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Wyoming National Air Guard

Convention reports:
Colorado • Illinois • Minnesota • North Dakota • Wyoming
Federal Reserve Bank of St. Louis

Meet our
Investment Bankers
who make MNB
work for you.

Donna Lewis

Dennis Haines

Mickey Helgert

Assistant Vice President

Every investment department should be this dedicated. You can be sure that you ’re
getting professional, personal assistance with your investment portfolio when you call
Dennis, Donna or Mickey at MNB. They have the experience to analyze and advise
you on your investment options. Everything including U.S. Treasury securities,
municipal bonds, commercial paper, odd lot purchases, repurchase agreements and
MNB C.D.’s are available through this department. Visit our offices or call, toll free,
this number — 800-332-5991.

Make sure you get the best by calling one of MNB’s Correspondent Banking Professionals.

John E. M angold

Terry Martin

Jerry N. Trudo

Dale C. Froehlich

Stan R. Farmer

Vice President



Vice President

Vice President

(319) 3 9 8-4 313

(319) 39 8 -4 3 2 0

(319) 39 8 -4 3 0 6

(319) 39 8 -4 3 1 4

(319) 3 9 8-4 217
Federal Reserve Bank of St. Louis

American Express
doesn’t go hom e at
five oVlock.
We’re there
when your customers
need us.
Whether it’s 3 am in Arizona
or 11 pm in N ova Scotia, your
customers can find help if
their travelers cheques are lost
or stolen.
Because by simply calling
us tolbfree, they can arrange
for an Emergency Refund® at
participating Holiday Inns
throughout the U .S. and
Canada. A refund o f up to $100 to
tide them over until
normal business hours resume
—when they can get the
balance o f their refund.
American Express® Travelers
Because our refund system
doesn’t go home at 5 o ’clock,
your customers
can get refunds
around the clock.

A m erican Express
Travelers C heques
Federal Reserve Bank of St. Louis


JULY 1980 • 87th Year No. 1402

tV H


Independence Day bringsatime for nostalgic remembrance of the flags that have
symbolized America’s greatness during its first two centuries of history. One of
the leading groups to tell the history of the American Flags through the decades,
and what each flag has symbolized, is the Wyoming National Air Guard, pictured
on the front cover by the Northwestern Banker. The Grand Teton mountains in
famed Jackson Hole, Wyo., form a backdrop for this well-drilled group’s histor­
ical flags.


17 Build new— or remodel
Jerry Gross discusses this economic dilemma

19 Security review is vital
LeFebure’s C.F. Cummins outlines six-step procedure

20 Checklist for community banks
Mosler’s Thomas J. Murphy looks at security items

23 Trends in design
Bank Building’s Raymond E. Rogers describes custom design

24 Setting priorities for automation
Wm. Ferrara reviews necessary procedures





Bank Promotions
Corporate News
Twin Cities
South Dakota
Des Moines
Advertisers’ Index

North Dakota

30615th Street, Des Moines, Iowa 50309

Phone (515) 244-8163



Business Manager

Malcolm K. Freeland

Ben Haller, Jr.

Mike Freeland

Associate Editor
Deborah Peck


Field Representative

Field Representative

Debbie Hibbert

Glen Hicks

Paul Masters

N o . 1 402 N orth w estern B a n k er ( U S P S 3 9 7 -6 2 0 ) is pu b lish ed m o n th ly b y th e N orth w estern B a n k er C o m p a n y , 3 0 6 F ifteen th S tre e t, D e s
M o in e s, Io w a 5 0 3 0 9 . S u b scrip tion $ 1 .0 0 per c o p y , $ 1 2 per y e a r. S econd cla ss p o s ta g e p aid at D e s M o in e s and at ad d itional m a ilin g office.
A d d r e ss all m ail (su b scrip tion s, ch an g e o f address F o rm 3 5 7 9 , m a n u sc rip ts, m ail item s) to a b o v e ad d ress.

Banker, July, 1980
Federal Reserve Bank of St. Louis


Get to know
your Commerce

Frampton Rowland
joined Commerce in 1963
after studying at Indiana
University, Oklahoma and
K-State, and stints with the
U.S. Army Medical Corps
and a large finance
company. Now he’s an
experienced Calling Officer
for our Correspondent
Department. Whatever
your needs, Frampton
Rowland can help.

Michael Brixey of our
Correspondent Department
worked as an FDIC Senior Bank
Examiner before joining the
Commerce system in 1977.
Michael relaxes with golf,
fishing, hunting and
archery. He knows all
phases of
banking— loans,
operations and
When it comes to
correspondent banking,
Michael Brixey can
do the most for

H.C. Bauman went to William Jewell
College. Before joining Commerce in
1975, he was chief executive officer of
a Kansas City area bank. Today, he’s
Manager of our Kansas and Oklahoma
Groups. This former Air Force captain
enjoys racquetball and tennis, as well
as helping you with all your
correspondent requirements. Look for
him soon.

We’re the leading correspondent bank in the Midwest.

W hat can we do for you?

# Commerce Bank of Kansas City

10th &
Federal Reserve Bank of St. Louis

n . c n o j orvnn


Northwestern Banker, July, 1980


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

National Conventions & Schools
July 13-19— ABA National Compliance
School, University of Notre Dame, Notre
Dame, Ind.
July 19—AIB Dist. 10 Leaders Conference,
Radisson-St. Paul, St. Paul, Minn.
July 19—AIB Dist. 11 Leaders Conference,
Ramada Inn (Airport), Milwaukee, Wis.
July 20-25— Midwest Banking Institute Pro­
gram for Agricultural Bankers, University
of Minnesota, Morris.
July 20-26—ABA National School of Bank
Card Management, Northwestern Univer­
sity, Evanston, III.
Aug. 10-15— Graduate School of Banking
Postgraduate Course, University of Wis­
consin, Madison.
Aug. 10-23— Graduate School of Banking
35th Annual Session, University of Wis­
consin, Madison.
Aug. 20-22—Conference of State Bank
Supervisors Dist. IV Meeting, Badlands
Motel, Medora, N.D.
Aug. 31 -Sept. 3— IBAA 13th Seminar-Work­
shop on Bank Ownership, The Drake
Hotel, Chicago.
Sept. 7-9— ABA Mortgage Marketing and
Investor Relations Seminar, Fairmont
Hotel, Denver.
Sept. 14-17— ABA National Bank Card Con­
ference, New York (City) Hilton.
Sept. 14-17— BMA 65th Annual Conven­
tion, San Francisco Hilton, San Fran­
cisco, Calif.
Sept. 14-26—ABA National Instalment
Credit School, University of Oklahoma,
Sept. 21-24—ABA National Personnel Con­
ference, Olympic Hotel, Seattle, Wash.

Sept. 22—ABA IRA Workshop, Hyatt Re­
gency O’Hare, Chicago.
Oct. 5-8— NABW Annual Convention,
Washington, D.C.
Oct. 11 -15—ABA 106th Annual Convention,
Oct. 19-23— IBAA Bank Executive Develop­
ment Seminar, Ball State University,
Nov. 5-7—ABA Central Regional Work­
shop, 1980 Operations/Automation Divi­
sion, Hyatt Regency Indianapolis, Ind.
Nov. 9-12— RMA 66th Annual Fall Confer­
ence, Stouffer’s Riverfront Towers, St.
Louis, Mo.
Nov. 9-12— ABA National Agricultural
Bankers Conference, Loew’s Anatole,
Dallas, Tex.
Nov. 9-20—ABA National Commercial
Lending School, University of Oklahoma,
Nov. 16-18—ABA National Correspondent
Banking Conference, Hyatt Regency, At­
lanta, Ga.
Feb. 15-18— ABA Community Bank Execu­
tives Conference, Hyatt Regency Phoe­
Mar. 22-24— ABA National Credit Confer­
ence, Chicago Marriott.
Mar. 22-25— ABA National Instalment
Credit Conference, Los Angeles Bonaventure.
Mar. 22-26— IBAA 51st Annual Convention,
Las Vegas Hilton, Las Vegas, Nev.
May 31-June 3—ABA National Marketing
Conference, Fairmont Hotel, Denver.
Sept. 13-16— ABA National Personnel Con­
ference. Loew’s Anatole, Dallas, Tex.
Nov. 8-11—ABA National Agricultural
Bankers Conference, Sheraton Washing­
ton, D.C.

