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banking in
1982 is
examined by
•City bankers

fficer Salary Survey
•Minnesota Ag Lending Pilot Project Commences
Federal Reserve Bank of St. Louis

r $



"C onfidence. W h en y o u look to MNB
to convert y o u r cash item s to in v estable balances, y o u can feel c o n fid en t
th a t o u r Availability Schedule is sec­
o n d to n o n e. W h en w e clear y o u r cash
item s, y o u can rely on o u r ex p eri­
enced staff to id e n tify exception item s
a n d resolve situ a tio n s quickly.
Service, the keystone.
"Service — p erso n al, in n o v ativ e,
so u n d — has b e en the key sto n e of
M NB's C o rre sp o n d en t B anking D e­
p a rtm e n t a n d the fo u n d a tio n for th e

creation of successful c o rresp o n d en t
relatio n sh ip s for decades.
"C all for y o u r copy of o u r Cash
Letter Remittance Packaging Re­
quirements soon a n d w e'll sen d y o u
o u r Availability Schedule for com ­
p a riso n , to o ."
D ial 319/398-4320 or call, toll free,
1-800-332-5991 a n d talk w ith Dale or
MNB C o rre sp o n d en t B anker John E.
M angold, Stan R. Farmer, Terry M.
Martin or Jerry N. Trudo.

Merchants National Bank m
C e d a r R ap id s , Io w a 52401
Federal Reserve Bank of St. Louis

Member F.D.I.C.




m i I




.S E E R E V E N D ?

■anM ^SS


American Express can give your
customer a temporary ID.

Anyone who loses a wallet on vacation has
probably lost more than just money.
Chances are, he’s lost his identification too.
Which means he may have trouble trying to
prove who he is when he tries to cash a
check. Pick up his rental car. Or check into
his hotel.
Fortunately, American Express can help.
If your customers lose their identification
along with their American Express®
Travelers Cheques, we can issue them a

temporary ID. When they call to report
their loss, they will be referred (following
verification) to one of our Travel Service
Offices in the U.S., Canada, Puerto Rico,
or the U.S. Virgin Islands-where they can
pick up the ID card during business hours. It
has our name and phone number and their
name printed right on it, so they can use us
as a reference wherever they go.
No other travelers cheque can give your
customers a temporary ID card. And no
other travelers cheque offers all the other
special services we do throughout the U.S.,
Canada, Puerto Rico and the U.S. Virgin
Islands: 24-Hour Travel Service Hotline,
Credit Card Cancellation Assistance, Emer­
gency Message Service and Check Cashing
up to $200.
So when you sell your customers
American Express Travelers Cheques, you’re
giving them the kind of extra protection
they may need on their next vacation. And
the more you do for them, the more you
do for yourself. After all, keeping your
customers satisfied is the best
way to keep your customers.

Am erican Express Travelers Cheques
American Express Travelers Cheques, American Express Plaza, New York, N. Y. 10004 212-323-3226
Federal Reserve Bank of St. Louis


A B A S c h e d u le s
C o n fe re n c e s


E V E R A L im p o rta n t co n ­
ferences have been scheduled fo*
early weeks of 1982 by the American

JANUARY 1982 • 89th Year • No. 1420
t a




M A B SC O starts M M F

Banks in 13 states can compete with national markets


Plan for change

Northwestern National of Minneapolis seminar report


O ffic e r salary survey

Annual study looks at total compensation paid


C orrespondent banking today

City and community bankers give their comments

6 Convention Calendar
8 Bank Promotions
12 Corporate News
35 Illinois
39 Minnesota
42 Twin Cities
50 South Dakota
51 North Dakota
51 Montana


Des Moines
Index of Advertisers

305 15th Street, Des Moines, Iowa 50309

Publisher & E dito r A ssociate Publisher
Ben Haller, Jr.

Steve Burch

Phone (515) 244-8163

A sso cia te E d ito r
Becky McBurney

C onsultant
Malcolm K. Freeland

A u d ito r

Field R epresentative

Field R epresentative

Debbie Hibbert

Glen Hicks

Paul Masters

No. 1420 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $15 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, IoWa 50309.

for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

Bankers Association. A summary of
each follows:
Insurance and Protection
An actual case brought to trial
early in 1981, whereby a bank and its
security officer were sued for failure
to provide a safe banking envir­
onment, is a situation model and
part of the line of questioning for a
mock trial which will extend over a
two day period of the program for
the ABA’s first National Insurance
and Protection Conference of Finan*
cial Institutions.
Scheduled for January 25-28 at
the Hyatt Regency in New Orleans,
the three day conference will be the
first of its kind to bring together th^
risk and insurance management and
security officers of financial institu­
tions. It is designed to develop a
greater communication and coopera­
tion between these two disciplines. *
Telecommunications Workshop
The impact that deregulation has
on future planning for telecom­
munications needs at financial in"
stitutions and the new Federal
Reserve Communications system,
“FRCS 80,” will be key topics for
the ABA’s Bank Telecommunica-.
tions Workshop, scheduled for Feb.
7-10 at the Century Plaza Hotel in
Los Angeles.
Bank Investments
Economist Arthur B. Laffer and'
Bank of America Chairman Leland
S. Prussia will be featured speakers
at the 1982 Bank Investments and
Funds Management Conference,
February 10-12, at the Hotel St.
Francis in San Francisco.
The theme of the conference is
“Being a ‘Survivor’ in Today’s
F in a n c ia l E n v iro n m e n t.” A
Wednesday panel will be aimed at
conference attendees from money
center banks and regional banks
with international as well as
domestic funding responsibilities. A
second panel that day, for regis­
trants from community banks and
banks dealing primarily in domestic
funding operations, will aim at non­
bank competition and asset/liability
management policies and strategies.


The Associates: People who can help keep your
commercial customers in your bank.

The Associates, with resources over
$5 billion, has been a leading
source of asset-based financing for
over sixty years. Much of our
success is due to our close working
relationships with banks.
Our skilled, experienced, moneyfor-business specialists can help
expand your bank’s ability to meet
the special needs of your customers
—and keep your commercial
customer in your bank. A key
consideration in today’s competitive
banking environment.
Perhaps a good customer needs
more funds than you can loan.
Or, you may choose to limit your
employment in a particular loan
without jeopardizing the banking
relationship. Just two of a variety of
ways an Associates’ bank participa­
tion program can help you and your
Our people have the experience
and desire to create the best
possible program for you and your
customers. Get to know The
Associates. Contact the regional
office near you. A Loan Development
Officer will meet with you to discuss
your requirements.
The Associates:
People Worth Knowing.

A s s o c ia te s C o m m e rc ia l
C o rp oratio n
B usiness Loans

55 E. Monroe Street
Chicago, IL 60603
(312) 781-5800 (Call Collect)
Business Loans Offices in Atlanta, Boston,
Charlotte, Cherry Hill (NJ), Chicago, Dallas,
Denver, Detroit, Houston, Los Angeles, Miami,
Nashville, New York, St. Louis, San Francisco,
South Bend (IN), Tulsa.
Associates Commercial Corporation is a
subsidiary of Associates Corporation of
North America, a Gulf + Western Company.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982



Convention Calendar

ABA—American Bankers Association
AIB—American Institute of Banking
BAI —Bank Adminstration Institute
BMA—Bank Marketing Association
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women, Inc.
RMA—Robert Morris Associates

Sept. 19-Oct. 1—ABA National Instalment
Credit Schools, Univ. of Oklahoma,
Oct. 16-20—ABA Annual Convention, At­
Nov. 15-19—BMA Essentials of Bank
Marketing School, Univ. of New Hamp­
shire, Durham.

National Conventions & Schools

State Conventions & Schools

Jan. 17-23—ABA National Compliance
School, Univ. of Oklahoma, Norman.
Jan. 25-28—ABA National Insurance &
Protection Conference of Financial Insti­
tutions, Hyatt Regency, New Orleans.
Jan. 31-Feb. 3—ABA Conference for Branch
Administrators, Atlanta.
Feb. 7-9—ABA National Instalment Credit
School, Univ. of Okla., Norman.
Feb. 7-10—ABA National Trust Conference,
New Orleans.
Feb. 7-10—ABA Bank Telecommunications
Workshop, Century Plaza Hotel, Los
Feb. 10-12—ABA Bank Investments & Fi­
nancial Marketing Workshop, Hotel St.
Francis, San Francisco.
Mar. 7-9—ABA National Credit Conference,
Century Plaza Hotel, Los Angeles.
Mar. 7-10—BMA Community Bank CEO
Seminar, Marriott’s Rancho Las Palmas,
Palm Springs, Calif.
Mar. 14-18—IBAA 52nd Annual Convention,
Sheraton W aikiki Hotel, Honolulu,
Mar. 21-24 —ABA Trust Operation &
Automation Workshop, Hyatt Regency,
Mar. 21-24—ABA National Instalment
Credit Conf., Leows Hotel, Dallas.
Mar. 22-26—BMA Essentials of Bank
Marketing School, Univ. of Georgia,
April 3-8—BMA Management School of
Bank Marketing, Univ. of Georgia,
April 18-24—ABA Essentials of Banking for
the Banking Professional, Univ. of
Okla., Norman.
May 23-28—BMA Essentials of Bank
Marketing School, Univ. of Colo.,
May 23-28—BMA School of Trust Sales &
Marketing, Univ. of Colo., Boulder.
May 23-June 4—BMA School of Bank
Marketing, Univ. of Colo., Boulder.
June 6-18—ABA Stonier Graduate School
of Banking, Rutgers Univ., New Bruns­
wick, New Jersey.
June 13-16—ABA National Operations &
Automation Conference, Los Angeles.
July 11-16—ABA Natl. Advanced Ag Bank­
ing School, Iowa State Univ., Ames.
July 25-30—Midwest Banking Institute,
Univ. of Minn., Morris.
Aug. 8-21—Herbert V. Prochnow Graduate
School of Banking, Univ. of Wise.,
Aug. 16-20—BMA Essentials of Bank
Marketing School, Lake Forest College,
Lake Forest, III.
Sept. 19-22—NABW 6th Annual Conven­
tion, Los Angeles Bonaventure, Los
Angeles, Calif.
for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis


Feb. 14-17—CBA Consumer Credit Con­
ference, Broadmoor Hotel, Colorado
Mar. 9-10—CBA Hedging Seminar, Airport
Hilton Inn, Denver.
June 3-5—CBA Annual Convention, Broad­
moor Hotel, Colorado Springs.

Feb. 10-11 —IBA Consumer Credit Conf.,
Sheraton, St. Louis.
Feb. 24-25—IBA Marketing Conference, Lin­
colnshire Marriott, Lincolnshire.
April 14-15—IBA Commercial Credit Conf.,
April 19-20—NABW State Conference, Hy­
att Regency, Chicago.
May 11-12—Indianapolis Commercial Bank­
ers of Illinois, 8th Annual Convention,
Springfield Hilton.
May 17-28—Illinois Bankers School, SIU,
June 2-4—AMBI Annual Meeting, Indian
Lakes Resort, Bloomingdale.
June 6-8—IBA Annual Convention, Stouffers, St. Louis.
June 13-19—IBA Ag Lending School, ISU,
June 16-19—IBA Advanced Ag Lending
Clinic, ISU, Normal.
June 20-26—IBA Commercial Lending
School, Univ. of Illinois, Champaign.
Aug. 8-13—IBA Consumer Lending School,
EIU, Charleston.
Sept. 15-16—IBA Ag Credit Conference,
Ramada Inn, Champaign.
Oct. 5-6—IBA Trust Conference, Raddison,
St. Louis.

Jan. 27-28—All State PEP Meeting, Mar­
riott, Des Moines.
Feb. 8-10—IBA Marketing Conference, Mar­
riott, Des Moines.
Feb. 12-13—Group I Meeting, Marina Inn,
Sioux City.
Feb. 14-15—Group II Meeting, Holiday Inn,
Mar. 8-10—IBA AG Credit Conference,Scheman Center, Ames.
Mar. 27-31 —IBA Annual Washington, D.C.
Trip, Four Seasons Hotel.
May 12-14 —NABW State Conference,
Marina Inn, South Sioux City.
June 7-18—IBA Ag Credit School, Ames.
July 22-24 — MB Annual Convention,
Sept. 19-21 — IBA Annual Convention,
Marriott Hotel, Des Moines.

Feb. 9-10—MBA Senior Bank Management
Conference, Radisson, Bloomington.

Mar. 4—MBA Marketing Conference, Holi­
day Inn Downtown, Minneapolis.
May 2-4—NBAW State Conference, Rad­
isson South, Bloomington.
June 14-15 —MBA Annual Convention,
Radisson Hotel, St. Paul.
July 25-30—Midwest Banking Institute,
Univ. of Minn., Morris.
Aug. 19-22—IBM Annual State Convention,
Arrowwood Lodge, Alexandria.

Feb. 11-13—MBA Ag Credit Conference
Holiday Inn, Bozeman.
Mar. 4-5—MBA Time Management Seminar,
Ramada Inn, Billings.
Mar. 28-29—MBA Bank Presidents Con­
ference, Sheraton, Great Falls.
May 20-21 —MBA Commercial Lendin
Conference, Sheraton, Billings..
June 18-19—NABW State Conference,
Colonial Inn, Helena.
Aug. 24-27—79th Annual Convention &
Membership Meeting, Banff, Canada.

Jan. 20-21 —NBA Instalment Credit Con­
ference, Holiday Inn, Kearney.
Feb. 4-9—NBA Bank Presidents Conf.,
Canyon Hotel, Palm Springs, Calif.
Feb. 17-18—NBA Personnel Conference
Holiday Inn, Kearney.
Mar. 24-25—NBA Ag Outlook Conference,
Holiday Inn, Kearney.
May 6-8—NBA Annual Convention, Holiday
Inn Central, 72nd & Grover, Omaha.
Sept. 13-14—NBA Ag Credit Symposium
Lincoln Hilton, Lincoln.
North Dakota:

Feb. 17-19—Bank of N.D. Mid-Winter Break,
Kirkwood Motor Inn, Bismarck.
Mar. 30-April 2—NDBA Washington Legis­
lative Conference, Hyatt Regency on
Capitol Hill, Washington, D.C.
April 7-8—NDBA Ag Credit Conference,
Kirkwood Motor Inn, Bismarck.
April 28-30—NABW Annual Convention,
Kirkwood Motor Inn, Bismarck.
May 24-25—NDBA Annual Convention,
June 13-18—NDBA North Dakota School
of Banking, Univ. of N.D., Grand Forks.
Sept. 27 —NDBA Northeast Group Mtg.
Sept. 28—NDBA Northwest Group Mtg.
Sept. 29—NDBA Soutwest Group Mtg.
Sept. 30—NDBA Southeast Group Mtg.
South Dakota:

April 22-24—NABW State Conference,
Downtown Holiday, Sioux Falls.
May 6-7—SDBA Trust Conference, Holi­
day Inn, Mitchell.
May 17-18 —SDBA Annual Convention,
Rushmore Plaza Civic Center, Rapid City.
Oct. 7-8—SDBA Instalment Credit & Retail
Banking Conference, Sheraton, Yankton.
Oct. 27-28—SDBA Economics Seminar for
Young Adults, Holiday Inn, Mitchell.

Jan. 19-21—WBA Western Ag Lenders Seminar, Univ. of Wyoming, Laramie.
Feb. 4-5—WBA Crédit Conférence, Ramada
Inn, Casper.
May 20-22 —NABW State Conférence,
Ramada Inn, Casper.
June 9-11—WBA Annual Convention, Jack­
son Lake, Moran, Wyoming.
Nov. 12-13—WBA Chief Executive Officers
Conférence, Ramada Inn, Casper.




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Some people see them as stumbling blocks.
We see them as stepping stones.
A customer wanting to borrow more
than you’re willing to lend can be a
delicate obstacle that could be
a stumbling block to your business.
But, a participation loan with Heller
on a secured basis can be a stepping
stone that could lead to the success
of your business
Your bank funds a portion
of the loan while Heller provides the


balance up to your customer s full
borrowing capacity. Heller does all
the administrative work. Your bank
profits by sharing interest and
rendering other bank services to
your customer.
When you want the comfort
of a secured loan without the
administrative obstacles of handling,
let Heller help you take the right step.


Finance! Services i

Walter E. Heller & Company, 105 W. Adams St., Chicago, III. 60603. Other dices in New York • Montclair, NJ • Boston • Philadelphia • Baltimore

Syracuse • Minneapolis • Detroit • Grand Rapids • Cleveland • Kansas City • Denver • Atlanta • Charlotte • Miami • Tampa • Birmingham
Columbia, SC. • New Orleans * Houston • Dallas • Sen Antonio • Phoenix • Tucson • Albuquerque • El Paso • Salt Lake City • Los Angeles
Newport Beach, CA • San Francisco • Portland • Seattle • Spokane • Boise • San Juan, PR. Heller services are also available in Canada and
twenty-three other countries around the world.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 7982



Bank Promotions


and other an­
nouncements have been made

by the following banks:

Commerce Bancshares, Kansas
City: The promotion of two officers
to vice president was announced
recently. Eugene L. Mahaffey will
be vice president and manager of
retail lending in the loan review
department. He joined the Com­
merce organization in 1970 and had
been serving as vice president and
manager of the Bank Card Group of
Commerce Bank of Kansas City,
N.A., the holding company’s prin­
cipal bank. Russell L. Koos, who had
been assistant vice president, will
continue to serve as manager of the
research and development depart­
ment. He joined Commerce in 1972.
Stephen J. Freidell has been
elected assistant vice president of
Commerce Bank as manager of the
bond division’s money market
department. He had been in the
funds management of another Kan­
sas City bank.
Continental Illinois Corporation,
Chicago: Directors of the holding
company and the subsidiary Con­
tinental Bank have announced the
election of William L. Weiss, 52, to
the board of both institutions. Mr.
Weiss is president of Illinois Bell
Telephone Company. He served
with Bell Telephone in Pennsylvania
and Wisconsin from 1951 to 1978,
then was president and director of
Indiana Bell until assuming his pre­
sent post in 1981.
Directors of the holding company
and bank also elected John E. Porta
and Caren L. Reed as executive vice
presidents. Both previously were
senior vice presidents.
Mr. Porta, 49, is head of the
m ultinational banking services
department. He joined the corpora­
tion in 1974 and served as managing



for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis

director of the merchant bank in
London until 1976. He was elected
senior vice president responsible for
the financial services department in
1977 and had been in his present
position since April, 1980. He is a
1953 graduate of Notre Dame
University and holds an MBA from
Harvard in 1955.
Mr. Reed, 47, succeeded Mr. Por­
ta as head of the financial services
department. He joined Continental
Bank in 1956, was elected a group
head in the U.S. banking depart­
ment in 1971 and in 1976 was
elected senior vice president and
head of the bank’s European opera­
tions for multinational banking ser­
vices, headquartered in London. Mr.
Reed received his BS degree from
Iowa State University in 1956.
Continental Bank has named 24
new vice presidents. They are:
Sharon A. Bond, Michael A.
Crowe, Robert B. Evans, Roger F.
Farleigh, Edward J. Halle, and Paul
F. Lawless, trust and investment
Paul W. Boltz and Alan G. Jirkovsky, bond and treasury services.
James M. Karis, William J. Moser
Jr., and Don A. Resler, financial ser­
Mary P. Cloonan and Neile H. Coe
Jr., general banking services.
Ronald L. Sapiro, international
banking services.
Nancy L. Kosobud, multinational
banking services.
Michael B. King, special in­
dustries department.
J. Michael Baird and Jeffrey M.
Harbour, U.S. banking department.
Evan L. Evans, corporate person­
nel services.
William F. Anderson, William L.
Walton, and Kent E. Westerbeck,
operations and management ser­
Terry L. Francl and Daniel S.
Shook, corporate financial services.



Charter Corporation as a senior
auditor in 1974, joined First Na­
tional Bank the following year and
has served as comptroller sine
1979. He received his BS degree
from Rockhurst College in Kansas
Mr. Rigg, who joined the accoun­
ting department in 1973, is manager;
of the budget and cost accounting
department, and has been deputy
controller since April, 1977. He has
a BA degree from the University of
Missouri, Kansas City.
Miss Manne has been a First Na­
tional employee since 1974, and is a
manager in the bookkeeping depart­
ment. Mr. Massey has been an
employee since 1966, serving in th
transit department.

F irs t Chicago C o rp o ratio n :
Donald P. Jacobs, dean of the J.L.
K ellogg G ra d u ate School of
Management, Northwestern Univer­
sity, has been
elected to the
board of d ir­
ectors of the corp o ra tio n and
The First Na­
tional Bank of
Dean Jacobs
joined N orthwestern’s faculDp JAC0BS
ty in 1957, was
appointed chairman of the finance
department in 1969 and was named
dean in 1975. In 1970, he was award­
ed the Morrison Professor of Fin­
ance Chair, which he relinquished in
1978 when he assumed the Gaylord
Freeman Distinguished Professor of
Banking Chair. He served as co­
director of the staff of the
First National Bank of Kansas Ci­ President’s Commission on Finan­
ty: Craig L. Bouise, Sr., has been cial Structure and Regulation (Hunt
promoted to vice president and Commission) from 1970 to 1972. He
comptroller; David C. Rigg has been was also chairman of the board of
advanced to vice president, and Amtrak from 1975 to 1979.
Michele A. Manne and Mark T.
Manufacturers Hanover Trust
Massey, Jr., have been promoted to
Company, New York: Herbert L.
assistant vice presidents.
Mr. Bouise joined First National Shultz, Jr., has been named presi-


At last, a look at
the unheard-of:
an actual overline ad.

You may have noticed that most
banks don’t advertise the fact that they
offer overlines to their correspondents.
But Continental Bank does. In fact,
we’re running this ad to make a bid for
overlines—from our correspondent banks,
and from a lot of other banks we’d like to
have as correspondents.
Our approach to overlines is simple.
When our correspondent values a
customer enough to lend to its legal limit,
that correspondent has every right to
expect some pretty serious consideration
from us.

You can expect fast answers, too.
At Continental, credit requests aren’t
bounced from desk to desk. They go direct
to your account manager—who can say
“yes” or “no” on most loans. You get a
decision fast. And firsthand. From the
person who made it.
Call Robert C. Vasco at (312) 828-4046
with your request. Getting you together
with an overline could earn us more of
your business. And that’s what we’re after.
It’s what you expect from a top
correspondent bank. At Continental Bank,
it’s reality.



Federal Reserve Bank of St. Louis

Continental Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60693

Northwestern Banker, January, 1982


dent of the capital region and a
director of Manufacturers Hanover
N.A., a new bank being formed in
January, 1982, by the merger of
Manufacturers Hanover Trust Comp a n y /C a p ita l, M a n u fa c tu re rs
Hanover Trust Company/Central,
and Manufacturers Hanover Trust
Mr. Shultz, who had been senior
vice president of Manufacturers
Hanover Trust Company/Capital,
replaces Paul W. Kremer.
Mercantile Trust Company N.A.,
St. Louis: Two new members have
been elected to the bank’s board of
directors, it was announced last
month by Donald E. Lasater, chair­
man of Mercantile. They are Fred L.
Kuhlmann, vice chairman and ex­
ecutive vice president of AnheuserBusch Companies, Inc., and Harvey
Saligman, president and chief
operating officer of Interco, Inc.
Northern Trust Co., Chicago: The
board of directors has promoted 10
officers to senior vice president and
eight to vice president.
The new senior vice presidents
Paul D. Benda, bond department.
Kennth P. Kinney and Jeffrey F.

Ruzicka, international department.
Edward Byron Smith, Jr., ex­
ecutive department.
Gilian K. Geniesse and Joseph M.
Jarosz, operating department.
H. Grant Clark, Jr., and Bernard
M. Cygan, personal banking depart­
David B. Horn and Jeffrey H.
Wessel, trust department.
The new vice presidents are:
Jeffrey R. Chicoine and Quentin
C. Johnson, commercial banking
Edwin C. Buchanan and Michael
J. Karr, international department.
Vincent R. DeJohn and Robert T.
Hedrick, operating department.
Walter T. Jones and Paul Schwab,
Jr., trust department.

Ms. Byers joined United Missour
in 1967 and will assist Ms. Cooper in
accounting and control. She is also
an active NABW member.

Wells Fargo Bank, N.A., San
Francisco: Four new vice president
have been named by the bank and
its corporate affiliates. Ronald L.
Boles was named vice president and
manager, resi­
dential produc­
tion operations,
in Wells Fargo
Mortgage Com­
p a n y ’s S a n ta
Rosa facility. He
was with the
bank 11 years
until joining the
m o rtg a g e a f­
filiate in 1980.
United Missouri Bank of Kansas
Marci Rubin, 33, counsel in the
City: Claudyne V. Cooper has been bank’s legal department, and Greg­
promoted to senior vice president ory O. Wilhelm, 37, an attorney in
and Roberta J. Byers to assistant the bank’s public and governmenta'
accounting officer.
affairs department, were advance
Ms. Cooper is manager of the ac­ to vice president.
counting and control department
Arnold T. Grisham has been pro­
and has been with the bank 39 years. moted to vice president in the
She is a graduate of Kansas City Chicago regional office of Well
Junior College and is active in Fargo Corporate Services, a sub­
NABW work.
sidiary of Wells Fargo & Company.
He has also been named deputy
manager of the Chicago office’s
regional banking division an
manager of a new heavy equipment
and machinery dealer/distributor
group. He joined the corporate ser­
vices group earlier in 1981.

Meeting in Washington

For information and reservations, call:

Toll Free 800/621-6909
In Illinois 312/791-1901
Rates start at
$38.00 single— $46.00 double

Michigan Avenue at 8th Street
Chicago, Illinois 60605
Another fine Aristocrat Inn of America

for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

The need for a close working rela­
tionship between the EFT mar­
keting professional and the opera­
tions expert will be the emphasis of
the Bank Marketing Association’s
1982 conference on electronic funds
transfer, it was announced by Con­
ference Chairman Patricia D. Jor­
dan, senior vice president of Pay­
ment Systems, Inc., Atlanta.
Designed for bank marketers and
retail and corporate EFT product;
managers, the two-and-one-half day
meeting will be held February 7-10
at the Hyatt Regency Washington
on Capitol Hill. It will focus on con­
sumer awareness and the newi
technology of EFT products, the
current legal environment for EFT
services, computer home terminals current and future, service cards credit and debit, and ATM sharing
interstate and intrastate.


C a p ita l
F in an cial Corp.

C a p ita l
N o rth w e s t


Use Your Asset Power.

Get more mileage out of each dollar.

Your assets can secure a tailor-made revolving
credit line. Accounts receivable, inventories,
machinery, equipment, land and buildings can be
turned into Asset Money™ It’s the smoothest route
for companies short on working capital, those look­
ing toward expansion or growing firms eager to
increase sales. Or money for buy-outs, mergers
and acquisitions. Bank participations.
Banco Financial Corporation can help get your
company off to a great future with Asset Money.
Contact John Olson, Lee Mork, Robert Olson or
Paul Weingart, (612) 372-7988, 780 Northstar
Center, Minneapolis, Minnesota 55402. Or Jack
Hart, (303) 571-0515, One Denver Place, Suite
1512, 999 18th St., Denver, Colorado 80202.

Clients with considerable working capital may wish
to conserve it by leasing needed equipment.
Decide on a Lease Purchase Contract with a
guaranteed purchase option at the end of the term.
Go with a leverage lease or purchase
equipment outright.
Whatever your clients’ business, whatever the
equipment they need-Lease Northwest, Inc. has
the financing options that put it to work.
Contact Dave Michael in Minneapolis at
(612) 372-7416, Roger Meier in Omaha at
(402) 536-2310, Jim Sheedy in Des Moines at
(515) 245-3392, Chris Hoss in Fargo at
(701) 293-8136, or Jim Fetzerin Billings at
(406) 657-3581.

