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Bank Officers


Kansas Bankers Surety’s
New Home
Federal Reserve Bank of St. Louis




3 things
to take with you;
into the future ■
1. An optimistic budget
2. A strong strategic plan
3. Merchants National Bank


To assure a prosperous N ew Year, you must
plan carefully...and pack accordingly.
That's w h y so many banks across the midwest
choose Merchants National Bank w hen plotting
the course ahead.
They trust MNB's outstanding correspondent
staff and ability to consistently provide quality
financial products.
For great accomplishments, call Merchants
National Bank. We look forward to seeing you the future.

Jerry Trudo

Dick Retz

Bob Louvar




Dennis Earhart Terry Martin Andy Appleton



Correspondent Division

1 800 332-5991
Federal Reserve Bank of St. Louis


Merchants National Bank

is i

Doug Bass

First Bankers
Brings the
New Daw n...




The investm ent brokerage com petition is
m aking a lot of m oney in your
com m unity. Recent statistics show that
Com m erical Banks hold only 32% of the
financial assets in the United States. First
Bankers Securities C orporation believes
that w ith our help you can control more
of the assets in your m arket and
translate that control into profits for
yo u r Bank. O u r professionals have the
hands-on experience and the system to

put you into the full-service brokerage
business . . . profitably. Together we
open an Investm ent C enter in your
Bank. O ur job is to make this Invest­
m ent C enter earn returns for you year in
and year out while we handle the
details. For m ore inform ation on First
Bankers Securities C orporation's Invest­
m ent Center Program , contact James R.
Rowlette, Jr. at (800) 952-7899
(N ational) or (800) 325-3030 (Iowa).

First Bankers Securities

Investment Center
Federal Reserve Bank of St. Louis

Program • Bank Trust Asset Management • Asset Management Consulting

BICS G ets Award

JANUARY 1988 • 95th year • No. 1492


WHEN Kansas Bankers Surety Com pany of Topeka, Kan., challenged the odds
seven years ago by expanding furthe r in to the Bankers B lanket Bond business,
little did its m anagem ent realize how well it would succeed. One o f the benefits of
that grow th is the new home o ffic e build in g (front cover) th a t has been con­
structed to handle its rapidly expanding volume. Story is on page 13.

Hogan System s, a leading fina ncial
industry softw a re vendor, recently
presented its “ T echnology and Team­
work A w a rd’’ to Banks of Iowa Com ­
puter Services, Cedar Rapids, la.
BICS Pres. Brian Scott (left) is shown
receiving the award from Hogan rep­
resentatives Gail Wright, sr. account
exec., and Don Campbell, gp. v.p. of
mktg. They said “ BICS is one of very
few com panies w orldw ide to ever re­
ceive th is a w a rd !” Mr. S cott accepted
the award on behalf of the BICS team
at Cedar Rapids headquarters.



Bank officers salary survey



N o r th w ester n Ban ker

Record Data Appoints
Wisconsin State Manager

report on top three o ffic e rs

Mergers and acquisitions — Part III

Dr. Doug A ustin te lls how to ne go tiate the deal


Theories of lender liability — Part II

A tto rne y Roger Beverage reviews bankes’ duties


M innesota
Twin C ities
Illin o is
W isconsin
South Dakota
N orth Dakota
C olorado


W yom ing
Des M oines

Record Data, a subsidiary of
TRW Inc., has announced the ap­
pointment of Elaine Ganos to state
manager/operations for its Wiscon
sin statewide service center.
Prior to joining Record Data in
November 1985, Ms. Ganos was a
partner in both C.G. Ganos Contrac­
tors and Ganos & Co. Real Estate.
She was named to her new post in
September, 1987.
Ms. Ganos attended the Wauke­
sha County Technical College where
she studied retail sales and bugines
management. Ms. Ganos currently
resides in Waukesha, Wis., with her
three children.

John E. Swearingen to
Retire From Continental

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

Phone (515) 244-8163

Publisher & E dito r

A ssociate Publisher

A ssociate E ditor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1492 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, 1988
Federal Reserve Bank of St. Louis


John E. Swearingen retired as an
officer of Continental Illinois Corpo­
ration, Chicago, on December 3 1 ^
Mr. Swearingen will continue as a
member of Continental’s board of
directors and chairman of the
board’s executive committee.
In connection with its reorganiza#
tion, Mr. Swearingen joined Conti­
nental as chairman and chief execu­
tive officer of Continental Illinois
Corporation in August 1984. He had
retired as chairman of Standard Oil#
Company (Indiana), now Amoco

Corporation, in 1983 after having
been employed by that company for
44 years and serving as its chief ex­
ecutive officer for 23 years.

Minnesota Couple Wins
RMA Writing Award
The winners of the Robert Morris
Associates Award for Journalistic
Excellence for 1986 were announced
recently during the association’s
73rd annual Fall Conference at the
Hilton Hawaiian Village in Hono­
lulu. Robert Morris Associates is
the national association of bank loan
and credit officers.
First place award was presented
to the husband-wife team of John
Burlowski and Joan Sampson. Mr.
Burlowski is loan support manager
for Norwest Retail Services, Inc.,
Minneapolis; Ms. Sampson is a fami­
ly counselor, Central Minnesota
Mental Health Center, St. Cloud.
Their article entitled, “The Human
Side of Problem Loan Workouts,’’
appeared in the May, 1986, issue of
the RMA Journal of Commercial
Bank Lending.

Donald Bockelman Receives
National Excellence Award
Donald D. Bockelman, senior vice
president and manager of the Farm­
ers Mutual Hail
In s u ra n c e of
I o w a /re in s u r0 ance d e p a r t­
ment, received
national recogni­
tion in Chicago
recently, when
• he w as p re ­
sented the prestig io u s “ D r. D.D. BOCKELMAN
G eorge
Young Award for Professional Ex• cellence” by the Independent Rein­
surance Underwriters.
The Dr. George D. Young award
was presented for the first time in
1985, and was established to honor
• involved members of the indepen­
dent reinsurance underwriters orga­
nization who demonstrate excellence
in their contribution to the IRU
The IRU was established in 1969
by a small number of midwestern re­
insurance companies. During the
past twenty years it has grown to
national scope, involving 106 rein• surance companies all over the
United States.

Federal Reserve Bank of St. Louis

LaSalle National Bank supports you. With
more than halt a century of experience...
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 an d financial services
• global trade finance
• m erger an d acquisition consulting
• trust, treasury an d many 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 b an k in g
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m a n y a d v a n ta g e s w ell w o rth
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del an d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le support —with b etter service,
better products and better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Northwestern Banker, January, 1988


first solo non-stop
flight across the A tlantic Ocean,
Oscar was W born and United

Bank opened its

Correspondent Banking Division.
United Missouri announced Correspondent Banking
Services in ’27. It didn’t make national headlines. It did make
a difference.
Since then, United Missouri has helped hundreds of
banks improve their funds collection.
The bank has done it by building a large direct send net­
work. And, by offering all correspondent banking services
which only an experienced bank could offer.
As a result, United Missouri customers have collected
their funds faster and invested them faster.
Tbday, United Missouri’s Correspondent Banking Divi­
sion still makes a difference. It can make a difference for you.
Call United Missouri Bank for your bank’s funds collection.
And, pick the proven performer.


of Kansas City, n.a.
P.O. Box 419226, Kansas City, Missouri 64141-6226
Federal Reserve Bank of St. Louis



Bank Officers
Salary Survey
An E x clu siv e NORTHWESTERN BANKER Su rvey
OMMUNITY banks in nine up­
per midwest and mountain
states will increase the base salaries

Respondents said CEOs in banks
from the smallest to those of $150
million in assets will average a
of the top three officers in each bank 4.51% increase, as noted in Chart
in 1988 by an average of 5%, accord­ 1A. That chart shows increases
ing to a survey conducted by the ranging from 4.03% to 5.6% among
N orthwestern B an k er .
banks ranked by asset size.

Second officers (Chart IB) will
have an average 4.85% increase,
while third officers (Chart 1C) will
average an even higher increase at
By comparison, the 1986 year-end
salary survey reported in January,

1988 vs 1987 Officer Salaries
C harts 1A, 1B and 1C show incom es fo r CEOs, 2nd O ffice rs and 3rd O ffice rs respectively. Each chart shows banks grouped in
Colum n 1 by seven asset sizes. Colum n 2 gives a com parison between 1987 salaries and 1988 projected salaries, w ith the
resulting percentage increase listed in Colum n 3 for each group. In colum ns 4 and 5, average d o lla r am ounts are shown for
1987 Bonus and O ther Income. The figures in parentheses d ire ctly behind these am ounts show the percentage of respon­
dents who paid those am ounts.

Assets in

’87 - ’88

% Increase
’88 to ’87


Other Income

Up to $10



$ 4,386 (92.0%)

$7,192 (72.0%)


8,267 (85.9%)

5,599 (36.6%)


7,742 (78.4%)

5,147 (31.4%)


8,347 (91.5%)

8,584 (28.2%)


7,817 (85.7%)

5,333 (28.6%)


15,903 (85.7%)

14,000 (28.6%)


18,619 (50.0%)


+ 1,882

+ 1,798


+ 2,178


+ 2,397


+ 3,380


+ 3,295

Over $100

+ 3,877


$8,147 (85.4%)

$6,694 (35.8%)

(1) Too few respondents com pleted th is portion of the qu estionnaire to com pute m eaningful figures.
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1988

1988 vs 1987 Officer Salaries
Assets in

’87 ■’88

% Increase
’88 to ’87


Other Income

Up to $10



$2,362 (78.3%)

$3,331 (56.5%)


2,802 (88.7%)

2,888 (32.4%)


3,938 (88.2%)

4,244 (33.3%)


3,705 (87.3%)

6,251 (21.1%)


4,706 (90.0%)

5,040 (25.0%)


7,000 (50.0%)

7,700 (50.0%)





$3,709 (85.3%)

$4,307 (31.7%)

+ 1,425
$11 -$20

+ 1,345

$21 $30



+ 1,684


+ 2,515


+ 2,381

Over $100

+ 2,815

(1) Too few respondents com pleted th is portion of the questio nn aire to com pute m eaningful figures.

1988 vs 1987 Officer Salaries
Assets in

’87 ■’88

% Increase
’88 to ’87


Other Income

Up to $10



$ 643(83.3% )

$2,040 (27.8%)


1,975 (89.3%)

2,629 (26.8%)


2,571 (77.6%)

3,440 (26.5%)


2,875 (84.3%)

4,371 (15.7%)


2,325 (100%)

2,813 (20.0%)


4,683 (85.7%)

1,000 (14.3%)


6,802 (78.0%)



$2,553 (85.2%)

$3,157 (22.3%)

+ 1,276
$11 -$20




+ 1,227




+ 3,198


+ 2,229

Over $100

+ 3,314


(1) Too few respondents com pleted th is portion of the qu estionnaire to com pute m eaningful figures.
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis


No Salary Increases

1988 Salary Increases for Other Staff Members

This chart show s the percentage of o f­
ficers who w ill not receive a base
salary increase in 1988, and gives a
com parison w ith sim ila r percentages
from the salary survey of one year ago.

This chart show s the percentage increases in base salaries the survey respondents
plan for o ffic e rs other than the top three o ffic e rs shown in earlier charts, as well as
the increases planned for non-officer staff.

1988 Survey 1987 Survey
2nd O fficers
3rd O ffice rs






The figu res below show the percent­
ages by the seven asset categories of
o ffice rs who w ill not receive an in­
crease in base salary, according to the
survey replies.

Assets in

Other Officers


Average =



However, that “no increase” figure
for CEOs among banks over $50 mil­
Up to $10 44.0% $51 to $70 19.0%
lion to $150 million drops to 13.9%
$11 to $20 32.4% $71 to $100 14.3%
for 1988. A study of the question­
$21 to $30 15.7% Over $100 12.5%
$31 to $50 28.2%
naires shows that the larger the
bank, the more likely it is that the
officers will receive a pay increase.
Up to $10 17.4% $51 to $70 10.0%
$11 to $20 25.3% $71 to $100 0.0%
The highest ratio of “no increase”
$21 to $30 13.7% Over $100 25.0%
in salary for CEOs was in banks of
$31 to $50 20.0%
up to $20 million assets and many of
those respondents own either con­
Up to $10 23.5% $51 to $70 10.0%
trolling interest or a large number of
$11 to $20 23.2% $71 to $100 0.0%
shares in the bank. Although they
$21 to $30 14.3% Over $100
apparently do not wish to increase
$31 to $50 18.6%
their own salaries, but rely on poten­
tial profits to boost their income
1987, showed CEOs with only a through bonuses and other income,
q 3.7% increase for 1987; second of­ many of these major owners have in­
ficers with a 3.95% increase, and creased the pay of their second and
third officers with a 4.66% increase. third officers and staff.
Similarly, Chart 2 shows fewer
The Questionnaire
banks are reporting “no increase” in
receiving the survey were
^ salary for the top three officers. The
chart shows that one out of four asked two principal questions:
1. What is the planned salary in
banks (25.2%) in the 1986 survey re­
(for CEO, 1st Officer, 2nd Offi­
ported there would be “no increase”
for 1987 for the top three officers. cer); 1987 salary; percent increase;
^ However, the current survey, as estimated 1987 bonus; other 1987
noted in Chart 2, shows that average income—e.g., insurance and real
estate commissions?
has fallen to 20 .8 %.
2. Other than your top three offi­
This is in keeping with the im­
proved agricultural conditions evi- cers, what percentage increase do
£ denced throughout the surveyed you plan for: Other Officers; Nonstates; it also shows that despite the Officer Staff?
Respondents also were asked to
resurgence of the upper midwest
economy, one of every five banks is check appropriate asset size of thenstill watching its salary overhead bank and give the name of their
# v e ry carefully. Improved commodi­ state. They were asked not to sign
ties and land prices, along with their names.
heavy federal farm subsidy pay­
Chart 1
ments, have helped many farm
The first three charts give the
operators to pay off bank debt and 1987-88 salary comparisons for the
# g e t back on their feet.
top three officers, divided as Chart
A further study of the total com­ 1A (CEOs), IB (2nd Officers), and
pleted questionnaires reveals that 1C (3rd Officers). These charts are
among banks with up to $50 million self-explanatory by reading the
in assets, 28.4% of the responding legend accompanying Chart 1A.
#banks report their CEOs will have Where spaces have been left blank,
“no increase” in base salary in 1988. it was felt the minimal number of an­

Federal Reserve Bank of St. Louis


Up to $10
$11 to $20
$21 to $30
$31 to $50
$51 to $70
$71 to $100
Over $100

swers in those categories would not
be meaningful so those figures and
averages were left out.
Columns 4 and 5, listing Esti­
mated Bonus and Other Income, in­
clude average amounts for each cate­
gory from only those questionnaires
that listed a Bonus or Other Income
figure or stated that none would be
paid. For greater accuracy, the bot­
tom line figures represent averages
for all replies tabulated in the col­
umns above them and are not just
the average of the averages shown in
the columns.
(Turn to page 17, please)
Relationship of Salaries
Among Top 3 Officers
Showing relatio nship of No. 2 O ffice r
salary to CEO salary. (E.G., 2nd O ffi­
cer salary in banks under $10 m illion
assets = 63.8% of CEO’s salary.)

Assets in

to CEO

Up to $10
$11 to $20
$21 to $30
$31 to $50
$51 to $70
$71 to $100
Over $100


Average =


Showing relatio nship of No. 3 O ffice r
salary to CEO and No. 2 salaries.

Assets in

to CEO

to #2

Up to $10
$11 to $20
$21 to $30
$31 to $50
$51 to $70
$71 to $100
Over $100



Average =



Northwestern Banker, January, 1988


Mergers and

• how to design the plan
• how to structure it

• how to negotiate it

Special Reading for
Directors, Management

Written especially for
T he N orthwestern B anker

President and CEO
Austin Associates
Toledo, Ohio
Department of Finance
College of Business Administration
The University of Toledo
Toledo, Ohio

Editor's Note: Dr. Austin has prepared a special presenta­
tion for our readers outlining the many components that go
into generating and executing a well-designed Merger and
Acquisition Plan. The process applies equally to community
banks that decide to join forces as it does to larger banks
making an acquisition. This presentation will benefit owner­
ship and management of the bank being sold, as well as the
acquiring bank, for both sides need to be keenly aware of the
intricacies that make up a fair and ideal Merger and Acquisi­
tion Plan.
Dr. Austin has segmented his presentation for our readers
into three parts for easier reading: How to Design the Plan,
Structuring the Transaction, and Negotiating the Deal.
Parts I and II were published in previous issues. Part III ap­
pears below.

