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Willis Alexander Says Farewell to ABA

• How to Improve Profits in 1985 - Survey
• How Tax Reform Act Affects Banks
• A/L Management - Part V - Final
Federal Reserve Bank of St. Louis



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

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

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



. Two F irsts m ake

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

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

I ||l First Bank

First Bank Minneapolis
First Bank Place
Minneapolis, MN 55480
Federal Reserve Bank of St. Louis

First Bank Saint Paul
332 Minnesota Street
St. Paul, MN 55101
(612) 291-5585

Members FDIC


e t


T h e knowledge of
the gnomes is very
close to home.

j^ a U K tx /
JANUARY 1985 • 92nd Year • No. 1456



How to improve profits in 1985

Bankers offer ideas to other Community Bankers


A salute to Willis Alexander!

A look back at career of retiring ABA executive


Asset/Liability Management— Part V

Concluding installment of a five-part series


Tax reform act of 1984
BAI hosts successful ATM 7 +

Conference gives bankers state-of-the art electronic report


Twin Cities
South Dakota
North Dakota


Des Moines
Index of Advertisers

©1984, FHLMC



306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor


Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1456 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

o .

V i,



Federal Home Loan
Mortgage Corporation
111 East Wacker Drive,
Suite 1515
Chicago, Illinois

Representatives and their
territories are:
Judy Graves: Chicago,
Northern Illinois, Indiana
Dick Hammond: Minnesota,
Iowa, North & South Dakota
Jeanne Redford: Wisconsin,
Southern Illinois
John Sable: Ohio, Michigan
Ann Alexander, Marketing
Administrator, Chicago

Attorneys tell its impact on banks in 1985


Through our system
o f regional offices,
Freddie Mac makes it
easy to do business
locally. And, because
live there, they
understand your
particular needs. Our
North Central Region
office is:

Home Loan
Owned by Am erica’s Savings Institutions


o 1

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


________ Federal
________ Home Loan
O wned by A merica’s Savings Institutions


Christopherson Named
CEO at Northern Trust
The board of directors of N orth­
ern T rust Corporation and The
N orthern T rust
Company of Chi­
cago announced
December 3 the
election of W es­
ton R. C hristo­
pherson as chair­
m an and chief
executive officer
and a director of
the holding com­
p a n y and th e
bank. Mr. Christopherson, age 59,
was form erly chairm an and chief ex­
ecutive officer of Jewel Companies,
M r. C h risto p h e rso n succeeds
Philip W.K. Sweet, Jr., who an­
nounced last April th a t he would
take early retirem ent when a new
chairm an was named. Mr. Sweet,
whose resignation was effective Dec­
ember 3, will not continue as a direc­
tor of the corporation or of the bank
but will serve as a consultant to the
corporation for the next eighteen
m onths.
Continuing in their present posi­
tions will be Charles H. Barrow,

president; David W. Fox, vice chair­
man, and Robert F. Reusche, vice
Mr. Christopherson joined Jewel
in 1951 as an attorney and, after ser­
ving in various m anagem ent assign­
m ents, became president in 1970,
chief executive officer in 1979 and
chairm an and chief executive officer
in 1980. He resigned th a t position in
July, 1984. He served in the United
S tates Navy from 1943 to 1946 and
received both his undergraduate and
law degrees from the U niversity of
N orth Dakota.
Mr. Sweet, in com m enting on the
decision of the board in selecting his
successor, said “ I ’m very pleased
th a t after a m ost deliberate search
our board has chosen such a capable
fellow Chicagoan to head The N orth­
ern T rust. His m anagerial abilities
and strong com m itm ent to tra d i­
tional policies m ake me believe th a t
under his leadership the future of
the bank, its employees and custo­
m ers will be b rig h t.”

Joins Commerce Bancshares
Theodore H. Howe has been
elected vice president and director of
hum an resources for Commerce

B ancshares, Inc., K ansas C it^
where he will have responsibility for
the com pany’s hum an resources sys­
Mr. Howe moves to K ansas Ci^|r
from H ouston, where he was senior
vice president of hum an resources
adm inistration a t F irst City Bancorporation of Texas. He began his
career with the Federal Reserap
Bank in P ittsb u rg h in 1961.

IAC Group Elects Officers •
Richard Wolf has been nam ed
president of E xtended Care Plan,
Inc., a newly-formed division of IAC
Group, a K ansas City-based groim
of companies specializing in cretm
insurance and bank financial ser­
vices. E xtended Care Plan m arkets
a line of extended autom obile ser­
vice c o n tra c ts th ro u g h le n d ii^ institutions.
Mr. Wolf joined IAC G roup’s in­
surance division in 1973. He worked
as a field representative in the com­
p a n y ’s Iowa-based territory and wjjp
transferred in 1981 to serve the M is­
souri territory.
It was also announced th a t In ­
sured A ccounts Company of the

Federal Reserve Bank of St. Louis

A c Group has elected Ronald D.
Roberts as president and chief oper­
ating officer. This is I AC’s whollyowned property and casualty agency
erializing in risk m anagem ent procts for the banking industry.
Mr. Roberts has 18 years of exper­
ience in sales, m arketing, adm inis­
tratio n and underw riting of bank-re­
l i e d insurance program s. As a proauct engineer for IAC Group, he
spearheaded in 1978 a line of pro­
ducts to protect lenders from losses
on uninsured collateral.


Joins 1st of St. Joseph
As General Counsel
Richard A. Heider has joined the
^ a f f of F irst N ational B ank in St.
Joseph, Mo., as
general counsel.
W. Dale M aud­
lin, p re s id e n t,
M rs t N a tio n a l
B a n k , s ta t e d ,
“ Mr. Heider will
provide advice
id counsel on
gal m atte rs in­
volving the com­
pany. In addi­


tion, he will be working w ith our
tru s t departm ent in the areas of bus­
iness developm ent and adm inistra­
tio n .”
Mr. Heider served as prosecuting
attorney of Buchanan County, Mo.,
from 1972 to 1977. Since th a t time,
he has been a partner in the law firm
of M orton, Reed, and Counts.
Mr. Heider graduated from St.
Louis U niversity in 1968 with a
Bachelor of Science Degree in Eco­
nomics. In 1971, he received a Ju ris
D octorate from the U niversity of
M issouri, Columbia.

an existing M ercantile T ru st facility
half a block away at T hirteenth and
Olive streets.
The Tucker Banking Center, sche­
duled to open in Septem ber 1985,
will offer a broad range of banking
services in a settin g designed for
custom er convenience. It will have
private office areas in which M er­
cantile Personal Bankers will meet
with their clients, safe deposit ser­
vices, and walk-up tellers in addition
to the tellers in the bank lobby.

Northern Trust Expands
Its Futures Activities
Mercantile Trust to Build
New Banking Center
Construction will begin soon on a
new banking center for M ercantile
T rust Company N.A., St. Louis, it
was announced recently by Neal J.
Farrell, president and chief execu­
tive officer of M ercantile T rust and
vice chairm an of M ercantile Bancorporation Inc.
The banking center will be on
Tucker Boulevard between Olive
and L o c u st s tr e e ts . The new
6,400-square-foot facility replaces

N orthern T rust Corporation, Chi­
cago, on December 5 announced the
signing of an agreem ent to acquire,
subject to regulatory approval, a
m inority interest in Stotler and
Company, a Chicago-based futures
com m ission m erchant. N orthern
F utures Corporation, a futures com­
mission m erchant which is a subsi­
diary of The N orthern T rust Com­
pany, signed a clearing agreem ent
with Stotler and Company; under
the agreem ent, Stotler will clear all
futures transactions for N orthern

Frank Bauder. Jim Carmody.
Kathy Hardy. John Crotty. Max Roy.
Names synonymous with correspondent
banking. More specifically, with correspondent
banking at Drovers. Almost 150 years combined

Knowledgeable years... handling Overline
Loans, Capital Requirements, and now such
new services as discount brokerage. So
consider Drovers for your correspondent needs.
You’ll find a continuity of policy And a
continuity of people. Like Frank. And Jim.
And Kathy. And John. And Max.
Call toll-free 1-800-621-8991.
In Illinois? 1-800-572-2498.

Drovers Bank
Federal Reserve Bank of St. Louis

47th & A shland Ave., Chicago, IL 60609 • 1-312-927-7000.

Federal Reserve Bank of St. Louis

Agriculture has changed
through the years,
and so has Omaha National.

B ut w e haven’t forgotten our roots.
The territory we call home is the center
of America’s agricultural economy. And
our advanced technology and innovation
make America’s ag production capacity
the highest in the world.
Omaha National has kept pace with the
growing needs and innovation in agricul­
ture, making us one of the nation’s top
lenders in the field. We assist correspon­
dent banks in furnishing capital for all
kinds of operations — from row crops to
large feed lots — from corn and hogs
in Iowa, to potatoes in Idaho, to cattle­
feeding in Kansas and Nebraska.
Our officers know as much about live­

stock and crops as they do about
banking. They were raised on farms
and ranches themselves. Their formal
education stressed agriculture as much
as finance. Their understanding of both
fields enables them to work with you in
providing farmers the resources they
need to be fully productive.
Learn how Omaha National can help
your bank serve the interests of
agriculture in your area. Call your
correspondent bank representative at
402-348-6565 or toll free in Nebraska
1-800-642-9305; outside Nebraska

We’re your natural resource for agricultural lending.

Omaha National
A FirsTier Company
Omaha National Bank
17th & Farnam Streets
Omaha, Nebraska 68102
Member FDIC
Federal Reserve Bank of St. Louis




Continental Announces
Major Board Changes
Continental Illinois Corporation,
parent of Continental Illinois Na­
tional Bank and T rust Company of
Chicago, announced December 3
th a t nine of its current 14 non-em­
ployee directors will not stand for reelection at the annual m eeting of
stockholders in April 1985. This ac­
tion is p art of a substantial board
restructuring announced on Ju ly 26,
1984, by the Federal Deposit In su r­
ance Corporation as a requirem ent
in connection with FD IC assistance
to C ontinental Illinois. In addition

to the nine, two other directors left
before 1984 year-end.
The nine directors who will not
stand for re-election are Rev. Ray­
mond C. B aum hart, S.J., president
of Loyola U niversity of Chicago;
Jam es F. B ere’, chairm an and chief
executive officer, Borg-W arner Cor­
poration; William B. Johnson, chair­
m an and chief executive officer, IC
Industries, Inc.; Jewel S. L afontant,
senior partner, Vedder, Price, Kauf­
m an & Kam m holz; R obert H.
M alott, chairm an and chief execu­
tive officer, FMC Corporation; M ar­
vin G. Mitchell, retired chairm an of
the board and chief executive of­



If your microcomputer is gathering dust in the corner of the bank,
it’s probably not the computer’s fault. Most likely you just don’t have
the right software. Or maybe you purchased software through the
mail and aren’t sure how to use it.
MICR0C0M has the resources you need to get your micro working
full-time. We have over 30 years financial experience and a thorough
knowledge of financial software. We’ve researched the field and only
represent software companies with strong products and track
records. Companies that have demonstrated a commitment to the
financial industry.
At MICR0C0M we can analyze your particular situation, choose the
micro software that fits your needs and level of expertise, and get you
up and running with personal training. If desired, we can also advise
you on a microcomputer purchase.
Samples of available software:
■ Loan Calculation and Document Preparation
■ Commercial Loan Credit Analysis
■ Safe Deposit System
■ Fixed Asset Management System
■ General Ledger System
■ Asset/Liability Management
■ Planning and Control
Your microcomputer can help you increase your effectiveness as a
manager and decisionmaker. It can work for you full-time. At MICROCOM we’d like to show you how.
For more information call Bob Duff or Joe Phernetton now at
319/378-1378, 1221 Park Place N.E., Cedar Rapids, Iowa 52402.

estern Banker, January, 1985
Federal Reserve Bank of St. Louis


ficer, CBI Industries, Inc.; Paul
Rizzo, vice chairman, International
B usiness M achines C orporation;
Thomas H. Roberts, Jr., chairm an of
the board, chief executive officer
and president, DEK A LB AgFresearch, Inc.; and Blaine J. Yarrington, retired executive vice president,
Standard Oil Company (Indiana).
Vernon R. Loucks, Jr., p re sid e ^
and chief executive officer, B axter
Travenol L aboratories, Inc., re­
signed effective December 17, 1984,
because of business com m itm ents.
All of these directors were f ir ^
elected to the board before 1980.
It is currently contem plated th a t
standing for re-election to the board
in 1985 will be John E. Swearingen,
chairm an of the board of directc^pi
and chief executive officer, Conti­
nental Illinois Corporation; William
S. Ogden, chairm an of the board of
directors nd chief executive officer,
C ontinental Bank; Frank W. Luei^sen, chairm an and chief executive of­
ficer, Inland Steel Company; John
M. Richman, chairm an of the board
and chief executive officer, D art &
K raft, Inc., and William L. Weis0
chairm an and chief executive officer,
Am erican Inform ation Technologies
Corporation (Ameritech).
W eston R. Christopherson, for­
mer chairm an of the board and chi0
executive officer, Jewel Companies,
Inc., resigned December 3 from the
C ontinental Illinois board to become
chairm an and chief executive officer
of N orthern T rust Corporation, tlQ
parent company of the Northern
T rust Company. All of these direc­
tors were first elected to the Conti­
nental Illinois board in 1980 or later.

First Interstate Appoints
Four New Officers
F irst In te rsta te Bancorp of L ^
Angeles has announced the appoint­
m ent of four new officers and the
prom otion of two others. John O.
Sm ith has joined the Los A ngele^
based m u ltistate banking company
as senior vice president and director
of electronic banking. Three new
vice presidents also have joined the
company: Richard A. Hayes, ta x dA
partm ent; Carol Meiner, support
services; and Andrew P. Studdert,
consumer banking and operations.
Prom oted were M artin G. Ariano to
audit m anager and Sandor E. Saim
uels to senior counsel in the office of
the general counsel.

ftsured Credit Services Announces:

New Policy Shields Lenders from
Impact of Rate Rise on Fixed Loans
N SU RED Credit Services, Inc.,
headquartered in Chicago, has an­
a new
Y ield M a in te ®tnce Insurance
policy th a t pro­
vides substantial
p r o te c tio n for
lenders ag ain st
Ifce im pact of in­
creasing interest
rates on the pro­
fit of fixed rate
loans. The new,
^ie-tim e prem ium policy provides
up to 600 basis points of protection
while offering the lender flexibility,
both in term s of length and degree of
The insurance policy coverage is
indexed to 6 m onth U.S. T reasury
Bill rates, generally corresponding
to short term money costs, and pro'des protection against interest
te volatility for the life of the loan.
Protection begins, a t the lender’s op­
tion, three, four or five years after
the loan’s initiation, rem aining in ef­
fect for as long as there is an unpaid
roan balance.
Lenders determ ine the level of
protection they w ant by choosing
300, 400, 500 or 600 basis points of


coverage, w ith a buffer added to the
index to determ ine the point at
which the coverage begins. The base
rate of the insurance is determ ined
by the average m onthly T-Bill rate
a t the tim e the loan is made.
Thus, if T-Bill rates were at 10
percent a t the outset of ^coverage
and a 2 percent buffer were in effect,
coverage would begin at 12 percent.
The lender could elect complete
coverage and be assured of a profit
spread even if T-bill rate and, there­
fore, the lender’s money costs rose
as high as 18 percent.
The prem ium cost for Yield M ain­
tenance Insurance is paid once at
the outset of coverage. The premium
is tax deductible and, in the event of
a loan paym ent, prem ium refunds
are made on a short rate basis. In
addition, up to 60% of the premium
can be retroactively refunded, based
upon actual loss experience.
“ D ram atic fluctuations in inter­
est rates have created the single
m ost difficult problem facing lend­
ing institutions today: asset-liabil­
ity m ism atching. And the longer the
term on fixed rate loans, the more
acute the problem becom es,’’ accord­
ing to William F. Schumann, presi­
dent of Insured Credit Services, a

Yield Maintenance Insurance Example:
15-year Fixed Rate Loan • 4-year Deferment Period • 500 Basis Points Coverage

■6 mo. T-Bill Rate

Loan Yield with ICS Insurance Supplement

-sssss/sss. Fixed Rate Yield

i Insurance Supplement

REMONSTRATING yield maintenance insurance coverage on a 15-year fixed rate loan, this
example illustrates the loan yield with the ICS insurance supplement with 500 basis points
of coverage and a four-year waiting period.
Federal Reserve Bank of St. Louis

subsidiary of Old Republic In te rn a ­
tional Corporation.
“ Insured C redit’s new coverage,
for the first time, allows lenders to
capture a significant, com petitive
advantage by offering fixed rate
loans with repaym ent term s of up to
15 years rath er than requiring either
balloon paym ents or variable inter­
est ra te s ,’’ Mr. Schum ann said.
“ Both of these alternatives to fixed
rate loans have been resisted by the
general public, and with good rea­
son. The consumer doesn’t w ant to
assum e interest rate risk anymore
than the financial institution does.
We, on the other hand, are in the
risk taking business.’’
“ Our insured coverage offers the
best of all worlds for lenders: profit
protection from erroneous interest
rate predictions, elimination of the
high costs usually associated with
in-house hedging operations, and
avoidance of increased costs and
sy stem d isru p tio n which m ost
lenders experience in converting to
variable rate lending, all within a
fixed rate structure,’’ Mr. Schumann
“ Yield M aintenance Insurance
gives the lender low cost protection,
and provides the institution with
the advantages of a fixed rate loan
in a steady or declining interest rate
environm ent and the advantages of
a variable yield in an ascending rate
environm ent,’’ Mr. Schumann noted.
The new protection can be com­
bined with Insured Credit Services’
existing default insurance to create
a total package protecting both loan
profit and principal. The company
has provided such default protection
to lending in stitutions for 30 years
and is the largest private insurer of
property im provem ent and home
equity loans.
“We feel th a t within two or three
years Yield M aintenance coverage
will be in place, with ours as the in­
dustry standard, a t m ost lending in­
stitu tio n s in the U nited S ta te s,’’ Mr.
Schum ann predicted.
Yield M aintenance Insurance is
underw ritten by the Old Republic
Insurance Company. Insured Credit
Services, Inc., m anager of the Yield
M aintenance program and a whollyowned subsidiary of Old Republic
International Corporation, is a cred­
it guaranty insurance facility pro­
tecting commercial banks, savings
and loan associations, credit unions
and consumer finance organizations
against default on consumer loans.
N orthw estern Banker, January, 1985

Credit Services
Federal Reserve Bank of St. Louis

In today’s highly complex business
environment, community bankers like Dean
Treptow, President, Brown Deer Bank, know
and understand the value of one-to-one
business relationships.
At First Wisconsin, we believe in build­
ing long-term correspondent relationships
that are based upon a thorough understanding
of individual needs. Our primary objective is
to help each correspondent build profits. Our
officers are lenders who have the knowledge
and authority to make decisions. They are
there to meet your needs no matter how
simple or complex. Your correspondent officer
is a direct link to the full resources of First
If your bank is interested in providing
a broad scope of credit services to your com­
munity, talk to First Wisconsin.
Dean Treptow knows the value of a
correspondent bank that understands oneto-one relationships:
“ My ability to fully serve the credit
needs of small businesses is of paramount
importance to me. To do it right, I look to
First Wisconsin for my correspondent support.”
Dean Treptow

Brown Deer Bank
Director and past president
of Independent Business
Association of Wisconsin,
SBA National Small Business
Banker of the Year, Chairman
of Wisconsin Governor’s Con­
ference on Small Business.


FDIC c 1984 FWNB
Federal Reserve Bank of St. Louis


ACH new year brings its own opportunities and
some problem s, and this was never tru er th an to ­
day as bankers plan for the year 1985. Business leaders
over the years have come up w ith all kinds of sayings
to describe opportunities and problems. E.G.:
• O pportunities bring rewards; problem solving
proves you’re w orthy of the rewards.
• Problem s are opportunities w aiting to be dis­
• The wise executive knows the difference and the
relationship between opportunities and problems.
• Not to be outdone, one m an used to say, “ A differ­
ence of opinion is w hat m akes horse racing possible!”
A num ber of m idw estern bankers—correspondent
bank officers and sta te association presidents who talk
to a num ber of com m unity bankers throughout the
year—were asked to list briefly those item s they feel
will show ‘‘How Com m unity Banks Can Im prove Their
Profit in 1985.” In these com m ents they have shared
w ith the N o r t h w e s t e r n B a n k e r for our readers, they
agree on a num ber of points, some give em phasis to
other points th a t m ay not have been given m uch consi­
deration yet.
In any event, all the respondents are experienced
bankers, they are keenly aware of the pressures and
problem s facing Com m unity B anks today, and they
present in this special report a sum m ary of their own
thinking and ideas.

in place so all your work a t obtaining deposits and
generating assets isn ’t lost by a move in interest
3 .Look a t your future, look a t your com m unity ai^l
the dem ands and types of assets and liabilities ch S acteristic of your com m unity and make sure you are
providing correct deposits and assets for your com­
m unities needs;
4 .Look a t other successful banks in your sta te and tju!
rest of the country and see if they are doing things
you aren ’t and th a t you possibly could adopt. These
could be such things as financial services, new fee
sources and new types of assets and liabilities;
5 .Recognize where com petition will be coming from jp
the fu tu re—the new financial service giants such as
S ears-D ean W itte r, ID S -A m erican E x p re ss,
K-M art, etc.—and develop or begin to think of ways
to compete w ith these giants.
These suggestions, along w ith m any of the tracjp
tional approaches such as containing adm inistrative
and overhead costs, m aintaining high asset quality,
and generating new service fee income, should all be
im portant aspects of 1985 profit planning. It would be
wise also to begin thinking beyond 1985 and looking £
1986 to allow enough tim e to restru ctu re and imple­
m ent the b a n k ’s profit plan.

Vice President
Am erican N ational Bank
St. Paul, Minn.
R O FITS in 1985 will be determ ined to a great ex­
te n t by interest rates and their fluctuations and
variations. Profits also will be affected by intense com­
petition for deposits and loans, by continued deregula­
tion, and by the new financial companies th a t are en­
tering the m arketplace. Good profit planning should
include the following:
1 . Make sure your bank has a profit plan in place, which
is well thought out and prepares your bank to m eet
your com petition in the future;
2 .M ake sure your bank has an asset/liability program


N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

Vice President
U nited C entral B ank of
Des Moines, N.A.
Des Moines, la.
ECA U SE of Iow a’s degenerating ag e c o n o m i
com m unity banks face w hat m ay be their hardest
challenge ever w ith regard to im proving profitability
in 1985. In fact, in m any banks, the challenge will be
one of preserving the sta tu s quo or, even worse, m ini^
mizing losses.
P a st em phasis has been on asset quality, asset/lia­
bility m anagem ent and operating efficiencies as ways
for banks to improve their bottom line. However, w ith
the exception of operating efficiencies, these m e th o d ^
of enhancing a b an k ’s profitability require a certaim
am ount of tim e before producing results.


• A m eans of im proving profitability th a t m any com­
m unity banks have been reluctant to address, deals
with th a t of product pricing. As bankers, we have been
fearful th a t we would drive away our custom ers if we
charged for our services. However, prudent product
d ic in g can provide im m ediate non-interest fee income
to help offset to d ay ’s loan losses.
From all appearances, it will be several years before
the s ta te ’s ag economy takes on a positive note. D ur­
ing the interim period, com m unity banks are going to
ra v e to rely on other sources of non-interest income in
order to cover lower interest income earnings. Product
pricing, if used properly, can be a consistent source of
non-interest income.

M ontana Bankers Assn.
F irst In te rsta te Bank
G reat Falls, M ont.
OM M UNITY bankers have always placed a pre­
mium on having a high quality staff in their bank;
however, in the deregulated banking world the quality
^ id productivity of a b a n k ’s staff can have a signifi­
cant effect on bank expenses and profitability.
W ith the rapidly increasing array of more com­
plicated and sophisticated banking products and ser­
vices, and w ith all of the new com petitors in the finan|^al m arketplace, the need for a high quality, well
trained staff is greater th an ever before.
The cost of m aintaining and training an up-graded
staff m ay seem quite high; however, the benefits in in­
creased productivitiy and effective custom er service, I
jjplieve, will carry through, positively, to the bottom
line and will be essential to the survival of the com­
m unity bank in the fiercely com petitive m arketplace
now evolving.


ture or targeted your expenses, take action and con­
tinue to review them periodically. B ut to rely on this
solely is a failed strategy. To be successful, a commu­
nity bank m ust be a low cost deliverer o f a variety o f
products and services. The future will find plenty of
other players in all m arkets attem p tin g to do the same.
B ankers in m any instances have determ ined they
cannot be all things to all people. T hat is a wise deci­
sion th a t reveals much reflection. Bankers m ust deter­
mine the profitable products and those th a t aren ’t, ef­
fectively allocating resources to a proper mix. B ut if a
bank can’t effectively deliver, rath er than exit the m ar­
ket for th a t product, it should look for quality higher
volume purveyors and align w ith them . Bankers
shouldn’t fall into the tra p of saying “ if it isn ’t home­
grown, we don’t offer it.” Their custom ers will tire of
hearing “ no” and will become custom ers of those who
say “y es.”
Bankers should think about enhanced training. This
m ay sound like a high expense item, yet it need not be.
Even though m ost banks now operate w ith leaner
staffing levels, slow periods do occur and can be effec­
tively utilized by flexible cross training program s b et­
ween positions. Each employee should also know all
bank services and how to cross sell them . Well trained
employees are happier and more productive — this
leads to a stronger bottom line for any institution.
A final thought — Com m unity Bankers best know
their own m arketplace; they should take the tim e to
think about its im provem ent. No one b etter under­
stands the challenges th a t lie ahead or can b etter meet
them if prepared.

P f*

« Bpl

■- . Valley National Bank
O IM PROV E profits, one could write at length
about loan quality, interest rates, gap m anage­
m ent, etc. However, I think there is one area th a t

Executive Vice President
N orwest B ank M inneapolis, N.A.
M inneapolis, Minn.
OM M UNITY bankers m ust seize the initiative if
they are to im prove their profitability in 1985.
While it is true th a t squeezed m argins and asset qualitv will continue to dem and their attention, m ost bank™s set aside precious little tim e for self-examination.
It is sad, bu t tru e th a t m any have not taken the tim e to
reflect upon their own business.
Of late, m any bankers have viewed improved profitbility as a function of fee income or reduced net over­
ead. N ot th a t either isn ’t im portant or straig h tfo r­
ward enough — if you haven’t reviewed your fee stru c­


Federal Reserve Bank of St. Louis

m any are overlooking th a t could help earnings im­
m ediately, if implem ented.
I used to know an old-time banker who was fond of
saying “ I never went broke taking deposits.” He was
right for his time, but not anymore. The deregulated,
com petitive, depressed environm ent in which we now
operate requires th a t banks m anage their bottom line
by controlling m argins instead of through deposit
growth. However, this isn ’t anything new, everyone
knows it. W hat we’re still learning is th a t if a depositor
can go across the street and get a higher rate of inter­
est, we should let him go. If we can’t make a profit on a
deposit, our com petitor can’t either. Moreover, by de­
clining the deposit, w e’ve enhanced our earnings at our
com petitor’s expense.
In the old days the governm ent set our spreads
through Reg. Q and usury laws. Lately we’ve been let­
ting our com petition do it. L e t’s do it ourselves, based
upon an intim ate knowledge of our own b a n k ’s cost
structure and earnings targets.
N orthw estern Banker, January, 1985

better control these forces operating in their b u s in e #
environm ent. Quite often, a profitable situation re­

Vice President
F&M M arquette N ational Bank
M inneapolis, Minn.
LA N N IN G for profits in 1985 should be based on
strategies developed as the result of increasingly
popular financial forecasting models: asset-liability
m anagem ent, strategic planning and (interest) spread
m anagem ent. The resulting game plan for attaining
these profits should be viewed as enhancing and pre­
serving liquidity, asset quality and solvency as well.
W hen form ulating your objectives consider the com­
parative data contained in “peer group ra tin g s’’ pub­
lished by the Fed, FDIC, BA I, Federal Financial In sti­
tutions E xam ination Council, etc. This inform ation
identifies your position in the m arketplace and illus­
tra te s through ratios and balances the ways and m eans
high-performing banks achieve wider m argins while
m aintaining capital adequacy.
M arketing strategies should be developed th a t will
achieve a sustainable m arket position and profitabili­
ty. You m ay wish to consider the following when for­
m ulating your short and long term portfolio goals:
In stitu te com petitive pricing of bank products
and services;
Concentrate on the introduction of new and inno­
vative products;
Offer variable rate loans - both installm ent as well
as loans to ag and commercial enterprises;
Inaugurate and expand the explicit pricing con­
Identify potential economies of scale - consolidate
separate operations on and off premises;
Stream line operations through use of mini/computers;
Broaden range and quality of banking services emphasize custom er service and “full service’’ banking stress continuing custom er contact through officer call
program s;
Utilize a greater use of (direct) fees and less reli­
ance on (indirect) com pensating balances;
Consider product differentiation and diversifica­
tion - offer products featuring retentive qualities (i.e.
IRA, HR-10 and other trust-related services) leasing,
insurance and discount brokerage;
Em ploy tax swaps and other accounting m eth­
ods to increase investm ent portfolio profits and sophis­
tication; seek com petent tax and investm ent counsel
as well - obtaining investm ent portfolio analysis is im­
p o rtan t here;
Introduce the delivery of products via autom ated
m eans and modes (through A T M ’s, D irect Deposit,
etc.) while continuing to emphasize personal service.
The level of profitability an individual bank can
achieve is lim ited and/or enabled by various business,
economic and regulatory factors. By establishing the
type of financial institu tio n you wish to be, by prom ot­
ing the m ost appropriate and cost-effective products/
services to the custom er base m ost receptive, one can
estern Banker, January, 1985
DigitizedN orthw
Federal Reserve Bank of St. Louis

H E num ber one priority in my opinion is the n ece#
sity to retu rn to the concept of “ basic banking.’’ I t
brings to mind the late Vince Lombardi, who m ust be
rem embered as one of the great football coaches of all
time. Lom bardi preached basics. His philosophy and
success on the footbal field stressed over and over t l #
im portance of basic fundam entals as tan tam o u n t to
I fear th a t m any of us during the p a st several years
have lost sight of this concept. Now, we m ust objec­
tively review the principles of sound banking p ra c tic e #
This m eans reviewing and analyzing the past, present,
and future as it applies to our individual banking stru c­
ture. J t m ust be an in-depth and totally honest ap­
praisal of our p a st problems, our present needs, and
above all, the future solutions needed to make t l #
needed corrections. The above, together w ith proper
m anagem ent skills, will create the necessary ingre­
dients to improve our profit picture in 1985 and suc­
ceeding years.

