks To Change Name
The United Banks in Madison,
Sun Prairie, Sauk City, and Menomonie and the Bank of Wisconsin in
Janesville officially changed their
name to “Valley Bank” effective
January, 1986. The change includes
the adoption of the Valley Bank logo
designed for all banks affiliated with
Valley Bancorporation, a registered
bank holding company.

Employed at Sturgeon Bay
Lester F. Berns has accepted a
position as a commercial loan officer
at the Bank of Sturgeon Bay. He re­
ceived his bachelor’s degree in mar­
keting and finance in 1984 and his
master’s in finance in 1985 from the
University of Wisconsin.

Norwest Bank South Dakota,
N.A., recently announced several
staff changes within its organiza­
Lee Groskopf has been promoted
to senior vice president, retail bank­
ing in Rapid City. Mr. Groskopf
joined Norwest in 1972, had been
manager of both Villa Ranchaero
and Robbinsdale prior to being
named vice president, commercial
banking in 1984.
Jerry Erickson has been named
assistant vice president, mortgage
lending in Rapid City. Mr. Erickson
joined Norwest in 1979 and had been
in both Sturgis and Newell, most re­
cently as assistant vice president, ag
banking in Newell.
Doug Meyer has been named
m anager of W estwood, Larry
Hamre to manager of Marion Road
and Reggie Smidt to manager of Col­
Mr. Meyer has been with Norwest
since 1966. He has been a personal
banking officer at Colonial since
Mr. Hamre joined Norwest in
Madison in 1981 and transferred to
the Westwood Branch in 1984 as a
personal banking officer.
Mr. Smidt joined Norwest in 1983
and in 1984 was named assistant
vice president and manager of the
M arion Road and W estw ood
Dave Beranek has been named
manager of dealer finance and per­
sonal banking officer in Sioux Falls.
Mr. Beranek joined Norwest in
Rapid City in 1980 and in 1984
transferred to Mitchell as a personal
banking officer.
Tony Trussed was promoted and
transferred to ag banking officer,
from Rapid City to Belle Fourche.
Mr. Trussed joined Norwest in 1984
as an ag banking representative.

Olson Elected President
At the annual meeting of Com­
mercial Banshares, Inc., Lesde H.
Olson was elected president and a
member of the board of directors.
Commercial Banshares is the hold­
ing company for Commercial Trust
& Savings Bank, Mitchell and San­
born County Bank, Woonsocket.
Northwestern Banker, February, 1986

R.B. C la rk, p re s ., G re e le y
D .A . C h ild e a rs , exe c, m g r., D e n v e r

Two Named in Denver
United Banks of Colorado, Inc.
announced the nom ination of
Richard A. Kirk to the position of
vice chairman of the corporation and
the board of directors. Charles R.
Hazelrigg was named president of
the corporation and elected to the
corporation’s board. Mr. Kirk will
also continue his position as chair­
man and CEO of United Bank of
Denver and Mr. Hazelrigg will re­
main president of United Bank of

Mr. Zelie joined the United Bank
organization in 1982, serving most
recently as senior vice president of
United Bank of Broomfield.

Five Promoted in Boulder

The board of the First National
Bank in Boulder recently announced
the promotions of several employ­
Richard I. Moreland, senior vice
president, was promoted to execu­
tive vice president. Mr. Moreland’s
banking career started over 32 years
ago with People’s State Bank in
Elected in Westminster
McDonald, Kansas.
Douglas D. Drohman, assistant
Kenneth W. Zelie was recently
elected president of United Bank of vice president, has been promoted to
W estminster, the organization’s consumer loan representative III.
Mr. Drohman joined the bank in
new bank.

I enjoy helping bankers find ways to improve their
operations. Like introducing faster methods for
clearing funds through Central Bank of Denver. But
then you'd expect The Better Bankers® to help you
maximize your resources.
Federal Reserve Bank of St. Louis

1979 as a credit service representa­
tive in consumer loans.
Kathleen A. Rasco has been promoted to assistant vice president in
personnel operations. Ms. Rasco
started work in the trust depart­
ment of the bank in 1978. In 1979,
she became payroll clerk and then
was promoted to personnel opera­
tions officer.
William H. McGaughey has been
promoted to commercial loan officer
II. Mr. McGaughey joined the bank
in 1984 after working for Affiliated
Bankshares as an audit supervisor.
Max Faller, lobby services repre­
sentative now holds the title of lob­
by services officer. Mr. Faller began
his career at First National as a tel­
ler in 1982.





V.P. Appointed in Denver
Robert L. Kropf has been ap­
pointed vice president, credit admin­
istration, of the Central Bancorporation, Inc., Denver. Mr. Kropf will be
responsible for reviewing the credit
function of each bank and for devel­
oping policies, procedures, and other
programs aimed at improving the
quality of the corporation’s assets.
Mr. Kropf joins Central Bancorporation, Inc, with more than 25



Many area bankers r o u tin e ly invest through us because
we've consistently met and even exceeded their
investment goals. And that's not all. I can also help you
find money when you need it. We recently participated
with a Colorado Springs bank to successfully finance
a three-phase apartment complex.

Colorado News

years of experience with Colorado
National Bank of Denver. Most re­
cently, he served as senior vice presi­
dent and director.





Two Promoted in Golden
Colorado National Leasing, Inc.,
Golden, has announced the promo­
tions of Mark K. Hanson and Roger
W. Ayan, Jr. to the positions of
lease administration officer and
credit officer respectively.
Mr. Hanson joined Colorado Na­
tional Leasing in 1984 as credit
analyst with subsequent promotions
to senior analyst and lease adminis­
tration manager.
Mr. Ayan joined the company in
1984 as lease analyst. He will be re­
sponsible for the review of lease submittals and financial analysis of
lease approvals.

Established in Denver


United Bank of Denver, the lead
bank of United Banks of Colorado,
was presented its license recently
from the Small Business Adminis­
tration to operate a venture capital
subsidiary, UBD Capital, Inc.
United Banks of Colorado also an-

nounced formation of United Equity
UBD Capital, Inc., a federally
licensed Small Business Investment
Company, will provide venture capi­
tal primarily in the Rocky Mountain
region. Under the federal require­
ments of an SBIC, the size of any
prospective venture can be no more
than $6 million in net worth and $2
million in after-tax earnings at the
time of investment by UBD Capital,
Inc. UBD Capital, Inc. is interested
in a broad range of industries, in­
cluding traditional businesses where
the prospective company has estab­
lished a niche.
United Equity Corporation (UEC)
was formed by United Banks of
Colorado as an investment vehicle to
participate principally in ventures
larger than the SBIC limits, includ­
ing project financing opportunities.
UEC is a so-called “5% fund,” the
name derived from the limit of share
ownership in a venture that it can

Announced in Denver
United Banks of Colorado, Inc.,
Denver, announced the public offer-

There's a high level of financial expertise and
sophisticated banking available at Central Bank of
Denver. W hen you call, ask for me, Dianne Capra, and
let's talk about Better Banking.

mg of 750,000 shares of common
stock at a price of $28.75 per share.
The First Boston Corporation is the
sole underwriter of the issue. The
company has granted First Boston
an option to purchase up to an addi­
tional 75,000 shares to cover over­
United Banks will apply the net
proceeds from the sale of the com­
mon stock to its general funds to be
used for general corporate purposes,
including the repayment of short­
term debt.

Elected to Board in Denver
Peter B. Teets, president of Mar­
tin Marietta Denver Aerospace, has
been elected to the board of direc­
tors of The Colorado National Bank
of Denver. The announcement was
made by William W. Grant, presi­
dent of the bank.

Recognized in Englewood
First Interstate Bank of Engle­
wood has named Mary Lou Jennings
as the “Professional Banker of
1985” and Linda Stevenson as “Tel­
ler of the Year.”