An Affiliate of Northwest Bancorporation

Federal Reserve Bank of St. Louis

Lease Northwest, Inc.
Affiliated with Northwest Bancorporation




Northwestern Banker, January, 1982


College in Waukesha.
Mr. Goetz will be responsible for
the review, analysis and administra­
tion of commercial finance loans
throughout the midwest region.
ROMOTIONS and other an­
Mr. Joerres will be responsible for Prior to joining the company, he was
nouncements have been made loan portfolio quality and client employed by Banco Financial Cor­
retention through management of poration of Minneapolis as an
by the following firms:
B arclaysA m erican /B u sin ess the loan administration department. analyst. He holds a BS degree in
Credit, Inc., Milwaukee: Kenneth J. The midwest service center serves business administration from Mar­
Joerres has been promoted to re­ Indiana, Kentucky, Michigan, Mis­ quette University in Milwaukee.
gional vice president, manager of souri, Ohio, Illinois and portions of
loan administration in the midwest Wisconsin and Kansas. A Mil­
Dawson Hail Insurance Co.,
service center here. Jim Goetz has waukee resident, Mr. Joerres joined Fargo, N.D.: James R. Dawson,
been appointed loan officer in the the firm in 1968 and holds a BS president has announced th a t
degree in economics from Carroll Charles M. Fosberg has rejoined the
same office.
staff and will be responsible for
business man­
ag em e n t and
p roduction of
hail and multi­
peril crop in­
surance through
the firm’s 500
agents. He is a
1974 graduate of
the University
of North Dakota
w here he re ­
ceived a degree in business ad­
ministration. He was with Dawson
Hail from 1974 to 1979, then spent
two years with Mid-American Fin­
ancial Supply of Omaha before re­
joining the Dawson firm.
Dawson Hail Insurance Co. is a
stock fire and casualty insurance
company licensed in North and
South Dakota, Minnesota and Iowa,
and also operates a general agency
in those states and Nebraska.
purchased)—for immediate
We’ve moved to
Institutional Investor, Inc., New
cash. This can help you benefit
100 Washington Square,
James Rubenstein, who had
from prompt payment dis­
Minneapolis, so we can meet
the American Banker dai­
the expanded borrowing needs counts, volume purchases and
since 1968 and had
of Midwestern businesses.
bureau chief in the
Bank Participations.
We offer experienced, flex­
several years,
ible, creative financing that com­ We’ll participate with your
become man­
bank, to structure a loan package
bines nadonal resources and
a news­
local-market understanding. We
can often go beyond your bank’s without disturbing your bank
Investor. Mr. Rubenstein, 42,
ability to provide capital for your
was news editor in
Call us and we’ll
growth, expansion and profit.
World News Bureau
Asset-Based Loans. You
Inc. and was cor­
new business
can borrow money against your
Cleveland World
current or fixed assets—your
Business Credit
McGraw-Hill, a
receivables, inventory, plant and
publisher of trade magazines. He is
equipment (existing or to-bea graduate of the University of New
Mexico, Albuquerque. Mr. Ruben­
stein has moved to New York City.



We’ve changed
our location
but not our first priority:
Service and flexibility
in business financing.

An a ffiliate of

encan/BusinessCredit. Int

Servke is the difference between our money and other money.
■ " 1 0 0 W ashington Square, Suite 1117, M inneapolis, M N 55401 (612) 339-2222^™
M ailing Address: P.O. Box 9418, M inneapolis, MN 55440

for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

Inter-Regional Financial Group,
Inc., Minneapolis: Directors of IFG,
the parent firm of Dain Bosworth
Incorporated, and Rauscher Pierce
Refsnes, Inc., Dallas, have signed a


“/ looked at Burroughs,
NCR and some off-premise
banking systems. CADO
was the most

says James E. Jorgensen, President Central State Bank, State Center, Iowa
A nd it handles everything else you w ant
a system to do in perfect safety: D em and
D eposits, N .O.W . Savings, Installm ent &
C om m ercial L o an s, C D ’s, A u to m a te d
C le arin g , H o u se P ro c e ssin g , C o n so li­
d ated 1099’s, C apital N otes, A dvanced
Notices, G eneral Ledger, W ord Process­
ing, Payroll, W -2’s. Everything.

“ CA D O could process all the daily p ro o f
items we needed and gave us up-to-them inute d ata at any time. I converted to
the system in a few days. The loan pack­
age was up and w orking in three weeks.
Checking, savings, and N .O.W . accounts
were on-line in six weeks!’
M r. J o r g e n s e n h a s d i s c o v e r e d
B A N C A D O — the total inform ation sys­
tem fo r c o m m u n ity b a n k s. I t ’s fro m
C A D O — w orld leader in com puter and
w ord processor technology.

H eart o f the system is C A D O ’s C ustom er
In form ation File. It holds com plete data
on every custom er including loan limits,
history, and checking account overdraft
d a ta . A n d it in te rfa c e s w ith o th e r
BA NCA D O program s for autom atic u p ­
dates th roughout the system.

This single system does the job o f both
a p ro o f m achine and a posting system.

For more information about the remark­
able BANCADO System fo r community
banks do what James Jorgensen did.
Call or write CADO today.


CADO System s C orporation

NB 1

2771 Toledo Street • Torrance, CA 90503
(213) 320-9660
Please send me more information about BANCADO—
the total information system for community banks.


Federal Reserve Bank of St. Louis




Northwestern Banker, January, 1982

plan of reorganization and agree­
ment of merger by which RPR
would become a wholly-owned sub­
sidiary of IFG.
RPR is an investment banking
and securities firm with 24 offices in
the southwest. Its September, 1981,
year-end revenues were $78 million
and net earnings were $3.37 million.
Dain Bosworth is an investment
banking and securities firm with 44
offices throu g h o u t the upper
midwest and Rocky Mountain areas.
In 1980, IFG reported revenues of
$123.3 million and net earnings of
$7.28 million.

The W estcap Corporation,
Houston: S. David Arnspiger has
been elected chairman, it was an­
nounced by Clifton Iverson, Jr.,
president and chief executive officer.
Mr. Arnspiger has moved to Westcap from Underwood Neuhaus &
Co., Inc., where he seved as first vice
president and co-manager of the
bond department.
Prior to his affiliation with Under­
Neuhaus, Mr. Arnspiger was
A Cedar Rapids native, Mr. Map­
vice president of Rowles,
les is a graduate of Cornell College in
& Co.
Mt. Vernon, la., and holds a
master’s degree in marketing from
the University of Iowa. He began
his banking career at Continental Mrs. Roger Anderson Dies
MorAmerica Financial Corpora­ Bank in Chicago and in 1965 became
An apparent heart attack caused
tion, Cedar Rapids: Jerry S. Maples assistant vice president and trust of­ the sudden death of Mrs. Roger E.
has been named president and chief ficer of Jackson State Bank in Ma- (Marilyn) Anderson, 57, last month
executive officer.
quoketa, la., a holding of MorAmerica at the family home in Northbrook,
He succeeds Robert E. Johnson, Financial Corporation. Mr. Maples 111. Mr. Anderson is chairman and
who will become vice chairman of served as president of Jackson State chief executive officer of the Con­
the board. Succeeding Mr. Maples Bank from 1974 to 1978, when he tinental Illinois National Bank &
as executive vice president and chief moved to Cedar Rapids as executive Trust Co. of Chicago.
operating officer is Emmett J. vice president of MorAmerica Fin­
In addition to her husband, Mrs.
ancial Corporation. Mr. Maples Anderson is survived by two sons,
The promotions were announced serves on the boards of the Blair and David; a grandson, Ben­
by Peter F. Bezanson, chairman of MorAmerica Financial Coporation, jamin; her mother, Marie Spence,
the board, at the corporation’s an­ Hawkeye Bancorporation and the and a brother, John Spence.
nual meeting in Cedar Rapids.
University of Dubuque, as well as
numerous civic groups.
Mr. Scherrman joined Mor­ United Missouri Banks,
America Financial Corporation in Smith & Yehle Win Awards
1958 as an employee of LeaseUnited Missouri Banks and its
America Corporation. He served as
agency, Smith & Yehle
president of that MorAmerica sub­
sidiary since December 1977, and as Inc. of Kansas City won a first place
For Installment Loans
executive vice president and direc­ “Marconi Award’’ and a Certificate
tor of MorAmerica Financial Cor­ of Excellence in the Greater St.
poration since January 1981. Mr. Louis Radio Broadcasters Associa­
Scherrman is also treasurer and tion Marconi Awards Competition.
The winning entries for United
director of Oak Hill Engineering
and Smith & Yehle were
Company; director of MidAmerica
Mutual Fund, Inc., and American 60-second humorous radio commer­
Insurance and Industrial Fund, Inc.; cials in the national/regional
• A u to m a te d
and director of Iowa National Mutual category. Subject matter was com­
• M anual
Insurance Company. Currently a lec­ mercial business.
There were 235 entries in the first
turer for the National Installment
Marconi Awards Competi­
Banking School at the Universtiy of
first place Marconi
Colorado, Boulder, Mr. Scherrman is
presented in the na­
also active in the American Associa­
tional/regional group and five in the
tion of Equipment Lessors.
local/retail group.
Victor B u sin ess Products,
To date th is year, U nited
Chicago: Responsibilities for finan­ Missouri and Smith & Yehle have
cial operations have been placed won eight awards in four contests
call or write:
with Vincent Lepore, new vice they have entered, including Na­
president-finance, reporting directly tional Bank Advertising Awards
to President Ed Carlson. The firm is (Trade Publication, Newspaper);
■T - : _ G.D. VAN
a subsidiary of Kidde, Inc., and Mr. Kansas City Ad Club Omni Awards
Lepore has served the parent com­ (Trade Publication, Newspaper,
524 Plymouth Building
pany the past six years as vice presi­ Television); National Advertising
12 South Sixth Street
dent of Kidde Consumer Durables Agency Network (Radio); St. Louis
Minneapolis, Minnesota 55402
Corp., a group of 29 Kidde com­ Radio Broadcasters (two radio
(612) 333-2261





for FRASERBanker, January, 7982
Federal Reserve Bank of St. Louis


ee G u n d e rs o n N a m e d P re s id e n t of
P ro ch n o w G ra d u a te S c h o o l of B an king
E. Gunderson has been
named president of the Herbert
Prochnow Graduate School of
Banking at the University of
Wisconsin-Madison. Mr. Gunder­
son, president of the American
B a n k e rs A s­
sociation during
president of the
Bank of Osceola,
Wis., is the se­
cond banker to
head the school,
which was foun­
ded in 1945. Dr.
H e rb e rt
Prochnow, a co­ L.E. GUNDERSON
founder of the School, had been its
only director until his retirement
last September.

MH Leasing Opens
Office in Minneapolis
Manufacturers Hanover Leasing
Corporation, the world’s largest
ank-affiliated leasing and equip­
ment financing organization, has
opened an office in Minneapolis.
MHLC is an af­
filiate of Man
ufacturers Han­
over Trust Com­
p a n y , fo u rth
largest bank in
the U.S.
R ichard W.
Myers has been
named branch
m anager, and
John N. Norris,
senior representative. The Min­
neapolis branch, located at 1010
Pillsbury Center, will serve Min­
nesota, Iowa, Nebraska, North
Dakota and South Dakota.
Manufacturers Hanover Leasing
Corporation serves virtually all in­
dustries with capital equipment ex­
pansion and replacements needs
through a worldwide network of 19
U.S. and 25 international offices.
MHLC provides total equipment
financing, including leases and other


and Leasing Company, Minneapolis,
and had prior experience with IDS
Leasing Corporation here and First
debt instruments. Offices also were Bank Minneapolis.
opened last month in Miami, Fla,
Born in Des Moines, Mr. Norris
has been calling in the Minnesota
and Charlotte, N.C.
Mr. Myers, a native of Min­ area for MHLC since 1980. Pre­
neapolis, joined MHLC in August. viously, he worked as a represen­
He had been associated with tative marketing credit and cash
LeaseAmerica Corporation in Cedar management services to law firms
Rapids, la. where he was an ex- and high net worth individuals for
cutive vice president. He also was the Northern Trust Company in
vice president at Gelco Equipment Chicago.

I B AA S ta te D ire cto rs A re N a m e d

LECTIONS of state bank directors in 14 states were announced
by the Independent B ankers
Association of America recently.
Elections for state represen­
tatives to IBAA’s executive council
are held annually in one-third of the
states in which the association has
membership. The term is three
years. The only exception this year
is the Oklahoma director who will
serve one year to fill a vacancy in
that state.
Directors are elected by mail
balloting in each state.
New directors are:
ARKANSAS: Amos David, chair­
man, Caraway Bank and Bank of
Imboden, Caraway. He succeeds Joe
Siebenmorgen of Quitman.
COLORADO: Walter C. Emery,
chairman and chief exective officer,
Bank of Denver. He succeeds the
late Charles H. Starks.
Foster, president, The Seymour
Trust Company, Seymour. He suc­
ceeds Edward J. Cooney of Woodbridge who had served the max­
imum two terms.
LOUISIANA: L. J. Folse, presi­
dent and chief executive officer, Ter­
rebonne Bank & Trust Company,
Houma. He succeeds John Kenaley
of Lafayette who had served the
maximum two terms.
MINNESOTA: Gordon C. Don­
nelly, president, Bank of Wheaton,


"Accepted Sale Registers by Bank
Clerks Everywhere"
Fo r



O akland, Iowa
Federal Reserve Bank of St. Louis


who succeeds Russell Hanson of
Benson who had served the max­
imum of two terms.
NEBRASKA: Lester W. Souba,
president, David City Bank, who
succeeds Wesley D. Bowen of
Omaha who had completed the max­
imum two terms.
NEW YORK: Robert B. Mac­
Donald, president and chief ex­
ecutive offeier, State Bank of Chittenango, who succeeds Robert H.
Fearon Jr., of Oneida, a two-term
Baertsch, executive vice president,
Farmers & Merchants Bank, Beach,
who succeeds Aron D. Anderson.
Anderson was not a candidate for
OKLAHOMA: Jack M. Dickey,
president, First National Bank,
Custer. He was elected to fill a
vacancy created by the resignation
of N. L. McClain of Oklahoma City.
This term ends January 3, 1983.
TEXAS: Ruben H. Johnson,
chairman and chief executive officer,
United Bank of Texas, Austin. He
succeeds D.E. Benham of Morton
who was not a candidate for reelec­
UTAH: Ronald A. Carnago, presi­
dent, Sandy State Bank, Sandy, the
first director for his state since it
became eligible to elect a member to
the IB AA executive council by vir­
tue of having at least 10 member
WISCONSIN: Henry E. Zander,
president, Bank of Waunakee, who
succeeds Theodore I. Arneson of
Barneveld, a two-term director.
Directors reelected are:
T. Abbott, president, Bank of
VIRGINIA: William J. Billig Sr.,
p resid en t, N ational B ank of
Northwestern Banker, January, 1982



at processing paper items
but not so very scary.

The Paper Tiger
can process Money
Orders, NOWs and
Official Checks more
efficiently and at lower
cost to you than your
back office.
Because that's all we do.
We reconcile, file, store, trace,
stop payment and clear up all the
problems that pop up daily. We
do everything your back office
now does and we do it at lower
cost. And, in the case of Official
Checks, you may also be able
to increase balances or receive
cash payments.
The Paper Tiger is financially stable (a
member of the Greyhound family), totally
reliable (we've been in the payments
"systems business since 1940), and, unlike other
suppliers of remittance services, we are not in
the least bit interested in becoming a bank.
There's nothing to fear from the Paper Tiger; he works
expressly for you.
For more information call 1-800-328-5678 and ask for
Gene Lewis.

Travelers Express-ly working for you.

Travelers Express
5075 Wayzata Blvd., Minneapolis, MN 55416
Federal Reserve Bank of St. Louis


MABSCO offers banks
access to new MMF
COMPETITIVE tool for banks
to use in 13 states to challenge
the national Money Market Funds

researched, developed and brought
to market in just six months.
Richard E. Gandrud, immediate
past president of the Minnesota
Bankers Association and president
of the Pope County State Bank at
Glenwood, was elected chairman.
William H. Crawford, president of
the Oklahoma Bankers Association
and president of the First National
Bank of Frederick, was elected vice
chairman. Acting secretary-trea­
surer is Neil Milner, executive vice
president of the Iowa Bankers
Association. Robert E. Harris, ex­
ecutive vice president of the
Oklahoma Bankers Association was
appointed official press spokesman.
Money Market Objectives
This first product, the American
Money Market Fund, was developed
by the Task Force with objectives
based on the following criteria, as
described by Larry Lanie, president
of the Guaranty National Bank of
Tulsa, chairman of the AMMF Task
1. To recycle money lost to the
money fund industry back into the
local communities.
2. To re-acquire and retain those
bank customers lost or that could be
lost to other customers.

became available January 4 in the
State of Oklahoma under the aus­
pices of the recently-form ed
MABSCO — Mid-America Bankers
Service Company. On that date,
MABSCO began a pilot project in
20 Oklahoma banks to market its
American Money Market Fund. It is
planned to offer the AMMF in the
rest of the MABSCO region as early
as mid-February.
With this product, MABSCO has
become a viable organization of 13
state banker associations only 10
months after the initial meeting of
the interested parties. That first
meeting was held February 28,
1981. After several additional
meetings in following months, in­
cluding appointment of four Task
Forces on June 1 to develop four
specific products, the association
representatives formally organized
MABSCO September 3, as reported
The 13 state banker associations
comprising Mid-America Bankers
Service Company are: Arkansas,
Colorado, Illinois, Iowa, Kansas,
Michigan, Minnesota, Missouri,
Nebraska, North Dakota, Okla­
homa, South Dakota and Wisconsin.
Texas was an original participant,
withdrew during 1981 and was
replaced by Arkansas; Colorado
joined during the year and signed
the September 3 incorporation.
Task Force Appointed
The product goals assigned to the
Task Forces June 1 were:
1. A Banker’s Money Market
2. An Insurance Company.
3. An Ag Credit Corporation.
A Secondary Mortgage Com­
First priority was given to the
Money Market Fund, which was
Federal Reserve Bank of St. Louis

3. To increase fee revenue to the
member banks.
After detailed evaluation of pro­
posals solicited from three money
market fund management groups,
with the help of Touche Ross & Com­
pany Kansas City office, the Money
Market Task Force recommended
Fidelity Management Group of
Boston. The MABSCO board ac­
cepted that recommendation, as
noted above, during the ABA con­
vention in October. Fidelity Group
has more than $13 billion under
management, of which five MMFs
have in excess of $9 billion, while the
balance is in 21 other fixed income
and equity products.
The Task Force, Mr. Lanie re­
lates, decided on a full financial ser­
vice account that will provide the en­
tire range of financial services to
compete with Merrill Lynch and its
CMA, American Express/Shearson,
Prudential and Sears. MABSCO’s
AMMF, he says, “contains standard
and optional features that can be
customized at the bank’s and/or
customer’s discretion, depending
upon the extent of the services
desired by the customer from the
AMMF Product
“This new financial package in­
cludes a NOW or DDA account, a
link to a money market fund, a line
of credit and/or debit card, bro­
kerage services through use of an
agency agreement, and other new
services as they become available.
Commercial banks participating in
the MABSCO financial package pro­
gram can choose to make the ac­
count as simple as linking the NOW
or DDA account to a money market
fund (AMMF) through a sweep of
the NOW or DDA account to and
from the fund as balances dictate.
“On the other hand,” Mr. Lanie
continues, “the bank can make the
Northwestern Banker, January, 1982


Standard Package: DDA Link to MMF

plan provides a competitive level
playing field with Merrill Lynch and(
other leaders in the financial ser­
vices industry.
5. The MABSCO program pro­
vides for multiple, flexible operating
systems to allow both large and
New AAMF Product
small banks to offer competitively
the service to their customers.
Mr. Lanie has explained that “the
role of MABSCO is to introduce and.
coordinate the program, to review
any new and existing products and
services, and to provide liaison to
member banks from Fidelity.
“The role of Fidelity is to sponsor,
the money market funds as the in­
vestment advisor and the dis­
trib u to r of the fund...prepare
marketing material and provide
significant support in the marketing^
systems and opera­
tions support and user training to
the commercial banks that desire to
use the program...provide a discount
account complex by evolving around come for the provision of these ser­ brokerage rate schedule that is com- (
the NOW account, a link to a money vices to cover the costs involved and petitive within the area.”
market fund, a line of credit, a credit a reasonable profit to the bank.”
Role of the Bank
card, discount brokerage services,
Advantages to Banks
and a bank debit card to allow the
Mr. Lanie further describes the
Significant points made in con­
customer to access this account
of the individual bank this way:<
sidering AMMF are these:
through the use of an ATM.
“ 1. Establish a service profile and
“In the current environment, the
develop an overall marketing stra­
upscale customer must use several designed by bankers for banks.
2. The MABSCO program is not tegy.
institutions to acquire the services
“ 2. Determine the level of service
demanded. We feel th a t the tied to any credit or debit card just your bank wants to provide; i.e.,<
MABSCO program will allow bank
3. It is for member banks of the what options you want to offer to
customers to purchase the financial
your customers.
services they now have to go to their state associations only and is a new
“3. Evaluate your operating and
commercial bank and a brokerage
capabilities to determine the
4. The product competes very
firm to acquire. It represents the
your involvement in data*
first thrust on such a massive scale well with the Merrill Lynch-CMA processing.
of the commercial banking industry account and other MMFs. The addi­
“ 4. develop your own pricing
fighting back against the Merrill tion of discount brokerage services strategy independently and geared
Lynch and Shearson American Ex­ as an option under the MABSCO to your customer base.
press juggernaut.”
“ 5. package and market the ser-1
Next Month
The investment criteria set forth
The February issue will have an up­
by the MABSCO Task Force pro­
date on progress of a similar type of
“ 6. train the operations and
money market fund program which
vides for high quality, short-term,
customer contact staffs at your
has been offered to 11,250 independent
fixed income obligations with
banks nationwide by Independent
maturities of one year or less and an
“7. Implement advertising and/or
Bancsystem s, Minneapolis (INDEX),
average maturity not to exceed 120
d irect mail cam paign and/or
since last fall, as reported earlier.
days. All investments are in U.S.
Organized by Independent State Bank
customer seminars.
of Minneapolis, a wholesale correspon­
dollars, there are no foreign in­
“ 8 Open accounts.”
dent bank organized by independent
struments purchased by the fund.
When the AMMF startup date
bankers of Minnesota, INDEX is
How can a commercial bank legal­
was announced recently, Mr. Lanie
m a rk etin g its A u to m a tic A sse t
ly access a money market fund or a
Reserve Management (AARM) ac­
stated, “To successfully compete in
count through Federated Group of
brokerage service? “ In all cases,”
the 1980s, commercial banks need to
Pittsburgh. Serveral hundred banks
explains Mr. Lanie, “the link to the
offer products that are better than
have joined INDEX, which also offers
money market fund and the provi­
those offered by the competition.
a compliance advisory service, bank
sion of discount brokerage services
The MABSCO financial services
profit forecasting, data processing ser­
vice, an advertising and marketing
through the commercial bank will be
package does this as it not only
program, and on-line, same-day invest­
done through agency agreements
matches the benefits of the competi­
ment and withdrawal. Details of IN ­
between the customer and his com­
tion, but provides the personal full
D E X ’ progress will be reviewed in this
mercial bank...In both instances, we
service that only a bank can
coming article.
believe the bank can generate fee inprovide.”
Banker, January, 1982
Federal Reserve Bank of St. Louis

^WELCOMING guests to the Northwestern National Bank of Minneapolis conference were these senior officers (from left): W. James Arm" trong, pres. & c.o.o.; E. Peter Gillette, Jr., chmn. & c.e.o., and Donald G. Pederson, sr. v.p. RIGHT— Mr. Pederson (center) head of the cor­
respondent bank dept., is pictured with two other Northwestern Natl. sr. v.p.’s who are former heads of that dept. — Harry G. Wahlquist
(left) and C. Paul Lindholm (right).

Northwestern Bank of Minneapolis guests told:

Plan well to meet competitive change

Editor and Publisher
Associate Publisher

^É É ^L A N N IN G for Profits” was
I the theme for the 17th An­
nual Correspondent Banking Con­
ference and Duck Dinner hosted last
month by the Northwestern Na­
tional Bank of Minneapolis at the
Hyatt Regency Hotel. More than
850 bankers and spouses attended
the dinner.
A welcome was extended by E.
|Peter Gillette, Jr., chairman and
chief executive officer. He intro­
duced W. James Armstrong, who
becam e p re s id e n t and chief
operating officer of Northwestern
»National la st Septem ber. As
keynote speaker, Mr. Armstrong
outlined the continuing pace of
change that is leading to a more

• I t will lead quickly to better
allocation of resources.
Mr. Armstrong then pointed out
the role of the chief executive officer
in the planning process, stating he
“must make a total commitment to
planning. It can’t be left to someone
else. It requires a commitment of
time and energy. It will require a
change in life style for some. “I t’s
your responsibility to do several
“Establish a format that is clear
to your staff of what you want.
Outline parameters or constraints so
the staff will know their limitations
and opportunities. If you want to
grow at a 10% or 20% rate, then
outline the limitations.
“Outline your objectives.
“Establish a complete strategy of
what you want to do to get your cor­
poration where you want it to be.
“ E sta b lish specific resp o n ­
sibilities for certain duties to carry
out your strategy planning and get­
ting it done.

competitive environment in the
financial industry. “All of this will
require more planning,” he stated,
then listed his conceptualization of
• I t is a design of the long-term
purpose of your organization.
• It is a policy of constraints.
• It sets forth a current set of
plans and goals, with a plan to
achieve them.
• It is not a staff job but a line
task; you can’t have outside per­
sonnel do it.
• It must be decision-oriented.
• I t is a process, not a system.
You must have your own unique
• It is an evolutionary matter. It
will never be as good as you
want it to be, so you keep revis­
ing it as time goes by.
• I t will assure that strategic
issues for your bank are being PLAN WELL...
(Turn to page 26, please)

l e f t — Tom Hayden, Allison-Williams inv. firm, Minneapolis; Richard C. Storlie, v.p. and head of Northwestern Nat’ls correspondent con­
tact division; Eddie Payton, Joe Senser and Bobby Bryant of the Minnesota Vikings football team, and Mr. Pederson. RIGHT — Dan
Leclerc, (center), pres, of Lease Northwest, who was one of the program speakers, visits with Carmen and Jim Campbell, pres, of United
States National Bank of Omaha, a Banco affiliate.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


ALARY increases of more than
9% were anticipated for 1982
over 1981 by 96.6% of the more than
200 bankers taking part in the an­
nual Salary Survey conducted by
the N orthw estern B anker (Chart

Bank Officer
Salary Survey

1 ).

Question 1
In the nine states surveyed,
respondents from Montana listed
the highest anticipated average
salary increase—10.5%—while those
from Iowa turned in the lowest ex­
pected salary raise—7.6%—for of­
ficers. The nine-state average of
9.4% was slightly higher than the
9.2% increase anticipated for staff
members of the responding banks.

Chart No. 1
Q. Do you plan to increase the
salaries of your staff for 1982?
Yes — 96.6%
No — 3.4%
How much increase do you plan
for officers?
How much increase do you plan
for the other staff?