Senior Vice President
N ational B ank of W aterloo
W aterloo, la.


LMOST every bank has Other Real E state Owned.
Realize th a t your bank has it because it w asn’t
w orth on the m arket w hat you have invested in i #
M ost bankers are not real estate m anagers—so even if
it is painful, sell it and get back to the business of
I t m akes little sense to hold real estate, m anage it,
get 4-6% based on your cost when a 10-15% w r i t#
down after taxes will earn 11-13%. In the absence of in­
flation, I firmly believe th a t land will not a ttra c t much
investor atten tio n until it comes close to a positive
cash flow.
Obviously, if we’ve learned anything the last f e #
years, you don’t make loans on real estate equity. All
you do is strengthen the contract on the first m ortgage
If you have a custom er contem plating b a n k ru p tc y
it m ay be to your advantage to pay him som ething fo#
his supposed equity in exchange for title —if it means


^ o u don’t have to go through the expense and fru stra ­
tion of a C hapter 11. You could end up w ith more a
year sooner and get on to more productive tasks.
Exam ine non-interest income for possible a d ju st­
m ents in fees. These are usually accomplished w ithout
Whereases in costs.
Bond portfolio m anagem ent becomes more im por­
ta n t as loan-to-deposit ratios shrink. This no longer is a
sideline for your CEO. Com petent advice is necessary.

Vice President
F irst Banks
M inneapolis, Minn.
NE A R EA com m unity bankers should take a
closer look a t is service charges (ie: DDA service
charges, safe deposit box fees, check reconciliation
fees, overdraft fees, NSF fees, etc.). M any bankers
^ rould be surprised how low their fees are com pared to
other banks in their peer group or surrounding commu­
Com m unity bankers should also m onitor deposit in­
terest rates and loan rates w ithin their m arket terri­
t o r y and w ith their com petition, so th a t they are not
paying unnecessarily for deposit and loan business.
The bond portfolio is another area which can im ­
prove profits in the com m unity bank. M anage the
bond portfolio to take full advantage of possible tax
•e n e fits . The tax laws seem to always be changing. Be
sure to follow all changes in the tax laws.

W ithout prudent judgm ent, loan losses will continue
to erode our loan portfolio and interest spread will be
difficult to m aintain.
Being more specific, fee income m ight be increased
1. Reviewing all charges on services offered.
2. Increasing insurance sales.
3. Once again reviewing the possibility of discount
4. Clerking of auctions, which not only affords good
exposure, b u t is profitable as well.
5. Utilizing the services offered by the correspon­
dent banks. In m any instances there m ay be a cost sav­
ings to the com m unity bank, but, more im portantly,
additional profitable services will become available.
Loan losses on existing loans can be reduced by
closely m onitoring the credits, keeping lines of commu­
nication w ith the borrower open and if it becomes
necessary to revam p the credit, being innovative in resructuring.
New loans should be based on quality, and the in ter­
est rate should not be a prim e m otivation for decision­
I t is also necessary to prepare in advance a plan to
determ ine where we w ant to go or be—before we head
in some direction.

N ebraska Bankers Assn.
Chairman, M inden Exchange
Bank & T ru st Co.
M inden, Nebr.
T appears the pressure will continue on the agricul­
ture economy throughout 1985; therefore, it is im ­
th a t banks continue to m onitor costs and look

E xecutive Vice President
Am erican T ru st and
Savings Bank
Dubuque, la.
A P IT A L adequacy and profits will be of prim e im­
portance to the decisions m ade by bank m anage­
m ent over the next two to three years. This is especial­
ly true for the com m unity banks in Iowa where agricul­
ture plays such an im portant p a rt in our economy. The
agricultural problem s affecting cattle and hog feeding
•p e ra tio n s , I believe, have bottom ed out. This is not
necessarily true for the grain farm ers who could face
further m arketing problem s in 1985. In any event, re­
covery will be slow.
Prior to DIDC, prices paid for funds and products
Offered were regulated. Now we as bankers m ust be
creative in our thinking. Not only innovative in the
stru ctu rin g of loans, b u t also in the offering of finan­
cial products and services to be utilitzed by our
custom ers. G reater dem ands will be pu t on fee income,
^ n d non-interest expense will need to be held to a
Federal Reserve Bank of St. Louis

for new avenues to increase income. I expect m ost
bankers are looking closely a t each expense item to de­
term ine the value of each dollar spent. Bankers m ust
look a t all areas of operations to determ ine the m axi­
mum efficiency.
M any local governm ents use zero based budgeting,
and perhaps bankers m ay w ant to consider this ap­
proach. Briefly, a budget s ta rts w ith zero and each
item of expense is evaluated. No expense item is a
“ sacred cow’’ ju s t because it has been in the budget in
the past. I am certain it will be im portant to be innova­
tive in reducing costs, wherever possible, in 1985.
Income increases will be hard to achieve in 1985;
however, they are possible. I am certain m any Commu­
nity Banks now have an insurance agency, bu t those
who do not have one probably should consider it. All
fee income which the bank charges should be reviewed,
such as safe deposit box rent, personal money orders,
and special services (copies, microfilm lookup). As
banks continue to become deregulated, bankers m ust
charge for each service they provide. In terest Income
will be hard to m aintain a t the level of prior years.
Im proving profit in 1985 will be a difficult and
challenging job for all bankers, and those who control
both income and expenses best will be the bankers who
N orthw estern Banker, January, 1985


Senior Vice President
Bankers T rust Company
Des Moines, la.

OUR O PIN IO N , 1985 will, like 1984, continue to
difficult as regards the loan portfolio because of
s th a t persist in the agricultural communi­
ty. Business will, however, continue to be highly com­
petitive in the developm ent of quality loans and depos­
Because the g reatest share of bank income is derived
from the loans, we m ust continue in 1985 to re-evaluate
loan quality and pricing as against standards set. The
lending officers m ust be quick to recognize problem
loan situations and then m ake plans to effect solutions
to elim inate or a t least reduce loss. The pricing of our
loans in the portfolio m ust assure a satisfactory spread
over money costs to be com m ensurate w ith the risk
and produce a satisfactory profit.
As commercial bankers, we m ust continue to offer
services th a t are cost effective and truly satisfy our
custom ers. In order to be confident we should ask
ourselves the following questions:
1. Are the services we provide cost effective?
Are staff levels adequate and sufficiently trained
to provide good banking service? Are the staff levels
too high?
Are our physical facilities properly utilized? Are
there b etter ways to utilize facilities and reduce costs?
An im portant challenge is to m aintain an active
m arketing program . We m ust continue to sell our ser­
vices to new and existing custom ers. I t is im portant to
seek out new opportunities to enhance our volume and
profitability. A strong m arketing program is a key in­
gredient to a good 1985.

its m aintained in the b an k ’s own portfolio. Micro conf^
puters have aided m any banks in producing cash flows
for custom ers.
Prevention and reduction of non-accrual and chargeoff loans are of prim e im portance to m aintaining ^
steady stream of bank earnings. Bankers shouldn’t be
hesitant in asking for additional collateral. Credit doc­
um entation, because of its im portance in the lending
function, causes the m ost discussion w ith respondent
We see some reluctance by some banks to increase
fees of all types, i.e. overdrafts, DDA service charges,
letters of credit, com m itm ent fees and transaction fees
for various services. Increased fees on stan d ard ser­
vices is m any tim es more effective and im m ediate i ^
results especially if spread over a broad custom er base.
New services are fine b u t it m ay take a long period of
tim e to develop a profitable custom er base over and
above developm ent costs.
A sset/liability m anagem ent continues to be a signj^
ficant tool to use in the profit m aking process. B anks
should continue to develop their system to maximize
its effectiveness.
A dm ittedly, m idw est agriculture is under economic
stress; however, banks m ust not forget there are sti]^
opportunities to m eet custom er needs on a profitable
basis. We welcome the opportunity to provide our
assistance to respondent banks whenever the need

F irst Vice President
D avenport B ank & T ru st Co.
D avenport, la.
LTHOUGH 1985 will present continued challenges
to Iowa bankers, we rem ain optim istic about the
ability of our com m unity banks to generate acceptable

Vice President
F irst N ational Bank in
Sioux City, la.
ANK profits will continue to be under stress in
1985, prim arily because of non-accrual and chargeoff loans in m any banks. A ttention will continue to be
on bank loan portfolios during the year. We see a profit
opportunity in this area by increased rate on carrydebt from prior years provided the credit can be struc­
tured properly in term s of performance, collateral and
cash flow. C urrent operating loans can and probably
should be w ritten a t a lesser rate.
We ask all banks to provide cash flows w ith over­
lines and, of course, cash flows should be used on cred­
N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

profits. Certainly, the lackluster perform ance of our
agri-business economy dictates the necessity for c o r#
s ta n t vigilance in our lending portfolios. Prom pt iden­
tification of problem credits, and professional, cre­
ative, common-sense cooperation in workout situ a­
tions will help us to maximize our recoveries. As
always, we need to constantly examine our sources o #
non-interest income while we diligently control costs.
However, we m ust not lose sight of the fact th a t the
m ajority of our profit potential will continue to come
from our ability to take in funds a t a m arket rate and
re-invest them safely at a reasonable m argin.
Profitability in any business is dependent on long­
term considerations. Beyond the year 1985 all comm u­
nity banks m ust concentrate on increasing productivi­
ty by investing heavily in the m ost com petent staff
they can afford. We need to a ttra c t and retain goocr
people, and be willing to provide appropriate training
and educational opportunities. All of our interests will
be b etter served if we comm it ourselves to building a
staff of high-quality, m anagem ent-oriented indivi­
duals. The long term benefits promise to outweigh t h "
short term cost.


Vice President
F irst N ational B ank of
Chicago, 111.
H IS immense change occurring in the banking in­
d u stry today is dram atically im pacting your bank.
Changes in governm ent regulation are forcing you to
jn a k e decisions on w hether you w ant to rem ain inde­
p en d en t, merge, or be acquired. Fierce com petition
from larger banks as well as from other financial ser­
vices firms is educating custom ers on a wide range of
sophisticated financial products; your custom ers are
R em an d in g more in term s of price, products and ser­
vice. Moreover, rapidly changing technology is both
opening up new opportunities for product innovation
and causing you to reassess your cost of providing ser­
£ We agree w ith the Federal Reserve of A tlan ta th a t
‘planning, while im portant in a table environm ent,
becomes critical for survival in a tim e of rapid change.”
In these tim es of change, you and your m anagers m ust
step back from daily operations to think ahead to long
^ e r m corporate goals. S trategic planning at your bank
should serve as an integ ratin g device, ensuring th a t all
resources are directed tow ards the achievem ent of
those goals, giving you more control over the future.
Strategic thinking is not a budget process. It is
^ e it h e r a num ber-crunching exercise nor a process
generating only “ buzz” words. Instead, strategic plan­
ning is a process th a t helps you to identify genuine
issues and to develop credible solutions. These solu­
tions are more readily found through the participation
fpf your associates in your financial institution. Their
involvem ent in the planning effort develops a realistic
and achievable effort. It also helps them to feel much
b e tte r about them selves and the initiative needed to
achieve their objectives. We call it bottom -up plann­
i n g . I t generates enthusiasm from its very inception
and produces m easurable results by year-end.

Executive Vice President
N ational B ank of Commerce
Lincoln, Nebr.
ER to improve the profit picture for 1985,
4NcomOmR Dunity
bankers are going to have to rely on in­
creased fee and service charge income; and, th e y ’ll
have to look a t increasing efficiencies w ithin the
b an k ’s internal operation.
I The paym ent system th a t banks depend on today on
The paper side is a very expensive system . We need to
do some accurate costing studies of this system , and
Federal Reserve Bank of St. Louis

price check-processing services back to the user, a t
least a t a rate to cover costs. In addition, we need to be
creative in developing new strategies in the m ovem ent
of checks so th a t we realize m axim um availabiltiy of
The electronic side of the paym ent system has
helped control the grow th of the paper side. W ith ex­
panded ATM (Autom atic Teller Machines) usage and
more true POS (Point of Sale), we should see a signifi­
cant reduction in the cost of the paym ent system .
There is still a cost associated w ith electronic pay­
m ents but, obviously, it is a lesser cost.
Banks w ith large volumes of checks to process need
to encourage the developm ent of Point of Sale a t the
m erchant’s cash register. They need to differentiate
their pricing of check service, via service charge back
to their consumer, to encourage the consum er to use
the electronic mode.
In N ebraska, where we have a sharing environm ent
a t the A T M ’s, and where the establishing bank charge
for foreign transactions going through their auto­
m ated devices, their costs a t the present tim e are not
being passed back to the depositor on an individual
basis. In order to help offset their costs, I believe we
are at a point where we can charge the consumer for his
debit card on an annual basis.
If electronic banking is priced adequately, and if it is
m arketed so th a t the consum er perceives a value, then
consumers will be willing to pay for the cost of using
the electronic paym ent system .

Senior Vice President
M erchants N ational Bank
Cedar Rapids, Iowa
ANK PR O FIT S m ay be improved in 1985 by in­
tensive adm inistration of the loan and investm ent
portfolio and by belt tightening in all operational areas
of the bank. Perhaps the following ideas could be incor­
porated in your New Y ear’s resolutions:
Budget: Prepare your yearly budget convertible to
m onthly reporting. Analyze m onthly results carefully
and a tte m p t for strict adherence to the budget. E s ta b ­
lish asset-liability m anagem ent techniques tailored to
your operation and interfacing w ith your budget.
Credit Policy: E stablish and follow a comprehensive
credit policy approved by your board of directors.
Keep it in tune w ith the standard of your sta te and
federal regulatory authorities. Train your loan officers
to operate within the credit policy in loan selection,
docum entation, and credit m anagem ent. E stablish
credit lim its for each lending officer, and m onitor per­
Loan Portfolio: Conduct an on-going credit review
w ith careful study and im m ediate analysis of all new
(Turn to page 59, please)
N orthw estern Banker, January, 1985


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from Deluxe.
Federal Reserve Bank of St. Louis

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most we’ve studied, one out
of ten of your commercial
Customers is already using
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chances are, they’re getting
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they may be waiting too long
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inferior product. For you that
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Federal Reserve Bank of St. Louis

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For more information on
the Profit Opportunity Program
and the complete line of
Deluxe computer forms, con­
tact your local Deluxe Sales
Representative or call toll free,
Ask for Mr. Bruce Mears.

The difference
between a printer
and a partner.


A Salute to

do you say farewell to a friend you don’t w ant
to see take his leave?
HT hatOW
is the personal emotion we felt about Willis
Alexander when he told us personally during the re­
cent Am erican Bankers A ssociation convention in
New York City th a t he was planning to retire as ABA
executive vice president by Ja n u ary 31. Typically, the
setting for this brief, poignant bit of personal news
was the rear of the darkened convention hall, well
rem oved from the seated audience.
Willis puffed quietly on his ever-present pipe and
com m ented after breaking the news th a t he would
m iss m any things by leaving his job, but m ost of all, he
would m iss the frequent contact w ith the bankers who
are the heart of ABA. He has always rem embered th a t
the m em bers are the reason for A B A ’s existence.
A Team Builder - and Player
I recall looking up a t my tall, handsom e friend of 20
years as we talked quietly, and the thought crossed my
mind, “ How will ABA fare w ithout Willis? H e’s been
a t this job 15 years!” But, because I ’ve known Willis
for 20 years, I also im m ediately had the answ er to my
own question—ABA will get along fine when Willis
leaves because as a first-class executive he has built a
solid team th a t is capable of carrying on, instead of
falling ap art ju s t because one im portant mem ber of the
team leaves, even if i t ’s him.
T hat has always been the ultim ate complim ent to a
CEO—the ability to fashion a team of self sta rte rs who
mesh well and can operate w ithout him.
T hat is not to say Willis will not be sorely missed.
He will be missed, not only for his staff leadership abil­
ities at ABA headquarters in W ashington, D.C., but
also for the common sense, hom espun reports he has
given regularly a t the annual convention. Because of
this strong leadership and common sense, as well as
the respect and tru s t he has earned from all quarters in
W ashington, Willis is admired as a true “heavyw eight”
in the natio n ’s capital.
N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

Hopefully, his perceptive mind, cool thinking, and
public speaking abilities will be utilized frequently on
banking program s after he leaves his ABA office. •
A Lesson Learned Well
Because Willis continues to believe and follow a
basic tenet of banking service he learned first-hand
from his father 50 years ago when Willis, Sr., w a f
president of the A lexander fam ily’s com m unity bank,
The Trenton T ru st Company in Trenton, Mo. T hat
tenet dictates th a t success of the bank is in direct rela­
tion to how well the bank perceives and serves the
needs of its custom ers and the entire comm unity. ®
I t was at the same tim e—51 years ago to be exact—
th a t Willis learned from his father another lesson he
h asn ’t forgotten. The year was 1933 and Willis, Sr.,
was president-elect of the M issouri Bankers Associa^
tion. He took 14-year old W illis and his other so r^
M aurice, to the old Stevens Hotel (now the Conrad
H ilton Hotel) in Chicago for W illis’ first ABA conven­
tion. The senior Mr. Alexander then served the follow­
ing year, 1934-35, as president of the M issouri Associa^
tion. Willis learned the value of “working for tho
association th a t works for you.” E xactly 25 years
later, W illis assum ed the same duties as president of
the M issouri Bankers A ssociation for the 1959-60
term .
In those 25 years in between, he received in 1940 a
B.S. degree from the U niversity of M issouri College of
Business A dm inistration, and in 1941 received his
M.B.A. degree from the W harton School of Finance in
Philadelphia. A fter serving six years in the U.S. N a v ^
Supply Corps during W orld W ar II, he joined the Tren­
ton T ru st Company in 1947. He succeeded his father as
president of the bank in 1960.
Six years later, after serving in various ABA posi­
tions, Willis began working “ through the ch airs” ii^
the ABA officer chain. In October 1968, he returned to
the Conrad H ilton H otel—ju s t 35 years after his first

£ ip there as a 14-year old boy—and assum ed the
presidency of ABA. The only m ar to th a t event was
th a t Willis, Sr., died a few m onths earlier and did not
see his son installed.
Prior to th a t election, we had an opportunity to do a
M ature inteview w ith Willis in his home town for the
Septem ber 1968, issue. Some of his com m ents from
th a t interview reveal his long-standing beliefs. He said
a t th a t tim e th a t ’‘am ong the m ost im portant ques­
tions bankers m ust resolve are those pertaining to the
ffianging stru ctu re of banking itself, the future of
country banks, and its related subject of the future of
small tow ns.”
He said ‘‘I would endeavor to encourage banking to
^ a p t itself to changing public requirem ents and needs
ro the end th a t it can serve the economy and communi­
ty developm ent. Y esterday is not good enough. The
sta tu s quo is unsatisfactory. Our eyes m ust be on
tomorrow, for the needs of the public will be made
own by the public and not by bankers.”
On stru ctu ral change, he added, “ It is unrealistic to
say th a t any form of banking—w hether unit, branch,
holding company, etc.—is forever hallowed. I t is good
so long as it serves the public need. W hen it doesn’t, it
u st change to m eet th a t changing public need. In my
dgm ent, the unit bank can still serve the com m unity
need, b u t it m ust run w ith its focus on the future,
rath er th an on the past.
“ Evidence has shown th a t unit banks cannot only
l^irvive b u t serve even better in com petition with
branch and holding company banks because they are
forced to be com petitive. If you want to survive, you
can, and we don’t need to legislate protective bounda­
ries for ourselves.”
His Independent Bank Is a Competitor
Proof of th a t strong belief, sim ply stated 16 years
ago, is his own Trenton T ru st Company. As one of
three com m unity banks in Trenton, it is now the only
one th a t is still an independent, home-owned bank. The
• h e r two are p a rt of m ulti-bank holding companies in
St. Louis and St. Joseph. The record shows th a t at
mid-1984, Trenton T ru st Company had $58 million in
assets, deposits of $50 million, and net income of
$424,000, w ith two offices in nearby smaller towns. A t
• e same time, the two M BHC banks held $78 million
in assets and their combined earnings were $320,000—
75% of the single independent com m unity b a n k ’s in­
A nother interesting fact we noted in reviewing th a t
f&68 interview w ith Willis was one of the pictures ac­
com panying the story. I t showed Willis, then presi­
dent, w ith three of his vice p residents—C urtis LaFollette, George C onstant and E dw ard E. Holt. Today, 16
years later, all three are still w ith Trenton T rust Comj^ n y , running the bank the p a st 15 years while Willis
has been serving w ith ABA. C urt L aFollette has been
president for some years; George C onstant is senior
vice president for loans, and E d H olt is senior vice
president for m arketing.
® Willis has continued actively as chairm an of the
Trenton T ru st Company, returning one S aturday each
m onth for the board m eeting. O ther than helping set
policy as board chairm an, he continues to delegate
m ithority to these three and as he says, “ they run the
™ nk.” In 15 years, he has m issed board m eetings only
two or three tim es. In addition, Willis is co-publisher of

Federal Reserve Bank of St. Louis

the Trenton Republican Times, a 120-year old home­
town newspaper.
A Caution on Agriculture
On the agricultural front, an im portant element for
rural Trenton, Willis said in th a t interview of 1968
before becoming ABA president, “ C ountry bankers
should recognize the 15-25 percent of the farm ers they
can live w ith for the next five to 15 years to come, and
go w ith them . Schedule in one year of failure and stay
w ith them . Certainly, we m ust serve the needs of other
farm ers b u t don’t devote the same am ount of tim e as
w ith the others who will be the heart of your business.
“ The banker m ust make a judgm ent as to w hether
he can help an individual m ake money. If he can’t, he’s
b etter off dem urring a t the sta rt. The same holds true
for business credit, so why any difference? J u s t be­
cause farm ers want, or farm -related industries say
they w ant it, doesn't make it a real credit need. I t ’s the
same as business credit—if the farm er can ’t respect his
credit standing, he’ll lose it.” Those statem en ts were
made as the active president of a rural, farm -oriented
com m unity bank.
1969 Brought Career Change
W illis’ change of career from the com m unity bank
presidency to chief staff officer of one of the m ost re­
spected trade groups in the nation began in January,
1969, when he was ABA president. Dr. Charls E.
W alker, then ABA executive vice president, was
drafted away from th a t post to become U nder Secre­
tary of the Treasury. A t their spring m eeting in W hite
Sulphur Springs, W. Va., ABA executive com m ittee
members, im pressed w ith the job the 50-year old asso­
ciation president was doing, asked him to take Dr.
W alker’s post. A t the conclusion of his term as presi­
dent of ABA a t the 95th convention th a t fall in Hawaii,
Willis became executive vice president.
Thus began not only an exciting new career for
Willis, but a well-planned new direction for ABA, or­
chestrated by the com m unity bank president from
Trenton, Mo., working in concert w ith top banking
leaders from around the nation.
H ighlights of th a t strin g of 15 years of dedicated
service m ust include the following:

THIS typical picture shows Willis Alexander having an informal
discussion in the ABA headquarters conference room with a
group of visiting Community Bankers. Seated at right is Gerald
Lowrie, exec. dir. of ABA’s Government Relations Division.
N orthw estern Banker, January, 1985


ANOTHER typical picture shows Willis with his wife Sandy be­
side him as they share family experiences with J.C. Milner (left),
whose husband, Neil Milner, is exec. v.p. of the Iowa Bankers

• G etting ABA headquarters moved from New York
to W ashington, D.C., in early 1971.
• In th a t same year of 1971, working w ith ABA
President Allen P. Stults, then chairm an and CEO at
Am erican N ational Bank & T ru st Company of Chi­
cago, to implem ent a complete restru ctu rin g of A B A ’s
m em bership to p u t in place a new structure th a t still
prevails in great m easure—one designed to reflect
more closely the functions of a commercial bank.
• D rafting of the A B A ’s guidelines for defining
A B A ’s posture on m ajor banking questions; a set of
four guidelines th a t still govern the way ABA leaders
look a t any new product, service or public policy issue.
Willis presented these to the 1975 convention in a talk
aim ed a t “ sorting out basic tru th s from m yths in bank­
• Developing the Banking Leadership Conference
which brings 400 banking leaders together several
tim es each year to consider legislative m atters of
critical im portance and to form a consensus for guid­
ance of A B A ’s Governm ent Relations Council. This
same Leadership Conference form at has been adopted
by a num ber of sta te associations so th a t grass roots
developm ent of consensus can be taken to the national
• Development of a Governm ent Relations Division,
headed by Gerald Lowrie, th a t is respected as one of
the finest, if not the best, am ong all trade associations
in the natio n ’s capital.
• Developm ent of an o utstanding executive m anage­
m ent staff th a t surpervises a total staff of 400 persons
working out of ABA headquarters handling all associa­
tion duties.
• Development of a new ly-structured educational
system th a t now takes bankers through several levels
of education from A IB and other beginning levels to
executive m anagem ent sem inars a t the top level.
Four Criteria for Policy Formation
The four criteria referred to above and used by ABA
for developing a position on public policy issues are
w orth repeating here. Willis places such faith in these
criteria th a t he had them set in large type and m ade a
perm anent fixture in the conference room a t ABA
1. How do these issues affect bank custom ers? Do
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

they provide ways for the bank custom er to benefrc,
and if so, how?
2. How will these issues affect the broad com petitive
environm ent? Are they pro-com petitive? Do they
make sense in term s of our economic system ? Will o g
answ ers to these questions enhance or hinder banks
ability to compete w ith other financial institutions?
3. Will our answ ers to these questions be consistent
w ith national and economic social priorities?
4. How do these questions affect our ability ^
achieve or m aintain equal com petitive ground r u l ^
am ong the various types of com peting financial in sti­
tutions? And, do our answers to these questions pro­
vide the opportunity to com petitive financial in stitu ­
tions to rem ain viable and profitable, regardless M
In concluding th a t 1975 convention address, Willis
said the new climate “requires a recognition th a t the
banking system is not designed for bankers, and w on’t
be preserved for bankers...banking has a higher s e n ^
of responsibility to the com m unity th an m any other
businesses...none of this guarantees us a monopoly on
financial services if we fail to m eet the changing needs
of our custom ers. And, we do not have the rig h t to de­
cide for the custom er w hat he should want...W e mu^ji
decide these issues in the public interest. The key ques­
tion is: Will we?”
Banking Leadership Conference
One of W illis’ g reatest efforts in recent years has
been to m ake sure every banker and every bank, r0
gardless of size, has had an opportunity to m ake their
voices heard a t the national level in order to dispel the
m yth th a t “ ABA is for big ban k s.” The vehicle has
been the Banking Leadership Conference, in which lo­
cally elected and appointed banking leaders are giv^d
the benefit of banker input from their own states, then
take th a t input to the national BLC for round table dis­
cussions. A fter one or more days of such discussions,
the group of 400 or more from all sizes of banks, a r­
rives at a consensus and th a t guides the policy-m akii^
of the Governm ent Relations Council for legislative
Farewell Address
L ast October, in w hat turned out to be his f a r e w ^
address as E xecutive Vice President, Willis expressed
the regret th a t some chose to continually criticize th a t
effort, even after the consensus had been arrived a t by
a high percentage of those participating. He said, “ the
existence of the Banking Leadership Conference
argues th a t w hat we have in common is more im por­
tan t. But, on the other side, our internal struggles
argue ‘N o’...those few were able to sh a tte r w hat had
taken so much tim e and so much effort to create.
“ It has been a personal disappointm ent to me t h a t ^
whenever we begin to grasp the answ er to so m any of
our problem s—we cannot resist the tem ptation to tu rn
and grapple w ith each other instead...The real fight to­
day is not big versus sm all—it is Sears versus all.
There are no big bankers. There are no small b a n k e r^
There are only bankers, w hether they work for large or
small institutions. Yet, we continue to fight among
He identified two words, “ In te rsta te B anking,” as
(Turn to page 73, please)



A Plain English
Guide to
A sset / Liability

A Plain
Guide to

Written bv Bankers for Bankers

Paul Lindsey is president and CEO of Farmers National Bank of
Geneseo, III., an agricultural-oriented financial institution. Mr.
Pndsey has over 15 years experience in the banking industry and
has been instrumental in helping Farmers National to nearly dou­
ble in size in only seven years from $60 million in total assets in
1977 to its present size of $115 million. He is also a member of the
bank’s Asset/Liability Management Committee (ALCO) and a
member of the bank’s board of directors. Farmers National has
M d a formal asset/liability management program in effect since
Bill Goedken is president and CEO of F.N.Bankware, Inc., a fi­
nancial institution consulting and microcomputer software firm
in Omaha, Nebr. Mr. Goedken holds CPA and CMA certifications,
and is an MBA graduate of the University of Iowa. Before joining
VN.Bankware, Mr. Goedken was a senior consultant with Touche
Ross & Co., an international CPA firm. He has over 10 years exper­
ience in the banking and savings and loan industries, asset/liabili­
ty management, and financial institution operations.
Jim Riha is senior vice president and controller of Packers Na­
tional Bank of Omaha, Neb. Packers is an urban retail bank in a
w g h ly competitve metropolitan market and has assets of $120
million. Mr. Riha is a graduate of the Colorado School of Banking
and the Stonier Graduate School of Rutgers. As both CFO and
chief administrative officer of Packers, Mr. Riha is responsible for
all financial operations of the bank, including asset/liability man­
agement. He is also a member of the bank’s Asset/LiabiIity Man#}e m ent Committee (ALCO).

