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Missouri Bank
Its Move

Bank Officers’ Salary Survey
Federal Reserve Bank of St. Louis

Bob Louvar with his daughter, Courtney, discovering the wonders of nature together at Indian Creek Nature Preserve.

Great Accomplishments
Great accom plishm ents require
determ ination. H ard w ork.
And som etim es a little assistance.
Assistance from som eone w h o believes in
you. Som eone experienced. Som eone you
can trust to be steady and reliable.
Bob Louvar is a key m em ber o f the
corresp o n d en t banking team at M erchants
National Bank. W ith professionals like Bob
and assets o f over $660 million, MNB can
provide the financial assistance and team w ork
to support you r hard w o rk and
determ ination.
Together we can accom plish great things.
Call Bob Louvar at 319/398-4204 o r toll free
1-800-332-5991, ext. 204.


Strength of
Federal Reserve Bank of St. Louis

Merchants National Bank is i

Cedar Rapids. Iowa 52401

Member F D I C


Who’s the ATM network leader?

“The Plus System! network gave
us the technology we needed.”
“Before our expansion of
ATMs into a major conven­
ience store chain, we had been
with a competing shared
network,” relates Ron
Whiteside, vice president of
Capitol Federal Savings
of Denver.
“We switched to the Plus
System® network to take
advantage of their technology,
experience and customer base.
We also wanted to ensure that
customer transactions in these
convenience store locations
were secure. The Plus System®
network had the security and
Federal Reserve Bank of St. Louis

technology to satisfy our
“The fact that the Plus
System® network had the
largest customer base and more
ATMs in quality locations,”
cites Mr. Whiteside, “played a
major role in our choice of a
nationally, and now interna­
tionally shared ATM network.
Our membership in the Plus
System® network has proven
to be extremely beneficial to
both our association and our
Isn’t it time your financial
institution joined the Plus

System® network— the
premier choice for inter­
national ATM sharing?
For complete information
regarding membership, please
contact your local Plus
System® member, or call
Plus System, Inc. at
( 3 0 3 ) 5 7 3 -7 5 8 7 .



The premier choice.


JANUARY 1987 •

94thYear •

No. 1480


Results of the NORTHWESTERN Banker Salary Survey, conducted on a regular
basis for many years, are presented in this issue starting on page 15. Pictured on
the front cover is the beautiful new headquarters structure housing United Mis­
souri Bancshares, Inc., and its lead bank, United Missouri Bank of Kansas City.
Story and more photos on page 21.



1987 salary survey

An exclusive report from the NORTHWESTERN BANKER


Quick action recovery plan

How First National Omaha overcame EDP disaster


Unprecedented change, opportunity

First National Chicago Conference looks ahead


United Missouri’s new building

A standard of architectural elegance for Kansas City


Hung up on art!

Kearney, Nebr., bank sponsors its 10th exhibit

6 Dear Editor
8 Calendar
23 Illinois
25 Minnesota
26 Twin Cities
31 Wisconsin
31 Colorado
32 South Dakota


North Dakota
Des Moines
Index of Advertisers

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

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor

Ben Haller, Jr.

Robert Cronin

Melinda Sauers

No. 1480 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 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.
Banker, January, 1987
Federal Reserve Bank of St. Louis

ABA Com m unity •
Bankers Conference
i i | J ANDS-ON,” “ sleeves-up”
I workshops on vital com m it
nity banking topics will highlight
the American Bankers Association
1987 National Conference for Com­
munity Bankers, March 8-11, in
Examples of the workshops, pre­
sented by leading bankers, consul­
tants and academicians, include:
“Productivity: Tips to Help Your
Bank Achieve High Earnings;1^
“Impact of the New Tax Bill;’’ “ Im­
plementing Pricing Decisions;” and
“The CEO’s Responsibility in Mar­
keting Management.”
In addition, general sessiom
speaker David Glass, president,
Wal-Mart Stores, Bentonville, Ark.,
will describe the parallels between
banking and retailing. Also, a “spot­
light on the competition” will be pre*
sented by Anthony M. Frank, CEO,
First Nationwide Savings Bank and
First Nationwide Network, San
A perspective on how the ABA i®
meeting community bankers’ needs
will be provided by ABA President
Mark W. Olson, president, Security
State Bank, Fergus Falls, Minn. ^
A new feature of the conference
will be exhibits. The premier exposi­
tion will be a one-stop shopping cen­
ter of banking hardware, software,
consultants and othe industry essen^
“The National Conference for
Community Bankers is the working
forum and peer exchange for today’s
CEO,” according to ABA Communi^
ty Bankers Council Chairman
Franklin H. Moore, Jr., chairman of
the board and president, Commer­
cial and Savings Bank, St. Clair,
Mich. “ It will provide atten d ee^
with vital information for making
the right decisions on important
The conference will take place in
two hotels — the H yatt Regency^
and Phoenix Hilton — located
across the street from each other.
In addition to the conference pro­
gram, there will be a golf tourna­
ment, dynamic spouses’ program^
and Phoenix’s fam ous sunny
For additional information or con­
ference registration forms, contact
Fran Lowry at the ABA 2021%


Home Equity Loans
Federal Reserve Bank of St. Louis

Due to changes starting in 1987 on deductibility in consumer
interest this could become a substantial source of loan
volume and revenue for your bank.
We have developed a micro-computer based software system
to process open-end, variable rate loans and can provide
valuable assistance in setting up your in-house program.
Developed by bankers for bankers.
For m ore details write or c a ll either:
The National Bank of Waterloo
315 East 5th Street
Waterloo, IA 50703


Rec-Chek, Inc.
PO. Box 239
Nevada, IA 50201


“Letter to Sen. Grassley”
Editor’s Note: Our “Open Letter to Sena­
tor Grassley” in the December 15 issue of our
Weekly Newsletter drew immediate tele­
phone and letter response from readers, as
well as Sen. Grassley’s office. One of his aides
said there was “much misinformation” about
the new law and asked it we would meet with
Sen. Grassley in Des Moines, if an appoint­
ment could be arranged, to discuss Chapter
12 Bankruptcy. We agreed, of course. If that
ensues, we will keep readers informed. Ex­
cerpts from some of the banker letters re­
ceived in the first two days after publication
of that “Open Letter” and about Chapter 12
“Excellent letter to Senator Grassley. On
behalf of our staff, thanks for all your effort.
I am contacting Senator Grassley today!
Roger Doughan, President
First National Bank
Hampton, la.
“Hurrah for you! Your open letter to Sena­
tor Grassley is terrific.”
Bill Hess, President
Iowa Savings Bank
Coon Rapids, Iowa
“...very well written and it should get the
message out ot Chuck Grassley that he and
the co-sponsor really fouled up a lot of farm­
ers and banks. The banks will be very reluc­
tant to loan money collateralized by either
farm land or machinery and crops. In other
words, Chuck’s Chapter 12 Bankruptcy Law
has created a hell of a mess for everyone in
“Keep up the good work.”
R.L. Dixon, Chairman
Rolfe State Bank
Rolfe, la.
“Thank you for your letter to the Hon.
Charles Grassley in regard to Chapter 12
Bankruptcy. You and your publication have
added much to our voice being heard in
Washington. I hope the Senator accepts the
invitation to apear in Omaha on December
18. Thank you again.”
Robert E. Brown, President
The First National Bank
Missouri Valley, la.
“You have told it like it is and I hope it has
some influence on the Senator’s thinking.
Certainly the banking industry was unsuc­
cessful in their efforts to persuade him that
Chapter 12 would have a negative effect on
lending institutions and extending credit. I
sometimes feel as one of our good customers
told me some time ago, ‘My name might as
well be Ivan and I might as well live 20 miles
outside Moscow when it comes to communi­
cating with Washington.’ ”
Churchill T. Williams, Chairman
Oelwein State Bank
Oelwein, la.
Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

“An excellent letter to Senator Grassley
concerning Chapter 12 Bankruptcy. It is in­
conceivable to me that our Congressmen can
be so short-sighted to think that these losses
created as a result of Chapter 12 will dis­
appear and not be re-assessed to others, in­
cluding the banker and other lenders who
pay their notes.
“We have not had many Bankruptcies in
our bank in that we have been negotiating
problem loans with the farmer, except in one
situation where the farm customer took a
Chapter 11 Bankruptcy. We are currently re­
structuring our loan policy as a result of this
Chapter 12 legislation and it is going to
create a barrier for young farmers who want
to obtain credit to get into farming. One of
the ways for Congress to get rid of the family
farm problem is to create legislation such as
this that prohibits the creation of any more
family farmers.
“Keep up the good work.”
W. Dale Den Herder, President
American State Bank
Sioux Center, la.
“Thank you for your sincere and informa­
tive letter to Senator Grassley on behalf of
we community bankers! I t ’s gratifying to
know that we have someone in the public who
knows and understands the problems we’re
currently facing. Again, thank you!”
Steve Tscherter, Sr. Vice Pres.
Lincoln Savings Bank
Reinbeck, la.
“Congratulations on your letter to Chuck
Grassley! You hit the nail right on the head.
You’re like wine and cheese—you get better
with age!”
Robert R. Rigler, President
The Security State Bank
New Hampton, la.

paperman that he set the record straight for
his readers. In his October 29 column, Mr.®
White said, in part:
“Welcome back, Alice M. Dittman...Five
years ago, when the bankers last convened
here, I predicted that, under deregulation,
there would be little need in the future for the
likes of a Cornhusker Bank. I suggested that®
Dittman probably was attending her last
bankers’ convention...Dittman and her bank
are alive and well,” After quoting Alice on
Cornhusker Bank’s growth, Mr. White
wrote, “Dittman assures me that she has
every intention of coming to the next ABA®
convention in San Francisco. That one’s
scheduled for 1991.”
A salute to Donald K. White!

“Salute the Work You Do”


“I read with interest your article “Com­
munity Bankers Still Hurrahing” in the
November 10 issue. (See letter and comment
“On behalf of the community bankers of
Nebraska, let me salute the work you do and®
have done in promoting, recognizing, and
identifying the backbone of our communi­
ties—the banker.
“We appreciate the N o r t h w e s t e r n
B a n k e r and wish you continued success.
Again, our thanks.”
Kurt T. Yost, Executive Director
Nebraska Independent Bankers
Association, Lincoln, Nebr.

“Hurrah for your November 10 North- ^
w e s t e r n B a n k e r Weekly Newsletter!
“Hurrah for Alice Dittman and Cliff
“Hurrah for the Editor!”
John P. Sampson, Sr. V.P.
Norwest Bank Minneapolis, N.A. 0
Minneapolis, Minn.

“Donald K. White Makes Amends”

“I am enclosing a copy of the article in the
San Francisco Chronicle just in case you
didn’t receive it. Donald K. White certainly
did make amends with me!
“I have had many friendly calls and letters
from bankers around the country who have
seen your article or the ABA’s (ABA Bank­
ers Weekly). Even a couple of calls from West
Coast friends. It will indeed be interesting to
see what happens in the next five-year
period. I hope we are both around to see it.”
Alice M. Dittman, President
Cornhusker Bank
Lincoln, Nebr.
Editor’s Note: Alice Dittman shared with
us, prior to the recent ABA convention in
San Francisco, a Donald K. White column
published in the Chronicle five years ago
when the ABA convention was last in his ci­
ty. It predicted that the 1981 convention
would be “the last hurrah” for most of the
nation’s bankers, since there would soon be
only 500 banks, and the nation really didn’t
even need that many. He singled out Alice’s
bank and one in Kansas as paying their “last
hurrah” to the City by the Bay as a banker
conventioneer. We published most of his
column, along with Alice’s comments on how
well her bank has fared in those five years—
doubled in assets for a 15% annual growth.
She visited with Mr. White while at this
year’s ABA convention and he was not only a
good sport about it, but a good enough news­

“Enjoyed Excerpts”

“Enjoyed reading your October 20 reprint^
of excerpts from Ralph Zaun’s (1968) talk at®
the Houston IBAA convention. (“Are We
learning from the Past?”—Weekly News­
letter, October 20). It was darned good then
and it looks even better now. Ralph, of
course, is a very bright guy and has m ade^
significant contributions to our industry. He®
writes very well and it might be interesting if
you could get him to do a piece for the
N o r t h w e s t e r n B a n k e r on today’s condi­
Stan Barber, Chairman ^
Wellman Savings Bank ®
Wellman, la.
“Apt Description”

“I wanted to write and compliment you on
your excellent article entitled ‘Chapter 12, _
Clear Title Bring Concern’ (December 1®
Weekly Newsletter). You have most aptly de­
scribed both the turkey and the Christmas
sock lump of coal. Your comment also rela­
tive to ‘aid the farmer at the expense of lend­
ers mentality’ is also very appropriate in de- ^
scribing the tone of Congress at this time. ®
“We certainly appreciate your efforts in
this regard and congratulations on another
job very well done.”
John M. Green, President
Wauneta Falls Bank
Wauneta, Nebr.



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
your portfolio in the same light
as you do: As a crucial com­
ponent of your bank’s overall
position. Not as an independent
Federal Reserve Bank of St. Louis

That’s why before we make
a recommendation we conduct a
thorough study of your bank.
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
really need is BANK SERVICE.
Call Mark Rosen, Principal, at
(212) 412-2600.

Ü _______________________

Northwestern Banker, January, 1987

/ ----------------------------------------------------------------------------------------------------

Convention Calendar

\ __________________________ _______________________
ABA—American Bankers Association
AIB—American Institute of Banking
BAI —Bank Administration Institute
BMA—Bank Marketing Association
CFP—College for Financial Planning
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women, Inc.
RMA—Robert Morris Associates

National Conventions & Schools
Jan. 12—BMA Marketing Strategies on Tax
Reform Seminars, Westin O’Hare, Chi­
cago, III. (12th)—Holiday Inn Crowne
Plaza, Atlanta, Ga. (20th)—Hyatt Hotel,
Los Angeles, Calif. (28th)
Jan. 21 —RMA Managing Under Liability
Workshop, San Francisco, Calif.
Jan. 25-28—ABA Western Regional Confer­
ence for Bank Card and Credit Managers,
Hotel Intercontinental, San Diego, Calif.
Jan. 25-28—RMA Financial Statement
Analysis Workshops, New Orleans, La.
Jan. 26—RMA Managing Under Liability
Workshop, Atlanta, Ga.
Jan. 27-30—ABA National Insurance and
Protection Conference, Sheraton Harbor
Island, San Diego, Calif.
Feb. 1-4—ABA Telecommunications and Fi­
nancial Networks/Video Banking IV Con­
ference, Sheraton Harbor Island, San
Diego, Calif.
Feb. 3-6—BAI Current Dynamics in Bank
Management Conference, Phoenix, Ariz.
Feb. 8-11—ABA National Trust and Finan­
cial Services Conference, Westin Century
Plaza, Los Angeles, Calif.
Feb. 8-20—ABA National School of Retail
Banking, University of Oklahoma, Nor­
Feb. 10-11 —IBAA Long Range Planning
Seminar, Westcourt in the Buttes, Phoe­
nix, Ariz.
Feb. 11—RMA Managing Under Liability
Workshop, Dallas, Tex.
Feb. 12-13—IBAA Asset/Llability Manage­
ment Workshop, Westcourt in the Buttes,
Phoenix, Ariz.
Feb. 15-18—BMA Community Bank CEO
Seminar, Marriott’s Mountain Shadows
Resort, Scottsdale, Ariz.
Feb. 18-28—CFP Establishing a Financial
Planning Practice Seminar, (first in a se­
ries of three seminars), San Francisco,
Calif. (18th), Dallas Tex. (20th), Chicago,
III. (24th), Washington, D.C. (26th), and
Tampa, Fla. (28th).
Feb. 18-21—ABA Bank Investments and
Funds Management Conference, Mar­
riott’s Orlando World Center.
Feb. 22-25—BMA Technology for Finan­
cial Services Marketing Conference,
Phoenix Hilton.
Mar. 1-4—ABA National Fiduciary and Se­
curities Operations Conference, Anaheim
Mar. 2-6—Southeastern Essentials of Bank
Marketing School, University of Georgia,
Athens, Ga.
Mar. 4—RMA Managing Under Liability
Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

Workshop, Washington, D.C.
Mar. 8-11—ABA National Conference for
Community Bankers, Hyatt Regency Hil­
ton, Phoenix, Ariz.
Mar. 8-14—ABA National Compliance
School, University of Oklahoma, Norman.
Mar. 9-13—KBA, NBA School of Banking
Fundamentals, Holiday Inn, Kearney,
Mar. 15-17—BMA Trust Sales Management
Workshop, Westin Hotel, Chicago, III.
Mar. 15-18—BMA National Sales Confer­
ence, Atlanta Marriott, Atlanta, Ga.
Mar. 18—RMA Managing Under Liability
Workshop, Chicago, III.
Mar. 22-25—ABA National Conference on
Real Estate Finance, Hyatt Regency,
San Francisco, Calif.
Mar. 24-27—BAI Bank Auditors Conference,
Boston, Mass.
Mar. 25-27—ABA National Corporate Bank­
ing Conference, J.W. Marriott Hotel,
Mar. 29-Apr. 1—ABA National Retail Bank­
ing Conference, Atlanta, Hilton.
Apr. 1-5—IBAA Annual Convention, Orlan­
do, Fla.
Apr. 5-8—BAI Check Processing Confer­
ence, Nashville, Tenn.
Apr. 5-10—KBA, NBA Commercial Lending
School, Holiday Inn, Kearney, Neb.
Apr. 12-15—BMA Research and Planning
Conference, Westin St. Francis, San
Francisco, Calif.
Apr. 12-17—ABA Bank Trainers School,
University of Oklahoma.
Apr. 14-15—IBAA Bank Internal Auditing I
Seminar, Peabody Hotel, Memphis, Tenn.
Apr. 26-29—RMA Financial Statement
Analysis Workshops, Kansas City.
Apr. 26-29—BAI Security Conference, At­
lanta, Ga.
Apr. 26-29—BMA Commercial Lending Mar­
keting Conference, Westin Hotel, Chi­
cago, III.
Apr. 26-May 1—ABA National Commercial
Lending Graduate School, University of
Oklahoma, Norman.
Apr. 27-28—IBAA Bank Internal Auditing I
Seminar, Omaha Marriott, Omaha, Neb.
Apr. 28-May 1—BAI Forum IV: The National
Conference on Retail Banking, Chicago,

State Conventions & Schools
Jan. 22—CBA Annual Legislative Seminar
Reception, Denver.
Jan. 29—CBA Legal Compliance Video Tele­
conference, Denver.
Feb. 12—CBA Annual Security Seminar,
Mar. 20—CBA Investment Funds Manage­
ment Seminar, Denver.
Mar. 29-Apr. 1—CBA Washington Visit, Wash­
ington, D.C.
Apr. 2-3—CBA Retail Banking Conference,
Apr. 23-25—CBA Annual Legal and Compli­
ance Seminar, Denver.
Apr. 30—CBA/RMA Commercial Banking
Seminar, Denver.

May 1-2—CBA Ag Banking Seminar, Denver
June 3-6—CBA Annual Convention, Colorado#
Sept. 16-20—Independent Bankers of Colo­
rado Annual Convention, Beaver Creek,
Jan. 29—Bank Compliance Symposium, at
locations around the state.
Feb. 4-5— IBA Commercial Credit Conference,
Feb. 25-26—IBA Consumer Credit Confer­
ence, Woodfield.
Mar. 25-26—IBA Bank Operations Confer­
ence, Peoria.
May 7-8—IBA Trust Conference, Collinsville.
June 10-12—IBA Annual Convention, Pere
Marquette, Peoria.
Aug. 24-28—Independent Community Banks#
of Illinois School for Bankers, Illinois Wes­
leyan University, Bloomington.
Sept. 25-28—Independent Community Banks
of Illinois Annual Convention Exposition,
The Hamilton Hotel, Itasca.


