Full text of The Northwestern Banker : January 1986, 93rd Year, No. 1468

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m

JANUARY

1986

M. ADAMS

B. SOLUM

W.M. SANGER

T.M. KING

D. ROGERS

E. BAKER

W.K. KLEIN

G.W. STEVENSON

D.A. NAHNSEN

P. DeROSIER

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Federal Reserve Bank of St. Louis

Best Sources
for
New Business
in 1986
• Guidelines
for Down-Sizing

M. AUSTIN

W.J. RICKERT

M eet Dick Retz,
M NB Correspondent Banker.

M eet Dick Retz,
farmer.

As an MNB Correspondent Banker, Dick brings over 13 years' experience
iin agricultural finance counseling, ag lending and farm management to
his work.
As a farmer he understands, first hand, what your agricultural
customers are up against and the kind of financing they need to achieve
their goals.
MNB and its respondent banks are located in some of the country's
most productive farmland. And because agriculture plays such a vital role
in the economy, we've developed a special commitment toward
agricultural financing.
So when you have farm customers who need to restructure short
term debt into long term, need cash-flow financing, machinery loans or
cash to purchase additional land, talk to someone who knows about
banking and finance. Call Dick Retz at MNB. Dial 319/398-4320 or tollfree, 1-800-332-5991.


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Federal Reserve Bank of St. Louis

Merchants National Bank 1:1

Cedar Rapids, Iowa 52401

Member F.D.I.C.

A BANKS OF IOWA BANK

cf Banking Personnel
The Premier Program Dealing With The Protection Of Banking
Executives And Their Employees

Identifying the Threats
Understanding the Threats
How to Minimize your Risk
How to Avoid a C onfrontation
Dealing with Aggressive Persons

Hostage Situations
Executive Protection
Kidnap and Extortion
Establishing Your Bank’s Plan

This seminar is the product of over a year of intense research and plan­
ning by a staff of Psychological, Law Enforcement, Banking and Security
Management Personnel. The backgrounds of the people involved include
service with the FBI, the U.S. Marshal’s protection unit, banking security
management, and mental health counseling.
Loss Prevention Services Inc., through its Consulting Division provides
a risk assessment and advisory service to Banking Institutions.
This one-day seminar will be offered in many cities throughout the United
States. The February and March schedule is as follows:
•Rapid City, SD
•Sioux Falls, SD
•Aberdeen, SD
•Bismarck, ND
•Fargo, ND
•Sioux City, IA

Feb. 5
Feb. 7
Feb. 12
Feb. 13
Feb. 14
Feb. 19

•Fort Dodge, IA
•Des Moines, IA
•Grand Island, NE
•Lincoln, NE
•Omaha, NE
•Marshall, MN

Feb. 20
Feb. 21
Feb. 26
Feb. 27
Feb. 28
Mar. 5

•Mankato, MN
•St. Cloud, MN
•Norfolk, NE
•Minneapolis, MN
•Rochester, MN
•Waterloo, IA
•Davenport, IA

Mar. 6
Mar. 7
Mar. 12
Mar. 14
Mar. 19
Mar. 20
Mar. 21

The cost for the sem inar is $100.00 per person. Included are coffee
breaks, luncheon and all w ritten materials.
To register for this seminar, or for further information, please call toll free
1-800-843-1300 Ext. 850, or write: Loss Prevention Services, Inc., 705 E.
41st St., Suite 230, Sioux Falls, SD 57105.
This could be the most im portant training that you and your employees
w ill receive this year. Don’t miss it.

LPS
LOSS PREV EN TION SER V IC ES, INC.

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Federal Reserve Bank of St. Louis

705 E. 41st Street, Suite 230, Sioux Falls, SD 57105

4
FDIC Disclosure Policy
Is Delayed Six Months

N O p p w m ER N
JANUARY 1986 • 93rd Year •

No. 1468

MEMBER OF AUDIT BUREAU OF CIRCULATION
MEMBER BANK MARKETING ASSOCIATION

tv r

OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

FEATURES

13

Sources for new business

Exclusive survey gives bankers ideas for growth

18

G uid elin es for dow n-sizing

Les Olson and Richard Deems tell how to deal with people

20

A look ah ead to 1986

1st Chicago Conference Speakers See Good Year

DEPARTMENTS
8
10
25
26
30
33
34
34

35
36
39
40
45
45
49

Corporate News
Calendar
Minnesota
Twin Cities
Norwest Hosts
650 at Conference
Illinois
Wisconsin
Wyoming

51
54

North Dakota
Colorado
Nebraska
Omaha
Lincoln
Iowa
Norwest Conference
Looks at Iowa’s Future
Des Moines
Index of Advertisers

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

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Carla Lukenblll

Diane Nelson

No. 1468 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Northwestern
Banker, January, 1986

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Federal Reserve Bank of St. Louis

William Seidman, recently named
chairman of the Federal Deposit In­
surance Corporation, announced in
mid-December that the FDIC’s ear­
lier adopted disclosure policy that
was to become effective January 1,
1986, has been put off until July 1,
1986, “unless it is superseded by a
new plan that federal regulators
may develop.”
This announcement gave the
banking industry the time delay it
had been seeking in order to present
its side of the disclosure picture to
the all new three-man FDIC board.
Mr. Seidman gave the initial hint
that he might seek such a delay
when he made his first banking con­
vention appearance at the ABA con­
vention in New Orleans in October.
He was just receiving Senate appro­
val at that time for his new post. He
told ABA members he would take
an immediate, serious look at the
disclosure rule. Shortly thereafter,
Robert Clarke was named the new
Comptroller of the Currency, which
gave him an automatic seat on the
FDIC board. In addition, it is antici­
pated that North Carolina banker
C.C. Hope, Jr., recently retired vice
chairman of First Union Corp.,
Charlotte, N.C., and 1970-80 ABA
president, will be nominated as the
third FDIC board member.
The FDIC disclosure rule called
for publishing through press re­
leases, the names of all banks and
persons participating in their affairs
to whom the FDIC has issued final
orders connected with formal en­
forcement actions. Such a press re­
lease would briefly describe the en­
forcement action taken and summa­
rize the order. The policy applied to
insurance termination orders, ceaseand-desist orders, removal orders,
suspension orders, civil money pen­
alty orders and capital directives.
ABA and IBAA had worked in re­
cent weeks to persuade Mr. Seidman
to delay the effective date of the new
rule. The FDIC news release an­
nouncing the delay did not give any
hint that such disclosure rule would
not be adopted but said, “The board
of directors of the Federal Deposit
In su ra n ce C o rp o ratio n to d a y
(December 16) decided to work with
other federal bank regulators on a
uniform approach for disclosure of
material events concerning internal
bank operations, thus postponing

•

5
the effective date of a limited dis­
closure plan developed last May by
the Corporation.”
Subsequent to F D IC ’s rule
adopted in May, the Comptroller of
the Currency issued a disclosure
policy considered even more onerous
by the banking industry. Among
other things, it would require all na­
tional banks to inform shareholders
and depositors of enforcement ac­
tions taken against them.
Continental Names 10 Sr. V.P.s
Continental Illinois Corporation,
Chicago, has announced the appoint­
ment of 10 senior vice presidents to
the official staff of Continental
Bank.
They are: John H. Beirise, J.
Michael Berry, John P. Caulfield,
Philip M. Lewin, William H. Minihan, Jr., William A. Obenshain,
James M. O’Keane, Albert D. Sonntag, Dennis M. Toolan, and Robert
C. Vasko.
Mr. Beirise is a group head in the
Corporate and Institutional Bank­
ing-M idw est Department.
Mr. Berry joined the bank on
Sept. 9, 1985, as head of the Domes­
tic Money Center Banks and Se­
lected Other Financial Institutions
Department.
Mr. Caulfield is a group head in
the Treasury and Securities Depart­
ment.
Mr. Lewin is a departmental
credit officer in Credit and Sover­
eign Risk Management.
Mr. Minihan is a group head in
the Centralized Processing Depart­
ment.
Mr. Obenshain is a division man­
ager in the International Banking
Department at Continental’s Euro­
pean headquarters in London.
Mr. O’Keane is a group head in
the Special Industries Department.
Mr. Sonntag is a division man­
ager in the International Banking
Department.
Mr. Toolan is department head
for Domestic Corporate and Institu­
tional Operations.
Mr. Vasko is a group head for the
Commercial and Institutional Bank­
ing-M idw est Department and is
widely known among correspondent
banks. He joined the bank in 1963,
and was made a second vice presi­
dent in 1970 and a vice president in
1973. Mr. Vasko received a bache­
lor’s degree in 1963 from Iowa State
University.

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Federal Reserve Bank of St. Louis

LaSalle National to Be Lead Bank for
Marketing ABN North American Business
ORMATION of a new manage­
F
ment company, ABN/LASALLE
North America, Inc., to oversee and
market the operations of its subsidi­
aries, LaSalle National Bank of Chi­
cago, nine United States ABN of­
fices and three offices of ABN Bank
Canada, was announced at a Novem­
ber 21 press conference in Chicago
by officials of Algemene Bank Ne­
derland N.V. (ABN Bank).

H.J. LIVINGSTON, JR.

H.J. HIELKEMA

Homer J. Livingston, Jr., presi­
dent and chief executive officer of
LaSalle National Bank, introduced
Hendrik J. Hielkema, general man­
ager of the International Directo­
rate of ABN Bank, who said “We
believe that by locating in Chicago
we are clearly showing our desire to
establish an American identity.
Many foreign banks locate their
American headquarters on one of
the coasts, and they retain much of
their foreign banks style. We en­
courage local management, local
oversight and local responsibility.
In this sense, the location of our
headquarters is a reflection of our
management philosophy and our
commitment to grow in the North
American marketplace.”
Mr. Hielkema said Mr. Living­
ston has been named chairman and
CEO of the new Chicago-based man­
agement company. Ton J. de Boer,
former manager of ABN’s New York
branch, has been named president.
Mr. Livingston will continue as
president and CEO of LaSalle Na­
tional Bank.
Frank H. van Veenendaal relin­
quished his responsibilities Decem­
ber 31, 1985, as ABN’s regional
manager for North America and will
be given several specific assign­
ments until his retirement on June
30, 1986.
At the press conference, Mr. Liv­
ingston displayed the North Ameri­

can map pinpointing the present
ABN affiliates in Montreal, Toronto
and Vancouver in Canada, and of­
fices in New York, Pittsburgh, A t­
lanta, Miami, Houston, Los Ange­
les, San Francisco and Seattle in ad­
dition to the Chicago office of
LaSalle. He said, “All their services
are backed with the full availability
of the parent ABN Netherlands and
its 900 branches in 43 countries
around the world. This gives our
large U.S. bank the international
capability it desires to compete.”
Mr. Livingston emphasized that
“Legal entities of the individual
banks and offices remain the same,
so this is not a merger, but we will
manage these North American of­
fices in our marketing strategy as if
they were merged. We think that by
having a common name—ABN/
LASALLE—we’ll be positioned bet­
ter to compete if interstate banking
should occur. Locally, here in Chi­
cago, we are still legally LaSalle Na­
tional Bank, where we will continue
mid-market lending with our retail,
trust and bond services. We’ll be ad­
ding the capability of dealing with
the large corporations now with our
international operations capabili­
ty .”

ABN O LASALLE
Under the new structure, Mr. Liv­
ingston explained, ABN/LASALLE
group relationship managers will
have direct access to the resources
necessary to meet all of their cus­
tomer’s needs; not just credit needs,
but non-credit needs such as trade
financing, trust operations, cash
management services, letters of
credit and foreign exchange. In addi­
tion, they will advise bank
customers on investment banking
products such as private placement
and mergers and acquisitions. All
services will be available to LaSalle
National’s expanding list of corres­
pondent banks, he said.
Mr. Livingston likened the ex­
panded capabilities of North Ameri­
can operations to merchant banking.
ABN is one of the world’s largest
banks, with about $50 billion in
assets, with more than 900 offices
and affiliates in 43 countries. The
North American offices have 1,300
employees.
□
Northwestern Banker, January, 1986

I BAA Offers Complete Payment Services
HE Independent Bankers Asso­
T
ciation of America announced in
December that Telecredit, Inc.,
headquartered in Los Angeles, has
been selected to provide a compre­
hensive range of payment services
to be offered through the IBAA to
its member banks across the coun­
try. Telecredit presently provides
electronic payment and authentica­
tion services to more than 700 finan­
cial institutions and approximately
80,000 retail establishments in the
United States.
The payment services Telecredit
will provide under the agreement
with IBAA Bancard, Inc., a service
corporation managed by IBAA, in­
clude complete data processing sup­
port for Visa and Mastercard credit
and debit cards, authorization ser­
vice, billing, settlement, and securi­
ty services. Telecredit also will offer
check guarantee, point-of-sale termi­
nals and other payment services to
IBAA member banks.
“We believe this program will sig­
nificantly enhance the competitive

position of our member banks by
putting control of the credit card in­
strument in their hands,” said Ken­
neth Guenther, IBAA executive
vice president. “Until now, most in­
dependent banks could only offer
their customers a competitor’s
card,” he noted.
Mr. Guenther said there are a
number of compelling reasons to be
the card issuer and sell the indepen­
dent bank’s own product: 1) to con­
trol the customer service and credit
decisions that affect the indepen­
dent bank’s own customers; 2) to
protect the bank’s customer base,
both consumer and commercial ac­
counts, from competitors; 3) to at­
tract new customers and to build
multiple banking relationships; 4) to
expand the bank’s consumer loan
portfolio and to produce an addi­
tional revenue source; and 5) to in­
crease the institution’s visibility in
the marketplace as a full-service
bank, and to position it as a long­
term contender in the consumer pay­
ments industry.

Charles Bruere Heads ABA
Community Bankers Council
T. Charles Bruere, president of
First State Bank, St. Charles, Mo.,
has been named 1985-86 chairman of
the American Bankers Association
Community Bankers Council.
Previously, Mr. Bruere was vice
chairman of the Council, which rep­
resents the nation’s 12,500 commer­
cial banks with assets of $150 mil­
lion or less. The Council and the 190member ABA Community Bankers
Advisory Board assess the profes­
sional, regulatory and legislative
needs of these banks and provide
guidance to the ABA in how to most
effectively meet these needs.
Mr. Bruere will also serve on
ABA’s operating committee, which
coordinates all association activi­
ties.
BMA Sets National Sales
Conference March 23-26
Commercial bank executives in­
volved in the selling process will get
a chance to share and exchange
ideas as well as hear the latest in in-

Egadzill

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Federal Reserve Bank of St. Louis

dustry selling trends at the Bank
Marketing Association’s National
Sales Conference to be held March
23-26 at the Wyndham Franklin
Plaza Hotel, Philadelphia, Pa.
“Much has been said in recent
months about the urgent need for
banks to become far more aggres­
sive in selling their products and ser­
vices, and so this conference has
been designed to meet those needs
by providing key bank personnel a
forum to trade successful program
ideas on selling,” said Conference
Chairman Harriet Irwin, who also is
vice president of marketing at Com­
monwealth Bank and Trust Co. Wil­
liamsport, Pa.
Theme for the BMA conference is
“A Team Approach to Sales.”
General session speakers for the
2Vi day meeting—the first of its
kind for BMA—include: Charles
Futrell, professor of marketing at
Texas A&M University, College
Station; Chicago banking consul­
tant Jack W. Whittle and head of
Whittle & Hanks, and James J.
Hubbard, chairman of his own Chi­
cago-based sales-training firm, Hub­
bard & Associates.

Also, Nick Ward, vice president
of the sales training division of
MOHR Development Inc., Stanford,
Conn., and Dennis L. Driscoll, vice
president and regional manager of
the sales marketing division of Fi­
nancial Institution Services Inc.
Also on the program are round­
table discussions and a series of con­
current sessions on such topics as
“Building a Sales Team,” “Sales
Program Development,” “Selling
Products,” and “Managing for Per­
formance.”
Two mini-workshops will be held,
one on calling officers and the other
on selling and cross-selling.
The registration fee for the confer­
ence is $475 for members and $625
for non-members. For registration
materials or for more information,
contact BMA’s Training Develop­
ment at 312-782-1442.

can Bankers Association’s 1986
Bank Investments and Funds Man­
agement Conference, scheduled for
February 25-28 at the H yatt Regen­
cy Hotel in New Orleans.
Conference co-chairmen are Law­
rence H. Brown, senior vice presi­
dent of The Northern Trust Com­
pany, Chicago, and Gerald Jurgen­
sen, president of Norwest Invest­
ment Services, Inc., Minneapolis.
Topics in the portfolio manage­
ment track include portfolio man­
agement and investment policy, li­
quidity and contingency planning,
the basics of duration, and pricing
retail liabilities.
The treasury issues track features
sessions on corporate/treasury rela­
tions, swaps, options and futures,
and applications of duration.
On the capital markets and dealer
activities track, topics include asset
liquification, capital market activi­
ties, dealer activities, and the “how­
to ’s and why’s ” of capital market
ABA Sponsors Bank
subsidiaries.
Investments Conference
For registration materials, or for
Newly confirmed Comptroller of more information, call the ABA
the Currency Robert L. Clarke will Banker Education Network, (202)
be a keynote speaker at the Ameri­ 467-6738.

Yes, Drovers has money to lend to
correspondent banks. That’s no surprise.
But what may surprise you is just how
m uch Drovers has to lend. As part of the
Cole-Taylor Financial Group, Drovers has
a multi-million dollar lending limit. So if your
bank needs a small overline loan, Drovers can
cover it. And if your bank needs a large loanlet’s say a bank stock carry loan-chances are
good we can cover it, too. But you’ll never
know unless you pick up the phone and ask.
The call is free. Phone 1-800-621-8991. In
Illinois, call 1-800-572-2498. Remember,
you can ask a lot from Drovers.

f t i / Drovers Bank

of Chicago
47th & Ashland Ave., Chicago, IL 60609 • 1-312-927-7000
MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C.

A Cole-Taylor Bank

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Federal Reserve Bank of St. Louis

8

Deluxe Introduces One-Write System
VARIETY of pegboard account­
A
ing systems have been intro­
duced by Deluxe One-Write Sys­
tems, a new division of Deluxe
Check Printers, Inc.
The One-Write product, which
combines an accounting system
with printed checks, is an easy-touse and efficient way of organizing
business records. The product is
widely used by small and medium
sized businesses.
“Our entry into the pegboard
marketplace is an extension of what
our company has done well for years
— small quantity, fast turnaround
printing,” said Norm Mears, general
manager of the One-Write Systems
division. “Our long-standing exper­
tise in the check printing business
enables us to provide the best mag­
netic ink character recognition
(MICR) quality in the industry,”
Mears added.
Deluxe offers a variety of sys­
tems, including payroll, cash dis­
bursement, a combination payroll/
cash disbursement and accounts re­
ceivable.
The One-Write system provides
bookkeepers with a better way to
organize records. Ledgers for pay­
roll and accounts receivable are

automatically completed as checks
and receipts are written, and journal
sheets capture all information at the
same time.
According to Mr. Mears, up-todate records can result in faster col­
lections, proper controls, and elimi­
nation of transposition errors, as
well as streamlining of clerical pro­
cedures. Information is ready at all
times for accounting and tax pur­
poses.
Another advantage of the OneWrite system is in organizing infor­
mation that will be used in a data en­
try system. Input operators are less
likely to make mistakes when the in­
formation is arranged in the format
that the One-Write system provides.
It comes assembled and ready to
use. A complete color coded opera­
tions manual is included with each
system. There is also an uncondi­
tional, money-back guarantee of satisfication with the One-Write Sys­
tem.
A catalog featuring One-Write
System products is available by call­
ing Deluxe toll-free, 1-800-328-0304,
or by writing Deluxe One-Write Sys­
tems, Department 046, 530 North
Wheeler Street, P.O. Box 64865, St.
Paul, Minn. 55164-0865.

Corporate
ROMOTIONS and other an­
nouncements have been made
P
by the following firms:
Bell Investment Company, Bur­
lington, la.: The 75-year old agricul­
tural finance and management firm
has been acquired by MONY Finan­
cial Services of New York. It will
become a subsidiary of the newlyformed MONY Agricultural Finan­
cial Services, Inc., but will maintain
a separate identity and manage­
ment.
Named as president of MONY
AFS is James O. Melton, who
served as MONY’s vice president of
the agricultural investment depart­
ment until 1974 when he left to
become a partner in Bell. Bell In­
vestment is involved in the private
placement of land-based agribusi­
ness loans and, through its subsi­
diary, Duff Farm Management Ser
Northwestern
Banker, January, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J

vice, Inc., is one of the fastest grow­
ing ag property management com­
panies in the U.S. The firm currently
manages an ag portfolio in excess of
$240 million. Thomas L. Steen as­
sumes the presidency at Bell. Jay
Luse is president of Duff Farm Man­
agement.
Check Technology Corporation,
St. Paul, Minn.: Edward F. Preusser
has been promoted to director of na­
tional sales. He was formerly east­
ern regional sales manager.
Deluxe Computer Forms, St.
Paul, Minn.: A free computer forms
catalog and compatibility guide for
more than 400 software programs is
now available. It offers checks,
statements, invoices, stationery,
mailers and labels for most compu­
ter needs, including standard and
custom forms, as well as W-2 and
1099 MISC tax forms for computer

printers. Both forms meet new IRS
1985 specifications.
LeFebure, Cedar Rapids, la.: Ray
Seiberlich has been appointed sales
engineer in the Chicago regional of­
fice. He will serve a territory that in­
cludes metropolitan Chicago and
Grundy, Kankakee, Kendall and
Will counties.
Modern Banking Systems, Inc.,
Omaha: The company is introducing
its “RECAPS” (Remote Entry, Cap­
ture and Processing System) which
features the new BTI 91690 docu­
ment processor and a Texas Instru­
ments Central Processing Unit.
MBS President Robert B. Friend
states that the system is totally
driven “on-line” from the CPU. Mr.
Friend said further that “RECAPS”
can process a thousand documents
per minute and is expandable from
six to 36 pockets. It has options for
ink jet spray (iyem sequence num­
ber) front and back, on-line endorser
and on-line microfilm.
It offers the customer the flexi­
bility to build his own float table,
Mr. Friend states, and change send­
ing points for cash letters and han­
dle any other maintenance required
without having to rely on a pro­
grammer. The multi-bank system
features cash letter production,
builds ACH tape, and includes
transmission capabilities, float cap­
ture, on-line inquiry for today’s ac­
tivity by account number or dollar
range, on-line reject/re-entry and ex­
ception items (NSF/OD, Stops and
Holds) processing.
Continental Illinois Corp.
Pays Dividend Arrearages
The board of directors of Conti­
nental Illinois Corporation, Chicago,
voted to pay full preferred dividend
arrearages and declare the current
quarterly dividend on the corpora­
tion’s Adjustable Rate Preferred
Stock, Series 1, and Adjustable Rate
Preferred Stock, Class A. In addi­
tion, the board of directors of Conti­
nental Bank voted to pay a $60 mil­
lion dividend from the bank to Con­
tinental Illinois Corporation.
The Continental Illinois Corpora­
tion board approved payment of
dividend arrearages on the Series 1
preferred stock totalling $6.925 per
share, or $12.4 million based on
1,788,000 shares outstanding, for
the period July 1, 1984, through
Sept. 30, 1985. A dividend of $1.225

9

per share was declared on the Series
1 preferred stock for the fourth quar­
ter of 1985. The cash dividends were
payable on Dec. 31, 1985, to stock­
holders of record on Dec. 13, 1985.
In addition, payment of dividend
arrearages on Class A preferred
stock, which is held solely by the
Federal Deposit Insurance Corpora­
tion (FDIC), was approved in the
amount of $2,981 per share, or $33.4
million based on 11,200,000 shares
outstanding, for the period Sept. 26,
1984, through Sept. 30, 1985. The
board also declared a fourth-quarter
dividend of 67.5 cents per share on
Class A preferred stock. Under the
terms of Continental’s restructuring
approved by stockholders on Sept.
26, 1984, Continental exercised its
option to pay Class A dividends to
the FDIC on Dec. 31, 1985 with ad­
ditional shares of Class A stock, to­
taling approximately 1.6 million
shares.
As required by the terms of the
restructuring, prior approval for the
declaration and payment of these
Series 1 and Class A dividends was
received from the FDIC. Approval
of the Office of the Comptroller of
the Currency and the FDIC also was
required to allow Continental Bank
to pay the dividend to its parent,
Continental Illinois Corporation.
CSBS Gets New President
John E. Malarkey, state bank
commissioner of Delaware, has suc­
ceeded Walter C. Madsen as chair­
man and president of the Conference
of State Bank Supervisors.
Mr. Malarkey, who has served
since April as president-elect of the
Conference, was automatically ele­
vated when Mr. Madsen resigned as
superintendent of banks of Arizona
to enter the private sector as presi­
dent and chief executive officer of
the First Central Bank of Phoenix,
Arizona. His present appointment
will run until the annual meeting of
the Conference on April 13, 1986,
when he is expected to stand for
election to a full one-year term as
chairman and president.
James L. Sexton, banking com­
missioner of Texas, has been elected
president-elect and vice chairman of
CSBS to fill the unexpired fourmonth term of Mr. Malarkey. He is
expected to stand for re-election to a
full one-year term at the CSBS an­
nual convention in Colonial Wil­
liamsburg in April.

