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The most
facing banks
in 1 9 8 3 !
Exclusive survey



•The new AIB

L ¿
Federal Reserve Bank of St. Louis



• Recovery from disaster

____ ________ ___________ ____ _________ _________ —- — —

"A t MNB we will respond quickly and
accurately to your needs for overlines
and liquidity loans. Because we
realize the way these transactions are
handled can have a critical impact on
operational procedures and your ability
to serve customers.
"O u r first priority is to provide
superior customer service. To be a
partner in helping meet challenges
and goals. We begin by developing an
in-depth knowledge of each individ­
ual correspondent bank's objectives.
Then, we provide our expertise and a
wide range of services to help attain

these goals with profitable results.
"By consistently delivering a high
level of performance and generating
fresh new approaches to fulfilling
needs, we are able to build confidence
and that special bond of trust that
comes from working and succeeding
Learn more about how MNB can
work for you. Call 319/398-4320 or toll
free, 1-800-332-5991 and talk to Terry
or any of our other MNB
Correspondent Bankers: John E.
Mangold, Stan R. Farmer or Jerry N.

Merchants National Bank m

Cedar Rapids, Iowa 52401

Member F.D.I.C.
Federal Reserve Bank of St. Louis


We're blow ing our
cover on w ire transfers
All banks transfer m oney.
B u t n ob ody talks about it. It’s one of
those quiet, ignored sort of services.
W e think it’s time w ire transfer got
the lim elight it deserves.
E a ch year w e transfer u p ­
w ards of 10 trillion dollars. So w ire
transfer is certainly important to us.
A n d it’s important to you, too.
D elayed transfers m ean delays in
you r investm ents.
Fast is w hat you want. A n d
w ith us, y o u ’ll get it. W e can m ake
transfers at supersonic speed. You
m ay call it m agic. W e ju st call it
progress. B u t actually it’s called
electronic transfers.
N ot only are they faster,
th ey’re m ore conven ient. Instead of
spending hours on the ph on e each
day, y ou can authorize transfers in
advance. T h e y ’ll be handled auto­
matically. E lectron ic transfers can
m inim ize your aggravation
w hile m axim izin g your
; efficiency.
W h eth er you ch oose
the electronic m ode of trans­
fer or the traditional p h on e
or mail, you can be sure w e ’re
over-cautious about errors,
absolute sticklers about
“ ' security.
n Call R obert C. V asko at
(312) 828-4046. A n d ask about w ire
transfer. W e m ay not w ear trenchcoats or carry cryptic decoders, but
w e excel at this secret service.

C on tin en tal Illinois N ational B an k and Trust C om p a n y of
C h ica g o, 231 S outh LaSalle Street, C h ica g o, Illinois 60693
A tlanta • C h ica g o • C lev ela n d • Dallas • D e n v e r • Detroit
H ou ston • Los A n g e le s • M in n eap olis • N e w York
San F ra n cis co • Seattle • W hite P lains.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983


Roger Anderson Named to
Federal Advisory Council

JANUARY 1983 • 90th Year • No. 1432



Challenges facing banks

City correspondent bankers assess 1983

Roger E. Anderson, chairman of
the board of Continental Illinois
National Bank
and Trust Com­
pany of Chicago
and Continental
Illinois Corpora­
tion, has been
elected to the
Federal Reserve
S y ste m ’ s F e d ­
era l A d v is o r y
Mr. Anderson,
who has been with Continental since
1946, also serves on the U.S. Trea­
sury Department’s Federal Advisory
Committee on the InternationalMonetary System and is currently*
president of the Association of Re­
serve City Bankers. Among his
other activities, he is a director of
Amsted Industries, S.C. Johnson &Sons, and Eastman Kodak Company.


Three Re-elected to
Chicago Fed Board


Charles M. Bliss, chairman of the
board and chief executive officer of
Harris Trust and Savings Bank of
Chicago and Harris Bankcorp, Inc.,
Patrick E. McNarny, president and
chief executive officer of the First
National Bank of Logansport, Ind.,
and Mary Garst, manager of the
cattle division of The Garst Com­
pany, Coon Rapids, la., have been
re-elected to the board of directors
of the Federal Reserve Bank of
Mr. Bliss and Mr. McNarny have
been elected as Class A or banker
directors by member commercial
banks within the Federal Reserve
District. Mr. Bliss was elected to
represent large banks and Mr.
McNarny to represent the medium­
sized banks of the Seventh District,
which spans most of the five state
area of Illinois, Indiana, Iowa,
Michigan and Wisconsin.
Mrs. Garst serves as one of the
Reserve Bank’s three Class B direc­
tors — nonbankers elected by Dis­
trict member banks to represent a
variety of interests, including agri­
culture, commerce, industry, ser­
vices, labor, and consumers. Mrs.
Garst also serves as a director of
International Harvester Company,
B urlington N orthern Inc., and
Northwestern Bell Telephone.

The new AIB

Interview with Region V Vice President Bill Greaves


Recovery from disaster

How Northwestern National, Minneapolis, rebounded


Bank Promotions
Corporate News
Twin Cities
South Dakota
North Dakota


Des Moines
Index of Advertisers

306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


Ben H aller, Jr.

Steve Burch

Becky M cBurney

M alcolm K. Freeland

No. 1432 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTM ASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.

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




Convention Calendar
0 A B A — American Bankers Association
AIB— American Institute of Banking
BAI— Bank Administration Institute
BMA— Bank Marketing Association
IBAA— Independent Bankers Association
of America
0 N A B W — National Association of Bank
Women, Inc.
RMA— Robert Morris Associates

National Conventions & Schools
Jan. 23-26— ABA National Trust Conference,
w Atlanta Hilton, Atlanta, Ga.
Jan. 31-Feb.1 — RMA Term Lending Work­
shop, Galleria, Houston.
Feb. 6-9— ABA National Compliance Con­
ference, Omni International, Atlanta, Ga.
Feb. 6-9— ABA Telecommunications and
Financial Networks Workshop, Hyatt
Orlando, Kissimmee, Fla.
Feb. 6-18— ABA National School of Retail
Banking, University of Oklahoma, Nor­
man, Okla.
Feb. 7— RMA Customer Profitability Anal#
ysis Workshop, Grand Hotel, Houston.
Feb. 8-11— ABA N ational Insurance
and Protection Conference of Financial
Institutions, Sheraton Twin Towers,
Orlando, Fla.
Feb. 13-16— ABA Conference for Branch Ad#
ministrators, Fairmont Hotel, Denver,
Feb. 20-23— BAI Annual Conference on
Bank Security, New Orleans, La.
Feb. 20-24— BAI Bank Auditor’s Confer­
ence, St. Francis Hotel, San Francisco.
# F e b . 22-25— ABA Bank Investments Con­
ference, Hyatt Regency, Dallas, Tex.
Feb. 27-Mar. 2— BAI Conference on Bank
Security, Fairmont Hotel, New Orleans.
Feb. 27-Mar.2— BMA Electronic Banking
Conference, Four Seasons Hotel.
Feb. 27-Mar.2— BMA Community Bank
CEO Seminar, M arriott’s Mountain
Shadows, Scottsdale, Ariz.
Feb. 27-Mar.2— ABA Bankers Education
and Training Forum, Fairmont Hotel,
Mar. 2-5— ABA Corporate/Commercial
Marketing Conference, Capital Hilton,
Washington, D.C.
Mar. 6-9— ABA Community Banks Execu­
tive Conference, Fairmont Hotel, New
Mar. 7— RMA Loan Review Seminar, Jack­
sonville Hilton, Jacksonville, Fla.
Mar. 7-11 — RMA Uniform Credit Analysis
Seminar, Xerox International Center for
Training & Development, Leesburg, Va.
QMar. 13-15— ABA National Credit & Cor­
respondent Banking Conference, Fair­
mont, New Orleans.
Mar. 14-16— RMA Asset-Based Lending
Workshop, Atlanta Hilton & Towers,
0 M a r. 23-26— ABA Mid Sized Bank CEO
Seminar, Marriott’s Rancho Las Palmas,
Mar. 23-27— IBAA 53rd Annual Convention,
Town and Country Hotel, San Diego,
^ M a r. 27-30— BMA Advertising Conference,
Hyatt Regency Chicago.
Federal Reserve Bank of St. Louis

Apr. 5-7— ABA International Banking Sym­
posium, Hyatt Regency Chicago.
Apr. 5-8— BAI Check Processing Confer­
ence, Marriott Hotel, Chicago.
Apr. 10-13— IBAA 21st Seminar/Workshop
on the One-Bank Holding Company,
Alameda Plaza Hotel, Kansas City, Mo.
Apr. 10-13— ABA National Retail Banking
Conference, Hyatt Regency Atlanta, Ga.
Apr. 14-17— AIB Regional Leaders Work­
shop, Omaha, Nebr.
Apr. 17-27— ABA National Commercial Lend­
ing School, University of Oklahoma, Nor­
man, Okla.
Apr. 18-20— IBAA Commodity Marketing
Seminar, Chicago, III.
Apr. 24-27— BMA Research and Planning
Conference, Hyatt Regency Crystal City,
Washington, D.C.
Apr. 28-May1— AIB Regional Leaders Work­
shop, Salt Lake City, Utah.
May 3-6— BAI Accounting and Finance Con­
ference, Amfac Hotel, Dallas.
May 8-10— Conference of State Bank
Supervisors, Annual Convention, The
Broadmoor, Colorado Springs, Colo.
May 8-11— Association of Reserve City
Bankers, Annual Meeting, Boca Raton
Hotel, Boca Raton, Fla.
May 8-13— ABA National Commercial Lend­
ing Graduate School, University of
Oklahoma, Norman, Okla.
May 15-18— BAI Tax Conference, Hyatt Re­
gency Hotel, Orlando.
May 22-25— ABA National Operations and
Automation Conference, Miami Beach
Convention Center, Miami Beach, Fla.
May 22-27— BMA School of Trust Sales and
Marketing, and Essentials of Bank
Marketing School, University of Col­
orado, Boulder, Colo.
May 22-June 3— BMA School of Bank Mar­
keting, University of Colorado, Boulder,
May 28-June 2— ABA National AIB Leaders
Conference, Sheraton Washington, Wash­
ington, D.C.
June 5-8— BAI Strategic Planning, Four
Seasons Hotel, Houston.
June 5-17— ABA Stonier Graduate School
of Banking, Rutgers University, New
Brunswick, N.J.
June 9-11— Association of Bank Holding
Companies, Annual Meeting, Opryland
Hotel, Nashville, Tenn.
July 11-12— IBAA Spread Analysis and Asset/LiabiIity Management Workshop,
Hyatt Regency Minneapolis on Nicollet
Mall, Minneapolis.
July 13-16— Central States Conference,
Jackson Lake Lodge, Wyo.
Aug. 8-9— IBAA Spread Analysis and Asset/Liabi Iity Management Workshop,
Caesar’s Tahoe, Lake Tahoe, Nevada.
Sept. 11-14— ABA National Personnel Con­
ference, Hyatt Regency, Phoenix, Ariz.
Sept. 12-14— IBAA Commodity Marketing
Seminar, Chicago, III.
Sept. 13-16— BMA National Corporate
Marketing Conference, Westin Alpine
Resort, Vail, Colorado.
Sept. 14-16— ABA Senior Operations Sem­
inar, Marriott’s Marco Beach, Marco Is­
land, Fla.

Sept. 18-21 — NABW Annual Convention,
Hyatt Regency, Dallas, Tex.
Sept. 18-21 — BAI National Convention, Fair­
mont Hotel, San Francisco.
Sept. 18-23— RMA Loan Management Sem­
inar, The Ohio State University, Colum­
Sept. 18-30— ABA National School of Retail
Banking, University of Oklahoma,
Norman, Okla.
Sept. 20-23— ABA National Bank Card Con­
vention, Bonaventure, Los Angeles, Calif.
Oct. 8-12— ABA Annual ABA Convention,
Honolulu, Hawaii.
Oct. 23-25— ABA International Banking
Conference, Grand Hyatt New York.
Oct. 23-26— BMA 68th Annual Convention,
Atlanta Hilton, Atlanta, Ga.
Nov. 2-4— ABA Chief Financial Officer
Seminar, Hyatt on Hilton Head, Hilton
Head Island, S.C.
Nov. 2-5— IBAA 23rd Seminar on the OneBank Holding Company, Marriott’s Hilton
Head Resort, Hilton Head Island, S.C.
Nov. 13-16— ABA National Agricultural
Bankers Conference, Bonaventure, Los
Angeles, Calif.
Nov. 13-17— BMA Trust Marketing Con­
ference, Fairmont Hotel, Dallas, Tex.

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

Jan. 24-27— AMBI Washington Trip, Wash­
ington, D.C.
Feb. 23-24— IBA Marketing Conference,
Marriott Pavillion Hotel, St. Louis.
April 5-6— IBA Commercial Credit Confer­
ence, Ramada Inn, Champaign.
Apr. 19-21 — IBA Estate Planning Seminars,
Mount Vernon, III.
May 4-5— IBA Consumer Credit Conference,
Holiday Inn, Decatur.
May 10-11— Independent Community Banks
in Illinois 9th Annual Convention, Holiday
Inn East, Springfield.
May 23-31 — IBA Bankers School, Southern
Illinois University, Carbondale.
June 9-11 — IBA Annual Convention, Chi­
cago Marriott Hotel.
June 12-18— IBA Agricultural Lending
School, Illinois State University, Normal.
June 15-18— IBA Advanced Ag Lending
Clinic, Illinois State University, Normal.
June 19-25— IBA Commercial Lending
School, Illinois State University, Normal.
June 10-22— AMBI Executive Graduate
School of Banking, University of Illinois,
Champaign, III.

Feb. 7-9— IBA Marketing Conference, Des
Moines Marriott.
Feb. 11-12— IBA Group 1 Meeting, Marina
Inn, Sioux City.
Feb. 16-18— IBA State Legislature Trip/
Leadership Conference, Des Moines
Feb. 20-21 — IBA Group II Meeting, Holiday
Inn, Burlington.
Feb. 23-25— IBA Midwinter Management
Conference, Colo.

(Turn to page 6, please)
Northwestern Banker, January, 1983

(Continued from page 5)
Mar. 14-16— IBA Ag Credit Conference,
Scheman Center, Ames.
Mar. 29-30— IBA Chief Executive Officer
Conference, Des Moines.
Apr. 24-27— IBA Washington, D.C. Trip.
June 19-24— Iowa School of Banking, Uni­
versity of Iowa, Iowa City.

Feb. 8-9— MBA Senior Bank Management
Mar. 1-3— MBA Marketing Workshops.
Mar. 15-17— MBA Agricultural Work shops.
Apr. 12-14— MBA Lending Workshops.
May 3-6— MBA Washington Legislative
Conference, Washington, D.C.
May 9-11— MBA Investment Workshops.
June 20-21 — MBA Annual Convention, Hy­
att Regency, Minneapolis.
June 26-July 1— Minnesota School of Bank­
ing, St. Olaf, Northfield.
July 24-29— Midwest Banking Institute,
University of Minnesota, Morris.
Aug. 18-21 — Independent Bankers of Min­
nesota Annual Convention, Arrowwood
Lodge, Alexandria.

Feb. 9-11 — MBA Agricultural Credit Con­
ference, Holiday Inn, Bozeman.
Mar. 31-Apr.1 — MBA Bank Presidents Con­
ference, Colonial, Helena.

Fed Governor Partee
Testifies on Penn Square
J. Charles Partee, a member of the
Federal Reserve System Board of
Governors, add­
ed another chap­
ter to the in ­
trigue surround­
ing the collapse
last summer of
the $400 million
P enn S qu a re
Bank of Oklaho­
ma City when he
t e s t i f i e d la s t
month before the
Senate Banking Committee. He tes­
tified that the Fed’s role was as
lender of last resort, as regulator of
Penn Square’s parent holding com­
pany, and one of concern over the
impact of bank failures.
Summarized here are what Gover­
nor Partee testified were the rele­
vant facts:
1. On June 30, 1982, Penn Square
requested, and was granted, a $20
million loan from the Kansas City
Fed, supported by a pledge of $26.3
million of the bank’s customer notes.
The loan was repaid the next day.
2 . On July 2, the bank borrowed
$5.7 million, collateralized by $39.4
million of notes.
for FRASER Banker, January, 1983
Federal Reserve Bank of St. Louis

Apr. 24-26— MBA Consumer Lending Con­
ference, Big Sky.
May 12-13— MBA Trust Conference, Sher­
aton, Billings.
May 19-20— MBA Commercial Lending Con­
ference, Colonial, Helena.
June 16-17— MBA Real Estate Conference,
Colonial, Helena.
June 28-July 2— MBA Annual Convention &
Membership Meeting, Sun Valley.

Feb. 5-10— NBA Bank Presidents Con­
ference, Marriott Beach Resort, Marco
Island, Fla.
Feb. 16-17— NBA Personnel Conference,
Feb. 27-Mar.4— NBA Basic School of Bank­
ing, Regency West, Omaha.
Mar. 13-18— NBA Intermediate School of
Banking, Regency West, Omaha.
Mar. 30-31 — NBA Ag Outlook Conference,
Holiday Inn, Kearney.
Apr. 10-16— ABA Leadership Conference,
Apr. 24-29— ABA Commercial Lending,
School, Regency West, Omaha.
May 4-6— NBA Annual Convention, Holiday
Inn, Omaha.
June 11-14— NBA Washington Visit.
July 10-15— NBA Trust School, Regency
West, Omaha.

Feb. 16-18— Bank of North Dakota M id -^
Winter Break, Bismarck.
Mar. 16-17— NDBA Agricultural Credit Con­
ference, Fargo.
Apr. 26-28— NDBA Washington Legislative
and Administrative Conference, Hyatt
Regency on Capitol Hill.
May 23-24— NDBA 98th Annual Convention,®
Civic Auditorium, Grand Forks.
June 5-10— NDBA North Dakota School of
Banking, Grand Forks.
Sept. 14-16— Independent Community
Banks of North Dakota Annual Conven­
tion, Kirkwood Motor Inn, Bismarck.
Sept. 26— NDBA Northeast Group Meeting.
Sept. 27— NDBA Northwest Group Meetinq,
Sept. 28— NDBA Southwest Group Meeting,
Sept. 29— NDBA Southeast Group Meeting, ®

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


Jan. 26-27— NDBA Bank Management Con­
ference, Kirkwood Motor Inn, Bismarck.

Feb. 3-4— WBA Credit Conference, Ramada
Inn, Casper.
June 15-17— WBA Annual Convention,
Jackson Lake Lodge, Jackson.

3. Over the July 4th weekend the
Fed was notified by the Comptroller
that Penn Square’s losses and irre­
gularities would wipe out its capital
and that Penn Square would be un­
able to meet the demands of de­
positors and creditors. The Fed
notified the Comptroller it would not
extend the bank more credit and the
Comptroller declared Penn Square
insolvent and closed it on July 6.
4. The FDIC, as receivor, paid the
$5.7 million loan owing to the Fed of
Kansas City, which returned the
collateral to the FDIC.
5. The Fed of Kansas City ex­
amined the Penn Square holding
company twice between the begin­
ning of 1981 and the failure date in
1982 and found no evidence that any
activities of the holding company
contributed to or were in any way
responsible for the Penn Square
Bank’s difficulties.
6. Under the receivorship, unin­
sured depositors were to be given
"Receiver’s Certificates” amounts
equal to the uninsured portion of
their respective deposits. The Fed
announced those certificates would
be acceptable as collateral for ad­
vances at the discount window.
Since then, the Fed has received
only a limited number of discount

w indow borrow in g requests on
those certificates. As of December
10, 1982, there were no loans out­
standing secured by "R eceiver’s
The Fed has reviewed the Penn
Square episode to determine the
capacity of existing bank laws and
regulations to handle a similar situ­
ation should it occur in the future.
"It is our judgment that current
banking statutes and regulations,
and the supervisory tools available
to federal bank regulators are ade­
quate at present to oversee the safe­
ty and soundness of our nation’s
banking system. We would point out
once again that the failure of Penn
Square resulted from extreme em­
phasis on growth at the expense of
sound lending and funding prac­
tices, and in the absence of proper
management oversight and controls.
The extremely unsound banking
practices that caused the failure of
the Penn Square Bank represent an
isolated instance, not characteristic
or typical of most commercial banks
or depository institutions generally.
Indeed, the evidence we have con­
tinues strongly to indicate the over­
whelming majority of banks being
operated in a sound and prudent

North Dakota:


Bank Promotions
^ ^ P H E following promotions and
I other announcements have been
made by these banks:
Bank of America, San Francis­
co: William H. Bolin and James B.
®Wiesler have been appointed vice
chairmen and will continue in their
present positions. Mr. Bolin, 60, is
head of the world banking division.
Mr. Wiesler, 55, is head of retail
® banking and consumer services divi­
sion. They have been with the bank
since 1947 and 1949 respectively.
C enterre B ank , St. Louis:
^ F re d H. Entrikin, III, Thomas E.
O’Meara, John A. Schreiber and
James H. Taylor have been elected
vice presidents of the bank.
Terence M cCarthy join ed the
0 bank recently as assistant vice pres­
ident with 18 years of advertising
and marketing experience. Thomas
C. Roeseler was advanced to assis­
tant vice president in operations.

C harterC orp, K ansas City:
Charles W. Battey, president of
United Telecommunications, Inc.,
Kansas City, has been elected a
_ director of the bank holding com®pany. He will complete they unex­
pired term of Charles E. Curry, who
has moved to Washington, D. C., to
serve as treasurer of the Democratic
^ N a tion a l Committee. Mr. Battey,
^ w h o is also a director of First
National CharterBank of Kansas
City, served 19 years with major
banks in Chicago and Kansas City
^ prior to joining United Telecom­
munications several years ago.
CharterCorp also announced the
election of Earl R. Fell, Michael F.
Gegen and Leland M. Walker as
^ senior vice presidents.
Mr. Fell joined CharterCorp in
1976 and is personnel director. Prior
to 1976 he was vice president with
First National Bank of Lincoln,
^ Nebr. He is also senior vice presi­
dent o f the subsidiary Charter
Bankers Life Insurance Co.
Mr. Gegen and Mr. Walker both
are regional managers with the
^ holding company, serving its 25 sub­
urban and rural banks.
Commerce Bank of Kansas
City: The election o f four new
^ officers and promotions for 11 of™ fleers were announced last month.
Federal Reserve Bank of St. Louis

bank’s Oklahoma City office.
Alex J. Pollock, who heads the
corporate planning research and de­
velopment area.
Kenneth J. Rudnick, responsible
for staff services in the general
banking services department.
Robert G. Schiewe, head of the
operations area of the trust and
investment services department.
William N. Termyn, manager of
the transportation, marine indus­
tries and leasing group.