Jan. 7, 8 & 9—IBA IRA/SEP Seminar, Sioux
City (7th), Cedar Rapids (8th), and Des
Moines (9th).
Jan. 29—IBA Bank Compliance Symposium,
Des Moines Area Community College,0
Ankeny, Kirkwood Community College,
Cedar Rapids, and Buena Vista College,
Storm Lake.
Feb. 4-14—IBA Commercial Lending School,
Iowa State University, Ames.
Feb. 6-7—IBA Group 1 Meeting, Sioux City. 0
Feb. 22-23—IBA Group 11 Meeting, Burling­
Feb. 25-27—IBA Mid-Winter Management
Conference, Steamboat, Colo.
Mar. 2-4—IBA Marketing Conference, Hotel
Fort Des Moines, Des Moines.
Mar. 11—IBA Legislative Reception, Hotel
Savery, Des Moines.
Mar. 16-18—IBA Ag Credit Conference, Scheman Center, Ames.
Mar. 22-27—IBA Consumer Credit School,
Drake University, Des Moines.
Apr. 4-8—IBA Washington, D.C. Trip, Westin
Hotel, Washington, D.C.
May 4—IBA Group 8 Meeting, Clinton.
May 5—IBA Group 4 Meeting, Cedar Rapids.
May 6—IBA Group 7 Meeting, Ames.
May 7—IBA Group 6 Meeting, Des Moines, f
May 18—IBA Group 5 Meeting, Council
May 19—IBA Group 2 Meeting, Ft. Dodge.
May 20—IBA Group 12 Meeting, Okoboji.
May 21—IBA Group 3 Meeting, Clear Lake.
June 8-19—IBA Ag Credit School, Scheman^p
Center, Ames.
June 21-26—IBA Iowa School of Banking,
University of Iowa, Iowa City.
July 23-25—Iowa Independent Bankers An­
nual Convention, The New Inn, Lake Oko­
Sept. 20-22—IBA 101st Annual Convention,
Convention Center, Des Moines.
Jan. 21-22—MBA Head Teller Workshop,
Ramada Inn, Moorhead.
Jan. 24-31—MBA Executive Trip and Semi­
nar, Barbados.
Jan. 29—MBA Compliance Teleconference,
Hilton Inn, Minneapolis.
Feb. 10-11 —MBA Senior Bank Management
Conference, Hyatt Regency, Minneapo-0

Convention Calendar. . .
(Continued from page 8)
Feb. 17-26—MBA IRA Seminar, at several
locations around the state.
Feb. 23-27—MBA Bank Operations School,
Radisson Arrowwood, Alexandria.
Mar. 5—MBA Investments Conference,
Hotel Sofitel, Bloomington.
Mar. 10—MBA Loan Documentation/UCC
9, Sheraton Park Place, St. Louis Park.
Mar. 11-12—MBA Commercial Lending
School Graduate Program (Tentative),
Twin Cities.
Mar. 17—MBA Dishonesty Seminar, Holi­
day Inn International, Bloomington.
Mar. 19—MBA Bank Director Seminar, Holi­
day Inn International, Bloomington.
Mar. 24—MBA Management Skills for
CEOs, Twin Cities.
Mar. 25-27—MBA Bank Compliance School,
Minneapolis Athletic Club.
Apr. 2—MBA Financial Institution Insur­
ance Seminar, Hotel Sofitel, Blooming­
Apr. 13-14—MBA Head Teller Workshop,
Sheraton Park Place, St. Louis Park.
Apr. 21 —MBA Product and Pricing Strate­
gies for Growth and Profitability (Tenta­
tive), Twin Cities.
Apr. 27-28—MBA Tri-State Trust Confer­
ence, Ramada Inn, Moorhead.
June 8-9—MBA 97th Annual Convention,
Marriott City Center, Minneapolis.
June 21-26—Minnesota School of Banking,
St. Olaf College, Northfield.
July 19-24—MBA Midwest Banking Insti­
tute, University of Minnesota, Morris.
Aug. 9-14—MBA Commercial Lending
School, St. Olaf College, Northfield.
Jan. 15-16—MBA Management Leadership
School, Park Plaza, Helena.
Feb. 4-6—MBA Ag Bankers Conference, Hol­
iday Inn, Bozeman.
Feb. 12-13—MBA Sr. Bank Management
Counsel Conference, Colonial Inn, Helena.
Mar. 13—MBA Women Bankers Conference,
Holiday Inn, Billings.
Mar. 26-27—MBA Education Conference,
Park Plaza, Helena.
Apr. 2-3—MBA Marketing Conference, Big
Apr. 30-May 1—MBA Trust Conference, Heri­
tage Inn, Great Falls.
May 14-15—MBA Retail Bankers Confer­
ence, Holiday Inn, Billings.
June 1-2—MBA Commercial Bankers Confer­
ence, Grouse Mountain Lodge, Whitefish.
June 11-12—MBA Real Estate Bankers Con­
ference, Sheraton Hotel, Missoula.
June 23-26—MBA 84th Annual Convention,
Sun Valley, Idaho.
Jan. 13 & 14—NBA Bank Directors Forum,
North Platte Stockman Inn (13th), and
Columbus Holiday Inn (14th).
Jan. 27-28—NBA Lending Conference,
Kearney Holiday Inn.
Feb. 11-15—NBA Bank Executive Confer­
ence, Marriott Marco Island, Fla.
Mar. 4 & 5—NBA Supervisory Development
Workshop, Lincoln Cornhusker Hotel
(4th), and North Platte Holiday Inn (5th).
Mar. 18-19—NBA Ag Outlook Conference,
Kearney Holiday Inn.
Federal Reserve Bank of St. Louis

Mar. 24-26—NBA Financial Institution Bond
Seminar, at locations around the state.
Apr. 7-22—NBA Head Teller/Teller Staff
Conference, at locations around the
May 14-17—NBA 90th Annual Convention,
Lincoln Cornhusker Hotel.
June 7-9—NBA Washington Legislative
Visit, Washington, D.C.
June 11—NBA Bank President’s Golf Tour­
nament, Lochland Country Club, Has­
North Dakota:
Feb. 3-4—NDBA Bank Management Confer­
ence, Kirkwood Motor Inn, Bismarck.
Feb. 27—NDBA “ Inside Bankruptcy” Work­
shop, Radisson, Fargo.
Mar. 26-27—NDBA Bank Investment Semi­
nar, Sheraton, Bismarck.
Apr. 10—NDBA Real Estate Finance, Holi­
day Inn, Bismarck.
Apr. 12-14—NDBA Washington Conference,
J.W. Marriott, Washington, D.C.
Apr. 27-28—Tri-State Trust Conference, Ra­
mada Inn, Moorhead.
May 31-June 5—NDBA School of Banking,
University of North Dakota, Grand Forks.
June 14-16—NDBA Annual Convention, In­
ternational Inn, Minot.
Aug. 10-21—Graduate School of Banking,
Sept. 21 —NDBA Northeast Group Meeting,
Park River.
Sept. 22—NDBA Northwest Group Meeting.
Sept. 23—NDBA Southwest Group Meeting,
Elks Lodge, Dickinson.
Sept. 24—NDBA Southeast Group Meeting.
South Dakota:
Jan. 29—SDBA Compliance Teleconference,
Holiday Inn, Sioux Falls.
Feb. 4—SDBA Annual Legislative Dinner,
Kings Inn, Pierre.
Mar. 24—SDBA IRA Seminar, The Hilton,
Rapid City.
Mar. 26—SDBA IRA Seminar, Sioux Falls.
Apr. 4—SDBA Teller/Staff Conference
Howard Johnson’s Motor Lodge, Rapid
Apr. 8-9—SDBA Agricultural Credit Confer­
ence, Kings Inn Convention Center, Pierre.
Apr. 11—SDBA Teller/Staff Conference
Ramkota Inn, Sioux Falls.
Apr. 12-14—SDBA Annual Washington, D.C.
May 10-12—SDBA Annual Convention,
Howard Johnson’s Motor Lodge, Rapid
Sept. 14—SDBA Group V Meeting, Howard
Johnsons, Rapid City.
Sept. 15—SDBA Group IV Meeting, Wrangler
Motor Inn, Mobridge.
Sept. 16—SDBA Group II Meeting, Guest
House, Watertown.
Sept. 17—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 18—SDBA Group I Meeting, Airport
Holiday Inn, Sioux Falls.
Oct. 8-9—SDBA Installment/Retail/Mortgage
Loan Conference, Ramkota Inn, Rapid
Oct. 21-22—SDBA Economics Seminar for
Young Adults, Holiday Inn, Mitchell.

Jan. 20, 21 & 22—WBA Ag Lenders Work­
shops, Civic Center, Eau Claire (20th),
Heritage House, Madison (21st), and Mid­
way Motor Lodge, Green Bay (22nd).
Feb. 1-3—WBA Strategic Management for
Bank Executives, Westwood Conference
Center, Wausau.
Feb. 9-11—WBA Bank Executive Seminar,
The Concourse Hotel, Madison.
Feb. 13-14—WBA Group 1 83rd Annual
Meeting, Hotel Sofitel, Minneapolis.
Feb. 22-Mar. 1—WBA Mid-Winter Retreat,
Caribe Hilton International, San Juan,
Puerto Rico.
Mar. 8-14—WBA Personal Banking School,
Westwood Conference Center, Wausau.
Mar. 10-25—AIB Teller Seminars, Civic Cen­
ter, Eau Claire (10th), Holiday Inn,
Stevens Point (11th), Midway Motor
Lodge, Green Bay (12th), Holiday Inn
Southeast, Madison (24th), and Red Car­
pet Hotel, Milwaukee (25th).
Mar. 18-19—WBA Marketing Conference,
The Radisson Hotel, Oshkosh.
Apr. 6-7—WBA Agricultural Bankers Con­
ference, Embassy Suites Hotel Regency
Conference Center, Green Bay.
May 17-19—WBA Legislatlve/Regulatory
Conference, L’Enfant Plaza, Washington,
May 31-June 5—WBA General Banking
School, St. Norbert College, De Pere.
June 7-13—WBA Commercial Lending
School, St. Norbert College, De Pere.
June 15-17—WBA Annual Convention, Em­
bassy Suites Hotel Regency Conference
Center, Green Bay.
Aug. 2-8—WBA Consumer Credit School,
St. Norbert College, De Pere.
Aug. 9-14—Basic Banking School, St. Nor­
bert College, De Pere.
Jan. 26—WBA IRA ’86—New Horizons Semi­
nar, Casper.
Feb. 5-6—WBA Credit Conference, Casper.
Feb. 26-27—WBA Ag Lending Institute, Cas­

ABA Investments Conference
To Focus on Techniques
Increasing bank profits through
portfolio management, treasury
issues and dealer/investment bank­
ing activity will be the focus of the
1987 American Bankers Association
Bank Investments & Funds Man­
agement Conference, Feb. 17-20, at
Marriott’s Orlando World Center,
Orlando, Fla.
Portfolio management will be
highlighted in workshops on active
portfolio management, multi-bank
holding company portfolio manage­
ment, investing excess funds and
mortgage-backed securities.
Traditional and innovative ap­
proaches to dealer bank and invest­
ment banking activities will be ad­
dressed in workshops on securities
subsidiaries, mutual funds, .interna­
tional financial markets and human
resource management.
Northwestern Banker, January, 1987


RMA Continues Its Lender Education
OBERT Morris Associates, the
national association of bank
loan and credit officers founded in

edited, the videotape is an excellent
vehicle for discussing this important
subject with a group of lenders and
1914, is continuing its stepped-up legal counsel, or on an individual
drive to offer first-class lending and basis. Videotape cost is $265 each
credit training to the nation’s banks for RMA members and $330 each
at a time when the credit processes for nonmembers.
are being tested to the limit. RMA’s
RMA headquarters is located at
membership of nearly 3,000 com­ 1616 Philadelphia National Bank
mercial banks and thrift institutions Building, Philadelphia, PA 19107,
accounts for 85 percent of the C&I telephone (215) 665-2850.
lending done by these types of finan­
cial institutions in the United Kansas City Promotions at
RMA’s latest four offerings con­ United Missouri Bank, N.A.
United Missouri Bank of Kansas
sist of an excellent training manual,
City, N.A., has announced the fol­
two workshops and a videotape.
The training manual, A Look at lowing series of officer promotions:
To senior vice president: Terry
the Credit Approval Process, ex­
amines the three methods for ap­ Dierks in the commercial loans divi­
proving a credit—individual signa­ sion. He has been vice president and
ture, multiple signature, and com­ manager of the bank’s State Line
mittee—and points out the pros and facility. Mr. Dierks joined UMB in
cons of each method. The mono­ 1977 and holds a BA degree from
graph is based on a survey of 300 Rockhurst College. Lance D. Blue,
senior commercial loan officers from who also joined the bank in 1977. He
RMA member institutions. Copies has a marketing BA degree from
are $18 each for members and $27 Southwest Missouri State Univer­
sity and an MA degree in Business
for non-members.
RMA’s 12th annual “Financial Administration from the University
Statem ent A nalysis’’ workshop of Missouri-Kansas City. John M.
covers funds flow, cash flow, fore­ Malinee, a CPA, joined UMB in
casting, workout problems, term 1982. He holds BA and MA degrees
loan analysis, seasonal borrowing in Business Administration from
needs, personal financial statement Rockhurst College.
To vice president: Mark A.
analysis, ratio analysis, and overall
business evaluation. It will be of­ Schmidtlein, who joined the bank in
fered January 25-28 in New Orleans 1982 after graduating from the Uni­
and April 26-29 in Kansas City. The versity of Missouri-Columbia with a
fee is $395 for RMA members and BA degree in agriculture. He also
holds an MA in Business Adminis­
$490 for nonmembers.
The workshop “Managing Lender tration from Rockhurst College.
Liability” has been designed to ad­ Lynn A. Wood in the personal finan­
dress one of the most critical issues cial services division. Mrs. Woods
facing bankers today, since one ad­ joined United Missouri Bank in
verse judgment can devastate the 1984 and previously was with Walsresources of even the most finan­ worth Publishing Co. in Marceline,
cially sound institution, RMA Mo. She has a BA degree from the
points out. This one-day workshop University of Missouri-Columbia.
points out where and how lenders Linda Kovar, who joined UMB in
run into trouble throughout the life 1980. She has an associate’s degree
cycle of a credit. It will be offered from Maple Woods Community Col­
January 21 in San Francisco, Janu­ lege.
To assistant vice president:
ary 26 in Atlanta, February 11 in
Dallas, March 4 in Washington, Melinda Moss, a public relations of­
D.C., and March 18 in Chicago. The ficer for all United Missouri affili­
fee is $195 for RMA members and ates throughout the state, has been
with the bank since 1983. Her pre­
$250 for nonmembers.
The Lender Liability one-hour vious work was with Midwest Re­
videotape will provide bankers with search Institute. Ms. Moss holds a
practical insights needed to avoid BA in Journalism degree from Kan­
traps that can lead to crippling law­ sas State University. Nancy E.
suits. Professionally produced and Levin is responsible for coordinating

Banker, January, 1987
Federal Reserve Bank of St. Louis

marketing efforts for all UMB affili-#
ates as well as the Bankcard Center
of UMB main bank. She went with
UMB from her previous work at
Avon Books/Hearst Corporation of
New York. Rhonda Thiedke moves#
up from trust officer in the employee
benefits division. Mrs. Thiedke has
been with the bank since 1978.
Mary Ann Oertel was promoted
to trust officer in the trust securities#
division. She started with the bank
in 1969.
Heller Appoints Two
Heller Financial, Inc., Chicago,
has reorganized its Central Asset
Based Finance Division and has ap­
pointed two new divisional man­
agers. The announcement was m ade#
by Michael J. Litwin, executive vice
president of the company’s Commer­
cial Financial Services Group.
The reorganized Central Division
will provide asset-based financing#
services through Heller’s Cleveland
and Detroit offices, as well as
through National Acceptance Com­
pany of California, a subsidiary of
Heller Financial, headquartered in #
Los Angeles. In line with this re­
structuring, William H. Bloom has
been named senior vice president
and division manager of the Central
Division. He joined Heller in 1965#
and has served as a senior vice presi­
dent of the Central Division since
In addition, a new Midwest Divi­
sion has been formed to include a ll#
Chicago asset-based finance opera­
tions. Mitchell F. Vernick has been
appointed senior vice president and
division manager.
He was formerly with Citicorp In- •
dustrial Credit and also with Conti­
nental Bank.
Wells Fargo Moves 3
Denver Offices Together
Wells Fargo Credit Corporation,
which offers consumer and commer­
cial borrowers a variety of loan pro- £
ducts secured by real estate, has
moved its Denver regional office to
new quarters at 4643 South Ulster
St., Regency Plaza.
The Credit Corporation is the f
third Wells Fargo entity to move
into the building. Wells Fargo Ag
Credit, an agribusiness lender, and
Wells Fargo Realty Advisors also
maintain regional offices in the #

Introducing BANKLINE— the turnkey bank
processing system. It offers you a long term solution
to your banking requirements at a surprisingly
low cost.
“We expect to save at least $125,000 per year
over our previous data processing method,” says
Don Fought, president of New Iberia National Bank,
New Iberia, Louisiana. “The BANKLINE System
has definitely helped us improve our bottom line.”
This revolutionary system gives you the flexibility
of larger computers without the cost. You gain the
benefits of a fully integrated banking system
including increased productivity and the immediate
offering of new products and services. You save by
avoiding the cost and problems associated with

hiring and maintaining a data processing program­
ming staff.
BANKLINE costs you less and gives you more.
To start cutting your data processing costs call

BANKLINE is a division of
Security Pacific
Information Systems, Inc.





Say Hello to Flexibility.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1987


FBS Capital Markets Group
Opens London Subsidiary
The FBS Capital Markets Group,
Minneapolis/St. Paul, Minn., has an­
nounced the opening of FBS Capital
Markets Ltd., a new foreign securi­
ties subsidiary in London. The
group is the capital markets arm of
Minneapolis-based First Bank Sys­
tem, the 15th largest bank holding
company in the United States.
“Our presence in London will
enable us to bring a broad range of
investment vehicles to smaller and
mid-sized corporations and financial
institutions in both the U.S. and
Europan markets,” said Gerald A.
Kraut, executive vice president and
head of the FBS Capital Markets
Group. “We believe these companies
are not well served by major invest­
ment firms and that we can act as a
catalyst in bringing valuable oppor­
tunities to corporations and finan­
cial institutions overlooked by the
major players in the market.”
FBS Capital Markets Ltd. is the
first foreign securities subsidiary
to be established in London by a
Minnesota bank holding company.
The firm is headed by Kenneth M.
Duncan, managing director, and
located at Winchester House, 80
London Wall.
According to Mr. Kraut, benefits
to clients will include increased in­
vestment opportunities, access to
new sources of funds using the debt
markets and the ability to trade
U.S. Treasury securities virtually
around the clock.
Continental Illinois Corp.
Settles Class Action Suit
Continental Illinois Corporation,
Chicago, announced Nov. 25 it has
agreed to settle a consolidated class
action with a class consisting of per-

sons who purchased Continental Illi­
nois shares from July 21, 1982,
through July 11, 1984.
The consolidated action com­
prises two suits that were filed on
June 1, 1984, and Oct. 3, 1984. In
addition to Continental Illinois Cor­
poration, defendants in the consoli­
dated suit are Continental Illinois
National Bank and Trust Company
of Chicago and five former or pre­
sent officers and directors of both
organizations. The class action com­
plaints alleged that the defendants
violated federal securities law.
In the settlement, Continental Il­
linois will pay $17.5 million to the
class, and in return the suit will be
dismissed against Continental Illi­
nois Corporation, Continental Illi­
nois National Bank and the indivi­
dual defendants. Funds for this set­
tlement will come from a reserve set
aside previously, and therefore the
settlement will not have an impact
on current operating results.
The settlement is subject to
review and approval by U.S. Dis­
trict Judge Harry D. Leinenweber.
The consummation of this settle­
ment would resolve the last pending
Continental Illinois shareholders’
class action against the corporation
involving the company’s financial
disclosures prior to this restructur­
ing in 1984. The settlement of
another consolidated class action in­
volving Continental Illinois share­
holders was announced earlier this

Security Pacific Markets
Student Loan Module
Financial institutions now can
take advantage of a complete stu­
dent loan processing package of-

The Carpenters Pension Fund of Illinois, covering the State of
Illinois and the eastern half of Iowa, announced today a fin a nc­
ing program of new and rehabilitation construction projects.
The Pension Fund is interested in providing financing of con­
struction and end loans at com petitive rates. The servicing of
these loans, ranging from $250,000 to $2,000,000, w ill be
handled through local banks. The program is available for com ­
mercial and residential projects.
For further inform ation, please contact: Frederick A. Westmark, A dm inistrative Manager, Illinois Employee Benefits Cor­
poration, 28 North First Street, Geneva, Illinois, 60134, 312/

Banker, January, 1987
Federal Reserve Bank of St. Louis

fered through the BANKLINE D i#
vision of Security Pacific Inform­
ation Systems, Inc., Phoenix, ac­
cording to Joe Ballacchino, director
of systems and programming for
BANKLINE. He said this new m o#
dule will give institutions the ability
to process student loans with ex­
ceedingly fast turnaround time from
student application to guarantor ap­
Mr. Ballacchino said the student
loan module offers complete report­
ing capabilities for internal, guaran­
tor, and government reporting. The
system provides for check distribu#
tion, check reconciliation, and loan
sale processing. All entry and main­
tenance activities are performed in
an on-line, real-time environment.
He added that the module is fully#
integrated with all other compo­
nents of the BANKLINE System,
and said the student lending pack­
age also can be combined with the
BANKLINE Customer Information^
File and General Ledger System for
use in a stand alone mode.