Part V
^ Ed. Note: This is the fifth and final installm ent o f
the booklet titled, “A Plain E nglish Guide to A s s e t/
Liability M anagement. ” This final part is accompanied
by selected questions asked by bankers with answers
M irnished by the authors. A free copy o f the entire
booklet is available for those subscribers wishing to
review it in detail and perhaps use it as a training man­
ual w ith the staff.


Asset/Liability Management Models

ASED on our “ sim ple” example of ALM, one sees
the com plexity involved in keeping track of the
balances, rates, etc. However, the availability of com­
puters has m ade asset/liability m anagem ent both prac­
tic a l and tim ely. Furtherm ore, w ith the advent of mi­
crocom puters, asset/liability m anagem ent is a feasible
m anagem ent tool for all banks.
M any banks already have m icrocom puters. Some
use them extensively, while others let them set and col­
l e t dust. A t first, we were h esitant and even a bit un­
com fortable about using a m icrocom puter. However,
Federal Reserve Bank of St. Louis

micros have come a long way in the p ast few years with
m any models being very easy to use.
Softw are is the com puter program th a t operates on
the com puter hardw are. A wide variety of microcom­
puter software is available including word processing,
m ailing lists, and spread sheet program s. ALM is one
of the m any m icrocom puter softw are applications
available for financial institu tio n s today.
Currently, a wide variety of ALM software packages
exist. Prices range from about $500 to over $30,000.
W hy the difference? As in m ost everything - you gen­
erally get w hat you pay for.
Based on our experiences, we make the following
suggestions when purchasing an ALM model:
1) You get what you pay for. A good ALM software
model m ay cost between $5,000 and $10,000 or more.
A sset/liability m anagem ent is ju s t as im portant as
any other bank function, so don’t buy som ething you’ll
quickly outgrow. The less expensive models usually
give current gap only, and do not have the capability
to project your financial statem ents. The more compre­
hensive models have both current and future gap capa­
bilities, as well as projected statem ents. An ALM
model is an investm ent and should be evaluated ac­
cordingly. Look at the costs versus the benefits.
2) Beware of “ off the shelf models.” Some models
claiming to be used for ALM are a m odification of non­
bank related financial software. These models tend to
be a mail-order item for which the vendor does not pro­
vide any on-site training or installation. A lthough
these models have lim ited use, you m ay quickly ou t­
grow them . The purchase price of a good model should
include a one to two day training/installation session
at your bank.
3) Is it truly ALM? Some models claim to be ALM,
but upon closer exam ination, you find they are only
budget/profit planning tools. A good comprehensive
model provides pot only budget/profit planning, but
also ALM and long-range strategic planning. Remem­
ber, bank management includes all three disciplines.
4) Shop around. Solicit at least three vendors and
compare the features, support, etc. A sk questions
about their training, how long their model has been in
use, etc. You m ay w ant to use the checklist in Figure
17 to evaluate various models. An ALM model is a m a­
jor purchase and shouldn’t be taken lightly.
5) Does the vendor understand the banking industry
and your bank? M any ALM models have been w ritten
by non-bankers. Generally, the better models are develN orthw estern Banker, January, 1985


“ Proper use of ALM and taking the necessary steps to *
implement it can improve your profitability.”
oped by bankers or CPAs who understand the banking
industry and the financial im plications involved.
Once you purchase an ALM model - use it. W ith
deregulation, volatile interest rates, etc., the business
of banking gets tougher and tougher. You should con­
sta n tly m onitor the present and potential future condi­
tions and factors th a t m ay affect your bank. ALM can
help you avoid unw anted surprises and identify new
opportunities. Proper use of ALM and taking the
necessary steps to im plem ent it can improve your pro­
fitability. I t can more th an pay for the cost of a micro­
com puter and ALM software. Also, rem ember th a t
your m icrocom puter can be used for m any things be­
sides ALM.


Who should be in charge of ALM in our bank?®


The ALCO should be responsible for ALM. One
of the ALCO m em bers should be responsible for
running the various strategies and scenarios on
the micro model, including “ w hat-if” analysis.
Packers N ational and Farm ers National, the Con­
troller handles this function because of his/her
fam iliarity w ith the financial structure of the


How m any “ w hat-if” scenarios should I run?


As m any as necessary to make you feel comfor­
table. Each m onth we usually run three scenarios:
1) a “ m ost-likely” case, 2) a “ b e s t” case, and 3) a
“ w orst” case. I t ’s im portant to cover a range ( •
scenarios w ithout g ettin g “overloaded” in dozens
of scenarios. The ALCO reviews each of the three
scenarios, and the “m ost-likely” is shown to our
board of directors. As new conditions develop, we
m ay run more than three scenarios.


There appears to be a great deal of num ber crun­
ching and d ata entry in ALM. Is ALM more tro u ­
ble th an i ts ’ worth?


No. We believe ALM is an essential tool for p rt#
per bank m anagem ent. It has improved the pro­
fitability of m any banks, including those of the
authors. W ith proper planning through ALM,
users are able to avoid m any undesirable situ a­
tions and to identify new opportunities. A micrd®
com puter can handle the “num ber crunching.”
D ata entry for m ost models is relatively quick
and easy.


Can you give me a specific example of how ALIV^
can help my bank?


In early 1984, m any banks had high interest rate
30-month CDs m aturing which were originally
issued in 1981. Here you have an opportunity to
reposition your balance sheet and take a d v a n ta g P
of the relatively low rates th a t existed in early
1984. W h a t’s your strategy? L e t’s take a step-bystep approach.

Do You Have a Question on ALM?
ANY fellow bankers have asked us about ALM
as a subject and ALM issues. Below are some of
the more common questions we’ve been asked and our
answers to them:



I ’m a $10 million rural bank and I ’m the only
bank in town. Do I need ALM?


Yes, but you m ay use a less sophisticated ap­
proach. The tim e you spend on ALM m ay be a
fraction of th a t spent by a $500 million urban
bank. The purpose of ALM is to m anage your
portfolios in order to a tta in your goals a t an ac­
ceptable level of risk. We believe th a t even the
sm allest banks can benefit with a formal ALM
program . A t a minimum, ALM gives you a “ g u t”
feeling of w hat potentially could happen to your
bank in the future. If the purchase of ALM soft­
ware is a m ajor hindrance, consider a service
bureau arrangem ent. Some softw are vendors and
consulting firms do offer this service. This alter­
native gives you the opportunity to get comfor­
table w ith a formal ALM program before m aking
an outright purchase. For a small com m unity
bank, this approach can be very cost effective.


I ’m still not sure if I fully understand ALM.
W here can I learn more?


The BA I, ABA, IBAA , and sta te bankers associ­
ations periodically sponsor ALM schools and
seminars. They also publish guides on the more
sophisticated aspects of asset/liability m anage­
m ent. A few ALM software vendors include ALM
training as p a rt of the purchase price of their
models and/or consult on ALM strategies.


I understand the “g a p ” concept, b u t why do I
need to analyze both current gap and future gap?


C urrent gap is fine for looking at your current
situation. However, your gap position changes
each day, possibly changing in an undesirable
direction. For th is reason, you m ust plan ahead,
look for trends, and determ ine how changes in
various factors m ay change the direction of your
b an k ’s performance. Only a projected gap analy­
sis allows you to do this.

N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis


F irst, look a t your current gap, It shows th a t th«®
30-month CDs m ature and replace at the same
Second, project your future interest rates on new
issu e s of fin an cial s ta te m e n ts , i n c l u d in g
30-month CDs, six-m onth CDs, etc. Your ALCCP
would generally make these projections.
Third, project your grow th in assets, deposits,
etc. This step is necessary so th a t your particular
strateg y is congruent w ith the b an k ’s overall®
Given the future rates scenario, next determ ine
which type of CD instrum ent is the m ost advanA/L M AN A G EM EN T . . .
(Turn to page 59, please)
















Federal Reserve Bank of St. Louis

N orthw estern Banker, January, 1985







Its Impact on •
Banks in 1985 .


E G IN N IN G January 1, 1985, a lender who collects
on a debt by acquiring an interest in property
which secured the debt, or who has reason to know
th a t the property has been abandoned by the debtor,
m ay be required to file an inform ation retu rn w ith the
Internal Revenue Service and to furnish a sim ilar
statem ent to the debtor.
These new reporting requirem ents, enacted as p a rt
of the Tax Reform A ct of 1984, will enable the IR S to
better identify situations where there m ay be a gain on
foreclosure of property, discharge of indebtedness in­
come, or recapture of investm ent ta x credits. Since the
new A ct directly affects all banks, here is a brief review
of its provisions:
Lenders Subject to the New Reporting
Rules. The new reporting requirem ents are
applicable to persons who lend money in
connection with their trad e or business.
Thus, they will obviously apply to all banks.
Scope of the New Reporting Rules. The
new reporting requirem ents, which are ef­
fective for acquisitions and abandonm ents
of property after December 31, 1984, are
applicable to (a) all loans secured by real
property, w hether or not such real property is held by
the debtor for investm ent or for use in a trad e or busi­
ness (including home m ortgage loans); (b) m ost loans
secured by an interest in tangible personal property,
but only if such tangible personal property is held by
the debtor for investm ent or for use in a trad e or
Therefore, consum er loans (any loan m ade to an indi­
vidual secured by an interest in tangible personal pro­
perty which is not held for investm ent and is not used
in a trade or businbess) will not be subject to the new
reporting requirem ents. If the tangible personal pro­
perty securing the debt is held by the debtor for both
personal use and for use in a trade or business or for in­
vestm ent purposes, the acquisition or abandonm ent of
such property is subject to the reporting requirem ents.
Loans made to individuals and secured by personal
property of a type th a t is ordinarily used for personal
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

W ritten especially for
o r t h w e s t e r n B a n k e r by
Members, Davis, Hockenberg, Wine, Brown & Koehn
Des Moines, la.

T he N

purposes, such as autom obiles, boats or m ajor applT
ances are subject to the reporting requirem ents only™
the lender knows th a t the property will be used by the
individual debtor in a trade or business or for invest­
m ent purposes. For this purpose, a lender know s infor­
m ation if the inform ation is included on the books a
records of the lender (or its agents) pertaining to t
loan, or is known by the lender (or its agents, officers,
partners, principals or employees), bu t only if such in­
form ation was acquired in the lender’s ordinary course
of business activities.
The new reporting requirem ents are invoked upon
(a) the acquisition of the secured property by the lender
in connection w ith the collection of the debt secured by
such property, or (b) the abandonm ent of the secured
property by the debtor, if such abandonm ent is kno
by the lender. For this purpose, abandonm ent is broa
ly defined.
Acquisition of the Secured Property by
the Lender. Real property, or tangible per­
sonal property held by the debtor for use M
a trad e or business or for investm ent, ac­
quired by the lender in connection w ith the
collection of a debt secured by such property is subject
to the new reporting requirem ents. An in terest in pro­
perty is acquired by the lender on the earlier of the d a l£
titled is transferred to the lender or the date possession
and the burdens and benefits of ownership are tra n s ­
ferred to the lender.
If applicable sta te law provides for an objection
period w ithin which the borrower and other appropr™
ate parties m ay object to the lender’s proposal to re­
tain the property in satisfaction of the debt, a lender is
treated as acquiring an interest in the property on the
date this objection period expires. Similarly, if th a
lender purchases the property a t a sale held to satisfy
the debt, such as a foreclosure or execution sale, the
lender is treated as acquiring an interest in the proper­
ty on the later of the date of the sale or the date all ap­
plicable rig h ts of redem ption, if any, expire.
The new reporting requirem ents also m ay be im
voked even if the lender acquires only an indirect inter-


•‘Lenders subject to requirements are liable for a $50 penalty
for each failure to file, subject to a maximum of $ 5 0 ,0 0 0 for
any calendar year.”
est in the property. For example, the acquisition of an
interest in a partnership, tru s t or other en tity in full or
p artial satisfaction of a debt th a t is secured by assets
owned by such en tity will invoke the reporting require­
m e n ts . However, if a lender takes possession of se­
cured property for a lim ited purpose only, such as com­
pleting construction on or im provem ent to the secured
property, the lender is not treated as acquiring an in­
terest in the property a t th a t time.
Abandonment of the Secured Property
by the Debtor. A lender also m ust file an
inform ation retu rn w ith the IRS if the
lender has reason to know th a t the secured
property has been abandoned by the debf b r. For this purpose, if a p a rty other than the lender
purchases such property a t foreclosure, execution or
sim ilar sale, the lender will be treated as having knowlege th a t the property has been abandoned and m ust
report accordingly to the IRS. W hen the lender in the
O rdinary course of business becomes aware (or should
become aware) of circum stances indicating th a t the
property has been abandoned, the lender will be
deemed to know all the inform ation th a t would have
heen discovered through a reasonable inquiry.
^ For example, if a debtor has failed (without adequate
explanation) to make paym ents on a loan for a su b stan ­
tial period, the lender m ust make a reasonable inquiry
to determ ine w hether there has been an abandonm ent.
f a reasonable inquiry would reveal objective facts
nd circum stances indicating th a t the debtor intended
to, and has, perm anently discarded the property from
use, then the lender has reason to know th a t the pro­
perty has been abandoned.
^ If a lender has reason to know th a t the secured pro­
perty has been abandoned, b u t it reasonably expects to
commence foreclosure, execution sale, or sim ilar pro­
ceedings w ithin three m onths, the lender need not re­
port the abandonm ent. Instead, the lender will file the
in fo rm a tio n retu rn when he acquires an interest in the
property. However, if the lender does not, in fact, com­
mence such proceedings w ithin the three-m onth per­
iod, the lender’s obligation to report the abandonm ent
arises a t the close of the three-m onth period.
Form and Manner of Information Re­
turn. R eturns reporting the acquisition or
abandonm ent of secured property general­
ly m ust be filed w ith the IR S on m agnetic
m edia sim ilar to re tu rn s re g a rd in g
^paym ents of interest. However, some lenders m ay be
perm itted to report the inform ation on manuallyprepared IR S Form s 1096 and 1099. The retu rn m ust
be filed on or before the end of February of the year fol­
lowing the calendar year in which the acquisition of an
i n te r e s t in the property occurs or in which the lender
knows or has a reason to know of the abandonm ent of
the property. The following inform ation m ust be in­
cluded on the return:
(a) The name and address of the debtor;
H (b) The d eb to r’s tax identification number;
A general description of the property securing the

Federal Reserve Bank of St. Louis

(d) W hether the debtor is personally liable for the re­
paym ent of the debt;
(e) The date on which the lender acquired an interest
in the property, or first knew or had reason to know
th a t the property had been abandoned;
(f) The am ount of the debt o utstanding a t the tim e
the interest in property is acquired (or as of the date on
which the lender first knew or had reason to know th a t
the property had been abandoned);
(g) If the debtor is personally liable for the repay­
m ent of the debt, the fair m arket value of the property
a t the tim e the interest is acquired by the lender (or at
the tim e the lender first knew or had reason to know
th a t the property had been abandoned);
(h) In the case of an acquisition, the am ount of the
debt satisfied by the acquisition; and
(i) Any other inform ation as m ay be required by the
IRS Form s 1096 and 1099.
A lender also m ust furnish a statem en t to each deb­
tor whose name is required to be set forth in the infor­
m ation retu rn filed w ith the IRS. The debtor m ust be
provided with the same inform ationm set forth in the
return filed w ith the IRS. Additionally, a legend s ta t­
ing th a t the inform ation is being reported to the In te r­
nal Revenue Service should be included on the sta te ­
m ent. The statem en t m ust be furnished to the debtor
on or before Ja n u ary 31 of the year following the calen­
dar year in which the acquisition or abandonm ent of
property occurs, even though the returns need not be
filed w ith the IR S until the end of February.
Penalties. Lenders subject to the new re­
porting requirem ents are liable for a
$50.00 penalty for each failure to file an
inform ation retu rn to the IRS, subject to a
m axim um of $50,000.00 for any calendar
year. The penalty m ay be avoided if the failure is due
to reasonable cause and not to willfull neglect. If,
however, the failure to file w ith the IR S is due to inten­
tional disregard of the filing requirem ents, the penalty
is not less th an 10% of the aggregate am ount not pro­
perly reported and the $50,000.00 lim itation does not
Additionally, a lender who fails to furnish the re­
quired statem ent to the debtor is subject to an addi­
tional $50.00 penalty for each m issing statem ent, up to
a m axim um of $50,000.00 for any calendar year.
Again, the penalty m ay be avoided if it is shown th a t
the failure is due to reasonable cause, and not to willful
neglect. I t is possible for both the penalty for failure to
file inform ation retu rn s w ith the IR S and the penalty
for failure to furnish statem ents to debtors to apply.
I t is possible under some circum stances to obtain an
extension of tim e to file the inform ation returns, not to
exceed 30 days. The application for an extension of
tim e m ust be addressed to the director of the service
center w ith which the retu rn s m ust be filed, and m ust
contain a concise statem ent supporting the good cause
for allowing an extension. The application generally
m ust be filed after Septem ber 30 of the current year,
bu t before Ja n u ary 15 of the following year, to be effec­
tive for the current calendar year.
N orthw estern Banker, January, 1985


BAI’s ATM 7 + Gives Bankers
State-of-the Art Electronic Report
A ssociate Publisher
i i E V E R Y T H I N G YOU ever
L a wanted to know about elec­
tronic delivery system s but were
afraid to a s k ” could very well have
been the sub-title to Bank A dm inis­
tra tio n ’s ATM 7 + conference held
recently in New Orleans. The four
day event included a full day of
crash courses; a to tal of 57 concur­
rent sessions; grandiose exhibits dis­
playing sta te of the a rt equipm ent,
and receptions on river boats, com­
plete with dixieland bands and
southern belles.
L inda F en n er Zim m er, wellknown industry consultant, opened
the conference with her traditional
sta tu s report of retail paym ent sys­
tem s which focused on ATM s and
point of sale. She estim ates th a t as
of December 31, 1984, some 4,500 fi­
nancial in stitutions had ATM s and
th a t these in stitutions account for
app ro x im ately 59,300 m achines.
She notes th a t 13,300 ATM s were
shipped during 1984 and this repre­
sents only the second dip in annual
shipm ents since she began charting
the data in the late 1960s. She feels
th a t the shipm ent decline is a result
of several institutions participating
in long range strategic planning and
positioning. The result has been to
place all new electronic banking
endeavors ‘‘on hold.” Also, she
points to m any in stitutions being
concerned w ith earnings and thus

placing an em phasis on capital pre­
servation. Additionally, w ith the
growing interest in, and pilot activi­
ties with, POS, she notes th a t there
is a concern th a t POS m ay be com­
petitive with, rath er than com­
plem entary to, ATMs.
For 1984, Ms. Zimmer estim ates
th a t 3.91 billion ATM financial
transactions will take place and ac­
c o u n t fo r $ 1 1 0 .8 b illio n in
withdraw als and $223.1 billion in
deposits. ‘‘The im plication is th a t
ATM s are beginning to have a
stabilizing and ultim ate displace­
m ent effect on both personal checks
and, consequently, the num ber of
hum an tellers. ATM s are having an
im pact!”
T urning her atten tio n to the s ta ­
tu s of POS she warns, ‘‘POS funds
transfer have finally advanced from
the dream er stage to one in which a
num ber of pilots are underw ay
around the country—and even a few
full-fledged program s. T h a t’s the
good news. The bad news is th a t
POS is being spearheaded by a num ­
ber of diverse groups, each w ith its
own ultim ate objectives and per­
spectives; hence, a definitive presen­
tation on the sta tu s of POS in the
U.S. is alm ost impossible a t this
D espite the infancy of POS, Ms.
Zimmer has been able to diagram
three parallels with the develop­
m ents of the more m ature ATMs. 1.)
M arketing is essential. The con­
sum er determ ines the success or fail­

ure of a product in the m ark etp lace
and neither ATMs or POS are excep­
tions to this rule. 2.) Reliability/uptim e is critical. If reliability and up­
tim e were im portant with A T M ^
they become absolutely critical wira
POS. W ith an inoperative ATM, a
custom er is prim arily inconveni­
enced. W ith an inoperative POS te r­
minal a custom er is em barrassed
and angry. The consumer m ust ot
accom modated if POS is to succeed.
3.) Lack of consumer demand. J u s t
as with ATMs, the consum er is not
dem anding POS.
Ms. Zimmer concluded her u p d a ^
with a review of videotex services
and home banking pilots. Acknow­
ledging th a t both are the wave of the
future, she added th a t progress ki
much slower than predicted.
Typical of the 57 concurrent ses­
sions held during the conference was
‘‘The Checkless A ccount—When,
How, W hy?” Conducted by R ic ^
Wilhide, senior m arketing officei%
W ilm ington T ru st Co., W ilmington,
Del., this presentation examined the
likelihood of a checkless society.
While m any people would like t ^
have a totally checkless account,
surveys show th a t realistically it is
far into the future. Nonetheless,
check volume has slowed from 5-6%
in an n u a l g ro w th d u rin g t h ^
1974-1979 period to the current 2%
level. Citing a special report compil­
ed by the Federal Reserve Bank of
A tlanta in 1983, ‘‘Displacing the
Check,” Mr. Wilhide noted t h r e ^
phases of check displacem ent: ac­
quisition of cash, retail purchases,
and paym ent of bills. He added th a t
the technology needed to replace
checks has either been d e v e lo p e d
and is in the m arket or is on the
verge of being incorporated into new

LEFT— Don Ridgeway (left), mktg. mgr., Identix Inc., demonstrates fingerprint indentification screener in the exhibit hall. RIGHT—Over­
flow rooms were the hallmark of the ATM 7 + conference.
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis


Minneapolis to Host Community Bank
Executive Development, March 10-14
Development Program scheduled
for the Amfac Hotel in Minneapolis,
M arch 10-14. Known by the nick­
name of the “ CEO Survival School”
by m any bankers, th is popular
school is being co-sponsored by Cali­
fornia, Colorado, Idaho, Illinois,
Iowa, M innesota, M ontana, Nevada,
N orth D akota, Oregon, South Dako­
ta, U tah, W ashington, W isconsin
and Wyoming.
U sing a detailed case study of a
hypothetical com m unity bank, the
intense, four-day program will offer
training in essential techniques and
technology for senior bank managers.
Am ong the topics to be covered are:
asset/liability m anagem ent, s tra te ­
gic planning, m icrocom puter tech­
nology, m arket research, product de­
velopm ent, pricing and hum an re­
sources planning.
The case study approach, which is
new for th is program , will have sev­
eral advantages, according to R an­
dall A. Killebrew, chairm an of the
ABA Com m unity Bankers Council
and president of the F irst National

B ank of Petersburg, 111. It will fully
integrate all of the separate class­
room presentations and will allow
bankers to te s t the theories they
learn by im plem enting them in the
case stu d y ’s com m unity bank.
The bankers will be divided into
team s th a t will m eet each evening to
discuss how they feel the bank
should be run, based on the d ay ’s
classes. M icrocom puters will be
available to be used in evaluating
the m anagem ent decisions.
“ This is a rigorous program th a t
will make com m untiy bank CEOs
better decision-makers so th a t they
can keep their banks profitable and
productive,” stated Moore. “ It has
been designed by com m unity bank­
ers for com m unity bankers.”
The dates and locations for the
1985 program s are: February 24-28,
San Francisco, H y a tt Em barcadero;
M arch 10-14, 1985, Minneapolis,
AMFAC; and M ay 5-9, 1985, Wil­
liam sburg, VA, W illiam sburg Inn
A dditional inform ation on the
1985 ABA Com m unity B ank Execu­
tive Development Program is avail­
able by calling Meg B attle at ABA,
(202) 467-4013.

device in the home, a telephone.
“ There is no question th a t home
banking will arrive, it is here today.
The interest of those attending
ATM 7 + was evidenced by the over­
flow capacity of the sessions which

began each m orning at 8:30 a.m. and
ran through 5:00 p.m. The sessions
focused on ATM s/M arketing; ATMs/
Operations; A T M s/Strategic Plan­
ning; PO S/M arketing; POS/ S tra te ­
gic Planning, and Home Banking. I

TATE banker associations in 15
sta te s are co-sponsors of the
1985 Com m unity B ank Executive

Dale Dooley, president, ITS, Inc., conducts
session on success of POS project in Iowa.

Cash displacem ent through the
use of ATM s is already taking place,
however, only 33% of the custom er
base are active ATM users. Two con­
d itio n s m ust exist before ATM sys­
tem s begin to have a m ajor im pact
upon delivery system costs. A signi­
ficant proportion of current tra d i­
tional teller transactions m ust be
0 iade to ATM s and a significant
num ber of custom ers m ust become
plastic users for ATM and POS ac­
The scram ble for POS as a retail
p u rc h a se displacem ent is on with
retailers and oil companies leading
the way. The popularity of debit
cards am ong retailers and bankers
results from them being seen as fast,
convenient and less costly then
checks. However, before debit cards
become widely accepted by con­
sumers, three areas m ust be ad­
dressed: 1.) A lternative paym ent
C iethods, prim arily credit cards and
checks, will have to become less a t­
tractive: 2.) Debit cards m ay have to
offer some explicit inducem ent for
w idespread acceptance. 3.) Con­
s u m e rs m ust become accustom ed to
the absence of cancelled checks as
receipts for transactions.
The electronic paym ent of bills is
an area less clearly defined. The
• i r g e s t num ber of checks w ritten are
to pay bills, therefore, a significant
check reduction will not be seen un­
til this area is addressed. Mr. Wilhide suggests th a t there is a re­
n e w e d interest in telephone banking
because of all the media attention
about home banking through term i­
nals in the home. M any consumers
are asking why they have to invest
an expensive term inal when they
already have an inexpensive access
Federal Reserve Bank of St. Louis

We are pleased to announce that

D ick Taylor
is now associated with us as a registered
representative at our Sioux City office.

(SB* Piper, Jaffray
&H opw ood


SIOUX CITY, IA 51101 712/252-4072

N orthw estern Banker, January, 1985


IBA 1985 Officers; Treas.—John Luttrell; Secy.— Harlan Yates; Pres —James Forster, and
Vice Pres —Tom Andes.