LaSalle’s
Correspondent
Bankers.
What you need
today; what you’ll
want tomorrow.
As your Correspondent Bankers,
we’ll keep you in the forefront — not
only today but tomorrow as well.
LaSalle National Bank can
assist you with check processing,
coupon collections, Fed Funds,
purchase and sale of money
market, government and municipal
instruments and safekeeping. And
we take correspondent banking
one step further with services
in mergers and acquisitions,
cash management and lockbox
operations, as well as international
trade. Our affiliation with ABN Bank
is your passport to a global network
of banking services.
Get acquainted with LaSalle’s
Correspondent Bankers. Call
Wayne Bismark, Vice President
or Del Rogers, Vice President at
312-443-2769. They’ll be happy
to tell you more about how we
can help you with the challenges
of today and the opportunities
of tomorrow.

LaSalle National Bank
A subsidiary of
Algemene Bank Nederland, N.V.
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC

LaSalle National Bank

Northwestern Banker, January, 1986


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

r

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O dc

Convention Calendar

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LU LU
O
Milbank, SD
Triangular free-standing
display.

Bethany, MO
Corner mounted
two-faced.

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DAKTRONICS
INC

DAKTRONICS, INC. Box 128
Brookings, SD 57006
Ph. 605/692-6145
TOLL FREE 800/843-9879
(exc. AK, HI and SD)
TELEX 29-5013 DAKTRONCS BKNG


Northwestern
Banker, January, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

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

National Conventions & Schools
1986
Jan. 20-21 — BAI Bank Financial Analysis,
Denver, Colo.
Jan. 24— RMA Loan Pricing and Profitabili­
ty Analysis Workshops, Eldorado Hotel
and Casino, Reno, Nev.
Jan. 26-29— BAI Community Bank Presi­
dents’ Forum, Vail, Colo.
Jan. 28-31—ABA National Insurance & Pro­
tection Conference, Hyatt Regency, New
Orleans.
Jan. 29-31 — BAI Introduction to Commer­
cial Loan Operations, Denver, Colo.
Jan. 30-31 — RMA Financing the Closely
Held Business Workshop, Brown Palace
Hotel, Denver.
Jan. 30-31— BAI Negotiating Agricultural
Workout Loans, Wichita, Kan.
Feb. 2-3— RMA Loan Review Seminar,
Chase Hotel, St. Louis, Mo.
Feb. 2-5—ABA National Trust & Financial
Services Conference, Hyatt Regency
Grand Cypress, Orlando, Fla.
Feb. 9-12—ABA National School of Retail
Banking, University of Oklahoma, Nor­
man, Okla.
Feb. 10-11 — BAI Investment Strategies and
Portfolio Management, Orlando, Fla.
Feb. 13-14— BAI Asset/Liability Manage­
ment Seminar, Orlando, Fla.
Feb. 16-19—ABA National Assembly of
Community Bankers, Hotel Interconti­
nental, San Diego, Calif.
Feb. 20-21 — BAI Supervising Bank Opera­
tions, Denver, Colo.
Feb. 24-26— BAI Survival Course for Agri­
cultural Lenders, Oklahoma City, Okla.
Feb. 26-29—ABA Bank Investments &
Funds Management Conference, Hyatt
Regency, New Orleans.
Mar. 2-5— BMA Electronic Banking Confer­
ence, Fairmont Hotel, San Francisco,
Calif.
Mar. 9-11—ABA National Corporate Bank­
ing Conference, Westin St. Francis, San
Francisco, Calif.
Mar. 9-12— RMA Commercial Loan Docu­
mentation Workshop, Hyatt Regency,
Cambridge, Mass.
Mar. 9-13— IBAA National Convention, Las
Vegas, Nevada.
Mar. 9-12— BMA Community Bank CEO
Mar. 9-12— BAI Community Bank Presidents’
Forum, Marco Island, Fla.
Marketing Seminar, Palm Springs, Calif.
Mar. 9-14— ABA National Compliance
School, University of Oklahoma, Norman
Okla.
Mar. 17-18— BAI Cost Accounting Seminar,
Denver, Colo.
Mar. 17-21 — KBA, NBA Schools of Banking

Fundamentals, Holiday Inn, Manhattan,
Kan.
Mar. 18-21 — BAI Check Processing Confer­
ence, Las Vegas, Nev.
Mar. 19-20— RMA Loan Participations and
Purchase Workshop, Hotel Intercontinen­
tal, New Orleans.
Mar. 20-21 — BAI Asset/Liability Manage­
ment Seminar, Denver, Colo.
Mar. 23-26— BMA National Sales Confer­
ence, Philadelphia.
Apr. 1-4— BAI Bank Auditors Conference,
Dallas, Tex.
Apr. 6-9—ABA National Conference on Real
Estate Finance, Fairmont Hotel, Dallas,
Tex.
Colorado:
Jan. 23—CBA Legislative Seminar & Annual
Reception, Denver.
Jan. 26-29— BAI Community Bank Presi­
dents’ Forum, Vail.
Jan. 30-31— BAI Bank Directors’ Seminar,
Denver.
Feb. 6-7—CBA Annual Compliance Seminar
& Video Teleconference, Clarion Airport
Hotel, Denver.
Feb. 16-18—CBA Consumer Banking Confer­
ence, Broadmoor Hotel, Colorado Springs.
Mar. 9-12—CBA Washington Visitation,
Washington, D.C.
Apr.—CBA Executive Bank Management
Seminar, Denver.
Apr. 8—CBA Insurance Seminar, Stouffer
Concourse Hotel, Denver.
Apr. 20-22—CBA Ag Banking Seminar, Wes­
tin Hotel Tabor Center, Denver.
May 8—CBA/BAI Annual Spring Conference,
Denver.
May 9—CBA Legal & Compliance Spring,
Seminar, Denver.
May 14-15—CBA Investment & Funds Man­
agement Seminar, Denver.
May 15-17— NABW State Conference, Estes
Park.
June 4-7—CBA Annual Convention, Broad­
moor Hotel, Colorado Springs.
Oct. 6-7—Asset/Liability Mgmt Seminar, Den­
ver.
Illinois:
Jan. 14-16— IBA Education/Security Work­
shop, location TBA.
Jan. 21-23/28-30— IBA New Accounts/Business Development Seminar, location TBA.
Feb. 4-5— BAI Bank Directors’ Seminar, Oak
Brook.
Feb. 26-27—IBA Commercial Credit Confer­
ence, location TBA.
Apr. 14-17— BAI Management Potential As­
sessment, Rolling Meadows.
May 1-2— BAI Selecting, Installing, and Man­
aging an In-House Computer System, Chi­
cago.
May 2-4— NABW State Conference, Indian
Lakes, Bloomingdale.
May 19-21— BAI Operational Considerations
in Mergers and Acquisitions, Chicago.
May 19-30— IBA Illinois Bankers School, SIUCarbondale.
June 1-6— IBA Agricultural Lending School,
ISU-Normal.

11
June 11-13—IBA Convention, Adams Mark
^
Plaza, St. Louis.
" June 22-27—IBA Trust School, ISU-Normal.
July 20-25—IBA Consumer Lending School,
Bradley University, Peoria.
July 27-Aug. 1—IBA Commercial Lending
School, Bardley University, Peoria.
Aug. 10-15—IBA Bank Compliance School,
DePaul University, Chicago.
Aug. 17-22—IBA Internal Auditing School,
DePaul University, Chicago.
Sept. 16-17—IBAA Commodity Marketing
Seminar, Chicago.
Iowa:
Jan. 8— IBA IRA/SMP Workshop, Sioux City.
Jan. 15—IBA IRA/SMP Workshop, Cedar
Rapids.
Jan. 16— IBA IRA/SMP Workshop, Des
Moines.
Jan. 28, 29, 30—What to Do With the Death
of Reg Q, location TBA.
Feb. 2-8— IBA Commercial Lending School,
Ames.
Feb 3-4— BAI Negotiating Agricultural Work­
out Loans, Bettendorf.
Feb. 6— IBA Compliance Update Teleconfer­
ence, Ankeny.
Feb. 7-8— IBA Group I Meeting, Sioux City.
Feb. 16-17— IBA Group 11 Meeting, Burling­
ton.
Feb. 26-28— IBA Mid-Winter Management
Conference, Vail, Colo.
Mar. 5— IBA Legislative Briefing & Recep­
tion, Savery, Des Moines.
Mar. 17-19— IBA Ag Credit Conference,
Scheman Center, Ames.
Mar. 23-25— IBA Marketing Conference, Sa­
very, Des Moines.
Apr. 7-9— EFT Conference, Marriott, Des
Moines.
Apr. 12-16—IBA Washington D.C. Trip, J.W.
Marriott.
Apr. 28-29— IBA CEO Conference, Savery,
Des Moines.
May. 5-6— IBAA Ag Lender I Workshop, Des
Moines.
May 5—IBA Group 4 Meeting, Dubuque.
May 6— IBA Group 7 Meeting, Waterloo.
May 7— IBA Group 8 Meeting, Iowa City.
May 8— IBA Group 6 Meeting, Des Moines.
May 13-16—NABW State Conference, Holi­
day Inn, Iowa City.
May 19—IBA Group 5 Meeting, Council
Bluffs.
May 20— IBA Group 2 Meeting, Fort Dodge.
May 21 — IBA Group 12 Meeting, Okoboji.
May 22— IBA Group 3 Meeting, Clear Lake.
June 5-6— IBAA Internal Auditing I Seminar,
Des Moines.
June 5-6— IYBA Annual Conference, location
TBA.
June 9-20—IBA Ag Credit School, Ames.
June 22-27— IBA Iowa School of Banking,
Iowa City.
July 24-26—IIB Annual Meeting & Conven­
tion, The New Inn, Okoboji.
Sept. 14-16— l€A 100th Annual Convention,
Convention Center, Des Moines.
Minnesota:
Jan. 29— MBA Investments and Funds Man­
agement Conference, Radisson Metrodome, Minneapolis.
Feb. 6— MBA Bank Compliance Teleconfer­
ence, Holiday Inn International, Bloom­
ington.
Feb. 11-12— MBA-Senior Bank Management
Conference, Radisson St. Paul Hotel.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mar. 4— MBA Sales Management Seminar,
Radisson South, Bloomington.
Mar. 10-12— MBA Strategic Planning Semi­
nar, Brainerd, Bloomington, North Man­
kato respectively.
Apr. 9— MBA Insurance Risk Management
Seminar, Radisson Inn, Plymouth.
Apr. 22-24— MBA Bank Directors Seminar,
North Mankato, Bloomington, Brainerd
respectively.
Apr. 27-May 2— MBA/ABA Executive Devel­
opment Program, Hyatt Regency, Min­
neapolis.
Apr. 30-May 2— NABW State Conference,
Minneapolis Plaza Hotel, Minneapolis.
May 14— MBA Bank Holding Company
Seminar, Radisson Inn, Plymouth.
June 2-4— MBA 96th Annual Convention,
Radisson St. Paul Hotel.
June 9-10— IBAA Asset/LiabiIity Mgmt
Workshop, Minneapolis.
June 11 — IBAA In-House Computer Semi­
nar, Minneapolis.
June 12-13— IBAA Ag Lender II Workshop,
Minneapolis.
June 22-27— Minnesota School of Banking,
St. Olaf College, Northfield.
July 20-25— MBA Midwest Banking Insti­
tute, University of Minnesota, Morris.
Aug. 10-15— MBA Commercial Lending
School, St. Olaf College, Northfield.
Montana:
Jan. 23-24—MBA Senior Bank Management
and Counsel Conference, Holiday Inn, Bill­
ings.
Feb. 5-7— MBA Ag Bankers Conference,
Sheraton Hotel, Billings.
Feb. 20-21— MBA Management Leadership
School, Colonial Inn, Helena.
Mar. 6-7— MBA-AIB Conference, Colonial
Inn, Helena.
Mar. 24-25— MBA Head Teller Workshop,
Sheraton Hotel, Billings.
Apr. 17-18— MBA Marketing Conference,
Sheraton Hotel, Billings.
Apr. 30-May 2— MBA Retail Bankers Confer­
ence, Heritage Inn, Great Falls.
May 6— MBA White House Conference on
Small Business, Billings.
May 8-9— MBA Trust Conference, Sheraton
Hotel, Billings.
May 15-16— MBA Commercial Bankers Con­
ference, Holiday Inn, Billings.
June 5-7— NABW State Conference, Grouse
Mountain Lodge, Whitefish.
June 12-13— MBA Real Estate Bankers Con­
ference, Heritage Inn, Great Falls.
June 24-27— MBA Convention, Outlaw Inn,
Kalispell.
Nebraska:
Feb. 12-13— NBA Management Development
Conference, Kearney Ramada Inn.
Feb. 19-23— NBA Bank Executives Confer­
ence, Loews, Scottsdale, Ariz.
Mar. 3— NBA Bank Directors Seminar,
Scottsbluff Inn.
Mar. 4— NBA Bank Directors Seminar, North
Platte Holiday Inn.
Mar. 5— NBA Bank Directors Seminar, Lin­
coln Cornhusker.
Mar. 6— NBA Bank Directors Seminar, Nor­
folk Country Inn.
Mar. 19-20— NBA Ag Outlook Conference,
Kearney Holiday Inn.
Apr. 8-17— NBA Head Teller/Teller Staff Con­
ference, locations around the state.
Apr. 9-12— NABW State Conference, Holiday
Inn Hotel, North Platte.

May 15-17— NBA 89th Annual Convention,
Red Lion Inn, Omaha.
May 22-23—IBAA Ag Lender I Workshop,
Omaha.
June 5— NBA Presidents Golf Tournament,
Lochland Country Club, Hastings.
North Dakota:
Jan. 28-29— NDBA Bank Management Con­
ference, Holiday Inn, Minot.
Mar. 20-21— NDBA Marketing Conference,
Doublewood Inn, Fargo.
Apr. 17-18— NDBA Ag Credit Conference,
Holiday Inn, Jamestown.
Apr. 23-25— NABW State Conference,
Doublewood Inn, Fargo.
Apr. 27-29— NDBA/SDBA/MBA Trust Confer­
ence, Holiday Inn, Bismarck.
Apr. 27-May 2— MBA Tri-State Trust Confer­
ence, Sheraton Galleria, Bismarck.
May 18-23— North Dakota School of Bank­
ing, University of North Dakota, Grand
Forks.
June 8-10— NDBA Annual Convention, Holi­
day Inn, Fargo.
South Dakota:
Feb. 20—SDBA Bank Management Confer­
ence, Holiday Inn City Centre, Sioux Falls.
Mar. 17-20—SDBA Annual Washington Leg­
islative Trip (SDBA/NDBA), Washington,
D.C.
Apr. 2-4— NABW State Conference, Howard
Johnsons Motor Lodge, Sioux Falls.
Apr. 5—SDBA Teller/Staff Seminar, Ramada
Inn, Rapid City.
Apr. 9-10—SDBA Ag Credit Conference,
Kings Inn Convention Center, Pierre.
Apr. 12—SDBA Teller/Staff Seminar, Rama­
da Inn, Sioux Falls.
May 11-13—SDBA Annual Convention, Ra­
mada Inn, Sioux Falls.
Sept. 15—SDBA Group II Meeting, Sheraton
Inn, Aberdeen.
Sept. 16—SDBA Group IV Meeting, Wrang­
ler Motor Inn, Mobridge.
Sept. 17—SDBA Group V Meeting, Rapid
City.
Sept. 18—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 19—SDBA Group I Meeting, Holiday
Inn City Centre, Sioux Falls.
Wisconsin:
Feb. 10-12—WBA Bank Executives Semi­
nar, The Concourse Hotel, Madison.
Feb. 14-15—WBA Group I Meeting, Hyatt
Regency, Downtown, Minneapolis.
Feb. 23-Mar. 2—WBA Mid-Winter Retreat,
Las Hadas Resort, Manzanillo, Mexico.
Mar. 9-15—WBA Personal Banking School,
Westwood Training Center, Wausau.
Apr. 16-17—WBA Ag Bankers Conference,
Holiday Inn Holidome, Stevens Point.
May 14-15—WBA Bank Marketing Confer­
ence, The Abbey Resort, Fontana.
June 1-6—WBA General Banking School,
St. Norbert College, De Pere.
June 8-14—WBA Commercial Lending
School, St. Norbert College, De Pere.
June 16-18—WBA Convention, Embassy
Suites, Green Bay.
July 14-15—IBAA Internal Auditing I Semi­
nar, Madison.
Aug. 3-9—WBA Consumer Credit School,
St. Norbert College, De Pere.
Aug. 10-15—WBA Basic Banking School,
St. Norbert College, De Pere.
Aug. 10-23—Graduate School of Banking,
University of Wisconsin, Madison.
Northwestern Banker, January, 1986

12

BOND
SERVICE
vs.

BANK
SERVICE
Chances are, your bank has
been exposed more than once to
“bond service.”
It’s transaction-oriented
service from people who know
bonds, not banks. So the advice
you get too often goes no
further than offerings and oc­
casional bids.
Bond service is not what
L. F. Rothschild, Unterberg,
Towbin provides. Our specialty
is BANK SERVICE.® Over 25
years of service that combines
intimate knowledge of bonds
with in-depth understanding of
banks.
BANK SERVICE views
your portfolio in the same light
as you do: As a crucial com­
ponent of your bank’s overall
position. Not as an independent
entity.

Northwestern
Banker, January, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

That’s why before we make
a recommendation we conduct a
thorough study of your bank.
Then our BANK SERVICE
committee meets to discuss the
Bank Report we’ve prepared
specifically for you.
The recommendations
from the committee are tailored
to your bank’s present position
and future objectives in a chang­
ing marketplace.
Our PMS system can help
you monitor and manage
your portfolio. We’ll introduce
you to our Fixed Income Com­

puter Service, our investment
banking group, our fixed income
research, send you our news­
letter and invite you to appro­
priate seminars that we host in
your area.
All these services are de­
signed for one goal: To help you
achieve your bank’s overall
aims in a way no mere bond
service can.
So, while you may be get­
ting bond service, what you real­
ly need isB ANK SERVICE. Call
Stephen H. Kovacs, Managing
Director, at (212) 412-2600.

I»
L. F. ROTHSCHILD, UNTERBERG, TO W BIN

BANK SERVICE®

Best sources for new business
in 1986!
A N orthw estern B anker Survey

MPROVING the profit picture in 1986 will mean dif­
ferent things to different banks, according to com­
Iments
received by the
in a
N orthwestern B anker

survey aimed at pinpointing sources of new or in­
creased business as well as pinpointing areas of cau­
tion. Some banks that have been subjected to consider­
able pressure because of the ailing midwest farm eco­
nomy will be happy to find ways to help them move
into or maintain a minimum profit position; other
banks that enjoy a less stressed ag portfolio and those
blessed with a mix of business emanating from a more
robust economy in their communities will be looking

-m * * '
■'
^ jȤk

IE

III

T H 0M A S M K IN G
Vice President/Head
Community Banking
Institutions
The First National
■-»*-» Bank of Chicago

l* A

ACH Community Banker will have his or her own
E
specific bank’s personality, action niches and
special strengths to build upon and weakness-chal­
lenges to correct. However, as I review my own and my
unit’s performance this week, these thoughts carry
over and may apply to you, the reader.
What do I consider to be the best two or three
sources of new or increased business for community
banks in 1986?
• Reconsider the market segments comprising the
20% of your customers who are providing 80% of the
profits to the bank in each department. Codify the
strategies and tactics to enhance these relationships.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

aggressively at ways to improve their generally good
profit position.
Respondents to this survey generally have hear­
kened back to the fundamentals of banking—“the
basic fundamentals,” as one banker put it. One veteran
banker urges that 1986 is a time for “selective, con­
trolled growth.” Others suggest enhancing fee income,
re-structuring farm loans, managing personnel better,
improving the pricing of products. One common thread
running through most of the comments is the value in
sticking with present customers and expanding one’s
base of business with these proven customers.

• Upgrade the perception and positive pro-active
talents of managers in order to enhance the profes­
sionalism, environment and leadership they provide
their subordinates to perform and produce for their
unit and the bank. This means tough-minded evalua­
tion, creative leadership, focused training and appro­
priate rewards.
• For CEOs, review day-to-day task-involvement in
order to determine where delegation can free up time
for planning, organizing, leading and controlling.
Enhance your own leadership actions for your varied
“publics”: directors, shareholders, customers, em­
ployees and community.
I would urge fellow bankers to use the caution flag
in 1986 in these areas:
• Product pricing. Isolate low-priced or under-priced
deposit and operating products where you can priceup, retreat or withdraw emphasis.
• Articulate departmental/functional performance
indicators more concisely to enhance goal-related pro­
ductivity. Tie compensation and employment more
closely to performance (pay for results, not
attendance).
• Review your credit process even more closely,
Northwestern Banker, January, 1986

14
along with loan pricing policies. Formalize prudent file,
documentation, approval and monitoring procedures
so that managers are even more alert to trends in the
progress and potential problems of individual bor­
rowers and in the portfolio.
1985 has been a tough year for almost everyone in
some ways, but the winning manager goes back to the
basics in an ongoing process.