Letstalk money.
The Better Bankers
Central Bank
Federal Reserve Bank of St. Louis



1515 Arapahoe Street
Denver, Colorado 80292
Member FDIC


Left to rig h t: L oren R. A n d erso n , E xecutive Vice P re sid e n t, A d m in istrativ e Services; R oy M. O tte, Vice P resid en t, B an k In ­
v e stm en ts Division; M ike Jacobson, Vice P resid en t, C o rresp o n d en t Loan Division; D en n is H. S telzer, P resid en t, N B C /C om puter
Services D ivision; Thom as E. H e n n in g , P resid en t, NBC.

Our people set us apart
from other
correspondent banks.
At NBC, you’ll find more than
just a full range of corre­
spondent banking services.
You’ll also discover a staff of ex­
perienced, capable, dedicated
professionals who are anxious
to serve you. Who are proven
perform ers, with a strong his­
tory of helping banks meet their
correspondent needs. Who to­
gether make NBC a leader in,

and your best choice for, corre­
spondent banking services.
Call NBC today! And put us to
work for you!


National B an k of Commerce

NBC C enter, 13th & O S tr e e t, L in coln , N eb ra sk a 6 8 5 0 8
(4 0 2 )4 7 2 -4 1 1 5


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

New Bank of Norfolk Now Open

received notice of regulatory ap­
proval by the Nebraska Bank De­
partment, the Federal Reserve Bank
and the Federal Deposit Insurance
Mr. Adams, a third generation
banker and currently president of
the Nebraska Bankers Association,
stated that “the merger approval al­
lows us greater flexibility in offering
additional services and enables the
five locations to combine their re­
sources and strengths to help indivi­
duals as well as communities in
these challenging times.”
The five bank merger will make
the Adams Bank & Trust one of the
largest state banks in Nebraska.
Adams Bank & Trust reported total
deposits of $109,294,978 and total
loans of $77,402,030 as of December
31, 1985.

Changes Made In Columbus

HE new Bank of Norfolk, a $1.6
million project completed in recent weeks, celebrated the opening
of the bank at an open house on Jan­
uary 5th.
The new facility, which replaces
another building on the same site to
the west, has 25,082 sq. ft., and has
eight times the space of the former
Decor is in green, beige and rust,
with custom-made Honduras mahogany furniture. The building has
four floors, including a lower level
which houses the operations and
auditing departments. One-third of
this level will soon be occupied by a
new data processing center for the
National Bank of Commerce, Lin­
On the main floor is a two-story
atrium central core area with offices
on three sides and the entry way on
the fourth. A mirrored ceiling re­
flects light from an unusual glitter­
ing glass-rod type fixture. In front
of the main door is the sales/reception desk. Toward the west is a teller
service counter with marble top and
a lobby service desk. The loan ser­
vice area occupies part of this floor,
and bank officers have individual offices on the south. In the southwest







Federal Reserve Bank of St. Louis

corner is a “little theater” high tech­
nology area designed for use in
training employees and for provi­
ding customer education.
The next floor has the Norfolk Fi­
nancial Center insurance offices, an
employee meeting room, employee
lounge, the real estate area and a
spacious room for the board of direc­
The 6,000 sq. ft. top floor, which
will be leased, is not completely
finished as yet.
The Bank of Norfolk staff in­
cludes 30 employees. There are five
in the real estate section and two in
insurance. Duane Acklie is chair­
man, with Ray Tiedje as president.

Merger Approved in Ogallala
Regulatory approval to merge
five Adams family banks as the
Adams Bank & Trust has been
granted effective January 20th, ac­
cording to Mel Adams, chairman.
Bank of Brule, Brule; Chase Coun­
ty Bank & Trust, Imperial; First Se­
curity Bank, Sutherland; Security
State Bank, Madrid, and Keith
County Bank & Trust, Ogallala

First National Bank and Trust
Company, Columbus, has announced
several staff changes. Donald M.
Schupbach has been promoted to se­
nior vice president in charge of com­
mercial lending. Clark Lehr and Paul
A. Canaday have joined the bank as
vice president in commercial lending
and agricultural officer respectively.
Three officers have announced re­
tirement: Mark Keller, vice presi­
dent and agricultural representa­
tive, after nine years; Julian Meyer,
vice chairman of the board and head
of commercial lending, after 38
years, and Minnie Asche, senior vice
president administration, after 56

Anniversary in Kearney
A ceremony marking the 10th an­
niversary of the Kearney State
Bank and Trust Company, 31st and
Second Avenue, highlighted the
bank’s opening, January 6th.
Cub Scout Pack 135, Color Guard,
raised a special U.S. Flag that flew
over the nation’s capitol on Decem­
ber 10, 1985. The local flag raising
ceremony commemorated the ten
year milestone, as it was part of the
opening day activities ten years ear­
lier on January 5, 1976.
Remarks followed by Terrence
Geiger, president, Mayor Justus
Dobesh, and KSB Chairman Dr.
Francis L. Richards. Cutting of the
anniversary cake climaxed the acti­
vities and a reception followed in the
lobby of the bank.
Northwestern Banker, February, 1986

Bank Nebraska in 1979 and worked
in accounting, cash management,
float management, and data control
before moving to the financial plan­
ning and analysis area one and a half
years ago.


The following people have been
promoted at Norwest Bank Nebras­
ka, N.A.: Kirk L.
Kellner, vice
president/business banking;
Gerald Lenczowski, vice presid e n t/b u s in e s s
banking; Charles
Olson, vice president/manager of
a g ric u ltu ra l
banking; Gary
Ott, vice president/manager of loan
support team; Donald Weber, vice
president/manager financial plan­
ning; Jeffrey A. Kenkel, financial of­
ficer, and Dennis Walsh, financial
systems officer.
Mr. Kellner began working at
Norwest Bank Omaha in 1981 as a
regional credit trainee. He moved to
Norwest Bank Omaha in 1981 as a
regional credit trainee. He moved to
Norwest Bank Des Moines in 1982
as a commercial lender. In 1984 he
moved to Lincoln where he worked
as commercial loan officer and assis­
tant vice president of commercial
loans for two related banks there.
He will office at 10010 Regency Cir­
cle in Omaha.



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


Mr. Walsh began with Norwest
Bank in 1977 and has worked in
various areas, including cash center,
Mr. Lenczowski began working at bankcards, loan services, correspon­
Northwestern National Bank in dent banking, Norwest Information
1975 and has been a business banker Services and Norwest Technological
since 1984. He will office at 24th and Services.
Mr. Weber, Mr. Kenkel and Mr.
L Streets in Omaha.
Mr. Olson was promoted to vice Walsh office at 20th and Farnam
president and manager of ag bank­ Street in Omaha.
* * *
ing at the Grand Island location. He
worked for the Farm Credit System
Tom Erickson has been named
for 12 years as loan officer, credit
of FirsTier Mortgage Co.’s
review specialist, and credit direc­
tor. He joined Norwest Bank Neb­
raska at Grand Island on Dec. 1,
ceeds Marlin
Hupka, who has
been named man­
ager of FirsTier
Mortgage’s resi­
dential loan pro­
duction office in
Mr. Erickson,
who joined the
company as a mortgage loan officer,
previously worked as a loan officer
and a branch manager with another
Lincoln financial institution.
Mr. Ott was promoted to vice
* * *
president/manager of the loan sup­
Marlin Hupka has been named
port team at the Grand Island loca­
tion. Prior to joining Norwest he manager of FirsTier Mortgage Co.’s
worked for the Federal Land Banks Omaha residen­
for over 14 years. He was a loan of­ tial loan produc­
ficer and a branch manager in Iowa tion office. He
and was vice president of credit in joined FirsTier
Mortgage as a
Grand Island.
Mr. Weber began working in 1977 loan officer in
for the comptroller of currency as an 1983 and former­
assistant national bank examiner. ly was manager
In 1982 he was promoted to national of th e com ­
bank examiner. A year later he pany’s Lincoln
„ HupKA
began working with Norwest Bank branch. Prior to
Omaha as a financial analyst and that he worked
was promoted to second vice presi­ in real estate and new construction.
His successor at the Lincoln office is
dent in 1984.
Mr. Kenkel started with Norwest Tom Erickson.