James Forster Elected IBA President
A ssociate Publisher


A M ES FO RSTER was elected
to serve as president of the Illi­
nois Bankers A ssociation during the
recent IBA annual meeting. Mr.
Forster is chairm an of the DeKalb
Bank and will assum e his office on
Ja n u ary 1, 1985. IBA President
Charles Wilson, chairm an of F irst
N ational Bank of the Quad Cities,
Rock Island will rem ain on the
board of directors as im m ediate p ast
president. O ther 1985 IBA officers
elected were:
Vice President—Thom as Andes,
president, F irst N ational Bank, Bel­
S ecretary—H arlan Yates, presi­
dent, Cisne S tate Bank.
T reasurer—John Luttrell, presi­
dent, F irst N ational Bank, D ecatur.
D uring the annual m eeting, which
was held in conjunction with the
IBA Bank M anagem ent Conference,
IBA President Wilson reported on
the recom m endations of the Special
Task Force on Bank Structure. The

32 member task force, representing
a cross-section of the IBA m em ber­
ship, addressed three key issues and
made the following recom m enda­
Community Service Facilities—
The IBA should support the au th o r­
ization of com m unity service facili­
ties to offer all banking services per­
m itted at main bank offices and the
authorization for the establishm ent
of two additional com m unity service
facilities. This would allow a total of
five facilities with the Home Office
Protection provisions of the current
law rem aining unchanged. The IBA
board voted 28-0 in favor of this re­
Intrastate Banking—The IBA
should support legislation, effective
Ja n u ary 1, 1986, authorizing bank
holding companies to operate s ta te ­
wide by elim inating the five banking
regions as described in the Illinois
B anking Holding Company A ct of
1957, as amended, Ja n u ary 1, 1982.
Interstate Banking—The IBA
should support legislation which
would perm it bank holding compa­

nies located in states contiguous t P
Illinois to acquire banks in Illinois
on a reciprocal basis beginning J a n ­
uary 1, 1986. The board vote was
24-4 on the in tra sta te and in te rsta te
banking issues.
Acknowledging the association’s
self-imposed 2 year m oratorium on
banking structure legislation, Mr.
W ilson pointed out th a t current Illi­
nois banking laws are viewed b®
m any within the industry to be a n ti­
quated and archaic. “ As a board we
would not be serving the IBA m em ­
bership if we did not lead the w a t
w ith positive and progressive r ®
sponses to the changes occurring
within the banking industry. The is­
sues which we have confronted have
indeed been complex. A t the sa m a
tim e they have been deceptively
subtle, in th a t we have been forced
to reflect on the very nature or
essence of our industry. We have
been offered a proposition, whicjj^
asks w hether we are prepared to ex­
pend the lim its of our resources to
preserve banking as it has existed
for scores of years, or w hether we
will have the energy, inventiveness^
and unified courage to take the lead
in shaping the future."
In comparison to the dram atic un­
dertakings of the IBA board, the re­
m ainder of the Bank M a n a g e m e n t
Conference m ay have been anti-climactic. B ut not so. The keynote
speaker was Dr. B arry Asm us, for­
mer professor of economics a t Boise
S ta te U niversity. Well tr a v e le d
am ong banking conventions in re­
cent years, the very popular Dr.
Asm us is indeed a champion of the
free enterprise system .
The prem ise of Dr. A sm u s’ ecc^
nomic philosophy is th a t the true
wealth of any nation is not in her
natural resources, but rath er in her
people. N ations prosper where their

LEFT— IBA President Charles Wilson (center) adjusts President’s pin on newly elected IBA President Jim Forster (left), while IBA E x^
ecutive Director Bill Hooter looks on. Mr. Forster assumes his office on Jan. 1, 1985. RIGHT—Conference speakers included: Alan Alport,
Arthur Andersen & Co.; Dr. Barry Asmus, and Conference Chmn. Harry Cruncleton, pres., Bank of Belleville.
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

Illin o is N e w s

p e o p le are free to participate in pri­
vate ownership capitalism . He adds
th a t the prerequisites for a free eco­
nomy are a high savings rate am ong
the citizens combined w ith a low
• n a r g in a l tax rate which leads to the
investm ent by entrepreneurs in pro­
duction tools. As an example of this
process he notes, “ Thom as Edison
didn’t bitch about the dark...he did
•so m e th in g about it! ’’
Critical of the socialistic teach­
ings advocated in the economics
classroom s of the 1960s and 1970s,
the professor boasts of his conver­
s i o n to capitalism . “There is no such
thing as an obscene p ro fit.’’ He also
noted th a t ideas are changing on
Am erican cam puses and there is an
exciting shift to the right. “ A free
S n a rk e t with lim ited governm ent in­
volvem ent is the only moral way to
Calling for the privatization of
nearly all governm ent services, Dr.
S \s m u s suggests th a t the only two
areas of legitim ate governm ent in­
volvem ent in any society are in na­
tional defense and the judicial sys­
te m . “You know we have a problem
S vhen there are nearly as m any em ­
ployees working for the USD A as
there are farm ers in this country. In
Idaho the legislature m eets once
^ v e r y year for 60 days. For years I

IBA President Charles Wilson responds to a
question during the Annual Meeting.

^frave been try in g to get the law
changed so th a t the legislature
would m eet once every 60 years for
one day. Perhaps we should follow
the example of post World W ar II
^G erm any where all laws were de­
clared null and void with the excep­
tion of the speed lim it and th a t
w asn’t being obeyed anyw ay.’’ W ith
this as a basis, he went on to re­
c o m m e n d th a t all politicians be
elected for ju s t one term , be th a t for
Federal Reserve Bank of St. Louis

two, four or six years. “ Do you know
th a t a politician’s first words when
he comes out of the womb are ‘L e t’s
pass a law .’ ”
Dr. A sm us closed by giving a
homework assignm ent to the bank­
ers. “ One, teach your children to
work, and secondly, read a good
book and pass it on.’’

Dr. Barry Asmus gives a homework assign­
ment to the bankers during his presenta­

Alan Alport, tax p artner with the
Chicago office of A rthur Andersen &
Co., had the unenviable task of ex­
plaining the ram ifacations of the
Tax Reform A ct of 1984. He was
quick to point out th a t a t this point
the bill is not legislation but only
theory. He cautioned against panic
or over-reaction and noted th a t even
though the initial response in the
banking industry has been negative,
the sm art money in W ashington is
b ettin g th a t the bill will not pass.
He warned, however, “ The sm art
money has been wrong before.’’
The bill in its present form is
strictly a down paym ent mechanism
on the federal budget deficit. It is
characterized by lacking a consis­
ten t theme, being strictly a revenue
enhancer and h ittin g hard a t the
banking industry. It will not im pact
individuals greatly, however.
A reas to be affected within the
banking in dustry include taxation
loan loss reserves; the tim ing of IRA
contributions; the repeal of the net
interest exclusion scheduled for J a n ­
uary 1, 1985; below-market and in­
terest free loans; interest deductions
on municipal bonds; tax credits for
ESO Ps, and golden parachute retire­
m ent benefits. Mr. A lport advised
th a t m any of these changes create
an opportunity for tru s t dep art­
m ents to get out on the street and
“ ...drum up some business.’’
M eredith Fernstrom , senior vice


president of consumer affairs for
American E xpress Company, ad­
dressed the conference on the views
of consumers tow ard the financial
services industry. A characteristic
of the deregulatory m ovem ent w ith­
in the industry has been to place
bankers face to face w ith consumers.
Consumer leaders feel th a t this con­
tac t has resulted in increased bank­
ing convenience, new financial pro­
ducts and more flexibility. She cau­
tions th a t these same leaders feel
th a t things are m oving too fast and
are calling for a slow down in
Prim ary am ong the concerns of
the consum er is the fear of being ex­
cluded or priced out of the financial
m arket. Ms. Fernstrom cited exam ­
ples of “ life line” legislation where
financial institu tio n s are required to
provide free checking account ser­
vices to custom ers under age 18 and
to senior citizens. A nother concern
common to consum er leaders is the
advent of POS term inals. “ They feel

Meredith Fernstrom offers an update on
consumer views toward the financial ser­
vices industry.

th a t float is a God-given right and
don’t w ant it tam pered w ith.”
She closed by advising bankers to
com m unicate w ith their custom ers
about new products, services and
pricing structure. She also sug­
gested the form ation of consumer af­
fairs units within banks and the
adoption of voluntary codes and

V.P. Joins Elmhurst Natl.
Robert G. Girolamo, Sr. has
joined the m anagem ent staff of Elm ­
hurst National Bank as vice presi­
dent - corporate banking division.
He began his banking career 28
years ago at Consumers National
Bank of Chicago. Prior to joining
N orthw estern Banker, January, 1985


Illin o is N e w s

E lm hurst National in 1975, Mr. Gir­
olamo was vice president for W ash­
ington N ational Bank of Chicago
and Bank of Ravenswood.
E lm h u rs t N a tio n a l also a n ­
nounced the prom otion of Craig
Tower to a ssista n t vice president,
consumer loan division, and Donna
Medema to operations officer.
Mr. Tower has been with the bank
since 1979. Ms. M edema joined the
bank six years ago in the teller area.
E lm hurst N ational recently cele­
brated the opening of a new banking
office within the H am ilton Lakes of­
fice complex, located a t Route 53
and Thorndale Road. The new office
will be staffed with both commercial
and consum er lending personnel,
and includes a 24-hour cash station
center located ju s t outside the facili­

the largest bank holding company in
dow nstate Illinois,” com m ented Mr.
Mr. Stevenson, 48, executive vice
president since late 1983, joined
CNB as a business developm ent offi­
cer in 1968 after seven years with
Continental Illinois National Bank
in Chicago. He became head of the
commercial banking division in 1975
and was elected senior vice presi­
dent in 1978.
Joining the Bank in 1963 as a
trainee, Mr. Snyder worked in the
credit departm ent before tran sfer­
ring to the tru s t departm ent in
1965. Named a vice president in
1972, he has headed the tru s t de­
partm ent for the p ast nine years and
was named senior vice president in

Two Join Cole-Taylor Group

Elected at Mid City Natl.


Thom as R. Beverlin has been
elected a senior vice president in the
commercial lend­
ing departm ent
at The Mid-City
N atio n al B ank
of Chicago.
Mr. Beverlin
h a s o v e r 25
years of banking
experience and
has served the
past four years
as president of
the N ational Republic Bank of Chi­

Lansing Name Change Noted
F irst N ational Bank of L a n s in g
has officially changed its name to
F irst N ational B ank of Illinois.

Three Advanced in Aurora

J. H ouston M. Clinch, J r. has
Top Executives Elected At
joined the Cole-Taylor Financial
Commercial National, Peoria G r o u p , I n c .,


Aurora N ational Bank rec e n tl”
announced the prom otion of Gordon
E. Volkman to vice president of
Robert T. Stevenson, Jr., was N orthbrook, as
com m unity relations, a newly cre­
elected president of Commercial N a­ senior vice presi­
ated public relations and a c co u n ^
tional Bank, Peoria, effective Ja n u ­ d e n t, a d m in is ­
m aintenance position. Mr. Volkmam
ary 1, succeeding David E. Connor, tratio n and con­
joined the bank in 1967 and has 18
president since 1967.
sulting. In addi­
years prior banking experience.
Mr. Connor, 59, will continue as tion, Paula L.
Also announced were the prom o­
chairm an and chief executive officer B a r n e t t
tions of Karen Lee and G regory B ^
of C om m ercial
joined as tra in ­
W hipple to a ssista n t vice presi­
National Bank.
ing and develop­
dents, commercial loans. Ms. Lee
He is also presi­
m ent m anager.
sta rte d in banking 14 years ago at
dent and CEO of
M ost recently,
Oswego Com m unity Bank. Mr.
M idwest Finan­
Mr. Clinch was senior m anager and W hipple started his banking c a re e r
cial Group, Inc.,
practice director for the Chicago of­ in 1981 with Federal Land Bank of
the bank holding
fice com m unity bank consulting St. Louis.
company which
function of Peat, M arwich & M it­
owns CNB.
Replacing Mr.
Ms. B arn ett previously was m an­
Stevenson as ex­ R.T. STEVENSON
ager of corporate training for B ank­
ecutive vice presers Life & C asualty Co.

ABA Names Chicago A.V.P.
Outstanding Bank Employee



ident will be Bruce F. (Skip) Snyder,
senior vice president, who has headed
the b an k ’s tru s t division since 1975.
‘‘These changes are necessary as I
devote more and more of my tim e to
directing M idwest Financial Group,
Inc., which has rapidly evolved into
estern Banker, January, 198b
DigitizedN orthw
Federal Reserve Bank of St. Louis

Sandra L. Crossey, a ssista n t vice
president, F irst Security Bank of
Chicago, is one of six national recipi­
ents of the American Bankers A sso­
ciation Commendation Award for
her contributions to the banking in­
dustry. She is the only award winner
from Illinois.
The contest, sponsored by the
ABA Com m unications Council, is
designed to recognize bank em­
ployees who have enhanced the im­
age of their banks or the banking in­
d u stry within their com m unity and
the banking profession.

Opens Chicago Office
BankPro System s, developer o £
WireNetTM, a microcomputer-based
electronic funds transfer and m an­
agem ent system , has opened its first
regional office in Chicago.
The new office will serve as t h #
base for B ankP ro’s sales and cus­
tom er support in the E a st and M id­
west, while the San Francisco head­
quarters will serve the W estern U.S.
Staffing the Chicago office are A r #
thony Parkinson, regional sales
m anager, and Woodrow Campbell
and B rian Parkinson, regional sales
representatives, all located a t 625
N orth M ichigan Ave., Suite 50C^

commercial banking division, will
report to the chairm an and work on
special assignm ents for th a t office.

WBA Moves to New Location
The W isconsin Bankers Associa­
tion has moved to a new location.
The new address is: 100 North
H am ilton S treet, M adison. Its
phone num ber rem ains the same:

Bank Executives to Meet in Madison
• r H E W ISCONSIN Bankers AssoI ciation 1985 Bank Executives
Sem inar will be held February 4-6 at
The Concourse H otel in Madison.
^ Orion Sam uelson from Chicago’s
wVGN Radio and Television will key­
note the sem inar w ith an overview
on the economic condition of W is­
consin’s num ber one in d u stry —agri­
c u ltu r e —and related issues.
w The featured speaker for the legislator/banker reception and banquet
on Tuesday, February 5, will be
Charles Osgood, w riter and anchor
^ f two daily CBS News broadcasts—
New sbreak and The Osgood File.
On W ednesday m orning during
the seminar, you will hear a pricing
presentation by G. Michael Moebs.
¿ l i s rem arks were developed around
a survey th a t was sent out to all
m em bers in December. The advance
schedule follows:
M onday, F ebruary 4


V enture Capital Financing
Seminar. (Co-sponsored by
W isconsin Power and Light
com pany and the W isconsin
Bankers Association).


H ospitality events begin.
Tuesday, February 5

M .M .


R egistration begins.
General session begins.

General session resumes.
5:00 A pproxim ate adjournm ent.
6:00 L egislator/banker reception.
7:15 L egislator/banker banquet.
W ednesday, F ebruary 6

C 1:00

•A.M .
B re a k fa s t sponsored by:
M&I M arshall & Isley Bank,
9:30 General session.
0L2.-OO A pproxim ate adjournm ent.

Federal Reserve Bank of St. Louis

United Banks to Affiliate
With Valley Bancorporation
Robert C. O ’Malley, president of
U nited B anks of W isconsin, Inc.,
and Gus A. Zuehlke, chairm an of
Valley Bancorporation, announced
last m onth th a t the two organiza­
tions have entered into an agree­
m ent in principle calling for the m er­
ger of U nited and Valley. Under the
agreem ent, which has been ap­
proved by each organization’s board
of directors, owners of U nited com­
mon stock would receive a t their
election and w ithin some lim ita­
tions, either $29.25 per share in cash
or 1.27 shares of Valley common
stock for each share of U nited com­
mon stock. The transaction is sub­
ject to negotiation of a definitive
agreem ent and all requisite corpo­
ra te and reg u la to ry approvals.

First Wisconsin, Milwaukee
Realigns Top Management
Hal C. Kuehl, chairm an, F irst
W isconsin N ational B ank of Mil­
waukee, has announced a realign­
m ent of the b an k ’s top m anagem ent.
Roger L. Fitzsim onds, executive
vice president, will lead a newly
formed commercial financial group
w ith responsibility for the commer­
cial banking division, F irst W iscon­
sin Financial Corporation, F irst
W isconsin Leasing, real estate fi­
nance division and corporate finance
Michael J. Schmitz, senior vice
president, will head up a new con­
sumer-financial group which will in­
clude Mr. F itzsim onds’ former retail
responsibilities. This group will con­
sist of the branch office division, the
consumer credit division, F irst W is­
consin Investm ent Services and
F irst Insurance M anagem ent.
Richard S. Bibler, executive vice
president, who form erly headed the

New Regional Manager Joins
First Interstate Trust
Jeffrey L. M organ has joined
F irst In te rsta te T rust Company of
W isconsin, Sheboygan, as regional
m anager of the com pany’s southern
tru s t services offices.
Mr. M organ will be headquar­
tered at F irst In te rsta te Bank in
W est Allis, and will have prim ary re­
sponsibility for m arketing and ad­
m inistering employee benefit tru s t
plans at F irst In te rsta te Banks in
W est Allis, New Berlin, Shorewood,
Caledonia and Racine, as well as at
Brown Deer Bank.
Mr. M organ formerly m anaged
the tru s t departm ent a t Colonial
Bank in Thiensville.

Twelve Advanced At
First Wisconsin Trust
The board of F irst W isconsin
T rust Company recently announced
the prom otion of six officers and the
election of six new officers.
Prom oted to vice president were
Nicholas J. B ertha, III, Florian J.
Nalencz, Carl A. Silvestri and Lois I.
Williams; to a ssista n t vice presi­
dent, M ark G. Berry, and to tru s t of­
ficer, Patricia A. Ricci.
Newly elected to a ssista n t tru s t
officer and assista n t secretary were
D iane M. B edran, P a tric ia R.
Dziewa Daniel G. Jaszi and M ary
Ellen M arkowski; to a ssista n t cash­
ier and a ssista n t secretary, Deborah
A. Day, and to m arketing officer,
Robin B. Gonring.

Citizens State Bank, Loyal
Celebrates 75th Year
Citizens S tate B ank of Loyal re­
cently celebrated its 75th anniver­
sary. Am ong the festivities were
several open houses for bankers and
associates and the public, a dinner
p a rty for all employees and former
employees, and a dinner for stock­
N orthw estern Banker, January, 1985

legal lending limit
©th & Marquette
Federal Reserve Bank of St. Louis

Member FDIC

cently in operations and w ith per­
sonnel. She has also served as a
director since January, 1981.
Mr. Weisz has been w ith the bank
as chief executive officer since Ja n u ­
ary, 1983. Prior to th a t tim e he was
president and a director of the F irst
N ational B ank of Buhl and also
served as a bank exam iner with the
FD IC for seven years.

Wayzata President Named
^ Richard D. Bliss has been elected
* resident of the F irst N ational Bank
of W ayzata. He
succeeds LeRoy
A s h f e ld , w ho
J ia s accepted a
p o sitio n w ith a
bank in St. Paul.
Mr. Bliss had
m o st re c e n tly
^>een serving as
vice president in
charg e of th e
commercial lend­
ing departm ent, a position he has
^ e l d since 1981. He joined F irst N a­
tional, W ayzata, in 1976 as an in­
stalm ent loan officer and prior to
th a t tim e was w ith Thorp Finance
for several years. He is a 1970
g r a d u a te of M ankato S tate Univer­

Three Elected At
^Morwest Bank Duluth
N orwest B ank D uluth, N.A. has
elected the following assista n t vice
presidents: Daniel D. Kronlund,
^ l a r t i n M. M acLean and E dw ard E.
Mr. K ronlund joined N orwest in
1984 in a new position in charge of
special assets. Prior to th a t time, he
^ ie ld a position w ith the FDIC.
Mr. M acLean joined Norwest in
1982 and previously was w ith
Branch D istributing, Inc. of Duluth.
He is in charge of tru s t operations
# tn d consum er support for Norwest
B ank D uluth.
Mr. Thornberg joins Norwest
B ank D uluth in the business devel­
opm ent area. He has been associated
#vuth N orwest Corporation since
1962, when he joined its affiliate in
Fergus Falls. From 1970 to 1976 he
was w ith Norwest B ank Silver Bay,
and from there he joined Norwest
•Tw o H arbors where he currently
serves as president, as well as assis
Federal Reserve Bank of St. Louis

ta n t vice president w ith Norwest
B ank Duluth.

Stillwater President Named
The board of directors of Norwest
B ank Stillw ater has nam ed Steven
E . Z in n e l a s
p r e s id e n t. H e
succeeds Jam es
C. Graham , who
has assum ed the
position of chair­
m an of the board
and chief execu­
tive officer.
M r. Z in n e l
joins the Still­
w ater bank from
his previous position as vice presi­
dent and m anager of the commercial
banking division’s m etro business
unit a t N orwest B ank M etroW est,
N.A., Hopkins. A graduate of the
U niversity of M innesota, Mr. Zinnel
began his banking career in 1970 as
a m anagem ent trainee a t Norwest
B ank M arshall, N.A. Since th a t time
he has held a variety of positions in
commercial lending and branch ad­
m in is tra tio n a t N orw est B ank
Bloomington, N.A. and Norwest
B ank M etroW est, N.A.
This executive team developm ent
will effectively position Norwest
B ank Stillw ater for the m anagem ent
transition which will occur pending
Mr. G raham ’s announced retire­
m ent on Ja n u ary 31, 1985.



Mr. H oltey has been w ith Nor­
west Corporation for the p a st 27
years, m ost recently as senior vice
president and tru s t officer.
O ther directors of the bank in­
clude Steven J. H uston, vice presi­
dent and a loan officer a t the bank;
D.A. Schroeppel of Buffalo, and
Doug W hite of Rockford.

Zapp National Bank
Names New Officer
The board of Zapp National, St.
Cloud, has announced the addition
of L ynette A. Golly as pension of­
ficer to the tru s t departm ent staff.
Ms. Golly, a 1976 graduate of
W illmar Vocational Technical In sti­
tute, is a specialist in the area of in­
dividual and corporate qualified pen­
sion and profit-sharing plans. She
was previously associated w ith
Rinke, Noonan, G rote and Smoley,

Owatonna V.P. Elected
Controlling Interest
Purchased in Rockford Bank
Shirley L. H uston has purchased
controlling interest in the Rockford
S tate B ank and will serve as chair­
man, vice president and cashier.
Steven J. Weisz was elected presi­
dent and director and John H oltey
was elected a director.
Ms. H uston has been w ith the
bank since A ugust, 1980, m ost re­

Robert A. Reger has been elected
vice president in commercial loans
a t N orwest B ank Owatonna, N.A.,
according to K enneth E. Wilcox,
Mr. Roger previously served as
senior vice president of Lake City
Bank, M adison, Wise., sta rtin g w ith
th a t bank when it was newly char­
tered in 1966. From 1959 until 1966
he was employed a t Pacific Finance
N orthw estern Banker, January, 1985

T hese days in th e financial
services industry, th e com peti­
tion ju s t keeps g ettin g tougher.
F ro m th e sm aller independent
institution to th e large hold­
ing company, h igher produc­
tiv ity and profitability are
crucial to your success.
E n te r TransAction System s,
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

TSI offers th e m ost sophis­
ticated inform ation system s on
th e m arket today, tailored spe­
cifically to fit your institution’s
individual needs.
TSI provides th e system s.
You provide th e control. W ith
complete custom er relationship
data on-line, you m ake th e
m ost of your custom er base.

W ith distributive item proc­
essing, you m ake th e m ost #f
your money by maximizing fio«
opportunities. A nd w ith p lat­
form autom ation, you make
th e m ost of your people b y #
dram atically increasing th eir
You can also count on TSTs
unique commitment to compel

employee training: in-house foriftal instruction as well as on-going
train in g and u se r w orkshops.
A nd, th ro u g h TSFs affilia­
tion w ith th e F irs t In te rsta te
% ste m , you give your custom ­
e rs access to th e nation’s larg ­
e st autom ated teller netw ork,
w ith over 5,000 CIRRUS®
ifTM’s nationwide.

Quite simply, TSI can be your
brand new key to success. Tb find
out how, call (303) 293-5500.
TSI. C onsider th e Profitabilities.


Systems, Inc.

A Subsidiary of First Interstate Services Co.
Federal Reserve Bank of St. Louis

N orthw estern Banker, January, 1985


Twin Cities <
Norwest B ank M inneapolis has
nam ed Dharani (Darin) P. Narayana
as executive vice
p r e s i d e n t, r e ­
porting to James
R. C a m p b e ll,
president of Nor­
west B ank M in­
He is respon­
s ib le fo r th e
b a n k ’s n a tio n a l
and in te rn a tio n a l

d .p .



and will continue to m anage Norw est’s Financial In stitu tio n s busi­
ness group. The appointm ent be­
comes effective imm ediately.
Mr. N arayana joined Norwest
B ank M inneapolis in 1969 as vice
president and head of the In te rn a ­
tional Finance division of Norwest
B ank M inneapolis. In 1980, he was
nam ed senior vice president of the
international banking departm ent,
w ith responsibility for overseeing
much of the b an k ’s international
lending activity.
In 1983, he was nam ed senior vice
president of the Financial In stitu ­
tions Banking Group of Norwest
Corporation. In th is position, he was
responsible for developing Norw est’s program s and strategies to
serve other financial institutions, in­
cluding credit unions, savings and
loans, investm ent companies and
correspondent banks.
Mr. N arayana is a native of India
and a graduate of Osm ania Univer­
sity and the U niversity of London.
He also earned an M BA degree from
the U niversity of W isconsin.
* * *

F irst Bank Lake, Minneapolis,
kicked off the bank’s 75th anniver­
sary by presenting a special anni­
versary calendar to the M innesota
N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

State Historical Society. The calen­
dar, compiled by Mary Lou Sim,
bank historian, depicts the growth of
the bank and surrounding communi­
ty from 1910 through the present.
Each m onth the calendar presents a
historical photo complete w ith a des­
cription of the era from which the
photo originates.
The bank’s anniversary celebra­
tion will culminate in three days of
festivities on May 1-3.
* * *

James H. Hearon, III, president
and CEO a t N ational City Bank of
Minneapolis, re­
cently announced
the following ad­
d itio n to th e
b a n k ’s official
T im o th y O.
D a v is , jo in e d
N a tio n a l C ity
B ank
November 13 as
p e rs o n a l t r u s t
officer. Previously, Mr. Davis was
associated w ith Richfield B ank &
T rust Co., and Beal, H orner & DeVaughn. He is a graduate of H am ­
line U niversity School of Law.
* * *

James Sherard has been elected
president of F irst Bank Plymouth.
M ost recently vice president and
m anager of F irst Bank Ridgedale,
Hopkins, Mr. Sherard began his
banking career with F irst Bank Sys­
tem in 1970. He is a graduate of
Howard U niversity in W ashington,
DC, and received his M BA from the
U niversity of Indiana in 1976.
Neal Frank has been named to suc­
ceed Mr. Sherard as m anager of First
Bank Ridgedale. Mr. F rank’s m ost



recent position has been assistant
vice president a t Ridgedale. He
began his banking career with F irs #
Bank Minneapolis in 1981.
* * *
Am erican N ational B ank of S a in ^
Paul has announced th a t John E.
M cC auley h as
joined the bank
as group vice
president and se­
nior credit offi­
cer. He will di­
rect the comm er­
c ia l
b a n k in g
group and will be I
chairm an of the |f |
s e n io r c r e d i t J.E. MC CAULEY
comm ittee.
Mr. McCauley has over 30 years of
credit and senior m anagem ent expei®
ience. Prior to joining American, he
was president and CEO of FBS B usi­
ness Finance Corporation, a subsi­
diary of F irst B ank System s, Inc. He
has also served as senior vice p r e s ^
dent of a m ajor lending departm ent
and member of the senior credit com­
m ittee a t F irst B ank Minneapolis.
A graduate of the U niversity oL
M innesota, Mr. McCauley receivecr
his B.A. degree in Economics. He has
also participated in the U niversity of
M innesota E xecutive Program and
m any other educational and p ro fe s^
sional program s
* * *



I T O -------------------------- J W J -------------------



It’s tim e to
check your henhouse
world of financial deregulation and compe­
T hetitionnewdem
ands that independent community
banks closely evaluate their business partners. Some
partners are committed to helping you, others to help­
ing themselves.
At American, we have the resources to be your corre­
spondent, and the desire to help you succeed. We do
not use your money to compete for your customers.
Please evaluate your correspondent partners. Which
ones help you, and which ones really use you to help
themselves? You may find some strange birds.