New officers are Paul S. Franklin,
commercial banking officer; Robert
J. Rauscher, consumer banking offi­
cer; Gilbert P. Bourk, III, and Steven
L. Burks, trust officers.
Mr. Franklin joined Commerce in
1978 and continues as assistant
manager in commercial loan opera­
tions. Mr. Rauscher, an employee
First National Bank of Kansas
since 1979, continues also as secuCity:
Robert K. McCall and Karen
rity/customer service supervisor.
have been promoted to vice
Mr. Bourk, who has a law degree
from Washburn University is in cor­ presidents, and Denise M. Nevinger
porate trust. Mr. Burks, who has a and Rhonda Holman have been ad­
finance degree from the University vanced to assistant vice presidents.
Mr. McCall has been a commercial
of Missouri and did graduate work
officer since 1981. Mrs. Mills
at Kansas State U niversity at
has responsibilities in the
Pittsburg, is in trust marketing.
division. Mrs. Nevin­
Most recently, he headed the trust
ger is funds transfer manager. Mrs.
department of a Dallas bank.
Stephen J. Freidell was named Holman currently is on assignment
vice president in the bond depart­ with the enrichment group.
In addition, three new assistant
ment, where he will continue as
m anager o f the m oney m arket cashiers have been named: Gerald J.
Donahue, Jr., and Mitchell T. Mor­
Named assistant vice presidents gan, loan officers in the metropoli­
were: Phyllis J. Sarratt, assistant tan division, and Daniel L. Mildfelt,
manager of money market center; loan officer in the correspondent de­
Thomas H. Kokjer, bond trader; partment and energy group.
Elliott Passman was elected an
B etty L. C on rad, m an ager in
commercial loan operations; John S. international banking officer.
Archer, commercial lending officer
Harris Bank, Chicago: Richard
in the U. S. banking department; H.
Dean Valentine, assistant manager, L. McAuliffe, 47,
installment loan department; Peter last month was
L. Hays, commercial banking offi­ appointed chief
cer, corporate services department; financial officer
Stanley E. Ricketts, commercial of the bank to
banking officer, U. S. banking de­ succeed T h eo­
partment, and Tom R. Jennings, cor­ dore H. Roberts,
who was a p ­
respondent banking officer.
Appointed senior trust officers in pointed Decem­
the corporate trust department were ber 3 as presi­
Leland R. Johnson, Jr., employee dent and chief
benefits, and Robert J. Glidewell, executive officer
Bank of St.
who is also assistant secretary.
Mr. Roberts, 53, will assume his
Continental Bank, Chicago: Di­
rectors have elected eight senior vice new duties February 1, succeeding
Lawrence K. Roos, president of the
James H. Davis, who heads divi­ St. Louis Fed for six years, who will
sions in the metropolitan Chicago reach the mandatory retirement age
manufacturing group of the U. S. of 65 on that date.
Reporting to Mr. McAuliffe at
banking department.
David E. Maguire, head of corpo­ Harris Bank will be the financial
control group, the corporate activi­
rate personnel service.
John A. McAdams, who is respon­ ties office, the economic research
sible for the Asia/Paciflc division office and planning administration.
Harris directors also elected Mr.
o f the in te r n a tio n a l b a n k in g
McAuliffe later in the month as an
Alvin J. Pearson, head of the executive vice president of both the
Northwestern Banker, January, 1983




bank and its holding company,
Harris Bankcorp, Inc.
Mr. McAuliffe, who had been head
of the planning administration, will
be succeeded by Senior Vice Presi-

dent P. David Hubbard, 47. Mr.
Hubbard’s most recent assignment
was in the banking department,
where he was in charge of the analy­
sis and support group. Mr. Hubbard
joined the bank in 1962.
Mr. McAuliffe joined the bank in
1960, became a vice president in
1966, served as head of the banking
services group, became controller of
the bank in 1978 and was named to
his planning administration post as
senior vice president in 1980.
Mr. McAuliffe is a 1957 graduate
of Carleton College, Northfield,
Minn., where he is presently a trust­
ee. He also serves as a director of

Banks Like Customized Newsletter
CUSTOMIZED money-management newsletter that helps crosssell bank services “ is getting better results than any of our tradi­
tional advertising sources,” reports Joe Nordlund,
president of First State Bank of Apple Valley, Minn.
Mr. Nordlund said that at his bank, “ we just did a
readership study” that verifies the high readership
and impact of the newsletter.
The study, he said, showed that 92% of the bank’s
high-deposit customers read it, and 45% pass it on to
another family member. “ In fact,” he added, “ some
people bring it to work and route it through the of­
The First State Bank survey shows that of those
reading it, 57% said they had not found the informaJ- NORDLUND
tion anywhere else; 80% found it timely; 90% found it easy to read, and
72% said it was pertinent to their financial situation.
Some typical articles in recent issues of the bank newsletter that
developed this strong, interested readership include: What Are Your
Chances of Being Audited?; How to Retire in Style; The Seven Most
Commonly Asked Questions About IRAs; How to Lower Taxes on
Gifts; New Federal Income Tax Rates.
The newsletter mailed to bank customers by First State Bank is
prepared by Priority Publications in Bloomington, Minn., which
customizes each issue for the individual bank using the service. Mary
O’Donnell, a representative for Priority, said the company describes
the newsletters as informational advertising on behalf of the subscrib­
ing banks. Several banks already have moved to use of the newsletter,
she said, since the new service was announced a few months ago
(September N o r t h w e s t e r n B a n k e r , page 11 ), and all with excellent
results. The main thrust of the newsletter is to show customers how to
use bank services to maximum advantage.
Miss O’Donnell referred to a new study of the banking industry by
McKinnsey and Company which predicts that community banks will
move to informational advertising to counter the encroachment of
money-center banks and near-banks. To make the newsletters as useful
as possible in meeting this competition, she says, “ we periodically poll
a cross-section of bank customers to find what subjects they’re most
interested in. Then, we cover those subjects from three or four angles,
using a telegraphic, highly readable style.”
Apparently, a growing number of community banks agree with this
assessment for 13 of them currently are using one of Priority Publica­
tion’s two formats—one written for high-deposit retail accounts, the
other for commercial accounts. In addition, Miss O’Donnell reports,
another 12 community banks have contacted the company since the
first newsletter actually was marketed in October.


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

Gerber Products Company, Fre­
mont, Mich. He received his MBA
from Harvard in 1959.
A native of Arkansas, Mr. Roberts
was graduated from Northwestern
State University of Louisiana with a
BA in 1949 and from Oklahoma
State University in 1950 with an
MA in political science. He also at­
tended the Graduate School of Busi­
ness at the University of Chicago.
After three years in the Army in
Korea he joined Harris Bank in
October, 1953 in the financial and
economic research department. Af­
ter a series of posts and promotions,
he was named executive vice presi­
dent chairing the asset-liability
management committee and has
been the bank’s ch ief financial
Harris Bank officials also an­
nounced the election of three new
senior vice presidents. In the trust
department Richard C. Caldwell
heads the institutional trust admin­
istration group. Named in the opera­
tions department were Alan E.
Hanzlik, head of the currency and
check processing group, and Max M.
Jacobson, head of the administrative
services division.
United Missouri Bank of Kan­
sas City: J. Lyle Wells, Jr., has been
elected vice chairman of United
M issouri B ancshares, Inc., the •
holding company, and of United
Missouri Bank. He w ill remain
chairman of the executive commit­
tee and a director of City Bank and
Trust Company. He joined City Na- ®
tional Bank, now United Missouri
Bank, in 1956.
Wells Fargo Bank, San Fran­
cisco: R ich ard
Borda, executive
vice president,
has been named
head of the new­
ly organized do­
mestic co r re ­
spondent bank­
ing division in
th e c o r p o r a t e
banking group,
it was announced
by R. Thomas Decker, executive vice
president and group head. Mr. Borda
will continue to be based in Los



"Accepted Sale Registers by Bank
Clerks Everywhere"
T or in fo r m a tio n

w r ite

Oakland, Iowa


# O R O M O T IO N S and other anM nouncements have been made by
the following firms:
American Express Company,
New York: Louis V. Gerstner, Jr.,
# vice chairman of the company and
chairman and chief executive officer
of its American Express Travel Re­
lated Services Company (TRS), has
announced that Aldo Papone re# joined American Express January 1
as vice chairman of TRS. Mr. Gerst­
ner also announced that William M.
McCormick has been promoted to
vice chairman of TRS.

Mr. Papone served in various
capacities at American Express from
1974 to 1980 when he joined Dayton
Hudson Corporation in Minneapolis.
As vice chairman there, he was re­
sponsible for five of the national
retailer’s eight operating companies.
In his new position, he will be re­
sponsible for TRS’ communications
division (Travel & Leisure and Food
& Wine magazines and other pub­
lishing and merchandising opera­
tions), the financial institutions ser­
vices division (First Data Resources
and American Express Money Or­
ders), and the American Express
Service Corporation (a direct mar­
keter of consumer financial ser­
vices). He will also serve as a direc­
tor of Warner Amex Cable Commu­
nications, a joint venture of Ameri­
can Express and Warner Communi­
cations, Inc.
Mr. McCormick began his Ameri­
can Express career with its interna­
tional banking corporation. Since
October, 1981, he has managed the
com pany’s w orldw ide Card and
Travelers Cheque businesses as
president of its Consumer Finan­
cial Services Group. As vice chair­
man of the TRS Company, he will
continue to manage those businesses
Federal Reserve Bank of St. Louis

manager in the company’s field ser­
vice division, has taken the same
title in the corporate marketing de­
partment, where he will administer
a corporate service policy to main­
tain a single image for Brandt
equipment service.

Banco Financial Corporation,
M inneapolis:
J ac k L. Hart,
vice president,
Central National Insurance
has returned to
Group, Omaha: James K. Twiss
M inneapolis
has been promoted to executive vice
president-marketing, and James E.
where he has re­
Rosenthal, CPA, has been promoted
joined the loan
to executive vice president. Mr.
adm inistration
Twiss joined the company as a vice
president in 1963. Mr. Rosenthal
A graduate of
joined Central National in 1970.
the University of
Other promotions announced by
Minnesota with majors in account­
Frank J. Barrett, president and
ing and business administration,
chief executive officer were:
Mr. Hart joined Banco Financial in
L. Tim Wagner, CPCU, to senior
1975 after two years with James
vice president-research, develop­
Talcott, Inc. He held various posi­
ment and planning, of all the compa­
tions with BFC, including auditor
nies in the group.
and loan administrators. In 1978 he
David L. Haslanger to vice presi­
was elected assistant vice president.
dent-mobile home sales, of all the
Then in 1981 he was appointed vice
president and manager of the first
Donald S. Campbell to assistant
branch office opened by BFC, located
vice president-marketing of all the
in Denver, Colo., serving the Rocky
companies. He joined the company
Mountain and surrounding area.
earlier this year. He had been presi­
Banco Financial is a subsidiary of
dent of Lenders Insurance Systems,
the $17 billion Northwest BancorpoInc., and president o f Midlands
ration, Minneapolis.
Donald H. Nachtman to assistant
Brandt, Inc., Watertown, Wis.: vice president-credit life and disabil­
A restructuring of the corporate ity division. Mr. Nachtman joined
marketing organization, which be­ Central National earlier this year.
gan in August with the naming of Previously, he owned his own agen­
Terrance E. Johnson as vice presi­ cy and also had extensive credit life
dent-sales, has given new positions insurance sales experience among
and responsibilities to five depart­ banks in Iowa.
ment staff members.
David A. Deetz, Thomas E. Kozlik
ATM Network Management
and Charles R. Harris, formerly re­
gional sales managers for the firm, Corp., Downers Grove, 111.: E. L.
have been named market manager Smith, president, announced the
— finance; market manager — re­ election of James R. McDermott as
tail, and market manager — special­ president of SATM Midwest, Inc.,
ty, respectively. These new positions a newly-formed subsidiary of the
give the men responsibility for in­ parent company.
ATM Network Management is
tensive analysis and development of
different markets where products of the owner and operator of SATM
Brandt’s coin products division, cur­ (Shared Autom ated Teller M a­
rency systems division and business chines) Switching (computer) Cen­
ters across the United States, link­
products group are sold.
In other appointments, Brian E. ing ATMs, point-of-sale and other
Nicholas was promoted from market consumer-oriented devices together
planning manager to marketing to accommodate sharing of them on
services manager, and Joseph L. a national basis.
Mr. McDermott previously was
Schnorr was promoted from sales
administration manager to custom­ senior vice president and director of
operations of the Premier Banks of
er service manager.
In a related change among staff Northern Illinois, a group of five
members at Brandt, Edward Mel­ banks in Metropolitan Chicago, for
chior, who was national service seven years.
Northwestern Banker, January, 1983

N a t ío &M--


r '/
# a
ff .
W '
l /■
I "

Pipestone, Minnesota, is a town of five thousand
where the natives wave & smile & say howdy to
perfect &- imperfect strangers. The first time it
happens you check to see who’s behind you. In an
age when friendliness has become a diminishing
national resource, Pipestone stands out as a mini- M r
motherlode of amicability. An amiable attitude toward'
others certainly animates the First National Bank of
Pipestone, founded in 1889. Its president is Bob Morgan
44, who laughs easily & well and who looks much
younger man
than ms
his years,
years. He
and ms
his brother 8teve
Steve own
tie ana
the bank, which has assets o f $52 million and a
customer base o f4000. Morgan thinks a doubling of his
bank’s assets in 10 years is not an unreasonable
expectation. But this is possible, he says, only if the bank
keeps tabs on assets and liabilities. Early this year
Morgan called Northwestern National Bank of
Minneapolis to ask if it had a service to facilitate
The answer was yes. The service was called
^ CBM—Community Bank Model. Recently
..^M orga n spoke of his town, his bank and CBM
Ours is a community bank. It’s
. y^pfegSuccessful. As is the town. It has a work
force of 5700 and an unemployment
VV'e want to keep both bank &

This is where this service from
Northwestern of Minneapolis comes
in. The Community Bank Model gives
^ ^ ^ u s an exact fix every month on our assets & liabilities.
It tells us how our loans are doing. Tells us
how our portfolio is doing. Tells us where we
¡ ^ P i a r e in relation to the month’s goals.
••••••-•••--It tells us how good our margin is in relation
to other community banks. It allows us to

cf p m sv*#

jA & t

• r

it allows us to ask questions. What
we did this? How would it affect our
p"* '*%
margin for the year, for five years?
CBM figures in all variables. It’s a tool.
We avoid trouble. We seize opportunities.
Even the incidental effects are good. We’ve been
successful because we’re efficient. We have a staff of
only 21. This service from Northwestern National
allows us to be even more efficient. Every officer knows
every month precisely where we are.
Between us, too many community banks don’t know
for sure where they stand until their tax men |
tell them. This is wrong. No banker can fly by JL
the seat of his pants anymore. Interest rates >f%
are too volatile.
Could I duplicate the Community fjfC ?|f|
Bank Model on my own? Sure. Only
it would cost me five times what it’s :1
costing now.
We went to Northwestern
I l f fifff ‘ •¿✓ J
National of' Minneapolis once \\<
! ’
decided we needed something
SE ;
like CBM because it’s been a
correspondent bank of ours jKfV )
! f W : !■#* »
for 60 years. Wc know them.
6 5
We like them. We trust themê:~pfe-|yn^w v
? à 1á
Heck, they’ve helped keep
B ^
us independent.
CALL SCOTT ULBRICH (612) 372-5967

National Bank
Of Minneapolis
Federal Reserve Bank of St. Louis

-< £ *£ >


The most important challenges
facing banks in 1 9 8 3 !


A N orthwestern B anker S

HEN Charles Dickens wrote his introductory
lines to A Tale o f Two Cities:
“ It was the best of times,
“ It was the worst of times”
...he described unknowingly the scenario for today’s
financial business.
As 1982 was drawing to a close, the Federal Reserve
• Board had achieved success in reducing inflation from
double digits to about 5%. This effort had been sup­
ported by all as a national goal, but in its wake was
10 % unemployment and a federal budget deficit esti­
mated at from $125 to $180 billions. Business in all
• sectors was down; agriculture especially had taken a
bad beating for the third year in a row, which shut
down the farm machinery business and other busines­
ses related to agriculture.
Banks and thrifts were positioning themselves to
• market the new Money Market Deposit Account which
Congress on October 1 ordered the Depository Institu­
tions Deregulatory Committee to draw up. A t their De­
cember 6 meeting to finalize details of the plan, the
DIDC announced the details of that plan but also rushed
® in to add a Super NOW Account that may be offered
January 5. No one expected the latter account to be
plugged in so soon after going to market with the
MMDA, so that added to the confusion.
But signs began to appear in the fourth quarter that
^ the recession was ending and that a turnaround was
just ahead, with gradual recovery in 1983 an agreed
upon forecast by most economists.
With that backdrop, the N o r t h w e s t e r n B a n k e r in^ vited city correspondent banks to give their assessw ment of “ The Most Important Challenges Facing

Federal Reserve Bank of St. Louis


Banks in 1983.” Their banks have continued their tra­
ditional role of service to community banks and, in ad­
dition, have expanded their services in order to assist
respondent banks in planning for the changes needed
to face the challenges ahead, such as designing ways to
market the new, no-interest-ceiling deposit accounts.
Practically all the responses were prepared before the
D ID C’s December 6 meeting, although planning for
the account effective December 14 had been underway
for many weeks. Following are the comments of those
responding to the survey:

Vice President
The Omaha National Bank
Omaha, Nebr.

UCH TOPICS as asset liability management, new
money market/depository instruments, and all
other efforts to maintain a competitive stance in a de­
regulated environment will continue to be important
issues as we move into 1983. However, one issue will
very likely take a large share of bankers time in 1983.
That issue will be encompassed in the efforts to main­
tain loan quality.
In the bread basket of the nation, commodity prices
have been poor and profits have been difficult to at­
tain. With the economic difficulties in the agricultural
industry, we have begun to see a discernible erosion in
Northwestern Banker, January, 1983

land values. The difficulties with loans which have
been extended to producers of agricultural products is
certainly being felt up and down main street of small­
town America. The businesses which directly support
and obtain their livelihood from the agricultural pro­
ducer have felt the difficulties of these economic times.
With the erosion of collateral values and the effects of
high leverage in certain agricultural loans, there are
and will be problems which require close monitoring;
and, in some instances, the loans will have to be bol­
stered with additional collateral and a repayment plan
that has a high degree of probability.
Agriculture has had difficult times in the past and
has met the challenges. The strength of the ag in­
dustry and the related agri-businesses continues to be
unmatched in the world. I am confident that condi­
tions will improve over time; however, focusing on loan
quality and the efforts to maintain loan quality will
take even more attention than in the past.

Vice President
Bankers Trust Company
Des Moines, Iowa

ANKING is still banking and the most important
challenge facing banks in 1983 is to provide for the
financial health of the communities we serve.
Critical areas that will challenge us are competition,
indentifying our product and marketing it, deregula­
tion, interest rates, and profitability.
We are constantly facing major changes in our mar­
ket place and in our competition. Our depositors have
become rate sensitive and have been exposed to a
variety of products offered by our non-banking com­
petition who do not have to cope with regulatory con­
straints. Being full service institutions, we must make
every effort to cross-sell all services which should be
geared to customer needs and wants. We should deter­
mine what product we want to offer, how we want to
price it and what results we hope to achieve from it.
To some of us the Federal Reserve has become com­
petition for correspondent business. Being a regulator
and a provider of services has created much debate.
Pricing is critical! Our response is that we can be com­
petitive if the ground rules are the same for all of us.
Deregulation means increased interest costs to
banks and must be overcome by fee income and the re­
pricing of assets. The latter is a necessity to insure pro­
fit margins in the face of increased cost of funds.
Reduction in interest rates while the economy con­
tinues to struggle has likewise caused a reduction in
margin spreads.
Maintaining profitability is certainly a challenge.
Asset/Liability management is where banks can add to
profits. An A/L committee has the responsibility for
matching maturities of assets and liabilities. Loans
and other forms of credit must be geared to sources of
funds. Many new services will be fee-based and pricing
will be reviewed to obtain a proper rate of return.


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

Strategic planning for developing objectives and f
goals for the near-term and the long-term is a continu- W
ing process. It is necessary to deal successfully with
the changes that seem to be coming at us at an ever in­
creasing pace.

Vice President
First Bank Minneapolis
Minneapolis, Minn.


HE agricultural economy, asset/liability manage­
ment and non-bank competition are three major
challenges facing banks in 1983.
In the agricultural area, the high costs of farming,
along with low commodity prices, have created a dif­
ficult environment. Banks will need to monitor ag
loans closely to help their farm customers through the
rough times. Those farms and banks that can weather 0
the economic storm will emerge with a stronger rela­
Asset/liability management is also critical to banks
in 1983 and beyond because of changes that include
the new DIDC products. In addition, the increased 0
cost of funds will tighten the existing pressure on
margins and intensify competition for deposits.
Finally, non-bank competition is here to stay and is
on the increase. The coming year will be a time when
community banks should pay particular attention to
ensuring solid customer loyalty and relationships.


Vice President
United Missouri Bank
of Kansas City
Kansas City, Mo.

HE ROLE of the bond portfolio in bank profitability will continue to be increasingly important in
1983. The one thing we know about interest rates for
1983 is that the outlook is cloudy, uncertain, and dif­
ficult to project. If you subscribe to this line of
thought, utilizing the bond portfolio and gap management can minimize the exposure of your institution to
interest rate movement.
In line with the achievement of profitability goals
and necessary growth of capital accounts, maximi­
zation of after-tax income is a must. Tax planning
should begin the first business day of 1983 with con­
stant monitoring of income levels, asset mix, and pro­
jections to the end of the year. The bond portfolio is
the most flexible tool the community banker has at his
disposal to “ fine tune” variables that ultimately determine federal income tax liability and after-tax income.







Vice President
First National Bank of
Chicago, Illinois








I I OW DO WE choose among the challenges before
n us of Fed Pricing, personal financial conglom­
erates, high unemployment, and disinflation? We must
choose those which can be addressed within our institutions and, in doing so, maintain the flexibility and
strength to compete profitably in any environment.
Allocating Resources—The willingness to examine
strengths and weaknesses and then allocate resources
to profitable, growing businesses and get out o f unprofitable, non-differentiated activities is a critical
challenge. This pertains to all bank areas. We cannot
allow past practices or personal egos to guide our ef­
forts. With pressures on net interest margin from
removal of Reg Q, and expense growth difficult to contain, decisive allocation of expenses, people and assets
is vital.
Strengthening the Balance Sheet—A strong, flexible
balance sheet will be necessary to compete. The next
9-12 months will provide a good window of opportunity to clean house. As appropriate, sell off longer-term,
low yielding assets, rebuild the allowance for possible
loan losses, and lock-in a proportion of longer-term fix­
ed rate liabilities. It will be important to upgrade asset
and liability tools to handle the impact of new money
market liability funding sources.
Maintaining Credit Quality—An upward trend in
economic activity in 1983 may result in increased
credit demands. As we have all experienced
soft-loan demand in 1982, the temptation to ease standards to build volume is natural. The willingness to
maintain credit and pricing standards in the face of
competitive pressures will challenge us all. History has
proven itself that the greatest number of corporate
credit problems tend to occur in the early stages of

Vice President
United States National Bank
Omaha, Nebr.



URBULENCE might be a fitting word to describe
1983 for the financial industry. Like the de-regulated airlines we might be in for some bumpy flights.
De-regulation and subsequent change will cause the
turbulence. New products, services, and competitors
will be showing up at an alarming pace.
Adjusting to the changes will affect more than the
wear and tear on the banker. It will affect the bottom
line through increased cost of operation and narrowing

Federal Reserve Bank of St. Louis

spreads. New products cost money to design and intro­
duce. De-regulated deposit products will be high priced
at the inception as we all scramble to gain or retain
market share. Low loan demand will hold price to the
borrower at lowel levels than we would like. The soft
economy and poor commodity prices will increase the
possibility of loan losses, further dampening profit pro­
We will all have to examine the potential sources of
products and management tools, which will be neces­
sary to be competitive. It will be virtually impossible
even for large banks to go it alone. Now is a good time
to be assessing our product leads and finding suppliers
for those products.

Senior Vice President
F&M Marquette National Bank
Minneapolis, Minn.


N OUR VIEW , creativity is going to be the most
significant challenge for bankers in 1983 and be­
yond. We are going to have to be more creative in our
approach to pricing, product development and the gen­
eration of alternative sources of income. In an era of
deregulation, our spreads will erode, more rapidly
perhaps, than any of us anticipate at this time.
Without creative attention to the bottom line, bank­
ers’ profits will diminish substantially in the coming
We must also concentrate on developing products
and services that will make our customers more pro­
fitable. We have to become sophisticated in the ways
we analyze our customers’ needs. And we must re­
spond to those needs in new and innovative ways.
Historically, the primary functions of banks have
been to store, transfer and lend funds. Today, that ap­
proach is wholly insufficient. It’s insufficient for the
customer whose financial needs lie far beyond sig­
nature card banking. And, perhaps more importantly,
it’s insufficient for bankers because the profits are
simply not going to be there.
In 1983, banks must begin to find ways to reduce
operating overhead and increase operating income at
the same time. One avenue open to independent bank­
ers is to participate in the many management services
offered by their correspondent banks. Cash manage­
ment, training for personal bankers, tellers, loan of­
ficers and operations personnel, as well as audit and
computer modeling services can be very productive for
the bankers who wish to reduce overhead.
With the new Hi-Fi accounts, interest expense will
rise, perhaps more quickly and dramatically than any
of us envision at this time. As a result, we are going to
have to find creative ways to control operating over­
head, increase income by examining the pricing of pro­
ducts and services and generate new income sources.
These tasks will challenge even the most creative
Northwestern Banker, January, 1983


Senior Vice President
Northwestern National Bank
Minneapolis, Minn.

HEN we as bankers sit back and try to envision
the challenges we face in 1983, I for one find it
hard to pinpoint a few as most important. Surely, some
will affect us greater than others; and the most not­
able, probably because of press coverage, are the
Federal Reserve competition issue, non-financial com­
petition, and the Reserve Requirement Reform Act of
1982, only to mention a few.
However, I believe that I view these three issues
that should be of deep concern to any bank, regardless
of its size or location. They are:

ter manage both sides of its own balance sheet, and it
should include an analysis of which market segment it
should be in and those in which it should not be. The
plan should prepare the bank to respond quickly and
competitively to new ideas or products; and to provide
plans for possible acquisitions, mergers, loan growth,
pricing, etc.
I believe the future is very challenging and exciting,
the challenges must be dealt with with competence and
enthusiasm in order to succeed.