Question 2
Question 2 asked for information
for 1981 and anticipated 1982 giving
base annual pay, bonus and/or profit
sharing, insurance income (if any)
and value of other benefits (ex­
cluding dividends). This information
was requested separately for #1, #2
and #3 officers, and is shown in
Chart 2.
The first two columns of Chart 2
show base salaries for 1982 and 1981
for four separate deposit size groups
— under $10 million, $10-$25
million, $25-$50 million, and over
$50 million. The third and fourth col­
umns show total income for 1982
and 1981 for the same deposit
groups. In columns three and four,
the figure in parentheses on the se­
cond line shows how much more per­
centage wise the total income is to
the base salary for the year in­
dicated. The widest variation ap­
pears in the 1981 salaries paid to #3
officers in the $10-$25 million
deposit group. Their total income of
$25,728 for 1981 was 65% greater
than the base salary of just $15, 595
which the responding banks listed
for 1981. In the 1982 column for
that group, the total income is
planned to rise about $3,000, while
the salary level is being raised near­
ly $7,600.
As part of Question 2, respon­
for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis

A N o rt h we s t e r n B a n k e r S urve y

dents were asked also to indicate
whether the officer whose salary was
being listed is a stockholder. Chart 3
gives the results of that question for
#1, #2 and #3 officers. It shows that

83.7% of the #1 officers list some
stock ownership. A few list majority1
control, a few show upwards of 20%
ownership, while most were less
than 10% ownership. That owner-

Chart No. 2
Q. What is the planned income in 1982 for the top three officers of your bank and
what is their 1981 income? (Percentage figures in columns three and four show
increased percentage over base salaries.)
#1 Officer


$10 million



Base Salary

Total Income














Over $50





Under $10















Over $50





Under $10















Over $50





#2 Officer

#3 Officer

Chart No. 3
Q. Is this officer a stockholder?
Officer #1 Yes - 83.7% No - 16.3%
Officer #2 Yes - 46.5% No - 53.5%
Officer #3 Yes - 31.8% No - 68.2%

ship figure is 46.5% for #2 officers
and 31.8% for #3 officers.
As in previous Salary Surveys, a
comparison is given between the
salaries paid the #2 and #3 officers
with the ft1 officer. These relation­
ships, by the same four deposit
groups, are shown in Chart 4.
Question 3
Question 3 asked if any fringe
benefits were added by the bank this
past year, and if any are anticipated
to be added for 1982. Chart 5 shows
these results. Fewer than one-fourth
of th e
re s p o n d in g
—23.6%—said new fringe benefits
were added in 1981, and only 8.8%
expect added benefits in 1982.

to permit such an interstate pur­
Chart No. 5
Q- (A) Have you added any fringe
As part of the proposed combina­
benefits this past year (1981)? (B)
Exchange International will
Any new fringe benefits planned
issue $15 million of 8% Senior non­
for 1982?
voting, callable, preferred stock to
(A) 1981 Yes — 23.6%
No — 76.4%
Citicorp in exchange for Citicorp’s
(B) 1982 Yes — 8.8%
$12 million of Central Series B,
No — 91.2%
preferred stock, a $2.1 million term
note of the holding company, and
Among the 13 separate benefits the cancellation of a related warrant
listed as additions during 1981, den­ to purchase C entral’s common
tal insurance was mentioned 19 stock. Citicorp’s $3.5 million note of
times, while life insurance was men­ the holding company will be paid.
tioned 8 times. Improved health Citicorp will continue its role in pro­
plans and pension plans received viding services to the new entity.
several votes. Other mentioned once
Consummation of the transaction
or twice were vision insurance, stock is dependent upon approval of de­
purchase plan, retirement benefits, finitive agreements by the boards of
hospital plan, disability, auto, profit directors and stockholders of both
sharing and IRA account.
enterprises and receipt of necessary
Four banks expect an improved or approvals from federal banking
new pension plan in 1982, three are authorities.
looking for increased insurance, and
two state that dental insurance will
be paid for by the bank.

BankAmerica to Acquire
Schwab Securities Firm

Chart No. 4
Percentage relationship of income among #1, #2 and #3 officers, by deposit banks.
$10 million
$50 million
Aveage for
all size banks

n to #1

#3 to #1

#3 to #2
















E x c h a n g e N a tio n a l B ank and C e n tra l
N a tio n a l B an k A g ree to M e rg e
XCHANGE International Corp­
oration, parent of the Exchange
National Bank of Chicago and Cen­
tral National Chicago Corporation,
parent of Central National Bank in
Chicago, have announced an agree­
ment in principle to merge the two
organizations. The combined asset
base of the new entity will be ap­
proximately $1.2 billion.
In a joint statement, Ira J. Kauf­
man, chairman of Exchange, and
Jackson W. Smart Jr., chairman of
Central National, said that Ex­
change International Corporation
will be the parent company of the
new banking entity with Mr. Kauf­
man remaining as chairman and
chief executive officer; Benjamin B.
Cohen, as vice chairman, and Homer
Federal Reserve Bank of St. Louis

J. Holland, president, who will also
be responsible for managing the new
bank. Bruce L. Dahltorp, currently
president of Central National Bank,
will assume a major role in the
management of the combined banks.
A Central National spokesperson
said Mr. Smart’s final role after the
merger had not yet been determined.
Citicorp of New York City, had
earlier made a $12 million invest­
ment in nonvoting Central National
stock, loaned it $5.5 million and con­
tracted to take over much of the
bank’s back-office operations, and
as part of that transaction received
a 15-year option to purchase as
much as 30% of the Central Na­
tional’s voting common stock if
state and federal laws were changed

BankAmerica Corporation and
the Charles Schwab Corporation
have signed a letter of intent under
which the bank holding company
will acquire the parent of Charles
Schwab & Co., Inc., the nation’s
la r g e s t d is c o u n t s e c u ritie s
brokerage firm, for 2.2 million
shares of BankAmerica common

MGIC Offers Banker’s
Fidelity Bond Program
MGIC Indemnity Corporation, a
major writer of specialized financial
institution coverages, is entering
the commercial bank fidelity bond
market. In addition to the tradi­
tional bankers blanket bond, a
separate kidnap/ransom policy and a
broad extended coverage package is
In addition to writing a Form 24,
MGIC is offering a combination
policy of supplemental coverages
that address bond-related liability
exposures encountered in everyday
banking transactions. Data process­
ing transit liability, stop payment,
cash letter and “all-risk” safe
deposit are among the coverages
MGIC is also offering a separate
kidnap/ransom policy and excess
limits for employee dishonesty,
burglary, robbery and securities
Northwestern Banker, January, 1982


City bankers look at what’s ahead
N UPDATED look at the current and projected
scope of correspondent banking is provided by
comments from regional and major city correspondent
bankers in the N orthwestern B a n k e r ’s 1982 Cor­
respondent Bank Survey. From their peculiar vantage
point of those who serve the correspondent needs of
community banks, and understand the needs and goals
of the banks for which they work, these veteran cor­
respondent officers provide a unique insight into the
evolution of correspondent banking in the 1980s. Their
comments follow:

We’ve accomplished a great deal in the past year,
thanks to a strong operations department, internal
cost controls and competitive pricing. The equipment,
procedures and people that we have in place will enable
us to continue to meet the rapidly changing and expan­
ding needs of our customers.

Executive Vice President
Manufacturers Hanover Trust Co.
New York, N.Y.
Vice President
First Bank Saint Paul
Saint Paul, Minn.

E ’RE VERY optimistic about the outlook for
correspondent banking because we believe the
strengths of our initial operations department will
enable us to meet the changing needs of the correspon­
dent bank market.
For example, when Fed pricing was introduced last
August, we seized the opportunity to increase our
volume four-fold. The key to our success has been a
pricing strategy based on high volume, low unit cost.
And our customers have responded to our pricing
strategy as projected.
We have also expanded our computer services at a
time when other suppliers are backing away from the
In the beginning of 1981, we made a commitment to
increase our overline volume. We backed up our com­
mitment by improving the credit skills of our officers
and by giving them responsibility for credit decisions
in their territories.
More recently, we announced a new consulting ser­
vice to provide operations management expertise on a
fee basis to other banks. This is meeting another need
in the market place.
The critical importance of asset/liability manage­
ment has led us to develop a computer simulation mod­
el and advisory service that will soon be introduced.

Banker, January, 1982
Federal Reserve Bank of St. Louis

HE BANKING industry has completed a decade
of change and faces the prospects of even more farreaching, fundamental change in the future. What is
heartening in all this is that we have not only learned
to cope with change but to prosper while doing so.
That gives me a measure of confidence about the
While much of the current dialogue among bankers
and in Washington centers on the possibility of in­
terstate banking, the plain fact is that the most com­
pelling need right now is for legislative and regulatory
reform that would make us more effective comptetitors in today’s complex and rapidly changing finan­
cial markets.
The most startling evidence of banking’s com­
petitive inequality — but far from the only example —
can be seen in the growth of money market funds
which now control assets totaling some $172 billion.
Our estimates are that well over $60 billion of these
funds have been drained from banks of all sizes, simply
because antiquated regulations prevented banks from
paying fully competitive rates. Ironically, larger banks
have had to buy back these funds in the form of largedenomination CDs — at rates sometimes three times
as much as they had been allowed to pay on their core
deposits — while many smaller banks have been shut
out completely. What we see here is the growing
separation of the asset-creation function and the
deposit-gathering function.
This is creating an overhang of uncertainty in the
(Turn to page 27, please)


Community bankers look at the system
MONG bankers reponding to
Community Banker Correspondent

When asked if they “have any
concern as to how your correspon­
dent is pricing your participation re­
Bank Survey, more than three- quests,’’ 50% of the under $10
fourths (77.6%) state that they million deposit groups replied,
prefer collected balances as the “Yes,’’ while only 14.3% of those
means of covering their activity from banks over $50 million
with a city correspondent, and ap­ deposits replied “Yes.” (Chart 4.)
proximately 18% have chosen a
Question 1
combination of collected balances
correspondents given
and fees. (Chart 1-B.)
of covering your ac­
Of those who maintain collected
balances, or
balances, 83.6% feel they maintain
high enough balances to cover such fees, or a combination? Which have
you chosen? If balances, have they
activity. (Chart 1-C.)
Among the respondents, just over been enough to cover your activity?
half (53.2%) of those from banks of If ‘No,’ what has your city cor­
under $50 millions deposits are ex­ respondent done about the short­
periencing problems with their ag fall?” Answers to first three parts
loan portfolios, while 85.7% of those appear in Charts 1-A, 1-B and 1-C.
from banks of more than $50 million Following are sample comments on
deposits acknowledge such pro­ what city correspondents are doing
about any shortfall:
In the area of correspondent ser­
Under $10 million: There are
vice itself, 81% of the respondents times when they say we don’t have,
think their correspondents will con­ but it seems to me they are not giv­
tinue to satisfy their participation ing us credit as quickly as they
requests. (Chart 3.) The confidence should. Perhaps they are getting the
in this cooperation from city cor­ collections done but are slow at
respondents ranges from a high of passing it on to our credit.
91.7% by banks under $10 million,
then on a declining scale to 71.4%
Iowa, $30 million: If Fed Funds
for banks of more than $50 million drop below 12% and requirement in­
creases, it’s better to go with bal­
ances. When we’re short, re­
quirements are waived.
Chart 1-A
N o rthw estern

B a n k er

Q. Have your correspondents given
you an option of covering your activity
with collected balances, or fees, or a
combination? (By deposit groups, in

Under $10
Over $50
Avg. of
all groups



enough to cover your activity?

Under $10
Over $50
Avg. of
all groups













Chart 1-B









Avg. of
all groups
Federal Reserve Bank of St. Louis

Chart 1-C
Q. If balances, have they been

Q. Which have you chosen?
Under $10
Over $50


Nebraska, $6.8 million: Cor­
respondent bank has allowed us to
make up balance deficiencies in
future months. We like this idea.
Minnesota, $14 million: We feel
the charges have been somewhat ex­
cessive. Some correspondents
haven’t charged their bank cus­
Iowa, $12 million: Been fair...let
us make it up with future balances.
Nebraska, $22 million: We feel we
should be charged for service they
perform for us.
Nebraska, $11.5 million: Still in
phase-in period. Currently using a
three-month average, so we have a
chance to compensate for a single
month’s deficiency.
Iowa, $50 million: Balances have
















Northwestern Banker, January, 1982

been enough, but they require too
much in balances.
Question 2
“What problems, if any, are you
having with your ag loan portfolio?
How are your farm customers handl­
ing their indebtedness and what
does it look like for 1982? How much
will this affect your ag lending abili­
ty in 1982?“ (Chart 2.)

Nebraska, $5 million: Crops good
prices terrible - future depends on
Nebraska, $5.6 million: Large
carry-overs. We requested refinancing/paydowns and/or no further ad­
vances until bank is adequately
secured. We will be reducing our
over-all ag debt.
Iowa $21 million: We are seeing
more holding of grain, hopefully for
a higher market later. This could
Chart 2
mean an extension of notes until
Q. Are you experiencing any pro­
grain is sold. Over-all, our note total
blems with your ag loan portfolio?
is down as many farmers, because of
None or
high prices, have reduced spending
M inim al
for machinery, particularly new ma­
Under $10
chinery. It appears fertilizer costs
will be higher next year, so depen­
ding on weather, etc., some plan to
this fall (1981) with lower costs
and possibly lower interest rates
than what spring may bring.
Over $50
Wisconsin, $18 million: We have
of funds for ag lending, but
Avg. of
rates we must charge are too high
all groups
for our farm customers to afford.
Avg. of 3
Since pegging our CID rates to
treasury’s our cost of funds is too
high for reasonable loan rates.
Minnesota, $11 million: No big
A sampling of comments follows:
Minnesota, $2.5 million: Repay­ problems in our ag loan portfolio.
ment is slow with mostly renewals. Those with heavy debt-loads concen­
Customers are deferring purchases trated in capital improvements will
and paying off more debts except for have problems and might not sur­
bank. Next year’s lending ability vive, but strong management will be
(1982) should be OK for present the key for the next year or so. With
customers but we probably will not the higher requirements of money
that the farmer needs, the smaller
take any new customers.
Iowa, $8.5 million: We need to get bank must have a good overline ar­
paid down. Some customers still rangement.
Nebraska, $24 million: The big­
have 1980 crop.
South Dakota, $9 million: Rates gest problem is loss of equity.
necessary to maintain profitability Farmers have been refinancing land
are too high. Generally, most far­ with FLB and FHA in the past sev­
mers are buying very little. If rates eral years — FHA has not been in
continue, it appears that very little the market for nine months now. If
machinery exchange will occur in the markets for livestock and grain
1982. Also, there is some indication continue as they have been, I
that foundation herd sizes will be wouldn’t be surprised to see an
reduced. We will have funds unusually large number of farm
available for ag lending; will pro­ sales by spring.
bably be a little more selective in
Iowa $16 million: 1982 does not
types of loans approved.
look bright for agriculture; however,
South Dakota, $7.5 million: Our we do feel this is not the time to give
customers are in an extreme profit up on agriculture. Most good far­
squeeze. We do not anticipate any li­ mers can make it through the good
quidation this year, but we also do times by themselves. It is in the bad
not expect any great paydowns times when they really need a bank’s
either. We anticipate higher loan de­ assistance and guidance. 1982 will be
mand in 1982 with a corresponding a challenge for both the farmer and
his banker. We feel we are in the
deterioration in debt to worth.
Minnesota, $6 million: No payoff position to help our customers in
yet. Many lines fully extended and a 1982.
Iowa, $44 million: At present we
few may be over. Our capabilities
are loaning on a short-term basis as
will be tested.
for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis

we are not on a variable rate and this
makes for additional work. An ad­
vantage is that we are seeing most
of our farmers at this time for loan
extensions and it does give us an op­
portunity to review their operation.
It appears many farm borrowers will
have a hard time generating proper
cash flow, mainly due to markets.
We are seeing them take a variety of
steps. Our bank is not loaned up
very high at this time. 1982 looks
like it is going to be tough; it does
not look very profitable.
Iowa, $25 million: High costs and
low prices are going to force a num­
ber of our customers out of farming.
It is a little early to tell yet but we
are guessing that many of our ag
loan customers will be beginning the
1982 season with carryover debt.
We will be requiring detailed cash
flow projections from most of our ag
loan customers. Those that can’t
show a positive cash flow may be
asked to seek some long-term financ­
ing elsewhere.
Iowa, $53 million: We are ex­
periencing difficulty with some ag
loans, especially young farmers and
undercapitalized farmers. Many are
having to renew their loans for
another year rather than pay them
as planned. We will be much more
conservative in extending loans to
farmers in 1982 because of the bleak
outlook that exists.
Question 3
“ Do you th in k your co r­
respondents will continue to satisfy
your participation requests? (Chart
3.) A sampling of comments follows:
Iowa, $9 million: We have had no
indication that they would not meet
our needs.”
Nebraska, $8.5 million: Our cor­
respondent bank has been very co­
operative in handling our ag­
ricultural overlines. I do not expect
Chart 3
Q. Do you think your correspondents
will continue to satisfy your participa­
tion requests?

Under $10
Over $50
Avg. of
all groups













any problems to develop in 1982.
Chart 4
The bank is very cooperative on the
Q. Do you have any concern as to how your correspondent is pricing your participa­
lines where we need the help and our
tion requests?
loan limit is sufficient for the
No Answer
smaller operators.
Under $10
Iowa, $12 million: We have an af­
filiate ag credit corporaton and rare­
ly sell participations to cor­
respondents. Sell some to neighbor­
ing banks and this is much more
satisfactory price-wise.
Minnesota, $11 million: I t’s im­
Avg. of
portant that the small, rural bank
all groups
with a limited lending capacity have
a good overline arrangement with how your correspondent is pricing tion within their respective regions
its correspondent bank. If money your participation request?’’ (Chart at lower than city correspondent
conditions become very tight, the 4.) Several comments follow:
question that always arises is, will
Iowa, $52 million: One correspon­
Question 5
your correspondent continue to han­ dent (large regional bank) always
dle your participation requests. We wants prime or prime plus on com­
“What are your greatest concerns
have had no problems with the over­ mercial loans. Another correspon­ about correspondent banking now or
lines to this point, but they have not dent in a smaller town will go along in the foreseeable future?’’
been that great in number or with the interest rate we established
Some of the banks under $10
million deposits voiced these con­
on commercial loans.
Iowa, $12 million: I find cor­
Iowa, $45 million: No considera­ cerns: That the smaller banks will
respondent banks are eager to take tion for balances is given on loan fall to large institutions by further
overlines when they are looking for participations. Loans sold are at acquisitions; on again/off again
loans and then find every excuse in their “prime rate.’’
about accepting participations; that
the book not to take them when loan
Iowa, $33 million: Too high. the intermediate size banks will be
funds are tight and you really need That’s why we go to smaller banks. swallowed by the big banks and fur­
them. That is why we never use cor­
Montana, $50 million: They set ther strip capital from rural areas;
respondents unless we really have the required rate but are willing to passage of multi-bank holding com­
pany legislation (Nebraska).
South Dakota, $14 million: We accept increased collected balances
Among banks of $10-$25 million
have had a consistent, open relation­
deposits, these concerns were named
ship with our close-by correspondent
respondent has his formula to follow (in order of number of times men­
and expect this to continue.
tioned): Willingness to take over­
Iowa, $16 million: The main thing for his interest rate spread. If he lines; good service disappearing —
wants to be a “friend to the country
that bothers us about our participa­ bank,’’ he must also be aware that more independent; will there be con­
tion program is that many times the the average country bank does not tinued service to smaller indepen­
correspondent bank demands a normally charge the same rate as the dent banks; Fed; costs keep going
higher rate of interest than we are big brother in the city.
up; lack of old-time loyalty; not
charging. About the only time we
dependable when going gets tough;
overline is on our good, large ac­ is only trying to offset his high cost lack of understanding of ag credit; a
counts and these customers object of funds and it is sometime difficult different cost of funds at correspon­
to paying the higher interest rates to be critical, particularly when you dent than we have.
demanded by the correspondent need his help.
In the $25-$50 million range,
Iowa, $10.6 million: I feel our cor­ some of the same concerns surface:
Iowa, $40 million: Our correspon­
dent has shown a general reluctance respondent depends too much on Participation inability; ability to
to become involved with participa­ outside markets for rates charged, continue to serve independent
tions so we have not approached rather than what their in-house banks; computer service overpriced;
them. We have found it easier to costs are. They do not hesitate to go they compete with us for our
work with other banks our size on a up with the New York prime, but lag customer deposits; could care less
about us; branching possibilities;
coming down.
reciprocal basis.
Minnesota, $14 million: They have unreliable and at a price we can af­
A number of bankers commented
that they do not require participa­ been more than fair to us. We have ford.
Among the banks over $50 mil­
tion loans. Another large number still been able to make about 1% on
lion deposits, these concerns were
commented that they seldom use ci­ our overlines.
Nebraska, $5 million: Requiring stated: availability of funds; fear
ty correspondents because com­
to be maintained on that Fed will become the clearing
munity banks within a region have
developed a sharing of participa­ outstanding balance of participation house again; ownership; big banks
will want to buy up rural banks and
tions at acceptable rates within that — no good. Fees are better.
will have little concern about local
dicated this relationship was problems; discontinuance of per­
Question 4
satisfactory, while another number sonalized service; too little sharing
“Do you have any concern as to repeated that they share participa­ of techniques in handling national
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982

Chart 5
Q. Who do you consider to be your biggest threats or competition in the coming
month or years? Please list 1, 2, 3 in order of importance to you.
Govt, (agencies,
regulations and
S&Ls and CUs
Banks & MBHCs
MMFs & other
Interest rates
Unknown competition
Card chains
Earnings emph.
Inv. rates
Fed. Reserve
Non-int. exp.
Lack of prudence











accounts at local level; turnover
among correspondent staffs.
Question 6
“What do you see as the greatest
strengths of the correspondent
banking system?”
Banks under $10 million listed
these: Ability to help small banks
compete; general service to country
banks; their expertise and will­
ingness to help; good personnel.
Bankers in $10-$25 million banks
listed these strengths: Overlines and
expertise we can’t purchase; clear­
ing, computer, checking services; ac­
cessibility; competition to Fed;
knowledge of our bank and will­
ingness to assist; ability to beef up
their departments to help us; per­
sonal contact and less red tape.
Comments from $25-$50 million
deposit banks included: Services;
bond department; assist country
banks with needs we can’t provide;
sharing information and services;
expertise; funds available at a price;
participations; provide entry to Fed
system; financial counselor.
Banks over $50 million view these
strengths: ability to compete with
the Fed; personal contact and exper­
tise; continuity — past performance;
adequate money supply; computer
and check clearing service.
Question 7
“Who do you consider to be your
biggest threats or competition in the
coming months or years? Please list
1, 2, 3 in order of importance to
you.” (Chart 5.)
Banker, January, 1982
Federal Reserve Bank of St. Louis


Because of the similarity of
replies from all four deposit
categories used in previous ques­
tions, the answers to Question 7
have been combined. Government
(agencies, regulations and deregula­
tions) ranked eqully with Money
Market Funds and other nonfinancial institutions with 35% each.
MMFs and savings & loans and
credit unions ranked equally with
22% in second place, while savings
& loans and credit unions were
ranked just ahead of government in
third place.
When considering the top four
“biggest threats” shown in Chart 5,
MMFs on a combined 1, 2, 3 basis
had 29.6% of the vote of these four
listings; savings and loans and
credit unions were the next biggest
threat with 28%; government was
right behind with 26%, and banks
and MBHCs were a distant fourth
with 16.4%.

(Continued from page 19)
“You’re the one who must ap­
prove those plans as developed.”
Following Mr. Armstrong’s ad­
dress, Donald G. Pederson, senior
vice president and head of the cor­
respondent bank division, presented
the format for the afternoon pro­
gram. This offered five session
topics in separate rooms si­
multaneously, and these were
repeated twice so that each regis­
trant could have the opportunity of
attending three of the sessions.
“Long Range Planning” was

presented by George Drakey, prin­
cipal of Peat, Marwick, Mitchell
firm from St. Louis, Mo.
“ 1982 Outlook - Agricultural
Banking” was presented by Arlen
Tengwall, vice president, and Larry
Wipf, assistant vice president, both
with the host Northwestern Na­
tional Bank.
“Asset/Liability Management in
the ’80s” was presented by Ron
Olson and his associate Pete Marks
from Olson Research Associates,
“The ’81 Tax Act and Other SelfDetonating Devices” was presented
by Bob Colbert, vice president of
N orthw estern N ational’s tru s t
“Bank Leasing in the ’80s” was
presented by Dan Leclerc, president,
and Perry Mead, assistant vice
president, of Lease Northwest, a
subsidiary of Northwest Bancorporation.
Practically all of these five pro­
grams attracted overflow crowds.
After they were completed, guests
attended a reception, followed by
the traditional Duck Dinner. Mr.
Pederson presided at this affair,
which again featured three guests
from the ever popular Minnesota
Vikings professional football team.
Bobby Bryant, an all-time Viking
star who retired last year, running
back Eddie Payton and receiver Joe
Senser teamed up with Mr. Peder­
son for a half-hour quiz show that
fielded questions from the audience
and provided good-natured banter
among the three Viking guests.
Mr. Pederson closed out the even­
ing by inviting guests to return
December 9, 1982, for the next Con­
ference and Duck Dinner.

MasterCard ATM System to
Be Called “MasterTeller”
The name “MasterTeller” has
been chosen for MasterCard Inter­
national’s automated teller machine
system that is scheduled to be in­
troduced in the United States in
MasterCard’s ATM program will
provide cash dispensing services for
a variety of cards, including the new
MasterCard credit card, the MasterCard II debit card, the gold MasterCard card, and the proprietary cards
of participating member banks and
financial institutions.


City bankers look at what’s ahead...
(Continued from page 22)
financial markets. For the money funds have no
respondents continue to use us for many traditional
capital, no reserve requirements, no deposit insurance,
banking services, we recognize the need to anticipate
no regulatory oversight and no backup lines of credit.
and respond to the service needs being brought about
Moreover, the recycling of money by money market
by a changing banking environment which requires a
funds is costing the industry something like $5 billion
broader range of services to compete. We must be in a
position to assist our respondents cope with the
a year in additional interest expense.
In addressing the need for banking reform, the
eighties by providing consistent and dependable ser­
prime question is not what is best for small banks, or
vices which will require more and better use of the sup­
big banks, or even the industry generally. The prime
port departments in our bank. We anticipate a greater
question is what is best for the country in terms of in­
need for consulting type services in the years ahead as
suring a growing, flexible and sound financial struc­
our respondents needs become more sophisticated.
ture and financial markets. Putting the public ahead of
As to the outlook for banking next year, it will de­
self-interest should be a goal around which banks of all
pend greatly on: 1) the severity and duration of the
sizes can unite. Only by doing so can we insure that our
recession, 2) interest rates, 3) any regulatory change
problems will get a fair hearing and that appropriate
and, 4) our ability and effectiveness in competing in
reform will be undertaken.
the market place against non-financials.
What I fear, though, is that the legislative and
regulatory changes that are brewing will simply patch
up the obvious rents in the financial cloth rather than
be the warp and woof of a new material. Too much
hangs in the balance for a narrow-minded approach, if
Vice President
indeed it ever was appropriate.
Continental Illinois National
There is still time for the industry to influence the
coming changes, which truly represent an opportunity
Bank and Trust Company
for the most resilient among us. And I must point out
Chicago, 111.
that resiliency is not the special domain of the large
The framework that I believe will work best will be
one that supports the Federal Reserve’s ability to ex­
HE ECONOMIC outlook for 1982 is not at all en­
ecute a sound monetary policy, ensures the stability of
couraging. The nation is entering the New Year in
the financial system, minimizes the inefficiencies that
the midst of the eighth recession since World War II
exist by virtue of having 50 sets of banking laws, and
and, with the exception of those banks that plan
responds to the changing needs of the economy. Such a
carefully for profits, the year ahead could be very dif­
framework would likely lead to interstate banking. But
ficult. Many existing problems will not be resolved
I believe that we can have interstate banking without
during 1982. Generally, these include declines in
damaging the local orientation that has been banking’s
business activity and GNP, and continuing high in­
great strength in this nation.
terest rate levels. The prime rate probably will average
I am confident, moreover, that the system of cor­
16% during 1982. Troublesome inflation and
respondent banking that has worked so successfully
unemployment levels, build-ups in inventory, softness
for the local banks will continue to thrive and improve.
in capital equipment spending and production,
Manufacturers Hanover will remain an industry leader
depressed farm earnings, poor housing and car sales,
in correspondent banking and will continue its
and the growing budget deficit remain serious con­
substantial commitment or resources and expertise in
cerns domestically. Increasing political and economic
that area.
difficulties internationally also could disrupt the na­
tional economy during the year ahead.
Beyond these factors affecting the economy as a
whole, the 1982 profit outlook for banks continues to
be influenced by such challenges as reduced loan de­
mand, shrinking net interest margins, increased com­
from bank and non-bank sources, and probable
Vice President
losses. Although the general economic
Iowa-Des Moines National Bank
profit outlook for banks may improve
Des Moines, la.
during the latter half of the year, there is little doubt
that the first six months of 1982 will be very difficult
In light of the economic and profit outlooks, the
need for bank management to reevaluate opportunities
ORRESPONDENT BANKING is alive and well!
in banking has never been greater. In the environment
To date, neither Fed pricing nor deregulation have
of the 1980s, banks can no longer try to be all things to
seriously altered the strong respondent relationships
all customers. Rather, banks must identify those areas
we enjoy throughout the state. However, the nature of
correspondent banking is changing. While our
and markets where a competitive advantage allows


Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


them to uniquely deliver services at a profit, and con­
centrate efforts on further development of resources on
those services. At the same time, banks must curtail or
discontinue those services which other financial in­
stitutions are able to provide more advantageously.
“Business as usual” will not work in the 1980s. Through
proper planning and careful allocation of people,
management and resources, some banks will find op­
portunities for continued profit and growth during the
ensuing year. Monitoring earning asset quality will
become increasingly important during the year ahead.
Although country banks historically have enjoyed a
natural advantage in knowing their customers and
their needs, they are no longer immune from outside
competitors, such as money market funds, PCAs, sav­
ings and loan institutions, and others. All bankers
should recognize that borrowers no longer can be sub­
sidized at the expense of depositors, and that as rate
ceilings are lifted or eliminated, depositors are becom­
ing increasingly expensive. Regional banks will con­
tinue to transact significant business with respondent
banks due both to proximity and to a generally lower
cost of doing business. At the same time, regional
banks will encounter increasing competition from of­
fices of money center banks and from non-banking
sources. In keeping with the philosophy that banks
cannot be all things to all people, regional banks will
continue to work with money center banks when
special services - such as international introductions,
educational services and seminars, trade finance, cer­
tain trust services, investment and corporate finance
consulting, large loan participations, profitable place­
ment of excess overnight funds - arise.
Overall, the outlook for correspondent business and
general banking in 1982 will depend upon how well
each bank can analyze and capitalize on its specific
strengths. There will always be a market for correspon­
dent services, but they will be supplied by those finan­
cial institutions which can deliver them reliably and at
a competitive price. Loyalty, personal service and
trust also will continue to be important factors in deci­
sions involving correspondent services.
Of course, effective planning is the key to identify­
ing and capitalizing upon strengths and to profitable
allocation of resources. Continental believes in and
practives open, rational and systematic planning at all
levels of management, and it is partially to planning
that we attribute our improved profit performance dur­
ing recent years. Effective, strategic planning iden­
tifies important issues - including the potential profit
of particular markets and services - and addresses
them with specific, flexible action plans. Obviously,
services or markets with high future profit potential
are favored with high resource allocations. Such issues
as reasonable market growth, pricing, and risk levels
are considered in determination of market attrac­
tiveness. As issues change, a process for re-evaluating
priorities must be conducted on a continuing basis.
Finally, while a one-year plan is the first step, Con­
tinental has found that five- and ten-year plans are of
great importance in directing growth.
In summary, while 1982 will be difficult, those
banks which focus on planning and resource allocation
for profit maximization will not only survive, but will
Banker, January, 1982
Federal Reserve Bank of St. Louis

Vice President
First Bank Minneapolis
Minneapolis, Minn.