Deluxe Buys Data Systems
Deluxe Check Printers, Incor­
porated, St. Paul, Minn., has an­
nounced the execution of a definitive^
agreement for the purchase of A.O.
Smith Data Systems, Inc., a subsi­
diary of A.O. Smith Corporation.
DSI, based in Milwaukee, is a
leading supplier of electronic funds^
transfer software and processing
services, particularly for automated
teller machines and point-of-sale
equipment. It provides EFT pro­
cessing services for 10 of the 20^
largest shared ATM networks in the
United States. DSI has estimated
sales for th e y ear 1986 of
The acquisition of DSI will pro-^
vide Deluxe an important additional
service to offer to its financial insti­
tution customers, and an opportuni­
ty to participate in the growth of
services related to all aspects of th e ^
payments system — automated
teller machines and point-of-sale
systems, as well as checks.
DSI began serving financial insti­
tutions with electronic funds trans-#
fer services in 1977, starting with
the TYME network in Wisconsin,
the first state-wide shared ATM net­
work in the U.S. It was incorporated
as a subsidiary of A.O. Smith Corpo-#
ration in 1984.

Continental Corporation
Establishes London Office
Continental Illinois Corporation,
Chicago, has established a subsidi­
ary in London to operate in the inter­
national securities and capital mar­
The new company, Continental Il­
linois Limited (CIL), a subsidiary of
Continental Illinois National Bank
and Trust Company of Chicago, has
total capital of $25 million and of­
fers a wide range of financial pro­
ducts and services, including securi­
ties sales and trading, corporate fi­
nance, interest rate products, leas­
ing and trade finance. Continental
Illinois previouisly sold its London
merchant bank in July 1984.
BMA Hosts Three Meetings
Bank Marketing Association, an
affiliate of the American Bankers
Association, has scheduled three
conferences in the early weeks of
1987 to assist bank management in
evaluating various marketing pro­
grams for their banks in today’s
highly competitive climate.
The first, scheduled for February
15-18 at the Mountain Shadows Re­
sort in Scottsdale, Ariz., is BMA’s
1987 Community Bank CEO Semi­
nar. It is aptly titled, “Tomorrow’s
Survival—A New Horizon.’’ The
program will offer prominent, quali­
fied speakers, as well as workshop
sessions on profit-building.
The second, “Technology Can
Make a Difference,’’ is slated for
February 22-25 at the Phoenix Hil­
ton Hotel. The three-day meeting is
designed to help marketing execu­
tives use technology more profitably
in their institutions, such as in- lob­
by terminals and platform CRTs, to
increase product sales and educate
The third will be the Annual Corporate/Commercial Marketing Con­
ference scheduled April 26-29 at the
Westin Hotel in Chicago. This dis­
cussion of “how to” marketing tech­
niques to reach segments of the cor­
porate middle market will be a prime
focus of the meeting designed for
line officers and staff marketing pro­
fessionals who have a role in devel­
oping or promoting small business
and middle market commercial
loans and corporate services.
BMA headquarters at 309 West
Washington St., Chicago, 111. 60606,
telephone (312) 782-1442.
Federal Reserve Bank of St. Louis

LaSalle National Bank supports you. With
more than half a century oi e x p erien c e ...
innovative products... responsive serv ice...
an d d eep commitment to the market.
Our goal is to help you enhance your over­
all performance. LaSalle takes a consulting
approach to correspondent banking, working
closely with you to develop strategies that
improve profits, growth and efficiency. We offer
individualized service an d comprehensive
capabilities, including:
• multiple investment consulting
• credit and financial services
• global trade finance
• merger and acquisition consulting
• trust, treasury an d m any other services
In addition, LaSalle ensures dependable,
cost-effective check processing, collections,
loan overlines and the other standards of cor­
respondent banking.
As your Midwestern neighbor, we share
your perspective an d regional loyalties. As a
Chicago bank with international resources,
LaSalle c a n share m oney-center ban k in g
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m a n y a d v a n ta g e s w ell w o rth
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del a n d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le support —with b etter service,
better products and better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Northwestern Banker, January, 1987

good banking
with strong

Keeping competitive and staying profitable is a tough balancing act these
days. You’re looking for good service, availability and pricing that can keep
your day-to-day operations in the black.
At United Missouri, a personal representative works with you on a
continuing basis to maintain this balance. Through that representative
you have access to our new availability schedule that decreases float costs.
And to investments, brokerage services, asset/liability management, data
processing services, bankcards and loans.
Our services are competitively priced to help your bank improve
the bottom line, and all are backed by the expertise and careful market
forecasting that have built United Missouri into a major banking force.
To learn more about our services, call Phil Straight in Kansas City.

of Kansas City, n.a.
P.O. Box 226, Kansas City, Missouri 64141, (816) 556-7900
Federal Reserve Bank of St. Louis





1987 Salary Survey




executive officers of community
banks in 10 upper midwest and
mountain states in 1987 are ex­
pected to average 3.7%, according to
a salary survey conducted recently
by the N orthw estern B a n k e r .
Second officers are slated for a 3.95%
average base pay increase, while
third officers should have a salary

increase of 4.66%, according to the
The bad news is that one out of
four persons among the three officer
levels will not have a 1987 pay in­
crease, as stated in survey replies.
A containm ent of inflation,
coupled with a severe ag depression
in the midwest, have combined to
keep a lid on salary increases for two

straight years, compared with aver­
ages reported in other parts of the
nation among various industries.
Considering all survey respon­
dents, 25.2% do not anticipate
salary increases for CEOs, second or
third officers. That average was ar­
rived at by tabulating “no increase”
for CEOs in 30% of the replies, while
that figure dropped to 24% for sec-

Charts 1A, 1B and 1C show incomes for CEOs, 2nd Officers and 3rd Officers respectively. Each chart shows banks grouped in
Column 1 by five asset sizes. Column 2 gives a comparison between 1986 salaries and 1987 projected salaries, with the
resulting percentage increase listed in Column 3 for each group. In columns 4 and 5, average dollar amounts are shown for
1986 bonus and Other Income. The figures in parentheses directly behind these amounts show the percentage of respondents
who paid those amounts. In Column 6, the first figure shows the percentage of respondents who own some stock in the bank
or holding company. The figure in parentheses indicates the percentage of respondents who own 50% or more of the stock,
and these figures appear only for CEOs since no respondents listed 2nd or 3rd Officers holding 50% or more of the stock.
Assets in
Up to $15





’86 - ’87

% Increase
’87 to ’86

$ 6,552 (58.0%)

Other Income
$5,290 (51.0%)

6,138 (58.6%)

3,041 (50.6%)

65% (17%)


10,666 (51.5%)

4,660 (24.9%)

72% (13%)


20,506 (47%)

5,917 (33%)

76% (13.5%)






Federal Reserve Bank of St. Louis

$10,966 (54%)

$4,727 (40%)

Common Stock
Ownership By
76% (23%)

72% (17.4%)
Northwestern Banker, January, 1987



Assets in
Up to $15





’86 - ’87

% Increase
’87 to ’86


$3,217 (75%)

Other Income
$4,280 (43%)

3,446 (71%)

778 (29%)

Common Stock
Ownership By



4,476 (74%)

2,536 (46%)



6,398 (74%)

2,422 (35%)









ond officers and 21.5% for third offi­
cers. Even higher percentages of “no
increase” are noted in the smaller
banks of under $30 million assets.
Further study shows that the
bulk of the “no increase” replies are
centered in Iowa and Nebraska,
where the percentages of “no in­
crease” are 33% and 37% respec­
tively. In fact, among all banks re­
sponding to the survey, and among
all three officer categories surveyed,
the total in Iowa and Nebraska ac­
counts for 81% of all respondents
stating “no increase”!
Among Iowa banks replying, 40%
stated “no increase” for CEOs, 32%


$4,384 (74%)

$2,504 (38%)

for second officers, and 25% for 1987 for (CEO, 1st Officer, 2nd Offi-#
third officers. In Nebraska, the “no cer); 1986 salary; % increase; esti­
increase” responses were even mated 1986 bonus; other 1986 in­
higher—46% for CEOs, 33% for sec­ come—e.g., insurance and real
ond officers and 30% for third offi­ estate commissions; % of bank’s
common stock owned by each of th e #
On the negative side, those totals three officers?
reflect the toll taken by the de­
2. Other than your top three offi­
pressed ag economy; however, on cers, what percentage increase do
the positive side, it shows that bank you plan for: Other Officers; Nonmanagement is taking cost contain­ Officer Staff?
ment steps to offset income loss.
3. How many full-time employees
on your staff (please count each two
The Questionnaire
half-time employees as one full-time
As in past surveys, participants employee)?
were asked these three questions:
Respondents also were asked to #
1. What is the planned salary in check appropriate asset size of their

Assets in
Up to $15





’87 - ’86

% Increase
’87 to ’86

’86 Bonus
$2,042 (78%)

Other Income
$ --.

Common Stock
Ownership By


3,650 (46%)

4,013 (50%)


4,218 (61%)

4,188 (33%)


5,438 (51%)



Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

$3,837 (59%)







17.1 %



“ What percentage increase do you plan for...”
Assets in
Other Officers

Non-Officer Staff

Up to $15
$16 to $30
$31 to $50
$51 to $100
$101 to $150

3.1 %









27.1 %
16.1 %














33.7% over A
32% over B
14.1 % over C
27.2% over D

“ How many full-time employees on your staff (please count each two half-time
employees as one full-time employee)?”
Assets in
Assets per Employee
No. of Employees
Up to $15
$16 to $30
$31 to $50
$51 to $100
$101 to $150

increases planned for these two
groups. One distinct difference
noted is the 1.8 % increase noted for
Other Officers in banks Up to $15
bank and give the name of their million. It is probable that some re­
state. They were asked not to sign spondents of this size category do
their names.
not have other officers besides the
Question 1
first three and instead of marking
What is the planned income
they may have entered “ 0 ”
1987 for the following, and their which was intended to mean “no in­
1986 income (1st Officer, 2nd Offi­ crease.” Other than that aberration,
cer, 3rd Officer)?
the category reporting the lowest
Chart No. 1 gives the 1986-87 proposed salary increase in Chart
salary comparisons for three offi­ No. 3, as well as for the top three of­
cers, divided as Charts No. 1A ficers, is the largest size group—
(CEOs), IB (2nd Officers), and 1C $101 to $150 million— with 3.0%
(3rd Officers). These charts are self- and 3.1%. In contrast, the $51 to
explanatory by reading the legend $100 million group consistently
accompanying Chart No. 1A. Where shows the highest proposed salary
spaces have been left blank, it was percentage increase. Also, as noted
felt the minimal number of answers in the following chart, the respond­
in those categories would not be ing banks in the $51 to $100 million
meaningful, so rather than express bank size are the most efficient.
them as averages they were left out.
Question 3
Chart No. 2 considers the relationQ. How many full-time employees
ship of salary in each asset size to on your staff (please count each two
the next. In each of the three officer half-time employees as one full-time
listings, the five asset sizes (noted in employee)?
salary Chart No. 1) are listed A (up
Chart No. 4 shows the number of
to $15 million) through E ($100 to employees reported by the respon­
$150 million). Under the CEOs dents to this survey. The results
chart, for example, the second asset should be used as a guideline only,
size B ($16 to $30 million) shows an since there was wide variation
average salary 36.3% higher than A. within each asset size group. How­
The same comparisons are given for ever, the results fall strikingly close
second and third officers.
to those reported in the past two
Question 2
salary surveys. As was reported in
Q. Other than your top three offi­ the December 1984 Salary Survey,
cers, what percentage increase do each asset size group became more
you plan for Other Officers and for efficient so far as number of em­
Non-Officer staff?
ployees per millions of assets until
Chart No. 3 shows the percentage the $100 million mark was reached;
Federal Reserve Bank of St. Louis



at that point, both in the 1984 report
and in this one, a sharp drop in
assets per employee is noted.
The average of assets per
employee was arrived at by taking
the mid-point of each asset group
($7.5 million in the under $15 million
group, for example, or $40 million
for the $31 to $50 million) group and
dividing that dollar amount by the
average number of employees for
the size group.
Chart No. 5
Finally, Chart No. 5 shows the re­
lationship of second and third officer
salaries to the CEO salary and to
each other.___________________ □
Showing relationship of No. 2 Officer
salary to CEO salary. (E.G., 2nd Offi­
cer salary in banks under $15 million
assets = 69.8% of CEO’s salary.)
Assets in

to CEO

Up to $15
$16 to $30
$31 to $50
$51 to $100
$101 to $150
Average =


Showing relationship of No. 3 Officer
salary to CEO and No. 2 salaries.
Assets in
to #2
to CEO
Up to $15
$16 to $30
$31 to $50
$51 to $100
$101 to $150
Average =



Northwestern Banker, January, 1987


THIS plane prepares for takeoff to the NCR plant in Dayton, Oh., carrying First National’s
backup equipment. Two planes were flown daily from Omaha to the bank’s off-site backup
facilities in Dayton.


First National Omaha Shows:

How Quick Action Recovery Plan
Overcame Expensive EDP Disaster
T SEEMED to be the heady stuff prime time crime
dramas are made of. However, the figure in electri­
clothes who was splicing wires at 1:00 a.m. Sun­
day morning, November 2 inside a critical control
panel was, indeed, an authorized electrician working at
First National Bank of Omaha. When he finished the
last connection and stepped back, he threw the switch
on the 280 volt box that powers the First National’s
new, state-of-the-art, highly expensive data processing
computers, and got an instantaneous reaction.
fire alarm in seconds, while nauseous fumes filled the
air. Within minutes the emergency was contained, but
the critical control boards in some of the computers
had been destroyed instantly, and it couldn’t be deter­
mined whether the others also had been damaged, so
two mainframe computers were useless.
The veteran electrician realized a split second too
late that he was sending a 480 volt charge through a
280 volt system!
Staff Reacted with Precision
But, out of this chaos First National’s professional
computer staff reacted with smooth precision to acti­
vate the bank’s contingency recovery plan that had
been devised in 1982 and had been tested twice a year
since then. Such a plan is essential because First Na­
tional Bank, with assets of $1.08 billion, serves more
than 1 million customers.
The more than 200 over-voltage completely de­
stroyed some boards, as noted, and because damage
was unknown to other boards on the same line they
had to be returned to the NCR plant at Dayton, Ohio.
However, the surge did not affect memory records

Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

either on-premise or at the off-premise back-up site, ac­
cording to J. William Henry, First National executive
vice president.
Mr. Henry said 35 of First National’s correspondent q
banks in Nebraska, Iowa, South Dakota and Wyoming
could have had business substantially disrupted if his
bank did not have a recovery plan in place. However,
that well-tested emergency plan was in place and emer­
gency operations were put into effect immediately#
after the disaster. At no time, he said, were bank ser­
vices for the bank itself or its correspondents seriously
“We have a commitment to our clients, both cor­
respondent banks and our retail customers,’’ Mr. #
Henry said. “They depend on us for reliability in all im­
portant financial functions, and in providing data pro­
cessing service that includes being prepared for any
kind of disaster.’’
Service Restored in 24 Hours
“Our data processing contingency plan enables vital
data processing and item processing functions to be re­
stored within 24 hours of major interruption,’’ Ken
Nimmo, First National Bank vice president and divi- #
sion head, data automation, said. The disaster re­
covery plan includes contracted off-site backup facili­
ties and equipment for continued data processing. The
plan also includes off-site storage in a secure, environ­
mentally controlled facility, where backup records,#
microfilm, paper, magnetic media, supplies and forms
are kept. Inventories are upgraded quarterly. Trans­
portation and communications teams had been formed
and trained, and procedures for speedy telephone line
restoration were in place.
By noon on Sunday, November 2, the contingency


• group, led by Mr. Nimmo had met. On Monday, an of­
ficial disaster was declared and NCR World Headquar­
ters in Dayton, Ohio, one of First National’s off-site
backup facilities was notified. (Chicago is another site.)
John Irwin, First’s manager of computer operations,
• led a group of 10 bank employees to Dayton that after­
noon at 4:00 p.m. Correspondent banks were notified
that contingency plans were in effect and that data
processing would be provided by bank personnel from
Dayton during the critical period.
Mr. Nimmo said, “They took our backup records
from Omaha to use on NCR equipment at the backup
site. We had been to Dayton two to three times a year
since 1983 testing our backup records for just such an
emergency and all systems checked out perfectly each
® time. Consequently, our staff was able to leave Omaha
for Dayton Monday afternoon with complete confi­
dence that they would be up and running as soon as
our backup records were tied in with the NCR home of­
fice computers. A lot of prior work paid off in this ge• nuine emergency. Our staff worked from that site for
two weeks.”
Bank Customer Service Normal
The banks which usually transmitted information to
Omaha, instead directed their telecommunications to
Dayton. Each bank received a daily status report of
the emergency, as well as its own daily processed infor­
“At no time was any bank unable to service its cus­
tomers,” Mr. Henry said. “We flew two planes daily
between Omaha and Dayton and continued to main­
tain our backup records off-premises in Omaha. All of
this transpired on a normal basis and to the public eye,
• all customer services continued as normal,” he added.
NCR officials also were pleased with the way activi­
ties unfolded. “Everything went extremely well,” Jim
Schmidt, NCR director of strategic projects and ser­
vices, said. “This could have been a major disaster for
• First National Bank but, because of pre-planning and

because they had tested the plan, including telecom­
munications from every point, and because they
brought quality people to Dayton to oversee the opera­
tion, all functions were carried out in a normal business
“Contemplating upheaval or disaster is never easy,
but it’s an important part of any business plan,” Mr.
Henry emphasized. “We’re glad we had our data pro­
cessing contingency plan in place. Th;s procedure is
one of many we are developing in our overall contin­
gency plans that will enable us to operate efficiently
and effectively, no matter what the situation.”
NCR Restored Equipment Quickly
Meanwhile, back at First National headquarters in
Omaha, NCR personnel moved in quickly, assisted by
bank staff. All the involved equipment was pulled out
and brand new mainframes were put in place and
tested. At the end of the two-week period the switch
was thrown again—this time with the right voltage—
and the new system was up and running. The 10-per­
son staff in Dayton got the message they could pack
their bags and return home and take up normal opera­
Mr. Henry said, “ Interrupted service to our corres­
pondent bank clients meant they were working with in­
formation at times that was only 12 hours old, since
there was no on-line service. But, the successful opera­
tion of our contingency plan also meant that those cor­
respondents were getting same day service. Several of
them told us, ‘We had no idea your bank had such a
backup.’ ”
After the smoke cleared and processing returned to
normal, it became time to look at the bottom line, “ It
appears that with two new CPUs in place, and all the
related expenses of the emergency backup plan, we
think the expense involved is approaching $1 million,”
Mr. Henry stated. In response to the ultimate question
of who pays, he added, “We’re of the opinion that the
electrical contractor’s insurer will pay for it. ”

FIRST National’s professional staff prevented a catastrophe from happening. At
left, an employee checks the bank’s backup records. Pictured above, another
bank employee packs up equipment to load on an airplane bound for NCR World
Headquarters in Dayton, Oh.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1987


AMONG the speakers at the 40th Annual Correspondent Bank Conference hosted by the First National Bank of Chicago were, left to right:
Barry Sullivan, chmn. & CEO; James Meehan, v.p. & head of U.S. Financial Institutions Division; Richard Thomas, pres.; Dr. Herb Prochnow, retired (pres. 1962-68); Orion Samuelson, ag services dir., WGN. Chicago, and Jack Clark, v.p. & head, Community Bankers Division.


