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STEM JANUARY 1987 ________ United Missouri Bank Makes Its Move Bank Officers’ Salary Survey https://fraser.stlouisfed.org 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. The------ Strength of Eastern |owa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merchants National Bank is i Cedar Rapids. Iowa 52401 Member F D I C A BANKS OF IOWA BANK 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis technology to satisfy our requirements. “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 cardholders.” 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 . ¡Plus ISystem The premier choice. 4 NÖBMWESTERN JANUARY 1987 • 94thYear • No. 1480 MEMBER OF AUDIT BUREAU OF CIRCULATIONS MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER 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. FEATURES 15 1987 salary survey An exclusive report from the NORTHWESTERN BANKER 18 Quick action recovery plan How First National Omaha overcame EDP disaster 20 Unprecedented change, opportunity First National Chicago Conference looks ahead 21 United Missouri’s new building A standard of architectural elegance for Kansas City 22 Hung up on art! Kearney, Nebr., bank sponsors its 10th exhibit DEPARTMENTS 6 Dear Editor 8 Calendar 23 Illinois 25 Minnesota 26 Twin Cities 31 Wisconsin 31 Colorado 32 South Dakota 33 33 35 36 38 41 44 54 North Dakota Wyoming Nebraska Omaha Lincoln Iowa Des Moines Index of Advertisers NORTHWESTERN BANKER 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. Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 Phoenix. • 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 Francisco. _ 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^ tials. “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 issues.” 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 weather. For additional information or con ference registration forms, contact Fran Lowry at the ABA 2021% 663-5125. + Home Equity Loans Hoirie" Equity Loan Plan https://fraser.stlouisfed.org 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 319-291-5412 /■\ir Rec-Chek, Inc. PO. Box 239 Nevada, IA 50201 515-382-2186 6 Editor... “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 follow: “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 agriculture. “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 https://fraser.stlouisfed.org 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 above.) “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!” “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 Stone! “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 tions.” 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. ® 7 BOND SERVICE vs. BANK SERVICE Chances are, your bank has been exposed more than once to “bond service.” It’s transaction-oriented service from people who know bonds, not banks. So the advice you get too often goes no further than offerings and oc casional bids. Bond service is not what L. F. Rothschild, Unterberg, Towbin provides. Our specialty is BANK SERVICE.® Over 25 years of service that combines intimate knowledge of bonds with in-depth understanding of banks. BANK SERVICE views your portfolio in the same light as you do: As a crucial com ponent of your bank’s overall position. Not as an independent entity. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis That’s why before we make a recommendation we conduct a thorough study of your bank. Then our BANK SERVICE committee meets to discuss the Bank Report we’ve prepared specifically for you. The recommendations from the committee are tailored to your bank’s present position and future objectives in a chang ing marketplace. Our PMS system can help you monitor and manage your portfolio. We’ll introduce you to our Fixed Income Com puter Service, our investment banking group, our fixed income research, send you our news letter and invite you to appro priate seminars that we host in your area. All these services are de signed for one goal: To help you achieve your bank’s overall aims in a way no mere bond service can. So, while you may be get ting bond service, what you really need is BANK SERVICE. Call Mark Rosen, Principal, at (212) 412-2600. Ü _______________________ L. F. ROTHSCHILD, UNTERBERG, TOWBIN, INC. BANK SERVICE® Northwestern Banker, January, 1987 8 / ---------------------------------------------------------------------------------------------------- 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 1987 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 man. 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 Hilton. Mar. 2-6—Southeastern Essentials of Bank Marketing School, University of Georgia, Athens, Ga. Mar. 4—RMA Managing Under Liability Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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, Neb. 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, Washington. 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, III. State Conventions & Schools Colorado: Jan. 22—CBA Annual Legislative Seminar Reception, Denver. Jan. 29—CBA Legal Compliance Video Tele conference, Denver. Feb. 12—CBA Annual Security Seminar, Denver. 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, Denver. 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# Springs. Sept. 16-20—Independent Bankers of Colo rado Annual Convention, Beaver Creek, Avon. Illinois: f Jan. 29—Bank Compliance Symposium, at locations around the state. Feb. 4-5— IBA Commercial Credit Conference, Chicago. 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. £ Iowa: 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 ton. Feb. 25-27—IBA Mid-Winter Management Conference, Steamboat, Colo. Mar. 2-4—IBA Marketing Conference, Hotel Fort Des Moines, Des Moines. f 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. f 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 Bluffs. 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 boji. f Sept. 20-22—IBA 101st Annual Convention, Convention Center, Des Moines. Minnesota: 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 Ms. 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 ton. 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. Montana: 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 Sky. 