x iIL /


Change comes fast in today’s
banking — so fast you need
an anchor of stability and
Meet the anchormen — the
experienced, professional corre­
spondent bankers of First National
Bank of Omaha.
The more things change, the
stronger is their commitment to

dependably and consistently
Call them toll-free — in
meeting all your correspondent
Nebraska 1-800-642-9907; outside
banking needs.
Nebraska, 1-800-228-9533.
And the faster things change, the
faster the anchormen respond —
with the latest financial technology
at their fingertips and the historic
financial strength of First National firsl n a l i o n a l b a n k
of omaha
Bank of Omaha at their disposal —
one first national center, omaha, nebraska 68102
for you.
member FDIC • 341-0600

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse,
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1986


Havelock Bank Opens Downtown Office

aligning the bank with the second
largest bank in Nebraska and the
Nebraska-based FirsTier Banks.
This will enable First National Bank
of David City to offer additional fi­
nancial options to customers, as well
as services such as estate and trust
services, mortgage, brokerage and
leasing services.
The FirsTier Banks also include
the largest bank in Nebraska,
Omaha National Bank.
“This is going to be an advantage
for our bank and especially our cus­
tomers,” Mr. Howe commented.
“By merging with a banking system
that has a $2 billion financial base,
we’re enhancing our ability to stimu­
late economic growth in this area.”
Mr. Smith said that the merger of
the bank in David City is an impor­
tant addition to the FirsTier Banks’
system. “This merger further estab­
lishes the FirsTier Banks as Neb­
raska’s home-based banking system
that knows and cares for the needs
of this state. Given the strong finan­
cial condition of the bank, the poten­
tial for growth in this area, and the
bank’s dominance of the market,
this is a very positive move for Firs­
Tier and David City.”

Promoted in North Platte
LINCOLN mayor Roland Luedtke cuts the ribbon for the grand opening of the new dow n­
tow n location o f the Havelock Bank at 14th and M Streets. Havelock Bank President Terry
King (left) assists.


avelock Bank and City Bank
and Trust Company of Lincoln
have merged under the Havelock
Bank name. The merger has been ap­
proved by the FDIC and the Neb­
raska Department of Banking and
Finance and was effective Dec. 31,
1985. The combined bank will con­
tinue to be owned by Omaha Na­
tional Bank.
The City Bank and Trust Com­
pany has become a downtown
branch of the Havelock Bank and

will remain a full-service facility.
According to Havelock Bank
President Terry L. King, the merged
bank will have $56 million in assets,
making it more competitive in down­
town Lincoln.
The merger was celebrated with
open houses at the three Havelock
Bank locations and a ribbon-cutting
ceremony at the new branch. Re­
freshments and gifts of plants were
offered to customers for the occa­

David City Bank Merges

to occur on February 3, at the bank
in David City.
James L. Howe, president of First
National Bank of David City, will
continue to manage the office, and
all other employees and officers will
continue with the bank.
Mr. Howe said the merger with
First National Lincoln marks a new
era for banking in the region by

The First National Bank of David
City officially merged with First Na­
tional Bank & Trust Company of
Lincoln, a FirsTier Bank, on Janu­
ary 31, 1986, according to an an­
nouncement by William C. Smith,
president and chief executive officer
of the Lincoln Bank.
An unveiling of the new name was
Banker, February, 1986
Federal Reserve Bank of St. Louis

The McDonald State Bank, North
Platte, has announced promotions
for two officers, effective at the be­
ginning of the year.
Nickette Evans has been pro­
moted to cashier of the bank. Mrs.
Evans first became associated with
the bank in 1970. She was named
assistant cashier in 1980, has been
responsible for the bank’s account­
ing function, and served as manager
of the bookkeeping and proof de­
partments. As cashier, Mrs. Evans
becomes the chief operations officer
of the bank.
Linda Morrison has been pro­
moted to assistant vice president.
Mrs. Morrison joined the bank in
1966 and was named assistant
cashier in 1981. When the bank
started its trust department in 1982,
she was also named as assistant
trust officer, which title she will re­
tain. Mrs. Morrison also serves as
personnel officer and supervises
loan accounting and the bank’s
escrow department.
(Turn to page 58, please)


Municipal &
Bond Division
When you need to trade
municipal and government
issues, it pays to know the
faces of First National
Lincoln’s Municipal &
Government Bond Division.
The First Team can provide
fast, accurate service;
up-to-the-minute market
information and research;
and the strength, experience
and expertise of Lincoln’s
largest bank.
For value-added investment
service, think of us first.
First National Lincoln.
From left to right: Dwain Carlson, Manager;
Jay Callahan, Bill Van Lent, John Walters,
Ray McMahon, Marlene Wagner.

-= = F ir s T ie r B a n k s
First National Lincoln M
13th & M Streets • P.O. Box 81008
Lincoln, Nebraska 68501
Phone 800-742-7376
Federal Reserve Bank of St. Louis

Northwestern Banker, February, 1986


Bankers Trust pro v id es a full
There's a n Iow a te a m to h e lp you
ra n g e oi in te rn a tio n a l b a n k in g serd o business overseas.
The Iow a E xport-Im port T rading vices to facilitate th e fin an cial a n d
d o c u m e n ta ry n e e d s of y o u a n d
C o m p an y assists Iow a c o m p a n ie s
custom ers.
in m arketing, sh ip p in g or p ro c u r­
Now w e 're w orking together, We
ing their p ro d u cts outside the
h a v e th e e x p e rie n c e a n d resources
U.S. We h e lp you b re a k into n ew
that c a n h e lp you e x p a n d your
m arkets, p r e p a r e th e n e e d e d
sales a n d profits.
docum ents, a r r a n g e
C ontact Bankers
transport — a n d cut
P o | i
In tern atio n al Divith ro u g h the re d ta p e I I f l l
sion soon. Together,
— to m a k e th e prolo l
w e'll h e lp you ta k e on
cess g o sm oothly for
tn e
e w
W OorJ
rld ... a n d w in !
your c o m p a n y
e r fdic

(515) 245-5288


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

(515) 245-2464


Elected in Climbing Hills
Francis J. Palmersheim has been
elected chairman of the Climbing
H ill S a v in g s
Bank, Climbing
Mr. Palm er­
sheim was an or­
ganizer and pres­
ident of Siouxland N ational
Bank in South
Sioux City, Neb­
raska previous F. PALMERSHEIM
to joining the
Climbing Hill Bank. He began his
banking career with First National
Bank, Ottumwa, in 1968 after work­
ing with Thorp Finance Corp. for
several years. In 1974 he joined Da­
kota County State Bank in South
Sioux City, Neb.
In addition to serving in his capa­
city at Climbing Hill Savings Bank,
Mr. Palmersheim also continues to
serve on the board of Siouxland Na­
tional Bank in South Sioux City.