OR THE commercial banking industry, 1982 is
likely to be full of significant change, continuing
the momentum built up over the past several years.
The industry is almost certain to face increased com­
petition from the brokerage and thrift industries for
retail business. Money market mutual funds have
grown to over $180 billion in assets, continuing to ex­
pand at a rapid pace. At the same time, savings and
loans no doubt will continue to compete agressively for
retail business throughout 1982.
Some regulatory relief may be at hand for the com­
mercial banking industry in the coming year. Changes
in the Glass Steagall Act which would allow the bank­
ing industry to offer money market mutual funds as
well as underwrite municipal revenue bonds are possi­
1982 also will challenge the industry to better con­
trol both non-interest and interest costs. Strong
management versed in asset liability management will
be a major positive influence on maintaining overall in­
dustry profitability.
Given the rapidly changing financial environment,
correspondent banks have a tremendous responsibility
to assist community banks in adapting to these
changes. Specifically, correspondent banks must pro­
vide new support services in areas such as automated
teller machines, money market mutual funds, and the
underwriting of municipal revenue bonds. In addition,
respondents should be able to look to correspondents
for assistance in asset/liability management programs,
regulatory compliance, new technological applications,
and a wide variety of educational programs geared to
training their employees in areas such as teller opera­
tions, management, and credit analysis.
Rapid change experienced over the past several
years has served to reinforce the need for a strong and
viable correspondent bank network capable of meeting
the demands of the respondent bank.

Vice President
Security National Bank
Sioux City, la.

DIFFICULT economic environment, coupled with
regulations that constantly change the liability
structure of our institutions will be of increasing con­
cern to every bank manager in 1982. We see our role as
one of informing, counseling, and providing the pro­
ducts and knowledge that will allow our correspondent

banks to prosper in these abnormal times. An area that
has received much attention over the past couple of
years, and will be more critical in the coming years, is
asset/liability management. We have assisted our
bankers in determining their proper spreads and the
sensitivity of their balance sheets.
Aggressive check collection services and cash
management advice will continue to expand, with
availability and pricing being determining factors. Our
approach is to pass on the actual availability we
receive, and we also have established two regional
clearinghouses to aid our correspondent banks.
The importance of overlines in lending advice will
take on a greater importance in 1982. With the poor
agricultural and business economy, country banks will
be looking for more than just a supplier of capital. A
competent, service-oriented, approach to dispensing
lending and workout advice to bankers will become
vital. We feel that bankers will seek participations in
loans for expertise reasons; not just legal limit and li­
quidity concerns. Agricultural credit is our specialty;
we rank as the 61st largest ag lender in the country
and we are sixth in the corn belt region, along with
significant commercial lending experience being
Bankers in need of data processing services will find
a complete array of competitive and innovative EDP
services. We remain very committed to data process­
ing and our product line will expand in 1982 to serve
the demands of our respondents in the future.
The traditional correspondent services will continue
to be of importance to our respondents this coming
year; however, we feel that we can be of greater benefit
to our customers in the area of counseling and advis­
ing. We encourage respondents to use our correspon­
dent bankers as sounding boards during what appears
to look like a very difficult year.

Vice President
First National Bank of
Omaha, Nebr.

FIRMLY believe that the outlook for correspondent
banking, as well as banking in general, for the year
and for the ’80’s will not only be challenging, but
will be rewarding, as well.
According to the American Bankers Association
1981 Correspondent Banking Survey, interbank check
collection has remained the single most important ser­
vice offered by correspondent banks to their
respondents. This means, of course, that they will con­
tinue to look to their correspondent bank to provide
the most efficient and best availability schedule in pro­
cessing these items. Our bank is now providing an end­
point analysis computer printout for our respondent
banks, which has been most helpful in analyzing their
cash letter as to sort patterns and the most efficient
means of collecting their items.
We will continue to see an increase in the need for
the correspondent to provide direct loans to banks or
Federal Reserve Bank of St. Louis

bank holding companies, either to facilitate a change of
ownership, or to provide the increased capital
necessary to support bank deposit growth. Overline
and liquidity loan participations continue to be impor­
tant services that we can, and do, provide.
It is my opinion that the community bank in the
future will be looking even more to its regional cor­
respondent bank to provide the expertise and the
assistance in keeping up with ever-changing banking
regulations, and requirements for a variety of services
and activities not even yet on the drawing board. I feel
that, in spite of the continued pressure for a re­
structuring of our banking system, even so far as in­
terstate banking, that a community bank, along with
its regional correspondent, can be a viable part of
banking in the ’80’s, and will be in a position to even
better serve its customers in the future than it has in
the past.
I repeat that the future for those of us who are
regional correspondent banks will not only be challeng­
ing, but can be profitable, as well.

Vice President
LaSalle National Bank
Chicago, 111.

HE YEAR 1982 is shaping up as a hard one to fore­
cast for the banking industry. One thing is clear we bankers are glad to see interest rates coming down
at the tail end of 1981, and we hope it continues in
1982. Community banks will have to wait a few
months while high-rate, six-month TCD’s run off but,
ultimately, we and our customers will benefit from the
lower rates.
Profits likely will be flat in 1982 compared with
1981. Net interest margins will widen as interest rates
continue their decline. However, loan loss provisions
will increase (and still have difficulty keeping the bad
debt reserves replenished due to increased charge-offs)
as businesses and consumers continue to feel the lag­
ging effects of the high rates of 1980 and 1981, as well
as the effects of a mini-recession we expect to last
through most of 1982. The gap between non-interest
expenses and non-interest income will get larger
without close attention by senior managers. Loan de­
mand will grow at a much lower rate, as businesses
report lower profits and consumers retrench in the face
of increasing unemploymet.
Two issues will continue to dominate the thoughts
of bankers in 1982. One is the ever increasing blurring
of the separate roles that investment banks and com­
mercial banks have traditionally played. We expect to
see additional progress made this year toward allowing
commercial banks to underwrite municipalities’
general obligation bonds. The second issue concerns
the barriers which have been established by the
McFadden Act and the Bank Holding Company Act to
prevent interstate banking and, again, we feel that con­
tinued progress toward breaking down these barriers
will occur. However, we do not feel that either of these
Northwestern Banker, January, 1982

issues will be resolved in 1982; i.e., Congress will pass
no new legislation; and that both will be issues in 1983.
The correspondent banking business will never be
the same again after this year’s decision by the Fed to
become an active correspondent bank. We think the
number of banks offering correspondent services to the
Midwest will decline in 1982, as some managers decide
not to compete with the Fed.
The largest short-term issue facing correspondent
bankers today is “Are we going to stay in the cash let­
ter business in light of the Fed’s attempt to mon­
opolize this service?’’ Over the longer term, bankers
will have to adapt their correspondent product lines to
meet the ever changing environment. We feel a number
of new products will be made available to respondents
in the ’80’s.

Vice President
American National Bank and
Trust Company
Saint Paul, Minn.
CHANGES in banking, as a result of
deregulation, new legislation and the economy,

made the need for a concerned, innovative, correspon­
dent bank greater than ever before. I feel very strongly
that the independent community bank not only can
survive, but prosper when backed up and supported by
a knowledgeable, correspondent bank and banker.
More specifically, I feel that there will be a need and
desire for better cash management in all banks, espec­
ially community banks, thus leading the way for more
serious services to be paid for with hard dollars versus
account analysis. Besides the traditional services re­
quired, such as cash letter, credit, investments, EDP,
etc., I think there will be a growing need for training
and seminars, trust services, asset and liability
management, personnel training and staffing, and
secondary markets.
In my opinion, the need for a good correspondent
banker and a good correspondent bank has never been
greater. Banking will be going through some revolu­
tionary changes during the next few years, and the cor­
respondent bank will be there to help make it a positive

Senior Vice President
National Bank of Waterloo
Waterloo, la.

F WE, as correspondents, are to keep respondents’
balances we must be responsive to their needs. I am
that almost every bank closed at least one ac­
count this past year. High interest costs and the ef­

Northwestern Banker, January, 1982
Federal Reserve Bank of St. Louis

fects of Fed pricing made dormant balances too expen­
sive to maintain.
I hope in 1982 we can get back to the business of
banking. We all spent more time on things that either
didn’t happen or turned out to be insignificant. Rules
changed so fast we weren’t always certain we were
playing the same game. The idiosyncrasies of the
D.I.D.C. has certainly kept all of us confused and
Help in implementing management tools to assist
banks in their daily operations is a must. Easily ar­
rived at interest spread figures would be a real tool in
setting rates — not only for loans but ceilings paid on
liabilities. We will arrive at our spread by adjusting
the least interest sensitive asset or liability.
A clear, concise digest of regulations easily and
quickly read would be a real asset we could provide.
Further help in budgeting and portfolio analysis
would be high on a list of most respondents’ “want”
In lending help, I feel it is of utmost importance to
have good credit documentation and complete finan­
cial information, since a small overline for us is on top
of a limit loan for your respondent - and think of his
In these times we find many customers with their
backs to the wall doing things they wouldn’t have
thought possible.
If we help keep our community bankers strong they
will help us in our efforts to grow and prosper. We
want them to be the respected pillars of their communi­

Senior Vice President
Northwestern National Bank
Minneapolis, Minn.

ORRESPONDENT banking is a new ball game,
according to Paul S. Nadler, professor of finance
at Rutgers University’s school of management. “Cor­
respondent banking once was indeed steeped in tradi­
tion. Now much of this has changed,” said Dr. Nadler.
The role of the regional correspondent bank has in­
deed changed and today faces unprecedented scrutiny
as community banks face new competitive challenges.
This keener awareness on the part of community bank­
ers will increase and the role of the correspondent
banker and the respondent bank can aptly be described
as an “evolving relationship.”
As the correspondent banker seeks to deliver pro­
ducts and services through individually designed pro­
grams which fulfill identified or anticipated needs, the
community banker will “shop” for services. Less empphasis will be placed on loyalty and tradition. An
evaluation of the content and quality of products and
services in meeting the respondent’s needs will evolve.
Community bankers will increasingly be required to
identify specific needs while, at the same time, plan
for future needs in a volatile financial services in-

dustry. The correspondent bank must implement call­
ing programs which assist in identifying existing
needs and the trends for anticipated needs. It must
develop products and services which will keep pace
with the significant changes occurring within the
financial industry. As a member of the ABA’s Cor­
respondent Banking executive committee I have had a
unique opportunity to survey the correspondent/respondent relationships throughout the upper
midwest and nationally. Those relationships are
Correspondent banks will assume more consultative
roles with their respondent customers. The “hard sell”
of products and services with only a “salesperson”
orientation will not be as viable in the correspondent/respondent relationship and will diminish in the
The trend toward relationship banking is
augmented by the competitive changes within the
financial services industry. These trends are influenced
by the strong foundation in unit versus branch bank­
ing in the region. We perceive this region will ex­
perience less merger and consolidation of banks; with
continued stability in the overall number of banks.
However, increased competition from money center
banks, their subsidiaries, or non-bank firms in the de­
livery of correspondent services is anticipated. This
trend cannot be ignored by banks which are currently
active in correspondent banking. This may mean
reduced market share for regional correspondent
banks and could force a given correspondent to re­
evaluate both its position in the market as well as the
products and services it will offer. The evaluation of
the latter will be based on the overall profitability of a
given “product line” or service. This evaluation pro­
cess may require correspondent banks to specialize in a
particular segment of the market rather than to con­
tinue to provide all products and services for respon­
dent banks and trying to be all things to all people.
The community banker will not be immune from
change, however. With increased competition for the
community banker’s business from traditional cor­
respondent relationships, more awareness of products
and services will be required to remain competitive.
The community banker also will need to become adept
at differentiating between the benefits and features of
services now offered by a variety of vendors. In addi­
tion to being faced with a variety of products and servcies from a number of sources, the community banker
may be asked to pay for those services in fees rather
than balances, as has been traditional in the industry
for so many years.
Providing products and services designed to fit the
needs of community banks, and individually “pack­
aged” for a particular community bank, will
necessitate a high quality calling staff at a correspon­
dent bank. The calling officers of the future will need to
be technically competent bankers, well-versed in all
facets of banking, who will be able to identify and
discuss the needs of the community bankers. As a con­
sultant, the calling officer will be able to assist in
strategic planning and discuss compliance, credit,
human resource, and technological issues.
Acknowledging the evolution from salesperson to a
consultant will be beneficial to both parties. The cor­
respondent banker will be aggressive, knowledgeable,
Federal Reserve Bank of St. Louis

and experienced. Calling officers will be judged by
their knowledge and ability to identify and resolve
Bankers must recognize the inevitability of change.
The relationship between correspondent and respon­
dent banks is no exception. The years to come will be
an exciting period for the banking industry. Increased
competition for business will facilitate new, evolving
relationships between banks and bankers.

Vice President
First National Bank
Sioux City, la.

HE OPPORTUNITIES and challenges today and
in the future will be many. Bankers will need better
and more sophisticated methods and procedures to
compete in the totally deregulated environment that is
fast developing. Banks will have to improve marketing
and pricing techniques to generate adequate future
earnings. A major item that can help banks in the pric­
ing and earnings area is Asset/Liability Management.
A variety of Asset/Liability systems are used at in­
dividual banks with varying degrees of success. The
system selected must be adapted to the individual
bank and its local environment. Changes should be
reviewed constantly to insure a flexible system that
recognizes changes on both sides of the ledger as they
occur; i.e., deposit and loan volumes, new types of
liabilities, fixed and floating rates, investments, etc.
Controllable expenses continue to be important;
however, net interest margin has developed as a single
most important item to insure overall bank profitabili­
ty. A well developed Asset/Liability system should
allow banks to compete more effectively in the finan­
cial market place and act more intelligently on changes
as they occur. Banks must maintain adequate earnings
to insure a viable, sound banking system to meet the
challenges of all competitors. Those banks that have
undeveloped or no Asset/Liability system at all will
probably experience earnings difficulties in the years
Balances vs. Fees
We price the major part of our correspondent ser­
vices on an analytical basis. Fees for special services
can be negotiated with the respondent requesting the
service. Balance payment for services remains the
most used method in our area.
Outlook for Correspondent Banking
First National Bank has been committed to cor­
respondent banking for a number of years, and we can
see no reason to change that commitment. We are
always willing to discuss any sound transaction or ser­
vice with our respondent and prospective respondent
banks. The topics we discuss most often are bank
stock financing, overline-liquidity loans, item
clearance, investments purchases/sales, rate changes,
pricing of new services and computer services.
Northwestern Banker, January, 1982

Ag Lending and Outlook
The basis of our economy is agriculture, so we have a
keen interest in agriculture’s health. Economic condi­
tions dictate a cautious approach to ag lending in to­
day’s environment. These conditions may take some
time to improve.
More frequent inspection reports, inventory of com­
modities, and financial information should keep the
lender in tune with the borrower’s current and ex­
pected future financial condition.
We are willing to discuss any sound agricultural
transaction. Our bank has two agricultural specialists
who are available for consultation at any time.
Community banks should continue to be sound, fi­
nancial institutions, regardless of ownership, provided
adequate time is devoted by management to new
methods and systems that will deal with changes as
they occur. Earnings will be a very important ingre­
dient to assure community banks of success.

Senior Vice President
National Bank of Commerce
Lincoln, Nebr.
ANY of the challenges and opportunities facing
the correspondent banking business will also face
our respondents. The new Federal Reserve pricing,
deregulation of the liability side of the balance sheet,
and the future structure of the total financial service
industry will be among the many issues all of us in the
banking industry will need to address in 1982.
The old and established methods of doing business
will become antiquated and new, untried methods of
doing business will need to become the norm. The one
thing that will not change, however, is the responsibili­
ty bank management will have to its stockholders and
customers. Bank management will still be required to
earn an adequate return on stockholder’s equity and
provide the necessary level of service to the bank’s
clientele, whether the clientele be the local community
or respondent banks.
Correspondent banks will need to place a greater
reliance on fees to pay for services and will need to ser­
vice charge deficit balances. The possible sluggish de­
mand for credit will impair bank profitability. The cost
of money will continue to impact all banks and, if they
simply price services from the angle of “what is my
competition doing,’’ instead of managing their own in­
terest margin or determining their own cost of pro­
viding the service, they will find their bank profitabili­
ty deteriorating.
Correspondent banks will take on a new image in
that some services typically provided by correspon­
dent banks will be done away with because of the lack
of profitability. The concept in banking of being “all
things to all people’’ will be phased out, as product
lines are designed from a bank resource and profit

Banker, January, 1982
Federal Reserve Bank of St. Louis

Respondent banks will, however, still rely on prime
correspondents for aid in the following areas; check
processing and item availability, loan participations,
cash management, regulation guidance and manage­
ment services.
The challenges the future will bring to bank manage­
ment will be many and varied. Bankers that are
prepared to closely analyze their costs and price their
services profitably will have the successful banks in
the future.

Senior Vice President
United Central Bank of
Des Moines, N.A.
Des Moines, Iowa
I HAVE a good deal of concern with regard to
I Iowa’s number one industry — “agriculture.” In
1981 we have seen a decline in farm income while farm
production costs have continued to rise dramatically.
Despite record corn and bean crops, low prices received
for commodities and livestock, along with high in­
terest rates, have contributed significantly to present
conditions. The current administration has followed
our longstanding cheap food policy which has not
helped the market price received by the farmer. As a
result, 1982 will be a year of decision for many
agricultural borrowers. Over the past few years, carry­
over debt has been restructured into term debt,
primarily in the form of land mortgages. Whereas land
debt historically has been based on loan to value,
lenders are now looking at cash flow as well as col­
lateral value when approving these requests.
All of us involved in ag lending want to continue to
be an aggressive supplier of funds for sound short-term
needs of farmers and ag-related business. However,
there is a definite cause for concern for loan losses for
the year 1982. The economic recession likely will con­
tribute to an extension of unfavorable conditions
throughout the year, placing an even more important
premium on good management for farm and ag-related
We must have in place proper collateral margins as
well as sound management and financial plans to
asssure lending institutions of the repayment capacity
and ultimate collectibility of these loans. Secondary
sources of repayment will continue to play an impor­
tant role. All of this is necessary to see that loan losses
do not become a significant factor in order to maintain
soundness in both the financial and agricultural in­
It has never been more important than now to
thoroughly examine every application for credit to
make sure that it will remain a quality asset
throughout the proposed term.
Fed Funds income in 1980 and 1981 has been a big
source of income for many respondent banks. Coupled
with a diminishing demand for credit, inadequate mar­
gin spreads in lending rates, and declining Fed Fund
rates, it appears that we have our work cut out for us
to accomplish our desired goals of profitability.

The Federal Reserve implementation of hard dollar
charges for services will continue to be a factor affec­
ting the cost of operations for all banks. While all of
the correspondent banks pay hard dollar charges di­
rectly to the Fed, we continue to depend on our respon­
dent customers to provide collected balances to cover
the additional cost under account analysis.
United Central Bank of Des Moines remains com­
mitted to the needs of our respondent banks and we
will continue to be a strong supporter of community
banks and the agricultural industry through credit
facilities, cash management and data processing ser­

Senior Vice President
Packers National Bank
Omaha, Nebr.

HEN we consider the important issues and op­
portunities in the months and years ahead,
several specific areas immediately surface. Among
them are these:
1. Federal Reserve pricing and its effect on present
and future correspondent relationship.
2. Financing agricultural needs during this period
of depressed grain and livestock prices.
3. Asset/liability management.
4. Cash and investment management service.
5. DIDC and what it eventually will mean to
correspondent/respondent banking.
American statesman, Daniel Webster, once said,
“Competition comes in place of monopoly, and in­
telligence and industry ask only for a fair plan and an
open field.’’ As the banking industry enters this new
decade of question and turmoil, it is becoming increas­
ingly apparent that the present banking system is on
the threshold of major and dramatic change.
Senate Bill 1720 (The Garn Bill) is an attempt to
totally restructure the nation’s financial system.
Packers National Bank strongly opposes this illconceived move to disrupt and ultimately destroy the
independent banking structure. Regardless of how the
original Garn Bill may be modified, its essential thrust
will remain the same. Thrifts would move towards be­
coming commercial banks and the lines between
banks, savings and loans, investment banking and the
securities industry will blend into a final scenario of in­
distinguishable rules and regulations that will even­
tually self-destruct independent banking as it present­
ly operates.
This is our over-riding concern for 1982 and the
decade of the eighties. The politicians in Washington
in their insatiable quest to legislate monumental
changes that the public neither asked for nor wants,
are demonstrating once again their questionable abili­
ty to govern. The action today is “on the hill.” I
strongly urge that all who are interested in preserving
our present independent banking system relay your
concern to your Washington representatives.
Federal Reserve Bank of St. Louis

Vice President
Marquette National Bank
Minneapolis, Minn.

HE CHALLENGES that confront correspondent
banking today are dictated by the same challenges
facing community bankers in the Upper Midwest.
Those primary issues that we’re all concerned with are:
• General economic conditions and
• Deregulation
The economic environment has created an unusual
situation in the Upper Midwest where agriculture
plays a major role. The year 1981 produced bumper
crops in most areas of the region. As commodity prices
dropped substantially, these bumper crops did not
translate directly into cash for the farmer. Many of
these crops currently are being stored on-premise
rather than being sold. Although government pro­
grams have allowed farmers to seal the crops in
storage and borrow against them, this action held little
profit for farmers and created little in the way of
deposit balances for the local banker.
Deregulation was aimed primarily at freeing the
banking and thrift industries from constraints that did
not allow them to operate in a free market environ­
ment. This action, however, has affected different
segments of the banking industry in different ways.
For instance, the phasing out of Regulation Q and the
creation of new time deposit vehicles at higher interest
rates are aimed primarily at allowing banks to compete
with non-banking institutions which offer money
market funds and other high interest investment op­
tions. While the large money center banks have been
able to invest in assets that offered them a return on
the high interest deposits, the community banker is
faced with a different problem.
Agricultural and small business borrowers aren’t in
a position to control the price of their products and ser­
vices and, therefore, can’t afford high interest rates.
The community banker must service these customer
segments with high cost deposits through one of two
1. Pay the higher price to maintain the deposit base
and continue to service the borrowers at a smaller price
spread, or
2. Refuse to pay competitive rates on deposit in­
struments and lose deposits.
But the solution will have to lie in determining the
minimum spreads necessary to profitably operate the
bank, while maintaining a strong capital base. Effec­
tively managing assets and liabilities to see that this
spread is achieved and maintained will be critical.
Banking has changed and will continue to change.
All bankers need to be alert to these changes and the
methods to cope with them. The job can’t be done
alone. The best source for advice and help is your cor­
respondent banker. Enlist that help and those
Northwestern Banker, January, 1982


America’s newest name
in banking is right
in the center of things.

Columbia Union National
Bank in Kansas City is now
called Centerre Bank.
Don’t worry. It’s only a
change of name. Not a
change of service.
All the correspondent
banking services you’ve
come to count on from this
bank are still available.
And the same experienced
people are still on hand to
provide them to you.
Centerre Bank. It’s a new
name. But we’re not
changing a thing about the
way we handle your
correspondent banking needs.