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. Nebraska: 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. https://fraser.stlouisfed.org 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 state. 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 tings. 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, Wisconsin. 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 City. 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. Trip. May 10-12—SDBA Annual Convention, Howard Johnson’s Motor Lodge, Rapid City. 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 City. Oct. 21-22—SDBA Economics Seminar for Young Adults, Holiday Inn, Mitchell. Wisconsin: 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, D.C. 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. Wyoming: 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 per. 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 10 RMA Continues Its Lender Education OBERT Morris Associates, the national association of bank R 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 States. 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 1983. 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 # building. SAY H E L L O TO B A N K L IN E ' . A N D SAY H E L L O TO DATA PR O C ESSIN G C O ST SAVINGS 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 1-800-325-1481. BANKLINE is a division of Security Pacific Information Systems, Inc. v BANKLINE * •>* IM Say Hello to Flexibility. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1987 12 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 year. 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/ 232-7166. Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 proval. # 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 $34,000,000. 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 kets. 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 customers. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Unbeatable Support. 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 investigating. 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 ABN O LASALLE" Your Correspondent Banking Bridge ©1986 LaSalle National Bank Northwestern Banker, January, 1987 Balancing good banking with strong profits. 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. kj UNITED MISSOURI BANK of Kansas City, n.a. P.O. Box 226, Kansas City, Missouri 64141, (816) 556-7900 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • * • 15 1987 Salary Survey An • • Exclusive NORTHWESTERN BANKER Survey Q ALARY INCREASES for chief 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 survey. 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- CHART NO. 1A 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. CHIEF EXECUTIVE OFFICERS Assets in Millions Up to $15 $16-$30 $31-$50 $51-$100 $101-$150 Salary ’86 - ’87 $38,472 -37,296 1,176 52,421 -50,414 2,007 59,328 -56,803 2,525 74,350 -71,232 3,118 87,025 -84,808 2,217 % Increase ’87 to ’86 3.15% Estimated Bonus $ 6,552 (58.0%) Other Income $5,290 (51.0%) 6,138 (58.6%) 3,041 (50.6%) 65% (17%) 4.4% 10,666 (51.5%) 4,660 (24.9%) 72% (13%) 4.4% 20,506 (47%) 5,917 (33%) 76% (13.5%) 2.6% .... .... .... 3.98% 3.7% https://fraser.stlouisfed.org 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 16 CHART NO. 1B # 2nd OFFICERS Assets in Millions Up to $15 $16-$30 $31-$50 $51-$100 $101-3150 Salary ’86 - ’87 $26,849 -25,851 998 33,145 -31,897 1,248 42,142 -40,397 1,745 49,087 -47,090 1,997 57,000 -55,092 1,908 % Increase ’87 to ’86 3.86% 3.9% Estimated Bonus $3,217 (75%) Other Income $4,280 (43%) 3,446 (71%) 778 (29%) Common Stock Ownership By 45% ... m 4.3% 4,476 (74%) 2,536 (46%) ... 4.2% 6,398 (74%) 2,422 (35%) ... 3.5% ... ... • ... • Average 3.95% 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% m w $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 cers. 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 CHART NO. 1C 3rd OFFICERS Assets in Millions Up to $15 $16-$30 $31-$50 $51-$100 $101-3150 Salary ’87 - ’86 $19,525 -18,578 947 26,103 -24,846 1,257 34,462 -32,713 1,749 39,325 -37,829 1,496 50,033 -48,217 1,816 % Increase ’87 to ’86 5.1% Estimated ’86 Bonus $2,042 (78%) Other Income $ --. Common Stock Ownership By # 5.1% 3,650 (46%) 4,013 (50%) 5.3% 4,218 (61%) 4,188 (33%) 4.0% 5,438 (51%) • # 3.8% Average 4.66% Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $3,837 (59%) # 17 CHART NO. 3 CHART NO. 2 CEOs A B C D E 1987 Salary $38,472 52,421 59,328 74,350 87,025 Relationship Increase = = = = 36.3% 13.2% 25.3% 17.1 % over over over over A B C D “ What percentage increase do you plan for...” Assets in Millions Other Officers Non-Officer Staff Up to $15 $16 to $30 $31 to $50 $51 to $100 $101 to $150 1.8% 3.1 % 3.9% 4.4% 3.0% 3.6% 3.9% 4.2% 4.4% 3.1% Average 3.25% 3.8% 2nd OFFICERS A B C D E 1987 Salary $26,849 33,145 42,142 49,087 57,000 Relationship Increase = = = = 23.4% 27.1 % 16.5% 16.1 % over over over over A B C D 3rd OFFICERS A B C D E ® a 0 ^ 0 • # 1987 Salary $19,525 26,103 34,462 39,325 50,033 Relationship Increase = = = = 33.7% over A 32% over B 14.1 % over C 27.2% over D CHART NO. 4 “ 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 Millions 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 Q. What is the planned income in “None” 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; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $1,100,000 $1,800,000 $1,900,000 $2,200,000 $1,400,000 6.83 12.7 20.5 34.4 89.0 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.___________________ □ CHART NO. 5 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 Millions #2 to CEO Up to $15 $16 to $30 $31 to $50 $51 to $100 $101 to $150 Average = 69.8% 63.2% 71.0% 66.0% 65.5% 67.1% Showing relationship of No. 3 Officer salary to CEO and No. 2 salaries. Assets in #3 #3 to #2 Millions to CEO Up to $15 $16 to $30 $31 to $50 $51 to $100 $101 to $150 Average = 50.1% 49.8% 58.1% 52.9% 57.5% 53.7% 72.7% 78.8% 81.8% 80.1% 87.8% 80.0% Northwestern Banker, January, 1987 18 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 Ician’s 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. ELECTRICAL EXPLOSION! Smoke set off the 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 https://fraser.stlouisfed.org 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 interrupted. “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 19 • 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 mation. % “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 fashion.” “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 tions. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1987 20 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. q 1st Chicago Hosts 40th Conference By BEN HALLER, JR. Publisher TIME of unprecedented change A 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 ago. Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 visits. 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 FIRST CHICAGO. . . (Turn to page 50, please) Wall Street Week. 21 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 way. 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 zil. 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 cherrywood. 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 By ROBERT CRONIN 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 morning 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 E Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 Kearney State Bank VVvJt\Q Ut> on Art! RT has been a tradition at Kear ney State Bank and Trust Com A 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 zations. 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.) Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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. □ ^ q ^ q f q f £ 23 General Assembly Votes on Major BankingRelated Legislation in Springfield HE House Bill 3340, which re T 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 law. 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 session. 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 https://fraser.stlouisfed.org 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 tion of a CASH STATION/CIRRUS 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 planned. 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 nity. 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 Æl resources of a billion dollar bank to help you meet the challenges of today, and tomorrow. Technologies and services change, but our attitude hasn’t. Because Marquette Bank Minneapolis will never put aside our oldest promise to our customers: professional service with a personal difference. Marquette Bank Minneapolis M em ber FDIC Correspondent Services Division https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 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 0 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 year. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis was done by Korsunsky, Krank, Erickson Architects, Inc., Minnea polis. 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 building. 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 1. 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 management. 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 water. 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 visor. 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 26 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. (NIS). 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 Florida. * * * 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 Bank. * 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 s . CARLSON 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 bilities. 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. 0 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. * * * 9 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 treasurer. Mr. Johnson has been in the bank and asset based lending business # since 1968. Minnesota News 27 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 By BEN HALLER, JR. Publisher A 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 ington. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ACCELERATED EVOLUTION. Watch your bank’s deposited checks turn into profitproducing funds, fast, with accelerated check collection from First Wisconsin. We offer speedy service that cuts float. Experts to help streamline your operations. And low prices that save you money on every item we process. Put our accelerated evolution to work on your checks—for a profit that’s no small change! Call First Wisconsin at (414) 765-4459. WHEN PERFORMANCE COUNTS. FIRST WISCONSIN ©FWC 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 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 tionships.” 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 shape. 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 A 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 1987. “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 ter.” The land trade idea surfaced as the bank looked to expand its facili First Bank Fairmont will be occupied in summer 1987. Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MINNESOTA NEWS. . . (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 Springs. 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 https://fraser.stlouisfed.org 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 Bank—Sterling. 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 Banks. 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 COLORADO NEWS. . . (Turn to page 38, please) Northwestern Banker, January, 1987 32 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, Mitchell. 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. J. OLSON 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. M.J. BEYER C. BERNDT 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 countancy. M. NUTTER C. MICKELSON Mary Nutter has been promoted from assistant cashier to assistant Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 1983. and training, in addition to supervis ing the bank’s retail banking opera- £ tions. 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. bank. 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 Selby. 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 Bismarck. 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 Forks. 33 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 central 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 line of the changes, has been sent to ing at Minot on June 16, 1987, the all banks. 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 opportunities. 