Part III: How to Negotiate the Deal
bypassed by those bidding organizations who have
SEC disclosure requirements. If you are a bidding q
organization, your best strategy is to go to the Specific
Agreement rather than the Letter of Intent. If you are
gotiate the deal. I shall attempt in this particular arti­
the target bank, the Letter of Intent does not guaran­
cle to give you highlights of how you should negotiate
tee you the successful sale of your bank, so it should be
the deal, what parameters you should follow and what
avoided vis-a-vis a Specific Agreement to merge/affili- ^
constraints you and the selling organization are under
in attempting to negotiate the deal.
Specific Agreements to Merge/Acquire: These
In order to prepare the negotiation of the deal, you
are contractual, and often contain provi­
should have the following documents:
Proposal: Many people believe that you should sions if one party or the other breaches. Furthermore,
these often include lock up options, as well as warran- | |
have a letter of invitation to dance which you place on
ties and representations by the parties which bind
the desk of the target bank. This proposal is for all in­
them to fulfillment of the contractual agreement, such
tents and purposes worthless. If you plan to make an
as directors agreeing to vote their shares in favor of
offer for another bank, give them a Letter of Intent or
the transaction or even to a greater degree, directors
a Specific Agreement. The proposal is not worth any­
their shares to the buying organization. Uti- 0
thing and should be avoided at any cost. This does not
lization of the Specific Agreement also permits the bid­
force them legally to do anything whatsoever, and
ding organization and the target bank to complete all
often warns them of your intent.
Letter of Intent: This is a document which most aspects of the transaction contemplated, except for
regulatory approval and shareholder approval, thus
lawyers will tell you is not worth a cup of coffee. It
avoiding contractual and conceptual problems subse- H
does not bind the selling bank contractually, but can
be used to morally bind the selling institution through
The necessary financial information and documents
appropriate signing ceremonies and photographs.
Many successful bidding organizations utilize Letters
Financial statements of all parties concerned: The
of Intent, and other successful organizations skip the
financial statements of the target firm and its stock •
Letter of Intent entirely and go to the Specific Agree­
transactions if a stock deal is contemplated; the finanment to merge/affiliate. The Letter of Intent may be

he previous two articles have talked about how to
approach mergers and acquisitions and how to
structure the deal. This article talks about how to ne­
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis


“The exact format of how to negotiate or where to negotiate,
how long to negotiate, and the timing of negotiations, should
be spelled out clearly.”












cial statements of the bidding organization including
call reports, statements of income and dividends, 10K
reports (if applicable), and all other subsidiary
schedules. There is no need for personal financial
statements unless the bidding organization is in incor­
2. In-house review of examination reports: This is a
review of the target bank’s examination reports inhouse. Regulatory authorities will tell you that you
have no ability to access these reports. From a realistic
standpoint, if you do not access these reports prior to
making a bid, you are not doing your job as a bidding
organization. These reports are confidential, but
examination by competent legitimate bidders is con­
sidered to be sound business judgment on behalf of the
selling organization. An agreement of confidentiality
should be entered into to protect the examination report confidentiality from public disclosure.
3. Analysis of SEC filings and other regulatory fil­
ings: Analysis of all SEC filings of the target bank/
bank holding company (if applicable). If the bidding
corporation is an SEC registered bank holding company, the selling organization should examine the
lOKs and 8Ks of the bidding organization as well.
4. Analysis of annual reports and other financial
A chronological listing for the steps involved in put­
ting the deal together include:
1. Initial contact: This can be done from the CEO of
the bidding organization to the CEO of the target orga­
nization, but this often results in prolonged stalling
and many lunches with no fruitful results. I highly
recommend that the initial contact be a formalized Let­
ter of Intent sent to the board of directors of the target
organization at their homes, rather than at the bank,
so that all know that their duty of care is to be exercised from that moment on. This initial contact can
then be followed up by negotiations between the par­
2 . Set up the negotiating in groups: Groups should
be small, no larger than three per side, and utilize the best
individuals that you have on your boards of directors
and/or management to accomplish this purpose. These
individuals should be objective, intelligent, and work
toward the achievement of the objectives of the nego­
tiations. Select individuals who will have the time to
negotiate, rather than selecting people because of their
titles and/or previous status.
3. Negotiation framework: The exact format of how
to negotiate or where to negotiate, how long to negoti­
ate, and the timing of negotiations should be spelled
out clearly. This process should have a beginning and
end, and not be prolonged for more than one month. If
the process continues, the target organization will wal­
low in the water and never recover from this lack of
momentum. The bidding organization has the advantage of being able to do more than one bidding negotia­
tion at one time, while the target organization usually
Federal Reserve Bank of St. Louis

has a distinct disadvantage.
4. Negotiating the process itself.
5. Setting up a time schedule for accomplishing the
transaction: See Item #4 above. A prolonged negotia­
tion and/or “waltzing” will only be detrimental to both
the bidder and especially to the target organization.
6 . Utilizing professional assistance: The bidding
organization will probably have their own team of in­
side and outside professional assistance. The target
organization should quickly obtain outside legal coun­
sel, financial counsel and/or investment banking assis­
tance in order to protect itself. It only sells once, and it
should sell on the best possible terms in line with its
fiduciary responsibility.
7. Examining the appropriate documents and
records of each party before the proposal or the sign­
ing: If the target organization is worried that the bid­
ding organization will not buy the organization after it
has signed the Letter of Intent, then it should permit
an examination of the books and records of the target
organization before signing anything. The last thing
that the target organization wants is disclosure and
then failure to consummate the transaction. If the
bidding organization is concerned about the quality of
the target organization, it should inspect the books
and records prior to signing the Letter of Intent and/or
Specific Agreement to merge/acquire in order to pro­
tect its interest and its reputation as a successful bid­
der. This aspect can only be analyzed based upon a
case by case review of the statistics of the organiza­
tions involved.
Before signing a letter of intent or a specific agree­
ment to merge/acquire, the following must be clearly
1. Make sure that you know the structure of the
transaction and the impact upon your bank or bank
holding company at the time of consummation. Is it a
merger? Is it an acquisition? Will you end up a bank or
a branch? Make sure that you are in agreement as to
how you will end up.
2. Use appropriate timing: Bidders and the target
should set forth a time schedule for signing the Letter
of Intent and for setting up the entire transaction to
the best that they can control it. This time schedule
should be appropriate for the workload to be done from
both sides, but it should be done efficiently and as
quickly as possible.
3. Move along quickly and with accuracy; have as lit­
tle time in between steps as possible.
A preplanning timing schedule is paramount and
should consider:
Set up a time schedule: This should be mutually
determined by the target corporation and the bidding
corporation. It may sound dumb to have this on the
outline, but you would be surprised how many mergers
or acquisitions are attempted to be handled efficiently
without a timing schedule on behalf of either party.
The setting up of a time schedule really assists all parNorthwestern Banker, January, 1988


ties in determining if the transaction is to be done and
who the responsible parties are.
2 . Flexibility of the time schedule: The timing sche­
dule must be flexible to take into consideration invest­
ment and/or business problems that may arise during
the course of the application, proxy material prepara­
tion, SEC registration or shareholder vote process.
You should always build in some flexibility to the tim­
ing schedule, but don’t let it bend so much that it
3. Following of the time schedule as much as pos­
sible: This seems self-evident, but this is where the
breakdown always takes place, and there should be one
person responsible for monitoring the time schedule
and making sure that all parties responsible for their
work are in accordance with the time schedule.
4. Consideration of administrative hang-ups and
problems arising from data insufficiency and/or incon­
sistencies; and
5. Making sure that all parties realize what the time
schedule is.

“Make sure the timing of the trans­
action is efficient and is followed as
closely as possible by all parties.’’
The overall general items to be negotiated in a mer­
ger acquisition include:
1. Specific price: The price may be different if it is
fixed in cash or fluctuates in stock — experts can assist
you in determining when is the price that you want.
2 . Structure of pri mg: This means are you going to
take cash, debt securities, preferred stock or common
stock? Are you going to get a combination of same? Do
you know what you are getting, and is it worthwhile?
You need to make sure that you understand all of these
prior to signing the Letter of Intent or Specific Agree­
3. Specific structure: Will you be a branch or a bank?
Will you be a holding company affiliate or will your
people disappear into a bank? You must know your
structure in order to determine whether your bank will
disappear or not. If this is important to you, make sure
that you bargain for it at the very outset.
4. Organization chart of resultant bank/BHC.
5. Timing of the transaction: You bargain for this
based upon whether you want to close quickly or slow
down the close for tax reasons or other appropriate
business purposes.
6 . Head office location: Sometimes this gets sticky,
since neither group wants to give up their head office.
You might want to pick a neutral site, such as a branch
or administrative building.
7. Board of Directors of resulting organizations: The
bidding corporation should allow target corporations
to have a representation on the board, based upon the
relative size of the organizations. Negotiate for inclu­
sion on the board of directors, but not necessarily
named individuals. It is better to be represented rather
than not at all, assuming they don’t like the current
directors of the target organization.
8 . Selection of the name for resultant organization.
Other considerations include:
1. Operational items;

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

2. Correspondent bank relationships;
3. “Back-Room” operations/services;
4. Banking hours;
5. Personnel matters;
6 . Consumer/commercial loan issues;
7. Trust services offered by resultant organization;
8 . Accounting/internal control procedures;
9. A fixed asset analysis; and,
10. Other miscellaneous issues such as legal counsel
and outside auditing firm selection.
Items to consider in regard to publicity and/or disclosure of the agreement:
1. The letter of intent;
2 . Specific agreement to acquire and/or merge;
3. Any requirements for disclosure; and,
4. Work out the publicity, press releases, and shareholders’ material together.
The appropriate steps after the announcement of the
transaction include:
1. Preparation of the applications;
2. Submission of applications;
3. Disclosure to shareholders/other parties;
4. Preparation of the proxy materials;
5. Any special shareholders’ meeting(s) necessary;
6 . The SEC registrations; and,
7. Blue Sky registration notices, if necessary.
8 . The necessary steps upon consummation of the
proposed transaction are:
(a) Selection of the appropriate day;
(b) Making sure all the forms are ready;
(c) Liquidation/elimination by operation of law of
one party or more;
(d) Tying the loose ends together;
(e) Press releases and public relations on consumma­
tion of the transaction; and finally,
9. The problem of dissenters: This is a subject unto
itself. However, do not panic if there are dissenters.
They are permitted by law to dissent and they have
their rights. Utilize your legal counsel to assist you,
bargain before you have to go through the approved
court and/or Comptrollers dissenters’ appraisal process and consider the dissenters’ process just another
cost of doing business. The best thing to do is to keep
the dissenters’ process nonemotional, just financial,
and understand that many times the dissenters find it
the easiest way to get their money out of their bank/
bank holding company stock. The dissenters’ process
is significant to them, but unless you have 22 % that
have dissented, it is usually very insignificant to you.
This article has talked about how to negotiate a merger/acquisition transaction and the steps and proce­
dures you must take into consideration in performing
an efficient merger. Several items should be restressed
for your remembrance:
1. Make sure that the timing of the transaction is efficient and is followed as closely as possible by all par­
ties. Falling way behind will bring you nothing but
grief from the shareholders involved;
2. Use professional legal counsel, outside financial
consultants, investment bankers, and external auditing firms to assist the transaction. They will be work­
ing for the bidding organization and if you are a target
(Turn to page 17, please)














CONTINUED business grow th resulted in the co n stru ctio n of th is new high-tech headquar­
ters building in Topeka for Kansas Bankers Surety Company.

Cover Story:

New Building in Topeka Is Tribute to
• Leadership of Kansas Bankers Surety
HEN most insurance compa­
nies were withdrawing from
underwriting of
^ Bankers Blanket
Bonds in the ear­
ly to m iddle
1980s, one insur­
ance firm that
0 had been com­
m itted to the
bank bond busi­
ness for 70 years
stood its ground.
q It perceived corDM- TOWl-E
rectly the retreat by competitors as
an opportunity. As a result, that
firm—Kansas Bankers Surety Com­
pany—has expanded its book of
• business from three states to nine
and now serves 16% of the banks in
the United States. This growth in
volume, as well as expertise in hightech servicing of its business, led
• directly to the need for the new and
larger headquarters building that
KBS now occupies in downtown
Topeka to keep pace with its rapid
The success story of how Kansas
Bankers Surety rose to the chal­
lenge facing the banking industry it
serves is a tribute to the innovative
and creative leadership furnished by
•P resid en t Donald M. Towle and his
staff of bonding professionals. A
Federal Reserve Bank of St. Louis

review of the past several years
shows how Kansas Bankers Surety
stepped in to underwrite the Blan­
ket Bond business abandoned by the
old-line companies.
When the farm economy collapsed
in the mid 1980’s and bank failures
increased from ten per year to over
one hundred per year, most bonding
companies wanted nothing to do
with farm banks and community
banks in farming states.
Those few companies that con­
tinued to provide bonding for farm
banks increased their underwriting
requirements and premiums beyond
the reach of many banks in farming
communities. One bonding company
even required banks to pay a $5,000
annual inspection fee and did not
even guarantee that bonding would
be provided after the inspection was
completed and the fee paid.
The Kansas Bankers Surety Com­
pany stepped into the breach caused
by the other bonding companies’
withdrawal from bonding banks in
farming states. The company, which
is owned by bankers and directed by
bankers, recognized that these were
trying times for everyone. But, more
importantly, it recognized that
bankers were not more dishonest
and did not have more crimes com­
mitted against their banks just

because the farm economy was in a
deep depression.
The Kansas Bankers Surety Com­
pany, which was chartered by Kan­
sas bankers in 1909, had expanded
into Missouri and Nebraska by
1981. By 1985, the company was
providing bonding for over 93 % of
the Kansas banks, 73% of the Neb­
raska banks, 66 % of the Missouri
banks, and 25% of the Wisconsin
During 1985 the company began
providing bonding for banks in Colo­
rado, Oklahoma, and Wyoming. The
following year it began bonding
banks in Iowa and South Dakota.
By November, 1987, KBS was pro­
viding bonding for over 16% of the
banks in the United States, even
though it was operating in only nine
mid-western states.
The confidence and trust in the
bankers of the economically de­
pressed midwest during a time when
no one wanted their business paid
well for the company. In August,
1987, the company moved into its
new completely automated head­
quarters building in downtown
Topeka. It is so automated that at
the touch of a button, consolidated
call reports for the last five years are
available in seconds on one compu­
ter monitor for any bank in the ninestate region. That automation and
an outstanding staff provide oneday service for premium quotations
and pay claims on the same day that
the company receives the informa­
tion necessary to pay the claim.
The new headquarters building in
Topeka reflects the evidence that
the Kansas Bankers Surety Com­
pany is a real success story of the
banking industry in the midwest. It
is truly a unique company because
bankers chartered it, own it and
serve on its board of directors as it
continues to serve their banking in­

Joins Heller Financial
Heller Financial Inc., Chicago, an­
nounces that David K. Zwiener, has
been named senior vice president of
the company, as well as for Heller
Overseas Corporation and the
parent Heller International Corpora­
tion. He is based in Chicago, with re­
sponsibility for all treasury and
long-term activities. He was pre­
viously with Kimberly-Clark Corpo­
ration, Ford Motor Company and
Mellon Bank, N.A.
Northwestern Banker, January, 1988



Written especially for
T he N orthwestern B anker

Attorney at Law
Wolfe, Anderson & Beverage
Lincoln, Nebr.
Editor’s Note: Because the author has had extensive
experience working with Nebraska banks as both an
attorney and bank director, he was invited to share his
expertise with our readers on this important subject.
He was asked to give a thorough overview of this criti­
cal matter, so his comments are presented in two parts.
The first appeared last month, while the concluding
portion appears below.

Part II
Fiduciary D uty
Perhaps the most alarming possibility for banks to
consider involves allegations that the bank breached
its fiduciary duty to the borrower. Generally speaking,
the relationship between a bank and its borrower,
standing alone, is not a fiduciary relationship. Such a
relationship involves a special trust or confidence, and
normally the practice of lending money to someone
simply falls outside of the confines of this definition.
Some states do not recognize an independent cause
for breach of fiduciary duty but do authorize
Banker, January, 1988
Reserve Bank
of St. Louis

actions for breach of trust or confidential relationship .6
The importance of identifying the true nature of the €)
relationship is found in the difference between the
duties of the parties if a fiduciary relationship exists
and those same duties if the relationship is something
If you are found to be “ju st” a lender your duty is to
deal with the borrower in good faith, to be honest and
to not misrepresent facts. If, on the other hand, you are
found to be a lender who also falls into the category of
a fiduciary, you have an additional duty to disclose all ^
facts or volunteer certain information. The burden of
proof may shift to you as the lender, to prove that your
fiduciary duty was not breached and, further, to prove
that: (1) the bank acted in good faith; (2) gave impartial
advice; (3) the borrower freely entered into the transac-||
tion, without any duress on the part of the banker; and
(4) it was a fair deal.
The lender who is found to be in a fiduciary relation­
ship with a borrower does not have the freedom to act
in the best interests of the lender at all times. A fidu-®
ciary is required to act in the best interest of the benefi-