State Conventions & Schools
Aug. 3-15— CBA School of Banking, Uni­

AIB Moves to National Reorganization
to the N ation a l
American Institute of Banking
Leaders Conference recently voted
overwhelmingly for a new national
structure. The announcement of the
results by AIB Past President Ken­
neth Koval came after three days of
active campaigning by various chap­
ters representing both pro and con
views of the issue.
The r e o rg a n iz a tio n ca lls for a
N a tion a l A IB A d v iso ry C ou n cil,
headed by a nine member executive
committee. In addition, the plan calls
for shifting the present structure from
12 regions to six.
B. Mott Jones, newly installed presi­



Banker, July, 1980
Federal Reserve Bank of St. Louis

dent of AIB, told the delegates that his
first order of business would be to
name a group to monitor the reorga­
nization efforts. Mr. Jones is manager
of the employe relocation service in the
mortgage loan division of First Ten­
nessee Bank, N.A. in Memphis. Mr.
Koval, who stepped down as president,
is assistant vice president of The Colo­
nial Bank of Waterbury, Conn.
The reorganization plan for the AIB
is the result of concentrated efforts on
the part of its leaders to increase the
effectiveness of this major educational
organization. The plan, which was
approved earlier by the AIB national
leadership, is based on the recognition

versity of Colorado, Boulder.
Sept. 17-20— Independent Bankers of Colo­
rado 7th Annual Convention, The Lodge,
Aug. 1 7-23— IBA Consumer Lending
School, Eastern Illinois University,
Nov. 19-20— IBA 35th Annual Bank Man­
agement Conference, Holiday Inn, De­
July 17-19— Iowa Independent Bankers 9th
Annual Convention, The New Inn, Lake
Aug. 11-15— Iowa Instalment Lending
School, Drake University, Des Moines.
Sept. 21-23—94th Annual Convention, Civic
Center, Des Moines.
Oct. 20-22— Minneapolis AIB and MBA
Consumer Compliance Seminar, Minne­
apolis Hilton Inn.
North Dakota:
Sept. 17-19— Ind. Comm. Bankers of N.D.
Annual Convention, Ramada Inn, Minot.
Oct. 6— NDBA Northeast Group Meeting,
Devils Lake.
Oct. 7— NDBA Northwest Group Meeting,
Oct. 8— NDBA Southwest Group Meeting,
New Salem.
Oct. 9— NDBA Southeast Group Meeting,
Valley City.
Oct. 21-22— Bank Women’s Conference,
Seven Seas Motor Inn, Mandan.
Nov. 18-19—Agricultural Credit Confer­
ence, Ramada Inn, Minot.
South Dakota:
Sept. 8— Group 5, Turgeons, Central City.
Sept. 9— Group 4, Citizens Bank, Mobridge.
Sept. 10— Group 3, Holiday Inn, Watertown.
Sept. 11— Group 2, Holiday Inn, Mitchell.
Sept. 12— Group 1, Westward Ho, Sioux
Oct. 22-23— SDBA Economics Seminar,
Holiday Inn, Mitchell.
Oct. 9-10— Instalment Credit Conference,
Sheraton Hotel, Aberdeen.

of three principle needs:
• Better relationship with and sup­
port from bank management.
• A broader cross-section of bankers
in AIB a d v isory and d e cisio n ­
making bodies.
• Better com m unication and coor­
dination among AIB chapters and
study groups and between these
groups and the national organiza­
It is the expectation of the AIB lead­
ership that the new structure will im­
prove the educational delivery system
provided by the American Bankers
Association to the banking commu­
nity. At present the ABA, through the
AIB, meets the industry educational
needs of 250,000 bankers annually.


W ant cash in Seattle
the sam e business day?
G o hire a superman.

Cash availabilities. M ost m oney center banks
talk a big game. But start to pin them dow n.
Inquire about schedules. Ask if your cash letter
with items on Seattle, Atlanta, N ew York or
Topeka banks can be available the same day. And
the brags and boasts will start to fade.
You’ll hear, “ Hey, you don ’t need us. Call a
superm an’.’
Funny, at Continental Bank, w e don ’t think
sam e-day cash availability is an act of heroism.
To us, it’s business as usual. But then, yve happen
to have one of the best schedules in America.
Part of it is luck. W e’re in Chicago, the
nation’s transportation hub. The other part is

good planning, good technology and good oldfashioned hard work. W e have tw o helicopters
for continuous mail pickup. An exclusive zipcode. And non-stop, 24 hour-a-day processing.
W e present checks for collection to 400 endpoints
daily, 250 of w h ich are direct sends.
Frankly, on speed alone, w e generally beat the
Fed hands down. And not many banks can say that.
Let us show you h ow your availability could
be better. Call John Tingleff at (312) 828-2191. Our
correspondents get the best there is.
It’s what you expect from a top correspondent
At Continental Bank, it’s reality.

Continental Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60693
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980



Official Supplier of
Electronic Scoreboards
to the 1980 Olympic
Winter Games

m o u n t a in



100% solid state. Custom
designed. Attached to your
building or free standing.

Daktronics has taken the service expense
out of message displays with 100% solid
state electronics. Our engineers will
custom design a display to enhance the
architecture of your building and will
provide a color drawing and quote at no
cost. Call or write for details today.



Box 299 Brookings, SD 57006
Phone 605-692-6145

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Bank Promotions

ROMOTIONS and other changes
have been announced by the fol­
lowing banks:


Continental Illinois Corp., Chi­
cago: The company has announced
the formation of a new corporate treas­
ury to centralize its funding, trading
and risk management activities, and
the election of David G. Taylor as ex­
ecutive vice president and treasurer.
Mr. Taylor, formerly executive vice
president and head of the bond and
money market services, will continue
to report to Donald C. Miller, vice
chairman and chief financial officer.
The corporate treasu ry w ill be
headed by Robert D. McKnew, vice
president, and will be a new division in
a newly-nam ed bond and treasury
services department, formerly named
bond and m oney m arket services.
Mr. McKnew was formerly manager
of the portfolio and money manage­
ment division.

board, including:
Banking department: Norman L. *
Cavedo Jr., Bertrand W. Ellis and
Fred K. Stewart, vice president; John
F. K lopp, petroleu m en g in eerin g t
T rust dep artm en t: M ich a el M. -<
Harshbarger and George M. Rich­
mond, vice president; George T. Drake *
and David T. Pence, second vice pres­
id e n t; C a ro l A . A n to s , C o rin n e
McClintic and Janelle Simmons, trust *•
Bond department: Robert R. Gann,
Albert C. Hoyle, William H. Kesler A
and David E. N ickel, second vice
B uilding departm ent: Linus M.
Zinthefer, building officer.
O p eratin g dep artm en t: Joan n e >
Dubec, Beverly M. Glenn, Tzu-Chen
Lee, Philip Murchie and Diane Waller,
operations officer; Thomas S. Maddaleni and Lois E. Palucki, systems

Federal Reserve Bank of Chi­
cago: Nancy M. Goodman has been
named inform ation services officer
and will head the newly-created in­
formation services department. She
has been with the Chicago Fed since
1968 and was an economist in the re­
search d ep a rtm en t b e fo re b e in g
named public information coordinator
in 1976.

Com m erce B an csh ares, Inc.,
Kansas City, Mo.: Gary L. Peters has
been named a vice president. He had
served as president of Commerce Bank
of St. Joseph since 1977, joining the
organization in 1963 in the holding
company’s management trainee pro­
gram. Mr. Peters has a BA degree
in econ om ics from K an sas S tate

The First National Bank of Chi­
cago: Christopher Skaar, vice presi­
dent and head of
m a rk etin g sup­
port group in the
cash m a n a g e ­
m e n t d iv is io n ,
has a n n ou n ced
the appointment
of John P. Finerty
as vice president
and head o f the
in t e r n a t io n a l
cash m a n a g e­
ment unit. Mr. Finerty was formerly
with Continental Bank for IIV 2 years
where he had a wide range of operat­
ing responsibilities. He com pleted
several overseas assignm ents and
most recently was in the international
cash management division.

Commerce Bank of Kansas City,
N .A .: David W. Kem per has been
named senior vice president in charge
of planning. He joined the bank in
1978 as a vice president and managing v
officer of the metropolitan division of
the commercial banking department.
He has a BA degree from Harvard
University, an MA from Oxford Uni­
versity and an MBA from Stanford *
University, and was formerly associ­
ated with Morgan Guaranty Trust y
Company of New York.
Richard E. McEachen, who became
trust division manager in May, 1979,
and executive vice president of the
bank in January, was elected advisory
director of the bank.
Two directors have been elected to
the bank’s board, William S. LaLonde
III and R o b e rt L. P u rd u m . M r.
LaLonde is president and chief execu­
tive officer of The Gas Service Com­
pany. Mr. Purdum is vice president of
Kansas City Products of Armco, Inc.

The Northern Trust Company,
Chicago: Several changes in the offi­
cial staff have been approved by the




The Iowa Team
of the Harris Bank.

Jim Hill, Dick Ristine, and Tom Martin are the
Harris Bankers who travel in Iowa. They are
dedicated professionals. But, best of all, they’re
backed by management that is truly committed to a
winning effort.
When questions or problems arise, call Jim,
(312) 461-2745; Dick, (312) 461-2747; or Tom,
(312) 461-7512. They and their friend will get you the
help you need.
You should have a Harris Banker.®

Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60603. Member F.D.I.C., Federal Reserve System.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980

Manufacturers Hanover Trust
Co., New York: Irwin L. Kellner,
senior vice president and economist,
has been appointed to succeed the late
Tilford C. Gaines as officer in charge of
the economics department and to func­
tion as its chief economist.
Dr. Kellner joined the bank as an
associate econom ist in 1970, was
elected vice president in 1972, deputy
economist to Mr. Gaines in 1973 and
senior vice president in 1978.
John K. McKinley, president and
chief operating officer of Texaco, Inc.,
has been elected a
director o f both
M a n u fa c tu r e r s
H a n o v e r C orp.
and M a n u fa c ­
turers H anover
T ru st. M r. M c­
K in le y jo in e d
Texaco in 1941.
He was selected
to succeed Mau­
j . K. m c k in l e y
rice F. Granville,
chairman and chief executive officer,
w h en M r. G r a n v ille r e t ir e s on
Nov. 1, 1980.
M organ G uaranty Trust Co.,
New York: The election of Harrison
Smith as chairman of the trust and
investment committee was announced
by Lewis T. Preston, chairman of the

board. The committee’s role has been
expanded and its chairmanship has
been made a separate position, accord­
ing to Mr. Preston.
Mr. Smith had been chairman of the
committee as well as executive vice
president in charge of the trust and
investment division. He will be suc­
ceeded in that position by David L.
Hopkins Jr., currently a senior vice
president and deputy head o f the
The Boatmen’s National Bank of
St. Louis, Mo.: Donald N. Brandin,
chairman and chief executive officer,
has announced the election of Richard
L. Niedling as vice president in the
commercial banking division. Most
recen tly Mr. N ied lin g was senior
account officer with Citicorp Indus­
trial Credit, Inc. in St. Louis.
First National Bank in St. Louis,
Mo.: Six officers were recently elected,
including: David B. Groves, manager
of the currency and express depart­
ments, and Keith R. Hattie, supervisor
in computer processing, operations
officer; Shirley L. Heller and Donald L.
Weber, bond investment officer; Shir­
ley H. Lane, supervisor in the Execu­
tive Financial Center, personal bank­
ing officer, and Margaret L. Bell, data
processing officer.