Vice President
Iowa-Des Moines National Bank •
Des Moines, Iowa

HE NEW YE A R will see banks of all sizes making
a continuing effort to adjust to a changing environ­
(1 ) concern over the agricultural position,
ment created by economic circumstances and
(2) concern over loan quality, and
regulatory change. The condition of our economy has
(3) strategic planning.
impacted many of our customers and has required a
renewed emphasis on basic credit procedures and loan
I would like to comment briefly on these three
administration. Not only is loan quality a major con­
cern, but sluggish loan demand has impacted the abili­
During the coming year and the years to follow, ty of many banks to profitably employ an increasing
agricultural bankers will face challenges never before
level of expensive deposits, thus bringing about an inexperienced in their lifetime. The ag banker must cope
tensive effort to increase non-interest income where
with a depressed farm economy which has created ser­
possible. Yet, we can’t ignore the long range impli­
ious cash flow problems and eroding financial condi­
cation of regulatory changes on our mode of doing
tions. As ag bankers, we must be able to evaluate our
troubled borrowers and develop a survival strategy for
Banks will continue to rely heavily on computer
those otherwise credit-worthy borrowers who are vic­
technology; not only as a means of improving funds
tims of the depressed farm economy. We must step out
management sophistication as an aid in meeting earn­
of our traditional role as lenders and provide more non­
ings goals and objectives, but also to assist in identify­
credit services, particularly in the ag area of new tech­
ing the risks and opportunities created by new pronologies which are designed to assist the farmer with
ducts and services before they are introduced. A keen
financial planning and farm management. No one can
assessment of resources will be required in determin­
deny that we are facing a most crucial period in agri­
ing a bank’s ability to offer new products and compete
culture, and that our biggest challenge will be in pro­
in new markets. It will be important for banks to iden­
viding the professional advice and expertise that is ex­
tify sources of expertise it can rely upon to satisfy
pected of an agricultural banker.
customer’s needs it cannot satisfy on its own.
We should be concerned over the loan quality of
Continuing competition from the non-financials
our portfolios. This will be an issue regardless of the
should be a big incentive for banks to strengthen their
direction the economy takes in 1983. Repayment capa­
marketing efforts. A formal marketing program sup­
city has been seriously impaired during the past couple
ported by skilled personnel could prove to be the best
of years and, as a result, we have found increased delin­
competitive weapon available.
quencies, defaults, increased reduced rates and/or non­
accruals, and real and/or potential losses. These are
coupled with extreme pressure on net income interest
margin as a result of the severe competition for a nar­
rowing supply of good credits in the market-place. This
has produced very aggressive pricing and credit struc­
Vice President
ture competition. Constant monitoring of our portfol­
Colorado National Bank
ios is essential as we go forward into 1983.
Denver, Colo.
Finally, I firmly believe every bank must have a
sound, strategic plan that addresses, to the best of its
ability, what course it should follow into 1983 that will
be in its best interest. Every bank, again regardless of
HE CHALLENGES of 1983 are easy to list, but
size, must have a solid base to compete in a deregula­
harder to place priorities on since each bank’s pro­
ted environment in order to survive. This plan should
blems and opportunities differ somewhat. Certainly,
include an asset/liability management program to bet­



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







competitive pressures complicated by deregulation (or
reregulation), the resulting increase in costs and the
doubtful nature of credit quality are three problems we
all share to some extent.
The temptation to match each new service offered in
the financial market-place can cause a nightmare of
operational problems and pricing errors from which it
can take years to recover. Money market accounts,
controlled disbursement activities and an everlengthening list of certificated deposits (e.g. IRA, 182
day or 91 day money markets and 7-31 day CD’s) can
be costly to offer and significantly re-shape a bank’s
liability structure while increasing the cost of funds.
Likewise, electronic banking service may require large
capital commitments initially, but provide significant
long-term benefits.
The increased cost arising from the gradual extinc­
tion of demand deposits will be hard to pass through to
borrowers. Instead, accompanying services will have
to be repriced (or charged for, if previously free) on a
gradual and periodic basis. Also, non-interest costs
like personnel, occupancy, equipment, postage and
supplies are absorbing more and more of net interest
margin so that long-run, cost-containment procedures
can have immediate impact.
A slow but steady recovery in the economy will help
alleviate credit problems where loan restructuring or
loan-loss reserve allocations have been made. How­
ever, when the tide goes out, we all know what may be
left on the beach, and the ability of some businesses to
survive recovery will be tested. Also, low earning rates
as interest levels continue to decline place more
pressure on interest margins, and this can continue for
several quarters once the economy begins to bounce
The critical issues for 1983 do not really differ from
those for 1982 and will very likely be with us for sev­
eral years to come. If we are to deal with them success­
fully, we must put in place soundly based strategies
which reflect each individual bank’s definition of what
we are, what our market is, and how we can best ser­
vice it while earning a desirable rate of return on in­
vested capital.

short term rates on purchased liabilities look attrac­
tive, but this can change rapidly and lead to serious
Look at your bond portfolio—and if you don’t feel
comfortable with it—get some professional help. It
should be one of your strengths and yet so easy to
In setting your loan rates, remember this is the year
the Iowa Legislature will look again at the usury issue.
We can’t cover all our loan charge-offs with too high in­
terest from our other borrowers, so rates will have to
come down or it will be difficult to get much help from
our legislators.
Fed pricing has established real fees in the market
place and many banks have paid service and analysis
charges for the first time ever. This will continue and it
will be up to you to cover costs with balances or fees.
There is no “ free lunch.”
Deregulation gives us the opportunity to compete
effectively with money funds. W e’ve got a plus in our
solid core deposit base, but we obviously will need to
be competitive in rates offered. If you haven’t already
done so, develop or acquire a spread sheet so you know
what you can pay (but not too much at the expense of
your good borrowers).
Finally, banking is a good business. I ’m proud to be
in it. It’s up to us to continue to provide the leadership
that has made us respected in the communities we
serve. Let us see what tools we have available in our
decision making processes to minimize our risk, max­
imize our profits, keep our directors and shareholders
happy, and keep the respect and trust of our custom­
ers. It’s a tall order, but you can do it.

Vice President
American National Bank
and Trust Company
Saint Paul, Minn.

LTHOUGH there has been talk about deregula­
tion for many years, 1983 promises to be the year
in which the impact of deregulation will start to be felt.
During the period 1983-1986, the total impact of this
change must be absorbed. We believe this is the great­
est challenge faced by banks in the last 50 years. This
challenge really consists of two parts.
The first part is the elimination of the Regulation Q
profit bonus. We simply will no longer enjoy a large
supply of funds at substantially below their true
money market value. A large portion of our fund port­
folios will be deregulated during 1983, and the re­
mainder will be deregulated during 1983, and the re­
mainder between 1983 and 1986. It is up to all of us to
intelligently and responsibly handle this pricing oppor­
The second part is the exponential rise in competi­
tion, and its corresponding pressure on prices and mar­
gins. As banks obtain more freedom to compete, so do
other organizations obtain more freedom to enter our
previously tightly-controlled and protected business.
Many of these newer competitors do not play by our


Senior Vice President
National Bank of Waterloo
Waterloo, Iowa

ESPITE all the concern for asset-liability manage­
ment, spreads, and maturity analysis, I have a far
greater concern. That is—the quality of your asset
base. Have a firm loan policy with definite guidelines.
Insist—perhaps with a formal check list—on complete
documentation with current, accurate financials.
Right now loan-to-deposit ratios are down and with
rates as they are, new loans are extremely attractive;
but I believe 70 - 80% ratios could be extremely risky.
Inflation policies in the past enabled us to cover static
loans with rapidly increasing deposits. Temporarily

Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983

somewhat more gentlemanly rules. If the history of
other deregulated industries is any guide, this increased
competition will likely result in pressure for lower
prices and smaller margins at precisely the time at
which our costs are rising.
In summary, the banks that prosper will be the
banks that profitably understand and serve their cus­
tomer’s needs. That is as it should be and always has
been. We look forward to working with our banker
friends in turning this challenge into a great new op­


Senior Vice President
Merchants National Bank

HE CHALLENGE facing our banking industry in
1983 is to manage toward continued industry via­
bility while avoiding economic reversals. In other
words, our challenge is Management For Survival!
In an insensitive political and social atmosphere we
must maximize the income on assets while minimizing
the expense of liabilities without presenting any ap­
preciable evidence of profit fallout to the bottom line.
Simply stated, we must maintain public confidence in
our institutions while redirecting their perception of
our ability and desire to meet their financial re­
quirements and individual economic goals. All of this
at a price which they deem reasonable for services
rendered. In this process we must deliver the specific
financial services they want and at a price they are
willing to afford. In the words of that renowned
philosopher and economist, Pogo, “ ...We have sighted
the enemy and he is us!’’
Bank management is the most critical problem fac­
ing the banking industry in 1983. Management con­
sists of two elements.
1. Management Techniques
Management Philosophy
daily bank operation and the manner in which we exist
among all of the competitive and functional forces
which impact our potential for continued banking ex­
This would include non bank competition; Federal
Reserve price competition; other bank competitors;
asset management; liability management; G AP man­
agement; incremental cost of funds; marginal cost of
funds; personnel management; truth in lending; loans
and investments; and Super-NOW!
Market analysis and strategic planning may show a
bank that it cannot be all things to all people and that
there are certain profitable financial services which
that bank can provide better than anyone else serving
the area. A good cost accounting system may show
you how to identify, allocate, and control the costs of
your various services so that they, too, may be made
profitable. Asset liability management techniques
may help to stabilize the volatility of the deposit


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

gathering function and balance to some degree the in- _
come stream of the assets in which these funds are in- ®
vested. Credit analysis and credit review may improve
the quality of the loan portfolio and the investment
portfolio; credit policies and loan administration pro­
cedures may provide an early warning of potential in- f
vestment deterioration. Customer counselling may be
an extremely valuable new business development tool.
MANAGEMENT P H IL O S O P H Y -T he rules by
which bankers as managers integrate their bank into
their sphere of influence which includes the consuming ^
public; the corporate and private productive interest,
and other members of the financial establishment.
These are the criteria which will determine how we
meet the challenges of 1983 and of the future. If we are
to survive as an industry, that survival will be depen- f
dent upon the principles by which we are to be eval­
uated and by which the other members of our society
will determine our value in that society. We must
resolve the following principles:
1. Our ability to regulate our own actions and to pro- #
vide inalienable rules of conduct within the bank itself;
between the bank and other banks; and between the
bank and the general public.
2. Our ability to develop a productivity quotient based
upon line management concepts whereby each person •
during working hours acts only in the interest of the
bank and in the interest of the customers of that bank.
3. A social responsibility acknowledging that the
concentration of wealth in the bank creates a civic
mandate and an opportunity to manage that wealth in #
a manner which will produce reasonably expected re­
turns for the bank and long range benefits to society.
The banking industry is facing structure changes
and operational concepts which have long range impli­
cations and create survival questions for many of its ®
members. There exists a great opportunity for banking
leadership within the financial industry. Our exper­
ience with historical concepts gives commercial bank­
ers a leading-edge advantage. With proper manage­
ment we can perform comfortably and profitably if we •
remember that our competitors have similar problems
and the need for similar solutions.

Vice President
Commercial National Bank of
Peoria, 111.

HE Wall Street Journal recently published an article relating to how badly things were “ Playing in
Peoria.” Not one positive comment could be found in
the article. During 1982, we were subjected to an in­
creasing amount of negativism promoted primarily by
the news media. What does this situation have to do
with ‘ ’the most important challenges facing banks and
bankers in 1983?” Bankers, along with other various
groups of businessmen, are constantly exposed to
negative remarks. After awhile, bankers may tend to
be affected by some of these negative reports that we
hear and read. Negativism promotes negativism.





m Our challenge as banks and bankers is not to lose
^ sight of all the positive events taking place throughout
Central Illinois and our individual communities. Pro­
bably the most obvious was the excellent harvest
season we enjoyed this fall. Although the price of corn
0 and beans in some instances is below production costs,
W the fact remains that agriculture continues to reflect a
very strong balance sheet, with tremendous produc­
tion capacity to feed the hungry nations of the world.
Agriculture will not only survive, but will thrive in the
^ years ahead.
Equally important is the challenge of providing and
meeting the financial needs of our communities and
trade areas. The traditional banking services continue
to be important. A positive response to the numerous,
^ exciting, new marketing opportunities before us is a
must. The computer will continue to become an even
greater part of our everyday lives. We must recognize
this fact and grow with this reality. Correspondent
banks should share their experience, advice and
counsel with their respondent banks on the many
changes taking place in our industry.
How is it really “ Playing in Peoria?” Our major
employer is presently experiencing a strike and an
economic turn down. Some businesses will not survive
0 this recession, but let us not lose sight of the many
businesses that are doing well in light of current condi­
tions. Central Illinois is fortunate to have a new Civic
Center complex, including an arena, convention hall
and theater located in Peoria. The attendance at each
0 event since its opening has exceeded all expectations.
The Twin Towers project, which will provide residen­
tial and office condominiums in the heart of our city, is
becoming a reality. The United Way, excluding the
industrial sector, showed an increase over last year. Of
# particular importance is the fact that bankers of Il­
linois, after 10 years of disagreement on structure,
recently voted unanimously to reunite in one associ­
ation to work for the benefit of all banks.
Knowledgeable, well-trained bankers who are
♦ allergic to the status quo will be the the key to real
growth and satisfactory returns on assets during the
remainder of this decade. As bankers and community
leaders, it is imperative that we accentuate the
positive. This is a challenge we can all meet.


1. December 14th, 1982 the “ Super NOW ” account
is authorized.
2. Continued deregulation of many depository
3. Increased fee income opportunities for services
4. Greater flexibility in packaging and marketing
our products profitably.
5. More creative and profitable lending relationships
are available.
6. Continued improvement upon efficiencies within
our industry.
A deterioration of interest margin continues to be a
concern of many bankers that I speak with. I do envi­
sion a narrowing of interest spreads in the upcoming
year; however, I do not see a need for panic within the
banking industry. Bankers must be able to adapt to
the new environment that is forthcoming if they intend
to survive. As margins narrow, it will be essential that
banks understand and appropriately package and
market all banking services profitably. Therefore, I see
fee income as a major contributor to the banks bottom
Our industry has had an unprecedented record of
profits over the past twenty years. As a whole, the
capital accounts of the banks that make up our in­
dustry are strong. A strong capital base will lead our
industry through the present recession relatively
unscathed. Prudent lending practices and a realistic
assessment of loan repayment ability are essential to
ensure the preservation of bank capital.
The banking industry has had a very unique rela­
tionship with its customers for many years. More than
80 percent of all households have some type of relation­
ship with a bank. As an industry, we must capitalize
upon this definite market penetration and improve
upon our product delivery systems. This unique phe­
nomenon will not necessarily mandate that all banks
will offer the same services. I foresee that we will cease
being all things to all people and, consequently, forms
of specialization will emerge within our industry. Each
bank will have to adapt to its own market place and
become the expert in what it does best. Adaptability
will be the key in 1983.

Vice President
First National Bank
Sioux City, la.

Vice President
National Bank of Commerce
Lincoln, Nebr.

S I LOOK AH E AD to next year, I see many
changes for the banking industry. Some bankers
may refer to these changes as “ challenges” and yet
^ other bankers look to them as opportunities. The adap­
tability of bank management will ultimately determine
the appropriate perspective on these upcoming issues.
A doctoral thesis could be written on the impact to
the banking industry of any of the below listed events.
0 Since brevity is called for I will simply review the op­
portunities ahead of us for the next year.

Federal Reserve Bank of St. Louis

ANKERS are facing more challenges and pro­
blems today than at anytime since the 1930’s.
However, we feel that along with these challenges
come opportunities. It is obvious that the continued
weak economy and banking deregulation will be major
hurdles for all bankers in the coming year.
Maintaining a quality loan portfolio becomes in-


(Turn to page 21, please)
Northwestern Banker, January, 1983

HERE’S an old story about the greenhorn who saun­
tered into the blacksmith’s shop, curiously picked up
a horseshoe the smithy had just hammered out on the an­
vil, and dropped it immediately after burning his fingers.
The smithy asked casually, “ A little hot?” The green­
horn, unwilling to admit to his ignorance, just as casually
replied, “ Nope. It just doesn’t take me long to examine a
horseshoe! ”
Similarly, it doesn’t take long for Bill Greaves to give
you his assessment of the American Institute of Banking
today either, but unlike the greenhorn of that story, his
studied opinion has been shaped at the educational forge
of AIB throughout most of his 32-year career in banking.
Culminating that long-standing interest in AIB and
his dedication to the business of banking, William B.
Greaves was appointed vice president of Region V for
1982-83 by AIB. In that position he is the liaison on be­
half of the national AIB office working with state com­
mittee persons and local chapters in the states compris­
ing Region V —Iowa, Nebraska, North Dakota, South
Dakota, Minnesota and Montana. There are five other re­
gions in the nation, each with a regional vice president
like Mr. Greaves.
Those six regions are identical in coverage to the six
regions established several years ago by the American
Bankers Association, of which AIB now is an operating
division. To Bill Greaves, the adoption of that six-region
system is visible evidence of A IB ’s commitment to true
professionalism in pursuing its goal to bring excellence in
banking education to the more than 300,000 bankers cur­
rently enrolled in AIB studies.
“ I ’m really excited about the rapid progress AIB is
making now,” he says. “ After having been active in AIB
ever since I started in banking, I eased up seven or eight
years ago. I had new job responsibilities, but I really
didn’t like the direction AIB was going. Chapters were
going off in their own directions, and there was a bad
social image, but I knew this was still the best delivery
system available. I thought, as did many others asso­
ciated with the program, that AIB needed direction and
“ A B A leaders also perceived this and said AIB needed
to get its act together. Our headquarters staff agreed and
really moved to build an even stronger, more useful edu­
cational system on the solid foundation of its first 82
years. They began gearing up to bring professional peo­
ple to key positions, training instructors, having subjects
pertinent only to banking today. One phenomenal thing
they did was to write a new textbook, print it and have it
distributed for use in nine months!
“ After ABA restructured AIB into the six regions
identical to the six A BA regions, the state banker associ­
ations began getting very involved and many of them
now have an AIB secretary as part of their staff. Pre­
viously, state associations and AIB both were going out
and giving seminars on the same things. This improved
correlation with them avoids such duplication.”
What really excites Bill Greaves is that a much
broader, consistent and professional approach to contin­
uing career banking education now has emerged under
A B A leadership. “ Just look at the terrific three-step,
clearly outlined professional study that’s available to
any man or woman in banking today,” he points out,
“ to help them advance in their career.
“ First, AIB will be used for entry level bankers. When
the state association secretaries met this year, the new


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

...a solid foundation for
American bankers’ education
A N orth w estern
interview with



Vice President,
United Central Bank, N.A.,
Des Moines
Vice President, Region V
American Institute of Banking

AIB program was presented to them.
“ Second, more experienced bankers then can move in­
to graduate schools run by the state associations, in­
cluding Rutgers. Those students must pass AIB require­
ments to be eligible to move into the graduate schools.
“ Third, after completing the first two levels of train­
ing, ABA will admit those graduates to its executive
management schools.”
All of this planned growth structure “ didn’t just hap­
pen,” Mr. Greaves stresses. “ Surveys of bank CEOs
showed the need for banking education of their employ­
ees, so we know the need is there. It just requires direc­
tion, and AIB and ABA are providing it. Our AIB exec­
utive council meetings and the annual convention itself
are all very professional. This is not a social organization,
its not just a good old fraternity.”
Bill Greaves’ enthusiasm for and allegiance to AIB is
so strong because he is keenly aware of the importaiice of
banking education in his own career. When he joined
United Central Bank in February, 1950, as a messenger,
his background included North High School in Des
Moines and attendance at Drake University. He was en­
rolled almost immediately in AIB classes that same year,
later earning the Standard and Graduate Certificates. He
moved through the Des Moines AIB Chapter chairs, ser­
ving as president for one year, then in 1975 was honored
as “ Banker of the Year” and awarded a lifetime member­
ship in the Chapter.
Throughout this period of years he served also for six
years as AIB associate councilman for Iowa. He found
time also to complete (with honors) the Pacific Coast
Graduate Banking School at the University of Washing­
ton, Seattle.
In addition, he was chairman of the Iowa Bankers AsTHE NEW AIB...
(Turn to page 21, please)


very from Disaster

The sm oke cleared as the sun struggled through the
morning clouds,
Slanting its warming rays across the muted crowds
O f workers who viewed with cold fear and dread
Their once proud home that now lay silent and dead.
B u t on that same, dark gloom y day in late November,
While the ashes grew cold, there rose a glowing ember
That was fanned by human spirit o f eternal hope,
In knowledge that somehow their leaders would cope.
Their trust was well-placed, for their leaders had wisely
To consider emergencies and were so prepared
That when fire struck that fateful Thanksgiving day
and night,
They had a plan that would give the elements a fight.
The leaders gathered and charted a course o f quick
To normal banking service while the remains still
A n d though they knew their plan was sound in its final
Their real hope lay in trusting their com petent staff.
That trust was fulfilled in the working o f their plan,
W hatever the challenge, the only answer was, “I can. ”
So, that looking back to learn why the plan was equal
To the task, the only answer was their loyal P E O P L E !

NE MONTH after the Thanksgiving Day fire that
summarily ejected Northwestern National Bank
w and its parent company, Northwest Bancorporation,
from their landmark building in downtown Minneap­
olis, officials at both corporations find little time to
look back, finding the demanding needs of daily busi0 ness and future planning literally occupying all of their

Federal Reserve Bank of St. Louis

In a rare moment of breath-catching, top officials
did take time out to visit briefly with us during the
bank’s Annual Management Conference and Duck
Dinner in the second week of December. They were uni­
versal in their praise for every employee of Northwest­
ern National, Banco headquarters staff and Banco sub­
sidiaries for the positive response they made to get the
bank and its holding company back in business over
the weekend, ready for regular customer transactions
on Monday morning following the long Thanksgiving
Several points remained paramount in the mind of
Banco Chairman John Morrison, who penned his per­
sonal reflections and appreciation in a full page ad run
in newspapers where Banco affiliates are located.
Speaking of the fire itself, Mr. Morrison said he was
grateful that no one was killed in a fire of such magni­
tu d e-on e that could well be the most costly business
building fire in the nation’s history. He praised the
firefighters and local officials involved for their
yeomen work.
He was able to stress to business and personal cus­
tomers that not one dollar or valuable of any customer
had been damaged or lost. All pertinent records of
customer accounts were safely stored in vaults or on
computers several blocks away, and for safety sake,
those records also were duplicated and stored in yet
another location for backup.
He praised the banks of Minneapolis and St. Paul,
both Banco affiliates and usual competitors who re­
sponded while the fire was in progress with offers of
help, and extended the same praise and thanks to the
many business firms who likewise offered help.
But his greatest accolade, given with the justified
pride of a winning coach, was reserved for the staff
people who gave 100 % in the emergency and made the
bank’s pre-conceived “ disaster plan’ ’ a workable
That disaster plan, revised only a few months before
Northwestern Banker, January, 1983

the tragic fire that literally wiped out the physical in­
terior of the 17-story building, had taken into account
the worst conceivable scenario—total disablement of
the bank’s premises. The plan was in a four-inch thick
book and copies were placed in several bank vaults
around the city for retrieval in the event it should be
needed. While the fire was burning, Chairman Morri­
son and top designated officials gathered in their “ war
room” in a building across the street and began with
page one. “ They hit the street running,” said one Ban­
co officer proudly. “ They started immediately with
page one and by noon of the next day were lining up
space for all of the offices.”
John Beal, president of Banco Properties, Inc.,
which manages all physical properties owned by Banco
and its affiliates, was in charge of getting everyone in
position to take up their usual work. “ Part of our jo b ,”

“The morning after” — a $75 million hangover!

he said, “ is to know at all times what space is available
in Minneapolis, for example, so that in such an emer­
gency we can move right now to nail down the space
needed. We have to know how many people are needed
for a given department, their optimum space require­
ment and how little they can get by with.”
The logistics of re-locating Northwestern National
and Banco people were of such magnitude that it
would take a volume to record properly how the job
was done. The point is, it was done, and customers
were being served on Monday. People are working side
by side in jammed areas; phone lines are constantly be­
ing revised; some people have made a second move al­
ready and most will face another move. “ We figure
that every department will move at least once by the
third quarter of 1983,” Mr. Beal states, “ and then we
hope that will be it for three years.”
The bank building has been so badly damaged that
engineers still are trying to determine whether it is
sound enough to be remodeled, whether it’s econom­
ically feasible to do so, whether smoke damage will
make the premises undesirable, or if a completely new
building should take its place, considering the needs of
Banco and the bank in the years ahead. Those hard de­
cisions still lie in the future.
The Minneapolis Fire Chief is temporarily using a
$75 million loss figure to describe the fire. The building
was insured with regular commercial insurance com­
panies. St. Paul Fire and Marine Insurance co., the
Banker, January, 1983
Federal Reserve Bank of St. Louis

principal underwriter, already has announced its loss f
on the building is $5 million, and that the balance of W
the loss has been farmed out to a number of other in­
surance companies through reinsurance contracts, in
keeping with sound, traditional insurance under­
Mr. Beal said, “ we are self-insured in some areas but
we have outside insurance on all our Banco buildings.
Total coverage on business interruption insurance, for
example, is nearly impossible. We are well insured but
we know it couldn’t be totally insured for there are too
many unknown factors.”
Asked if other Banco affiliates have a similar dis­
aster plan, Mr. Beal said he couldn’t answer categor­
ically, “ but they will now, I ’m sure!”
One item of interest to some people was the damage
or loss involving Northwestern and Banco’s extensive
art collection which graced the walls of so many of­
fices. Mr. Beal offered a ray of hope in that direction,
stating that although some were destroyed by fire, it
appears at this time that much of what was on the
lower floors occupied by the bank itself may well be
reclaimed by restoration to remove smoke and water
damage. Perhaps the most nostalgic of Northwestern’s
art, the Clarence Chaney collection, may have been
saved from the fire itself. Mr. Chaney was well-known
nationwide as vice chairman of Northwestern and head
of its trust department. His watercolors, especially of
the Northwestern Building at Christmas time, which
appeared on the bank’s Christmas card for many
years, apparently is safe in a vault.
Mr. Beal offered a bit of advice to all banks in regard
to their property. “ How you handle your property and
building affects your balance sheet. People who know
how to plan for space, how to negotiate leases, can be
invaluable. We had no surprises for this operation. We
knew how many people we had, the space they needed,
and what space was available. It was a matter, then, of
Mr. Beal echoed Mr. Morrison’s evaluation of the
staff. “ It ’s an amazing experience,” he recounted, “ to
see what people can do in an emergency like that. If
you measure work done by so many hours, they hit
200%. It is disruptive to have to move time and again
as we are having to do, but some people who worked together many years, but became isolated through work­
ing conditions, now are working side by side again and
getting reacquainted and finding a renewed spirit of
cooperation as part of a team. We are definitely a bet­
ter company for having lived through this bad experience.”
He said there is no way to avoid mistakes complete­
ly when going through a painful exercise such as relo­
cating under pressure, “ but I can say that all of ours so
far have been little ones, thanks to the advance planning. The one thing you can’t plan for is living through
the experience itself the first time. The event itself is
traumatic for the insured, whereas it’s the daily bus­
iness of the insurance company and they have experts
who have been through dramatic fires like this a dozen
times. But, basically, we think we planned for and did
the right things. Our main decisions were correct. I can
repeat—think twice about your real estate before you
overlook its importance. Looking back on it, our entire
operations were uprooted because a big piece of real
estate was hurt. ’ ’














RMA Midwest Chapter Officers Pictured at Convention

FOUR high-ranking officers of the Chicago Chapter of Robert Morris Associates, and their spouses, were among the more than 1,400 peo­
ple who attended RMA’s recent 68th annual Fall Conference in Bal Harbour, Fla. Left to right are: Chapter Pres, and Mrs. John A.
Greathouse, admn. v.p., Amalgamated T & S Bank of Chicago; Chapter First V.P. and Mrs. F. Dean Long, The Northern Trust Company,
Chicago; Chapter Second V.P. and Mrs. Richard K. Charlton, The First National Bank of Chicago; and Chapter Treas. and Mrs. Robert T.
Lincoln, v.p. The Bank & Trust Co. of Arlington Heights.