# ciary, in this case the borrower. Honest judgment and
advice are minimal requirements, and any potential
conflict of interest must clearly be disclosed and pro­
bably avoided.
A lender is normally entitled to do many things in
# the ordinary course of business which would not in­
volve any misconduct. Those same actions as a fidu­
ciary may subject the lender to liability for damages.
For example, any situation in which the borrower
alleges that the bank exercised dominant influence
# over him, or that the borrower placed great stock in the
banker’s skill and integrity, or that the borrower re­
ceived advice from the banker and relied on that ad­
vice, opens up the door to a claim of breach of fiduciary
duty. The key problem is that the burden of proving
® you are a “good guy,’’ that the deal was fair, armslength and done in good faith falls upon the bank, not
the borrower.7
Some courts have begun to characterize the relation­
ship of lender and borrower at least as quasi-fiduciary
® in nature, resulting in a higher degree of care which is
imposed on the bank in all of its dealings with the bor­
rower. It is one of the problem areas that a bank en­
counters if it gets too closely involved with the
debtor’s business. And advertising themes which sug® gest that the bank is “a partner” with the borrower
provide some evidence that the bank is intentionally
trying to persuade its customers that the relationship
is more than simply the act of lending money by one
^ party to another.
C ontrol and D u ress
The issue of control is usually found when dealing
with a deteriorating credit which shows increased risk
® of repayment. Weak credits are the kinds of loans upon
which examiners normally focus and ultimately classi­
fy in some manner. Such an attitude on the part of ex­
aminers often times causes bankers some distress and,
_ in an effort to relieve that distress, some bankers may
w be tempted to overreact.
Any type of excessive control over management or
interference in the operations of the borrower’s busi­
ness may subject the lender to liability for any resultH ing damage, including financial loss, which may be suf­
fered by the borrower. Perhaps as significantly, any
such action may subject the lender to liability for some
of the borrower’s third-party obligations of which the
lender may not have even been aware.
^ The Farah Manufacturing case is a horror story
which shows what not to do. In that case, the lenders,
literally, tried to run the business and, in the process,
ran it into the ground. The principals regained control,
operated the company and sued the lenders. Damages
^ in the amount of $18,000,000 were awarded by the
jury, based upon proof that the lenders committed
fraud, were guilty of duress and tried to control the
borrower’s operations .8
No Clear-Cut Definitions
^ There are really no clear-cut definitions of what con­
stitutes control, duress or interference. It should be
sufficient for banks simply to be aware that any efforts
to remain on top of a loan are potential pitfalls. Writ­
ten documentation between the bank and the borrower
‘must be reviewed carefully by the bank and its counsel
in order
to avoid potential trouble spots. Any restric­
Federal Reserve Bank of St. Louis

tive covenants included in the loan agreement, for ex­
ample, can cause problems if they are inartfully drawn.
If those restrictive covenants place the bank in the
position of being able to exert dominance or control, or
in the position of making decisions for the borrower in
terms of the borrower’s operation, potential liability
Any attempt to “suggest” or other wide control
management directives or other policies and personnel
is normally another area which is certainly of interest
and concern to the lender, but which may expose the
bank to potential problems. Similarly, and perhaps
more significantly, any type of financial controls exer­
cised by the bank which determine who gets paid and
who doesn’t may cause problems for the bank. Ob­
viously, the bank’s primary concern is to have its
loan(s) repaid. Provisions in the loan agreement must
be carefully worded so that it is the borrower's obliga­
tion to make the appropriate decisions.
Any type of economic coercion can be construed by a
jury as evidence of control. Bankers have been known
in the past to suggest that notes will be called, or no
further advances will be made, unless certain action is
taken by the borrower. If that action can be tied direct­
ly to damage to the borrower, the bank has opened
itself up to a claim of control and duress.
Obviously, any type of active participation in the
day-to-day operations of the borrower’s enterprise, or
any power to vote stock or make any other type of
management decisions, are areas which are ripe for
making such a claim as well. And acceleration clauses
which are standard provisions in most loan agree­
ments present some dangers for bankers. Courts are
simply not going to permit them to be used arbitrarily
or solely for the commercial advantage of the creditor.
If the facts make their use unjust or oppressive, there
is an incredible danger to which the bank is exposed.
Oral C ontract
Simply stated, an allegation involving an oral con­
tract means that the borrower is claiming he had a
separate deal with the lender. Regardless of what the
written documents say, the banker assured the bor­
rower in some ways that it was the oral agreement
which was important, not the written documents.
Most bankers tend to disbelieve statements that a
borrower may be successful in alleging and proving an
oral contract which nullifies the written documents.
Admittedly, oral contracts are hard to prove, but if the
borrower can get to the jury and let them decide the
6 See, e.g., Vogt v. Town & Country Realty, 194 Neb.
308, 231 N. W.2d 496 (1975); Linge u. Ralston Purina
Co., 293 N. W.2d 191 (la. 1980).
7 See, e.g., Kurth v. Van Horn 380 N. W.2d 693 (la.
1986), setting forth that a separate law claim for breach
of fiduciary duty may exist. See also restatement
(Second) of Torts §874: one standing in a fiduciary rela­
tion with another is subject to liability to the other for
harm resulting from a breach of duty imposed by the
relation. Actual dishonesty and intent to deceive are
not essential elements of such a claim.
8State National Bank of El Paso v. Farah Manufactur­
ing Co. 678 S. W.2d 661 (Tex. App. 1984).
Northwestern Banker, January, 1988

issue, the chances of the borrower’s success improve
The Yankton PC A case9 is one which demonstrates
what can happen. A simple replevin action seemed to
be in order when the debtors defaulted on some
$500,000 in loans. The documents made it plain that
the PCA should “win.” But the Nebraska Supreme
Court said the borrowers were entitled to a jury trial
on the issue of whether there had been a separate, dif­
ferent contract which included an agreement to ad­
vance additional funds for future operations. The bor­
rowers claimed lost profits and other damages in ex­
cess of the debts they owed to the PCA.
The point is, nothing is absolute when it comes to
determining what the agreement really is between the
W aiver/Equitable E stop p el
The theories outlined earlier in this article are gen­
erally used offensively. The theories of waiver and
equitable estoppel are generally defensive and are used
by borrowers to prevent the bank from enforcing obli­
gations because the lender has acted in a way which is
not fair. Based on either actions, or words, or both, the
lender has forced the borrower into a certain position
with respect to a loan obligation and has induced the
borrower to act in a certain specific way which makes
it unfair to permit the lender to collect on the loan.
The claim of equitable estoppel or waiver may take a
form which is similar to other theories. For example,
the borrower may claim that the lender made false rep­
resentations and concealed facts which induced the
borrower to act in certain ways. Such allegations are
similar to claims of fraudulent or negligent misrepre­
sentation, and even breach of fiduciary duty. If the
court believes the evidence that the lender acted in a
“bad way” it may not be able to enforce its written
Normally, these theories are utilized in every law­
suit filed by a bank against its borrower. Often times
they are successful.
Credit Inquiries
Banks have an increasing exposure to potential
problems in situations involving a credit check by a
third-party on one of the bank’s present or former cus­
tomers. The allegations against the bank, by other
banks, retailers, wholesalers, potential investors and
others, may take the form of fraudulent or negligent
misrepresentation, breach of good faith and breach of a
confidential relationship. Failure to use normal bank­
ing practices or standards may very well result in a
claim that a bank breached its duty to an inquirer
about a particular borrower or his operation.
Any response to a credit inquiry must be accurate
and complete. But it is important to understand that
not telling a lie is not necessarily the same as telling
the truth. On any credit inquiry, you should always
verify the source of the inquiry and the purpose for the
call. Facts should be verified before any information is
9 Yankton Production Credit Association v. Larson 219
Neb. 610, 365 N.W.2d 430 (1985). See also, National
Farmers Organization v. Kingsley Bank 731 F.2d 1464
Cir. 1984).
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

given, and subjective issues should be avoided at all
Unless you are actually in the business of fortune
telling, don’t try to predict the future. And if you do
not know anything about the particular borrower (or
some other bank officer knows more than you do) route
the inquiry to the appropriate person.
Above all, document any credit inquiry of any kind
in the borrower’s file. It may not seem important at the
time, but it will pay dividends three or four years later
if a lawsuit is ever filed against you or the bank.
C onclusion
You may have noticed that many of the theories on
which lender liability claims are based have a number ^
of similarities. While there is no one solution to all of
the problems which the various theories present, there
are some general approaches which you can take to
minimize potential exposure.
One of the best things you can do is to use a loan pro- ^
cessing software package like BankLaw^M which not
only provides you with adequate documentation and
checklists, but makes sure it is in compliance with
state and federal banking laws. In addition, your bank
should have a legal audit by an outside firm to point £
out potential problems which already exist.
As a practical matter, here are some of the basic pro­
cedures which, if followed, should reduce the element
of risk for you and your bank if one of these lawsuits
should occur:
1. Don’t do anything precipitously. Even though
your documents permit you to call a loan if you “deem
yourself insecure,” don’t do it without plenty of notice
to your borrower. Similarly, if you have had a practice
in the past of honoring overdrafts, don’t change course f
quickly, without notice to the borrower.
2. If you make a commitment for financing, follow
through with it. Make sure your commitment letter
details the precise terms of the parameters for the com­
mitment and if there are any caveats, make sure they #
are fully and completely disclosed.
3. Document your loan files as much as possible. You
should remember that a jury needs to understand how
the bank got from point A to point B with its borrower.
Three to four years after the fact sometimes makes it #
difficult to recall each and every step along the way. If
your files contain extensive comments and summaries
of conversations, you will not only be helping yourself
with examiners but you will also be clarifying the his­
tory of your bank’s relationship with the borrower in #
Loan processing software, like BankLaw 1 , will
enable you to maintain credit files which are clean, de­
tailed and accurate.
4. Remember that your course of conduct can neutra- •
lize anything you may have in your loan file or in your
documents. Your loan policy should not only be in
place for the bank but should be followed. Any devia­
tion from existing policy should be specifically noted,
together with the reasons for such deviation. One o f#
the best devices which counsel can use is to find in­
stances where the bank’s policies are being totally ig­
nored by management. It has a significant impact on
the bank’s credibility.
5. Keep the lines of communication with your bor-“
rower open and honest at all times. It is all right to

• counsel your borrowers, but you must never allow the
bank to be put in the position of making decisions for
6. Don’t threaten or coerce your borrower in an ef­
fort to get him or her to do your bidding. If the loan is
• in default, for example, either call it or don’t call it. But
do not keep threatening to call it to “encourage” the
borrower to take a certain course of action.
7. If you are going to change the rules of any rela­
tionship with your borrowers, make sure you commu• nicate that change well in advance of its actual imple­
mentation. If, for example, you have neglected events
of default in the past, you should be particularly care­
ful about seizing upon such events to enforce the loan
8. Sometimes oral agreements are inevitable. If you
make them, you must remember to follow up imme­
diately in writing with the borrower so that both of you
understand what the oral arrangement is. Unless there
is some evidence to that effect, it boils down to his
^ word against yours.
9. It goes without saying that you should be honest
in your dealings with the borrower at all times.
10. Finally, don’t be reluctant to check with your
lawyer in any loan situation. I know most bankers hate
• to pay lawyers, and incur what they may deem to be
unnecessary legal expense. But it is much easier to
take corrective action before a relationship blows up

than afterwards. Bankers have enough problems these
days dealing with increasing competition and the im­
plementation of deregulation. By following some of
these guidelines you may be able to ease the daily pres­
sures you are facing.
(Continued from page 12)
organization, you need all the help you can get for the
one time you decide to sell.
Never work out a negotiation with only one bid­
der. You may breach your fiduciary duty as directors
of a target bank if you deal with only one bidder, unless
you are absolutely sure that the price and the terms
you receive for your shareholders are the best from the
one individual bidder.
The entire premise of this article has been based
upon negotiating with the winning bidder, not the en­
tire merger/acquisition sale process. This author very
seldom recommends that a single seller deal with a
single buyer and the breach of fiduciary duty is the ma­
jor reason for not doing so. Please keep in mind that all
bidders want to deal with you one on one, but from the
selling standpoint, you want to make sure that you
have the best possible terms for the one time you sell
out. Therefore, this entire article has been based upon
you accepting a successful bid from a bidder and then
discussing how to negotiate thereafter.

(Continued from page 9 )

show a narrowing of the gaps among CEO’s salary has ranged between
the first three levels of officers, 68 % and 71%. The 3rd Officer’s
which ties in with the fact that sec­ salary in relation to the CEO was in
ond and third officers, as noted in a range from 52.3% to 56.7%, and to
Chart 2
Charts IB and 1C are receiving the 2nd Officer was in a range from
Chart 2 flows from Question 1 re­ higher percentage increases in base 74% (1979) to 82.6% (1983). Conse­
sponses and shows the percentages salary than the CEOs.
quently, 3rd Officers appear to have
of responding banks that show “no
During the past 10 years, the gained more ground in the past
increase” in base salary for 1988. N orthwestern B anker Salary Sur­ decade, probably reflecting their
The percentages from the salary veys show that the relationship of growing responsibilities with the
•su rv ey of a year ago are included for the 2nd Officer’s salary to the growth in bank size.
comparison. This chart also includes
a breakdown by asset size of the “no
increase” responses for the top three
officer categories.
Chart 3
Chart 3 shows the percentage in­
creases in base salary scheduled for
Other Officers and for Non-Officer
^staff. These average increases are
misted by asset size for both categor­
ies. These increases average 4.28%
for Other and 4.23% for Non-Officer
Staff. In the salary survey of a year
Through Professional Consulting
^ago, Other Officers were given an
^average increase of 3.25% and Non• Organizational Reviews
Officer Staff people were given an
• Profit Planning
increase of 3.8%.
• Asset/Liability Management
Chart 4
• Loan Administration Analysis
This chart shows the relation­
• Other Consulting Services
ship of salaries between the 2nd Of­
—Ronald L. George, President
ficer and CEO, as well as the 3rd Of­
ficer with the CEO and 2nd Officer.
For comparison purposes the overall
_ _ ^ M^ Midwest Management Consultants
•averages from the survey of a year
9140 West Dodge Road, Suite 270 Omaha, Nebraska 68114 (402) 391-1344
ago are included. Those averages

Superior Performance Banking
Federal Reserve Bank of St. Louis

Northwestein Banker, January, 1988

Norwest Business Trends Speakers
Take Optimistic View of ’88 Economy
RECORD turnout of more than
700 bankers and spouses at­
tended the 29th annual Executive
Management Conference hosted by
Norwest Bank Minneapolis and Nor­
west Corporation at the Hyatt Re­
gency Minneapolis early last month.
Guests were welcomed at the
opening session by John Sampson,
senior vice president of the financial
institutions division who described
the “momentum” achieved by his
division in the correspondent bank
business. In a similar vein, James R.
Campbell, president and CEO of
Norwest Bank Minneapolis, said at
the banquet that evening, “We’re
committed, we like this business,
and we want to grow in it.”
Norwest Corporation Chairman
Lloyd Johnson added his welcome to
guests at the banquet and noted
that “there are more than 700 peo­
ple in attendance this year, the larg­
est crowd ever to attend this annual
Conference.” He added that Nor­
west is “the largest correspondent

bank in the area with 1100 to 1200
correspondents. ’’
Mr. Johnson was joined at the
platform at his request by Richard
Kovacevich, executive vice presi­
dent of Norwest Corporation, Mr.
Campbell, Mr. Sampson, Vice Presi­
dent Richard Erickson who was
again in charge of planning arrange­
ments, and several others to lead the
entire banquet gathering in singing
a traditional Christmas song.
When the program started just
after 1:15 p.m., Mr. Sampson intro­
duced Bernard Kalb as the opening
speaker. Mr. Kalb is a former assis­
tant secretary of state for public af­
fairs. He was the State Depart­
ment’s spokesman for two years un­
til resigning in 1986 to return to his
original career as a journalist. Mr.
Kalb has served in overseas and do­
mestic posts with the public media
for more than a quarter of a century.
Mr. Kalb spoke in depth about the
visit of Russian General Secretary«
Mikhail Gorbachev to Washington,
D.C., which was just concluding at
the time the Conference was held.
He said “the main thrust for his

visit is the strangling condition of
the Russian economy. To move the
country he must loosen the screws,
do what needs to be done to transfer
the capital assets of his nation from
defense production into the indus­
trial and social productive stream.”
He also stated, “ Secretary Gorba­
chev is meeting today with Ameri­
can businessmen, looking for Ameri­
can technology and know-how. He
wants trade, investment and tech­
nologies. These are the real prizes he
seeks here—not the INF Treaty.”
He described the public relations
blitz staged by the Russians and
Mr. Gorbachev himself in advance
of and during the Conference, to win
over the American press and people.
He said the General Secretary came
to this nation “with three negative
pieces of luggage: 1. He was hesitant
on the summit. 2. He failed to reveal
his goals for the nation on the 75th
anniversary of the revolution. 3. The
firing of Yeltsen, a strong and popu­
lar party member.”
Popular Dr. Sung Won Sohn, se­
nior economist for Norwest Corpora­
tion, gave his report on the “Eco­
nomy of Today” as the second
speaker. Much time was spent on
events surrounding the October 19
“Black Monday” stock market
crash of more than 500 points. In
one of the many interesting charts
he displayed, Dr. Sung showed that
since 1950 there have been five
downturns in the Dow-Jones aver­
age, but no recession. Consequently,
no one can predict with certitude
which direction the economy will go
in coming months. One reason, he
noted, from another chart, is the dis­
tribution of stock ownership, with a
high majority being held by relative­
ly few people and institutions. An ef-

PARTICIPANTS in the 23rd Annual Norwest Executive M anagem ent Conference included, left to right: Lloyd Johnson, chmn. & CEO, and
Dick Kovacevich, exec, v.p., Norwest C orporation; Jim Campbell, pres., N orw est Bank M inneapolis; Robert L. Rasmussen, v.p. & mgr., com ­
m unity bkg. div., Norwest Bank M inneapolis; guest speaker Bernard Kalb, form er Asst. Secy, of State, and John P. Sampson, sr. v.p., Nor­
west Bank M inneapolis.
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis


LEFT— Norwest C orporation C hief Econom ist Dr. Sung Won Sohn gives his econom ic report. CENTER— Sen. Rudy Boschwitz of M inne­
sota speaks to the crow d via sa te llite on a big screen in the ballroom . RIGHT— F ollow ing the Senator on the screen Mark W. Olson,
immed. past pres, of ABA and pres. & CEO of S ecurity State Bank of Fergus Falls, Minn.