Federal Reserve Bank of St. Louis

B A N K *



N orthw estern Banker, January, 1985


M in n e s o t a N e w s

St. A nthony National Bank, St.
Anthony Village, recently announced
the appointm ent
of Lon Helgemo
to m anager of ret a i l b a n k in g ;
Mary Jo Seline
to retail banking
officer, and San­
dy Powers to ad­
m inistrative offi­
cer of the retail
banking depart­



Mr. Helgemo, currently vice presi­
dent, is a graduate of the University
of M innesota. He has been with the
bank since 1969, when he joined as
m anager of the instalm ent loan de­
partm ent.
Ms. Seline joined the bank in 1982
as a custom er service representative.
She is a graduate of the U niversity of
Ms. Powers, a graduate of Sparks
Business College, started at the bank
in 1967 also as a custom er service
* * *
F irst A sset R ealty A dvisors, a
division of F irst Bank Minneapolis,
has acquired the Roosevelt Mall of
Jacksonville, Fla.
The 242,000 square foot shopping
center is valued a t nearly $8.5 mil­
lion and was purchased for the ac­
count of F irst A sset Real E sta te
E quity Fund, F irst B ank’s openend, commingled real estate fund for
penison plans.
Located in the prestigious O rtega
peninsula section of Jacksonville,
the center’s m ajor ten an ts are
Iveys, May-Cohen and F u rc h g o tt’s,
all prom inent departm ent stores in
the area.
“ Our plan is to invest an addi­
tional $3 million in the property over
the next several years. We intend to
substantially upgrade the retail en­
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

vironm ent in the center through a
m ajor renovation program ,” said
Charles Ingwalson, president of
FARA. “ The dem ographics of the
area are excellent and we intend to
make Roosevelt Mall a very exciting
place to shop.”
* * *
Robert S. Branham retired Novem­
ber 30 as chairman of Norwest Bank
South St. Paul, N.A. and Donald L.
Sheldon also retired on th a t date as
vice president-controller at the bank.
Mr. Branham began his banking
career in South St. Paul in 1946 with
the Stockyards M ortgage Company
and later as an officer of Norwest
Bank South St. Paul, N.A. In 1955
he joined Norwest Corporation staff
in bank relations. In 1964 he was
elected president of Norwest Bank
Rochester, N.A. and in 1967 he re­
joined the corporation as senior vice
Mr. Sheldon began his banking ca­
reer 28 years ago a t F irst National
Bank and T rust Company of Fargo,
N.D. He served at American Na­
tional Bank in Valley City, N.D.,
from 1958 through 1964 and joined
the South St. Paul bank in 1964.
* * *
Robert V. Gorsche has been
nam ed president of Norwest M ort­
gage, Inc., as announced by Norwest
Corporation Vice Chairm an Richard
S. Levitt, who has been serving as
the m ortgage com pany’s president
since A ugust.
Mr. Gorsche was a senior vice
president a t N orwest Financial,
b a se d in D es
M o in e s .
H is
background there
in c lu d e s p o s i­
tions as control­
ler and as a se­
nior line officer
w ith responsibil­
ities in consumer
f in a n c e
equipm ent leas­
ing. A native of
Des Moines, he had been with Nor­
w est Financial, the former Dial Cor­
poration, since 1960.
Mr. L evitt also announced th a t
Patrick J. Kenneally, former vice
president and regional m anager at
N orwest Financial, has joined Nor­
w est M ortgage as executive vice
president, and William J. Brechtel,

vice president a t N orwest Corporis
tion, has been nam ed senior vice
president and a ssista n t to the presi­
dent of Norwest M ortgage.
Mr. Levitt said the re s tru c tu rir^
underw ay a t Norwest M ortgage is
intended to “ selectively scale down
certain businesses and to place N or­
west M ortgage in a risk-averse ori­
entation w ith em phasis on cost c o ^
trol and profitability. S trong m an­
agem ent and accounting controls
are central to our plans.”
* * *
Frederick Paul Phillips has been
prom oted to a ssista n t vice president
and m anager of
D e v e lo p m e n t
Services for FBS
Inform ation Ser­
vices in St. Paul.
In his new posi­
tion, Mr. Phillips
will direct imple­
m entation of new
system s and de­
velop methodol­
ogy for the First
Bank System computer operations
Mr. Phillips has been senior stra ­
tegic planner for F irst Bank M innea­
polis and strategic planner for F i r #
Bank Saint Paul. Before th a t he held
several positions with Farm ers and
Mechanics Savings Bank in M innea­
* * *

Norwest Corporation has formed
Norwest Capital M arkets, Inc., as a
wholly-owned subsidiary to direct s ®
lect aspects of the com pany’s securities-related businesses.
The subsidiary will encompass
four distinct elem ents of the securj^
ties business and will be organized as
an internal “holding com pany,” over­
seeing the activities of each related
business. This type of organization is
unique to the Upper M idw est r e g io ^
and is sim ilar to th a t adopted by
several large money center banks.
John W. Morrison, chairm an and
chief executive officer of Norwest,
said th a t the subsidiary was fo rm e #
to coordinate delivery of securities
trading, underw riting, securities in­
vestm ent and corporate financing
functions to the m arketplace.
“ This consolidation of services a l#
lows us to approach the securities

M in n e s o t a N e w s

• îa r k e t in a unified m anner. U sing
the service delivery system s already
put into place by N orwest Corpora­
tion, we will be able to reach a larger
custom er base through expanded
geographic p en etratio n ,” he said.
Robert C. Brown has been ap­
pointed president of N orwest Capital
M arkets. Prior
^ ) his appoint­
m ent, he was ex­
ecutive vice pres­
ident of Norwest
B ank M inneapo­
l is w ith overall
responsibility for
the b a n k ’s funds
m a n a g e m e n t,
consumer bank0 i g and capital
m anagem ent and tru s t groups. In
this capacity, he was involved in the
form ation of Norwest Brokerage Ser­
vices and Peregrine Capital M anage­
m e n t. He joined the N orwest organi­
zation in 1975 as president of BancN orthw est in Chicago, a municipal
bond subsidiary.

Groundbreaking Held for Norwest Center
nies for the new N orw est
Center in downtown M inneapolis
were held December 17 a t the site of
the new building a t Sixth Street and
the Nicollet Mall.
N orwest Center, a mixed use de­
velopment, is a jo in t venture be­
tween Norwest Corporation and Ox­
ford Properties, Inc. The 66-story of-

fice tower will house Norwest Bank
M inneapolis’ banking facilities, the
corporate headquarters of Norwest
Corporation and offices of several
N orwest subsidiaries. Saks Fifth
Avenue departm ent store will an­
chor the center’s retail plaza.
The building is expected to open
in phases, beginning in the second
quarter of 1987.

tal. In addition to the $50,000 per
year provided by F irst B ank M innea­
polis, F irst Bank Saint Paul and the
First Bank System foundations, con­
tributions to the fund will be solicited
from individuals, foundations and
* * *

joined the bank from N orwest Infor­
m ation Services.
* * *


r o u n d b r e a k in g

The board of directors of Norwest
Bank St. Paul, N.A. recently an­
nounced the election of the following
employees, according to Larry D.
Buegler, CEO and chairman.
Keith D. Jasch
N orw est Capital M arkets is com­
p r is e d of four businesses: Norwest was elected sys­
Corporate Finance, investm ent bank­ tem s officer. He
ers for the regional middle m arket; attended Moor­
N orwest Investm ent Services, Inc., head S tate Uni­
specializing in bond trading and un­ versity where he
d e rw ritin g ; N orwest Brokerage Ser­ received a BA in
vices, a reduced commission broker­ accounting and
age operation; and Peregrine Capital recently joined
M anagem ent, an institutional invest­ the bank from
N o rw e st B an k
m e n t m anagem ent firm.
* * *
The W om en’s Economic Develop­
m ent Corporation (WEDCO) of Saint
^ a u l has created a loan fund to fi­
nance businesses owned by women
who fail to qualify for traditional
financing. E stablished w ith initial
funding from the foundations of
• J r s t Bank M inneapolis, F irst Bank
Saint Paul and F irst Bank System ,
the fund is a model which brings
together two economic units of the
com m unity — the bank and the in­
d iv id u a l woman entrepeneur.
‘‘Through the loan fund, we hope
to assist women who do not have ac­
cess to other financial resources,”
^ a y s Kathryn Keeley, president and
executive director of WEDCO.
Financing available through the
fund will include direct loans, loan
guarantees and co-participations for
d a rio u s uses, including seed capital,
working capital and expansion capi
Federal Reserve Bank of St. Louis




Joseph H. Grossman was elected
real estate officer. He is a graduate
of the College of St. Thom as where
he received a BA in Psychology. He
previously was a m ortgage loan rep­
resentative w ith N orwest B ank Cal­
houn Isles.
Robert D. Fleischhaker w as
elected to operations officer. Mr.
Fleischhacker has attended the Uni­
versity of M innesota, Lakewood
Com m unity College and is a gradu­
ate of the Dale Carnegie course. He

John Biezuns has been named
president of M arquette Lease Ser­
vices Inc., the
lease financing
s u b s i d i a r y of
Bank Shares In ­
Before joining
M arquette Lease
S e r v ic e s , M r.
Biezuns was vice
president and regi°nal m anager
of General Elec­
tric Credit Corporation. He has a
BA degree from the U niversity of
South D akota in business adm inis­
* * *
Dale W. Johnson and Deryl C.M.
Rogers have been appointed busi­
ness developm ent officers in the
north central m arketing center of
Barclays Am erican/Business Credit,
Inc., M inneapolis office.
Mr. Johnson has specific respon­
sibility for southeastern M innesota,
southw estern W isconsin, eastern
Iowa, the Quad Cities area of Illi­
nois, and N orth D akota. A native of
Elk River, Minn., he has a BA de­
gree from M acalester College and
was executive vice president with
St. Cloud N ational B ank before join­
ing Barclays American.
Mr. Rogers has responsibility for
w estern Iowa including Des Moines,
southw estern M innesota, and South
D akota. He will share responsibili­
ties w ith Mr. Johnson for portions of
the Twin Cities area. Mr. Rogers is a
native of Chicago, holds an MBA
from the U niversity of Chicago in
both m arketing and finance, and
previously was regional sales m an­
ager for Investm ent Services for
N orthw estern Banker, January, 1985


M in n e s o t a N e w s

mm mm m





mm m f »

n lL C O IH c


PRESIDING at Norwest’s Executive Management Conference was Sr. V.P. Darin Narayana, shown (left) at podium introducing Dr. Paul
Nadler (seated), who spoke on the “ Economic Outlook.” RIGHT—Other speakers included, from left: Dr. Sung Won Sohn, sr. v.p. and chief
economist, and Vice Chairman Bob Krane, both with Norwest Corporation headquarters; Sen. James Abdnor (R., S.D.), and Danny Wall,
staff dir. of the Senate Banking and Finance committee.

At Norwest Management Conference —

Chairman John Morrison Says, “We’re
Committed to Correspondent Banking
H E future and how to get there,
as well as the present and how to
cope w ith it, were thoroughly ex­
amined a t the 20th A nnual Execu­
tive M anagem ent Conference hosted
by N orwest Corporation a t the
H y a tt Regency Hotel in M inneapo­
lis last m onth. The half-day confer­
ence was concluded w ith the tr a ­
ditional duck dinner and en tertain ­
m ent.
In his welcoming rem arks, Nor­
w est C hairm an Jo h n M orrison
stated, “ I hope you take away an im­
pression th a t N orwest is a corpora­
tion th a t understands you, cares and
w ants to help. A year ago we an­
nounced our H ub system , staffed by
some of our more able bankers, to be
closer to you and assist you with our
products. We stru ctu red a system to
access this new service. We also re­
structured our data processing ser­
vice. We in stitu ted a series of semi­
nars and more than 400 persons
have attended them .
“ Our next step was our entry into
Alliance Banking and, as you know,
we ju st announced the first relation­
ship in th a t program w ith Affiliated
Bank Corporation of Casper, Wyo.
Now, today, we are announcing a
new adjunct to Alliance Banking
th a t will offer banks a closer affilia­
tion w ith Norwest w ithout adopting
the Norwest name. Alliance B ank­
ing is a new, exciting way to enhance
business for our correspondent


N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

banks who choose to go this way.
We all know the problem s of today
and I hope this is one solution to
assist you.”
“ I w ant to express the depth of
our com m itm ent to correspondent
banking and to the products, ser­
vices and delivery system s to fulfill
th a t com m itm ent,” Mr. M orrison
Darin Narayana, senior vice presi­
dent a t Norwest Corporation in
charge of the Financial In stitu tio n s
Group, presided a t the conference
and introduced the speakers. He was
assisted by Richard Erickson, vice
president of Norwest Bank M idland,
N.A., Minneapolis, who assem bled
the entire speaking and en tertain ­
m ent program .
Dr. Earl Joseph, president of A n­
ticipatory Sciences, Inc., M inneapo­
lis, presented a fast-paced visual
look a t “ F u tu rism ,” and its high-

Norwest Chmn. John Morrison

tech im plications for the banking im
dustry. “ Bankers m ust grasp this
understanding so as to know what
to expect of their large or small cus­
tom ers and how to deal with a r ^
serve th em ,” Dr. Joseph stated.
“ M anagers are becom ing m ore
knowledgable about finances and
bankers th u s m ust become sm arter
than they are in the financing
their specialty.”
Dr. Paul Nadler, professor busi­
ness adm inistration a t R utgers Uni­
versity, Brunswick, N .J., said 1985
will be a critical year for the U n i t ^
S tates in the eyes of the world and
for its own economic future. He re­
ferred to the need for a positive ap­
proach by the A dm inistration and
Congress tow ard resolving the b a ^
looning federal deficit th a t could un­
dermine the natio n ’s future. “ Jap an
and other n ations,” Dr. Nadler
noted, “ take our dollars for w hat we
buy, then turn around and financ#
o u r d e f i c i t s by b u y in g o u r
dollars!...Foreign nations are a tre ­
mendous value to us. But, if they
stop buying our dollars we’re in real
On the banking industry, Dr.
Nadler pointedly stated, “ Money
brokers are insidious, and you m ust
get away from them . We have to
change the insurance program to ráfc
fleet the risk tak e n .” On another
p art of the banking scene he said,
“ Capital by itself is not im p o rtan t—
i t ’s confidence th a t counts.” He
stresses th a t point in his forthcorr^
ing book slated for April release in
which he says, “ W hatever goes on,
let the public in on it and they retain
confidence in you.”
Vice Chairman Bob Krane moder®
ated a “Legislation ’85 Panel.” Par-

M in n e s o t a N e w s

• c ip a n ts were Sen. James Abdnor
(R., S.D.), chairm an subcom m ittee
on agriculture and transportation;
Danny Wall, staff director, U.S. Se­
nate Com m ittee on Banking, Hous• t g and U rban Affairs, and Dr. Sung
Won Sohn, senior vice president and
chief economist for N orwest Corpo­
Mr. W all said th a t while Sen.
# a r n and Rep. St. Germ ain intend
to preserve the Ju ly 1, 1983 grand­
father date on the non-bank applica­
tions, “ i t ’s not so easy. I t p u ts the
m ajor banks together w ith Sears,
ffcc., in objecting to plugging the
loophole—each for different rea­
sons.” He said Rep. St. G erm ain’s
reason for not bringing up the Se­
nate-passed bill prior to adjourn­
m e n t last October was becaue he
was having trouble in his own com­
m ittee preserving the Ju ly 1, 1983
grandfather date.
^ Sen. Abdnor opened “we’re in for a
long, hard fight on ag proposals...
The challenge we have to live up to
is to do m agic w ith fewer dollars.”
He added, “ I know there is a consen­
t s in Congress to do som ething
now about the deficit. Someone’s go­
ing to get h u rt and I ’m afraid it will
be the agriculture.” He feels th a t
som ething needs to be done about
^ jv e rn m e n t ag paym ents based on
production th a t have encouraged
“ fence row to fence row ” planting on
lands th a t should never have been
tilled, th u s contributing to overpro­
duction, lower prices and higher
governm ent paym ents. “ We have to
change the program and get more
buck for the dollar,” he concluded.
Dr. Sung W on Sohn sees a con­
tin u in g , bu t weak recovery into
1985, w ith a gradually rising in ter­
est rate in the spring reacting to
loan dem and and high governm ent
borrowing. Deficit cuts proposed by
t h e President, he said, are not
M eteorologist Dr. Walt Lyons,
president of R-SCAN Corporation of
M inneapolis, gave an interesting
#udio-visual presentation on “W hy
Finance a D rought?”
A fast-paced speech w ith a sales
m essage for bankers as they com­
pete more and more w ith sales-ori# i t e d com petitors was given by
Charles Herrmann, the knowledgable and entertaining vice president
for corporate and national sales
developm ent of Jostens, Inc., of
• w a to n n a , Minn.
James Campbell, president of
Federal Reserve Bank of St. Louis

Norwest B ank M inneapolis, N.A.,
was the final speaker. He reaffirm ed
Mr. M orrisson’s earlier rem arks
when he said, “ In 1985 you’ll see the
result of our changes and you and
we will experience the benefits of
these advances. In no way will Nor­
w est B ank M inneapolis and our Hub
banks diminish their com m itm ent to
correspondent banking. I ’m con­
vinced th a t w h a t’s been done will
strengthen our relationship and this
com m itm ent.”
A fter a cocktail reception and the
traditional duck dinner, guests were
treated to superb entertainm ent pro­
vided by M arilyn Sellars and her
o utstanding orchestra.

Norwest Bank Rochester
Promoted Two Officers
Carla K ilpatrick, vice president of
Norwest B ank Rochester, N.A., has
been nam ed m anager of the b a n k ’s
consumer lending departm ent with
responsibility for real e state and
other personal instalm ent loans.



Ms. K ilpatrick joined Norwest Bank
in 1982 assum ing responsibility for
consumer real estate loans. Prior to
working a t Norwest, she was m an­
ager of N orthland M ortgage Com­
pany and before th a t time, was em­
ployed a t Olm sted Federal Savings
and Loan A ssociation as a lending
Sherry Clowes, operations officer
a t N orwest B ank’s Green Meadows
Office, has been prom oted to ID P/
account servicing m anager a t the
M ain Bank. Ms. Clowes joined the
bank in 1974 and since then has
worked in the teller areas a t the
D ow ntow n D rive-In an d M ain
Bank, the commercial loan d epart­
ment, and the m arketing area.

Brainerd Banker Attends
Human Resources School
Beverly M arx, personnel officer
a t F irst Am erican B ank of B rainerd
recently attended the Am erican


B a n k e rs A s s o c ia tio n N a tio n a l
School of hum an resources held in
Boulder, Colo.

FBS Develops New Program Agricultural Lending Academy
F irst Bank System , Inc., M innea­
polis, has developed a new program
for its b a n k ’s ag lenders called the
FBS A gricultural Lending Acade­
my, according to Darrell G. Knudson, vice chairm an and head of the
com pany’s regional division.
“ The purpose of the A gricultural
Lending Academy is to provide a
com prehensive tra in in g package
th a t furthers our ag lenders’ skills
and increases the support they can
provide to to d ay ’s farm fam ilies,”
Mr. Knudson said.
The courses included in the acade­
my contain inform ation on all the fa­
cets of farm financing—credit, m ar­
keting, sales, technology and perso­
nal developm ent—and farm m anage­
m ent-related functions—production,
m arketing and finance. The ag acad­
emy concept, which has been in de­
velopm ent since 1983, will offer
courses for both the beginning and
experienced ag lender, and will ex­
plore new techniques and system s
inform ation the bank officer can use
such as a Regional Production Di­
rectory and A gricultural Technol­
ogy U pdates. The curriculum goes
beyond financially oriented courses
and will enable ag lenders to more
fully help farm ers use sophisticated
and technical financial services.
O ther courses present the alterna­
tive service options th a t are avail­
able to farm ers such as developing a
m arketing plan to complement cash
flow requirem ents. FBS loan officers
m ay select technical and personal
developm ent electives in addition to
their core courses, such as agricul­
tural policy and economic develop­
m ent, leasing, tax m anagem ent, asset/liability m anagem ent and tim e
m anagem ent. The academ y concept
was developed with the assistance of
an advisory board composed of ex­
perts from Cargill, Iowa S tate Uni­
versity, and the F irst Banks. De­
pending on the background of the a t­
tendee, the academ y will provide
nearly 500 hours of training in ag
lending. A ttendees who complete
the academ y will become certified
FBS ag lenders. Over 125 F irst
Bank ag lenders from four states
have been designated to attend the
ag academy.
N orthw estern Banker, January, 1985


M in n e s o t a N e w s

F&M Offers New Investment Program
NEW investm ent program de­
signed to offer its clients expert
investm ent advice in m utual funds
was recently introduced by F&M
M arquette N ational Bank.
The bank has obtained the exclu­
sive rig h ts to m arket and m anage
the M utual Funds Investm ent Pro­
gram (MFIP) in the Twin Cities and
eastern M innesota. The creator and
c o o rd in a to r of M F IP , M ichael
Hirsch, introduced and explained
his highly successful program a t an
F&M M arquette M F IP sem inar
November 14.
“ M utual funds are the best m eans
of investing to achieve grow th
through an avenue th a t reduces risk
to a m inim um ,” said Mr. Hirsch,

ABOVE, F&M Marquette President Carl R.
Pohlad, discusses MFIP with its creator,
Michael Hirsch, vice president and chief in­
vestment officer at Republic National Bank
of New York.

who is vice president and chief in­
vestm ent officer at Republic Na­
tional Bank of New York.
In the p a st several years, Mr.
H irsch pointed out, the stock m ar­
ket has grown increasingly com­
plex. “ M utual funds are an a ttra c ­
tive investm ent altern ativ e,” he
said. “ They are m anaged by finan­
cial specialists, are broadly diversi­
fied, and frequently are more liquid
and flexible than other investm ent
altern ativ es.”
“ The suitability of any invest­
m ent alternative lies in its ability to
deliver superior perform ance re­
su lts,” said F&M M arquette senior
vice president and m anager of in­
vestm ents Richard B. Hume. “ A fter
careful analysis, it is clear to us at
F&M M arquette th a t m utual funds
have c o n siste n tly o u tp erfo rm ed
both the broad m arket, as m easured
by the Standard & Poor’s 500 Stock
orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

Index, and a representative universe
of professionally m anaged bank and
insurance company accounts.”
M F IP is one of the n atio n ’s m ost
successful m utual funds in v est­
m ents services. Over the 9 year per­
iod ended in 1983, M F IP ’s com­
pounded annual retu rn to its clients
has averaged 15.7 percent, com­
pared to the m utual fund average of
11.8 percent. A $1,000 M F IP invest­
m ent in 1984, for example, had
grown to $3,710 in 1983.
Through M FIP, more than 700
m utual funds are evaluated on an
ongoing basis to select the 75 to 80
best perform ing funds. M arquette
Capital M anagem ent Corporation, a
wholly-owned F&M M arquette in­
vestm ent advisory subsidiary, then
selects 30 to 40 of these m utual
funds best suited for its M F IP
The b a n k ’s new service is based
on a threee-step investm ent process:
F irst F&M M arquette investm ent
officers work w ith M F IP custom ers
to establish specific investm ent and
perform ance objectives; second, the
bank determ ines the appropriate as­
set mix to be used in constructing
and m anaging the desired portfolio,
and third, it selects specific funds
for individual portfolios. F&M M ar­
qu ette continually m onitors its
M F IP custom ers’ portfolios and re­
commends tim ely portfolio a d ju st­
m ents.
F&M M arq u ette’s M arq u ette’s
M utual Funds Investm ent Program
is available exclusively through the
tru s t departm ent to individual in­
vestors, corporate pension and prof­
it-sharing plans, endowm ents and

Rochester Promotion Told
Randolph S. Koppa, president of
First Bank Rochester, has announced
the prom otion of
David B. Jasperson to comm er­
cial lending offi­
Mr. Jasperson
began his bank­
ing career with
F irst Bank Ro­
chester in June,
1982, as a m an­
agem ent associ­ D.B. JASPERSON

Duluth Appointments Told •
A t F irst Bank D uluth, E lsa
Erickson has joined the staff as cor­
porate tru s t consultant. Prior to
joining F irst Bank, Ms. Ericksc^|
was an attorney with People’s A ^
tion and with Qualley, Larson and
Jones, A ttorneys a t Law.
Also announced was the appoint­
m ent of Brenda Gribbon as m a n a g ^
of the E xpress Bank. Ms. Gribbon
joined the bank in 1977 as a teller
and m ost recently served as assis­
ta n t branch m anager at the E xpress
New officers elected are Doug
W elnetz, instalm ent loans, and Gary
Tangen, tru st. Mr. W elnetz joined
F irst Bank D uluth in 1979 and m ost
recently was instalm ent loan r e p r ^
sentative. Mr. Tangen joined the
tru s t departm ent this p ast year and
previously was owner of M innesota
Investm ent Counselors, Inc.

Norwest Bank Fergus Falls
Elects Two New Directors
N orwest Bank Fergus Falls re­
cently elected Allen Schroeder a n #
Dr. Roger Frerichs to its board of



Mr. Schroeder is a native of Fer­
gus Falls and has been engaged in
dairy farm ing for 31 years.
Dr. Frerichs has practiced w ith
The Fergus Falls Medical G ro u #
since 1972 and is a graduate of the
U niversity of M innesota Medical

Willmar Officer Elected


R. Kevin P eterson has been
elected instalm ent loan officer at
F irst B ank W illmar.
Mr. Peterson sta rte d his career in
banking a t F irst B ank W illmar ilP
1980. In 1982 he joined the staff of
F irst B ank Fargo, N orth D akota, re­
turning to W illmar in 1983. M ost re­
cently he has served as m anagem ent
associate in the instalm ent loam
departm ent.


Sioux Falls Banker
Named ABA Advisor

Top Executives Elected
^ t First Bank, Sioux Falls
David S. Birkeland, president and
chief executive officer of F irst Bank
of South Dakota,
N.A ., has a n ­
nounced the elec­
tion of Robert E.
Leech to presi­
d e n t of F ir s t
Bank of South
D a k o t a —S io u x
Falls and Gary
L. W ickre to se­
nior vice presi­
dent and head of



# ie commercial and agricultural di­
visions in Sioux Falls.
R eporting to Mr. Birkeland, Mr.
Leech assum ed overall financial
m arketing, operations, and hum an
n s o u rc e m anagem ent responsibility
in the Sioux Falls m arketplace as of
December 1, 1984. Mr. Leech will
have continued responsibility for
m anaging the b a n k ’s state-w ide
♦ u s t operation.
In the related election, Mr.
W ickre’s prom otion to head of the
commercial and agricultural divi­
sions in Sioux Falls, reporting to
• i r . Leech, became effective Ja n u ­
ary 1.
M r. B ir k e la n d c o m m e n te d ,
“ These elections will greatly en­
hance the b an k ’s ability to coordi­
n a te the developm ent and delivery
of commercial, retail, tru st, and
Federal Reserve Bank of St. Louis

other financial services to the Sioux
Falls m arketplace, while allowing
me to concentrate more of my tim e
and efforts with all of the F irst
Banks throughout South D akota.”
Mr. Leech began his banking ca­
reer in 1968 as a tru s t officer with
the U nited Virginia Bank, Newport
News, Va. From 1970 to 1975 he
served as a ssista n t vice president
and tru s t officer at Security Bank
and T rust in Southgate, Mich. Prior
to joining F irst B ank of South
D akota, Mr. Leech served as head of
the tru s t division of the B renton
Banks, Inc., of Des Moines, Iowa.
He has held his m ost recent position
as senior vice president and tru s t of­
ficer and head of F irst Bank of
South D akota’s tru s t division since
Mr. W ickre has been associated
w ith F irst B ank System , Inc., since
1963 when he went to work for F irst
Bank W essington Springs. Between
1966 and 1979 he held various posi­
tions w ith F irst Banks in Aberdeen,
South D akota, Northfield, M inneso­
ta, and Minot, N orth D akota. In
1979 he was elected vice president
and second officer at F irst Bank
W ahpeton, N o rth D akota. Mr.
W ickre has been in his m ost recent
position as president of F irst Bank
M adison since 1981.
F irst Bank of South D akota
serves South D akota state-wide
with 24 offices in 17 cities.

Huron Retirement Told
Elinor Schwartz, real e state loan
representative for Farm ers & M er­
chants Bank, Huron, was honored in
November a t a reception for her re­
tirem ent.
Ms. Schw artz joined the bank in
1959 as a bond teller and has been in
the real estate departm ent since
1962. Ms. Schw artz will continue to
be employed a t the bank on a parttim e basis for an undeterm ined time.

M ary Lynn M yers, vice president,
F irst Bank of South D akota, Sioux
Falls, has been
selected by the
American B ank­
ers Association
as a banking ad­
visor for 1984-85.
Ms. M yers is one
of 14 bankers
from around the
c o u n try
w ho
have been se.. . ..VCdc
lected by th e
ABA to participate in this consumer
education program created to in­
form the public about banking is­
sues and services.

BMA CEO Seminar Is
Feb 17-20 in Scottsdale
B ringing m arketing and m anage­
m ent together to ensure the long­
term success of the natio n ’s com­
m unity banks will be the focus of the
Bank M arketing A ssociation’s 10th
annual CEO Sem inar to be held Feb.
17-20 at M a rrio tt’s M ountain Sha­
dows Resort, Scottsdale, Ariz.
The three-day conference, entitled
“ M arketing and M anagem ent: Inno­
v a tio n s for Long-Term P e rfo r­
m ance,” will cover such areas as
loan pricing, personal banking pro­
gram s, media relations, selection
and education of board members,
and successful m anagem ent techni­
The keynoter will be Leonard
B erry, professor of m arketing,
Texas A&M U niversity, College
Station, who will speak on “ Bank
M arketing: Success R equirem ents.”
The session on media relations,
“ W hat To Do W hen the Media
Calls,’’ will be led by Virgil Scudder,
president, MediaCom, New York.
G etting the m ost out of bank di­
rectors will be covered in the ses­
sion, “ Your B an k ’s Board of Direc­
tors: Tapping an U ptapped Re­
source,’’ to be presented by Robert
D. Dye, senior vice president, Finan­
cial Shares Corp., Chicago.
“ Loan Pricing in the Comm unity
B an k ” will be addressed by J. Keith
Hughey, president, J. Keith Hughey
& Co., Inc., Houston.
The last day of the program will
be devoted to sessions on personal
growth and m anagem ent technique.
N orthw estern Banker, January, 1985


Virginia Bank Acquires
Lewiston Cooperative
Citizens S tate Bank, Virginia, has
received approval from the N e b ra ^
ka D epartm ent of Banking and Fn
nance to acquire substantially all
the assets and liabilities of the
Lewiston Cooperative Credit A sso­
ciation, Lewiston. The acquired c ^
operative will be operated as a
branch of the bank.