1st Chicago Hosts 40th Conference
TIME of unprecedented change
and opportunity is the way
Richard Thomas, president of The
First National Bank of Chicago, de­
scribed current conditions for more
than 700 bankers and spouses tak­
ing part in the 40th Annual Confer­
ence of Bank Correspondents hosted
by First National. As opening
speaker at the nation’s longest-run­
ning and original major bank confer­
ence, Mr. Thomas said, “We need to
pause from time to time and reflect
on the past.’’ To bring the past of
First National Bank conferences
into sharp focus, Mr. Thomas intro­
duced a man who is highly respected
world-wide as perhaps the nation’s
dean of commercial bankers, and a
master of the art of international
finance and diplomacy.
That speaker, of course, was Dr.
Herbert V. Prochnow, now 83 years
of age, who retired from First Na­
tional Bank of Chicago in 1969. Dr.
Prochnow was associated with First
National throughout his banking
career and served as its president
from 1962-68. In 1946 Dr. Prochnow
began two endeavors of lasting qual­
ity and endurance. One was the
First National Bank of Chicago’s
first Annual Conference of Bank
Correspondents; the second was the
School of Banking at the University
of Wisconsin, Madison, now known
as the Graduate School of Banking
and dedicated to his name in recent
years. Dr. Prochnow served as regis­
trar of the school until several years

Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

Throughout his career, Dr. Proch­
now was not only a student of the
financial business in the United
States, but he acquired a deserved
reputation for his grasp of interna­
tional finance, based on extensive
travels during which he visited at
great length with heads of state and
finance ministers in large and small
nations around the globe. On his re­
turn, Dr. Prochnow was in great de­
mand at financial and business
group meetings for his incisive
analyses gained from those personal
In his brief remarks to the 1986
Conference attendees, Dr. Prochnow
said he was pleased that the confer­
ence had continued strong over four
decades and noted that when the
first one was held in 1946, “no one
could have forecast the changes that
have taken place in banking. Our in-

dustry now is in a period of transi­
tion. We have new competitors, in­
cluding non-bank banks, and o u r^
trouble is that banks cannot legally
compete with all of them.’’
Dr. Prochnow noted the “growth
of Bank Holding Companies from
167 in 1970 to 2,300 today, although^
80% of them are One Bank Holding
Companies. Another factor is that
foreign banks have more than 600
offices in our country and they hold
13% of our deposits.” He said he i s f
“not sure that all involved realize
the great danger that can be inherent”
in financial futures and many other
such products. Speaking about long
range planning as he concluded, Dr.®
Prochnow said humorously, “How
fortunate we are that the Ten Com­
mandments and the Gettysburg Ad­
dress were written before today
when we have strategic planning®
and human resources!”
The address given by Barry F.
Sullivan, chairman of First Chicago
Corporation, examined effects of
competition on large and small®
banks, as well as the strengthened
role community banks play in turn­
ing back out-of-territory competi­
tors because community banks have
close relationships.
Mr. Sullivan’s address will be
published in the next issue.
Louis Rukeyser, host of the popu­
lar “Wall Street Week” TV pro­
gram, spoke at the noon luncheon.#
He said everyone’s big question is
the effect of the Tax Reform Bill. “ I
think it is a dangerous charade,” he

FIRST Natl. Pres. Richard Thomas with lun­
cheon speaker Louis Rukeyser, host of TV’s

(Turn to page 50, please)

Wall Street Week.


they entered the premises through a
unique courtyard, the only one of its
kind in Kansas City, featuring a
fountain of multiple water jets ris­
ing from the black and grey stone
floor, surrounded by a landscaping
of trees and shrubbery, all high­
lighted by the afternon sun stream­
ing in through the decorous entry­
The structure itself covers more
than 67,000 square feet and includes
two underground parking levels for
312 cars. More than 790 tons of ruby
red and pink granite were imported
from India to grace the exterior and
part of the interior, complemented
by black granite imported from Bra­
Reflective solar glass, stainless
steel and bronze put a finishing
touch to the exterior, which also
weaves exterior details into the in­
terior by use of horizontal lines and
grid patterns. Executive offices fea­
ture hand-laid flooring of Brazilian
THE teller/personal banking area features imported ruby red granite, highlighted with
stainless steel and bronze. Custom-designed desks contain ebony and mahogany in-lay.
For special meetings, seminars
and tours, the new building is
equipped with a 300-seat auditorium
that has the capacity for being clos­
ed off into smaller rooms for
separate meetings, utilizing built-in
latest sound system and electronic
audio-visual systems. The bank em­
and afternoon financial seminar at ployees delicatessan also is open to
Associate Publisher
H. Roe Bartle Exposition Hall in the public.
In addition to its architectural apdowntown Kansas City. A beautiful
dinner party was followed with en­
LEGANCE and openness of de­ tertainment by Vicki Carr, the pro­ UNITED M ISSOURI.. .
(Turn to page 50, please)
sign, tasteful selection of decor minent singing star.
After a buffet breakfast the next
and furnishings, and functional use
of available space combine to make morning, guests were taken on con­
the new headquarters building of ducted tours through the beautiful
United Missouri Bancshares, Inc., a new building. Later that day and on
new landmark in Kansas City. The Sunday, tours continued for more
uniquely designed six-story build­ than 100,000 bank customers and
ing, with 250,000 square feet of of­ other invited guests.
The highlight of the Saturday
fice space and the capability of add­
event was a ribbon-cutting
ing a 25-story tower with another
half-million feet of space at a later ceremony in the courtyard (see ac­
date, brings the multi-bank holding companying photo). Sharing in that
company and its principal subsidi­ moment were Kansas City Mayor
ary, United Missouri Bank of Kan­ Richard Berkley with R. Crosby
Kemper and Malcolm (Mick) Aslin,
sas City, N.A., under one roof.
To celebrate this outstanding chairman and president respectively
architectural achievement and the of both United Missouri Bancshares
recent move of holding company and and United Missouri Bank of Kan­
bank personnel into the new quar­ sas City.
During his remarks at the ribbon­
ters, United Missouri officials
hosted a spectacular weekend-long cutting, Mr. Kemper said, “Mr.
open house recently. To start the Kemper, Sr. (his father), wouldn’t
gala festivities, more than 2,000 believe all of this was happening if THE United Missouri Bank courtyard is the
bankers, corporate treasurers and he were here!’’
only one of its kind in Kansas City. It fea­
When the guests arrived at 1010 tures a unique fountain system surrounded
spouses were invited to a program
on Friday starting with a luncheon Grand to see the new UMB building, by landscaping.

United Missouri’s New Building
Combines Elegance with Utility


Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis


Kearney State Bank
VVvJt\Q Ut>

on Art!
RT has been a tradition at Kear­
ney State Bank and Trust Com­
pany. To continue its tradition of
supporting the arts, the bank will
open its 10th Annual Art Exhibition
on January 11, 1987.
With the theme “Nebraskans
Supporting Nebraskans,” the show
will feature guest artist and sculptor
George Lundeen, a native of Holdrege. A graduate of Hastings Col­
lege, he received his master of fine
arts degree from the University of
Illinois. Later, he was awarded a
Fullbright-Hays Grant to study
sculpture in Italy. He has taught at
Kearney State College and Texas A
& M and currently lives and main­
tains a studio in Loveland, Colo.
A by-invitation reception on
January 11th will kickoff the show,
which will open to the public on
January 12th. The exhibit runs
through January 30th and may be
viewed during banking hours or by
appointment for groups and organi­

Carolyn Menke, assistant vice
president at Kearney State Bank,
and Larry Peterson, professor of art
at Kearney State College, have coor­
dinated the show since its beginning
10 years ago.
According to Ms. Menke, who
joined the bank’s staff in 1977, the
idea for a bank art show stemmed
from Bernard Engels, founding
bank president, and his love for the
arts. Although the bank opened in
January 1976, the present facility at
31st and Second Avenue was com­
pleted later that year. The first an­
nual show was hosted in January
1978 in honor of the bank’s anniver­
sary and spiraled thereafter.
The exhibit is held at the bank’s
main facility and incorporates works
by regional Nebraska artists. Invita­
tions have been extended to over 50
artists for the celebration which pro­
mises to be one of the largest shows
to date.

PICTURED above at the annual Art-in-the-Park show in Kearney last summer is George Lun­
deen with a bronze sculpture he created. Mr. Lundeen is the featured guest artist for Kear­
ney State B&T Company’s art exhibit. (Photo courtesy of the Kearney Daily Hub.)
Banker, January, 1987
Federal Reserve Bank of St. Louis

THIS bronze sculpture, “ Flatlander,” by
George Lundeen was awarded first prize by
the Sculpture Society of America in New
York City. It will be featured at the art show, £
on loan from the Nebraska Art Collection.
(Photo courtesy of the Kearney Daily Hub.)

During the nine-year history of
the exhibit, 626 works have been
shown for public viewing, represen­
tative of 276 artists, many who have
been exhibiting in the show for sev­
eral years.
A special tradition will again be a
part of this year’s show. Framed col­
lector’s prints, by Nebraska artists,
will be given during the show’s
opening week from names drawn
from the guest register. This is the
eighth year for the drawing.
The bank’s commitment to the
arts doesn’t end with its show. Last
year, the bank was honored as the
1986 recipient of the “Friend of the
Arts ” award, given by the Kearney
Arts Council each year to an indivi­
dual or organization who has been a
strong supporter of the arts in the
Kearney area. In 1980, the bank received the Outstanding Community
Arts Award from the Kearney Ar­
tists Guild for its promotion of the
visual arts.
The bank has also hosted four additional art exhibits in the past
three years, including the Alfred T.
Anderson Collection and the Grant
Reynard Art Collection in 1983, an
art show reflecting the 30-year
career of local artist Miriam A. Worlock in 1984 and the Vietnam Suite
in 1985.
In addition, the bank has a pri­
vate collection which includes 46
works of art.










General Assembly Votes on Major BankingRelated Legislation in Springfield
HE House Bill 3340, which re­
writes the Illinois mortgage
foreclosure statutes, has been given
an Amendatory Veto by Illinois
Governor James R. Thompson.
Both houses of the Illinois General
Assembly accepted the governor’s
specific recom m endations for
changes to HB 3340.
The bill, which became law imme­
diately upon the General Assem­
bly’s acceptance of the governor’s
Amendatory Veto, creates the Illi­
nois Mortgage Foreclosure Act.
This new law integrates existing sta­
tutes, Illinois case law and some new
provisions to form a comprehensive
residential mortgage foreclosure
The primary benefit of this bill is
that it reorganizes the Illinois law
dealing with foreclosures into one
comprehensive act. The most distin­
guishing feature of the reorganiza­
tion is that the redemption period is
placed before the judicial sale. This
is intended to encourage bids that
are closer to a property’s true fair
market value since bidders can take
possession almost immediately and,
significantly, bidders will know ex­
actly what they will receive. The
result of these changes should be
that lenders will less often have to
retain title in foreclosed properties
or have to seek deficiency judge­
ments against mortgagors.
The Illinois Bankers Association
supported the legislation and
worked to assure its passage both in
the spring and during the fall veto
In other legislative action, Senate
Bill 2116 is awaiting the governor’s
signature. The bill was passed in
both houses December 5 and was
sent to the governor on December
16. He has until February 13 to
Federal Reserve Bank of St. Louis

decide on the bill.
The bill provides the Commis­
sioner of Banks and Trust compa­
nies with the authority to arrange
for the sale of the stock of a failing
bank to a bank holding company,
without having to first close the fail­
ing state bank. While current law
(Section 31, Illinois Banking Act)
permits the commissioner to sell the
assets of a failing state bank to
another state or national bank, Sec­
tion 31 does not expressly permit
the commissioner to sell the stock of
a failing state bank to a bank hold­
ing company.
The authority provided by SB
2116 automatically expires on Sep­
tember 30, 1988.
For the past 18 months, the IB A
has been engaged in an ongoing dis­
cussion with the commissioner re­
garding expansion of his authority
to deal with failing banks. The com­
missioner has expressed interest in
expanding the geographical area
within which he has authority to
facilitate mergers betwen failing and
healthy banks, to include additional
counties near the location of the fail­
ing bank. The IB A board’s position
on this issue is that the commis­
sioner should have the authority to
facilitate such mergers in any area
of the state, in view of the current
limitations to which an exercise of
this authority is subject, including a
one-time-only feature.
The commissioner had indicated
that he intends to present compre­
hensive legislation addressing the
issue of failing banks in the 1987
session of the General Assembly.
Within the framework of this overall
initiative by the Commissioner, the
IBA supported him in his efforts to
obtain the emergency authority
which is provided under SB 2116.

Lane Financial Commences
Offering of Common Stock
Lane Financial, Inc. has an­
nounced that it has commenced an
initial public offering of 1,300,000
shares of common stock at a price of
$13 pershare. Of the shares,
1,000,000 will be sold by the com­
pany and 300,000 by certain selling
stockholders. The offering will be
made by an underwriting group
managed by Smith Barney, Harris
Upham & Co. Incorporated and The
Chicago Corporation.
Proceeds from the 1,000,000
shares being sold by the company
will be used to fund a substantial
portion of the pending acquisition of
the Bank of Westmont, located in a
western suburb of Chicago.

Added in Rockford
Peter Lepka has been added to the
staff of AMCORE Bank N.A., Rock­
ford as banking officer. He will be re­
sponsible for marketing the Visa/
Mastercard revolving credit pro­
gram at the bank.
He has 12 years banking experi­
ence, including four years at Harris
Bank in Chicago as credit analyst
and most recently, eight years as as­
sistant vice president at First Na­
tional Bank in Freeport.
Northlake Bank Renovates;
Announces Improvement Loan
Northlake Bank has embarked
upon an extensive renovation of its
main banking facility.
The renovation, which should be
completed by February 15, 1987, in­
cludes both the interior and exterior
of the bank as well as the installa­
automated teller machine. An ex­
pansion of the teller stations, bank­
ing hours and additional banking
services, such as discount broker­
age, home equity loans and senior
citizens programs, are also being
As part of the renovation celebra­
tion, Northlake Bank President
Tory Companella announced a spe­
cial 9.5 percent five-year fixed rate
improvement loan for business own­
ers in the greater Northlake commu­
He said the fixed rate loan pro­
gram will be available through
March 31, 1987.
Northwestern Banker, January, 1987

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 shows. . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our willingness to roll up our
sleeves, to work with you, to deliver all the


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

Marquette Bank

M em ber FDIC

Correspondent Services Division
Federal Reserve Bank of St. Louis

of $759,000. It also will purchase
certain of the failed bank’s loans and
other assets for $12.1 million. To fa­
cilitate the transaction, the FDIC
will advance $5.0 million to the as­
suming bank and will retain assets
of the failed bank with a book value
of about $6.2 million.

Pres. Named in Red Wing
Norwest Bank Red Wing has
named Burl A. Leo as its president,
succeeding Nor­
man J. Samp­
son, who has
• been e lec te d
chairman. Both
a p p o in tm e n ts
were effective
January 1, 1987.
Mr. Leo has
more than 17
years of banking
experience, hav­
ing joined Norwest Bank Faribault
• as an installment lender and com­
mercial trainee in 1969. He became a
vice president in 1973 and, in 1983,
tran sferred to N orw est Bank
Rochester as senior vice president
• and commercial client executive.
Mr. Sampson had served as presi­
dent of the Red Wing bank since
1974 and will be retiring late this
New Office Complex to be
Built in St. Cloud
Zappco, Inc., a St. Cloud based
bank holding company has broken
ground for construction of a new
bank building-office complex on the
former Tempo store site at 10th
Avenue North and St. Germain. The
project will be developed by Zapp
Bank Plaza Partnership, a Joint
Venture of Zappco, Inc. and Prime
Development Corporation of Edina.
Plans call for Zapp National Bank
to occupy 40,000 square feet of the
proposed 70,000 square foot build­
ing. The bank and holding company
operations will utilize three floors of
a six level granite-faced structure.
The building will feature a twostory bank atrium, on-site customer
parking and drive-in facilities and a
landscaped exterior plaza at the cor­
ner of 10th Avenue North and St.
Germain. The architectural design
Federal Reserve Bank of St. Louis

was done by Korsunsky, Krank,
Erickson Architects, Inc., Minnea­
Construction on the $8 million
Zapp Bank Plaza is expected to be
finished by early 1988. W. Gohman
Construction Co., St. Joseph, has
been selected to negotiate a general
contract for construction of the
President Named in Austin
Robert E. Brodin has been elected
president, chief executive officer and
a director of First Bank Austin. The
appointment was effective January
Mr. Bodin succeeds Thomas E.
Brown who has accepted a position
with Farm Credit Services. Mr.
Brown had served as president and
CEO of First Bank West Billings,
Billings, Mont., since 1982. He
joined First Bank Bozeman, Mont,
in 1958 and was named vice presi­
dent of commercial lending in 1968.
In 1975, he transferred to First
Bank Southside Missoula, Mont, as
vice president of commercial lend­
ing, and in 1982 was elected senior
vice president of credit.
Stewartville Bank Assumed
The board of the FDIC has ap­
proved the assumption of the de­
posit liabilities of First National
Bank of Stewartville by Marquette
Bank Rochester.
The failed bank’s only office re­
opened December 5, 1986 as a
branch of Marquette Bank Roches­
ter. First National Bank of Stewart­
ville, with total assets of $18.3 mil­
lion, was closed on December 4,1986
by Dean S. Marriott, Senior Deputy
Comptroller of the Currency, and
the FDIC was named receiver.
Marquette Bank Rochester will
assume about $17.9 million in 4,700
deposit accounts and has agreed to
pay the FDIC a purchase premium

MBA Forms New School
The Minnesota Bankers Associa­
tion has announced the formation of
a new Bank Compliance School
(BCS) which will be held March
25-27, 1987 at the Minneapolis
Athletic Club.
Wayne Berthiaume, school ad­
ministrator, said the objective of the
school is to provide students with
knowledge and understanding of
compliance regulations that impact
lending practices, deposit functions,
human resources, marketing and
Tim Marrinan, senior corporate
counsel for First Bank Minneapolis,
will be the lead instructor of the
school. He is a national expert on
banking compliance.
Named in Stillwater
Lorraine Weber has been named
vice president and consumer bank­
ing manager at Norwest Bank Still­
She has been with Norwest for
almost 35 years, having joined the
bank after she graduated from Still­
water high school. She has served as
assistant cashier and personal bank­
ing officer and, in 1980, became the
manager of the bank’s branch facili­
ty. In 1983, she returned to the main
bank as consumer banking super­
Two Named in Hibbing
Jerry R. Erickson, president of
Erickson Music Center, and John
(Jack) R. Ryan, Jr., a partner of
Ryan-Kasner-Ryan Financial Plan­
ning Services, have been elected as
directors of the Security State Bank
of Hibbing. They fill the unexpired
terms of Ormond Seavey and
Dwight Jamar, who are retiring.
Added in St. Cloud
Mike Kosel has joined Zapp Na­
tional Bank, St. Cloud, as consumer
loan department manager. He was
previously associated with ITT Fi­
nance, Duluth.
Northwestern Banker, January, 1987


Twin C h i e s i
Maurice G. Dykema has been
named senior vice president and
group manager of development at
Norwest Information Services, Inc.
Headquartered in Minneapolis,
NIS is the largest supplier of bank
data processing services in the up­
per Midwest.
Mr. Dykema has held various
positions with NIS since joining the
company in 1973. He was most re­
cently vice president and group
manager of systems. During his 20
years with Norwest, he has also
served as an analyst with U.S. Na­
tional Bank in Omaha and with Nor­
west Bank Minneapolis.
* * *

tions of the U.S. The group main­
tains offices in Minneapolis, St. Paul
and London.
FBS is comprised of First Bank
Minneapolis, First Bank Saint Paul
and 77 other banks and trust com­
panies, with 149 banking offices in
Minnesota, North Dakota, South
Dakota, Montana, Washington and
Wisconsin, and a trust company in
* * *
Linda J. O’Connell recently joined
National City Bank as the director
of marketing. She had been with
Norwest Bank Minneapolis for 17
years before joining National City

The FBS Capital Markets Group
has announced the formation of FBS
Capital Markets Funding, Inc., a
new subsidiary of First Bank Sys­
tem created to structure and issue
securities backed by a variety of fi­
nancial assets.
“FBS Capital Markets Funding,
Inc. will focus on securitizing assets
and marketing them to institutional
investors,” said Gerald A. Kraut,
executive vice president and head of
FBS Capital Markets. “Through
this process, assets originated by fi­
nancial institutions such as con­
sumer loans, credit card and auto­
mobile receivables can be packaged
and sold as securities.”
William E. Waldusky has been
named managing director of the new
subsidiary, and Bobbie Euler has
been appointed controller and finan­
cial officer. The firm’s offices are
located at First Bank Place West in
Downtown Minneapolis.
The FBS Capital Markets Group
provides a variety of securities trad­
ing and underwriting services to in­
stitutions and individuals through­
out the Midwest and western sec­
Banker, January, 1987
Federal Reserve Bank of St. Louis



American National Bank of Saint
Paul has announced the promotions
of Susan Carl­
son, vice presi­
dent and direc­
tor of market­
ing; Nancy Joas,
a s s is ta n t vice
president, real
estate; Kathleen
S p en cer an d
Ward Denaway
a ss is ta n t vice
presidents of op­
erations, and Becky Sisco, market­
ing officer. The bank also announced
that John R. Newton has joined
American National as an assistant
vice president, aircraft.
Ms. Carlson joined the bank in
1981 and most recently served as as­
sistant vice president, a position she
was promoted to in 1983.
Ms. Joas joined the bank in 1983
and, in 1985, was promoted to real
estate officer.
Ms. Spencer has been with the
bank since 1979. She most recently

served as operations officer.
Mr. Denaway joined the bank in
1980 and was promoted to opera­
tions officer in 1983. In 1984, he
assumed loan operations responsi- f
Ms. Sisco joined the bank in 1985
as a marketing analyst.
Mr. Newton has previously been
employed as a finance manager by £
Cessna Finance Corporation, Port­
land, Ore.
* * *
American National Bank of Saint
Paul has opened a new office in the
Highland Village area. The bank has
occupied temporary quarters in the
area for a year.
The new office is located in a
newly-refurbished 12,500 square
foot building at Highland Parkway
and Cleveland Avenue. The bank oc­
cupies approximately 3,000 square %
feet of the building and has sub­
leased the remainder of the building
to Edina Realty.
The interior remodeling provides
space for tellers, personal bankers, #
safe deposit boxes and commercial
transaction and lending facilities. A
new facade was added to the build­
ing’s exterior including a clock
which faces Cleveland Avenue. •
Additional outside work includes
the construction of a two-lane drive
up banking facility and a 32-car
parking lot.
* * *
Robert L. Olson, president and
CEO, Diversified Discount and Ac­
ceptance Company, recently an- £
nounced that Robert L. Johnson has
joined the company and was named
Mr. Johnson has been in the bank
and asset based lending business #
since 1968.

