The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O r call Peter Bailey and get immediate personalized service. Peter Bailey is a good way for you to avoid being bumped from hold button to hold button. Call him and you won't have to go through a committee of juniors to get help. He's the man who can give you personalized assistance with your investment portfolio. Pete's an experienced pro in correspon dent banking. He knows your needs and he knows how our bank can help your bank make the most of its investments. Call Pete when you need: • U.S. Treasury Securities • Personalized Safekeeping • • • • Municipal Bonds A Market in Federal Funds Federal Agencies Commercial Paper or other money market instruments • Odd Lot Purchases for your customers Call Pete when you're tired of dealing with a committee of juniors. Peter Bailey's the reason why we can give you the personalized assistance you need. Call him on our inbound watts number (1-800-332-5991). He'll be waiting on you. Merchants National Bank C edar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA’ BANK Thank goodness for market research. As much as we wish it were true, not all of our ideas for new check designs and styles are winners. Some, in fact, turn out to be down-right lemons. But the good news is, we find out before you or your customers ever have a chance to see them. Thank goodness for market research. You see, long before a new product is introduced to you, we literally put it through the research mill. Our internal Market Research ..»-f people are busy finding out how the various segments of the market will respond to a new idea. "<u Their information tells us, before -* actual experience, how changes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -'■ T : I and innovations will answer your customers needs and wants. Of course, market research doesn’t make the decisions. .. but we believe it helps us make better ones. And, when we look back on some of our more recent decisions .. . like, the “ Spirit of America” program . .. and “ Rustic Americana”, we’re more than a little pleased with our market research. It’s helping us to serve you better. CHECK PRINTERS, INC. SALES HDQTRS. • P.O. BOX 3399, ST. PAUL, MIN. 55165 STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST N orthw estern B an ker, Jan u ary 1976 4 YO U 'VE HAD A ROUGH TIME! It’s been a rough year for commercial lending. Many established businesses didn’t make it through the recession, and banks were often left with inadequate collateral to cover loans. Many banks brought SLT into their problem loan situations and we helped them control and liquidate collateral without a loss, or at least a minimum loss. But that was after the fact. Now that the economy is turning upward, banks will be called on more than ever to finance expansion. Your problem of course, will be how to do this profitably. Try talking to your SLT representative. We can help you put together a collateral package based on inventory to insure a safe loan right from the start. We know we can help you make new loans to your customers and avoid the problems of the past year. Since we introduced our Field Warehouse service over fifty years ago, SLT has been helping banks and industry work together. If you feel that we can help you, please let us know. Before the fact. SLT WAREHOUSE COMPANY P.0. Box 242, St. Louis, Mo. 63166 • 314/241-9750 • Offices in Major Cities NATIONWIDE C OLLATERAL CONTROL SERVICES N orthw estern Banker, Jan u ary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 5 Senate Votes Interest On Checking Accounts rT', HE Senate has passed legislation that would allow federally char tered banks and savings and loan asso ciations to pay interest on checking ac counts. The bill makes other important changes in federal banking law that would blur current distinctions be tween different kinds of financial in stitutions. The measure now goes to the House, where a banking subcommittee is holding hearings on the same topics covered by the Senate bill. The newly passed bill would allow both federally chartered banks and savings and loan associations to offer NOW accounts nationwide, as soon as it’s enacted by both Houses of Con gress. As passed, it also would allow federally chartered banks to pay inter est on their regular checking accounts starting January 1, 1978, but the Fed eral Reserve Board would have authori ty to order a one year postponement. The bill would do away with a num ber of other restrictions besides the ban on checking account interest. Cur rently, federal regulatory agencies set ceilings on interest rates that can be paid to savers; the ceiling-setting au thority would be repealed five and onehalf years after the bill’s enactment. The bill would, for the first time, al low banks to offer savings accounts to corporate customers and savings and loan associations to make consumer loans and issue credit cards. Banks would get broadened authority to make real estate loans. Federally chartered credit unions would be allowed to make mortgage loans and offer check ing accounts. Bicentennial Project As its major bicentennial project, Manufacturers Hanover Trust Co., New York, will underwrite the produc tion of a series of four original halfhour films tracing the Revolutionary history of New York State. The series, “Paths of Rebellion: New York in the Revolution,” will be produced by WNET/13, New York, and broadcast in prime time and during school hours for classroom viewing in March, 1976, over the New York Network, a consor tium of New York public television stations. The series will also be offered to the Public Broadcasting Service for national distribution. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for your January 1976 reading • • • • • • • • « • • • • • • • • • • » • • • • • • • • • • • • • • • • • » • • • e 83rd Year N o. 1348 FEATURE ARTICLES 8 Convention Calendar 10 Bank Promotions and Changes 14 Corporate News 17 Changes and. Opportunities in 1976 —A N o rth w es ter n B an ker Survey 25 How Community Banks Can Improve Their Earnings in 1976 — A N o rth w es te rn B an ke r REGIO NAL Illinois News B A N K IN G NEWS 35 55 Colorado News Minnesota News 45 57 Nebraska News 58 Omaha News 62 Lincoln News Twin City News 46 South Dakota News 52 North Dakota News 53 Wyoming News 54 65 Iowa News Montana News 54 74 Des Moines New OTHER 76 Survey FEATURES index of Advertisers NORTHWESTERN BANKER 3 0 6 15th Street, D e i M oines, Io w a 5030«?. Phone 5 1 5 — 2 4 4 -8 1 6 3 Publisher M alcolm K. Freeland Advertising Assistant Sherri Nielsen Field Representative AI K erb el Editor Ben H a ller, Jr. Circulation Department Associate Editor Linda L. Rhein Auditor Oee Timmerman M ildred Barnes Field Representative. Field Representative pool M asters Glen Hicks N o. 1 3 4 8 . N o rth w e s te rn B a n k e r is p u b lis h e d m o n th ly b y th e N o rth w e s te rn B a n k e r C o m p a n y , 3 0 6 F if te e n th f ut M o in e j ’ I ° w a 5 0 3 0 9 . S u b sc rip tio n $ 1 .0 0 p e r co p y , $ 1 0 p e r y e a r. S eco n d class p o s ta g e p a id iyLTÎes M o in es a n d a t a d d itio n a l m a ilin g office. A d d ress a ll m a il (su b sc rip tio n s, c h a n g e o f a d d re ss F o rm 3 5 7 9 , m a n u sc rip ts , m a il item s) to a b o v e ad d re s s . N orthw estern B an ker, Jan u ary 1976 \ •••; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • ■- 7 “MGIC gives us more Directors’& Officers’ liability coverage than any other insurer, at a reasonable premium? Did you an alyze coverage offered by a num ber of D & O liab ility com panies? “Yes. Four besides MGIC. And very thoroughly. We found that types and quality of coverage varied all over the lot. But only MGIC provided a complete protec tion tailored to our bank’s needs. And for a reasonable cost.” D ale L. Jern b erg, Exec.V.P. and D irector, N ational Bank of Washington, D.C. tells how MGIC provides coverage for directors and officers, plus an ex clusive combination of k ey featu res tailored to a bank’s needs, H ow do MGIC’s fea tu res com pare w ith the others? “Their various plans, limits of liability, and deductibles offer extremely attractive options. The $5 million policy we have with MGIC protects all directors and officers. In any case covered, it pays 100% over the deductible limits we selected. “Also, when we indemnify to the extent permitted by law, MGIC’s coverage has far fewer exclusions than many other insurers. This ‘waiver of exclusions’ is most important to us. “In our judgment, MGIC’s D & 0 liability coverage is by far the best value we could buy. Other companies just couldn’t provide us the kind of protection that MGIC offers.” H ow do you fee l about your right to p articip ate in selection of counsel in the even t of a la w su it? “It is very important. MGIC would give us a free hand to choose counsel, subject to their approval. They also could advance legal fees in the event of a costly lawsuit which is covered. And they would cooperate with us to counter unfavorable publicity that could be damaging to the named individuals and to our bank.” Do you find g rea ter a w a r en ess of your specific n eed s and g rea ter flexib ility in MGIC’s D & O policy? “Absolutely. The other policies seemed pretty general, and not tailored to a bank’s needs. MGIC, on the other hand, really knows the financial com munity, because they’re part of it. This, coupled with the fact that they did their ‘homework’ before the initial proposal, proved the key to our decision. MGIC thoroughly knew what we needed and the result is a very secure feeling that we have the best D & O liability insurance we could buy.” MGIC Totally tailored D & O liability protection. And we mean total. MGIC Indemnity Corporation A Subsidiary of MGIC Investment Corp. MGIC Plaza, Milwaukee, Wl 53201 N orthw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker, Jan u ary 19 7 6 8 GET THE TEA iïl fl REAL BIG GIFT! SPONSORED BY YOUR BANK C o n v e n tio n C a le n d a r Jan. 11 -14—RMA Financial Statement Analysis, Omni International, Atlanta. Jan. 18-21— ABA Insurance and Protection Division Risk Management in Banking Seminar, Sheraton Inn, Reston, Va. Jan. 19— ABA Board of Directors Meeting, ABA Headquarters, Washington, D. C. Jan. 21-23— BAI Branch Office Administra tion Seminar, Park Ridge, III. Jan. 22-23— National Association of Real Estate Investment Trusts Lawyers Confer ence, Del Coronado, San Diego. Jan. 25-27— BAI 7th National Conference on Bank Security, Fairmont Hotel, New Orleans. Feb. 1-5— Assembly for Bank Directors, Sheraton-Waikiki and Royal Hawaiian Hotels, Honolulu. Feb. 2— Association of Reserve City Bank ers, Midwinter Conference, Plaza Hotel, New York. Feb. 8-10— BMA Marketing Management Seminar, Del Webb’s Townhouse, Phoe nix. Feb. 8-11—-ABA 57th National Trust Con ference, Peachtree Plaza, Atlanta. Feb. 8-20— ABA National Instalment Credit School, University of Oklahoma, Norman. Feb. 11-13— BAI Accrual A ABA Bank In vestment Conference, Americana Hotel, V Y. SPONSORED BY YOUR BANK Everyone in your community has an interest in the local team. A perfect gift for your high school or municipal sta dium is a Fair-Play scoreboard, or a bigger and better one than they have now. A donor sign under the scoreboard keeps your name or advertising message in front of the fans at every game. Fair-Play builds scoreboards and timing systems for every sport-indoor or outdoor—and in all sizes to fit every budget. 60,000 scoreboards installed throughout the world and 40 years of experience assure you of the finest and most modern scoreboards available. WRITE TODAY ^\W /v5> F0R C0L0RFUL CATALOGS FflIR PLflV SCOREBOARDS ADivision of The Fairtron Corporation P.0. Box 1847 - NB • Des Moines, Iowa 50306 N orthw estern Banker, Ja n u a ry https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 7 6 Feb. 15-17— BMA CEO Community Bank ers Seminar, Innisbrook, Tarpon Springs, Fla. Feb. 15-20— ABA Community Bank CEO Program, Santa Barbara Biltmore Hotel, Calif. Feb. 18-20— BAI Current Bank Tax Issues Seminar, Atlanta. Feb. 22-27— ABA National Personnel School, Radisson South, Bloomington, Minn. Feb. 25-27— BAI Workshop Series, Dallas. Feb. 25-27— ABA Construction Lending Workshop, Center For Tomorrow, Ohio State University, Columbus. March 3-5— ABA Western Regional Bank Card Workshop, Airport Marina Hotel, Los Angeles. March 7-9— ABA 28th Annual National Credit Conference, Fairmont Hotel, At lanta. March 7-10— BMA Annual Advertising Workshop, Omni International Hotel, At lanta. March 7-10— Western Independent Bankers 19th Annual Bank Presidents’ and Senior Officers’ Policy Seminar, Hyatt on Union Square, San Francisco. March 14-17— IBAA Annual Convention, Sheraton Waikiki, Honolulu. March 21-24— ABA Trust Operations and Automation Workshop, Americana Hotel, New York. March 28-30— ABA Northern Regional Bank Card Management Workshop, Hyatt Regency O’Hare, Chicago. March 30-April 9— ABA National Commer cial Lending School, University of Okla homa, Norman. March 31-April 3— BMA Essentials of Bank Marketing Midwest Extension, University of Chicago, April 1-3— ABA/Comptroller of the Cur rency Seminar for Chief Executive Offi cers of National Banks in Illinois and Indiana, Marriott’s Lincolnshire Resort, III. April 4-6— ABA Midwestern Regional BanM Card Division Conference, Stouffer’s Innr Cincinnati. April 4-7— ABA National Instalment Credit Conference, Fontainebleau Hotel, Miami Beach, Fla. April 11-14— BMA Commercial Bank Mar keting Workshop, Fairmont Hotel, Dallas. April 11-14— RMA Financial Statement Anlysis, Cosmopolitan Hotel. Denver. April 20— ABA Board, of Directors Meet ing, The Greenbrier, White Sulphur Springs, W. V. April 21-23— ABA Governing Council Meet ing, The Greenbrier, White Sulphur Springs, W. V. April 21-24— IBAA Seminar Workshop on Bank Ownership, New Orleans. April 25-28— ABA National Conference on1 Real Estate Finance, Fairmont Hotel,' Dallas. April 25-30— ABA National Commercial Lending Graduate School, University of Oklahoma, Norman. May 2-4— BAI Northern Regional Conven tion, Hyatt Regency O’Hare, Chicago. May 2-5— BMA Marketing Research Con-, ference, Hyatt Regency, Chicago. May 2-5— BAI Smaller Bank Presidents Forum, Miami. May 2-7— ABA National Personnel School, Ramada Inn, Arlington, Va. May 9-12— Conference of State Bank Super visors, 75th Annual Convention, Broad moor Hotel, Colorado Springs, Colo. May 13-16— NABW Northwestern Regional' Conference, Hilton Hotel, Portland, Ore., May 16-18— ABA National Marketing Con ference, Waldorf Astoria, N. Y. May 16-19— BAI Forum for Presidents of Smaller Community Banks, Dorai Coun try Club, Key Biscayne, Fla. May 17-19— ÀBA Northeastern Regional Bank Card Division Conference, The Americana, N. Y. May 23-26— RMA Financial Statement Analysis, Airport Marriott, Chicago. May 23-27— National Association of Credit Management 80th Annual Convention, New York Hilton. My 23-28— BMA Essentials of Bank Mar keting Course, University of Colorado, Boulder. May 23-June 4— BMA School of Bank Mar keting, University of Colorado. Boulder. May 24-25— ABA National Conference on LJrban & Community Economic Develop ment. Loews LTrFant Plaza Hotel, Wash ington, D.C. May 24-27— Association of Registered Bank Holding Companies 18th Annual Meeting,^ Grosvenor House, London. May 26-28-—NABW Lake. Midwestern and North Central Regional Conference, Stouffer’s Riverfront Inn, St. Louis. May 30-June 4— BMA School of Trust Business Development and Marketing, University of Colorado, Boulder. May 3 1-June 2— AIB Annual Convention, Chase Park Plaza Hotel, St. Louis. ! June 3— National Association of Real Estate Investment Trusts Accounting Conference, Crown Center Hotel, Kansas City, Mo, June 6-8— BAI Western Regional Conven tion, Salt Lake City Hilton. j June 6-11— Northwest Agricultural Credit School, Washington State University, Pull man. June 6-12— Bankers Associations of Wash ington, Oregon and Idaho 1st Northwest Agricultural Credit School, Washington State University, Pullman. June 6-18— ABA National Instalment Credit School, University of Colorado, Boulder. June 6-18— Stonier Graduate School of Banking, Rutgers University, New Bruns wick, N.J. 9 Our United States W e t h in k w e can do s o m e t h in g fo r y o u r a g e n c y . . . if not to d a y . . . m a y b e t o m o r r o w . W e ’re easy to d o b u s in e s s w ith and have th e e x p e rtis e in th e e x c e s s and s u r p lu s lin e s b u s in e s s to h elp you sell m o r e l! T h is past year w e ’ve add e d several to p ra n k in g s p e c ia lty in s u ra n c e c o m p a nie s to o u r ro s te r w h ic h give s us th e c a p a c it y and f l e x i b i l i t y to h a n d le ris k s o f any size o r e x p o s u re . If y o u h a v e n ’t used o u r f a c ilit ie s la te ly , o r are u n f a m ilia r w ith o u r o p e ra t io n , i t ’s t im e you give us a try — s e rvice and e x e c u tio n w h ic h is f r ie n d ly and r e lia ble. U n it in g th e s e s ta te s , w e are y o u r lin k to u n u s u a l c o v e ra g e s . JOHN H. CROWTHER, INC. MARK III SMITH CROWTHER, INC. 230 Soo Line B uild ing M in ne apo lis, M innesota 55402 Telephone: (612) 332-6537 2126 F inancial Center 666 W alnut Street Des M oines, Iowa 50309 Telephone: (515) 243-1221 106 East Eighth Street Sioux F alls, South Dakota 57105 Telephone: (605)336-0960 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r , J a n u a r y 1976 10 DAKTRONICS and other an P ROMOTIONS nouncements have been made by the following banks: American National Bank & Trust Co., Chicago: Robert C. Cellini, Mar shall Haywood III, David L. Keller and John F. Reuss have been promot ed from second vice president to vice president by the bank’s board of direc tors. Elected second vice presidents were David A. Kettwig, personnel division, and Bruce Rademacher, operations de partment. IMPACT A Daktronics display is the efficient a d v e rtis in g m edium th a t c re a te s traffic, new business, image and pro vides community service. Daktronics has taken the service ex pense out of time and temperature disp la y s w ith 1 0 0% s o lid s t a t e electronics. Our engineers will custom design a time and temperature display, that will enhance the appearance of your facili ty. Call or write us today! Daktronics will give you the edge over your com petition with 100% solid state displays. R. C. CELLINI M. H A Y W O O D III D. L. KELLER J. F. REUSS D. A. KETTW IG B. RADEMACHER MESSAGE CENTERS Daktronics offers entirely solid state message display centers with chang ing and traveling messages, and time and temperature information. DAKTRONICS, INC.] SOX 299 BROOKINGS, S.D. 57006 PH. 605-692-6145 N orthw estern B an ker, Jan u ary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 William S. Dillon, senior vice presi dent-trust department, has been given the added responsibility and title of trust counsel. He will coordinate all matters of law in the administration of trust accounts. Mr. Cellini heads the estate admin istration division, trust department. A graduate of Indiana University and DePaul University College of Law, he^ joined American National in 1969. Mr. Haywood, a graduate of Whit tier College in California and the Uni versity of Chicago Graduate School of Business, is in the commercial lending division. Mr. Keller joined American Nation-’ al in 1968 in the loan division. He is a graduate of Indiana University. Mr. Reuss heads the employee bene fits division of the trust department. He has been with the bank since 1965. Bank of America, San Francisco: Richard F. Larsen has been appointed vice president and senior economist of the bank’s Los Angeles-based North America Division. He joined the bank a year ago as a vice president, cashier’s department. Caryl F. Conner has joined the bank as senior editorial officer and di rector of editorial services. He former ly was senior associate and acting di rector of the Diebold Institute for Public Policy Studies, Inc., New York City. Central National Bank, Chicago: The following promotions and elections of new officers have been announced by Frank E. Bauder, chairman. Christopher W. Roberts has been named executive vice president in charge of the in ternational bank ing and agricul C. W . ROBERTS tu ral banking groups. He joined Central National in January, 1972, was made manager of the international banking division in December of that year, and elected senior vice president in 1973. Promoted to senior vice presidents are: Eric H. Null and James P. Mor row, commercial banking division; Howard P. Bleckmann, director of the investment department, and Ronald K. Vetterick, manager-business develop ment. New vice presidents are: Denis R. Chevaleau, manager-international banking department; Paul D. Olson, correspondent banking division, and 11 states of Minneso Dene R. Boba and Harold J. Hogen, 1954, and vice president in 1969. ta, North Dakota, investment department. Continental Bank, Chicago: The South D a k o t a . Advanced to second vice presidents following promotions to vice president Montana, Colora are Gary F. Spahn, correspondent have been announced: Arthur J. do, N e b r a s k a , banking division, and James R. Rice, Theriault, bond department, and head Kansas, Missouri, investment division. of the public fund division; Richard A r k a n s a s and • Newly-elected assistant cashiers are A. Beutel and Richard W. Whitemen, L ouisiana. Mr. Gerald R. Hawk and Charlene Fel commercial banking, and John R. Busse’s division lows, international banking division. Stevenson, international banking. services both cor Newly-named as commercial bank Named second vice presidents are: respondent bank ing officers are John E. Dancewicz. L. W . BUSSE Lawrence P. Anderson, Stephen A. and corporate ac Eugene S. Erdahl, Peter J. Freeman, Barry, and Barry M. Johnson, bond Charles C. Hewitt, Gregory T. Maddepartment; Laurence G. Foy, Thomas counts. Vice President William L. Staples Jock, Allen W. Matter, John A. Nagy. M. Hughey, James E. Kofron, Larry Robert E. Rosenblum, Wilma J. Smel has been named manager of the midH. Stevens, and Louis N. Strike, com ler, Patricia A. Test and Linda Y. mercial banking; Arthur A. Schultz, western division, which includes the Walker. states of Illinois, Indiana, Iowa, Michi controller’s division; Robert L. Cham Daniel S. Snook was elected auditpion, Jr., operations, R. Lawrence gan, Ohio and Wisconsin. This division ng officer. Phillip F. Boehmke, Gil Johnson, real estate; Robert G. D. serves corporate accounts in the six bert L. Johnson and Stephen J. Krelle Bennett, Roger R. Farleigh, William states named. ¡vere elected bond officers. Mr. Busse is a 1960 graduate of A. Saer, Robert H. Weitzman, trust John L. Canfora and Patrick G. Purdue University, receiving a B.S. de department, and Walter J. Bloomental, D’Connell were named leasing officers gree, and also attended Northwestern Continental Illinois Leasing Corp., )f Continental Illinois Leasing Corp. University and DePaul University. He wholly-owned subsidiary of the Conti joined the bank in 1963 and was elect Commerce Bank of Kansas City, nental Illinois Corp., parent of the ed a vice president in 1973. Si.A.: Elmer Erisman, former vice bank. Mr. Staples received a B.A. degree Also announced were the appoint resident of the correspondent divifrom Brown University and an M.B.A. ;ion, recently retired from the bank af- ments of two new division managers degree from Wharton Graduate School :er 51 years of service. He first joined within the commercial banking depart he bank in 1924 at the age of 13. Mr. ment. Vice President Leonard W. of Business. He joined Continental irisman was elected assistant cashier Busse has been named manager of the Bank in 1965 and was elected a vice n 1950, assistant vice president in central division, which includes the president in 1973. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, Ja n u a ry 1976 12 First National Bank of Chicago: Richard L. Thomas, president of First Chicago Corp., holding company for the First National Rank of Chicago, has been named president of the bank. Neil McKay has been elected vice chairman of both the corporation and the bank. He previously was executive vice president and continues to serve as secretary of the corporation and cashier of the bank. R. L. THOMAS N. M cKAY The two men join John E. Drick, chairman of the executive committee, to form a group of inside directors who comprise the top management of both the corporation and bank. A. Robert Abboud, chairman of First Chicago and the bank, announced the assign ments. Mr. Thomas, 44, replaces Chauncey E. Schmidt, 44, who left the post of president of the bank recently to become board chairman and chief executive of BanCal Tri-State Corp., a holding company, and president and chief executive of ficer of its bank, , rwMlnr The Bank of Calic- '■ 5CHMI0T fornia. LOBBY DIRECTION REQUEST CATALOG ARMENTO BANK DESIGN 1011 MILITARY RD. BUFFALO, N.Y. 14217 Phone 716-875-2423 N o rth w e s te rn B an ker, Ja nuary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 Mr. Abboud also announced the election of Robert D. McEvers as se nior executive vice president of the b a n k , together with 14 other se nior management promotions. Elected execu tive vice p r e s i dents were: James S. Dailey, real es tate department; R. D, McEVERS William J. Mc Donough, International banking de partment; Charles H. Montgomery, comptroller; Rudolph E. Palluck, cor porate banking department; and Don ald J. Yellon, general counsel. Elected senior vice presidents were: Wallace R. Anker, international bank ing, Continental Europe; James A. Cassin, personal banking department; Marion C. English, general auditor; Ziad H. Idilby, international banking department, M i d d l e East/Africa; James Y. Robertson, regional offices and corporate banking group five; Gor don J. Sapstead, international banking department, Asia/Pacific; D. John Stavropoulos, international banking de partment, Latin America; Harrison F. Tempest, international banking depart ment, British Isles and Scandinavia; and Thomas R. Williams, corporate b a n k i n g department, metropolitan group. Mercantile Trust Company, N. A.l St. Louis, Mo.: Lynn H. Miller, execu tive vice presi dent, has been! elected to t h board of Mercanj tile M o r t g a g C o m p a n y , w h o l l y - ownec subsidiary of the bank. Mr, Milleil joined the bank ir August of 1974 ail L. H. MILLER an executive victl president and director. He former!} was senior vice president in charge ol the banking department of The North] ern Trust Company, Chicago. Also announced was the election oj Richard L. Johannesman as senior via president and head of the bond/investment depart ment of Mercan tile Trust Com pany, lead bank of M ercantile Baneorporation, Inc., St. Louis, Mo. Mr. Johan nesman most re R. JOHANNESM AN cently was in volved in underwritings, trading ant sales, assisting the late Thomas L. Rayl who formerly headed the department! Starting with the bank in 1955 as J credit analyst, Mr. Johannesman transj ferred to the bond department in 195' He was elected a vice president ii The Northern Trust Company, Chi 1967. cago: Douglas R. Fuller, vice chair man of the bank and of Nortrust Cor poration, has retired. Mr. Fuller joined the bank in 1946 and was elected National Boulevard Bank, Chicago! president in 1963 and vice chairman Charles B. Stauffacher, president, chiel in 1972. executive officej and chairman o] the e x e c u t i v i com m ittee ol Field Enterprises! Inc., was electee a director of thtl bank at the Dei cember b o a r t.| meeting, it we announced by Irv] C. B. STAUFFACHER ing Seaman, Jr. chief executive officer of the bank. Mr| Stauffacher joined Field Enterprises ir February, 1974, as president and chiel executive officer. He had previously been vice chairman of Continental Carl Company with which he had been as| sociated for 20 years. 13 An outstanding financial computer service division requires the perfect marriage of people and machine. Meet the better half. Left to right, Dick Casey, Connie Luttio, Tom Trench, Lenny Kiskis, Bill Stegora, Pat Lavin, Margaretha Schuyten, Jan Melton, Carol Larson, Frank Brosseau, Sharon Peterson, Ken Dagel, Pat Stewart Banking has always been a people business. It still is, even when there’s a computer in the picture. In fact, the ability to automate certain banking functions makes people more important than ever. Consider the basic question, should your bank automate certain services or not? It’s important to have the right people helping you make this decision. These people have to be knowledgeable, conscientious and, most of all, they ought to be bankers. And that’s exactly what our people are—knowl edgeable, conscientious bankers who w on’t even recommend automation unless it represents sound banking practice for your particular bank. Then, if you decide to automate, you’ll discover that our people have the sensitive skills to help your people convert and adjust to the new system. Beyond that, of course, we have the technical expertise to keep the system functioning smoothly. People and machine working together have the potential to help you improve your service capability in several areas: electronic funds transfer, one-statement banking, demand deposits, installment loans, real estate loans, payroll, sav ings and savings certificates, audit systems and microfilming. Maybe automation can help you now, maybe it can’t. But one thing for sure, we’ve got some good people who'll help you find out. If you’d like to explore the subject, call Pat Lavin or any of the other professionals in our Financial Computer Services Division, 612/370-4800. in First Minneapolis Financial Computer Services Division First National Bank of Minneapolis 120 South Sixth Street • Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w estern Banker, January 1976 14 Chicago Judge Rules Against Use of Off-Premise Electronic Fund Services FEDERAL court decision with great impact on the immediate future of electronic funds transmission was delivered in Chicago December 10 by Judge Hubert Will in the Federal District Court for the Northern District of Illinois. Judge Will ruled that under existing Illinois state law the only banking function that may be performed on electronic devices off-premise from the banks is withdrawal service. This ef fectively prohibits all other services which are a part of EFT terminals planned for hundreds of locations by two major Chicago banks. Continental Bank of Chicago an nounced on June 20 it would establish customer bank communication termi nals (CBCTs) in 62 Dominick food stores about July 1. These point-ofsale terminals were to be augmented by several unmanned teller machines to be located in the North Western Sta tion and the Two Illinois Building. Continental later in the year raised its proposed number of PCS units to well over 100 to include additional loca tions. First National Bank of Chicago similarly planned to enter the remote EFT field with extensive installations in stores. On behalf of the Illinois Commis sioner of Financial Institutions, the Illinois Attorney General immediately filed suit against Continental Bank, fol A lowing the June 20 announcement. On June 23 Continental said it would de lay its plans while awaiting outcome of the court hearing, which was held later that day. A subsequent court re view was set for July 8, followed by initial filing of briefs for both sides on September 10, after which Judge Will said he would have at least a prelimi nary ruling by December 10. On the latter date he informed the litigants that after considerable review of appli cable state and federal laws, he had no choice but to rule that the only func tion available to banks in Illinois for off-premise EFT units is withdrawal of funds. Other activities are specifical ly prohibited by wording of section 36f of the National Banking Act, which details services that may be provided at branch offices, Since Illinois pro hibits branch banking, those services detailed in the law are prohibited by off-premise electronic terminals, which have previously been declared to be branches. Judge Will took occasion at the De cember 10 session to state that he is in accord with the aims of banks try ing to provide broadened service, that he disagrees with the state branching laws, and that he considers the McFadden Act as having outgrown its use fulness. However, Judge Will said, he can rule only on the merits of a case in light of existing law. O n ta rg e t, o n tim e , o n th e m oney. That's what you get when you call on the Kirk Gross Company to handle your building or remodeling project. Our specialists handle everything from building plans, to construction and interior planning and design. Right down to your secretary's chair. But most important, w e'll be on target, on time and on the money. Call us. W e’d like to discuss your project. Kirk Gross Co. 110 EAST 7TH ST., WATERLOO, IOWA 50705 PHONE 319/234-6641 N orthw estern B an ker, Jan u ary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 BMA To Hold National Bank Security Conference Bank Administration Institute’s sev enth National Conference on Bank Security will be h e l d in New Orleans, January 25-27, BAI Bank Security Commiss i o n Chairman, Milton L. Snyder, announced recent lyMr. S n y d e r , who is vice pres M. L. SNYDER ident-audit a n d security. The First National Bank of Minneapolis, Minn., said that the con ference will focus on recent dramatic increases in crimes against banks. Outlining the overall conference program, the BAI official said the meeting will focus on the “how-to” as pects of bank security—developing an effective security program, evaluating alarm systems, reviewing strategies foi kidnap-extortion crimes, and under standing the legal aspects of bank se curity. The technical program, Mr. Snyder said, will consist of four concurrent af ternoon sessions on Monday, January 26, and four different concurrent ses sions on Tuesday morning, January 27, with each of the sessions being re peated to allow everyone an opportu nity to participate in every session. Banks Recycle Money To Aid Com m unities Banks are again leading all other fi nancial institutions in “recycling” de positors’ money back into their com munities. The latest statistics from the Federal Reserve Board comparing the owner ship of municipal bonds show that banks account for 50%, with $95.7 bil lion invested. Next comes fire and casualty insur ance companies with 16% at $30.4 bil lion, followed by life insurance compa nies with 2% at $3.4 billion, and mu tual savings banks with 0.4% at $0.9 billion committed. The remaining 31% of all municipal bonds are held by in dividuals, non-profit organizations, broker-dealers and municipalities. Statistics for 1975 show, for exam ple, that 18% of all municipal debt is sued through July has gone for educa tionally related issues. Of this total, 50% ($1.62 billion) has been pur chased by banks. 