MEL ADAMS
Chairman, Keith County
Bank & Trust Co.
Ogallala, Nebr.
President, Nebraska
Bankers Association
HE BEST SOURCE of new business is, as always,
T
with the expansion of existing good customers.
This may take the form of refinancing term debt held
by other creditors (FLB, PCA, etc.).
It may also be worthwhile to re-introduce or re-emphasize current products available to our existing cus­
tomer base from the solid long term IRA market, to
the senior citizen affluence.
Another idea is to introduce new products, such as
financial planning services (preparing cash flows,
balance sheets, and possibly offering security broker­
age services).
Areas to be cautious about would include rapid ex­
pansion of lending functions in such uncertain times.
For example, unsecured loans, pursuit of loans outside
our market area, second mortgages, including home
equity loans in a declining real estate market.
Also, bankers should increase their sophistication of
asset—liability management to avoid an interest rate
and term mismatch that could impact profits. Banks
should also increase their liquidity in case bank runs
become prevalent next spring, should more banks fail.
But most important of all is to preserve the bank’s
native resources—your key personnel. Through these
challenging times, you can’t afford to lose good people
and the teamwork that can help keep the bank’s ship
afloat through good communication and management
skills with customers.
S'

WILLIAM J. RICKERT
Senior Vice President
National Bank of Waterloo
Waterloo, la.
EW OR INCREASED business for 1986 must
N
come from those areas where perceived needs are
not being met. I believe these include new and re-struc­
tured loans for some ag borrowers. With PCA pushing
hard and punitive FLB rates, opportunities exist to

Northwestern
Banker, January, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

take on some of these customers. You may have to look
at twenty to find one, but some loans can be made, f
even without FHA help.
W hat’s wrong with a good farm mortgage loan?
FLB has hundreds of loans where low land debt is the
only debt the farmer has. These loans look good in your
note case. An 11V2% or 12% fixed-rate loan—five-year
call, 20-year amortization, semi-annual or quarterly
payment, 1% loan fee—seems attractive. Once booked,
they take little servicing and should be reasonably se­
cure if made at no more than 75% of current realistic
values. They’ll even cash flow. Let’s use some of our
excess liquidity to fund some loans in Iowa rather than
sell so many Fed Funds to finance metropolitan and
governmental needs. You will be helping yourself and
your community.
If you have or can attract business with high receiv­
ables that are difficult to finance, take a look at “FlexO-Pay,” an inexpensive, computerized accounts receiv­
able program that works well on your own P.C. It real­
ly helps your customer with cash flow by monetizing
receivables and generates excellent yields for your
bank.
With reduced loan demand and lower volumes, we
either need to reduce staff or generate new busi­
n ess-after we’ve cleaned up our credit files and
checked our documentation. Make some calls; check up
on your customers and good prospects. If you have an
insurance agency make some falls for it. With prob­
lems facing many agencies there is a lot of good busi­
ness waiting for you.
Work with your customers. Be compassionate and
helpful. These are trying times and we probably have
to share some of the blame and some of the losses.
Finally, be cautious. Some of the lawsuits that have
been and will be filed are not as frivolous as they seem.
Unfortunately, there will be judgments rendered that
will make our job much tougher, and we don’t need
that.

WILLIAM M. SANGER
President
First Bank Wahpeton
Wahpeton, N.D.
President,
North Dakota Bankers
Association
ITH the problems confronting our customers at
W
this time I don’t want to devote a lot of time to
enhancing fee income. Our customers have enough
problems. I recognize that we should be paid for our
services and stand by this decision. This dilemma
might be likened to trying to solve the farm problem—
it defies solution.
So feu* as warning flags are concerned I would just
say that with the necessity of adhering to all the legalties related to doing daily business and the cost of
D&O insurance that expanding attorney fees will be
necessary.

15

“The basic fundamentals of banking really have not ch an ged .. .
My best advice is — just be a prudent banker!”

WILLIAM K. KLEIN
Vice President
Marquette Bank
Minneapolis
Minneapolis, Minn.
OMMUNITY bankers might identify and increase
non-interest income sources such as:
C• IRAs
• Personal and corporate DDA service charges
especially for returned checks and float usage.
• Credit life and A&H insurance premiums.
• Ag and personal financial planning.
• Equipment leading.
They could also originate and service reed estate
mortgages.
A third area would be to utilize allowance activities
open to your holding company to include discount
brokerage ESOP financing.
I would exercise extreme caution with the following:
1.
Speculative loans that represent a high degree of
risk and are not supported by adequate collateral and
debt service plans.
2.
The phase-out of Regulation Q will require con­
tinuous monitoring of your cost of funds to prevent an
interest rate sensitivity mis-match.
3.
Be aware of brokered CDs, inadequate liquidity,
and potential causes of capital erosion.
4.
Carefully assess offers by investment firms to
place the staff in your bank who cannot control their
actions. You will be responsible for them.

H. PETER DeROSIER
Vice President
Valley National Bank
Des Moines, la.
S MOST bankers are considered to be the local
A
leaders, I feel it very important to consider being
“upbeat.”
The opportunities for new sources of business are
quite generally limited without going out of one’s local
trade area, and violating prudent credit standards. To
breach these boundaries can be devastating.
One of the best known and seldom used sources of
new business is satisfying existing customers who can
serve as referrals. Many times when a new business is
moving into your area a number of influential persons

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within the community will have knowledge of the move
beforehand.
The basic fundamentals of banking really have not
changed. The continued monitoring of delinquency,
documentation and available customer information
has always been and will continue to be very impor­
tant. In most cases, when one waits too long for signs
of unproductive or uncooperative customers, notwith­
standing rising delinquency, a bank probably has
serious problems. It just haven’t recognized them yet.
In almost all facets of business, or anything else, it
still holds true that if “I t ’s to good to be true,” it pro­
bably is!

BURDETTE SOLUM
District President
Norwest Bank of
South Dakota, N.A.
President,
South Dakota Bankers
Association
N ADDITION to the usual loans to farm and com­
mercial customers, community bankers have an op­
Iportunity
to attract new, small industry type of busi­
nesses, and also have the opportunity to expand some
existing industires in their communities.
So far as caution flags for the coming year are con­
cerned, my best advice is this—just be a prudent
banker!

DELMAR ROGERS, JR.
Vice President
LaSalle National Bank
Chicago, 111.
ANKING has become more competitive in past
years and the community banks are constantly
B
under pressure to increase or maintain market share.
However, the community banker has a distinct advan­
tage by being close to his market and having a direct
relationship with the customer. The banker should con­
centrate on developing new business through this close
relationship, particularly in improving upon conveni­
ence banking (i.e., ATM’s and extended banking
hours), and developing greater computer processing
capability to offer a better banking product. The ser­
vice level in banking is always important to the cus­
tomer and the community bank has the greatest opporNorth we stern Banker, January, 1986

16

tunity to enhance market share with an effective cus­
tomer service program.
Community banks are always concerned with the
loss of corporate customers because the needs of the
customer have exceeded the capability of the local
bank. Therefore, the community bankers should con­
centrate on developing a close correspondent relation­
ship in order to offer more sophisticated services
through a larger bank while maintaining the account
relationship locally.
Banks need to continually monitor the status of cur­
rent borrowing customers. Also, even though the
economy has improved significantly in terms of the
reduction in interest rates and the inflation rate, banks
should be careful to not allow borrowers to become
over-leveraged.
Further deregulation and increases in interest rates
will mean a corresponding increase in expenses for the
bank. Therefore, bankers need to carefully price loans
and services to insure the appropriate profitability.

DENNIS A. NAHNSEN
Vice President/Mgr.
Correspondent Banking
Security National Bank
Sioux City, la.

Another service we would recommend community
banks consider adding to their services is indirect lend­
ing through car, truck, or machinery dealers. This is a
low cost method of adding loans, since much of the
work is done by the dealer and no advertising is neces­
sary. The community banker must decide what type of
package to offer. We have recently quoted a 10.9%
variable rate, while we have seen others offer a higher
fixed rate. Obviously, it must be attractive to both the
dealer and customer. But the community bank should
be able to compete effectively with the captive finance
companies, as most dealers will prefer to keep the
money in the community.
Regarding caution, we would urge the community
banks to thoroughly investigate the requirements and
utilize correct documentation and use of standard
forms. At our bank we are happy to assist banks get­
ting started in either or both of these sources for addi­
tional business.

“We must use caution when pricing
and/or bidding for deposits. . .to en­
sure we maximize spreads while pro­
viding for proper liquidity.’’

WO SOURCES that hold good potential for in­
creased business for community banks are mort­
T
gage lending and indirect lending through car, truck or
machinery dealers. Mortgage lending can be offered in
two forms; either adjustable rate mortgages or the tra­
ditional fixed rate loans. The adjustable rate mortgage
is most attractive to bankers due to our concern for
asset-liability duration matching.
At Security National Bank, we offer an ARM that
guarantees a rate for one year (presently around 9V2%)
with an annual cap of 2% and a lifetime cap of 5%.
While the ARM is most attractive to us as bankers,
due to the annual repricing feature, many of our cus­
tomers have the same concern we do about the likeli­
hood of rising interest rates. Therefore, we also offer
fixed rate mortgages which we package and sell in the
secondary market.
In offering this latter alternative, we recommend
that community bankers work through us or another
correspondent bank that may offer this expertise. It is
good, clean, current fee business for the community
bank, since they receive an origination fee while their
responsibilities are to take the application, close the
loan, and file the papers. We prepare documentation to
obtain approval from the FHA, VA, or other conven­
tional purchaser. We also prepare final closing papers
and provide funding.
Not only does mortgage lending provide additional
loans or current fee business, it also serves as an ex­
tremely important vehicle for getting and/or keeping a
customer. We have found it gives us the competitive
edge when the customer is considering his other bank­
ing needs and gives us a cross selling advantage.

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

MICHAEL AUSTIN
Vice President/Mgr.
Correspondent Banking
First Interstate Bank
Des Moines, la.
ITH few exceptions, the sources of new or in­
W
creased business for community banks in 1986
will be difficult to come by as the state’s ag economy
continues to be severely depressed.
Several sources for additional business include the
refinancing of existing Farm Credit System borrowers
who meet the banks’ credit underwriting criteria; in­
surance products, and the marketing of real estate.
Real estate can be marketed directly through an agen­
cy type arrangement or on a brokerage basis (secon­
dary market).
A bank’s ability to utilize the aforementioned
sources of business is contingent upon structure; i.e.,
charter, population, and the breadth of its market.
Deregulation and the continual souring of Iowa’s ag
economy will cause Iowa bankers to scrutinize several
areas of their operations during 1986.
One area deals with the interrelationship between li­
quidity, deposits, and pricing. Traditionally, Fed funds
and other liquidity oriented investments have not pro­
duced as good interest spreads as have loans. Due to
the relatively low loan demand at many banks, excess

17

• “Trust services and investm ents may be more important now
than when a sset totals and income potentials were higher. . .
because of le ss chance to correct errors.”
deposits must be put into lower yielding, short-term in­
vestments which, in turn, have negative effects on the
bank’s interest spreads. We must use caution when
pricing and/or bidding for deposits; e.g., public funds,
to ensure that we maximize our spreads while, at the
same time, providing for proper liquidity.
Personnel management is another area of extreme
importance, particularly as it relates to management
of stress. Many of our fellow bankers are handling dif­
ficult situations involving borrowers whom they have
known for many years, or even grown up with.
These difficult situations put tremendous pressure
and stress on the borrower, his or her family, and the
banker who is administering the problem. We must
work closely with our fellow bankers’ in order to
monitor their stress levels, and provide the appropri­
ate assistance when required.

ED BAKER
Senior Vice President
Norwest Corporation
Minneapolis, Minn.
NE OF THE best sources of new revenue for
O
banks would be re-pricing of their services, or pric­
ing for past services that were not listed with a fee to
customers. At the same time, they should look for
ways to improve the quality of the services they are of­
fering. So many institutions take for granted their cus­
tomer base while they try to go after their competitor’s
customers.
A community bank needs to have a marketing plan.
Today’s market place is becoming increasingly compe­
titive. The winners will know their market and who
they are doing business with.
Community banks also will need to establish rela­
tionships providing access to new products, services
and resources in creating new business opportunities.
My first comment regarding warning flags would be
to add some caution to those community banks which
attempt to offer all things to all people and then run
the risk of not doing any of them well.
Community banks must understand the needs of
their market place, regardless of being in a small com­
munity or a suburban niche.
Another caution would be against acquiring unpro­
ven technology.
I would also urge community bankers to be cautious
about increasing non-traditional, non-bank product
lines, and about increased staffing.

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Federal Reserve Bank of St. Louis

GARY W. STEVENSON
Vice President
First National Bank
Sioux City, la.
E SEE several opportunities for increasing busi­
W
ness in 1986 and many of them exist within our
current customer basis. Bankers and their customers
live in a far more complex financial world than a few
years back. These complexities come about because of
a more fragile ag economy and changes in financial ac­
tivity caused by deregulation.
Customers need more education and assistance in
selecting financial services and this process creates op­
portunities to develop additional services customers
can utilize. One example is credit cards. In spite of
mass mailings by other institutions in our area, we
have been successful in building our base and volume
of outstandings by individually discussing this service
with customers.
Trust services and investments may be more impor­
tant now than when asset totals and income potentials
were higher. Why? Because the narrower the asset and
income base, the less chance to correct errors. Trust
and investment professionals are needed to help many
people make critical decisions relevant to their estates
and investment portfolios, regardless of size. The right
decision will insure that customer assets and income are
distributed according to their estates’ wishes.
What I am thinking about is cross-selling, which is
an old banking term, but one that can be important to
fees and income for 1986. In general, the banking sys­
tem capital base is much stronger than that of our
competitors. As an industry, we should sell our capital
and our services.
Cost-cutting has been necessary in many banks for
the past couple of years; however, I think we need to be
conscious of the non-interest expense savings vs the
quality of services to our customers. It seems a balance
should be maintained between these two important
areas.
Cautions in the management of banks for 1986 could
include:
1.
Insure you have an adequate loan review pro­
gram.
2.
Adequate loan loss provision/recognizing losses
as they occur.
3. Collection of prior charge-offs.
It is hoped 1986 will be a year of stabilization in our
midwest ag economy. We are looking forward to a
great year and hope you are, too.
□
Northwestern Banker, January, 1986

18

Guidelines
for
down-sizing
Written exclusively for the N orthwestern B anker

L.H. OLSON
President and CEO
Commercial Trust & Savings
Bank, Mitchell, S.D.

HERE are three primary issues to address when
considering a possible downsizing of an organiza­
T
tion’s workforce. These relate to the impact on the or­
ganization, the impact on those whose jobs are elimi­
nated, and the impact on the organization’s customers.
In this article we will present a brief discussion of each
issue, with guidelines to lessen the potential negative
impact.

Impact On The Organization
The first issue to deal with is the impact on the orga­
nization. This relates to both organizational disruption
and the potential for litigation.
Since there will be disruption of the workforce
before, during, and after downsizing, top management
must plan carefully to eliminate that disruption.
Guideline #1. Establish A Realistic Time-Frame.
The information that a reduction in personnel is being
considered very often leaks to the workforce despite all
precautions. Since it usually occurs, it then becomes
important to establish a realistic time-frame from the
moment the decision to downsize is made until the
downsizing occurs.
If several months go by from the time the decision
has been made until the reduction actually takes place,
the rumor mill will be at work within the workforce.
Productivity will go down, as will morale. What is even
worse, employees will have an opportunity to let their
frustration and anger grow, which, in turn, feeds the
environment for litigation.
On the other hand, organizations must be able to

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

DR. RICHARD S. DEEMS
President
Deems Associates
Ames, la.

document why positions and personnel are being elimi­
nated, and that frequently takes time. So what is real­
istic?
A time-frame of several weeks to only a very few
months from point of decision to actual downsizing
seems to be the most beneficial. In general, organiza­
tions will benefit from as short a time-frame as is fea­
sible to gather the data needed to document the reduc­
tions.
Guideline #2. Develop Firm Criteria For Job Elimi­
nation, Have It In Writing, And Administer It Consis­
tently. Any downsizing carries with it the potential for
litigation by terminated employees who may believe
they have been discriminated against. Without estab­
lished written criteria for job elimination which are
equitably administered, an organization opens itself to
discrimination suits. Such suits impact the organiza­
tion in terms of morale of remaining employees, ad­
verse community relations, cost of attorneys, and a
negative image toward the organization by persons
who may in the future be recruited to fill necessary
positions.
One way to measure if affirmative action practices
have been followed is to compile a demographic profile
of the workforce before downsizing; the workforce
after downsizing; and those persons to be outplaced. A
quick analysis can show if there are potential prob­
lems.
Here are two examples: If the workforce is com­
prised of 79% women before downsizing, and 63%
women after downsizing, there may be cause to sug-

19

•

gest that the organization was biased in its selection of
those to be terminated. If, for example, the workforce
prior to downsizing was comprised of 19% persons
over age 50, and 18% persons over age 50 after down­
sizing, it would be difficullt for anyone over that age to
suggest that his or her position was eliminated
because of age.
There are attorneys who now specialize in employee
terminations, from the standpoint of both the em­
ployer and the terminated employee. Some organiza­
tions may find it helpful to seek specialized counsel.
Guideline #3. Implement Effective In-House Com­
munications. In most situations, internal communica­
tions to employees can aid in maintaining morale and
productivity and lessen the ultimate disruption caused
by personnel reduction. These communications must
be open, honest and forthright, and come from the top.
If an organization is involved in a merger or buy-out,
the employee rumor mill will begin almost instantane­
ously with the public announcement. One way to com­
bat this is to communicate to the employees what is
happening, the progress of the merger or buy-out, and
the possible effects it might have on the workforce.
Two banks, involved in merger discussions, issued
weekly update newsletters to all employees from the
time of the first public announcement throughout the
entire merger. Both CEO’s report that the feedback
from employees was very positive, and both are con­
vinced those newsletters were a big factor in main­
taining morale and productivity.
There is, of course, the possibility that some valued
employees may “bail out early” to another organiza­
tion. Our experience is that when this occurs, the
valued employee was already dissatisfied (for whatever
reason) and looking for a new position, or had not been
apprised by top management of his/her value to the
organization.
Communication after a downsizing is also important
as one way of saying, “This is it and we don’t plan on
any more job eliminations.” In one financial institu-

■ ABOUT THE AUTHOR— L.H. Olson is president and chief exec­
utive officer, Commercial Trust and Savings Bank, Mitchell, S.D.
Mr. Olson had 40 years of banking experience with banks in Sioux
City, la., and Waterloo, la. before joining Commercial Trust and
Savings Bank in September. His service in all operating and man­
agement departments of those banks, followed by a decade serv­
ing as CEO, has given him broad experience in dealing with per­
sonnel and human values.
Richard S. Deems is president, Deems Associates, a career de­
velopment and outplacement company with offices in Ames, la.
Nationally recognized for his work with terminated persons, Dr.
Deems is the author of numerous articles, book chapters, and
monographs relating to career transitions and job getting skills.
In addition, he is co-author with John C. Crystal, John C. Crystal
Center, New York, N.Y., (considered by many the top career plan­
ning authority) of a series of articles on redesigning jobs and
dealing with mid-career boredom, and of a new career goal-set­
ting manual to be published in 1986. Deems has himself made ca­
reer transitions. A former clergyman, continuing education direc­
tor, and university faculty member, he founded Deems Associates
in 1982. He has been involved with career planning and career
transitions work since 1975, and has worked with nearly 5,000 per­
sons in career related sessions. His doctorate is from the Univer­
sity of Nebraska-Uncoln, in the field of adult development and
continuing education.

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“The most effective way to help ter­
minated employees is by providing an
outplacement service.”
tion, the president visited each work unit the same day
termination discussions had been held in that work
unit. He reviewed the reasons for the elimination of
positions, explained the benefits and outplacement as­
sistance to be provided terminated employees, and as­
sured those remaining there would be no further termi­
nations. Then he encouraged discussion and questions.
He reported that he received a good deal of verbal
anger and frustration from the remaining employees,
as well as appreciation for his personal visit and can­
didness. He believes it helped greatly in easing the im­
pact on the organization and restoring the workforce
to normalcy in as short a time as possible.

Impact On Terminated Employees
Even when persons lose their jobs because of a
downsizing, and not based on their performance, it is
usually taken personally. Such persons lose their selfconfidence and in their frustration may indeed exhibit
some counter-productive behaviors, such as filing a
suit against the organization. The most effective way
to help terminated employees is by providing an out­
placement service.
Guideline #4. Provide A Comprehensive Outplace­
ment Service. A comprehensive outplacement service
will include several days of group and individual ses­
sions and will enable terminated employees to: identify
their job-career options, test those options, clarify
their life/career values and goals, and design strategies
to turn job hunting into job-getting.
In addition, a comprehensive outplacement program
will include some kind of followup activities, to provide
continued contact and assistance while persons are in
their intensive job search. This followup frequently
consists of weekly group sessions for up to six weeks;
longer if needed.
Why should an organization invest additional dol­
lars into a comprehensive outplacement, when their ob­
jective is to reduce costs? Because a comprehensive
outplacement (much more than ju st a day on how to
write a resume) can ultimately save the organization
money, help maintain the morale of remaining em­
ployees, and result in positive community relations!
Outplacement specialists can help terminated
employees deal with anger and frustration from having
their jobs eliminated, and help such employees under­
stand that it is usually in their own best interest to
find new work as quickly as possible. In addition, an ef­
fective outplacement service frequently can enable ter­
minated employees find new work before they have
used all eligible unemployment compensation, thus re­
ducing the total unemployment liability.
The morale of remaining employees is often mainGUIDELINES FOR DOWN SIZING. . .
(Turn to page 22, please)
Northwestern Banker, January, 1986

20

ADDRESSING the First National Bank of Chicago’s 39th Annual Conference of Bank Correspondents were, left to right in two above
photos: Barry F. Sullivan, chmn.; James K. Suhr, sr. v.p./head, U.S. Fin. Instit. Gp.; Martin T. Farmer, v.p./dir. of legis. affairs; Richard J. Fer­
ris, chmn., UAL, Inc., and Richard L. Thomas, pres.

1st Chicago Correspondent Conference
Speakers Look Ahead to a Good 1986
midwest firms, such as Borg-Warner, John Deere and Allis-Chalmers,
have seen their exports fall from $30
OSITIVE thinking dominated billion in 1980 to $8 billion.” He
the 39th Annual Conference of said Congressional efforts to impose
B ank C o rresp o n d en ts h o sted restrictive, protectionist legislation
November 25 by The First National against other nations “would even­
Bank of Chicago as every speaker tually severely impact our midwest
looked ahead to 1986 and gave few agricultural and industrial exports...
Agriculture is one important reason
backward looks to 1985.
The 350 banker guests and 250 why our nation should torpedo any
spouses from 19 states and D.C. restrictive legislation.”
Mr. Sullivan said avoiding such
were greeted by Barry F. Sullivan,
legislation
“could keep third world
chairman; Richard L. Thomas, presi­
dent; James K. Suhr, senior vice nations from reprisals and help
president and head of the U.S. Fi­ them pay their debts. The well-being
nancial Institutions Group, and of foreign countries will make them
Thomas M. King and James N. Mee­
han, vice presidents, who head re­
spectively the Community Banking
Institutions Division and the Mid­
west Financial Institutions Divi­
sion.
In his address as keynote speaker,
Mr. Sullivan discussed “The Impor­
tance of Avoiding Protectionism in
International Trade.” He said a
broad-based round of negotiations
at the General Agreement on Tariffs
and Trade (GATT), which started
that day in Geneva “is long overdue.
This event is significant to us as
midwest business people. In our
largest midwest industry—agricul­
ture—nearly one of every two dol­
THE Early Bird 7:30 a.m. Ag Session
lars came from foreign trade. This is AT
Thomas M. King (left), v.p./head, Communi­
followed by industrial and machine ty Bkg. Instit. Div., introduced noted ag
newsman Orion Samuelson (right), v.p. and
tools exports.”
Mr. Sullivan said “the 30 largest ag serv. dir. of WGN radio and TV.
By BEN HALLER, JR
Publisher

P


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

better buyers of our exports,
especially of ag products, which will
aid midwest agriculture and farmers
and, obviously, our banks.”
The importance of agriculture to
the midwest and to First National’s
correspondent banks was empha­
sized by the addition of an Early
Bird Agriculture Session, addressed
by the highly respected Orion
Samuelson, vice president and agri­
cultural services director at WGN
AM radio and TV. A large crowd
showed up for the 7:30 a.m. meeting
and was not disappointed.
Mr. Samuelson gave several per­
sonal assessments:
“ 1. American agriculture will sur­
vive. The economy will improve and
surviving farmers will be better.
“ 2. The family farm will survive,
perhaps in a different farm. Corpo­
rate farms will not continue because
there is not enough return to inter­
est investors.
“3. Foreigners will not own our
land.”
Mr. Samuelson said “We’re in glo­
bal competition, but we’ll continue
in the forefront because nowhere in
the world is there a land mass with
all the top ingredients we have here
in the United States.”
The noted announcer then voiced
concern over the great amount of
negativism in the ag industry and
urged bankers to set a more upbeat
pace by finding something positive
to relate to other people each day, as
he is trying to do.
In closing, Mr. Samuelson said
“ I ’m now talking to farmers who are
buying land now that will cash flow.