Minnesota News


SPEAKERS at the 22nd Annual Executive Management Conference were, left to right: Lloyd P. Johnson, chmn. & ceo, Norwest Corpora­
tion; John Sampson, sr. v.p., Norwest Bank Minneapolis; Richard M. Kovacevich, vice chmn., Norwest Corporation; Jim Campbell, pres. &
ceo, Norwest Bank, Minneapolis; John Sikkink, sr. v.p. and Brian Phillips, exec, v.p., Norwest Corporation; John Geiken, pres., Norwest In­
formation Services, Inc., and Mike Ruane, v.p./sales, Norwest Correspondent Data Processing.

Norwest Executives Reaffirm Their
Commitment to Correspondent Banking


GENUINE commitment to cor­
respondent banking was empha­
sized repeatedly during the 22nd
Annual Executive Management
Conference hosted early last month
by Norwest Bank Minneapolis,
N.A., at the Hyatt Regency Hotel.
Senior Vice President John Samp­
son stressed that theme in his wel­
coming remarks when he said, “At
Norwest we want to be the bank you
come to for all your needs — clear­
ings, data processing, acquisitions,
bank stock loans — whatever those
needs might be.”
Dick Kovacevich, vice chairman

that traditionally concludes the oneday conference.
During a Correspondent Data
Processing session presented as a
of the parent Norwest Corporation morning program for approximately
also made the point in opening the 200 bankers who signed up for this
afternoon session when he stated special two-hour program, five hold­
plainly, “We like the correspondent ing company top EDP officers re­
banking business. I t ’s important to viewed various aspects of Norwest’s
us. There are 3000 banks in the Mid­ updated EDP service for correspon­
west and we’d like to be the corres­ dents. They included Mike Ruane,
pondent bank for all of them. We vice president/sales; John Sikkink,
know about running banks and we senior vice president, and Brian
think we’re uniquely suited to be Phillips, executive vice president, all
your banker. We do have a commit­ of Norwest Corporation, and John
ment to correspondent banking, to G eiken, p re s id e n t, N o rw est
rural America and our homeland Information Services, Inc.
Sam Donaldson, ABC news chief
here in the Midwest.”
Norwest Corporation Chairman and White House correspondent was
Lloyd Johnson and Norwest Bank to be the opening afternoon speaker
President Jim Campbell endorsed but he was unable to be present. His
those same sentiments when they very able replacement was Don
greeted the hundreds of bankers and Shelby, popular anchorman on
spouses at the annual Duck Dinner WCCO-TV news in Minneapolis. He

LEFT—Dick Erickson (left), v.p., Norwest Bank Midland, who was in charge of program and meeting arrangements for the conference,
helps Barb Cederberg try on the mink and fox coat she won in the drawing at the spouses’ luncheon while her husband, Pat Cederbergi
pres., First Natl., Beresford, S.D., looks on. RIGHT—Minnesota Sen. Rudy Boschwitz addressed the Conference via satellite from Wash­
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis



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Put our accelerated evolution to work on your
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©FWC 1986
Federal Reserve Bank of St. Louis


Minnesota News

SCIENCE futurist Daniel Burrus, Milwau­
kee, used his friendly robot to show his
audience how to “ join the future.”

defended the media coverage of an
investigation into the Iran crisis.
ABA President Mark W. Olson,
president, Security State Bank in

Fergus Falls, Minn., addressed the
conference via satellite telecast from
Washington, D.C. A similar hookup
from the Capitol Building brought
Minnesota Senator Rudy Boschwitz
to the meeting hall screen. Both men
discussed recently enacted and
pending legislation.
J. Michael Broome of Charlotte,
N.C., gave his audio-visual presenta­
tion on “Building Customer Rela­
The final speaker was noted
science futurist Daniel Burrus of
Milwaukee, who utilized astounding
slide pictures and his own personal,
portable robot, to demonstrate how
bankers and other business persons
can use creativity and long-range
planning to take advantage of rapid­
ly developing hi-tech. “This is truly
a time of challenge, crisis and oppor­
tunities,” Mr. Burrus said.
After a pre-dinner reception, din­
ner and brief remarks from the host
executives were followed by out­
standing musicial entertainment
provided by Paul and Linda.

ties and Fairmont city leaders £
searched for a downtown location
for its municipal offices. Bank of­
ficials felt their existing building,
although structurally sound, could
not be brought up to speed with fi- q
nancial services technology. By constructuring a new building on the
old City Hall site, the bank could ex­
tend the drive-up area and consoli­
date its operations on one side of the f
block. Renovating the existing bank
building into new City Hall offices
will cost much less than building a
new City Hall from the ground up.
With the future in mind, plans for a £
new bank building began to take
Groundbreaking ceremonies for
the new bank building were held De­
cember 3. Construction crews will %
work all winter, and bank employees
plan to move into the new facility in
the summer or early fall of 1987.

Cooperative Building Project in Fairmont
N INNOVATIVE “land-tradepro­
ject between the City of Fairmont
and First Bank Fairmont will bring
a new look to that city’s downtown
area. The first phase of the twophase project is already underway,
according to Thomas B. Johnson,
bank president. The Fairmont City
Hall, the bank’s downtown drive-up
office and a vacant retail building
have been razed to make way for a
10,000 square foot bank building
and a landscaped plaza. The second

phase calls for First Bank Fairmont
to turn over its former building to
city hall employees in August of
“Thaks to a great cooperative
spirit, everyone benefits,” says Mr.
Johnson. “Fairmont residents will
get a renovated City Hall and land­
scaped downtown plaza, as well as a
modern, consolidated banking cen­
The land trade idea surfaced as
the bank looked to expand its facili­

First Bank Fairmont will be occupied in summer 1987.
Banker, January, 1987
Federal Reserve Bank of St. Louis

(Turn to page 38, please)

bank, he served as a field auditor for
Wells Fargo Bank in California.
Replacing Mr. Roubik as cashier
is Joyce D. Jost, an assistant vice
president of the bank. She joined the
bank in 1974, was elected an assis­
tant cashier in 1980 and promoted
to assistant vice president in 1982.

First Interstate to
Acquire Green Valley Bank
In a joint announcement, David
C. Beck, chairman and CEO of First
Interstate Corporation of Wiscon­
sin, and Raymond Brzezinski, presi­
dent of the State Bank of Green
Valley, reported that a definitive
agreement calling for the acquisition
of the State Bank of Green Valley by
First Interstate has been signed.
The affiliation is subject to appro­
vals by State Bank of Green Valley
shareholders and certain regulatory
approvals. The parties previously
announced negotiations related to
the transaction.
As of September 30, 1986, the
State Bank of Green Valley had
total assets of $25.2 million.
First Interstate Corporation of

Several Elected in
Colorado Springs
Several officer elections have been
announced at Colorado National
B ank —E x c h a n g e ,
C olorado
Brad L. Lenhard and Thomas J.
Naughton have been elected vice
presidents of the bank. Mr. Lenhard
has been with the bank for 11 years.
Mr. Naughton joined the bank in
1984. His banking experience began
10 years ago with Norwest Bank in
Des Moines, la.
Bruce S. Aldridge has been
elected an assistant vice president of
the bank. He joined the bank in 1984
Federal Reserve Bank of St. Louis

Wisconsin, the state’s largest bank
holding company, recorded $1,276
billion in total assets as of Septem­
ber 30, 1986. It operates 33 banking
offices located throughout the state.
The company also operates trust,
brokerages, mortgage, leasing, man­
agement services and insurance
agency subsidiaries.
Appointed in Madison
Jennifer N. Kraemer has been ap­
pointed vice president and director
of human resources at First Wiscon­
sin National Bank of Madison.
Ms. Kraemer, who joined the
bank in 1982, had been training and
development director at the bank.
She replaces Mary M. Graye, who
retired in August. Ms. Graye had
been with the bank for 28 years.

and previously held managerial posi­
tions with Citicorp and CIT Finan­
cial Services.
Linda Mowery has been elected
an officer of the bank. She joined the
bank in 1981. Prior to that, she was
employed by the U.S. Department
of Labor, the State of Wyoming and
First Wyoming Bank and Trust.
Elected in Sterling
David J. Roubik has been elected
president of Colorado National
He joined the bank in 1974 as
cashier and was elected a vice presi­
dent in 1978. Prior to joining the

United Banks’ Acquisition
Approved by IntraWest
United Banks of Colorado, Inc.
announced that 83 percent of the
shareholders of IntraW est Financial
Corporation have approved the ac­
quisition of IntraW est by United
In a related action, the Federal
Reserve Board accepted United
Banks’ application to acquire Intra­
West Financial Corporation.
United Banks has agreed to sell
two affiliates, United Bank of
Steamboat Springs and United
Bank of Montrose, for undisclosed
amounts as part of securing Federal
Reserve Board approval of its appli­
cation to acquire IntraW est Finan­
cial Corporation.
U nited Bank of Steam boat
Springs will be sold to investors
associated with The Western Indus­
trial Bank located in Steamboat
Springs. This purchase is contingent
upon certain governmental appro­
vals, but not the closing of the Intra­
West acquisition. The purchase of
United Bank of Montrose by a
group of Montrose investors is con­
tingent upon certain governmental
approvals and the closing of the
IntraWest acquisition.
Named at United Bank
United Bank of Denver has an­
nounced that Michael B. Geppner
and Gary D. Watkins, have been
named vice presidents. Mr. Geppner
joined the bank in 1969 and is the
business development manager in
asset management services. Mr.
Watkins was with the United Banks
from 1970-81 and rejoined United
Bank of Denver in 1985. He is man­
ager of corporate business develop­
ment in cash management.
Bruce G. Van Gundy has been
named assistant vice president. He
has been with the bank since 1985
and previously worked at United
Bank of Monaco for 10 years.
Also, Douglas B. May has been
(Turn to page 38, please)
Northwestern Banker, January, 1987

ment sales offices located in Roches- f
ter and Duluth, Minn.; Billings,
Mont, and Fargo, N.D., as well as
continue as manager in Sioux Falls.
He joined Norwest in 1982 and, in
1985, was promoted to assistant ^
vice president with Norwest Invest­
ment Services, a major bank-affili­
ated dealer offering quality service
in fixed income securities.
Five Named in Mitchell
Several promotions have been an­
nounced at Commercial Trust &
Savings Bank,
Jo h n Olson
has been elected
senior vice presi­
dent. A Certified
Public Accoun­
tant, he joined
the bank in 1983
as vice president
and cashier.
M ichael J.
Beyer has been promoted to vice
president in charge of the bank’s ag
loan department. He joined the bank
in 1985 and was promoted to assis­
tant vice president in 1986.



Elected cashier in charge of opera­
tions was Cindy Berndt, who has
been with the bank since 1982 serv­
ing as auditor for the bank and Com­
mercial Banshares, Inc. She has her
Certified Public Accountant certifi­
cate from the State Board of Ac­



Mary Nutter has been promoted
from assistant cashier to assistant
Banker, January, 1987
Federal Reserve Bank of St. Louis

Elected in Huron
vice president. She has been with
Farmers & Merchants Bank,
the bank since 1973 and for the past Huron, has elected Bettina Sinclair
several years has served as person­ as assistant vice president. She was ^
nel officer.
previously marketing officer for the
Elected as assistant cashier, bank and will continue in the current
Clark Mickelson joined the bank in capacity of overseeing marketing
and training, in addition to supervis­
ing the bank’s retail banking opera- £
Two Elected in Sioux Falls
Ms. Sinclair has been employed
Tim Hamel and Andrew L. Neu- with the bank since 1979.
harth have been elected assistant
vice presidents, trust services divi­
sion, of First Bank of South Dakota, Named in Sioux Falls
Sioux Falls.
Donna Johnson has been named
Mr. Hamel joined the bank in administrative officer of Norwest
1984 and was elected a trust busi­ Bank, Sioux Falls. She joined Nor­
ness development officer in 1985. He west in 1966 and has been an execu- £
was engaged in private law practice tive secretary in the region VI office
for two years prior to joining the since 1982.
Mr. Neuharth also joined the
bank in 1984. He was elected a trust
investment officer in 1985. Prior to Plus System and Visa
joining the bank, he was employed Are Near Agreement
by the State of South Dakota as a
Plus System, Inc., the nation’s
banking analyst for two years. He largest automated teller machine
also worked for three years as a network, and Visa U.S.A., the larg- ^
trust investment manager for First est U.S. credit card system, an­
National Bank in Sioux City, la.
nounced last month that the man­
agements of the two organizations
have agreed to recommend to their
Pres. Elected in Sturgis
respective boards of directors an af- q
Bob Kaul has been elected as filiation between the two organiza­
president of the Sturgis branch of tions. Approval by the respective
boards and the Plus System, Inc.
Norwest Bank South Dakota, N.A.
He joined Norwest in 1980 as an membership is expected to be com­
ag banking officer in Aberdeen and pleted by the last week of January. ^
Under the proposed arrangement,
in 1984 was named vice president,
ag banking. Prior to joining Nor­ Visa U.S.A. members may join Plus
west, he was with the Production System, Inc. and obtain the right to
Credit Association in Aberdeen and use the PLUS SYSTEM mark as an
ATM sharing mark in the U.S., in q
addition to their existing right to
use the Visa mark for ATM cash ad­
Promoted in Sioux Falls
vances. Visa U.S.A. will become a
Norwest Bank South Dakota, special member of Plus System, Inc.
N.A., Sioux Falls, and Norwest In­ and the board of Plus System, Inc. %
vestment Services, Inc. announce will be reconstituted to consist of 14
the promotion of Bill Lindquist to directors elected by proprietary
vice president/manager, affiliate members of Plus System, Inc. and
seven directors appointed by Visa
sales offices.
In his new position, he will U.S.A. Other terms of the transac- 0
assume responsibility for the invest­ tion were not disclosed.

NDBA Conf. Set For Feb. 3-4
The North Dakota Bankers Asso­
ciation Bank Management Confer­
ence has been set for February 3-4,
1987, at the Kirkwood Motor Inn in
Featured speakers include Earl
Butz, former U.S. Secretary of Agri­
culture; Arch Lustberg of Washing­
ton, D.C.; Lee Sherman Dreyfus,
governor of Wisconsin from 1979 to
1983; Larry McDaniel, Office of the
Comptroller, Minneapolis; Gary
Preszler, commissioner, State Bank­
ing Department; Harvey Huber,
NDBA president, and Ken Maloney
and Bonnie Jordan of Maldan Man­
agement, Fargo.
For more information, contact the
NDBA office.

School of Banking
Applications Accepted
School Director Kris Compton
from the First National Bank in
Grand Forks has announced that ap­
plications are now being accepted
for the 1987 session of the North Da­
kota School of Banking to be held
May 31-June 5 on the University of
North Dakota campus, Grand

nominating committee will propose
the following candidates for election
by the general membership: For
president-elect—Roger Berglund,
president, Dakota Western Bank,
Bowman, and for vice president/
treasurer—Ken Reno, president,
United Bank, Bismarck. Additional
nominations may be made from the
floor for either of these positions.
The office of NDBA president for
1987-88 will automatically be as­
sumed next summer by current
President-Elect John Pierson from
Norwest Bank Minot.

North Dakota Central
Notice System Approved
Ben Meier, Secretary of State for
the State of North Dakota, has in­
formed secured parties, banks,
credit unions and federal lending
agencies that the North Dakota Cen­
tral Notice System was approved by
the federal government December
NDBA Officers Recommended 16, 1986.
He said several changes on the
The NDBA nominating commit­
notice system forms must be
tee has concurred on nominees for
the association’s officer positions implemented in order to meet fed­
eral regulations.
for 1987-88.
A copy of his memo, with an out­
During the NDBA annual meet­
of the changes, has been sent to
ing at Minot on June 16, 1987, the
all banks.
C.E. Pedersen, president and
CEO, First Interstate Bank of Cas­
per, said the new business has al­
lowed the bank to add four new posi­
tions to the servicing staff.
The bank plans to continue to ex­
pand its mortgage loan servicing
business, as well as other business

Stock Agreement Terminated
Affiliated Bank Corporation of
Wyoming has terminated a prelimi­
nary agreement to issue convertible
preferred stock to an investor group
headed by Peter S. Maher of New
York City. The company and the in­
vestor group were unable to agree on
the final terms and regulations of
the proposed stock issue.
First Interstate in Casper
Acquires New Business
First Interstate Bank of Casper
has acquired the servicing rights to
$167 million in mortgage loans. This
Federal Reserve Bank of St. Louis

acquisition nearly doubles the num­
ber of mortgage loans serviced by
First Interstate Bank of Casper.
Under the new servicing agree­
ments, First Interstate Bank of Cas­
per now services loans that originate
from other banks in Idaho, Montana
and Wyoming. The bank will handle
all of the payment and other pro­
cessing of these loans for the banks.
The other banks, in return, will pay
a fee for the service arrangement.
This new business has raised the
amount of real estate loans serviced
at First Interstate Bank of Casper
from $220 million to $387 million.
With this volume, it is among the
nation’s top 30 mortgage servicing

Promoted in Casper
First Interstate Bank of Casper
has announced the promotion of
James P. Miller
to vice president
and manager of
loan review and
Mr. Miller had
been assistan t
vice president
and loan review
officer of the
bank. He served
from 1980 to
1985 as a national bank examiner in
Billings, Mont, with the Office of the
Comptroller of the Currency.
Northwestern Banker, January, 1987


Left to rig h t: L oren R. A n d erso n , E xecutive Vice P resid en t, A d m in istrativ e Services; Roy M. O tte, Vice P resid en t, B an k
v e stm en ts D ivision; M ike Jacobson, Vice P resid en t, C o rresp o n d en t Loan Division; D en n is H. Stelzer, P resid en t, N B C /C om puter
Services Division; T hom as E. H en n in g , P resid en t, NBC.