Harris Bank Announces New Departments
HE Harris Bank, Chicago, has
announced plans to split its ex­
is tin g b a n k in g
department into
two departments.
In the major re­
alignment, effec­
tive July 1, a new
national banking
d ep a rtm en t,
headed by John
A. Sivright, sen­
ior vice president,
will be created, as
well as a metropolitan banking depart­
ment, headed by Ben T. Nelson, senior
vice president.
The bank also announced formation
of another new unit, combining the
credit services division and the inter­
national banking group. It will be
headed by Philip A. Delaney, senior
vice president and chief credit officer.
The three new units will report to B.
Kenneth West, present banking de­
partment head, who will become presi­
dent of the bank July 1.


Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Mr. Sivright previously headed the
bank’s Chicago group, corporate lend­
ing unit serving Chicago area corpora­
tions. He joined Harris in 1954. His
new department will include commer­
cial banking activities, correspondent
banking services, financial counsel­
ing, cash management, and financial,
commercial real estate and commod­
ities lending.
Mr. Nelson, who also joined Harris
in 1954, has been head of the bank’s
metropolitan group. His new depart­
ment will encompass all of the con­
sumer banking activities, charge cards



and middle market corporate banking
services. It will also include Harriscorp
Leasing, Inc.
Besides heading the combined credit
and international banking functions,
Mr. Delaney will be chairman of the
senior credit and senior credit interna­
tional committees. He joined the bank
in 1952 and was named chief credit
officer this year, following the retire­
ment o f E xecutive V ice President
Kent W. Duncan.

Says Interest Rate
Decline Will Slow
Harry Taylor, vice chairman, Manu­
facturers Hanover, New York, recent­
ly said that he doubted that the decline
in interest rates "will continue at any­
thing like its present rate, if for no
other reason than the markets already
have discounted the steep drop in the
money supply—which the Fed clearly
has not wanted and which it will be
working to reverse.”
In remarks prepared for an address
to the Financial Women’s Association
of New York, Mr. Taylor said that the
wide swings in interest rates "were
more or less exactly what the Federal
Reserve promised back in October
with a new policy o f paying more
attention to monetary aggregates than
the relative level of interest rates.”
He noted that rates might again be
in danger of falling below the real rate
o f inflation, w hich "w ill serve as
another inducement to borrow and
could put pressure on the dollar in in­
ternational markets.
"The rise of rates in some countries
such as Germany and the steep decline
in the U.S. now offers the internation­
al investor little incentive to stay in
dollars,” he added.

New Premium Offered
At Continental Bank
Continental Bank, Chicago, is offer­
ing customers a new premium that
saves money for the consumer two
ways— in his bank account and at var­
ious retailers.
Continental is offering the K ey
Purchase Savings Plan "Smart Money
Coupon Book” to customers who de­
posit $500 or more in new or existing
Continental savings accounts.
"W hat makes this offer unique,”
said William D. Plechaty, senior vice
president for personal banking serv­
ices, "is that the book brings together
savings, some up to 40%, for products
and services from m ajor C hicago

X L 1C

Like silent sentries, LeFebure surveillance
and alarm systems help defend your
operation from security threats.
B eca u se th ere's n o w a y o f k n o w in g
w h e n o r w h e r e cr im e s m ig h t o c c u r at
y o u r fin a n cia l in stitu tio n , y o u n e e d the
se cu rity p r o v id e d b y L eF ebure su rv e il­
la n ce a n d alarm s y s te m s . T h e y 'r e the
P r o te c to r s — th e in d u s tr y 's m o s t a d ­
v a n ce d , co st-e fficie n t secu rity system s.
L eFebure Closed Circuit Television is
a p ro te cto r w h o s e a tten tion n e v er w a v ­
ers. It's o n the jo b 2 4 -h o u rs a day, ev ery
d a y to p r o v id e y o u w ith fu ll-tim e su r­
veilla n ce o f the p rem ises and im m ed iate
p h o to e v id e n c e in the ev en t o f a robbery.
You also have records o f e v e ry d a y crim es
su ch as forgeries and b a d ch ecks.
T h e L e F e b u r e Central Station/
Proprietary Alarm System is a p rotector

o f b roa d capab ilities. It n ot o n ly p rov id es
su rv eilla n ce an d con trols alarm s, b u t it
s im u lta n e o u s ly gath ers data, p ro ce ss e s
e v e n ts a n d s to r e s in f o r m a t io n fro m
branch op era tion s as w ell.
The LeFebure Modular Alarm System
is a p ro te cto r w ith e x ce p tio n a l g ro w th
p o s s ib ilit ie s . Start w ith a sm all alarm
sy stem a n d a d d o n c o m p o n e n ts as y o u
g ro w . T h e M o d u la r S y stem can i n c o r ­
porate e v e ry k in d o f se n s in g , trig g erin g
and re sp o n d in g d ev ices.
Talk to a L eF eb u re S ales E n g in e e r
s o o n a b o u t y o u r s e c u r it y s y s te m re ­
q u irem en ts. You n e e d all the p ro te ctio n
y o u can g et a n d L eF eb u re has all the
protection expertise y o u n eed.

Central station/proprietary alarm system

: Modular alarm system

Division of Walter Kidde & Company, Inc.

Cedar Rapids, Iowa 52406
Federal Reserve Bank of St. Louis

Manufacturer’s McGillicuddy:

Bank Profitability Must Be Improved
i i TT he days of relying on a growth
in volume to achieve steady in­
creases in bank
earnings may be
la r g e ly b e h in d
us,” says John F.
M c G il l i c u d d y ,
c h a ir m a n a n d
president, Manu­
fa c tu r e r s H a n ­
over Corporation.
In remarks de­
liv e re d in N ew
York at the OpMcGILLICUDDY
erations and Automation Conference
of the American Bankers Association,
Mr. McGillicuddy said that much is
heard about the concept o f "productiv­
ity” and the many ways to define it.
"But to my mind,” he said, "it comes
down to a sin gle m easu rem en t—
how much we earn on each dollar
employed. In short, rate o f return
on assets.”
To improve that rate o f return— or
"to increase the productivity of all of
our resources,” Mr. McGillicuddy said

For Installm ent Loans

• Autom ated
• Manual



call or write:

T K 7 G.D. VAN
1678 Northwestern Bank Bldg.
Minneapolis, MN 55402
(612) 333-2261

V______ _________J

Banker, July, 1980
Federal Reserve Bank of St. Louis

that programs must increasingly shift
from short-term efforts to control ex­
pense to broader, strategic efforts to
improve profitability.
"The starting point should be a
rigorous appraisal of an individual in­
stitution’s strengths and weaknesses,
its market position and its objectives,”
he said. "And involved in this should
be the resolve to resist the temptation
to imitate the fellow down the block
or to follow the fads and fashions of
the moment.”
Acknowledging that one trend in
banking has been a decline in profita­
bility as measured by rate of return,
Mr. McGillicuddy said, "But this is not
the same as saying that we are dealing
with a declining industry. Quite the
contrary. In fact, many of our presentday problems are the problems of prog­
ress and not poor performance.”
He pointed out that the banking in­
dustry just completed "the greatest
period of growth in its history” yet the
"rapid runup in footings has itself con­
tributed to declining profitability,” in
that each dollar of capital is now sup­
porting a much larger volume of new
business and the bank’s rate of return
on assets, as w ould be expected,
has declined sharply over the past
10 years.
He added, "with purchased funds
now accounting for 85% or more of
total deposits, there is far less room for
maneuvering than when the percent­
age of purchased funds represented
30% (in 1970).”
Maintaining that corporate treasur­
ers are placing increased importance
on operations-based, non-credit serv­
ices, and that these services "represent
one of the only sure ways a bank can
distinguish itself from its competi­
tors,” MHC’s chief executive said that
a bank has to pick its spots, or carve
out special markets.
"A sorting out process is taking
place within our industry— one aimed
at moving to where the returns are
greatest, where the most optimal em­
ployment of resources can be realized,”
he said. "N o bank can afford any
longer to be all things to all people,
and this is particularly true in the
area of noncredit services, where the
investments are large and the lead
times long.”
He emphasized that, "operations
and marketing units must continually

interact. That partnership we have all
spoken about for years must exist as a
matter of course. For without it, we
will end up investing in services or
markets we do not want. Or, at the
other end of the scale, promising serv­
ices we cannot provide. In short, opera­
tions managers must play a prominent
role in any strategic planning a bank
Mr. M cGillicuddy concluded that
people can be a bank’s competitive
edge or its reason for failure. "We are a
people-oriented industry involved in
relationships with our customers as
opposed to a transaction based kind of
business, he said. "That implies long­
standing relationships, the care and
feeding of customers, a due regard for
one another and an atmosphere in
which friendships will flourish.”