15 G ïêetings from the ^Baijkers of(£\m ericaii Bob Sipple Don Johnson Bill Langford / * JL Juring th is special tim e of y e ar, we ex ten d to all of our cu sto m ers o ur b e st w ishes for th e new y ear. Art Nelson Bob Jacobson ^ B o b Knopke Charles White Rosalie Galles John MacLeod The Bankers yof A m erican American National Bank and Trust Company 5th and Minnesota • St. Paul, Minn. 55101 (612) 298-6000 Member F.D.I.C. ■ rr n T in i A ffilia te d W ith A m e ric a n B a n co rp o ra tio n , Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern B an ker, Jan u ary 1976 16 INDIVIDUAL HANKS COMMITTED TO MUTUAL GROWTH The Continental Correspondent Community Portfolio Advisory Service • Expert Analysis • Timely Evaluations • Profitable Recommendations • Continuous Follow-Up Where correspondents share a banker’s approach to investment opportunities. CONTINENTAL BANK C O N T IN EN T A L ILLIN O IS N A T IO N A L B AN K A N D TR U S T C O M PAN Y O F CHICAGO 23 1 S O U T H L A S A L L E S T R E E T , C H I C A G O , I L L I N O I S 6 0 6 9 3 N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 17 Changes and Opportunities in 1976 A NORTHWESTERN BANKER Survey /"''H IE F executive officers of more than a dozen leading banks in midwest and mountain states agree that set ting priorities should be at the top of the list for bankers as they chart their objectives for 1976. In discussing the topic, “Changes and Opportunities in 1976,” for a special report by the N o r t h w e s t e r n B a n k e r to its readers, these executives consistently mentioned several key subjects that presently command the attention of managing officers of all banks, large and small: A return to sound fundamentals of the banking busi ness. Special emphasis on quality of loans and building or re taining loss reserves. How to comply with the mass of growing and often con flicting governmental laws and regulatory opinions. The future of EFTS and how to proceed at this time. Other structural changes evolving in the banking indus try. In reviewing the course of events during recent years, several of the respondents cite the pressures for growth and leverage of the 1960s and early 1970s that resulted in increased loan volume, and the ensuing major loan losses suffered in some quarters. A search for earnings to replace this business from sources of a sounder nature is part of the challenge ahead for banks, they report. Throughout their responses, these executives concur that problems and challenges result in opportunities and the bank managers who remain enlightened and active in facing the problems will benefit most from the opportuni ties ahead. Their comments follow: CROSBY KEMPER I" THINK the principal challenge in 1976, not only for -*■ bankers but for the country as a whole, is to get back to solidly-based ways of doing business and to good sound values. During the 60s and early part of the 70s the em phasis was for growth and performance no matter what the eventual consequences and many bankers, due to competition and the unsound thinking of many of their compatriots, caved in and did things they knew were wrong just because the banker “down the street” was do ing them. My father, Crosby Kemper, Sr., always coun seled that “it didn’t do any good to say all the other banks were doing it if your bank was as broke as theirs.” I believe we must: 1. Go through a period of less emphasis on expansion and more emphasis on consolidation of the growth that has been achieved. 2. Spend more time analyzing our credits and getting to know our customers and seeing their operations. 3. Spend a great deal more time analyzing our bond N orthw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B anker, January 1976 portfolio and analyzing the credits therein just as though we were making a loan. 4. Look to see if the cash flow of the municipal can sat isfy commitments in the future and what the tax load could carry in the future without breaking the back of the cred it. 5. Fine tune our banks because earnings for many banks will be harder to come by and it will behoove us to get rid of the dead wood in our organization. 6. Keep the good people and encourage them to per form better. In essence, what I am saying is that we must do a bet ter job than we have been doing. I am not encouraging us to retreat but to advance with a sure foot forward which will enable us to achieve the ultimate success that we all are desirous of attaining. tential, they will lead to more changes in bank services and the manner of their delivery during the remainder of the decade than has been experienced during the past half cen tury. The growth of banking in the first half of the 1970s, and its proven capacity to withstand severe economic strain during this period, testify to its fundamental strength. Challenges and change are constants which have been with us throughout the history of the nation, and, as in the past, those which lie ahead for banking will be met with vigor, dedication and overall success. B. C. GRANGAARD Chairman Central National Bank and Trust Company Des Moines, la. GEORGE H. DIXON Chairman and President First National Bank of Minneapolis ahead to the Bicentennial year, the econo L OOKING my appears more settled and significantly more prom ising than 1975. Consumers are expected to lead the way out of the recession by their increased spending for goods and services. There are positive indications that the infla tion may be moderating. An inflow of thrift funds is ex pected to stimulate housing, inventories are starting to build again, and fiscal stimulation and monetary policy will tend to bolster the economy. In this moderate but steady growth economic environment, banking’s challenges will differ from those of any recent period. Bank profits in 1976 will be tied closely to the econom ic recovery. The keys to profitability will be the banks' ability (1) to achieve earning asset volume growth while maintaining satisfactory spreads, (2) to achieve signifi cant gains in non-interest income, and (3) to keep costs, including the provision for loan losses, under control through increased efficiency and productivity gains. Asset and liability management will receive priority attention throughout the year as banks strive to improve interest sensitivity mixes, and retain some of the liquidity gains of the past 18 months. Banks are at the center of the economic life of the mar kets they serve, and they have a unique responsibility to help make their communities better places to live and do business. That responsibility includes a conscientious ef fort to comply with a growing body of legislative and reg ulatory banking requirements, most of which are related to consumerism. As worthy as these regulations are in in tent and purpose, when coupled with antiquated statutes already on the books, they create difficult and often costly problems of compliance. Equally significant for our industry and the public are banking’s new electronic capabilities. Tested and approved but still employed to only a fraction of their ultimate po Northwestern Banker, Ja n u a ry 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I I WOULD appear that if the regulatory authorities of "*■ banks, the S.E.C., and the accounting profession can reach agreement on their ideas as to what they consider to be proper bank and bank holding company accounting, there can be considerable change in the methods of mak ing reports. In view of the fact that many of these reports are published, some banks might give more attention to the public image they present in their published state ments and reports and possibly less attention to the earn ing power and quality of their operations. Other legislation in Congress and studies by several commissions would indicate that during the course of the next few years, and possibly to some degree in 1976, sub stantial changes will be made in the laws and regulations to which we have been accustomed. The proposed phase out; of Regulation “Q” would have a tendency to not only change the relationship of savings and loan associations to banks, but to penalize small and regional banks in their relationships with the money center banks. If Fed funds were to go again to 10 or 11 %, I am sure the metropolitan banks would be willing to pay 9% on savings deposits and this would have a tendency to take deposits away from the smaller banks which couldn’t afford to pay that kind of a rate. If the law was changed to permit the payment of in terest on demand deposits, I suspect that commercial banks would be saddled with a tremendous cost which they could overcome, not only with increased interest rates on loans they make, but also by increased service charges on checking accounts. However, a corporation which car ries a large compensatory balance relative to its line of credit probably never has enough activity with depository bank to let an increase of analysis charges be of any conse quence. It would appear that the banks in the rural areas in Iowa who lend mostly to farmers would have to in crease their rates if the cost of money substantially in creased and the size of the increase required to offset in creased money costs might bring their loan interest rate above the present usury ceiling. The introduction of cor porate savings accounts up to $150,000 poses another in teresting problem and especially in regard to those compa nies who may prefer to deposit their compensating bal 19 ances in a savings account and pay a higher rate of interest on their borrowings. In the operational area the introduction of the auto mated clearing house will probably result in many payrolls being paid by credit to the bank account of the employee, but it is doubtful in my opinion that many people will per mit their accounts to be charged automatically by the stores and utilities and others from whom they normally have regular monthly bills. The introduction of CBCTs will involve an interesting study in human behavior. I have no doubt that in 10 years a substantial amount of business that presently comes to the banks directly will be trans acted through machines in the various stores and other places where these outlets will exist. I think, however, that the immediate activity will be rather slight. Most commu nities in Iowa are not large and none is large by metropoli tan standards. Consequently, the inconvenience of going directly to the bank or bank office is not nearly as great for the customer as it might be in Chicago or New York. I would suspect that the opportunities for the banking profession in Iowa as a whole depend on the increase in population and money in the state and on further indus trialization which would bring into the state new wealth and new opportunities for our labor force. If the popula tion remains stagnant, the size of the pie will be about the same and the only opportunities will exist for those who want to increase their share of the pie by reducing some one else’s share. Electronic Funds Transfer Systems are one of the great est opportunities for banks in 1976 and thereafter. What we have accomplished so far in Electronic Funds Transfer is merely the tip of the iceberg. Through the EFTS, banks can provide not only greater service to customers, but hopefully, greater efficiencies and correspondingly less costs in their debit and credit handling procedures. With this opportunity for service, however, comes the challenge inherent in any major new banking innovation. It must be handled properly, both in terms of cost to customers and the banking industry. In 1976, banks that are willing to be responsive to the public needs, while providing quality service to their cus tomers, should enjoy a good year. Hopefully all of us in the banking industry have learned a great deal from the results of the past several months. Such experiences can be utilized in forming the foundation to continue to pro vide service while never losing sight of our responsibility to protect depositors’ and shareholders’ dollars. PAUL J. AMEN Chairman National Bank of Commerce Lincoln. Nebr. inventory of banking opportunities for our Bi A NYcentennial year must take into consideration certain uncertainties on the economic horizon, 1976 W ITH will be challenging year. The last 18 months have witnessed some of the most severe challenges to the strength and stability of our national banking system of any period since the great depression. Loan losses caused by overly ambitious commitments to the real estate indus try as well as to other troubled segments of the business community have forced banks to develop new lending policies, provide greater loan loss reserves, and in some cases decrease or even waive dividends. When one considers that today a banker who is less than 55 years of age joined our profession since the end of the great depression, it is a reminder that most of us had only experienced the “good times” in banking until several months ago. As a result of the lessons we have all now learned, 1976 and beyond will probably see bankers more conservative, more analytical, and more responsive to ex ternal economic factors than they have been in the past. This is not to say that bankers should or will stop making loans, but rather that there will be closer scrutiny in pro tecting depositors’ dollars than has been the case over the past few years. basic facts: 1. It is an election year. 2. EFTS is costly, but vital to our industry. 3. Sweeping and broad legislative and regulatory changes are inevitable, i.e., interest payments on demand deposits. 4. Credit demands in the agri-business sector of our economy will remain heavy. 5. Competition for deposit dollars will become increas ingly stiff. Responding to these truths, we can as bankers: 1. Become involved in the electoral process and help put those individuals in governmental positions who under stand our free enterprise system — HR 5900 the con struction site picketing bill is a major example of legisla tion not in the best interest of economic development. 2. Become knowledgeable about EFTS and help pre pare through education, our banks and customers for this new service and its cost implications. 3. Develop long range tax models in order to take ad vantage of legislative and regulatory changes. 4. Develop new lending procedures and services to meet agri-business credit demands, i.e., forward selling and hedging of agriculture products. 5. With reduced growth in deposit dollars resulting in less interest and investment income differential, we must increase our income and reduce our expenses by —A. Variable interest rates on both sides of the ledger sheet. B. Equity kickers in project developments. C. Automatic deduction from checking accounts for stock purchases. D. Single payment checks. N orthw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker, Jan u ary 1976 20 E. Greater reliance on automation, etc. As bankers, we need more than ever to be creative and imaginative in order to serve our customers and even to survive. We must recognize that rapid changes and the op portunities they present are the order of the day. All of this brings to mind and makes pertinent the last verse of Rob ert Frost’s famous poem, “The Road Not Taken” — I shall be telling this with a sign Somewhere ages and ages hence: Two roads diverge in a wood, and I — I took the one less traveled by, and that has made all the difference. IRVING SEAMAN, JR. Chairman, Executive Committee and Chief Executive Officer National Boulevard Bank Chicago, III. looking back at the year 1975 we see without equiv I Nocation that it was a most difficult year for the bank ing industry, a year in which many bankers changed their basic philosophy and objectives. The heavy loan losses re sulting from unemployment and the recession, as well as the collapse of many REITs and other real estate projects, had a tremendous effect upon bank earnings. Most bank ers took the prudent course of facing up to these losses, either actual or probable, and charged substantial amounts against earnings to build or rebuild loan loss reserves. This was in part made possible by a favorable interest margin which prevailed for the first three-quarters of the year and which gave a substantial impetus to bank earnings. On top of the problem loans, many banks found themselves with municipal bond portfolios which became depressed in price because of the problems and uncertainties surround ing the financial condition of New York City. As we enter 1976, it appears that the worst of the loan losses has been reached, or at least the banking industry has provided for losses which could still occur. The im proving economy should allow a return to more normal lending conditions, although it seems quite obvious that bank credit policies will be stricter and more rigid than they were before the recession began. Furthermore, federal legislation should provide at least temporary relief to New York City and take some pressure off the municipal bond markets, thus assuring a more stable outlook for bonds in general. As various economic indicators point toward a further recovery, a lower rate of inflation and an improve ment in the unemployment situation, interest rates appear to be settling at the present level, and certainly the early part of the new year should find a relatively stable interest rate pattern. With some of the pressures that existed in 1975 being lessened, bank management in 1976 should be in a better position to finish reappraising credit policies and general objectives. Tn regard to credit policy, each bank should definitely prepare a guideline of types of loans it feels it should and should not make and set limits on how much of each type of loan should be placed in the portfolio. Lending authorities of various loan officers should be reN orthw estern B an ker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 evaluated, as well as the entire method by which loans are approved. In regard to objectives, each bank should determine whether liquidity, safety of assets and loan to deposit ra tios are more important than profit or growth. Many bank ers came to the realization in 1975 that growth was the least important objective and that the ability to make a good profit and have a sound financial condition were the real objectives. The trend toward emphasis on price earn ings ratios at the expense of bank liquidity, which was so evident in the first half of the 1970s, has definitely been reversed. Another challenge which will be presented in 1976 is that of further evaluation of electronic funds transfer sys tems. In the second half of 1975 there were a great many announcements by various banks of the installation of re mote teller machines and arrangements made with super markets for various point of sale terminals. From a legal standpoint, there is much yet to be determined by the courts as to whether these installations constitute branch banking, as well as other legal ramifications. Regardless of these decisions, however, electronic fund transfers are a reality, and many forward steps will be taken in 1976. At the same time, bankers will be wise to look and listen before leaping so that the problems, losses and confusion that accompanied the introduction of credit cards several years ago can be avoided. There is plenty of time for the proper systems to be implemented, and the wise banker will be the one who takes his time, asks questions and learns as much as he can before committing his bank to any particular system. PHILIP M. LEWIN President The Drovers National Bank Chicago, III. T WOULD like to take a somewhat negative or “non-*■ creative” stance with regard to “Changes and Oppor tunities in 1976.” Here in Illinois, we have not only been besieged by the continued ponderous Federal legislation of the past year (which shows no signs of abatement) but also competition from some of the largest financial institu tions who are attempting to get around branch banking ob stacles through the use of various electronic installations. While I do not consider the plastic charge card and its electronic offspring as just a passing fancy, I do feel that current profitability compared to the three to five year or longer profit outlook should take precedent for bank man agement. It is difficult during these times to clear out problem credits with dispatch. There are very few things in a prac tical sense that we can do to protect a bank from the at tacks on its profitability and liquidity resulting from prob lem loan situations; but, on the other hand, the burden of administrative expenses (eg. new product promotion and the resulting overhead increase) can be minimized during the next year by prudent bank management. 21 JOHN FITZGIBBON Chairman and Chief Executive Officer lowa-Des Moines National Bank Des Moines, la. H P HE YEAR 1976 will be a challenge to bankers, filled -*• with continued changes and opportunities. Our industry will witness and participate in some of the following developments: 1. Electronic banking will continue to grow and devel op. We should not look at it with fear, but instead as a partial solution to our growing problem of “moving paper” through our system. Iowa can be proud of its 100% banker participation in the Automated Clearing House established this year. Continued development of the Electronic Funds Transfer System will assist in the eventual lowering of our rapidly increasing processing and employee costs. 2. Payment of interest on commercial savings accounts (and possibly demand accounts) will result in a greater re tention of funds by banks, but it will also result in increased costs. 3. The economy will continue in its recovery. But, the recovery will be gradual. 4. The year 1975 was one of generally lower loan de mand. Consumers and businesses built their liquidity by lowering debt, and increasing savings and reserves. While savings will remain strong, the growing economy will result in more consumer purchases, increased investments in in ventory, receivables and fixed assets by business. The need for more credit will result. 5. The increase in the minimum wage will further in crease costs. As 1 previously mentioned, 1976 will be a year of chal lenge. Almost every change and opportunity will result in higher costs or investments by banks. Whether we like it or not, electronic banking is here to stay. As we pass through this transition phase, we will incur costs for additional planning, experimentation, hardware and software systems, training, implementation and yes, even some mistakes. This will be an expensive era, and it will continue well beyond 1976. Our challenge will be to pursue this transition as rapidly as possible without de stroying our earnings. Many bankers have long wanted to be more competitive ¡with savings and loan associations (and vice versa). The time is rapidly arriving. This year, permission to pay inter est on commercial savings accounts was instituted and similar action on certain consumer checking accounts will probably be seen in the near future. Our challenge will be to find ways in which to offset these costs and still produce a reasonable contribution to earnings. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis During 1974 and 1975, increased leverage by banks to produce more earnings developed some problems. Many also had moved into new fields (in the form of loans and/or the related subsidiaries). With a general national economic recovery, banks will again have opportunities to seek out areas of higher earnings. The easy course to follow would be to remain liquid and conservative, but elevated over head costs will dictate a certain amount of prudent expan sion in order to obtain greater income. The challenge will be to remember the lessons learned during these last twen ty-four months. The year 1976 will also see the continued expansion and intervention by governmental and regulatory bodies into banking and business. Complying reasonably without increasing costs unnecessarily presents a major challenge. In 1976 prudent management by banks of its sources of funds and use of funds will enable both the area the bank serves and the bank to prosper in an orderly manner. CARL R. POHLAD President Marquette National Bank Minneapolis, Minn. T F WE AS bankers would list all the external and internal forces now bearing on our industry and on our bank, it would seem overwhelming. It could, and often does, produce a reactive banker, a confused manager, marching in place, waiting for a clear glimpse of his to morrow. Another attitude, and the one which I heartily en dorse, is the imaginative banker, inventing the future. Solving today’s problems, though productive, does not always position a banker to take advantage of opportuni ties and grow that spirited team that will effect change. Let me just highlight one opportunity and present one chal lenge. EFTS, is an acronym used by all, and understood by few, yet embodied in those four letters exists the possibility to more conveniently serve customers, increase market share, enjoy fee income, reduce transaction costs, improve application processing, in short, position your bank to be able to compete in a rapidly evolving industry. If you don’t know your market, have a strategy, understand the tech nology, can’t glimpse the future, your course may be excit ing, but will it produce growth in people and profits? Finally, the challenge — people. They’re what makes our industry tick, but don’t be lulled into complacency be cause you have achieved zero people growth or a steady ratio of employees per million of deposits. If you are like the majority of banks, earnings spreads are hard to main tain, money costs are high, loan demand soft, but operat ing costs continue to climb; and key to those costs are peo ple — productive people. In an industry still as labor in tensive as ours we must establish and enforce standards of performance. Reward high performance, cost effectiveN orthw estern Banker, January 1976 22 ness and innovation. It is evident to me that the bottom line will clearly reflect change in both performance and quality of staff. Though opportunities are perhaps seen only dimly — grasp them, fashion your banks future, set a pace — to be tried by the competent, imaginative, customer serving, profit motivated employee. The happy fact is — banking is changing. EDWIN A. LANGLEY Chairman and President Capital City Bank Des Moines, la. ANKING is at a critical stage of development. B Dramatic changes are about to occur with resulting opportunities for the industry and its customers. To capi talize on any opportunity, it is necessary for bankers to be come sensitive to bank performance and how that per formance will withstand the impact of change. Changes in the banking industry in the first half of the ’70s will be intensified in the last half. We are facing changes in economy, technology, regulations, marketing, and indeed the banking structure itself. Most economists believe 1976 will be a year of re covery, but economists have had “foot-in-mouth” disease more than once during the last two years. There does exist the specter of inflation which could halt the recovery trend and lead to another recessionary period. Fiscal and mone tary policies are the key. Policies creating a sharp rise in interest rates will slow expansion and fuel inflation. If the economic recovery is allowed to move ahead at a moderate pace, profits should rise. The hottest issue of change is the so-called customerbank communication terminal. Decisions by regulatory au thorities, legislative bodies and courts of law relating to electronic funds transfer may well precipitate the most sig nificant developments in the financial industry in the twentieth century. Such decisions could have considerable impact upon the structure of the banking industry; the functions performed by the industry; banking law and how the courts have interpreted the McFadden Act; and the possible repeal of geographical constraints upon a bank’s balance sheet structure by giving the bank new market po tential. Regulation is persistent and expanding to agencies oth er than just bank regulatory agencies. Continual attempts will be made to centralize regulation of banks. Discussions involving Federal regulations and banking structure also involve discussions of capital adequacy. Certainly capital is necessary for growth. Internal genera tion of capital is slow, external capital is costly and regula tion stymies alternatives. There have