LEFT— Missouri Valley Chapter Pres, and Mrs.
Bradley L. Burt, v.p., Bankers Trust Co., Des
Moines, la.

RIGHT— Midlands Group Chmn.Ron Schneider,
v.p., U.S. Natl. Bank of Omaha, with Siouxland

Group Chmn. and Mrs. Truman D. Phelan,
Northwestern Natl. Bank of Sioux Falls.

•Challenges facing banks...
(Continued from page 17)







creasingly difficult. Due to the weak farm economy, we
do not see a major improvement during the coming
year. This weakness has had an effect on many of our
business loans. Currently, loan demand is weak and
our forecast doesn’t indicate much change through the
first half of 1983. Lower interest rates and a slowly im­
proving economy will help, but this will take time. We
are working closer than ever before with our customers
to help them through this period of stress.
The new HIFI Money Market account will place
earnings under additional strain. Undoubtedly, this
will increase costs on the liability side of the balance
sheet and continue to put pressure on declining in­
terest margins. However, the additional funds which
should be available from HIFI accounts can be put to
good work with the addition of qualified loans and prudent investing. This is an opportunity for alert money
managers to put local money back into the local econ­
omy. Because we feel that the HIFI account will in­
crease our costs, we are making a concerted effort to in­
crease off balance sheet income. We have also become
more aggressive in cost control through our budgeting
Knowing your costs, careful budgeting and ade­
quate planning were never more important. No doubt
there will be financial institutions which will price
their HIFI accounts too highly. This will tend to put
added pressure on all of us.
Federal Reserve Bank of St. Louis

One thing is certain, bankers will be forced to
become better managers. The successful managers will
turn the challenges into opportunities.

The new AIB...
(Continued from page 18)
sociation education committee in 1974-75. In that posi­
tion he was a member of the committee which founded
the Iowa School of Banking at the University of Iowa, a
two-week summer school for management level studies.
He served on its advisory board from 1975 to 1981, was a
director in 1981, and served on the faculty from 1978 to
the present time.
His educational interests continued in his membership
in Robert Morris Associates. He is a past chairman of the
Iowa Group of RMA and currently is a director. His solid
training in operations led to his promotion as head of the
UCB credit department in 1962, the post he held until
joining the correspondent bank department at UCB in
1971, where he now serves as vice president working with
banks throughout the state.
Mr. Greaves pays genuine tribute to the founders and
builders of AIB. “ There’s nothing wrong with the deliv­
ery system developed earlier,’’ he emphasizes. “ Now we
have new times and a need for faster-moving education.
We intend to provide it for the career benefit of all
bankers and to build a stronger banking system that can
fullfill our ultimate goal—providing professional banking
service to the American public.’ ’
Northwestern Banker, January, 1983

paign-Urbana financial institutions.^
Through easy answer, these institu­
tions will offer their customers
24-hour access to their accounts for
many routine banking transactions.

Springfield Banker
Retires as CEO

HE special committee for the se­
lection of the new Illinois
Bankers Association Executive Vice
President who will serve as Chief
Staff Administrator of the merged,
IB A/AM BI organization has an­
nounced the se­
lection of Wil­
liam J. Hocter
for that post.
The com m it­
tee, which has
been working on
this project for
several months,
was instructed
to make a deci­
sion by the IB A /
AM BI negotiating team. The com­
mittee employed a professional
search firm and an industrial psy­
chologist to analyze the job and pro­
vide a detailed recommendation.
The analysts were unanimously se­
lected by the committee. The special
selection committee had decided
that it would accept the recom­
mendation when presented if the re­
port was comprehensive in its eval­
uation. The committee expressed the
highest praise for both individuals
being considered for this job. Both
individuals were highly qualified

and capable of handling the respon­
sibilities of the post.
The evaluators were charged with
making a specific recommendation.
The recommendation was then ac­
cepted as previously agreed upon by
the committee. The committee con­
sisted of Donald R. Lovett, chair­
man and president, Dixon National
Bank; Charles C. Wilson, chairman,
First National Bank of the Quad
Cities; and C.C. Hope, Jr., vice chair­
man, First Union National Bank,
Charlotte, N.C.
Mr. Hocter joined the IB A as ex­
ecutive vice president in 1977.
Previously he served as vice presi­
dent and economist of the Federal
Reserve Bank of Cleveland and was
with the Chicago Federal Reserve
Bank for seven years.
Mr. Hocter has an M BA in busi­
ness economics from Xavier Uni­
versity and a doctorate of business
administration from Indiana Uni­
versity. He has taught various eco­
nomic courses at Loyola University
Graduate School of Business and
the Indiana Graduate School of Bus­
iness. He also is a member of the
state association division executive
committee of the American Bankers

President Named at
First National

degree and attended the School of
Business at the University of Pitts­
burgh. He and his wife, Nancy, are
the parents of three children.


Malcolm E. Lambing, Jr., was
named president and chief executive
officer of the First Galesburg Na­
tional Bank and Trust Company ac­
cording to Harold Nichols, board
chairman and acting chief executive
officer. Mr. Lambing was previously
president and chief executive officer
of the First National Bank of Penn­
sylvania in Erie. He had been associ­
ated with the Erie bank since 1966
serving in various capacities prior
to becoming chief executive officer
in 1975.
Mr. Lambing graduated from
Dartmouth College with a B.A.

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

Clearing House Forms
Electronic Network
The Champaign-Urbana Clearing­
house Association has announced
the formation of an electronic bank­
ing network which will utilize the
services of the easy answer system
of Springfield, Illinois. The new net­
work will be marketed to consumers
under the name easy answer. Initial­
ly, easy answer will link the auto­
matic teller machines (ATMs) and
data processing centers of Cham­


Walter R. Lohman, chairman of
the board and chief executive of­
ficer, the First National Bank of®
Springfield, has retired as CEO. Mr.
Lohman will continue to serve as
chairman of the board of directors of
the bank, and president and director
of Firstbank of Illinois Co., the®
holding company for First National
Bank and Firstbank Mortgage Co.



John E. Brubaker, president, w ill^
become president and chief exec­
utive officer effective December 1 .
Mr. Lohman’s banking career
spans 42 years. He joined the Plea­
sant Plains State Bank in 1940 and 0
rose to vice president of that organ­
ization. In 1946 he moved to the
State Bank of Ashland and was
named president of the bank in
1957. He was educated in Ashland 0
and graduated from Illinois Wes­
leyan University.
Mr. Lohman joined FNB in 1962
as vice president and was elected a
director in 1964. He was elected 0 j
president in 1967, and chairman of
the board in 1977. When Firstbank
of Illinois Co. was formed in 1975,
Mr. Lohman was elected president
and a member of the board of direc- 0
Mr. Brubaker joined First Na­
tional as vice president in the com­
mercial lending division in 1976. He
was named executive vice president 0
in 1977 and was elected to the board
of directors in 1979. He was elected
secretary of Firstbank of Illinois Co.
in 1978. In 1981 he was elected vice
president, treasurer, and a director 0
of the holding company.
A native of Waggoner, Illinois,
Mr. Brubaker graduated from Farmersville High School and earned a
B.S. degree in finance from the 0
University of Illinois in 1962.

Illinois News

Aurora Bank “ Continued”


Mr. Marlowe stated that the board
of directors and management of First
Security endorsed the plan, and will
recommend to their shareholders that
they accept the Old Second Bancorp
offer. Completion of the plan is sub­
ject to approval by the shareholders
of First Security and by regulatory
Mr. Benson and Mr. Marlowe ex­
pressed that the merger would pro­
vide the means for both organizations
to provide improved financial services
to present and future customers in the
Aurora area.

Promotions Announced


LD Second National Bank of
Aurora recently unveiled the
24,000 square foot “ continuation”
of its historic 1925 building. Along
with the original building’s 31,000
square feet and the 1977 drive up
building’s 35,000, it brings Old Se­
cond’s under-roof area to 90,000
square feet.
President James E. Benson, of
the $160 million 112 -year old bank,
chooses the term “ continuation” as
architect Louis C. Cordogan, AIA,
has achieved a virtual extension of
the George Grant Elmslie structure
of nearly a half-century ago. Mr.
Cordogan not only continued the
lines of the Prairie School building
of Frank Lloyd Wright’s drawing
board colleague, but sought out, as

well, the same Roman brick, roof
tile, terrazzo and other building
Included in the “ continuation” is
an enlarged lobby area with eight
new windows bringing teller sta­
tions to 15. Two of these will be for
special services, such as tax pay­
ments, license plates, money orders,
gift checks and cashiers checks. For
privacy, commercial customers will
have the convenience of new con­
ference rooms, where they can
discuss loans and business services.
Here, too, brokers can close real
estate deals.
The trust department will now
have its own computer system,
separate from the bank’s main

Joins First National
Bank of Skokie

Merger Agreement
Reached in Aurora

Oscar H. Gallun has joined the
First National Bank of Skokie as
vice president of commercial bank­
ing. He will be
w o r k i n g wi th
both merchants
and m a n u f a c ­
turers in the
Skokie area.
M r. G al l u n
banking educa­
tion from the
University of
Wisconsin, Rut­
gers University and the Stonier
Graduate School of Banking. He was
previously associated with the Glen­
view State Bank and the First Na­
tional Bank of Neenah, Wisconsin.

Old Second Bancorp, Inc. and First
Security Bank of Aurora recently an­
nounced that a tentative agreement
had been reached for Old Second to
acquire all of the stock of First Securi­
ty. The proposed transaction was
revealed in a joint announcement by
James Benson, president of Old Se­
cond Bancorp, and William Marlowe,
president of First Security Bank of
Aurora. Old Second Bancorp is the
holding company for the Old Second
National Bank of Aurora. First
Security is located at 1350 North
Farnsworth in Aurora.
Old Second Bancorp will offer First
Security shareholders the option of a
cash payment for their shares, or they
can elect to exchange First Security
shares for Old Second Bancorp
Federal Reserve Bank of St. Louis

Donald D. Thornburg, chairman
and president, Sears Bank and
Trust Company, has announced the
following promotions:
James Harris
to senior vice
president, trust
Receiving pro­
motions to assis­
tant vice pres­
ident were: Lee
Fields and Ali­
son Goss in the
personal bank­
ing division, and
Daniel Ropas in operations.
Advancements in the commercial
banking division went to W. Thom­
as Fernald, commercial loan officer;
Kathleen Kemp, real estate loan of­
ficer, and Tammy Pechter, corre­
spondent banking officer.

Three Promoted at Elmhurst
Frank C. Rathje, president of
Elmhurst National Bank, has an­
nounced the promotion of three of­
ficers: Debra A. Arenson, manager of
administrative services, operations
division; Peter S. Groninger, funds
management officer, asset/liability
divsion, and Donna Peltzer, opera­
tions officer.
Mrs. Arenson joined Elmhurst Na­
tional Bank in 1980 as administrative
assistant responsible for the develop­
ment of policy and procedure manuals
for the bank, and has assisted in the
bank’s conversion to an in-house com­
puter system.
Peter S. Groninger joined the bank
in 1982 as funds management assis­
tant in the asset/liability division.
Northwestern Banker, January, 1983

Perhaps it’s happened to you.
Just when you had built up a
working relationship with your
correspondent banker, the
bank moved him up the corporate
ladder and off your business.
All too often, a large bank
can be insensitive to the needs of
small respondent banks. Yet
smaller banks that can give you
plenty of personal attention can’t
always give you the expertise
and the clout you need. And
you’re caught in the middle.
You do, however, have an
alternative: Midland National

Bank. We’re big enough to
handle any of your correspondent
banking needs. But we’re still
small enough to respond to your
individual concerns.
We’ve deliberately kept
our Correspondent Division
small, so that you can deal

M idland National^
BANK Of Minneapolis
M a in B a n k -4 0 1 2n d Ave. S.
G o v ’t C e n te r O ffic e -3 r d Ave. S. a t 6 th S t.
S t. L ouis P a rk B ra n c h -3 6 0 1 P a rk C e n te r B ivd.
Member Federal Deposit Insurance Corporation

directly with a decision maker.
Each of our correspondent
bankers has from 12 to 25 years
of experience in the business,
so they thoroughly understand
the needs of respondent banks.
They take the time to personally
call on both the respondent bank
and the respondent’s customers.
If you’re tired of banks
that are too large or too small,
come to Midland Bank.
You’ll develop a close working
relationship with one of our
correspondent bankers. Not one
after another.

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

ing officer. He graduated from Iowa
State University with a degree in
agricultural business.
Prior to joining the bank, Mr.
Zahler was a participant in North­
west Bancorporation’ s regional
credit training program and was as­
signed to the Agricultural Credit
Company in Sioux Falls.

Joins Dundas Bank
New President For
Rochester Bank

Edgar M. Morsman, Jr., has been
named president and chief executive
officer of North­
western Nation­
al Bank of Ro^ Chester. He suc­
ceeds John R.
Cochran, who
has been elected
president of U.S.
q National Bank
of Omaha, Ne­
braska. Both
banks are af- E.M. MORSMAN JR.
filiates of Northwest Bancorporaf tion.
Mr. Morsman spent 11 years at
U.S. National Bank of Omaha, ris­
ing to senior vice president and
manager of the commercial banking
• division. He then joined the cor­
porate staff of Northwest Bancorporation in 1980 as vice president,
loan administration.
A native of Omaha, he is a grad0 uate of Stanford University and the
Stonier Graduate School of Bank­
ing. He is also a member of the
board of directors of The Robert
Morris Associates.

* Luverne Facility
Receives Approval




Myron Kruse, president of the
Beaver Creek State Bank, announced
that the board of directors has been
notified by State Banking Commis­
sioner Mr. Michael J. Pint, that its
bank facility application for Luverne has been approved. Mr. Kruse
stated that the bank has already
purchased the building and building
site located on Hwy #75 South
where the HyVee Grocery Store had
been located. An architect has been
commissioned and remodeling plans
are being drawn up.
Plans call for a full service bank
with drive-up window, safety deposit boxes and full banking hours.
Mr. Kruse also announced that at
Federal Reserve Bank of St. Louis

the present time he will be the senior
manager of the Luverne facility and
Mr. Leonard Scholten will be the
senior manager of the Beaver Creek

Elected to Board
Tim V. Stern, president, North­
western Bank & Trust Co. of St.
Cloud, announced last month that
Dr. Brendan J. McDonald, president
of St. Cloud State University, has
been elected to the board of direc­
tors of Northwestern Bank. Dr. Mc­
Donald earned a bachelor of science
degree from St. Cloud State Uni­
versity, master of arts from the Uni­
versity of Minnesota and a Doctor of
Philosophy degree from Michigan
State University.
Prior to coming to St. Cloud State
University, he was president of
Kearney State College, Kearney, Ne­
braska, for ten years and held other
administrative positions at St. Cloud
and Mankato State Universities.

Faribault Banker Dies
Richard W. Peavey, president of
First N orth w estern
Faribault, for 24 years, passed away
November 27. Mr. Peavey began his
career with the Midland National
Bank of Minneapolis and returned
to his native Faribault in 1956 to
become president of First North­
western Bank. In 1980 he became
board chairman of the bank and
served in that capacity through
1981. A graduate from the Wharton
School of Finance and Commerce,
Peavey was the third generation
member of a family engaged in
banking in Faribault since 1885. A
son, Roger, is executive vice presi­
dent of Farmers and Merchants
State Bank, Balaton, Minn.

New Albert Lea Banker
David A. Zahler has joined the
First Northwestern National Bank
of Albert Lea as an agricultural lend­

Arnold Johnson has joined the
Dundas State Bank as vice presi­
dent. He comes to the bank with 34
years of banking experience and
most recently served as president of
the International Falls State Bank.
Previously he was vice president of
the First National Bank of Crookston for 12 years.
Mr. Johnson is a graduate of the
Central States Graduate School of
Banking and is a past president of
the District 9 Minnesota Bankers

Bloomington Promotions
Community State Bank board
chairman, Clifford Jerpbak, an­
nounced the advancement of Paul B.
Carter to assistant vice president
and Mark J. Frey to assistant
Mr. Carter recently joined the
bank’s commercial loan department
and has previous lending experience
with a Hallock bank.
Mr. Frey recently joined the in­
stallment loan department and also
works with real estate loans.

Joins Long Lake Bank
State Bank of Long Lake an­
nounced the appointment of Michael
J. Byrne as vice president and com­
pliance officer, and in that capacity
will a l so be
responsible for
all commercial
loans. Mr. Bryne
comes to Long
Lake after serv­
ing as vice presi­
dent of First Na­
tional Bank of
Mr. Byrne has
been in banking
nearly ten years and is a graduate of
the University of Wisconsin, Super­
ior, and also of the Minnesota
School of Banking at St. Olaf Col­
lege, Northfield, and Midwest Bank­
ing Institute at University of Min­
nesota, Morris.
Northwestern Banker, January, 1983


Bank has completed its move to
the former Farmers and Mechanics
Savings Bank Building at Sixth
Street and Marquette Avenue, 55402.
With the formalization of the new
address comes a new main telephone
number: (612) 341-5600.
The move centralizes all the de­
partments of Marquette National
Bank, which acquired Farmers and
Mechanics in Februrary, 1982. In
addition, the building’s retail lobby
is being remodeled prior to the oneyear anniversary of the merger.
Additional F&M Marquette down­
town locations include the recently
expanded skyway banking facilities
in the International Multifoods
building, the skyway banking facili­
ty in the IDS Center and a lobby
facility on the main floor of the IDS
Center at Seventh Street and Mar­
quette Avenue.
F&M Marquette’s drive-through
facility is at Eighth Street and
Fourth Avenue. A new drive-through
facility will soon be completed in
Centre Village at 425 S. Seventh
Other F&M Marquette National
Bank detached facilities are the
Southdale and Brookdale offices.
* * *


First Computer Corporation, the
data processing subsidiary of First
Bank System, Inc., recently an­
nounced the election of Delroy R.
Hayunga to president and Terrence
P. Sandvik to executive vice presi­
dent and chief operating officer.
Mr. Hayunga joined First Compu­
ter Corporation in 1982 as senior
vice president of the computer ser­
vices division. Prior to that time he
was associated with Bankers Trust
Company, New York, where he served
as head of the computer service divi­
sion. Mr. Hayunga holds a bachelor
of arts degree from Carleton College
and a master’s degree from Union
Theological Seminary.
for FRASER Banker, January, 1983
Federal Reserve Bank of St. Louis

Mr. Sandvik joined the company
in March, 1981, as vice president
and manager of systems research
and development, and was promoted
to senior vice president in 1982. He
was previously associated with
F&M Marquette National Bank
where he served as vice president of
administrative services and man­
ager of data processing. Mr. Sand­
vik is a graduate of Mankato State
* * *
513 executive officers attended the
Minnesota Bankers Association ex­
ecutive officer workshops, according
to John Ingebrand, M BA president
and president of Kanabec State
Bank, Mora, Minn. The sessions cov­
ered industry change, M B A ’s legis­
lative objectives, the newly-comple­
ted strategic plan, and the new de­
posit instruments authorized by the 1981. Mr. Palmer joined F&M Mar­
Garn-St. Germain Act.
quette in February, 1982, in the
* * *
trust department. He was previous­
ly with American National Bank
Carl L. Pohlad, president of F&M and Trust Company of St. Paul and
Marquette National Bank, has an­ is a graduate of Drake University
nounced the following promotions:
College of Law.
Lisa Newell to
Susan Sickles has been appointed
personal bank­
correspondent bank officer. Ms.
in g
Sickles joined F&M in 1980 in the
Christopher Rye
investment department and became
to c o n t r o l l e r ;
an investment officer specializing in
Steve Wise to
money market instruments. Prior to
commercial loan
joining F&M Marquette, Ms. Sickofficer; John Pal­
les was with Dauphin Deposit Bank
mer to assistant
and Trust of Harrisburg, Pa. She is
vice president,
a graduate of Keene State College in
trust d e p a rt­
New Hampshire.
ment, and San­
* * *
dra Sickles to correspondent bank
Carl H. Pohlad, president of F&M
Ms. Newell joined the bank in Marquette National Bank, has an­
February, 1981, and has responsibil­ nounced the promotions of Pam
ity for the senior citizen program Wilson to trust officer and Dale
and is also a supervisor in the per­ Jorgenson to vice president and
sonal banking area. Mr. Rye joined trust officer.
Mr. Wilson joined the bank in
the bank in 1978 as cashier and Mr.
Wise joined the bank in 1980 as a 1975 and was promoted to trust ad­
credit analyst and was promoted to ministrator in 1978. She is a gradcommercial loan representative in uate of the National Graduate Trust









Bob Jacobson

* Speaks Bank Stock


When you want to buy a bank, how can you put
together the financing package that’s best for
Someone who understands bank stock financing and who cares about independent commu­
nity banks can help answer your questions.
That’s Bob Jacobson 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, 1983


Minnesota News



School of Northwestern University.
Mr. Jorgenson will manage the
administrative and operations areas
of the trust department. Prior to
this promotion he held the position
of manager of the depositor services
division of F&M Savings Bank. He
joined F&M Savings Bank in 1972
and holds a masters degreee in
Business Administration from the
College of St. Thomas in St. Paul.
* * *
Directors of the Northwestern
National Bank of St. Paul recently
announced the election of four em­
ployees to officer status, according
to Larry D. Buegler, chief executive
officer and chairman of the board.
Christopher J. Diegnau was
elected operations officer. Mr.
Diegnau joined the bank 1977 and
has worked in a variety of opera­
tional positions. He is presently in­
vestment services supervisor.
Janice M. Ablan was elected
operations officer. She joined North­
western in 1981 from Midwest Fed­
eral Savings and Loan where she
was assistant branch manager. She
is presently consumer loan servicing
supervisor in the operations divi­

David E. Bricker has been elected
trust investment officer in the funds
management division. Mr. Bricker
recently joined Northwestern from
the First National Bank of Topeka,
Theresa M. McCormick has been
elected to executive/professional
loan officer in the capital banking
division. She joined Northwestern in
1982 from the American National
Bank of St. Paul where she was com­
mercial loan representative. Ms. Mc­
Cormick is currently executive/pro­
fessional loan representative in the
executive/professional banking de­
partment of the capital banking
* * *
The board of directors of First
Bank System, Inc., recently elected
the following vice presidents: Larry
Gregerson, Fred Squires and Phillip
Mr. Gregerson has been associ­
ated with FBS
since 1973 when
he joined the
commercial lend­
ing department
of First Bank
M inneapolis,
where he served
in his most re­
cent position as
head of the con­
t r a c t o r s divi-




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




The First Bank System board
also announced the following new ^
assignments for assistant vice pres- *
idents in the metropolitan division:
Bruce Brinkmeier to consumer
delivery; Julie Cornelius to delivery
network; David Hetterick to ^
marketing research, and Diane
Marien to product development.
Receiving advancement to assis­
tant vice president status were:
Melissa Fogelberg, legal counsel; q
Mark Paynter, regional financial
planning; Evelyn Piano, regional
product development; Cheryl Rantala, corporate compliance, and
Brenda Reimnitz, strategic delivery q
* * *





sion. He will be responsible for
credit advisory in the regional divi­
Mr. Squires, who joins regional
operations, joined the data process­
ing subsidiary of FBS in 1968. His
most recent position was vice presi­
dent in the correspondent banking
department of First Bank Minne­
Mr. Webb has been associated
with FBS since 1980 when he joined
the marketing division as advertis­
ing manager. He was promoted to
assistant vice president and director
of communications in 1981 and will
now be assigned to regional con­
sumer marketing.