Customers Will Shape
Bank Of The Future
Staying competitive by meeting cus­
tomer needs will create a new style of
banking in the 1980s, according to
Alan J. Weber, president o f Corre­
spondent Resources, Inc., a subsidiary
of Citicorp.
Speaking at the National Opera­
tions and A utom ation Conference,
sponsored by the American Bankers
Association at the New York Hilton,
Mr. Weber said that commercial banks
will be making far-reaching organiza­
tio n a l, m a n a g e ria l and sy stem s
changes in the 1980s to meet competi­
tion from non-bank organizations anc
foreign banks as well as competition
created by new government rules and
Nearly all bank services in the fu­
ture will be performed "electronically
in most major cities of the world, let­
ting customers take their accounts
with them w herever they go,” he
"Electronic banking,” he said, "will
be the key to increasing the banking
industry’s ability to distribute its serv­
ices. The cost per transaction at an
electronic banking center today is half
that of the conventional branch.”
Mr. W eber pointed out that his
bank’s experience has shown that in
many cases customers preferred auto­
matic teller machines over the human
variety. "Over 85% of the customers
who have used the automatic teller
machine once have used it again. And
it is not uncommon to see people in line
to use the machine even when there
are no queues at the teller windows,”
he said.


This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
The offering is made only by the Prospectus.


June 16,1980

$ 250,000,000

10% % Notes Due 2010

Price 100%
plus accrued in te re st, if any, from Ju n e 20, 1980

Copies of the Prospectus m ay be obtained from the undersigned.

The First Boston Corporation
Federal Reserve Bank of St. Louis

Salomon Brothers

Northwestern Banker, July, I960


ROMOTIONS and other changes
have been announced by the fol­
lowing firms:


Aetna Business Credit, Inc., East
Hartford, Conn.: Mei-Ling Liu has
been named a loan analyst in the Min­
neapolis region office, according to
John Turek Jr., regional vice presi­
dent. A native o f Taiwan, Ms. Liu will
be responsible for reviewing the col­
lateral and financial status of borrow­
ers throughout the region as well as
conducting audits of clients.
Brandt, Inc., Watertown, Wis.:
L a w re n ce E. J o h n s o n h as b e e n
appointed Brandt’s fourth president.
Mr. Johnson, who joined the firm last
September as executive vice president
in charge o f marketing, replaces E.
James Quirk who served as president



for the last 20 o f his 35 years with
Brandt, and is now chairman and chief
executive officer.
Mr. Johnson, who was also named
chief administrative officer, previously
was president of Utility Products Com­
pany, Milwaukee. Prior to that he was
manager of marketing at Honeywell,
Inc., Minneapolis.
Mr. Quirk succeeded his father as
president o f B randt in 1960. His
grandfather, E.J. Brandt, founded the
firm in 1890. Mr. Quirk joined the firm
in 1945 and progressed through man­
ufacturing, sales and management
Other top management changes in­
clude the appointment of Claude C.
H eld II, vice p resid en t-leg a l and
secretary, to vice president-adminis-



"Accepted Sale Registers by Bank
Clerks Everywhere"


thf: a c o r n

w r it e

printing g o

Oa kla nd, Iowa

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


tration, secretary and general counsel.
Charles J. Wallman, who has served in
various vice presidential positions
since 1960, was named vice presidentcorporate development.
Robert C. Ryder has been appointed
se n io r m a n u fa c tu r in g e n g in e e r,
according to W il­
liam F. Kraemer,
senior vice presi­
d e n t -m a n u fa c ­
turing. Mr. Ry­
der, a graduate
o f th e G en era l
Motors Institute,
w as fo r m e r ly
process engineer
for th e H a rle y
Davidson Motor
Company. He is a Milwaukee native.
Diebold, Incorporated, Canton,
Ohio: Tim othy M. Stock has been
appointed director of software develop­
ment, and Noel Blaine Page has joined
the firm as a sales representative.
Mr. Stock, who joined the firm in
1970, will be responsible for all new
software systems development associ­
ated with Diebold’s Automatic Bank­
ing Systems, including terminal, con­
troller and mainframe applications.
Mr. Page will work out of the Salt



Lake City branch selling ATMs, driveup windows, vault doors and security
equipment. He was previously with
the Burroughs Corp.
Florida Software Services, Inc.,
Orlando: David A. Rioux has joined
the firm as group manager-profes­
sional seminars responsible for semi­
nars on a wide range of banking topics.
He had been director o f technical
education at the Bank Administration
Institute, Park Ridge, 111., since 1978
and previously was a vice president at
the Connecticut Bank & Trust Co.,

General Electric Credit Corp.,
Stamford, Conn.: Jacques A. Robin­
son has been nam ed m anager o f
strategic planning and business de­
velopment and elected a vice presi­
dent, according to John W. Stanger,
president and chief executive officer.
Mr. Robinson will be responsible for
developing and im plem enting new
business opportunities and strategic
plans. He was formerly manager of
operational p la n n in g for G E C C ’s
commercial and industrial financing
Walter E. Heller & Company,
Chicago: Zeno S. W isniewski has
been appointed assistant vice presi­
dent, electronic data processing. He
had been assistant controller in the
corporate accou n tin g departm ent
since 1979, and is now responsible for
coordinating the activities of the data
processing departm ent with those
of the other operations within the
Mr. Wisniewski, who was with Hel­
ler from 1971-74, rejoined the com­
pany in 1978. In the interim, he was
chief systems engineer for the Chicago
Board of Education. He is a graduate of
DePaul University.
LeFebure, Cedar Rapids, Iowa:
S te v e n J. C h a m p e a u h a s b e e n
appointed sales
engineer. He will
be operating out
of the Minneapo­
lis b ra n ch and
concentrating on
p ortion s o f the
c ity an d a 13co u n ty m a rk e t
north and west of
it. A Minneapolis
r e s i d e n t , M r. S. J. CHAMPEAU
Champeau has been with LeFebure for
a number of years.
North Central Life Insurance
Co., St. Paul, Minn.: Melvin Klein
has joined the company as an account
representative for the Sioux Falls,
S.D., marketing center, according to
Walter A. Griffin, senior vice president
and director of sales.
Mr. Klein will represent a full line of
North Central’s products available to
customers of banks and lenders in the
area, and will report to Russell D. Eng,
manager of the marketing center. He
was form erly athletic director and
head basketball coach at Augustana
College in Sioux Falls.



Up until now,
m ost travelers cheque presentations
w ere pretty predictable.
If you’ve been sleeping
through travelers cheque
presentations over the last
fifty years, you haven’t
missed much. Because until
recently, most travelers
cheque companies offered
you the same kind of

cheques; same kind of pack­
aging. And the same old
compensation plans.
But now, First Chicago has
a travelers cheque system
worth waking up for. We’ve
changed the travelers cheque
business from the bottom line
up. To give you customized
cheques!" Innovative

packaging. Streamlined
operations. And a profit
structure that will really open
your eyes.
If you haven’t talked to us
lately, call us today at (312)
732-7103. After all, hasn’t
your travelers cheque
business been sleeping long

W e ’re changing the travelers cheque business from the bottom line up.

First Chicago Cheque Crkrrirk,,atirkri
A subsidiary of


♦Minimum quantity and volume restrictions apply for custom identification.
Federal Reserve Bank of St. Louis


Financial Corp.


Asset Power.

G et m ore m ileage out of each dollar.

Your clients’ assets can secure a tailor-made
revolving credit line. Accounts receivable,
inventories, machinery, equipment, land and build­
ings can be turned into Asset Money™ It’s the
smoothest route for companies short on working
capital, those looking toward expansion or growing
firms eager to increase sales. Or money for
buy-outs, mergers and acquisitions.
Bank participations.
Banco Financial Corporation can help get your
clients off to a great future with Asset Money
Contact Clarence Adams, Lee Mork, Robert Olson,
or Paul Weingart, (612) 372-7988, 830 Northwest­
ern Bank Building, Minneapolis, Minnesota 55402.

Clients with considerable working capital may wish
to conserve it by leasing needed equipment.
Decide on a Lease Purchase Contract with a
guaranteed purchase option at the end of the term.
Go with a leverage lease or purchase
equipment outright.
Whatever your clients’ business, whatever the
equipment they need — Lease Northwest, Inc. has
the financing options that put it to work.
Contact Dave Michael in Minneapolis at
(612) 372-7416, Roger Meier in Omaha at
(402) 536-2310, Jim Sheedy in Des Moines at
(515) 245-3392, or Chris Hoss in Fargo at
(701) 293-8136

Financial C orporation
An Affiliate of Northwest Bancorporation

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis



E co n o m ic dilem m a for b an k s—

B uild n e w — or r e m o d e l?

Written Especially for
T he N orthwestern B anker

Kirk Gross Company
Waterloo, Iowa

HE daily news from Washington,
the ever changing prime rate,
government controls that hurt your
farm customers, problems overseas,
availability of funds and the upcom­
ing election are all reasons for concern
today. But bankers do not limit their
views to today’s problems; they plan
and build for the future.