New President Named
at Norwest Mason City
The board of directors of Norwest
Bank Mason City has named Arlan
Tengwall presi­
dent and chief
executive officer
of the bank, ef­
fective February
Mr. Tengwall
had been senior
vice president
and head of Nor­
w est C orpora­ A. TENGWALL
tio n ’s agricul­
ture business group, as well as man­
aging officer and chairman of Nor­
west Agricultural Credit, Inc., Sioux
Falls. He was elected to his new post
in Mason City at a meeting of the
bank’s board of directors held Janu­
ary 21 .
Mr. Tengwall succeeds Jack W.
Federal Reserve Bank of St. Louis

Nielsen, who is resigning to pursue
other opportunities.
Mr. Tengwall, who held his latest
position at Norwest Corporation
since 1982, previously was vice
president and manager of the agri­
cultural credit division at Norwest
Bank Minneapolis.
He joined Norwest in 1966, begin­
ning as an agricultural representa­
tive at Norwest Bank Helena, Mont.
He previously spent six years with
the PCA System in the St. Paul dis­
trict and one year with the Iowa
State Bank, Algona. In 1970, he be­
came vice president and supervisor
of agricultural credit at Norwest
Bank Aberdeen, S.D.
From 1975 to 1977, he served as
vice president in charge of agricul­
tural lending at Texas American
Bank, Fort Worth, where he also
served as a board member and vice
president of American Ag Credit
Corporation, a subsidiary of that
bank. He returned to Norwest in
Tengwall has a degree in agricul­
tural business from the University
of Minnesota College of Agriculture
and is a graduate of the Wisconsin
Graduate School of Banking.

and Trust Com­
pany of Water­
loo, has a n ­
nounced th a t
Donald L. Porchet has been
elected president
of the bank.
Mr. Porchet is
formerly presi­
dent of Bankers
Plus, Inc., Min­
neapolis, a bank equipment leasing
subsidiary of Peoples Bankshares,
Ltd. He will continue as president of
this affiliate. He has been with the
Peoples organization for over 26
Mr. Sverdahl will remain as chair­
man of the board of Peoples Bank as
well as chairman of the board and
president of Peoples Bankshares,
Ltd., with more of his time being
devoted to the management and op­
erational efficiencies of the multi­
bank holding company.

Elected in Kellogg

Roger J. Hoick has been elected
president of Kellogg-Sully Bank &
Trust, Kellogg.
He jo in s the
bank after serv­
ing as vice presi­
dent and man­
ager of the agri­
c u ltu ra l d iv i­
sion of F irst
American State
Bank in Fort
Dodge. He is a
graduate of the
American Bankers Association Na­
tional Agricultural Bank Manage­
Pres. Elected in Waterloo
ment School and currently serves on
R.K. Sverdahl, chairman of the the Iowa Bankers Association Agri­
board and president of Peoples Bank cultural Committee.

1986 Iowa Group Meetings

February 7-8
February 16-17
May 5
May 6
May 7
May 8
May 19
May 20
May 21
May 22

Sioux City
Iowa City
Des Moines
Council Bluffs
Fort Dodge
Clear Lake
Northwestern Banker, February, 1986


Iowa News

Elected in Mount Pleasant

tional Bank of
B o o n e - S tr a tford. He has
been with Hawkeye Bancorporation for 13 years,
most recently as
president of The
F irst National
Bank of Sibley.
Prior to that, he
was with Hawkeye Bank and Trust of Sioux City
and First Federal State Bank of Des
Moines, now Hawkeye Bank and
Trust—Des Moines.

At Henry County Savings Bank,
Mount Pleasant, Dean Hicks has
been e lec te d
p resid en t and
chief executive
officer. Robert
L. Norris, who
has served as
president for the
past ten years,
announced his
retirement effec­
tive December
Mr. Norris joined the Henry Coun­
ty Savings Bank in 1950 and served in
various capacities before his election IBIS Sponsors School
to president in 1975.
Iowa Bankers Insurance & Ser­
Mr. Hicks joined the bank in 1984
Inc. will sponsor a Credit Life
as executive vice president. He pre­
viously served as president of Com­ & Disability Licensing School, Feb­
munity National Bank & Trust ruary 24-25, 1986 at the Holiday
Company in Knoxville. He also Inn, Capital Plaza, Des Moines. The
served as senior vice president of fee is $45.00 for bankers and $55.00
for nonbankers and will include a li­
Brenton State Bank of Jefferson.
censing information bulletin, study
materials, two days of instruction,
lunch, and refreshments both days.
Elected in Boone
Lodging and an Iowa Agents’ Study
Stephen G. Patterson has been Manual are not included in the
elected president of Citizens Na­ school fee.

Committed to
making your
bank stand
apart from the

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

Dwight Seegmiller Named
President of Hills Bank
Dwight O. Seegmiller was elected
president of Hills Bank and Trust
Company, Hills,
by the board of
directors at their
January meet­
ing. Mr. Seeg­
miller formerly
was senior vice
president of the
bank. Mr. Seeg­
miller fills the
vacancy created D.O. SEEGMILLER
D ecem ber
when a farm customer shot and
killed President John R. Hughes.
The Hills Bank board of directors
also announced further promotions.
James R. Gordon, formerly vice
president and trust officer, was
named senior vice president and
tru st officer. James G. Pratt,
formerly vice president and con­
troller, was elected senior vice presi­
dent and controller.
Roger J. Reilly, was advanced to
vice president from assistant vice
president and Thomas L. Kriz was
promoted to assistant vice presi­
Kevin J. Bernhardt was elected
assistant cashier after completing
an officer training program.

Retired in Mapleton
Frances Schmeling, cashier and
assistant trust officer of the First
State Bank of
Mapleton, has
retired as of Jan.
1. She joined the
bank in 1947 and
served in all ar­
eas of bank op­
eration as well
as managing the
Fred H. Welch
Insurance Agen­
cy for m any
years. She was very active on both
the state and national level of the
N ational Association of Bank
Women, including serving as re­
gional vice president for the states
of Iowa, Nebraska, Kansas and Mis­
Mrs. Schmeling was honored with
an open house attended by over 250
on Dec. 13. In January her co-work­
ers held a dinner in her honor as well.

First Mattonai Bank • West Union, Iowa
Federal Reserve Bank of St. Louis


Iowa News

First Interstate Economist
Sees Better Iowa Outlook
Dr. A. James Meigs, senior vice
president and chief economist of
First Interstate Bancorp, Los Ange­
les, forecast last month in Des
Moines that “Iowa’s outlook for
1986 is more promising.” He based
his forecast on the national economy
improving significantly and with ex­
pectations for a further decline in
dollar value over the year. “The pro­
spects for agriculture will be better
in 1986,” said Dr. Meigs, “than they
have been in several years, although
still difficult for many operators.”
Dr. Meigs noted that “ Iowa’s fun­
damental problems lie in its relative­
ly heavy dependence on agricul­
ture.” Positive factors he noted in
the Iowa economy are the state’s
electrical equipment sector with
20,200 jobs, the printing and pub­
lishing industry, which added 600
more jobs the past year, and the in­
surance industry which showed em­
ployment gains.
In regard to agriculture, Dr.
Meigs said “Farmers were misled by
so-called experts in the 1970s, who
proclaimed that the world was fac­
ing starvation by the year 2 ,000 .
Those erroneous statements led U.S.
agriculture to produce more, and
now, we have few markets. Other
countries began producing. India is
now exporting grain. China has in­
creased cotton production and it’s
killing California cotton producers.”
Dr. Meigs also stated, “Trying to
control the value of the dollar can
lead to more problems. The Carter
administration tried this and we
wound up in trouble.” He also said

Kenneth M. Myers (left), chmn. & ceo of
First Interstate of Iowa, Inc., v is its w ith Dr.
A. James Meigs, sr. v.p. & chief econom ist
of First Interstate Bancorp, Los Angeles,
when Dr. Meigs visited the Des Moines
holding com pany last month.
Northwestern Banker, February, 1986
Federal Reserve Bank of St. Louis