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 https://fraser.stlouisfed.org 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 compliance. Mr. Miller had been assistan t vice president and loan review officer of the bank. He served J.P. MILLER 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 34 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! NBC 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* Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 • ® ® m ® ^ ^ ^ w ^ ^ q 9 9 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., Grant. 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 million. 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 https://fraser.stlouisfed.org 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. designed to introduce students to Mr. Jensen formerly held man basic banking 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 added to the week-long course in United Bancshares, Inc. Mr. Jossi’s cluding 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 stitution. 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 36 head of property management, other % assets and closing coordinator of the FDIC Kansas City regional consoli dated Omaha office. innnnnnm n«. mana Four officer appointments have been announced at FirsTier Bank Omaha. Named vice presidents were Ar thur S. Meyers and Steven G. Wickard. A.S. MEYERS S.G. WICKARD 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 J.Z. GOTSDINER A.J. RAUSCH 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 Bank Omaha in 1986 as real estate D. SCHRECK M.D. SULLIVAN 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 ities- C. CURTIS 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. 37 j.____ n p | A ^ Anchormen* Change comes fast in today s banking — so fast you need an anchor of stability and dependability. Meet the anchormen — the experienced, professional corre spondent bankers of First National Bank of Omaha. The more things change, the stronger is their commitment to Call them toll-free — in dependably and consistently 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 ofcenter, omaha 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1987 38 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. COLORADO NEWS. . . (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 gram. 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 struction. 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. 9 cashier, and John W. Frame to data processing manager. Grant Retires at CNB W.W. (Peter) Grant, chairman of the Colorado National Bank of Den MINNESOTA NEWS. . . ver, 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. 39 FirsHerCorrespondents 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 remain. As always, we’re the Correspondent you can depend on for fast, responsive, Gary L. Bieck Vice President & Manager 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 Representative Charles Green way Asst. Vice President Betsy Crowley Ag & Financial Representative Craig Engelage Ag & Financial Representative For all your Correspondent needs, remember the name - FirsTTer. S F irsT ier B a n k Lincoln 13th & “ M” Streets • Box 81008 • Lincoln, NE 68501 • Phone: (800) 742-7462 FirsTier Bank, N.A., Lincoln, Member FDIC https://fraser.stlouisfed.org 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. - W • 9 Call us for a complete range of correspondent banking services. TRUST SERVICES COMMERCIAL Investment Management Individual /Corporate Services Loans Bank Acquisition Loans Overlines & Participations % INTERNATIONAL BANKING Full line of International Services INVESTMENTS Bonds Fed Funds CDs Call 1-800-362-1688 or 515-245-2424 OPERATIONS Banking Systems Processing ATM & Debit Card Support Cash Letter Processing Remote Processing Support Seventh and Locust • D es Moines 50304 BankersTrust Member FDIC Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 R.S. Howard, chmn., Oskaloosa N. Milner, exec, v.p., Des Moines 9 # • • ® ® ® ® Norwest Bank Sioux City Signs To Acquire Toy N ational Bank ORWEST Bank Sioux City and N 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 its. 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 year. 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. https://fraser.stlouisfed.org 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 through.’’ 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 A.L. PLOEGER R-W. REINARD 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 42 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, Minn. 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 Moines. 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 P r o duction of Davenport Bank and Trust Com Credit Associa pany. S. DOERING tio n in Iow a Falls. 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. J.R. PETERSON 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 cashier. W.A. BROCKWAY 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 ^ company. 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 R.D. DIXON 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 chairman. “ P*- ,94 ^ ^ ì ò m BANK 1986 western Missouri bank northern ------ f e t i . ■ir1-..4 1963 1986 WrOMING 1 r* * „ WEST1LUNOISBANK 1 9 4 7 --------------------------------1986 NORTHW EST OHIOBAMK. B*19ò 7 D4 9 8 6 1» 4#ÉI ✓ A»' Will Tomorrow Be Too Late? Can you p lan for your b an k’s future? The future for your bank could b e m uch brighter if an effective, resourceful, strategic p lan w ere developed and im plem ented. Place your trust in a n established, resultoriented com pany, SWORDS ASSOCIATES, INC. You n eed a com pany with the ability to pinpoint, an alyze and resolve problem s. SWORDS ASSOCI ATES, INC. has earned an en viab le reputation for its problem -solving abilities, stability and integrity. Backed by more than two centuries of com bined bank in g exp erience our associates understand your n eed s and are m eeting the ch allen ges of tomorrow’s banking indus try. Each associate is dedi cated to working for the future of your bank. SWORDS ASSOCIATES, INC. continues to b e success ful b ecau se our clients have b ecom e successful. For a d etailed brochure of com p an y services p lease c a ll or write. Please send me a Swords Associates Brochure. Name & Title Bank/Company Street Address City State Zip Telephone W A SWORDSASSOCIATES. INC. PROFESSIONAL BANKING CONSULTANTS 4900 OAK • SUITE 301 • KANSAS CITY, MISSOURI 64112 • 816/753-7440 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 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. * * J. CHRYSTAL D. WOOD 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, 1985. 