been suggested solu tions and we will see changes in concepts of capital re quirements. Finally, there are the changes in the market place — in competition. Competition from non-bank financial institu tions has never been greater. Bank customers today are looking for more technical assistance and more sophis ticated services. There are studies and reports with initial N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 steps being taken toward equalizing services offered by commercial banks, savings banks, savings and loan assoc iations arid credit unions. To meet competition in the mar ket place bankers must not only examine their ability to attract customers requiring new types of financial assist ance and new services, but also make such internal changes in organization and personnel to meet the new expertise required. Circumstances of change create areas of opportunity. There will be opportunities to provide customers with new services and products. There are opportunities for bankers to be heard in the legislative arena and take part in the de velopment and control of a changing industry. The most challenging opportunity is associated with the factor of changing technology and customer needs for a new exper tise. 1 believe the operations and structure of the industry will have a new dynamism in the next few years and we have the opportunity and the responsibility to plan for technological change and how that change interrelates with other external forces. Profit opportunities can assist capital adequacy problems, but for a bank to retain, much less ex pand, its share of the future financial markets, and make the profit, management must take advantage of the oppor tunity for future planning. Without present and strategic planning, the aggressive competitor will gain a greater portion of the financial mar ket dollar. Such planning should consider customer needs and concentrate on the more profitable business. When the banker has appropriately planned for profit opportunities, the industry can expand and remain viable, and the impact from non-bank competition will be lessened. One caveat is regulation. If regulation allows the industry to respond to change and does not restrict competition for funds, con trolled change will occur and opportunities will continue both for the industry and the market it serves. THEODORE D, BROWN President The First National Bank Denver, Colo. PREDICTABLE, or foreseeable, changes in bank T HE ing structure and practices for 1976 appear to be sixty percent in the hands of various legislative bodies and forty percent in the area of financial regulators and economic advisors. Economic advisors are relegated to the low end of the scale not because of rejection of their theories, but because of the overriding impact of political and regula tory voice in this era. Financial regulators, as we have known them, tradition ally have strived to make their voices and opinions heard, but now compete with a group of legislative — public spokesmen whose statements are different and sometimes conflicting with the traditional position of the regulator. Banking, historically, has been pretty comfortable with legislators and regulators who felt a responsibility to keep the game honest, but also relied heavily upon the integrity of the banker-plavers. In recent years some of the banker-players have been proved to possess less than the traditional dedicated integ- 23 rity of the career banker. Hence, an understandable clam or from the public and response from the regulators for increased disclosure leading to increased regulation. In addition some of the other standards of performance have changed. No longer can one be the banker of the year by lending X thousands of dollars and collecting that amount plus the going rate of interest. Banking is and will be a much more complicated activity. All kinds of man agement requirements are now imposed upon the histori cally pure credit functions of a successful banker. How do bankers treat their female and ethnic-minority borrowers and employees and how do they perform in their communities as responsible corporate citizens? These are currently important questions which relate to standards of performance applied to 1976 bankers. In summary and as a generalization the changes and op portunities in banking — 1976 style — are not confined to technological and structural changes but are highlighted by those changes in perception and management style dic tated by the changing social and legislative pressures in herent in our 1976 society. WILLIAM F. MURRAY Chairman Harris Trust & Savings Bank Chicago, Ilf. of between 5% and 7 Vi % was chosen as an appropriate target for the upcoming year, but indications were given that the range would be lowered once the economy reached higher rates of capacity utilization. By pursuing such policies, the Federal Reserve Board would help to bring about a more moderate and stable inflation rate. For the past two years increases in the money supply have av eraged approximately 5Vi% per year. The impact of this moderation is likely to be felt in 1976 with the rate of in flation moving to the 5%-6% range. The combination of slower inflation rates and a gradual reduction in the rate of monetary growth should help to calm financial markets during 1976. Although rising loan demand is expected to result in higher short-term interest rates, these rates are likely to move up gradually during 1976. The U.S. economy is on the road to recovery. Inflation already has moderated and will continue to do so if eco nomic policies are set with a longer-term perspective and avoid the spurts of short-term stimulus which charac terized the past five years. Events of the last year provide reason to believe that policymakers will follow a course of action that will lead to a more stable business environ ment. However, a watchful stance is needed in 1976 to guard against impatience with the speed of recovery and a subsequent return to policies geared toward immediate stimulus. Such a reaction would sow the seeds of long term difficulties and lead to a return to a volatile business environment. JOHN A. MC HUGH T> USINESS has had to weather an extraordinary num^ ber of difficulties over the past five years. Volatile economic conditions, high inflation, and growing skepti cism regarding the future have been among the key prob lems facing the business community. An ongoing challenge for business in general, and for financial institutions in par ticular in 1976 will be to maintain a flexibility that permits adjustments to a changing economic environment. Unlike the beginning of 1975, which was characterized by sharp declines in output and widespread layoffs, 1976 is likely to be a year of continued economic recovery. Pro duction, employment and sales, which began to show signs of recovery in the summer of 1975, should continue to im prove over the coming year. Historically, loan demand at banks tends to rise six to nine months after a recovery in the economy has begun. Currently, there are some signs that loan demand throughout the country has begun to firm and a moderate increase is expected during 1976. Inflationary pressures have moderated over the past year, with prices increasing at a 6% rate during 1975 com pared with a 12% rate the previous year. The extreme volatility in inflation in recent years is largely attributable to stimulative monetary and fiscal policies and the disrup tive impact of wage and price controls. These stimulative policies can boost business activity in the short run, but eventually they lead to higher rates of inflation. Attempts to slow the resulting inflation inevitably lead to weaker business conditions. During the past year, the Federal Reserve Board has in dicated a desire to pursue policies which will lead to a slower, more stable increase in the nation’s money supply than has been the case in recent years. Monetary growth https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis President Northwestern National Bank Minneapolis, Minn. TTjuT HEN we look back upon 1976 from the vantage * * point of 1980, I suspect we shall view the former as a year when the banking industry took a deep breath. Banking is presently putting itself in order to accommo date the fallout of the credit crunches of the ’60’s, followed by a series of quick and serious reversals for the economy in the '7()’s. This has left banks reassessing their role, re sponsibility and ability to help restore prosperity on a sound basis. Narrowing spreads, the impact of inflation and finally, loan losses have combined to question the fu ture level of bank profitability without close attention to present operating methods in all areas. This suggests that 1976 will find banks looking inward for profit improvement as the necessary first step to assur ing that they will have the liquidity and profitability to ac commodate and assist a full economic recovery. The im proved profitability (and capital structure) which banks will be striving for will not be confined to the banks’ de sire to be able to generate more deposits and loans (which are closely connected in highly inflationary times), but to allow our industry to pay for and take advantage of the new technologies being made available to improve the quality and variety of services. These new technologies (largely electronic) will be costly to introduce, and in some instances will represent a parallel (duplicate) system N orthwestern Banker, Ja n u a ry 1976 24 “ In 1976, we should strengthen our efforts to bring about change in banking regulation, both on the state and federal levels.” initially. Without adequate and reasonably predictable levels of profitability, bankers will be reluctant to make large commitments to the future. Hence the need in ‘76 to be certain that our present methods, operations and credit administration procedures are the most efficient. If 1976 provides that result, then we shall be looking back on it as a year when banking took a necessary “deep breath”, paused briefly to assess the future, and then moved on to expand its capabilities. In the Upper Mid west, I hope that expansion will include: * A conscious effort on the part of bankers to create jobs. (Currently, America is underinvesting in terms of creating job opportunities). * A direction of loans towards long-term productivity as a contribution towards the reduction of inflation. * A concerted effort to encourage & provide the means to export the goods and services of this area. (The availability of food production, energy sources and a highly motivated, quality-oriented work force rep resents a tremendous competitive edge when compet ing nationally and internationally. These advantages can be aggressively pursued for export with creative banking services). » A rededication to the needs of our respective commu nities with which our well being is still so closely identified and dependent. By utilizing 1976 to assure a profitable, sound banking system we shall be in the best possible position to respond as our respective markets and communities identify their opportunities. That is probably why 1976 will prove to have been so important to us all, and why I have such high expectations for it. JOHN H. PERKINS President Continental Bank Chicago, III. great and immediate need is a thorough B ANKING’S modernization of the industry, and 1976 offers us numerous opportunities to meet that need. Major banks have been moving toward modernization for some time, and many have made great forward strides internally through adoption of more sophisticated, precise management procedures and planning. N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 7 6 Many have begun implementation of new technology, most notably electronic funds transfer system (EFTS), in an attempt to reduce dependence upon labor-intensive, paper-based payments mechanisms and improve the effi ciency with which information can be transmitted. But new management techniques and technological change are not enough to meet the challenges of today’s consumer environment. The banking structure itself must be modernized. The highly-regulated U. S. commercial banking system has not always been permitted to fully respond to the needs of the public, and has not always been able to utilize fully the efficiencies and customer-service benefits avail able through technological developments. The impetus for change has recently been accelerating rapidly. In practically all states, for instance, moderniza tion of the banking structure no longer is retarded by laws prohibiting any form of full-service branching. Updating of banking laws in other less-progressive states, while by no means assured, is more of a possibility than it was three or even two years ago. Passage by the Senate last month of the Financial Insti tutions Act is another step toward modernization, although there is some feeling that the bill does not deal with some of commercial banking’s most immediate concerns, such as an industry-wide posture on branching or EFTS utiliza tion. Still more impetus for modernization conies from ad vances in banking technology, particularly in the area of EFTS. Banks have been pioneers in developing sophisti cated and reliable systems to facilitate the movement of funds among banks and other financial institutions. If there could be an increase in consumer awareness of its po tential and if there could be changes in regulatory and leg islative climates, EFTS could become a dominant element in personal banking. But we must be prepared and allowed to take advantage of its superior technology. Prudence and the desire to minimize risk have, appro priately, kept banking from a too-rapid shedding of the “old” for the “new.” But excessive regulation has been an unnecessary deterrent to modernization, and has been counter-productive to industry efforts to bring banking up to date. In 1976, we should strengthen our efforts to bring about change in banking regulation, both on the state and federal levels, to insure for commercial banks the opportunity to modernize. Such efforts also would serve the dual purpose of put ting commercial banks in a competitive position alongside other financial institutions. We must continue to challenge outmoded legislation, and to work for passage of more progressive legislation where it is needed to bring banking out of the past and into the present. 25 How Community Banks Can Improve Their Earnings in 1976 A NORTHWESTERN BANKER Survey f ~ \ NE OF THE major challenges to bank managers in ^ 1976 will be in the area of achieving, or at least re taining, an adequate level of earnings. In this special N o r t h w e s t e r n B a n k e r report, officers who head their bank’s correspondent bank business offer some thoughts on how community banks might achieve a level of earnings consistent with the individual bank’s goals. Careful han dling of loan and investment portfolios is specifically dis cussed by several respondents, with emphasis on the criti cal need for setting realistic prices charged for the multi tude of bank services performed for customers. Comments from a number of correspondent bank executives follow: WM. J. DAVIS Vice President American National Bank & Trust Company Chicago, III. H P HE NEW YEAR is always a time for reflection and of setting new goals whether it be in our personal lives or in our businesses. Every discussion on improving earn ings involves cost control, generating higher gross income, increased deposits and asset quality. Budgeting is a handy tool in analyzing where we are going and the self inspec tion it provides may be as important as the numbers gen erated. Bank size should not be a factor when it comes to budgeting or not budgeting. Our computer model and spread sheets make it easy to consult with any community bank, whether it be in the city or country. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Let us now turn to the last couple of years to see what can be learned from the past. Loan quality is always stressed, but when one has several years of prosperity one tends to forget that customers may overexpand, sales may drop, interest rates become burdensome, or any number of other factors can put a loan in jeopardy. Now is the time to upgrade loan quality. High interest rates tempted many banks to abandon their loan portfolios for the lucrative Fed Funds rates. This is fine while rates are high, but were customers well served in the process? Had more loans been made then, although at lower rates, would there be the scramble to put loans on now? On the other extreme, many banks were too aggressive in lending, even to high quality borrowers, and found them selves in a liquidity squeeze. Looking back, this too caused some earnings sacrifice. Each community is unique in its customers’ needs and one can only suggest that a look for ward and backward be made before committing all re sources in one direction or another. The New York crisis emphasizes so strongly the need for quality and liquidity in our investment portfolios. Lo cal issues are difficult enough to assess — let alone those several hundred miles away — stick to known local issues of high quality, work with your local officials to insure sound financing. Top quality state names should fill up your tax-free segment of the portfolio. Look for buying opportunities in the government issues and stagger maturi ties. Take a look at your employees — are you overstaffed —- are they efficient — are they courteous and helpful to the customers — is their integrity beyond question? Look at competition. Are you outperforming them? Don’t forget the thrift institutions when competing for deposits and loans. I would be remiss if I didn’t suggest using your corre spondent bank as a consultant in every aspect of your business. If you have a problem bring it to us — we probN orthw estern Banker, January 1976 26 ably faced it ourselves at one time. If you have an idea, try it out on us. We are here to help you increase your earn ings — and as you grow so will we. s m V V fc * i i GARY W. STEVENSON Vice President jf First National Bank . Sioux City, ia. | OANS, of course, are the major producer of revenue at most banks. We are experiencing softer rates at the present time because of current economic conditions, but we must remember the cost of funds change over the past two years. The highs during that period had not been seen before. Those highs are likely to return at some point in the future. Rates should be set that will be satisfactory from an earnings standpoint and this is especially so on intermediate and long term credits. It may be time to con sider floating rates for term credits as protection against future fund cost and operating expense increases. An analysis of your investment portfolio to insure prop er mixture of Municipal and Government Bonds can mini mize tax liability and help maximize your earnings for 1976. After reviewing the portfolio, current investment rates and economic conditions should be watched so pur chases can be made at the most advantageous times. Many of you will remember the high Fed Fund rates of 1975. Obviously, the current Fed Fund rate is affecting the earn ings picture and makes analysis of the investment area more important than ever. Setting realistic prices and charges for services per formed should be a continuing process especially when in flation and increased operating costs are considered. Banks are now charging fees for the so-called “free services” of yesteryear. Some areas that should be reviewed are service charges and fee schedules. Also, a review of operations may eliminate duplications, insure proper staffing and re duce supply cost. Controllable expenses are an important part of your banks earnings picture. FRED N. COULSON, JR. Senior Vice President Commerce Bank of Kansas City, Mo. ANKING institutions must incorporate many of the B general principles of other businesses if they are to expect an improvement in their earnings for the coming years. Most important is planning and establishing realis tic goals. Planning to achieve outstanding performance should not depend on sudden spurts or get-rich-quick trends for results, but on consistent principles of good management and continuing self-examination. N orthw estern B an ker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 Your staff should be thoroughly examined. Are you overstaffed? Are all employees working at top level? Are all officers and employees capable of top performance? If the answers to any of these questions are no, changes should be made immediately. Reduce and control expenses. Become more conscious of interest spread on loans. Determine your incremental cost of funds and build rates to your customers according ly. Price your loans to recognize the impact of inflation. Obviously, you must be aware of competition, but discon tinue the practice of doing things your competition does just for the sake of being competitive, ultimately reducing income. Utilize excess capital to generate new business in order to take full advantage of the bank’s ability to earn a rea sonable return on assets employed. Analyze your bond and investment portfolio, anticipate profits to determine the tax consequences and invest accordingly. Evaluate the market and direct your advertising to pro duce the greatest return. There are many questions that remain unanswered with regard to grain prices and production. If an increase is an ticipated, you can expect deposits to increase. Assuming the loan demand continues and pricing is adequate, the ul timate result is profit. WM. j. RICKERT Vice President National Bank of Waterloo Waterloo, la. AM CERTAIN that the windfalls of 10-12% fed funds Iget back are just as elusive as $10-12 soybeans — so we better to basics of soundness in our banking decisions. Since the margin on interest rates charged and those you pay will remain about the same, we either have to increase volume, find other areas to generate income or reduce our costs. Good loans, well documented with guarantees, security agreements, mortgages and trust deeds properly completed at the time the loans are negotiated, so that liens are — or can be —• perfected, remain your best income genera tor. Many banks have one loan that could wipe out thenentire loan loss reserve. Tn the economic climate we are working under, almost any loan can get sour if not proper ly secured. So, don’t reach out for high risk assets — even if rates charged make them appear attractive. Perhaps fee income, such as lock box charges, service charges, NSF charges, insurance and sale commissions, can be increased to offset higher costs that you will pay. Salaries, supplies, taxes, time deposit interest, postage, employees’ benefits will all cost more. Economic conditions may generate some increase in short term rates but since 1976 is an election year, politi cal decisions unfortunately outweigh sound economic poli cies. Keep reasonably short in your investment policy so that you can capitalize on any windfall opportunity. If high profits are earned, try to keep as much in your 27 capital structure as possible. Shareholder’s money is still the cheapest money you have available. If increased divi dends are justified, pay a special dividend, rather than in creasing the regular one which once paid is difficult to re duce. Take a good hard look at any sophisticated equipment or programs. Many too often forget that it is necessary to get a return on your investment. My best advice would be to keep your house in order — to run your bank so that decisions made today don’t erode that precious capital you have worked so hard to ac cumulate. We surely will continue to have heavy pressure on our capital accounts if growth and inflation continue. Don’t be caught short. emphasis on productivity is essential. The highest labor costs in history have placed a premium on sound personnel management, with attention given to more effective train ing, motivation, and above all, competent supervision. La bor saving equipment must be considered. Many banks are exploring the concept of incentive compensation, i.e. be ing remuneration directly to productivity. This has proven to be quite successful, particularly in areas where results are easily measurable, such as in bank insurance agencies. In summary, 1976 looks like a year of gradual and cau tious economic recovery, and the community banker who hopes to report an increase in earnings next December will have to give careful analysis and thought to all aspects of his operations, while at the same time striving for quality in asset management. WM. J. HEIMERMAN JOHN E. MANGOLD Senior Vice President Senior Vice President Northwestern National Bank Merchants National Bank Sioux Falls, S.D. Cedar Rapids, la. A F I ER a year of sluggish economic performance and narrowed interest spread margins, community banks will have to return to basic banking concepts to improve earnings in 1976. This means more emphasis on cost/ price analysis and less emphasis on leveraging and liabil ity management. In view of softer short-term money rates, we can expect continuing pressure from borrowing customers for low er loan rates. However, the community banker will find his cost of money gradually creeping higher as time de posit customers opt for longer-term certificates with a more attractive yield. In addition, the new regulations per mitting corporation and small business savings accounts will also exert upward pressure on the total cost of funds available, since these funds were formerly available to off set commercial checking account costs. Tne community banker has the right to expect reason able compensation for the services he provides, therefore it behooves him to closely analyze his commercial ac counts to assure himself the net collected balances being carried in the demand account are sufficient to adequately cover checking account costs. This is particularly true in view of the anticipated higher costs of postage, processing, and personnel. The expected continual squeeze in interest margins next year will no doubt force the community banker to look elsewhere in his shop for opportunities to improve 1976 earnings. High on this list should be a careful review of all controllable expenses to assure that: the services or prod ucts received are the most efficient and/or economical. Increased emphasis should be placed in the consumer loan area for higher income and liquidity. In addition, many service fees on accounts, loans, and other customer ser vices which may have remained unchanged for several years, could be in need of an upward revision to reflect re cent inflationary trends and to bring them more in line with current costs. With personnel costs continuing to escalate, increased https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis jC'OR THE agriculturally oriented community bank the A challenge of earnings maintenance is a prime problem today. Recent meddling and abuses of farm marketing mechanism by both governmental and private interests as sure a reduction in gross agricultural income. Constantly increasing input costs likewise indicate a lower net farm income in 1976 so be prepared to work harder to keep your agricultural loan portfolio functioning properly next year. A largely unresponsive economy coupled with threats of higher cost production inputs in all sectors creates a re mote possibility of increased profit margins for manufac turing and retailers. Turn your sights inward for increased profits next year. Zero growth demand accounts and competition for the savings dollar will raise the cost of funds so firm up your loan portfolio performance through rate structure, fees, and instalment credit. Appraise credits carefully and insist on quality security for loans. The market has previously discounted the problems and potential default of New York City and in so doing depreciated the whole munici pal field. With the “big apple” problem temporarily solved the municipal market should rebound somewhat as should the U.S. government issues which have been absorbing in vestment pressure from the municipal market. Look for increased investment potential in the money market instru ments of large commercial concerns who may be rebuild ing inventory if the economic upturn continues. Inventory replacement costs will be higher (resulting from inflation ary trends) with a lot of competition for funds. Your cor respondent probably can provide a participation or two to take up the slack. County Hospital bond issues have been increasing and in some cases government guaranteed. In any event Medicare practically assures a “full house” for good cash flow and repayment potential. FmHA and SBA loan guaranty limits have been increased and can soften the term effect of some capital type loans for indus trial expansion in your community. Perhaps your corre spondent can help you provide some of the funds for this N o rth w e s te rn B an ker, Ja n u a ry 19 76 28 expansion. Project notes also are a good source of liquid tax exempt investments. Stress quality over quantity in your daily routine and work for efficiency in all phases of your operation including employment practices and per sonnel utilization. ROBERT A. SUDDICK Vice President The Omaha National Bank Omaha, Nebr. T T SHOULD not be a revelation to the community banker that 1976 promises to be a year when the spread be tween average cost of funds, no matter how you wish to define that term, and notecase yield will narrow. That fore bodes less profits for us all unless we take positive action. The trick to improving profitability is to begin planning now to do something about it. Attention must be focused on how to maintain or improve the spread since the breadth of the spread will determine whether a bank turns in a poor, mediocre or commendable profit performance. A good starting point is the preparation of a realistic source and use of funds budget. This budget is the founda tion of your profit plan, and you should spend as much time on its preparation as is necessary to establish confi dence in the figures and commitment on the part of those who must take appropriate action to see that it is followed and the projected profits achieved. Tf the budget is built properly, it forces a close look at each significant loan in your portfolio. That means scruti ny of the spread (profitability) on each loan which, to be met, must be priced adequately in terms of risk and costs of administration. Recognition that each customer is unique and that his needs must be individually priced is the key to the commendable profit category. Naturally, this philosophy should extend beyond 1976, but 1976 is a good year to start using it and improving earnings. BENTON O’NEAL Senior Vice President First National Bank St. Joseph, Mo. STRONGLY the first step to increasing W EprofitFEEL is to set goals. These goals should include de posit increase, total invested dollars in loans and securities, expenses of all types and from there to the bottom line of net profitability. Probably the best place to start planning profit in your bank is a tight reign on controllable expenses. We would put quality of loans at the top of this list. Loan losses can N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 play havoc with profit and we see many banks that we feel are taking undue risks in the note case. This aspect of ex penses can certainly be controlled by management. Loan rates need to be set realistically in relation to risk and bal ances maintained by the borrower. Payroll expense sometimes gets out of hand, not so much the level of pay per employee, but rather the total number of employees. We find many banks that have a seemingly high number of employees based on number of accounts or assets, in these situations, we usually find job descriptions are not well defined and an overlap of duties and responsibilities. A proper mix of quality investments can mean tax sav ings. This again is a real way to cut expenses and improve the bottom line. This is by no means an attempt to define all ways to help improve earnings in banks, but we believe these are major areas and those in which bank management has ab solute control. We believe the old saying that “you are the master of your own destiny” is certainly true in banking. WESLEY D. BOWEN Senior Vice President Packers National Bank Omaha, Nebr. T BELIEVE we are all viewing the next 12 months with concern. Just for the record, let me relate a par tial list of new or continuing programs, or proposed legis lation, that the banking industry is or will be confronted with during this — our Bicentennial Year. 1. EFTS 2. Equal Credit Opportunity Act 3. Fair Credit Billing Act 4. Hunt Commission Report 5. Federal Branch Banking 6. NOW Accounts 7. Payment of interest on demand deposits 8. Payment of interest on TT&L deposits 9. RESPA 10. MACHA 11. And many others It has been my privilege to work with Nebraska country bankers for over 25 years. They have served their com munities with considerable distinction. The commercial banking system has done its job, and it has done it well in rural Nebraska. Yet, this very system is today in jeopardy due to ill-informed and over zealous legislators. And this doesn’t mean that the country banker is afraid of change. What he is afraid of is that the proposed change will not work to the advantage of the consumer (the bank cus tomer), for which it was supposedly intended, but rather will stifle and eventually sterilize his ability to serve the customer. Perhaps the topic “How Community Banks Can Im prove Their Earnings in 1976” should more realistically be rephrased “How Community Banks Can Maintain Their Present Earnings in 1976.” 