NDBA CEO and Bank Management
Conferences Set for January
ROGRAM D ETA ILS have been
finalized for the N orth D akota
Bankers Association 1985 Chief E x ­

Tuesday, January 29

C ontinental breakfast.
ecutive Officer Conference, “ In te r­
“ N e g o tia tio n S k ills for
personal Relations for B anking Pro­
Bankers ’’—continued.
fessionals," to be held Jan u ary 12:00 A djourn CEO conference.
28-29 at the Kirkwood M otor Inn,
Bismarck. Gerald R. Williams, asso­
Bank Management
ciate dean and professor of law at
Conference Program
Brigham Young U niversity, will
give an in-depth presentation on
Tuesday, January 29
“ N egotiation Skills for B ankers."
The NDBA Bank M anagem ent 11:00 Registration.
Conference will also be held a t the P.M.
Kirkwood M otor Inn, Bismarck, 12:15 Luncheon.
1:15 Call to order and welcome.
Jan u ary 29-30, following the conclu­
sion of the CEO Conference. Michael
1:20 “ S tate Legislation U pdate J. Vopatek, president of Vopatek
H arry J. Argue, executive
director, NDBA.
and Associates, Inc., will speak on
1:50 “ Organizing Yourself and
“ O rganizing Y ourself and Your
Staff." K ent Stickler will present an
Y our S ta ff ’’—M ichael J.
in-depth look at m anagem ent’s role
Vopatek, president, Vopatek
in selling a b a n k ’s products. Mr.
and A ssociates, Inc., H ins­
dale, 111.
Stickler, p resid en t of Financial
3:00 Break.
Shares South, Clearwater, Florida,
spoke at last y e a r’s NDBA bank
3:15 “ O rganizing Yourself and
m anagem ent conference. An update
Your S ta ff" —continued.
5:00 Recess.
on the sta tu s of sta te legislation will
also be presented.
6:30 Social hour/legislative recep­
Program details of both confer­
7:30 Banquet.
ences follow:
E n te rta in m e n t: “ How to
L a u g h a t Y our N e u ro ­
CEO Conference Program
s is " —Dr. Ronald W illough­
Monday, January 28
11:00 Registration.
Wednesday, January 30
12:00 Luncheon.
8:30 Continental breakfast.
1:00 Call to order and welcome.
9:00 “ Selling a B an k ’s Products
1:05 “ N e g o tia tio n S k ills for
— The M anagem ent Role
B ankers’’—Gerald R. Wil­
a n d P e r s p e c tiv e ’’—K e n t
liams, associate dean and
Stickler, president, Finan­
professor of law, Brigham
cial Shares South, Clear­
Young U niversity.
water, Fla.
2:45 Break.
10:30 Break.
3:00 “ N e g o tia tio n S k ills for 10:45 “ S elling a B a n k 's P ro ­
B an k ers"—continued.
d u c ts " —continued.
4:45 Reception.
12:00 Adjourn.

N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

Fargo Director Elected


Norwest B ank Fargo recently an­
nounced th a t R obert N. Spolum,
president of the
M e lro e C o m ­
pany, has been
elected to the
b ank’s board of
d ire c to r s . M r.
S p o lu m
a ls o
serves as a cor­
porate vice pres­
ident for Clark
Equipm ent Com­
pany, of which
Melroe is a business unit.
Mr. Spolum, a CPA, attended
Grinnnell College, Iowa, and is a
graduate of the Academy of Ac­
countancy in Minneapolis, Minn.

Five Advanced At
First National, Grand Forks
Richard O. Wold, president oL
F irst National Bank in Grand Forks,
recently announced the following
staff changes:
Steven Spicer has been prom oted
to b ra n c h m a n a g e r of F i r s ^
N ational’s Air Force Branch. He has
been w ith the bank since 1977.
Terry H orski has been prom oted
to operations officer. She joined the
staff in 1980.
Georgia W entzel and Leah Zim­
m erm an have been prom oted to ad­
m inistrative assistan ts. Ms. W ent­
zel has been w ith the bank since
1971 and her prim ary responsibility^
is to assist the office of the president
and executive vice president. Ms.
Zimm erm an sta rte d a t the bank in
1961, and her prim ary responsibili­
ties are tru s t account a d m in is tra ^
tion, stockholder com m unication
and assisting the office of executive
vice president-trust.
Ron Monson has been named in­
stallm ent loan officer. He joined in ^
1971 and m ost recently was assis­
ta n t cashier.

nancial institu tio n experience and
formerly was vice president and con­
troller of N ational City Bank.

Promotions Announced At
First Interstate, Denver

Western Natl. Appoints One

N ational Bank, Denver, died last
W estern N ational Bank, Denver,
Mr. Roberts joined the tru s t
mas announced the appointm ent of
Steve Sheridan as executive vice departm ent of Colorado National
Bank after graduating from Yale in
p r e s id e n t a n d
1930. Following three years service
member of the
the U.S. Navy, he joined Capital
T>oard of direc­
Life Insurance Company of Denver.
to rs .
In 1958 he rejoined Colorado Na­
Mr. Sheridan’s
Bank as executive vice presi­
e x p e rie n c e in ­
was appointed president in
cludes 11 years
1962 and from 1970-75 served as
^ i t h Denver N a­
chairm an. In 1968, he was elected
tio n al B ank and
resid en t of Colorado N ational
three years with
Inc., and served as
C itib a n k , New
chairm an of the holding company
York City. Mr.
^ h e r i d a n w as in te rn atio n a l ex­ from 1975 to June, 1976.
am iner for South and C entral Am eri­
ca and Canada while w ith Citibank.

The board of F irst In te rsta te
Bank of Denver has prom oted John
F. Steineger to senior vice president,
and D. Paul Brocker, Don M. Clary,
Hal S. Firem an, Stanley M. Gural-





United Bank of Denver
Promotes Six

United Bank of Aurora-South
U nited Bank of D enver’s Chair­
m an and Chief Executive Officer
Receives State Charter
U nited B anks of Colorado, Inc.,
recently received a sta te charter for
^ s planned new bank, U nited Bank
of Aurora-South, to be located a t the
intersection of H avana and Parker
Road in Aurora. The new bank was
to open in mid-December and was
c a p italize d a t $1.5 million.

Monaco President Named
G ary J. Roberts has been elected
president and chief executive officer
# f U nited B ank of Monaco. These
duties are in addition to his existing
responsibility as president of U nited
B ank of Arapahoe. Mr. R oberts re­
places Robert W. T schappat, Jr.,
# /h o is pursuing other career oppor­
Mr. Roberts joined U nited Banks
in 1972 and has held various opera­
tions and m anagem ent positions
•h ro u g h o u t the organization. In
1981 he was nam ed president of
U nited B ank of Arapahoe.

Former Denver Banker Dies
® Melvin J. Roberts, 76, former
president and chairm an of Colorado
Federal Reserve Bank of St. Louis

Richard A. Kirk has announced th a t
Sally J. Kelly and Robert L. H am il­
ton were nam ed a ssista n t vice presi­
dents; Randi J. Lewis was named
tru s t officer, and Linda R. Kuhlman,
J a n n e tte M. Scarpino and Daniel J.
LaPlante were prom oted to officer
A personal banking m anager, Ms.
Kelly joined U nited B ank of Denver
in 1965. She has held several posi­
tions in consum er banking.
Mr. Ham ilton, a credit approval
m anager, joined U nited B ank of
Denver in 1980. He also has served
as a personal banking officer and
m anager of indirect lending.
A m anager in asset m anagem ent
services’ employee benefits adm inis­
tration, Mr. Lewis has been with
U nited Bank of Denver since 1981.

Appointed in Denver
Holly Clifford has been appointed
vice president and cashier of South
Denver N ational Bank. She will be
in charge of all bank operations.
Mrs. Clifford has 12 years of fi-

nick and J. Claudette H am ilton have
been elected vice presidents.
Mr. Steineger, who is officer in
charge of the funds m anagem ent
group in the b an k ’s treasu ry divi­
sion, joined F irst In te rsta te Bank of
Denver in 1976.
Mr. Brocker joined the bank in
1980 and is director of public rela­
Mr. Clary joined the energy group
in 1983 after eight years of banking
experience in Denver and Texas.
Mr. Firem an has been w ith the
bank since 1979 and in the real es­
ta te group a little over a year.
Mr. Guaralnick was an assistan t
N orthw estern Banker, January, 1985

C o lo r a d o N e w s
professor at both the U niversity of
B ridgeport and Colorado School of
Mines and an a ssista n t treasurer
with Chase M anhattan Bank before
joining F irst In te rs ta te ’s high tech
lending group in 1983.
Ms. H am ilton has been with the
bank since 1976 and worked in the
real estate group for more th an four

Two Promoted in Denver
Joe W. Stander and David E.
Skoglund were recently prom oted to
a ssista n t vice presients a t Colorado
National Bank of Denver.
Mr. Stander began working at the
bank in Septem ber as a ssista n t con­
troller and accounts m anager.
Mr. Skoglund sta rte d his career
a t CNB as m anager of the cash m an­
agem ent division.

Former Banker
Joins Shea Associates
Bill Shea has joined Shea A sso­
ciates, a m arketing consulting firm
specializing in professional services,
located in Denver.
Mr. Shea previously was vice

president and director of m arketing
for Central Bank of Denver and had
m arketing responsibilities for the 23
banks w ithin Central Bancorporation, Inc. He also has held m anage­
m ent positions in operations, m ar­
keting and strategic planning a t
F irst National B ank of Chicago, and
Continental Illinois N ational Bank
in Chicago.

United Acquires
Colorado Springs Bank
U nited Banks of Colorado, Inc.,
Denver, has acquired G arden of the
Gods Bank in Colorado Springs.
U nited B ank of Garden of the
Gods has assets of $22 million and
employs 28 people. The bank is lo­
cated a t 560 G arden of the Gods

W.R. Alexander Retires From
First Interstate, Denver
W. Robert A lex an d er vice chair­
m an of the board of F irst In te rsta te
B ank of Denver, has announced his
retirem ent from the bank after 31
years of service, according to Robert
J. Malone, president and CEO.

What makes a banker good
enough to be a Better Banker? Skill,
knowledge and consistency,
for starters.
Federal Reserve Bank of St. Louis

Mr. A lexander’s contributions ra
this organization for more th an 30
years are well docum ented and we
will m iss his full-time p articipa­
tio n ,” Mr. Malone said. “ H ow eve^
we are pleased th a t he will rem ain as
a director of both the bank and of
our investm ent subsidiary, Denver
Investm ent Advisors, so th a t we
can draw on his years of experience
and expertise.”
Mr. Alexander, 57, joined In te r­
national T ru st in 1953

Promoted in Aurora
Jodie Sm ith has been prom oted to
m arketing officer a t Colorado N a­
tional Bank - Aurora.
Ms. Sm ith joined the bank in 198§
as bookkeeper and in her new posi­
tion will be responsible for advertis­
ing, public relations, training and
new business developm ent.

Central Bancorporation
Closes Investment Deal
C en tral B an co rp o ratio n , In c #
Denver, closed financial transac-

C o lo r a d o N e w s

# o n s last m onth pertaining to the
investm ent in their organization by
A m eriT rust Corporation, an Ohiobased bank holding company, an­
nounced George B. McKinley, presi#3nt and CEO of CBI. Through the
transaction, A m eriT rust purchased
a non-m anaging interest in a lim ited
partnership th a t owns 95 percent of
Central Bancorporation.
• Mr. M cKinley explained th a t
A m eriT rust’s non-m anaging inter­
est will not affect the current direc­
tors and m anagem ent of Central
B a n c o rp o ra tio n or its m em ber
Panks across Colorado.

Mission State Bank Opens
Lakewood Shopping Center


M ission S tate B ank was sche­
duled to open in the M ission Trace
Shopping Center at South W ads­
w orth Boulevard and H am pden
^ v e n u e in Lakewood last m onth, ac­
cording to Charles R. Sillstrop,
Capitalized at $1.5 million and ini­
tially em ploying eight persons, Mis# o n S ta te is affiliated w ith a group
of four banks including the B ank of

Applewood, A dam s County Bank,
M ontbello S tate Bank and Snow
B ank of Dillon.
The bank is housed in a new
12,000 s q u a re foot, tw o -sto ry
building th a t features an atrium
w ith skylight and m arble trim
throughout. There are five lobby
teller windows and a drive-up facili­
ty with consum er and commercial

United Bank of Denver
Celebrates Centennial
U nited Bank of Denver celebrated
its 100th anniversary November 26.
To m ark its centennial celebration,
U nited Bank unveiled an exhibit en­
titled “ Money, Trade and Trea­
sures,” which consists of 350 item s
in 13 displays.
U nited Bank of Denver, formerly
Denver National Bank, was foundedin 1884, and was one of only three
Denver banks to survive the Panic
of 1893. U nited S tates National
Bank, U nited Bank of D enver’s
other predecessor, was opened in
In 1958, details for the consolida­
tion of the two banks were com-

O So, whether you call for help to buy
a bank, how to better manage your
liquidity, learn about ATMs or need
assistance with a large borrowing
O customer, you'll find that your Better
Banker has the answers.


pleted and Denver N ational moved
to the Denver U nited S tates N a­
tional Bank Center.
By 1970, the Denver U.S. Bancorporation, which was established
in 1964, had grown to include eight
banks. To unify those banks, a new
name and corporate symbol were
adopted and Denver U nited S tates
N ational Bank became U nited Bank
of Denver.

Central Bank Announces
Promotions and Appointments
Central Bank of Denver has pro­
m oted three employees to assistan t
vice president, nine to officer posi­
tions and appointed one new officer.
The bank has also appointed two
new staff attorneys.
Jan e M. Bocko, G arth Gibson and
B arbara J. Sendecke have been pro­
m oted to a ssista n t vice president.
Mr. Bocko joined Central Bank of
Denver in 1982 as m anager of cost
accounting. Mr. Gibson joined Cen­
tral Bank in 1981. He previously
was a research a ssista n t in the de­
p artm en t of astro-geophysics a t the

I'm Don Echtermeyer, Senior Vice
President of correspondent banking
at Central Bank. Wnat I've just
told you is based 100% on objective
evaluation. And 100% biased pride
in the job our people do. We invite
you to call.

of Denver

The Better Bankers::
1515 Arapahoe Street/Dcnver, CO 80292

i (303) 893-3456/Member FDIC.
Federal Reserve Bank of St. Louis


U niversity of Colorado, Boulder.
Ms. Sendecke has served as m anage­
m ent of hum an resources develop­
m ent since joining C entral Bank of
Denver in Septem ber, 1984. Prior to
that, she was w ith H arris T ru st &
Savings for over seven years.
New officers include: E dw ard R.
Bernshausen and Susan L. Carriza-

les, accounting; Roger L. Bickel,
data processing; Samuel G. Lucero
and Carolyn M. Nighswonger, hu­
m an resources; M arshall E. Mahlum, securities; B arbara B. Dalke
and Jill M. M cHugh, m arketing; E d ­
ward D. Scott, custom er financial
center; Noia Greenwalk, retail bank­
ing, and R oberta A. Rodriguez, na-

tural resources.
Thom as J. Bissell and A dam M.
Dalmy have been appointed staff a t­
torneys. Mr. Bissell previously was
an attorney in private practice wiUi
Cloutier & M usech of M inneapolis
Mr. Dalmy was an attorney in pri­
vate practice with Mason, Reuler
and Peek of Denver.


WBA Credit Conference ■ Feb. 7-8
HE W YOMING Bankers Asso­
ciation 31st A nnual Credit Con­
ference will be held February 7-8 in
Casper. This y e a r’s program form at
is different from p ast years. S ta rt­
ing Thursday, February 7, a t 1:00
p.m. there will be a three-hour work­
shop on “ Cash Flow Problem s’’
given by Rex Beach, president of Fi­
nancial Proform as, Inc., Lafayette,
California. On Friday morning, Feb­
ruary 8, four concurrent workshops
will be offered on varied subjects of
interest to all loan officers. These
workshops will be repeated so th a t
you can select two of m ost interest
to you. F eatured luncheon speaker
on Friday is Dr. Sung Won Sun, se­
nior vice president and chief econo­
m ist from N orwest Bancorporation
in M inneapolis. The program sche­
dule follows:



Thursday, February 7

• “ Cash Flow Problem s’’—
Rex Beach, president, Fi­
nancial Proform as, Inc.
W BA open house, 152 N orth
Durbin, Suite 316.
Cocktail reception.
Dinner and entertainm ent.
Friday, February 8
W elcome—Lee Berger, con­
ference chairman, and senior
vice president, W yom ing
N ational Bank, Casper, and
Robert T. Noel, W BA presi­

estern Banker, January, 1985
Federal Reserve Bank of St. Louis


dent, and president, W yom­
ing N ational Bank, Casper.
Concurrent workshops.
• “ Bank L iability’’—David
L. Garland, regional counsel,
F irst In te rsta te Bancorp.
• “ Legislative U p d ate” —
A uburn Dowdy, co-chair­
man, W BA legislative com­
m ittee, and president, F irst
N ational Bank & Trust,
Cheyenne, and Je rry W.
Rankin, co-chairman, W BA
legislative comm ittee, and
executive vice p resident,
F irst W yoming Bank, Cody.
• “ Loan P rogram s”—Paul
Nem etz, d istric t director,
Small Business A dm inistra­
tion; Larry McDonald, presi­
dent, W yoming Industrial
D evelop C orp.; M ichael
O rm sb y , s ta te d ire c to r,
Farm ers Home A dm inistra­
tion, and B utch Kodel, De­
p artm ent of Economic Plan­
ning & Development.
• “ Loan Officers and H u­
m a n R e s o u r c e s ’’—N in a
W oodard, vice president and
personnel officer, F irst In ­
te rsta te B ank of Casper, and
Don R. Brookshire, vice
president, hum an resources,
W yoming N ational B ank of
R epeat concurrent w ork­

• “ Economic O utlook” —Dr.
Sung Won Sun, senior vice
president and chief econo­
m ist, N orwest B an co rp o r^
tion, Minneapolis.
“ Living with S tre ss” —Dr.
R obert Samp, U niversity of
W isconsin Medical Center,
M adison. Spouses encou^
aged to attend.

Appointed in Casper


Orval L ittle has been nam ed vice
president in charge of lending at
B ank of Casper. Mr. L ittle has 35
years of banking experience, includ­
ing 30 years in consum er len d in g
w ith W yoming N ational Bank, Cas­

Cheyenne V.P. Named
Michael E. Bohl recently w a f
nam ed vice president and tru s t of­
ficer a t F irst W yoming B ank in
Cheyenne. He had been serving as
a s sis ta n t tru s t officer a t FirsL
W yoming B ank - Laramie.

WBA Career Challenge
Seminars Set for Spring
The W yoming Bankers A ssock#
tion has scheduled the 1985 Career
Challenge Sem inar for Saturday,
April 27 in Casper and Saturday,
M ay 4, in Cheyenne.
Career Challenge is a skills-ei#
hancem ent workshop aimed a t im­
proving the expertise and effective­
ness of all personnel in the financial
industry. This full-day sem inar con­
sists of four one-hour and 15 m in u t^
modules. The four challenges for
this sem inar include cross selling,
extortion, bank swindles and money
This sem inar is especially recorrP
m ended for all teachers, all new ac­
counts personnel, bookkeepers, new
employees and personnel needing re­
fresher training.
For more inform ation contact th®
W BA office in Casper.


Elected in Great Falls
LaVonne R. Kirkhorn has been
elected a vice president in the com­
mercial lending
division a t F irst
B ank
W e s t,
G reat Falls, an­
nounced Robert
Reiquam , chief
executive officer.
Ms. Kirkhorn
started her bank­
ing career at the
C ity N a tio n a l
Hoffman, Daly, Lindgren, Bank in La Mi­
rada, California, in 1967. She joined
Ltd., Minneapolis.
F irst Bank G reat Falls in 1968 and
has worked as universal teller, an
outside adjuster and as an install­
Lunch w ith the Legislators. m ent loan officer before joining
“ The W orld Food System , F irst Banks commercial loan d epart­
S tructure and S itu atio n “— m ent in 1977. She was elected an as­
Dr. Jam es A ustin, H arvard sistan t vice president in 1981 and
has worked in credit review and
U niversity.
Open tim e to m eet with your compliance functions over the p ast
□ two years.

Senior Bank Managers Meet in Helena
H E M ONTANA Bankers Asso­
ciation will hold its 1985 Senior
Bank M anagem ent & Counsel Con­
ference on Ja n u ary 31-February 1 at
the Colonial Inn, Helena. The followjpg advance program has been re­


Thursday, January 31
# 8:00

¿ 2:00



•7 :3 0




E xecutive com m ittee m eet­
Board of directors meeting.
R egistration
Luncheon, spouses invited.
P re sid in g —Bob Sizem ore,
im m ediate p a st president,
Speaker, open.
Legislative panel.
M o d e ra to r—J o h n C adby,
MBA executive vice presi­
P a n e lists—George B enett,
M B A g e n e ra l c o u n s e l;
George Anderson, CPA; Les
Alke, M BA consultant.
T o p ic s —B a n k t a x a t i o n ,
EFT, ag liens, mechanics
liens and pledging.
Cocktail reception.
Evening open.
Friday, February 1
Continental breakfast.
“ M ajor Role of the Commu­
nity Bank Today“ —Randall
Killebrew , p resid en t and
CEO, F irst N ational Bank of
Petersburg, Illinois.
“ Are Banks in Trouble?”—
A nthony Scalzi, FDIC.
“ How Banks Can Profit
From In su ra n c e “ —R obert
W. M acDonald, president
and CEO, ITT Life In su r­
ance Corp.
“ C urrent Trends in Enforce­
m ent Proceedings” —Robert
B. W hitlock, A tty , Larkin,
Federal Reserve Bank of St. Louis


MBA Ag Credit Conf . - Feb. 6-8
TEN TA TIV E agenda has been
T released
for the 1985 Ag Credit


Conference by the M ontana Bankers
A ssociation Ag Com m ittee Chair­
man Tony Sunsted, F irst Security
Bank of Glasgow. D ates for the con­
ference are February 6-8 a t the Holi­
day Inn, Bozeman. R egistration fee
is $90 before Jan u ary 29 and $115
after th a t date. The ten tativ e sche­
dule follows:


Wednesday, February 6





Thursday, February 7
M a rk e tin g D evelopm ents
P ertinent to M ontana.
“ Lean Pork and Swine M ar­
ket in M ontana“ —Jim Shep­
“ Cash Settlem ent on F u ­
t u r e s C o n t r a c t s ” —J . H.
Bahn, extension m arketing
m anagem ent economist, Co­
operative E x te n sio n Ser­
One on one w ith the state
directors of Fm HA , ASCS,
SCS, SBA and Ag in M on­
tan a Schools.
Legislative update.
Lunch on one’s own.

“ The Politician vs. the Eco­
nom y: D e b u n k in g Som e
E c o n o m ic M y th s ” —P .J .
Hill, D epartm ent of Eco­
nomics, MSU, Bozeman.
‘‘B ad F a ith L itig a tio n :
B an k s on T r ia l’’—K eith
Strong, attorney, Church,
H arris, Johnson & Williams,
G reat Falls.
B anquet. “ Economic Feasi­
bility Study on Financial In ­
dependence’’—Arnold Dimmucci, Jr., director, South­
ern Nevada Financial A sso­
Friday, February 8



K eynote S p eak er—W ayne
Purcell, Virginia Polytech­
nic In stitu te, Blacksburg,
A gricultural Outlooks.
“W h a t’s New in Agricul­
tu re ’’—Panel from MSU.
W ind-up Sum m ary, W ayne
Sm orgasbord.
MSU basketball game.


Good question. And at Bandease, we
just happen to have six good answers:

1 Equipment leases are generally
more profitable to make than conven­
tional loans due to the tax benefits
you can receive.
You get an edge on your competi­
tion by offering equipment leasing as
a complement to your existing bank­
ing services.

lease, r c .
p.o. box 3128 o m a h a , ne bra ska 68103
an affiliate of first national bank of o m a h a
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

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conventional loan rates, which allows
your commercial and agricultural
borrowers to conserve working
a Through Banclease, you escape
the legal, accounting, staffing, m ar­
keting and operational expenses

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Leasing works. And Banclease can
make it work for your bank. Call Scott
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In Nebraska,

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Wymore Promotions

Transfers to Omaha

with responsibility over consumer
loans, m ortgage loans and new ac­

The transfer of Dan Finken to
# m ah a as m anager of N orw est’s
Region V Retail Services D epart­
m ent was announced last m onth by Appointed to Curtis Staff
John S. W ilkinson, executive vice
John Farrell, president of the Norwest Bank in H astings. The appoint­ president and cashier of C urtis S tate
Bank, announced last m onth the ap­
m ent is effective Jan u ary 14.
Mr. Finken joined Norwest Bank pointm ent of Harold F arrar to the
in H astings in 1976 as an install­ staff. A native of Curtis, Mr. F arrar
m ent loan officer. He became the will be an officer-trainee with re­
m anager of the m ortgage loan de­ sponsibilities for teller work and
p artm en t in 1980, then was named loan docum entation. He was a sec­
vice president and m arketing m an­ ond sem ester graduate from the Uni­
ager in 1981. In 1984 he was pro­ versity of N ebraska at Lincoln, m a­
m oted to retail banking m anager joring in Business A dm inistration.

The following prom otions were
announced la st m onth a t The
W ymore S tate Bank:
Mike B urchett, vice president, to
compliance officer.
P a tty Plantenga to a ssista n t vice
p re s id e n t and su cceed in g M r.
B urchett as cashier.
Kay N ovotny to a ssista n t vice
Sue Saathoff to a ssista n t cashier.

O’Neill President to Retire
J.B . Grady, 68, president of
O ’Neill National B ank and w ith the
bank for 50 years, will retire in
Ja n u ary of 1985. His career w ith the
bank has spanned 50 years and he
has been president since 1973.
Julius D. Cronin, chairm an, has
announced th a t he will nom inate
Jam es L. Rabe to succeed Mr.
G rady as president. Mr. Rabe has
been w ith the bank 11 years.

* Management Conference, Legislative Dinner in Kearney

LEFT—Participating in the Area Legislative dinner which was held in conjunction with the Bank Management Conference were: NBA
General Counsel Bill Brandt; NBA President Skip Hove; Bank Management Conference Chairman Chuck Leffler; Director of Banking Roger
Beverage, and NBA Executive Vice President Stan Matzke, Jr. RIGHT—Other conference participants included: NBA Risk Manager Steve
McKelvey; Ken Ward, v.p., Cornhusker Bk., Lincoln, and John Miller, exec, v.p., NETS.