feet on long bond rates can be
brought about by a slowdown or re­
cession. Affecting this tug of war for
bonds, he said, are two things—
^ whether a fear of recession develops
among the public, and dollar depre­
ciation. If the two come together, he
noted, there is a loss of confidence.
Later in the afternoon, Minnesota
0 Senator Rudy Boschwitz was
brought to the ballroom's large
screen by satellite from Washing­
ton, D.C. This was a repeat perfor­
mance for him at the Norwest Con0 ference. Sen. Boschwitz was present
in the East Room of the White
House for the signing of the INF
Treaty. He said “we are to be briefed
(in the Senate) tomorrow morning on
# the Treaty and I think it is one we
should support." He stressed that
this is “our first nuclear arms agree­
ment to reduce weaponry. Two
launch groups of weapons will be
# disarmed. Because the entire group
of weapons is to go, it will be easier
to determine if the Treaty is being
kept because this type of weapon
can be identified, so, if we see any of
# them then it’s a violation. From this
point, we can hopefully move to
other areas of arms elimination." He
noted however, there is no way of
imposing penalties if the treaty is
Sen. Boschwitz was on the confer­
ence committee to iron out SenateHouse differences on the Farm
Credit System rescue bills. He en•d o rsed the secondary market as a
part of those bills. Referring to the
Federal Reserve Bank of St. Louis

budget, he found it “disappoint­
ing—I am disappointed in the Presi­
dent and in the Congress." He indi­
cated he favors an across-the-board
freeze in expenditures without a tax
increase. He pointed out that when
Washington officials and observers
talk about budget cuts in relation to
“ baseline" spending, they are
actually referring only to reductions
in the increased level of spending.
During a question session, Sen.
Boschwitz said President Reagan
“did not give away the store” in the
INF Treaty, but added, “ I feel the
President did not give the required
leadership on budget negotiations."
He thinks the President should have
line item veto, but also stated “it
won’t happen."
Mark Olson, immediate past pres­
ident of the American Bankers As­
sociation and president of Security
State Bank of Fergus Falls, Minn.,
followed on the satellite screen from
Washington. He urged all bankers
to continue pressuring their Con­
gressmen to lift the moratorium im­
posed on bank powers when it ex­
pires March 1, 1988. He also dis­
cussed hearings then currently
being held on the Proxmire-Garn bill
to repeal two sections of Glass-Steagall and permit banks to exercise
limited securities powers. Two other
bills also in the hopper were dis­
cussed briefly by Mr. Olson. He
praised the unity with which bank­
ers are going to Congress in the cur­
rent campaign to do away with the

After Mr. Kalb’s speech and that
of Dr. Sung, one-hour breaks were
taken to allow visiting bankers to at­
tend any one of five break-out ses­
sions. These covered such topics as
“Valuing Midwestern Banks in To­
day’s Market," which drew an over­
flow crowd of 150 the first session,
and another large crowd for its sec­
ond presentation. Taking part were
John Crumrine, principal, Norwest
Corporate Finance Department, Les
Biller, executive vice president, Nor­
west Corporation, and Bob Miller,
partner, McGladrey, Hendrickson &
Pullen CPA firm, Minneapolis.
“Investment Strategies for 1988"
was handled by Charles White, se­
nior vice president, Norwest Cor­
“Til Death Do Us Part—Planning
for Success in a Family-Owned
Bank" was the topic addressed by
Thomas L. Hubler and Stephen B.
Swartz, consultants with Hubler
Swartz and Associates, Inc., Min­
Robert E. Coates, an IBM finan­
cial services industry consultant,
discussed the “Effect of Technology
of Banking in the ’90s."
The fifth session was “Buying
Banks Through Employee Stock
Ownership Plans," conducted by
Dennis A. Bowman, partner of Bow­
man and London, Ltd.
The evening banquet was con­
cluded by another superb perfor­
mance by The Golden Strings, the
violinists who have become a Min­
neapolis institution.
Northwestern Banker, January, 1988


Norwest Corporation has an­
nounced that Jon R. Campbell has
been named regional manager for 11
banks in the Twin Cities metropoli­
tan area. He succeeds John C. Nel­
son, who has been named regional
president for Norwest banks in
Iowa. It was also announced that
John Stumpf will succeed Mr.
Campbell as chief lending officer
while continuing as senior vice presi­
dent and head of dealer finance for
Norwest banks.



Mr. Campbell was named chief
lending officer for Minnesota, a new
position in June of 1987. He pre­
viously was senior regional credit of­
ficer for Twin Cities retail banking.
He began his banking career at
Norwest Bank Omaha in 1977.
Mr. Stumpf joined Norwest at
Norwest Bank East St. Paul in 1982
as chief credit officer.



First Bank System, Inc. has an­
nounced that it has entered into an
agreement with The Marine Cor­
poration, Milwaukee, to acquire
Marine’s three banking offices in
Minnesota pending regulatory ap­
proval. The purchase price is $40
million. The Marine Bank in Bloom­
ington and its two branches would
become offices of FBS’s lead bank in
Earlier this year, The Marine Cor­
poration entered into a merger
agreement with Banc One Corpora­
of Columbus, Oh. Following
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

bus, Oh., and Electronic Data Sys- ®
terns, Inc., a subsidiary of General
Motors Corp., based in Dallas. Com­
pletion is expected to take a mini­
mum of three years.
Mr. Sikkink has been manager of •
Norwest Technical Services Sales
and Marketing since August of
1987. He previously was head of
Norwest Electronic Delivery Services. He joined Norwest in 1962 at ®
Norwest Bank Des Moines.

discussions with the staff of the
Federal Reserve Board, Marine an­
nounced on November 20 that it
would divest the Marine Bank in
Bloomington concurrent with its
merger with Banc One. Current
banking laws do not permit owner­
ship of Minnesota banks by Ohio
bank holding companies.
The agreement to acquire Marine
Bank in Bloomington is contingent
on Banc One Corporation’s closure
of its acquisition of The Marine Cor­
poration. If the Federal Reserve
Board permits the Marine/Banc One
merger to be consummated without
divestiture of Marine Bank in
Bloomington, Marine may also ter­
minate the agreement.
Marine has two locations in the ci­
ty of Bloomington and one in Apple
Valley, both southern suburbs of
* * *

American National Bank of St.
Paul has announced several staff £
Lynn G. Lindsay has been pro­
moted to vice president/manager—
international. Mr. Lindsay joined
American in 1985 as an assistant f
vice president in that department.
Prior to that, he held a variety of
positions in the international field
for eight years.

Norwest Corporation has named
John A. Sikkink senior vice presi­
dent and man­
ager of a project
developing an
automated data,
transaction and
information sys­
tem for large fi­
nancial institu­
Mr. Sikkink is
manager of Nor­
west Technical
Services Sales and Marketing, a
Norwest subsidiary that provides
support for automatic teller machine
networks, cash letter sales and data
processing services for banks and
other financial institutions. In his
new position he succeeds Jerry
Hayes, who has accepted a position
outside Norwest.
The development project, called
“System for the 90s,” is a joint ven­
ture of Bank One, based in Colum­

Kathleen A. Kelley has been ad­
vanced to assistant vice presidentcommercial. She started at the bank
as a credit analyst in that depart- #
ment in 1983.
Jennifer L. Livings has been pro­
moted to assistant vice presidenthuman resources. She started at
American as a personnel clerk in #
Joseph J. Zmyslo, with the bank
since 1981, was promoted to data
processing officer.
American National has also pro- •
moted two officers in the aircraft/




When you’ve put on
the mileage,
you’ve got
the experience.


king fcryou




;• :



folks in your bank. They have
prove it. And they have the e
comes from over 200 comb
the banking business. (That1
You’ve made a career c
Doesn t it make good sense
correspondent banking and invest.
activity with career specialists?




. yiwwww ww

:i: a i S ^ S S i p g i 1«
Correspondent Services Division/lnvestment Department

Correspondent Services 341-6561
MN Wats 800-862-1452
National Wats 800-328-8155
Federal Reserve Bank of St. Louis

Marquette Bank

M em ber FDIC

Investment Department


MN Wats 800-642-7582
National Wats 800-328-8013


Minnesota News

sales finance and leasing depart­
John R. Newton has been ad­
vanced to vice president. He joined
the bank in 1986 as assistant vice
president, and prior to that was a
finance manager at Cessna Finance
Corp. and an engineering technician
for NASA.
James A. Conrad was promoted to
assistant vice president. He joined
American as a credit analyst in the
construction department in 1984.
* * *

kind, who heads the product man­
agem ent d e p artm en t; Jeffrey
Tubbs, who manages sales, and
Susan Scheerer, who heads delivery
services. Mr. Raskind recently
moved from First Bank Milwaukee,
where he headed bank operations.
Mr. Tubbs previously was employed
by the Minneapolis regional office of
Continental Illinois National Bank.
* * *

Carl R. Pohlad, president of Mar­
quette Bank Minneapolis, was
named 1987 Distinguished Good
Neighbor by WCCO Radio in Min­
F irst Bank System recently neapolis. The award has been given
named Ron Larson president of its since 1924 to Minnesotans who
Matrix Leasing subsidiary. Mr. Lar­ “have made a significant contribu­
son is also senior vice president of tion to a better world and have
FBS National Leasing Group, of brought honor to the State of Min­
which Matrix is now a unit. With the nesota.” Mr. Pohlad was cited for
addition of Matrix assets, the Na­ his ownership of the World Series
tional Leasing Group expects to re­ Champion Minnesota Twins, his
port year end assets of $ 1.2 billion. leadership in the banking industry,
Matrix Leasing has offices in San and his long term civic commit­
Francisco, New York and Minneapo­ ments.
lis. Weldon Smith is executive vice
* * *
president of Matrix and managing
Richard S. Trenkmann has been
director of its San Francisco office,
and Ed Yocum is managing director named senior managing director and
of the New York office. Mr. Larson head of the cor­
porate finance
is headquartered in Minneapolis.
department for
* * *
the First Bank
Marquette Bank Minneapolis has S y ste m M er­
named Anne Maguire to the new chant Banking
position of pri­
Group. He for­
vate banking of­
merly was a vice
ficer a t M ar­
president for the
quette Bank Edi­
investment bank­
na. Prior to her
ing department R.S. TRENKMANN
position at Mar­
of Kidder, Pea­
q u e tte ,
body & Company in Chicago, where
Maguire was re­
he was employed for 20 years.
tire m e n t p ro ­
First Bank System Capital Mar­
duct m anager
group recently announced the
and s tra te g ic
of its foreign exchange
planner at First
trading. Only a
Bank Systems.
offer the ser­
* * *
vice. Trading runs from late Sunday
First Bank System has an­ until mid-afternoon on Friday. FBS
nounced it has formed a new divi­ Capital Markets Group also main­
sion named Wholesale Transaction tains a foreign exchange dealing
Services. The new unit combines its room in London.
* * *
cash management sales, product
The Federal Reserve Bank of Min­
management and operations sup­
port functions, and is part of the cor­ neapolis has announced three new
members of its board of directors:
porate banking group.
Terry Sandvik, senior vice presi­ Delbert W. Johnson, president and
dent, has been named head of the CEO, Pioneer/Norelkote in Minnea­
unit. He has been with FBS for six polis; Joel S. Harris, president, Yel­
years, and previously headed the lowstone Bank, Billings, Mont., and
company’s metropolitan operations Earl St. John, owner, St. John
Forest Products, Inc., and St. John
The unit management team also Trucking, Spaulding, Mich. Each
includes vice presidents Peter Ras- will serve a three-year term.

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

Leaving the board are John B. ^
Davis, Jr., president emeritus,
M acalester College, St. Paul;
Thomas M. Strong, president, Citi­
zens State Bank, Ontonagon, Mich.,
and William L. Mathers, president, ^
Mathers Land Company, Miles City,

MBA V.P. Appointed
Minnesota Bankers Association
Executive Vice President Truman L.
Jeffers has an­
nounced the ap­
p o in tm e n t of
T hom as
Schepers to vice
cation of the As­
Prior to join­
ing MBA, Mr.
Schepers was
training and de­
velopment officer for First Bank
System. He has also been a manage­
ment and organization development
consultant for Lifespan, Inc., a hos­
pital corporation.
Mr. Schepers’ duties at MBA will
include overseeing more than 70 an­
nual education programs plus six
professional banking schools.

Elected in Eden Prairie
First State Bank of Eden Prairie
has elected Daryl Standafer presi­
dent and chief
executive offi­
cer. He began
b a n k in g
career with First
Bank System in
W o rth in g to n ,
and later served
in FBS positions
in Minneapolis
and Edina. Most
recently he was
senior vice president of Resource
Bank & Trust in Minnetonka.

Boehlje Named to
MBI Advisory Board
Michael Boehlje, head of the de- ^
partment of agricultural and applied
economics at the University of Min­
nesota, has been appointed to the
Midwest Banking Institute Adviso­
ry Board. The Institute, founded in ^
1966, is a professional education
program for management level agri­
cultural bankers. It is sponsored by
(Turn to page 27, please)

The program is designed to supple­
m ent the com pany’s ongoing
employee benefits program and for
other general corporate purposes, in­
cluding payment of stock dividends
and stock splits.

Harris to Purchase Norris



On November 24, Harris Bankcorp, Inc., Chicago, and Norris Bancorp, Inc. announced the signing of a
letter of intent under which Harris
would purchase 100% of the com­
mon stock of Norris for $22 million
in cash. Norris owns State Bank of
St. Charles and The First National
Bank of Batavia, both located in
east central Kane County. The two
banks have aggregate total assets of
$174 million and total deposits of
$161 million as of September 30.
The proposed acquisition is sub­
ject to the signing of a definitive
agreement, regulatory approval, and
approval of shareholders of Norris
Bancorp. If approved, the two banks
will bring to ten the number ac­
quired by Harris Bankcorp since its
acquisition program began in 1982.

and offices in Champaign and Urbana. Marine is a multi-bank hold­
ing company with assets of approxi­
mately $776.1 million at September
Willard Bunn III, Marine Corpo­
ration’s president and CEO, said
Marine will merge The Commercial
Bank of Champaign with its $90 mil­
lion Marine American National
Bank of Champaign, acquired in
Marine Corporation has also an­
nounced the authorization of the re­
purchase of up to 250,000 shares of
its common stock from time to time,
during the next 12 months, on the
open market or in privately-negoti­
ated transactions. The company will
pay for repurchased stock with gen­
eral corporate funds. It currently
has 6,027,092 shares outstanding.


William M. Keating has been pro­
moted to vice president and control­
ler of Lane In­
dustries Inc. He
had been direc­
tor of taxes for
th e com pany.
Mr. Keating is a
1st 111. Announces
member of the
* Marine Corp. to Acquire
Stock Repurchase
American Insti­
Commercial Bancshares
First Illinois Corporation, Evan­ tute of CPAs
of th e
S p r in g f ie ld - h e a d q u a r te r e d ston, has announced a program to and
Marine Corporation has announced repurchase up to 1.5 million shares American Bank­
® the completion of the acquisition of of its common stock, from time to ers Association
Commercial Bancshares, Inc. of time, on the open market during the and the Chicago Bar Association.
Champaign for $16.6 million in cash. next 24 months. All stock that is re­
Commercial is a one-bank holding purchased within the period will be
Christine M. Long has been pro­
company with assets of $98 million held in the corporation’s treasury.
moted to chief financial officer of
C ash S ta tio n
ATM Network.
She also will re­
tain her title as
vice president of
m arketing and
sales, which she
has held since
joining the Net­
work in April.
Previously, Ms.
Long worked for
Murdoch and Coll, Inc., where she
was financial asset manager of the
real estate firm and head of Chicago
GROUND was broken on November 20 at the future site of the Orland Park fa c ility of First office property operations. Prior to
that she served as a corporate planN ational Bank of Evergreen Park. It is located between 153rd and 154th Streets on the west

Bank to Open in Orland Park


side of Harlem Avenue. When com pleted, in mid-1988, the 15,580 sq. ft. fa c ility w ill be a fullservice banking center. In ad dition to providing com m ercial and retail banking, it w ill feature five drive-up lanes, a vault area w ith over 2,000 safe deposit boxes, tw o ATM units and
a com m u nity room.
Federal Reserve Bank of St. Louis

(Turn to page 29, please)
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

O ’

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We offer speedy service that cuts float. Experts
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Put our accelerated evolution to work on your
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Call First Wisconsin at (414) 765-4459.


©FWC 1986
Federal Reserve Bank of St. Louis


Elected in Eau Claire

1st Interstate Acquires
Asset-Based Lending Office
First Interstate Corporation of
Wisconsin and First Interstate Ban­
corp of Los Angeles have announced
an agreement whereby First Inter­
state Corporation of Wisconsin will
purchase the assets and business of
the Milwaukee office of First Inter­
state Commercial Corporation, an
asset-based lending subsidiary of
First Interstate Bancorp.
Under terms of the agreement,
First Interstate Corporation of Wis­
consin will form a new subsidiary to
acquire the assets and continue the
business engaged in by that office,
namely asset-based lending to small
to medium-sized accounts in Wis­
consin and its neighboring states.

All personnel currently employed by
that office will become employees of
the resulting First Interstate Com­
mercial Corporation of Wisconsin.
Terms of the agreement were not
Melvin L. Rutlin has been named
president of the new subsidiary.
Other officers are Charles H. Baston, vice president—marketing; Pat­
rick D. Clancy, vice president—
operations; Keith M. Olszewski, vice
president—auditing, and Victor W.
Ronk and Dennis D. Schlesner, as­
sistant vice presidents.
First Interstate of Wisconsin also
announced recently a stock repur­
chase program whereby it may buy
up to one million of its own shares.
The corporation has 8.2 million
shares outstanding.

First Wisconsin National Bank,
Eau Claire, has elected Thomas P.
M ihajlov vice
p re sid en t and
economic devel­
opment officer.
Since 1985 he
has worked as a
senior finance of­
ficer for the Wis­
consin Business
Development Fi­
nance Corpora­
tion. Prior to
that he spent four years as vice
president of development for the
Hallbeck Group Design/Build, Inc.
in Eau Claire.

Named in Appleton


Valley Systems, Inc., Appleton,
the computer division of Valley Bancorporation, has announced several
staff changes. Lynn Keifer and Shir­
ley Kwasny have been appointed #
user support deposit account specia­
lists. Christine Luck and Peggy
Lindsay have been named user sup­
port loan account specialists. Kevin
Vandenberg and Dale Ziesemer have •
joined Valley as programmers.