ADDRESSING the afternoon general session were, left to right: Lawrence C. Russell, exec, v.p., service products dept.; Nicholas M.
Graves, sr. v.p./head, North American bkg. gp., and George L. Davis, exec, v.p./head, corporate bkg. dept. RIGHT—Taking part In the Mar­
ket Outlooks panel were, from left: Seated— Mr. Suhr, moderator; Jeffrey J. Diermeier, man. dir., First Chicago Investment Advisors, and
Stephen C. Diamond, sr. v.p., corp. bkg. dept. Standing— David J. Vitale, sr. v.p./head, fin. mkts. div., and Roy E. Moor, sr. v.p./chief econ./
head, economics dept.

One Illinois farmer told me he is
buying 600 acres and paying cash!
When I asked how he could do that
he told me, ‘I ’ve farmed the money
markets the past 10 years and now I
can farm my own market!”
Mr. Samuelson closed by stating
he is not convinced the cash rent ap­
proach is better — “What happened
to the old 50-50 deal where each par­
ty shared equally in the ups and
downs of farming?”
The first general session, after
brief welcome remarks from Mr.
Thomas and Mr. Suhr, featured the
“Market Outlook” panel. Partici­
pants were Dr. Roy E. Moor, senior
vice president/chief economist and
head of the economics department;
David J. Vitale, senior vice presi­
dent and head, financial markets di­
vision; Jeffrey J. Diermeier, manag­
ing director, First Chicago Invest­
ment Advisors, and Stephen C. Dia­
mond, senior vice president, corpo­
rate banking department.
Dr. Moor expects business condi­
tions in 1986 and to 1990 to be about
as they were in 1985; inflation will
rise to 4% in 1986; short-term rates
will decline about 50 basis points by
mid 1986, and the Fed Funds rate
decline could be somewhat more. He
expects loan demand increase in
1986 to be less than 1985, but sees
most categories of deposits to have
stronger growth than in 1985.
Luncheon guest speaker Richard
J. Ferris, chairman of UAL, Inc.,
spoke bluntly and directly to the
steps bankers need to expect and
follow as deregulation takes its toll
in the banking industry. After giv­
ing much information on how
United Airlines had to change to

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meet airline deregulation, Mr. Ferris
gave these closing remarks:
“Some of you here today probably
are opposed to deregulation of the
banking industry. You’re probably
questioning its long-term effects.
And you’re probably uncomfortable
with the idea of competing in a new
environment.
“But whether you welcome dere­
gulation or resist it, the fact is bank­
ing is getting a taste of it. And like
it or not, there’s no time for quiet
evolution. You must change quickly.
“If you can’t compete effectively
in a deregulation environment,
you’re out of the ball game from the
opening kickoff.”
The afternoon general session fea­
tured George L. Davis, executive
vice president and head of the cor­
porate banking department, and
Lawrence C. Russell, executive vice
president and head of the service
products department.
The balance of the afternoon was
devoted to two workshops, featur­
ing talks by First National officers
on investment services, A/L man­
agement, community involvement
and strategic planning, and a final
speaker on retail banking.
A special event at the start of the
afternoon session found Illinois
Governor James Thompson making
a special appearance to sign the
newly-enacted Illinois law authoriz­
ing regional banking with contigu­
ous states. It was a media event at­
tended by a number of legislators
and representatives of the Illinois
Bankers Association.
The conference concluded with
the banquet, which was addressed
by CBS TV host Diane Sawyers. □

Daktronics Again Supplies
Olympic Scoreboards
Daktronics, Inc., of Brookings,
S.D., has been awarded the scoreboard contract for the 1988 Olympic
Winter Games by the Calgary Olym­
pic Organizing Committee. The offi­
cial contract signing ceremony was
held in Calgary, Alberta Canada
November 22. Frank King, chair­
man, and William Pratt, president,
represented the Calgary Olympic
Organizing Committee, and Dr.
Aelred Kurtenbach, president, rep­
resented Daktronics, Inc. Nordic
Neon of Edmonton, Alberta, Dak­
tronics dealer, was represented by
Don Hamilton, president.
Daktronics, Inc. and its subsidi­
ary Daktronics Leasing Company
are jointly responsible for the de­
sign, manufacture, installation and
commissioning of eight scoreboards
to be used at the following sports
venues:
• Alpine (Downhill and Slalom),
Bobsled/Luge, Cross Country/
• Biathlon, Figure Skating, Free
Style Jump, Ski Jump, and
• Speed Skating.
On-site technical support for cer­
tain Pre-Olympic and all Olympic
events are included as a part of the
contract.
At the 1980 Olympic Winter
Games in Lake Placid, N.Y., Daktro­
nics was the official scoreboard sup­
plier.
Dr. A1 Kurtenbach and Jim Mor­
gan, vice president, were responsible
for negotiations. Jim Anderson is
project manager. Initial deliveries
start in 1985 for use at Pre-Olympic
and Canadian National events.
Northwestern Banker, January, 1986

22

day-to-day questions, and periodic
bulletins and newsletters to the
banking community. Collin W. Fritz
& Associates also will provide con­
variations available to the consumer sulting services including pension
and the federal regulations that plans, forms and contracts, as well
govern those pension plans. Our as seminars for bank personnel.
joining with Collin W. Fritz &
Associates means that we’ll now be United Missouri Bank
able to offer a premier package of
Announces Promotions
pension services.”
United Missouri Bank of Kansas
In addition to providing enhanced
pension services to banks in the mid­ City, N.A., has announced the pro­
west, Collin W. Fritz & Associates motions of three officers to execu­
also provides BICS the opportunity tive vice president in the trust de­
to expand into the national market. partment. They are:
Edward J. McShane, Jr., in
Collin W. Fritz & Associates has
consulting relationships with many charge of trust and custody services;
of the banking associations across Robert E. Reiter, manager of em­
ployee benefit services, and E.
the country.
Areas of responsibility that Collin Frank Ware, in charge of securities
W. Fritz & Associates will assume services and United Missouri’s New
for the new pension specialists York office.
Mr. McShane left private law
group include: marketing and sales,
compliance and regulatory support, practice to join United Missouri
a hot line phone number to answer Bank in 1967. He has a BA in Eco-

BICS Joins Collin W. Fritz & Associates
To Form a Pension Specialists Group
ICS (Banks of Iowa Computer
Services), an independent subsi­
B
diary of Banks of Iowa located in
Cedar Rapids, has joined Collin W.
Fritz & Associates Ltd., a pension
specialist group from Brainerd,
Minn., to expand the menu of pen­
sion services for both companies.
Collin W. Fritz & Associates has
been providing IRA, SEP, HR-10
(Keogh) and Qualified Plan consult­
ing on a private basis for over a
decade.
Recognizing the need for ex­
panded pension services, BICS be­
gan providing administrative assis­
tance for IRA, Keogh and various
pension plans more than a year ago.
Rose Mary Illian, BICS product
manager says, “The whole area of
pension services has become more
and more complex because of the

GUIDELINES FOR DOWN SIZING. . .
(Continued from page 19)
tained as they see their friends and former co-workers
receive needed assistance in finding new work. Also,
remaining employees know that help will be provided
them, if additional reductions are ever made.
When terminated employees receive outplacement
assistance they tend to let their friends and relatives
know about the help being received. This, in turn, can
lessen any negative impact on the consuming public
toward the employer.
Experienced outplacement consultants can help ter­
minated employees understand, and accept, what is in
the employee’s best self- interest. This usually includes
finding new work as quickly as possible, becoming
more pro-active in taking care of one’s career, and ex­
cludes litigation.
Guideline #5. Begin The Outplacement Service The
Day Termination Discussions Are Conducted. If an
outplacement service is to produce intended results it
is essential that the outplacement consultants meet
with terminated employees the same day the termina­
tion discussion is conducted. When there is a gap in
time between the termination discussion and the
beginning of the outplacement service, employees have
a tendency to let anger and frustration build. Fre­
quently, this anger leads to the employee refusing to
take part in the outplacement, simply because it is pro­
vided by the company. When that occurs, those em­
ployees are typically the ones who take the longest to
find new work, and who seriously consider litigation.
When the outplacement consultants are able to meet
with persons immediately after the termination discus­
sion, the consultants are able to take the brunt of the
anger, and to help the terminated employees begin the
healing process of successfully dealing with their situa­
tion and acting in their own best self interest.
Northwestern Banker, January, 1986


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Federal Reserve Bank of St. Louis

Impact On Consumers
The nature of the banking business creates a strong
relationship between banker and consumer. Since
banks offer identical services at comparable prices,
business is obtained and retained by personal service.
It is essential, then, that when downsizing occurs it
has as little impact on the consuming public as possible.
When the Guidelines are followed, an organization
increases the probability that remaining employees
will maintain high morale and positive public relations,
and that terminated employees will not be making dis­
paraging remarks about the organization to family and
friends. There is yet one more thing an organization
can do.
Guideline #6. Prepare Effective Media Announce­
ments. By taking the initiative and preparing well
worded releases for the media, the chances of street
rumors are lessened, and the releases can focus on
what the organization believes is important. In addi­
tion, top management can agree on what is to be said
in interviews, and then make themselves available
when asked for such media interviews.
The releases and interviews can summarize the ac­
tions taken, the reasons why (briefly), and the services
to be provided those whose jobs have been eliminated.
In this way the organization can maintain its image as
a responsible financial institution, which also cares
about its employees and the community.

Summary
There is always disruption in any downsizing situa­
tion. The organization’s management team can lessen
the impact by anticipating problem areas and carefully
planning so as to lessen the disruption as much as
possible. Though each situation is unique, these Guide­
lines can help decision makers understand the issues
and design the procedures which will produce minimal
negative impact and which will enable a quick return
to organizational effectiveness.
□

23
nomics from Benedictine College
and an LLB from the University of
Missouri.
Mr. Reiter, who holds a law de­
gree from St. Louis University and a
master of laws degree from the Uni­
versity of Missouri, left practice to
join UMB in 1969.
Mr. Ware joined the bank in 1969.
He holds a degree from Central Mis­
souri State University and his MBA
from the University of Missouri.
Also in the trust department,
David Roberts was promoted to se­
nior vice president in charge of the
personal trust and probate division.
He holds a law degree from Creigh­
ton University in Omaha, and
worked for a bank there prior to join­
ing UMB in 1977.
Donald P. Edinger was promoted
to vice president in personal trust
administration. He joined the bank
in 1978. Also named vice president
and responsible for bond processing
in the trust department is Duane E.
Schemp. Michael N. Helmuth and
Diane Howard were named assis­
tant investment officers.
Other promotions at United Mis­
souri Bank included: Steven P.
Okenfuss to senior vice president
and manager of the installment loan
department. He joined the bank in
1977 and holds a bachelor’s degree
in Journalism from the University
of Missouri-Columbia. Stephen Fitz­
simmons and Cecilia K. Adam were
elected bank services officer, and
JoAnne Owens was elected an assis­
tant operations officer and manager
of the bank’s telecommunications
system.

Continental Bank Free from
Special Funding Support
Continental Illinois National
Bank and Trust Company of Chi­
cago in December disbanded the
special network of banks that helped
provide a funding “ safety net” as
part of a comprehensive financial
assistance program following its li­
quidity crisis in May, 1984.
John E. Swearingen, chairman
and chief executive officer of Conti­
nental Illinois Corporation, and
William S. Ogden, chairman and
chief executive officer of Continental
Bank, said in a joint statement:
“One of the critical elements of
Continental Bank’s recovery plan
was the special facility provided by
the Federal Reserve and the special

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Federal Reserve Bank of St. Louis

Survey Says 29% of Meetings Wasteful
HE FINDINGS of a just-completed nationwide survey of
T
business meetings are so surprising
that many companies will probably
hold a meeting to discuss them, ac­
cording to Robert Half, president of
Robert Half International, based in
New York.
According to the survey, which
was developed by RHI, the world’s
largest financial executive, account­
ing and data processing recruiters,
the average executive spends the
equivalent of 21 work weeks in busi­
ness meetings each year.
funding facility provided by a net­
work of other banks. At its peak in
August, 1984, this assistance to­
taled almost $12 billion. With our
action today, it is completely repaid.
The over-market rate of interest we
have been paying on the special
funding facility is now eliminated.
We now stand on our own feet in all
the financial marketplaces of the
world in securing funding for our
operations.
“The action taken today is the re­
sult of a great deal of effort on the
part of Continental Bank employees
worldwide. Rebuilding confidence
and charting new directions is never
easy. Our task ahead is to build a
new Continental Bank for our custo­
mers and stockholders. We look to
the future with great confidence and
with appreciation to the Federal Re­
serve and to those banks who helped
make this possible through special
facilities in our time of greatest
need.”
Discontinuing usage of the special
bank funding, network, which has
totaled $866 million Oct. 1, 1985,
means Continental can fund itself
without such assistance for the first
time in more than one and one-half
years. Continental has not borrowed
from the Federal Reserve in more
than three months.
At its peak usage, Continental
was borrowing $4.1 billion from the
bank group. Combined borrowings
from the “safety net” banks and the
Federal Reserve reached $11.7 bil­
lion on Aug. 13, 1984, and had
dropped to $7.1 billion on Aug. 31,
1984. Since the first quarter of 1985,
usage of the facility has been re­
duced regularly until it reached its
present level at the end of the 1985
third quarter.

“What is disturbing,” observed
Mr. Half, “is that the survey, which
was conducted for us by an indepen­
dent research firm, revealed that six
of those weeks of meetings are a
waste of time.”
The survey was based on inter­
views with vice presidents and per­
sonnel directors of one hundred of
the nation’s 1,000 largest corpora­
tions.
The respondents were asked:
Within an average work week, how
many hours do you think the aver­
age executive in your company
spends in business meetings? Their
estimate was 16.5 hours, which
translates into 825 hours during the
course of a 50 work-week year, or 21
forty-hour weeks annually.
Their response to the question: In
your opinion, what percent of these
business meetings are wasteful or
unnecessary? was 29% — which
equals full 40-hour work weeks each
year.
“Looking at it another way,” says
Mr. Half, “during the course of nine
years, the average executive may
spend the equivalent of one year of
his or her working time attending
meetings that are a waste of time.”
“Clearly,” he concluded, “the
meeting of the minds can be costly.”

□

American National, Chicago
To Sell EDP Subsidiary
American National Bank and
Trust Company of Chicago, the
city’s fifth largest bank, has entered
into a definitive agreement with a
private investor group for the sale of
Tel-A-Data Corporation, a data pro­
cessing subsidiary of the bank. The
sale will be completed in early 1986.
Tel-A-Data has provided data pro­
cessing services for the past 25
years to financial institutions in the
Chicago area, primarily banks and
savings and loan associations. An­
thony A. Scerba, a member of the in­
vestment group and current presi­
dent of Tel-A-Data, will remain with
the company as chief executive offi­
cer. In addition to Mr. Scerba, all
present employees, who number ap­
proximately 50, will be retained.
The company will continue to
market its services under the Tel-AData name and plans to open a new
facility in Lombard in early 1986.
Northwestern Banker, January, 1986

Some things have to change.
At Marquette Bank Minneapolis, we feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it s h o w s . . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our w illingness to roll up our
sleeves, to work w ith you, to deliver all the

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

Marquette Bank
Minneapolis

Member FDIC

Correspondent Services Division


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Federal Reserve Bank of St. Louis

25
iness Sense” call the chamber at
218/829-2838 or First American
Bank marketing department at 218/
829-8781.

Addition in St. Cloud
Jerome D. Schwarzbauer has re­
cently joined the staff of the First
A m erican N a­
tional Bank of
S t. Cloud as
manager of the
b a n k ’s
Rice
b ra n c h .
Mr.
Schwarzbauer
graduated from
the U niversity
of M in n e s o ta
majoring in agri- J.D. SCHWARZBAUER
culture. He was employed from 1969
to 1985 by the Production Credit
Association.
Promoted in Albert Lea
Norwest Bank Albert Lea, N.A.
recently announced the promotion
of Gerald K. Johnson to the position
of vice president-commercial bank­
ing.
Mr. Johnson joined Norwest
Bank Albert Lea in 1983 as a real
estate loan officer and has served as
assistant vice president commercial
loans since 1984.
Mr. Johnson began his banking
career at Norwest Bank Marshall in
1975 and was transferred to Nor­
west Bank Ortonville in 1980.
MBA Sponsors Workshop
The Minnesota Bankers Associa­
tion Communications Committee
will sponsor a workshop on “What
to do with the Death of Reg. Q” at
three locations: January 14 at the
Holiday Inn, North Mankato; Janu­
ary 15 at the Holiday Inn Interna­
tional, Bloomington, and January
16 at the Holiday Inn, Alexandria.
Effective March 31, 1986, federal
regulators will no longer have the
authority to set interest rate ceilings
on deposit accounts. The workshop
program will explore financial pro­
duct development opportunities in
this deregulated environment.

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Federal Reserve Bank of St. Louis

G. Michael Moebs, president of
G.M. Moebs and Associates, Chi­
cago, will conduct the program. Mr.
Moebs is publisher of Pricing Stra­
tegy, a monthly newsletter devoted
to tracking the pricing and product
development of services and pro­
ducts in the financial services indus­
try. With over ten years of banking
experience, he is a frequent speaker
and annually gives many seminars
and workshops on pricing and pro­
duct development of financial ser­
vices.
Sponsored by Brainerd Bank
“Business Sense—Ideas for Im­
mediate Use,’’ is the title of a twelve
month series of business seminars
co-sponsored by First American
Bank in Brainerd and the Brainerd
Area Chamber of Commerce.
Each two hour session will be of a
“nuts and bolts” nature providing
business owners and managers with
insight into the world of finance.
The series will be held at the Holi­
day Inn, Brainerd, from 4:00-6:00
p.m. on the third Tuesday of each
month, beginning in January.
Each session will focus on a dif­
ferent topic including: applying for a
business loan, business legal struc­
ture, preparing a business plan, un­
derstanding financial statements,
and cash flow management.
The seminars are free and atten­
dance is limited to 30 people per ses­
sion. These seminars are for all
businesses in the area and you are
not committed to attend all twelve
sessions, but rather select those
topics that best meet your needs and
interests.
First American originated the
“Business Sense” seminars to pro­
vide area businesses with ideas and
tips on managing their businesses’
financial matters. Each session will
provide practical information that
can be put to immediate use in the
business.
For more information on “Bus­

Sponsored by MBA
Dr. Leonard J. Santow, managing
director of Griggs and Santow, Inc.,
New York, will
he ad li ne the
1986 MBA In­
vestm ents and
Funds Manage­
ment Conference
W ednesday,
January 29, at
th e R a d i s s o n
H o te l Metrodome in Minnea­
polis. The con­
ference is sponsored by the MBA In­
vestments and Funds Management
Committee.
Dr. Santow is co-author of the
Griggs and Santow Report, a weekly
letter analyzing developments in the
money and capital markets. He is
currently a member of the executive
committee of the monetary policy
forum, an organization composed of
prominent economists who have a
special interest in the Federal Re­
serve’s formulation of policy. He is
also involved in the senior manage­
ment (including various investment
committees) of a number of major
corporations.
MBA President Clinton Kurtz
has also announced the second year
of MBA sponsorship of Minnesota
Business Venture, a one-week pro­
gram on business and economics for
high school students. Last year,
member banks of the MBA contri­
buted nearly $22,000 in scholarships
to enable students to attend Min­
nesota Business Venture which is a
program of the Business Economics
Education Foundation.
During the program, which is held
at St. Olaf College in Northfield,
students form “companies”, listen
to prominent business and govern­
ment leaders, and work on compu­
terized simulations. According to
Mr. Kurtz, president of Citizens
State Bank of Norwood, Minnesota
Business Venture was expanded last
year to two one-week sessions with
support from Minnesota banks. This
year’s sessions will be July 27-August 2 and August 3-9, 1986. Any in­
terested sophomore, junior, or
senior high school student should
contact their high school principal
or local commercial bank.
Northwestern Banker, January, 1986

26

On December 4 the Federal Home
Loan Bank Board approved the larg­
est financial merger in Minnesota
history when it gave permission for
Minnesota Federal and First Fed­
eral to form First Minnesota Sav­
ings Bank on January 1, 1986.
The merger will create a savings
institution with the largest branch
office network in the state. In addi­
tion, First Minnesota will have more
than $3 billion in assets, second
among Minnesota savings institu­
tions.
Minnesota Federal and First Fed­
eral customers will automatically be
able to conduct all of their banking
transactions at any First Minnesota
location, said First Federal presi­
dent and chief operating officer Ken­
neth D. Olson, who will be president
and chief operating officer of the
new institution.
Minnesota Federal Chairman and
President Gordon R. Mosentine will
serve as vice chairman and CEO of
First Minnesota. First Federal
Chairman Wilfred E. Lingren will
become chairman of First Minne­
sota.
* * *
Allison-Williams Company, a
Minneapolis investment banking
firm, has an­
nounced the pro­
motion of John
Clarey to presi­
dent and chief
executive offi­
cer, a new posi­
tion in the com­
pany. He had
been chief oper-

vestment banking and finance, ac­
quired with several companies.
Among his accomplishments with
the firm are his expansion of its pro­
ject line beyond municipal and cor­
porate finance into such areas as
real estate financing and limited
partnerships.
* * *
Norwest Corporation has named
Patrick T. McGuire senior vice pres­
ident and chief
auditor. He has
been associated
with The Pillsbury Company,
M inneapolis,
since 1973 when
he joined the
firm as senior
auditor. He was
promoted to gen­
eral auditor in
P-T- MCGUIRE
1982. Previous experience includes
service as a systems analyst and se­
nior auditor for Blue Cross and Blue
Shield of Minnesota, and as a cost
analyst with Gould, Inc., Minneapo­
lis. His career began in 1967 when he
joined General Mills, Inc., Minnea­
polis, as a management trainee in
electronic data processing.
* * *

American National Bank of Saint
Paul has promoted two and elected
three new officers.
Jane K. Dodge has been promoted
to vice president—consumer bank­
ing, and is man­
ager of the per­
sonal banking
and custo me r
service depart­
m e n ts .
She
joined American
in 1982 as assis­
tant vice presi­
dent and perso­
n al
banking
J.K. DODGE
manager. Prior
to that she was employed by F&M
Savings Bank for over seven years.
Sandra K. Johnson has been pro­
moted to assistant vice presidenttrust and joined American’s trust
division in 1969. In her present posi­
tion, she manages the corporate
trust department.
Sylvia S. Cross was elected per­
sonal banking officer and is coordi­
nator for American’s senior citizens
programs. She joined the bank in
1980 and her most recent position
was business development represen­
tative.
James A. Conrad was elected
commercial banking officer and is an
account representative in the air­
craft division. He joined the bank in
1984 as a credit analyst in the con­
struction department and was then
promoted to commercial banking
representative.
Mary Ann Orfei was elected in­
vestment officer and is a sales repre­
sentative in the bond and invest­
ment department. She joined Ameri­
can in 1978 and has held positions in
the auditing and bond areas.