H A R LE S R. Leffler, chairman,
Sioux N ational Bank, H arrison,
was chairm an of the recent NBA
Bank M anagem ent Conference in
Kearney. W illiam F. S taats, profes­
sor of banking, Louisiana S tate Uni­
versity, stated, “ It will not be the
size of the bank, but rath er the alert­
ness of bank m anagem ent to the
changes th a t will determ ine the fu­
ture success of the institution. You
cannot adapt if you are not a le rt.’’
He said the com petitive th reat by
money center banks is a m atter of
concern but, ultim ately, the m arket
will determ ine which bank succeeds



William Staats, professor of banking,
ouisiana State University, makes a point
during his presentation.
Federal Reserve Bank of St. Louis

and he feels the nod goes to the local
com m unity bank.
William P. Johnson, prom inent
Denver attorney, discussed “ In ­
creasing P ro fits” through m ergers,
acquisitions and expansions. Mr.
Johnson is one of the n atio n ’s m ost
experienced attorneys in one bank
holding company form ation.
How to improve profits through
“ Com m unity Involvem ent” was de­
scribed by Glen Lemon, chairm an
and CEO of F irst B ank & T rust Co.
in Booker, Tex. His bank has had
phenomenal grow th by developing
local business as he described.
N orthw estern Banker, January, 1985



Three officer prom otions were re­
cently announced a t Norwest Bank
O m aha. T hey
a re :
W illia m
D ew h u rst
vice p resid e n t,
a n d M ary C.
Kalil and Bonnie
S k a r t v e d t to
personal banking
Mr. D ew hurst
graduated from
C reighton Uni-

the 29th & “ O ” S treet facility in
1980, and was made assista n t m an­
ager a t 96th & “ L ” S treet in 1982.
In 1983 she was prom oted to per­
sonal banking officer, and tra n s­
ferred to Norwest B ank Omaha at
20th & Farnam in October where she
m ost recently was a personal bank­
ing officer.
Ms. Kalil began her banking ca­
reer as a teller in 1966 and continued
until 1970. In 1971 she joined Nor­
w est Bank Om aha South and served
as a teller, in new accounts and loan
processing. In October of 1984, she
transferred to Norwest B ank Omaha
a t 20th & Farnam where she m ost
recently was a personal banking offi­



versity w ith a bachelor of science in
business adm inistration in 1978. He
began working a t N orwest Bank in
the bank card division in 1979. He
was prom oted to correspondent
banking officer in 1982 and second
vice president of the financial insti­
tutions group in 1983. His new title
is vice president in the financial in­
stitu tio n s group and his responsibil­
ity area is w estern Iowa, Lincoln
and Omaha.
Ms. S kartvedt has a to tal of 19
y e a r’s ban k in g experience, and
sta rte d working for Norwest B ank
Om aha South in 1980 as an agricul­
ture loan departm ent adm inistrative
assistan t. She became m anager of

N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis



Packers National Bank has re­
cently announced the following addi­
tions to its staff:
Lon J. Canaday,
a s s i s t a n t vice
president, com­
m erc ia l lo an s;
Gerry Schmidt,
m arketing offi­
cer, and Allan R.
Roth, bond in­
vestm ent officer.
Mr. Canaday
joined Packers
with five years previous banking ex­
perience from two K ansas City
banks. He graduated from the Uni­
versity of N ebraska in Lincoln in
1977, w ith a degree in business ad­
m inistration.
Mr. Schm idt will prim arily be re­
sponsible for the b a n k ’s calling pro­
gram and generating new business

for the bank. He has several years
prior financial experience and a t­
tended th e Colorado G ra d u a # 1
School of Banking.
Previously with a Grand Island
bank for over 1 1 years, Mr. Roth is a
graduate of W ayne S tate College
with a degree in business adm inis­
* * *
Dallas P. Hogan has been nam #l
vice president and tru s t officer for
Southw est Bank
& T rust, Omaha,
as announced by
Perry Francis,
M r. H o g a n
joins the bank
from Iowa City,
Iowa, where he
held a sim ilar po­
sition with the
F irs t N a tio n a l
Bank. While in Iowa City, Mr.
Hogan had overall responsibility f #
employee benefit plans and probate
estate operations. He also had ac­
count adm inistration responsibili­
ties for tru s t accounts and was re­
sponsible for updating the depa^m ents accounting system twice in
the p ast ten years.
* * *

Two Om aha banks, in which Mar­
vin A. Schmid, chairm an of South­
west B ank of Omaha, has financial
interests, have been sold. According!
to Perry S. Francis, president of
Southw est B ank of Omaha, South­
west Ban Corp., the b a n k ’s holding
company, has signed a purchase
agreem ent w ith a K ansas City gropgi
headed by Charles A. Garney. Mr.
Garney, head of Garney Holding
Co., is chairm an of SBT Holding Co.
If regulatory approval is received,
Mr. G arney would become chairm an
of Southw est Bank. Mark R. Simp­
son, secretary of SBT and a bank


Don Ostrand

Ralph Peterson

Jim Flodine

Fred Kuehl

Gerry Tomka

Tom Jensen



CORRESPONDENT banking can be confusing, frustrating,
time-consuming. Not so at First National Bank of Omaha.
Just call to get the answers from one of our six experienced
correspondent bankers. Six men with the very latest
financial technology at their fingertips dispensing profession­
al, dependable, confidential service.
So call us for the answers to your correspondent
banking questions — on electronic data
processing, cash letter processing, overlines,
fed-fund transactions and more.
In Nebraska, call 1-800-642-9907. Outside
Nebraska, call 1-800-228-9533. You'll g e t the
answers from us, the answer men.
Federal Reserve Bank of St. Louis

first national bank
of omaha
Member FDIC
N orthw estern Banker, January, 1985


N e b ra s k a N e w s

consultant, would become a director
of Southw est Bank. George E. Kar­
lin, treasurer of SBT, and executive
vice president of Centerre B ank in
K ansas City, would leave his post a t
Centerre early in 1985 to become
chief executive officer and a director
of Southw est Bank.
Mr. Francis would become vice
chairm an and Mr. Schmid would be­
come honorary chairman.
A group of investors, led by K an­
sas City attorney James Tierney,
and Robert McKee, a former K ansas
City resident who lives in Phoenix,
Arizonia, has purchased the R alston
Bank. A purchase price was not dis­
* * *
Monte Anthony has joined The
Com m unity B ank Om aha as busi­
n e s s d e v e lo p ­
m ent officer, ac­
cording to Leon
E. Evans, Jr.,
Mr. A nthony
worked in real
estate sales in
Lincoln for two
years before join­
ing All S tate In­
su ra n c e . M o st
recently he served as a financial
m a rk e tin g r e p r e s e n ta tiv e w ith
A m erican C h arter S avings and
Mr. A nthony played football for

the U niversity of N ebraska and was
drafted by the Baltim ore Colts in
1978. He played w ith the Colts for
two years until a back injury ended
his professional football career.



Irvine O. Hockaday, Jr., executive
vice president of H allm ark Cards,
Inc., K ansas City, has been ap­
pointed chairm an of the Federal Re­
serve Bank of K ansas City.
Robert G. Lueder, chairm an of
Lueder C onstruction Co. of Omaha,
has been appointed a director of the
Federal Reserve B ank of K ansas
City, and has been designated de­
p uty chairm an of the board.
* * *

Harold Walton, president of Norwest Bank Omaha, W est, has an­
nounced the pro­
m otion of three
persons. James
K. Sterling to
vice p re s id e n t
and m anager of
th e
b u s in e s s
banking dep art­
ment; Patrick J.
M cPherson to
c a sh ie r,
Nancy Bloom to
facility m anager.
Mr. Sterling began working at
Norwest Bank in 1970 as a night



national bank



24th & “L”

Omaha, Nebraska 68107
Member FDIC

estern Banker, January, 1985
Digitized N
Federal Reserve Bank of St. Louis



teller. He was prom oted to loan of­
ficer in 1973, a ssista n t m anager of
the installm ent loan d e p a rtm e n ta l
1977, and m anager of the install­
m ent loan departm ent in 1979. In
1980 he was prom oted to vice presi­
dent and m anager of the retail lend­
ing departm ent. He will now h e f t
the business banking departm ent,
which is located a t 3540 South 84th
Mr. M cPherson graduated from
Creighton U niversity in 1968. fte
began working a t Center Bank in
1967 and has worked in nearly every
departm ent. Presently he is vice
president/retail sector m anager and
is responsible for all the retail p ^ sonal bankers, lenders, and facilities
in addition to being cashier.
Ms. Bloom began working at Nor­
west Bank Omaha W est in 1973 in
the bookkeeping departm ent. S *
has also worked in custom er service,
as a teller, teller supervisor and per­
sonal banker. She was assistan t
facility m anager a t the 45th A
Center Street location for four y e a * .
She will now m anage the facility at
14666 W est Center Road.
* * *
George S. Akers has been n a m ^
director of branch operations for
F irsT ie r M o rt­
g a g e Co., an
O m a h a -b a se d
m ortgage bank­
ing firm.
M r.
A k e rs
joined FirsT ier
M o r tg a g e
1980 as loan ad­
m inistration su­
p e rv is o r
O m a h a . S ince
1983 he had been m anager of t]p
com pany’s branch office in Okla­
homa City, Oklahoma. He now is
based in Omaha.

(Turn to page 60, please)


•How to Improve Profit . . .
(Continued from page 19)
loans. Also, restudy and reanalyze all p a st due loans
and loans being renewed or extended. M onitor loan col­
lateral regularly and reprice a t least yearly, bu t more
often as necessary. Apply loan review techniques and
standards coordinated w ith those of your exam iners to
avoid surprises. Move carefully in asserting your
rights as lenders and do not violate your creditors’
lig h ts. Know the im pact of loan losses on your bottom
Investment Portfolio: Settle on an investm ent pro­
gram approved by your board of directors. Follow the
plan carefully! Know the composition of your m ajor
lab ilitie s and com pute your b a n k ’s net interest m ar­
gins, and m arginal cost of funds. Use this to guide
your loaning and investm ent functions. D ocum ent the
m atu rity schedule of your liabilities and stru ctu re your
assets to accom m odate your need for funds to m eet
t#em . A ttra c t interest-rate sensitive liabilities by
adapting interest rates responsive to financial m arket
conditions. Correlate the relationship between your
various short-term assets against the m atu rity sche­
dule of your short-term liabilities and study the effect
£®d im plications of a m ism atch. Gap m anagem ent is
neither an a rt nor a science. A conservative but
enlightened approach will serve you well. Who bragged
m ost recently th a t they could m anage the gap in the
•Personnel: M anage your m ost im portant and sensi­
tive asset w ith consum m ate skill. Train employees
diligently and respect their judgm ent in their posi­
tions. D elegate m anagem ent responsibility and insist
upon high productivity. M ake hot-shot salesm en of

them and rew ard their performance. Your banking en­
vironm ent during 1985 will seem much more rew ard­

Iowa Bankers Assn.
S tate C entral Bank
Keokuk, la.
E HAVE ju s t asked our front line people to
m ake a list of services we have been perform ing
w ithout charge. We then price these services, s ta rt
charging, and when the custom er asks “ How come?”
our reply has been, “ Does your company give ‘w idgets’
aw ay?”
In another area, we found th a t a portion of our cash
letter was about three hours late for the RCPC in Illi­
nois. By sp litting out Illinois item s and catching an
early RCPC plane from Cedar Rapids, we were able to
m ake the RCPC cutoff, th u s helping our collectibility.
Also, we m ade a change from the Fed to our correspon­
dent and picked up 10 percentage points. You m ight
w ant to try that.
A th ird item we would suggest is “ review the loan
portfolio” and head off those lines which are deteriora­
ting. Talk w ith your custom ers. Shrink th a t operation
and s ta rt planning in advance of m atu rity so you are
prepared for “ I can ’t m ake my p aym ent!” Take the
lines one a t a tim e and cooperate w ith all lenders in the
credit in the work out.

A/L Management . . .
(Continued from page 26)

tageous to replace the 30-month CDs rolling off.
If you projected a rising rate scenario, it m ay be
advantageous for your bank, in the long run, to
0 “rollover” the 30-month instrum ents as they
come due. This allows you to “lock-in” the lower
rate existing in early 1984. If you project a declin­
ing interest-rate scenario, you m ay w ant to push
money m arkets or six-m onth CDs, i.e., short-term
0 deposits. As we m entioned earlier, this is the
reason why a t least one of your b a n k ’s m arketing
officers should be on the ALCO so th a t he/she can
direct m arketing efforts tow ard the new in stru ­
m ents. Your m arketing efforts also will depend
0 on the am ount of additional CDs you need to
issue in light of your grow th projections.


Obviously, some of your custom ers will simply
w ithdraw their funds. O thers m ay w ant a different m atu rity or variable-rate money m arket CD.
Some will w ant a deposit instrum ent contrary to
your strategy. However, your m arketing efforts
should be directed to prom oting the instrum ent
m ost advantageous a t this time, and to the extent
As you can see, ALM is a m anagem ent tool for
Federal Reserve Bank of St. Louis

designing and im plem enting specific strategies
and actions to a tta in your b a n k ’s goals.

Our bank is in a sta g n a n t non-growing area of the
country. G row th is out of the question. Given this
situation, do I need to employ strategic planning?


Yes. Remember, grow th is only one im portant
factor in practicing ALM. F uture interest rates
and asset/liability mix also m ust be considered.
In addition, non-interest income and expense ac­
counts need to be examined. If you are in a no­
grow th situation, step back and look at other
avenues of ALM strategy.


I understand th a t if my bank is in a “zero-repricing g a p ” position, I ’ve minimized interest-rate
risk. W hy do I need to do anything more?


In terest m argins are declining for m ost banks. If
you throw in deregulation and increased com peti­
tion, we m ust m anage our banks more effectively.
We are not saying ALM is a cure-all for the chal­
lenges facing us today, but ALM, practiced p ru ­
dently, can help our profitability.
Specifically, a positive or negative gap position
can improve profitability given the rig h t move­
m ents of interest rates. If you can change to a
desirable gap position, then move in th a t direc­
tion. However, m aintain a back-up strateg y if
rates move in a direction contrary to your original
N orthw estern Banker, January, 1985

Mike Sorensen has been prom oted
to m arketing officer. He first joined
NBC in the check processing dep art­
m ent then transferred to NBC/CSC
as a m arketing representative in
1979. A fter a year away from CSft,
Mr. Sorensen rejoined CSC in M arch
of 1984 to resum e his duties as a
m arketing representative.
Lonnie Lindbeck has been pro­
m oted to custom er services offic#.
He joined the technical support staff
of CSC in 1983.
(Continued from page 58)
Donald R. Stading recently was
elected vice president of the National
B ank of Com­
M r. S ta d in g
joined NBC this
sum m er as staff
counsel to work
w ith the lending
d i v is io n s . H e
previously had
served as associ­
ate legal counsel
for B anker’s Life



a ssista n t vice president. He joined
the bank as a m anagem ent trainee in
1979 and has held the positions of
operations analyst and assistan t
m anager of check processing. Prior
to this prom otion he was custom er
service officer.
Gordon Shupe was prom oted to
a ssista n t vice president. He joined
the bank in 1975 as sytem s docu­
m entation m anager of the inform a­
tion m anagem ent division. He has
been in the electronic banking de­
p artm en t since 1978 and has been an
electronic banking officer since July,
Dean Batie was elected farm and
ranch officer. He joined the bank in
April, 1983, as a farm and ranch
m anager for the K earney area. He
previously had been a beef process­
ing m anager w ith Cornland Beef In­
Tim Hull was elected check pro­
cessing officer. He joined in June,
1981, as a m anagem ent trainee.
Since July, 1982, he has been assis­
ta n t m anager of the check process­
ing departm ent.



before coming to NBC. Mr. Stading
is a 1970 graduate from the Univer­
sity of N ebraska Law School.
O ther officer elections and prom o­
tions for N ational B ank of Com­
merce were announced by the board
of directors.
Craig Champion was prom oted to
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis



A t N ational BanK of Commerce
Com puter Services Corporation, the
following individuals were recog­
nized by promotions:
Dan Coughlin has been prom oted
to assistant vice president. He joined
NBC Com puter Services Corpora­
tion in 1980 as a program m er/analyst I. L ater he transferred to techni­
cal specialist and is currently m an­
ager of the technical support area.
Rob Spackman has been pro­
m oted to a ssista n t vice president.
He joined the conversion staff of
NBC/CSC in 1980. Prior to th a t
time, he worked for the National
Bank of Commerce in Bookkeeping
and as a vault teller.


Thomas M. Troester has joined
FirsTier Leasing Co. as a second
vice p resid e n t,
concentrating in
commercial and
in d u stria l leas­
A graduate of
th e U n iv e rsity
of N e b r a s k a L in c o ln ,
M r.
Troester form er­
ly was an assis­
ta n t vice presi­
dent in commercial lending for
Texas Commerce B ank in Houston.

Lending School Graduate #
Don W eiss, vice president of com­
mercial loans a t F irst N ational Bank
and T ru st Company of N orth Platte,
recently graduated from the N a­
tional Commercial Lending School.
The school was held a t the Univer­
sity of Oklahoma w ith 170 class
m em bers from 38 states.

Neligh Addition Announced
G ary G underson has joined the
staff at The N ational B ank of Neligh
as a loan officer trainee.
Prior to joining the Neligh b a n ^
Mr. G underson was w ith The DeLay
F irst N ational Bank & T rust Co. of

Nebraska Savings to Buy *
Midwest Federal Wayne Off.
N ebraska Savings has announced
its intention to buy the W ayne office
of M idw est Federal Savings & Lo^#
A ssociation of N ebraska City. An
application has been filed w ith the
Federal Home Loan B ank Board of
Topeka. W hen complete, it will
bring to 26 the num ber of Nebrasl^i
Savings’ branches in the state.


The Experienced Professionals
of First National Lincoln.

Ready to meet your investment needs.
Put your trust in the Municipal and Government Bond specialists
of The First Team. Fast. Knowledgeable. Experienced. First
National Lincoln — Nebraska’s most active dealer bank.

The F irs t Team.
A FirsTier Company

13th & M Streets • P.O. Box 81008
Lincoln, NE 68501 • Phone (800) 742-7376
Member, F.D.I.C.
Federal Reserve Bank of St. Louis

N orthw estern Banker, January, 1985


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(515) 245-5288

(515) 245-2464

orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

years. F.E. Skola, Jr. joined the
bank in 1929 and became president
in 1942, a position he served in until
1977, when he resigned and was ap­
pointed chairm an. He was succeeded
as president by his son, J a n M.

Ames President Named,
Two Others Promoted

W. Logan, pres., Keokuk
N. M ilner, exec, v.p ., Des M oines

Agenda Set for Mid-Winter
Management Conference in Keystone
H E IOW A Bankers Association
is sponsoring the F ourth Annual
M id-W inter M anagem ent Confer­
ence F ebruary 27 - M arch 1 a t Key# n e , Colorado. Three days of acti­
vities have been planned for bank­
ers, spouses and families, providing
the perfect com bination of educa­
tional program s and the opportunity
îO s, directors and senior m an­
agers to interact w ith each other
while enjoying the 32 runs a t Key­
stone M ountain. A ten tativ e agenda
W ednesday, F ebruary 27


G et-acquainted reception.
W elcom e—IB A P re sid e n t
Bill Logan.
L e g isla tiv e U p d a te —-IB A
E xecutive D irector Randy
Dinner on own.
Thursday, F ebruary 28



Social hour.
“ B anking—W here Do We
Go From H ere?’’ presented
by a panel of bankers and
m oderated by R andy Steig.
Special program for children
and teens up to age 18.
Friday M arch 1

lations to E d Boyken, bank chair­
man, for his 50 years of service to
the Titonka Savings Bank.
Mr. Boyken, who worked for the
bank several years while attending
high school, joined the bank full­
tim e in 1934 after atten d in g L uther
College. His first responsibilities in­
cluded bookkeeping and teller work.
In addition to his service to the
bank, Mr. Boyken has been a long­
tim e active m em ber in the Titonka
comm unity.

Kalona Bank Celebrates
85th, F.E. Skola Honored
On December 13, Farm ers Sav­
ings Bank, Kalona, held an open
house in honor of its 85th anniver­
sary. In addition, the bank cele­
brated the 55 year career of F.E.
Skola, Jr., chairm an of the bank.
Farm ers Savings Bank opened Oc­
tober 2, 1899, and for all bu t three of
its 85 years, a mem ber of the Skola
family has been employed there.
F.E. Skola, Sr. joined the bank in
1903 and rem ained w ith the bank 31

Daniel L. Krieger has been named
president of F irst N ational Bank,
Ames. He suc­
ceeds Robert W.
Stafford, presi­
dent since 1967
a n d c h a ir m a n
since 1978. Mr.
S t a f f o r d w ill
c o n ti n u e
chairm an of the
b a n k , a n d as
p r e s id e n t a n d
chairm an of the
b an k ’s holding company.
Previously executive vice presi­
dent and tru s t officer, Mr. Krieger
has been w ith the bank 25 years,
having joined the staff in 1959 fol­
lowing graduation from Iowa S tate
U niversity. He has been a mem ber
of the board since 1978 and is also
vice president and a director of
Ames N ational Corporation.
Also announced was the prom o­
tion of Steven J. M cLaughlin to as­
sista n t vice president and tru s t offi­
cer and Tim othy M. Fitzgibbon to
Mr. M cLaughlin joined the bank
in 1974 and is responsible for tru s t
departm ent operations. Mr. F itzgib­
bon is a 1983 graduate of Iowa S tate
U niversity in business adm inistra­
tion and political science.

Construction Underway on Mall Office


Social Hour.
“ P rofitability M anagem ent
in the B ank’’—Jam es L.
G re e n , c h a irm a n , B a n k
M a n a g e m e n t R e s o u rc e s ,
Inc., D ecatur, Ga.

Titonka Open House Held
A t T itonka Savings B ank’s an­
nual “ T hank You C ustom ers’’ open
h#as,e held December 7, more th an
600 visitors offered their congratu
Federal Reserve Bank of St. Louis

CONSTRUCTION has begun on a new Farmers State Bank office in the Collins Road
Square Mall between Marion and Cedar Rapids. According to FSB President Clair J. Lensing and Board Chairman Morris F. Neighbor the 1,800 sq. ft. office, designed by Olson,
Popa, Novak, Architects, P.C., will provide customers with full service banking including a
drive up facility. The new Farmers State Bank office is expected to be open by January 1.
Farmers State Bank has its main office in downtown Marion with branch offices in Alburnett, Hiawatha and Lindale Mall, Cedar Rapids.
N orthw estern Banker, January, 1985


Io w a N e w s

Barbara Marcus (left center), pres, of IYBA and cash., Maquoketa State Bk., is pictured with Dr. Emerson Hazlett (left), dir., joint council of
econ. educ., Univ. of Kansas, and Pete Adrian, state coord., Young Bank Officers of Kansas, and a.v.p., First Natl. Bk. of Lawrence, Kan.
RIGHT—Attorney General Tom Miller (center), talks with Don Ellis (left), cash., Solon State Bk., and Pete Adrian during break.

IYBA Sponsors Education Workshop
CONSUM ER Education W ork­
shop, sponsored by the Iowa
Young Bankers A ssociation was
held November 29 in Des Moines.
B arbara M arcus, cashier of M aquo­
keta S tate B ank and president of the
IYBA, welcomed bankers from
across the sta te to the workshop.
M arva M cCarty, education m an­
ager/A IB coordinator for the Iowa
Bankers Association, sta rte d the
m orning off w ith a slide presenta­
tion on PE P , Personal Economic
Program . Dr. Em erson H azlett, di­
rector of the joint council on eco­
nomic education, U niversity of K an­
sas, followed M arva w ith his over­
view on why bankers should be in­
volved in economic education for
consumers and the successful pro­
gram s currently being conducted in
the K ansas school system s.
A ttorney General Tom Miller
spent some tim e w ith the group tell­
ing about The Iowa Young Con­
sum er Project being generated out
of his office. This program is sche­
duled to begin as a pilot project in
Polk County schools in January. Ac­
cording to Mr. Miller, the Iowa
Young Consumer Project compli­
m ents PEP.
Following break, B ert Hanson,
business instructor of Indianola
H igh School, gave the group some
helpful tips and insights to dealing
w ith teachers and students. He
stressed working w ith teachers to
ensure th a t one’s presentation is rel­
evant to the class, and th a t it
achieves certain goals agreed on by
both you and the teacher.
The m orning session w rapped up
with Pete Adrian, sta te coordinator,
Young Bank Officers of Kansas, and
a ssista n t vice president, F irst N a­
tional Bank of Lawrence, Kansas,
N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

w ith his talk on “M aking it W ork,’’
and a report from Michelle Thom p­
son, research associate, American
Bankers Association.
Following lunch, the group p a rti­
cipated in roundtable discussions on
im plem entation.

BANCADO Users Group
Meets in Des Moines
The th ird annual BANCADO
User Group m eeting was held re­
cently a t the Des Moines H y att.
Sixty-two bankers from a dozen
sta te s (as far away as Colorado,
Texas, M ichigan, and Virginia)
spent the m orning discussing opera­
tional procedures under the direc­
tion of Jim Jorgensen, president of
Central S tate B ank in S tate Center,
la. Mr. Jorgensen said “ There is so
much inform ation available from
this system th a t it is good to meet
and find out how other users are ta k ­
ing advantage of it.’’
In the afternoon, Leonard W al­
dorf and Ron Dorrell of W aldorf
Com puter System s in W est Des
Moines presented a short review of
program enhancem ents m ade avail­
able during the p ast year and a look
ahead to changes in the coming year.
In a departure from offering only
bank software sales, Mr. W aldorf
announced th a t his firm will offer
the preparation of 1099 megnetic
tapes as a service so th a t user banks
will not have to purchase tape
drives. A question-and-answer ses­
sion closed the m eeting with repre­
sentatives from W aldorf, D ata B usi­
ness E quipm ent of Des Moines, and
W illmar D ata System s of W illmar
M innesota fielding questions.
The evening before the meeting,
an open house was held a t W aldorf

Com puter S ystem s’ new offices a t
119 19th Street in W est Des Moines.
D uring the evening, visitors viewed
the new BANCADO M ortgage Lc^ti
System operating on CONTEL
CADO’s ATS-16 16 Bit computer.
W aldorf Com puter System s, Inc.
provides BANCADO banking soft­
ware through CONTEL CADO aHi
BANCADO d istributors nationwide
and internationally through CON­
TEL CADO. The m odular software,
originally developed in 1977, in­
cludes capabilities for all types ^ f
deposit account and loan processing
as well as CIF, general ledger, and
bond accounting.

IBA Commercial Lending
School — Feb. 24-March 2
The Iowa Bankers Association
Commercial Lending School is sche­
duled to be held February 24 through
M arch 2 a t Iowa S tate U niversity in
The curriculum for the Iowa Com­
mercial Lending School was d e v #
oped in cooperation w ith the Am eri­
can Bankers Association, industry
experts from throughout the coun­
try, ABA staff members, the School
A dvisory Board and IBA staff m e#bers. Each course is an integral p a rt
of the entire program place to pro­
vide continuity through the entire
week and m eet the school objectives.
The IBA Commercial L e n d ii^
School (200 level) also serves as a
preparatory school for the more ad­
vanced Commercial Lending School
(300 level).
Tuition is $650, which includes
room, meals, casebook and study
m aterials. The entire fee m ust ac­
company the application. For more
inform ation or registration contact
Judi Carber, IBA, 430 L ib e r*
Bldg., Des Moines, Iowa 50308.


W hen You Build
O r Rem odel Your Bank,
W ho R eally B enefits?
0 Your Local Excavator


Your Local Lumber Yard

0 Your Local Concrete Supplier 0

Your Local Carpet Store

O Your Local Mason


Your Local Hardware Store

0 Your Local Electrician

0 Your Local Motels

0 T o « r Local Plumber

0 Your Local Restaurants

B*Your Local Heating Supplier

0 * Your Local Drapery Shops

EET'Your Local Paint Store

ETYour Local Appliance Store

0 Your Local Painter

Iff Your Local Landscaper

0 Your Local Roofer

0 Your Local Newspaper

0 Your Local Air Conditioning

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

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

Federal Reserve Bank of St. Louis

4015 Alexandra Drive
Waterloo, Iowa 50704
Phone 319-234-6641
N orthw estern Banker, January, 1985


Io w a N e w s

Sioux Center Bank Is
Sold to Den Herders

Waterloo Girl Now a Top Paratrooper

Controlling interest of the Hospers Agency Company, a one-bank
holding company th a t owns The
American S tate Bank of Sioux
Center, was purchased November 16
by W. Dale Den H erder and his
father-in-law, Jak e H. Vande Brake.
The sale was made by the Kerm it
W agner estate of Schuyler, Nebr.

H E N Iowa and other m idw est
residents see the United States
A rm y’s prestigious Golden K nights

Karen and Dale Den Herder

The Am erican S tate Bank of
Sioux Center has $70 million in as­
sets, with additional offices in Hospers and Granville. The charter was
moved from H ospers to Sioux Cen­
ter in 1973 and previously was
known as the Hospers Savings
Mr. Den H erder joined the bank
in 1973 as executive vice president
and was elected president in 1977.