Hills Bank Opens North Liberty Office

AN a rc h ite c t’s draw ing de picts the new North Liberty o ffic e o f H ills Bank and Trust Company. The o ffic e was opened on Feb. 3 and is located at Highw ay 965 and Zeller Street. The
full-service o ffic e offers loans, checking and savings accounts, ce rtific a te s of deposit and
investm ent, safe deposit boxes, tru s t services, d iscou nt sto ck brokerage, and IRA’s. It w ill
have three drive-up lanes, a night depository and a 24-hour drive-up a u to m a tic te lle r ma­
chine. The upper level con tain s 3,400 sq. ft. of space, and the low er level includes a 1,200
sq. ft. com m unity room. The arch itect was Roland W ehner of Wehner, P attschu ll and P f¡fi­
ner, Iowa City. General co n tra cto r was TriCon C o nstructio n Com pany of Iowa City.

the Carter embargo on grain ship­
ments to Russia cost this nation
dearly in foreign grain markets.
Dr. Meigs was in Des Moines to
address the annual stockholders
meeting of First Interstate of Iowa,
Inc., Des Moines-based holding com­
pany that owns 13 Iowa banks.

was a collection of old silver U.S.
coins brought in by a woman who
was unaware of its potential value.
She followed bank officials’ sugges­
tion to contact a reputable ap­
praiser, and received over $70 for
her coins having a $16 face value.
FSB officials indicate next year
i other types of promotions will re­
Promoted to EVP in Waterloo place this event. In the five years of
The Waterloo Savings Bank re­ the promotion, nearly 3.25 million
cently announced the promotion of coins have been counted, having a
E. James O’Connor to executive vice face value of over $95,000. The bank
has paid individuals bonuses and
Mr. O’Connor has been with the premiums totalling over $3,100.
bank for 35 years and has previously
served as senior vice president. He Alternative Financing Is
has been in charge of the loan port­
folio of the bank and will assume Outlined in New Book
A new publication titled Financ­
more executive responsibilities in
the bank as well. Mr. O’Connor will ing Alternatives for Iowa Businesses
continue to act as president of the is available from the Iowa Business
Hudson State Bank which, along Development Credit Corporation. It
with the Waterloo Savings Bank, is is a reference source to assist lend­
an affiliate of the Metro Bancorpora- ers, accountants, attorneys or econo­
mic development specialists in re­
Mr. O’Connor is also vice viewing a comprehensive summary
president/secretary of Metro Ban- of the alternatives to conventional
bank financing for those business
Waterloo Savings has other of­ borrowers who don’t quite meet
fices located in Waterloo and Cedar bank lending standards.
Each of the summaries of federal,
state and private sources has been
reviewed and approved by the
Coin Promotion Held at
administrative agency involved.
Farmers State Bank, Marion Summaries are detailed and include
Over 665,000 coins were counted guidelines regarding eligibility,
at Farmers State Bank, Marion, on amount of funding available, pro­
Dec. 11 in the Fifth Annual Copper gram regulations and the applica­
and Silver Bowl promotion. Each tion process. Also included are the
year, for one day FSB buys loose name, address and phone number of
change and pays premiums and each administrative agency.
The publication price of $20 in­
bonuses to the individuals owning
cludes a three-ring binder and free
the coins.
One sidelight to the promotion up-dating service for one year.







! Strength
in Service.


Lon Kelling
Ag Lending Rep.

Doug Schmidt, Vice President Commercial Lending

(L) Max Larson

(R) Jim Anderl
Sr. Vice President

Gary Stevenson
Vice President
Correspondent Banking
7 1 2 - 2 7 7 - 0 6 18

• Item Clearance Serices to maximize available funds.
• Investment Services to handle Fed Funds, money transfers, security purchases and sales.
• Loans for a full range of services, including overline and liquidity loans, assistance with your
ag loans, commercial and bank stock loans.
• Credit Card Services for merchants and consumers for both MasterCard (including
MasterCard Gold) and Visa.
• Data Processing to put you on-line to the Banks of Iowa computers, the areas most
successful EFT/Instant Access processor.
Share our strength in service — the kind of strength you know will be there to help you, now
and for years to come!

First National Bank m
Federal Reserve Bank of St. Louis

Sioux City, Iowa 51101

Member FDIC



Iowa News

half years at the Webster City Com­ National Bank of Council Bluffs.
Deborah Mueller was promoted to
At First State Bank of Webster
vice president. She is cur­
City, Jeff Plagge has been promoted
to executive vice president and Seven Promoted in Lone Tree rently responsible for integrating
computer systems and systems
Mark Noll to vice president.
Several promotions have been an­ planning.
Rick Hagge was promoted to as­
nounced at the Farmers & Mer­
chants Savings Bank of Lone Tree. sistant vice president and agricul­
Gayle Kaalberg and Karen Forbes tural loan officer.
have been promoted to assistant
vice presidents. Julie Chown, Patricia
Huff and Audrey Lenz were ad­
vanced to assistant cashiers. Ann
Wieskamp was promoted to assis­ Appointed in Cedar Rapids
tant office manager. Deborah Lake
The Merchants National Bank of
was promoted to installment loan of­ Cedar Rapids recently announced
the appointment
Mr. Plagge joined the bank in
of Robert J. Louvar as assistant
1984. He also serves as executive
vice president in
vice president and cashier of the Added in Waterloo
Farmers State Bank at Stanhope.
Randall G. Ledger has joined the the correspon­
Prior to his joining the bank he was Hudson State Bank, Waterloo, as dent banking di­
employed by the Farm Credit Sys­ assistant vice president. Prior to vision. He has
tem for seven years. He served at joining the bank, he was vice presi­ te n y e a rs of
both the PCA in Council Bluffs and dent at the State Bank of Allison, banking experi­
Iowa, for two years and a loan offi­ ence in lending,
the PCA in Webster City.
Mr. Noll joined the bank in 1983 cer for the Southeast Iowa PCA for operations, ad­
ministration and
as an agricultural representative. five years.
data processing. Most recently he
He was promoted to assistant vice
was president and CEO of Midpresident in 1985. Prior to that he
America Financial Services in
was vocational agriculture instruc­ Promoted in Council Bluffs
tor and FFA advisor for four and a
Two have been promoted at First Davenport.

Promoted in Webster City

Seventh at Town Clock Plaza
Kennedy at Wacker
Jackson and White at 22nd
Asbury at Hales Mill Road

DECEMBER 31, 1985
Cash and Due from
Financial In stitu tio n s.................. $ 12,648,000
Federal Funds S o ld ..........................
Investment Securities
U.S. Treasuries and Agencies . . .
State and Political Subdivisions .
Other Investment S ecurities........
Loans, Net of Unearned Income
Reserve for Possible Loan Losses
Net Loans .................................... $100,373,000
Bank Premises and Equipment . . . .
Other A s s e ts ....................................
TOTAL ASSETS............................ $206,564,000
D e po sits...........................................
Federal Funds Purchased and
Securities Sold under Agreements
to Repurchase..............................
Other Liab ilities................................
Total L ia b ilitie s ............................
Common S to c k ................................
S urplus.............................................
Undivided P ro fits ..............................
Total Stockholders E q u ity ..........


John J. Savary

Cheryl M. Christ

N.J. Yiannias

WHIiam Q. Kruse

Assistant Vice President Manager North Dubuque

Trust Administration Officer

Dubuque Theatre Corp.
Key City Investment Co.

Chairman of the Board and
Chief Executive Officer

J. Bruce Meriwether

Paul J. Qltch
Senior Vice President Special Lending

Thomaa J. S tacher
Senior Vice President Operations

Richard A. Bean
Senior Vice President Finance

Daniel E. Welu
Senior Vice President and

Thomas W. Buelow
Vice President Loan Administration

$ 4,800,000

Gladys A. Hueneke

Shirley A. Christensen
Trust Operations Officer

Assistant Vice President


Beverly J. Anderson

Edward A. Babka

Assistant Vice President Personnel Director

Paul A. Pfohl
Assistant Vice President Installment Loan Manager

Linda L. Budde

Babka Publishing Co.