Merchants Bank in Huron. LaVern
E. Barta has been promoted to vice
president, having previously served
as assistant vice president and
manager of installment lending. Don 9
Tschetter, former installment bank­
ing officer, was advanced to assis­
tant vice president.

First Bank Elects V.P.
He transferred to Sioux Falls in
Al Hodgson, senior vice presi­ 1983 as vice president, retail bank­
dent, consumer credit manager, has ing and was promoted to his most
recent titles in 1986.
also been named
Mark Lovre has been named the
manager of the
assistant vice president,
m ortgage loan
lending. He joined Nor­
processing cen­
west in 1975.
ter for Norwest
Craig Miller has joined the Nor­
Bank South Da­
trust department in Sioux
a business development of­
In 1978, Mr.
previous position was with
H odgson was
named vice pres­
ident, in s ta ll­
ment lending for
the downtown branch. From 1980 to Elected in Huron
Two new officers have been
1983 he was in Brookings, where he
served as vice president/manager. elected and promoted by Farmers &

Promoted by Norwest

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

Debra E. Hodges has been elected
a vice president of First Bank of
South Dakota.
She joined the
bank as a credit
review officer in
1984, and was
elected assistant
vice president
and credit re­
view m anager
for the South
Dakota region in
1985. Most re­
cently, she has been given responsi­
bility for managing the credit ad­
ministration and review functions
for First Bank of South Dakota—
SiniiY Falls.

NDBA to Offer Bank Mgmt. Conference
HE NORTH Dakota Bankers
Association will sponsor the
1988 Bank Management Conference
on February 2-3 at the Holiday Inn
in Fargo. Featured speakers will be
Larry Wipf, director of regional economics, Norwest Corporation, Min­
neapolis; Roger Minch, Fargo attor­
ney; Bob MacDonald, president and
CEO of LifeUSA, Minneapolis;
Richard Fitzgerald, former chief
counsel, Comptroller of the Cur­
rency, and now a Washington, D.C.
attorney, and Norwood “Red” Pope,
senior vice president/marketing,
Valley National Bank, Phoenix. The
complete program follows:
Tuesday, Feb. 2
11:00 Registration begins.
11:30 Luncheon.
12:15 Making Economic Develop­






NDBA Nominees Announced
Harvey Huber, president of the
Union State Bank, Hazen, and chair­
man of the North Dakota Bankers
Association nominating committee,
has announced that the committee
has concurred on nominees for the
NDBA’s 1988-89 officers, and the
Executive Council accepted the re­
D u rin g th e NDBA annual
meeting on June 14, these candi­
dates will be proposed for election:
for President-Elect, Ken Reno, presi­
dent, United Bank of Bismarck (cur­
rently NDBA vice president/treasurer), and for Vice President/Treasurer, Gary Paulson, president,
First State Bank, Park River.
Additional nominations may be
made from the floor. The office of
NDBA President will automatically
be assumed in June by current Presi­
dent-Elect Roger Berglund, presi­
dent of the Dakota Western Bank,
Bowman. Current president of the
Federal Reserve Bank of St. Louis



ment a Reality in North Da­
kota (videotape).
“After the Crash of 1987”—
Larry Wipf, Norwest Corp.
“A Primer on North Dakota
Real Estate Mortgage &
Foreclosure Law” —Roger
Minch, atty.
“Partners, Not Rivals”—
Bob MacDonald, LifeUSA.
Wednesday, Feb. 3

The convention will be held at Rapid
City on June 23-26. The 1989 NDBA
convention will be in Bismarck; the
1991 gathering will be held in Fargo.
The Council also authorized re­
sumption of the four separate
NDBA group meetings for Septem­
ber 1988. These meetings were con­
solidated in 1987 at Bismarck in
conjunction with the NDBA Legis­
lative Leadership Summit Confer­

Grand Forks Bank
Completes Renovations
F irst National Bank, Grand
Forks, has completed renovations of
its First Financial Center, in the
former Norby Building in Grand
Forks. The construction took 20
months and cost nearly $2 million,
the largest private renovation of a
building in the city.
The changes completed renova­
tions of the entire block of Grand
Forks, and incorporated an 80 foot
skyway entrance, the first part of a
proposed network throughout the
downtown area.
The renovations included new
electrical, plumbing and mechanical
systems, a new roof, new decor and
state-of-the-art computer equip­
ment. The minipark on the build­
ing’s north side was also redone.

7:30 Breakfast buffet.
8:30 Presentation—Richard Fitz­
gerald, atty., former chief
counsel, Comptroller of the
9:30 “Disney Dynamics in Bank
Management and Market­
in g ” —N orw ood “ R e d ”
Pope, Valley National Bank,
(Continued from page 22)
the banking associations of Minne­
NDBA is John W. Pierson, chair­ sota, Montana, North Dakota,
man, Norwest Bank, Minot.
South Dakota and Wisconsin, and is
held at the University of Minnesota
Retired in Belfield
—Morris each July.
First National Bank of Belfield
Dr. Boehlje is a well-known
employee Marianne Miller is retiring author and speaker on agricultural
after 26 years with the bank. She finance and policy.
began her banking career in 1943 as
teller and bookkeeper. After nine Elected in Brooklyn Park
years she left the bank to raise her
Brooklyn Park Bank has an­
family and rejoined First National nounced the election of Pamela G.
in 1969. She was advanced from Shaffer to vice
head teller to cashier, and most re­ president/cashcently was the bank's internal audi­ ier. Ms. Shaffer
tor. Mrs. Miller is a member of the has been with
N ational Association of Bank the bank for
seven and a half
most re­
Tri-State 1990 Convention
cently as assis­
Approved by Council
tant vice presi­
The NDBA Executive Council dent and mar­
met on December 16 in Bismarck.
keting officer.
The Council approved NDBA par­ She has been ac­
ticipation in a joint convention with tive in the AIB, the Minnesota
the bankers’ associations from Bankers Association and the Na­
South Dakota and Montana in 1990. tional Association for Bank Women.
Northwestern Banker, January, 1988


Assocs. Agree on Interstate Banking
HE Colorado Bankers Associa­
tion, the Independent Bankers
of Colorado and the Colorado Asso­
ciation of Bank Holding Companies
have announced their agreement to
support a single bill in the 1988
Colorado legislature to authorize in­
terstate banking.
In a major effort to achieve a uni­
fied position, the three groups have
resolved previous differences and
are supporting the bill, which they
will recommend to the legislature.
The agreement was developed dur­
ing weeks of work sessions where
Don A. Childears spoke for the
CBA, James P. Thomas represented
the IBC and Rendle Myer spoke for
the CABHC.
The text of the official “Banking
Industry Position on Interstate
Banking” follows:
Below is the unified industry posi­
tion on interstate banking sup­
ported by CBA, IBC and CABHC.
All three associations will strongly
support all elements outlined herein.
As outlined below, the proposed
bill will allow Colorado bank holding
companies (BHCs) to acquire banks
and BHCs in other states and autho­
rize out-of-state BHCs to acquire
Colorado banks and BHCs.
Form/Timing of Interstate Bank­
ing: Authorize reciprocal interstate
banking with Colorado’s seven adja­
cent states on July 1, 1988 with con­
version to nationwide non-reciprocal
interstate banking on January 1,
1991; and treat the two out-of-state
BHCs that currently own Colorado
banks, First Interstate and AmeriTrust (Central), as if they were
located in an adjacent state.
Capital: Require that the acquir­
ing BHC coming into Colorado from
out of state have total capital (in­
cluding loan loss reserves) equal to
at least 6 % of total assets; and that
both the definition of total capital
and the amount required would be
automatically adjusted (including

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

increasing or decreasing the percen­
tage requirement) if the Fed changes
its numeric requirements or its defi­
New Charters: Authorize inter­
state purchases only of those banks
or BHCs in operation on July 1,
1988. After July 1, 1993, a Colorado
BHC controlled by an out-of-state
BHC may acquire control of a Colo­
rado bank through “de novo” char­
State Regulation: Permit the
state Banking Board to make advi­
sory comments to the Fed on rele­
vant topics. A copy of the applica­
tion for the proposed interstate pur­
chase shall be submitted to the
Banking Board concurrently with
filing of the application with the
Fed. (If the capital requirement and
market share standards were met,
the Banking Board could comment,
although it would not be required to
do so.)
Market Share Limitation: Prohi­
bit any interstate acquisition that
would result in control of over 25%
of the deposits of all types of federal­
ly insured financial institutions in
the state.
Local Loans: Charge the state
Banking Board with the responsi­
bility to provide a written report to
the Legislature of any significant
problems for qualified Colorado bor­
rowers in obtaining credit. To do
this, all Colorado banks and BHCs
would have to submit a brief annual
report on lending to the state Bank­
ing Board; the report would reflect
June 30 data, would be due 60 days
later, and would include the bank or
bank holding company’s gross loans
(in dollars loaned) in each of four
categories: in Colorado, in Colo­
rado’s seven contiguous states, in
the remainder of the United States,
and outside the United States.
Name Protection: Prohibit an outof-state BHC from acquiring in
Colorado if it has a name deceptively

similar to an existing Colorado bank
or BHC.
Cross-Industry Acquisitions: Un­
til January 1, 1991, prohibit out-ofstate BHCs from acquiring Colo­
rado thrifts (such as S&Ls, savings
banks, industrial banks and credit •
unions) or thrift holding companies,
and prohibit out-of-state thrift hold­
ing companies from acquiring Colo­
rado banks or BHCs.
Branching: Pledge not to support •
or advocate any legislation regard­
ing branch banking during the 1988
session of the Legislature.

Central Bank Promotes Six
Central Bank of Denver has an­
nounced several promotions.
Michael W. Lubchenco was named £
senior vice president, mortgage
lending. He has served as a vice
president since starting with the
bank in 1977. Prior to that he was a
vice president for United Mortgage 0
David R. Pringle was named se­
nior vice president, commercial
banking. He joined the bank in 1972
and most recently served as vice %
president, commercial banking. He
was previously employed by Ameri­
can Express.
James A. Baldwin was named
vice president. He is director of 9
mortgage banking operations, and
joined Central Bank in September,
1987. Prior to that he was a senior
vice president for Bright Mortgage
in Dallas.
Mark J. Gouin, Ken Griffin and
Gene Jaeger have been promoted to
assistant vice presidents. Mr. Gouin
is a lending officer in the Colorado
banking department. Mr. Griffin #
works in the Custom Financial Cen­
ter. Mr. Jaeger is a.v.p. of retail in­
direct and wholesale lending.

CNB Announces Changes
Colorado National Bankshares,
Inc. has announced several staff
Steven B. Stemper has been
elected vice president and assistant
controller of the Colorado National
Bank of Denver.
Elected officers at the bank were: £
Paul W. Stafford, personal loans;
Betty Aga, personal loans; Ronald
(Turn to page 46, please)


Shively Named Head
of Norwest Casper
The board of directors of Norwest
Banks in Casper has announced the
election of Owen
“ Dan” Shively
to p re s id e n t,
chief executive
officer and direc­
tor of Norwest
B ank C asper,
Norwest Bank
East Casper and
Norwest Bank
West Casper. He
succeeds Robert
W. Miracle, who has been serving
dual roles as chairman, president
and CEO of the three banks and
president and CEO of Affiliated
Bank Corporation of Wyoming.
(Continued from page 23)
ner and lending officer for First Na­
tional Bank of Chicago.




Gail Gordon has joined The Ex­
change National Bank of Chicago as
assistant vice president in the 122
Private Banking Center. She pre0 viously was an officer and manager
of a business banking center at The
Irving Trust Company in New York




UnibancTrust Company has an­
nounced it has signed a contract to
acquire 100% of the stock of Van­
guard Financial Service Corpora­
tion, a privately held Lombard® based lessor of office equipment, at a
cash price of approximately $7.9
million. Closing is expected prior to
year end subject to the customary
* * *
Alfred Feiger, vice chairman and
president of Affiliated Banc Group
Inc., has been named to the board of
^ directors of Manufacturers National
Corporation, a bank holding com
Federal Reserve Bank of St. Louis

Mr. Miracle will continue as chair­
man of Norwest and as president
and CEO of Affiliated and will con­
centrate exclusively on holding com­
pany activities.
Mr. Shively most recently was
president and CEO of three Norwest
Banks based in Butte, Mont. He has
extensive experience in agriculture,
energy and commercial lending and
managerial experience in other areas
of banking as well. He had been with
various Norwest banks since 1977,
before coming to Casper.

Abstract Report Released
The Office of the State Examiner
for Wyoming has released its Sep­
tember 30, 1987 abstract report for
state and national banks. 66 state
banks and 37 national banks repany in Detroit. The consolidation
of Affiliated and Manufacturers Na­
tional was effective on October 31.


ported, as compared with 53 and 54
on September 30, 1986.
Net loans and leases for state
banks was $846,812,000 and for na­
tional banks was $879,437,000, for a
total of $1,726,249,000. September
30, 1986 figures were $757,724,000,
$1,255,498,000 and $2,013,222 res­
Total deposits for state banks was
$1,857,130,000, for national banks
was $1,831,061,000, and total was
$3,688,191,000. Last year’s Septem­
ber 30 figures were $1,420,795,000,
$2,366,990,000 and $3,787,785,000
This year’s third quarter figures
for total equity capital were: state
banks —$181,874,000, n atio n al
banks—$149,394,000, total—$331,
268.000. September 30, 1986 figures
were: state banks—$139,294,000,
national banks—$213,204,000, total
September 30, 1987 figures for
total liabilities, limited-life preferred
stock and equity capital were: state
banks—$2,081,850,000, national
banks—$2,053,654,000, total—$4,
135.504.000. A year ago the figures
were: state banks—$1,595,535,000,
national banks—$2,663,140,000,
Harrisburg Community Unit #3
School District in Harrisburg.




Michael A. Sykes has joined Col­
onial Bank as a residential lending
officer. Previously he was a loan re­
view officer at Regency Savings
Bank in Naperville.
* * *
LaSalle National Bank has an­
nounced that J. Michael Houston,
former mayor of Springfield, has
joined the bank’s public finance divi­
sion upon completion of his mayoral
term, December 2.
Mr. Houston, who has been
mayor of Springfield since 1979, will
be working for LaSalle with munici­
palities, school districts and other
local government units throughout
Illinois as they structure effective
public financing programs.
LaSalle National Bank has an­
nounced that Jerold Williams will
join the bank’s public finance divi­
sion. Mr. Williams has been in­
volved in Illinois school administra­
tion for 20 years, and most recently
was administrative assistant and as­
sista n t superintendent of the

Gail M. Gresser has been pro­
moted to loan review officer and
Julie T. Srachowski has been pro­
moted to human resource officer at
First Colonial Bank Shares Corpora­
tion. Previously, Ms. Gresser was a
loan review analyst and Ms. Strachowski a human resource manager.
* * *
Progress continues in the consoli­
dation of Cash Station and Money
Network into the new CASH STA­
TION® ATM network, according to
Stephen S. Cole, president.
Effective January 1, 1988, the
network will affect an average
reduction of 18.5% per price break
for switch fees. The reduction is due
to greater than anticipated growth
in transaction volume and projected
cost reductions.
At the September meeting of the
CASH STATION board of direc­
tors, approval was given for the
scheduling of the network sharing
date for 1988. An exact date will be
determined as soon as possible.
Northwestern Banker, January, 1988

A lot of folks
want to be your

We want
to establish
a partnership.
At NBC we call it relationship banking and it means
more than loans, computer work, investments and cash
It means people.
People with expertise and an interest in your
success. People who honor their commitments and stand
behind the service they offer.
That means not just looking for the easy solution
but the best one. It means a willingness to reconsider a
position when the situation merits it.
Relationship banking also means that, unlike other
correspondents, we don’t compete directly for business
with the banks we serve. The relationship is too important
to us.
Of course, the relationship we’re seeking also
includes providing the full range of correspondent
products and services you expect, from check clearing and
cash management to investment services and complete
regulatory compliance and forms processing.
If this kind of correspondent service makes as much
sense to you as it does to us, we’d like to talk with you,
because the first step in any successful business
relationship is a get-acquainted session.
Call us at (402) 472-4115. We’ll tell you a lot more.
Just as important, we’ll listen to you.


National Bank of Commerce


iilFiRST C o m m e r c e bank.
Federal Reserve Bank of St. Louis

NBC Center / 13th & O / Lincoln, NE 68508
Phone (402) 472-4115 / MEMBER FDIC

For more information, contact
Jone Beer or RoJean Clifton,
Schools of Banking, Inc., 5930 S.
58th Street, Suite O, Lincoln, NE
68516, (402) 421-1107.

Elected in Schuyler

Named in Bellevue
John H. Becker, chairman and
CEO of Affiliated Midwest Bancs,
B ellevue, has
named Rick R.
Sanders presi­
dent and chief
operating officer
of the company.
He su cceed s
M ichael
Walts, who left
Affiliated in late
Mr. Sanders
joined the organization in 1981 as
vice president and trust officer of
the Bank of Bellevue. He was named
to head Affiliated’s financial plan­
ning division in 1985 and in 1986
was promoted to senior vice presi­
dent. Mr. Sanders joined the com­
pany’s executive committee in mid1986 as an associate member and
was named to full membership in Ju­
ly of 1987.