Marion Bank Holds Fourth
Annual Copper & Silver Bowl
Over 1,020,000 coins were
counted at Farmers State Bank,
Marion, on December 6, in the
Fourth Annual Copper and Silver
Bowl promotion. Each year, for one
day, FSB buys loose change and
pays premiums and bonuses to the
individuals owning it and bringing it
to the bank’s Marion office. This
year the bank purchased 876,000
pennies, 45,000 nickels, 42,000
dimes, 55,000 quarters and 2,200
various other U.S. coins.
Responding to the promotion
were 235 entrants, primarily from
Linn County, but also from as far as
Strawberry Point and Iowa City.
FSB officials say the purpose of the
promotion is for the fun and excite­
ment it generates and also to assist
estern Banker, January, 1985
Digitized Nfor
Federal Reserve Bank of St. Louis


paratroopers p u ttin g on dem onstra­
tions anytim e during the next three
years, they m ay well be w itnessing
the successful story of a dedicated,
goal-oriented 20-year old W aterloo
young lady nam ed Andrea Gross.
Andrea is the daughter of Mr. and
Mrs. Je rry G ross of W aterloo. H er
father is well-known to m any bank­
ers throughout the sta te as presi­
dent of Kirk Gross Company, the
turn-key specialists in bank design
and construction.
A fter her 1982 graduation from
high school, she enrolled a t the Uni­
versity of N orthern Iowa, but be­
came intrigued w ith A rm y service
when she was given details of the
V eteran’s A dm inistration E duca­
tional Program available through
the Army. Under V A EP, the Army
will pay $5 for every $1 the indivi­
dual pu ts in for four years of college,
based on a three-year enlistm ent.
Not sure of w hat she was really seek­
ing a t th a t tim e from a college edu­
cation, Andrea was soon in the A r­
my and has completed various tra in ­
ing program s a t F ort Dix in New
Jersey, F ort Gordon and F ort Benning in Georgia, and more recently
a t F ort B ragg in N orth Carolina.
She has been trained as a teletype
operator and a paratrooper, with

duties in the field com m unicating
between front-line troops and rear
headquarters. In 1983 she was c#e
of 100 women am ong 6,000 p ara­
troopers who parachuted into Gre­
nada—and the only women in her
particular troop of 60 soldiers.
More recently, she completed#a
two-week added training course for
the HALO (High A ltitude Low
O pening) special forces group,
trained for the purpose of under­
cover work.
Andrea was accepted for the rigo­
rous six-week training required of
paratroopers seeking m em bership in
the Golden K nights parachuting
team. A t the conclusion of t l # t
training, she was accepted for the
Golden K nights, becoming one of
only three women in th a t elite
A lthough her three-year period # f
enlistm ent expires next A ugust, An­
drea has elected to re-enlist as a
Golden K night for another three
years. How does she feel about the
rigorous training she has undHgone? “ I am much more indepen­
dent and sure of m yself,” she told a
W aterloo newspaper interviewer. ‘‘I
have more confidence. I know th a t if
there is som ething I w ant to do,®t
can complete it. And I can succeed.
Yes, the A rm y has given me confi­
dence. W hen I p u t on my uniform, I
stand tall and proud. ’’

partially in keeping the banks coin
inventory supplied. Ordinarily,
banks purchase coins from private
and governmental financial institu­
tions which necessarily require a
processing and/or delivery fee. With
the Copper and Silver Bowl, the fee
is saved and paid to customers in
the form of bonuses and premiums
for their coins. The bank says even
though the cost of the promotion is
higher than paying the fees, it’s well
worth it.
The face value of the coins pur­
chased by the bank in this years
event totaled over $31,000. Awards
totalling $800 were given to promo­
tion entrants in six categories: (1) to
everyone a 10% bonus for pennies
up to $10 per individual, (2) a 10%
premium up to $25 per individual for
the largest collection of each of four
U.S. coin denominations; pennies,
nickels, dimes and quarters, (3) a
10% premium up to $50 for the indi­

vidual bringing in the collection of
combined U.S. coins with the high­
est face value. No individual, how­
ever, could win more than one p£mium.
Winning individual entries were:
108.000 pennies; 15,000 nickels,
4.000 dimes and 9,000 quarters. The
highest individual face value co lla­
tion amounted to more than $3,200.
One sidelight to the promotion
was a collection of old silver U.S.
coins brought in by a gentlemen who
was apparently unaware of its poten­
tial value. When informed of this by
bank officials with a suggestion that
he should contact a reputable ap­
praiser, the man left the bank wiUi
his coins. He returend a short tirre
later with his thanks for he had sold
his $12 worth of coins for $85.
Farmers State Bank tentatively
plans to conduct the 1985 Coppgand Silver Bowl on Wednesda®
December 11th.

in Service.


Mark Sorensen

Assistant Vice President
Ag Lending

Lon Kelling
Ag Lending Rep.

Roma Kroll
sistant Vice President

(L) Max Larson
(R) Jim Anderl
Sr. Vice President

Doug Schmidt
Vice President

• Item Clearance Services to maximize available funds.
• Investment Services to handle Fed Funds, money transfers, security purchases
and sales.

• Loans for a full range of services, including overline and liquidity loans, assistance with your
ag loans, commercial and bank stock loans.

• Credit Card Services for merchants and consumers for both MasterCard (including
MasterCard Gold) and Visa.

Gary Stevenson
™ Vice President
Correspondent Banking

• Data Processing to put you on-line to the Banks of Iowa computers, the area’s most
successful EFT/Instant Access processor.

712- 277-0618

Share our strength in service — the kind of strength you know will be there to help you, now and for years
to come!

See you at the Group I Meeting February S and 9!

First National Bank in
Member FDIC • Sioux City • A ‘BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

N orthw estern Banker, January, 1985

Valley N ational Bank, Des M o in ^ ,
where she held the position of com­
mercial banking officer. Prior to
th a t she worked w ith W est Des
Moines S tate Bank as general mm|9
agem ent trainee.

Center Point Director Named
William R. Bernau, president a ^ l
chairm an of Iowa S tate Bank &
T rust Co., Center Point, has an­
nounced th a t Don R. Cook, retired
farm er and lifetime resident of Cen­
ter Point, has been elected to tfe
b an k ’s board.

Chariton Directors Elected

Marcia A. Montag has joined
B renton Banks, Inc. as in-charge au­
d ito r fo r th e
a u d it division,
where she will be
responsible for
c o n d u c tin g in ­
ternal bank ex­
a m s to m e e t
s t a t e r e q u ir e ­
m ents.
M s. M o n tag
m o st re c e n tly
was w ith Peat,
Marwick, M itchell & Company, and
prior to th a t she was a m athem atics
and accounting in structor a t Iowa
S tate U niversity. She is a certified
public accountant and graduate of
Iowa S tate U niversity w ith a BS de­
gree in M athem atics.
* * *
R. Douglas Fisher, executive vice
president of Hawkeye-Capital Bank
& T rust, announced last m onth the
expansion of the b an k ’s Investor
Center into two branch locations.
Open houses were held during the
week of December 3-7 to prom ote
the new Investor Centers a t 2426
Hubbell Avenue and 5700 Hickman
The innovative Investor Center
concept focuses on non-traditional
banking investm ents like treasury
notes and bills, municipal bonds, dis­
count brokerage services, and taxfree checking accounts. The concept
is to make these investm ent oppor­
tunities more readily available to
bank custom ers as a normal course
of business.
The Hawkeye-Capital Investor
Centers feature a distinct physical
estern Banker, January, 1985
Digitized Nfor
Federal Reserve Bank of St. Louis

look including its own logo, elec­
tronic m essage center, rate board,
and brochure rack. The main bank
location of Hawkeye-Capital, at
E a st F ifth and Locust, has been op­
erating the Investor Center since
A ugust 1983. The Investor Center is
a registered tradem ark and copy­
right by Hawkeye Bancorporation.
* * *
Robert G. Millen, president and
chief executive officer. U nited Cen­
tral B ank of Des
M o in es, N .A .,
has announced
the appointm ent
Kanak as com­
mercial loan of­
ficer in the m et­
ro p o lita n com ­
mercial services
M s. K a n a k
joined U nited C entral Bank from

N ational Bank & T ru st Compaq^,
Chariton, recently announced the re­
tirem ent of Ja y B. E vans from the
board due to ill health. M. Dean
Arnold has been elected to replace
Mr. E vans on the board. Mr. Arnq^l
is a long-time area farmer.
Also announced was the election
of Dr. R. V aughn Lewis to the
board. Dr. Lewis has operated a pri­
vate veterinarian practice in Cha#ton since 1945.

IBIS Pension Seminar Set
Iowa Bankers Insurance and S ^ vices, Inc. has announced an upcom ­
ing Pension Plan Sem inar to be held
a t three locations on three different
dates: Ja n u ary 16 a t the H ighlander
Inn, Iowa City; Ja n u ary 30 a t t ^
A irport H ilton Inn, Des Moines, and
February 6 at Carrollton Inn, Carroll.
R egistration fee of $15 includes
lunch. The sem inar will run frqjfi
10:30 a.m. until after 3:00 p.m. For
further inform ation contact the
IB IS headquarters in Des Moines.

Hawkeye, UCB Cancel Merger Talks
HE proposed m erger of United
Central Bancshares, Inc. into
Hawkeye Bancorporation, both Des
Moines based m ulti-bank holding
companies, has been term inated by
m utual consent of the board of direc­
tors of both companies, according to
a joint announcem ent made by Paul
Dunlap, president and chief execu­
tive officer of Hawkeye, and Ken­
neth M. Myers, chairm an of the
board and chief executive officer of
UCB. The proposed m erger was first
announced on Ju ly 20, 1984.
The reason for the term ination of


the merger, they said, is Iow a’s con­
tin u in g d e te rio ra tin g econom y.
Both organizations have suffered im
creases in loan losses and e a r n in g
deteriorating during 1984. M anage­
m ent of both companies have con­
cluded th a t it is in the best interest
of each organization to rem ain in d ^
pendent, and to devote its full re­
sources to a solution of the economic
problems in the m arket areas served.
Mr. M yers further announced
th a t UCB will proceed with the F i r ^
In te rsta te franchise, with Ju ly 1 as
a proposed effective date.

William Duma
Vice President
Iowa Correspondent Services

Michael Austin
Vice President and Manager
Iowa Correspondent Services

(515) 245-7253

(515) 245-7251

William Mullins
Assistant Vice President
Iowa Correspondent Services

Kenneth Danilson
Vice President
Iowa Correspondent Services

(515) 245-7157

(515) 245-7348

Diane Grotenhuis
Iowa Correspondent Services

Margo Foxhoven
Operations Assistant
Iowa Correspondent Services

(515) 245-7353

(515) 245-7019

We’re positioning ourselves for the challenge ahead. We’re ready and our future
commitment continues to be with you, one of the over 200 correspondent banks we
serve throughout Iowa.
Stay with the leader in correspondent services

UlDG uni I . aa

Federal Reserve Bank of St. Louis




Io w a N e w s

’85 EFT Conference Set for February
H E ITS 1985 E F T Conference
is scheduled for Feb. 12-13 and
promises to be b etter than ever. Lo­
cation for this y e a r’s conference is
the M arriott, Des Moines.
Som ething new a t this y e a r’s con­
ference will be Peer Group Sessions.
A t 1:00 and 2:00 p.m. on day two of
the conference, attendees will be
able to gather w ith other attendees,
a representative from a p articip at­
ing financial in stitu tio n chosen to
lead the discussion and an ITS staff
member, to share ideas and ask
Choices for the 1:00 p.m. session
are M arketing, D ata Processing
Center (DPC) Backup and Opera­
tions. Groups will m eet a t 2:00 p.m.
on POS/Scrip Issuance Terminals,
Technical and Strip File A uthoriza­
Day one of the conference will
consist of four program s. Three of
the program s will include two 25m inute presentations each hour,
w ith 10-minute breaks in between.
Program four will consist of 50-min­
ute presentations, also w ith breaks.
Open tim e has also been scheduled

in so th a t attendees will be able to
visit the E xhibit Hall.
Am ong the m any topics to be
covered are an update on N ationet,
an introduction to home banking
and explanations of the AT&T di­
vestiture and E F T legislation. There
also will be speakers discussing m ar­
keting, how to increase ATM usage
and methodologies for ATM place­
m ent.
P re se n ta tio n s involving a u to ­
m ated clearing house news include
one on the Enhanced A utom ated
C l e a r i n g H o u s e M e c h a n is m
(EACHM) and an explanation of re­
c e n t c h a n g e s in th e F e d e ra l
R eserve’s handling of ACH item s
and update on Federal Reserve acti­
Rounding out the first d a y ’s
topics are financial technology
analysis, POS/fuel pum p update,
ATM security, and 50-minute pre­
sentations on the future of POS, er­
ror resolution and ATM costs.
“ Com parison of Iowa and the
U.S. R egarding E F T ,’’ will begin the
second day. Following is a m otiva­
tional address, “ How to Build an ‘A

Committed to
making your
bank stand
apart from the

Team, ’’ and an address about ime
world trade center. The peer group
sessions follow lunch and round out
the program .

Elma Bank Is Sold


Controlling interest in Peoples
Savings B ank of Elm a has been sold
to R & J Finan­
cial Corporation
by the estate of
the late A1 Say­
lo r.
C lin to n
R ic h a r d s a n d
Joe Johnson are
the principals of
R & J.
Mr. Richards
has been elected
chairm an of Peo­
ples Savings and Mr. Johnson has
been elected president and m anag­
ing officer.
Mr. Johnson also announced t h ^
Bruce J. Weigel was prom oted from
a ssista n t cashier to cashier.
Mr. Johnson formerly was cashier
a t Farm ers S tate B ank in Plainfield
where he sta rte d his banking careqp
20 years ago. He is a graduate of the
Iowa Bankers A g Credit School a t
M rs. Helen Saylor will continue
living in H am pton where she jp
chairm an of F irst N ational Bank.

Promoted in Sioux City
Jacquelyn J. K o tt has been p ra
m oted to real e state loan officer m
F ir s t N a tio n a l
Bank in Sioux
City. H er new re­
sponsibilities in­
clude su p erv is­
ing the opera­
tions of the real
estate loan de­
p a rtm e n t, an d
processing loan
requests for the
purchase or con­
struction of residential property.
She joined the bank in 1978 an^
m ost recently was m ortgage loan

Joins Hills Bank Staff
Thom as L. Kriz has joined the
staff of Hills B ank and T ru st Com­
pany as a general bank officer, ac­
cording to John Hughes, president.
He attended the U niversity o ^
Iowa and joined his father a t B ob’s
Radio and TV in 1968.
estern Banker, January, 1985
DigitizedN orthw
Federal Reserve Bank of St. Louis


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Even companies
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Io w a N e w s

PICTURED at speakers table for Annual Iowa Business Trends meeting were: Frank L. Nageotte, pres. & chief oper. off., The G reyhoi^d
Corp., Phoenix: Nicocles L. Michas, economist, New York; William J. Ryan, pres. & ceo, Palmer Communications, Inc., Des Moines; Geo^e
Milligan, pres., and E.G. “ Bud” Precht, chmn. & ceo, both with Norwest Bank Des Moines; Iowa Gov. Terry Branstad; Carol Brookins, pres.,
World Perspectives, Inc., Washington, D.C., and Harry C. Benson, Norwest Corporation pres. Region IV, Des Moines.

At Norwest Des Moines Conference —

1985 Viewed with Mixed Trends
ROW TH in G N P was forecast
to be 3% for 1985, w ith an infla­
tion rate of 6 to 61/2%, by Nicocles L.
M ichas, econom ist w ith Rosenkrantz, E hrenkrantz, Lyon & Ross,
Inc., New York, in his luncheon ad­
dress to more than 600 business and
bank executives attending the 26th
A nnual Iowa B usiness Trends M eet­
ing hosted by Norwest Bank Des
Moines, N.A.
He said, “ Ever since the begin­
ning of the current expansion we felt
it would be less th an three years and
the ensuing recession would be m ost
severe. A djustm ents have been se­
vere—w itness the m idw est ag situ a ­
tion. D isinflation was painful. I con­
tinue to believe the international cri­
sis could culm inate in the next 12
m onths. W e’re now 25 m onths into
recovery. The economy has been
stable since July; a recession is not
starting, b u t ju s t a pause until
He feels the dollar is overvalued
by 15% and th a t as foreign deposits
are w ithdraw n and foreign invest­
m ents in the U.S. are dumped, they
could “ pull the rug from under the
dollar. The U.S. will tu rn into a deb­
tor nation my mid ’85—a nation
hooked on short-term investm ents.
All this will deplete the dollar and
cause inflation to move up. As the
Fed intervenes, short-term rates will
go up. The short-term rates of 8-9%
now will peak at about 14% and
long-term rates will hold a t about 12
to 12V2% for a high level.”
Mr. M ichas said, “ We should ex­
N orthw
estern Banker, January, 1985
Federal Reserve Bank of St. Louis

pect profits and stocks to drop
some, and inflation then to be
down.” He added th a t “ the five m id­
west sta te s of Michigan, W isconsin,
Indiana, Illinois and Iowa will suffer
from the next depression, due to
solid goods m anufacturing, but they
will benefit from the following re­
bound.” He closed by saying, “ I
believe this lies 18-24 m onths in the
fu tu re.”
G uests for the Business Trends
M eeting were welcomed by Norwest
Des Moines Chairm an and CEO
E.G. “ B u d ” Precht, who confirmed
his earlier announced intention to re­
tire from those positions and the
board a t the end of 1984. President
George M illigan introduced the
three other program speakers and
Gov. Terry B ranstad, who also ad­
dressed luncheon guests briefly.
Gov. B ran stad noted th a t Iowa
now has trade offices in H ong Kong
and W est Germany, as well as sister
cities in China and Japan. He pin­
pointed four business trends of
interest to Iowa: 1. D ecentraliza­
tion—smaller facilities in smaller
comm unities, which bodes well for
Iowa comm unities. 2. “ As sta te s be­
come more com petitive we find
other factors such as quality of life,
are im proving here. Our quality of
education traditionally is im portant
and we continue to improve this as­
pect.” 3. Exceedingly rapid change,
which Iowa m ust face up to and stay
ahead of; Iowa m ust help create and
control its direction, and a d ju st to
change. 4. M arketing. “ We in the ag
business recognize this more every
Carol Brookins, president of World

P erspectives, Inc., W ashington,
D.C., discussed “ A griculture.” S®e
said “ Our ag depression today is
bigger th an it was in 1934. More
than foreclosures, we are seeing con­
solidations and closings all through
the ag industry. It dwarfs the pr#>lems of the steel industry and C hrys­
ler. And, we can’t blame it all on the
R ussian em bargo and the high dol­
lar value.” She said we built a world
advantage in trade in the ’70s, “ t # t
our in frastructure was built on an in­
flationary trend; then, we shored up
prices based on controlled produc­
tion and then opened up trade.
W hen we lost a portion of our w oftl
trade due to the em bargo and to
com petitors, the re su lt becam e
bleak, but now-we know —all of us,
inclu d in g C o n g re ss—th a t som e­
thing has to be done now.”
She sees a gradual easing off of
governm ent support program s over
a three to five year period; broad
support for control of acreage by in­
sisting on retirem ent of margirall
land previously hauled into the sup­
port price program s; and incorpora­
ting as Title I of the new farm bill a
m ajor addressing of the export situ ­
ation. “ The key to federal ag proicy,” M rs. Brookins stated, “ is fed­
eral spending. David Stockm an is on
the w arpath about it this year and
he has a right to be...The majmchange in farm bill w riting this tim e
is th a t more people th an ju s t the ag
industry will be involved in w riting
it and it w on’t be ju s t a F arm Bill
bu t a federal Ag Policy.”
She concluded by saying, “ I think
we’ll see lower interest rates helping
farm ers, m arket developm ent and
increased ag export efforts.”
W illiam J. Ryan, president a ^ l
CEO of Palm er Comm unications,
Inc., Des Moines, owner and opera-

Io w a N e w s

t<£ of W HO TV and Radio, gave a consulting firm. Prior to th a t he was
look a t the electronic developm ents vice president and m anager of the
in the Haw keye sta te and the great international banking departm ent
changes taking place in his industry. a t Norwest Bank, Des Moines. He
Frank L. N ageotte, president and brings 25 years of extensive interna­
cj^ef operating officer of The G rey­ tional banking experience to MNB.
Mr. Boes joins the bank from
hound Corporation, Phoenix, Ariz.,
told why his com pany selected Des Banks of Iowa Com puter Services
M ones as the site for its nationwide Company, where he was business de­
accounting center, and details of velopm ent representative. In his
h 0 v more than 100 executivs in­ new position he will report to Blake
volved in the move were brought to Bales, vice president.
Des Moines for direct briefing. Mr.
N ageotte told his audience th a t Joins Mason City Agency
G reyhound sta rte d in H ibbing,
Richard K. M aguire has joined
]\#nn., as a small regional passenger M ohawk A dvertising in M ason City
provider. The new Des Moines cen­ as account suter is now advertising for applicants p e rv is o r/f in a n to fill approxim ately 700 jobs th a t cial specialist.
are being created a t the new ac­
Mr. M aguire
c e n ti n g center in W est Des Moines. joins the agency
from Core Group
Appointed at Merchants
M a n a g e m e n t,
National, Cedar Rapids
Inc., a m arketM erchants N ational Bank, Cedar ing/com m unical i p i d s recently announced the ap­ t io n s e r v i c e s
pointm ent of Pierre J. Herszdorfer company based
as vice president of international in Minneapolis,
banking and Steven Boes as corpor­ where he was director of operations.
He also was vice president and se­
ate banking officer.
nior vice president a t two m ajor
m idw est banks.



Mr. H erszdorfer joins MNB from
Des Moines where he m ost recently
operated his own international trade

Sverdahl stated th at, “ w ith POS
transactions as opposed to paper,
the bank will have significant sav­
ings th a t can be beneficial to the
custom ers of the bank. There will be
no need to file checks, store checks,
microfilm or encode.”

Elected in Davenport
Perry H ansen has been elected ex­
ecutive vice president of Brenton
B ank in Daven­
port. Mr. H an­
sen has served
as senior vice
president since
1980 and will
now assum e the
d a ily m a n a g e ­
m e n t o f th e
bank. He is a
graduate of the
U n i v e r s i ty of
Dean Duben rem ains as president
of the bank b u t will be assum ing ad­
ditional duties w ith the b an k ’s
parent company, B renton Banks,
Inc. of Des Moines.

Grundy Natl. Appoints One

G rundy N ational Bank, G rundy
Center, has announced the appoint­
m ent of Kevin Swalley, CPA, to the
Peoples Bank Installs POS
staff as an a ssista n t vice president.
At Crossroads HyVee Store
His duties will include financial and
Peoples B ank and T ru st of W ater­ ta x planning, supervision of the acloo has installed POS (Point of Sale) counting/bookkeeping d ep artm en t
term inals a t each of the 15 check-out and adm inistration of the micro­
loans a t the HyVee Store, Cross­ com puter system s and program s.
roads Shopping Center. These term i­
Mr. Swalley is a graduate of the
nals allow the custom er to use their U niversity of N orthern Iowa and
bank debit card to pay for groceries has been w ith several firm s in the
area since m oving to G rundy Center
Peoples B ank P resident R.K. in 1979.

(Continued from page 24)
the crux of the fight, then added, “ W hen you live in
R e n to n , M issouri, and can conduct your financial af­
fairs through conglom erates in Chicago or New Y ork—
as prom otions in my mail rem ind me alm ost every
week—then in te rsta te banking service has arrived.”
N oting th a t custom ers and legislators don’t really
c^-e, he asked, “ Who cares about in te rsta te banking?
No one bu t bankers...M any of those m ost fervid in
their exam inations are them selves associated w ith
chain banking arran g m en ts—arrangem ents designed
to circum vant the very geographic restra in ts they seek
^ p re se rv e .
“ As a result of these internal struggles, banking’s
level of perform ance in shaping public policy over the
long term never reaches its potential. O pportunities
have been lost. B ut opportunity can be regained.
^ R eferrin g to the panel th a t was to follow him, Willis
said, “ In ju s t a few m inutes (they) will discuss m any
Federal Reserve Bank of St. Louis


questions about banking th a t rem ain unansw ered now,
bu t will be answered in the coming m onths and years.
Those answ ers m ay regain for banking opportunities
th a t have been lost. B ut those opportunities will be re­
gained only if bankers w ant to regain th em .”
I t is typical of Willis th a t in his final address,
although few knew th a t except him, he looked ahead to
opportunities and a positive approach, rath er than
dwelling too long on the past.
A lthough he has given no indication of w hat his
business or career plans m ight be after Ja n u ary 31,
Willis does plan to rem ain in the W ashington area w ith
his home in nearby Reston, Va., where he lives w ith his
wife, Sandy, and daughters Meg, 6, and Kay, 5. He has
two grown daughters and one son by his first m ar­
riage. Also, he will continue his close interest in his
family bank in T renton and is planning to m aintain his
schedule of once a m onth trip s for board m eetings—
“ t h a t ’s my trip back to reality ,” he com m ented w ith
his dry humor.
N orthw estern Banker, January, 1985


Io w a N e w s

Appointed in Mason City
A t U nited Central Bank, M ason
City, Robert G. Lorge has been app o in te d senior
vice p resid en t;
Jim Vigars, vice
p resid e n t, w as
designated m an­
ager of the com­
mercial loan de­
p a rtm e n t, and
E rick G andrud
was elected com­
mercial loan offi­



Mr. Lorge has been w ith UCB
more th an 23 years in the comm er­
cial loan departm ent. Mr. G andrud
has joined UCB in M ason City from
UCB in Des Moines, where he has
been a credit analyst for the last
year and a half. Prior to th a t he was
w ith N orwest B ank approxim ately
three years.

UMACHA Appoints Director
The board of directors of The U p­
per M idwest A utom ated Clearing
House Associa­
t io n h a s a n ­
nounced the ap­
p o in tm e n t of
Fred Laing as
executive direc­
tor of the associ­
ation. Mr. Laing
has been active
in UM ACHA for
th e p a s t four
years as a mem ­
ber of the operations and m arketing
com m ittees and as chairm an of the
newly-formed goals comm ittee.
A fter graduating from M oorhead
S tate College, Mr. Laing joined Nor­
w est B ank, M inneapolis, N.A.,
where he worked in operations as an
analyst and in cash m anagem ent
w ith prim ary responsibility for
ACH supported products. He was
active in m arketing ACH services,
developing m aterials and m anuals
and im plem enting new ACH pro­
N orthw estern Banker, January, 1985
Federal Reserve Bank of St. Louis

New Investment Planning
Aid for Community Banks
Financial Institutions Investm ent
Services, Inc., a registered invest­
m ent advisor, has announced a new
service designed to help the n atio n ’s
smaller banks compete w ith m ajor
financial in stitutions in to d ay ’s de­
regulated environm ent. Focusing on
balance-sheet planning, the service
is specifically directed tow ards
m eeting the smaller b an k ’s funding
needs and aggregating m any of its
investm ent portfolio activities with
those of other client banks so as to
achieve economies of scale th a t are
virtually impossible under separate
operating conditions.
Located in M erriam, Kans. FI IS
is a joint venture of Kemper Finan­
cial Services, Inc., the large Chicago
asset-m anagem ent firm, and five
K ansas City-area businessm en from
the investm ent and banking commu­
According to Robert C. Colvin,
president and chief executive officer
of F I IS, who made the announce­
m ent, the service is custom ized to
support all aspects of the commu­
nity b an k ’s investm ent needs. In ad­
dition to asset-and-liability plan­
ning, investm ent planning, portfolio
analysis, and portfolio accounting
and record keeping, the service in­
cludes tim ely financial, m arket and
economic inform ation, execution
services, cash m anagem ent and cus­
todial services.
Jeffrey L. Noyes, executive vice
president and chief operations offi­
cer of FU S, said the system consists
of m icrocom puter program s, a data
transm ission netw ork and m ain­
frame com puter system s th a t enable
client banks to com m unicate direct­
ly w th F I I S ’s M erriam h ead ­
quarters for order entries, portfolio
m arket inform ation and all other
aspects of the service. It also
en ab les c lie n t b a n k s to com ­
m unicate w ith each other, and F U S
to tran sm it inform ation to par­
tic u la r c u s to m e rs , or to all
custom ers, as required. In turn, the
system allows any client investm ent
departm ent to expand its current
capabilities to include the extensive
resources available from FI IS. Im ­
portantly, he said, since all inform a­
tion m ust pass through the system ,
everything concerning client activi­
ty is captured to provide an audit
trail and docum entation for client

Happy Birthday!

WHEN Philip J. O’Hara, a.v.p. & a.t.o.
at The State Central Bank in Keokuk,
had a birthday last month, he got a
real surprise from fellow employees
when this picture and brief messagd#
appeared in the local newspaper!
They had obtained this childhood
photo of him and placed it in a col­
umn headed, “ Happiness Ads.” Mr.
O’ Hara is a 10-year veteran with the

Chase Joins Visa Program
Visa International reported last
m onth th a t Chase M an hattan B a^c
has joined its international auu>m ated teller machine network, add­
ing more th an 200 ATM s in the New
York City area and pushing the n e t­
work p a st the 1,500 m achine m a r^
The addition of the Chase-owned
ATM s p u ts the Visa netw ork at
1,660 m achines operating in the
U nited S tates, Spain and A ustralia.


In d e x o f
A d v e r tis e r s

American National Bank & Trust, St. P aul. . .

. . .41

Banclease, Inc., Omaha ................................
Bankers Trust Company, Des M o in e s ..........

. . .54
. . .62

Central Bank of Denver..................................


Deluxe Check Printers, St. P a u l....................
Drovers Bank of C h ic a g o ..............................

. .6-7

F&M Marquette National Bank, Minneapolis
Federal Home Loan Mortgage Corp..............
First Interstate B ancorp................................
First National Bank, L in c o ln ..........................
First Bank, Minneapolis-St. Paul ..................
First National Bank, O m a h a ..........................
First National Bank, Sioux City ....................
First Wisconsin National Bank, Milwaukee .

. . .36
. .4-5

Gross, Kirk Company, W a te rloo ....................

. . .65

Iowa Bankers Insurance & Services, Inc.......

. . .71



. . .57
. . .67

Merchants National Bank, Cedar Rapids . . .
Microcom, Inc. Cedar R a p id s ........................


North Central Companies, St. Paul ..............
Norwest C orporation......................................

. . .75
. . .76

Office Concepts, Ltd., W aterloo....................
Omaha National Bank ..................................


Packers National Bank, O m a h a ....................
Piper, Jaffray & H op w o od ..............................
United Central Bank of Des Moines, N.A. . . .


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