Our people set us apart
from other
correspondent banks.
At NBC, you’ll find more than
just a full range of corre­
spondent banking services.
You’ll also discover a staff of ex­
perienced, capable, dedicated
professionals who are anxious
to serve you. Who are proven
perform ers, with a strong his­
tory of helping banks meet their
correspondent needs. Who to­
gether make NBC a leader in,

and your best choice for, corre­
spondent banking services.
Call NBC today! And put us to
work for you!


National Bank of Commerce
NBC C enter, 13th & O S tr e e t, L in coln , N eb ra sk a 6 8 5 0 8
( 4 0 2 )4 7 2 -4 1 1 5
M EM BER F.D .I.C . / ^ ^ ¡ \
V bank V*

Banker, January, 1987
Federal Reserve Bank of St. Louis













Five Nebraska Banks
Will Merge into MBHC
Regulatory approval has been re­
ceived to merge two Nebraska bank
holding companies and to acquire a
third one, then merge those holding
companies and their five banks into
the newly-titled First United Bancshares, Inc., headquartered in Ord.
Greg Stine, president of First
United, said the approval, effective
November 25, authorizes merger of
Mid-Nebraska Bancshares, Inc.,
Ord, and Broken Bow Enterprises,
Inc., Broken Bow, and the acquisition of Grant Bancshares, Inc.,
The new multibank holding com­
pany owns directly or indirectly the
Nebraska State Bank, Ord; McDonaid State Bank, North Platte; Peopies State Bank, Wolbach, all a part
of M id-N ebraska B ancshares;
Broken Bow State Bank, owned by
Broken Bow Enterprises, and Farmers National Bank, Grant, owned by
Grant Bancshares. The five banks
have total assets exceeding $150
Dale Stine is chairman of the
First United Bancshares and also is
chairman of each of the banks. His
son, Greg Stine, is president and
treasurer of the holding company, as
well as president of Nebraska State
Bank in Ord. Both of the Stines live
in Ord, where First United will head­
quarter. Dale Stine has been a Neb­
raska banker for 37 years. He is also
a co-owner of the Bank of Burwell
apart from the holding company.
Greg Stine received his law degree
from the University of Nebraska at
Lincoln in 1975, then joined his
father in the family banking enterprises.
Phil Jossi, who has been president
of Farmers National Bank in Grant,
has been appointed vice president of
the new holding company and will
continue to develop and expand the
First United management consult­
Federal Reserve Bank of St. Louis

real estate office until 1900 when a
new bank building was built across
the street, where the Brainard City
Hall now stands.
In 1928, the bank was sold to the
Novak brothers, Charles and Louis
F. The brothers erected a new build­
ing in 1967 by remodeling the old
“Popular Corner” of G.A. Falk gen­
eral store, providing spacious quar­
ters and modern bank facilities for
the community.
In 1968, the brothers sold the
bank to John Wagner and Affiliates
ing enterprise. He will office in of Schuyler. The bank is presently
North Platte.
owned by the estate of the late KerSucceeding him recently as presi­ mit Wagner, son of John Wagner.
dent of Farmers National Bank in
Grant is Terry O. Jensen, who
served 13 years at Nebraska State Banking School Set For
Bank in Broken Bow and the past March 9-13
year with First State Bank in Goth­
The Schools of Banking, Inc. will
enburg as senior vice president.
hold its 1987 School of Banking
Fundamentals on March 9-13, 1987,
at the Holiday Inn in Kearney. The
Changes Told in Grant
Farmers National Bank of Grant course is sponsored by the Kansas
has announced the appointment of and Nebraska Bankers Associa­
Terry O. Jensen as president and a tions.
This entry-level banking school is
director of the bank.
to introduce students to
Mr. Jensen formerly held man­
concepts as they re­
agement positions at Nebraska
State Bank, Broken Bow and First late to the overall functioning of a
bank. The course is designed specifi­
State Bank, Gothenburg.
He replaces Philip E. Jossi, who cally for new bank employees or
has been appointed to a manage­ those with limited or specialized
ment position with an affiliated banking experience.
Several new sessions have been
holding company in Ord, First
to the week-long course in­
United Bancshares, Inc. Mr. Jossi’s
operations, accounting, mar­
new responsibilities will include
management consulting for the keting and bank examinations. The
small- to medium-sized banking in­ school addresses additional funda­
mental subjects such as commercial
bank organization, lending and man­
agement development.
First Nebraska Bank
The enrollment fee is $600 which
Celebrates 100 Years
includes registration, instruction, all
The F irs t N ebraska Bank, classroom materials, four nights
(formerly the Bank of Brainard), in double lodging, all coffee breaks, one
Brainard, celebrated its 100 th anni­ reception and most meals.
For more information and to
versary last month.
In observance of the anniversary, register, contact Pam Bartak at the
approximately 225 people attended Schools of Banking, Inc., 525 South
an open house at the bank on 13th Street, Lincoln, Neb., 68508,
December 6 , 1986. Historical pic­ (402) 474-3313.
tures and items and coin collections
were on display and refreshments
served. Santa Claus also made an Elected in Norfolk
Clark Froehlich has been elected
appearance to welcome everyone
as vice president of the Bank of Nor­
who attended.
The bank turned 100 years old on folk.
A native Norfolkan, Mr. Froeh­
November 18, 1986, having been
founded on the same day in 1886, as lich was employed at Norwest Bank
a private bank by Alfred Kneeland before joining the Bank of Norfolk
Smith of Tuland, Vt. and J. (Tom) T. staff. He also served as a bank ex­
aminer for the State Department of
McKnight, a realtor in Brainard.
The bank operated in a former Banking.
Northwestern Banker, January, 1987

head of property management, other %
assets and closing coordinator of the
FDIC Kansas City regional consoli­
dated Omaha office.



Four officer appointments have
been announced at FirsTier Bank
Named vice presidents were Ar­
thur S. Meyers and Steven G.



Bank of Norfolk Acquires
First Savings Company
James Herbolsheimer, executive
vice president of the Bank of Nor­
folk, has announced that the bank f
has acquired First Savings Com­
pany. Director of Banking, James
Barbee, from the State Department
of Banking, granted the Bank of
Norfolk approval to purchase the £
assets of First Savings Company on
October 29, 1986.
The newly-acquired downtown
branch office is located in the
McMill Building on 125 South %
She joined the bank in 1967 and is Fourth. This facility makes up the
currently serving as manager of cor­ third branch for the bank of Norfolk.
Debra Jorgensen has been elected
porate trust accounting.
Michael D. Sullivan has been the new downtown branch manager.
named an officer. He joined the bank She joined the bank in 1984. Peggy •
in 1986 as a lending officer in the fi­ Novotny will also be on the down­
town staff.
nancial institutions group.
Those individuals employed with
* * *
First Savings Company at the time
Judy Z. Gotsdiner has been pro­ of the acquisition have been trans- #
moted to vice president and legal ferred to positions within the Bank
counsel, Alan J. Rausch to vice of Norfolk.
president of finance and operations,
and Charles R. McDaniel to officer Elected in Bellevue
and director of construction loans
Dennis J. Gilbert has been elected
and property management of Firs­ to the board of First National of
Tier Mortgage Co.
Bellevue. He has been with the bank
since 1975 and is currently senior
vice president.

Mr. Meyers joined the bank in
1965 and was named an assistant
vice president in 1971. He later was
appointed assistant director of per­
sonnel in 1973, and in 1983, was pro­
moted to manager of production
control. Mr. Meyers recently was
named the director of human re­
sources for FirsTier Bank Omaha.
Mr. Wickard joined the bank in
1984 as assistant vice president. He
currently is a lending officer in the
Ms. Gotsdiner joined the Omaha
corporate lending group.
National Corporation, FirsTier’s
predecessor company, in 1977. She
most recently served as second vice
president of the company, a position
she was promoted to in 1983.
Mr. Rausch also joined the com­
pany in 1977. In 1979, he was pro­
moted to second vice president. He
became assistant treasurer of Firs­
Tier Inc. in 1984.
Mr. McDaniel joined FirsTier
Omaha in 1986 as real estate
property manager in the real estate
Deanna Schreck has been ap­ mortgage department. He was pre­
pointed an assistant vice president. viously employed as department
Banker, January, 1987
Federal Reserve Bank of St. Louis

Manager Named in Norfolk
Clayton (Kay) Curtis, second vice
president of Norwest Bank in Nor­
folk, has been
named manager
of the bank’s
Sunset Plaza fa­
cility. This fa­
cility offers a full
range of banking
services in addi­
tion to its popu­
lar drive-up facil­


Mr. Curtis has
been with Norwest for three years.
Prior to that he was operations man­
ager of the Norfolk Livestock Mar­
ket. He also spent two years in the
U.S. Army as a communications of­
ficer from 1953-1955.
The Sunset Plaza facility is lo­
cated at the southwest corner of
Sunset Plaza.



n p |




Change comes fast in today s
banking — so fast you need
an anchor of stability and
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
Nebraska 1-800-642-9907; outside
meeting all your correspondent
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
Bank of Omaha at their disposal — one first national
omaha, nebraska 68102
for you.
member FDIC • 341-0500

firsl national bank

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1987

The three employees at the East®
Bank will move to the new building.
Current plans call for an automatic
teller machine to remain in the vicin­
ity of the East Bank.
(Continued from page 31)
named investment officer. He is a _
portfolio manager at United Capital ®
Management. He has been with the
bank since 1983.

Chris Wagner has been promoted
to assistant vice president of Have­
lock Bank, Lincoln.
He began working at the bank in
1979 on a part-time basis while at­
tending the University of Nebraska.
Upon his graduation in 1984, he
joined the bank full-time and cur­
rently works in the loan administra­
tion area.
Resigned in Callaway
Jim Smith, vice president and
loan officer at Seven Valleys State
Bank, Callaway, has resigned as a
director and officer.
He joined the bank in 1974 work­
ing in the insurance agency. In 1979,
he began working in the bank. He
plans to pursue other interests.
KBA & NBA Sponsor Schools
The Schools of Banking, Inc., in
cooperation with the Kansas and
Nebraska Bankers Associations,
will offer two week-long banking
schools in 1987 in affiliation with
the Professional Development Pro­
Through the Professional Devel­
opment Program, a systematic deli­
very network for banker education
is maintained on local, state, re­
gional and national levels (100-400
levels). The program fosters plan­
ning and collaboration among the
various providers of banker educa­
tion at each level.
The two b a n k in g schools,
200 -level, which will be offered this
year are the Commercial Lending
School and the Intermediate School
of Banking.
Through affiliation with the Pro­
fessional Development Program, the
1987 Commercial Lending School

Banker, January, 1987
Federal Reserve Bank of St. Louis

Added in Englewood
Don M. Clary has joined First In­
terstate Bank of Englewood as vice
Effective January 1, Gateway president and manager of the com­
Bank & Trust of Lincoln will now be mercial loan department.
known as Vistar Bank. The name
He has over 11 years banking ex- ®
change coincides with the bank’s perience and most recently was vice
move to a new address and a consol­ president in the energy banking
idation of the three banks held by group at First Interstate Bank of
the bank’s investor group. The other Denver.
two Lincoln banks involved in the
In addition, Marbella A. Rael has ®
merger are Citizens State Bank and been added as assistant vice presi­
Lincoln Bank East.
dent in the bank’s personal financial
services department. She has over
20 years banking experience.
will be held April 5-10 at the Holi­
day Inn in Kearney. The program Two Named in Ft. Collins
brings a nationally-acclaimed curri­
Betty L. Burk has been elected
culum to this school’s course of in­
vice president and cashier of Colo­
The Intermediate School of Bank­ rado National Bank—Fort Collins, £
ing is scheduled September 20-25 at and Arlene L. Minney has been
elected an assistant vice president of
the Ramada Inn in Kearney.
the bank.
Mrs. Burk was one of the bank’s
Promoted in North Platte
first employees when it opened in 9
The following promotions have 1972 as Fort Collins National Bank.
been made at First National Bank She served as its assistant vice
and Trust Company, North Platte: president and controller.
Carleen K. Tabke to facility man­
Mrs. Minney began her career
ager; Virginia L. Throm to assistant with the bank in 1977.
cashier, and John W. Frame to data
processing manager.
Grant Retires at CNB
W.W. (Peter) Grant, chairman of
Colorado National Bank of Den­
has retired from active manage- •
(Continued from page 30)
ment with the bank, but will retain
used at First Bank Produce in Min­ the chairmanship of the board.
He began his career with Colorado
neapolis which will be taken out of
storage and installed.
National Bank in 1958 in the bond
New features at the bank will in­ department after spending four •
clude “walk-up” teller windows on years with Bankers Trust Company
the outside of the building staffed in New York City. He was president
before and after regular bank hours, of the bank for 11 years and was re­
a handicapped ramp, an automatic cently appointed chairman.
His services to banking include
te lle r m achine and a n ig h t
depository slot at the main entrance. active participation in the Colorado
Because of the new convenience Bankers Association, of which he
features at the downtown bank, was president during 1981-82 and
operations at the East Bank facility chairman of the board during 1982on Blue Earth Avenue will be conso­ 83, and the Association of Reserve
lidated with main bank operations. City Bankers.



Our Nam e
Speaks For Itself.
So Does Our History.
As FirsTTer Bank Lincoln, we continue
to be known as one of the Midwest’s most
experienced providers of Correspondent Bank
Services. Our people and our commitment
As always, we’re the Correspondent
you can depend on for fast, responsive,

Gary L. Bieck
Vice President &

Kathryn Barker
Ag & Financial Officer

Steve Anderson
Vice President

David Luckey
Ag Inspector

personalized service in meeting your needs...
the kind of service upon which our reputation
was built.
And, as our name now implies, we’re
dedicated to bringing you the very best in
everything we do...backed by more than a
century of hands-on banking experience.

Marv Hefti
Vice President

Charles Ellis
Operations Manager

Mark Hahn
Vice President

Daniel Black
Ag & Financial

Charles Green way
Asst. Vice President

Betsy Crowley
Ag & Financial

Craig Engelage
Ag & Financial

For all your Correspondent needs, remember the name - FirsTTer.

S F irsT ier B a n k
13th & “ M” Streets • Box 81008 • Lincoln, NE 68501 • Phone: (800) 742-7462
FirsTier Bank, N.A., Lincoln, Member FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1987

John Chrystal, President, Bankers Trust

hen you get a loan request, your customer wants
a prompt answer.
So when you ask your correspondent bank about
overlines, shouldn't you be able to expect the same
quick response?
At Bankers Trust, our correspondent staff understands your overline needs. Just as important, we
understand the need to respond to them without delay.
As a major independent bank, we can usually give
you an answer right away. An honest, straightforward answer.
So, talk with Bankers Trust, where your overline
requests receive the attention you deserve.





Call us for a complete range of correspondent
banking services.


Investment Management
Individual /Corporate Services

Bank Acquisition Loans
Overlines & Participations


Full line of International Services

Fed Funds
Call 1-800-362-1688 or 515-245-2424

Banking Systems Processing
ATM & Debit Card Support
Cash Letter Processing
Remote Processing Support

Seventh and Locust • D es Moines 50304

Member FDIC

Banker, January, 1987
Federal Reserve Bank of St. Louis


R.S. Howard, chmn., Oskaloosa
N. Milner, exec, v.p., Des Moines









Norwest Bank Sioux City Signs
To Acquire Toy N ational Bank
ORWEST Bank Sioux City and
The Toy National Bank of
Sioux City have signed a letter of in­
tent for Norwest to acquire substan­
tially all of the assets and liabilities
of Toy, including all customer depos­
The sale is subject to execution of
a definitive agreement, approval of
Toy’s stockholders and approval by
regulatory authorities. The transfer
of ownership is expected to take
place during the first half of this
Financial terms of the transaction
have not been disclosed.
Toy National has assets of $145
million and banking facilities in­
clude a main office and two
branches. Norwest Bank Sioux City
has $130 million in assets and oper­
ates in two locations.
The letter of intent provides for
Norwest Bank Sioux City to pur­
chase Toy’s Mid-Town and Southern
Hills offices, but not its main office
facilities, which Toy plans to convert to other office use.
George F. Milligan, Des Moines,
regional president for Norwest Cor­
poration’s banking operations in
Iowa, said Norwest plans to operate
the two Toy banking offices as of­
fices of Norwest Bank Sioux City
and to transfer the banking business
in Toy’s main office to the main of­
fice of Norwest Bank Sioux City.
When the sale is concluded, Mr.
Milligan said that Norwest Bank
Sioux City will be the second largest
banking operation in western Iowa.
Norwest Bank Sioux City became
an affiliate of Norwest in 1929, the
year the bank holding company was
organized. Michael J. Moeller is its
president and CEO.
The Toy National Bank was
founded in 1912 by James F. Toy.
Federal Reserve Bank of St. Louis

John W. Van Dyke, Jr., a great
grandson of the founder, is president
and CEO. Upon completion of the
transaction, Mr. Van Dyke will join
Norwest Bank Sioux City as a mem­
ber of its board of directors and as
an officer of the bank.

governing their action and allow
outside parties to voice an opinion.
Mr. Howard said that, “although
this procedure was not followed,
General Services did seem to give
careful consideration to the various
factors that were of concern to the
banking community and proceeded
in a reasonable manner. Their assur­
ance is really the most important
factor, and the decision to drop the
case was made in good faith that
these assurances will be followed
Peoples Bank in Waterloo
Names Three
Roger P. Olesen has been elected
chairman of the Peoples Bank and
Trust Company,
W aterloo. He
has served as a
member of the
bank board since
1979. Mr. Olesen
is president of
Jens Olesen and
Sons Construc­
tion Company
and Olesen-SiR.P. OLESEN
monsen Realty.
Alan L. Ploeger has been named
manager of the bank’s La Porte City
office. His responsibilities include
coordinating the day to day opera­
tions of the office and overseeing its
loan functions.
He brings nearly 10 years of agri­
cultural lending experience to his
new position. Previously, he was an
agricultural loan officer at Peoples
Bank and Trust’s Main office. He
has also been head of the agricul­
tural loan department at banks in
Spencer and Humboldt.

IBA Withdraws Suit
Against State of Iowa
The Iowa Bankers Association
has withdrawn a lawsuit that was
filed Nov. 25, 1986 against the Gen­
eral Services Department of the
State of Iowa. The suit had been
filed in an effort to halt the move of
the Iowa Division of Banking from
its downtown Des Moines location
to an office building occupied ex­
clusively by state departments
away from the downtown area.
Russell S. Howard, IBA president
and chairman of the Mahaska In­
vestment Co., Oskaloosa, said the
decision to withdraw was made after
extensive discussion between mem­
bers of the IBA staff, representa­
tives from the governor’s office and
Iowa’s Superintendent of Banking
William R. Bernau. During the
meeting, spokespersons from the
governor’s office emphasized their
commitment to maintain the high
quality of regulation currently pro­
vided by the division of banking and
also indicated that the regulatory
functions of the banking division
would not be consolidated with the
other financial regulators. Further­
more, any future plans in this direc­
Robert W. Reinard has been pro­
tion will be developed in close con­
sultation with the heads of the three moted to assistant cashier at the
bank. Previously, he handled install­
regulatory divisions.
The authority for filing the suit ment loans. He has also been the as­
was based on the fact that, in order sistant manager of a Burlington
for General Services to move a state finance company and the manager of
office, it must first publish rules a Cedar Rapids finance company.
Northwestern Banker, January, 1987


Iowa News

Two Elected in Urbandale
Thomas A. Fix has been elected
as president and chief executive offi­
cer of First In­
terstate Bank of
Urbandale. He
joined the bank
on December 8 .
Mr. Fix was
previously em­
ployed by First
Bank in Austin,
Minn., where he
was vice presi­
dent in charge of L. WOODBURN
commercial lending, retail banking
and operations. He also served as
senior credit officer for the First
Banks in Austin and Albert Lea,
Loma Woodburn has been elected
as vice president and manager of the
bank’s real estate lending division.
She had previously managed the
residential loan production section
of Brenton Mortgages, Inc., Des

the past.
On the school’s faculty this year
are Gary D. Maples, vice president
of Central Wisconsin Bankshares,
Inc., Wausau, Wis., and George
Ruth, vice president of commercial
lending at Signal Hills State Bank,
in West St. Paul, Minn. Gene L.
Wandling, president of Wandling &
Associates, Inc., Iowa City, is direc­
tor for this year’s school.
For more information, contact
Martha Collins at (515) 286-4320 at
the IBA office.