29 BEN G. EILOERS Senior Vice President Bankers Trust Company Des Moines, la, HP HE CHALLENGE of improving bank earnings is continuous. On the other hand, the methods employed by bank management to achieve the objective are basic. In light of the intensified focus on bank performance, we must not lose sight of quality and creditability solely for the sake of profits or growth. More customers and an increased deposit base can be the fruits of a good and effective calling program, customer convenience and better service. Once acquired, the utiliza tion of these funds is extremely important. Continued analysis of your loan portfolio is a must. Meet the loan demand in your market area even if it re quires utilizing your correspondent. Strive for quality and price your loans at rates that give you the widest spread between cost and yield that is desirable. Most banks derive the greater percentage of their total income from loans, therefore, lending rates should receive close attention. Where loan demand is soft, concentrate on upgrading your investment portfolio, both from the standpoint of yield and liquidity. The constant rising costs of operations will have its ef fect on profitability in 1976. Bank management must plan, budget, control and evaluate. Greater efficiency and total control will contribute to profits. Know your costs, estab lish your priorities and then control them. Management must concern itself with improving productivity and elimi nating inefficiency. Salaries constitute a sizeable portion of every bank’s expense. In return for those salaries you are entitled to excellence in performance, but only if you hire quality people and continually strive to see that they are skilled in their jobs. The theme of the 1975 ABA Correspondent Banking Conference was “Strive for Quality — Plan for Growth.” May I suggest you apply this to your program for 1976. Improved earnings can become a reality in 1976 — it will take a total commitment from directors, officers and staff. RALPH W. ABELT Vice President Continental Bank Chicago, III. S WE ENTER this bicentennial year, one’s estimate of the future for community bank earnings will, in large part, depend upon what economic scenario is consid ered to be “most likely.” Certainly, the year just concluded can be characterized as being, at best, a spotty year for bank earnings. Major factors which impacted earnings in 1975 were anemic loan demand (particularly in the third A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and fourth quarters); sharply lower levels of short term interest rates; and increased operating expenses, pressured by continuing inflation. Improvement in any of these fac tors will be of great help to the community banker striving to meet expanded profit goals. In the current economic environment successful bank managers will be planners, the agile thinkers, those who can anticipate change and take timely action. To improve earnings in 1976, managers of community banks must identify and concentrate on those activities that have the highest prfiot potential and yet they cannot ignore alloca tion of resources to forward-looking services needed to maintain market position. The effective community bank manager must also assess the impact of the proposed modifications in the nation’s financial institutions. The probability of paying interest on demand deposits, other financial institutions offering checking accounts, and the elimination of ceilings on vari ous savings interest rates are all clearly in view in 1976. Within this context, pricing policy assumes great impor tance, and community banks will need, among others, the following: 1) A clear definition of loan policy and pricing to in sure a reward commensurate with the risk and term of the credit. 2) An objective reappraisal of account profitability analysis to insure that bank services are not substan tially underpriced, or even worse, given away. 3) A re-examination of bank investment policy for pos sible additional profit potential without impairing liquidity or quality. In addition to the above, bank managers will be under great pressure to carefully monitor controllable expenses. Higher salaries and increased operating costs all have a dramatic impact on earnings and, if not properly con trolled, can blot out the benefits of a carefully planned fund use program. Any increase in money cost through re laxation of interest payment restrictions is going to be diffi cult to offset. In summary, the year 1976 promises to be a demanding one on managers of community banks, given the conserva tive and skittish mood of the American consumer. Those managers who expect to maintain or improve earnings in the coming year must carefully assess the role they play in meeting the financial needs of their community (in a more competitive environment); they must know their costs; and they must price their services to insure that ade quate gross profit margins are being maintained. Finally, they must deal effectively with problems of asset allocation and quality to avoid dissipating hard-earned dollars in loan losses. 1976 promises to be another year in which profit performance will be closely studied by all the groups to which community bankers are accountable. The market promises to reward effective professionals and, yet, may well be unforgiving of the ineffective. Clearly, we can expect dramatic change in the manner in which bank services will be provided to the retail mar ket. Technology, regulation, consumer expectations — all these influence management decisions in 1976 — all point toward dramatic change in the near term — all promise to complicate the already difficult problem of improving bank earnings. The risk/reward decision is always diffi cult to make — particularly in community bank manage ment in 1976. N orthw estern B an ker, Jan u ary 1976 30 KENNETH A. WALES Vice President First National Bank of Minneapolis, Minn. RITING an article on how to measure profits is al W ways a little bit scary. This is an area where many of us, I suspect, feel that we are experts, or at least know what we are doing. Unfortunately, I fear that this is not always the case. Managing for maximum profit is a goal that all of us should have, yet few of us utilize the appropriate strate gies to reach that goal. Let us examine exactly what goes into profit. Simply put, profit is the excess of income over expenses covering any given unit of time, whether it be a day, month, or year. Therefore, to maximize profits it would be absolutely necessary for us to carefully examine all items which make up total income for our banking units and all items which make up total expenses. We cannot operate without full knowledge of our costs as they apply to every function that we perform in our quest of service to our customers. We have to know what it costs to make a real estate loan, for instance, before we can price that loan properly. We have to know the cost of funds that we use in our operations. If we don’t have a handle on these costs, how can we price a product at a level sufficient to cover all expenses, as well as to provide the expected profit on that particular transaction. Services is another area where many of us I fear are “giving the store away.” Each service should be examined. There may be good cause for providing that service on a free basis, or there may be equally as good justification for initiating a fee for that service. All of us realize that in a bank we take the money in with one hand and lend it out with the other hoping to make a profit on the spread. It is not until, and only until, we begin to manage in an effective manner and achieve a satisfactory spread between the cost of funds and the return on those funds, that we can truly say that we employ at least some of the methods to be used in “maximizing profits for 1976.” R. E. HAGEN Vice President Security National Bank Sioux City, la. from actively seeking new business, and con A SIDE trolling expenses, there are a couple of areas that could affect bank earnings that management should watch in the coming year. For 1975 the tax rate for banks will be 20% on the first $25,000, 22% on the next $25,000 and 48% on income over $50,000. If these rates continue into 1976, as pro posed in the new tax law now before Congress, banks will N orthw estern B an k er, J a n u a r y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 need to carefully analyze their tax free income. In other words, the amount of municipals in the bank’s portfolio should be monitored at least quarterly and adjusted to re flect projected income for 1976. Secondly, even with the expected government financing, it is questionable that rates on short-term securities and fed funds will substantially increase during the first half of 1976. With lower investment income there is a tenden cy to let higher loan rates over-shadow prudent credit de cisions. In looking for more loan income the bank, of course, should consider the recovery that has taken place in the livestock industry, but should not forget about the potential losses that were with us a year ago. For the banks that do not have a high loan demand, 1976 may be a year in which they will have to “bite the bullet” in trying to im prove their earnings. WILLIAM T. DWYER Vice President First National Bank of Chicago, III. T N THE FACE of increasing challenges and problems, community banks can survive and grow not only be cause of their own abilities to face change but also because the focus of correspondent banking is to assist in meeting such change. The consistent effort to improve earnings with stable growth is the essence of banking or any suc cessful enterprise. 6 thoughts come to mind — I’m sure there are more: 1. Continue what you are doing: to strive to do better. Unfortunately there is more attention focused on those who have critical problems and tough choices. What is overlooked is that the majority of banks — the community banks — are doing so well. 2. Look critically at your assets. The marketplace seems to be saying about the banking business that it should cover the fundamentals, that there are too many questionable assets. Reviews of assets should be more comprehensive, periodic and critical. 3. Improve cost-consciousness throughout your bank. Cost controls and pricing policies need frequent analysis: those banks with strong managerial control, determined spread policies and controlled costs will show improved earnings. The movement underway for payment of interest on demand deposits and/or issuance of checks on savings deposits makes such widespread consciousness imperative. 4. See that your bank is prepared for EFTS, on-line systems and point-of-sale banking. Advances in elec tronic banking require knowledge of trends and de velopments, close relationship with able sources, and full awareness of the capital intensive nature of the changing times. 5. Continue to sharpen management skills, at the top and at the next tiers. Successful banking is continu ing to require increasing manager professionalism as one of the strong pillars of improved earnings and stable growth. 31 6. Work closely with your correspondents — demand of them. The price you pay can be as big a value as is available in any purchase you can make. The right correspondent can bring together talents of people and capacity to complement your own many prod ucts and services in order to help you improve these earnings in 1976 and beyond. DAVID M. CULVER Vice President First National Bank in St. Louis, Mo. T T ERE are some observations about how to improve community bank profits in 1976: 1. Community banks must define their markets, deter mine their market penetration and develop a marketing and sales strategy to penetrate those markets they choose to deal in. 2. Review organizational and operational systems/procedures and streamline them so that they are cost effective. 3. Select qualified personnel for all areas of the bank and motivate them through training, responsibility and fi nancial incentives. 4. Monitor and evaluate systems and procedures imple mented to insure that the goals of the organization still meet the requirements of the market place. 5. Be responsive to changes in regulatory, environmen tal, sociological and technological factors and be flexible in order to adapt to these changes. RICHARD L. McAULIFFE Senior Vice President Harris Trust & Savings Bank Chicago, III. HP HE YEAR 1976 promises to be another interesting and challenging year. Uncertainty exists relative to the over-all economy, agricultural markets, money markets and politics; these are just a few of the areas that may have a direct impact on bank management. Management’s abil ity to properly evaluate and anticipate changes ultimately will be reflected in the level of profits achieved. While profit maximization is an important goal, it must be kept in proper perspective. The taking of excessive risk in the pursuit of profits will have, in time, dire conse quences. Maintaining a sound, liquid asset base should be high on management’s list of priorities. Profits can be increased by increasing income, decreas ing costs or a combination of the two. The major determi nants of income are interest income from loan activity and interest income from the investment portfolio. Pricing of loans, floating interest rates and timing of note maturities are areas that can influence the level of loan interest in come. Getting good results on the investment portfolio is https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a function of both composition and timing, and is deserv ing of very careful management attention. Reducing the cost of funds is a constant challenge and one of increasing complexity. Maintaining demand depos its is tough. Passbook savings are a good source of funds but difficult to hold because of competitive rate conditions. The relative advantages of fed funds, certificates of deposit or other debt instruments are often not obvious. Again, composition and timing are key factors. Proposed changes in regulations of financial institutions, if implemented, will have a dramatic effect in this area. Maintaining high levels of efficiency and proper salary levels are also important aspects of profit maximization. The rapidly changing worlds of bank regulation, tech nology and bank structure add to the challenge of manage ment. Staying abreast of all the various aspects of the banking business is becoming an impossible task. As a re sult, it is becoming increasingly necessary to seek outside professional advice from attorneys, accountants and city correspondents. Superior bank management will continue to be recog nized as the result of hard work, maintaining cool heads and exercising good judgment. AVERY G. FICK Vice President Marquette National Bank Minneapolis, Minn. 'T 'here are many ways of determining which methods or combination of methods is best for improving the earnings of your bank. The Bank Administration Insti tute (BAI) offers good comparative studies. The Federal Reserve makes available to all banks its Function at Cost Analysis (FCA) study, in which many banks participate. Also, FDIC supply cost data. Once a comparison of these studies has been made, you should have a good idea whether costs are within a proper range — costs of funds as well as cost of operating. With costs and income in line, look at the home situa tion with the thought of stimulating more business. Survey your community to determine whether you are working with the best loanable customers. If not, why are they dealing elsewhere? Is their line too large for you to han dle? Is the rate they pay (or want) in line with the market or with what you think is acceptable? If their line exceeds your legal limit, have you consid ered talking with your correspondent about his participat ing with you in the loan? Overlining and/or participating is a function you can use advantageously. Give it careful consideration. Don’t let size be the single criterion for a good business loan. Increasing the wealth of your community is a way of producing new deposits, which should mean, normally, more earnings. Have you done what you can to attract in dustry to your town? Have you assisted your farm cus tomers with new capital goods to improve his productiv ity? Sponsored training programs to make his operation more profitable? It is through such efforts that earnings can improve. N orthw estern Banker, January 1976 32 blending and balance for sustained growth and stability. The ethic of our land with its seasons and renewable wealth — the work that makes it productive — are reflect GEORGE F. MILLIGAN ed in the statements of condition published and certified. Vice President Quality. Keep it up! Continue to fulfill that “duty which is closest." Continue lowa-Des Moines National Bank giving service to your depositors and the total community. Des Moines, la. Read, plan, act, react, and look well-beyond 1976. Con tinue to make your own determinations concerning the economy and our total economic structure as a nation. Continue to make your own final judgments. T IS presumptuous for me to tell you how to run your I am, personally, not totally convinced that the economy bank in 1976! or government will give us cause to be in a relaxed posture Let me give you a very personal insight, however. In for the next several years. I would give added emphasis traveling, visiting and talking with you, throughout the to liquidity and capital adequacy considerations. As Iowa state, I am continuously impressed by the confidence and bankers we can give counsel and help to the nation s total inner-strength that is managing Iowa’s banks. financial community, highly leveraged and awash in debt Many years of experience and service are guiding the as it is. That’s the key to improved earnings in 1976, and community banks, and new talent and enthusiasm is being beyond. encouraged among the younger bankers — an excellent ABA Presents Awards For Ag Programs The Kansas, Minnesota and Wis consin bankers associations were pre sen ted with national awards for outstanding agricultural programs recent ly at a banquet held during the Ameri can Bankers Association’s 24t;h Na in n o v a t iv e Yin-8- vat-iv \ adj: 1. Characterized tional Agricultural and Rural Affairs Conference in Houston. by, tending to, or introducing innovations. The ABA’s agricultural awards pro 2. Introducing of som ething new, as a new idea, gram recognizes state bankers associa m ethod or device. tions’ successful programs informing bankers and the public about the im portance of excellence in agricultural We c a m e in to the fie ld o f c r e d it in s u ra n c e at a tim e w h e n banking. th e field a p p e a re d v ir tu a lly c o n t r o lle d by e x is tin g The ABA awards were presented by c o m p a n ie s . W ith little ro o m f o r a n o th e r. Yet, w e ’re m a k in g Oliver A. Hansen, chairman of ABA’s agricultural bankers division and presi it — and m a k in g it big. N o t by c o p y in g . B ut by b e in g dent of Liberty Trust & Savings Bank, In n o v a tiv e . C reative. Durant, la. For in s ta n c e , we have a b illin g sy s te m th a t s o m e t h o u g h t The Minnesota Bankers Association w o u ld n e ve r w o rk . W ell, it w o r k s and w e ’ve ju s t m a d e it was honored for its program inform better. On to p o f that, w e ’ve d e v e lo p e d c r e d it in s u ra n c e ing the public about agricultural bank p r o g r a m s o th e rs c o u l d n ’t h a n d le . A n d se rv ic e th a t so m e ing, and in this area special mention went to the Nebraska and Virginia o n ly ta lk a b o u t. Bankers Associations. W h o are we? St. Paul H o s p ita l & C a s u a lty C o m p a n y The program informing the public . . . c r e d it in s u ra n c e s p e c ia lis ts . W e ’re a v a ila b le to c re a te a about agricultural banking developed p r o g r a m f o r y o u r s p e c ia l needs. For m o re in fo r m a tio n on a by the Minnesota Bankers Association p r o g r a m ta ilo re d fo r y o u , please g ive us a call. included publication of a newsletter for bank customers in statement stuffier Call collect (402) 342-7600 format, a statewide television advertis or write to: ing program, placement of agribank ing articles in farm publications, dis St. Paul Hospital & Casualty Company tribution of cash-flow forms to farm c/o Mutual of Omaha Insurance Company Dodge at 33rd Street, Omaha, Nebraska 68131 operators and development of a film and speech library. I in n o v a tiv e St. Paul^T) Hospital & Casualty A Mutual of Omaha Company Home Office: Bloom ington, Minnesota N orthw estern B anker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 ACORN Registers "Accepted Sale Registers by Bank Clerks Everywhere" Fo r in fo rm a tio n w r i t e THE ACORN PRINTING CO. Oakland, Iowa 33 Dr. Upgren Sees Recovery Continuing OOKING at the year ahead, noted economist Dr. Arthur R. Upgren expects “The gain in output in the third quarter of 1975 (of) 11.2% . . . in goods terms . . . will c o n t i n u e into 1976 because in comes and sav ings are wholly adequate for it to do so. But until we tax more and rebate less we shall have continued inflation. We have done enough on the rebate and tax-cutting side,” he states. Dr. Upgren said “We now should contemplate some addition al taxation, but apply it only to those whose income has increased. That should be the test.” Dr. Upgren’s look at 1976 was part of his economic report, “Charting Our Economy,” prepared for Bank of Min neapolis, Minneapolis, Minn., of which he is a director and economic advisor. In his preliminary remarks, Dr. Up gren said the answer to the question, “How Is Our Economy Doing?” is that it is “doing very well and it is doing much better than our economists with, naturally, some exceptions.” Reviewing the 15-month recession, or decline, Dr. Upgren noted that the most serious part of it was the six months from October, 1974, through the first quarter of 1975 when the de cline in real output was 7.2%. He com pared this to the Great Depression de cline from 1929-33 of 47% in value of total output. The other five reces sions from 1948 through 1971 had de clines for three of them from 1 V2 % to 3Vi% and for the other two less than 1%. The 1974-75 recession, he said, was twice as deep as that of 1957-58 and only one-seventh as deep as the one ending in 1933. He attributed the “saving” of several large banks from financial failure to federal laws based on Great Depres sion experience and the fact that “our money supply has been maintained in contrast to the loss of 23% of the money supply in the Great Depres sion.” This structural change, he be lieves, has been accompanied by an other structural change — “the auto matic stabilizers.” He says these “economic stabilizers have worked so forcefully that there has been a gain (small) in the total personal income in the worst six months of the recession. That gain was $29.8 billion.” Dr. Upgren said that since May, 1975, however, that gain leaped for ward $57 billion for the ensuing four months for an annual rising rate of $170 billion for personal income. Dis counting all unusual gains (tax re funds, etc.), he says, still leaves this annual rising rate at over $100 billion. And, American families, he notes, have handled this gain wisely. Where personal savings averaged $57.5 billion from 1967 to 1972, this rate increased to an average of $75.7 billion in 197374. In mid-1975 the rate leaped up to $113.5 billion, and it dropped back to $82.9 billion in the third quarter of 1975. “This, of course, permitted a great rise in total spending and sent automobile sales up by about onethird,” Dr. Upgren said. Consequently, he observes, despite the recession the economy has been tolerably well stabilized by the new factors of maintained money supply by our banking system and a maintained income for the families of America. That income has increased for some a little more than it should and, for others, the unemployed, it has declined roughly by one-half. He says the recession would have been an ordinary one except for the complicating factors of the oil problem and the tremendous wage demands made by such trade groups as building trades workers who are getting $40,000 for plumbers and $30,000 for car penters in some large areas, thus pric ing themselves out of the market. This has really caused the housing reces sion, he feels. “Our great defect in our record of fighting inflation has been the continu ing greater increase in wages than we get in productivity gains. Contractual wage rates have at times this year in creased by as much as 15%, far in ex cess of the average rate of gain in per worker productivity. This is one lesson the whole western world must learn, and especially New York City. A na tion and a city cannot give real gains in wages greater than the gains in pro ductivity. When that takes place, infla tion rears its ugly head,” Dr. Upgren concluded. CONVENTION FACILITIES SECOND TO NONE IN MINNEAPOLIS Incomparable Setting. . . Land of Sky Blue Waters! Incomparable H otel. . . The New Hotel Leamington! I n c o l o r f u l M i n n e a p o l i s . . . it’s the lakes, parks and drives. In The Hotel Leamington . . . it’s the unsurpassed capability to handle conventions of virtually any size. The exquisite Hall of States, l a r g e s t and f i n e s t hotel ballroom in the e n t i r e N o r t h w e s t . The versatile Hall of Presidents, and a trem endous selection of beautiful facilities in the Hall of Cities. Each of these m agnificent Halls is quickly convertible into separate, sound-proof, air conditioned function rooms of various sizes. Parties of 2 0 . . . up to meetings of 3 0 0 0 are possible, and banquets for up to 2 0 0 0 are comfortably arranged. Eighty luxury suites, including 15 totally new deluxe penthouse and patio suites and our 100-room Motor Inn round out Hotel Leam ington’s trem endous resources for the utmost in convention service and SUCCESS. J H THREE GREAT HOTELS IN ONE e a m in g to n IN TH E H E A R T OF M IN N E A P O L IS 1 0 0 % A IR C O N D IT IO N E D Fo r c o m p l e t e d e t a i l s on c o n v e n t i o n f a c i l i t i e s a n d 4 8 - p a g e c o l o r b r o c h u r e , w r i t e , w i r e or p h o n e S a l e s M a n a g e r c o l le c t (a r e a code 6 1 2 )3 3 3 -6 1 6 1 600 L U X U R I O U S L Y F U R N I S H E D G U E S T R O O M S * A M P L E PARKI NG WITH DIRECT HOTEL MOTOR ENTRANCE N o rth w e stern B a n k e r , J a n u a r y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 7 6 34 "A m an’s got to get some m ud on his boots before he’s any use out here.” 'lhe city is the city. The country is the country. T hat’s a difference we’ve always appreciated at American National. And so we offer our correspondents several unusual services specially developed to meet the needs of banks outside the big city. For example, we have an automated bond accounting service that can streamline your investment pricing, and the accounting on your whole investment portfolio. T And we can offer you a whole range of management tools, from expense reporting systems to employee benefit programs. W e’ve also staffed our corre spondent department with people who understand the unique needs of a small city bank. From personal experience. One of them is Mike Byrne. And we hope you’ll call him the next time you need the kind of help that only a big-city bank can offer. AND TRUST COMPANY OF CHICAGO LaSalle at Washington/LaSalle at Wacker 60690/Phone (312) 661-5000/Member FD1C N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 35 $1 million for one day (at passbook savings rates). Customers also re ceived small gifts. There were balloons for the children and refreshments for everyone. Illinois News ARTHUR F. BUSBOOM Gladstone-Norwood Bank Opens in Temporary Facility P resid en t Rentoy! ROBERT C. SCHRIMPLE Exec. V. P. Chicago Glenview State Bank Promotes 4 Officers John H. Beaulieu, vice chairman of the Glenview State Bank, has an nounced the elec tion of Leonard H. Bierer, Ken neth J. Douglas and Marvin V. Milazo as vice presidents a n d Ronald L. Wes trom as personnel director. Mr. Bierer, cor L. H. BIERER porate business development, joined the bank in 1969. Mr. Douglas, head of the commercial loan department, joined the bank in K. J. DOUGLAS Penman, personal banking representa tive, and Robert P. Steele, trust depart ment, Harris Trust & Savings Bank, Chicago. Bank of Mundelein Holds Open House The Bank of Mundelein recently held its tenth anniversary open house together with the opening celebration for its addition and new auto banking facility, according to John W. Busey, president. Mayes, Williams and Partners, Glen Ellyn, designed the addition to the building to compliment the existing building. In addition to office space it features a five-lane pneumatic tube drive-in system together with a match ing canopy. The bank also added park ing spaces to more than double the original number available. The open house to celebrate 10 years featured a “sellabration” in con junction with local merchants and of fered a grand prize of the interest on Gladstone-Norwood Trust & Sav ings Bank recently opened for business at Foster and Central and has unveiled plans for its new building at the site. Groundbreaking ceremonies for the new building will be held early this spring. Completion is scheduled for next fall, according to Kenneth H. Fox, president. The new building will be a one-story structure of contemporary design. Three drive-in lanes with room to ex pand to six are included. IMPORTANT NOTICE! We want to publish news of any officer or director changes, increases in capital structure, other important action taken at your annual meeting, or any other current news from your bank. Send this news at once to NORTH WESTERN BANKER, 306 Fifteenth Street, Des Moines», Iowa 50309. M. V. M ILAZO 1972 from Litton Industries Credit Corporation. Mr. Milazo has been with the bank since 1972. He formerly had been with Second Mercantile Corpora tion, Chicago. Mr. Westrom has been assistant personnel director since join ing the bank in October, 1973. Worth Bank and Trust Holds Community Seminar Worth Bank and Trust recently held a community seminar in its lobby on financial topics such as investments, trusts, estate planning and Individual Retirement Accounts. The bank is planning similar programs in the fu ture. Bank employees who participated are Russell D. Boyer, executive vice president; Robert S. Straz, cashier and Kathy J. Baldwin, assistant trust of ficer. Guest speakers were Geoffrey A. SHOWN is the McLean County Bank, Bloomington. The new addition is to the right of the center tower. Bloomington Bank Holds Open House McLean County Bank of T HE Bloomington recently held an open house in honor of the completion of enlarged banking facilities. Construction began in 1973 to dou ble the bank’s size to 20,000 square feet. The first step was to construct a Mini-Bank with four drive-in and two walk-up teller windows. The old drivein was then removed to provide space for the addition. The commercial, farm, trust, instalment loan and book keeping departments occupy the new addition. Five new drive-in units were included to make the total now of fered nine. N orthw estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B an ker, Jan u ary 197Ó 36 Illinois News AMB1 Announcements The Association for Modern Bank ing in Illinois has elected four directors and has named regional presidents. The- new directors are Walter Ehr mann, vice chairman, Heritage/Pull man Bank & Trust Co., Chicago; John A, Andersen, executive vice president, First National Bank, Lake Forest; Gordon E. Sears, executive vice pres ident, Citizens First National Bank, Princeton, and Howard Lee Payne, president, Bank of Benton. The regional presidents are: region I (northeastern), Frank S. Read, chairman and president, First National Bank, Lake Forest; Region II (north western), Carl Kautz, executive vice president, Moline National Bank; re gion III (central), Eugene R. Mischke, president, Colonial Trust and Savings Bank, Peru; region IV (south cen tral), Frank Strieby, president, Illinois State Bank, Quincy; and region V (southern), Donald P. Brown, presi dent, First National Bank, O’Fallon. Joins Evanston Bank Grover H. Windsor has been named vice president, commercial lending, at Vacationat the mm ms O F ORLANDO. FLORIDA VMHERt a ll roads LEAD to WALT DISNEY W 0Rt0 ff '(Û. a -.