NBA Council Approves
Legislative Program
At its meeting in December, the
^ N ebraska Bankers Association
^ Executive Council approved the as­
sociation’s legislative program for
the coming session. Highlights of
the program are:
Interstate banking: The Council
voted 20-2 to change the NBA’s
position to neutrality. The Nebraska
Independent Bankers Association
opposes interstate banking.
Public funds: The Council voted
to support compromise legislation
giving stock savings and loan asso­
ciations authority to solicit public
funds after January 1, 1990.
Mediation: The NBA will continue
to oppose any attempt to legislative­
ly mandate mediation of debts prior
to foreclosure (LB 664).
State super fund: The Council
0 changed its position from “watch”
to “oppose” on LB 706, regarding
Federal Reserve Bank of St. Louis

Larry L. Bazata has been elected
president and Charles P. Heavican
executive vice president of the
Schuyler State Bank & Trust Com­
pany. Both also serve on the bank’s
Mr. Bazata joined the bank in
1971 and was previously with the
National Bank of Commerce and the
Cornhusker Bank of Lincoln. He has
served as a director of the Packers
Bank & Trust Company of Omaha
and is currently president and a
director of State Savings Company.
Mr. Heavican also joined the bank
in 1971 and is its senior lending offi­
cer. He also serves as a director of
State Savings Company.

the establishment of a state environ­
mental super fund.
Branch banking: As long as
branching is limited to Douglas,
Sarpy and Lancaster counties, the
Council voted to maintain a neutral
position on legislation permitting de
novo branching. The NBA will op­
pose any attempts to expand the bill
(LB 703). The NIBA opposes
Usury—NBA will continue to
strongly oppose any attempts at im­
posing general usury limitations in
Nebraska (LB 735).
Elected in Cozad
Edward J. Boos has been elected
Schools of Banking
executive vice president and chief
executive officer of First Bank &
The KBA/NBA Schools of Bank­ Trust Company, Cozad. His most re­
ing has announced the 1988 Profes­ cent position was with the FDIC in
sional Banking Schools:
St. Joseph, Mo. where he was De­
School of Banking Fundamen­ partment of Liquidation Section
tals—March 21-25, Holiday Inn, Chief/Participation Loans. Prior to
Manhattan, Kan. 100-level basic that he served at The Home Bank,
course. Fee—$775 single, $675 Savannah, Mo.; The City National
double, $625 no housing.
Bank, Atchison, Kan., and The First
Professional Development Pro­ National Bank, St. Joseph, Mo.
gram Intermediate School of Bank­
in g -F irst Year Session, September
18-23, 1988; Second Year Session, Bankers, Sen. Karnes Meet
June 18-23, 1989. Holiday Inn, Man­
hattan, Kan. 200-level course. Fee,
F irst Y ear—$925 single, $795
double, $750 no housing. Fee, Sec­
ond Year—$975 single, $850 double,
$800 no housing.
Professional Development Pro­
gram Commercial Lending School—
April 17-22, Holiday Inn, Manhat­
tan, Kan. 200-level school in com­
mercial lending skills. Fee—$975
single, $850 double, $800 no hous­
Professional Development Pro­
gram Agricultural Lending School—
August 28-September 2, Ramada
Holthus (left), president of the First
Inn, Kearney, Neb. 200-level ag Kelly
N ational Bank of York and past president of
lending course. Fee—$875 single, the Nebraska Bankers A ssociatio n, and Jim
$750 double, $700 no housing.
Nissen (right), president of V istar Bank in
School of Trust & Financial Plan­ Lincoln, met recently w ith U.S. Senator
ning—October 31-November 4, Holi­ David Karnes in W ashington to discuss
issues. Sen. Karnes, form er ch a ir­
day Inn, Lenexa, Kan. Entry-level banking
man of the Federal Home Loan Bank
trust course. Fee—$850 single, $725 Board’s Topeka d is tric t, is a member of the
Senate Banking Com m ittee.
double, $675 no housing.
Northwestern Banker, January, 1988

His most recent position was client
executive in the FIG department.
Mr. White joined Norwest in 1972
and most recently was consumer
banking manager.

Several promotions have been an­
nounced by Norwest Bank Nebras­
Donald L. Jor­
gensen, p re ­
viously a s s is ­
tant vice president/senior ad­
ministration of­
ficer, has been
advanced to vice
president of the
t r u s t d e p a r t­
ment at the 1919





Douglas Street office. He has been
with the bank since 1952.
Mary J. Huss has been named
operations officer. She joined Nor­
west in 1979 and most recently was
manager of rejects/returns.
Thomas P. McNally, formerly an
attorney in private practice, joined
the bank in August as a trust ac­

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

count officer.
Sally A. Shamberg joined the
bank in 1983 and became a credit
analyst. In May she was promoted
to assistant manager/credit training
and analysis.
At Norwest Investment Services,
Bradley J. Stockwell has been pro­
moted to assistant vice president.
He joined Norwest Investment in
1983 as an investment officer.



FirsTier Bank Omaha has an­
nounced two of­
ficer a p p o in t­
ments. Randolf
F. K assm eier
was named as­
sistant vice pres­
ident. He joined
the bank in 1984
and is an attor­
ney. Ronald D.
Bolton w as ap- R F KASSMEIER
pointed an oftiin the commercial lending real estate



William C. Smith, president of
FirsTier Financial, Inc., announced
that a dividend of 27 V* cents per ^
share was declared on its common ^
stock to shareholders of record on
December 26, 1987, payable Janu­
ary 1, 1988. This was the fourth
quarterly dividend of 27Vi cents de- f
dared in 1987, or $1.10 for the year,
* * *
which is equal to the amount de­
John Cochran, president of Nor­ clared in 1986.
The payment date of January 1
west Bank Nebraska. N.A.. has announced the pro­
represents a change from previous £
years’ payment on December 31.
motions of Kath­
leen A. Cook to
Mr. Smith stated that it is contem­
plated that future dividend payment
vice president/
dates will be on April 1, July 1, Oc­
tru s t develop­
tober 1 and January 1.
ment and James
* * *
J. Free to finan­
cial institutions
Rolland C. Johnson, CEO of Crea­
o fficer
tive Financing, Inc., an OmahaOmaha, and of
based mortgage banking firm, has
David A. White
announced a new fixed-rate mort- #
to assistant vice
gage product. It is called a Reduc­
tion Option Loan or ROL. A conven­
tional, 30-year fixed rate loan, the
mortgage gives the buyer the oppor­
tunity to reduce the rate on the loan •
once between the 13th and 59th
months of the term, at a cost of $100
plus Va% of the outstanding princi­
pal balance.
The ROL does not require new ap- •
praisal or other steps normally
needed for refinancing.

president/consumer banking man­
ager at Grand Island.
Ms. Cook joined Norwest in 1978
and previously was assistant vice
president/trust business develop­
Mr. Free joined the bank in 1982.



First Data Resources Inc., the na- ^
tion’s largest third-party credit card
processor, projects merchant trans­
actions utilizing its Electronic
Ticket Capture product will more
than double this year, passing the £
10,000,000 mark.



A powerful, m odem , top-of-the-line electronic data processing system is not beyond your reach,
regardless of the size of your institution.
We have one for you. Two, in fact.
First National Bank of Om aha’s Information Processing System is as versatile, efficient and powerful
as you’ll find anywhere. And it’s available to you. Dozens of banks are already linked with us electronically
to receive the full competitive benefits of this state-of-the-art service.
O ur In-House Processing System, established in your institution, is fully controlled by your management
and functions on your timetable. Staff time is conserved, overhead reduced, processing costs stabilized
and services improved. It’s designed for optimum efficiency in financial institutions of varying sizes and
O ur EDP services are your most affordable and valuable option. Give us a call; we need to talk.
Michael J. Dooley • National M arketing Director • First National Bank of Omaha
One First National Center • Omaha, Nebraska 68102 • (402) 341-0500

firs! n a tio n a l b a n k
of omaha
Federal Reserve Bank of St. Louis

one first national center
omaha, nebraska 68102

Kaye L. Scott, prog, dir.,
Valley Hope, O’Neill, Neb.
Saturday, Feb. 13
8:30 Continental breakfast.
9:00 Washington Congressional q
Update, Sen. David Karnes.
10:00 “Marketing from the Inside
Out," Jack Hubbard, s.v.p.,
Von Almen & Associates,
Inc., Roselle, 111.
Evening reception and din­


Named in Hallam

The board of directors of National
Bank of Commerce has approved the
following officer elections and pro­
Bradley F. Korell to executive
vice president and senior loan offi­
cer. Mr. Korell joined NBC in 1974.
He has lending experience as a cor­
respondent banking officer and as
manager of the international depart­
ment, the bank card department and
the corporate lending division. He
was promoted to senior lender in



Vicki Ladegard to vice president.
Ms. Ladegard joined the trust mar­
keting department of NBC in 1983.
Prior to that she was a paralegal for
a Lincoln law firm.
Jay Steinacher to assistant trust
officer. He joined NBC as a teller in
1983 and transferred to the trust
division in 1984.
Rose Beals to residential real
estate banking officer. She joined
NBC in 1973.
At NBC Computer Services Cor­
poration, Varro “Jack" Clarke, III
and Virginia Davis were advanced
to customer services officers.
* * *
At FirsTier Bank Lincoln, three
have been promoted to officers.
They are Bradly J. Bechtel, cor­
porate trust account officer; Thomas
W. Larson, trust investment officer,

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

and William L. Ryan, direct loan of­
ficer. The men have been with FirsTier since 1986, 1986 and 1985 res­

NBA Bank Exec. Conference
to Be Held Feb. 10-14
The Nebraska Bankers Associa­
tion has announced plans for its
1988 Bank Executive Conference,
which will be held February 10-14 at
the Grand Champions Resort in In­
dian Wells, Calif. The theme will be
“Strategies to Bank On: A Blue
Print to Success." Conference fee is
$330 per person, with separate fees
for golf and tennis tournaments.
Please register by January 27. The
complete program follows:
Wednesday, Feb. 10
7:00 Welcome to California Re­
Thursday, Feb. 11
8:30 Continental breakfast.
9:00 Welcoming address.
9:30 “ Preparing Today for the
Challenges of Tomorrow,"
Peter Johnson, Johnson &
Co., Newport Beach, Calif.
9:30 Spouse brunch.
12:00 Bankers golf tournament.
1:00 Coed tennis tournament.
2:00 Ladies golf tournament.
7:30 Awards reception.
Friday, Feb. 12
8:00 Continental breakfast.
8:30 Nebraska Update, Cynthia
Milligan, State Banking Dir.
9:00 Washington Congressional
Update, Cong. Doug Bereuter.
10:00 “Banking in the 80’s—A
Very Stressful Occupation,"


Hallam Bank has named Tom
Damkroger president, succeeding
Russ Anderson. Mr. Damkroger pre­
viously served as vice president of
the First National Bank of York. ®
Mr. Anderson has joined the staff of
the Abbott Holding Company in Al­

Added in Nebraska City


David J. Meek has joined the
Otoe County National Bank & Trust
Co., Nebraska City, as assistant vice
president and ag loan officer. He
previously served as assistant vice
president at Union State Bank in
Winterset, la.

Changes Told in Martell
Dan Post has joined the Martell ®
State Bank as loan officer. He has
over seven years of banking experi­
The Martell State Bank also re­
cently completed an addition to its
lobby area of over 1,000 square feet.
In celebration of the remodeling as
well as the holiday season, the bank
held open houses and a wine and
cheese party for customers on De­
cember 11 and 12.

Elected in North Platte
The North Platte National Bank •
has elected Gayland Meyer to its
board of directors. Mr. Meyer is vice
president of James E. Simon Com­

New Location Announced
for Schools of Banking, Inc.
The Schools of Banking, Inc.,
sponsored by the Nebraska and £
Kansas Bankers Associations, has
moved to new office quarters effec­
tive January 1. The new address is
5930 S. 58th Street, Suite O, Lin­
coln, NE 68516. The new phone £
number is (402) 421-1107.


•Austin Associates Offers EDP Service

Casper—Jan. 11. Hilton Inn, 800 N.
Grand Junction—Jan. 13. Hilton
Inn, 743 Horizon Drive.
Northglenn—Jan. 19. Holiday Inn
North, 10 East 120th Ave.
Englewood—Jan. 20. Hilton Inn
South, 7801 East Orchard Road.
Colorado Springs—Jan. 21. Clarion,
2886 S. Circle Drive.
For more information about the
Expedited Funds Availability Act
or the educational seminars, contact
the Bank’s Business Development
Department in Kansas City at (816)

hardware and software which will
stand by the bank and provide on­
going information, so the system
nationally recognized financial insti­ will remain state-of-the-art.”
Austin Associates, with offices in
tution consulting firm for communi­
ty banks, announced last month Toledo, Chicago, Indianapolis,
that it is providing data processing Springfield, 111., and Richmond, Va.,
consulting services for the nation’s specializes in working with the na­
tion’s community banks in the areas
community banking industry.
Dr. Austin noted that the decision of mergers and acquisitions, strate­
to provide data processing consult­ gic planning, marketing, stock
ing assistance was based upon a valuations, data processing, among
10 -month study of community others. A recent issue of a national
banks throughout the country to banking magazine ranked the firm
determine significant consulting number one nationally among in­
needs. “The rapid development and vestment banking advisors handling
deployment of technology and its commercial banking merger and ac­ Deluxe Signs Agreement to
application to the financial services quisition transactions.
Purchase Current, Inc.
industry has accentuated the impor­
Deluxe Check Printers, Incorpo­
tance of identifying proper solutions United Missouri Bancshares
rated, St. Paul, Minn., recently an­
to a community’s bank’s data pro­
nounced the execution of a definitive
cessing needs and problems,” Dr. Elects A New Director
Directors of United Missouri agreement for the purchase of
Austin said.
Dr. Austin also noted that the Bancshares, Inc., Kansas City have Looart Press, Inc., and its operating
firm will offs : bank operations elected John E. Williams to the subsidiary, Current Inc. from Primerica Corporation.
analysis services, data processing board.
Current, which is based in Colo­
Mr. Williams is president of H.E.
planning services, EDP disaster re­
covery and contingency planning WILLIAMS, INC., a manufacturer rado Springs, Colorado, is the na­
services, EDP compliance analysis of lighting fixtures in Carthage, Mo. tion’s largest direct mail marketer of
services, and EDP system conver­ He has been a member of the board greeting cards, stationery, and re­
of directors for United Missouri lated products. Current has esti­
sion planning services.
mated sales for the year 1987 of
Jon A. Brenneman, vice president Bank of Carthage since 1980.
more than $125,000,000.
of the firm’s EDP Division, will
The acquisition of Current will
supervise all data processing con­ 10th Fed Schedules 12
Deluxe’s direct market­
sulting assignments. Mr. Brenne­
ing operations, which were started
man has more than ten years of data Expedited Funds Seminars
In order to increase depository in­ in 1981. Deluxe’s direct marketing
processing management and plan­
understanding of the Ex­ units, which include its business and
ning experience, and is a recognized
expert at community bank data pro­ pedited Funds Availability Act and computer forms divisions, Delmart,
the proposed regulatory and opera­ and Colwell Systems, Inc., produce
cessing consulting.
Mr. Brenneman noted that com­ tional changes that will implement printed forms, stationery and re­
munity banks throughout the coun­ the Act, the Federal Reserve Bank lated accessories for use by busi­
try are being challenged by the deci­ of Kansas City will be conducting 12 nesses, professionals and house­
sion to handle data processing either educational seminars throughout holds.
through an in-house system or the Tenth Federal Reserve District
through an established service in January. The Act, part of which Named in Bradshaw
bureau. He added that bankers often will be implemented on September 1,
Mark V. Utter has been named
make the data processing decision 1988, will have a profound effect on vice-president and branch manager
based totally upon short-term cost the processing and clearing of of The First National Bank of York
c o n s id e ra tio n s r a th e r th a n checks and return items. The Expe­ —Bradshaw branch. He has been a
determining the most efficient and dited Funds Availability Act is part loan officer with the Farm Credit
effective solution to the longer term of the Competitive Equality in System in Scottsbluff. Prior to that,
needs of the organization. Mr. Bren­ Banking Act of 1987, which was Mr. Utter served with the Farm
neman said, “Without proper plan­ signed into law by President Reagan Credit System of Gillette, Wyo.
ning, a bank may find itself moving on August 10, 1987.
Three seminars have been sched­
from one data processing disap­
pointment to another.” He added, uled at the Federal Reserve Bank,
“For example, the trend within com­ 925 Grand Avenue, Kansas City, on Resigned in Monroe
Kathy Votaw Dubs has resigned
munity banking today is to estab­ January 19, 21 and 22. Each starts
lish in-house data processing sys­ at 1:00 p.m. in the 12th floor confer­ as vice president of the Bank of
tems; however, the key to a success­ ence room. Other seminars also run­ Monroe. She will move to Billings,
ful in-house system is to select a ning from 1:00 p.m. to 5:00 p.m., in­ Mont., where her husband is open­
ing a dental practice.
company providing data processing clude.
R. DOUGLAS V. Austin, presi­
dent and chief executive officer,
Austin Associates, Toledo, Ohio, a
Federal Reserve Bank of St. Louis

Northwestern Banker, January, 1988

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Promoted in Davenport

Norwest Acquires Toy National

Three officers have been pro­
moted at Davenport Bank & Trust
Gene Frey has
been named vice
Bank consumer
banking m an­
ager. He has
been with the
bank since 1985
as manager of
the Kimberly of­