John A. Rollwagen, chairman and
chief executive officer o f Cray
Research, Inc.,
has been elected
to the board of
National Bank
of Minneapolis.
Mr. Rollwagen,
a native of St.
Paul, jo in e d
Cray Research
in 1975 as vice J.A. ROLLWAGEN
president-finance. Mr. Rollwagen
was elected chairman of the board of
Cray Research in 1981. He works
with the company’s founder, Sey­
mour Cray, in maintaining Cray
Research’s ability to provide techni­
cal leadership in the development of

Minnesota News

Midland National Sponsors
Correspondent Banking Seminar

Associate Publisher
officers of 67 Minnesota banks attended the
Midland National Bank sponsored
correspondent banking conference
held in Minneapolis November 29.
Newly elected Midland President
Ernest Pierson welcomed the bank­
ers to the one-day seminar which
was themed “ Banking Today.”
Seminar topics ranged from an in­
sight into “ futurism” in all facets of
society to the role of the Min­
neapolis Grain Exchange in the
banking environment of today.
There were also reviews of asset and
liability management and the advantages of lease investments.
Minneapolis Grain Exchange
President Paul Tattersall offered a
history of the Grain Exchange and
detailed how the function of the Exchange will change in response to
changes in production and agricul­






x e c u t iv e

tural marketing. He discussed the
rapid growth in the futures market
and advised the bankers to consider
the advantages of hedging as a
means of protecting the crop prices
for their ag borrowers. He added
that it is very important for the
banker to know the producers bro­
ker and to become involved in a
three-way agreement between the
broker and producer. Farmers
should be aware that they may get
margin calls during the term of the
hedge and should understand the
costs involved in dealing with them.
Mr. Tattersal views hedging as a
marketing alternative which con­
tributes to the producer becoming
more profit conscious.
In his review of asset and liability
management, Ed Wehmer, director,
Financial Industry Division, Plansmith Corporation, pointed to the
many options now available to
smaller banks in the market for com­
puter hardware and software pro­


grams. He cautioned the bankers to
be aware of the special requirements
of their individual bank when de­
ciding on purchasing computer
packages. He also emphasized the
advantages achieved from a well de­
signed asset/liability model which
included new marketing strategies,
effective pricing tactics and pro­
fitable participation in hedge risk in
the interest rate futures market.
The changing role of the ag lender
was examined by a three member
panel consisting of Clint Kurtz,
president of Citizens State Bank of
Norwood; Arlan Tengwall, agricul­
tural expert and senior vice-pres­
ident of Northwest Bancoporation,
and John Anderson, president of
Anderson Farms, a large diversified
farming operation. Mr. Tengwall
urged the bankers, as community
leaders, to present a positive at­
titude towards the ag economy and
to maintain the proper perspective
on troublespots. He stated that
40-50 per cent of all producers are
not borrowers and that fewer than 3
per cent will go out of business dur­
ing 1983.
Despite recent record low net
farm incomes, he feels that 1983 will


LEFT—Speakers at Midland National Bank conference included: Paul Tattersall, pres., Minneapolis Grain Exchange; Earl Joseph, prof.,
Univ. of Minnesota, and Ed Wehmer, dir., Plansmith Corp. RIGHT— Ag panel members included Clinton Kurtz, pres., Citizens St. Bk., Nor­
wood; John Anderson, Anderson Farms, Belgrade, and Arlan Tengwall, sr. v.p., Northwest Bancorp., Minneapolis.


LEFT— Mike Bodeen, a.v.p., Midland; Stan Peterson, v.p., Midland, with Marion and Martin Haar, chmn. & pres., Alexandria Bk. & Tr., and
Ernest Pierson, pres., Midland National. RIGHT— Dick Erickson, a.v.p., Midland, welcomes Herb Lund, pres., Security St. Bk., Albert Lea
and his wife Mona on board for tour of recently completed construction projects in downtown Minneapolis.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983


When McNally Industries
needed a loan, we
moved into high gear

Our overline participation
has been instrumental
in their success.
W hen a customer looks to you for a loan, he
doesn't want to hear that your loan committee
meets once a week. He wants a fast response.
And, when the loan requires participation, you
expect the same kind of response from your
At First Bank Saint Paul, we provide
comprehensive credit services to our
correspondents. Each of our calling officers is
trained to be as responsive as you are in meeting
and understanding your customers' borrowing
For example, when McNally Industries, a
precision gear manufacturer, decided to acquire a
new product line, they needed a decisive loan
response from First Bank of Grantsburg— not a
"wait and see" approach. That's why their bank
came to the Correspondent Banking Division of
First Bank Saint Paul. They knew they would get
prompt and total support.


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

Our correspondent banking team is headed by
Dale Hanson. Since 1968, Dale has been the
head of a commercial loan division and a member
of the senior loan committee. His experience has
taught him the value of total support for you and
your customer. And if that means joining you and
the calling officer in the field, to better understand
their needs, he'll do it.
It is this kind of concern from Dale Hanson and
our calling officers that sets First Bank Saint Paul
apart. W e have the resources and lending
capabilities to help your customers grow. And
when your customers grow, we all benefit.
If you are interested in a correspondent
banking relationship that is committed to your
customers as you are, call our Correspondent
Banking Division at 291-5585.

First Bank Saint Paul
Member First Bank System
Correspondent Banking Division
332 Minnesota Street
Saint Paul, Minnesota 55101



- Leit to right Cornrespondent Bankers Dale

Mpl Mishou ol First Bank
Ups the needs oi McNally
sident, A1 Sorensen, and
irst Bank of Grantsburg.

Federal Reserve Bank of St. Louis

, |
4 t




Minnesota News

show signs of economic recovery on board chairman in 1961 and was
the farm, however, he does not feel honored by a “ Norman Tallakson
that the recovery will be complete Recognition Day—50 years in Bank­
until 1985. He advised the bankers ing” open house.
to communicate with the agri-bus­
During his banking career, Mr.
iness community and to become Tallakson served as chairman of the
more involved in one to one com­ County and District U.S. Savings
munication with borrowers. The Bond committee and was a founder
shrinking net worth of some farmers and charter board member of the In­
will require financial counseling and dependent Bankers Association of
it is up to the banker to initiate America. He also served on the
those confrontations.
council and various committees of
Mr. Kurtz followed by encourag­ the Minnesota Bankers Association
ing lenders to understand the credit and the Kandiyohi County Bankers
line of the farm borrower and to be Association.
more knowledgeable of his farm
operation. He also said that it is im­
portant to establish a sincere com­ Pint Rejoins 9th Fed as
mitment to ag banking. It is equally Chief Financial Officer
important for the bank staff and
Michael J. Pint, Minnesota’s com­
management to be involved in this missioner of banks since 1979
dedicated commitment.
and chairman of
Following the formal portion of Minnesota State
the seminar the bankers were hosted Commerce Com­
to a reception which featured com­ m i s s i o n , h a s
ments by Ray Scott, veteran sport- b e e n
scaster and voice of the Minnesota senior vice presi­
dent and chief
financial officer
New Maplewood Officers
of the Federal
Jack Hillstrom, president, Maple­ Re s er v e Ba nk
wood State Bank, recently announced of Minneapolis,
the advancement of Michael Rue- e f f e c t i v e J a n ­
ther to vice president in charge of uary 3.
Mr. Pint was on leave from the
the commercial loan department and
Brenda Rossback to assistant vice Federal Reserve Bank during his
president in charge of installment tenure as state commissioner of
banks. E. Gerald Corrigan, presi­
dent of the Minneapolis Fed, said
Mr. Pint was "an outstanding officer
Owatonna Bank
prior to his joining the state. He
Promotes Three
further distinguished him self —
The board of directors of First and the state — in his capacity as
Bank Owatonna announced the fol­ banking commissioner. All of us
lowing promotions: Tim Wenzel to at the Fed are very pleased to have
assistant vice president and agri­ him back.”
As senior vice president and chief
cultural loan manager; Lynn Drager
to sales finance and installment loan financial officer, Mr. Pint will have
manager, and Roger Stewart to in­ senior responsibility for the bank’s
accounting, planning and control,
stallment loan officer.
Mr. Wenzel joined the bank in statistical reporting, and human
1979 on a work-study internship resource departments. In addition,
program with the University of Min­ he will also have senior responsi­
bility for the bank’s administrative
services, building, and protection
departments. He will be the bank’s
W illmar Banker Dies
first designated chief financial
Norman Tallakson, well known officer.
Minnesota banker and retired presi­
Mr. Pint joined the Fed’s examina­
dent and board chairman of the tion department in 1967. He was
bank of Willmar, died November 27, named an assistant vice president in
1982, at the age of 92. He began his the supervision and regulation de­
banking career as a clerk for the partment in 1973 and subsequently
Kandiyohi County Bank, which lat­ served as an officer in securities
er merged with the Bank of Willmar and personnel. He is a graduate of
in 1911. He retired from the bank as the State College of Iowa, Cedar
Banker, January, 1983
Federal Reserve Bank of St. Louis

Falls, and attended the Stonier Grad- f
uate School of Banking, Rutgers

To Head Glenwood
Bank Insurance Agency


Keith Gilbertson has joined the
Glenwood State Bank as manager of
the Glenwood State Agency. He re­
places Tom Winter, who left to head Q
the insurance agency of the First
National Bank of Pipestone.
Mr. Gilbertson was formerly with
the Transamerican Insurance com­
pany and is well known in the in- •
surance field.

Joins Anoka Bank
Phyllis Zunker has been ap- ®
pointed by State Bank of Anoka as a
mortgage loan advisor. She joins the
staff as a consultant in mortgage
loan financing and has six years ex- perience in installment lending.

Clarks Grove
Bank Leader Dies


Funeral Services were held recent­
ly for Reuben B. Johnson, president
of the State Bank of Clarks Grove
for the past 40 years. A t the age of
82, he passed away Nov. 24, 1982, at 0
Naeve Hospital in Albert Lea.
He began working at the State
Bank of Clarks Grove on February
1, 1927, and had been associated
with the bank ever since. He had <|
been active in numerous area and
state banking organizations over
the past 55 years.

Fed Approval for
Holding Companies
The Federal Reserve Bank of Min­
neapolis, acting under authority
delegated by the Board of Governors of the Federal Reserve System,
recently announced its approval of
the following holding company ap­
Goodhue County Financial Corporation, Redwing, through the ac­
quisition of the Goodhue County
National Bank of Redwing.
Fosston Bancorporation, Inc.,
Fosston, through the acquisition of
the Farmers State Bank of Fosston.
New Germany Bancshares, Inc.,
New Germany, through the acquisi­
tion of the First State Bank of New





Minnesota News

GREETING guests at the Northwestern National Bank of Minneapolis annual Duck Dinner,
which concluded the bank’s 18th Annual Correspondent Banking Management Con­
ference, were (from left): John W. Morrison, chmn. of the parent Northwest Bancorporation;
E. Peter Gillette, Jr., chmn. & c.e.o; Donald G. Pederson, sr. v.p., and W. James Armstrong,
pres, and chief fin. off., all three with Northwestern Natl. Bank.

At N.W. National’s Management Conference—

Speakers See Hope in Year Ahead
FTER the first two speakers
had addressed the 18th Annual
Correspondent Banking Manage­
ment Conference and Duck Dinner
hosted December 9 by Northwestern
National Bank of Minneapolis, one
• veteran banker commented, “ Well,
they weren’t really all that opti­
mistic but at least they weren’t pes­
He was referring to talks given by
• the host bank’s chief economist and
senior vice president. Dr. Sung Won
Sohn, and by John Cole, chairman of
the A B A Correspondent Bankers
Division executive committee and
# senior vice president of Texas Com­
merce Bank, Houston.
Actually, the popular Dr. Sung
Won Sohn did see some rays of hope
after recounting, as any economist
4) must do in a talk, all the grim fea­
tures of the current recession. He
reviewed the obvious problems in



the economy of the United States
and other nations around the world,
all of which are experiencing reces­
sion difficulties—and many of them
runaway inflation. “ All of this is
caused by the U.S. economic recesion,” he stated, “ because the
United States is the engine of the
world economy. It’s all caused by
our high interest rates, which have
hurt the entire world.”
He looked at the huge budget defi­
cits of the nation, and the amount of
the economy that debt service will
take; the building credit demand
during the runup in interest rates
because cash flow ran out; political
pressures on the Fed to loosen up
from its tight money, inflation­
fighting stance, and high unemploy­
ment rates. He said Fed chairman
Volcker doesn’t want a strong eco­
nomic recovery all at once, even if he
could get it. He needs judgment lee­


way to move interest rates up or
down, with an economy moving
slowly with no wide swings.
Dr. Sung said he’s “ willing to say
the prime will go to 10 % and even
below, which is a psychological fac­
tor.” He sees a “ weak recovery in
the first half of 1983 and a strong
recovery in the second half. ’ ’ He con­
cluded by saying:
“ So, I see: 1. Interest rates sliding
down further. 2. 1982 as a difficult
year for banks and 1983 also may be
the same. 3. Banks have come through
previous scrapes like this unscathed
and they will do so in 1983.”
Mr. Cole was speaking while the
pro football strike was still in pro­
gress. “ The NFL is rebuilding
through talking up teamwork,” he
noted, “ and the banking industry
needs the same thing. The vast ma­
jority of United States banks have
the same goals but they choose dif­
ferent roads to get there. While the
banking industry was splitting into
smaller segments with individual
goals, banking’s competitors were
moving in in a big way...The new in­
strument (December 14 Money Mar­
ket Deposit Account) may be the
most important thing that has hap­
pened in modern times for the bank­
ing industry.”
Referring to his own field of cor­
respondent banking, Mr. Cole said,
“ I think the correspondent banking
function will be a survivor. It may
be carrying a different name, such as
financial institution division, region­
al banking, or corporate or national
banking. However, the basic func­
tions of providing services to, and
for, respondents will still be there.
The basic skills of the officers
should not change; if anything, they
will expand.”
He said commercial bankers are

LEFT— John Cole, chmn. exec. comm, of ABA’s correspondent bank division and sr.v.p., Texas Commerce Bank, N.A., Houston.
CENTER— Ron Olson of Olson Research Associates, Inc., Greenbelt, Md., and Scott Ulbrich, corr. bkg. off., N.W. Natl. RIGHT— John E.
Mangold, member exec. comm, of ABA correspondent bank div. and sr. v.p., Merchants Natl., Cedar Rapids, la.; Bob Barlow, pres., Iowa
Falls State Bank, Iowa Falls, la., and his son, John R. Barlow, of Market Trends, Inc., Minneapolis, who presented one of the four
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983

If your prim ary correspondent
can't clear San fran cisco
the sam e day, call
First B an k M inneapolis«


■ : -..


* mi
Federal Reserve Bank of St. Louis

Most correspondent banks
won’t collect your funds as fast as we
will. O r give you an immediate
investable balance. So you may be
losing m oney every day.
Those are som e reasons why
you should use First Bank Minneapolis
as your primary correspondent.
You see, we offer one o f the
best Availability Schedules in the nation
and one o f the fastest in this region.
Take San Francisco for example. W e’ll
give you immediate availability on

most items and credit for the rest in
one day. A n d we still accept payment
for our services through balances.
W h at’s m ore, there’s our
exclusive “ D A IL Y $ ’s” report which
shows you exactly how much you can
invest today.
W e’ll even monitor your cash
letter schedule. So you can get
m ore o f today’s cash letter to invest,
because that’s what counts.
So if you’re getting the idea
that we can deliver m ore investable

funds every day, you’re getting
the right idea.

First Bank
Correspondent Banking
First Bank Place
Minneapolis, M N 55480

W e a re w h a t y o u w a n t a c o rre s p o n d e n t b a n k to b e .

M em ber FDIC
Federal Reserve Bank of St. Louis

learning how to co-exist with several
new competitors “ in which all teams
don’t play on the same size field...
you are operating in an environment
that is not the exclusive domain of
banks. It is one infested with several
new varieties of political species. It
is now the time to place renewed em­
phasis on the basics of banking.
Don’t resort to short-term solutions
for those situations that require
long-term decisions. It’s time to
take a renewed interest in the bot­
tom line—not just yours, but the in­
dustry’s as well.”
Those two speakers’ comments
were delivered as a preliminary to
the remainder of the conference pro­
gram. They were introduced by W.
James Armstrong, president and
chief financial officer of North­
western National Bank. The format
for the balance of the program was
reviewed by Donald G. Pederson,
senior vice president and head of the
correspondent bank division. A ser­
ies of four sessions were presented
during the afternoon to allow guests
to move from one room to another so
that at least two of the presen­
tations could be heard in full.
“ Asset/Liability Management”
was presented as a repeat perfor­
mance from last year by Ron Olson
and Pete Marks of Olson Research
Associates, Inc., of Greenbelt, Md.
“ Community Bank Marketing Stra­
tegies in 1983” was covered by John
R. Barlow of Market Trends, Inc.,
Minneapolis. He is a former North­
western National officer.

“ 1983 Outlook—Challenges Fac­
ing the Agricultural Industry” was
the topic presented jointly by Larry
J. Wipf, vice president and director
of regional economics for North­
western National, and Holmes P.
Pedelty, agri-businessman, Clear
Lake. Ia.
“ The Old Order Changeth or Ban
the Basics?” was the fourth sem­
inar, and was presided over by
Charles T. McGarraugh, retired sen­
ior vice president of Northwestern
At the conclusion of the double
presentation of each seminar, a re­
ception with spouses followed, and
then was adjourned to the ballroom
for Northwestern’s Annual Duck
Dinner. John Morrison, chairman of
Northwestern Bancorporation, spoke
briefly to pay tribute to the North­
western and Banco staff people who
had responded so wholeheartedly
just a few days earlier when the two
corporations lost their 17-story
home in a Thanksgiving Day fire
(additional story in this issue).
Mr. Pederson then introduced the
entertainment for the evening which
proved to be sensational—Paul Todd
at the piano, electric organ and syn­
thesizer, and singer Linda Eder,
from Garrison, Minn. They were
headed to Atlantic City, N.J. and
were hoping for their break into the
New York circuit. If they didn’t
make it after the tremendous perfor­
mance they put on that evening,
then show business is the poorer for
failing to recognize a class act.

Announces Pricing Formula
For Bank Stock Loans
The Independent State Bank of
Minnesota has announced the intro­
duction of PRIME MINUS, a new
and exclusive pricing formula for
bank stock acquisition loans at less
than current prime interest rates.
PRIME MINUS is available to all
independent banks in Minnesota ef­
fective December 15, 1982.
“ Providing our member banks
with the necessary financing for the
orderly exchange of bank stock is
seen as the most important service
of I SB and will be a major activity
for the forseeable future. We are de­
lighted to offer the obvious advan­
tages of PRIME M INUS,” reports
Edward A. Hennen, I SB president.

BAI Will Sponsor 1983 Bank
Security Conference
Bank Administration Institute
will sponsor its 1983 Conference on
Bank Security, "Security: The Grow­
ing Profession,” on February 27March 2 , at the Fairmont Hotel in
New Orleans.
Lewis H. Bunker is chairman of
the Institute’s Security Commission
and vice president-security, The
Riggs National Bank, Washington,
D.C. He said topics to be covered
during the three-day meeting in­
clude ATM security, check kiting,
alarm systems, computer fraud, se­
curity management, contingency
planning, and bank robbery.

Black Hills Employee
Elected an Officer

Sioux Falls Promotions Told
A1 Severson, president, North­
western National Bank of Sioux
Falls, has announced the election of
Donald C. Anderson to executive
vice president, branch administra­
tion, and Richard E. “ Dick” Brown
to vice president.
Mr. Anderson will be responsible
for the overall development and di­
rection of the bank’s agricultural
programs and branch administra­
tion. He has held the position of vice

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

president, agricultural department
and senior vice president with the
First National Bank of Aberdeen.
Mr. Brown’s advancement ex­
pands his current responsibilities to
develop and administer a marketing
plan throughout the bank’s system
of 14 full service branches. He will
continue to direct the bank’s public
affairs program and serve as govern­
ment affairs coordinator with the
Northwestern Bancorporation affil­
iates in South Dakota.

President Charles T. Undlin of the
First National Bank of the Black
Hills, announced the election of Pat­
ty Fugate as operations officer at
the Villa Ranchaero office.
Ms. Fugate began her banking
career with First National Bank in
1975 in main office operations. In
1978 she was promoted to branch
operations and transferred to the
Villa Ranchaero office in 1981 as the
operations supervisor.

Holding Company Formed
S cotland H oldin g Com pany,
Scotland, recently received approval
from the Federal Reserve Bank of
Minneapolis to become a bank
holding company through the ac­
quisition of the Farmers & Mer­
chants State Bank, Scotland.


North Dakota

credit officer. Before joining First
National Bank in 1980, he was em­
ployed by Charles Bailly & Com­
pany of Fargo. He is a member of
the North Dakota Society of CPA’s
and is director for the National
Association of Accountants.

J.M . M cG inley, pres., W illiston
H. J . A rgue, exec. d ir . , B ism a rck

New Name Announced


V_______ __________
Three Named at Bismarck
Governor Allen Olson has an­
nounced the promotions of three
Bank of North
Dakota employ­
ees to officer po­
s it io n s . J u lie
Kubisiak, a Bis­
m arck n a tiv e ,
was promoted to
supervisor in the
application, dis­
b u rsal
transfer section
of the student

in the commercial lending depart­
ment. He has completed various
banking schools, including the Grad­
uate School of Banking at the Uni­
versity of Wisconsin.

Joins Fargo Bank
David D. Gordon, president of
The Fargo National Bank and Trust
Company, announced the appoint­
ment of Ron McGlynn to the staff as
a commercial lending officer. Prior
to his appointment at the bank, he
was employed by the Bank of North
Dakota as a correspondent bank of­
Mr. McGlynn is a graduate of
Mayville State College, Mayville,
N.D., and the Kansas Agricultural
Banking School, Kansas State Uni­

W illiston Facility Opened




loan department. Kathy Lâcher, also from Bismarck, was promoted to
assistant cashier. And Claudette
Warren, an Omaha native, was
named assistant cashier.
Bank of North Dakota President
Herb Thorndal also announced that
a former federal bank examiner,
Kim Kaul, has joined the state bank
as a loan officer.

o Vice President Elected




Wayne E. Puppe has been elected
vice president and second officer at
First Bank of North Dakota - Fargo.
The announcement was made by
President Oliver H. Hagen. Mr.
Puppe will be in charge of the commecial lending division at First
Mr. Puppe received his Bachelor
of Science degree from North
Dakota State University. He began
his banking career at the American
Bank and Trust Company in Moor­
head, Minn., where he became second officer and senior vice president
Federal Reserve Bank of St. Louis

American Bank & Trust Com­
pany of Williston recently opened up
a drive-up, walk-up facility located
at Second Avenue West and High­
way #2, Williston.

Fargo Promotions Announced
George W. Schwartz, president of
First National Bank of Fargo, re­
cently announced the promotions of
Jack Holm, Susan Gollehon and
Eric Fischer.
Jack Holm, currently vice presi­
dent and manager of First National
Bank - West, has been appointed
vice president marketing group. He
joined First National Bank of Fargo
in 1973 and began his banking car­
eer at Northwestern National Bank
of Valley City in 1963.
Susan Gollehon has been ap­
pointed marketing officer. She
began her banking career in 1970
with First Bank of Fargo and prior
to joining First National Bank was
employed by First National Bank of
Grand Forks.
Eric Fischer has been appointed

State Bank of Burleigh County
Trust Company, Bismarck, has
changed its name to United Bank of
Bismarck, and has moved its main
banking house to 217 North Seventh
Street, within the city of Bismarck.

Acquisition Approved
The Federal Reserve Bank of Min­
neapolis has approved the applica­
tion by Hazelton Bancshares, Inc.,
Hazelton, to become a bank holding
company through the acquisition of
the Bank of Hazelton.

Capital Increases Told
The following banks have increased
their capital by stock dividend: Se­
curity State Bank of New Salem,
from $80,000 to $400,000, effective
September 10, 1982; and State Bank
of Buffalo, from $50,000 to $100,000,
effective September 13, 1982.