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 Iowa. * * * * * 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__ . cer. CD-J0RDAN 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 board. 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 https://fraser.stlouisfed.org 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 L. PAUSTIAN L. RAKER 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. ManyOf YourBank Depositors Need Health Insurance You Could Be TheBankTo Introduce ThemToThe Protectors 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 Protectors. 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. https://fraser.stlouisfed.org 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 1-800-532-1423. — W hy Participate In T he P rotector H ealth I nsurance P rogram ? • The Protector plans provide your customers with quality, convenient and affordable health insurance. ■& IOWA B A N K E R S IN SU R A N C E & SERVICES, INC. 104 EAST LOCUST DES MOINES, IOWA 50308 46 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. P.S. DELANOIT C.K. KNAPP 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gave 99 percent approval. Earlier,# federal regulators approved the transaction, which was completed December 31, 1986. R. 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 in the past two years by Iowa Na g ra d u a te of tional 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. J.L. DOELLINGER 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 dale. 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, L.W. HAYES 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 trust. Call (319) 383-3407 for more information or if you would like a representative to call on you. □A/EINPO RT BAINK ---------------AND TRUST COMPANY--------------MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 203 WESTTHIRD STREET, DAVENPORT, IOWA 52801-1977 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 By BEN HALLER, JR. Publisher ONTINUED aggressive moves will be needed to lead Iowa’s C 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 Northwestern Banker, January, 1987 https://fraser.stlouisfed.org 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 profit. 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 Iowa.” 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 https://fraser.stlouisfed.org 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 verance.” 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 49 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 world!” □ 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 any. 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 FDIC. 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 50 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. □ UNITED MISSOURI. . . (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, FIRST CHICAGO. . . (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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa News 51 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 W 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, 1986. He joined the bank in 1940, working in the transit and 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 https://fraser.stlouisfed.org 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, 1986. □ 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 Í 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 president. Northwestern Banker, January, 1987 52 Iowa News Maquoketa Banker Gets National Honor S REPORTED in last month’s issue covering the ABA National Agricultural Bankers Conference A 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 bers. 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. Tubbs. 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 https://fraser.stlouisfed.org 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- W hen You Build Or Remodel Your Bank, Who Really Benefits? lì^ f o g f Local Excavator | 0 i o t t r Local Lumber Yard iM^four Local Concrete Supplier IM^fbur Local Carpet Store IJ^four Local M ason [ B r o u r Local Hardware Store m o u r Local Electrician E x o u r Local M otels i M i o u r Local Plumber [B^Tour Local Restaurants 0 Y o u r Local Heating Supplier [ f^ Y o u r | 0 x o u r Local Paint Store 0 Y o u r Local Appliance Store 0 ^ fo a r Local Painter IB^four Local Landscaper 0 T o o f Local Roofer 0 i o u r Local Newspaper I^HTour Local Air Conditioning Company The Kirk Gross Company uses local contractors and suppliers whenever possible. But they’re not the only people who benefit. Local Drapery Shops Y O U DO, TO O ! The whole town benefits. That’s what your operation is all about. That’s what our operation is all about. KIRK GROSS CO. 4015 Alexandra Drive Waterloo, Iowa 50704 Phone 319-234-6641 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 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 ber. 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 representative. 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 NATIONAL BANK OF IOWA, DENISON, IOWA • • • DESIGNERS PLANNERS BUILDERS OF FINANCIAL INSTITUTIONS OFFERING TURNKEY SERVICES Northwestern Banker, January, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OFFICE ONCEPTS LTD P.O.BOX 808 WATERLOO, IOWA 50704 319-234-1221 W hen it comes to financial service companies, ours stands out. In many ways. And one of the most important is the personalized service you get through a team of Field Representatives who are well aware that banking has changed, and who know the needs of today's banks. They offer you bank-designed programs that build profits for you and are a valuable service for your customers—a complete line including Credit Life tailored to fit your loans, Commercial and Real Estate protection for larger loans, Collateral Protection, Financial Planning, and Executive and Director Programs. What's more, IAC gives you important service, training and fee income advantages. To find out more, give us a call. And find out for yourself why so many thousands of lending institutions in the United States and abroad agree that the IAC Group is outstanding, in many ways. 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