Joined in W ebster City
Steve Doering has joined the
First State Bank, Webster City as
vice president
and trust officer.
He spent 10
years as an offi­
Promoted in Davenport
James R. Peterson has been cer at the Securi­
named vice president of commercial ty State Bank in
loans, and William A. Brockway has H u b b a rd and
been named a new assistant vice was most recent­
employed at
president of the bank card division ly
of Davenport Bank and Trust Com­
tio n in Iow a
Mr. Doering is replacing Tim Neuroth who has resigned to accept a
position in private business. He had
been with the bank for 10 years.

BAI Meeting Scheduled
The Central Iowa Chapter of the
B.A.I. will hold its January meeting
on Wednesay, January 14th, instead
of the usual Thursday.

Named in Ames
George J. Klotzbach has been
named internal auditor/compliance
officer with United Bank and Trust,
Ames. He ensures the bank complies
with all applicable state and federal
banking regulations and manages
the internal audit function.
Mr. Klotzbach formerly headed
the operations staff and co-managed
the in-house data processing center
for Nebraska State Bank in South
Sioux City, Neb., where he was


Mr. Peterson joined the bank in
1983 as a correspondent banking of­
ficer. Mr. Brockway joined the bank
in 1977 and currently administers
national merchant accounts and cor­
respondent bank accounts.
Other promotions at the bank in­
clude: Peggy Brehmer-Hull, ac­
counting officer; Cynthia Gertenback-Hughes, mortgage loan officer;
Martha Hellstrom Bakeris, market­
ing research officer, and Deborah A.
Testroet and Lawrence R. Kelly,
trust officers.

Three Promoted in Dubuque
Three have been promoted to vice
IBA School Set
president status at First National
For Feb. 8-14
Bank of Dubuque. They are: Beverly
The Iowa Bankers Association J. Anderson, personnel and manager
will hold its 1987 Commercial Lend­ personal banking; Linda L. Budde,
ing School in Ames, February 8-14. manager real estate department,
The school is designed to provide and Francis A. “Chip” Murray, Jr.,
commercial lenders with a broader manager West Dubuque office.
Ms. Anderson joined the bank in
knowledge in this field. The curricu­
lum also provides important train­ 1978 following employment in the
ing for those bankers who have been personnel department of the City of
involved in commercial lending for a Dubuque.
Mrs. Budde joined the bank in
number of years, but who have not
been exposed to formal training in 1981 as a real estate mortgage origi­

Banker, January, 1987
Federal Reserve Bank of St. Louis

nator. Prior to joining the bank, she _
was assistant manager of B anco*
Mortgage Company of Dubuque.
Mr. Murray has been with the
bank since 1984 following employ­
ment with Frank Hardie advertising ^

Rolfe Banker
Celebrates 50 Years
An open house was held last
month at the Rolfe State Bank in
honor of Chair­
man Robert D.
D ix o n ’s 5 0 th
year of banking
in Iowa.
F ifty y e ars
ago, after gradu­
ating from the
B elle
P la in e
High School and
B elle
P la in e
business college,
Mr. Dixon left work as a farm hand
to work as a bookkeeper at the Bank
of Galt in Galt. In 1939, Mr. Denger,
the cashier of the bank, died sudden­
ly, and Mr. Dixon was appointed
cashier at the age of 20 .
Mr. Dixon served in the U.S.
Navy for four years and in 1946,
joined First National Bank in Cla­
rion as a teller. Several months later
he moved to the Farmers Savings
Bank in Stratford, where he served
as cashier until 1951 when he joined
the Rolfe State bank as cashier.
In 1958, he was elected president
of the Rolfe bank, a position he held
until 1985 when his son, Robert J.
became president, and he became

“ P*-

,94 ^ ^ ì ò m

BANK 1986



------ f e t i .





r* * „


1 9 4 7 --------------------------------1986


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4900 OAK • SUITE 301 • KANSAS CITY, MISSOURI 64112 • 816/753-7440
Federal Reserve Bank of St. Louis

Bank and Trust.
Customers and employees took®
part in a number of events last
month to celebrate the anniversary.




Eight customers of the Hawkeyd#
Banks in Des Moines told why they
“choose to live in Iowa” in a holiday
greeting card produced by the two
banks. The customers’ comments,
selected from responses received®
last summer, celebrated everything
from the beauty of Iowa’s country­
side to the state’s educational sys­
tem, farm heritage and people.
The card culminated a year-long®
campaign by Hawkeye Capital and
Hawkeye Bank & Trust. The theme
of the campaign is “Yes We Do
Choose to Live in Iowa.’’
The cover of the card featured a®
winter rural scene by Iowa artist
Jim Buckels. Customer comments
were printed inside, with a blank
panel for a personalized greeting.
Packets of the card were sold to in-®
terested customers.

Des Moines
Hawkeye Bank & Trust in Des
Moines and Hawkeye Capital Bank
& Trust merged their operations and
charter effective January 1, 1987.
The new bank is called Hawkeye
Bank & Trust of Des Moines and of­
fers full financial services at six area
locations. The locations include the
two offices Hawkeye Bank & Trust
operated and the four previous loca­
tions of Hawkeye Capital. The main
office is at East 5th and Locust.
Mike Earley, president, said the
merger will provide more accessibili­
ty to customers, increase efficiency
and integrate the management staff.
Hawkeye Capital reported depos­
its of $86.2 million on December 5,
1986, while Hawkeye Bank & Trust
reported $52.5 million. Assets of
Hawkeye Capital were $96.9 million.
Hawkeye Bank and Trust reported
assets of $57.7 million. The two
banks had combined assets in midDecember of $154.7 million and de­
posits of $138.7 million.





pany since 1984, now assumes the
position of president and chief oper­
ating officer. Mr. Wood, a graduate
of Iowa State University, previously
served as president of Packers Na­
tional Bank in Omaha, Nebr. before
joining Bankers Trust in January,
Mr. Ruan will retain the position
of chairman of the executive com­
mittee of the board.
Bankers Trust is one of the larg­
est independently owned banks in
* * *



Hawkeye Banks in Des Moines re-,
cently announced three promotions/
C. Denise Jor­
dan has been
named cost acounting officer.
She has been
with HawkeyeCapital Bank &
Trust since 1978
and most recent­
ly served as con­
sumer loan offi__
Lori Paustian has been appointed
trust officer. She joined Hawkeye in(
1983 and was previously assistant
trust officer.


John Ruan, owner of Bankers
Trust Company, announced Decem­
ber 9 the following management
positions at a regular meeting of the
John Chrystal, president and
chief executive officer of the firm,
succeeds Mr. Ruan as chairman and
continues as chief executive officer.
Mr. Chrystal, who has been with
Bankers Trust for two years, is an
internationally recognized authority
on banking and agriculture.
Dennis Wood, executive vice
president with Bankers Trust ComNorthwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

Hawkeye Bank & Trust, head­
quartered at 24th and University,
celebrated its 75th anniversary dur­
ing the month of December.
The bank was founded in 1911 by
Grant McPherrin and was known as
the Drake Park Bank. In 1925, the
bank was renamed to First Federal
State Bank.
A new bank building was built at
the present location in 1970, signify­
ing the first of many commitments
to the Drake neighborhood. In 1972,
the bank became part of Hawkeye
Bancorporation and some years
later changed its name to Hawkeye



Loree Raker, who joined the bank
in 1983, has been elected investor
center officer and financial services
manager. Most recently she served
as assistant manager of the bank’s,
Hickman Road office.

You Could Be


B eing “J ust A B ank” I sn ’t E nough

Iowa Bankers Insurance and Services,
Inc. has developed a health insurance
program for bank depositors. The
name of this program is The
The program includes a compre­
hensive major medical plan and a
Medicare supplement. Costs are com­
petitive with other individual and
supplemental insurance programs on
the market.
Your participation in this program
requires little or no investment of your
time, personnel or capital. An IBIS
representative will visit your bank on a
regular schedule, explain The Protec­
tor plans to interested and eligible
depositors, and enroll them.
Federal Reserve Bank of St. Louis

Iowa Bankers Insurance and Ser­
vices, Inc.’s affiliation with Iowa banks
is a long-standing, dynamic relation­
ship. You know our integrity, the qual­
ity of our service.
The Protector health insurance
program is underwritten by Time
Insurance Company of Milwaukee,
Wisconsin. Time Insurance is con­
sistently rated A + “excellent” by the
AM. Best Company, an insurance
industry analyst.

• The Protector health insurance pro­
gram provides your bank with a
way to increase customer loyalty
and revenues.
• The Protector plans can attract
new customers.
• The Protector health insurance
program enhances your image as a
full-service bank.
Let IBIS introduce you to The Protectors
today! Call Chris Wehde at 515-286-4395 or


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• The Protector plans provide your
customers with quality, convenient
and affordable health insurance.


Peter S. DeLanoit has been pro­
moted to commercial loan officer at
Valley National Bank. He joined the
bank in 1985 as a credit analyst.



Christens K. Knapp has been pro­
moted to real estate lending officer at
the bank. She joined Valley Bank in
1981 and most recently served as
real estate administrator.
Bofl Skips Dividend, Plans
Growth and Acquisitions
Banks of Iowa directors voted at
a recent meeting to skip the
23-cents-per-share fourth quarter
dividend to reserve those funds for
possible acquisitions and to sustain
growth at their member banks.
Directors emphasized this move was
not to be construed as reflecting
poor earnings, but rather a purpose­
ful move for planned growth. Banks
of Iowa actually reported net income
of $8.9 million for the first nine
months of 1986.
The eliminated fourth quarter
dividend amounted to $700,000.
Bofl president and CEO Holmes
Foster said “the economy is coming
back” in Iowa, and that “now is the
time to buy banks.” He noted also
that the omitted dividend of 1 per­
cent doesn’t amount to much for the
serious investor.
Mr. Foster said Bofl is interested
in expanding its base in metropoli­
tan areas of the state. It was that
policy that prompted the holding
company to announce an agreement
recently to sell its $42 million asset
Commercial Trust & Savings Bank
of Charles City to Citizens National
Bank of Charles City, he said.
Wilford Dierks Dies
Wilford Dierks, a native of Aure­
lia, la., and a retired vice president
of the Federal Reserve Bank of Chi­
cago, died recently in Chicago. Mr.
Dierks began his banking career at a
Nebraska bank owned by James
Toy, then president and founder of
Banker, January, 1987
Federal Reserve Bank of St. Louis

gave 99 percent approval. Earlier,#
federal regulators approved the
transaction, which was completed
December 31, 1986.
Scott Fetner said the Indianola
bank will retain its name an d #
operate as an independent bank. Ad­
ditional services will be offered to its
customers, such as the New Hori­
zons Club, expanded trust services,
and specialized loan programs.
Mr. Fetner also indicated that
Peoples Trust will begin providing
correspondent bank services in Cen­
Added in New Hampton
Grant L. Anderson has joined the tral and Southwestern Iowa to com­
Security State Bank in New Hamp­ plement the 106 Northeast Iowa cor-#
respondent banks working with The
ton as a loan of­
National Bank of Waterloo.
ficer trainee.
“This is the third bank purchased
He is a recent
the past two years by Iowa Na­
g ra d u a te
Bankshares Corp...Midway#
Iowa State Uni­
Bank in 1985 and Gilbertville Sav­
versity with a
ings Bank in June of 1986,” accord­
bachelor’s de­
ing to Mr. Fetner.
gree in Agricul­
tu ra l Studies.
Three Elected in Dubuque
He previously
American Trust & Savings Bank,
w orked
for q .L. ANDERSON
Farmers Home
Dubuque has announced the elec­
Administration as a summer intern. tions of John L. Doellinger as vice
president, m ortgage loan de­
partment, Nicholas J. Schrup III as
vice president, commercial loan
la. N at’l. Bankshares Corp
department, and Larry W. Hayes as
Acquires Indianola Bank
personal banking officer.
Iowa National Bankshares Corp,
Mr. Doellin­
the parent holding company of The ger was with
National Bank of Waterloo and Mid­ Knutson Mort­
way Bank & Trust of Cedar Falls, gage Corpora­
has acquired Peoples Trust & Sav­ tion, Rock Is­
ings Bank in Indianola, according to land, 111. and
an announcement made by R. Scott Citizens Federal
Fetner, president of the Waterloo- S a v in g s and
based bank holding company.
Loan A ssocia­
Peoples Trust & Savings has $120 tion in Daven­
million in assets and a capital base port previously.
of $10 million. It is the largest bank
Prior to join­
in Warren County with three loca­ ing the bank, Mr. Schrup was vice
tions in Indianola in addition to of­ president, South Bay Regional cor­
fices in Milo, Lacona and Martens- porate banking group, First Inter­
state Bank of California.
Peoples Trust will become a whol­
ly-owned subsidiary of Iowa Na­
tional Bankshares Corp, which cur­
rently has assets of $370 million and
a capital base of $30 million. The
combination of these banks will pro­
vide an asset base of nearly a half
billion dollars, with an extremely
strong capital base of $40 million.
At a special stockholders’ meet­
ing held Wednesday, December 10,
1986, in Indianola, of the 311 stock­ N.J. SCHRUP III
Mr. Hayes has extensive experi­
holders, 100 percent of the votes re­
ceived were in favor of the merger. ence in both consumer lending and
On Thursday, December 11, 1986, corporate credit management in £
the INBC stockholders who voted Eastern Iowa.

Toy National Bank in Sioux City.
Mr. Dierks joined the Chicago Fed­
eral Reserve Bank in 1928, serving
there until his retirement as a vice
president in 1960. He was widelyknow n am ong Iow a b an k ers
through his travels across the
Hawkeye State.
Mr. Dierks is survived by his son,
who lives at 1360 No. Lake View
Drive, Chicago, 111. 60610.

Left to right: Robert Cooksey, Bank Card Marketing
Representative; William Brockway, Assistant Vice
President; Shirley Heishman, POS/EDC Coordi­
nator; Ronald Monahan, Credit Card Marketing
Officer; John Schricker, First Vice President;
Patricia Bear, Assistant Vice President.

High-quality, low-cost
credit card service
for you and your customers
Good service. It’s what your customers want. It’s what you
expect. And what you can count on from Davenport Bank.
Through our credit card program, you can confidently offer
your customers quality service —plus some of the lowest credit
card fees and finance charges around. And because your name
will appear on every card and application, your customers will
keep those all-important ties to you —the bank they’ve come to
Call (319) 383-3407 for more information or if you would like a
representative to call on you.


---------------AND TRUST COMPANY--------------MEMBER FDIC
Federal Reserve Bank of St. Louis


Iowa News

SPEAKERS at the 1986 Business Trends Conference hosted by Norwest Bank Des Moines,
N.A., were, left to right: Seated—Dr. Gordon P. Eaton, president, Iowa State University,
Ames; Gov. Terry Branstad, and George Milligan, chmn. & ceo of Norwest Bank. Standing—
Fred S. Hubbell, chmn. & ceo, Younkers, Inc., Des Moines; Alan Reynolds, chief economist,
Polyconomics, Inc., Morristown, N.J.; Daniel J. Krumm, chmn. & ceo, The Maytag Corp.,
Newton, and Lynn Horak, pres. & coo, Norwest Bank.

Iowa Business Trends Speakers Say:

Iowa Needs to be Aggressive
ONTINUED aggressive moves
will be needed to lead Iowa’s
economy back to a higher plateau of
economic activity and profit, it was
stated by a panel of speakers at the
28th Annual Iowa Business Trends
Meeting hosted by Norwest Bank
Des Moines, N.A., at the Marriott
Hotel in Des Moines in early Decem­
ber. Chairman George Milligan and
President H. Lynn Horak greeted
the more than 500 area business ex­
ecutives and visiting bankers.
Daniel J. Krumm, chairman and
CEO of The Maytag Corporation,
Newton, la., was lead off speaker
with his topic, “Planning Iowa’s Op­
portunities: M anufacturing, the
Challenge.” Noting “a great deal of
misunderstanding about change and
transition in the manufacturing sec­
tor,” Mr. Krumm said such changes
in the manufacturing sector are
widespread throughout the country:
productivity improvements, growth
by acquisition, and consolidation or
relocation of operations. These
trends alter our traditional employ­
ment patterns and they are likely to
continue for some time. Consequent­

Banker, January, 1987
Federal Reserve Bank of St. Louis

ly, it’s important to recognize them
as we assess our opportunities for
future growth and development.”
Mr. Krumm said a key factor in
this change is competition, both
from home and abroad. This leads to
productivity improvements, which
frequently leads to reduced work
staff. However, new opportunities
are created for business, utilizing
new workers. Mr. Krumm reviewed
the acquisitions and growth of May­
tag in pursuing the path he had de­
scribed, noting that Maytag now
has 21 manufacturing facilities in 18
cities and about 14,000 employees.
Also, he said, “we have become the
first billion-dollar corporation head­
quartered in Iowa. (Actually, our
sales this year will be close to the $2
billion mark.)”
Mr. Krumm stated later, “As we
examine Iowa’s manufacturing cli­
mate and plan for the future, it’s im­
portant to recognize these trends
because they clearly illuminate two
paths that we must follow on our
road to recovery. First, we must
work to create a business environ­
ment in Iowa that is as beneficial as
possible for all our existing indus­
tries. Second, we need to look for
economic growth and job replace­
ment outside the realm of our tradi­

tional manufacturing concerns. Spe-#
cifically, I think smaller manufac­
tu rin g o p eratio n s—those th a t
employ under 100 persons—are
more likely targets for us.”
Fred S. Hubbell, chairman and#
CEO of Younkers, Inc., department
stores, headquartered in Des
Moines, stated, “We have to create
our own opportunities since the
Iowa economy presently can’t do i t #
We expect a 4 to 6 percent sales gain
in 1987. The Iowa economy will im­
prove!” The restructuring of retail
business in Iowa and nationwide
continues, he said. The relative#
boom from 1972 to 1980 for retailers
resulted in new stores, especially in
regional and neighborhood shopping
malls, spurred by increased income
and inflation. That eight-year trend#
halted in 1980.
He said an Iowa State University
study says that in constant dollars
Iowa’s retail sales have declined
18% since 1979, non-farm employ-#
ment is below that of 1979, the pur­
chasing power of the dollar is less,
and population had declined, pri­
marily to the loss of young people,
who are shoppers, and an increase in #
the over-65 age group. In addition,
he noted, there is high consumer
debt, so with the change in tax law
that disallows consumer interest,
“we see a slower 1987.”
Mr. Hubbell said Younkers
belongs to a retail stores buying
group of more than 50 retailers with
total assets exceeding $6 billion.
That group also sees slower overall®
growth projected for 1987. He fore­
sees the closing of non-productive
stores and a continuation of mergers
and acquisitions. High expenses are _
hard to reduce, he said, so producti­
vity must improve to improve net
Dr. Gordon P. Eaton, president of
Iowa State University, Ames, said ,#
“This state cannot put valuable re­
sources such as Iowa soil and Iowa’s
farmers—the most productive in the
world—on the shelf because of diffi­
cult times in the farm economy.” Dr. #
Eaton said “The future of agricul­
ture in Iowa can be one of continued
overdependence upon two crops,
corn and soybeans, continued over­
production and depressed market
prices, continued use of costly and
in creasingly toxic p ro d u ctio n
methods, and continued reliance on
existing global markets, some of
which are fast disappearing.
“Frankly, this is the bleak sce-