Joins Jamestown Bank
Daniel P. Schorsch, president of
the First National Bank of James­
town announced the election of
R o n a ld
Strand as senior
vice president
-credit admini­
He replaces
William N. DuToit who has re­
signed to accept
a position as ex­
e c u tiv e
v ic e
president of the
First National Bank of Bowman.
Mr. Strand was previously vice
president and manager of the agri­
cultural lending department of the
First National Bank of Moorhead,
Minn., which is also an affiliate of
the Northwest Bancorporation. He
joined the Moorhead bank in 1973
after working with the Farmers
Home Administration in South
Dakota. He holds a Bachelor of
Science Degree from North Dakota
State University of Fargo and also
graduated from the C olorado
Graduate School of Banking.
Northwestern Banker, January, 1983


Two Advanced in Billings
The board of directors of First
Bank Billings has elected Diane Os­
born and Mike Hickey to vice pres­
ident. The board also appointed
Mike Hickey and Gregg Lovell to
the First Bank loan and discount

E.C. Gross, pres., Hardin
J.T. Cadby, exec, v.p., Helena

Butte Banker Retires
Lois Morrison, assistant vice pres­
ident of First Bank Butte, has re­
tired after more than 40 years of
service to the bank. Most recently,
Ms. Morrison was assistant vice
president of operations and security
officer. Prior to assuming that post,
Ms. Morrison was assistant vice
president in charge of personnel.

Anaconda Promotion
The board of directors of First Se­
curity Bank of Anaconda have elec­
ted Don Clark as
senior vice presi­
dent and senior
cred it o ffic e r.
Mr. Clark has
been serving as
chairman of the
o ff ic e r s
directors credit
committees and
this promotion
is in recognition
of his performance in the ad­
ministration of credit service of the
Mr. Clark was elected to the
board of directors in 1981 and has
served as vice president in charge of
the commercial loan department for
several years. He has been with
First Security since 1972 and is cur­
rently a student of the Prochnow
Graduate School of Banking in Mad­
ison, Wis.

Two Advance in Great Falls
C.E. (Chuck) Pedersen, president
and chief executive officer of First
Interstate Bank of Great Falls an­
nounces the appointment of two new
Sharon Rivera has been promoted
to assistant operations officer. She
has been with the bank since 1974
and has worked in operations de­
partment since 1980.
Joan Healey has been promoted
to customer sales officer and will be
directly involved with the develop­
Banker, January, 1983
Federal Reserve Bank of St. Louis

ment of the new Financial Services
Center. She has been with the bank
since 1978 and has served as mar­
keting assistant for the past three

Two Join Billings Bank
A1 Winegardner, president of
First Northwestern National Bank
of Billings, has announced the addi­
tion of two new staff members.
Patrick L. Hogan has joined the
bank as vice president and manager
of the loan servicing center. He re­
ceived a bachelor’s degree in bus­
iness economics from the University
of Portland and immediately went to
work for the Comptroller of the Cur­
rency, where he spent 18 years. His
last official title was examiner in
charge of the Billings sub-region.
Bill Beatty is the new controller
for the bank. He has been working
as a financial analyst for the Min­
neapolis corporate office where he
was responsible for five-year and an­
nual planning. He graduated with a
bachelor of science degree in busi­
ness from the University of Nebras­
ka in Lincoln.

Miles City Executive Elected
The board of directors of First
Bank Miles City elected Gordon L.
Bickle to succeed Robert L. Reiquam as president and chief ex­
ecutive officer. Mr. Bickle returns to
Miles City after 18 years with First
Bank System banks in Bismarck,
LaCross, Wis., and Albert Lea,
Mr. Bickle started his banking
career with First National Bank in
Miles City in 1953 and most recently
served as president of First Bank
Albert Lea. He is a graduate of Kinman University, the University of
W isconsin Graduate School of
Banking, the Community Chief E x­
ecutive Officer Program and the Na­
tional School of Bank Investments.



Ms. Osborn began her career with
First Bank Billings in 1966 and was
promoted to the position she now
holds, manager of the real estate
loan department, in 1981.
Mr. Hickey transferred to First
Bank Billings in 1979 as a commer­
cial loan officer after having worked
previously for the First National
Bank of Lewistown and the First
National Bank of Minneapolis. He
was promoted to his most recent
position, commercial loan assistant
vice president, in 1981.

Richland Banker Promoted
The Richland National Bank and
Trust of Sidney has announced the
promotion of Don Gratz to market­
ing officer. Mr. Gratz joined the
bank in 1979 as a trainee after
several years in the Sidney school
system and has worked since then in
installment and consumer loans. His
new duties will include business
development and public relations in
addition to continuing some of his
duties in the consumer lending area
and as personnel officer.

Joins Bank of Montana System
William J. “ Bill” Eidel has been
named vice president and treasurer
of Bank of Montana System accor­
ding to an announcement made by
Samuel R. Noel, executive vice pres­
Mr. Eidel, a C.P.A., was previous­
ly associated with Peat, Marwick,
Mitchell and Co. for nine years, most
recently as an audit manager. He is
a member of the American Institute
of Certified Public Accountants and
a member of Montana Society of
Certified Public Accountants.








Two Promoted and
Director Elected
Gilbert D. Friesen, director of
finance and corporate services for
Tri-State Generation & Transmis­
sion Association, Inc., has been
elected to the board of directors of
IntraWest Bank of Northglenn, ac­
cording to Wesley J. Watson, chair­
man of the board and chief executive
officer of the bank.

First Interstate Bancorp Propose to
Purchase IntraWest Bank of Denver
N A surprise move that took place come vice chairman of the merged
just three days before Christmas, bank.
John M. Eggemeyer III, who was
it was announced in Denver that
First Interstate Bancorp, the na- named president recently of In­
tion’s largest bank holding com­ traWest Financial, effective Jan­
pany, plans to purchase IntraWest uary 1 , would become president and
Bank of Denver. The proposal was chief operating officer of the merged
confirmed by Joseph J. Pinola, bank. He joined the IntraWest or­
chairman of First Interstate Ban- ganization last August.
The sale price of IntraWest Bank
corp, Los Angeles, and Ted Brown,
chairman of IntraWest Financial is reported to be $125 million, about
1.1 times book value.
IntraWest Financial, with Mr.
IntraWest is the lead bank of In­
traWest Financial and has assets of Brown as chairman, would retain its
about $2 billion. It was announced other 14 banks in Colorado, its mort­
recently that the holding company gage lending, leasing and insurance
and IntraWest Bank would take subsidiaries, with assets of $3 bil­
substantial losses for 1982—$66 mil­ lion. First Interstate Bancorp has 21
lion—and this would result in a net banks and 950 outlets in 11 western
loss for the year to the holding com­ states, all with $39 billion assets. It
has two other Colorado banks be­
pany of $10 to $12 million.
Mr. Pinola said discussions had sides First Interstate Bank of
been underway for some time for the Denver.
purchase and discounted any comments that the First Interstate pur­ Chatfield Bank
chase would be in jeopardy, stating Acquisition Completed
that he agrees with the manner in
George B. McKinley, president
which IntraWest decided to take the
chief executive officer of Central
large loan losses in order to place the
holding company and bank on a Bancorporation, Inc., and Mike A.
Leprino, principal shareholder of
sounder footing.
If the purchase is approved by di­ Chatfield Bank, announced recently
rectors of both institutions and by that the bank holding company has
regulatory authorities, IntraWest completed the acquisition of Chat­
and First Interstate Bank of Den­ field Bank. The bank reported total
ver, would be merged as First Inter­ assets of $36.8 million and total de­
state Bank of Denver, with $2.4 bil­ posits of $30.9 million as of Novem­
ber 30, 1982.
lion in assets.
The name of the bank is to be
Upon approval of the merger,
Robert E. Lee, now president and changed to Central Bank of Chat­
chief executive officer of IntraWest field which is consistent with the
Bank (formerly First National names of the other holding company
Bank), would become chairman and banks on the Front Range. The
chief executive officer of the merged bank’s president is Rodney BrethFirst Interstate Bank of Denver. He ower and Mr. McKinley indicated
is also currently vice chairman of that no changes in the bank manage­
ment are anticipated.
the IntraWest Financial.
Central Bancorporation, Inc., is a
Bruce W. Hulbert, president and
chief executive officer of First In- state-wide holding company owning
terstate Bank of Denver, would be­ 18 member banks in Colorado.











Federal Reserve Bank of St. Louis

Denver Banker Retires
N. Berne Hart, president and
chairman of United Banks of Col­
orado, Inc., a multi-bank holding
company, has announced the retire­
ment of Earl G. Wiebold, executive
vice president—planning, effective
January, 1983.
Mr. Wiebold joined Denver Na­
tional Bank (a predecessor of United
Bank of Denver) as a teller in 1952.

Hazelrigg New President
At United Bank of Denver
Richard A. Kirk, president, chair­
man and chief executive officer of
United Bank of Denver, announced
last month that the board of direc­
tors has elected Charles R. Hazel­
rigg as president of the bank. Addi­
tionally, Mr. Hazelrigg has been
elected to the bank’s board of direc­
tors. Mr. Kirk will continue as chair­
man and chief executive officer.



Mr. Hazelrigg, 49, joined United
Bank of Denver in 1958 after serv­
ing as finance and accounting officer
in the Air Force. He was graduated
from Miami University in Oxford,
Ohio. Mr. Hazelrigg initially was a
security analyst in the trust banking
division, then served in a variety of
posts, including being project man­
ager for United Bank’s successful
introduction of Master Charge in the
Rocky Mountain region in 1968. He
then served in the commercial bank­
ing division and has been a senior
executive vice president since 1981.
Northwestern Banker, January, 1983


Colorado News

Marketing Director Named
R.K Hudson, president of The Na­
tional City Bank of Denver, recently
announced the appointment of Ruth
Roberts as marketing director.
Ms. Roberts is a graduate of Col­
orado State University and is cur­
rently working on a master’s degree
from the University of Colorado.
Prior to joining National City Bank,
she was employed by Central Bank
of Denver and most recently with
IntraWest Bank of Denver where
she participated in retail and trust
marketing programs.

To Chair Western
Regional Council
Bruce M. Rockwell, chairman of
Colorado National Bancshares, Inc.
and Colorado National Bank of Den­
ver, was elected chairman of the
board of Western Regional Council
at its annual meeting.
Western Regional Council is a
membership association of chief ex­
ecutive officers of fifty major com­
panies located in the eight Rocky
Mountain states — Idaho, Montana,
Nevada, Utah, Wyoming, Colorado,
New Mexico and Arizona. The mem­

ber companies are engaged in oil and
gas development and distribution,
mining, banking and agriculture.
The organization is concerned with
public policy issues that immediate­
ly affect the western states and the
business of the West. At present
Western Regional Council is involved
with developing and advancing posi­
tions on such issues as clean air,
clean water, Indian water rights,
wilderness, coal export and leasing,
energy impact, and others.

Joins Bank in
Colorado Springs


Kenneth R. Weissenfluh has been
named a vice president of The West­
ern N a tio n a l
Two Promoted in Wesminster Bank of Colo­
Mr. Clarence J. Hill, president of ra d o S p rin g s
the Bank of Westminster, has an­ and will be in the
nounced that Wanda S. Powers has c o m m e r c i a l
been named vice president and cash­ loa n s d e p a r t­
ier and LaDonna S. Piper has been ment.
named loan officer of the bank.
A commercial
Ms. Powers has extensive exper­ banker for 17
ience in all phases of bank opera­ years, Mr. Weis­
tions. She was cashier, auditor and senfluh has num^
head bookkeeper of banks in Wyom­ e rou s p r o fe s - K.R. WEISSENFLUH •
ing, Kansas and the Denver metro sional affiliations as well as being ac­
area before accepting her current tive in many community organiza^
tions. He is a graduate of Colorado
Ms. Piper began her banking car­ State University as well as The q
eer as a secretary in the correspon­ Northwestern University Graduate
dent division of the First National School of Mortgage Banking.

In my job as a correspondent banker,
every day is different.
Yesterday I helped a bank work out
some bugs in their EEO plan through
our Human Resources Division.
Federal Reserve Bank of St. Louis

Bank of Denver and then became 9
secretary to the president of Arvada
State Bank. Prior to joining the
Bank of Westminster as a loan re­
presentative, she was administra­
tive liaison to the president and £
chief executive officer of three single
bank holding companies, including
Westminster Bankshares, Ltd.

Last week I set up a
bank stock loan to help finance
a new bank in northern Colorado.


years of experience in the savings
and loan industry.

Casper Bank Promotion

New Bank for Rock Springs
Scheduled to open in early Febru­
ary, the American National Bank of
• Rock Springs will be the fifth bank
in the community. Charles Jones,
currently a vice president with the
Denver based American Bank Cor­
poration, will assume duties of chair• man of the board of the new bank.

Joins Sheridan Bank
The directors of the Bank of Com­
merce, Sheridan, recently announced
® the appointment of Thomas N.
Ahern to the bank staff as a com­
mercial loan officer.
Mr. Ahern has a masters degree
in business administration from the
® University of Wyoming. He has
gained experience as an account ex­

ecutive with a stock and bond bro­
kerage firm, in professional money
management and in real estate mort­
gage loans.

New Riverton Officer
Dennis Heckart recently joined
the Riverton State Bank as p loan
officer. A business administration
graduate from the University of
Wyoming, he has previous banking
experience with banks in Denver
and Lander.

New Rock Springs Banker
First Security Bank of Rock
Springs officials announced that C.
Douglas Snell has joined the bank as
a mortgage loan officer. He has ten

Robert W. Miracle, president and
chief executive officer of the W yom­
ing National Bank of Casper, recent­
ly announced that Terry Brake has
been elected to the position of real
estate loan officer. In her new capa­
city, she will be responsible for con­
struction loans and real estate col­
Before joining the bank, Ms.
Brake had accumulated over eigh­
teen years of varied lending exper­
ience. Most recently, she was the
branch administrator of a local cor­
poration. She attended Casper Col­
lege and has also attended several
management and financial seminars.

V.P. and Cashier Elected
Mr. Garth G. Thomas, president
and chief executive officer of South
Denver National Bank, has an­
nounced the appointment of Mayo
S. “ Corky” Dodd to the position of
vice president and cashier in charge
of all bank operations.

If you're not working with us now,
give me— Bill Tumelty— a call.
Find out about the ways we
can serve you. I think
you'll discover we have a
genuine interest in you and in being
The Better Bankers.SM

of Denver

The Better Bankers.SM
1515 Arapahoe Street
P.O. Box 5548 T.A.
Denver, Colorado 80292
(303) 893-3456 '
The Better Bankers is a service mark
of Central Bank of Denver.
Federal Reserve Bank of St. Louis

Member f DIG


B anco .

“It’s not uncommon
fo r us to handle over
$300 million in
each day. ”
Bob Billmeyer
U.S. National/
Investment Division

Good investment advice—
from one banker to another.
Another reason to depend on us.
The Investm ent D ivision o f the U.S. National
Bank speaks the same language as the c o r r e ­
spondent banker. And sin ce w e ’re in the same
business, w e understand the pressures and
challenges bankers are facing day after day.
The U.S. National has b een b y the side o f
corresp on d en t banks fo r years, helping m axim ize
excess funds w ith aggressive investm ent
services. And this com m itm en t w ill con tin u e for
many years to co m e .

Main Bank
20th & Farnam

Regency Office
10010 Regency Circle

By team ing up w ith the full-service capabilities
o f the U.S. National, and the en orm ou s resou rces
o f ou r BANCO affiliates, corresp on d en t banks
can reach d eep ly into investm ent opportu n ities
not available b y w ork in g alone. Aggressive
and p rod u ctiv e investm ent advice. A g o o d
reason for co rre sp o n d e n t banks to d ep en d on us.
For more information, call Bob Billmeyer.
Toll free. Nebraska — 1-800-642-8270
Bordering S ta te s - 1-800-228-9225


Central Park Plaza Office
One Central Park Plaza

Member FDIC
Affiliate of Northwest
for FRASERBanker, January, 1983
Federal Reserve Bank of St. Louis

US National Bank



New President for
Fremont Bank
A t the regular December board
meeting of the First National Bank
& Trust Company of Fremont, H.W.
“ Bud” Hendriksen advised the
board that since he had reached the
age of 65 last August, it was his in­
tention not to stand for re-election
as president of First National. Mr.
Hendriksen was asked if he would
consent to continue as a director of
the bank and to take over as head of
First National’s trust department.
He accepted the proposal and as-

sumed his new duties January 1. Mr.
Hendriksen became head of the
bank in 1979.
The board elected Richard M.
Fritz, vice president of commercial
lending, to succeed Mr. Hendriksen
as president. The former president
of First National Bank & Trust
Company of Kearney, he joined the
bank in 1982.
Mr. Fritz is a graduate of Iowa
State University with a bachelor of
science degree in agricultural educa­
tion. He has also completed the
School of Consumer Banking at the
University of Virginia and the

School of Bank Marketing at the
University of Colorado.
John Westerberg, a former First
National vice president, will return
to the bank as executive vice president/administration.
Following college, Mr. Wester­
berg joined the National Bank of
Commerce where he spent eight
years. He then joined the First Na­
tional Bank of Fremont in 1973 serv­
ing as vice president/commercial
loans. He left after two years to
become the head of Lincoln Bank
Mr. Westerberg attended the
University of Nebraska at Lincoln
and has completed the Colorado
School of Banking.
The board of directors also an­
nounced the following promotions:
Clifford Cushman to executive
vice president—loans; Gary Bern­
hardt to senior vice president and
cashier; Kenneth Vampola to assis­
tant vice president and marketing
officer; Robert Phares to vice presi­
dent, and Charlene Bittner to assis­
tant trust officer.

Joins Siouxland National





Involved in banking and finance
since 1968, James V. Clausen, 38,
has been named a vice president at
the Siouxland National Bank in
South Sioux City. Mr. Clausen has
worked at Associate Finance and
Toy City National Bank in Sioux
City, and at the Holstein State Bank
in Holstein, la. In his new position,
Mr. Clausen’s chief responsibilities
will be in agricultural lending.

Hallam Changes Announced





Craig D. W ittstruck has been
elected a director at the Hallam
Bank, Hallam, Neb. Mr. Craig is
with the law firm of Berry, Ander­
son, Creager and Wittstruck.

First Security, Holdrege, Completes New Addition
PEN HOUSE was held recently
at F irst S ecu rity Bank in
Holdrege to show customers and the
public the new addition and the
complete remodeling of the existing
bank quarter. The new addition has
more than doubled the bank’s phys­
ical size, according to William E.
Richards, chairman and president.
The new customer lobby provides
an attractive setting for daily
business activity. The focal point is a
stained glass ceiling fixture created
by Dirk of Denver. Each of the

Federal Reserve Bank of St. Louis

hundreds of pieces of specially cut
glass have been leaded into place.
Surrounding the stained glass
fixture and spreading over the lobby
ceiling are giant cherrywood beams
in an octagonal shape.
The ceiling design is complemented
with a teller line of curvilinear
design. Two secretary-receptionist
desks in round design accentuate the
new lines. All officers have private
offices to insure customer privacy.
The bookkeeping department has
been enlarged to accommodate new

e q u ip m e n t and sta ff. A lm o s t
everything in the bank is new,
including a new vault which is
several times larger than the old
one. New customer facilities include
coupon booths for safe deposit box
users, an Instant Cash ATM, new
k itc h e n and lo u n g e a rea fo r
employees, educational and training
facility, and conference rooms.
First Security Bank was founded
in 1950. The bank was remodeled in
1964. Mr. Richards purchased the
bank in 1968.
Northwestern Banker, January, 1983

the Omaha office of the accounting ^
firm of Arthur Andersen and Co. for
five years before joining the bank in
1982, Mr. Smolsky specialized in
auditing of financial institutions.
An Omaha native, he earned his £
bachelor’s degree in business admin­
istration from the University of Ne­
braska at Omaha in 1977.
* * *

First National Bank of Omaha an­
nounces the addition of Mark Sor­
ensen to their correspondent bank
departm ent as
an agriculture
Mr. Sorensen
graduated from
Iowa State Uni­
versity with a
degree in agri­
cu ltu ra l b u s i­
ness. Prior to
joining First Na­
tional, Mr. Sor­
ensen was employed as a loan officer
with the Sioux City Production
Credit Association.
* * *

Ms. McCormack came to the bank
in 1976 as a senior secretary at U.S.
N ational/Regency, follow ing 22
years with Manpower, Inc., where
she served as office division man­
The opening of Douglas County
ager. In 1980, she was named per­
sonal banker with the retail banking Bank & Trust Co.’s new Harvey
division of U.S. National Bank/Re- Oaks office at 14545 West Center q
Road last month coincided with the
50th anniversary of found­
* * *
ing, according to Dale Heimann,
John M. Shonsey, Board chair­ president. The office is the bank’s
man of American National Corpora­ third in metropolitan Omaha, and is %
tion, announces the election of two located in a developing major shop­
men to positions in the American ping center.
A ribbon of 100 $2 bills was used
National Bank, a wholly-owned sub­
sidiary. Jerry B. Weber has been for the ribbon-cutting ceremony.
elected vice president and trust of­ Wielding the scissors were Mayor fi
ficer, and John Smolsky has been Boyle and Connie Findlay of the
City Council, and J. K. Harvey,
elected cashier of the bank.
board chairman and son of the
bank’s founder, Kenneth G. Harvey.
The ribbon then was donated to the •
American Heart Association. The
new building replaces a temporary
one at 144th and Arbor.

The election of Jean Collins to the
position of personnel officer and Bernadine G. McCormack to the posi­
tion of personal banking officer have
been announced by Donald J. Mur­
phy, chairman of the United States
National Bank of Omaha.
Ms. Collins joined U.S. National
Bank in 1946 in the proof/transit
department and continued working
in various operations areas before
joining the personnel department in
1959. In 1968, she was named exec­
Active in real estate planning and
utive secretary for the administra­
tion division, returned to personnel trust management since graduation
in 1977, and was made employee re­ from the University of Nebraska at
Lincoln in 1969, Mr. Weber, simul­
lations assistant in 1978.
taneously, had been vice president
and trust officer of two Kansas
banks before joining the American
National Bank.
A graduate of several American
Institute of Banking-sponsored
courses, he had also been associated
with the National Bank of Com­
merce of Lincoln.
Prior to his promotion, Mr. Smol­
sky had been assistant vice pres­
ident-operations. Associated with

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

Douglas S. Oldaker has joined the
Omaha National Bank’s estate and
trust division as a personal trust ac­
count administrator.
A native of Iowa City, Mr. Old- •
aker received a finance degree from
Creighton University’s College of
Business and was graduated last
May from the Creighton Law
* * *

Lyle A. Haugen has been ad­
vanced to president of Security Na­
tional Bank from his former posi­
tions as executive vice president and
cashier. He succeeds C. L. Landen,
who continues as chairman of the
board. Mr. Haugen joined the bank
in 1966 and has been a director since
1971. He is a native of South
Mr. Landen also announced re­
cently the completion of a $1 million
building program that included con­
struction of five drive-through lanes.
The six-month construction job in­
cluded extensive remodeling of the
exterior and interior. Bank head­
quarters continue to be located at
35th and Farnam Streets, the site of
its original building when founded
in 1964. Security National’s assets

look nto
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service charges to your bank.
DON'T DELAY! Give one of our leasing experts a call today. Our toll
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firs!national bank
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Federal Reserve Bank of St. Louis

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800-228-9533. Member FDIC.

Nebraska News
now are $37 million, Mr. Landen
H ow ard H. A gee, former chair­
man of the North Side Bank, died
recently at his Omaha home, where
he became ill suddenly. Mr. Agee,
66, joined the North Side Bank
board in 1966 and was chairman
from 1976 to 1980. He founded
American Road Equipment Co. in
1943 and was its president.
The First National Bank of Oma­
ha has placed ATMs in four addi­
tional locations in Omaha. Two are
in Hinky Dinky food stores, one is in
a Quik Shop location, and the fourth
is in a wholesale food outlet in South
Realbanc, Inc., an Omaha-based
mortgage banking firm, has appoint­
ed three new sec­
ond vice presi­
dents: Sherry L.
Coughlin, David
A. "Pete” Horacek, and Larry
L. Richling.
Ms. Coughlin
joined the bank
in 1976 as an as­
sistant loan offi­
cer. Mr. Horacek



joined Realbanc’s Lincoln office in
1978 as a loan officer, and moved to
Omaha as director of branch opera­
tions in 1982. Mr. Richling has been
a mortgage loan officer since he
joined Realbanc in 1977.

New Director Named
Andy Armbruster, a partner in
the law firm of Armbruster, Nelson
and Hart, has been appointed to the
board of directors of the First Bank
and Trust Company in Cozad, Neb.
Chairman of the Board Juhl Smith
announced that Mr. Armbruster has
assumed the position formerly held
by his father, Allan Armbruster Sr.
Digitized Northwestern
for FRASER Banker, January, 1983
Federal Reserve Bank of St. Louis

Hyannis Promotion Told
The board of directors of the Bank
o f H yannis re ce n tly prom oted
Jeanne K. Davis from assistant vice
president to assistant vice president
and cashier. Ms. Davis joined the
bank in 1974 as a bookkeeper-teller,
and was elected to assistant vice
president in January, 1981.

Promotion Told
Deborah Larson has been pro­
moted from assistant cashier to
cashier at the Stromsburg Bank. Ms.
Larson has been employed at the
bank since June of 1979.
Ms. Larson succeeds James A.
Rosenquist, who resigned as execu­
tive vice president and cashier of the
Stromsburg Bank to become vice
president with the Wood & Huston
Bank at Marshall, Mo. He had been
with the Stromsburg Bank since

New President Named
Frank Hermelbracht, 55, has be­
come the third generation of his
family to serve as president of the
First National Bank of Bancroft. Mr.
Hermelbracht assumes the position
left vacant by the recent death of his
father, J. G. Hermelbracht. The el­
der Hermelbracht was bank presi­
dent from 1957 until his death Octo­
ber 7. The deceased’s father, John
Hermelbracht, was bank president
from 1917 to 1947.
Frank Hermelbracht, who has
served on the First National Bank
board of directors for 16 years, has
farmed the Bancroft-Rosalie area
most of his life.