Formerly Columbia Union National
Bank & Trust Company
Member FDIC

Banker, January, 1982
Federal Reserve Bank of St. Louis

“We’ve asked repeatedly for the
IBA leaders to come to the table to
discuss the issues and they have
refused. This meeting as I see it is
one totally run and operated by the
IBA. We would be pleased to attend
if it was a joint meeting or one spon­
sored by the ABA. AMBI already
has a consensus of members. When
they get their consensus, we’ll be
glad to meet with them.”
Robert J. Wingert, executive
director of ICBI, also headquartered
C a lls fo r Illin o is U n ity M e e tin g
S p rin g fie ld ,
N AN unprecedented move to meeting, leaders of both AMBI and
unite the banking industry in Il­ the ICBI stated that at present they met that day (December 16) and it
linois, the Illinois Bankers Associa­ do not plan to attend as par­ was decided ICBI would not attend
formally as an organization. “Our
tion announced on December 10 ticipating associations.
members are free to attend as in­
plans for a congress of all banking
organizations in the state to be held said that although AMBI has not dividual members and take part in
in St. Louis on January 28 and 29, yet issued any formal statement on any dicussions they wish,” Mr.
the matter, it does not plan to at­ Wingert said.
James A. Fitch, president of the tend the IBA meeting. He recalled,
IBA and president of the South
Chicago Savings Bank said, “the
meeting will be called a Banking Fo ur R o ckfo rd A rea B anks Form H .C .
Issues Congress. As the oldest and
IRST National Bank and Trust vides that the mergers will be on the
largest banking association in the
Company of Rockford, North basis of one share of First Rockford
state, the IBA has invited the lea­
National Bank of Rockford, Bancorp, Inc. common stock for one
ders of all banking organizations in
Illinois to discuss the critical bank­ First Bank of Loves Park and First share of First National capital stock
ing issues of the day. The IBA is Bank of Roscoe have jointly an­ and one share of First Rockford
soliciting many view points to nounced an agreement in principle Bancorp, Inc. common stock for two
establish common ground in a rapid­ to establish a multi-bank holding shares of North Towne capital stock,
company which will become the and for one and one-half shares of
ly changing bank environment.”
According to William J. Hocter, parent company of the four banks. Loves Park capital stock and for one
executive vice president of the Il­ Following a series of four mergers, it and six-tenths shares of Roscoe
linois Bankers Association, “topics is expected that the holding com­ capital stock. On the basis of these
to be discussed at the congress will pany, First Rockford Bancorp, Inc., proposed exchange ratios, approx­
include federal legislative and will own all of the outstanding stock imately 494,000 shares of common
stock of First National Bancorp,
regulatory issues and state legis­ of each of the four banks.
The agreement in principle pro- Inc. would be issued in the mergers.
lative issues. We have invited a
The transaction is subject to
number of very prominent speakers
definitive agreements, to approval
including Murray Wiedenbaum, the
of the respective boards of directors
chairman of the President’s Council
and stockholders, and regulatory
of Economic Advisors, the members
authorities. It is expected that the
of the Congressional banking com­
transaction will be completed during
mittees and senior regulatory of­
the second quarter of 1982.
ficials to address the bankers.”
The First National Bank and
The invitation list of participants
Trust Company of Rockford on Sep­
includes the leadership families of
tember 30, 1981, had total assets of
the Illinois Bankers Association, the
$248,427,000; North Towne Na­
Independent Community Bankers of
tional Bank of Rockford had
Illinois, and the Association for
$26,088,000; First Bank of Loves
Modern Banking in Illinois, as well
Park had $13,261,000, and First
as representatives of national level
Bank of Roscoe had $9,029,000.
associations. Also included are the
The First National Bank and
chief executives of the money center
banks in Chicago and St. Louis and Brad E. Anderson (left) — pres., First Bank Trust Company of Rockford, North
directors from the Federal Reserve of Loves Park; Donald H. Pratt (center) — Towne National Bank of Rockford
Banks in these two cities.
pres., North Towne Natl. Bk.; Dennis L. and First Bank of Loves Park are
However, when contacted last Greier (right) — pres., First Bank of Roscoe, presently legal affiliates. It is an­
week by the N o r t h w e s t e r n and Howard E. Bell (seated) — pres., First ticipated that the total assests of
Natl. Bk. & Tr. Co. of Rockford announced
B anker for their response to this an agreement in principle to establish a the new organization will be approx­
open invitation by the Illinois multi-holding company as the parent com­ imately $296,805,000 when the
transaction is consumated.
Bankers Association for a joint pany for the four banks.


Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


Illinois News

A ustin Bank H onored



president and manager of the Il­
linois Center Facility.

Elmhurst Elections Told
Frank C. Rathje, president of
E lm hurst N ational Bank, an­
nounced the appointment of John J.
Mickevice as auditor. Mr. Michevice
began his banking career in 1975 in
instalment lending and was recently
Donald D. Thornburg, chairman audit manager with Bank of Hick­
and ceo, Sears Bank and Trust Com­ ory Hills. As auditor he will direct
pany, has announced the following the internal auditing program of the
Thomas F. Franklin, vice presi­
K eopsel and
dent of marketing and planning, has
Daryl J. Wasbeen elected to the board of the
zak, second vice
Northern Illinois Chapter of the
Bank Marketing Association.
division; Bar­
bara A. Tom­
czak, assistant
Joins Naperville Bank
vice presidentMichael J. Villemure has recently
operations divi­
jo in e d W a sh ­
sion; Janice R.
ington Bank &
Cannestra and
T ru st, N ap er­
ville, as assis­
tant vice presi­
dent. Previously
a bank examiner
with the Federal
D e p o sit
In ­
surance Corpora­
tion, Mr. Vil­
lemure’s respon­
sibilities will include assisting in
daily bank operations. He is a
Elaine R. Levin, estate administra­ graduate of North Central College.
tion officers-trust division; Philip L.
Bykowski, data processing officer- New President and COO
information systems; Margo Jidas, Named at Rock Island
student loan administration officerCharles C. Wilson, chief executive
personal banking division; Russell officer and chairman of First Na­
L. Klokkenga, trust investment tional Bank of Quad Cities in Rock
officer-trust division, and Peter A. Island, announced that Frank P.
Wooldredge, assistant trust ad­ Clarke has been appointed president
ministration officer-trust division.
and chief operating officer. Mr.
* * *
Wilson continues as first officer of
Henry K. Gardner, president of the bank.
Mr. Clarke joined the First Na­
National Boulevard Bank, has an­
nounced the promotion of Deborah tional Bank in 1977 and had been ad­
L. Perry to personnel officer and vanced to senior vice president
Brent A. Baum to assistant vice before his appointment to president.

Banker, January, 1982
Federal Reserve Bank of St. Louis

State of Illinois, Eighty-Second
General Assembly, House of Represen­
tatives passed House Resolution no. 589,
recognizing the Austin Bank of Chicago for
its 90 years of service and many achieve­
ments in the Austin community. When
re p re s e n ta tiv e Law rence D iPrim a
presented Robert F. Callery, president of
the bank, with a copy of the Resolution he
noted that Austin Bank had created a
special fund of $900,000 to be used for mak­
ing local home improvement loans.


Northern Trust Seeks
Full Power in Florida
N orthern Trust Corporation,
Chicago, has announced that ap­
plications have been filed with the
Comptroller of the Currency and the
Board of Governors of the Federal
Reserve System to permit Security
Trust Company of Sarasota N.A.,
one of its Florida subsidiaries, to
become a full service commercial
Security Trust Company of
Sarasota N.A., 1390 Main Street,
Sarasota, Florida 33577, was
chartered as a national bank on May
5, 1977, but at that time its organ­
izers elected to limit the company’s
activities to those of a commercial
bank’s trust department. The pen­
ding applications would permit the
company to amend its Articles of
Association to remove the restric­
tion on its powers, thus authorizing
it to commence operations as a com­
mercial bank in addition to its pre­
sent trust functions.
The bank would then be able to of­
fer a full range of commercial bank­
ing services to its present customers
as well as to other individuals, part­
nerships and corporations.

Drive-In Facility Opened
Carpentersville Savings Bank
recently opened a new drive-in facili­
ty adjacent to the main bank.



These are uncertain
times. W e have been
in a serious recession,
but w e’re not sure
how deep it has been
or how fast we are
climbing out. Money
rates reached
unheard of heights,
but we don’t know
how much they will
drop or if they will drop
back to normal. Some of our
large, basic industries are in
trouble. Our economic stability is
dependent on a steady flow of
petroleum im ports which may or
may not prove dependable.
All of this uncertainty makes
business lending very difficult.

However, SLT can
eliminate some of the
uncertainty th a t lenders
face by guaranteeing
your custom ers’ inventory
as pledged collateral.
For over 5 0 years, we
have worked with
s and commercial
lenders to collateralize
loans and make lending
safer and more profitable.
Give us a call; we can eliminate
uncertainty from your
loan portfolio.

P 0 Box 242. St. Louis, M o 63166 • 314/241 9750 • Offices in Maior Cities
Federal Reserve Bank of St. Louis




Northwestern Banker, January, 1982


What this symbol means in the Upper Midwest.


Call your full-service correspondent banker (612) 372-8200

N orthwestern
National Bank
Of Minneapolis

An Affiliate of Northwest Bancorporaton

Member FDIC

Banker, January, 1982
Federal Reserve Bank of St. Louis


Retires at Dawson

First Bank Hopkins
Promotes Five
The board of First Bank Hopkins
has announced the following
management changes in the opera­
tions department
Jim Cory has been named vice
c a sh ie r,
security officer.
He joined the
bank in 1979 as
a ss is ta n t vice
president in the
operations de­

M ein e rt
nam ed
assistant vice president and comp­
troller. Mr. Meinert has been with
First Bank Hopkins since 1959.



Phyllis Christianson has retired
as assistant vice president of the
N o rth w e s te rn
State Bank of
Dawson, effec­
tive December
31, 1981. Mrs.
Christianson be­
gan her career at
N o rth w e s te r n
Bank on May 15,
1942. In De­
cember of 1948 P. CHRISTIANSON
she took a leave
of absence until December, 1952.
She has had an active part con­
tinuously from December, 1952 un­
til today. A “Phyllis Christianson
Day’’ was observed December 3,
1981, with coffee and cake served to
all customers.

Charles E. MacArthur, Jr. has
been named financial planning of­
ficer, and community re-investment
act officer. Mr. MacArthur joined
the staff at First Bank Hopkins in
1981, and has most recently been in­
stallment loan manager at First
Bank Northtown in Blaine, Minn.
Elrena H. Barlau has been named
accounting officer and manager of
accounting services. An employee
since 1956, her most recent position
Wayzata First National
has been operations officer.

Breaks Ground for Drive-In

Owatonna - Albert Lea
Merger Approved
Michael J. Pint, Minnesota Com­
missioner of Banks, announced his
approval of the application to merge
Owatonna Savings and Loan Asso­
ciation, Owatonna into Peoples Sav­
ing and Loan Association, Albert
Lea. Concurrently, Commissioner
Pint approved the relocation of the
association’s home office from
Albert Lea to Owatonna.
The combined institutions, with
$246 million in assets, would be the
sixth largest savings and loan
association in Minnesota operating
at 15 locations in 11 southern Min­
nesota counties.
The Commissioner indicated the
merger “is a voluntary consolida­
tion of two well-managed, insured
state-chartered institutions. The
merger will result in a number of
operating efficiencies which will
benefit the successor institution by
reduced operating costs.’’

The First National Bank of
Wayzata has broken ground in
downtown Plymouth in preparation
for a two-phase building project.
The first phase will be the erection
of a drive-in facility.
As soon as conditions warrant,
the bank hopes to initiate phase two,
which will include the building of an
attached office building. The new
facility is located on the corner of
Vicksburg Lane and 37th Avenue

Named at Owatonna
Kenneth E. Wilcox, president of
Northwestern National Bank of
Owatonna, has announced the re­
cent prom otion of D avid B.
Hinsverk to assistant vice presi­
Mr. Hinsverk joined the bank in
1976, and since that time has served
as a financial analyst, a commercial
lending officer and as the com­
pliance officer of the bank.

Ring Retires After 40 Years
Virginia Promotions Told


Lon Goldberg has been named
a s s is ta n t vice p re sid en t and
manager of tellers, bookkeeping,
and proof. He joined the bank in
1981 and has most recently been
assistant cashier at First Bank Pro­
duce in Minneapolis.
Federal Reserve Bank of St. Louis

John R. Oltmanns, president,
Northwestern Bank of Virginia, has
announced the promotion of LaVerne Skalko to teller operations of­
ficer and Timothy 0 ‘Hara to person­
nel officer.
Ms. Skalko became teller super­
visor in 1980.
Mr. 0 ‘Hara joined Northwestern
in January, 1981, as personnel direc­

John G. Ring, a vice president of
Northwestern Bank of Commerce,
Duluth, retired recently after a
banking career spanning more than
40 years.
He has been associated with
Northwestern Bank of Commerce
since 1963 and before that held ad­
ministrative positions with First
National Bank, Duluth, and Piper,
Jaffray & Hop wood Co., Min­
Northwestern Banker, January, 1982

If your prim ary correspondent
doesn’t answer you quickly
on loan requests, ask
First Bank M inneapolis,
Federal Reserve Bank of St. Louis

A t a tim e w h e n m a n y
c o rre s p o n d e n t b a n k s a re fin d in g
it difficult to m ak e c o m m itm e n ts
a b o u t le n d in g to th e ir re s p o n ­
d e n ts, we c a n m a k e several.
F o r o n e , w h e n you n e e d
a n answ er, w'e’ll get you o n e —
fast. W e’ve ev en reo rg a n iz e d
o u r a d m in is tra tiv e stru c tu re to
im p ro v e o u r resp o n se tim e .
F o r a n o th e r, w e’ve got th e
ex p ertise. O u r c a llin g officers

a re tra in e d to h e lp you w ith
all yo u r c re d it needs. A n d th e y ’re
b a c k e d by a g ro u p o f in d u stry
specialists w h o c a n p ro v id e
te c h n ic a l ad v ice a n d g u id a n c e
to you a n d y o u r c u sto m e rs.
B u t m o st im p o rta n tly ,
c re d it is av ailable. I n fact, o u r
C o rre s p o n d e n t B a n k D e p a rt­
m e n t’s loan portfolio has doubled
in th e last fo u r years.
So if y o u ’re g ettin g th e

idea th a t we a re c o m m itte d to
su p p o rtin g y o u r c re d it n eed s,
y o u ’re getting th e rig h t idea.

Æ k h First Bank


C orresp o n d en t B anking
D ep artm en t
First B ank Place
M inneapolis, M N 55480

We are what you want a correspondent bank to be.





Member FDIC
Federal Reserve Bank of St. Louis


Prior-to joining First Bank Min­
neapolis he was with Continental Il­
linois Bank in Chicago as manager
of trust marketing resources.
department staff at First Bank
* * *
Saint Paul, were announced last
month by Dale S. Hanson, vice
N o rth w e st B a n c o rp o ra tio n
recently promoted F. Randall
Czeswik and Dean H. Hoppe to vice
presidents in the human resources
division and also
nam ed
Powers investor
relations officer.
Mr. Czeswik
has been with
B anco
The Mid America State Bank of 1979, most re­
Highland Park at 2004 Ford Park­ cently serving as
way in St. Paul officially changed its a ss is ta n t vice
Mr. Mork will serve correspon­ name as of January 1, to The p r e s i d e n t
dent banks in E astern North Highland Bank which reflects its human resources
Dakota, Northwestern and West location and principal trade area,
Mr. Hoppe joined Iowa-Des
Central Minnesota. He had four stated John D. Turner, president.
Moines National Bank, a Banco sub­
years of banking experience, pri­
Organized in 1946 as The High­ sidiary, in 1970 and moved to Ban­
marily in correspondent banking, at land Park State Bank, the name was co’s corporate office in 1974. His
American National Bank and Trust changed in 1973 to reflect an affilia­ most recent position at the cor­
Co. of St. Paul before joining First tion with Mid America Bancorpora- porate office was assistant vice
Bank Saint Paul recently. He joined tion, which no longer exists. Mid president in the human resources
that bank in 1977 after graduation America Insurance Agency, which is division.
As investor relations officer, Ms.
from St. Olaf College.
located at the same address, has also
Ms. Wagner-Hauser will work changed its name to The Highland Powers acts as liaison between the
with A ssistant Vice President Agency, Inc. The Mid America corporation and financial analysts in
James A. Russell serving banks in drive-in bank at 1979 Ford Parkway the investment community. She
the greater metropolitan Twin City has been renamed the Highland Con­ joined Banco in 1980 as a financial
area. She has been with First Bank venience Bank.
Saint Paul more than three years
* * *
and last spring was promoted to
James Van Valkenburgh has
lending officer in the commerical
joined First Bank Minneapolis as an
real estate division.
In announcing these appoint­ a ss is ta n t vice
ments, Mr. Hanson said the staff ad­ president in the
ditions were made to expand the marketing ser­
department’s service to correspon­ vices d e p a r t­
dent banks in a six-state area. He ment. He is mar­
said this will create a new territory keting manager
defined as Eastern North Dakota/ for the trust, ex­
Northwestern Minnesota, which Mr. ecutive and pro­
Northwest Bancorporation also
Mork will serve. This will decrease fessional bank­
has appointed John R. Kerr to its
the size of the remaining four areas ing, and first
corporate communications staff as
served by the department, allowing asset m anage­
staff officers to keep pace with a m en t d e p a r t-JVANVALKENBURGH manager of media relations, a new
significant increase in business. ments.
HE appointments of Thomas L.
Mork and Ann M. WagnerHauser to the correspondent bank

Banker, January, 1982
Federal Reserve Bank of St. Louis

Other field assignments now are:
Michael T. Mishou, assistant vice
p resid en t, and Julie Hanson
Wisconsin, Michigan-Upper Penin­
sula and Iowa.
Donald R. Lindeman, assistant
vice president E astern South
Dakota and Southern Minnesota.
Kenneth A. Cain, correspondent
banking representative Central and
Northeastern Minnesota.
Rick Carey, correspondent bank­
ing representative Montana and
Western South Dakota and Western
North Dakota.
* * *

If you think your correspondent
bank is stringing you along,
maybe its tim e you severed the ties.
Sometimes, getting the answers you need from
your correspondent banker can be a frustrating
experience. One that consumes too much of your
valuable time. And one that could contribute
to your loss of a customer.
At Midland National Bank, we won't string
you along. Because most of our business
as a bank comes from dealing with businesses
and other banks. So, frankly, we're willing
to put a lot of effort into making
our relationship with you work.
We've organized our bank
in a way that allows you to
deal directly with a decision
maker, rather than having
to go through several review
committees. Our correspondent
team is dedicated to responding to
your needs quickly. And, our
expertise with small and mid-sized
businesses puts us in a unique
position to understand your
customers' needs.
So the next time you feel like
your correspondent bank is giving
you the business, call the Midland
National Bank correspondent team,
toll free at 1-800-752-4200.* And see
how the bank for business can
go to work to improve yours.
*In North and South Dakota, call 1-800-328-8678.

M idland


Of Minneapolis

An Affiliate of Northwest Bancorporation
Main Bank
401 2nd Avenue S outh • 372-7000


We're big enough to know how
and small enough to know you.
Federal Reserve Bank of St. Louis


Minnesota News

Mr. Kerr formerly was public rela­
tions manager at the Toro Company,
a Minneapolis-based manufacturer,
and before that worked with Gross
& Associates and other public rela­
tions agencies in New York City.
* * *
The Federal Reserve Bank of Min­
neapolis, recently announced it ap­
proval of the applications by
Farmers Investment Company, Inc.,
Eyota, to acquire control of: First
Dover Investment Company, Elgin;
First State Bank of Dover, Dover;
Elgin Investment Company, ElginMillville State Bank, and Elgin
Financial Services, Elgin.
* * *
William J. Wallman, senior vice
president and trust officer, Midland
National Bank of Minneapolis, has
been e lected
president of the
Corporate Fidu­
ciaries Associa­
tio n of M in­
nesota, accord­
ing to David H.
W illard
N o rth w e s te r n
National Bank
of Minneapolis,
outgoing asso- W. J. WALLMAN
ciation president.
E le c te d
a s s o c ia tio n
presidents were James G. Lethert,
Northwestern National Bank, St.
Paul; Robert M. Fischer, First Na­
tional Bank of Duluth, and Welles
B. Eastman, First Bank of Min­
Raymond E. Midthun, North­
western National Bank of Min­
neapolis, was elected secretarytreasurer and John T. Phillips, First
Bank Minneapolis, was elected
chairman of the executive commit­
tee. Halsey H. Halls, Northwestern
National Bank of Minneapolis; Paul
D. Schliesman, First National Bank
Minneapolis, and Donald L. Sodman, Northwestern National Bank
of M inneapolis, were elected
members of the executive commit­
* * *

through the acquisition of the First
Mid America Bank of Coon Rapids.
* * *
Sallie M. Lilienthal has recently
rejoined First Bank Minneapolis as
an assistant vice president in the ex­
ecutive and professional banking
Ms. Lilienthal, having joined the
bank in 1976, left to accept a senior
consultant position with Control
Data Business Advisors, Inc., in



Northwestern National Bank oL
Minneapolis has
announced the
addition of Den­
nis W. Fischer
as geologist and
project finance
representative in
the Energy/Natural Resources
Division. In his
new p o sitio n ,
Mr. Fischer is
responsible for business develop­
ment and the management of min­
ing accounts.
* * *
Alan I. Blaisdell, recently was
promoted to branch manager of the
Apache Plaza office of First Securi­
ty State Bank of St. Paul.
* * *
W. Merton Dresser, president of
Northwestern National Bank South,
has announced the promotion of
Donald L. Hansen to the position of*
senior vice president and cashier,
and Willard E. Rohde to the position
of senior vice president - loan ad­

Also, at First Bank, was the re­
cent addition of Fredrick A. Manger
as assistant vice president in the
Latin American division of the inter­
national banking department.
He started his banking career in
1973 at First Wisconsin National
Bank, Milwaukee, in their interna­
tional banking department.
* * *
The Federal Reserve Bank of Min­
neapolis, acting under authority
delegated by the Board of Gover­
nors of the Federal Reserve System,
today announced its approval of the
application of Milan Agency, Inc.,
Milan, to become a bank holding
company through the acquisition of
Mr. Hansen joined Northwestern
the Peoples State Bank of Milan.
Bank South in 1958. He has been
* * *
cashier since 1971.
Willard Rohde joined N orth-1
The board of Northwestern Na­
tional Bank of St. Paul recently an­ western Bank South in 1967 after
nounced the election of Susan A. graduation from the University of
Finn as assistant vice president in Wisconsin. He is designated as the
investment services and Karl J. bank’s senior lending officer.
* * *
Ostby as assistant vice president in
N o rth w e st B a n c o rp o ra tio n
financial services, according to
Larry D. Buegler, chief executive of­ reported December 21 it has agreed
ficer and chairman.
to exchange 452,875 shares of its
common stock for approximately.
$17 million aggregate principal
amount of its 7-3A% sinking fund
debentures due 2003 and 5-%%
The Federal Reserve Bank of Min­
debentures due 1990, with Salomon
neapolis, acting under authority
Brothers, Inc.
delegated by the Board of Gover­
Banco expects to realize a tax-free
nors of the Federal Reserve System,
gain of approximately $7 million, or
last month announced its approval
approximately 27 cents per share,
of the application by First State
from the transaction, which will be
Holding Company, Coon Rapids, to
reported in Banco’s fourth quarter^
become a bank holding company
Banker, January, 1982
Federal Reserve Bank of St. Louis


Bill Langford
Speaks Investments
Repo’s, term Fed funds, rapidly fluctuating
interest rates. These are just a few of the in­
vestment challenges faced by the community
banker today.
A good way to face them is to have access to
someone who understands investments and
who cares about community banks. That’s Bill
Langford, and that’s American.

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

Federal Reserve Bank of St. Louis


• S A I N T


Northwestern Banker, January, 1982


Minnesota News

1st St. Paul discusses Bond Swapping
Editor and Publisher
Associate Publisher
OND SWAPPING and Interest
Rate Futures were featured
topics for a special investment
seminar conducted by First Bank
Saint Paul last month at the
Radisson St. Paul Hotel, and attend­
ed by more than 150 bankers from
upper midwest states.
Charles E. Arner, chairman and
chief executive officer of the host
bank, extended a welcome and made
comments on events of the past year
in the financial industry. Two
distinct trends stand out, he said —
the erosion of the difference between
commercial banks and other finan­
cial institutions, and deregulation of
financial institutions.
Mr. Arner said within this con­
text, banks have had three things
going for them, but no more: 1. An
exclusive product franchise; i.e.,
checking accounts, but no longer is
this true. 2. A protected geographic
franchise. 3. Limits on rates paid to
“We have to start turning our
thinking to the future,” he said.
“Within the competitive environ­
ment in the future, whether you are
an optimist or a pessimist, you must
be a strategist.”
With the keynote point in em­
phasizing strategy, Richard C.
Swanberg, vice president of the in­
vestment services group, introduced
the three speakers for the afternoon
program, who spoke following the
luncheon opening the program.
Doug Melina, vice president of
First Trust Company, discussed the
“Outlook for Interest Rates.” He
projected first quarter business
down modestly 1% or 2%, recover­
ing in the second quarter and star­
ting back in the third quarter. He
believes the consumer’s financial
position is strong enough to start a
comeback. Also, he noted that in­
ventory accumulation is not as
severe as in other periods. Mr.
Melina believes that with lower
rates and a large tax cut at mid-year,
we should see a pickup in consumer
Banker, January, 1982
Federal Reserve Bank of St. Louis

Elected to Board

C. Charlotte Lohmann has been
elected to the board of the First
Northwestern National Bank of
spending. Other factors include oil Hoyt Lakes. She is presently
imports down about 4% from their employed as a records coordinator
peak, mortgage rates backing off at Erie Mining Company.
slightly and having a positive effect
on inflation. He forecast 90-day CDs Elected at Wayzata
trending modestly lower, with bank
The board of Wayzata Bank &
CDs at 12%. He doesn’t feel short Trust Company recently elected
rates will go down more because he B ra d ley
thinks the Fed, although it has Krohn as vice
eased a bit, will want to avoid its er­ p resid en t and
ror of 1980’s second quarter when it administrator of
made a sharp reversal of policy.
the commercial
John F. Mullen, senior vice presi­ and instalment
dent in the investment division, loan portfolios.
gave the address, “A Banker Looks
He was named
at Interest Rate Futures.” He gave to the position
his analysis of this technical currently held
management tool and how it might by Robert M.
be something banks would want to Weiss, who was
examine in the future to lock in pro­ elected president and ceo of the Min­
netonka State Bank. Prior to joining
The Bond Swap Workshop was Wayzata Bank & Trust, Mr. Krohn
conducted by Ira A. Joseph, a CPA held the position of vice presfrom Atlanta, Ga., a specialist in ident/m anager of F irst Bank
bond swaps. Each registrant was Systems loan participation alloca­
furnished a package of information, tion department.
forms and charts for this technical
Wolfe Named Vice President
A reception at 4:45 p.m. conclud­
The board of First National Bank
ed the afternoon workshop, which is of Owatonna has elected James B.
one of a continuing series conducted Wolfe vice president in charge of
by First Bank Saint Paul invest­ bank operations.
ment division for its correspondent
He began his banking career in
banks in surrounding states.
1971 as an assistant auditor, and
most recently was regional internal
audit officer in charge of First Bank
Retired Banker Passes Away Systems’ eleven regional internal
Paul O. Pearson, age 75, died auditors.
December 1, 1981, at the Weiner Remodeling Completed
Memorial Hospital in Marshall. He
began his banking career in Baker,
The State Bank of Hanska held an
Mont., in 1941 and retired from Em­ open house last month to display its
pire Bank in Cottonwood in 1972.
newly remodeled banking facilities

S ta te B ank of G re e n w a ld C o m p le te d

CONSTRUCTION has recently been completed and the State Bank of Greenwald was able
to move into its new two-story, 7,200 sq. ft. facility on Nov. 30, 1981. The new building,
located sw of the former bank, and featuring drive-up lanes and additional safe deposit
boxes, was designed by Vosejpka Associates Inc. of Chaska.

Minnesota News

and drive-up and walk-up addition.
Refreshments were served through­
out the day and free gifts given

Two Promoted in Pierz
The board of Farmers & Mer­
chants State Bank, Pierz, has an­
nounced the recent promotions of
Marilyn Kruschek to personal bank­
ing officer and Judy Fyten to
auditor and assistant cashier.



Bloomington Bank Receives
Best of Print/1981 Awards
Northwestern National Bank
Southwest, Bloomington, recently
was presented two Bank Marketing
Association “Best of Print/1981”
'awards at the BMA’s annual con­
vention in Washington, D.C.
Nearly 600 ads were entered in
this first annual print competition.
Northwestern National Bank South­
w est c a p tu red a “ C onsum er
Magazine Award” and a “Direct
Mail” award. Both award winning
ads were created for the bank by
Chance-Nelson and A ssociates
Creative Communications, Eden

Gives $500,000 to
NYU Graduate School
Henry Kaufman, managing direc­
tor and member of the executive
committee of Salomon Brothers
Inc., New York, has contributed
$500,000 to the New York Universi­
ty Graduate School of Business Ad­
The funds will be used to es­
tablish a director’s chair in honor of
Sidney Homer and Charles J. Simon
at NYU’s Salomon Brothers Center
for the Study of Financial Institu­
tions. The Center conducts a wide
range of research and educational
activity focusing on the needs of the
financial industry.
Sidney Homer and Charles
Simon, both retired partners of
Salomon Brothers, were the guests
of honor at the luncheon.
Federal Reserve Bank of St. Louis

Crookston First National’s
100th Year Comes to a Close


Joins First National, Duluth

The First National Bank of
Crookston concluded its 100th year
last month by publishing a fourpage insert in the Crookston news­
paper, covering activities held
throughout the year.
The slogan “ 100 Years Working
For You” was adopted by First Na­
tional for its centennial celebration,
and a special luncheon was held to
honor the staff and former em­
ployees. Pioneer Days were held in
June with a recognition banquet
honoring the bank for 100 years of
service to the community of
To conclude the year, the bank
sponsored “Up With People,” a
musical production consisting of
100 young men and women re­
presenting the United States and 15
foreign countries. The event took
place in November with cast mem­
bers staying with local families.