No banker remodels or builds a new
building as a whim. He does it be­
cause he is overcrowded, has little or
no drive-up capabilities, has no pri­
vacy for his customers, can’t rent any
safety deposit boxes as his vault is
too small or finds that his present
layout is inefficient. In general, he
considers remodeling or building be-

INTERIOR styling in keeping with the overall design of the bank was carried out by Kirk
Gross Co. with this remodeling job that was completed several months ago for Centerville
National Bank in Centerville, la.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


“Building a new facility should be considered
only when all remodeling possibilities
have been thoroughly investigated.”
cause the existing space is inadequate
and cannot adapt to future growth.
Future growth means planning
now! No bank, no industry, no farm
or, for that matter, no individual
stands still. One either moves for­
ward or backward. M oving forward
dictates a long term commitment and
investment when it comes to bank
facilities and thus one plans a facility
for the future, not today.
Costs and Planning
Building costs, like taxes, continue
to rise. The total cost of a new 2,400
square foot bank nine years ago
would today just pay for the security
equipment, teller counter and furn­
ishings. One can only guess what
those same dollars will purchase in a
couple o f years hence. A ccordingly, it
becomes apparent that once the de­
cision to expand is made, it is in the
banker’s best financial interest to
seek out the best and most experi­
enced bank planning professionals
Such a professional will initially
assist the banker in determining if re­
modeling or building new is the most
prudent and long range approach to
pursue. A t this stage, this is far more
important to the overall success of
the project than looking at vault
doors or flying to the Merchandise
Mart to pick out furniture! Granted,
security equipment, desks and chairs
becom e a part of the total program
but, if proper preliminary planning is
not done right to begin with, there
w on’t be any money left for desks and
A t Kirk Gross Company prelimi­
nary planning is most important,
especially in toda y’s econom y. W e
relate to total bottom -line costs by
trying to achieve the proper utiliz­
ation of space to accommodate pre­
sent and future needs. Utilizing our
own in-house, registered architects
and construction staff, we can accur­
ately relate to costs at this very early
development stage and thus elimi­
nate the many heartaches and dis­
appointments that occur when the
final project costs become too high.
Having remodeled or built new

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

facilities for over 160 financial clients
in the last 112 months, the Kirk
Gross Company uses this unparallel­
ed experience to develop the right
plan for the right costs.
Remodel or Build New?
Remodeling normally dictates the
availability of adjacent property.
Assum ing the acquisition price is rea­
sonable, the bottom-line cost will be
less as construction dollars will go
further. In addition to the obvious
cost savings, other factors should be
considered when deciding to remodel.
Some o f them are as follows:
1. Can I best serve my customers
by staying where I am?
2. Has my design team properly
incorporated enough space for future
growth in all areas?
3. Can major existing problems
such as exterior steps, overcrowded
vaults, lack of privacy, leaking roofs,
etc., be eliminated?
4. W ill the remodeling project re­
sult in a more energy efficient build­
ing and reduce my utility costs?
5. Does my design team have the
experience and are they qualified to
handle my project so that we can
easily conduct our daily business dur­
ing the construction?
Building a new facility should be
considered only when all remodeling
possibilities have been thoroughly
investigated. Once it has been deter­
mined that a new facility is the only
option left—take it! Use the experi­
ence of your design team early. Have
them assist you, if they are qualified,
in a confidential manner to select a
site for your building. D on’t purchase
land on your own just because the
price is right. It might not be large
enough or it might require unusual
and costly construction methods to
properly utilize the site.
While new construction obviously
costs more than remodeling, today’s
government regulations have opened
up new avenues of opportunity, such
as revenue bonds, that will reduce
your bottom-line cost considerably.
W e have three clients presently using
this method for funds and a dozen
more seriously considering it. After

all, money is expensive even for a
bank, so why not obtain the neces­
sary dollars at the lowest possible
To help offset increased construct­
ion costs, make sure your design
team has the experience and expertise
to create a facility that meets all the
required needs without wasting
space. Today, space equals money.
Proper space utilization and planning
will eliminate extra unnecessary
costs. D on’t let your design team
create an award winning piece of
architecture which is not internally
functional with your dollars. The
brief publicity you will receive will be
extremely expensive.
What’s the Most Economical Way?
Having both the architectural and
construction in-house capabilities,
we are uniquely qualified to answer
that question. On occasion, we are
retained to provide just one of the
major phases of a building program,
architectural and interior design or
construction. This occurs occasional­
ly when local conditions demand the
use of a local architect or a major
customer in the construction busi­
ness. The built-in versatility of our
service adapts well to such a seg­
mented building program; but, to
keep costs to a minimum, a Turn Key
Program with an experienced firm
specializing only in financial facilities
will provide the best bottom-line
A Turn Key building program
handled by an experience firm (be
sure to investigate to verify ju st how
experienced they really are) can keep
costs in line right from the start of the
project. Such a firm can complete the
project quicker, which means less
cost, and it will be totally responsible,
which also means less cost.
In summation, the continued refer­
ence to an experienced firm was in­
tentional, for that experience will be
the catalyst in arriving at the m ost
economical way to create your needed
facility in today’s economy. Thus, if
additional space is required, do it
now, only obtain the best possible
experienced assistant you can find. □


S e c u r ity review
is vital
W ritten Especially for


N orthw estern B an k er

B y C. F. C U M M IN S
Manager, A dvertising and Sales Promotions
LeFebure Corporation
Cedar Rapids, Iowa

H E R E is a tendency in some community banks for
management and other employes to fall into a false
attitude of serenity and becom e lax concerning security.
They know all their customers personally. No one can
remember when they’ve had any security problems.
Their security system has been in place for years and
meets the minimum requirements.
This description would have fit almost any of those
banks who have found their security system lacking too
late, much to their embarrassment and financial loss.
It isn’t always possible to prevent crime at a bank, but
proper security measures can greatly reduce the possi­
bility. One important factor is the attitude of bank
employes. Management must maintain a constant
security consciousness. They must not allow themselves
or their employes to become lackadaisical regarding
security. Em ployes must know what to do if a crime
takes place at the bank and procedures need to be re­
viewed at regular intervals.
Part o f management’s security consciousness must
include keeping up to date on new developments in the
security field. This field is changing rapidly because of
the criminal’s progressive ability to overcom e yester­
day’s security devices. This requires constant upgrad­
ing of these products and the introduction of new ones.
One member of management should be designated to
keep abreast of developments in the security field. He
should first seek the assistance and advice of law en­
forcement officials in developing his security program.
And, he would be wise to develop a close relationship
with a representative of one of the m ajor manufacturers
of security equipment who will provide the ongoing
knowledge so important to staying on top o f advance­
ments in this field. This representative needs to be very
familiar with the bank’s present security system to
enable him to make appropriate recommendations when
new equipment becomes available.
A short time ago, film cameras were the primary
surveillance tool for banks but now, closed circuit tele­
vision has been getting a great deal of attention. How
many bankers know when one should be chosen over the
other? Are both needed in some circumstances? A repre­
sentative of the manufacturer can offer the reasons to
select one or the other with cost information for the
officer to weigh.

Federal Reserve Bank of St. Louis

3. Eighteen months ago no one offered a vault door
listed by Underwriters Laboratories, Inc. Now all the
major manufacturers, plus some others, offer listed
vault doors. Are they worth the extra cost? Your repre­
sentative can give you the advantages and the extra cost
so you can make a judgm ent.
4. Can you operate without a vault? Yes, but require­
ments are more stringent. This has given birth to the
“ super safe’ ’ with a TRTL30X 6 rating. These units are
ingeniously designed to be extremely resistive to all
known methods of attack on all six sides. Y ou ’ll need
help in locating a source, and cost will have to be weigh­
ed against the cost of constructing a vault to acceptable
5. Even safe deposit boxes have changed. Sure, a
bank can buy the same kind it has used for 50 years or
more. But is that the best choice? M ore modern boxes
now are available that can be delivered and installed in
one-third or less time than the old style. They are much
easier to maintain (little or no cleaning) and are equipped
with new style locks that increase security and save the
bank money by greatly reducing the necessity to change
locks or carry an inventory of spare locks.
6. Changes in alarm systems are too numerous to
mention and might well be outdated as the period is
added to the last sentence describing them. M any of the
components common to alarm systems when they be­
came mandatory over a decade ago are still in use. M ost,
however, have been greatly improved. Many new ones
are now available. Modular alarms now are available
permitting a bank to start with a basic system and add

A TYPICAL LeFebure Central Station/Proprietary Alarm Control Center
featuring computerization and closed circuit television.

on as needs grow. I t ’s even possible to tie an alarm into a
computer that will record all happenings detected by the
system and instruct the monitor just what to do. If
desired, closed circuit television can be used in conjunc­
tion with it for visual monitoring of sensitive areas.
There is much more to learn about w hat’s new in
security devices and equipment, but we’ll save that for
the manufacturer’s representative to tell you.
In summary, don’t let complacency about security
take hold in your bank. That’s inviting trouble. Appoint
a responsible officer to take active charge of your secur­
ity program. Encourage and support him in training
your employes what to do if a crime occurs and in imple­
menting good security practices. Develop a strong
relationship with one or more representatives of a manu­
facturer of security products who can help you keep your
bank properly equipped with necessary and up-to-date
security equipment.
Northwestern Banker, July, 1980


Checklist of security items for community banks '

Director of Sales Support
The Mosler Safe Company
Hamilton, Ohio

ECENTLY released FBI statistics show the crime
rate against the banking industry is still on the up­
swing. This increase, coupled with the government’s re­
duction of the FBI budget for bank crime investigations,
makes it essential that banks implement a do-it-yourself
program for external crime prevention.
Although many large, multi-branch banks utilize so­
phisticated protection equipment, security is equally im­
portant to the smaller community banks.