Ex-Homer Banker Dies
Frank Robert Mares, 86 , who
founded the American State Bank,
Homer, in 1954, died recently. Mr.
Mares began his banking career at
the Citizens State Bank of Dorches­
ter. During the Depression, he start­
ed a bank in Niobrara, Neb., but
later left Niobrara for health rea­
sons and established the American
State Bank. He sold the bank and
retired in 1978.

Grant Bank is Sold
The Farmers National Bank of
Grant has been sold by F. Willard
Jackman, chairman, and his brother,
Charles E. Jackman, executive vice
president, to Dale Stine and his son,
Greg, of Ord.

Willard and Charles Jackman have^
resigned those positions but willw
continue as directors and in active
management of the bank during the
coming year at the request of the
Stines. Donald W. Sexson, presi-^
dent, also has resigned his position
but will continue with the bank for
some period of time. Willard Jack­
man’s wife and his daughter, Geor­
gia Gloy, and Cashier Craig K not-^
well have resigned from the board.
Dale and Greg Stine and Philip E.
Jossi have been elected to the board
of Farmers National.
Dale Stine has been named th e^
chairman of the board at Farmers
National and Mr. Jossi was elected
president. He was president at the
Bank of Brule.
The Jackman brothers and M r.^
Sexson have been requested to re­
main active in management of the
bank during the coming months. All
remain on the board.
Stan Loeffler, ag rep for FarmersNational, has been advanced to as­
sistant vice president. Patricia
Karre has been promoted from assis­
tant cashier to cashier.
Farmers National was founded in—
1915 by E.E. Jackman, cashier, and®
M.D. Keller, president. The two men
helped construct the first bank
building, mixing cement and carry­
ing the brick and mortar to build the—
bank vault. The bank charter was®
changed in 1930 to a national bank.
Mr. Keller sold his stock in 1935 to
Mr. Jackman when he moved to Ogallala to purchase the Citizens Bank, —
now the First National Bank of®
Ogallala. E.E. Jackman became
president at Grant.
Willard Jackman, who had helped
around the bank during his his h igh^
school years, officially joined th eW
bank in June, 1933. He was elected a
director in 1935 when the Keller
stock was acquired. His brothers
Charles and the late Herb Jackman ^
later joined the bank. Charles has W
been with the bank for 38 years. Mr.
Sexson has been with Farmers Na­
tional for 32 years.
Dale Stine has been well-known in £
Nebraska banking circles for many
years. He is chairman of Nebraska
State Bank in Ord and his son, Greg,
is president of that $25 million asset
bank. In addition, they have inter- a
ests in the Peoples Bank at Wolbach, Broken Bow State Bank and
McDonald State Bank at North
Platte. Dale Stine also has an in­
terest in the Farmers State Bank at ^


oî C ■ poY t i^

L tV ^
a Y B ^ V iv v i ^ e

t5 » t ì « £ o * * '
, , c







^ ® V otte 1
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983

Eugene W. Bortz has been elect- f
ed cashier of First Security National
Bank, which opened here November
1. His appointment was announced
by Robert W. Hasebroock, presi­
dent. Mr. Bortz has 22 years of £
financial experience. He was presi­
dent of the Bank of Panama and
worked for Union Bank & Trust Co.
of Lincoln.

Joins Board of Trustees

The board of directors of First Na­ Wash., at the age of 77. He worked
tional Lincoln Corporation recently at banks in Newhawka and Elm­
named T. Michael McGregor vice wood before joining the old Conti­
president and manager of the auto­ nental State Bank in Lincoln. He
mated customer services division. joined Continental National’s trust
Clark Mattingly was promoted to department in 1937, and in 1957
assistant vice president and auditor was elected executive vice president
of First National Bank of Lincoln, and a director of the bank. After it
succeeding Mr. McGregor.
was merged with First National he
was executive vice president. He
served a short time as chairman of
the State Investment Council. Mr.
Griffin retired from the banking
business in 1970.
He helped organize the Lincoln
Chapter of AIB in 1933, served on its
first board and became president of
the chapter.
Karl E. Dickinson has been
Mr. McGregor’s career at First elected vice chairman of Gateway
National Bank began in 1974 and in­ Bank and has been succeeded as
cludes extensive operations exper­ president by James F. Nissen.
ience in all phases of banking. He James Ackerman continues as
was named auditor in 1977 and has chairman of the bank.
been active in the Institute of Inter­
Mr. Nissen, formerly president of
nal Auditors, EDP Auditors Associ­ National Bank of Commerce, where
ation, and is past president of the he had worked 28 years, resigned
American Institute of Banking, Lin­ that post several months ago to join
coln Chapter. His new responsibil­ Nebraska Management, Inc., as
ities will include managing the president. Nebraska Management
marketing, installation, and service manages bank properties of Paul
of automated systems used by Schorr III and Gene Tallman,
banks and businesses throughout both of Lincoln. They own the hold­
the state.
ing companies for Citizens State
Mr. Mattingly has been an EDP Bank and Lincoln Bank East in
auditor with First National Banks Lincoln; First Westroads Bank in
since 1978. His new responsibilities Omaha, and First National Bank
will be managing the internal aud­ and First State Bank, both in
iting function of the bank. Current­ Fremont.
ly, he is vice president and board
Mr. Nissen will have offices both
member of the EDP Auditors A sso­ at Gateway Bank and Nebraska
ciation, Omaha chapter.
Management to continue his super­
* * *
vision of all the banks.
A. W. Griffin, retired executive
Mr. Dickinson said "one of my
vice president of the First National main priorities will be getting new
Bank, died recently in Port Angeles, business for the bank.”

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

Harold P. Stuckey, president of
the Lexington State Bank and Trust
Company, has been appointed to the
board of trustees of the Colorado
Graduate School of Banking. Mr.
Stuckey is president of the Nebraska
Bankers Association.


Columbus Bankers Retire
Harvey Loseke, senior vice presi­
dent, and Francis Haney, assistant
vice president, have retired from ^
First National Bank and Trust Co.
of Columbus. Mr. Loseke began
working for the bank 46 years ago in
the bookkeeping department. A re­
cipient of the Service to Banking q
award from the Bankers Adminis­
tration Institute, Mr. Loseke was
promoted to vice president in 1956
and senior vice president in 1973.
Mr. Haney began working for q
First National Bank in 1962 after 22
years with the Coca-Cola Bottling
Co. in Columbus. He was appointed
a bank officer in 1972.

Elected in Doniphan
Robert Wenzl and Gene E. Graves
of Grand Island were elected to the
board of directors of the Bank of
Doniphan according to George H. •
Wanitschke, bank president. Mr.
Wenzl is president of T.F.S. Inc., a
nationwide motor carrier, and 180
Trailmobile, a semi-trailer sales and
service business. Mr. Graves is gen- ®
eral manager of the Pump & Pantry
division of Bosselman Inc., a director
of Bosselman Inc., and owner of Crop
Hail Company.

Named to Bank Board
Jerry L. Jares, vice president and
cashier of the Fillm ore County
Bank, has been named to the board
of directors of that institution. In
charge of operations and personnel
departments, Mr. Jares came to the
bank in 1979 from St. Paul National
Bank, St. Paul, Minn. He is a gradu­
ate of the University of Nebraska.


Specialists in
fulfilling your every
correspondent need...



Vice President & Manager
Correspondent Bank Division

Vice President



Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

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

Northwestern Banker, January, 1983

Geared for growth?
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of all sizes grow by helping
them b ecom e more efficient
and more effective in their
day-to-day operations.
When you correspond with
Bankers Trust, you team up
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and responsiveness of Iowa's
largest locally owned, inde­
pendent bank.
We'd w elcom e the oppor­
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overlines and loan partici­
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processing and trust services.
Our Correspondent Bankers

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

look forward to m eeting with
you to discuss your specific
We're g e a re d to helping
you achieve your goals for in­
creased profit and growth. So,
com e grow with us!

C o m e C r o w W tT M I C T
W ft h U s 1 1 U
Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Use our toll-free WATS line: 800-362-1688

experience in banking, insurance
and real estate from the Maynard
Savings Bank where he was a loan
officer, real estate broker and in­
surance agent.
Mr. Buenneke has long been asso­
ciated with Iowa bankers. His father
and one of his uncles are both pres­
idents of northeast Iowa banks, and
he has another uncle who is a cor­
respondent banker for the largest
bank in the state of Iowa.

ITS EFT Meeting Is February 3-4
SLATE of well-known industry
leaders will address the first an­
nual ITS EFT Conference on Febru­
ary 3 and 4 at the Marriott Hotel in
Des Moines. The conference has
been scheduled specifically to help
those EFT participants (financial in­
stitutions with cards issued) and
EFT non-participants (without
cards issued). On the first day, February 3, attendees will be divided by
those two groups for concurrent ses­
sions consisting of identical topics,
but with information geared to the
current EFT status of each group.
Presentations the first day will in­
clude these:
•“ Challenges of the 80s: Issues
Facing the Community Banker“ —
Keynote address by O.J. Tomson,
president, Citizens National Bank,
Charles City.
•“ Cost Analysis of E FT“ —John
Landgraf, Peat Marwick, Mitchell &
» “ ATM Placement“ —Mitchell A.
Christensen, senior operations of­
ficer, Iowa-Des Moines National
Bank, Des Moines.
•“ Glimpse of the Future“ —Neil
Milner, executive vice president,
Iowa Bankers Association.
Presentations the second day in­
•“ Productivity Improvement“ —
George Hickerson, E.J. Feeney &
Associates, Reddington, Conn.
•“ Beyond the A T M “ —John Sikkink, executive vice president, IowaDes Moines National Bank, Des
•“ The Future Role of the Federal
Reserve in EFT“ —Robert Fitzger­
ald, senior vice president, Federal
Reserve Bank of Chicago.
•“ M ic ro co m p u te r P re se n ta ­
tion“ —Douglas Hillman, professor
of accounting, Drake University,
Des Moines.
In addition to meals and social
events after-hours, the conference
will feature an exhibit by major ven­











Federal Reserve Bank of St. Louis

dors in all fields of EFT service.
The registration fee is $95 for ITS
members participants and $200 for
ITS non-members or non-partic­
The conference dates replace the
January 17-18 dates announced ear­
lier, but changed to February 3-4
after a scheduling conflict was

Harlan Banker Promoted
The board of directors of Harlan
National Bank announced the pro­
motion of Steve Ohlinger to assis­
tant cashier. He began his career
with the bank as a trainee in 1977.
Mr. Ohlinger works extensively
with the bank’s new computer sys­
tem as well as customer service and
teller duties.

New V.P. at Elma Bank

Two Join Bank
Training Program

Howard L. Poitevin, president of
Peoples Savings Bank, Elma, has
announced that
Richard C. Buen­
neke re ce n tly
joined the bank
as assistant vice
p re s id e n t
loans and opera­
tions. He is a
graduate of Iowa
Bankers School
at Iowa State
University and
has completed the Iowa School of
Banking at the University of Iowa.
Mr. Buenneke brings ten years of

Max A. Smith, president, the
Poweshiek County National Bank,
announced that Jerald Sullivan and
Daryl Petty have joined the bank as
trainees for loan officer positions.
Mr. Sullivan has an M.S. degree
in Agricultural Education from
Montana State University and has
taught vocational agriculture for
two years.
Mr. Petty has an M.S. degree in
Agricultural Economics from the
University of Delaware. For the
past four years he has been an exten­
sion economist with the Kansas
State University Farm Manage­
ment Association.

New Bank Facilities In Wall Lake

The Wall Lake Savings Bank recently move into its new building. In November an auction
of the old furniture was held and the proceeds were given to the six local churches, Twilight
Acres Nursing Home and the Wall Lake Library. The auction realized over $7,000. The bank
celebrated its 100th anniversary on December 10-11 and hosted over 1,000 guests. In con­
junction with the anniversary, the bank announced that the old bank building had been pur­
chased by the City of Wall Lake. It will be completely remodeled and house the Wall Lake
Library. John Goodenow, bank president, made a personal contribution to the town for the
library purchase.
Northwestern Banker, January, 1983


Iowa News

11:30 Ladies’ Luncheon and style f
show—Marina Inn. Bus ser­
vice available between the
ANKERS and their spouses to the chairmanship, in keeping with
Hilton Inn and Marina Inn.
from Group 1 in northwest the traditional policy of odd-num­ 11:30 D elegates’ Luncheon—M a­
Iowa, as well as visiting bankers
bered groups electing officers in oddrina Inn.
from Nebraska and South Dakota
numbered years.
Presiding—Howard Logan,
will gather again at the Marina Inn Following the same format as pre­
chairman, Group 1 .
in South Sioux City next month for
vious years, the Sioux City Bankers
Report of nominating com­
the annual meeting of Group 1 of the
Association will host the Friday
mittee and election of officers.
Iowa Bankers Association. The meet­
night reception, February 11 . Presi­
IB A Activities—L.C. “ Bud” ||
ing dates are February 11 and 12. dent of that group is Michael J.
Pike, president, Iowa Bank­
Presiding at the business sessions Moeller, president of Northwestern
ers Association, president,
will be Group 1 Chairman Harold H. National Bank.
Farmers Savings Bank, Grun­
Harms, president, First State Bank,
The guest speaker will be W.T.
dy Center.
Brunsville, and senior vice presi­ Maloan, senior vice president and di­
Remarks—Neil Milner, execu- q
dent, LeMars Savings Bank. Group rector o f education and training,
tive vice president, Iowa
Secretary Bruce M. Kolbe, presi­ Thunderbird Financial Corp., Shaw­
Bankers Association.
dent, United Central Bank & Trust nee, OK. The program follows:
Remarks—Thomas H. Hus­
Company, is scheduled to advance
ton, Iowa superintendent of
Friday, February 11
banking, Des Moines.
7:00 Registration desk open—
derbird Financial Corp., Shaw­
Marina Inn.
nee, OK.
8:00 -11:00 Social hour and hors
d ’oeuvres, courtesy of Sioux P.M.
2:30 Adjournment.
City Bankers Association.
6:30 Social Hour.
Saturday, February 12
7:30 Banquet. Entertainm ent—
Mearl Lake Orchestra for
9:00 Registration—Marina Inn.
your listening and dancing
Exhibits open.
□ •

Group 1 Meets Feb. 11-12 in Sioux City


Heads Farm Managers
And Rural Appraisers





Iowa Bankers Group 1 Annual Meeting
February 11-12, 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 FRASERBanker, January, 1983
Federal Reserve Bank of St. Louis

Jesse M. Dowell, Chicago, was
elected recently as the 46th presi­
dent of the American Society of
Farm Managers and Rural Apprais­
ers, a position held in 1946 by his
father. Mr. Dowell is a vice presi­
dent of Continental Bank, Chicago. «
Carl F. Hertz, president of Hertz
Farm Management of Nevada, la.,
was awarded the prestigious D.
Howard Doane Award, the Society’s
highest honor, for his dedication
and long service to the Society. He
was the Society’s president in 1959
and holds both of its professional

Sioux City Bankers Elect
New Officers
Michael J. Moeller, president of
Northwestern National Bank in q
Sioux City, has been elected 1983
president of the Sioux City Bankers
Association. He succeeds Leslie H.
Olson of Toy National Bank.
The new vice president elected at
the annual meeting last month is R.
E. Hagen, president of Security Na­
tional Bank.
Darlene Brennan of Northwestern
National Bank will be secretary- 0


Let Dwaine Stinger, Vice
President, or R om a Kroll,
Assistant Vice President,
show you h ow their experi­
ence can help y ou get fast
action in handling Federal
funds transactions, m on ey
transfers, security purchases
and sales.

Gary Stevenson

Joe Broders

Vice President
Correspondent Banking

Correspondent Banking

C hoose one o f 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 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 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 MasterCard
and Visa that includes card issuing, processing,
corporate cards, account servicing and assis­
tance with merchant calls. And you get the
geographic advantages of being closer to your
Bank Card Center.


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 11 & 12.

First National Bank in

MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983


Iowa News

Andrew Bank Purchased


Tom C. Dunlap, chairman and
president of South Story Bank &
Trust in Slater, and Everett Sather,
CPA, Ankeny, have purchased the
Andrew Savings Bank from Lorna®
H. Wissink, chairman, concluding
negotiations that had been under­
way for a number of months.
Andrew Savings Bank recently
received permission to move its®
charter to Bellevue, also in Jackson
County, and will retain an office in
Andrew, as well as a previous office
in LaMotte.
Mr. Dunlap will succeed Lorna®
Wissink as chairman. He said Rich­
ard L. Bayless, president, and all
other officers will continue in their
same positions.


UCB Appoints Two

Ron Kiel’s agricultural ex­
perience and recognized expertise
in the area of cash management
has given him a unique under­
standing of community banking
It’s also given him a personal
commitment to his correspondent
bank customers. They know they
can count on Ron to provide not
only the best in ag overline, data
processing and cash management
services, but the information,
advice and guidance necessary for
a better, more profitable operation.
If that’s the kind o f service
you’d like to be able to count on
from a correspondent banker, call
Ron Kiel at Security National today.


The board of directors of United
Central Bank & Trust Company of
Estherville recently announced the*
appointment of Joseph R. Simmens
to the position of vice president
-commercial and real estate lending.
Mr. Simmens is a graduate of
Iowa State University with a BA
degree in economics and industrial
administration. Prior to joining
UCB, Mr. Simmens was employed
by the State of Iowa, department of
banking, as an examiner for four
years. His most recent position was
executive vice president, Farmers
State Bank, Jesup.
The board also announced the pro­
motion of Vaughn Brua to assistant
vice president in charge of consumer
loans. Mr. Brua has been on the
UCB staff for 13 years and is a
graduate of Mankato State Univer­
sity where he received his degree in
Business Adminstration.
In other action taken Michael D.
Miller, who joined the staff in 1982,
was appointed internal auditor.

Winterset Banker Dies

People with
an interest
in you.

Sioux City, Iowa 51101 Member F.D.I.C
Federal Reserve Bank of St. Louis

Neil E. Kelley, age 85, passed
away December 8 , 1982. He was a 9
50-year banker who started his car­
eer in Altoona and later helped or­
ganize what is now the Farmers and
Merchants State Bank in Winterset.
He was president and a member of ^
the board of directors until he re­
tired in 1979.
He is survived by his wife, Ina;
one daughter, Berneice of Winterset;
and one son, Eugene of Jacksonville, (¡>
Northwestern Banker, January, 1983



If the answer is yes, then NOW’S THE
TIME to look at the competitive advantage
for your bank...your own leasing company,
which can oifer your customers a low cost
alternative for financing the equipment they
need but have delayed purchasing.
Today’s high interest rate environment
has put a real strain on your customer’s
cash flow, and has probably reduced their
ability to qualify for loans. By offering your
customers the ability to lease, they will
improve their cash position and will be able
to increase their borrowings from your
bank. By operating your own leasing com ­
pany, you will enhance your relationship
with your customer and broaden the range
of services you offer.
UCB Leasing Corporation is familiar
with and experienced in meeting the needs
of banks and their customers. We have the
expertise to assure that your venture into

leasing gets started right. And, we will direct
your full documentation in the critical areas
of accounting, marketing and tax sheltering.
If you are concerned about your cus­
tomers, your bank’s shrinking loan portfolio
and loss of market share, you need to
investigate the leasing alternatives. NOW’S
THE TIME to call (without obligation) Bill
Ranes or Tim Mercer at (515) 245-7222 to
find out how UCB Leasing can help you and
your customers.

Bill Ranes

Tim Mercer

L O C U S T AT S IX T H , D E S M O IN E S , IO W A 50309
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983


Iowa News

IBA Sponsors IRA Update

the promotion of Ken Hykes to sen-^
ior vice president. He graduated^
from South Dakota State Universi­
ty in 1968 and started with Brenton
Bank and Trust the same year. He
transferred to the Dexter Office in^
1969 and was promoted to manager
of that office in 1971.

Brenton Promotions

Left to Right Dave Driskell, v.p., la. St. Sav. Bk., Creston; Sherry Posusta, pers. bkg. rep.,
Security Sav. Bk., Marshalltown, and Ted Davis, v.p., Clarke City St. Bk., Osceola, discuss
seminar topics with Collin Fritz during recent IRA review seminar sponsored by Iowa
Bankers Assn. The seminars were held in Des Moines, Iowa City, Storm Lake and Waterloo.

Chuck Gustaveson Joins
Bank in Albuquerque, N.M.
Charles Gustaveson has been
elected vice president of the First
National Bank in Albuquerque,
N.M., and manager of the bank’s
largest branch
office. Mr. Gus­
taveson joined
Hawkeye Bancorporation at
First National
Bank in Clinton
in 1974. He was
elected president
and chief exec­
u tiv e
o ff ic e r
there in July,
1976, then in September, 1980,
transferred to Des Moines to as­
sume the same position with First
Federal State Bank, which recently
was re-named Hawkeye Bank-West.
Prior to that he was widely known in
midwest banking as regional man­
ager of National Fidelity Life Ins.,
Co., headquartering in Des Moines.

Heads Trust Division
Thomas K. Killion has been named
chairman of Hawkeye Bancorporation’s trust division. He was vice
president and senior trust officer of
First National Bank, Clinton, since
1977. He is a 1964 graduate of
Drake University Law School.

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

Director Named in Adel
Wayne Geadelmann, president of
Brenton Bank and Trust Company
of Adel, announces the election of
Jim Van Werden to the board of di­
rectors of Brenton Bank and Trust
Company. Mr. Van Werden is the
senior partner in the law firm of Van
Werden and Hulse in Adel.
Mr. Geadelmann also announced

William H. Brenton, chairman of#
the board of directors of the Brenton
State Bank in Dallas Center, an­
nounced these promotions: Bruce
Seymour to president; Michele Blair
to assistant vice president, and#
Doug Pullin to assistant cashier.
Mr. Seymour began his banking
career in 1970 and is a graduate of
University of Wisconsin Graduate
School of Banking, the University o f#
Nebraska Trust School and the Uni­
versity of Oklahoma Lending School.
Former bank president Roger Winterhof has been named vice pres­
ident of loan administration for®
Brenton Banks, Inc. He will contin­
ue to serve on the board of directors
of Dallas Center Bank.
Mr. Brenton also appointed Milt
Heifner to office manager of the®
Woodward Brenton Bank.


ESPONDING to customer de­ que architectural feature will be the
mand, the Toy National Bank glass block walls near the entrance
will open a full-service Morningside which, while very attractive in the
branch office in August, 1983. The daylight, will have a crystal effect
new facility, which will be construc­ when backlit at night.
ted at the Southern Hills Mall, will
In recognition of the need for con­
enable Toy customers in that area to servation, the new building will have
have complete financial service. The a variety of energy-saving features.
facility will provide the convenience Special landscaping techniques will
of lobby tellers, drive-up tellers, an be used to take advantage of the
automatic teller machine and cus­ earth’s natural insulation. On two
tomer conference areas for personal sides the ground will gently slope to
financial counseling.
cover more than half of the outer
In construction concept, the wall. The building will actually apMorningside branch will be coor­ pear to be nestled into the hillside,
dinated with T oy’s downtown facili­ thus preserving valuable energy.
ty while maintaining a unique per­
Architects for the project are
sonality of its own. Like the main of­ FEH Associates, Inc. General con­
fice, the 2700 square foot branch will tractor for the building is Holst Conbe white with a black accent. A uni- struction.






our brains.



Just about any correspondent bank can lend you money. What you usually can't
get is responsiveness and service. Especially from a majority of downtown city
banks. Correspondent banking isn’t as important to them as it was ten or twenty
years ago. They’ve got other irons in the fire, like the Fortune 500 companies
they cater to, and multi-million dollar deals.
We added 42 correspondent banks at Drovers Bank of Chicago in 1981 and these
relationships are important to us. And that makes you important to us. At Drovers
Bank, you deal with quick-thinking people who expedite and faithfully follow
through on any and all correspondent services you want and need. Our people
have specialized knowledge in every service area of correspondent banking. You
get the benefit of top level thinking and top level service every working day.
Call John Crotty toll-free at 800-621-8991 (in Illinois, 800-572-2498). Put our
mental and financial resources to work for you. They’re yours for the asking.

T h e R esp on sive C orresp on d en t

fZ? Drovers Bank

of Chicago
4 7 th & Ashland Avenue, Chicago, Illinois 60609, 312-927-7000


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

Northwestern Banker, January, 1983


Iowa News

MNB Installs “ Cash and Go”
The Merchants National Bank of
Cedar Rapids has installed drive-up
electronic banking facilities that
make it possible for a customer to
withdraw funds in 15 seconds —
without the driver having to leave
the car. The system, which Mer­
chants calls "Cash and Go,” was
installed at three of the bank’s
branch offices. It is the first such
installation in Iowa and possible in
the entire Upper Midwest.
The "Cash and Go” units can be
used only for withdrawals — which

represent 75 percent of the bank’s
electronic banking business, and al­
though the units are located on bank
property, the equipment is pro­
grammed to accept all electronic
banking cards.