Gordon D. Swenson has returned
to First National Bank of Duluth as
trust representative after 18 years
as co-owner and
operator of the
Kohlbry, Swen­
son and Asso­
ciates, Inc., real
estate firm in
D uluth, presi­
dent Dennis W.
Dunne announc­
ed recently.
Mr. Swenson,
whose real es­ G.D. SWENSON
tate career spans more than 30
years, will be involved in financial
planning and business development
in First National’s trust depart­
He served as real estate loan of­
ficer and appraiser for First Na­
tional Bank of Duluth from 1953 un­
til entering the real estate business
in 1963.

Two Elected in Stillwater

Anderson Joins Crosby Bank

Northwestern State Bank of
Stillwater has announced the recent
election of Rae Luck as human re­
sources officer. She joined North­
western State Bank in 1978.
Arnold W. Lindall has been
elected to the board of Northwestern
State Bank announced James C.
Graham, president. Dr. Lindall is
president of Immuno Nuclear Cor­
poration, an organization specializ­
ing in medical diagnostic kits.

Leo Anderson has joined First
National Bank of Crosby as ex­
ecutive vice president and chief
operations officer, announced Kit
Svee, bank president.
Mr. Anderson had been with First
National Bank of Verndale and
Forest Lake State Bank before his
most recent position as a field under­
writer for New York Life Insurance
Company. He has also been a na­
tional bank examiner.

V illa rd O ffic e N o w O p en

GLENWOOD State Bank recently held a four-day celebration in honor of the grand opening
of its new Villard Community Office. The 34 x 38 foot structure, which replaced a temporary
facility that had been in operation for about a year, contains three offices and offers
customers two teller windows and a drive-up window.
Northwestern Banker, January, 1982


In Check Collection,
We're Setting the Pace

Our people, know-how, and
processing equipment
give you a clear advantage.
We start by saving you time and money in proof
and transit operations by eliminating pre-sort
reguirements. Then we work with you to develop
the best possible schedule for check clearing based
on your deposit activity, and available delivery
systems. Finally, we maintain a well-staffed
operations center with a high speed, state-of-the-art
com puter for handling each item efficiently.
O ur people, know-how and eguipm ent enable
us to meet deadlines and keep costs low.
For example, we were able to substantially
reduce the one and two day float for a Twin Cities
bank with early afternoon and evening sendings.
We established a new check clearing relationship
with a correspondent in another city which handles

checks for nine other banks. Now all banks in that
city are available overnight, a float reduction of
one day.
In another instance, our correspondent officer
checked with airlines, postal authorities, and
couriers to learn the most efficient means of
delivering late evening items. The result? Several
correspondent banks are now getting overnight
clearings on Twin Cities items and have reduced
float on RCPC items from two days to one. These are
just a few examples of how we're setting the pace
in correspondent banking.
If you're not getting that type of service from
your correspondent, check with us at 612-291-5585.

(j||^ First Bank Saint Paul
Correspondent Banking Division
332 Minnesota Street
Saint Paul, Minnesota 55101
Banker, January, 1982
Federal Reserve Bank of St. Louis

Member FDIC
Federal Reserve Bank of St. Louis


Promoted in Aberdeen

South Dakota

Dennis W. Walsh has been pro­
moted to agricultural loan officer at
the Downtown Aberdeen Main
branch, First N ational Bank of.


N. E. T urn q u is t, c h m n . , Sioux Falls
J. M. Sch wartz, exec. m g r . , Pierre


Miller Promotion Told
Howard J. Peterka, president of
First Bank Miller, recently an­
nounced the promotion of Roger D.
Mallberg to vice president. He began
his banking career with First Bank
Miller in 1973.

teller in 1949 and joined First Bank,
then known as Aberdeen National
Bank, in 1955. His most recent pro­
motion to assistant vice president
came in 1976.

First Natl., Black Hills
Sponsors Activities

The First National Bank of the
Hills recently sponsored two
Lynn Tjaden, assistant vice presi­
dent in charge of real estate and
Annual Senior Citizen
commercial loans, has been elected
Show and Sale invited
to the board of the Deuel County
area senior citizens to exhibit and
National Bank, Clear Lake.
sell arts, crafts, talents and hobbies
for the day in Rushmore Plaza Civic
Promoted at Sioux Falls
Center Arena. Some 165 exhibitors
U nited N ational Bank, Sioux displayed their work to over 3,500
Falls, recently announced the pro­ people who attended.
motion of Col­
The First National Bank’s Fall
leen Dather to
Racquetball Round-Up resulted in
real estate loan
the largest tournam ent ever in
officer; Elaine
South Dakota. It was held at the
A n d e rs e n to
Supreme Courts in Rapid City and
drew 185 entrants from surrounding
officer, Viborg
areas, including Gillette and Casper,
branch, and the
addition of Mike
Hanzlik as in­
Sisseton Bank Opens
- / i
stalment loan of­
Insurance Office
ficer, Rapid City
First State Bank, Sisseton, recent­
ly opened a full service insurance
Northwestern National Bank office. It is managed by Maurice
Voss, who has 15 years of insurance
Announces Staff Changes
C.P. "Buck” Moore, president,
Northwestern National Bank of Pierre Appointment Told
Sioux Falls, has announced the fol­
First National Bank in Pierre
lowing staff changes.
announced the appointment of
Eric D. Hohman, personal loan
vice president, to the
representative, was named personal positionFrazee,
loan officer at the Westwood branch began her banking careerofficer.
and Jon A. Veenis, operations spe­
in 1954 and will be mar­
cialist, was named operations officer, National
personnel officer in addi­
administrative group.
tion to compliance duties.

Tjaden Elected to Board

National Bank of South
Dakota Elections Told
The board of the National Bank oU
South Dakota has announced the
election of John Vanderboom as vice
president and m anager, Huron
branch. Mr. Vanderboom joined the.
bank in 1977 and was named vice
president and manager, Presho
branch, in 1979. Prior to joining
the bank he had worked for banks
in North Dakota, Minnesota and,
Also elected were Stephanie Mundhenke as pension trust officer in
Sioux Falls and Dwight Bordewyk
as assistant vice president and as-<
sistan t m anager in Wessington
Springs. Newly elected were Charles
Bergeleen to loan officer and Jo Ann
Doering to operations and personnel
officer, Wessington Springs, andj
Jean Meadows as instalment loan
officer, Hot Springs.



■É» ME




Retires in Aberdeen
George Blando, assistant vice
president, recently retired from
First Bank of Aberdeen, after more
than 32 years in banking.
He began his banking career as a
for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis

Promoted at Dell Rapids
Sharon Bittner has been promoted
to customer service representative
at Northwestern National Bank,
Dell Rapids.


Polish Reassumes Position
At Deer Lodge

North Dakota
T. A . Roney, p r e s . , Carrin g to n
H. J. Arg u e , exec. d i r . , B is m a rc k

Promoted in Bismarck
Stephen Stenehjem has been pro­
moted to assistant vice president in
he commercial loan department at
Dakota Northwestern Bank, N.A.,

State Bank Promotion Told

member of the trust department
staff. Before joining the bank, Mr.
Brokaw was employed as accounting
manager of Safeco Insurance Com­
panies in Seattle.

Fargo Auto Banks Open

Robert J. Polish has recently reas­
sumed his position as president of
Deer Lodge Bank and IVust Com­
pany, Deer Lodge. Majority own­
ership of Deer Lodge Bank and TVust
Company, the oldest financial in­
stitution in Deer Lodge, has revert­
ed to the Polish family following the
withdrawal of an application to pur­
chase the bank.
Mr. Polish joined Deer Lodge
Bank and TVust Company as execu­
tive vice president in 1966 when his
father, Rudy Polish, became the
bank’s principal stockholder. He was
named president in 1979 following
the death of the elder Mr. Polish. Mr.
Rudy Polish’s widow, Estella, con­
tinues to serve as vice chairman of
the board of Deer Lodge Bank and
TVust Company.
Mr. Polish began his banking
career with the First National Bank
of Eagle, Colorado and later worked
at M arquette National Bank in
Minneapolis before returning to

Auto banking services recently
Bismarck State Bank, Bismarck, began 'at First National Bank’s two
has announced the promotion of new Fargo locations — the main
Elaine Balzer from head teller to bank site at First Avenue south and
customer service representative. Fourth street, and the west office at
She has been with the bank since 13th Avenue south and 25th street.
1978. Linda Morast has replaced Ms.
Both banks were to open early in
Balzer as head teller.
1982 and offer all the services cur­
rently available at the bank at 15
Brokaw Joins Trust Staff
Broadway. Prompted by customer
Duane W. Sorensen, president of demand, the west side auto bank
First National Bank & TVust Co., opened earlier than scheduled. First Poison Promotion Told
Williston, recently announced the National Bank is an affiliate of
William L. Funke, chairman of
addition of Gordon Brokaw as a new Northwest Bancorporation.
First Citizens Bank, recently an­
nounced the pro­
motion of Rick
E. Skates to vice
president and as
a director.
Mr. S k a te s
joined the bank
in 1976 as assist­
ant vice presi­
R. L. Reiquam, pres., Miles City
dent and manag­
J. T. Cadby, exec, v.p., Helena
er of the instal­
m ent loan de­
partment. His new duties will in­
clude managing the commercial
Great Falls Holding Company quire approval by state and federal loan department and acting as per­
sonnel officer and security officer. He
regulatory authorities.
To Acquire Bank in Malta
replaces James E. Cowan who re­
Charles W. Rubie, president and
signed recently.
chief executive officer of Bank of
Montana System, Great Falls, and Elected at Great Falls
Jeffrey C. Mortensen has been Advanced in Billings
Paul K. Kropp, chairman of the
board of First Security Bank of elected cashier of Central Bank of
A1 Winegardner, president of First
Malta have announced the signing Montana, Great Falls, according to Northwestern National Bank, Bil­
of an agreement to exchange the an announcement made by William lings, has announced the election of
stock of the Malta bank into the E. Thorndal, president.
Vida Poling as personal banking
Mr. Mortensen began his banking officer.
holding company.
BMS stock will be exchanged for career in 1977 and served as cashier
80% or more of the stock of First at Midstate Bank of Montana in
Security Bank. It has been es­ Lewistown until his recent election. Lattin Elected President
Harry E. Lattin, executive vice
timated that approximately 60,000 All of the banks in which he has
BMS shares may be involved in this served are affiliates of Bank of Mon­ president of First Interstate Bank of
Kalispell, has been elected president
transaction. The exchange will re­ tana System.

Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982

and chief executive officer of the
bank. His election was in anticipa­
tion of the retirement of Eugene O.
Gillette, chairman, president and
chief executive officer, on February
1, 1982, after a 29-year career with
the bank.
Mr. Lattin, who also will become
chairman of the board on February
1, 1982, joined the bank as adminis­
trative vice president in 1973. He
was elected executive vice president
in 1977. Before joining First Inter-

state Bank, Kalispell, he spent 18
years with the F irst In terstate
system at Bank of Nevada, which
merged into First Interstate Bank of
Nevada in 1979. At Bank of Nevada,
Las Vegas, Mr. Lattin worked in all
phases of banking and was elected
vice president of personnel in 1971.
Mr. G illette, 62, joined F irst
Interstate Bank of Kalispell as a
teller in 1952 and has been chair­
man of the board and president the
last 14 years.

Sheridan; Membership Chairman —
Maxine Hill, vice president and loan
officer, First Wyoming Bank, Cody;
Public Relations Officer — Karen
Lambertsen, auditor, Rollins Na­
tional Bank, Rollins, and Confer­
ence Chairman for 1982 — Betty
Smith, assistant vice president,
First Interstate Bank, Casper.

Casper Officer Named
Paul K. Kinner has joined the
Bank of Casper as assistant vice
president in the loan department,
according to Donn H. D orsett,

Pioneer Bank Now Open

New President Named
Bob Crocker has been named
managing officer of the First State
B ank at Shoshoni, announced
Joseph R. Lyman, chairman. He suc­
ceeds Joe Barber who recently re­
signed to accept a managing position
with a local growing business. Mr.
Barber had held the position as pres­
ident since the bank opened in 1978.
Mr. Crocker, who has been with
the bank since 1979, was previously
assistant vice president at the First
National Bank in Thermopolis.

Board Member Named
W. R. Reiman, chairman of First
Wyoming Bank, N.A., Cheyenne,
has announced the appointment of
Blair J. Tfautwein to the board.
Mr. TVautwein is an attorney with
the law firm of Hathaway, Speight
and Kunz.

Elected to Board in Hanna
Bob Shepherd, owner and man­
ager of the Jade drive-in and pack­
age liquors, was recently appointed
to the board of directors at First
Wyoming Bank of Hanna, according
to John Martin, president.

Lander Officer Named
Marv Hubbs has been named vice
president and cashier at Yellowstone
State Bank, Lander, announced
Orval Little, president.
Mr. Hubbs was previously emNorthwestern
Banker, January, 1982
Federal Reserve Bank of St. Louis

ployed as business manager for
Vidakovich and Pappas Enterprises.

Appointed in Casper
Hilltop National Bank, Casper,
has announced the appointment of
James E. Coles to the board. Mr.
Coles is currently owner and presi­
dent of Wyoming Peterbilt, Inc.

Wyoming Bank Women
Form Spin-off Groups
A recent meeting of the Wyoming
Association of Bank Women brought
about a restructuring of the organi­
zation and the formation of nine
individual spin-off groups, according
to Winona Flower, state council
Each of the nine groups elected
officers from their respective geo­
graphic areas, and will meet at least
quarterly to discuss issues and ideas
specific to their area.
Meetings for the combined group
will be held in the spring and fall,
with the state conference scheduled
for May 20 in Casper.
Each group is expected to report to
the executive council whose mem­
bers are: State Council Chairman —
Winona Flower, vice president, Jackson State Bank, Jackson; Education
& Training Chairman — Nina Wood­
ward, vice president, First Inter­
state Bank, Casper; Awards & Schol­
arship Chairman — Coralee Davis,
executive secretary, Security Bank,

The Pioneer Bank, located on
Front St., recently opened as Evan­
ston’s newest full service banking
facility. Harry Palmer will serve as
president with 20 years of banking
experience behind him. Other direc­
tors and organizers include Larry
Lehman, a local attorney, and Larry
Proffit, an Evanston businessman.
Other officers include Van John­
son, vice president and Jeanette
Wagstaff, cashier. A perm anent
home for the bank is scheduled for
construction next year and will be
located adjacent to the present

MHT Markets New
Benefit Payment Systems
The trust division of Manufac­
turers Hanover has introduced a
new Benefit Payments System
which represents a significant exten­
sion of its Master Trust operational
According to Joseph Jasionowski,
vice president in charge of the in­
stitutional asset services sector of
the trust division, the new system,
which was developed by Manufac­
turers Hanover, will provide for elec­
tronic funds transfers after the first
quarter of next year.
“The new system considerably
enhances the flexibility and detail of
reports available to customers,” he
said. “However, the most signifi­
cant change will be the introduction
of a direct transfer capability. It is
clearly far more convenient for in­
dividuals to have one source point
for their funds because it eliminates
the need to physicallv do something
to manage deposits.”

Heads New Bank
George B. McKinley, president
and chief executive officer of Central
Bancorporation, Inc., announced re­
cently that Raymond L. Guerrie has
been chosen to be the president of
First National Bank in Battlement
Mesa, a new subsidiary bank which
is in formation and pending regula­
tory approval.
Mr. Guerrie has been with First
National Bank of Glenwood Springs,
a subsidiary of Central Bancorpora­
tion, Inc., in various lending capac­
ities since 1965.
Upon receipt of further approvals,
First National Bank in Battlement
Mesa is expected to open in a tempo­
rary facility soon after the end of the
Mr. McKinley also announced pre­
liminary approvals have been re­
ceived from the office of the Comp­
troller of the Currency for two
national bank charters: Central
Bank of Inverness, N.A. and Central
Bank of Highlands Ranch, N.A.
Both banks are located in devel­
oping business complexes south of
Denver surrounded by growing resi­
dential areas.

was most recently manager of the
accounting department for Colorado
National Bank.

Agreement Reached to
Acquire Exchange National
Colorado National Bankshares,
Inc. has announced th a t it has
reached agreement in principle with
Mountain Banks Limited for the
acquisition of the Exchange Nation­
al Bank, Colorado Springs. The
agreement provides for a total pur­
chase price of approximately $38
million, payable in cash and subject
to certain adjustments at closing.
The contract is subject to approval
by the boards of both parties, by
Mountain Banks, Ltd. shareholders
and regulatory authorities.

Named to Littleton Board
James E. Gammon, president of
Jim Gammon and Associates, Inc., of
Littleton, Colo., has been elected to
the board of directors of The First
National Bank of Southglenn, ac­
cording to R.K. McCoy, chairman
and president.

Three Elected at Northglenn

Aurora Officer Named

The board of The First National
Bank of Northglenn has named Bere
S. Neas, Alvin C. Vasicek and Diane
L. Dyer as assistant vice presidents,
according to Wesley J. Watson,

Ritzi MacKenzie has been elected
operations officer at First National
Bank of Aurora, according to Melvin
E. Emeigh, president. She joined the
bank in 1980.

Three V.P.’s Elected at First
Will F. Nicholson, Jr., president of National of Denver

Nicholson Named Senior VP

Colorado National Bankshares, Inc.,
The board of The First National
announced that James L. Basey has Bank of Denver has named three
been elected senior vice president, new vice presidents, according to
finance, of Colorado National Bank- Robert E. Lee, president and chief
shares, Inc.
executive officer.
Mr. Basey joined Colorado Nation­
Kathleen J. Wichern has been
al Bank in 1970. His job respon­ elected vice president of corporate
sibilities have primarily centered in banking after joining First of Den­
the area of financial analysis and he ver last October. Previously, she was
Federal Reserve Bank of St. Louis

senior vice president, chief financial
officer and treasurer of Government
Employees Financial Corporation.
John G. Cronen, Jr. has been pro­
moted to vice president in the ener­
gy department after serving six
months as senior petroleum en­
gineer. Before joining First of Den­
ver in June, Mr. Cronen was a senior
petroleum engineer with Security
Pacific Bank.
John A. Miller joined First of Den­
ver last November as vice president
of m a n a g e m e n t in fo r m a tio n

Witty Promoted to V.P.
Michael Witty has been promoted
to vice president-cashier at East
Bank of Colorado Springs, according
to Thomas P O’Rourke, president.

Puckett Elected to Board
C. Gale Sellens, chairman and
chief executive officer of Denver Na­
tional Bank recently announced the
appointment of Robert E. Puckett to
the bank’s board of directors.
Mr. Puckett is managing partner
of Puckett Energy Co., an oil and gas
exploration company and of Puckett
Resources Co., a lease brokerage
service company.

Accepts Littleton Position
John Bateson, vice president of
First State Bank, Scottsbluff, Nebr.,
recently accepted a position with
United Bank of Littleton as a com­
mercial loan officer. Mr. Bateson
had been with First State for three

Two Promoted, Nine New
Officers at Central Bank
The board of Central Bank of Den­
ver recently announced the promo­
tions of Mae Jean Bucklin and
Martha S. Graves to assistant vice
presidents. Miss Bucklin joined the
bank in 1958 as a teller. Ms. Graves
joined Central Bank in 1979.
Seven new employees were elected
to officer positions. They are: Miles
C. Bloom, retail lending officer; Wil­
bur A. Glass, services officer; John
C. Golden, retail lending collections
officer; David W. Kerschen, retail
lending officer; Marcus Mitchell,
commercial loan officer I; David L.
Swan, commercial loan officer I, and
Karen L. Tbnso, senior petroleum
Northwestern Banker, January, 1982

"See this button? W hat it says sets us
apart from all those other banks.
It has nothing to do w ith our looks.
Or our clothes. It shows up in the way
we do our jobs. The extra care and
attention we give you and your needs.
Federal Reserve Bank of St. Louis

"It's our com m itm ent to serve you
better that shows up in countless little
ways. W hether we're making loans to
buy banks. Or participating w ith you on
loans to your customers. Or helping
to manage your liq u id ity through
federal fund transactions or check
collection. O r sharing our expertise on
things like ATM s and VISA® Or a
variety of services, such as EEO plans
for human resources. O r m unicipal leasing.

" If you're a bank not currently w orking
w ith us, we invite you to call.
You'll discover, like our hundreds of
other banking friends, that we have a
genuine interest in correspondent banking.

"And you'll find out that better
banking is a lot more than just a slogan
on a button"

of Denver

The Better Bankers.“
1515 Arapahoe Street / P.O. Box 5548 T. A.
Denver, Colorado 80292 / (303) 893-3456
Federal Reserve Bank of St. Louis

The Better Bankers is a service mark
of Central Bank of Denver.

H rtM S


C o t ^ e ïC e
iV v e

* €

t í^ C
Northwestern Banker, January, 1982
Federal Reserve Bank of St. Louis


^ > > oe

* * * %

^ ^ ,0 8

s s î* ®


Celebrates 100th Year
The First National Bank of Wisner concluded its 100th anniversary
year of service in 1981. In observ­
ance the bank sponsored "The Pied
Piper Family Comedy Theatre” for
the children of the community and
the musical "The Fantasticks” was
presented for the patrons. The
First National Bank was formed in
July, 1881.
The 1100 square foot brick struc­
will be built along the west side
Former Broken Bow State Bank
lot and feature two drive-up
President Samuel P. Bailey, 65, died
a night depository and two
recently at the Jennie M. Melham
Memorial Medical Center.
Retiring as bank president in De­
cember, 1978, Mr. Bailey was still Board Member Named
serving as a director at the time of
Dr. Gerald Luckey has been elect­
his death.
ed to the board of First National
Bank, David City, announced John
C. Klosterman, chairman and James
Elected to Norfolk Board
Burton E. Nixon, president of Howe, president.
Dr. Luckey is presently engaged in
Simpson Structures Inc., has been
practice of medicine at the
elected to the board of directors of
Clinic, PC..
Northwestern National Bank, Nor­
folk, according to Tbm F. Finnigan,
Appointed in Laurel
Richard Erwin has been appointed
to the board of Security National
Schuyler Directors Named
Jack Peters, owner of Schuyler Bank, Laurel, according to Richard
Insurance and Real Estate Agency, Adkins, Jr., chairman. Mr. Erwin is
has been named a director of First presently engaged in farming.
National Bank of Schuyler.
He replaces L.F. Reinecke, who
was named the first honorary direc­ Joins Bank in Papillion
Bank of the Midlands, Papillion,
tor of the bank. Mr. Reinecke has
has announced the recent addition
served on the board since 1952.
of Robert E. Wolf as a loan officer, to
its staff.
Approval Announced
He was previously employed by
The Federal Reserve Bank of Kan­ Packers National Bank, Omaha, in
sas City has approved the applica­ its management trainee program.
tion for Gray Bancorp, Incorporated
of Coleridge, to acquire 100% of the
shares of the Coleridge National Appointed in Albion
Faye Becker has been appointed
Bank, Coleridge.
assistant personnel director of the
Albion National Bank, Albion, ac­
Joins Citizen’s State
cording to Gary Kruse, executive
Mike VanCleef, son of Lloyd vice president.
VanCleef, president, has joined Citi­
Mrs. Becker has been employed at
zen’s State Bank, Carleton, as a the bank since 1976 and will con­
trainee. He will be learning overall tinue to serve as head teller.
operations and will attend courses at
the American Institute of Banking.

Former President Dies

Atkinson Officer Named

Construction Started
Last month construction was
started on a new drive-in facility for
Farm ers & M erchants National
Bank, West Point, to be located at
the corner of Lincoln and Sherman
Federal Reserve Bank of St. Louis

The First National Bank of Atkin­
son has announced the election of
David L. Draeger as a loan officer on
the bank’s staff. He was previously
employed by Cones State Bank,
Pierce, and has spent the past two
years as a state bank examiner.

Elected President
Janice Swindell, assistant cashier
and assistant secretary at First Se­
curity Bank in Holdrege, has been
elected president of the central Ne­
braska chapter of the Bank Admin­
istration Institute for 1981-82.
As president, she will represent
the central district consisting of 15

Ground Broke for Drive-up
F irs t N a tio n a l B ank, T h e r­
mopolis, recently held groundbreak­
ing ceremonies for a new drive-up
facility to be located at Fifth and
Broadway, next to the bank. The
new drive-up will accommodate 5
lanes with the possibility for six and
is expected to be completed in April
of this year.

West Point Director Named
First National Bank, West Point,
has armed Mary Lauritzen as mar­
keting director with responsibilities
in public relations and promotional
advertising. She had previously
worked at departm ent stores in
Chicago and Phoenix.

Bellevue Officers Told
The Bank of Bellevue recently
announced the promotions of Bill
Henning to vice president of loans
and Barb Plott to assistant cashier.
Mr. Henning joined the bank in
1980 with ten years of banking expe­
rience and Ms. Plott, previously
head teller, joined in 1976.

Former Vice President Dies
Samuel Floyd Curry, former vice
president of Security State Bank in
Holbrook, passed away recently at
the age of 83. Mr. Curry began his
banking career in 1920 at Security
State Bank and continued there un­
til the bank was sold in 1978.
Northwestern Banker, January, 1982

banks with capital and surplus o
more than $3 million. Mr. Acker wa
elected to his first term by member
banks with capital and surplus of
$l-$3 million. Their terms began
January 1.