-A«>r OTLH .r ; 'S M M y U; m »■ © HILTON INN GATEWAY HIGHWAY 192 KISSIMMEE. FLA. 32741 305-846-4400 5 MINUTES TO DISNEY WORLD Walt Disney Productions 360 ROOMS Each with 2 Double Beds and Color TV. Swimming Pool — Children’s Playground— Res taurant — Lounge — Buses to Disney World. Superb MEETING, BANQUET & CON VENTION FACILITIES to serve 20 to 700 people. »»•■ '» C l INQUIRE TODAY ABOUT SPECIAL GOLF AND FAMILY PACKAGE PLANS k HlLJ ° H INN kooJ outh n os * 1 ^ !& £ * * ' CM* »°00’ àeD “ “S C«?ÍÍ“«*o W'Aoiv al a» 5 S£ FOR RESERVATIONS CALL TOLL FREE: 800-327-1363 For reservations or additional information write: HILTON INN SOUTH, 7400 International Drive, ORLANDO, FLA. 32809 □ VACATIONS □ GROUP MEETINGS NAME ________________________________________________________________________________________________ CITY, STATE, ZIP N orthw estern B anker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 197$ First National, Des Plaines, Appoints 3 Officers Bruce I. McPhee has been advanced trom vice president to senior vice pres ident, commercial and mortgage loan department, of the F irst National Bank of Des Plaines. Richard J. Lingl, commer cial and mortgage loans, and Thom as J. Utzig, instal ment loans, have . , „ been promoted from assistant vice presidents to vice presidents. Mr. McPhee, with the bank since 1966, is a graduate of Drake Univer sity and holds a masters degree from Loyola University. Mr. Lingl previous ly was credit manager and commercial loan officer with a west suburban bank and spent 11 years with a Chicago bank before joining the Des Plaines bank. Mr. Utzig joined First National in 1971 after serving seven years with another financial institution. Princeton Bank Establishes Newcomer Information Center t # v ,S ADDRESS The Evanston Bank, according to John J. Vax, president. Mr. Windsor, who began his bank ing career at Continental Bank of Chi cago in 1958, had been a lending of ficer for the Associates Capital Cor poration of North America since 1966, most recently in the commercial loan office. Citizens First National Bank of Princeton has established a Citizens Newcomer Information Center, ac cording to Robert I. Zearing, presi dent. Rosa Lea Danielson, marketing assistant, will be the center’s director. “It is our hope that this information center will be of benefit to business in the area of recruiting, by making appli cants aware of some of the advantages of living and working in the Bureau County area,” Mr. Zearing com mented. “Also it will give helpful in formation to make moving less of a burden to those new employees who are coming to work in our local indus try.” Information will include such things as where the electrical meter hook-ups can be found and how to get the tele phone connected. Correspondent Banning Today m t The questions are getting tougher. The answers and the people who give them are more important. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We have some unique services. It’s likely, for example, that yo u ’ll have some hard questions relating to agriculture or agri business. Then yo u ’ll be interested in the fact that First M inneapolis is the only bank in the Twin Cities with an agricultural specialist on the staff in the C orrespondent Division. Perhaps you have questions concerning the p r o fita b ility o f s tu d e n t loans. W e ll, F irs t M in n e a p o lis is the o n ly bank in the N inth D istrict (and one of the few in the country) with a complete Student Loan Servicing Center. In fact, we developed the concept. Or maybe you question the e fficien cy of y o u r c h e c k c le a ra n c e s . T hen c o n ta c t o u r Correspondent Division and ask for our current availability schedule. Our system may give you a v a ila b ility of funds a day so o n e r than other banks can. Of course, we can answer your questions across the full spectrum of banking, covering both generally available services and those unique to First Minneapolis. And the quality of th e a n sw e rsd e p e n d se n tire ly on the quality of the people who give them. And some very special people. It’s hard to describe the character of all the d iffe r e n t p e o p le w ho m ake up o u r C o rre spondent Division. To appreciate them, you have to know them and work with them. But this much we can tell you: All the people in our Correspondent Division are there because th e y ’re banking profes sionals. They’re supported by the total resources of our bank. And they have a common goal — to establish long-term banker-to-banker relationships with other banks, w hatever the ir size or location. You d on ’t have to be big to receive our attention. Our people are prepared to answer any questions you have. Whether it’s ! | “ Flow can you help me with this o ve rlin e ? ” or “ W here can I find a good assistant te lle r? ” or “ Can you clear my checks faster?” or How can I do a better job of m arketing my bank?” o r... w hatever your question, w e ’ve got the people who are ¿willing and able to sit down ^and help you w ork out the answers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis To start finding answers, these are the people to call. Here are the First M inneapolis “ answer people" and the te rrito rie s they serve. Each is a banking professional, each is backed by the full resources of a major bank w ith a m a jo r c o m m itm e n t to Bill Hamilton S . Dakota and W. Iowa (612) 370-4683 Chuck Shewey Dakota & W ash., Chisago and Dakota Counties in Minn. ( 6 1 2 ) 3 7 0 -4 6 9 1 correspondent service. We have all the people, all the services, all the help you need —all in one place. That's why we're known as the Bankers' bank of Mid-America. Ray Johnson Al Highum Mike Soncher Central Minn. Southern Minn. E . Iow a, W ise, and Upper Mich. (612) 370-4688 (612) 370-4689 (6 1 2 ) 370-4684 Bill Johnson Montana, N. Ming, and Ram sey Co. (612) 3 70-4685 Dick Parnell Bud Ornlie Ken Wales June Swanson Delores Ellis In charge of credit Deputy Head of Div. H enn.. Wright Anoka and Isanti Counties in Minn. Head of Division Adm inistrative Assistant S p e cia l S e rvice s (612) 370-4687 (612)370-4697 (612) 370-4788 (612)370-4692 (61 2 )3 7 0 -4 6 8 2 mg K m FirM HHHHHP Minneapolis Correspondent Bank Division • First National Bank of Minneapolis • 120 South Sixth Street • M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Our answers cover the full range of banking services. 1. Collections and Transit S ervice W e’re located at the transportation hub of the N inth D istrict and linkedtoall forms of transportation and co m m u n ica tio n by co u rie r. To assure the fastest process ing, we operate our tra n s it d e p a rtm e n t a ro u n d th e c lo c k , throughout the year. We ll be glad to v is it w ith you a bo u t yo ur out-of-town check processing. 2. C om puter Services We will help you determ ine w hether (or not) you can e fficie n tly and profitably automate certain of your banking functions and, if so, we ll work closely with your people to set up the system and keep it operating smoothly. Autom ation applications include: A. Demand D e p o s it A c c o u n tin g B. In s ta llm e n t Loan Accounting C. Bond Portfolio A ccounting D. S avings A c c o u n tin g (O ff-L in e or O n-Line) E. Savings C ertificate System F. Student Loan Servicing Program G. Mortgage Loan Account ing H. Payroll I. One S ta te m e n t J. Fiche K. M ic ro film L. A u d it S e rv ic e M. A c c o u n ts Receivable Account ing N. In s u ra n c e A gency A ccounting. We can do y o u r p ro c e s s in g on o u r c o m p u te r and also enable you to offer va rio us autom ated s e rv ic e s , such as payroll and accounts re ce iva b le , to yo ur customers. 3. Bank M an ag em en t Assistance You’re in vite d to discuss any m anagem ent problem s or questions with members of our C orrespondent Division. W e’ll gladly provide you with confidential counseling and assistance w ithout cost or obligation and share with you current reports and inform ation on banking practices and management. 4. Bank O perations Analysis It’s part of our job to keep abreast of the newest methods of handling transit, funds control, conversion to an accrual system and other functions. We re able to make these methods https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis available to you and help with any operational problem you m ight have. 5. Investm ent Services Our Bond Departm ent has a staff of professionals to assist you in the governm ent, m unici pal and money mar kets. This, along with the best in techno logical and financial resources, provides you with maximum ex p ertise in p o rtfo lio management. 6. C redit Inform ation Our Credit Departm ent maintains the area’s h ig h e s tq u a lity c re d it research fa c ilitie s —over 100,000 current credit files covering businesses and individuals in the Twin City area and the entire Upper Midwest. We carefully gather facts from banks nationwide and internationally and fro m a c c re d ite d a g e n c ie s a cro ss th e country. Reliable credit inform ation reports are p re p a re d p ro m p tly , w ith e x p e rie n c e d analysis. 7. Loan Participation Program To offset seasonal fluctuations in your loan volume, we offer, on a lim ited basis, the sale o f p a rtic ip a tio n s in o u r s e le c te d p rim e rate loans. 8. C urrency and Coin S ervice You can arrange for us to provide you with d a ilysh ip m e n tso fw ra p p e d coin and currency by bonded carrier. Excess currency and coin w ill be credited to your account. 9. Draft Collections We give prom pt notice of the final paym ent of all types of drafts. Draft collections are speeded by b ank w ire , W e stern U n io n , a irm a il or messenger. 10. International Banking Services You’re invited to offer the full use of our Inter national Banking facilities to your customers. Services include: Commercial Letters of Credit, Travelers Letters of Credit, foreign remittances to anywhere in the free world, foreign funds bought and sold, export collections (including checks, sight or tim e drafts, and foreign security drafts), assistance with inter national marketing or export procedures, purchase of gold and cre d it inform ation. 11. O verlin e Loans Participation in overline loans is one of our most im portant functions. Toward this end, we o ffer the services of specialists in every type of com m ercial cre d it and, for assistance with feeder loans and farm loan participations, our C orrespondent Division is unique among Twin C ities’ banks in offering the expertise of an agricultural credit specialist. 12. M arketing, Advertising and Public Relations Assistance W e’re available to help you set up a sound m arketing program, develop effective adver tising, create custom er incentive promotions, provide staff and o ffice r sales training, hold an open house, arrange speakers for local meetings and events and other related services. 17. Tickets and Reservations We w ill a rra n g e to purchase tickets for you to use for Twin City entertainment or sporting events, also to make hotel or air line reservations for you and any of your customers. 18. Trust Services A ll o f o u r c o rp o ra te , e s ta te p la n n in g and personal trust and em ployee benefit services a re a va ila b le to our Correspondent Banks and the ir customers. This includes assistance in setting up I.R.A. and Keogh plans. 19. W ire Transfer S ervice 13. Financing Bank Purchases In addition to providing the necessary capital through loans collateralized by bank stock, we help th e b o r r o w e r to com plete the trans action smoothly. We assist sellers in finding buyers and we pro vide escrow services where desired. 14. Personnel Counseling Helping fellow bankers find and hire good people is one of the most satisfying services we perform . In addition, our personnel officer will work with you in any area you wish, such as personnel policy, job evaluation, wage and salary review and governm ent regulations. 15. Profit Sharing for C orrespondent Banks T h rough o ur Trust D epartm ent, we o ffe r a d e fe rre d P ro fit S h a rin g Plan e s p e c ia lly design e d fo r C o rre sp o n d e n t Banks. It’s an ideal way to provide incentive and retirem ent income with substantial tax savings. A Pension Plan is also available. 16. S afekeeping We o ffe r you a co m p le te care se rvice fo r securities: we take custody of the securities, receive and d eliver or arrange for transfer, exchange or deposit them, follow calls and maturities, co lle ct coupons, and provide or ve rify inventory lists. S ecurities are segre gated (never com m ingled with other banks’ s e c u ritie s ) and s to re d in o u r la rg e S a fe keeping vault. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis All of our comprehensive wire transfer services are a v a ila b le to o u r c o rre s p o n d e n ts fo r im m ediate funds transfer, payments, security transactions. We utilize the Federal Reserve System wire service which provides immediate credit anywhere in the country. Our bank wire system is also available for transferring funds. 20. S tudent Loan Servicing First M in n e a p o lis p io n e e re d in d e ve lo p in g techniques to sim plify the adm inistration of student loan paperwork. By using our Student Loan S ervicing Center, you can profitably free your people for other functions. 21. Bank Forecasting S e rv ice We can provide you with valuable inform ation on where your bank is going, where you want it to go, and how to get there. We can also provide you with m eaningful statistical data on an historical basis that can be used to your advantage in planning for the future. 22. Leasing We have experts in leasing. W ell be glad to advise your bank in finding methods of servicing the needs of your customers on leasing matters. 23. C orporate Cash M anagem ent We w ill be glad to w o rk w ith you and y o u r bank in im proving the cash management of any o f y o u r c o rp o ra te c u s to m e rs fo r th e benefit of your custom ers and your bank. This applies to your corporate custom ers with high sales volume. 24. O ur Total Resources It’s impossible to cover all of our services here. If you have a question that isn’t covered in any of the previous categories, ask us about it. We put our total resources at your disposal. Over 1200 banks ape bringing their questions to First lOinneapolis. Why? Banks from around the region, around the country and overseas —over 1200 of them —are getting help from First Minneapolis. Obviously, they feel we’re providing the answers they need in today’s rigorous business and banking climate. Helpful answers. Profitable answers. And, in some cases, answers that are available only at First Minneapolis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 Illinois News Where do Financial Advisors get their advice about Farm Marketing? HEINOLD FMD MARKETING SYSTEMS Peter J. Fisher has been appointed senior vice president of the Chicago City Bank and Trust Company. Mr. Fisher began his banking ca reer as a proof department clerk in 1937, He rose steadily, and with the exception of three years in ser vice during World P. J. HSHER War II, has spent his entire 38 year career with Chicago City. He serves as executive head of the bank’s securities and investment department. * * * John J. Balko has been appointed senior vice president and trust officer of the Chicago City Bank and Trust Company. Mr. Balko, a graduate of DeP a u 1 University School of Law where he earned a Doctor of Juris prudence degree in 1952, formerly J. J. BALKO held official posts with two Chicago banks. ♦I' -I' Richard K. Pearson has been elected vice chairman and chief executive of ficer of the Seaway National Bank, according to Ernest T, Collins, chair man. Most recently, Mr. Pearson served for six years as vice president and manager of a commercial loan division at the Heritage-Pullman Bank and Trust Company, and prior to that, was senior bank examiner with the Federal Reserve Bank of Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heinold established the FARM MARKET DIVISION to provide a service never before offered to banks and financial institutions... A Systematic Approach To Effective Agri-Marketing. The FARM MARKET DIVISION is staffed by experts. Errol Baxter, experienced agricultural marketing specialist, and Howard Beermann, ag banking specialist, lead the group. FMD is not a brokerage office. Its purpose is to provide information and education on an advisory basis. Price risk management, collateral control and market trends are among a few of the ways FMD can be of assistance. HEINOLD FMD MARKETING SYSTEMS consists of: FARM M A R K E T LETTER —A marketing action publication in easy to un derstand terms. A bi-weekly publication to keep you abreast of current alternatives in the market place. THE IN F O R M E D M A R K E T E R —Exclusive marketing, management and money information that you can use. A monthly update on trends, futures, basis, contracts, risk and capital management. FAR M AR L IN E —Individual counsel by telephone. A consultant at your finger tips. All of this is available to you and your farm customers for only a $50 yearly fee. One call. One piece of information from the letters could more than return your investment. And, it comes from people and a company with vast informational resources to draw upon. Return this coupon to place your order or request a d d itio n a l inform ation. IM7Jf/f I Division of Heinold Companies H E IN O L D C O M M O D IT IE S , IN C . FARM M A R K E T D IV IS IO N 110 W , H ilic re s t D riv e , D e K a lb , III. 6 0 1 1 5 □ H E IN O L D F M D M A R K E T IN G S Y S T E M S C h e c k e n c lo s e d fo r th e e n tire p a c k a g e $50 Per Year P le a s e s e n d m o re in fo rm a tio n N AM E___________ _____________ _ T IT L E BUSINESS NAME ADDRESS CITY---------------------------------------------STATE______________ ZIP PHONE_______________________________________________ NB N orthw estern B an ker, Jan u ary 1976 Our chairm an. And our president. When his judgment tells him your business problem or opportunity could profit by some senior advice, correspondent banking Senior Vice President Paul Lindholm seeks counsel upstairs. With President Jack McHugh and Chairman of the Board Phil Harris. In-depth Involvement, all the way to the top. That's our approach to correspondent banking. And why our approach could make a difference in your business. Next time you want the best answer to a correspondent banking question, call Paul, At (612) 372-8123. We take your business personally. Helping you change things for the better. Q NORTHWESTERN M NATIONAL BANK W Of Minneapolis N orthw estern Banker, Janaary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 Member FD IC 45 Independent State Bank Appoints Noel Busch Minnesota News JOHN 0, CHISHOLM President Rochester T. L. JEFFERS Exec. V.P. M inneapolis To Head Luverne Bank Myron J. Thielges has been elected president and chief executive officer of the Northwest ern State Bank of Luverne. He for merly was senior vice president of the First North western National Bank of Marshall. Joining the Marshall bank in 1955 as insurance M. J. THIELGES manager, he was elected vice president, commercial lending, in 1964 and senior vice pres ident in 1975. Renville Banker Retires O’Connor Bros, State Bank, Ren ville, recently held an open house for Pearl Dusterhoft, assistant cashier, to mark her recent retirement after 24 years with the bank. Mrs. Dusterhoft joined the bank on May 27. 1951, in the bank’s book keeping department. Later she was named teller and then assistant cashier and special services representative. State Bank of Barnum Holds Open House The State Bank of Barnum recently held a week-long grand opening cele bration. The bank has completed an extensive building and remodeling program which included a 15 by 50 foot addition at the rear of the build ing. A drive-in teller also was pro vided. Harold Martin is the bank’s presi dent. assistant manager, commercial loan department; Terry Swenson, commer cial loan officer; Patricia Larson, op erations officer; David Harnish, man ager, instalment loan department; and Daniel O. Johnson, manager, real es tate department. Thomas Lee Holtz has joined the bank as commercial loan officer. He formerly was with the Northwest Bancorporation, Minneap olis, as a credit analyst. Mr. McMillen joined the bank in October of 1972. Mr. Rich came to Hopkins from the State Bank of Vir ginia in 1973. Noel Busch has been appointed executive vice president and managing officer of The Independent Bank of Minnesota. Mr. Busch formerly was executive secretary of the Independent Bankers of Minnesota, a post he had held since October of 1972. independent Bankers of Minnesota was instrumental in the organization of the bank. Mr. Busch’s appointment followed the resignation of H. Lee Fet ters. IMPORTANT NOTICE! We want to publish news any officer or director changes, increases in capital structure, other important action taken at your annual meeting, or any other current news from your bank. Send this news at once to NORTH WESTERN BANKER, 306 Fifteenth Street. Des Moines, Iowa 50309. of Retires at Alexandria Irene Halstead, with the First Na tional Bank of Alexandria for 47 years, has retired. The bank held a re tirement party for her. Ms. Halstead joined the bank in 1928 after graduation from high school. In the following years she was promoted to teller, bookkeeper and in 1972 to assistant cashier. Donald H. Gregerson Funeral services were held recent ly for Donald H. Gregerson, 59, presi dent of the First National Bank of Anoka and former Anoka mayor. Mr. Gregerson had been president of the bank since 1953. Moorhead Bank Names Bowman Assistant Cashier Richard E. Bowman has been named assistant cashier and real estate loan officer at the American State Bank of Moorhead, according to P. J. Canton, president. Most recently, Mr. Bowman was real estate loan officer for the First National Bank, Bemidji, Minn. He obtained a B.S. degree from Bemidji State University in 1967 and following a tour of duty in the U. S. Army was employed as a Minnesota state bank examiner from 1970 until 1973 when he joined the Bemidji bank. Bank of Elk River to Open Hopkins Bank Announces Promotions, Addition Northwestern National Bank of Hopkins has named six staff members to new posts and added one new of ficer. They are Robert J. McMillen, assistant vice president; Robert J. Rich, Jr., assistant vice president and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ARCHITECT’S sketch of the new Elk River Bank, called The Bank of Elk River by the bank. The $240,000 complex is scheduled to be completed by January, 1976. N orthw estern Banker, Jan u ary 1976 Hebei, Clayton L. Johnson, Eric M. Kehle and Richard E. Pringle, as nounced recently the sale of the bank sistant vice presidents, and John M. to J. Robert Stassen, South St. Paul, Schmillen, accounting officer. Mr. Palmer, formerly was a mem and Rollin H. Crawford West St. Paul. They also have purchased 100% of the ber of the man Ehlers Insurance Agency which has agement commit been operating in conjunction with the tee and vice presi dent, financial bank. The West St. Paul State Bank was planning and con founded by Henry Ehlers in 1923. He tr o l/ comptroller. served as president until 1952, when Mr. Borovansky, his son Edwin Ehlers succeeded him, elected an invest and served as president until 1969. ment officer in Messrs. Stassen and Crawford pur 1972, joined the chased the controlling stock of the bank bank in 1962. Mr. R. R. PALMER from the Edwin Ehlers estate, and as Bronk, with the sumed ownership on January 1, 1976. Mr. Stassen, 48, has been a vice president of the Minneapolis-based investment banking firm of Dain, Kal man and Quail, Inc., since 1969. Prior to that he was president of North Cen tral Life Insurance Company of St. Paul. He is a state senator from Dis trict 52 in northeastern Dakota Coun tyMr. Crawford, 35, is a practicing j , J. B O R O V A N S K Y G. H. BRONK attorney in West St. Paul with the firm of Crawford and Anderson, and has been active in numerous civic or ganizations, in addition to being a former mayor of West St. Paul. Mr. Vallerino also announced his retirement as president of the West St. Paul State Bank, effective December 31, 1975. Mr. Stassen assumed the presiden cy of the bank this month and is active C. L. JOHNSON &. W . HEBEI in operating the bank. Mr. Crawford will act as legal counsel for the bank, and also will become a director. ^ Seven officers have been promoted and a new officer has been named at the First National Bank of Saint Paul, according to Philip H. Nason, chair man. They are: Roger R. Palmer, sen ior vice president; Jerome J. RoroR. E. PRINGLE E. M. XËH IE vansky, Gregory H. Bronk, Bruce W. A. Vallerino, president of L ELAND the West St. Paul State Bank, an N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 bank since 1968, formerly was an real estate officer. Messrs. Hebei, Pringle and Johnson previously were invest ment officers and Mr. Kehl was an operations officer. ^ ^ $ First National Bank of Minneapolis has announced the election of Theo dore E. Stark, Jr., to the advisory com mittee of the St. Anthony Falls office. He is president and chief executive of ficer of Dalco Corporation and chair man and treasurer of American Rug Laundry. The bank also has announced the promotion of Robert J. Trbovich to international banking officer. John R. Swanberg, 35, has joined Moore, Juran and Company, Tnc., a Minneapolis in^ v e s t m e n t banking Bank j. r .s w a n b e r g 0f p a u j 5 ]yjr Saint Sw an- berg becomesa vice president with re sponsibilities in sales and underwrit ing. He is a graduate of the University of Minnesota. A. Marie Schwebach recently was honored by the St. Anthony Park Bank at an open house in the bank’s main building. She retired on Decem ber 31. Joining the bank as a secretary in 1943, Ms. Schwebach was named as sistant cashier in 1961, assistant vice president in 1969 and vice president in 1974. 