James L. Boettner has joined Bre­
mer Financial Services, Inc. as vice
president/director of human re­
sources. Bremer Financial Services
provides staff services for the Bre­
mer Financial Corporation group of
26 banks and 37 bank-related affili­
ates in Minnesota, North Dakota
and Wisconsin. Mr. Boettner served
in various capacities at Norwest
a tÌ"g
° ffÌC e r
J. CLAREY
Corporation from 1970 to 1985.
* * *
since 1983.
Mr. Clarey joined Allison-Wil­ Most recently he has been human re­
Robert Woodcock has joined FBS
liams in 1980 as vice president of the sources manager for a group of five
municipal division. He brought to southwest Minneapolis and subur­ Insurance as regional vice presidentmetro and agency manager of the
the firm 17 years of experience in in­ ban Norwest banks.


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

Minnesota News

27

commissions on the purchases of
stocks and bonds, which are not tax
deductible. There are no fees or com­
missions for purchasing mutual
funds, certificates of deposit, or
money market savings fund.
* * *
FBS Mortgage Corporation, a
wholly-owned subsidiary of First
Bank System, Inc., has announced
the issuance of its first mortgagebacked security for $13.9 million. A
mortgage backed security is a pack­
aging technique that groups mort­
gages of residential properties
together to be used as collateral to
sell a security offering.
This direct issue was privately
placed with an institutional inves­
tor and was backed by residential
TAKING part in First Banks’ Rostrum ’85 were, from left: Dale S. Hanson, pres., First Bank
St. Paul; Paul Craig Roberts, featured speaker, economist, Georgetown University, Wash­ first mortgage loans on properties in
ington; William F. Farley, pres., First Bank Minneapolis, and Richard W. Schoenke, pres. & the Twin Cities area. The loans were
mgr., metro div., First Bank System. Initiated in 1980, the Rostrum Series brings nationally originated and are being serviced by
recognized social and economic experts before corporate and community decision FBS Mortgage. First Bank Minnea­
makers. This year’s Rostrum featured Paul Craig Roberts and Alan Baron, editor and pub­ polis provided a letter of credit and
lisher of The Baron Report.
is acting as custodian.
FBS Mortgage intends to con­
tinue to issue mortgage-backed se­
company’s First Insurance Valley cates of deposit, and the bank’s curities and anticipates larger pack­
View office in Bloomington, Minn.
money market savings account, and ages during 1986, according to Mark
Mr. Woodcock had previously funds may be transferred into any of L. Korell, FBS Mortgage managing
been a vice president at Alexander & the other investment options.
director and chief executive officer.
Alexander, Inc. in Minneapolis and
The depositor, Mr. Brunner
* * *
St. Paul. During his seven years stated, may change investment stra­
with Alexander & Alexander, Mr. tegies at any time and instruct the
Children Are People, Inc., St.
Woodcock had served as service/pro- bank to transfer money, liquidate in­ Paul, recently received a $2000
duction unit manager and member vestments or make new purchases. grant from First Bank Saint Paul to
of the operating committee and had The money market savings account assist with the Support Group Pro­
most recently been responsible for is the ongoing depository for funds ject during 1986. Children Are Peo­
mass merchandising and telemar­ moving from one investment option ple, Inc. is a nonprofit agency that
keting activities in the St. Paul of­ to another, interest or dividends specializes in chemical dependency
fice.
earned on investments and IRA in­ prevention for children ages 5-12.
* * *
vestments in future years.
The agency was established in 1977,
Five mutual funds are available, to avert chemical abuse by children
American National Bank of St. distributed by Pittsburgh-based from chemically dependent environ­
Paul has begun offering a new indi­ Federated Securities Corp., a whol­ ments.
vidual retirement account which ly-owned subsidiary of Federated
The Support Group Project pro­
provides depositors with a variety of Investors, Inc., the nation’s second vides children with alternative ways
investm ent alternatives beyond largest mutual fund management of responding to chemically depen­
bank certificates.
company. Stocks and bonds are dent home atmospheres, education
American National’s self-directed available through a discount broker­ about chemical dependency as an ill­
IRA is the first of its kind to be of­ age service provided by Wall Street ness, a sense of trust with adults
fered in St. Paul. According to H. Clearing Corp. American National through counselors who are consis­
Joseph Brunner, senior vice presi­ Bank acts only as the customer’s tent role models, and a vehicle for in­
dent, “The IRA is the fastest grow­ agent for trading in stocks, bonds, creased self-esteem and self-aware­
ing consumer investment in the and mutual funds with Federated ness in children.
U.S., and self-directed IRA’s are the Securities Corp. and Wall Street
“The project already boasts an
fastest growing segment of the IRA Clearing Corp. acting as the brokers. outstanding record with more than
market. Clearly IRA investors are The bank will handle transactions 3,000 children and 1,000 parents
looking for more options and more for all bank investments such as cer­ having participated,” says First
flexibility, as their accounts become tificates of deposit and money mar­ Bank Saint Paul Senior Vice Presi­
more substantial.”
ket savings.
dent John Taylor, public affairs.
He said self-directed IRA inves­
Mr. Brunner said the self-directed “Through the grant, we hope to sup­
tors may choose from one or more of IRA has a $25 opening fee and $25 port their fine effort and help con­
five investment options: stocks, annual fee, both of which are tax tinue this important community
bonds, mutual funds, bank certifi­ deductible. The depositor also pays program.”

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Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1986

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Federal Reserve Bank of St. Louis

GETA
NEW READING
ONTHE
VITAL STATISTICS.
Stay on the pulse of today’s m arket.. .with the help of First
Wisconsin’s investment specialists.
We put people and resources to work for you all day, every
day: monitoring the ups and downs, interpreting trends, evaluating
today’s complex financial environment, and distilling critical, upto-the-minute market information.
And we’ll help you actively manage your
portfolio to achieve your investment strategy,
responding quickly when you need advice,
recommendations, and accurate order
execution.
Get to the heart of the m arket—and
start building a stronger, healthier portfolio
today. Call your First Wisconsin correspon­
dent banking officer at (414) 765-4459.
WHENPERFORMANCECOUNTS.

"

HI

FIRST WISCONSIN
©FWC 1986


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Federal Reserve Bank of St. Louis

30

Minnesota News

Norwest H osts Management Conference
By BEN HALLER, JR.
Publisher
ANKERS from across the up­
per midwest attended Norwest
B
Corporation’s 21st Annual Ex­
ecutive Management Conference in
early December and were guests
with their spouses that evening for
the traditional Duck Dinner. They
were welcomed by Lloyd Johnson,
chairman, president and chief ex­
ecutive officer of the corporation,
and by Jim Campbell, president of
Norwest Bank Minneapolis. More
than 500 bankers and 150 spouses
attended from 400 banks.
Mr. Johnson announced that
John Sampson, vice president, has
been appointed, effective January 1,
to head the important Financial In­
stitutions Group which services cor­
respondent banks and other finan­
cial institutions. In that capacity, he
succeeds Darin Narayana, who will
now devote full-time to the interna­
tional division which he also headed.
Leo Hauser, president of Hauser
Productions, Minneapolis, was a
good choice for opening speaker on a
program put together by Richard
Erickson, vice president of Norwest.
As a motivational speaker, Mr.
Hauser reviewed quickly some of
the basics he incorporates into his

training seminars he presents to
bank staffs to improve marketing
and public contact techniques.
Referring to the years of hard work
and success that have brought many
banks to the point where they are to­
day, Mr. Hauser stated, “When we
stop being successful is when we
stop doing the thing that made us
successful!” Mr. Hauser said he ad­
vises bank personnel who are hesi­
tant about “selling” bank services
that “the most effective way to gain
self-confidence is by giving it to
someone else.”
A three-man panel discussed
“White Collar Crime” as it pertains
to banks. Participants were Don
Miller, chairman of the ABA Data
Security Committee and vice presi­
dent, First National Bank of
Chicago; Thomas R. Parker, super­
visory special agent, FBI White Col­
lar Crimes Program, and Robert C.
Huber, founder, Dataline Corpora­
tion.
Mr. Miller quoted statistics from
the Computer Security Journal of
1983 to show that from 1958-1981
there were 849 reported cases of
computer crime. By industry, he
said, banks had the most such
crimes and the government was se­
cond, with all such losses now total­
ing $3 billion. The ABA’s own

LEFT-(Standing) Gary Stern, pres., Federal Reserve Bank, Minneapolis; B.P. Pete Allen,
Jr., pres. & ceo, 1st Natl., Milaca; Truman Jeffers, exec, v.p., Minnesota Bkrs. Assn., Min­
neapolis; Lloyd O. Johnson, chmn. & ceo, Norwest Corp., and Jim Miller, dep. commiss.,
Minnesota dept, of commerce/banks. (Seated) C. Paul Lindholm, pres. & ceo, Bank of
Maple Plain; Leila Jeffers, Rosie Johnson and Marlys Lindholm.

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

report shows losses of $145 million
to $730 million yearly for the reporting period, averaging from $2
million to $10 million per case. A
disturbing statistic he related in
regard to fraud and abuse on com­
puters is that 50% of the cases are
discovered by accident, while con­
trols and audit each uncovered only
25% of them.
Mr. Parker noted that while the
FBI still has 8800 agents as it did in
1980, the number of law violations
for which it is responsible to in­
vestigate have increased from 180 to
260. He said, “Most local authori­
ties are capable of handling the bulk
of crimes committed, so the FBI has
been able to pull back to some
degree by narrowing its focus to
those crimes beyond the reach of
local law enforcement officers. The
ones with the greatest impact on the
public become our tasks. One of our
five main areas on which we concen­
trate is white collar crime. In the
past year, the FBI spent 25% of its
funds on white collar crime of all
kinds. The largest dollar losses in
history have been perpetrated in the
past four or five years—$11 million,
$23 million, $40 million.
“The average crime against a
bank was $6,500. The average em­
bezzlement was $38,000. But the
average computer loss we in­
vestigated last year was over
$400,000! The problem is here to
stay and is growing in size.”
He urged banks to trust the FBI
and law enforcement agencies in­
stead of trying to investigate such
crime themselves. “Don’t put off
notifying us,” he said. “For ex­
ample, one bank discovered a
$250,000 embezzlement. Two days
later, two senior auditors of the
bank went to the employee’s home
to confront him with the evidence.
He met them at the door, shot and
killed both of them, then committeed suicide.”
Barry Asmus, national speaker,
author and economist from Phoenix,
Ariz., talked about “The Economics
of Reality.” Dr. Asmus is wellknown to many banker audiences for
his appearances in recent years at
conventions when he was economics
professor at Boise State University.
His theme for this talk was, “When
you reward an economic venture you
get more, when you penalize it, you
get less—th a t’s reality!” He said the
role of management is to make peo­
ple more productive, acting as

#

Minnesota News

31

LEFT—James R. Campbell, pres., Norwest Bank Minneapolis; Mike Pint, chmn. & ceo, Metro Bank, Minneapolis; Jean Farrer, atty., Faegre
& Benson, Minneapolis, and W. James Armstrong, chmn. & ceo, Norwest Bank Minneapolis. RIGHT—G.M. Mike Pieschel, pres. & ceo,
Farmers & Merchants State Bk., Springfield, and his wife, Jodi; Ernest C. Pierson, chmn. & ceo, Norwest Bank Midland, and Mona Lund,
Albert Lea (her husband, Herb, pres. & ceo of Security State Bank, is out of picture at right).

teacher, mentor, facilitator to create
the right kind of incentive system,
always remembering that reward is
the mainspring. “Make your people
feel part of the team,“ he stated, “as
though they are owners, even if they
don’t own stock.’’
Dr. Asmus devoted the rest of his
talk to looking at the size of govern­
ment, its budget deficits and over­
spending, and recalled a warning of
Thomas Jefferson, “Government is
like a fire, but once it gets out of the
stove—look out!” He added, “and at
22-25% of GNP, the fire’s out of the
oven.”
A second panel titled, “ Is Tech­
nology Driving Banking Or is Bank­
ing Driving Technology?” was
moderated by Ed Baker, Norwest
senior vice president in charge of
selling computer services and the
Alliance Banking program. He in­
troduced the following panelists:
Ted DeMerritt, president and CEO,
ISC Systems Corporation, Spokane,
Wash.; Roy E. Kuntz, director of ap­
plied research, NCR, Dayton, Ohio,
and John Burgdorfer, director, fi­
nancial services industry marketing,
IBM Corporation.
Mr. Burgdorfer said “technology
is not driving banking but is a key
factor. I see banks doing more
things with technology—reducing
non-interest expense, revising their
balance sheets, increasing produc­
tion.” He cited several examples:
Reducing communications costs—
new devices for voice and document
transmission, document handling
systems, non-return of checks. SelfService Banking. New Media De­
vices—Smart cards, integrated cir­
cuit cards to replace present plastic
cards. Re-Structuring Balance
Sheets.

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Federal Reserve Bank of St. Louis

Mr. Burgdorfer said “we expect
service and geographical boundaries
to be dropped and your opportuni­
ties will come in the retail marketing
area, so greater emphasis will be
needed on marketing expertise.
You’ll need the right people so
choose carefully, make sure they un­
derstand and can adapt to the re­
quirements of more sophisticated fi­
nancial servicing.”
Mr. Kuntz echoed that look ahead
when he said, “Banks have an ex­
ploding number of services, most of
which are going to end users in the
street and most of whom don’t know
how to operate your system. You’ll
need to hire and train more people
who understand your business and
can serve those customers...Bankers
need to understand enough techno­
logy so that you will know what we
have to offer to help you solve your
problems and meet your opportuni­
ties. Our job is to keep you aware of
that technology so you’ll know what
we have to match with your needs at
the appropriate time—even 10 years
down the road.”
Mr. DeMerritt stated flatly,
“Technology should not drive bank­
ing, but banking should drive tech­
nology... It is better to do R&D to
select technology that will perform
what needs to be done, or develop
it.” After listing some items he felt
were important to consider in that
research or development, he closed
by saying “In the optimal situation
we take advantage of your under­
standing and needs of your market
place, and you take advantage of our
technology.”
M innesota’s U.S. Sen. Rudy
Boschwitz was scheduled to appear
as final speaker on the afternoon
program but was detained in Wash­

ington because of important discus­
sions being held at that time on the
Farm Bill and the Farm Credit Sys­
tem bailout bill. However, Norwest
arranged a life appearance via satel­
lite at 5:00 p.m. and through this
NORWEST CONFERENCE. . .
(Turn to page 54, please)
Promoted in Rochester
Norwest Bank Rochester recently
announced the promotion of Jody L.
Bower, commercial real estate lend­
ing officer, to assistant vice presi­
dent.
Ms. Bower has been with Norwest
Bank since 1983 working in the com­
mercial real estate lending depart­
ment and was elected an officer in
1984.
Prior to working at Norwest Bank
Rochester, Ms. Bower was employed
at Stauffer Chemical Company in
Rochester.
Named in Long Lake
State Bank of Long Lake has
named Gerald Taffe as assistant
vice presidentinstallment
loans. Mr. Taffe
is a 1982 gradu­
ate of the Uni­
versity of Minnesota-Morris
with a major in
economics and a
minor in busi­
ness.
Before joining
State Bank of Long Lake, Mr. Taffe
was employed at Farmers and Mer­
chants State Bank, Donnelly, Minn.,
since 1981.
Northwestern Banker, January, 1986

32

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Northwestern
Banker, January, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

301 S. W. Adams
WATS LINE 1-800-322-2212

Peoria, Illinois 61631

33
National Bank in 1982, and presi­
dent of First Illini Bancorp in 1983.
Under Mr. Lambing’s leadership,
First Illini Bancorp, parent com­
pany of First Galesburg National,
acquired the Abingdon Bank &
Trust Company in 1984 and is cur­
rently in the process of acquiring the
Madison Park Bank in Peoria.

the $2 billion-asset Liberty United
Finalized in Rockford
Officials of American National Bancorp, Inc., and vice chairman of
Bank and Trust Co. and Illinois Na­ Liberty National Bank and Trust
tional Bank & Trust Co. announced Company, the lead bank in the Ken­
recently the acquisition of Illinois tucky holding company.
National by Americorp Financial,
Inc., has been consummated and E.V.P. Elected in Sterling
David L. Kingland has been ap­
that Illinois National has merged
with American Bank. It also was an­ pointed executive vice president of
nounced that the bank resulting the F irst Na­
from the merger will be known as tional Bank of
S te rlin g . Mr.
AMCORE Bank, Rockford, N.A.
AMCORE Bank is the eighth Kingland will as­
largest bank in Illinois and the sume the duties
largest bank outside of the Chicago of A. Ja m e s
who
area, according to David W. Knapp, B e a tty
AMCORE chairman. Total assets as retired January
of October 31, 1985, exceeded 1.
Mr. Kingland
$675,000,000. Assets of the holding
co m p any are a p p ro x im a te ly was most recent­
D.L. KINGLAND
ly with Norwest
$900,000,000.
Bank
of
Mason
City
where he was
J.
Peter Jeffrey, formerly Illinois
National chairman and president, senior vice president and senior len­
will serve as president and CEO of ding officer. He had been with
Norwest Bank since 1972, starting
AMCORE Bank.
The shareholders of Americorp Fi­ as department manager of agricul­
nancial, Inc., a Rockford based tural loans. During the year of
multi-bank holding company, also 1980-81, Mr. Kingland was chair­
voted to change the name of the cor­ man of the Iowa Bankers Associa­
poration to AMCORE Financial, tion Agricultural Committee.
Inc. The change became effective
immediately.
Appointed in Galesburg
Malcolm E. Lambing, Jr., presi­
dent and CEO, First Galesburg Na­
Pres./CEO Named in Peoria
tional Bank & Trust Company and
A prominent Kentucky banking First Illini Bancorp, has been ap­
leader has been named president and pointed to the U.S. Chamber of
CEO of Midwest
Commerce’s Small Business Coun­
Financial Group,
cil.
In c ., P e o ria ,
The 65-member council, consist­
downstate Illi­
ing of business volunteers from
n o is ’ la r g e s t
across the nation, makes policy re­
b an k h o ld in g
commendations to the chamber’s
company.
board of directors, which sets offi­
L eo n ard B.
cial policy of the business organiza­
Marshall, Jr. as­
tion. The council also advises the
sumed his new
chamber and its board on the needs
responsibilities LfJ MARSHALL, JR. of small business members, and as­
on December 2,
sists the chamber in advancing its
according to William Barnes, III, in­ legislative and political action
terim MFG president and CEO.
priorities.
Mr. Marshall has resigned his po­
Mr. Lambing was named presi­
sitions as president and director of dent and CEO of First Galesburg

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Federal Reserve Bank of St. Louis

Elected in Monticello
Larry Harshbarger has recently
been elected president of the Na­
tional Bank of Monticello, Illinois.
Mr. Harshbarger was formerly
president of the Bank of Rantoul.
ILLINOIS NEWS. . .
(Turn to page 36, please)

Robert E. Hahn has been elected
to the position of senior vice presi­
dent and senior lending officer of the
Colonial Bank and Trust Company,
5850 West Belmont Ave., Chicago.
Mr. Hahn joins Colonial from
Northwest National Bank where he
served as senior vice president and
senior lending officer. He received
his BS and commerce degree and an
MBA in finance from DePaul Uni­
versity and is a graduate of the
Stonier School of Banking.
Colonial Bank also promoted
Brian F. Bara to assistant control­
ler.
Mr. Bara, a graduate of the Uni­
versity of Michigan-Dearborn, is
also a certified public accountant.
He joined Colonial in 1983 as a staff
auditor after working for the Com­
munity National Bank of Pontiac
Michigan as a senior department
auditor.
Northwestern Banker, January, 1986

34
Lenders Institute
To Be Held in Casper
The Western Agricultural Lend­
ers Institute has been scheduled for
January 23-24, 1986 at the Casper
Holiday Inn. It is being co-spon­
sored by the Agricultural Commit­
tee of the Wyoming Bankers Asso­
ciation and the University of Wyom­
ing.
Introduced in Appleton
Valley Brokerage Services, Appleton, recently announced the intro­
duction of Mutual Funds and Unit
Investment Trusts to their con­
sumer investment offerings, accord­
ing to William J. Crain, manager.
Unit Investment Trusts offer in­
vestors the opportunity to earn a
high rate of return that is exempt
from federal income taxes, Mr. Crain
said. He added, “Unit Investment
Trusts involve the selection of muni­
cipal bonds which are diversified by
industry and location.”
Unit Investment Trusts are fixed
bond portfolios and, therefore, are
not managed funds. An investor
owns the units until they are sold or
they mature. Valley Brokerage Ser­
vices, a member of Valley Bancorporation since March, 1983, will offer a
variety of Unit Investment Trusts
as well as Mutual Funds.
Sponsored by F&M Bank
The Bank Advisory Councils of
F&M Bank Menomonee Falls have
completed three area seminars on
the new Wisconsin Uniform Marital
Property Act. The seminars, lec­
tured by Hector and Linda de la

Sponsored by WBA
The WBA will sponsor a Credit
Conference Program, January 30-31,
at the Downtowner Motor Hotel,
Casper.
Registration will begin at 4:00
Northwestern
Banker, January, 1986

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Federal Reserve Bank of St. Louis

Mora, Brookfield attorneys, were
held at Oconomowoc, Waukesha and
Menomonee Falls.
According to Richard P. Klug,
president and CEO of the bank, the
seminars had a total attendance of
over 400 people. The chairpersons of
the respective councils acted as mas­
ters of ceremonies at the events.
They were Phyllis Weege, Oconomo­
woc; James Christian, Waukesha
and Kay Keller, Menomonee Falls.

Three Named in Casper
Gary Wickam, president of the
Norwest Bank West Casper, has
been named ex­
e c u tiv e
vice
president of Norwest’s lead bank
in dow ntow n
Casper. In addi­
tion, two other
Norwest officers
have been named
to top positions
within the Nor­
west Banks of
G. WICKAM
Addition in Appleton
Casper.
Diane L. Van Boxtel has recently
Mr. Wickam is returning to the
joined the marketing staff of Valley Norwest Bank Casper where he had
Bancorporation, Appleton, as corpo­ at one time worked as a commercial
rate marketing officer. In this posi­ loan officer as well as manager of the
tion, she will be responsible for re­ bank’s commercial loan department.
search, name change conversions,
sales support and marketing coordi­
nation for financial services subsi­
diaries.
Ms. Van Boxtel was most recent­
ly associated with First Interstate
Corporation in Sheboygan, Wiscon­
sin, as product and sales training
coordinator. Prior to that she was
assistant vice president/director of
training with Wells Fargo Bank in
J. BORDEWICK
K. FARRELL
California.

p.m. on Thursday, with dinner
following at 7:30. Friday will begin
with an 8:00 a.m. registration
followed by several concurrent
workshops, and a 7:30 dinner.
Registration fees will be $125 and
$50 for spouses.

Jay Bordewick has been advanced
to the newly created position of ex­
ecutive vice president of the east
and west Casper banks. He will
serve as managing and executive of­
ficer of the banks. He has been in
banking since 1959 and served in a
variety of executive capacities dur­
ing this time.
Kevin Farrell will serve in the
newly created position of senior vice
president and chief financial officer
at Norwest’s main bank. He is also
senior vice president and chief finan­
cial officer of the Affiliated Bank
Corporation of Wyoming, the parent
corporation of Norwest Banks in
Wyoming. He has served in similar
positions in banking in Wyoming
and New Mexico.