Paul L. Britt
President, Dubuque
Stamping & Mfg. Inc.

Paul J. Gisch

Assistant Vice President Manager Real Estate

Senior Vice President Special Lending

R a n d s A. “ Chip”
Murray, Jr.

President, Communications
Properties, Inc.

Assistant Vice President Manager West Dubuque

William G. Kruse

Philip T. Kelly

Chairman of the Board and
Chief Executive Officer

Sara J. Candy

John W. Law

Leo M. Maille

Personal Banking Officer

John W. Law Co., Retired

Vice President Agricultural Lending

Mary A. Plersch

J. Bruce Meriwether

Personal Banking Officer


Dale P. Repass

Alan L. Schuster

Wayne A. Norman

Vice President •
Commercial Lending

Personal Banking Officer

John M. Hansen


Planning and Development
Officer, University
of Dubuque

Vice President Investments

John S. Nlgg

Roger J. Rhomberg

David W. Spahn
Vice President and

C. Michael Reilly
Vice President Marketing and
B usiness Development.
Non-Bank Services

Mark E. Small

Data Services Officer

Scott A. Tlbben
Agricultural Loan Officer

Rhomberg Fur Co.

James E. Walsh

Trust Department

Bird Chevrolet Co.

Mark J. Wlllging

James D. White

Vice President Trust Officer and
Trust Department Manager

Director of Manufacturing John Deere Dubuque


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

Honorary Directors
Waldo Adams
Frank A. Fluckiger
Charles J. Spahn
Catherine Wlnall

Iowa News

The New Superintendent




PICTURED at his desk after assum ing his
new duties on January 10 as Iowa superin­
tendent of banking is William R. Bernau. As
noted in last m o n th ’s issue, Mr. Bernau suc­
ceeds Thomas H. Huston, who held the
post since Septem ber 1, 1975, and has re­
turned to C olum bus Jun ction where he is
president and CEO of C olum bus Jun ction
State Bank. Mr. Bernau, 54, is chairm an and
president of Peoples Savings Bank in Crawfo rd sville in southeast Iowa. He is also
chairm an and president of the Iowa State
Bank & Trust Co. in Center Point and ch a ir­
man of W alker State Bank in W alker. Mr.
Bernau was curre ntly chairm an of Iowa
Bankers A ssociatio n Group 11, w hich
placed him on the IBA board of directors,
but resigned those p o sitio n s when he be­
came superintendent.

Promoted in Waterloo
At the National Bank of Water­
loo, Leo P. Rooff has been promoted
from vice president to senior vice
president of governmental relations.
He joined the bank in 1983 after
serving ten years as the mayor of

Appointed, Promoted
in Clinton


been announced at Norwest Bank
Cedar Falls.
Mark A. Long has been promoted
to vice president—commercial bank­
ing. He will be assuming the duties
of Henry Dion, who has accepted a
position with a bank in Rochester,
Minn. Mr. Long has been with Nor­
west Corporation since 1981, and
with the Cedar Falls bank since 1984
as commercial banking officer. He
was named assistant vice presi­
dent-commercial banking in July,
Duane A. Amhof, commercial
banking officer, will be assuming a
more predominant role in the com­
mercial lending area assisting Mark
Long. He has been with Norwest
Corporation since 1983 and with the
Cedar Falls bank since 1984.
Cathy Rottinghaus is transfer­
ring to the Cedar Falls bank as com­
mercial banking representative. She
will be assuming duties in the com­
mercial and ag lending areas. She
started with Norwest Bank Des
Moines, N.A. as a regional credit
trainee in Jan., 1985.

At Clinton National Bank, Clin­
ton, James E. Stachour has been ap­
pointed senior
vice president,
and Raymond E.
M e is te r
an d
David J. Ramnath have been
Mr. Stachour
comes to the
bank after servt a g as president
stacho ur
of the First Na- J E' STACH0UR
tional Bank in Sioux Center, Iowa,
since 1985. He was employed by
First National Bank since 1970.
Mr. Meister was promoted to vice
president in charge of the agricul­
tural lending department. He joined
the bank in 1984 after serving seven
years with the PCA in Perry. Mr.
Ramnath was promoted to assistant
cashier in charge of the real estate
lending department. He joined the
bank in 1982 as a trainee. Prior to
being assigned to the real estate
loan department, he was trained in
several areas of both the main and Elected in Sioux City
branch banks.
At Hawkeye Bank & Trust, Sioux
City, Richard L. Davison has been
elected to the board of directors. He
Changes Announced
has been with the bank since 1984
in Cedar Falls
and serves as vice president and se­
Three personnel changes have nior loan officer.

Farm M anagem ent Division
King Management Company offers professional,
client-oriented, farm management and counseling
service free from any fundamental conflict of interest.
Specialists in professional farm management, farm
acquisition for investment, farm appraisals and



Jay Hall has transferred to the
National Bank of Waterloo from
Midway Bank & Trust. Both banks
are subsidiaries of Iowa National
Bankshares. Mr. Hall was formerly
a loan officer at Midway Bank &
Trust from 1979 through 1985. He
will hold the position of operations
Federal Reserve Bank of St. Louis

James C. King
Raymond A. Schneider • Michael W. Murrane
816 Equitable Bldg. • Des Moines, IA 50309
Members of American Society of Farm Managers and
Rural Appraisers and Farm & Land Institute

Northwestern Banker, February, 1986


Iowa News

NABW Convention Scheduled
The National Association of
Banking Women’s state convention
will be held May 14-16, 1986 at the
Downtown Holiday Inn, Iowa City.
The theme for this year’s convention
is “Managing for Profit-The Key to
Power.” Convention features in­
clude humerous and informative
speakers, a legislative panel, work­
shops, a theatre production, and
banquet hospitality. The convention
is being hosted by the Southeast
Iowa Chapter of the National Asso­
ciation of Banking Women, and they
invite everyone who is interested to
attend. For further information con­
tact Patti Johnson, publicity chair­
man, Iowa State Bank and Trust
Company, Iowa City.

Changes Announced
in Wellsburg
Leland D. Luwe, chairman of the
board of Peoples Savings Bank in
Wellsburg, has resigned his position
effective December 31, due to health
reasons. He has been chief executive
officer since 1959. At the time of his
employment as vice president and
cashier he was an officer of the First
Galesburg National Bank and Trust
Company of Galesburg, 111. He was
promoted to president in 1976 and
became chairman Jan. 1, 1985.
The bank has also hired a new
loan officer, Dennis Severson. He
previously worked with the Produc­
tion Credit Association and the Fed­
eral Land Bank in northeast Iowa.

Somers Savings Bank, Somers, has
announced his intention to retire in
February. He has been associated
with the bank, which also has an of­
fice in Callender, for 25 years. He
has been its chief executive officer
for the past 19 years.

Changes Made in Eldora
Four staff changes have been an­
nounced at Hardin County Savings
Bank, Eldora.
Raymond L. Nance, vice presi­
dent farm management and trust of­
ficer, retired after 31 years at the
bank. He remains an active member
of the board of directors and will
maintain his farm management
Linda L. Barcus has been pro­
moted to trust officer. She has been
with the bank since 1974, most re­
cently as assistant trust officer. She
will continue to manage the retire­
ment savings programs as well as
taking over Mr. Nance’s trust re­
Donald Willits and Carl Stevens,
both officer trainees, were hired dur­
ing 1985 to augment the agricul­
tural loan staff.