ORWEST Bank Sioux City has
completed the acquisition of
substantially all

Norwest did not acquire Toy’s
main banking facility at Fourth and
N ebraska, which rem ains the
of the assets and
property of Toy. Former Toy cus­
^liab ilities, in­
tomers who banked at the Toy
cluding all cus­
downtown office will now be served
tomer deposits,
from Norwest’s main office, located
of The Toy Na­
in the Terra Centre.
tional Bank of
A number of key Toy executives
*Sioux City. With
will be joining Norwest. These in­
assets of approx­
clude Don Vaudt, executive vice
im a te ly $300
president of the Toy Bank, and vice
million, Norwest
presidents Stanley Fredericks,
Bank Sioux City
James Tritz, Thomas Van Dyke and
mow is the second largest banking William Jansen.
organization in the Sioux City
Mr. Moeller also indicated that
market area.
the board of directors of Norwest
Michael J. Moeller, president of Bank Sioux City will be expanded to
Norwest Bank Sioux City, said, include former Toy board members
' “This acquisition strengthens the Cy W. Chesterman and John S.
commitment Norwest made to this Holtze.
community in 1929 when we ac­
Norwest Bank Sioux City is one
quired the former Northwestern Na­ of 11 Iowa banking subsidiaries of
tional Bank. We have been a part of Norwest Corporation.
rSioux City for a long time and ex­
pect to be for a long time to come.”
Mr. Moeller said former Toy cus­
Agribusiness Dinner
tomers now have access to the full
grange of services provided through
Held in Council Bluffs
the Norwest sytem, including ven­
ture capital, leasing, and asset based
lending, which were not previously
available to them. In addition, the
^Toy trust business will be served
from Norwest’s main facility as soon
as remodeling there is completed.
Trust services will be offered to all
Norwest customers as well.
I The commercial lending limit of
Norwest Bank Sioux City has in­
creased to $3.5 million as a result of
the acquisition.
350 southw est Iowa farm ers, live­
Included among the assets ac­ OVER
stock feeders and ag ribusiness workers a t­
quired by Norwest are consumer and tended the 45th annual A gri-Business Din­
commercial loans, and the Toy ner sponsored by C ouncil B lu ffs Savings
Bank’s Sioux City branches at 1703 Bank on November 16. The dinner was held
Pierce Street (Mid-town) and 4360 at the Lakeshore C ountry Club. Shown
above are dinner speaker Duane A. Fischer,
Sergeant Road (Southern Hills president
and CEO of Scoular Grain Co.; Dr.
>Mall), which are now branches of Ward Chambers; and Tom Whitson, presi­
Norwest Bank Sioux City.
dent and CEO of the bank.
Federal Reserve Bank of St. Louis



Tony Knobbe is the new manager
of that office. He joined the bank in
1982 and has been a loan officer
since 1985.
Curt Johnson has been named as­
sistant vice president in the com­
mercial loan department. He joined
the bank in 1968 and previously held
the position of loan officer in the in­
stallment loan department, assis­
tant manager of the Kimberly office
and manager of the Spruce Hills of­

Garner Banker Dies
Herbert L. Ollenburg, chairman
of the Hancock County National
Bank in Garner,
passed away on
November 26 at
his winter home
in Mesa, Ariz.
He was 76. Mr.
Ollenburg was
employed by the
F a rm e rs N a­
tional Bank in
G a rn e r from
1927 to 1934,
and joined Hancock County in 1934.
He served as president of the bank
from 1944 to 1977, and was its chair­
man for the past ten years.
Mr. Ollenburg was a past secre­
tary and chairman of Group III of
the Iowa Bankers Association and
was IBA president in 1962-63. He
also served on the American Bank­
ers Association Executive Council.
Northwestern Banker, January, 1988


Iowa News

ISU Survey Shows Land Values Recover
OWA’S farmland values began to
recover in 1987 after five straight
of decline, according to the an­

ranged as high as 30 percent in 1985,
and farmland lost 63 percent of its
value before this year’s recovery.
nual survey of land values published
“Unbridled optimism is not war­
in December by Iowa State Univer­ ranted’’ as a result of the upturn, ac­
cording to Iowa State University
The turnaround increased the E x ten sio n econom ist M ichael
average value for all grades of agri­ Duffy, but he said a realistic assess­
cultural land by 11.2 percent to an ment indicates that the recovery
estimated $875 per acre, up $88 may be more than a temporary
from last year. The increase was the phenomenon. Mr. Duffy conducted
first since 1981 when values peaked the annual November 1 survey of
at an estimated $2,147 per acre. Iowa farm real estate brokers. He
Since that time, yearly declines had and his assistant, extension econo­

th e bottom figure is th e estim ated Nov. 1, 1986, value.

Reporting D istrict average and the average percentage change from Nov. 1,
1986. The estim a tes are based on a survey o f Iowa real estate brokers.

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

mist Craig Chase, announced the re- 4
suits at a news conference December
18, on the ISU campus.
Mr. Duffy said respondents to the
survey indicated three main factors
that had a positive effect on farm-j|
land values during the past year.
They were payments for participa­
tion in federal programs, higher live­
stock prices and recent high crop
yields. While federal programs were<
the most frequently listed factor
with a positive effect on land values,
Mr. Duffy noted that the uncertain­
ty of government programs was the
factor most frequently listed as hav-|
ing a negative effect on land values.
“All of these positive factors are
of questionable duration,’’ Mr.
Duffy said, noting that federal bud­
get constraints may affect govern- !
ment programs in the near future,
and livestock prices already have
started a downturn. But he said
unless there are drastic shifts, the
value of farmland should remain!
relatively stable in the near future,
compared to the sharp drops in re­
cent years.
The survey provides data for cal­
culations of high-, medium- and low-!
grade farmland in each of the state’s
nine crop-reporting districts, and
average values for all counties in the
state. An increase in the number of
farmland sales during the past year^
was noted by many of the survey
Mr. Duffy said among the sur­
prises this year was the relative
strength of land values in the north-'
west and north central districts
compared to the central and east
central districts. East central Iowa
had the highest land values in the.
state for the past five years, but the*
east central average of $1,053 this
year was below the north central
average of $1,055 and the northwest
average of $1,084.
The northwest average value was*
the highest in the state for the first
time since 1958. High-grade land in
east central Iowa still led the state
with an average value of $1,399, but^
that price led high-value land in
northwest Iowa by only $93. Last
year the margin was $212 .
The percentage of overall increase
in crop reporting districts ranged^
from 15.7 percent in both the north­
west and central districts to 4.5 per­
cent in the south central district.
Mr. Duffy said high-grade land had
the highest dollar increase in all crop^
reporting districts except south cen-














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Waterloo, Iowa 50704

Iowa News
tral Iowa. However, low-grade land
had the greatest percentage increase
in every crop reporting district and
averaged 14.6 percent statewide.
Scott County in east central Iowa
again had the highest average value,
at $1,463, while Decatur County in
south central Iowa had the lowest at
$347. The highest dollar increase
was in Kossuth County at $177,
while Decatur County had the
lowest dollar increase at $21. Kos­
suth had the highest percentage in­
crease at 18.3 percent, while Appa­
noose, Decatur, Lucas, Scott and
Wayne had the lowest percentage in­
creases, in the 6 percent range.
The survey is based on reports of
licensed real estate brokers and
selected individuals with knowledge
of land market conditions. The sur­
vey has been conducted annually by
ISU since 1942, and this year more
than 600 responses were received.
Mr. Duffy said the results closely
matched surveys conducted by
other agencies using different data
collection methods.
Participants in the survey are
asked to estimate the value of high-,
medium- and low-grade land in thencounties, taking into account sales
during the past year and other fac­
tors. County estimates are derived
using a combination of survey re­
sults and information from the U.S.
Census of Agriculture. The district
and statewide averages are based
directly on the data reported by the

Elected in Muscatine
Four officers have been elected at
the First National Bank of Musca­
M. Wayne Johanson was elected
vice president/commercial loan offi­
cer. He joined the bank in 1984 as an
installment loan officer.



Deborah S. E asteria was pro­
moted to assistant vice president of
real estate loans. She has held a
number of management positions
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis



since joining First National in 1974.
David K. Pinegar has been named
real estate loan officer and manager
of OREO properties. He joined the
bank in 1986 as an installment loan
Virginia M. Garretson has been
elected installment loan officer. She
joined First National in 1985 and
has been serving as the officer in
charge of student loans.

in North English.
Ronald D. Levis has joined the
staff as senior vice president and
manager of the loan department. He
formerly was senior vice president
at the Security Savings Bank in £
Eagle Grove.
The bank has also announced two
appointments to its board of direc­
tors. Jim Wake, president of Wakes
Inc. and Quad-County Grain Inc., #
replaces his father, Philip Wake,
who recently retired from the board.
Les Johnson was also elected to the

Ehrecke Named IBA SVP

The board of directors of the Iowa
Bankers Association has announced
the promotion of
Wes Ehrecke to
senior vice presi­
dent. He pre­
viously served
as vice president
Retired, Added in Madrid
and government
D.M. Lamb, vice president and relations/ag di­
cashier of the City State Bank of rector of the
Madrid, has re­
tired from the
In his new
bank effective
p o sitio n , M r.
January 1. He
Ehrecke assumes responsibility for
spent his entire
serving as second in command at
banking career
IBA. His duties still include govern­
of 41 years with
ment relations and agriculture
City State Bank.
issues and activities, as well as over­
He will remain
seeing the marketing and regulatory
as one of the
compliance departments.
bank’s directors.
After serving
in World War II, Mr. Lamb joined Named in Atlantic
Scott Tibben has been named vice
the bank as a bookkeeper in 1946.
He was promoted to assistant president of agricultural loans at
cashier in 1948 and to cashier in Norwest Bank A tlantic, N.A.
1957. He has been a director since Formerly, he was an ag loan officer •
1960 and vice president since 1965- at First National Bank of Dubuque.
He was president of the National
Association of Bank Auditors and
Controllers, Des Moines Chapter, in Added in Indianola
Mary Ann Waters has joined the
Succeeding Mr. Lamb is Timothy staff of Peoples Trust and Savings
J. Byrnes. He has 14 years of bank­ Bank, Indianola,
ing experience, and most recently as a trust officer.
was employed by the Des Moines She has been em­
asset servicing unit of the FDIC.
ployed at Valley
National Bank
in Des Moines as
Changes Told in Oskaloosa
a trust adminis­
Mahaska State Bank, Oskaloosa, tr a to r
has announced the hiring of two new 1986.
Waters holds a
Les Johnson has been elected vice law degree from
president and chief operating offi­ Drake Universicer. He previously served as presi­ ty and is a member of the Iowa Bax#
dent of the Farmers Savings Bank Association.



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help, has gone the extra distance. . . to offer
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had to worry whether our health coverage
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Waterloo Savings Bank

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Northwestern Banker, January, 1988


Iowa News

Keokuk Bank to Purchase
Fort Madison Bank
State Central Bank of Keokuk has
signed a definitive agreement to pur­
chase Iowa State Bank of Fort
Madison. Presently, State Central
has about $94 million in assets and
Iowa State has $26 million in assets.
The combined assets of $120 million
would make it one of the largest
banks in southeast Iowa, the first
bank in Lee County with assets over
$100 million. Combined capital
would exceed $11 million.
William Logan, president of State
Central Bank, said regulatory ap­
proval probably would take about
five months. State Central is pur­
chasing the Iowa State Bank hold­
ing company stock of Larry Wenzl,
president of United Bank and Trust,
Ames; Jim Baier, owner of Jim
Baier Ford in Fort Madison, and
Doyle Hoyer, owner of Glasgow,
Ltd. clothing store in Fort Madison.
Iowa State Bank would be
merged with State Central Bank and
operated as an office of the Keokuk
Mr. Logan’s son, William “Ar­
chie” Logan, will join the Fort
Madison staff. He has been serving
as manager of State Central’s office
in Farmington. The current Iowa
State Bank staff is expected to re­
main the same.

1982, and previously served as assis­
tant vice president and marketing
Mr. Fitzgibbon’s prior position
was auditor. He joined First Na­
tional in 1983.
Mr. Mino joined the bank in 1986
as a trainee.

The Commercial Lending School
will be held at Iowa State Univer­
sity in Ames on February 7-13. Ap­
plications for this school were due
January 4.
The Consumer Credit School will
be March 20-25 at Drake University
in Des Moines. Tuition, housing,
meals and materials are $700 for
Changes Told in Council Bluffs members and subscribers and
Rod Kinman and Todd F. Kruse $1,050 for non-members. Registrahave joined the staff of First Na­ tion is due by February 15.
The Iowa School of Banking will
tional Bank of Council Bluffs.
Mr. Kinman is assistant vice be held June 12-17 at the University
president and controller. Prior to of Iowa in Iowa City. Fees for this
joining the bank he was with Firs- school are $650 for members and
Tier Financial, Inc., Omaha, for 14 subscribers and $1,050 for non-mem­
years, most recently as manager of bers. Applications are due by May
financial analysis.
For more information about these
schools, contact the IBA office.



At The First National Bank,
Ames, Donald K. Mangels was ad­
vanced to vice president, Timothy
Fitzgibbon to assistant cashier and
Brian Mino to auditor.
Mr. Mangels joined the bank in
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis




Kevin Kuehl has been elected to £
the board of directors of First
Security Banshares, Inc., Lake
Park, the holding company of Secur­
ity State Bank in Lake Park. Mr.
Kuehl has been with the bank for six %
years and is assistant cashier as well
as vice president of Kuehls Insur­
ance Agency, located in the bank.

Added in Iowa City



Mr. Kruse is a commercial/agricultural loan officer. His most recent
position was with First National
Bank of Omaha, where he served as
a correspondent banker for two and
a half years. Prior to that he was a
officer for the Federal Land
Elected in Northwood
in Sioux City.
Kary S. Paulson, president of the
Kathleen Chandra and Tim Don­
Northwood State Bank, has an­ nelly have been named commercial
nounced the addition of Robert Um- loan officers at the bank.
barger to the staff. Mr. Umbarger
Ms. Chandra was promoted from
will hold the position of cashier/con- her previous position as a credit
troller. He previously was affiliated analyst. Mr. Donnelly joins the bank
with the Norwest Bank of Mason from a similar position with the
Bank of America in Santa Ana,

Promoted in Ames


Elected in Lake Park

Added in Stanton
Stephen F. Redman has joined the
Security State Bank, Stanton, as
vice president and director. He pre­
viously was an officer with the
Thayer County Bank in Hebron,
Neb. Before beginning his banking
career, Mr. Redman spent several
years in the military.


IBA Announces 1988 Schools
The Iowa Bankers Association
has announced its Commercial
Lending School, Consumer Credit
School, and Iowa School of Banking
for 1988.

Brian C. Wright has joined First
National Bank, Iowa City, as a trust
officer. He previously was a trust of­
ficer at First National Bank in Bur­
Kip Wright has joined the bank as
a trust investment officer. He for­
merly served at Bankers Trust in
Des Moines as a trust investment
officer and vice president.

Promoted in Waterloo
The Waterloo Savings Bank has
announced a change in the retail
banking depart­
ment. Matthew
J. Roegner has
been appointed
personal banker
at the main of­
fice, West Part
at Cedar. He
succeeds Charles
E. Laipple, who
now m an ag es
the bank’s Cedar
Falls office. Mr. Roegner joined the
bank in 1986 as a consumer loan offi­

Iowa News


LEFT— Taking part in Norwest Bank Des M oines’ 29th Annual Business Trends Meeting in early December at the M arriott in dow ntow n
Des M oines were, le ft to right: Seated— Mike Jensen, chief fin a n cia l correspondent, NBC News, New York; Charles M. “ Mike” Harper,
chmn. & CEO, ConAgra, Inc., Omaha, and Martin Bucksbaum, chmn., General G rowth Com panies, Inc., Des Moines. S ta n d in g — Thomas H.
^Stoner, chmn., Stoner Broadcasting System, Inc., Annapolis, Md.; George Milligan, chmn. & CEO, and Lynn Horak, pres. & COO, of the host
bank. RIGHT— Mr. Jensen, Mr. Horak and Mr. Milligan visit before the luncheon w th Iowa Gov. Terry Branstad, who addressed the crow d of
650 business people.