35
assistant vice president, ag banking
and transferred to Bristol.
Elected in Valley Springs
Donald C. Clauson has been
elected executive vice president of
the Dakota Heritage State Bank,
Valley Springs. He has been in bank­
ing 18 years in both South Dakota
and Nebraska.
Two Added in Mitchell
Les Olson, president of Commer­
cial Bank of Mitchell, has an­
nounced the addition of Michael J.
Beyer and Karen Roth to the bank
staff as ag loan officer and assistant
trust officer respectively.

chell. After leaving the FmHA in
early 1985, Mr. Beyer was self-em­
ployed as a guaranteed loan contrac­
tor until joining the Commercial
Bank staff.
Ms. Roth’s prior work experience
includes serving a legal internship
for the firm of Morgan, Fuller,
Theeler and Cogley of Mitchell dur­
ing the summer of 1984.

Transfer to Milbank
Norwest Bank South Dakota,
N.A., announced the transfer of
Lynn Hammerstrom, assistant vice
president, ag banking to Milbank
M.J. BEYER
K. ROTH
from Bristol.
Mr. Beyer taught vocational agri­
Mr. Hammerstrom graduated
culture for three years at Tulare and from Sioux Falls College and the Ag
Presho and worked for the Farmers Banking School in Morris, Minne­
Home Administration in Highmore, sota.
Miller, Pierre, Redfield and most re­
He joined Norwest in 1981 in Gro­
cently as county supervisor in Mit­ ton. In 1983, he was promoted to

Approved in Pierre
The State Banking Commission
of South Dakota, Pierre, recently ap­
proved the purchase of assets and
assumption of liabilities of the
Wessington Springs Branch of the
First Bank of South Dakota, Sioux
Falls, and the application of the
Farmers and Merchants State Bank,
Iroquois, to merge the Farmers
State Bank, Carthage, into the
Farmers and Merchants State Bank
of Iroquois and to establish a branch
bank at Carthage.
SDBA Dinner in Pierre
The SDBA has announced that
the Annual Legislative Dinner to
honor the South Dakota legislature
and constitutional officers will be
held January 30, at the Kings Inn
Convention Center, Pierre. The
reception will begin at 6:00 p.m.
with dinner at 7:00 p.m.
ratio on September 30, 1985 was
11.02% compared to 10.56% on
June 30, 1984.

Conditions Reported in N.D.
The third quarter abstract of
report of the condition of North
Dakota state banking and trust in­
stitutions, compiled and submitted
by Jane M. Lundberg, commis­
sioner, gave figures for North Da­
kota’s 134 state banks, 6 trust com­
panies, and the Bank of North Da­
kota.
N et loan fig u res included
$1,704,860,000 for the state banks;
$103,000 for the trust companies,
and $237,746,000 for the Bank of
North Dakota, for a total of
$1,942,709,000.

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Federal Reserve Bank of St. Louis

Recognized in Bismarck
During a recent gathering of
Bank of North Dakota, Bismarck,
employees, state bank President
H.L. Thorndal presented Years of
Service Awards to 19 employees in­
cluding one 35-year, one 25-year,
and one 20-year award.
Ellen Luiska was the recipient of
the 35-year commendation. She
joined the bank in 1950 as a posting
machine operator, holding several
different positions and is currently
supervising the receiving and pay­
ing of coupons for the investment
department.
Evelyn Zelmer joined the bank in
1955 as proof clerk. In her 25-year
tenure, Ms. Zelmer has been pro­
moted several times. She is current-

T o ta l
a s s e ts
in c lu d e d
$3,591,634,000 for the state banks;
$3,934,000 for the trust companies,
and $857,655,000 for the Bank of
North Dakota, for a total of
$4,453,223,000.
Deposits included $3,129,111,000
for th e s ta te b a n k s, and
$618,848,000 for Bank of North Da­
kota, for a total of $3,747,959,000.
Total equity capital included
$344,788,000 for the state banks;
$2,693,000 for the trust companies;
$54,498,000 for Bank of North Da­
NORTH DAKOTA NEWS. . .
kota, for a total of $401,979,000.
Total capital to total deposits (Turn to page 37, please)

Northwestern Banker, January, 1986

36
Net proceeds to the company
from the offering will be used for
general corporate purposes, includ­
ing the repayment of short-term
debt.
Promoted in Denver
Marsha Covey, president of Colo­
rado National Insurance Agency,
Denver, Inc., has announced the pro­
motion of Laura Baggus to the posi­
tion of insurance officer.
supervisor of bookkeeping.
Changes Told in Denver
Ms. Baggus joined the agency in
Mr. Souder joined the bank in Ju ­
United Bank of Denver’s Chair­
1977
as claims technician with sub­
man and CEO Richard A. Kirk an­ ly of 1985 as vice president, man­ sequent promotion to administra­
nounced the nomination of John A. ager commercial loans.
tive assistant.
Schultheis and Jon Wiedmaier as
vice presidents. In addition, Peter J. Promoted in Littleton
Employee Award in Denver
Biglin, David B. Kinney and James
Edward B. Sturges, president of
Darlene Powell, an employee of
L. Volz were promoted to assistant Colorado National Bank-Southwest,
vice president. Gregory Anderson Littleton, has announced the promo­ Colorado State Bank, was awarded
and Michael E. Boxer both were tion of Michael S. Hanifen to the $5,000 recently as a second prize
named executive banking officers.
position of consumer loan officer. In winner of Bank America Travelers
his announcement, Mr. Sturges also Cheque’s SafeTravel N etw ork
stated that Clarke A. Omdahl re­ Sweepstakes.
Elected in Boulder
cently
joined the bank as vice presi­
Colorado National Bank-Boulder
dent,
senior
loan officer.
has elected Dean Betsy Levin to the
board.
ILLINOIS NEWS. . .
Promotion in Englewood
Ms. Levin is
(Continued from page 33)
currently dean
First Interstate Bank of Engle­
and professor of
wood, N.A. has appointed Dottie CEO Named in Springfield
law at the Uni­
Truitt as operations officer. The pro­
Jeffrey J. Hargroder of Lafayette,
versity of Colo­
motion announced by president and Louisiana, was recently named CEO
rado School of
CEO William C. Neill is effective im­ of Independent Bankers’ Bank of Il­
Law, a position
mediately. Ms. Truitt was most re­ linois, Springfield.
she has held
cently teller supervisor and was
Immediately prior to accepting
since 1981. Prior
named First Interstate Bank of the position with the Bankers’
to her current
Englewood Professional Banker for Bank, Mr. Hargroder was a financial
position, she was
the second quarter of 1985.
consultant for two de novo banks,
professor of law at Duke University
import/export company and finance
School of Law.
company. Previous employment in­
Officer Named in Golden
cludes top management positions
Colorado National Leasing, Inc., with Mid-South Bancorp, South­
Golden, has announced the promo­ west National Bank, Southwest
Elected to Board in Denver
Colorado National Bank-Tech tion of Ruth Mandel to the position Bancshares, Inc., and Morgan City
Bank and Trust Company all of
Center, Denver, has elected Robert of documentation officer.
Ms. Mandel joined Colorado Leas­ which are located in Louisiana.
W. Knickrehm to the board.
Mr. Knickrehm is president of ing in 1982 as senior bookkeeper
Frontier Agency Inc., a firm en­ with subsequent promotions to ac­ Goal Reached in Batavia
gaged in casualty insurance. He has counting manager and documenta­
The mortgage department of Ba­
been associated with the company tion officer. She was previously
associated
with
United
Bank
of
Den­
tavia
Bank recently celebrated ex­
since 1966.
ver and Wells Fargo Credit Corpora­ ceeding its $10,000,000 mortgage
application goal for 1985.
tion.
Two Promoted in Lakewood
Batavia Bank is one of 20 member
banks participating in the mortgage
Joy Prater, president of Colorado
program fostered by Midwest Mort­
National Bank-Lake wood, has an­ Filed in Denver
United Banks of Colorado, Inc. gage Services. Batavia was the first
nounced the promotions of Carole
Vossenkemper and Michael C. filed recently with the Securities and bank to reach the coveted goal. To
Souder to the position of operations Exchange Commission a registra­ show their appreciation, Len Giblin,
officer and senior lender respective­ tion statement relating to its pro­ president of Midwest Mortgage Ser­
posed public offering of 750,000 vices, and Bob Harring, senior vice
lypresident, surprised the bank’s
Ms. Vossenkemper joined the shares of common stock.
mortgage staff with balloons and a
The
First
Boston
Corporation
will
bank in 1976 as a station clerk, and
was subsequently promoted to be the sole underwriter of the issue. cake inscribed with the magic figure.
Northwestern
Banker, January, 1986

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ABA to Host Joint
Technology Conferences
The latest information on bank
telecommunications and video bank­
ing will be at the fingertips of at­
tendees at the American Bankers
Association’s 1986 Telecommunica­
tions and Financial Networks and
Video Banking III Conferences.
These two meetings on inter-re­
lated issues are scheduled simul­
taneously, February 9-12 in Orlan­
do, Fla., to give bank operations and
telecommunications managers and
officers the opportunity to explore
the newest applications of both of
these rapidly expanding areas of fi­
nancial products and services, ac­
cording to Arthur Ryan, vice chair­
man of the Chase Manhattan Corpo­
ration, New York, and chairman of
ABA’s Operations and Automation
Division. Mr. Ryan will give a report
to the conference on the status of
ABA’s Wholesale and Retail Pay­
ment System Task Forces.
New to the conference programs
are peer group discussions on pay­
ment networks, third-party switch­
ing alternatives, telecommunica­
tions management issues, telecom­
munications technical issues, and
fraud/security issues.
An extensive exhibit display with
more than 60 booths will showcase
state-of-the-art equipment and pro­
ducts. Demonstrations and presen­
tations throughout the conferences
will focus on the latest telecommuni­
cations and video banking technol­
ogy.
To register, contact Linda Gustavson, ABA Operations Group,
1120 Connecticut Ave. NW, Wash­
ington, DC 20036, or call (202)
467-4193.
BMA Annual CEO Seminar
Set for Palm Springs
Ju st how community banks orga­
nize their marketing efforts for long­
term performance and how these
programs mesh with the new envir­
onment for banking competition will
be explored at BMA’s annual CEO
Seminar scheduled March 9-12 at
the Canyon Hotel in Palm Springs,
Calif.
Theme for the 1986 conference is
“Bank Marketing: The Leaders’
Edge,” and according to program
planners, this year’s seminar will
emphasize ways CEOs can use both
new and existing marketing tools to

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Federal Reserve Bank of St. Louis

counter inroads made by both bank
and non-bank competitors.
The chairman of BMA’s Commu­
nity Bank M arketing Council,
Charles L. Ferguson, who also is
chairman and CEO of First Colorado
Bank & Trust Co., Denver, said the
CEO program will address such
areas as comparison of bank perfor­
mance, packaging of bank products,
direct mail, developing the planning
process, selecting and rewarding em­
ployees, and upgrading sales skills.
As in past CEO seminars, time
will be set aside for peer group dis­
cussion allowing CEOs to exchange
ideas with their counterparts in such
areas as financial planning, fee in­
come generation, ESOPs, and pro­
duct planning as well as other
topics.
The registration fee for the semi­
nar is $475 for BMA members and
$625 for non-members. For registra­
tion materials or for more informa­
tion, contact BMA’s Community
Bank Department at 312-782-1442.

37
“ATM Security Options” and “Risk
Management in a Tough Market”
are among the sessions offered in
this category.
In addition, peer group discussion
sessions will enable both insurance
and security professionals to confer
on a variety of subjects. Attendees
will also have the opportunity to
browse through the Exhibit Hall,
featuring more than 50 vendors, and
take in the twelve Exhibitors’ Show­
case presentations.
To register or for more informa­
tion, contact the Security and Risk
Management Division, American
Bankers Association, 1120 Connec­
ticut Ave. NW, Washington, DC
20036, or call the ABA Banker Edu­
cation Network, (202) 467-6738.

Morvis Honored For
Economic Education Work
George M. Morvis, president of
Financial Shares Corporation, Chi­
cago, was honored for outstanding
service in the promotion of economic
literacy by the Illinois Council on
Economic Education (ICEE) at their
recent
annual meeting.
ABA Conference Tackles
Mr. Morvis is the 1983-85 chair­
Risk & Insurance Issues
man of the ICEE board of trustees.
The story lines from popular tele­ Over 150 leaders of business and
vision shows mirror some of bank­ education were present for the
ers’ worst fears and problems: event.
money laundering, loan fraud, elec­
tronic banking security, and hos- NORTH DAKOTA NEWS. . .
tage/kidnapping negotiation.
(Continued from page 35)
These issues and many more will
be hot topics of discussion at the ly assistant manager for all opera­
1986 American Bankers Association tion division functions.
Martin Stenehjem received a 20National Insurance and Protection
Conference of Financial Institu­ year service award. He joined the
tions, January 28-31 in New bank in 1965 as fieldman, then
transferred into the student loan
Orleans.
Thirty concurrent sessions of­ area where, in 1967, the first fed­
fered at the conference are divided erally insured student loan in the na­
into five categories: physical securi­ tion was made. He currently is the
ty; data security; insurance/risk director of the North Dakota stu­
management; income producing in­ dent loan program.
Mr. Thorndal reported 15-year
surance; and vendors/consultants
perspectives. Important subjects awards were presented to Allan Nosfeatured in these sessions include busch, vice president and comptrol­
“Money Laundering—Cleaning Up ler, and Cecilia Wanner, data pro­
The Problem,” “Personal Computer cessing coordinator.
Ten-year service awards were
Security,” “Directors and Officers
Liability Insurance Policy Changes given to Robert Caudel, Lucy Chris­
and Marketing Update,” and “Cap­ tensen, and Barb Farley.
Five-year service awards con­
tive Life Insurance Company For­
mation Tax Issues.”
sisted of a certificate of appreciation
New to the program is the Ven- and were presented to 11 employees:
dors/Consultants Perspectives con­ Tammy Becker, Lois Gad, Lori
current session track, presenting Hager, Deb Hanson, Sharon Hoff­
state-of-the-art technology and in­ man, Karen Iverson, Lynelle Kaseformation by equipment manufactu­ man, Korrine Lang, Cathy Mindt,
rers, brokers and consultants. Helen Moch, and Esther Walker.
Northwestern Banker, January, 1986

38

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

Call them toll-free — in
dependably and consistently
meeting all your correspondent
Nebraska 1-800-642-9907; outside
Nebraska, 1-800-228-9533.
banking needs.
And the faster things change, the
faster the anchormen respond —
with the latest financial technology
at their fingertips and the historic
financial strength of First National firs! n a tio n a l b a n k
of omaha
Bank of Omaha at their disposal —
one first national center, omaha, nebraska 68102
for you.
member FDIC • 341 0500

©

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.

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

Three Banks Close in Neb.,
One in Missouri
State officials closed three banks
in Nebraska and one in Missouri
recently, blaming liberal lending
policies and the poor farm economy.
Two of the three rural Nebraska
banks will reopen as branches of
banks in neighboring counties, but
no buyer could be found for the
Farmers and Merchants Bank in
Comstock.
The three bank closings increased
to 13 the number of closings this
year in Nebraska and tied the state
with Kansas and Oklahoma for the
most bank failures among the 50
states.
Eleven banks have failed in Iowa
this year.
The banking department closed
the Farmers and Merchants Bank in
Comstock, the Farmers State Bank
in Sargent and the Bank of Panama.
Missouri officials closed the Prince­
ton State Bank of Princeton.
The Bank of Panama will reopen
as a branch of the Farmers State
Bank in Douglas. The Farmers
State Bank in Sargent will reopen as
a branch of the First National Bank
of Ord. Depositors of the failed
b an k s a u to m a tic a lly becom e
depositors in the new banks accor­
ding to Steve Katsanos of the FDIC.
No buyer could be found for the
Comstock bank, so the FDIC will
pay off the $3.2 million in 791 ac­
counts in the bank. Mr. Katsanos
said all but the $358 in one account
comes under the insured $100,000
limit.

39
paid if the mortgage contains provi­
sion for future advances and such
advance is executed. The fifth pro­
posed bill would amend Section 24532.01 to allow for pledging of funds
by a bank so it could accept county
funds above the $100,000 FDIC in­
sured limit.
NBA also said it will support
several other legislative proposals,
one of which would deter frivolous
lawsuits and one which would
folio which consists largely of agri­ change the formula for taxing Neb­
raska banks. The proposed bill
cultural loans.
State banking director James C. would tax banks 40 cents per $1,000
Barbee said 11 Nebraska financial of deposits, not to exceed 3.25% of
groups attended a bid meeting in net economic income.
Grand Island on Dec. 5 and none of
them made a bid. The bank had Promoted in Grand Island
Omaha National Bank Grand
assets of $7.2 million and 1,339 ac­
counts holding $6.7 million in depos­ Island has recently promoted Den­
its. Loans, 58% of which were agri­ nis L. Barkley as vice president and
culture-related, totaled $4.4 million. senior credit officer of commercial,
The FDIC said $1.9 million in loans agricultural and consumer lending;
were classified as below standard, Patricia A. Orendorff as vice presi­
meaning that they might be uncol­ dent and manager of operations and
retail banking; Stephen M. Beachler
lectable.
There were ten accounts with a as vice president and marketing di­
total of about $36,000 over the rector, and Gary Gannon as retail
$100,000 insured maximum. The ac­ banking officer and supervisor of
counts, which were commercial, may consumer banking in the bank’s
be a partial loss; they will be paid as Grand Island offices.
the bank’s assets are sold by the
FDIC.

NBA Executive Council
Sets Legislative Agenda
At their December quarterly
meeting, members of the Nebraska
Bankers Association executive
council approved their 1986 legisla­
tive agenda. Five bills were ap­
proved for sponsorship.
One would authorize a bank to
establish a branch in a municipality
where a bank has failed and no other
bank or branch office is in the com­
munity, thus providing continuing
banking service. This would amend
Section 8-157 and would remedy a
situation where no buyers could be
found for a failed bank.
Another amendment to state law
would stipulate that loans to bank
directors, officers or employees
would
apply only to executive offi­
Security State Bank,
cers and directors. Another would
Broken Bow Fails
clarify when a bank may charge a
On December 5 the Federal Depo­ customer’s account on postdate
sit Insurance Corp. stated it will li­ checks so that the bank is not liable
quidate Security State Bank of for charging the account before the
Broken Bow, because it could not date stated unless the customer
find a buyer for the failed bank. gives written approval. A fourth bill
Security State Bank had suffered would validate a lender’s continuing
“dramatic losses” in its loan port­ lien after an original debt has been

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Federal Reserve Bank of St. Louis

S.M. BEACHLER

G. GANNON

Mr. Barkley was formerly vice
president and manager of the com­
mercial and agricultural loan de­
partment.
Ms. Orendorff was previously vice
president and operations manager.
Mr. Beachler was formerly vice
president and retail banking man­
ager.
Mr. Gannon was formerly a mar­
keting officer.
Northwestern Banker, January, 1986

40

■'".S

west Bank Omaha as second vice
president in the agricultural loan £
department in 1985.
After graduation, Mr. Martens
worked for the agricultural PCA at
Harlan, Iowa and became vice
president/credit.
Mr. Martens began working for
Norwest Bank in 1985 as a special
loan administration officer.
* * *

Jim Mullins of Corwith, Iowa, has
been elected to the District Board of
Directors of the Farm Credit Banks
of Omaha, effective January 1.
Mr. Mullins will serve on the
seven-member board of the farmerowned cooperative Farm Credit
Om aha
Banks of Omaha, which includes the
Federal Land Bank, the Federal In­
F. Phillips Giltner has been ap­ tant vice president in the special termediate Credit Bank and the
Omaha Bank for Cooperatives.
pointed to the Federal Reserve Ad­ loan administration area.
Mr. Mullins was elected to the
Mr. Sullivan began working at the
visory Council
U.S. National Bank in 1975 as a three year term by the 37 Produc­
effective Janu­
commercial banking officer. He tion Credit Associations in Iowa,
ary 1, 1986. The
managed the Regency facility from N ebraska, South D akota and
Federal Reserve
1981 to 1984. As senior vice presi­ Wyoming. He operates a grain farm
Advisory Coun­
dent, Mr. Sullivan will manage the as well as a feedlot and cow/calf
cil serves as an
corporate banking departm ent herd. He has served as chairman of
advisor group to
the Omaha District PCA Directors
located at 20th & Farnam.
the board of gov­
Mr. Schenck started in 1968 at Advisory Committee and as a mem­
ernors of the
Center Bank. He was most recently ber of the National PCA Directors
Federal Reserve
in Washington,
assistant vice president/business Advisory Committee.
F.P. GILTNER
* * *
banking.
D.C. Mr. Giltner
is president of First National Bank
American N ational Bank of
of Omaha and First National of Neb­
Omaha recently appointed Brenda
raska, Inc., holding company of
Fernau as personnel officer.
First National Bank of Omaha.
Ms. Fernau, a 1985 graduate of
Mr. Giltner represents the 10th
the University of Nebraska at Lin­
Federal Reserve District on the
coln, has a management and commu­
council. The members are selected
nications degree. Prior to gradua­
for a one year term by the board of
tion, she was named one of the Uni­
each of 12 Federal Reserve Dis­
versity’s “outstanding seniors’’ by
tricts. The council meets quarterly
the Mortarboard Society, and was
in Washington, D.C., with the seven J.T. SULLIVAN, JR.
R.E. SCHENCK
elected
to the scholastic honorary,
members of the Federal Reserve
Phi Beta Kappa.
board of governors. Monetary policy
Jean Luettel, vice president and
and general economic conditions of
personnel officer, one of the bank’s
each district are discussed with the
original employees, announced her
board.
retirement as well.
Mr. Giltner also serves on the
* * *
board of Visa, International and on
the board of Visa, U.S.A. As of Sep­
Charles W. Durham, board chair­
tember 1985, First National of Neb­
man of Durham Resources of
raska, Inc.’s total assets were
Omaha, has been elected to the
$928,000,000.
board
of directors of FirsTier, Inc.
* * *
R.L. HARMS
S.C. MARTENS
Mr. Durham replaces Willis A.
Mr. Harms worked four years for Strauss, board chairman of HN GI
Norwest Bank Nebraska, N.A. re­
the
FICB in Omaha and then moved InterNorth, Inc., who resigned from
cently promoted Joseph T. Sullivan,
Jr., senior vice president/manager to Harlan, Iowa to become the agri­ the board of FirsTier and Omaha
corporate banking division, Richard cultural PC A president in 1980. In National Bank. Mr. Woods said Mr.
E. Schenck, region V compliance of­ 1984 he moved to the South Central
ficer, Richard L. Harms, vice presi­ Iowa PCA as a loan specialist at OMAHA NEWS. . .
dent and Steven C. Martens, assis- Creston, Iowa. He joined the Nor- (Turn to page 41, please)

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

First National Lincoln has an­ of the installment lending depart­
nounced several recent promotions. ment, has been promoted to under­
Tina Goings, who joined First Na­ writing administrative officer—pub­
tional in 1973, has been elected as­ lic finance. Paul D. Merritt, a former
sista n t vice president in the member of the Lincoln police force,
Visa/MasterCard credit department. was promoted to security officer.
Carna J. Smith, who started at the Kathryn Ann Vader, who joined the
bank as manager of electronic bank­ bank’s account information depart­
ing, has been elected assistant vice ment in 1974, was promoted to op­
president—cash management.
erations officer/account information
Donita G. McElhose, who joined manager.
First National in 1981 as a member
OMAHA NEWS. . .
(Continued from page 40)
Strauss resigned due to his recent
reappointment as board chairman of
HNG/InterNorth and the additional
responsibilities and time commit­
ment that entails.
* * *
Douglas E. Peters, president and
CEO of Occidental Nebraska Fed­
eral Savings Bank, reported the
bank has increased loan loss re­
serves by approximately $4.5 mil­
lion. The additional reserves have
been created because of potential
losses in the bank’s real estate loan
portfolio.
“The additional reserves,’’ ac­
cording to Mr. Peters, “are a result
of real estate loans made in a few na­
tional markets, during a period of
accelerated growth and economic de­
velopment. Some of these markets
reached a point of over building re­
sulting in rapid deterioration in eco­
nomic conditions and real estate
values, which adversely affected the
ability of the borrowers to repay cer­
tain loans the bank made.’’ Mr.
Peters stated, “The additional re­
serves represent less than .7% of the
bank’s total assets of $678,920,000 at
September 30, 1985. The bank had a
net worth of $27,593,079 at Septem­
ber 30, 1985.