Banco Mortgage Expands

ohn D. Woods, chairman and
chief executive officer of Omaha
National Bank has announced the
following appointments:
Promoted to vice president were
George M. Brady, Marcus H.
Ford, Jr. and John A. Ostrowski.
Promoted to second vice president
were William A. Legenza, Gloria
Menard and M. Scott Newberry.
Other officer appointments include
John E. Nahas, loan officer; Alice
H. Skultety, trust officer; Ronald J.
Favara, assistant marketing offi­
cer; Linda D. King and Jean M.
Paul, assistant operations officers;

Russell J. Kreikemeier, assistant
trust officer, and David Sugimoto,
assistant investment officer.
Mr. Brady, currently senior com­
mercial banking officer, joined the
bank in 1974, as an a ssistan t
Mr. Ford joined the bank in 1968
as security chief, named director of
loss prevention in 1973 and second
vice president the following year.
Mr. Ostrowski joined the bank in
1978 as head of collections and
named second vice president in
Mr. Lhgenza, presently manager
of the bank’s Empire Park office,
joined in 1971. Ms. Menard joined as
consumer teller supervisor in 1975
and is currently manager of person­
al banking. Presently a correspon­
dent bank-ag loan officer, Mr. New­
berry joined the bank in 1972 as an
assistant manager in demand de­
posit accounting.
John M. Shonsey, chairman of
American National Bank, Omaha,
has announced the election of
Donald G. Kirby as assistant vice
Mr. Kirby has been active in bank
data processing for the past fifteen
years and in his new position he will
manage the bank’s computer center.



for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

John D. Woods, chairman and
chief executive officer of the Omaha
N ational Bank, and Duane C.
Acker, president of Kansas State
University in Manhattan, have been
elected directors of the Federal Re­
serve Bank of Kansas City
Mr. Woods was unopposed in the
election for his second term as a
director by Tfenth District member

Banco Mortgage Company, th
nation’s third largest mortgage
banker, is creating a new division
within the company to develop in­
novative, conventional, multi-family
financing programs. The new divi
sion will focus on what Banco Mort­
gage sees as “emerging oppor­
tunities to respond to recent
changes in th e m u lti-fam ily
Also as part of the reorganization,
Banco Mortgage, a subsidiary of
Northwest Bancorporation, is con­
solidating the mortgage orginination offices of its Insured Projec
Division (government-insured pro­
jects) and Income Loan Division
(long -term financing for income pro­
ducing properties).
The two divisions have ha
separate mortgage origination of­
fices in many of the cities where
Banco Mortgage maintains field
operations. Those loan origination
offices now will be consolidated a
part of the Income Loan Division.
The combined offices will offer a
broader range of services, according
to Banco Mortgage.
The new division will be heade
by Jennifer Cheatham, senior vice
president. Neil Hammitt, senior vice
president, will continue to manage
the Income Loan Division.
Banco Mortgage President Davi
W. Beal said the increased emphasis
on new multi-family financing
vehicles should enable Banco Mort­
gage to attract additional sources of
investment capital while serving the
changing needs of apartment devel­
opers and owners.
He pointed out that the Economic
Recovery Tax Act of 1981 is ex­
pected to result in an improved in­
vestment climate for real estate.
He added that while Banco Mort­
gage sees the possibility of a re­
duced emphasis on governmentinsured multi-family programs, the
company will not diminish its tradi­
tional expertise in that area.
Banco Mortgage currently ser­
vices more than $5.4 billion in mort­

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

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od Steinacher was recently
R named
vice president and six

and the others are "a welcome an
significant increase to the company’s
reserves and cash flow.”
The discovery wells are:
The 35-1 Herboldsheimer,
Cheyenne County, Nebr., SE/4-S35
14N-53W. In an 8-hour swab test,
the well swabbed at a rate of 345
barrels of clean oil per day.
The 35-2 H erb oldscheim er,
NE/4-S35-14N-53W. In an 8-hou
swab test, the well swabbed at a rate
of 150 barrels of clean oil per day.
Both wells appear to constitute a
new field discovery, and appear to
part of the same trend as the South
west Potter Field, which has pro­
credit insurance accounts in eastern duced more than 7 million barrels of
oil, and 1.5 billion cubic feet of gas.
Nebraska and western Iowa.
Production is from the J-Sand
5,622 feet. Five additional wells ar
George A. Frampton, 87, retired planned.
Of the other four wells, three are
president of Cornhusker bank, died
recently. He was the bank’s presi­ in Kansas and one in Tfexas.
dent from 1948 to 1975, remaining
as its vice president and chairman
until his death.
Hayes Center Observes 75th
His daughter, Alice M. Dittman,
The First National Bank of Hayes
is currently president of the bank.
Center, having acquired its National
Mr. Frampton, who began his Charter in 1906 under the name of
banking career in Denton in 1914, Farmers State Bank, observed its
founded the Iowa State Bank in Des 75th year of service to the communi­
Moines in 1941 and served as its ty, this past year. The bank cele­
president until December, 1946. He brated with a three-day open house.
later moved to Lincoln.
* * *

others promoted, by the board of
National Bank of Commerce, Lin­
coln. Mr. Steinacher has been with
the bank since 1979, and was pres­
ently serving as personal banking
Promoted to assistant vice presi­
dents are Robert G. Block, Mike
Donnely, Tom Henning and James
T Hitt.
After joining the bank in 1977 in
the management trainee program,
Mr. Block assumed a position in the
mortgage loan division. Mr. Donnel­
ly started with National Bank in
1977 and was promoted to employee
benefit trust administrator in 1978.
Mr. Henning previously held the
Loren R. Anderson, executive
position of correspondent bank offi­ vice president of National Bank of
cer after joining the bank in 1980. Commerce in Lincoln, has been
Mr. Hitt has been employed in the elected president of Mid America
trust investments department since Clearinghouse Association, head­
joining in 1979, and promoted to quartered in Kansas City, Mo.
trust investment manager in 1981.
Mr. Anderson, who has been with
Newly elected officers are Lovie the bank since 1949, directs the
Broadus, personnel officer and administrative services group.
Jerry D. Slominski, trust adminis­
tration officer.
Two New Oil Wells
ik %

Active in Nebraska
Steve McKelvey has been hired
as the new risk manager for the
Nebraska Bank­
ers Association,
with primary re­
sponsibility for
the operation of
the association’s
new B la n k e t
Bond Insurance
F o rm e rly a
district manager
for US Life CredS. MC KELVEY
it Life Insurance Company, Mr.
McKelvey was involved in servicing
for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis

Denver Western Petroleum Corp.
announced last month th at two
wells in a new field in Nebraska are
among six new wells added to the
company’s list of properties either
producing or under completion.
F. Lee Robinson, president, said
the Nebraska discovery wells have
combined swab test rates of 495
barrels of oil per day. The company
has a 35% working interest in these
two wells and the surrounding 1,300
acres that it farmed out to Cougar
Petroleum Corp., a privately-held oil
and gas company in Denver.
M. Robinson said these two wells

RMA Schedules 2nd CEO
Loan Management Congress
Robert Morris Associates is spon­
soring its second “CEO Congress on
Loan Management,” January 21-24,
at La Posada Resort Hotel, Scotts­
dale, Ariz. Developed by RMA’s
policy division, this program has
been designed especially for CEOs
of RMA member banks in the
$150-$750 million asset range.
Registration on a first-come, firstserved basis will be limited to 60
CEOs from RMA member banks.
During the Congress, participants
will consider four key issues facing
banks in the 1980s: (1) availability,
training and compensation of
lenders; (2) the use of microcom­
puters; (3) determining the right
retail banking strategy; and (4)
maintaining bank resources amid in­
flation and interest rate volatility.
Edward E. Furash, president,
Furash & Company, and profes­
sional associate, M anagem ent
Analysis Center, Inc., Washington,
D.C., will serve as program coor­


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Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


A Trust A ssistance Program
for banks that want to size up.
Now you can provide your
customers with the same trust
service expertise we otter
to ours.
It's possible through "TAP"-a
new Trust Assistance Program
from Bankers Trust.
Our staff works with you to
otter a variety of services in­
cluding trusts, estate planning,
investing, pensions and re­
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now be seeking elsewhere,
And to help assure success,
we will conduct tor you
and your customers a series

of seminars dealing with
trust services.
We've developed "TAP" to
encourage better trust services
throughout Iowa communities,
and to help you grow in
today's competitive financial
To initiate or expand the
scope of trust services at your
bank, call on Bankers Trust,
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Iowa’s Largest Locally Owned Independent Bank
Member FDIC

Banker, January, 1982
Federal Reserve Bank of St. Louis

IB A Id e n tifie s L e g is la tiv e Issu es
EN Legislative issues of concern
to the Iowa Bankers Association
have been identified and positions
prepared for the second session of
the 69th Iowa General Assembly.
^ The 33 members of the IBA legis­
lative committee
re p re s e n t all
areas of Iowa
banking and inplude
r e p re ­
sentatives of inf
- 111L
banks, holding
" ■■
c o m p a n i e s , 1*tÊÊÊm
pmall, large, ur­ :V ' 0 - ; .Vv ;. 3* Æ m
' /Ë Ë m
ban and rural J.B. MERIWETHER
b a n k s. B ruce
Meriwether, president of the First
National Bank in Dubuque, is chair­
man of the legislative committee.
IBA staff members working with
the committee are Neil Milner, ex­
ecutive vice president; Wes Ehrecke,
director of government relations,
hnd Richard Thornton, legislative
The 10 issues identified in a
special mailing prepared for IBA
members, and the IBA positions
fetated, are:
1. Coalition Bill. The issue: Needed
changes to usury, consumer credit
code and real estate mortgage lend­
ing. Eight industries directly related
With this language helped draft the
bill they all support. Position: Sup­
port the Coalition Bill.
2. Due-on-Sale. Issue: In recent
legislative sessions, provisions were
passed pertinent to due-on-sale
language on mortgage loans. Sec­
ondary market investors nationwide
have expressed deep concern about
investing funds in Iowa due to the
restrictions imposed upon enforce­
ment of due-on-sale. Position: Sup­
port federal language that favors
elimination of a prohibition on dueon-sale. Also, to support the coali­
tio n ’s desire to enforce due-on-sale
Federal Reserve Bank of St. Louis

at the state level — a separate bill.
3. Title Insurance. Issue: To allow
title insurance to be sold in Iowa.
Iowa is the only state that does not
authorize sale of title insurance,
although it is the standard form of
title protection. Position: To sup­
port the sale of title insurance in
Iowa; to be offered on an optional
4. Public Funds. Issue: Savings and
loans continue to seek authority for
public treasurers to deposit public
monies in s&ls. Position: IBA
against any move that would give
other non-bank financial insitutions
such authority.
5. EFT. Issue: Deposits in EFT ter­
minals throughout the state. There
are feelings in the rural community
banks that the deposit restriction to
terminals should be removed and
allow deposits to be made from any
terminal in the state. Position: Sup­
port for anywhere in the state, but
not across state lines.
Issue: Terminal placement limited
to metropolitan complex. Discus­
sion by the EFT Task Force was
given to allowing a financial institu­
tion to establish a terminal in the
county, the corner counties, the con­
tiguous counties of its principal
place of business and in a metro­
politan complex where a branch of­
fice is operated, instead of only in
the metropolitan complex of the
main office or detached office.
Would allow service of the unincor­
porated areas which cannot be ser­
viced at this time. Position: Recom­
mend not to do anything with the
terminal placement restriction at
this time; continue further study
and get a position before legislative
session commences.
6. 8% Deposit Limitation. Issue:
Determine if there is a need to in­
crease the 8% deposit cap that ap­
plies to bank holding companies for
Iowa holdings. Position: The IBA,

at this time, opposes any change to
the 8% deposit language of the cur­
rent statutes.
7. Money Market Mutual Funds.
Issue: MMFs offered by non-financial institutions have drained $1
billion deposits from Iowa financial
institutions. Issue: Are they hurting
the people who borrow from banks
and deposit money in banks? Issue:
Such MMFs should be regulated on
same basis as financial institutions.
Position: IBA recognizes little can
be done at state level; will continue
to strive for competitive equity with
the unregulated entities offering
banking services.
8. Prohibition of Sale of Real Estate
within Banks. Issue: The Realtors
Association could again make it a
high priority to take bankers out of
the real estate business, which could
ultimately lead to prohibition of the
sale of insurance also. Position: IBA
strongly opposes this bill and any
others which would restrict banks
from providing insurance, real
estate or other services to their
9. BankPac ’82. This is not a
legislative issue, but a supportive
endeavor to the legislative commit­
tee’s work; puts in place an organ­
izational drive to obtain needed
BankPac funds from every bank in
the state in a 30-day campaign.
10. S&Ls Converted to Stock Com­
panies. Issue: Iowa is one of four
states that currently do not allow
S&Ls to be converted into stock
companies. Comments: Special IBA
Task Force assigned to study issue.
Position: IBA will continue to
monitor the issue and formulate a
position prior to the 1982 session. □

Hansen Named Chairman
Governor Robert Ray has named
Oliver Hansen, president of Liberty
Trust and Sav­
ings, Durant, as
the new chair­
m an of th e
A g ric u ltu ra l
Board of the
Iowa Develop­
ment Commis­
Mr. Hansen,
who has been a
member of the nine-person board
since 1973, is a past president of the
Iowa Bankers Association and
former Iowa Superintendent of
Northwestern Banker, January, 1982


Iowa News

G roup 1 M e e ts Feb. 12-13 in S io u x C ity
HE Marina Inn in South Sioux
City will again be headquarters
for the annual meeting of Iowa
Bankers Association Group 1. The
meeting is scheduled there February
12-13 and business sessions will be
presided over by Group 1 Chairman
Harold H. Harms, president, First
State Bank, Brunsville, and senior
vice president, LeMars Savings
Bank. He will be assisted at the
meeting by Group Secretary Bruce
M. Kolbe, president, Valley State
Bank, Sioux City.
The reception Friday night,
February 12, will be hosted by the
Sioux City Bankers Association.



President of that group and official
host this year is Leslie H. Olson,
president, Toy National Bank.
Guest speakers will be Donald L.
Raitt, vice president and economist,
Northern Trust Company, and Newt
Hielscher, humorist from Shreve­
port, La. The complete program
Friday, February 12
6:00 Registration desk open —
Marina Inn.
8:00 Social hour and hors
d ’oeuvres courtesy Sioux Ci­
ty Bankers Association.
Saturday, February 13
9:00 Registration — Marina Inn.
Exhibits open.
11:30 Ladies’ Luncheon and style
show — Marina Inn. Bus
service available between
the Hilton Inn and Marina

11:30 D elagates’ Luncheon —
Marina Inn.
Presiding — Howard Logan,
chairman, Group 1.
Report of nominating com­
mittee and election of of­
IB A Activities — Tom C.
Dunlap, president, Iowa
Bankers Association; presi­
dent and chairman, Sout
Story Bank & Trust, Slater.
Remarks — Neil Milner, ex­
ecutive vice president, Iowa
Bankers Association.
Remarks — Thomas H
Huston, Iowa Superinten­
dent of banking.
Speaker — Donald L. Raitt,
p re s id e n t
economist, Northern Trus
Company, Chicago.
Speaker — Newt Hielscher,
humorist, Shreveport, La.
2:30 Adjournment
6:30 Social Hour
7:30 Banquet.
E ntertainm ent — Mearl
Lake Orchestra for your;
lis te n in g and d an cin g

Sioux City Bankers
Association Elects





Iowa Bankers Group 1 Annual Meeting
February 12-13, Sioux City
Visit us in our hospitality room at
The Mates Quarters — Marina Inn
Ed Batchelder
Glen Altfillisch

John Rasmussen
John Kohring

United States Check Book Company
In Nebraska Call 402-345-3162 Out of State Call WATS Line 1-800-228-9246

for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

Leslie H. Olson, president, Toy
National Bank, was elected presi­
dent of the Sioux City Bankers
Association at the annual meeting i
mid-December. He succeeds Richard
C. Taylor, president, First National
The new vice president is Stanley
W. Evans, president, Northwester
National Bank.
Sue F. Packard, correspondent
bank officer at Toy National, was
named secretary-treasurer.

Oelwein Bank to Expand
The First National Bank of Oel­
wein recently announced its pur­
chase of the three-story, Mont­
gomery Ward Building downtown.
Vacant since last September, the
building will be used in the expan­
sion building plans of the First Na­
tional Bank which call for new retai
outlets to be incorporated in this
area. The building program will be
part of the bank’s cooperation with
the Downtown Betterment Corpora­
tion’s planned project for develop­


Let our Vice President of
Investments, Dwaine Stinger,
or Assistant Vice President
Roma Kroll show you how
their experience can help
you get fast action in
handling Federal funds
transactions, money transfers,
security purchases and sales.

Gary Stevenson

Doug Schmidt

Vice President
Correspondent Banking

Assistant Vice President
Correspondent Banking



Choose one of our services or as many as you need:
You get an accurate, efficient system for
obtaining the best availability of your funds to
help increase the profitability of your bank.
You get a full range of loan services including
overline and liquidity loans, assistance with your
ag loans, commercial loans and others.
You get a total program for both Master
Charge and Visa that includes card issuing,
processing, corporate cards, account servicing
and assistance with merchant calls. And you get
the geographic advantages of being closer to
your Bank Card Center.

You get an entire department of Trust professionals
to assist you in meeting your client’s needs.
You get the speed and efficiency of the Banks
of Iowa computers, plus the most successful
EFTS/Instant Access processor in the territory.
You get our guarantee that whether you need a
specific service, or just an idea or two, First
National is always ready to help.

See you at the Group I meeting
in Sioux City February 12 & 13.

First N ational Bank m

Member FDIC • RO. Box 3248, Sioux City, Iowa 51102 • A ‘BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


Osceola Officers Named

Were interested in handling
ag credit needs.

P a u la B ak er and V icky
Baughman have been promoted to
vice presidents, Lyle Persels has
been promoted to cashier, and
Forest T. Lewis has assumed ful]§
responsibility of the downtown of­
fice of Osceola State Bank, Osceola.


t Security Bank, we’re peoL pie with an interest in
your success. People you can
count on for ag lending and all
your correspondent needs.
Our Correspondent
Banking Officers have a special
commitment to agriculture.
And we have our own Security
Agri-Credit Corporation to
help you with increased credit
So, start corresponding
with Security for ag lending,
data processing, overlines and
investments. You’ll discover
we’re people with an interest
in you.






Security Correspondent Bankers
Top to Bottom

Elected in Jefferson

Steve Hatz
Ken Roeder
Wilma Weeks

Roger Rinderknecht, president of
Brenton State Bank of Jefferson,
has announced the election of Carol
Custer as vice president and Bob
Grote as assistant vice president.
Ms. Custer joined the bank in
1977 as marketing director. Mr.
Grote has been with the bank since*
early 1981 in the ag department.

People with
an interest
in you.

Western Iowa’s Largest

7 1 2 /2 7 7 -6 5 5 4


© 1 9 8 0 Security National Bank

for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

Mr. Lewis will remain as ex­
ecutive vice president. Ms. Baker
will service loans and handle ac­
counts. Ms. Baughman, along with
her present duties of executive
secretary, will service accounts and
work in advertising. Mr. Persels will
supervise all accounting and com­
puter operations.
In addition, the downtown office
of Osceola State Bank, located at
205 S. Main, is now a full service

Waukon Promotions Told
Farmers & Merchants Savings
Bank, Waukon, has announced the
promotion of James L. Rathbun
from cashier to assistant vice presi­
dent, Robert N. Erickson from assis­
tant cashier to cashier and Nancy J.
Burg to assistant cashier.


Iowa Bankers Insurance and Services, Inc.,

Is proud to announce a

renewal credit on
Directors and Officers
Liability Insurance.
Effective December 1,
1981, those banks partici­
pating in the IBIS D & O
insurance program
will receive 14%•4- renewal
premium credit when their
policy renews.
These days, with costs
escalating, it’s refreshing to
find a way to contain costs.
IBIS has done just that —
through our exclusive
arrangement with
MGIC, the largest provider of

D & O insurance for financial
The fact that nearly
one-half of all Iowa banks have
their D & O insurance with
IBIS/MGIC should tell you
Even larger renewal
premium credits are available
in the future as participation in
the program grows. Be a part
of this growth and take
advantage of the savings.
Call IBIS, 1-800-532-1423.

Iowa Bankers Insurance & Services, Inc.
430 Liberty Building, Des Moines, Iowa 50308 (515) 286-4300
Call our toll FREE WATS number 1-800-532-1432

“The right combination.”
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


Iowa News

ITS Opens Second Retail POS at Hy-Vee

ware and programming to make th ^
system work were developed by late*
summer. The first installation was
completed in Des Moines in Sep­
tember and results to date show the
POS system is getting good reception«
from customers.
Mr. Dooley said the pilot project
is expected to continue through the
first quarter of 1982 and will then be
expanded to any other cities and re»
tail outlets who desire the service. □

Mason City Officer Named
The board of the First National
Bank of Mason
City announced
the recent elec­
tion of Daniel J.
Zitelman as agriADDITIONAL POS units were placed in operation recently in the pilot project conducted in
cultrual loan of­
Des Moines by the Iowa Transfer System to test Point-of-Sale units in retail stores. Shown
above cutting the ribbon for the event at West Des Moines Hy-Vee Food Store are, from left:
Mr. Zitelmen
Dale Dooley, ITS exec, dir.; Mitch Christensen, sr. oper. off., John Sikkink, exec, v.p., and
George Milligan, pres., all three with lowa-Des Moines Natl.; Darrell Vore, Hy-Vee store
began his bank­
mgr.; Jim Schulte, dist. mgr.-financial, and Bruce Hayes, acct. mgr. of Hy-Vee acct., both
ing career in
with NCR Corp.
June, 1980, with
less than the time needed to write a the F irst Na­
x p a n s i o n of its pilot project
to test Point-of-Sale units in check or pay cash and wait for tional Bank of Mason City as an
retail food stores in the Des Moines change. As noted in an earlier story agricultural credit trainee. His train­
area was announced November 30 about the first POS units in Des ing involved bank operations and
by the Iowa Transfer System. The Moines, the merchant’s account also agricultural lending.
new POS units were placed in opera­ is automatically credited for the
tion at West Des Moines Hy-Vee amount of the purchase.
Two Elected to Board
This electronic check writing
Food Store in mid-November as part
Dick Lomen, president of Waukon
of the test program that began in balances all accounts instantly,
Bank, Waukon, recently an<
September. It is believed to be the eliminating float, paperwork and
nounced the election of Jack Duffy
reducing bad check problems.
first of its kind in the nation.
ITS Executive Director Dale and William M. Regan to the board.
The heart of the new system is
Mr. Duffy is area manager in
NCR’s 255-2/8255 cash register Dooley expects the project to catch
for Interstate Power Com­
which performs electronic scanning on in other retail environments. He
Mr. Regan and his family
of customer purchases. To accom­ said, “ I expect high volume stores
pany this newest equipment and to utilize the debit card system
make it possible for customers to before it evolves to restaurants and
pay for their purchases with their hotels. Eventually, I think this Appointed in Fort Dodge
bank debit card carrying the ITS system will be used by all types of
United Central Bank and Trus
logo, NCR has installed a PIN pad retailers. The advantage to con­
and card-swipe unit at each check­ sumers is that electronical financial Co. in Fort Dodge has appointed
out station at Hy-Vee. Instead of service means their transactions are Robert Anderson to a ssistan t
cashier, and as a full-time agri­
writing a check to pay for the going to cost them less.”
His assessment is supported by cultural representative at the bank’s
groceries, the customer may enter
R. Monroney, president of Harcourt office.
his or her personal identification
Mr. Anderson has been employed
number (PIN) on the pad situated the Electronic Funds Transfer Asso­
for complete privacy, then run the ciation, who said in a recent New by the bank in a farm management
debit card through the card swipe. York Times article, “within five to program.
The card does not leave the ten years, setups like this (the ITS
cash register project) in retail stores Joins Burlington Bank
customer’s hands.
Douglas S. Grinde, president of
The debit card transaction is run will be the norm, not the exception.”
After ITS initiated research into Hawkeye Bank and Trust, Burl­
through the in-store processor in the
back room, transmitted to the ITS the feasibility of retail POS debit ington, announced recently that
central switch, routed to the correct card environment earlier this year, Russ Larson has joined the bank as<
bank where the customer’s checking consultations were held with James assistant manager at the New Lon­
account is immediately debited, and Schulte, NCR Corp’s district man­ don office.
He had previously been vice
a return signal is given to the store ager-financial in the Des Moines
clerk that completes the transac­ district office. Mr. Schulte took the p resid en t-treasu rer of C entral
tion. The entire procedure currently project to NCR headquarters in States Investment Company in Ft.<
is taking about seven seconds, far Dayton where the necessary hard­ Madison.


for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis


W hen You Build
O r R em odel Your Bank,
W h o R eally B enefits?
B*Your Local Excavator

B ^ fo u r Local Lumber Yard

B^ifour Local Concrete Supplier B ^ o u r Local Carpet Store
B*"Your Local Mason

B ^ b u r Local Hardware Store

B ^fo u r Local Electrician

B ^ o u r Local Motels

B^ifour Local Plumber

B ^?bur Local Restaurants

B ^ b u r Local Heating Supplier

B ^ o u r Local Drapery Shops

B**Vour Local Paint Store

B ^ o u r Local Appliance Store

B ^fo u r Local Painter

B ^ fo u r Local Landscaper

B**Vour Local Roofer

B ^ o u r Local Newspaper

B ^ o u r Local Air Conditioning

The Kirk Gross Company uses local contractors and
suppliers w henever possible. But they’re not the only
people w ho benefit.

The whole town benefits. That’s what your operation is all about. That’s what our operation is all about.

4015 Alexandra Drive
Waterloo, Iowa 50704
Phone 319-234-6641
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


Iowa News

Peoples’ Opens West Roads Office

THE new West Roads Office of the Peoples’ Trust & Savings Bank of Indianola recently

held its grand opening. Located west of West Roads Shopping Center on Highway 92, the
new bank office offers a full range of financial services, including three drive-up lanes and
three lobby windows. Kim Tierney, a loan officer at the bank, is manager of the new West
Roads office.

First Bank System Proposal to Buy
Banks of Iowa Hits Snag in Iowa Law
HE OFFER of First Bank
System, Inc. Minneapolis, to
purchase Banks of Iowa, Inc., Des
Moines, probably will be contested
by the State of Iowa unless at­
torneys for FBS can convince state
officials the proposed purchase does
not violate Iowa law.
FBS attorneys, who met in De­
cember with Thomas H. Huston,
Iowa superintendent of banks, and
were told by Mr. Huston that the
transaction “would appear” to
violate Iowa statutes, were sched­
uled to present formal documents to
Mr. Huston in early January to sup­
port their position.
The First Bank System offer was
made December 9 and was reviewed
in detail in the December 14 issue of
the N orthwestern B anker Weekly
Newsletter. It was announced by
Holmes Foster, president of B of I,
and Donald Grangaard, chairman of
FBS. Under terms of that agree­
ment, which runs for 15 years, FBS
will purchase Banks of Iowa and its
subsidiaries “when interstate bank­
ing enables ownership of Iowa banks
by First Bank System. At the pre­
sent time, such sale is not legally
permissible and no legislation is pen­
ding which would permit such sale.”
The proposed agreement calls for
FBS to purchase B of I at a min­
imum price of IV2 times share­
holders’ equity at the end of the
month preceding purchase. That
equity last September 30 was $43.71
per share. The price could be ad­
justed upward to 2lA times share­
holder equity according to a formula
based on earnings performance. It
also provides the possibility of ad­
justing the price at time of acquisi­
tion to an amount which would be
for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

determined by independent ap­
FBS also entered into a separate
agreement to purchase 499,046
shares, or about 21% of B of I
outstanding common shares, from
Ben Schwartz, a director of Banks
Iowa, and his family interests for
IV4 times book value at the end of
the month preceding sale. FBS pro­
poses to consummate that purchase
within the new few months. It is
conditioned upon B of I share­
holders approval for conversion of
the shares purchased from Mr.
Schwartz into non-voting, Class B,
common stock. The dividend on that
stock would be three times the B of I
common dividend rate for the first
three years, 2.75 times such divi­
dend rate for the next two years, and
thereafter the higher of 12% of the
purchase price of FBS’ equity in­
vestment or the common share divi­
dend then being paid. The current B
of I dividend is $1.44 per share.
Based on these figures, FBS pro­
poses to purchase the Schwartz
stock at $54.64 per share, for a total
purchase price of $27,267,873. FBS’
dividend the first three years, based
on the existing $1.44 per share rate,
would be $4.32, which would be
$2,155,878.70 on the 499,046 shares,
and a three-year total of $6,467,636.
At the 2.75 rate for the next two
years, the dividend of $3.96 would
bring $1,976,222.10 per year and a
two-year total of $3,952,444.20. The
guaranteed minimum rate of return
of 12% for the remainder of the
15-year contract (10 years) on the
purchase investment of $27,267,873
would be $3,272,144.70 per year and
a 10 year total of $32,721,447.
The dividends from these three

time frames would total at the end^
of 15 years $43,141,527, a 15-year
gain of $15,873,654 or $1,058,243
per year, giving a yearly return on
the initial purchase of the Schwartz
stock of 3.88%.
The Iowa legislature in 1972
passed a Multi Bank Holding Com­
pany Bill that authorized formation
of such companies in Iowa by Iowa
banks, and grandfathered in the law|
the Northwest Bancorporation of
Minneapolis. It limits holding com­
panies to holding no more than 8%
of the bank deposits in national and
state banks in Iowa. Chapter 524,i
Section 1805 was written after con­
siderable debate over non-domiciled
holding companies, and apparently
was written to permit Banco to con­
tinue to operate as a holding com-1
pany in the state, but preclude fur­
ther entry by non-domiciled holding
companies. Language of the section
says such authorization is not given
“unless such bank holding company
was on January 1, 1971, registered
with the Federal Reserve Board as a
bank holding company, and on that
date owned at least two banks in
this state.”
In addition, that law requires that
any offer to shareholders of a bank
holding company must be extended
to all shareholders for the same price
and all other terms, Mr. Hustom
Mr. Huston said he will be glad to
listen to the presentation by the
FBS attorneys and will make his in­
terpretation based soley on Iowa*
law, with the help of the Attorney
General’s office if that is needed.
Banks of Iowa has 10 banks in as
many Iowa cities, with Merchants.
National Bank of Cedar Rapids as*
the flagship bank. Total assests on
September 30, 1981, were $1.4 bil­
First Bank System, Inc., has 92.
banks and trust companies in Min­
nesota, N orth D akota, South
Dakota, Montana and Wisconsin,
and a trust company in Arizona. It
has several service subsidiaries.
Total assets on September 30, 1981,
were $14.4 billion.