Than 650 Attend Norwest Conference
Annapolis, Md., a native of Des
Moines, discussed “ Communica­
tions.” He said “all advertising
ORE THAN 650 Des Moines agency executives I ’ve talked to or
area business persons helped
read of since Black Monday say
set a record attendance at the 29th their business will be up from 5 V2 to
Business Trends Conference hosted 8Yt percent. All the media expect a
December 7 by Norwest Bank Des good increase—I ’d say it will be
Moines at the Marriott Hotel. Fol­ around IV 2 percent. Advertising
lo w in g the successful format of pre­ generally outpaces GNP growth by
vious years, the Conference featured 2 percent.”
several business chief executives
Mr. Stoner said “radio will remain
whose firms are domiciled in Iowa or strong so long as people drive cars, I
have an established business rela­ expect a 7 to 8 percent volume in­
tio n sh ip in the state. The late morn­ crease in 1988 and an earnings in­
ing presentations on the outlook in crease of 12 percent. Television will
1988 for their respective industries be up in volume about the same
was followed by a special guest amount, with earnings up 13 percent
speaker at the luncheon, and brief in 1988. “The networks will have
Remarks by Iowa Governor Terry trouble holding their market share
against cable. It has dropped from
In his welcoming remarks to start 45 to 37 percent; however, national
the Conference, George F. Milligan, elections and the Olympics will keep
chairman and CEO of Norwest Bank them even in 1988.”
t ) e s Moines and regional president
Mr. Stoner predicts: TV will have
for Norwest, said “Last year (1986) more local programming; TV will
was the best one ever for our bank. have a new generation of high-definiWe had $10,700,000 in earnings. tion big screen and stereo living
We’ve had a 20 percent increase in room sets replacing current ones;
0 h a t figure so far in 1987 and should emergence of the electronic medium
top $13 million, with 1 percent re­ as a worldwide force, via satellite;
turn on assets and 17 percent on there will be more international
equity. Our Iowa affiliates all are do­ media groups and ad agencies; all of
ing extremely well.”
these factors will help make the
• Mr. Milligan introduced H. Lynn world a better place to live.
Horak, president of Norwest Bank
Charles M. “Mike” Harper, chair­
Des Moines, who presided at the man and CEO of ConAgra, Inc.,
rest of the conference, introducing Omaha, addressed “Agriculture.”
the three speakers.
He said “The long-term outlook for
• Thomas H. Stoner, chairman of agriculture is good, for it is one of
Stoner Broadcasting System, Inc., the nation’s great assets.” After the

Federal Reserve Bank of St. Louis

ag economy downturn in recent
years, Mr. Harper stated, “fertilizer
sales are down 40 percent and all
production inputs are down 30 per­
cent. The subsidized sales of other
nations has hurt - it has hurt us na­
tionally, and has hurt local develop­
ment business. The downsizing of
our agriculture was too severe.”
Mr. Harper traced the downturn
in foreign sales due to foreign coun­
tries who “undersold our price um­
brella with subsidies and caused us
great problems. B ut,” he stressed,
“no one produces more efficiently
and as consistently as the farmers of
the United States.” He said farmers
“have paid off 25 percent of their
debt and now are in better shape.”
Mr. Harper stated that “Ameri­
can agriculture is headed in the right
direction. We have a long ways to go
to recover our best position. Iowa
gave up 16 million tons of corn in set
asides—th a t’s double the entire corn
production of Argentina!”
Mr. Harper said the $14 to $16
billion subsidization cost to Euro­
pean Economic Community nations
means “it costs each non-farm fami­
ly in the EEC bloc $900.00 per fami­
Mr. Harper is hopeful that the up­
coming GATT talks will bear fruit
and he supports the U.S. position.
“We’ve got things going for us,” he
said, “a better dollar, a workable
farm bill, and exports going up.” He
closed by noting for emphasis that
one of every four jobs in this nation
is tied to basic food production.
Martin Bucksbaum, chairman of
General Growth Companies, Inc.,
Des Moines, discussed “Retailing.”
Northwestern Banker, January, 1988


Iowa News

His company owns 45 shopping cen­
ters with 3,447 stores in 30 states,
representing over $2 billion in
developed centers and real estate.
Those shopping centers have 40 mil­
lion square feet of floor space.
Mr. Bucksbaum said retailing
once was labor intensive but now is
fast-changing and competitive due
to “great reliance today on the com­
puter chip. It is used for everything
from inventory control to determin­
ing profitability by department, by
aisle and by item, and doing it
He said these factors minimize
the amount of financing retailers
have to do today, as well as his own
Mr. Bucksbaum pointed out one
sobering fact. “It used to be that 25
percent of the stores in our malls
were local, privately-owned stores,”
he said. “Now, we see that down to
15 percent and the outlook for them
is not good. Those who do succeed
are good.” He said the large stores
and chains get people “to trade
there because of good products and
excellent services from well-trained
employees.” Another trend, he said,
is expansion of mail order catalog

Mr. Bucksbaum feels downtown
stores can’t stop shopping mall suc­
cess because “people shop where
they live, not where they work.”
At the noon luncheon, Gov. Branstad said, “We must build on our
strength of agriculture, but diversi­
fy as well.” Gov. Branstad listed the
positive factors in the Iowa eco­
nomy’s upward turnaround, calling
for “new programs, new endeavors,
new inventions in education and bio­
tech research. The worst is behind
us and we’re coming back!”
Mike Jensen, chief financial cor­
respondent for NBC News, New
York, was the luncheon speaker. He
gave his own analysis of Reaganom­
ics. He related the problems in­
volved in trying to translate to the
public the fast-breaking news from
the world’s financial centers. Mr.
Jensen cited the extensive inter­
views he had with OPEC ministers,
for example, they would have four
minutes or less of camera time to
synthesize that information.
For those trying to determine the
true effect of “Black Monday,” Mr.
Jensen says “The key will be in the
first quarter of 1988 when we see
what happens in retailing. ’’ He feels
the economy will continue to grow in

Committed to
making your
bank stand
apart from the

1988. He pointed to the “incredible #
economic strengths in this nation”
when looking at the future — “raw
materials, capital, an educated labor
force, skilled management, and a
stable political system. No one else #
in this world can beat this country of

Added in Algona

Paul Johnson, president of the
Iowa State Bank, Algona, has an­
nounced the addition of Craig E.
McNaughton to the bank staff as
assistant vice president—farm man- #
agement. Mr. McNaughton pre­
viously served for five years at the
Ankeny office of Farmers National
Company. Prior to that he was in­
volved in a family farm operation in •

Postville Bank Marks 115th
The Postville State Bank recently®
observed its 115th anniversary. The
occasion was marked by a dinner at
the bank, which was attended by
over 700 area residents.

Colo. Graduate School
to Be Held in Boulder
The curriculum has been estab-®
lished for the 38th annual session of
the Graduate School of Banking at
Colorado, July 31-August 12. The
program consists of a two-week ses­
sion each summer for three consecu- ®
tive years, four interim correspon­
dence problems and examinations
after each session. Tuition, room
and board is $1,200. Iowa bankers
interested in the School should con-®
tact the IBA’s representative, Norm
Skadburg, President, First State
Bank, Box. #127, Webster City, IA
50595, (515) 832-2520. Registration
deadline is March 15.

1st Natl. Sioux City
Donates Mitten Tree
Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis


An 11-year tradition continued at
First National Bank in Sioux City
on December 18, when the bank pre­
sented its “mitten tree” to the Sal­
vation Army. Mittens, scarves andH>
hats were collected at all bank of­
fices and were used for the Salvation
Army’s Christmas baskets for
needy families. A special appearance
was made at the presentation by®
Congressman Fred Grandy.


Des Moines
ORWEST C orporation an­
nounced in early December that
George F. Milli•

gan, 53, regional
president of its
Iowa banking
o p erations, is
moving into a
• new post this
month as vice
chairman of Norwest Bank Des
Moines. He is
• being succeeded




as Iowa regional president and as
chairman and chief executive officer
of Norwest Bank Des Moines by
0 John C. Nelson, 43, currently re­
gional manager of a group of Nor­
west banks in the Minneapolis-St.
Paul metropolitan area in Min­
H. Lynn Horak, 41, will continue
as president of Norwest Bank Des
Moines while assuming the addi­
tional post of regional manager for
Norwest banks in Iowa outside the
^ D e s Moines area, reporting to Nel­
Federal Reserve Bank of St. Louis

Mr. Milligan said “these moves
begin the implementation of an
orderly transition of management
here in Iowa.” He initiated the
transition by informing Norwest
Corporation officials of his desire to
take early retirement at age 55 in
February, 1989.
Kenneth R. Murray, Norwest ex­
ecutive vice president and head of
its community banking group, said
Mr. Milligan “will continue to play
an important role in Iowa, particu­
larly in expansion and legislative
He said Mr. Milligan decided that
“it is in his best interest and the
best interest of Norwest that we
begin implementing his plan for the
transition of leadership in Iowa. I
have great admiration for him and
for that reason am delighted we will
continue to receive the benefit of his
counsel and years of experience.”
Mr. Murray pointed out that Norwest’s Iowa banking business repre­
sents more than 10 percent of the
corporation’s total assets and “is a
prime market for us.”
He added: “The just-concluded
acquisition of The Toy National
Bank in Sioux City, the pending ac­
quisition of Peoples Bank in Cedar
Rapids, plus continued expansion of
our credit card business, based in
Des Moines with more than 750,000
accounts, make Iowa a vital part of
our growth strategy.”
Mr. Murray said the succession
plan developed by Mr. Milligan to
ensure growth in Iowa for Norwest,
“is one measurement of the strength
of his leadership and vision. One of
Norwest’s strengths is its ability to

develop managers capable of step­
ping up and assuming new chal­
lenges. We are fortunate to have
John Nelson and Lynn Horak ready
for these challenges.”
Mr. Milligan, a former Iowa state
representative and senator, has been
with the Norwest organization since
1961. He headed the correspondent
bank division from 1974-79, was
elected executive vice president in
1979, and has served as president
since September, 1981.
A Des Moines native, he has a
bachelor’s degree in commerce from
Washington and Lee University,
Lexington, Va., and a law degree
from Drake University, Des Moines.
Mr. Nelson was born in Coos Bay,
Or., and grew up in Columbus, Neb.
He began his banking career in 1966
at Norwest Bank Omaha, where he
was senior vice president and man­
ager of retail banking when he
moved to Minneapolis in 1982 as
senior vice president and retail
banking group head at Norwest
Bank Minneapolis. In January,
1986, he was named regional man­
ager with responsibility over 13
banks in the Twin Cities metro area.
Those banks, now numbering 11,
have total assets of $ 1.8 billion.
Mr. Nelson has a bachelor’s de­
gree from the University of Kansas
and an MBA from the University of
Nebraska at Omaha. He is also a
graduate of the Stonier Graduate
School of Banking at Rutgers Uni­
Mr. Nelson is a member of the
board of directors of the Minnesota
Bankers Association and a past
director of the Minneapolis chapter
of the American Institute of Bank­
Mr. Horak joined Norwest at Nor­
west Bank Des Moines in 1972. A
native of Vinton, la., he is a gradu­
ate of the University of Northern
Iowa. He was elected president of
the Des Moines bank in January,
* * *
Donald J. Brush, CPA, vice presi­
dent in personal trust at Norwest
Bank Des Moines, was honored re­
cently by the American Institute of
Certified Public Accountants for his
outstanding contributions to his
community at the AICPA’s 100th
annual meeting in New York City.
He was named winner of the Public
Service Award by the Iowa Society
of CPAs.
Northwestern Banker, January, 1988


Iowa News

Donald J. Brush, CPA, v.p., Norwest Bank
Des Moines, receives Public Service Award
in New York City from J. Michael Cook (left),
form er chmn. of Am erican In stitu te of C e rti­
fied Public A ccountants.

Mr. Brush has been a member of
the City Council in suburban Urbandale for the past 10 years. He was
elected to a two-year term and now
is serving his second four-year term.
As a council member he helped es­
tablish fiscal policy for financial
management of the city, including
its accrual accounting systems. Ur­
bandale is one of the few cities in
Iowa recognized for its excellence in
financial management.
Mr. Brush also was on the board
of directors of the Bishop Drumm
Home in Des Moines for five years.
He is former commissioner to the
Mid-Iowa Council of the Boy Scouts
of America.
In 1985 Mr. Brush was elected
president of the Iowa Society of Cer­
tified Public Accountants, the first
time the Iowa president was not a
CPA active in private practice. He
has been active in several posts with
the Iowa Society over the past 10
Mr. Brush describes his outside
activities as “fun and my relax­



Thomas P. Killeen, 51, vice presi­
dent and manager of the Federal Re­
serve Bank of Chicago’s regional
check processing center in Des
Moines, died November 23 following
a heart attack. Mr. Killeen had been
associated with the Des Moines
RCPC since its inception in 1972. He
began his career with the Federal
Reserve Bank of Chicago as a check
trainee in 1961.
* * *
Norwest Corporation has an­

Northwestern Banker, January, 1988
Federal Reserve Bank of St. Louis

nounced that Richard J. Brinkman
has been named
chairm an and
chief executive
officer of its con­
sumer finance
unit, N orw est
Financial, Inc.,
and David C.
Wood will suc­
ceed him as pres­
ident. Mr. Wood,
also named chief
operating officer, has been serving
as senior vice president and secre­
tary of Norwest Financial.
Both promotions were effective
January 1, when Richard S. Levitt
retired as vice chairman and chief

bookkeeping and proof, and Rick q
Thuesen, vice president and control­
ler, were recognized for 20 and 15
years of service, respectively.

(Continued from page 28)
M. Wilson, legal; Anthony L. Duran,
operations; Jerry L. Ries, opera­
tions, and Tim Pitner, personal
Two officers were elected at Colo­
rado N ational B ank—Sterling:
James D. Williamson, commercial
loans, and Sandra Lee Maggard,
compliance and review.

Changes Told by United Banks



operating officer of the specialized
financial group of Norwest Corpora­
tion and as chairman of Norwest Fi­
nancial. Mr. Levitt will continue to
serve on the board of Norwest Cor­
Mr. Brinkman has been with Nor­
west Financial since 1959 and was
elected president in 1981. Mr. Wood
joined the company in 1970. He was
vice president and general counsel
before being named senior vice presi­
dent and secretary in 1984.

Honored in Waterloo
Waterloo Savings Bank honored
23 of its employees last month for
their years of service to the bank.
Recognized for 35 years of em­
ployment at the bank were Gerald
Curran, senior vice president and
cashier, and Donald N. Richards,
vice president and manager of the
Kimball office.
A 30-year service award was pre­
sented to Fred Koch, president and
CEO of Metro Bancorporation and
executive vice president of Waterloo
Savings Bank.
Elda Cole, head teller at the main
office, received a 25-year service
award. Sarah Thuesen, supervisor of

United Bank of Denver’s chair­
man and CEO, Richard A. Kirk, has ^
announced the promotion of five
employees. Suzanne C. Shailer and
R. Alan Wahlborg were named
assistant vice presidents. Therese
M. Barber was promoted to personal £
trust and investment officer, Callen
D. Borgias to commercial banking
officer and Mary Ann Geonetta to
consumer banking officer.
Meanwhile, Howard P. Doerr, ex- f
ecutive vice president and chief fi­
nancial officer of U S WEST, Inc.,
has been elected a director of United
Banks of Colorado, Inc.

CBA Board Adopts
Economic Resolution
At its November meeting, the
board of directors of the Colorado
Bankers Association voted unani­
mously to adopt a resolution regard­
ing economic stability. The resolu­
tion encouraged efforts to reduce the
federal budget deficit, to support
economic development in Colorado,
and to alleviate excessive public con­
cern over the economy.

Recognized in Englewood
First Interstate Bank of Engle­
wood has named Susie Farrell “Pro­
fessional Banker of 1987” and San-^
dra Ackerman “Teller of the Year
1987.” Ms. Farrell has been with the
bank ten years and is an accounting
assistant. Ms. Ackerman is a teller
II and has been with First Inter-£
state for over three years.


BLIND persons now have the convenience of being able to con du ct th e ir banking business 24-hours a day at all F irst Interstate Bank Day &
N ight Teller M achines in the Des M oines area. These closeups show the brai I led in s tru ctio n s on the base plate fo r sig h tle ss persons.

Des Moines’ Blind Population Now Can (Ise ATMs
ES MOINES area blind persons
now have a service available to
them that sighted persons have had
the advantage of for over 10 years.
Blind persons now have the convenience of being able to conduct their
* banking business 24-hours a day at
all First Interstate Bank Day &
Night Teller Machines (ATMs) in
the Des Moines and Urbandale area.
First Interstate Bank’s 28 ATMs
are equipped with brailled plates
that instruct the blind person in a
step-by-step sequence how to with­
draw cash, make a deposit, transfer
^ between accounts, and get a balance
w inquiry, just as sighted persons are
with visually printed instructions.
An instructional braille, cassette
tape, and a large print brochure are
^ available at no cost through the
Commission for the Blind and all
branches of First Interstate Bank in
the Des Moines and Urbandale area.
Special raised lined checks also are
0 available at all First Interstate
“The ATM,’’ says Bob Millen,
First Interstate Bank of Des Moines
president, “is definitely oriented
0 toward the sighted person. First In­
terstate Bank now welcomes the op­
portunity to offer full ATM services
to the blind population.’’
The idea for brailling the ATMs
f came from First Interstate Bank,
which worked with the Austin
Federal Reserve Bank of St. Louis

Junior Women’s Federation (AJWF)
of Austin, Texas. Margarine G. Bea­
man, community service project
chairman, worked with the blind
people in Austin to develop the de­
tailed instruction sheet that guides
a blind person through an ATM
Ms. Beaman explains, “ I wrote
down every step of every transac­
tion on the ATM machine, along
with all the corresponding audible
tones; the beeps that let you know
you have started or completed a
transaction. The notes were then
taken to a blind person to develop
and test the brailled instructions.”
AJW F’s ATM brailling project
started with the ATM machines
owned by a bank in Austin and
quickly spread to other ATM net­
works and other countries. To date,
Ms. Beaman and the AJWF are
working throughout the U.S. and 15
other countries to braille their
ATMs or work with them to make
banking more accessible.
R. Creig Slayton, director, Iowa
Commission for the Blind, said of
the new convenience. “The brailling
on the First Interstate Bank ATM is
another great step toward increas­
ing the access of commonly needed
services to the blind community. It
is much easier to learn how to use
something if there are written in­
structions. This is true for the blind,

as well as sighted persons. This new
service provided by the First Inter­
state Bank allows a blind person to
conduct his/her banking business
with total independence.”

A major Colorado-based bank'
holding com pany is currently
seeking an experienced Com­
mercial Lender to join its pro­
fessional lending staff. This
position, ata$105M M bank in
Colorado Springs, is respon­
sible forthe ongoing manage­
ment of a loan portfolio and
business development activ­
ities. The qualified individual
must have:
• M inim um 4-7 years pro­
gressively responsible
com m ercial lending
• BA degree in a Banking
related field. Formal credit
analysis training is
Please subm it your resume
and salary requirements in
strict confidence to:

Central Bank of
Colorado Springs
P.O. Box 15008
^Colorado Springs, CO
Equal Opportunity Employer

Northwestern Banker, January, 1988

W eK nowTheM y
To Greener Pastures.
Today’s financial world can be a lonely
place for a banker. And now more than
ever, it takes a strong financial leader to help
you make the most of your chosen path.
At Norwest Banks, we have the
experience to keep you moving in the right
direction. We’ve strengthened our
commitment to correspondent banking.
And when you call on Norwest, we make
that commitment work for you.
We can provide the service you need to
serve your marketplace—no matter how big
or how small. So whether you need bank
acquisition financing, data processing, cash
letter services, or investment alternatives,
we’ll work with you to find the best
Talk to us today about our full line of
services. When it comes to correspondent
banking, we know the way ■

We Know The Way We Are Norwest.
Members FDIC
Federal Reserve Bank of St. Louis