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Federal Reserve Bank of St. Louis

NBA Pres. Comments
on Ag Tension
The president of the Nebraska
Bankers Association said that the
growing number of violent actions
involving financially-stressed farm­
ers underscores the fact that these
are troubled times in the nation’s
farming community.
“Our long-time farm customers
hear the bleak economic reports and
they go back and look at their own
financial records, and they wonder if
things are ever going to improve
again,” said Ogallala banker Mel
Adams.
Mr. Adams said that during these
times, ag bankers need all the flexi­
bility they can get so that they can
work with their borrowers and
renegotiate debt where there’s any
chance of workout.
“We’ve seen some sign that land
prices may be stabilizing,” said Mr.
Adams. “If we can stop this down­
ward spiral in land prices, it would
go a long way in restoring confi­
dence in agriculture and relieving
some of the stress th a t’s out there,”
he added.
The NBA president said that
banking leaders from several Farm
Belt states would meet in Kansas
City on Dec. 11 to put together re­

41
alistic legislative proposals for Con­
gressional consideration early next
session.
“Key senators have promised ear­
ly consideration of federal legisla­
tion to help commercial banks get
through these troubled times in the
agricultural economy,” Mr. Adams
said.
“In many cases, what we need is
greater regulatory flexibility so that
bankers can work with their delin­
quent borrowers wherever possible
without being pressured to act
otherwise,” he said.
“Every time a bank charges off a
loan, it goes against the bank’s
capital account. There needs to be
an alternative, and that is what I an­
ticipate that we will be pushing for
when Congress reconvenes in Janu­
ary,” Mr. Adams said.
Changes Announced
in Bellevue
Five personnel changes have been
announced at the First United Bank
of Bellevue.
John R. Young has been elected to
the board, named president and
CEO and will direct the newly state
chartered federally insured bank. He
has 23 years of financial services ex­
perience including serving as presi­
dent of two banks and forming three
newly chartered banks.
Thomas R. Edwards has been
named vice president. He will be re­
sponsible for the consumer, credit
card and mortgage departments for
the bank. In addition, he will market
the bank’s small business loan pro­
gram. Mr. Edwards brings ten years
of lending experience with him to
the bank. In his former position, he
was regional director for the
nation’s seventh largest bank hold­
ing company, and supervised con­
sumer lending offices covering Neb­
raska, Iowa, South Dakota and Ok­
lahoma.
Brenda L. Bice has been ap­
pointed cashier for the bank. She
will manage the cash position, per­
sonnel department and the compli­
ance and marketing program. She
has seven years experience in the
banking field and previously held
positions as head teller and opera­
tions clerk.
Lori A. Bickford has been named
an account executive. She will asso­
ciate directly with the lending de­
partment as well as public relations
and new accounts. She has four and
Northwestern Banker, January, 1986

42

Nebraska News

a half years experience in banking
and finance through previous posi­
tions as a customer service represen­
tative and loan account representa­
tive.
Christine L. Myers has been em­
ployed as an account executive. She
will work in the customer service
areas. She has eight years banking
experience, in the positions of assis­
tant cashier, loan officer and super­
visor of a customer service depart­
ment.
Changes Told in Lindsay
Bank of Lindsay has recently an­
nounced the nomination of James C.
Arlt as president and Daniel J.
Korus as assistant vice president.
Mr. Arlt was most recently execu­
tive vice president of Bank of Lind­
say and is replacing Barry V. Marsh
who has joined Tilden Bank as ex­
ecutive vice president. Mr. Korus
was most recently assistant vice
president of Norwest Bank Grand
Island.

Four Promoted in York
The First National Bank of York
has recently announced the promo­
tion of Bruce Fagot, vice president,
to vice president and comptroller;
Randy Shelden, assistant vice presi­
dent of marketing, to vice president
of marketing; Kevin Henderson,
operations officer, to assistant vice
president in charge of operations,
and Ray McKenna, consumer loan
officer, to assistant vice president of
the consumer loan department.
Mr. Fagot started with the bank
in 1977 and has served as auditor
and in charge of the credit ad­
ministration department prior to
assuming his present duties. He will
also serve as supervisor of full ser­
vice branch activities.
Mr. Shelden started with the
bank in 1976 and worked in the con­
sumer and commercial loan depart­
ments. He was named manager of
the marketing department in 1981.
Mr. Henderson started with the
bank in 1981 and was named opera­
tions officer in 1983. In addition, he
will head up the new human re­
sources division which will give
him the responsibility of personnel
officer and other employee related
activities.
Mr. McKenna started with the
bank in 1980 and was named a con­
Northwestern
Banker, January, 1986

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Federal Reserve Bank of St. Louis

sumer loan officer in 1983. He will NBA Conference
have the additional responsibiltities To Be Held in Scottsdale
of the day to day operations func­
The 1986 Bank Executive Confer­
tion of the department.
ence, sponsored by the Nebraska
Bankers Association, will be held
Changes Told in Falls City
Feb. 19-23 at the Loews Paradise
Kevin Malone recently joined the Valley Resort in Scottsdale, Ariz. It
First National Bank and Trust Com­ will be entitled “Looking Out for
pany, Falls City, as an assistant vice #1,” and feature presentations on
president. Previous to his employ­ health, stress, wellness and time
ment with the First National Bank, management.
There will be a reception from
he had spent the last two and onehalf years with the Johnson County 7:00 to 8:00 p.m. on Feb. 19. The
Feb. 20 session begins with conti­
Bank, Tecumseh.
First National Bank and Trust nental breakfast at 8:30 with pro­
Company also promoted Lydell grams until noon. After lunch on
Woodbury from agriculture loan of­ your own, the afternoon features
ficer to assistant vice president and golf and tennis with an awards re­
ception and banquet at 7:00 and 8:00
agriculture loan officer.
p.m. respectively.
On Feb. 21 there will be breakfast
Elected to Board in Aurora
at 8:30 and programs until noon,
David A. Laferla, vice president, with the afternoon and evening free.
cashier and assistant trust officer, The Feb. 22 schedule is the same ex­
has been elected a member of the cept for the reception/dinner at 6:30
board of First National Bank and p.m.
Registration is $330 per person,
Trust Company in Aurora.
Mr. Laferla has been with the $15 per person for the tennis tourna­
bank since 1982 when he joined the ment, and $42 per person for green
staff as vice president and opera­ fees and cart rental for 18 holes of
tions officer. Prior to this position, golf. For more information or to re­
he was with the Security National gister, contact the NBA office in
Lincoln.
Bank of Omaha.
Addition in O’Neill
Joe Wegner, a former Antelope
County Farmers Home Administra­
tion supervisor has joined the First
National Bank of O’Neill, Nebraska,
as an assistant vice president/loan
officer working primarily with agri­
cultural loans.
Mr. Wegner attended Northeast
Technical Community College for
two years before receiving a BS
degree in ag economics from the
University of Nebraska-Lincoln.
Promoted in Mead
Scott Seiko has recently been pro­
moted to cashier of the Bank of
Mead. He has been management
trainee with the bank since 1984.
Mr. Seiko is a graduate of the Uni­
versity of Nebraska at Lincoln with
a major in finance.
Retired in Benkelman
J. Milo Spaulding, vice president
of State Bank, Benkelman, retired
on December 31. His career at the
bank spanned 45 years.

Sponsored by KBA & NBA
Schools of Banking, Inc., spon­
sored by the Kansas and Nebraska
Bankers Associations, will include
four week-long schools during 1986.
The schools include School of Bank­
ing Fundamentals, March 17-21,
Holiday Inn, Manhattan, Kan.; Pro­
fessional Development Program In­
termediate School of Banking, Sep­
tember 21-26, Holiday Inn, Manhat­
tan, Kan.; Commercial Lending
School, April 7-11, Holiday Inn,
Manhattan, Kan., and School of
Trust and Financial Planning, July
14-18, Holiday Inn, Manhattan,
Kan. (also sponsored by the Iowa
Trust Association).
The Schools of Banking, Inc., a
non-profit corporation, provides oc­
cupational education for bankers in
Kansas and Nebraska as well as
bankers in the surrounding states
who wish to attend.
For further information and regis­
tration call or write: Jone Beer, ad­
ministrator, The Schools of Bank­
ing, Inc., 525 South 13th Street, Lin­
coln, N eb rask a 68508, (402)
474-3313.

43

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

^F irsT ier Banks
First National Lincoln

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13th & M Streets • P.O. Box 81008
Lincoln, Nebraska 68501
Phone 800-742-7376

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Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1986

44

“Over half the
banks in Northeast
Iowa are
correspondent
banks of
The National Bank
of Waterloo.”
The financial officers of more
than 100 banks located in Northeast
Iowa are doing their correspondent
banking with The National Bank of
Waterloo. And the number continues
to grow.
These progressive banks may be
using our sophisticated computer
service, bank stock loans, bond
advisory service or any number of
services. Many of these banks have been
working with our experienced staff for a
number of years. It’s our staff that

“Are YOU
missing from
the list?”

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"For more information, call Toll
FREE from anywhere in Iowa . . .
1-800-772-2411. Ask for Bill Rickert or
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Your complete financial center.

T h e N ational Bank
OF WATERLOO
Bill Rickert
Sr. Vice President


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

Everett Brown
Vice President

100 E. Park Avenue, Waterloo, IA 50703
M ember FDIC

45
Bill Bernau Succeeds Tom
Huston as Superintendent
Thomas H. Huston submitted his
resignation as Iowa superintendent
of banking to Governor Terry Branstad, effective January 9, 1986, and
the Governor has appointed William
R. Bernau, 54, to succeed him. Mr.
Bernau is owner of three Iowa statechartered banks. He assumed his
new duties January 10.
New Appointments Made
At Merchants National
Henry Royer, president of Mer­
chants National Bank, Cedar Ra­
pids, has announced the appoint­
ment of Jerry N. Trudo to head the
correspondent services division and
the agricultural department, and the
appointment of two officers to head
two new divisions as part of an orga­
nization re-structuring.
Mr. Trudo succeeds John E. Man­
gold, who retired at year-end as se­
nior vice president after a 32-year
career with MNB.

D.W. COPPOCK

J.H. STRUWE

J.N. TRUDO

R.J. LOUVAR

Mr. Trudo has worked at Mer­
chants National Bank since 1966
when he was a student at the Uni­
versity of Iowa. He worked parttime for three years, then became
full-time staff member after he re­
ceived his BBA degree in 1969.
After working in the credit review
and commercial lending depart­
ments, he transferred in 1971 to the
correspondent banking division. He

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left there in 1976 for a two-year stint
in MNB’s international division,
then re-joined the correspondent
banking division in 1978. He was
elected a vice president in 1980. Mr.
Trudo was graduated from the Iowa
Ag Credit School at Ames in 1972
and from the ABA Commercial
Lending School at Norman, Okla., in
1977.
D. William Coppock, senior vice
president, has been appointed head
of the new personal services division
which includes the personal bank­
ing, trust and marketing depart­
ments. Mr. Coppock formerly
headed the wholesale banking divi­
sion.
James H. Struve, senior vice pres­
ident, was appointed head of the cor­
porate services division which is
made up of the corporate banking,
international, commercial and mort­
gage loan departments, as well as
loan services. Mr. Struve’s previous
assignment was head of the retail
banking division.
Other banking divisions will con­
tinue as presently structured.
Mr. Royer also announced the
election of Robert J. Louvar as an
assistant vice president in the cor­
respondent bank division. He joined
the division in late October. He was
graduated from the University of
Iowa in 1974 and from the Stonier
Graduate School of Banking at Rut­
gers University in 1985. Mr. Louvar
has 10 years of banking experience
in lending, operations, administra­
tion and data processing. Most re­
cently, he was president and CEO of
Mid-America Financial Services in
Davenport.
Mr. Royer further announced the
election of three new officers. John
Rodriguez moved from senior an­
alyst in deposit accounting to direc­
tor of teller operations. Dee Ann
Glover, accounts administrator, and
Bonita Martin, administrative assis­
tant, both were elected real estate
loan officers.

T.H. HUSTON

W.R. BERNAU

Mr. Huston announced his inten­
tion to leave the superintendent’s
job by way of a conference telephone
call December 27 to the media from
his office in Columbus Junction
where he is chairman and president
of the $42 million asset Columbus
Junction State Bank. He had held
the demanding post more than 10
years, having been appointed first
on September 1, 1975, by then Gov­
ernor Robert Ray to succeed Cecil
W. Dunn, president of Security Sav­
ings Bank in Eagle Grove. Mr. Hus­
ton’s initial appointment was to
complete Mr. Dunn’s term of office
to June 30, 1977. He was later reap­
pointed to the post for several
terms.
Mr. Bernau is chairman and presi­
dent of the $5.3 million asset Peo­
ples Savings Bank in Crawfordsville, where he lives with his wife,
Kay. He is also chairman and presi­
dent of the $6.3 million asset Iowa
State Bank and Trust Co. in Center
Point, and chairman of the $10 mil­
lion asset Walker State Bank in
Walker. Center Point and Walker
are in Linn County, located six miles
apart about 15 miles north of Cedar
Rapids. Crawfordsville is located in
Washington County in southeast
Iowa, about 15 miles from Colum­
bus Junction.
Mr. Bernau is a native of Lake
City in northwest Iowa. After gra­
duation from high school there he
SUPERINTENDENT. . .
(Turn to page 54, please)
Northwestern Banker, January, 1986

46

Iowa News

The new Farmers and Merchants Savings Bank in Waukon features a double drive-up teller,
along with a new ATM system for customer convenience. Executive Vice President Ed
Lauerman notes that the ATM is especially popular with older customers.

Farmers & Merchants, Waukon, Likes
New Building; Gains $4 Million Deposits
INCE Farmers and Merchants
Savings Bank of W aukon
S
moved into its new building last
April, business continued to expand
during 1985 and the bank closed out
1985 with a deposit gain of approxi­
mately $4 million to a new high of
$42 in deposits and a new high of
$47 million in assets, according to
Ed Lauerman, Jr., executive vice
president. He reports the F&M staff
is comfortably settled in the new
quarters and is able to serve an ex­
panding customer base because the
new building provides three times
the space of the old building on the
first floor alone!
The new facility was designed and
built by The Kirk Gross Company of
Waterloo.
“Our old building had a total of
2,500 square feet,” Mr. Lauerman
explained, “and now we have 7,500
square feet on the first floor, with

another 7,500 square feet, including
a 2,500 square foot community
room, in the basement. We’ve had
excellent response from our commu­
nity ever since 3,500 people at­
tended our grand opening in May
and saw the kind of facilities and
service we offer. Now, it seems the
community room is always busy.”
Mr. Lauerman said Farmers and
Merchants Savings Bank observed
its 60th anniversary in 1985 and has
grown steadily since the charter was
moved about 1961 into Waukon
from Waterloo, which is now an of­
fice. Solid growth in recent years, he
said, pushed assets above the $40
million mark and necessitated con­
struction of a new, much larger
building. He said the bank selected
The Kirk Gross Company as archi­
tect, contractor and interior de­
signer.
Commenting on the resulting

building to achieve the bank’s objec­
tive, Mr. Lauerman said “They are
excellent people to work with. They
were receptive to using our ideas or
they explained why some of our
ideas wouldn’t work. We’re highly
satisfied—we couldn’t be any hap­
pier with our new building or with
The Kirk Gross Company.”
Among the building features
most appreciated are the skylights
in the lobby area that give a bright,
warm feeling to customers entering
the bank. Other features of the new
bank building, in addition to the
community room, include the double
drive-up window, an ATM machine
and a large parking area that offers
convenience for the customers.
□
Vice Chairman, Pres.
Named in Indianola
Eugene T. Smith has been named
vice chairman of the board of direc­
tors at Warren County Brenton
Bank, Indianola. He has been with
Brenton Banks since 1955, and has
been president of Warren County
Brenton Bank since 1965. Clark
Raney will succeed him as president
and chief executive officer. Mr.
Raney previously was senior vice
president of the bank.
In his new assignment, Mr. Smith
will continue his public relations re­
sponsibility, work closely with cus­
tomers and the board of directors,
direct the bank’s real estate pro­
perties and continue working in the
trust area. He plans retirement from
full-time duties in April of 1987.
Mr. Raney has been with Warren
County Brenton Bank since 1983.
He had previously been with the
Brenton Bank in Emmetsburg, be­
ginning in 1975.

l e f t —The lobby area is bright and warm with the help of skylights. RIGHT—The expanded teller line and spacious lobby were designed
with employee convenience and customer privacy in mind. The design, construction and interior decorating were handled by The Kirk
Gross Company of Waterloo, la.


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

Award winning interior design
and furnishings

Complete architectural, design
and construction services

Specializing in turn-key
development of financial facilities

Yes, since 1971, Kirk Gross Company has designed, built or remodeled over
1 MILLION square feet of financial institutions — one million, one hundred
seventy one thousand and one hundred and fifty
square feet to be exact.
The Kirk Gross Company
specializes in turn-key development of
financial facilities, interior design and
furnishings for complete commercial
environments throughout Iowa. And no
one can make each and every square foot
of space work harder for you than Kirk Gross Company.
No one else in Iowa has as much experience in
designing, remodeling and building financial institutions.
So you know when you come to Kirk Gross Company, your project w o n 't
be the first we've ever done — just one of the best.
We've got over a million ways to prove it— just give us a call.

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Kirk Gross Company
4015 Alexandra Drive • Box 2097
Waterloo, IA 50704 • (319J 234-6641

48

Iowa News

Retired, Added in Clarion
R.B. Bartholomaus, president of
The First National Bank of Clarion,
has announced that Dale C. Dough­
erty has retired from his duties as
senior vice president and trust offi­
cer, effective December 31, 1985.
Mr. Dougherty is a 1938 graduate
of Clarion High School, the Iowa
State College Agricultural Credit
School, and the Graduate School of
Banking from the University of Wis­
consin. His banking career began in
1941. After a leave of absence to
serve for three years in the U.S.
Navy during World War II, he re­
turned to his association with the
bank in the bookkeeping depart­
ment. His duties and responsibili­
ties through the years subsequently
led to his promotion to senior vice
president and trust officer.
Mr. Dougherty has been active in
the Clarion community and was
chosen Volunteer of the Month for
October, 1985.
The First National Bank of Clar­
ion hosted an open house in Mr.
Dougherty’s honor on November 29.
In addition, Neil W. Fell has been
hired as an ag marketing loan officer
at The First National Bank of Cla­
rion. He joins the bank with six and
a half years of agricultural credit ex­
perience. He was most recently em­
ployed by the North Central Iowa
Federal Land Bank Association in
Mason City.

Banker John Hughes Is
Slain by Crazed Farmer
John R. Hughes, 46, president of
Hills Bank & Trust Co. in Hills, was
shot and killed in his office at the
bank the morning of December 9 by
63-year-old Dale N. Burr, a farm cus­
tomer of the bank. Mr. Burr ap­
parently went berserk that morning
and, after having killed his 65-year
old wife at their farm home, went to
the bank where he killed Mr. Hughes
with a shotgun blast to the head,
then proceeded to the nearby farm of
Richard Goody, 37, and killed the
young farmer. When stopped within
minutes by a deputy sheriff, Mr.
Burr turned the gun on himself and
committed suicide.
The bizarre affair was declared as
totally irrational and perplexing by
all associated with the bank and the
victims. Mr. Burr had a $400,000
loan at the bank but there had been
no discussion of pressure or fore­
closure, nor was any planned, ac­
cording to bank officials. There had
been meetings with the customer
only to agree on financial matters
and schedule payments. Mr. Burr
had extensive landholding equity
that far exceeded his debts, accord­
ing to reports.
John Hughes was a native of the
Hills area and was graduated from
Iowa State University and the Uni­
versity of Iowa law school. He prac­
ticed law until joining the Hills

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King Management Company offers professional,
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acquisition for investment, farm appraisals and
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Rural Appraisers and Farm & Land Institute


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

Bank & Trust in 1969 as vice presi­
dent. He was advanced a year later
to be executive vice president and
had served as president since 1975.
Under his leadership at the Hills
Bank & Trust, in a community of
500 people, the bank grew from $30
million in 1975 to its present size of
$187.7 million as of September 30,
1985.
Mr. Hughes was a member of the
board of directors at the Iowa Bank­
ers Association and had been in­
volved in several committees of the
IBA. His most notable banking ven­
ture was his leadership in having the
town of Hills annex an old railroad
right-of-way for the seven miles be­
tween Hills and Iowa City. When
the project was completed, it gave
Hills Bank authority under Iowa
law to open an office in Iowa City
because the two were then continguous. He was president of the Iowa
City Chamber of Commerce in 1982.
He is survived by his wife, Karen,
and two daughters, Emily, 17, and
Amy, 14.
The board of directors has desig­
nated Dwight Seegmiller, senior
vice president, as managing officer
of the bank.
Changes in Luana Told
Dale Linderbaum has been ap­
pointed a director of the Luana Sav­
ings Bank to fill the vacancy created
by the resignation, due to ill health,
of C. Adrian Riveland. Janice Bruns
was also promoted to vice president
of the bank.

NABW Meets in DeWitt
The National Association of Bank
Women quarterly meeting was held
in November at DeWitt. Over 40
members and guests listened to a
panel discussion on the topic of
interstate banking. Loretta Buchheit, president, Southeast Iowa
Group of National Bank Women,
presided over the meeting while
Carol Petz, state president of
NABW, attended as an honored
guest. Members of the panel includ­
ed Ed Tubbs, chairman, Maquoketa
State Bank; Bruce Meriwether,
president, First National Bank of
Dubuque; Jerry Huiskamp, presi­
dent, Blackhawk State Bank, Milan,
111., and Don Runger, senior vice
president, Hawkeye Bancorporation, Des Moines.

Iowa News

TAKING PART in the Iowa Business Trends meeting were, left to right: Dr. Sung Won Sohn,
sr. v.p. & chief econ., Norwest Corp. Minneapolis; Dr. James O. Freedman, pres., U. of Iowa,
Iowa City; George F. Milligan, pres., Norwest Bank Des Moines; Mark W. Putney, pres. &
ceo, Iowa Resources, Inc., Des Moines, and James P. Gannon, editor, T h e D e s M o in e s
R e g is te r .