Iowa News

nario that will result from continua­
tion of the existing 15-year record of
relative underfunding of agricul­
tural research in this state...The
results of that failure have now
caught up with us and are staring us
in the face. As a percentage of total
agricultural receipts, Iowa support of
agricultural research ranks among
the lowest of the significant agricul­
tural states in the country, at the
same time that those cash farm re­
ceipts have ranked among the high­
est... Our Agriculture and Home
Economics Experiment Station...
once one of the finest agricultural
research facilities in the nation is
now, indeed, slipping into mediocri­
ty in some areas and has already
slipped there in others.
“No matter what economic re­
covery plan is put into effect, agri­
culture has to be at its center. It is
too critical and too large a part of
our total economic base and it will
continue to be so through the end of
this century and beyond.”
Dr. Eaton then described another
“path leading into the future from
the critical crossroads at which we
• stand today.” To achieve this he call
for an increasing diversity in crop
and livestock production, methods
and marketing, utilizing the addedvalue concept to enhance Iowa’s in• come. “The key to this future,” he
said, “as in any other area and at
any other time is investment. He
called this diversification “one of
three overall goals in our initiative
• to attract major infusions of federal
funding for research at Iowa State
University. We plan to establish ma­
jor national research centers in In­
ternational Trade Development, in
® Food and Industrial Agricultural
Product Development—which in­
cludes our planned Meat Irradiation
Research facility—and in Agricul­
tural Toxicology and Immunity En­
hancement. Our other target areas
for federal support are the develop­
ment of advanced materials and pro­
ducts to form the basis of new indus­
tries appropriate to Iowa, and the
expansion of basic and applied re­
search programs with the greatest
potential for economic benefit to
Gains are being made in these
fields, Dr. Eaton noted, saying that
$31 million in federal appropriations
have been obtained —$11 billion for
the National Soil Tilth Lab, $9.5 mil­
lion for the New Industrial Materi­
als Center, $6.5 million for the
Federal Reserve Bank of St. Louis

Microelectronics Research Center,
$5 million for the Meat Irradiation
Center and $50,000 in planning
money for the Center for Agricul­
tural Product Development.
Dr. Eaton spent the remainder of
his talk discussing the exciting field
of biotechnology in which ISU is
deeply involved as a leader. That
area includes development of staff,
programs, procedures in such areas
as Agricultural Toxicology Center,
Immunity Enhancers, National Care
for Food and Industrial Agricultural
Product Development.
To return ISU to its pre-eminent
position as a leader in scientific ag
research, Dr. Eaton concluded, will
require significant investments,
being armed for a long fight of many
years, but above all “our most
needed characteristic will be perse­
Iowa Governor Terry Branstad
attended the noon luncheon and wel­
comed delegates, urging Iowa busi­
nessmen to “see Iowa through one
of her most difficult times in her
history. We are proud of our educa­
tional system and excited about the
opportunities ahead.”
The noon luncheon speaker ac­
cording to long-standing custom is a
guest econom ist. This y e a r’s
speaker was Alan Reynolds, chief
economist for Polyconomics, Inc.,
Morristown, N.J. He said the cur­
rent recovery period of 15 quarters
and 15.2% growth is one of the long­
est such periods we’ve experienced.
Savings have gone up by $200 bil­
lion, product gains have risen by
4.2% each year, the stock market
has doubled, inflation has been cut
dramatically, job rates are up sharp­
ly, and average after-tax income has
gone up 11% since 1981.
Mr. Reynolds said the “idea that
U.S. industry can’t compete is not
true. My figures show differently. If
the U.S. is losing jobs, who’s gain­
ing? All the other nations are doing
less than we are!” He also noted for
those who point to the U.S. being a
net debtor nation that one-half of
foreign investment is in our stock
market. “Those foreign investors,”
he stated, “could be using their divi­
dends to buy U.S. goods.” In addi­
tion, he cited the problems experi­
enced in most other nations—includ­
ing heavy export subsidies as well as
over-taxation at home—and said
“The U.S. can’t carry them all for­
ever, and all nations can’t expect
more than they import. I see signs of


recession in Japan and all Far East
and Asian countries, which are our
best markets right now. If these
countries are to improve, they’ll
need more updating of equipment,
thus providing us with export
opportunities. Also there is occur­
ring a brain drain from foreign coun­
tries due to repressive taxes and a
lack of opportunities.”
Some nations are taking steps to
offset these adverse factors. He said
“China and Turkey and their econo­
mies are growing. Mexico will trim
its tax rate 10 or 15 points pretty
soon. Israel plans to cut its tax rate
soon. But, all of this means we have
to have an anchor—such as gold, or
commodity exchange rates. Since
credit markets are global, cuts in tax
rates hold down interest rates all
over. Anyone who thinks supply
side economics is dead doesn’t know
what’s going on in the rest of the

FDIC Offers 50 Million
Continental Illinois Shares
Continental Illinois Corporation
of Chicago recently announced the
sale by the Federal Deposit Insur­
ance Corporation of 50 million
shares of Continental Illinois Corpo­
ration common stock at a price of
$5.25 per share in an underwritten
public offering. The FDIC granted
the underwriters the right to pur­
chase up to an additional 7.5 million
shares to cover over-allotments, if
Continental Illinois Corporation
will not receive any of the proceeds
from the sale.
The offer was made by the FDIC
to sell common stock issuable upon
conversion of approximately 30 per­
cent of the Junior Perpetual Conver­
tible Preference Stock that it owns.
If the full over-allotment option is
exercised, that percentage would in­
crease to approximately 35 percent.
Each of the preference shares auto­
matically converts into five shares
of Continental Illinois Corporation
common stock upon transfer by the
Following the transfer, approxi­
mately 105 million shares of Conti­
nental Illinois Corporation common
stock would be outstanding. The
FDIC will continue to own from 20.5
million to 22 million shares of the
preference stock.
Northwestern Banker, January, 1987


Iowa News

LEFT—Dr. Alan Greenspan, left, chmn., Townsend-Greenspan &’ Co., New York, visits with Crosby Kemper, chmn., United Missouri Bank.
Dr. Greenspan was the keynote speaker at the afternoon financial seminar. RIGHT—Highlighting the grand opening of the new United
Missouri Bank building was the ribbon cutting ceremony. Here, Crosby Kemper, left, chmn., and Malcolm Aslin, pres., UMB, share in the
exciting moment.

which occupies most of a square
block. The bank’s law firm, Watson
Ess Marshall & Enggas, occupy a
major portion of the remaining
space, with the rest leased by
Touche Ross & Co. accounting firm.
The unique new building was de­
sig n ed by A b e n d -S in g le to n
Associates, Inc., architectural firm.

Bob D. Campbell & Co. was struc­
tural engineer, while George Butler
Associates, Inc., architectural firm,
cal and electrical engineers. General
contractor was DiCarlo Construe-^
tion Co. The interior design was
handled by Sverdrup/Bunce inter­
iors, and interior contractor was
Winn-Senter Construction Co.

the Tax Bill shifts tax burdens to
businesses and “could retard future
business growth. Congress has de­
stroyed the incentive to rebuild and
commented. “ It is the politics of en­ expand businesses because they now
vy.“ He said he told Donald Regan, cannot plan long-term.” Because of
White House chief of staff, “This is all the complex, detrimental changes
not only a bad bill, but it is bad for caused by the Tax Reform Bill, Mr.
Rukeyser termed it “the Accoun­
White House politics.“
Noting that President Reagan has tants and Lawyers Relief Act.”
Mr. Rukeyser gave wide-ranging
made an about face on taxes, capital
gains and other aspects, he re­ assessments on various facets of the
minded his audience that “after government deficits, budgets and
President Nixon did his ‘simple’ tax programs, then held an extensive
adjustment 15 years ago, we ran question and answer session before
into double digit inflation and fed­ concluding his appearance.
Following their usual format,
eral deficits.”
Mr. Rukeyser pointed out that First National officials presented

panels of speakers from senior bank
officers. Presiding at the sessions
were James N. Meehan, vice presi­
dent, U.S. Financial Institutions Di­
vision, and Jack Clark, vice presi-|
dent, Community Bankers Division.
As an Early Bird offering, Mr.
Clark introduced Orion Samuelson,
agricultural services director of
WGN, Chicago, who gave an expert^
analysis of the Midwest ag situation
today. His review of the Farm Bill
and its effects was very incisive. He
pointed to the need to pull poor land
out of production, but criticized thei
bill proposed by Sen. Tom Harkin
(Dem., Ia.) which would set manda­
tory production controls.

(Continued from page 21 )
peal, the bank building also houses
the extensive United Missouri Bancshares Corporate Art Collection.
Currently, United Missouri Bancshares and United Missouri Bank
occupy four floors of the structure,
(Continued from page 20)

LEFT—Five v.p.s on hand to greet guests were, from left: Garth Dunn, Nevin Bowser, Clarence “Bud” Cross, Art Stake and Keith St. Pierre
Mr. Bowser, formerly in the correspondent bank division, has been in the investment division for some years. The other four are senior ac­
count officers in the Community Bankers Division. RIGHT—Neal Trogdon (left), exec. v.p. for the First’s World Corporate Bank; Stephe
Diamond, sr. v.p., and Leo Mullin, sr. v.p.—consumer bank.
Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

Iowa News


Centennial nostalgia!

Vignettes of Banking
Editor’s Note: The Iowa Bankers Association observed the
100th Anniversary of its founding convention in September,
1986, and the IBA will complete its first 100 years of service
on July 26, 1987. A number of Iowa bankers who are mem­
bers of the IBA 50-Year Bankers Club responded to our invi­
tation to share with other readers some of their
reminiscences of earlier Iowa banking history. These vig­
nettes w ill be published in issues during the Centennial
Year. Veteran Iowa bankers who have special memories to
share, or others who have access to earlier banking events
and records that would be of interest to our readership, are
invited to send us their comments. This includes bankers
from other states whose stories tell of the earlier days and
growth of midwest banking.

By ROBERT J. TANK, Chairman
Central Trust & Savings Bank, Eldridge, la.
(Entered banking in 1919)
HILE attending a business college in
Davenport at the age of 17, my dad told me
that Mr. Hugo Kuhl of the Peoples Savings Bank
at Eldridge had asked for me to help for a few
months. Mr. Kuhl was an elder gentleman who
managed a small rural bank.
Eldridge, with a population of 250 people, had
two banks, and Long Grove, a town three miles
north, had one bank. Thus the two towns, with
400 total population, had three banks; an exam­
ple of Iowa being over-banked. This is what we
had in 1920.
I got to be a teller-bookkeeper-janitor and had
the use of a second hand add-machine and type­
writer. The journal and the ledgers were hand
posted by pen and ink.
Mr. Kuhl died in December 1925, and his
brother Rudolph Kuhl, a local farmer, became
president of the bank and a close friend to me.
Rudolph had faith in me, so I became cashier and

Retired in Iowa City
Jack Bock retired as second vice
president of First National Bank,
Iowa City, on
D ecem ber 31,
He joined the
bank in 1940,
working in the
bookkeeping de­
partm ents. He
has worked in
several other de­
partments of the
bank throughout his banking career
and since 1971, has been second vice
Federal Reserve Bank of St. Louis

manager for the next five years. After the stock
market crash in October 1929, business got bad, and
in the fall of 1930, our local bank boards were con­
cerned and decided to merge. In December 1930,
the State Banking Department sent a special ex­
aminer, Mr. V.O. Figge, to work out the details of
the merger. It has been my privilege to have
known Mr. Figge since that time. He later as­
sisted me to hold offices in the Iowa Bankers
Association in 1964 and 1965 as vice president
and treasurer.
Business got worse after 1930 and at Christ­
mas time in 1932, the banks in Davenport closed,
and it was a struggle to survive with no deposit
insurance. The National Moratorium in March
1933 carried us through. In the 1930s I believe we
still had the bank stock assessment law, which to
me was grossly unjust. No one should suffer such
a loss.
The deposit insurance, which began in Iowa in
1934 and was continued by the Federal Deposit
Insurance Corporation, has saved us through the
past four or five years of very difficult farm and
business conditions. My son Jim has been presi­
dent of Central Trust & Savings Bank, Eldridge,
since 1974 and has had some rough experiences in
recent years. I had managed the Peoples Savings
for five years and the Central Trust and Savings
Bank, from 1934 to 1974. Thus, I have spent 66
years in rural banking, at this point.
I had no more intentions of getting into the
banking business, than being a fisherman.
However, dealing with people is the greatest
thing we have and a liberal education in itself. I
came from a family of modest means, but have
been blessed with much, as I have relatively good
health, am quite active, enjoy my wonderful fami­
ly, and have been married 60 years in October,

president and head of the customer
service department.
A past president of the Johnson
County Bankers Association, he is a
graduate of the Graduate School of
Banking, University of Wisconsin.
Mr. Bock and his wife, Mary Ann,
will be residing at 2929 Eastwood in
Iowa City.
Jim Davies Receives Award
In Indianola
Jim Davies, president of Peoples
Trust & Savings Bank of Indianola,
recently received the “Employer
Golden Key Award” from the India­


nola Business and Professional
Women’s Organization at the 39th
annual awards banquet.
Each year the award is presented
to an employer who has helped open
doors for women.
Peoples Trust & Savings has been
a leader in promoting women in nontraditional roles. Women at Peoples
Bank are encouraged to take addi­
tional training in preparation for
further advancement. At the bank,
women officers comprise 75 percent
of the total bank officers. These
women officer positions range from
assistant cashier through senior vice
Northwestern Banker, January, 1987


Iowa News

Maquoketa Banker Gets National Honor
S REPORTED in last month’s issue covering the
ABA National Agricultural Bankers Conference
in Nashville, Tenn., Roger T. Stewart of Maquoketa,
la., was presented the Grand Award and first-place
prize of $1,000 by A B A Bankers News Weekly for his
work in his agricultural community. Mr. Stewart is
senior vice president of Maquoketa State Bank in ex­
treme eastern Iowa. His award was the highest of six
presented by the ABA’s weekly newspaper for mem­
Excerpts from Bankers News Weekly story on why
Roger Stewart was selected as the Grand Award win­
ner show the depth and breadth of his involvement in
his home community of Maquoketa. Here is a con­
densation of the story announcing Roger as the winner:
* * *
There was no way Roger T. Stewart could just sit
back and watch the suffering of financially distressed
farmers and agribusinessmen in his Iowa community.
He had to do something.
“He’s given us credibility and demonstrated to the
agricultural community that we are concerned and try­
ing to do something.” said Maquoketa State Bank
Chairman and Chief Executive Officer Edward L.
Tubbs, who nominated Mr. Stewart.
The $95 million-asset bank situated in Maquoketa, a
community of 6,500 residents, is located in a depressed
market area — basically the result of the adversity
faced by farmers and agribusinessmen, said Mr.
The 54-year-old Mr. Stewart, who is in charge of loan
operations at the bank, grew up on a farm, still lives on
one and has a farmer son. He started his banking
career at Maquoketa as a farm representative solicit­
ing new accounts 20 years ago when the bank was just
eight years old and had only $3 million in assets.
The agricultural situation “is a problem I ’ve been
dealing with all of my life,” Mr. Stewart said. So it was
only natural that he looked for something to do to
assist his neighbor farmers.
Mr. Stewart helped organize two special committees
of concerned citizens — one to deal with debt review
and the other to handle the human factors involved in
the farm crisis.
The greatest benefit of Mr. Stewart’s work “has been
in enhancing the image of the bank in the agricultural
community when an adversary relationship between
borrowers and lenders is virtually inevitable,” Mr.
Tubbs said in his nomination. “The benefit to our bank
is beyond measure.”
The Jackson County Farm Operations Review Com­
mittee is a voluntary organization of 30 agribusiness
people, extension personnel, representatives from the
Farm Credit System and Farmers Home Administra­
tion, farmers and agribankers who provide agricultural
borrowers with the opportunity to discuss their indivi­
dual financial situation.
Northwestern Banker, January, 1987
Federal Reserve Bank of St. Louis

Roger T. Stewart (center), sr. v.p., Maquoketa State Bank, Maquo­
keta, la., pictured with his wife, Jennie, was honored as winner of
the 1986 ABA Bankers News Weekly Grand Award. Pictured with
him are Edward L. Tubbs (left), chmn. of the bank, and his son^
Alan Tubbs, exec. v.p. of the bank.

Mr. Stewart said each farmer seeking debt counsel­
ing chooses five people from the committee to serve on
a review board.
“The committee provided a setting in which com­
munications were improved between lenders and bor­
rowers and, in many cases, debt management was en­
hanced through cooperation of the committee mem­
bers,” said Mr. Tubbs in his nomination letter.
“They not only provided a vehicle which served as a
review process to farmers experiencing financial
stress, but also acquainted them with sound and rea­
sonable alternatives if it was impossible to continue
farming,” the chief officer said.
Mr. Stewart said the committee has served as an
eyeopener to many of its members who were unaware
of how banks operate. It also helped many people rea­
lize “the real crisis the farmer was in,” he said.
The human-services committee Mr. Stewart assisted!
in establishing is “helping with the personal ramifica­
tions” of the farm crisis, said Mr. Tubbs.
Mr. Stewart ranks the two committees of equal im­
portance. The human-services committee is designed
to assist farm families who are experiencing the!
trauma of losing their farms or facing foreclosure on
their personal property.
Work by both committees has been well received by
the community and had a positive effect on the bank,
said Mr. Tubbs. The farmers realize “somebody cared!
enough to set up a program,” said Mr. Stewart. “They
need someone to talk to.”
Mr. Stewart also organized a special informational
meeting in March for Jackson County bankers to deal
with stress. The meeting was conducted at a local hos-<
pital by a psychologist and covered both stress
suffered by the banker and how to handle an over­
stressed farmer.



Maquoketa State has long been a leader in its ag-

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


Iowa News

oriented community. Ed Tubbs,
chairman and CEO and President
John Fagerland have worked with
ag customers for years. Mr. Tubbs is
a past president of the Iowa Bank­
ers Association and a leader in the
12-state association group titled
MABSCO, which formed MABSCO
Agricultural Service, Inc. (MASI).
His son, A1 Tubbs, executive vice
president of Maquoketa State and
president of the family-owned Cen­
tral State Bank in nearby DeWitt,
was chairman of the ABA Ag Bank­
ers Division in 1984-85. Maquoketa
State has encouraged all of its staff
to be involved in community affairs,
especially those dealing with the
bank’s customer base of agriculture.

Banker and as chairman/CEO of
Commerce Publishing, died at his
home in Cedar Rapids, la., in Octo­
Don Clark had been editor of the
N orthw estern B an k er in Des
Moines for several years when he
moved to St. Louis in 1922 to man­
age the banking magazine acquired
by Clifford DePuy, then owner and
publisher of the N orthw estern
B a n k e r . When Mr. Clark purchased
the magazine in 1924, Mr. Wengert
joined the St. Louis staff after a
short span of employment with

Bankers Trust Company., Des M oines............................... 40
B a n k lin e ................................................................................11

N orthw estern B a n k e r .

Carpenters Pension Fund of Illinois ................................. 12 *

Both Mr. Clark and Mr. Wengert
were Iowa natives and were gradu­
ates of Grinnell College. Mr. Clark
□ was a Grinnell trustee for several
decades and both men retained a
lifelong interest in their support of
Grinnell and its students.

Two Veteran Banking
Magazine Publishers Die
Donald H. Clark, 90, founder/
chairman of Commerce Publishing
Co., St. Louis, parent firm of MidContinent Banker, died in November
following a lengthy illness. James J.
Wengert, 86, who succeeded Mr.
Clark as publisher of Mid-Continent

Joins Cherokee Bank
John B. Keeline, president of the
Central Trust and Savings Bank of
Cherokee, has announced that Jeff
Hoover has joined the bank as farm

Group 11 Meeting S cheduled*
Group 11 Chairman Ed Johnstone
has announced that the 1987 Bur­
lington Group Meeting will be held
February 22-23 at the Holiday in
Burlington. This is not Washing-®
ton’s birthday holiday weekend.

January, 1987

Davenport Bank & Trust C om pany..................................... 47
FirsTier Bank, L in c o ln ......................................................... 39
First National Bank, O m aha............................................... 37
First Wisconsin, M ilwaukee........................................... 28-29
Gross, Kirk Co., W a te rlo o ................................................... 53
IAC Group, Kansas C ity ......................................................... 55*
Iowa Bankers Insurance & Services, Inc.............................45
LaSalle National Bank, Chicago ....................................... 13
Marquette Bank, Minneapolis ........................................... 24
Merchants National Bank, Cedar R a p id s ........................ 2
National Bank of Commerce, L in c o ln ............................... 34
National Bank of W a te rlo o ..................................................... 5|
Norwest Corporation, M in n e a p o lis ................................... 56
Office Concepts, Ltd., W aterloo......................................... 54
Plus System, Inc., D en ve r................................................... 3
Rothschild, Unterberg, Towbin, L.F., Inc............................ 7
Swords Associates Inc., Kansas City ............................... 43
United Missouri Bank, Kansas C it y ....................................14





Banker, January, 1987
Federal Reserve Bank of St. Louis



P.O.BOX 808

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