Northwestern Banker, January, 1982

been promoted to executive vice
president. Both have been with
State Bank 20 years and head the
agricultural loan division and com­
mercial loan division, respectively.
Iowa News

Waterloo Changes Announced ment, assisting with estate work
R. Scott Fetner, president of The
National Bank of Waterloo, has an­
nounced the election of Timothy J.
Brodahl to trust
ffice r.
Brodahl joined
the bank in 1981
as administrator
in the trust deartment.
A lso
nounced by Mr.
Fetner was the
recent combinT.J. BRODAHL
th e
marketing and community relations
departments. Lorenzo D. Creighton,
community relations director, will
expand his duties in the field of
mrketing headed by Greg E. Stibal,
marketing director.

and specialize in income tax and ac­
counting services.

Sac City Appointment Told

Russell Spearman, president of
Citizens Savings Bank, recently an­ Board Member Elected
nounced the appointment of Harold
Leon J. Dietzenbach, vice presi­
Glass as manager of the Citizens
& cashier of Citizens Savings
Savings Bank Insurance Agency in
Bank, Hawkeye, was recently
Sac City.
Nine years in the insurance elected to the board. He will com­
business, Mr. Glass completed his plete the unexpired term of R.L.
requirements for his Career Life Donohue of West Union who recent­
Underwriter (CLU) designation this ly resigned.
past year.

Smith to Retire as Chairman

Richard L. Smith, chairman and
chief executive officer of The State
Bank, Fort Dodge, wil take early
retirement in mid-1982.
Mr. Smith, who has been with the
Sibley Appoints Officer
State Bank 11 years, moved to Fort
Leo Carlson, president of the Dodge from the Central National
irst National Bank of Sibley, has Bank, Des Moines. His banking
announced the recent appointment career also includes three years with
of Ronda L. Hollensbe, CPA, as the Jefferson State Bank.
trust officer.
Robert D. Clawson, executive vice
In her new position, Mrs. Hol- president, has been elected as the
ensbe will be responsible for bank’s new president, and Joe D.
establishing an active trust depart­ Lawler, senior vice president has

Elected Vice President
First National Bank of Council
B lu ffs
re c e n tly
nounced the electio n of R ita
Uhlhorn as vice
Mrs. Ulhorn
has been with
the bank for two
years in the cor­
porate services
department and
received her degree from Nebraska

Your Direct Line to Prompt, Personal

Tom Pohlman

N o rth w estern
Ba n k
Of Sioux City
An Affiliate of Northwest Bancorporation

Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982

ROMOTION of the following of­
ficers in the commercial banking
division has been announced by Her­
man C. Kilpper, president and chief
executive officer of Bankers Trust:
Promoted to vice president are
Ronald H. Bishop, Robert V. Bren­
nan, and Bradley L. Burt.
Mr. Bishop joined Bankers Trust
in March, 1980, as assistant vice
president from Morton Grove Bank,
Morton Grove, 111., where he served
as vice president.
Mr. Brennan, who joined Bankers
Trust as assistant vice president in
August, 1979, came from First Na­
tional Bank of Southwestern Mich­
igan, which he served for six years,
and Continental Bank, Chicago.
Mr. Burt, who also moves up from
assistant vice president, joined
Bankers Trust in December, 1974.





for FRASERBanker, January, 1982
Federal Reserve Bank of St. Louis

Prior banking experience includes
two years with First National Bank
of Davenport.
Mr. Kilpper also announced the
promotion of three commercial
banking division personnel to the
position of assistant vice president.
They are Joseph J. Bustin, Steven
G. Jacobs and Douglas E. Kunkle.
Mr. Bustin joined Bankers Trust
in March, 1981, as credit officer,
moving from BancOhio National
Bank, Columbus, where he was loan
officer and manager, credit research
and risk management division.
Mr. Jacobs assumes his new post
following one year as commercial
loan officer and two years as real
estate loan officer. He joined
Bankers Trust as a management
trainee in May, 1977.
Mr. Kunkle has served in various

A new centralized marketing and(
sales division has been formed at
Hawkeye Bancorporation, with re­
sponsibility for developing the sales
and marketing packages for those
financial services which will be<
marketed on a company wide basis.



Stephan L. Jones, vice president
in financial relations, will have the
expanded responsibility for this
division in addition to investor and
financial relations. Mr. Jones has
been with Hawkeye for nine years in
related areas.
Steven B. Barger has joined the
staff as director of marketing. The
newly created position will service
the corporate and subsidiary mar­
keting needs with strong emphasis,
in the areas of sales, training and
advertising support. Mr. Barger has
been with the company since 1978.
* * *



positions with Bankers Trust, most
recently as commercial loan officer.
He has been with the bank since
June, 1973.
Mr. Kilpper also announced two
additions to the bank’s staff.
Named assistant vice president,
commercial banking division, was
Linda H. MacKay. She presently
serves as secretary of the Iowa State
Senate. Prior banking experience in-i
eludes seven years with Merchants
National Bank & Trust Company,
Indianapolis, where she was lending
officer in the U.S. corporate divi­
Appointed assistant auditor was
Christine R. Rice. She joins the bank
following four and a half years with
Peat, Marwick, Mitchell & Com­
pany, where she was auditor in<
charge of audits in finance, in­
surance and government.
* * *


Christine L. Sands, 73, died of
cancer recently at a Sun City, Ariz.
hospital. Her husband, Neal Sands,
was president of Valley National
Bank of Des Moines from 1960 to,
1972 and was a director until 1977,



From Minnesota farmer to United
Central Bank Correspondent Banker;
Larry’s fifteen years of experience in
banks ranging in size from $5 million
to $400 million gives him special
insight into your needs.
Larry understands that as your bank
grows and changes, you’ll need special
services and counsel on how to deal
with rapidly changing technology

and regulations.
We’d like you to get acquainted
with Larry Bergemann. Call him, or
any other United Central Bank Corre­
spondent Banker at 1-800-362-1615,
and let them help you with the
services you’ll need. Lending...Cash
Management... Investments... Farm
...TYust...Data Processing. We think
you’ll like the benefits.


DES MOINES. N A ■ (515) 245-7111 ■ MEMBER FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982

Iowa News
at which time they moved to Litch­ management of Iowa corporate
field Park, Ariz. Mrs. Sands was a business.
native of Bloomfield, la.
Bernard H. Kersey has been
named vice president and manager
-financial institutions. Included in
Eugene G. Precht, chief executive his responsibilities will be relation­
officer of the Iowa-Des Moines Na­ ships with all Iowa financial institu­
tional Bank, recently announced the tions.
following promotions:
R. Jack Lytle, named vice presi­
John L. Bailey, named national dent and manager - metropolitan
officer, joined
banking, will be responsible for the
th e Iow a-D es ;
small business banking department
Moines in May
-I as well as the metropolitan commer­
n a tio n a l HP
cial lending department.
banking repre- ' I p ^
Walter W. Pimot has been named
se n ta tiv e and
senior vice president - domestic
was most recent­
banking and will be responsible for
ly with United
jlg p
the management of the national ac­
T ic ‘
counts, financial institutions and
Frank J. Kopmetropolitan banking departments.
pold has been
Pierre J. Herzdorfer has joined
named second
the bank as vice president and
manager of international banking.
He was most recently a vice presi­
dent in the international division of
Union Commerce Bank, Cleveland,

GAN Vie, Compagnie Française
d ’Assurances sur la Vie (“GAN
Vie’’), a wholly-owned subsidiary of
GAN which is a French stock in­
surance group, and Hawkeye Bancorporation announced plans
December 21 to make a cash tender
offer for all of the stock of Hawkeye
National Life Insurance Company, a
Des Moines based company. The an­
nounced tender price is $11.56 per
share for the 506,154 Hawkeye Na­
tional shares outstanding, or a total
purchase price of approximately
$5,851,140. The tender offer is ex­
pected to be the first step in the
development of an ongoing relation­
ship between GAN Vie and Hawkeye Bancorporation.
GAN Vie, which will be acquiring
95.1% of Hawkeye National shares
tendered, has assets in excess of
$2.2 billion. The GAN group is
engaged in insurance operations in
Europe, the United States and a
vice president and manager, collec­ number of other countries and has
tions. He joined the bank in 1969 as assets in excess of $4.4 billion. The
co llectio n s s u p e rv iso r-M a ste r acquisition of Hawkeye National
Charge and was named collections will be GAN’s first step in develop­
officer and manager in 1979.
ing a life insurance enterprise in the
J. Lanier Little, named vice presi­ U.S.
Hawkeye Bancorporation, which
dent and manager - regional and na­
tional banking, will be responsible will be acquiring 4.9% of Hawkeye
for the management of what was National shares tendered, is a Des
previously the national accounts Moines based multibank holding
department in addition to the company which owns and operates
 Banker, January, 1982
Federal Reserve Bank of St. Louis

28 Iowa banks and is engaged in a
number of banking related financii®
activities. Hawkeye Bancorporation
and its subsidiaries have combined
assets in excess of $1.3 billion.,
J. Lock Macomber, president of
Valley National Bank, has an­
nounced the election of James A
Bishop as vice president in tl^j
operations division, and Mark
Kempkes as assistant vice presi­
dent, loan administration.



Mr. Bishop was previously vice]
president and cashier at Capital City |
State Bank.
Mr. Kempkes was employed by |
Kensington Mortgage and Finance
Company in Texas and Georgia]
before coming to Valley Bank.

New Auditor Named
Carole A. Story recently joined j
the Central State Bank, Muscatine,
as auditor, announced John B.
Rigler, president.
Ms. Story has had nearly fiv^
years experience at the First Securi-1
ty Bank and Trust Co. in Charles Ci­
ty, and most recently was senior !
auditor with United Central Banc-|
shares Inc., Des Moines.

Sioux City Officer Awarded
Farm Manager Title
Dick L. Coffman, assistant vie?
president of First National Bank ini
Sioux City, was awarded the title ofl
Accredited Farm Manager by the!
American Society of Farm ManJ
agers and Rural Appraisers at their
recent annual meeting in Louisville,|
This highly regarded title is given|
only to Society members, who have
demonstrated expert knowledge;]
competency and high ethical stand­
ards in professional farm manage-1
ment. Mr. Coffman joined First Na-|
tional’s farm and ranch manage
ment department in 1975.

PARTICIPANTS in the 1982 Iowa Business Trends Conference were, from left to right:
eated —Helen J. McLane, v.p., Heidrick & Struggles, Inc., Chicago; Eugene G. Precht,
chmn. & ceo, lowa-Des Moines National Bank, and Richard E. Rice, corp. v.p., Syntex Corp.,
Des Moines. Standing—Jon H. Kneen, chmn., Iowa Mfrs. Assn., Ottumwa; Kenneth A.
Macke, pres., Dayton Hudson Corp., Minneapolis; Jude Wanniski, pres., Polyconomics,
Inc., and George F. Milligan, pres., lowa-Des Moines National Bank.

t Iowa Business Trends conference —

Business Speakers Cautious About 1982
Editor and Publisher
NOTHER record crowd exceed­
ing 650 businessm en and
attended the 23rd Annual
owa Business Trends conference
osted last month in Des Moines by
he lowa-Des Moines National
ank. The morning program feaured four business executives of
ompanies having a direct interest
n Iowa and the noon luncheon
eatured a political economist.
Eugene G. Precht, chairman and
ief executive officer of the Iowaes Moines National Bank welomed the overflow crowd. Commening briefly on the great volume of
ajor construction that is underway
nd has taken place in downtown
es Moines, Mr. Precht said, “It is
vident there is a major commitent to the community by Des
oines business firms.
The host bank president, George
. Milligan, referred to changes takng place in the economy and in
anking, and stated, “We feel the
hoice is clear...guarding the status
uo or managing change. We, as
art of the Iowa business communiy, have elected to manage change.
Te will continue to be aggressive,
nd th a t’s a promise!’’
Jude Wanniski, president of
olyconomics, Inc., and a financial
Federal Reserve Bank of St. Louis

advisor to President Reagan during
the 1980 presidential campaign, ad­
vocated at the noon luncheon ser­
ious consideration for returning to
the gold standard, at least on a par­
tial basis. As the man who coined
the term “supply-side economics,’’
Mr. Wanniski took Budget Director
David Stockman to task for “chang­
ing his approach once he became Di­
rector of the OBM; for example, pro­
claiming in an article last March
that he’s a budget cutter first and a
tax-cutter second.’’ Referring to Mr.
Stockman’s latest embarrassing
episode of taping for a Washington
newspaper reporter his comments
critical of Reagans’s policies, Mr.
Wanniski said, “I t ’s the first time
we’ve been trickled on by a Trojan
Mr. Wannaski traced a historical
perspective that set the stage for his
preference for the gold standard. He
referred to the 1969 statement by a
Canadian economist that moving
from the gold standard to floating
currencies world-wide would create
inflation that would be out of con­
trol by 1980.’’ He says that “since
the government produces the cur­
rency it shouldn’t ask us to take the
risk. When we were on the gold stan­
dard and people bought government
bonds, they had a guaranty that
they would be repaid full value in
dollars backed by gold.’’

Iowa News
He labeled as a failure the at­
tem pt by Treasury Secretary
Donald Regan to blend supply-side
theorists with m onetarist be­
lievers, for they pulled in two dif­
ferent ways — one trying to bring
growth, the other trying to wring
out inflation with a recession. He
blames the Fed because it “doesn’t
know any better today than it did 10
years ago what the money supply guesses at the money supply.
If it’s up three points one day and
down three points another day, then
on average it did right, but it’s bad
news for retailers who lose both
“With gold,’’ he stated, “you are
given the signals daily and eventual­
ly you wind up with true interest
rates based on risk alone...Stockman
joined the monetarists and Volcker
that the best way to stop inflation is
to keep people from borrowing to
have a recession. We are punishing
ourselves unnecessarily by a policy
that started a decade ago and was
doomed to failure from the outset.’’
Mr. Wanniski said Iowa Senator
Roger Jepsen and Rep. Neal Smith
are interested in the gold approach.
Beryl Sprinkel, Undersecretary for
Monetary Affairs at the Treasury,
“got the committee appointed and it
was stacked with about 13 anti-gold
men out of 15 on the committee.’’
“All it takes is a call from the
President to the Secretary of the
Treasury to reestablish the gold
standard,’’ Mr. Wanniski main­
tained. “President Nixon cancelled
it in 1971. President Reagan can
reverse it...The 1980s depend on
policy and I think it will result in
dancing in the streets.’’
“Agriculture” in 1982 will have
“good news and bad news,” accord­
ing to Richard E. Rice, corporate
vice president for Syntex Corp., Des
Moines. The bad news, of course,
revolves around low market prices,
“that are not expected to rise
significantly on the immediate
horizon,” increased taxes based on
increased land values, high interest
rates, high input costs and reduced
“farm buying power.”
The good news, he stated, is that
crops are huge, farm land is pre­
dicted to go up further in price, ad­
vances are being made in technology
of animal health as well as in
agriculture itself. He said the $200
million that will be spent on animal
health research this year will be “a
tremendous investment for the
Northwestern Banker, January, 1982

Iowa News
future.” Mr. Rice also spoke about
the positive potential in genetic
engineering, both for animals and
“Personnel Management” was
addressed by Helen J. McLane, vice
president of Heidrick & Struggles,
Inc., Chicago, specialists in ex­
ecutive search. “Effective human
resource management is essential
for survival,” she told the audience
of business managers. “Money is no
longer the motivator, even increas­
ingly at the executive level. More
and more bright, talented, welleducated people are saying ‘No!’ to
power, prestige and pay if it means a
transfer, longer hours or any other
threat to their personal lifestyle.
Nobody outside the recruiting field
today would believe how difficult it
has become to identify and attract
qualified candidates for $50,000,
$100,000 or even higher positions.”
She said workers want more feed
back from management on its goals,
how to get there, what they are ex­
pected to do to achieve it. They want
a chance to be heard by manage­
ment. They want a humanized work
environment that preserves in­
dividual dignity and initiative.
“Maunufacturing” was the title
for Jon H. Kneen, chairman of the
Iowa Manufacturers Association,
Ottumwa. He said, “The average
plant and equipment in Iowa is in
excess of 20 years old. Compare that
to an average of 12 years in Ger­
many and six years in Japan. This
points up the fact that prospects for
capital equipment purchases by
Iowa manufacturers should be a
reality in the foreseeable future if
economic conditions improve and we
are able to provide a favorable
climate (with tax incentives) in Iowa
for companies to update equipment,
expand facilities, or bring new
manufacturers to our state.”
Mr. Kneen sees a 1982 pickup in
sales after the first quarter, with
“back to normal production” by
year-end. The years following 1982
will be “growing years for us.”
Segments of manufacturing related
to farming will be “slow during all of
1982 and show improvement in
“Retailing” was covered by Ken­
neth A. Macke, president of the
Dayton Hudson Corporation, Min­
neapolis. Pointing to low auto sales,
home sales and reduced farm in­
come, Mr. Macke said, “With condi­
 Banker, January, 1982
Federal Reserve Bank of St. Louis

tions like these, it is hard for
retailers to expect strong sales gains
in 1982. But the news isn’t all bad.
The second income tax cut, sched­
uled for July, should put more spen­
dable dollars back into our
customers’ pockets.
He pointed out how social and
life-style changes — such as two in­
come families — are affecting retail
store operating and sales methods.
With this he listed the continued
emphasis on value, less customer
loyalty, and continuing advances in

Iow a a g ric u ltu ra lly re la te
businesses, including the Harla
National Bank of Harlan, Iowa, and
the First National Bank of Missouri
Valley, Iowa.

To Join Knoxville Bank

Dean Hicks, senior vice president
of Brenton State Bank of Jefferson,
has submitted his resignation, effec­
tive February 1, to become e
ecutive vice president and managing
officer of Community National Bank
& Trust Company of Knoxville. The
Knoxville bank is the 18th and
latest acquisition of Brenton Bank.
Sioux City Promotions Told
Mr. Hicks, associated with Bren­
William F. Kabourek has been
promoted to senior vice president in ton State Bank since 1974, was
charge of lending administration elected vice president of the_
and loan policy and Stephan J. Hatz agricultural department in 1975,
has been named department head of named senior vice president in 1980,
the correspondent banking division, and elected to the bank’s board of
according to Gene Hagen, president directors a year ago.
of Security National Bank, Sioux Ci­
tyElected to Board
John S. Zdychnec, president and
chief executive officer of the First
National Bank of Ottumwa, recently^
announced the election of Judy A.
Blommer as a member of the board.

Wellman President Named
Daniel H. Doyle has recently bee
named president and Roger Borup
advanced from senior vice president
Along with his new duties, Mr. to executive vice president at
Kabourek, who joined the bank in Wellman Savings Bank, Wellman.
1977, will continue to head the com­ Stanley R. Barber, president of th
mercial banking division. He also bank for 25 years, remains as chair­
serves on the board of directors of man.
Mr. Doyle, who earned an MBA in
the Iowa Business Development
finance and banking in 1977, was
Credit Corporation.
Prior to assuming his new respon­ previously a commercial loan office
sibilities, Mr. Hatz was vice presi­ with the First National Bank in St.
dent in the correspondent banking Louis.
division. He has also served as an of­
ficer in personal banking, operations Named to Perry Position
and as a senior correspondent bank­
Gregory D. Peck been named
ing officer.
assistant vice president and branch
manager for the Federal Land Bank
of Perry, where he will supervise the
Thurman Bank Sold
association’s lending operations i
William J. Grotenhuis and James Dallas and Guthrie counties.
W. Grotenhuis have announced the
Mr. Peck previously served as a
sale of the Thurman State Bank, loan officer with the Federal Land
Thurman, to an investment group Bank Association in Carroll.
headed by Mike L. Keim, of Omaha.
According to Mr. Keim, no staff
changes are planned, and the bank Elected to Board
Dudley Priester, president of
will continue to serve Thurman and
Priester Construction Co., has been
the surrounding community.
Mr. Keim has been an officer and elected to the board of the Nortl
director of several Nebraska and west Bank & Trust Co., Davenport.

Iowa News


Over 700 Attend Success Seminar
held at the Conway Civic
Renter, and attended by over 700
eople was sponsored by the
Waterloo Savings Bank, Waterloo.
J e s s ic a S a v itc h , NBC Corrspondent/anchor was the featured
peaker for the evening.
The seminar began with three
separate workshops conducted by:
M a rg a re t A n d e rse n B u k a tz ,
econom ic adisor to Gover.: ¡
or Robert Ray,
who presented
‘Investment in
th e
’8 0 ’s ” ;
iaren J. Kiloren,
underwriter for
New York Life
Insurance, who
iscussed “Risk
Management,” and Kathy Fisher,
director of human resources for
Iowa Bankers Association, who pre­
sented “Your Greatest Asset.”
Seminar participants then lis­
tened to Jessica Savitch discuss “In

Pursuit of Excellence,” a sharing of
ideas on what excellence means to
Organizers for the seminar, Anita
Ward, auditor; Deon Senchina, con­
sumer loan officer; Diane C. Kupferschmidt, personnel director, and
Betty M. Runyan, assistant cashier,
developed plans for the seminar
after Dale DeKoster, president,
issued a public relations challenge to
reach to women of the community.
Although some of the promotion
for the seminar was aimed at
women, the seminar was meant for
professionals of either sex.
“ I t’s what anybody would do to



Jessica Savitch shares what excellence

means to her.

be s u c c e s s fu l,” s ta te d M r.
DeKoster, who added he hoped it
would be an annual event.

Ames Bank Notes Changes
First National Bank, Ames,
recently announced the promotion
of John Tillo, Kent Fidlar and Scott
Leland to assistant cashier.
Mr. Tillo will be working in the
operations area and Mr. Fidlar in
the loan and savings area. Mr. Le­
land is presently manager of the
North Grand office.
Mary Freed, assistant cashier,
has recently retired from First Na­
tional Bank.

Acquisition Announced

Committed to
making your
bank stand
apart from the

The Federal Reserve Board has
recently approved the formation of
Kellonto Bankshares Corporation,
Elgin, which has acquired 85% of
the outstanding shares of the Elgin
State Bank.

Hawkeye Plans to Acquire
Ankeny National Bank
Majority shareholders of Ankeny
National Bank, Ankeny, and Hawkeye Bancorportion, Des Moines,
have reached an agreement whereby
the bank will be acquired by
Hawkeye Bancorporation according
to a joint announcement by Duane
Spicer, president of the bank and
Paul Dunlap, president of Hawkeye.
Terms of the proposed cash acquisi­
tion is subject to Federal Reserve
approval. Ankeny National Bank
with assets of $24 million will
become the 29th affiliate bank of
Hawkeye Bancorporation.

Board Member Named
Keith A. Roeper, executive vice
president of Security National
Bank, Sioux City, has been elected
to the board. He has been with the
bank since 1974 and elected to the
board of the Security National Corp.
in 1980.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1982


Upper Midwest Bankers Attend RMA Conference

AMONG the more than 2,000 people attending the 67th Annual Fall Conference of the Robert Morris Associates in New Orleans recently

were these four groups from upper midwest states. RMA is the national association of bank loan and credit officers. Left to right in each
photo are: UPPER LEFT— Chicago Chapter officers and spouses. Pres, and Mrs. Vincent C. Yager, pres., 1st Natl., Blue Island; 1st V.P.
and Mrs. John A. Greathouse, adm. v.p., Amalgamated T&S; 2nd V.P. F. Dean Long, 2nd v.p., Northern Trust, and Treas. and Mrs. Jon H.
Laubscher, v.p., Harris Bank, all of Chicago. Joining them was Central Illinois Group Chmn. Sally B. Robinson (far right), credit off., Springs
field Marine Bank. UPPER RIGHT— Two Siouxland Group officers. Chmn. and Mrs. Robert W. Krumwiede, v.p., Security Natl., Sioux City,
la., and Vice Chmn. and Mrs. Truman Phelan, Northwestern Natl., Sioux Falls, S.D.
LOWER LEFT— Missouri Valley Chapter members. Pres, and Mrs. Robert A. Morris, sr. v.p., Overland Natl., Grand Island, Nebr.; 1st V.P.
and Mrs. Bradley L. Burt, a.v.p. Bankers Trust, Des Moines; Kansas City Gp. Vice Chmn. and Mrs. John A. Taylor, sr. v.p., Commercial Natl.,
Kansas City, Kan.; Midlands Gp. Chmn. and Mrs. William H. Keeffe, v.p., American Natl., Omaha; Central Kansas Gp. Vice Chmn. and Mrs.
James L. Wooldridge, sr. v.p., 1st Natl., Wichita, and RMA natl. bd. member Robert B. Priest, sr. v.p., Merchants Natl., Topeka, and guests
Karen Dougan. LOWER RIGHT— Minnesota Chapter members. Chapter Pres, and Mrs. John J. Olson, pres., Banco Financial Corp., Min­
neapolis; Immed. Past Chapter Pres, and Mrs. David M. Hyduke, sr. v.p., American Natl. B&T, St. Paul, and Chapter bd. member and Mrs.
Bernhard Loewen, sr. v.p., Citizens State, St. Louis Park.

District Director Named
J. Harold Sears has been named
district director
of the Cedar
Rapids district
office of the
Small Business
Mr. Sears was
employed from
1972-1980 as the
district director
of SBA and
since 1980 as district director of the
Lower Rio Grande office in Harl­
ingen, Texas.

Appointed as Officer
David Thielke has been appointed
commercial loan officer of North­
west Bank & Trust Co., Davenport.
He is a former bank examiner for the
for FRASER Banker, January, 1982
Federal Reserve Bank of St. Louis

Federal Deposit Insurance Corp.

Manly Officer Named
John Gallegher has recently
joined First State Bank, Manly, as
loan officer. He has served in bank­
ing since 1977, moving to Manly
from Ackley State Bank.

Banco Financial/Lease N orthw est.....................................11
Bankers Tr. Co., Des M oines...............................................62
Barclays American/Business C redit................................ 12
CADO Systems Corp........................................................
Centerre Bank, St. Louis.....................................................34
Central Bank of Denver...................................................54-Í
Continental Bank, Chicago................................................
Drovers Bank of Chicago..................................................... 79
Essex Inn, Chicago..............................................................10

Nat'l Bk., Lin co ln ....................................................
Nat’l Bk., M inneapolis........................................... 40-41
Nat’l Bk., Om aha..........................................................59
Nat'l Bk., St. Paul...................................................48-4
Nat’l Bk., Sioux C ity ...................................................6

New Trust Officer Named

Gross, Kirk Co., W aterloo................................................... 69

Bryant Goodall, has been ap­
pointed trust department officer at
First National Bank of Moline.

Heller, Walter E................................................................
Iowa Bankers Insurance & Services..............................
lowa-Des Moines Nat’l Bk..............................................
Kooker, E.F. & A ssociates................................................... 70
Merchants Nat’l Bk., Cedar R apids..................................... 2
Midland Nat'l Bk., M inneapolis......................................... 43

January, 1982
Acorn P rinting......................................................................15
American Express, Travelers Cheques............................... 3
American Nat’l Bk. & Tr. Co., St. Paul..............................45
Associates Com m ercial....................................................... 5

National Bank of Commerce, Lincoln............................... 56
Northwestern Nat'l Bk., M inneapolis............................
Northwestern Nat'l Bk., Sioux C ity ................................... 71
Office Concepts, W aterloo................................................. 77
St. Louis Terminal Warehouse........................................... 37
Security Nat’l Bk., Sioux C ity ............................................. 66
Travelers Express Co........................................................... 16
United Central Bank of Des M oines..............................
U.S. Check Book Co., Om aha............................................. 64
Van Wagenen, G.D., M inneapolis....................................... 14

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