Robbery and Burglary
Dangerous robberies cannot be totally eliminated but
installing protective equipment and tightening proce­
dures will act as an effective deterrent. For instance, the
amount of cash on hand at the teller area should be lim­
ited. Excess cash needed for normal operation should be
stored in a security container. And for added security, the
locker should be equipped with a delayed-action timelock
which requires a 15-minute waiting period before the
locker can be opened.
Many banks are installing protected work stations for
their tellers in high risk areas and find as the risks de­
crease, employe morale is improved. These work stations
consist primarily of bullet resistive glazing between the
teller and the customer, specially designed deal trays and
reinforced counter fronts.
Strategically located cameras and an effective alarm
system are primary defenses against bank robbers. A high
quality hold-up alarm which silently alerts local law en­
forcement agencies to a robbery is imperative. The system
should include activators which are easily operated by
bank personnel. A very effective activator is a currencyoperated device, often called a "money-clip,” which trans-

U.L.-approved Magna Dual night
depository by Mosler.

EMPLOYE morale improves as risks decrease when bullet resistive pro­
tected work stations are installed, such as this station designed by Mosler.

mits a silent police alarm while simultaneously activating
hold-up cameras. The most effective cameras are those
which take 35mm rapid-sequence pictures and are located
adjacent to the bank’s exits. To deter or identify "bad check
passers,” closed circuit television system provides added
The vault alarm system is also the first line of defense
against burglary. A bank vault must be protected by an
alarm which reports to local law enforcement agencies
and is guarded against defeat by telephone line compro­
mise. The alarm system should, at the minimum, meet
Grade A U.L. requirements for bank vault protection.
Modem alarm systems transmit information to and from
the police station using highly complex, coded signals
which are extremely difficult to interpret and are there­
fore virtually impossible to compromise.
These modern systems employ solid state integrated
circuits and, with related accessories, provide an effective
defense against all commonly used methods of burglary
attacks on vaults and safes. Electronic alarm protection
can be periodically upgraded to current state of the art
without any major impact on building construction.
Alarm coverage should be reviewed frequently, and
replaced with more effective systems as they become
(Turn to page 60, please)

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


System. The Model 873 Currency Pro­
cessing System from Brandt, Inc. Ideal
for night deposits, commercial ac­
counts and vault operations, the 873
processes each of your accounts sys­
tem atically! Currency, foodstam ps,
check and coin values are accumulated
and totaled automatically . . . then
stored all day long by a microprocessor
controlled memory system.
An easy to read LED display tracks
d e n o m in atio n value, program m ed
batch and accumulated count. Paper
tape printout answers the need for onthe-spot, comprehensive hard copy
audit and fast, accurate day-end
Federal Reserve Bank of St. Louis

The Model 873 can help you solve
some tough currency handling prob­
lems! It counts brick currency to mute
quickly, accurately. Variable speed
control and new low-profile stacker
combine to give you convenient dis­
crimination of currency. Doubles de­
tection puts confidence into high
volume processing. A counterfeit
detection aid is available for even more
security. And the 873 self-cleans for a
minimum of maintenance! Feature by
feature, the Model 873 represents the
final word in currency processing. And
the word is system!

The unique Model 873 features systems
processing, keyboard display, paper
tape printout, memory system, self-clean­
ing and much more!

B ra n d t

Speed and precision. The two key
ingredients for high volume, high
perform ance coin processing. The
Model 952 high speed coin sorter/
counter provides both — plus opera­
ting ease! Simply place coin into the
inspection pan and switch the unit
on. The 952 immediately responds. It
sorts, counts, totals and deposits coins
into bag or coin drawers. Rapidly.
Accurately. And with full six coin capa­
bility too!
The 952’s convenience features are
like money in the bank. The electronic
totalizer displays accum ulations in
large, easy to read digits. An auto­
Federal Reserve Bank of St. Louis

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Trends in design
for community banks
F IT’S no longer true that "you can tell it’s a bank by
looking at the building,” one reason may be that a new
bank building is likely to house more than a bank. Two
Nebraska examples are cases in point. Both structures,
completed in 1978, were planned from the ground up to
play an important after-hours role in their communities.
Instead of marble and stainless steel, their architecture
emphasizes brick and wood. And although the two build­
ings are quite different, both are well received by their
communities and fit comfortably into their surroundings.
The Scottsbluff building shown here actually houses
two banks, both owned by the same holding company. One
is a commercial, and one an industrial bank. In conformity


> CONTEMPORARY, western design of Scottsbluff National Bank & Trust
Co. and Scottsbluff Savings Co.

MODERN interior of Scottsbluff National Bank & Trust Co.

FIRST State, Gothenburg, provides space for the Gothenburg Chamber
of Commerce.
Federal Reserve Bank of St. Louis

Manager of Bank Marketing
Bank Building Corporation
St. Louis, Missouri

with Nebraska law, there is no passageway between the
Scottsbluff National Bank and Trust Company, and the
Scottsbluff Savings Company. Furthermore, there is a
community room for use by the general public after bank­
ing hours. As an added complication, the commercial bank
has a "Continental Club” room attached, which caters to
the larger depositors and can be used only by those who
have memberships.
Keeping these elements physically separated although
under the same roof created special problems for the peo­
ple who designed and built it at Bank Building Corpora­
tion. The solution was a floor plan which provides separate
entrances to each bank and to the community center.
Once the floor plan had been agreed on, J. T. Selzer,
bank president, presented BBC with a number of photo­
graphs of other banks whose appearance he liked. What
was finally decided on can be best described as "contem­
porary western.” The flagpole out front and the woodpanel signs provide a flavor of the frontier West, perhaps
suggesting a cavalry outpost; but the interior is strictly
modern. Facilities for the central forced-air heating, cool­
ing and ventilating, amenities General Custer never en­
joyed, are cleverly concealed in the rear of the pitched roof.
Fresh-air intake comes through grillwork which is nearly
symmetrical with vertical skylights on the front of
the roof.
Adds Drive-In Facility
Contemporary western might also describe the quite
different architecture for the new facility of the First State
Bank of Gothenburg. Called in for consultation, Bank
Building Corporation recommended that the bank keep
its downtown headquarters but move its drive-in facility,
which was inadequate for the use it was getting.
"We had been thinking about a new building for quite a
while,” said Glenn Bartels, president. "We didn’t want a
square brick building (or) something that was so modern­
looking that nobody would appreciate it. We wanted some­
thing that would blend in well with the community. And,
incidentally, we were interested in continuing to furnish a
community room for the public. We had been doing this at
our main location although space was getting tight.”
The building shown here actually serves three different
functions. Only about a quarter of it is reserved for driveup and walk-in teller service. Half the structure is a meet­
ing place for non-profit public affairs of all kinds. The
remainder is the first permanent home of the Gothenburg
Chamber of Commerce— the bank provides the facilities
without charge as a public service, and the Chamber pays
its own utility bills.
The basic plan is an adaptation of a building (not a
bank) which Mr. Bartels spotted while driving in the
vicinity of Alliance, Neb. Addition of a large grassy area
and a fountain have helped make the structure one of
Gothenburg’s show places.
Northwestern Banker, July, 1980


Senior Vice President
Director of Research and Development
Florida Software Services, Orlando

—L I____________

Setting priorities for automation:
The 20-30-50 approach

OU’VE made a decision. One of the biggest you’ll ever
make. You’ve decided that banking today mandates
that you broaden your automation capabilities. Several
factors— competitive services, soaring personnel costs,
regulatory changes, the need for increased efficiency, the
desire to better manipulate the mind-boggling variables of
the industry— may have sparked the decision. But your
primary aim, o f course, is surviving and prospering in a
rapidly changing banking environment. In short, you
want tools that help you improve your return on assets.
Have you made the right decision? You undoubtedly
have, because technology today goes beyond the stage of
providing problem solving capabilities to one of creating
opportunities for management. But let’s face it, the recent
history of banking is, unfortunately, replete with exam­
ples of banks that moved quickly into uncharted waters
without a plan. To be sure, there are those in the data
processing industry who have been partly responsible for
the costly disillusionment with sophisticated automation
that resulted.
I strongly believe, however, that prudent and profes­
sional steps can be taken to ensure that your decision will
be a sound and profitable one. With that in mind, your
initial focus in the decision-making framework should be
on the "make-buy” aspect of automation. Should you de­
velop your own in-house programming capability, or buy
customized or standardized software? Should you buy or
lease your own computer hardware, or retain a service
bureau or a correspondent bank to do processing for you?
In what priority should those decisions be made?

Banker, July, 1980
Federal Reserve Bank of St. Louis

To help you answer these fundamental questions, I’d
like to suggest a general course of action to follow and then
put some detail into the outline with a specific area of
activity, commercial lending.
First Set Goals
In the general area, the first step is basic and also the
most important one you’ll take. You must ask yourself
and all those in your bank who will work with and profit
from automation this question: What do we want to
If that sounds a bit trite, keep in mind that all too many
banks have tried to construct a system without first mak­
ing a blueprint and laying a solid foundation of informa­
tion about total long-term costs. If you analyze the struc­
ture you’re trying to build carefully, I think you’ll come to
what may be a surprising conclusion. The foundation
of automation is not the computer hardware or even
the programmed software that runs the system. They
are, respectively, about 20% and 30% of your long-term
A full 50% of your planning should encompass a third
element—human resources— because that is where at
least half of your investment will ultimately be. I’m talk­
ing about the people who will establish and implement the
system for you and those on the management team who
will profit from its use. Over the long haul the ongoing
training and efficient use of personnel is crucial when it
comes to installing, converting, maintaining and updat­
ing your system so that it becomes a profit producer.