Added in Sioux Center

Lee Van Veldhuizen has joined
the ag lending staff at the First Na­
tional Bank of Sioux Center. He
served as a claims adjuster for the
Federal Crop Insurance Corpora­
tion, was employed by Schnept and
Miller Insurance and Real Estate in
Rock Rapids, worked for Porter Ti­
tle Co., Inc. and was an ASCS fieldChanges Announced
man for the U.S. Department of
in Manchester
Agriculture. Mr. Van Veldhuizen
On December 4, W.K. Wiewel re­ has obtained master residential ap­
signed as chairman of the board and praiser and master farm and land
president of First State Bank, Man­ appraiser certifications from the Na­
chester, after serving with the bank tional Association of Master Ap­
for 28 years. At the same time, L.W. praisers.
Justice and E.R. Widner also re­
signed as directors.
W.K. Wiewel is succeeded by his NEBRASKA NEWS . . .
two sons, Joseph Wiewel as chair­ (Continued from page 48)
man and James A. Wiewel as presi­
dent. Also recently elected to the Hosted by KBA/NBA
board were Robert F. Emerson, Dr.
The KBA and NBA Schools of
Timothy Cooper and Thomas Han­
Inc. will host a “Commer­
cial Lending School” April 7-11,
1986, at the Holiday Inn, Manhat­
tan, Kansas.
Somers President to Retire
The school is designed to address
Charles Petersen, president of the the educational needs of employees

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

with limited banking experience,
bankers with lending experience,
“seasoned” lending officers, credit
analysts, loan documentation clerks,
executive secretaries, and bank
Methods of instruction include
lecture, discussion, and audio-visual
presentations. An evening class and
special case studies provide a unique
opportunity for practical application
of concepts learned.
Registration begins at 11:30 a.m.
on Monday, April 7. An informal
luncheon buffet will be available,
and classes begin with an orienta­
tion at 1:00 p.m. The school session
will adjourn at 2:30 p.m. on Friday,
April 11, following a graduation lun­
cheon and address.
Enrollment fee is $700 for single
housing, $600 for double housing,
and $550 for no housing. This fee in­
cludes: registration, instruction,
four nights lodging, continental
breakfasts, lunches, coffee breaks,
two dinners, one reception, and all
classroom materials.
For additional information con­
tact Jone Beer, adm inistrator,
Schools of Banking, Inc., Lincoln,

NBA and KBA Sponsor
Banking School
The School of Banking Funda­
mentals, co-sponsored by the Kan­
sas and Nebraska Bankers Associa­
tions, will be held March 17-21 at
the Holiday Inn in Manhattan, Kan­
sas. Applications are being accepted
through Feb. 17 on a first-come,
first-served basis.
The school is designed to intro­
duce students to basic banking con­
cepts as they relate to the overall
functioning of a bank. It is directed
toward those employees new to
banking, those interested in broad­
ening their banking knowledge, or
those looking toward future posi­
tions of more responsibility in the
banking industry.
The enrollment fee is $650 for
single housing, $550 for double
housing and $500 without housing.
It includes registration, instruction,
breakfasts, lunches, coffee breaks,
two dinners, one reception, and all
For information about the School
contact Ms. Jone Beer, The Schools
of Banking, Inc., 525 S. 13th Street,
Lincoln, Nebraska 68508, phone
(402) 474-3313.

Statement of Condition
December 31,1985

Cash and Due From Banks
Federal Reserve Funds Sold
U.S. Government and its Agency Securities
Municipal Securities
Other Marketable Corporate Obligations
Federal Reserve Bank Stock
Bank Premises and Equipment
Interest Accruals
Other Assets


39,637 ,647.05
37, 100,000.00
545 ,878 ,617.87
212 ,564 ,533.38
2 ,049 ,889.65

1, 122,000.00
231 ,958 ,244.98
11,259 ,816.12
25,689 ,390.87
9 ,903 , 149.74

$1, 117, 163,289.66

Capital Stock
Undivided Profits


Total Capital Funds

2 ,400 ,000.00
35,000 ,000.00
62 ,868 ,058.47

$ 100,268,058.47

Federal Reserve Funds Purchased and Securities
Sold Under Agreement to Repurchase
Reserves for Interest, Taxes and Other Liabilities

278 , 757 ,235.98
21,234 , 158.39
716 ,903 ,836.82

$1, 117, 163,289.66
V.O. Figge
Chairman of the Board

Edward L. Carmody
Senior Vice President

Mel Foster, Jr.
Pres., Mel Foster Co., Inc.

Robert G. Lenertz
Senior Vice President

James Kahl Figge
Office of the President

Thomas A. Gildehaus
Executive Vice Pres., Deere & Company

Lloyd G. Schermer
Pres., Lee Enterprises

John Kahi Figge
Office o f the President

Thomas Kahl Figge
Office of the President

Richard E. Kautz
Senior Vice President

Charles R. Von Maur
Petersen-Harned-Von Meur

Robert V.P. Waterman
Lane and Waterman

Joseph S. Kimmel, Jr.
Pres., Republic Electric Co.

Henry C. Wurzer
Kahl Properties

Davenport Bank and Trust Company

203 West Third Street • Davenport, Iowa • 52801
Federal Reserve Bank of St. Louis

Resources Exceed One Billion Dollars


Des Moines
HE board of directors of Norwest Bank Des Moines, N.A. re­
cently elected a new chairman and
president, effective immediately.
The bank is the largest in Iowa with
assets of $1.4 billion and deposits of
$1 billion.
George F. Milligan, bank presi­
dent since 1981, will become chief
executive officer and chairman of
the bank, posts previously held by
Harry C. Benson.
Succeeding Mr. Milligan as presi­
dent and chief operating officer will
be H. Lynn Horak, who most recent­
ly served as executive vice president
of commercial lending, treasury and
retail banking. Mr. Horak also was
elected to the bank’s board of direcT



Mr. Benson will continue to serve
as banking group head for four other
regions within the corporation.
Mr. Milligan served in the Iowa
legislature from 1968 to 1974 as a
state representative and state sena­
tor. A graduate of Washington and
Lee University and Drake Universi­
ty Law School, he has been active in
many community and civic organi­
Mr. Horak, 39, a graduate of the
University of Northern Iowa and a
Banker, February, 1986
Federal Reserve Bank of St. Louis

native of Vinton, has been with Norwest Bank Des Moines since 1972
when he joined the bank as a man­
agement trainee. He has held many
positions within the bank, including
correspondent banking officer and
group vice president of investments
and administrative services. He was
named executive vice president and
chief financial officer in 1981 and
has held his present position as
banking division head since 1983.
* * *
West Des Moines State Bank has
announced the promotion of five of­
ficers and the election of a new offi­
Michele A. Gregory was pro­
moted from second vice president to
first vice president. She began her
banking career in 1977 with First
National Bank, Libertyville, 111. In
1981 she joined West Bank, became
assistant cashier in 1983, and sec­
ond vice president in 1984.
Richard H. Kickman was ad­
vanced from first vice president to
vice president. He held various posi­
tions at United Central Bank (now
First Interstate) in Des Moines from
1974 to 1984. He joined West Bank
as a first vice president in 1984.
David R. Milligan was promoted
from first vice president-trust offi­
cer to vice president-trust officer.
He joined the bank in 1980 in credit
review, the trust department, and as
in-house legal counsel. He was
elected trust officer in 1981 and first
vice president in 1984, while con­
tinuing in credit.
Rod S. Weikert was advanced
from first vice president to vice