At Norwest Business Trends Conference

A Look at Iowa’s Future, Opportunity
By BEN HALLER, JR.
Publisher
OR its 27th Annual Iowa Busi­
F
ness Trends Meeting in Des
Moines last month, Norwest Bank
Des Moines moved from the tradi­
tional format of straight business
forecasts offered in previous years
to a special format that offered a
positive look at Iowa today and
tomorrow. In addition to the usual
noon luncheon economic forecast,
the three executives on the morning
panel discussed “ Iowa, the Chal­
lenge,” “Iowa, the Opportunity,”
and “Iowa, the Future.”
Addressing those topics were
James P. Gannon, editor The Des
Moines Register, Des Moines; Mark
W. Putney, president and CEO,
Iowa Resources, Inc., Des Moines,
and James O. Freedman, president,
The University of Iowa, Iowa City.
The luncheon speaker was Dr. Sung
Won Sohn, senior vice president and
chief economist for Norwest Corpo­
ration, Minneapolis, discussing
“The 1986 Economic Forecast.”
George F. Milligan, president of
Norwest Bank Des Moines, N.A.,
hosted the meeting and greeted the
500 guests. He thanked the speakers
for re-arranging their schedules to
take part in the conference exactly
one week later than scheduled. On

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Federal Reserve Bank of St. Louis

the original date of December 2 the
city and all of Iowa was buried in a
typical Iowa winter blizzard. Mr.
Milligan said the assets Norwest
manages in Iowa banks now total
more than $2 billion, “so we have a
big stake in Iowa.” Mr. Milligan
then introduced the individual
speakers.
Speaking to “Iowa, the Chal­
lenge,” Mr. Gannon said “we are
ending the first half of a decade to
which many of us might well say,
‘Goodbye, and good riddance.’” He
said the challenge in Iowa today is
“to work together to turn around
the economic fortunes of our state,
so that we can build a better future
for ourselves and our children. And I
suggest to you today that it can, and
must start, as we begin the second
half of this decade. We cannot afford
another five years of stagnation. It
is time to get Iowa on the move
again.”
He urged Iowans to have vision—
“a clear picture of where we want to
go”—will—“the will to make it hap­
pen”—and leadership—“leadership
to help chart the future.”
Mr. Gannon envisions an Iowa
“for the rest of this century as an
Iowa of fewer farms, fewer small
towns, and prosperous regional
trade centers—in places like Carroll,
Mason City and Ottumwa...stress­
ing excellence in education from kin­

49

dergarten through college...the best
job retraining and career counseling
programs in the nation—to help ease
the transition from the small, family
farm culture to the era of the larger
agri-business e n te rp rise .” He
stressed the need for the “will to
make it happen,” which requires
leadership as “a shared responsibili­
ty... ‘If not us, who? If not now,
when?’”
Mr. Putney, speaking on “ Iowa,
the Opportunity,” said Iowa’s finan­
cial institutions provide “a strong
core to Iowa’s economic base.
Iowa’s central location is to its ad­
vantage...There is opportunity for
Iowa in the billions invested in the
’70s in new energy plants that stand
ready to serve whatever advances
Iowa experiences...there is opportu­
nity in agriculture and other exports
and its manufacturing sector.”
Mr. Putney said Iowa Resources
has “cost containment measures in
place to hold down costs to custo­
mers so energy costs would be lower
to attract people here.” He added
that all Iowans must “work smar­
ter, sell harder, achieve more. Sell
Iowa every chance we get. We need a
strong, non-partisan development
without seeking gain for political
reason, for personal or selfish gains.
It is time to get at it now.”
Dr. Freedman reviewed the
changing power structure in the
world as other nations develop, “and
we can prepare ourselves for the op­
portunities that change offers...As
we look to the future, we have an op­
portunity to look where growth will
take place, equip ourselves and de­
sign those products and services
they’ll need to buy. Iowa has the op­
portunity to be one of those states
that take advantage of this opportu­
nity of the future. We must train our
upcoming generation to speak lan­
guages and be schooled in their cus­
toms and history.”
Dr. Sohn attributed much of the
economic chaos in this nation to our
falling exports and rising trade ba­
lance deficits. He said South Ameri­
can countries are squeezed for
money and can’t buy. In addition,
we are losing our technological com­
petitive edge. “I t ’s being trans­
ferred or stolen to Japan, etc.” he
stated. Dr. Sohn said our ag pro­
ducts will sell abroad again—“even­
tually, but not now.”
Dr. Sohn said it is imperative to
reduce the federal budget deficits
and cut spending. He urged manuNorthwestem Banker, January, 1986

50
Io w a N e w s
facturers to do a better marketing
job, and start worrying about tariffs
on countries and not commodities.
Dr. Sohn expects slower growth
in 1986, lower interest rates the first
few months, and the dollar value
continuing down. “ It takes a year
for the dollar decline to take effect,”
he stated, “so in the last part of
1986 we expect to see a gradual
switch upward in our trade balances. •?
Activitiy will pick up and so will in­
terest rates to some extent. ’’
□

moted to positions of increasing re­
sponsibility including division man­
ager of check adjustment in 1983,
and division manager of operations
support in 1984.
Ms. Bennett is currently working
toward a bachelor’s degree from
Drake University in Des Moines.

Joins North English Bank
Les Johnson has joined the Farm­
ers Savings Bank of North English
as executive vice
president. Mr.
J o h n so n
re ­
signed recently
as executive vice
president of An­
drew S avings
Bank, where he
h ad
w orked
more than six
years.
L.L. JOHNSON
Prior to join­
ing the Andrew bank, Mr. Johnson
was employed for five years as a
teacher, administrator and coach in
the Andrew elementary school sys­
tem. He was graduated from the
University of Dubuque in 1974 with
a BA degree and has taken Masters
degree studies at Clarke College in
Dubuque.
Mr. Johnson will complete his
studies this next summer at the
Graduate School of Banking at
Madison, Wis.

Pres. Named in Albia
Peoples National Bank and Trust
Company, Albia, has announced the
appointment of James E. Oberts as
president.
Mr. Oberts has served as ex­
Named Operations Manager ecutive vice president of the Bank of
Cahokia in Cahokia, 111. He was also
at Des Moines Fed Office
JoAnn Bennett has been named president of the First National Bank
manager of operations of the Des of Lawrenceville, 111., for five years
Moines office of the Federal Reserve and president of the Weldon Springs
Bank of Chicago. She reports direct­ Bank in St. Charles, Mo., from 1983
ly to Thomas P. Killeen, vice presi­ until 1985 when the bank underwent
dent in charge of the Des Moines of­ an ownership change.
fice.
In her new position, Ms. Bennett VP Named in Boone
Robert F. Scott, president of
will oversee operations of the office,
including the check processing and Boone State Bank and Trust Co.,
has announced that Amy S. Beattie
automated payments areas.
She joined the Des Moines office has been named vice president and
in 1973, when it was established, as trust officer of the bank. Ms. Beattie Merger in W aterloo
a reconciler in the check processing has been engaged in a private law
R.K. Sverdahl, president of
area. Since then, she has been pro­ practice for two and a half years.
Peoples Bank & Trust of Waterloo,
and Thomas P. McDermott, presi­
dent of LaPorte City State Bank,
recen tly announced th a t th e
LaPorte City State Bank will be
merged with and become an office of
Peoples Bank and Trust Company of
Waterloo. Both of the banks in­
volved are currently owned by
Peoples Bankshares, Ltd. Peoples
Bank is the flagship bank of the
multi-bank holding company and
LaPorte City State Bank joined the
holding company in December of
1983.
This merger will provide a
broader base of resources and new
services, including electronic funds
transfer products, trust services,
and larger lending limits to the
LaPorte city area.

Committed to
making your
bank stand
apart from the

Send Us Y o ur N ew s
Please send us news of
any p ro m o tio n s, e le c tio n s
or changes in personnel,
fo llo w in g you r b a n k’s an­
nual m eeting.
N orthw estern B anker
1535 Linden Street, Suite 201
Des Moines, IA 50309

Northwestern
Banker, January, 1986

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Federal Reserve Bank of St. Louis

51
Larry A. Bergemann who resigned
this position to pursue other inter­
ests.
Mr. Dietrich currently resides in
Paynesville, Minnesota, where he
was president and CEO of First
Bank, Paynesville, from 1969 until
taking his early retirement in June
of this year.
* * *

Valley National Bank announced
the promotion of Verne C. Bates to
senior vice presi­
dent in charge of
trust and retail
banking; Charles
Leibold to vice
president and se­
nior trust offi­
cer, and Michael
R. Hyzer to vice
p re sid en t and
trust counsel.
M r.
B a te s
joined Valley Bank in 1975 and most
recently was vice president and
senior trust officer.
Mr. Leibold joined Valley Bank in
1981. He previously served as vice
president and trust officer.

C. LEIBOLD

M. HYZER

Mr. Hyzer joined Valley Bank in
1981 and most recently served as
senior trust officer.
* * *
First Interstate of Greenfield an­
nounced the election of Martin Dietrich as president and CEO assuming
the position previously held by

Richard N. Strang has recently
been elected to the office of vice
president-invest­
ments of Brenton Banks Inc.
Mr. Strang is
succeeding Betty
L. Steele, vice
president/secretary, upon her
retirem ent De­
cember 31, 1985,
after 32 years of
association with
R- STRANG
Brenton Banks.
Mr. Strang brings over twentyfive years of investment experience
to the Brenton organization. Prior to
joining Brenton Banks, he was em­
ployed for seven years with a private
investment counseling firm in Chi­
cago. Most recently, he managed
fixed income portfolios totaling one
billion dollars for various financial
concerns. Previously, Mr. Strang
was an investment officer in the
bond department of National Boule­
vard Bank of Chicago where he
supervised correspondent bank cus­
tomers’ bond portfolios.

Brenton Bank Sponsors Sweepstakes

John T. Carter, e.v.p., Brenton National Bank of Des Moines, is shown here with Wayne E. Swegle and Jerome L. Welter, (Gay Brenton,
communications assistant, looks on), two of the most recent winners in Brenton Bank’s Shazam sweepstakes. This sweepstakes is
designed to promote usage of automated teller machines bearing the new Shazamsm logo. Mr. Swegle has won a VHS remote control
video player/recorder and Mr. Welter, an AM/FM stereo cassette player.

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Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1986

52

Io w a N e w s

Hawkeye Sponsors Student Advisory Board

ning as accounting supervisor and
was promoted to accounting officer
in 1983. In 1984, he became assis­
tant vice president/money desk and
in 1985, was promoted to director of
financial planning in the control
department.
Mr. Richter was hired in 1981 as a
management trainee in check pro­
cessing. While in operations, he also
served as a float analyst and in 1983
became payroll processing super­
visor. In 1983, Mr. Richter was pro­
moted to financial planning analyst
and in 1984, was promoted to ac­
counting officer.
Mr. Arens was hired in 1984 as a
management trainee/credit analyst;
he was later promoted to senior
credit analyst in 1985.
* * *

Alan Rivers, vice president, com­
mercial loans, of Hawkeye-Capital
Bank & Trust
has been named
ABOVE— Hawkeye Bank & Trust of Des Moines’ Drake Student Advisory Board was formed
h ead of th e
as an open line of communication between Drake University students and Hawkeye Bank &
Trust. This open line is achieved through the development of a positive and personal rela­ bank’s loan area.
Mr. R ivers,
tionship between advisory board members and the bank. The students selected to repre­
sent Drake University on the advisory board are: Barry Blankfield, a senior majoring in bank who’s responsi­
management and investments; Melinda Brown, a junior majoring in speech communica­ bilities will in­
tions and business; Amy Drushella, a senior majoring in marketing; Christopher Faber, a
senior majoring in corporate finance; Suzanne Geer, a junior majoring in accounting and clude the con­
corporate finance; Lois Grote, a junior majoring in music education, and Michel Owens, a sumer, commer­
cial, and real es­
freshman majoring in international relations and foreign policy.
tate loan func­
tions of HawkA- «'VERS
eye-Capital Bank & Trust, has been
Bradley L. Burt has been named lighting ceremony and holiday open with the bank since 1982.
vice president and director of mar­ house.
* * *
Mrs. Branstad, the wife of Gover­
keting of Bank­
nor Terry Branstad, switched on the
ers Trust Com­
lights of a 25-foot tree, placed in the Changes Told in Dubuque
pany. Mr. Burt
bank’s reflecting pool. The tree, pre­
joined the bank
William G. Kruse, chairman and
viously located at the Des Moines CEO of the First National Bank of
in 1973. In 1983,
public library, was purchased from Dubuque, has announced that a plan
he took a leave
the Greater Des Moines Chamber
of absence from
Federation and helped to add to the of ownership restructure of First
his duties as vice
festive atmosphere along Douglas National Bank was completed on
p re s id e n t
of
December 16, 1985. First Dubuque
Avenue during the holiday season.
commercial lend­
Corporation is now the parent com­
* * *
ing to pursue the
pany of First National Bank and the
proposed devel­
opment of the Iowa World Trade
Bankers Trust has recently pro­ former stockholders of First Na­
Center. He served as vice president moted John B. Willmore to control­ tional Bank are now the stock­
of the Iowa World Trade Center ler, Ralph Rich­
holders of First Dubuque Corp.
Development Company. Mr. Burt is ter to assistant
The same management will serve
a graduate of Simpson College controller/finanFirst Dubuque Corp. that serves
where he earned a degree in eco­ cial planning,
First National Bank.
nomics.
and David E.
* * *
Arens to credit
Added in Hills
manager.
Brad M. Langguth has joined the
Mr. Willmore
Brenton Bank and Trust Com­
staff of Hills Bank and Trust Com­
pany of Urbandale recently invited joined Bankers
pany in Hills as an assistant vice
its customers and the community of Trust in 1982 as
president. He comes from Bedford
J. WILLMORE
Urbandale to join Chris Branstad an administrawhere he was employed by the State
and her children, Eric, Allison, and tion project man­
Savings Bank.
ager,
transferred
to
financial
plan­
Marcus, for a special Christmas tree
Northwestern
Banker, January, 1986

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Federal Reserve Bank of St. Louis

Io w a N e w s

ENJOYING themselves during First Interstate Bank Des Moines’ “ Business After Hours,”
'an event sponsored by the Des Moines Chamber of Commerce, were, from left: Ollie Hagen,
pres. First Interstate of Iowa, Inc.; Andy Mooney, pres., D.M. Chamber of Commerce, and
Robert G. Millen, pres. & ceo., First Interstate Des Moines. The “ Business After Hours,”
gatherings are opportunities for local businesses to “show off their companies,” a D.M.
Chamber representative said. The program, which began on a quarterly basis, now takes
place monthly.

in 1972 in the bookkeeping depart­
Five Promoted in Ames
Five have been promoted at First ment.
Kim Shields was promoted to
National Bank, Ames.
check processing supervisor. She
joined the bank in 1981 as a teller.
Linda Bottorff was advanced to
senior secretary. She joined the
senior vice presibank in 1981 as a secretary and re­
ceptionist at the main bank.

U niversity o f- E. JACOBSON
fice.
Nancy Linden has been promoted
to head bookkeeper. She joined the
bank in 1979 in the bookkeeping de­
partment. Janis Strum was ad­
vanced to assistant head book­
keeper. She joined the bank in 1957,
and after a ten year absence rejoined

Promoted in Davenport
Peter J. MeAndrews has been pro­
moted to first vice president at
Davenport Bank and Trust Com­
pany. He will head the bank’s new
consumer banking division, which
was created by integrating existing
bank services and functions which
cater directly to the individual cus­
tomer. Mr. McAndrews previously
served as president of marketing.

STAKING part in Brenton Bank’s business breakfast were, from left: C. Robert Brenton,
Ipres., Brenton Banks Inc.; Dr. Edward J. Campbell, speaker & chf. economist, Brown Broth­
e rs Harriman & Co., N.Y., and Thomas J. Flynn, v.p., trust div., Brenton Banks. Dr.
ICampbell’s presentation gave insight to economic trends in housing, agriculture, and the
¡government, which “could have a surplus in ten years,” Dr. Campbell said.

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Federal Reserve Bank of St. Louis

Promoted in W aterloo
Peoples Bank and Trust Company
of Waterloo announced the promo­
tion of James L.
Friedl to the
position of assis­
tant vice presi­
d e n t in th e
bank’s lending
division.
M r. F rie d l
joined the bank
in 1979 and is a
graduate of the
J.L. FRIEDL
U n iv e rsity of
Northern Iowa with a degree in fi­
nancial m anagem ent. He had
worked in the bank’s trust division
prior to joining the loan division in
1984.
Midwest Banking
Services Formed
Chuck Fritz, president of KelloggSully Bank & Trust, has formed
Midwest Banking Services, a con­
sulting firm located at Kellogg
which will specialize in assisting
banks with their loan portfolios. Mr.
Fritz resigned from the Kellogg
Bank on December 12 to devote his
time to the new venture.
BIOS Elects AVPs
Brian Scott, president of Banks of
Iowa Computer Services, Inc., has
announced the election of three new
assistant vice presidents. All three
are also branch managers of remote
item processing centers.
T. Ross Chess, assistant vice
president and branch manager of the
Cedar Rapids Branch, has been
employed at BICS since 1980. He
was previously employed by Old
Kent Financial Corp. and TransAmerican Financial Corporation,
both of Michigan.
Stephen Anderson, assistant vice
president and branch manager of the
Des Moines office, joined BICS in
1979 after employment with the
Federal Reserve Bank and the Iowa
Des Moines National Bank, and has
also worked in the branch network
in a number of key positions, all of
which were at the Des Moines site.
Randy Johnson, assistant vice
president and branch manager of the
Waterloo site, joined BICS in 1983
as branch manager, and was pre­
viously employed as an officer of the
Pleasantville State Bank.
Northwestern Banker, January, 1986

54

Io w a N e w s

Betty Steele Retires
One of the most prominent women
bankers in Iowa and the nation com­
pleted her bank­
ing career De­
cember 31 when
Betty L. Steele
r e tir e d
from
Brenton Banks,
Inc., as vice
p re sid en t and
secretary after a
32-year career
with the Brenton
B.L. STEELE
organization.
Mrs. Steele began her career at
the Brenton bank affiliate in Beaverdale in 1953. She was made an offi­
cer in 1959, then was advanced in
1966 to be vice president in charge
of the real estate and trust depart­
ments. In 1967 she joined the Bren­
ton Banks, Inc., holding company
staff as vice president/secretary and
served as a member of the board of
directors from 1967 to 1983. Mrs.
Steele was on the Brenton market­
ing committee for several years,
chairing the women’s division of the
marketing committee. She was also
editor of the Brenton Teller for 10
years.
Apart from her work as a Brenton
officer, Betty Steele was best-known
for her years of dedicated work on
behalf of the National Association of
Bank Women. After many years of
service to NABW, she became the
national president, the second Bren­
ton officer to hold that high posi­
tion. The other Brenton associate to
serve as NABW president was the
late Helen Rhinehart, a long-time
Brenton employee and the com­
pany’s first woman officer. Mrs.
Steele was a member of the NABW
board for eight years and a member
of the NABW Educational Founda­
tion board of trustees for two years.
Additionally, the Central Iowa
Group NABW funds the Betty L.
Steele scholarship, an award for
NABW members which is used for
management skills courses that were
developed during her term as
NABW president.
Mrs. Steele also served as a mem­
ber of the American Bankers Asso­
ciation government relations council
and its administrative committee
and as a contact banker with the
U.S. Congress on legislative mat­
ters.
In other areas of work, Mrs.
Steele was considered for the posi­
tion of U.S. Treasurer during the
Northwestern
Banker, January, 1986

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Federal Reserve Bank of St. Louis

Carter Administration. In 1976 she
was awarded the Chamber of Com­
merce National Leadership award.
She served on the Dean’s advisory
committee, College of Home Econo­
mics at Iowa State University in
Ames, and on Governor Branstad’s
public/private sector Task Force for
Volunteerism . C urrently, Mrs.
Steele is a director of the Central
Iowa Chapter, American Red Cross,
a member of its executive commit­
tee, and assistant treasurer.
NORWEST CONFERENCE. . .
(Continued from page 33)
closed-circuit TV and two-way
phone hookup he addressed the con­
ference and responded to questions
from the audience.
Sen. Boschwitz said he had voted
for the FCS bill the day before “to
stabilize an important segment of
our farm industry. Hopefully, this
will make people less queasy and
may help stabilize attitudes to other
lenders.’’ He added that he was
working hard for his amendment to
buy down interest rates between the
government and the lenders (an
amendment later defeated). He said
he favored Gramm-Rudman because
it forces Congress to act on deficits.
We should make adjustments to
every item of the budget, including
Social Security.”
Sen. Boschwitz’ address was fol­
lowed by an extended question and
answer period.
The conference at the Minneapolis
H yatt Regency concluded with the
annual Duck Dinner, with outstand­
ing entertainment provided by The
Golden Strings, a Minneapolis tradi­
tion of elegant music that is being
preserved through continuous per­
formances at other locations since
the downtown Radisson Hotel was
razed.
SUPERINTENDENT. . .
(Continued from page 45)
was graduated from Harvard Uni­
versity in 1954 and earned his law
degree from the University of Iowa
in 1957. After eight years of private
law practice he entered the banking
business in 1965. He was elected
chairman of Group 11 last February
at the annual meeting in Burlington
for a two-year term. In that position,
he is automatically a member of the
Iowa Bankers Association board of
directors, a post he has resigned to

accept appointment as superinten­
dent of banking.
Mr. Huston said farmers in his ®
area and all over the state are hav­
ing difficulty. Asked to what degree
the pressures of his job and having
to close 10 state-chartered banks in _
Iowa in 1985 affected his decision, 9
Mr. Huston said, “I didn’t like it. It
was distasteful. I could do it, but I
certainly didn’t enjoy it. The total
demand is so heavy now that it
needs someone on this job full­
time.” Mr. Huston had been com­
muting between Columbus Junction
and his Des Moines office weekly
and figures that he and his wife,
Alice, stacked up 140,000 miles on
their car in those round trips.
He assured reporters he did not
resign because of any difficulties in
his own bank or because he was re­
quested to do so. “ I did it of my own
volition,” he said, “because I felt
this was the best time to do it. I ’m
not unhappy with anybody or any­
thing. I don’t see any bank closings
for awhile, so I think this is a good
time to step aside.”
Mr. Huston is a native of Colum­
bus Junction and was graduated
from Iowa State University with a
degree in farm operations. He also
graduated from the G raduate
School of Banking at the University
of Wisconsin and from a senior bank
officer’s seminar at Harvard Univer­
sity. Mr. Huston served as president
of the Iowa Bankers Association in
1971-72. He was associated in man­
agement of Columbus Junction
State Bank with his father, H. Lee
Huston, for many years, and suc­
ceeded his father as president in
1970.

v

Index of
Advertisers
JANUARY, 1986

Commercial National Bank, P eoria................................... 32
Deems Associates, A m es................................................... 55
Daktronlcs, Inc...............................
10
Drovers Bank of C hicago................................................... 6-7
First National Bank, Lincoln............................................... 43
First National Bank, O m aha............................................... 38
First Wisconsin B ank..................................................... 28-29
Gross, Kirk Company, Waterloo......................................... 47
Iowa Bankers Insurance & Services, Inc.............................55
King Management Co., Des Moines................................... 48
LaSalle National Bank, Chicago ......................................... 9
L.F. Rothschild, Unterberg, Towbin................................... 12
Loss Prevention Services, Sioux City ................................. 3
Marquette Bank, Minneapolis ........................................... 24
Merchants National Bank, Cedar R ap ids........................... 2
National Bank of W aterloo................................................. 44
Norwest Corporation, Minneapolis................................... 56
Office Concepts, Ltd., Waterloo......................................... 50

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