Thus, I’m suggesting a sharp departure be made from
the norm. The traditional scenario of the automation
"make-buy” decision calls for selection of the hardware
source, then selection of the software source, and finally
the decision-making about the nitty-gritty of making the
•* system operational. That approach is dysfunctional. It
does not give you flexibility because it does not reflect the
reality of automation. In short, you should turn the tradi> tional priorities upside down.

Evaluate Strategies
After defining your goal, you should then make a care­
ful evaluation of which automation strategy provides the
most efficient use of human resources over the long term.
Here are some key questions to ask:
• Who will make a new system conform to existing proce­
dures, or who will adapt our procedures on a one-time
basis to fit a system? Which of these strategies is the most
cost-effective for our people in the long run?
• Who will coordinate conversion and how long will the
process take?
• Who will control pre-conversion and post-conversion
• Who will oversee ongoing training to maximize our
• Who will use and revise documentation that must be
> clear and understandable to all levels of personnel?
• Who at the management level should draw from the
system rather than just feed data into it?
• Who will custom-tailor a system to meet specific needs
without requiring costly re-programming?
• Who will update the system in response to regulatory
and market changes?
• Who will ensure that all systems can be linked in an
efficient way?
• Who will be responsible for designing a system that is
flexible enough to handle future growth?
I re-emphasize that questions like these should be asked
and answered long before you have a machine plugged in
and ready to work for you. It’s the goal of your automation
program that defines the answers to these questions; it’s
these answers that define what kind of software system
you should develop or buy, and it’s the software that
defines what kind o f hardware capability you need.
Let’s put that structure in the context of a concrete
example, commercial lending. W hat do you want to
accomplish through automating that major area of your
bank’s activity? If you want simply to automate your
existing procedures to increase accounting efficiency then
you have one plan o f attack. If, however, you want to go
beyond laying out accruals and past due reports automati­
cally to generating customer and portfolio profitability
analyses then you have another.
To develop a plan to meet existing accounting needs the
decision-making at your bank can be done at a relatively
low operations level. To determine what you want and
how best to get it with a more complete system, the CEO,
plus representatives from loan administration and/or a
loan officer, the operation/loan-discount area and data
processing should get involved.
I recommend that you at least consider the latter course
to assure that you get a good look at what’s available.
Have a loan team set specifications for a system that can
help you analyze your total loan portfolio and, for exam­
ple, make it rate sensitive and able to improve cash flow.
Federal Reserve Bank of St. Louis

You may want to consider buying or developing a system
that goes beyond the process of booking short-term notes
and adjusting rates at maturity. A tool that can tie loans to
a prime and with a single transaction entry update rates
and accruals can lead to significantly higher earnings
from a given portfolio.
Other features that can be highly advantageous include
a capability to display maturity schedules broken out to
relate to retail, mortgage and investment operations.
Thus, investment decisions are planned rather than being
reactions. Exception reporting that allows management to
define parameters for rate and maturity might be another
function your team wants since it can be used to pinpoint
loans made outside the bank’s fluctuating requirements.
You may want to beef up your loan program itself by
using automation to sell participations on solid local cus­
tomers to a correspondent upstream, rather than handing
him the package and buying what he’s willing to sell. That
way, you are defining your involvement and, of course,
holding on to a good customer.
Human Element is Primary
Features such as these can lead to much more efficient
management of an income source if the top echelon of your
bank’s personnel are aware of the options and are schooled
in their use. Once again the human element is primary.
You must select a system that will be used to maximum
advantage. And that will happen only if its functions are
spelled out on a continuing basis in the clearest way
If your bank is extremely large with a number of inde­
pendent, specialized areas, then a custom-tailored com­
mercial loan system with customized documentation may
be justified. It will allow you to automate existing proce­
dures and do in-house training. On the other hand, the
medium-sized bank may find a standardized system more
cost-efficient over time in terms of human resources if it is
willing to change some of its procedures at the time of
conversion and then use a standardized training program.
Either way, it must be remembered that regulatory and
economic changes are going to force you to amend proce­
dures, so the human resource cost of updates and re­
training must be factored in.
By setting your goals, you have now focused on what
you want a system to do and who provides the most costeffectiveness for your bank’s needs. If you consider cus­
tomized or standardized software, I urge you to check
references carefully of the suppliers you evaluate, and also
determine what kind of banker-to-banker assistance pro­
gram will be available. In addition, you may want to
consider hiring a qualified data processing consultant to
help you realize the full potential of your system.
A consultant can also help you find the type of hardware
that you need. The hardware decision has now become the
last step in the process. Your human resources costs (50%
of the entire automation buy) defined your software (30%)
and you now can identify what kind of hardware (20%)
will best drive your system today and tomorrow.

□ THE AUTHOR — William G. Ferrara is senior vice president and
director of research and development at Florida Software Services,
Orlando, a leading designer and supplier of financial data processing
systems and services for the banking industry. He has been associ­
ated with banks and banking-related organizations for 23 years and is
a frequent speaker on bank data processing and deposit operations.

Northwestern Banker, July, 1980


Barry Sullivan Named 1st Chicago Chairman
ARRY F. Sullivan, 49, executive
vice president at Chase Man­
hattan Bank N .A ., New York, has
been named chairman and chief exec­
utive officer of First Chicago Corp.,
effective July 28. He will succeed A.
Robert Abboud, who resigned April
28. First Chicago is the parent com­
pany of First National Bank of Chi­
cago and is the nation’s ninth largest
bank holding company. First Na­
tional Bank has $22 billion in de­
Mr. Sullivan’s appointment was
announced by Ben Heineman, presi­


dent of Northwest Industries, Inc.,
and a director of First Chicago who
headed the holding company’s search
committee. He said Mr. Sullivan’s
salary would be $375,000 and, with
likely bonuses, his yearly income
should exceed $500,000. At Chase
Bank, Mr. Sullivan’s salary and
bonuses were reported to be $400,000.
Mr. Sullivan is a 23-year veteran
with Chase, where he established a
solid record as a manager and execu­
tive officer in retail operations, trust
activities, institutional relations and
corporate and international lending.


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Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


A Citicorp lawsuit that sought to
block Interbank Card A ssociation
from entering the travelers’ check
business with its MasterCard Travel­
ers Cheque program has been dis­
missed in U.S. District Court for the
Southern District o f New Y ork by
Judge John M. Cannella.
Interbank indicated that the recent
court ruling would have no effect on its
plans to pursue the counterclaims it
has brought against Citicorp. Inter­
bank charges that Citicorp’s lawsuit
was only one part of a concerted, anti­
com petitive plan to bar Interbank
members from entering the travelers’
check market.

High Court Rules On
Out-of-State Case



Citicorp Suit Against
Interbank is Dismissed

The U.S. Supreme Court has ruled
as unconstitutional a Florida law that
prevented out-of-state holding com­
panies from operating investm ent
advisory services in the state.
The high court’s unanimous ruling
said the Florida law discriminated
against out-of-state businesses, partic­
ularly Bankers Trust New York Corp.,
which initiated the case. The Florida
law expired July 1, but the Conference
of State Bank Supervisors told the
Court that the outcome might affect
laws in at least 14 other states.
A lower court ruling that the law
was unconstitutional should be re­
versed, the bank supervisors had
argued, lest it "substantially disrupt
the historic dual banking system of the
U.S. wherein the banking industry is
subject to state as well as national con­
However, the Supreme Court, in an
opinion by Justice Harry Blackmun,
largely agreed with the lower court.
The Justices said the Florida law in
question was unconstitutional. They
didn’t rule on a second law that the
lower court also had struck down.
The case arose when Bankers Trust
sought permission from state officials
and the Federal Reserve Board in 1972
to open a Palm Beach investment
advisory subsidiary, BT Investment
Managers, Inc. The Fed said it was
w illin g to g ra n t p e rm iss io n but
couldn’t if the request conflicted with
state law, which it did. Bankers Trust
then went to court.
The Florida law prohibits ownership
of investment advisory concerns in
Florida by banks, trust companies or
bank holding companies whose prin­
cipal operations are outside Florida.


How can you add to your
loan portfolio - but minimize
additional exposure and expenses?
UseABCI Money.
ABCI Money — in the form o f loan participations —
can help you accommodate a good customer or
prospect who might not be bankable. Or one whose
needs exceed the limits you have set. Or whose
credit might have temporarily slipped.
How can we help? Through a secured lending
arrangement with your customer, one which meets
your needs as well as those o f the borrower. And
through professional and flexible loan supervision.
We’re staffed to control and administer each
loan. We can evaluate and monitor most forms o f
collateral —receivables, inventory, machinery and
equipment or real estate. We can even manage spe­
cialized assets in widely scattered locations that your
bank may not be set up to handle.

Also, through regular visits to the borrower, we
review company operations, analyze trends, and per­
form financial and collateral audits to control and
minimize our mutual exposure. And all without cost
to you.
Our experience is broad and deep. Our resources
are extensive. Our approach is thorough. And our
decisions are made quickly.
Next time you’re faced with a loan request that
isn’t quite right for you, consider ABCI Money.
It can help you keep existing customers and gain
new ones.