47 Most Bankers in the Midwest choose not to offer Retail service Packages. E ig h t o u t o f te n B a n k e rs p o lle d said th a t th e ir b a n k d o e s n o t o ffe r o n e o r m o re re ta il s e rv ic e p a c k a g e s . O n ly 1 4 % s ta te d th a t th e ir b a n k has p la n s to o ffe r a re ta il s e rv ic e p a c k a g e d u r in g th e n e x t tw e lv e m o n th s . O f th o s e b a n k s th a t do o ffe r re ta il s e rv ic e p a c k a g e s , n e a rly th re e fo u r th s have a im e d th e s e p a c k a g e s at th e g e n e ra l m a rk e t ra th e r th a n at s p e c ific m a rk e t s e g m e n ts . O ffe r P a cka g e s N o w Yes 1 9 % No 80% No A nsw er T o ta l 1 0 0 % 1% W i l l O f f e r P a c k a g e In N e x t 1 2 M o n t h s Yes 1 4 % No 50% U n d e c id e d T o ta l 1 0 0 % 26% N o A n s w e r 10 % M a r k e t S e g m e n ts S p e c ific S e g m e n ts 31 % G e n e ra l P u rp o s e 7 4 % No A nsw er T o ta l 1 0 6 % " 1% Correspondent Bank Division Your bottom line is a ir top priority https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, January 1976 48 Minnesota News tion has been approved by the Comp troller of the Currency. The stock of Matrix, a privately held corporation, will be purchased for an undisclosed amount of cash. Matrix, which is head quartered in San Francisco and has of fices in Los Angeles and New York City, will be operated as a whollyowned subsidiary of First Minneapo lis. PROMOTED a t Fidelity Bank & Trust of M inneapolis are (1st row, I. to r.): Vi Lundgren, v.p. & corp. secy.; Catherine I. Oehu, a.c.; Betty O’Connor, a.v.p.; Virginia B Manaske, mortgage loan officer (2nd row): Caroi Karblick, a.t.o.; Wanda Larson, a.c.; Agnes C. Anderson, a.v.p., and Dixie K. Dabrowski, asst, com ptroller. Vice President Richard L. Parnell again has assumed correspondent bank ing duties at First National Bank in Minneapolis, it was announced by Kenneth A. Wales, vice presi dent in charge of the correspondent bank division. Mr. Parnell previously was in R. L. PARNELL corresp o n d e n t banking at First Minneapolis from 1966 to 1968. In his new position he will have various credit administrative responsibilities, serving banks through out the Upper Midwest. He is a native of St. Paul and a graduate of St. Thom as College. He joined First Minneapo lis in 1957, and, after advancing through instalment loan and credit posts, became a member of the corre spondent bank division. For the past several years, he has been in the com mercial banking group, working with a wide range of industry categories. * H * * George Dixon, chairman and presi dent of the First National Bank of Minneapolis, has announced that the bank has agreed in principle to pur chase the common stock of Matrix Leasing International, Inc., a major lease underwriting firm. The acquisi- DON’T /® ß When you need bank supplies . . . Call John Rasmussen in Willmar, Minn., one of our experts in bank print ing and supplies, o r . . . Call US at ITS, Uniteti Stales Check Book Company P.0. Box 3644 Omaha, Nebraska 68108 N o rth w e ste rn B a n k e r, Ja n u a ry 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (402) 345-3162 Albert J. Hofstede, former mayor of Minneapolis, has joined the Northeast State Bank of Minneapolis as vice president of residential a n d commercial d evelopm ent, ac cording to Walter C , Rasmussen, Sr., president. Mr. Hofstede’s p r imary duties will A. J. HOFSTEDE be in the areas of community and business development financing. He also will be an officer of two related holding companies, North east Securities Corp. and Guaranty Se curities Corp. Mr. Hofstede, 35, was elected may or of Minneapolis in 1973 and lost in his re-election bid last November by 514 votes. From 1971 to 73 he was chairman of the Twin Cities Metro politan Council. ❖ ❖ ❖ G. Richard Slade, president of the Northwestern National Bank of Saint Paul, h a s an nounced several elections and pro motions. T h e y are: Peter R. Bari li ng to assistant vice president and manager of the marketing depart ment; Joanne N. Kreyer and Carol P. R. BARTLING L. Warner to op erations officers, John G. Adams to as sistant trust investment officer, and Jerry F. Gudmundson to assistant cor porate trust officer. Mr. Bartling joined Northwestern in 1974 as a marketing officer and man ager of that department. He holds a master’s degree from the University of Southern California and also received a PMD certificate from Harvard Uni versity’s Graduate School of Business Administration. M innesota 49 News 13th Annual Northwestern of Minneapolis Management Meeting By MALCOLM FREELAND Publisher ANNOUNCED — Paul Lindholm, sr. v.p. (le ft), has taken on additional m anage m ent duties w ithin the bank, and Harry G. Wahlquist, v.p., has been nam ed a d m inistrative head of correspondent d e p artm en t under Mr. Lindlholm’s direction. THEME of Conference, ‘ Helping You M anage in 1 9 7 6 ," being discussed by Curt Mateer, vice chrnn., Pierre Natl. Bk., Pierre, S.D.; Richard H. Vaughan, pres., N.W. Banco, M in neapolis, James Smith, com ptroller, and John Moorhead, sr. chrnn., N.W. Natl. Bk., M in neapolis. Com ptroller Sm ith told delegates th a t banks m ay be losing a com petitive edge due to strife within the industry. He referred to the decision m ade Decem ber 10 by Federal District Court Judge H ubert Will th a t under the National Banking Act a bank m ay legally provide only w ithdraw al service through CBCTs. (See page 2 of Decem ber 15 N ew sletter). He emphasized th a t irrespective of rumors he is not leaving the job as C om ptroller. Currently, his office is updating m any of its procedures. ECONOMIC OUTLOOK was given by Dr. Sung Won Son, econom ist for host bank (le ft). See article in Decem ber 2 2 NEW S LETTER. Charles Gesme, v.p., bond de p artm ent, (right) said th a t in 1 9 7 6 the prim e rate will average 8 % and Fed Funds 6 1 / 2 % . He indicated th a t "staying sho rt” will give banks an opportunity to step in to m eet anticipated heavier loan dem and. 1RECEPTION finds Bob Arneson, Am erican St. Bk., Edina; Jack McHugh, pres., host bank, and Bob’s father, Mark Arneson, pres.. Clear Lake Bk. & T r., Clear Lake, la. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHECK collections and float control were described by Wencel Johnston, v.p., host bank, shown at left. Correspondent telle r training programs, now being offered by N.W N atl. Bk., w ere outlined by James Gossen, v.p., host bank, shown in center, George R. Slaughter, sr. staff planner, Northw est C om puter Services, right, told delegates about "O n-line with the C om p uter." VIKING S described the 1 9 7 5 football season. Shown from left are: Dave Osborn, Bob by Bryant, and Ed M arinaro. N orthw estern Banker, Ja n u a ry 1976 50 Richfield Bank & Trust Bus Service to Customers and Employees Bank & Trust Co., in R ICHFIELD suburban Minneapolis, has kicked off a new service, that may be a first in the nation, with a catchy ad vertising slogan “RTB to RBT.” The initials stand for “Ride the Bus to Richfield Bank & Trust.” The bus is not, however, a public one, but the bank’s own. It’s a 15 — passenger, fire engine red van with radio equip ment that links it to a dispatching unit back at the bank. Gall ( 612 ) 291-5659 ■ Tax exempt bonds ■ Short term tax exempt notes ■ U.S. Treasury and Agency Obligations ■Commercial paper ■ Negotiable Certificates of Deposit ■ Repurchase agreements ■ Portfolio Advisory Services ■ Portfolio Computer Services Investment Services Group Member F.D.I.C. N orthw estern Banker( January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 The ad says, “Now if you need transportation to our bank -— just call 861-7355 and we will pick you up at your home ■ — deliver you to our bank —- and return you to your home. Who could ask for anything more? And it's free.” The new service is the brainchild of William G. Kirchner, chairman of the board and a veteran Minnesota legisla tor who has served on several legisla tive committees dealing with trans portation. F. C. (Fritz) Edmunds, vice presi dent and cashier and the man responsi ble for the day-to-day operation of the bus, terms it a “visionary concept.” He notes that the bus will be used to de liver some employees to and from work, as well as transport customers, thus reducing the number of vehicles on the road and saving gasoline. Retires at M aple Lake, Palm er Named President Lloyd Brandsrud, president of the Security State Bank of Maple Lake, recently retired after 40 years in the banking business, His stock in the bank was sold to George Palmer, for merly a correspondent banker with the Northwestern National Bank of Min neapolis. Mr. Brandsrud joined the bank in January of 1945 as assistant cashier. He later was promoted to cashier, a position he held until 1970 when he was elected president. Mr. Palmer has been with North western of Minneapolis for the past 12 years. To Head Fergus Falls Bank Robert D. Phillips has been named president of the Northwestern Nation al Bank of Fergus Falls. He suc ceeds Douglas M. Johnson who is leaving to become president of the F i r s t National Bank of Moor head. Mr. Phillips has been vice presi# 0 PHItuM dent of the First National Bank of Aberdeen managing its Britton, S. D., branch since 1964, and has been affiliated with Northwest Bancorporation since 1960. 51 Stars The Man! The Banker’s Banker Can a man named Stan be all w e say he is? He can if he’s a C orrespo ndent Banker for M idland National Bank. H e’ll give you fast service, advice based on years of e xpe rience and the backing of M idland National Bank’s fam ous “ Action Banking Team !’’ So, w h e th e r it’s loan participation, investm ent advice, data p ro cessing, transfer of funds, transit collections, access to federal funds or any o ther service . . . S tan’s yo u r man. Call our Action Banker, Stan Peterson at (612) 3 7 2 -7 1 0 0 . H e’s the banker’s banker. Midland national bank An Affiliate of Northwest Bancoporation M e m ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M l BANCO 401 SECOND AVENUE SOUTH MINNEAPOLIS, MINNESOTA N o rth w este rn Banker, Ja n u a ry 1976 52 to operations officer, main office, Rapid City. South Dakota Onida Bank Celebrates 50th Anniversary News TED SCH AN ZIN BACH P resid en t J. I. MILTON SCH W ARTZ S e c re ta ry S elb y Huron To Head Huron Office Of N a tl Bank of S.D. Ron Campbell has been elected vice president and manager of the Huron branch of the Na tional Bank of South D akota, Sioux Falls. He succeeds C. R. (Art) Weaver who is leaving banking to pursue other business interests. Mr. Campbell, previously a vice R. CAMPBELL president in the eastern division in Rapid City, began his banking career at the Citizens Bank in Vermillion while attending the Uni versity of South Dakota. In 1951 he joined the Rock County Bank in Luverne, Minn., and in 1955 the Hastings National Bank, Minn. In 1960 he was elected vice president of the Rapid City National Bank which subsequently merged with the National Bank of South Dakota in 1968. Officer Training Seminar Scheduled for May 23-28 The second annual session of the SDBA Officer Training Seminar has been scheduled for May 23-28, 1976, on the campus of the University of South Dakota, Vermillion. The semi nar is open to officers and employees of member banks of the South Dakota Bankers Association. The goal of the seminar is to assist South Dakota banks in preparing ju nior officers and employees with lead ership and management potential for advancement through exposure to a learning experience utilizing the case method and lecture method. Curriculum for the week-long semi nar will include, but not be limited to, bank lending, communications skills, investment procedures and policy, bank marketing, rural lending and banking law. All class work and re lated activities take place on the Ver million campus. Tuition is $150, which N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 7Ú includes meals, faculty costs, housing and instruction materials. The SDBA has sent registration ma terials to banks. Class size is limited to 40 participants. Northwest Ag Credit Co. Elects Hermann President Gary A. Hermann has been elected president and chief executive officer of Northwest Agricultural Credit Com pany, Sioux Falls, a wholly owned sub sidiary of Northwest Bancorporation. Mr. Hermann succeeds Dale Ander son who was named senior vice presi dent of the Northwestern Bank of Helena, Mont. Chester C. Lind, an executive vice president of Northwest Bancorporation, was elected chairman of the company, replacing John A. Sweeney, who retired. Mr. Hermann joined the First Na tional Bank of Mason City, la., as an agricultural representative in 1965. He was named vice president in 1969 and head of the commercial loan depart ment in 1974. IMPORTANT NOTICE! We want to publish news of any officer or director changes, increases in capital structure, other important action taken at your annual meeting, or any other current news from your bank. Send this news at once to NORTH WESTERN BANKER, 306 Fifteenth Street, Des Moines, Iowa 50309. National Bank of S. D. Announces Changes Nels E. Turnquist, president and chief executive officer of the National Bank of South Dakota, Sioux Falls, has announced the advancement of Peggy Driscoll to operations and per sonnel officer, South Branch, Sioux Falls, and the election of Juanita Fish The Onida Bank recently celebrated its fiftieth year in banking with an open house. Coffee and cookies were served all day and gifts were given away. The bank opened July 6, 1925. Chas. L. Hyde is chairman; Francis M. Ryan, vice president, and John Owens, manager and cashier. Northwestern Bank Tells Staff Changes at Huron Gary G. Olson has been elected vice president and manager of Northwestern National Bank’s H u r o n branch, according to C. A. Lovre, chair man and chief ex ecutive officer. Mr. Olson, form e r 1y assistant vice president and assistant manager a t Huron, r eG. G . OLSON places William T. Larson, who accepted a position as senior vice president, First National Bank and Trust Company, Fargo, N. D., also a Northwest Bancorpora tion affiliate. Mr. Olson, a graduate of South Da kota State University, joined the bank in 1963 as agricultural representative. He went to the Madison office as as sistant vice president andassistant manager in 1967and returned to Huron in the same position in 1969. National Bank of S. D. Names Vice President James D. Hausman has been ad vanced to vice president and trust of ficer of the Na tional Bank of South D akota, Sioux Falls, ac cording to Nels E. Turnquist, pres ident and chief executive officer. Mr. Hausman has a law degree from the Univer J. HAUSMAN sity of South Da kota. After spending two years with the Comptroller of the Currency, he joined the bank in 1968. He was elected as sistant trust officer in 1969 and assis tant vice president in 1973. 53 Association (ABA) as certified com mercial lenders (CCLs). North Dakota News G . C . ANDERSON Presid en t Tio ga W . j , OANER S e c re ta ry Bism arck Elected I BAA Director Jamestown Hosts Management Conference TP HE North Dakota Bankers Association’s 15th Annual Bank Manage ment Conference will be held January 28-29 at the Ramada Inn in James town. An all-day seminar on federal banking legislation has been added to make this a full, two-day affair. The program outline includes the follow ing: Wednesday, Januar\ 28 A.M. 10:00 Seminar on Equal Credit Op portunity Act, Regulation B, Fair Credit Billing amendment to Regulation Z. Office of Gen eral Counsel, Federal Reserve Bank of Minneapolis, will con duct the seminar, concluding at 4:30 p.m, P.M. 6:00 Reception, smorgasbord dinner and dance. Thursday, January 29 Topics: EFT in Nebraska—Kermit Hansen, president, NETS, Inc.; chairman. United States National Bank, Omaha. Procedures under the new Uniform Probate Code. CPA views on financial statements and bank relations. Political activity. NDBA bank advertising programs. Update on laws, legislation and regula tions. Increases Capitaf H. L. Thorndal, president of the Bank of North Dakota, Bismarck, re ported the North Dakota industrial Commission (which is the governing board of the bank) has authorized the bank to increase its capital from $6,000,000 to $8,000,000 by a trans fer from undivided profits. Jamestown National Sank Completes Remodeling The Jamestown National Bank has announced the completion of its re https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis modeled and enlarged quarters, ac cording to H. F. Buegel, Jr., president. The addition contains 15,910 square feet and future expansion area of ap proximately 3,300 square feet on the second floor. Access to this area is by elevator which connects all three floors. The bank has been remodeled and has 12 new teller stations on the south side and the officers’ section on the north side. The rear entry was en larged and the parking lot relocated behind the bank. A new auto bank has been open since last July. Construction was be gun during September of 1974. Joins Fargo Bank Leonard M. Jorgenson, president of the State Bank of Kenmare, has been elected to a three-year term as North Dakota director of the Independent Bankers Association of America. He will represent 1BAA member banks in the state on the association’s executive council. Jamestown Bank Names Agricultural Representative uenms j . Kenner nas been named agricultural representative at the First National Bank of Jamestown. Mr. Renner, a native of Mandan, is a 1971 graduate of North Dakota State Uni versity with a B.S. degree in agricul tural economics. » . J. RENNER B e f0 re C O m in 8 t 0 Jam estow n he was associated with the Farmers Home Administration in Devils Lake and Ft. Yates. William T. Larson has joined the First National Bank and Trust Com pany of Fargo as senior vice presi Elected at Bismarck dent. He formerly R. P. Hendrickson, chairman of the was president and First National Bank and Trust Co. of manager of the Bismarck, has announced the election Huron branch of of Stanley E. Foss to vice president Northwestern Na and agricultural representative. tional Bank, S. D. Mr, Foss began his banking career Mr. Larson, a as agricultural representative at the graduate of the Jamestown National Bank in 1968. He U niversity of was elected assistant cashier and agri W . T. LARSON Minnesota, began cultural representative in August of his career with Northwestern at Dell 1968 and assistant vice president and Rapids in 1962, went to Huron as as ag rep in January of 1972. sistant manager in 1966, and has been president and manager there since 1969. Increases Capital Bank of Turtle Lake has increased its capital stock from $100,000 to $200,000 by stock dividend. Bismarck Banker Named CCL H. L. Thorndal, president of the Bank of North Dakota, Bismarck, was one of more than 100 bankers from across the nation who were recently recognized by the American Bankers IMPORTANT NOTICE! We want to publish news ©f any 'officer or director changes, increases in capital structure, other important action taken at your annual meeting, or any other current news from your hank. Send this news at once to NORTHWESTERN BANKER, 306 Fifteenth Street, Des Moines, Iowa 50309. N orthw estern B a n k e r, Ja n u a ry 197 û 54 of the present three. Also included are four private offices. Wyoming News H. H. W ATT President R iverton M . C. MUNDELL S e c re ta ry La ra m ie W yom ing N ational, Casper, Adds 2 to S taff R. W. Miracle, president of The Wyoming National Bank of Casper, has announced the addition of two to the bank’s staff. Dennis R. Troyer has joined the bank as assistant vice presi dent and data processing manager and Tommie D. Coon has joined as as sistant vice president, real estate loan department. Mr. Troyer comes to the bank with Elected at Rawlins eight years experience in data process ing and operations. Most recently he was department head of bank services and operations officer at Glenview State Bank, III. Mr. Coon comes from Greeley, Colo., where he owned and operated the Columbine Mortgage Company which specialized in commercial real estate. Prior to entering his own busi ness, Mr. Coon was a member of the board and vice president in charge of mortgage lending with Northern Colo rado Savings in Greeley. Tom Cobb has been elected to the board of directors of the First Nation al Bank of Rawlins. Mr. Cobb, a Savery rancher, is on the Carbon County School District No. 1 board and is a past president of the county and state levels of the Farm Bureau. John Reed Funeral services were held recently for former Wyoming state bank ex aminer and bank president, John Reed. Mr. Reed, 83, was appointed state bank examiner in 1927 and served un til 1932. He later moved to Kemmerer where he became president of the First National Bank. Prom oted at G illette State Bank of M organ Plans New B u ild in g D. R. TROYER T. D. CO ON State Bank of Morgan is planning a new bank building in downtown Morgan in early 1976, according to M. L. Kuhn, president. The plans include a 60 by 70 foot structure which will provide twice as much area and five windows instead Mr. Hoss began his banking career in 1969 with Dakota Northwestern Bank of Bismarck, N.D. A graduate of North Dakota State University, he served in various capacities at First National Bank and Trust Company of Fargo while attending school. He had been assistant real estate manager of the Fargo bank. Montana News A. F. W IN EGARDN ER i . T. CADBY P resid en t S e c re ta ry Billings H elen a BAI G lacier C hapter Elects 1976 O fficers Duane Voeller, vice president and cashier of the First Westside National Bank in Great Falls, recently was elected president of the Glacier chapter of Bank Administration Institute. He will begin his term on July 1, 1976. Other officers elected include: vice president, Robert E. Lindquist, comp troller, Northwestern Bank & Union Trust Company, Helena; treasurer, Roger W. Korner, vice president in charge of operations, Montana Bank, Great Falls, secretary, Heleyn Kauf man, assistant vice president, Valley State Bank, Billings; and directors, N orthw estern B an k er, J a n u a r y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First National Bank of Gillette has named two new vice presidents: Louise Lyngby Stillman and Joseph Sestak. Mrs. Stillman has been with the bank for five years as assistant vice president. Mr. Sestak, a retired Air Force colonel, has been a loan officer at the bank for a little over a year. 19 7 6 Betty Lindstrom and Lyle Sundíne. Ms. Lindstrom is assistant vice presi dent, Federal Reserve Bank of Min neapolis, Helena Branch, and Mr. Sundine is vice president and cashier, First National Bank of Great Falls. J. L. Hines, vice president and cashier of the First National Bank of Glasgow, currently president of the Glacier chapter, will be installed as a director on July 1. Named C re d it O ffice r At Great Falls Bank Christopher Hoss recently was named credit officer of the commercial credit department at Northwestern Bank of Great Falls. S ecurity BancShares A cq uisitions Security BancShares of Montana, Inc., the one-bank holding company of Security Bank, N. A., Billings, has received Federal Reserve approval to acquire respectively 100% (less direc tors’ qualifying shares) of the voting shares of Big Horn County State Bank, Hardin, and of Security Bank of Colstrip. The proposed acquisitions are mere ly changes in form of ownership as the principal stockholders of Security BancShares are the present individual owners of 100% of the voting shares of the Hardin and Colstrip banks. The Hardin bank was acquired by purchase 55 in December, 1972, and the Colstrip bank, a new bank, was opened in May, 1975. Appointed at Great Falls James R. Almond has been appoint ed vice president of the agriculture business depart ment of First Na tional Bank of Great Falls. M r. Almond, who served previ ously with t h e F i r s t National Bank of Miller, S D., as vice p resid en t and agriculture repre sentative, is a Montana native. He at tended Montana State University and received his B.S. degree from Rocky Mountain College, Billings, and his M.S. degree from North Dakota State University. His major was agricultural economics. Errol F. Galt Funeral services were held recently for Errol F. Galt, retired Great Falls banker. Mr. Galt began his banking career in 1916 when he became one of the founders of the F i r s t National Bank of Geyser, which opened in 19 17. He re mained as i t s E. E. GALT managing officer News M W ATRO U S G. L. SCARBQRO P res. Bush Ix e c . M gr. D en ver Mountain Banks, Ltd. Announces Changes F. O’Neil Griffin has been elected chairman and chief executive officer of Mountain Banks, Ltd., in Colorado Springs. Mr. Griffin formerly was vice chairman of the First City Bancorporation of Texas, Inc., Houston, a bank holding company anchored by the First City National Bank, Houston. Robert Leavitt has been elected president and a director of Mountain Banks. He was senior vice president of First City Bancorp., and president of First City Life Insurance Co. In addition, the Colorado Springs holding company announced that Mr. O’Neil and several associates have completed the purchase of 42% of the holding company’s common stock. Mr. Griffin succeeds Weldon B. Hamilton as chairman. Mr. Hamilton was elected honorary chairman. Mr. Leavitt replaces George L. MacGre gor, Jr., who resigned as president, chief executive officer and a director of Mountain Banks. Elected directors in addition to Messrs. Griffin and Leavitt are Steph en Adams, owner of Central States In vestment Co., Bartlesville, Okla., and general manager of Val Farms, Wray, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis To Head Missoula Chamber of Commerce The Missoula area Chamber of Commerce has elected Earl W. John son as president for 1976. Mr. John son is president of the Southside Na tional Bank. Mr. Finnin is manager of the bank’s financial information section. A gradu ate of the University of Denver, he has been with the bank since 1965. Formerly a commercial banking of ficer, Mr. Speas administers a loan portfolio in the bank’s enterprise mar ket, which serves growing and inde pendent businesses. Colorado w. until it was liquidated in 1935. He moved to Great Falls in August of 1933 and later that year was ap pointed livestock loan officer at the First National Bank and assistant to its president. In 1934 he was appointed a vice president. Mr. Galt served as president from 1947-1954 and chair man from 1954-1967, He continued as a consultant to the bank after his re tirement in 1967. Colo.; Thomas C. Brown, president of Tome Brown, Inc., Midland, Tex., and W. C. Norman, Jr., Houston. Elected at Denver George P. Heinrich has been elected vice president of Colorado National Bank, Denver, according to Peter Grant, president. Mr. Heinrich, who is responsible for administrating the BankAmericard Center at the bank, joined Colorado National in 1969. IH CHIMBO ...tue bist mm fa r le x e r ! e e e e m ■ Spacious suite with its own all-electric kitchen/bar. Installs Poison Information System at Lakewood Hospital Jefferson Bank and Trust, Lakewood, recently installed POISÏNDEX at Jefferson County’s Lutheran Hospi tal. This is a single source, computer generated system of poison informa tion. It offers the most current and complete poison information available, coupled with instant retrieval of the most advanced techniques in poison management and treatment. ■ Complimentary continental breakfast served in your suite. • 1300 N. ASTOR ST. CHICAGO, IL L . 60610 W illiam C. W olf, Gen. Mgr. (312) 943-1111 30 FLOORS OF DRAMATIC SUITES & MASTER BEDROOMS where you dine in elegance Two Promoted at United Bank of Denver The promotions of Richard H. Finnin and E. Ctey Speas to assistant vice presidents at United Bank of Denver have been announced by John D. Hershner, chairman and president. e ie tie e s de P A R I S STOR TOW ER \ HOTELS/ N orthw estern B an ker, Ja n u a ry 1976 56 If you have been doing business with the U.S. National Bank you had a Merry Christmas If you start doing business with the U.S. National you wi 11have a happier New Year! _ US National .jAeers/ BANK OMAHA, N EBRA SKA N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 57 Nebraska News ROBERT E, BURKLEY R. E. HARRIS P resid en t Fa irb u ry Ex ec. M gr. Lincoln bank now has more than $10 million in assets. Officers are John Lauritzen, president; Jens J. Jensen, executive vice president; Ryan Bloomquist, vice president and cashier, and Larry John son, assistant cashier. Falls City Bank C om pletes Expansion Tekamah Bank Opens in New Building n P H E First National Bank of Tekarnah recently opened for busi ness on new soil for the first time in 98 years of continuous business, accord ing to Wayne M. Thorndyke, presi dent. The new two-story building is 90 feet wide and 74 feet deep, containing 6,660 square feet of floor space on the main floor and 5,550 square feet on the second floor. The exterior panels are “Medusa White” reinforced concrete, and were designed with a triangular arch at top and bottom instead of the traditional curved arch to give the building its dis tinctive appearance. This same design was carried out in the decorating scheme throughout the interior of the building. The main lobby soars 22 feet high to the second floor ceiling. Light fix tures in five foot coffered squares in the ceiling give the effect of 28 sky lights. There are five teller stations center ing the main floor surrounded by six executive offices. The First National Insurance Agency also is on the ground level with direct entry from the bank parking lot, as well as the main lobby. The second floor contains additional office space, the director’s room, em ployee’s lounge, and a large communi ty room with adjoining kitchen for din ner seating of over 100 people. Open house for the bank’s custom ers was held on Saturday, December 6. Between 2,500 and 3,000 people were taken on guided tours from 9 a.m. to 5 p.m. Some 3,700 door prizes were given to young and old. In addition, 2,400 people consumed 700 lbs. of beef at a free bar-be-que lun cheon. Correspondent and surrounding area bankers were invited to view the new bank building on Sunday, Decem ber 7. About 200 attended. Designer and general contractor was Structural Designs, Inc., Holstein, Ta. Security equipment was by LeFebure, Cedar Rapids, Ta. An open house marked completion of an extensive remodeling and expan sion program undertaken by the First National Bank in Falls City. Joins Elkhorn Bank Don Trouba has joined the Bank of Elkhorn as vice president. Mr. Trouba, a native of Dwight, began his career with the Dwight Cooperative Credit Association in 1954 as a bank officer. In 1961 he joined the State Department of Banking as a senior bank examiner. His tenure with the state agency was 14 years, interrupted by a 10 month period in which he served as an assistant vice president for the Douglas County Bank of Omaha in 1969-70. Joins York Bank IMPORTANT NOTICE! We want to publish news of any officer or director ch a n g es, increases in capital structure, other important action taken at your annual meeting, or any other current news from your bank. Send this news at once to NORTH WESTERN BANKER, .306 Fifteenth Street, Des Moines, Iowa 50309. Open House at B loom field The Farmers & Merchants State Bank in Bloomfield held an open house to mark the occasion of its 80th anniversary. Founded in 1895, the The First National Bank of York has announced the addition of Merlyn Minderman to its staff as vice president and senior loan officer. Mr. Minderman formerly was with Gateway Bank at Lincoln. Roscoe Lyons Rice Funeral services were held recently for Roscoe Lyons Rice, 78, co-founder and president of the American Nation al Bank of Creighton. Mr. Rice prac ticed law in Creighton from 1922 until his death. He received his law degree from the University of Chicago. Schuyler Bank Elects Sobota D ire ctor Emil Sobota has been elected a di rector of the First National Bank of Schuyler, succeeding the late Gerald Ehernberger. Mr. Sobota is president of Century Farms, Inc., a family farm corporation with which three of his sons also are affiliated. Joins Loup City Bank SHOWN is the new First National Bank of Tekam ah. The bank opened in its new facility in Decem ber. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Larry Nelson has joined the Sher man County Bank of Loup City as vice president. He formerly was branch bank manager of the United National Bank in Canistota, S. D. N orth w estern Banker, January 1976 58 at a bank grand of “Gunsmoke” TV fame, strapped on a six-gun along with Omaha City It happened recently when Festus Council member Monte Taylor and Betty Abbott for a quick-draw ribbon cutting contest in celebration of the grand opening of Northwestern Na tional Bank’s new permanent facility, located at 96th and L Streets. Festus, alias actor/singer Ken Cur tis, was on hand to sign autographs all day. The ribbon, which consisted of twenty $10 bills, was donated to the Omaha Girls’ Club by Ed Kohout, bank president, and John Krajicek, manager of the new facility. The facility, which has 3,500 square feet, features five indoor tellers and six drive-up tellers. * * * Janies W. Rimmer, president of the Gate City Steel Corporation, has been named a director of the United States National Bank, according to Kermit Hansen, chairman. The appointment raises the number of board members to 23. Mr. Rimmer began his career in the NW NAT’ L pres. Ed Kohout takes Festus steel industry in 1940 with United into custody as they prepare for a quickStates Steel Corporation. In 1963 he draw contest, the ribbon cutting. H O O T-O U T ASopening? joined Gate City Steel as vice presi dent in charge of sales. He rose to vice president and general manager of the Omaha plant in 1964 and executive vice president in 1967 and president ki 1972. * * * Lee Sapp has been elected a director of Center Bank. He is a partner with his three brothers in several business es, including Sapp Bros. Truck Plaza, Sapp Bros. Heavy Trucks, Sapp Bros. Leasing Inc., and Sapp Bros. Ford Center, Inc. MACHA Is Largest ACH The Mid-America Automated Clearing House Association has signed over 1100 banks, making the ACH the largest in the United States in terms of the number of participating banks. “We are gratified by the foresight and enthusiasm of Mid-America bankers,” said Frank Boesche, presi dent of MACHA. “These banks are prepared now to handle the growing volume of transactions flowing through the system and, most important, they can offer customers the most up-todate electronic payment services.” There are 1844 banks in MACHA territory, and most of those who have not signed indicate they are in the pro cess of completing the necessary pro cedures. For many banks, there was a sense of urgency to complete sign up by year-end since fees for joining MACHA doubled on January 1, 1976. Other banks are joining now be cause they are realizing those who are members of MACHA have a competi tive edge over those who have not joined, Mr. Boesche stated. This is particularly true, he said, in communi ties where one or two of the banks al ready have begun to offer direct de posit of payroll and automatic debit and credit services. Joins York Bank Dean Sack, president of the York State Bank, has announced the addi tion of Donald A. Haerry to the bank’s staff as vice president and trust officer. Mr. Haerry has served as trust of ficer at the First National Bank of Dal ton, Ga., as well as the Security Na tional Bank of Springfield, Mass. Orig inally from Schenectady, N. Y., he was graduated from Albany Business Col lege in Albany, N. Y., and also at tended Russell Sage College of Albany. N orth w este rn Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 59 NUC National Hank of Commerce The People Place Main Bank 13th and N Sts., Lincoln, Nebraska WATS Line: 800-742-7317 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn Banker> Ja n u a ry 197$ 60 N ebraska N ews Robert W. Johnson Joins State Bank of Benkelman Lee U. F. Gallatin, president and cashier of the State Bank of Benkelma n , has an nounced the elec tion of Robert W. Johnson as execu tive vice president and director, ef fective February 2. Mr. Johnson will assume the duties left vacant by the death last ». W . JO H N SO N year of Ray M. Mr. Johnson joined First National Bank of Lincoln in October, 1966, was elected assistant vice president in De cember that year, and was advanced to vice president in June, 1968. He has been associated with the correspondent bank department during his nine years with First National Lincoln. A 1952 graduate of the University of Nebraska, Mr. Johnson served in the United States Navy until 1956, then farmed in northwest Missouri un til 1962 when he joined the First Na tional Bank of Denver. He was as signed to that bank’s correspondent bank division in May, 1964, and was promoted to assistant cashier in Janu ary, 1965, continuing in that division until joining First National Lincoln. Fed of Kansas City Elects Two to Board James M. Kemper, Jr., chairman and president of Commerce Bancshares, Inc., Kansas City, and Alan R. Sleeper, lawyer and stockman of Alden, Kans., have been elected directors of the Federal Reserve Bank of Kan sas City, according to Robert T. Per son, board chairman. Their three-year terms began January 1. Mr. Kemper was elected to the 9member board by the large Federal Reserve member banks in the Tenth District—about 75 banks with capital and surplus of $3 million or more. Mr. Sleeper was elected by the medium sized District member banks—about 275 banks with capital and surplus of from $700,000 to $3 million. The Dis trict includes Colorado, Kansas, Ne braska, Wyoming, most of Oklahoma and New Mexico, and 43 counties in western Missouri. Mr. Kemper succeeds Roger D. Knight, chairman of the board. United Banks of Colorado, Inc., Denver, who has been a director since 1970. Mr. N orthw estern Banker, Jan u ary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 Sleeper succeeds C. O. Emrich, presi dent of C. O. Emrich Enterprises, Nor folk, Nebr., who has been on the board since 1968. New President at Hildreth Ken W. Frerichs was recently elect ed president of The State Bank of Hildreth and Art Fritson was advanced to cashier. Mr. Frerichs had been vice president and cashier. Mr. Fritson pre viously was operations officer and auditor. K. W. Frerichs (le ft) and Art Fritson. Mr. Frerichs fills the vacancy cre ated by the death in October of Julius H. Mietzner, who had been president of State Bank for many years. Earlier in 1975, George C. Soker, former pres ident and long-time chairman of the board, also died. Mr. Frerichs joined The State Bank of Hildreth in May, 1948. He is a graduate of the Wisconsin Graduate School of Banking at Madison, past president of the BAI South Central Nebraska Conference, and past presi dent of the South Central Nebraska Ag Credit Group. He has been Mayor of Hildreth for the past 15 years and holds the title of co-manager of the Sowntown Hildreth Golf Course. Mr. Fritson was graduated from Kearney State College in 1968 and joined The State Bank in December, 1971. He has attended the Nebraska Bankers Association basic and inter mediate schools of banking in Lincoln. of Bank Marketing also to be held at the University. Emphasis will be on teaching busi ness development skills such as effec tive letter writing, retention selling and closing the sale to trust personnel. Lec tures, selling skill sessions, case exam ples and extensive video tape practice will be used. Joins North Platte Bank Donald G. King has joined Ameri can Security Bank of North Platte and has been elected a s s i s t a n t vice president, accord ing to E. Dean Niedan, chairman of the board. Mr. King has been designated an in stallment loan of ficer and will as sist in the opera tion duties of the bank, Mr. Niedan said. A native of Algona, la., Mr. King has been installment loan officer the past three years at the First National Bank of York, Nebr. Prior to that he was with Avco Financial Services seven years in the firm’s offices in Algona and Waterloo, la., and McCook and York. He began his duties with Ameri can Security Bank December 29. Commerce Bancshares, Inc., Will Repurchase Shares Directors of Commerce Bancshares Inc., Kansas City, Mo., have deter mined to continue the program to re purchase shares of the bank holdin company’s common stock. Under th program initiated in November, 1974 management initially was authorized t purchase up to 100,000 shares of th company’s stock at prices not to ex ceed the then current market price The board of directors last monff authorized the purchase of an addi tional 100,000 shares following th original guidelines. A company spokes man said the action was taken “be cause the board believes that the pur chase of the stock at today’s prices i BMA To Introduce a good investment for the company. New Trust School The manner of purchase will be i The Bank Marketing Association line with proposed SEC guidelines. will offer a new School of Trust Busi ness Development and Marketing in New Blue Hill Executive David L. Schomburg has bee 1976. The intensive one-week curriculum named executive vice president of th will be offered May 30-June 4 at the Commercial Bank, Blue Hill. He h University of Colorado at Boulder. It been with the Commercial Nation will run concurrently with BMA’s Es Bank and Trust Company, Gran sentials of Bank Marketing and School Island. 61 Electronic Funds Transfer System (EFTS) with Point of Sale (POS) teleprocessing Direct file inquiry through a cathode ray tube Integrated central information file Magnetically coded card Consolidated statement of accounts for individual customers ( j) system does it alL ® It'S a practical system ready for you to implement, © © It identifies total customer relationship, It's a new marketing tool. For a free brochure on the details, applications and advantages of putting ® system to work In your bank, just send this coupon to; Correspondent Bank Department First National Bank one first national center Omaha, Nebraska 68103 S" ' 1 '‘eorcisKa can us loll i-ree at 800-642-9907. From States adjacent to Nebraska call us Toll Free at 800-228-9533. name position __________ _________________ first n a t i o n a l b a n k of omaha you're in first na tio n a l territory m em ber F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bank n a m e _______________________ bank address _____________________ city — — --------------------------------state 62 Bank and Trust Co. Mr. Hittner has been in banking for 15 years and is a graduate of the University of Nebraska at Omaha. Lincoln News W ym ore State C elebrates W ith Open House The new 40th and South location of National Bank of Commerce is open for business. The detached facility, Parkway Of fice, is a contemporary brick building with an open lobby glassed on the north and south. The 4,903 square foot, two-story building was designed by Geller Design Studio in Lincoln. General contractor was George Cook Construction, Lincoln. Featured is the introduction of “Bank-in-The-Box,” the NBC’s first day or night automated teller device. The bank held a grand opening cele bration in December designed around the new teller machine. In conjunction with the festivities, NBC gave away ap proximately $3,000 in cash and “Nite on the Town” gift certificates. Jim Williams, assistant vice presi dent, is in charge of the facility. He formerly was a computer service offi cer in the information management di vision in the computer center. ^ ^ Jett I). Hoimberg has been elected loan officer and Amelia Gandara op erations officer of Citibank & Trust Company, according to Roger L. An derson, chairman. Mr. Hoimberg, 26, has a B.S. degree in business administration from the Fort Hays Kansas State College. Prior to joining Citibank 18 months ago, he was with NALAC Financial Plans, Inc. Mrs. Gandara began her banking career at the First National Bank of Lincoln in 1950. She joined Citibank in 1974 after spending 12 years at Gateway Bank. * * * Funeral services were held recently for Alvin C. Glandt, 74, former vice president and cashier of the First Na tional Bank and Trust Co. Mr. Glandt, a 1920 graduate of the University of Nebraska College of Agriculture, began working at the Cen tral National Bank in 1920 and was with the bank when it was consolidated with the First National Bank in 1929. He was promoted to assistant cashier, later became cashier and was named vice president and cashier in 1946. He retired in 1966. S co ttsb lu ff Bank Adds to Staff Dale Hittner, 44, has been named trust officer at the Scottsdale National SHOWN is the new Parkway Office of the National Bank of Com m erce, located at 40th and South. N orthw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 Wymore State Bank recently held an open house in its newly-remodeled and expanded facility, according to Dennis Osmera, executive vice presi dent. Work at the bank included a 50 by 82 foot addition, providing 2,000 addi tional feet of space. There are new in dividual offices, bookkeeping area, lounge, officers meeting room and safety deposit box booths. The bank also has an open area where secretarial desks and a new semi-circular teller window are located. Other features are new carpeting, paneling, furniture, and heating and air conditioning system. Acquires C om m ercial N a t'l In Grand Island Commercial Bankshares, Inc., Grand Island, has received approval to acquire the Commercial National Bank and Trust Company of Grand Island. L. H. Huwaldt has resigned from the bank’s board to serve as a director of Commercial Bankshares. Other officers and directors electe during a recent organizational meetin of stockholders are: J. H. Oliver, presi dent; David R. Johnson, vice presi dent; Tom Wrenholt, secretary-trea surer, and E. J. Thayer. 63 FIRST NATIONAL LINCOLN Box 81008 * Lincoln, NE 68501 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ste rn B a n k e r, Ja n u a ry 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 Peoples Bank, Cedar Rapids, Elects Chairman, President Ted L Welch has been elected chairman and John M. Sagers presi dent of the Peoples Bank and Trust Company, Cedar Rapids. Iowa News O. K . OEKOSTER NEIL MILNER P resid en t Ex ec. V ,P . W ate rlo o Des M oines IBA Plans ‘Great Iowa Brain Robbery’ 'T 'H E “Great Iowa Brain Robbery,” a project of the Iowa Bankers As sociation, is scheduled for the Hilton Inn in Des Moines February 25-26. Lark Billick, public relations director of the IBA, states that this first Great Iowa Brain Robbery is a dramatic de parture from routine bank advertising and marketing conferences. The key word selected for the con ference is non-traditional to highlight the search for new, fresh ideas from IBA members as well as outside sources. To lend emphasis to this, part of the faculty for the conference will be composed of outstanding experts in direct mail, direct marketing and di rect response advertising. The Great Brain Robbery is de signed as a get-involved, idea-packed marketing/business getting/advertising session. Some of the resource ma terial to be used will be newspaper ads and direct mail pieces that have been sent to experts in various areas of mar keting for their complete critique. Their evaluations with suggestions for improvement will be offered. The one and one-half day confer ence will feature such sessions as: An Idea Every 60 Seconds Tell Me Why It Won’t Work Selling Outside the Bank How to Set Up a People Department Inside Your Bank How to Handle an Advertising Agency and Get More Out of It How to Turn a Disadvantage into an Advantage plus hours of give and take critiques of bank ads and radio commercials, and experts showing graphic presentation of how they would have done certain ads. Registration is $85 per person for IBA members and $125 for non-mem bers. READY to take part in the G reat iowa Brain Robbery are, from left: jerry Thornton, chm n. of the IBA public relations com m ittee and m arketing officer, Brenton Banks, Des Moines; Lark Billick, p. r. dir., and Neil Milner, exec, v.p., of the IBA staff. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T. J. WELCH 1. M. SAGERS Mr. Welch joined the bank after graduating from the University of Iowa and receiving his MBA degree from Harvard Graduate School of Business. He has served as president since 1958. Mr, Sagers joined the bank in 1950 after receiving a B.S. degree in engi neering from Iowa State University and a Juris Doctorate degree from the University of Iowa Law School. Since 1973 he has served as executive vice president and senior trust officer. In other action the following elec tions and promotions were announced: Charles Cebuhar to senior vice presi dent and trust officer; Don G. Ellis to senior vice president, Stephen P . Menzner to assistant vice president and Marilyn Jonas to assistant cashier. Tn a move to further broaden and strengthen the administrative organiza tional structure of the bank, the board also designated Mr. Welch as chief executive officer and Mr. Sagers as chief administrative officer. Lawrence E. McGrath, vice president, was desig nated a member of the bank’s internal executive committee. Banks of Iowa Elects New Board M em ber F. Forbes Olberg, chairman and president of Banks of Iowa, Inc., Cedar Rapids, has announced the elec tion of Edward R. Lynn to the board of the Iowa bank holding company. Mr. Lynn, administrator of the Jen nie Edmundson Memorial Hospital in Council Bluffs, is a graduate of the University of Illinois and holds a Mas ters Degree in hospital administration from the University of Minnesota. He replaces Oscar E. Johnson, Council Bluffs attorney, who has re tired and moved to Florida. N orthw estern Banker, Jan ua ry 1976 66 Iowa News merged with the operations division to form an enlarged banking centers divi sion. The newly-created business develop ment department, headed by Paul A. Childers, vice president and former head of the main bank family banking center, will serve to support and assist with customer development activities in all divisions. Assisting these business development activities will be the mar keting department, directed by Kent Wigg, marketing officer. The banking centers division is headed by Loren P. Miller, vice presi dent, with Robert T. Kingsbury, vice president, serving as deputy division head. This division includes the follow ing departments: main banking facil ity, Morningside office, Badge row of Dickinson County Savings Holds Open House fice, customer service, purchasing and maintenance. ICKINSON County Savings Bank, First Trust & Savings Bank in WheatBonnie Britton, assistant vice presi Milford, recently held an open land, both in Iowa. The direct loan di dent and former head of customer ser house in its new home at 10th Street vision owns The Morris Plan Com vice, is manager of the main bank fa pany, operating offices in Iowa, Illi cility. Don Smith, assistant vice presi and Okoboji Avenue. Construction of the 5,000 square nois and Wisconsin. dent, is now serving as assistant man The leasing division consists of ager of the main bank family banking foot banking facility began in the fall of 1974. New features of the bank in LeaseAmerica Corporation, with op center, and Judy Harlow is now serv clude a drive-in window, lock boxes, erations in Iowa, Nebraska, Minneso ing as teller supervisor at the main of ta and Wisconsin. The venture capital fice. vault, larger offices and lobby. James Cravens is the bank’s presi division operates MorAmerica Capi Robert W. Arnold, vice president, tal Corporation in Iowa, Nebraska, is now serving as Morningside office dent. Missouri and Wisconsin. The commer manager. He is assisted by Donald A. cial loan division operates MorAmeri Pinkston, assistant vice president, and MorAmerica Reports Income, ca Mortgage Company. Linda Milbrath, family banking officer. Asset Gains for Fiscal Year included in the service division are Teller supervisor is Dani Tobey. MorAmerica Financial Corpora The opening of the First National’s tion, a Cedar Rapids, la., holding com Morris Plan Realty Company, Morris pany with six financial divisions, re Plan Securities Company, Morplan, Morningside office temporary banking ported net income at the close of its Inc. and MorAmerica Insurance Ser facility was held on December 6. Lo cated at 4608 Morningside Avenue, it fiscal year of $1,215,000, an increase vices, Inc. MorAmerica Financial Corporation is serving First National’s customers from the $1,179,000 reported at the close of the 1974 fiscal year. Peter F. carries on its books as investments the from the Morningside area of the city Bezanson, president of the company, MorAmerica Properties, Inc. (100% as well as residents from suburban re reports assets at fiscal year-end of owned), American Travel & Tour, Inc. gions outside of Morningside. The $157 million, compared to $136 mil (100% owned), Marion Heights temporary bank is serving customers Center, Inc. (80% owned) and Mar during construction of the permanent lion for the preceding year. Dividends of $371,888, or 28£ per ion Heights, Inc. (80% owned). Mar facility, at the same location, including full family banker deposit and loan ser share, paid in 1975, represented a 16% ion is a Cedar Rapids suburb. vices, as well as drive-in service and increase from the $308,927, or 24£ convenient hours. per share paid in 1974. Capital funds First National’s Badgerow office will at the corporation’s year end were $7.9 First National, Sioux City, continue to be managed by William A. million in stockholders’ equity, with Realigns Three Divisions Richard C. Taylor, president of the Mullins, and he is assisted by Barbara $9.8 million in subordinated debt. Mr. Bezanson noted that Mor First National Bank in Sioux City, has Lesko. Connie A. Rathgeber, operations of America Financial Corporation, since announced a restructuring of three of ficer and formerly director of teller op the bank’s divisions. The move, he its founding in 1968, has grown in that eight year period from $57 million in said, is intended to facilitate business erations, is now customer service man assets to the present $157 million, development for all of the bank’s divi ager. She is assisted by Joan Kellen and Marilyn Sokolowski In operations nearly triple in size. Revenue has in sions and unify a number of customer and in training. operations activities. The first of these creased from $4.7 million to $16 mil This new structure is expected to in actions is the creation of a business de lion, nearly quadruple. crease effectiveness of business devel In its banking decision, MorAmer velopment department within the ad opment as well as improve the bank's ministrative division. In addition, the ica Financial owns Jackson State Bank efficiency in serving its customers. & Trust Company at Maquoketa and banking centers division has been D N ofor r t hFRASER w e ste rn B a n k er> Ja n u a ry 1974 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa Remsen Banker Honored At Retirement A dinner party was held recently honoring Len C. Lamar, vice president and managing of ficer of the First Trust & Savings B ank, Remsen, who retired after 38 years in the banking profes sion. Mr, Lamar be gan his banking career in Sioux l . c. l a m a r City and prior to coming to Remsen managed the First Trust & Savings Bank of Anthon. He joined the Remsen bank in 1955. After retirement, Mr. Lamar will continue to serve as a director of the bank. In 1968 Mr. Lamar was elected chairman of Group I of the Iowa Bankers Association (IBA). He served in this capacity for three years. He also served on the council of administration of the IB A during this period. News 67 “We try to offer a service that’s there when you need it.” Boone State Announces Top Executive Changes Henry C. Overbeck, chairman of the Boone State Bank and Trust Co., has announced two executive changes, 0 . W ALKEN HO RST K. 0 . SUNDALL Kenneth D. Sundall, president, has been promoted to vice chairman of the board. Mr. Sundall has been with the bank for 27 years. Dale Walkenhorst has been elected president and director. Mr. Walken horst, 49, has been in the banking business for over 25 years, most re cently as president of the First Nation al Bank at North Platte, Nebr. Rock Valley Bank Opens Drive-In Valley State Bank has opened its new drive-in banking facility at the corner of Main and Highway 18 in Rock Valley, according to Ken Han sen, bank president. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ We co n tin u a lly up gra de the service we furnish our corre sp o n d e n t banks to find new ways we can help. The b ig g e st area w e ’re w orking on right now is autom ation. For at least the next five years w e ’re go in g to be d e e p ly involved in more autom ated services to find better ways to serve all our corre spo nd en t ba nks.” Gene Hagen, Vice President Banks and Bankers Division Security National Bank 6th & Pierce Street, Sioux City, iov Phone: 712-277-6517 N orthw estern Banker, Jan uary 1976 Jow a N e w s 68 Saturday, Feb. 14 A.M. 9 11:30 P.M. 12:30 B. A. R O G G E T. H. HUSTON M . G. HANSEN Sioux City Will Host Group 1 and American agriculture and the economy head f ? OOD the list of discussion topics for the Group I meeting of the Iowa Bankers Association (IBA). The meeting will be held Friday, Feb. 13, and Saturday, Feb. 14, at the New Hilton Inn, Sioux City, according to Marvin G. Hansen, group chairman and president of the Early Savings Bank. The hosts, as usual, for the Group I meeting will be member banks of the Sioux City Bankers Association. Of ficers are Thomas C. Horn, executive vice president, Se curity National Bank, president; Richard C. Taylor, presi dent, First National Bank, vice president, and Wilma Weeks, Security National Bank, secretary-treasurer. The complete program follows: 2:30 5:30 7:00 Friday, Feb. 13 A.M. 11:30 1:45 Registration—-New Hilton Inn. Presiding—Marvin G. Hansen, Chairman. Invocation Report on I. B. A. Activities—Dale DeKoster, president, IBA, and president, Waterloo Sav ings Bank. Remarks from A. Neil Milner, executive vice president and secretary, IBA. Remarks from Thomas H. Huston, Superinten dent of Banking, Iowa Department of Banking. “Food and American Agriculture”—Dr. Robert R. Spitzer, coordinator, Office of Food for Peace, Department of State, Washington, D. C. “Where Are We Headed?”— Dr. Benjamin A. Rogge, professor of political economy, Wa bash College, Crawfordsville, Ind. Adjournment. Social Hour—Marina Inn. Banquet, Marina Inn—Presiding: Thomas C. Horn, president, Sioux City Bankers Associa tion; executive vice president, Security Na tional Bank. Entertainment—The Mike Day Orchestra. Dancing until midnight. Ladies Program P.M. 8-10:30 Social Hour and Buffet— Marina Inn. Controlling Interest in Audubon Bank Sold Controlling interest in the First State Bank of Audubon has been purchased by two Coon Rapids men: John Chrystal and Stephen Garst. The men purchased the majority stock from Luncheon and Style Show—Marina Inn Ball room. Mrs. Thomas Horn is the chairman. heirs of the late Henryetta S. Van Gorder. Mrs. Van Gorder, president of the bank for more than 30 years, died last May. Messrs. Chrystal and Garst have in terest in several other Iowa Banks in the western part of the state. Mr. JUSTthe man you're looking for! Garst has a farming operation which is partly in Audubon County. Mr. Chrystal, president, Iowa Savings Bank, Coon Rapids, said that no change in personnel is planned. Walter H. Cooley Funeral services were held recently for Walter H. Cooley, 75, vice presi dent and trust officer of the Farmers and Merchants Savings Bank, Man chester. Mr. Cooley, a graduate of the University of Iowa, Iowa City, law school, served as Manchester city man ager for several years before joining the bank. Jerry Just NORTHWESTERN BANK Of Sioux City An Affiliate of Northwest Bancorporafion N o r t h w e s t e r n B a n k e r , J a n u a r y 19 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Officers Retire at Jackson State Bank Three long-time officers of the Jackson State Bank and Trust Co., Maquoketa, recently retired. They are Marguerite P. Sokol, former cashier, with the bank since 1938; Otto W. Reel, senior vice president and direc tor, with the bank since 1955, and Lewis S. Lein, vice chairman, secre tary and director (former executive vice president), with the bank since 1938. Messrs. Reel and Lein will continue as members of the board of directors. 69 jJsr S&K ¡38Ssssis. ^ i y v ¿SWv -"-A ■ ,"4*- - - ,vv s “ Pssst! Hey, Mr. Banker! How * would you like a million d o lla rs’ worth of computer services for V as little as $8.72?” , * j ime certificates’^ commercial lo a n s ! installment loans proof of deposi demand d e p o s i t ^ g ^ ^ and others. WS8J i TH E T O Y N A T IO N A L B A N K HAS A M IL L IO N D O L L A R S ’ W O R T H OF C O M P U T E R S E R V IC E S , A N D W E K N O W T H A T WE HAVE JU S T TH E R IG H T S E R V IC E TO H ELP YOU IN C R E A S E YO U R B A N K E A R N IN G S IN 1976! W o rkin g t h r o u g h The T o y ’s C o r r e s p o n d e n t D iv is io n , you can use our computers for pro c e s s in g s a v in g s , tim e c e r t i f i c a te s , c o m m e r c i a l lo a n s , i n s t a l lm e n t loa n s, p ro o f of d e p o s it, d e m a n d d e p o s i t , and others. And the best part — we can work with banks of any size. You may use as little as $8.72 w o r th of c o m p u t e r s e r v i c e s e a c h m o n th , or as m u ch as $3,000 worth. For f u r t h e r d e t a i l s , ca ll the Correspondent Division of m TO Y N A T IO N A L . B A N K 712/279-5680. FOURTH AMD NEBRASKA SIOUX CITY, IOWA 51102 W e’re not withholding the secret of success with computers; it’s yours for the asking. N orthw estern Banker, Jan uary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 7 6 70 iowa News JERRY Maples, pres., Jackson State of M aquoketa (le ft) and Mr. & Mrs. James Blayney of M aquoketa are shown visiting w ith Rex Plowman of Sm ithfield, Utah, featured speak er a t th e bank’s annual business institute. Jackson State, M aquoketa, Holds Business in s titu te Speaking at the Jackson State Bank and Trust Company’s annual Business Institute held in Maquoketa, Jerry Maples, bank president, expressed op timism for the business future of the area. However, he also noted that be fore calculating any gains in terms of unit sales, one must make a proper de duction for the inroads of inflation. Also speaking at the Institute was Rex Plowman, a Utah rural banker and past chairman of the agricultural division of the American Bankers As sociation. Approximately 400 eastern Iowa business people and their spouses attended the dinner and program. 35 O rganize County NABW Thirty-five women from Allamakee, Howard and Winneshiek Counties re cently organized the Tri-County Asso ciation of Bank Women. The following officers were elected: Cynthia Hoelscher, Decorah State Bank, named president; Linda DeRuhr, Farmers and Merchants Savings Bank, Waukon, vice president; Jea nette Milbrath, Cresco National Bank, secretary, and Nancy Henning, Securi ty Bank and Trust Company, Decorah, treasurer. Members elected to the board are: Dolores Bolgren, Iowa State Bank, Calmar; Hazel Kolsrud, Waukon State Bank; Eleanor Linderbaum, Ossian State Bank, and Bernice Buchheit, Citizens Savings Bank, Ford Atkinson. Open House at Thurm an Open house was held recently to mark the 60th anniversary of founding of the Thurman State Bank. Located in a town of 270 population, the bank N orthw estern Banker, Jan ua ry https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 has $3.5 million deposits. Officers are W. J. Grotenhuis, president; Paul M. Tackett, executive vice president; James W. Grotenhuis, vice president; Danny D. Gold, cashier, and Katherine Hurst, assistant cashier. Panora Banker Retires E. S. Petersen recently retired from the board of the Panora State Bank af ter serving for 17 years. Mr. Peterson was one of the original founders of the bank, which was chartered in 1959. He was the controlling stockholder and chief executive officer until 1970 when he became vice chairman, the position he held until retirement. Joins Clarion Bank Ron L. Canfield, 27, has joined the First National Bank of Clarion as as sistant cashier and auditor, according to R. L. Davison, president. Mr. Canfield, a 1970 graduate of Iowa State University at Ames, ma jored in agricultural business and minored in market management. He previously was associated with the Federal Reserve Bank of Chicago as an examiner and most recently with the Avenue Bank & Trust Company, Oak Park, 111. Prom oted at M adrid Bank Don L. Fatka, who joined the City State Bank in Madrid in November, 1974, has been named assistant cashier, according to R. J. Sundberg, president of the bank. Mr. Fatka w a s graduated from S i m p s o n College, Indianola, la., in 1970 with a B.A. de D. I . FATKA gree. After three years of military service he worked for a finance company one and one-half years before joining the City State Bank. His duties include commercial, instalment and farm lending. Dallas Center P rom otions The board of directors of Brenton State Bank, Dallas Center, has pro moted two staff members to officer positions of the bank. Robert L. Ger man was promoted to assistant cash ier and Janice A. Morris to real estate loan officer. Mr. German is a native of State Center and a 1974 graduate of Iowa State University. He joined the bank in the officers’ training program in June, 1974. Ms. Morris is a Dallas Center na tive and a 1970 graduate of the Amer ican Institute of Business where she was also employed until she joined the bank in October, 1970. GERMAN J. A. MORRIS Hawkeye Sells Mills County State, Glenwood T T AWKEYE Bancorporation, Des Moines-based bank holding com pany, has sold majority interest in the Mills County State Bank, Glenwood. Buyers are Ross Wilcox, executive vice president of Union Bank & Trust Co., Lincoln, Nebr.; John Knight, president of Packers National Bank, Omaha, Nebr., and LeRoy Hilt, Hilt Truck Lines, Council Bluffs. Sale price, which was negotiated privately, was set at 150% of book value, Hawkeye said. The sale is subject to regulatory approval. Mills County State Bank, with as sets of $5.4 million, is the smallest member bank of the Hawkeye banking group, according to Hawkeye officials. Hawkeye has 14 other member banks with combined assets of more than $450 million. Need computer? Rent ours The Big “ C ” data center can save your bank a Jot of w ork and tim e. At very com petitive prices too. Find out more about getting ‘ on lin e” with our “ C o m p u te r . Call 8 0 0 -3 6 2 -1 6 1 5 toll free and ask for Claude Dawson, David S o llenbarger, John Cook, G loria Johnson, or David Akehurst, if “C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Central National Bank & Trust Company DES MOINES (515)245-7111 MEMBER FDIC L O C U S T AT S IX T H /F IF T H ^ 5 & G R A N D / 35TH & IN G E R S O L L / W E S T D ES M O IN E S AFFILIATED WITFI CENTRAL NATIONAL BANCSHARES. INC. 72 Iowa News PANELISTS for the 1 9 7 6 Iowa Business Trends conference were, left to righc: Seated— Warren W. Lebeck, pres., Chicago Board of Trade; Or. Paul S. Nadler, professor of busi ness adm inistration, Rutgers University, Brunswick, N. J.; John R. Fitzgibbon, panel m oderator and chm n. & chief exec., lowa-Des Moines N atl., and Robert W. Downing, vice chm n. & chief oper. off., Burlington Northern, Inc., St. Paul. Standing— Thom as A. Staudt, dir. of m ktg., Chevrolet M otor Division, General M otors Corp., Detroit; Daniel J. Krum m , pres., M aytag Co., Newton, la., and M ario A, Di Federico, exec, v.p., Firestone Tire & Rubber Co., Akron. Iowa Business Trends Speakers See Continued Business Upturn in 1976 Tt/I’ ORE THAN 500 Des Moines area businessmen attended the 17th annual Iowa Business Trends conference hosted by the lowa-Des Moines National Bank at Hotel Fort Des Moines last month. John R. Fitz gibbon, chairman and chief executive officer, welcomed the capacity crowd and introduced the morning panel of five speakers who discussed specific areas of business they represent. Fol lowing the fast-moving morning pro gram, the guests were served lunch and then heard a noted economist give his review of current happenings and the outlook for 1976. Directors and senior officers of the lowa-Des Moines National Bank co hosted the event with Mr. Fitzgibbon, and also acted as host at each of the luncheon tables. All of the speakers gave a positive look at 1976 business prospects, pre dicting continued slow gains from the deep recession just past, and each man took note of the biggest threat to re covery — inflation. A summary of their remarks follows: Dr. Paul S. Nadler, Professor of Business Administration, Rutgers Uni versity, Brunswick, N. J.: The United N orthw estern B anker, Jan uary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 States is recovering from the most severe depression in 40 years. The rise in consumer spending, housing starts, federal spending and business invest ment, coupled with the end of the work-down of inventories, should help make 1976 a better year than 1975. Real growth should be in the range of 6-7%, with inflation slowing down to the 6-8% range. But the nation should not reach the level of economic growth of which it is capable for several reasons: 1. Sales of automobiles and homes are being hampered by the high price levels on these goods. This is pricing many potential buyers of cars and homes out of the market. It is the high price of the home, rather than a lack of availability of credit, that is causing this development. Auto sales have been hurt by the slowness of the indus try to adapt its production to what the public evidently wants. 