president. Prior to joining the bank
in 1981, he was employed by Mutual
Federal Savings and Loan in Mason
City as a loan officer and later as
director of marketing. After several
promotions at West Bank, he
became a first vice president in
1984, working in all phases of lend­
ing and responsible for management
of the mortgage department.
Phyllis J. Brown was advanced
from first vice president to vice
president. She held bookkeeping
positions prior to joining the bank in
1965 as a secretary. Her promotion
to first vice president was in 1984.
She serves as secretary to the presi­
dent, secretary to the board of direc­
tors and secretary to West Bancorporation, Inc. She is also audit
supervisor, is responsible for payroll
and fringe benefits, supervises bond
portfolio operations and is respon­
sible for the majority of budgeting,
monthly profit and loss statements,
and tax computations.
Daniel L. McNace was elected
assistant cashier. He joined the
bank in 1977 in the bookkeeping
department and since has held vari­
ous positions both at City Center
and at the Grand office.
* * *
Kenneth M. Myers, chairman and
chief executive officer, announced
today that First Interstate of Iowa,
Inc. will increase its provisions for
loan losses to $7.3 million in the
fourth quarter, 1985, compared to
$3.8 million for the same period in
1984, and to $2.1 million for the
third quarter of the current year.
The increase in the provision for
loan losses will result in the com­
pany’s allowance for loan losses
amounting to approximately $12
million and in excess of 2 % of loans,
net of unearned income, at Decem­
ber 31, 1985. The company will re­
port a net loss of approximately $6
million for the 1985 fourth quarter
and of over $10 million for the year
ended December 31, 1985.
Mr. Myers stated, “After giving
due consideration to the continuing
deterioration of the Iowa agricul­
tural economy and to other relevant
factors, management felt that it was
prudent to increase the loan loss
allowance to an historic high. This
action further was influenced by the
recent prediction that agricultural
lenders will write off $3.3 billion of
loans to farm operators in each of
1986 and 1987. Our lead bank,


W ith most insurance
plans, if you’re not sick
before you get your
final medical bill, you
will be after.
But not with IBIS
Our many health
care plans are as
substantial as our
premiums are minimal.
Including coverage on
prescription drugs and
physical exams.
Why, we even cover
your mouth.W ith dental
plans as contemporary
and complete as any
Health and dental
insurance designed
by Iowa bankers,only for
Iowa bankers.
Federal Reserve Bank of St. Louis

W hich is one more
reason why we’re the
choice of 483 out of 644
banks in Iowa.
Like to know more?
Call Millie Uding at
1'800-532' 1423 toll free
today. You’ll be sick if
you don’t.
400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308

Northwestern Banker, February, 1986


Iow a News

located in Des Moines, enjoys a
stronger economic environment and
continues to operate profitably, with
our agricultural banks suffering the
greater impact of the adverse condi­
* * *
Brenton Banks, Inc. announced
December 20, 1985 that its board of
directors voted to omit the com­
pany’s regular cash dividend on
2,398,645 shares of common stock.
Brenton Banks Chairman William

H. Brenton said, “This is a prudent
approach to the continuing pres­
sures and uncertainty of the Iowa
economy, in particular the farming
sector.” By eliminating the divi­
dend, he said, the company will fur­
ther augment its capital position,
and reduce its short-term debt at a
time when capital strength of the
company and its affiliates is most
desirable. Future payments of divi­
dends will be evaluated on a quarter­
ly basis as earnings improve. Mr.
Brenton further said, “The decision

and Farm Lending
W hether your custom er’s business requires
seasonal operating credit or longer term financing,
we can help you. We specialize in correspondent
loans to farm producers and agri-businesses. If
your present needs dictate a correspondent who
can create a financial program th at fits with your
custom er’s operation, call us today.
For further information contact:
Kenneth D. Danilson, Vice President
First Interstate Bank of Des Moines, N.A.
Locust at Sixth • Des Moines, IA 50309
515-245-7348 • Iowa WATS: 800-362-1615

Member FDIC


to eliminate the dividend was the re­
sult of anticipated lower earnings
performance due to increased loan ®
loss provisions.”
* * *
Raymond G. Johnston has been
elected to the board of directors of ®
West Des Moines State Bank, and
Sharen K. Surber has been elected



Mr. Johnston was formerly asso­
ciated with United Central Bank of
Des Moines (now First Interstate)
serving in various capacities includ­
ing trust officer, senior vice presi- #
dent—commercial lending, and pres­
ident and CEO until 1981. He came
to West Bank from R.G. Dickenson
& Co. and in 1984 was elected senior
vice president—commercial lending. #
Ms. Surber has had thirteen years
of bank operation experience, eleven
of which were at West Des Moines
State Bank. In 1980 she was elected
assistant cashier.

Advanced Resource Technologies, Inc...............................11
American Data Technology, St. P a u l................................. 35


Bankers Plus, Inc............................................................................ 15
Bankers Trust Company, Des M o in e s ............................... 50
BetaWest Properties, Inc................................................. 12-13
Central Bank of Denver................................................... 42-43
Chase Manhattan Bank, N.A................................................63
Custom Classics Marketing, Ltd......................................... 14
Davenport Bank & Trust C om pany..................................... 59
Drovers Bank of C h ic a g o ................................................... 6-7
Evergreen Systems, Inc.......................................................


F e d e ra l H om e Loan M o rtg a g e C o rp o ra tio n 4 -5
First Bank Mlnneapolis/St. P a u l..........................................16
First Interstate Bank, Des M o in e s ..................................... 62
First National Bank, Dubuque ........................................... 56
FirstTier Bank L in c o ln ..........................................................49
First National Bank, O m aha............................................... 47
First National Bank, Sioux C it y ......................................... 55
First Wisconsin, M ilwaukee........................................... 32-33
Gross, Kirk Company, W a te rlo o ......................................... 53
Iowa Bankers Insurance & Services................................... 61
King Management Co., Des M oines................................... 57
Marquette Bank, Minneapolis ........................................... 31
Merchants National Bank, Cedar R a p id s ........................ 2
National Bank of Commerce, L in c o ln ............................... 44
Norwest Corporation, M in n e a p o lis ................................... 64
Office Concepts, Ltd., W aterloo......................................... 52
Swords Associates, Inc., Kansas C ity ............................... 10
Travelers Express Company, M in n e a p o lis ...................... 3

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


A .'' ( ¡ B o r r o w e r , n o r - a

/e n a e n

o r

today's world of shrinking margins
nd earnings pressures, it is essential that
anks play an increasingly active role in
anaging their own portfolios.
o when it comes to investing money you
vant a variety of sound opportunities.
hich is what you get at Chase.
ur Community Banking Division was
reated to provide a number of
vestment products specifically for
omihnunity banks.
ke the Chase Portfolio Investment
unds Service, our Guaranteed Rate
deral Funds Program and our Term
deral Funds Program which allow
ou to maintain liquidity, and high yields,
r your Trust Department's investment
eeds, the Chase Institutional Money
arket Account offers competitive
¡elds with FDIC protection.

A Borrower, and an Investor be

r the day's rates on these investments,
all 1- 800 - 223 - 3133 . For more
ormation, call Ms. Kamal Smith at

12- 552 - 2524 .
e look forward to seeing you at the
ational Assembly for Community
ankers Convention, San Diego, CA.


Federal Reserve Bank of St. Louis

Chase Manhattan Bank, N.A. Member FDIC

Fast check clearing.
Because you have
no interest in
funds in transit.
Reducing float is no longer
an optimistic goal. It’s a plain
necessity. A n d we believe
we offer the fastest, most
innovative cash letter services
you can find, anywhere.
It means we guarantee
availability. A n d we clear on
a local level, so not only
are we faster, but w e’re
capable of resolving errors
on the same day. We also
can tell you what’s cleared
and what’s been deposited
anytime after 9 a.m.
We define relationship
banking as being ready to
meet your needs before
they become problems.
A n d fast cash letter service
is just one example o f how
w e’re actively doing just
that. Call your Norwest
Client Executive for more
Financial Institutions Group
J§É|f 'ÿtÊhr,■

H k H

m um m m


:I I


i n n


Federal Reserve Bank of St. Louis