Red Oak Officer Named
The board of directors of The
Montgomery County National Bank
has announced that Donna Carlson
has been elected an investment of­
In her capacity as investment of­
ficer, Mrs. Carlson and Margaret


Tom Pohlman
Northwestern’s Correspondent Banker
Is On Your Side!
712/ 252-4141

Of Sioux City
An Affiliate of Northwest Bancorporation

Member FDIC

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

Lindquist will be working in t h ^
newly created investment center,
Mrs. Carlson has been with the
Montgomery County National Bank
since 1955
Mrs. Lindquist has been with the®
bank since 1961

Forest Lewis Resigns
From Osceola Bank & Trust
Forest T. Lewis has resigned as
executive vice president of Osceola
Bank & Trust Co., where he had beer^
employed since September, 1979.
Mr. Lewis be­
gan his banking
career in 1933 at
T e r r il
S ta te
Bank. He left
that bank as
cashier in 1942
to serve in the
A rm y Finance
Department in
World War II.
When he returned
in 1946 he joined the Iowa State
Bank in Des Moines. He was called®
back to Army service breifly during
the Korean conflict and went back to
Iowa State Bank as a vice president.
In 1965, Mr. Lewis joined Plaza
State Bank in Des Moines six years®
after that bank was founded. He was
advanced to executive vice presi­
dent in January, 1966, and was giv­
en trust officer duties in January,
1969. He was elected president in®
March, 1975, serving in that post
until his retirement from Plaza
State in August, 1979.
Mr. Lewis had been a member of
the American Institute of Banking, ®
completing many of the AIB course
offerings and serving actively in the
Des Moines Chapter in many posts.
In 1977, while he was president at
Plaza State Bank, the Des M oin es#
Chapter honored him as Banker of
the Year.
Mr. and Mrs. Lewis will continue
to live in Des Moines.


Luana Advancements Told
Recent promotions at the Luana
Savings Bank include Dale A. Linderbaum to assistant vice president
and commercial loan officer, Della L.
Cowell to cashier and operations of­
ficer, and Janice K. Bruns to install­
ment loan officer.


There are a lot of people
in this world who are going
to make a will— someday—
when they get around to
it . . . because they have
a pretty good idea what
they want to leave to their
family, friends, church and
others. But unless they
make that will, the state will
decide who gets what and
chances are that isn’t what
they wanted at all.
So, do it your way. Make
a will and if you can see
your way clear to include
the American Cancer Soci­
ety, you will be playing a
significant role in the fight
against cancer.
We receive some large
bequests and many very
modest ones. We’re grate­
ful for all of these because
they help us to continue
our research projects, our
public and professional
education and patient
service and rehabilitation.


There are many ways to
fight cancer and a bequest
in your will is one of the
best. The place to start is
with your attorney. If either
of you want more informa­
tion about the Society,
just call your local ACS
Unit or write to the
Crusade Department of
the American Cancer
Society, 777 Third Ave.,
New York, NY 10017.


This space contributed by the publisher as a public service.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983


Iowa News

Clyde McEntire, Jr., Dies

Clyde McEntire, Jr., 56, died
December 4 after a five month il­
lness with amyo­
trophic lateral
sclerosis. Mr.
M cE ntire was
known to hun­
dreds of bankers
in Iowa and sur­
rounding states
in his years of
s e r v ic e
w ith
D elu xe Check
Printers, Inc. As
zone manager, he headquartered in^
Des Moines, but he maintained his
residence for many years at 1904
Knollwood Drive in Marshalltown,
la. 50158.
Interment was held December 6*
and a memorial service was held on
December 8 in Marshalltown. He is
survived by his wife, Barbara; a
daughter, Kileen Rezac of Mar­
shalltown; two sons, Robin of^
Philadelphia, and Brett at home.


What’s new
in correspondent banking?
At Valley National Bank it’s our new7
vice president and head of our Cor­
respondent Banking Department.,.
Mark Christen.
Whenever your bank has a need
for any correspondent banking service,
Valley Bank’s Mark Christen responds.
He’s always ready to serve your needs
in person or over-the-phone, providing
you with Valley Bank’s full range of
correspondent services, from overline
assistance to transit services.
You can rely on Mark Christen to
respond...professionally and quickly. He’s
the new dimension we’ve added to cor­
respondent banking at Valley National
Bank, and his eagerness to respond to
your needs is the dimension that sets
us apart.

Joins Clinton Bank
The board of directors of the
Gateway State Bank appointed Wil­
liam R. Mungen an assistant vice
president. For
th e p a s t 30
years, Mr. Mun­
gen has been em­
ployed by the
Federal Deposit
Insurance Cor­
poration in var­
ious capacities.
M ost recently,
he served as
commercial re­
view section chief at the FDIC’s
headquarters in Washington, D.C.
His duties included reviewing and
analyzing information contained in
bank examination reports and eval­
uating data relating to banks apply­
ing for FDIC insurance.
Mr. Mungen is a graduate of the
Stonier Graduate School of Banking
at Rutgers. He will assist both in the
loan and operations area of the


Valley National Bank in



Call toll free (800) 622-7262
Digitized Northwestern
for FRASER Banker, January, 1983
Federal Reserve Bank of St. Louis


Waterloo Hosts NABW
The 1983 N ABW State Con­
ference will be held June 1-3 at the
Conway Civic Center in Waterloo.
Rooms will be available in the new
adjacent hotel. The conference had
previously been scheduled for May
18-20, 1983.


IBIS does It all.


Because bank insurance
is all we do.
Over a decade ago, Iowa
Bankers Insurance and Services was
created for a single purpose. T o serve
the insurance needs o f Iowa banks.
i\nd that’s just what w e’ve done.
With traditional coverage such as
credit life and D & 0 liability. With
speciid employee benefit packages
such as health and life. And by
creating beneficial new services for
banks such as the IDEA Annuity.
Our years of experience have
taught us that no two banks have the
same insurance needs. So we tailor all
our coverages, making sure precise
insurance needs are being met at an
afforcable cost.

W e’ve also developed strong
working relationships with many
major insurance companies, making us
an independent agency. It’s our job to
find the best product at
the best price.
And, most importantly, w e’ve
cultivated a staff whose expertise
in the fields of banking and insurance
are unmatched by any other bank
insurance agency in the country.
A ll Iowa banks own IBIS. Your
bank is one of them. So why not give
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You’ll be surprised at how
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Iow a B ankers Insurance & Services, Inc.
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(515) 286-4300
Call our toll F R E E W A T S n u m ber 1-800-532-1423
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983




N DECEMBER the twelve United
Central Banks, located through­
out Iowa, began to offer brokerage
services to their customers, accor­
ding to Kenneth
M. Myers, presi­
dent and chief
executive officer
of the parent
company, United
Central Bancshares, Inc. Cus­
tomers of these
banks will now
be able to direct
the purchase and
sale of stocks and bonds at commis­
sion rates substantially lower than
traditional brokerage charges.
In making the announcement, Mr.
Myers stated this service is being of­
fered as a result of the growing
desire on the part of United Central
Bank customers to handle all of
their financial affairs with one finan­
cial institution. He added that the
new brokerage service also reflects
the disintegrating legal and cus­
tomary boundaries separating com­
mercial banks from other financially
oriented institutions.
This new service is designed for
investors who make their own in­
vestment decisions and do not re­
quire research and advice from a
brokerage firm. According to Mr.
Myers, market studies indicate that
the trend for independent invest­
ment decision making has never
been more prevalent than today, and
the trend continues to grow. United
Central Banks will not provide any
investment advice and will only buy
or sell securities at the direction of
for FRASERBanker, January, 1983
Federal Reserve Bank of St. Louis

the investor. The savings resulting
from not providing research, infor­
mation and advice is passed along to
the investor in the form of lower
commission rates.
Individuals, corporations, part­
nerships, joint accounts of all types
and custodians are eligible to estab­
lish a brokerage service account at
any of the banks. Mr. Myers also
pointed out that in order to open the
brokerage account, the investor will
be required to have a deposit ac­
count at the bank.
One of the most innovative fea­
tures of the brokerage account is
that excess cash, which might occur
for a short time after an investor
sells securities, can immediately
begin earning money market rates of
interest on an FDIC insured ac­
count. This is made possible by
automatically transferring available
cash in the brokerage services ac­
count to the new United Central
Bank Insured Money Market A c­
count. Mr. Myers emphasized that,
unlike most other high interest ac­
counts, the Insured Money Market
Account allows investors instant ac­
cess to their money for additional
stock or bond purchases, for other
types of investment opportunities,
or for immediate expenditures for
consumer items.
* * *
Eugene G. Precht, chairman and
chief executive officer of the IowaDes Moines National Bank, recently
announced the following personnel
actions following the December
meeting of the bank’s board of direc­


Garry R. Frandson has been named
vice president, financial institu­
tions. He joined the Iowa-Des
Moines in 1975 as a management
trainee and has held positions in the*
dealer loan and credit departments
as well as the retail banking division
of the bank. He was named corre­
spondent banking officer in June,
1979, and was promoted to second*
vice president, Iowa banking, in Ju­
ly, 1981. He is a graduate of the
University of Iowa.
John P. Rigler has been named,
vice president, investment services,
and will be assuming the position of
sales manager for the investment
services department. He joined the
bank in 1976 as a management,
trainee and held positions in the
credit department and retail bank­
ing division of the bank. He was
named correspondent banking offi­
cer in January, 1979, and was named ^
second vice president, Iowa bank­
ing, in February, 1981. He was sub­
sequently promoted to second vice
president, investment services, last
March. Mr. Rigler received his M BA m
degree from the University of Iowa
Naughton has
joined the do­
mestic banking
d ivision as a
banking officer.
He joined the
Moines in 1977
as a m anage­
ment trainee and
was subsequently named bond re­
presentative in the investment de­
partment in June, 1978. He was pro­
moted to bond investment officer in
February, 1979, and to international
banking officer in July, 1980. He is a
1977 graduate of the University of
* * *
Robert G. Millen, president and
chief executive officer of United



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

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

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

Northwestern Banker, January, 1983


Iowa News

Des Moines Hospital Installs ATM

as vice president to join the Mer-^
chants National Bank of Topeka/
where he became president. He left
that post to move to Des Moines.

4 Promoted at Mason City


The board of directors of the First
National Bank of Mason City an­
nounced the election of Daniel L.
Brady, vice president; Robert Sleep,
vice president-administration; J #
Robert Umbarger, controller; and
Donald G. Friest, assistant vice
Mr. Brady began his banking
career with the Commercial T rust#
Jane Seibel of Des Moines General Hospital, cuts the ribbon to the hospital’s new and Savings Bank, Charles City, in
Automatic Teller Machine. The ribbon is held by David Walthall (left), president of
1971. In 1979, he was elected agri­
Hawkeye-Capital Bank & Trust and Terry Lane (right), assistant director of finance for the
cultural loan officer at the First
hospital. Mark Rathbun of Hawkeye-Capital looks on. With the addition of the ATM,
hospital employees and visitors will have access to their personal accounts 24 hours a day,
National Bank, and was promoted to
7 days a week for most normal banking transactions. The ATM is owned by Hawkeyeassistant vice president in 1980.
Capital and is accessible to anyone carrying a debit card from their own bank.
Mr. Sleep started his banking
career with the Citizens Savings
Central Bank of Des Moines,<■an­ Stores here. Eight are in Des Bank, Anamosa, in 1969. He also
nounced that Dan McGowan has Moines, one is in West Des Moines worked for M erchants N ational
joined the bank as vice president in and one is in suburban Pleasant Hill. Bank Computer Services, C e d a r#
metro commercial services division.
UCB also has an ATM at Mercy Rapids, and City National Bank of
Mr. McGowan was president and Hospital and six ATMs in its main Cedar Rapids, where he was a cash­
chief executive officer of Industrial bank and offices, giving the bank a ier. In 1980, Mr. Sleep was elected
Supplies, Inc. of Des Moines. Prior new total of 17 ATMs.
correspondent banking officer of the
* * *
to that position, he was vice presi­
First National Bank, and was pro- ®
William D. Bunten, who resigned moted to assistant vice president in
dent and manager of retail banking
at Capital City Bank (now known as as executive vice president of United 1981.
Central Bancshares, Inc., November
Hawkeye Capital Bank and Trust).
Mr. Umbarger, 51, is a graduate of
1, became president and chief opera­ NABAC School for Bank Audit Con­
* * *
tions officer of First National Bank trol and Operation at the University •
Kenneth M. Myers, president of of Wichita, Kan., December 1.
of Wisconsin. He began his banking
United Central Bancshares, Inc.,
Mr. Bunten,
career with the First National Bank
and John J. McLaughlin, chairman 50, joined United
of Mason City in 1958.
of the board, Plaza State Bank, Ur­ Central Bank of
Mr. Friest, 44, was born in Britt,
bandale, jointly announced that Des Moines in
Iowa. He began his banking career ®
management of the two companies April, 1947, as
with the First National Bank, and
have agreed in principle on the senior executive
will continue his duties in the op­
terms of a tender offer whereby vice president,
erations area while also serving as
UCB will offer to exchange shares of chief operating
secretary to the board of directors
its common stock for all of the out­ officer and direc­
of the bank.
standing shares of common stock of tor, as well as
Plaza State Bank.
senior vice presi­
Joins Denison Bank
Plaza State Bank has four bank­ dent for asset/ W.D. BUNTEN
David Olson has joined the First
ing offices. Its assets exceeded $90 liability management o f UCB
National Bank of m
million on September 30, 1982.
holding company. In August, 1981, Denison as vice
Mr. McLaughlin stated that “ our he resigned his bank position to
board of directors is looking forward work full-time in the holding com- president. Mr.
to the affiliation with United Cen­ pany. He was then advanced to ex­ Olson formerly
tral Bancshares which will give us ecutive vice president for asset/lia- was a ssista n t
the additional benefit of its strong bility administration and loan ad­ vice president at
First Northwest­
capital position and the ability to of­ ministration.
Bank of Red
fer additional financial services to
Mr. Bunten graduated from Ba­ W in g , Mi nn. ,
our customers, including new bank­ ker University in Baldwin, Kan., in
where he man­
ing products and mortgage banking 1953, received his law degree from
aged their agri­
and leasing services, while remain­ Washburn University in Topeka in
cultural lending
ing an Iowa-owned and locally man­ 1956, and an M BA from the Univer­
and human reD- OLSON
aged institution.”
sity of Pennsylvania in 1958. He sources departments.
United Central Bank of Des began his banking career with The
Mr. Olson received his B.A. de­
Moines, N.A., is opening 10 new National Bank of Detroit, working gree in accounting from Luther Col- ^
ATMs this month in Hy-Vee Food there 10 years. In 1967 he resigned lege and joined Banco in 1977.
for FRASERBanker, January, 1983
Federal Reserve Bank of St. Louis

Iowa News

PICTURED at a press conference in conjunction with their appearance at the lowa-Des
Moines National Bank’s 1983 Business Trends Conference were these participants, from
left to right: Seated— Gary M. Wenglowksi, sr. econ. & partner, Goldman Sachs & Co., New
York; E.E. Bud Precht, chmn. & c.e.o., and George F. Milligan, pres. & chief oper. off., both
with the host bank, and Jack MacAllister, pres., Northwestern Bell, Omaha. Standing —
John F. Anderson, pres., Farmland Industries, Kansas City; Edward J. Crane, pres. & c.e.o.,
Ozark Airlines, St. Louis, and Ted Townsend, pres., Townsend Engineering, Des Moines.


paper as low as 7% in this cycle.
Long-term government bonds could
go as low as 10-10Va , with upward
pressure contained. Overall, I see
100-150 basis points less, or at the
same level as present on short-term;
long -term about the same to 50 bas­
is points less.
“ The key to the ’84-’85 economy
is eliminating the structural deficit;
i.e., the part that wouldn’t be melted
away by recovery. Today, I estimate
a $60-$70 billion structured deficit
and $105-$110 non-structured defi­
“ Inflation no longer inflates reve­
nues, but it continues to inflate enti­
tlements. The deficits of ’84-’85
could impact ’83 if people see no cor­
rection coming in the structural
deficit.’ ’

Morning Speakers
The Business Trends conference
began, as usual, with speakers who
At lowa-Des Moines Business Trends Conference—______
geared their remarks to their Iowa
business and how the economy will
affect that Iowa business in 1983.
STRONGER than expected re­ All this means the Fed has shifted to Guests were welcomed by Eugene G.
covery is seen for 1983 by Gary a moderately stimulative position. “ Bud’ ’ Precht, chairman and chief
M. Wenglowski, senior economist Chairman Volcker still preaches the executive officer of the lowa-Des
and partner in Goldman Sachs and fight against inflation and needs to Moines National Bank, and he also
presided at the noon luncheon. In­
Company, New York, according to do so.
“ Second, The Federal budget. Its troducing the four morning speakers
his economic outlook presented to
600 businessmen and bankers last impact on the economy depends also was George F. Milligan, president
month at the lowa-Des Moines Na­ on Fed monetary policy. The past and chief operating officer of the
tional Bank’s 1983 Business Trends few years we’ve been driving a car bank.
Those four speakers were: John F.
with the accelerator to the floor
After citing a number of factors (budget and spending) but the brake Anderson, president, Farmland In­
affecting the economy both domesti­ on (Fed conservative policy). Now, dustries, Kansas City, Mo.; Ted
cally and internationally, and the op­ we have the former, and the Fed has Townsend, president, Townsend En­
tions available for 1983, Mr. released the brake. I believe the ma­ gineering, Des Moines; Edward J.
Wengloswki said, “ My analysis is jor reason for developing countries Crane, president and chief executive
that more recovery is more likely. going bankrupt and our firms going officer, Ozark Airlines, Inc., St.
There are two alternatives: 1. An bankrupt has been the tight money Louis, Mo., and Jack MacAllister,
chairmen, Northwestern Bell Tele­
aborted recovery or, 2. One stronger policy of the Fed.
“ Third, the consumer is trying to phone Co., Omaha.
than expected. This recovery will be
Mr. Anderson said economic con­
weaker than other post W W II re­ pick up spending. Consumers are
coveries, but three things suggest starting to buy more now, and are ditions in developing countries to­
starting to buy more on time. Also, day affect the total Iowa business
this higher recovery prediction.
“ First, recent changes in Federal wage increases have been running climate. Iowa’s best bet, he said, is
Reserve Board policy. It is clear higher than inflation so workers for exports to improve the rural
they indicate a major change in Fed have more to spend. Consumers us­ economy. However, that is not hap­
policy objectives. Its objective from ually pick up their spending while pening because international reces­
October, 1979, to July, 1982, was to unemployment is still reaching its sion is precluding developing na­
keep the money supply growth at a peak. The economy will hit bottom tions from buying our farm pro­
fixed level. Since July its objective in one of the winter months; the ducts, while U.S production is at a
has been to sustain an economic re­ recovery the rest of 1983 will be record high. As a result, he said,
covery. So, I expect it will support moderately stronger than what prices domestically will remain rel­
lower interest rates and more credit most people are now expecting. You atively flat; consequently, farm in­
expansion. The rise in the stock mar­ can expect the Fed to lower interest come will be low for the third consec­
utive year.
ket since July has increased hold­ rates more.
He sees production expenses in­
“ We believe profits will respond
ings of consumers by $250 billion.
Consumers also have more liquid very strongly to any recovery—up creasing by 4.5%, down consid­
holdings. We expect a 1.5 million about 33% over 1982. You could see erably from the 8-12% increases of
start rate in housing—up from ’82. 90-day CD rates and commercial recent years. Falling farm land

Speakers See Hopeful Signs for ’83

Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1983


Iowa News

values are deteriorating the equity
in farms. “ We need to get on a
strong, demand-oriented program,”
Mr. Anderson said. “ We need pro­
duction controls. We have to come
up with a farm policy that will be
understood by all. There’s no such
thing as free trade. We are compet­
ing with subsidized prices all over
the world. There’s only five cents
worth of wheat in a dollar loaf of
“ The short-term outlook for the
U.S. economy remains substantially
weak. There will be slow growth in
Iowa’s ag volume. I do think the
prospects for a turnaround look bet­
ter today than they’ve looked for a
long time. The feed business is good.
The fertilizer business is going to
get better. The world needs what
American farmers produce. We
think our exports will grow.
“ The total U.S. farm sector is
stronger now after having under­
gone a rigorous slenderizing that’s
worked toward optimum efficiency.
W e’ve proved we can survive—most
of us—a brutal, economic storm.
Now, today, there’s a new confi­
dence in American agriculture...we
are strong...we can endure.”
Mr. Townsend gave a personal re­
view of the philosophy under which

his company operates without a
union—including employees in the
company as “ part of the family”
that makes them feel they are work­
ing together. This philosophy has
made Townsend unique and has
built an exceptional record of
growth, profits and company loyalty
known nationwide.
Mr. Crane reviewed the impact of
deregulation on the airline industrty
and the crucial marketing, sales and
purchasing decisions that resulted
from that decree. In the process,
some Iowa locations were removed
from Ozark service, whil others have
been added. He said Ozark was pro­
fitable in 1981, earning $17.1 mil­
lion. By comparison, Ozark earned
$8 million in the first three quaters
of 1982. He said Ozark intends to
“ add destinations, and Iowa service
will increase. We will promote mar­
kets, and Iowa passengers will ben­
Mr. MacAllister reviewed quickly
the Justice Department settlement
that the Federal court approved to
end an eight-year anti-trust suit. He
then described in broad detail how
Northwestern Bell and other Bell
companies will be organized into in­
dependent operating companies, un­
related to AT&T. Computers, home

Committed to
making your
bank stand
apart from the

banking services, and a wide array £
of new types of communications
geared to telephone lines will soon
be offered, he said.

Elected in Council Bluffs


First National Bank’s board of
directors announced the election of
Willard J. Lenners, vice president
and manager of the commercial lend­
ing department and Thomas D. •
Johns, vice president of the real
estate department.



Willard Lenners attended Mid- •
land College and is a graduate of the
Commercial Lending School, Mid­
west Banking School and the Na­
tional Advanced Agricultural Len­
ding School. Mr. Lenners was with #
Bank West in Pierre for twelve
years prior to coming to First Na­
Thomas Johns attended Chadron
State College and was regional •
manager for American Charter
Federal Savings and Loan Asso­
ciation before joining the bank.



A corn P r in t in g ............................................................................ 8
A m erican N a tion al Bank & Trust, St. P a u l........................ 27
Bankers Trust Co., Des M o in e s ............................................. 50
C entral Bank o f D e n v e r.......................................................40-41
C o n tin e n ta l Bank, C h ic a g o .................................................... 3 ^
F irst
F irst
F irst
F irst
F irst

N a tion al
N a tion al
N a tion al
N a tion al
N a tion al

Bank, L in c o ln .................................................. 49
Bank, M in n e a p o lis .....................................34-35
Bank, O m a h a .................................................. 45
Bank, St. P a u l............................................. 30-31
Bank, S ioux C i t y ............................................. 53

Gross, Kirk Co., W a te rlo o .........................................................67
Iowa Bankers Insurance & Services, Inc................................ 61 £
low a-Des M oines N a tio n a l B a n k ........................................... 68
Kooker, E.F. & A s s o c ia te s ...................................................... 56
M erchants N a tion al Bank, Cedar R a p id s ........................... 2
M idland N a tion al Bank, M in n e a p o lis .................................. 24
N a tion al Bank o f C om m erce, L in c o ln .................................. 47
N o rthw e stern N a tion al Bank, M in n e a p o lis .........................10 a
N o rthw e stern N a tion al Bank, Sioux C i t y ............................. 58 ™
O ffic e C oncepts, W a te rlo o ...................................................... 66
S e curity N a tion al Bank, Sioux C i t y ....................................... 54
UCB Leasing C o rpo ration, Des M o in e s ............. , .............55
United Central Bank, N.A., Des M o in e s ..............................63
U.S. C heckbook Com pany, O m a h a .......................................52
U nited S tates N a tion al Bank, O m a h a .................................... 42 £
Valley N a tio n a l Bank, Des M o in e s .......................................60

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











Over 194 Iowa financial
institutions have used
Kirk Gross Co. services!
Do they know something
you don’t?
Kirk Gross Co. has a solid reputation in Iowa
for designing new financial institutions and re­
modeling present ones. If you are thinking ab­
out a new facility, put the responsibility and
worrying in the hands of the TURN KEY pro­
fessionals. We keep up on the latest ideas on
planning, designing, construction and furnish­
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than 194 projects since 1971. The best part of
this unequaled record is that so many are re­
peat, satisfied customers. Let Kirk Gross Co.
explain how our complete TURN KEY pro­
gram will save you time and money.

Federal Reserve Bank of St. Louis

If you’d like to know what other bankers know
about Kirk Gross Co., call at your earliest
opportunity. (How about right Now! Phone

4015 Alexandra Drive
P.O. Box 2097
Waterloo, Iowa 50704

The future look s
alm ost n good

to be true.


• ■ ;' " l



- :¡¡




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Federal Reserve Bank of St. Louis

A Division of the lowa-Des Moines National Bank
Seventh & Walnut • Des Moines, Iowa 50304