2. Many commercial banks have been so badly burned on poor loans, especially in the real estate field, that we are likely to see much more con servative bank lending policies in the months ahead. The result — only top quality companies will be provided full credit accommodation, and the pro ductive capacity of the nation will be reduced accordingly. In addition, many banks do not have enough capital to back strong in creases in loans and deposits and they fear more loan losses would erode much of the capital they do have. 3. The American economy is being hampered by continued inflationary pressures which stem in part from the omnipresent attitude: “I believe in free enterprise, just keep out the lousy competition.” Inflation has remained high because so many sectors of our economy have avoided the impact of market competition. Robert W, Downing, vice chairman and chief operating officer, Burlington Northern, Inc., St. Paul, Minn.: Our industry expects revenue ton-mile total to increase 5-6% above 1975, and pos sibly returning to the high level of 1974. Burlington Northern is a big hauler of commodities and coal. Our coal ton miles for 1975 were 50% higher than 1975 and we look for an other 22-23% increase in 1976. Capital spending by all railroads in 1975 of $1.7 billion reflects the high level of 1974 business, and 1976 will be reduced due to less business in 1975. BN will reduce capital spend ing $100 million in 1976, primarily be cause we have completed major proj ects required by the 1970 merger. Of our $147 million 1976 capital outlay, $137 million will go into roadway and car fleet. We will spend $5.2 million of this in Iowa, with $1 million going into environmental improvement at the Burlington repair shops, where addi tional employees also will be hired. We anticipate an inflation rate of 6-7% in 1976, somewhat below other economic forecasts. Our Iowa business is about twothirds ag-related and we expect a 1012% increase in grain carloadings, mostly from corn and soybeans. Warren W. Lebeck, president, Chi cago Board of Trade, Chicago, 111.: There are bullish factors and bearish factors ahead for agriculture. First the bullish factors: 1. Soviet weather news is not good and could result in another 132 million ton crop shortage. Some U.S. ob servers also are predicting a drought in the United States in 1976 —■per haps the same ones w'ho forecast a drought for 1975. 2. Considering cost of production units, farmers are comfortable and Iowa eem to be in a holding mood, which Looking at the consumers’ ability ould keep prices from steep breaks. to purchase, we see that consumers 3. Economic recovery, pent-up de have increased their liquidity position an d for certain commodities and with increasing incomes and high sav yclical expansion in the livestock and ings, thus a great many will return to oultry industries will create favorable the market place in ’76 to satisfy pentomestic demands for 1976. up demand created during the reces Now, a look at bearish factors: sion and energy crisis. 1. Reports of extreme congestion in We anticipate the prime rate will be oviet ports, with ships as temporary gin to increase in the near-future and torage facilities. average more than 8% for 1976, but 2. The recent drop in metals prices money should be in good supply in vir ould give the USSR a problem with tually all the markets. oreign exchange with which to purPeople see the 1976 models as sig hase U. S. goods. nifying a new direction for the indus 3. Foreign buyers seem comfortable try. This belief seems to be derived pri ith our supply situation and are not marily from the Chevett. A rather sub overing their needs with orders as stantial, anti-foreign feeling is gaining ey did a year ago. They seem to be momentum, even among those who atching for favorable buying oppor- bought foreign. nities. Car prices are not viewed as being 4. With the strengthening of the dol- badly out of line. The pool of good r our goods are more expensive to prospects for car purchases should in reigners. crease in 1976 but a new car purchase 5. Another reason for bearishness is still considered postponable, and grain prices is a belief that the world when purchased, people tend to keep od situation is easing. their cars longer — for about five Our agricultural complex is a giant, years. nd a powerful one, but is not invulConsequently, we are forecasting for erable. It’s Achilles heel is the market the industry sales of 9,850,000 passen nd profit incentive system. The fright- ger car sales in 1976, up about 15% ningly low level of economic literacy from estimated 1975. Foreign-build xhibited in recent weeks by some of car sales will remain stable, with their ur politicians, bureaucrats and labor industry share down two points. All nion bosses is a harbinger of the ob- of the volume gain will be coming from acles that lie ahead. Some contend smaller cars, accounting for about exports are a major cause of infla- 53.5% of total industry, a switch of on. This argument is wrong, possibly better than 17 percentage points in just ecause they have never understood four years. e mechanism of a free market. They Daniel J. Krumni, president, The il to address themselves to a key estion: What is the inflation impact Maytag Company, Newton, la.: After we do not export? For those who do two straight years of decline, the first >t understand the ABCs in the eco- in 14 years, we expect unit sales grow mic alphabet it is probably futile to ing about 5% in 1976. As consumers have become more y to explain that as we export more e value of the dollar on international aware of and knowledgeable concern rrency markets is strengthened and ing our economy, they have become takes fewer of our paycheck dollars increasingly important in influencing buy and pay for German cars, the direction of that economy. Further, rench wines, .Swiss watches and Jap- the confidence level is not to be ig ese TV sets. nored by politicians, since public pres sure is even beginning to force sober ing economic realities into campaign Thomas A. Staudt, director of mar- strategy. One strong underlying trend ting and assistant general sales man- today is consumer sensitivity to infla er, Chevrolet Motors Division, Gen- tion. The inflation rate next year may al Motors Corp., Detroit, Mich.: hit 7% , but if it should threaten to run ooking first at consumer willingness away again into double digits, I would purchase, we think the likely GNP expect that to trigger a sharp reaction ttern for 1976 will be about 6% an in consumer spending. This would un al growth rate, inflation will be held doubtedly be a far quicker and surer about 7% , and the unemployment remedy than any of the governmentte will improve by dropping to 7.5% might propose. the end of 1976. In short, times are changing, values https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis News 73 are changing, and concerns are chang ing. Mario A. Di Federico, executive vice president, The Firestone Tire & Rubber Co., Akron, O.: Our industry has posted a solid record on capital ex penditures, with an average of $700 million a year during the last decade. Firestone alone spent about $550 mil lion in the past two years. Annual ca pacity of the tire industry has been in creased by about 72% in the past 10 years, so we can produce well over a quarter-billion tires a year. We are anticipating that automobile sales, including imports, will climb to 9.8 million units in 1976, an increase of 14% over 1975. Truck sales are seen rebounding by almost 17%, mov ing up to 2.8 million units in 1976. Sales of farm and industrial tractors are seen going up to 195,000 units, an increase of 5.4% . All of these vehicles need new tires, many of them far more than five tires, so our industry is look ing for a 23% increase in sales of tires to vehicle manufacturers. In the re placement market we anticipate an 8% gain for passenger tires, 17.5% for truck-bus tires, and almost 9% for tractor tires. All things combined, we expect the tire industry to ship 231.6 million tires of all types in 1976, an overall gain of 12.5%. — End Honored at A insw orth Mrs. Freida McFarland, cashier of the Ainsworth State Bank, was hon ored by the directors and staff of the bank December 18 on the 25th anni versary of her service with the bank. An open house in her honor was held at the bank the same day. Mrs. McFar land has seen deposits of the bank grow from $973,000 when she joined Ainsworth State in 1950 to the present total of more than $7,000,000. Stanley J. Shupe Funeral services were held recently for Stanley J. Shupe, director of the First National Bank, Clarion. Five Fort Dodge P rom otions The State Bank has announced the following promotions: James Peters, commercial loan officer, to vice presi dent; Bruce McCullough, assistant cashier, to operations officer, and Betty Barnes, to customer services officer. New officers appointed are Barbara Maier, assistant cashier and Donald Schnell, consumer loan officer. N o r t h w e s t e r n B a n k e r , January 1 9 7 6 74 chief executive officer. Mr. Smith joined the bank in July of 1968 as personnel administrator. I 1969 he was named personnel office and in 1972 senior personnel officer Mr. Smith is a 1958 graduate of th^ University of Northern Iowa, Ceda' Falls, and was assistant manager of in dustrial relations with Armstrong Tiri and Rubber Company, Des Moines before joining the bank. Bankers Trust recently opened new office in the SouthRidge Mai with a ribbon cutting ceremony, according to Ar il ic Ripperger, MERRILL Anderson has been •elected president of Central Na tional Bancshares, Inc., by the board of directors, ac cording to B. C. Grangaard, chair man. Mr. Ander son has been president of Iowa Farm Bureau Fed eration and its af filiated companies J. M. ANDERSON since 1963, and a director of Central National Bank and Trust Company and Central National Bancshares, Inc., for several years. “We feel fortunate that Mr. Ander son has joined our company as presi dent,” Mr. Grangaard said. “This pro vides an orderly transition in view of my reaching retirement age next April.” Mr. Anderson, a graduate of Iowa State University, Ames, operates a livestock and grain farm near Newton, and at one time was associated with the Livestock National Bank of Chi cago. He is a director of the Greater Des Moines Chamber of Commerce and of the Greater Des Moines Com mittee, and is currently serving as vice chairman of the National Livestock and Meat Board. He is a veteran of World War Two, having served as an officer in the U.S. Army Air Corps. Later, on December 29, Mr. Ander son announced that Simon W. Casady has been elected a director of Central National Bank and Central National Bancshares, inc., and C. Frederick Beck has been elected a director of Central National Bank. Mr. Casady last month purchased the stock war rants held by international Bank, Washington, D.C., of which Gen. J George Olmsted is chairman. The war rants acquired by Mr. Casady have been transferred to Central National Bancshares, Inc., and have been retired and cancelled. A bank spokesman said the warrants were acquired “as part of a package stock acquisition under which Mr. Casady has an option which he intends to exercise in the next few days. These options allow Mr. Casady to acquire stock presently owned by international Bank and Financial Gen eral Bankshares, Inc., both of Washing ton, D.C. Together this amounts to 10% of the outstanding shares of Cen tral National Bancshares, Inc. This ac quisition by Mr. Casady will make Central National even more locally owned.” Mr. Casady comes from a pioneer Des Moines family. His great-grand father, P. M. Casady, came to this area before Des Moines was formed. P. M. Casady’s son, Simon Casady, was in volved with the founding of The Bank ers Life Company and was an officer of that company. He also started Cen tral State Bank, later to become Cen tral National Bank, and was its first president. His son, Simon Casady, Jr., was a founder of Pioneer Hi-Bred In ternational. Mr. Simon W. Casady is a member of the board of directors and secretary of Pioneer Hi-Bred Interna tional, Inc., Des Moines. Mr. Beck is a director of Central National Bancshares, partner in a Mason City law firm, and a director of United Home Bank & Trust, Mason City, which is a subsidiary of Central National Bancshares. ♦ * * Will C. Smith has been elected vice president of personnel of the Iowa-Des Moines National Bank, according to John R, Fitzgibbon, chairman and marketing officer. The opening was highlighted by a week-long “Gold Nugget D a y s ” promotion during which 200 prizes D. SKINNER were given away. The SouthRidge office is the bank’ first location on the south side of De Moines and one of seven Banker Trust locations in the metropofita area. Dick Skinner is the new office’ manager. Grand prize was a one-ounce soli gold ingot. Gift certificates, ranging i value from $5 to $50 and redeemabl at stores in the Mall, also were give away. Bank personnel dressed in wes ern garb and the bank sponsored th display of a covered wagon outside th office. Edwin A. Langley, president an chairman of Capital City Bank, has an nounced the a” p o in tm e n t o Richard C. Hi son as assista~ trust officer. Mr. Hinson is 1971 graduate the University Northern low' Cedar Falls, wit a B.A. degree i R. C. HINSON general busines: In the fall of 1971 he entered Drak University Law School and was grad ated in May of 1974. He previous! was manager of the Hubbell office The Brenton Bank & Trust Co. He is a member of the Iowa Bar A. sociation and the American Bar Asso iations. ...A N orth w estern B anker, Jan uary https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 76 Iowa iDes Moines Banks Plan Automated Tellers Bankers Trust Company officials Ihave announced plans to install autoImated teller machines at four Dahl’s rood stores early in 1976. These repreIsent the first unmanned teller units in jDes Moines to be placed at retail locaItions away from banking offices. They Iwill, in effect, become electronic facili ties offering extended self-service |banking to customers while they shop. Authority to do this is provided un- I % I i k Bagni . « 11BM 3 6 1 4 Custom er Transaction Facility. ier 1975 state legislation permitting I’experimental” programs by banks en gaged in development of electronic junds transfer systems. Stores tentatively named to house (he automated teller machines are lo cated at 3425 Ingersoll, 4343 Merle lay Road, 4121 Fleur Drive, and East hirteenth at Euclid. A Dahl’s spokeslan, explaining how this combination store locations was selected in an Jffort to achieve balanced citywide overage, noted that “The units are to le positioned geographically so that jur customers will enjoy maximum (onvenience in terms of travel time and tore access. They will be located withthe interior of each food mart and Ivailable for use during regular store jours.” Technically described as IBM 3614 lustomer transaction facilities, the lTM’s are designed to accommodate |0% of an individual’s normal daily |anking requirements. Included among te range of consumer service features |re those of withdrawing cash, trans itin g funds, receiving deposits and liking loan payments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tom Wright, bank president stated, “This joint effort between Dahl’s and Bankers Trust is an innovative concept which we are confident will provide an added dimension to banking in the Des Moines area. It will enable consumers from virtually any neighborhood in the city to bank quickly and confidentially while shopping.” Another bank official reported that plastic cards are to be issued to cus tomers in the near future before the system becomes operational. News 75 Larry Wenzl, president of First Fed eral State Bank, has announced the fol lowing staff changes and promotions: Ted Miller, assistant vice president, formerly manager of the River Hills branch, has been assigned to the main bank as head of the real estate loan de partment. Dan Sampson, formerly assistant manager and assistant cashier of the River Hills branch, has been promoted to assistant vice president and manager at River Hills. Bill Whyte has joined the bank as an assistant cashier and assistant man ager at River Hills. He formerly was with Hawkeye Master Charge and the State Bank and Trust in Council Bluffs. David Walthall, vice president in charge of operations, has assumed the responsibilities of cashier and holds the title of vice president/cashier. Richard Horstman has joined the bank as trust officer. He previously was trust officer at Capital City State Bank for the past six years. Steve Patterson was appointed as sistant cashier and will assist Mr. Walthall in the operations department. Central National Bank and Trust Company has begun operation of terminals located in five retail outlets throughout the greater Des Moines area. The Transactor terminal cards have been issued. Transactor is a registered trade name to be used by the bank and its correspondents. This program will continue as a test until June 30, 1976. The terminals are located in the Younkers stores at Merle Hay, SouthRidge and East Gate and the Richman Gordman stores at 7900 Hickman Road and 2590 Hubbell Avenue. The B. C. Grangaard, chairman of the cards, which are access cards and not board and chief executive officer of credit cards, may be used by custom Central National Bank and Trust ers along with their personal security Company, announced that the board code for the following services: de of directors at its meeting December posits to checking and savings ac 16 elected James C. King and Larry counts, withdrawals from checking and L. Retherford as vice presidents. savings accounts and transfers from Mr. King entered the bank manage one to the other. ment training program in August, There will be two pieces of equip 1967 and has been involved in the in ment located in each of the retail out vestment area of the trust department lets mentioned. One will be the Trans since completion of the program. He actor telephone which is activated through the use of the customer’s ac cess card and the customer’s personal security code which is known only to the customer. There also will be a tele printer which will instantaneously print a receipt of the transaction, a copy of which will be given to the customer. This service began during the week of December 15 and subject to regula tory approval will be offered to other J. C. K IN G L. L. RETHERFORD banks around the state of Iowa which use Central National Bank as a cor was elected senior trust investment of respondent. At this point, approval has ficer in January, 1974. He is a gradubeen given for participation with New ton National Bank. This means that Newton National customers may use the CNB terminals in Des Moines and Centra] National customers may use Newton National’s terminal in New ton, which is located at Easter’s Super BOX 8 7 PH. 1-712.'2621499 S P E N C E R ,IOWA S I3 0 I Valu in the Newton Shopping Center. N orthw estern Banker, Jan uary 19 76 76 Iowa Ne ws IBA to Hold 14 Staff Training Seminars A SERIES of 14 Staff Training Seminars will be conducted by the Iowa Bankers Association throughout the state commencing January 19, ac cording to Dave McNichols, education al director for the 1BA. Mr. McNichols noted that for the past two years the Iowa Junior Bankers Association, in cooperation with the American Institute of Banking chapters and study groups and Bank Administration Institute chapters, has sponsored Teller Train ing S e m i n a r s around the state. B e c a u s e the meetings include other staff person nel, they have b e e n re-named Staff T r a i n i n g Seminars. E a c h meeting will start with registration G. M. M O RVIS at 5:30 p.m., then dinner at 6:00 p.m., followed by the seminar, dealing with cross selling and communications. Adjournment is scheduled for 9:00 p.m. Mr. McNichols ate of St. Thomas Military Academy and Parsons College. He also attended the Securities Institute at the Wharton School of Finance and Commerce, University of Pennsylvania. Mr. Retherford became associated with Central National Bank and Trust Company in 1963 after spending nine years with the Lineville State Bank, Lineville, la. He has served as super visor in the proof and transit areas and was elected assistant cashier in 1965. In 1970, he assumed his present posi tion as operations officer in charge of the bank operations. He is a graduate of Lineville High School; Business of Banking School, Durham, N.H., and the Wisconsin School of Banking, Madison, Wis, He presently serves as chairman of the Iowa Automated Clearing House Association Steering Committee and as a director of the Na tional Automated Clearing House As sociation. Dress-A-Doll Contests Prevalent at Christmas At Christmas time many banks throughout the nation sponsor DressA-Doll contests. The banks usually provide the dolls, and their employees or the general public make dresses for them. The dolls are either auctioned off Northw estern Banker, January https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1976 said the seminar is designed to assist bank employees to do a better job of communicating with present and poten tial customers and of selling and cross selling. The seminars will be conducted by George Morvis, president of Financial Shares Corporation, Chicago, and his staff. Dates and locations of the Staff Training Seminars arc: Jan. 19— Holiday Inn, Burlington. Jan. 20— Hotel Blackhawk, Davenport. Jan. 21—Julien Motor Inn, Dubuque. Jan. 22— Kirkwood Community Col lege, Cedar Rapids. Jan. 26— Area I Vocational School, Calmar. Jan. 27— Ramada Inn, Waterloo. Jan. 28— Hyatt House, Des Moines. Jan. 29— Ramada Inn, Council Bluffs. Feb. 9— Holiday Lodge, Clear Lake. Feb. 10— Iowa Lakes Community Col lege, Emmetsburg. Feb. 1 1— Starlite Village, Fort Dodge. Feb. 12— Hilton Inn, Sioux City. Feb. 18— Country Club, Ottumwa. Feb. 19— Ramada Inn, Marshalltown. Commercial Lending School Graduates Ron Will Ronald Will, vice president, Toy National Bank of Sioux City, has graduated f r o m the 1975 fall ses sion of the Ameri can Bankers As sociation's N a tional Commer cial L e n d i n g School. The two-week resident session, held at the Uni versity of Okla homa, Norman, was sponsored by the ABA's commercial lending division. Approximately 308 bankers also gradu ated from the school. IN D E X OF " A D V E R T ISE R S January, 1976 A A co rn P rin tin g C o m p a n y ............................................. A m e ric a n N a tio n a l B an k , C h ic a g o ........................ A m e ric a n N a tio n a l B a n k , St. P a u l .......................... A sto r T o w e r H o te l .......................................................... B B an k e rs T r u s t C o m p a n y ............................................. C C e n tra l N a tio n a l B an k , D es M o i n e s ........................ C o n tin e n ta l Illin o is N a tio n a l B a n k ........................ C ro w th e r, J o h n H ., I n c .................................................. D D a k tro n ic s , I n c ..................................................................... D e L u x e C h e c k P rin te r s , I n c ......................................... F F a ir P la y S c o re b o a rd s .................................................. F ir s t N a tio n a l L in c o ln .................................................. F ir s t N a tio n a l, M in n e a p o lis ........................................ ............................................. 1 3 , 3 7 , 3 8 , 3 9 , 4 0 , 4 1 , F ir s t N a tio n a l B an k , O m a h a ..................................... F ir s t N a tio n a l B an k , St. P a u l ............................. 4 7 , F lo -G o -A rm e n to ................................................................ G G ro ss, K irk C o m p a n y ................................................... H H e in h o ld C o m m o d itie s .................................................. H ilto n In n s .......................................................................... I DOLLS displayed at M erchants N a t’l Bank, Cedar Rapids, la., last December. with the money going to a charity or they are given to needy children. One example of the program is that of Merchants National Bank of Cedar Rapids, la. Last year more than 300 children in the Cedar Rapids area re ceived dolls through this bank’s pro gram. The bank provided the dolls to anyone who wanted to sew a costume. When returned to the bank for judg ing, the dolls were displayed and then distributed to the needy children. Io w a D es M o in es N a tio n a l B a n k ............................. K K o o k er, E . F . A sso ciate s ............................................. L L e a m in g to n H o te l ........................................................... M M e rc h a n ts N a tio n a l B a n k ............................................. M ’d la n d N a t’l B an k , M in n e a p o lis ........................... M o rA m erica ...................................................................... M o rtg a g e G u a r a n ty In s u r a n c e C o rp o ra tio n . . 6 . N N a tio n a l B a n k o f C o m m e rc e ..................................... N o rth w e s te rn N a tio n a l B an k , M in n e a p o lis . . . . N o rth w e s te rn N a tio n a l B a n k , S io u x C i t y ............. P P ro m S h e ra to n ................................................................... R R a n d M c N a lly .................................................................. S S L T W a re h o u s e ................................................................ St. P a u l H o s p ita l & C a s u a lty ................................... S e c u rity N a tio n a l B an k , S ioux C ity ..................... T T o y N a tio n a l B a n k .......................................................... U U n ite d G u a r a n ty In s u r a n c e ........................................ U .S . C h e c k B o o k C o m p a n y ............................. 4 8 , U .S . N a tio n a l B an k , O m a h a ..................................... V V a n W a g e n e n , G . D . C o m p a n y ............................. We’re number two. Which means a lot o f people think we’re number one. Consider. Right now, with more than $4 billion of mortgage guaranty insurance in force, United Guaranty has moved up to become the number two insurer. Which means a lot of lenders don’t think of United as number two. They’re sending us the majority of their mortgage insurance business. With them, w e’re number one. The reason is service. It’s something we do very well. W e’re a company that tailors our services to the specific needs of our customers. In every corner of the market. Residential. Commercial. Multiples. Lease guaranty. W e’re a company with a nationwide network. To cover your needs. Whatever. And, w e’re also a company that’s able to move fast. With representatives and under writers who are professionals. Who take the time to know you. Now that’s service. That’s involvement. We didn’t become number two by skimming the surface. In fact, maybe the m e number 11li11iuci two ivvu company should be number one with you. U nited Guaranty Corporation 826 N. Elm, Box 21567, Greensboro, NC 27420 (919) 273-6961 Contact United Guaranty Residential Insurance Company • P.O. Box 778, Bettendorf, Iowa 52722. In Iowa (800) 292-0047. In States bordering Iowa (800) 553-8976. United Guaranty Residential Insurance Company «300 Morgan Building, Portland, Oregon 97205. In Washington and Idaho (800) 547-1064. In Oregon (800) 452-7697. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Your People + Our People = Leadership Your People + Our People = Progress Your People + Our People = Partnership G eorge M illigan 245-3300 Bob B uenneke Bernle Kersey Dwayne Sm ith 245-3302 245-3301 245-3305 D orothea W olfe John Z dychnec 245-3306 245-3304 THESE ARE OUR PEOPLE READY TO HELP YOUR PEOPL Iowa-Des Moines National Bank 7th & Walnut Des Moines, Iowa 50304 M EM BER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STRIVE FOR E X C E L L E N C E Banco
@FedFRASER