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Ætna Business Credit, Inc., I l l Founders Plaza, P.O. Box 118, Hartford, Connecticut 06101
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


American Express Posts Higher Earnings
MERICAN Express Company
has reported net income of $78
million for the first quarter of 1980,
an increase of 6 % from $73 million for
the first quarter of 1979. Consoli­
dated earnings per share for the first
quarter were $1.09, compared with
$1.02 a year ago.
Consolidated revenues for the first
quarter rose to $1.3 billion from $1.1
billion for the first quarter of 1979, a
gain of 20 % , according to James D.
Robinson III, chairman of American
Express Company in New York.
First quarter 1980 net income of
the Travel Related Services Group
was $31 million, approximately even
with earnings for the previous year’s
first quarter.
TRS revenues of $348 million were
up 34% over last year’s comparable
quarter, reflecting strong gains in
each activity and the acquisition of
First Data Resources Inc. in January.
Card charge volume rose substantial­
ly, by 36 % , the result of an increase
in the average spending per Cardmember and an 11% gain in world­
wide Cardmembership, which reach­
ed 10.8 million. American Express
Travelers Cheque interest income
rose because of increases in worldwide


sales and higher interest rates. Aver­
age Travelers Cheque outstandings
for the quarter were $2.4 billion, an
increase of 11 % over last year’s com­
parable quarter.
Revenue gains were offset princi­
pally by increased interest expense,
provision for losses, and higher oper­
ating expenses.
To maintain superior services and
benefits offered to Cardmembers in
the face of rising costs, the company
will increase the basic annual U.S.
membership fee for the American Ex­
press Green Card from $25 to $35, to
become effective July 1. However,
current Cardmembers will not be
affected until their Cardmembership
comes up for renewal. Moreover, no
fee increase will be imposed on Cardmembers 65 years of age or older,
many of whom are living on fixed in­
comes and are particularly affected
by inflation.
In addition, the company is tight­
ening overall collection procedures,
including the implementation of a re­
vised schedule of late payment
charges for past due and delinquent
accounts. This step is in keeping with
the spirit of the government’s credit
control guidelines.

ABA Receives Public Relations Award
OUR area bankers were among
23 bank executives honored re­
cently when the American Bankers
Association received a Silver Anvil
award from the Public Relations Socie­
ty o f Am erica for the contribution
made to the field of public relations by
the ABA "Banking Advisor” program.
John Chrystal, president, Iowa Sav­
ings Bank, Coon Rapids, Iowa; Nor­
man M. Dean, president, United Bank
of Greeley, Colo.; Oliver Hansen, presi­
dent, Liberty Trust and Savings Bank,
Durant, Iowa, and Leslie W. Peterson,
president, Farmers State Bank, Trimont, Minn., have served as A B A
"Banking Advisors” for the past year.
The ABA Banking Advisor program
is a major national communications
effort aimed at increasing the public
understanding of banking. Banking
Advisors have visited more than 70
major cities in 40 states since last Octo­
ber, appearing on radio and television
talk shows and giving newspaper in­
Lee Gunderson, president o f the


Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Bank of Osceola, Wis., and president­
elect of the ABA, accepted the award
for the ABA at the PRSA Silver Anvil
banquet in Philadelphia.

FISI Announces New
Marketing Tools, Strategies
Financial Institution Services, Inc.,
the nation’s largest bank marketing
firm serving more than 1,850 banks
nationwide, has unveiled new prod­
ucts and m arketing strategies de­
signed to meet client banks’ needs in
f a c in g th e c h a lle n g e s o f N O W
accounts and the vastly-increased
competition among all financial in­
The products and strategies were
presented as a climax to FISI’s annual
national convention at Disney World
in Florida recently.
In outlining FISI’s new BANCLUB
programs, Fred Goad, products direc­
tor, disclosed three products specifical­
ly designed to meet NOW account
criteria for three different marketing

approaches. Mr. Goad explained to
1. The first approach protects the
loss of high balance customers but does
not include the marketing of NOW
accounts to your full customer base; we
call it a defensive strategy.
2. To protect m arket share and
minimize shift of funds, the second
plan puts you in a position to meet
your competition in your own market.
This middle-of-the-road posture will
allow you to keep your high balance
customer base intact and at the same
time provides the flexibility for you to
adjust your marketing position in the
future as market conditions change.
3. The third and offensive approach
is a plan whereby a bank with product
differentiation is aggressively posi­
tioned to not only meet the competition
but go after additional customers. In
other words, the bank makes a deci­
sion at this tim e to utilize NOW
accounts as an offensive m ark et­
ing tool.

Continental III. Charges Fee
Town & Country Charge, the charge
card division of Continental Illinois
National Bank and Trust Company of
Chicago, has begun to notify custom­
ers that it will charge a $15 annual fee
on each of its MasterCard and Visa
accounts effective August 1.

MICA Elects Officers
The M ortgage In su ra nce C om ­
panies of America announced the elec­
tion of its officers
for 1980-81 fol­
lowing the asso­
cia tio n ’s recent
seventh annual
meeting. Robert
L. Waldo, presi­
dent o f V erex
Assurance, Inc.,
was elected presi­
dent succeeding
United Guaranty
Corporation Chairm an W illiam L.
Mr. Waldo has served as MICA’s
vice president, chairman of the asso­
cia tio n ’s com m ittee on operatin g
standards and as a member of other
Leon T. Kendall, president of Mort­
gage Guaranty Insurance Corpora­
tion, was elected vice president of
MICA. Mr. Kendall previously served
as chairman of the committee on fi­
nance and budget and as chairman of
the committee on research.



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The money order your teller sells
today shouldn’t tie up somebody in
the back room with paper work to­
morrow. That person could be
spending time on other important
That’s why it makes sense to
sell American Express®Financial^
Institution Money Orders (FIMO).
O nce you sell them, you can
forget about them. Because we do
all the paper work for you.
We take care o f all the reconciling, filing and storing. As well as
all the tracing and refunding.

What’s more, we print your name
on every money order and keep you
supplied at no cost. O f course you
pay us a modest fee for each money
order sold, but you control the
profit because you decide what to
chaige your customers.
W hy sell money orders that
create paper work when you can
sell money orders that eliminate it?
For more information, drop the
coupon in the mail today.
You have nothing to lose. emerU&iSH
Nothing, that is,but your ÉÉexbrÊsî
paper work.

Mr. Oil Rosenwald


T itle B ank.


American Express FIMO. The money-making money order.
Federal Reserve Bank of St. Louis

' “ N B 71

Marketing Ss Saies Operatic
Travelers Cheque & Monev Order Dtv
American Express Company —37th Fir
American Express Plaza
New York, NY 10004


H is banker has to be there
in good times and bad.
W hen credit is easy, a successful farmer
has lots of bankers knocking on his door.
But chances are h ell stick with the banker
w ho stuck by him when money was tight.
It takes a banker with a lot of foresight
to build a relationship with someone in a
cyclical business like this.
And it helps if vour correspondent
Federal Reserve Bank of St. Louis

bank has the same kind of foresight.
At American National, w e’ve never
backed away from correspondent business
when money got tight.
Because bad times can be the best times
to start a relationship with an aggressive
correspondent bank. Shake hands with
American National. T he bank for business.

SPEAKER Walter Heller, prof., Univ. of Minn., Minneapolis, during a press interview; I BA Pres. Jack D. Lemmerman, chmn., Nat’l. Bk. of
Monmouth, promoting the July 1 Chicago White Sox game with some of its fans. RIGHT— Dr. Henry A. Kissinger, former secy, of state,
waves at crowd as Charles N. Finson, IBA treas., and David Brinkley of NBC News look on.

Meeting in St. Louis:

Jack Lemmerman Elected President
Of Illinois Bankers Association
ACK D. Lemmerman, chairman
o f the N ational Bank o f M on­
mouth, was installed last month as
president of the Illinois Bankers Asso­
ciation during the 89th annual con­
vention held in St. Louis. He succeeds
Gavin Weir, chairman, Chicago City
Bank and Trust Company.
Elected first vice president for 198081 was Jam es A. Fitch, president,
South Chicago Savings Bank.
Named second vice president for the
ensuing year was Donald R. Lovett,
chairman of the Dixon National Bank.
New treasurer is Thomas N. Rochford,
president o f the Bank o f Illinois,
Two key speakers offered opposing
views on how to control inflation.
Lawrence K. Roos, president o f the St.
Louis Fed, argued that we must reduce



the supply o f money on a gradual
basis, since the bulk of inflation pres­
sure is caused by the supply of money
compared to the amount of goods and
services. Mr. Roos said that there will
be opposition from within the Fed and
from some of the economists, who feel
that you have to stabilize interest
rates. If they prevail, we will continue
to have cyclical inflation, according to
Mr. Roos.
Walter W. Heller, regents’ professor
of economics, University of Minnesota,
told the bankers that "you can’t ex­
plain inflation in terms of the money
supply or any other single cause.” He
explained that the money supply in

relation to the amount of goods and
services available is not the problem
today since plants are only running
80% of capacity. He admitted that Fed
Chairman Paul Volcker helped break
the inflationary psychology—but also
drove us into a recession.
Favor Business
Dr. Heller said that future govern­
ment policies will be more favorable to
business; a business recovery will start
in early 1981; the inflation rate will
drop to the 7% to 8% level by election,
and federal taxes will increase by $45
billion in 1981. ($17 billion from social
security; $13 billion from higher wage
brackets, and $15 billion from windfall
profits taxes on oil companies.)
"Our agricultural exports will reach
$38 billion in 1980 compared to $32
billion in 1979.” This was the projec­
tion made by Dr. Daniel G. Sisler,
professor of ag economics at Cornell
Dr. Sisler stated that ag exports are
subject to many uncertainties. He de­
scribed the maze of tariffs and embargos placed on our products by both the
Japanese and the European Common

S i;

ABA PRES.-ELECT Lee Gunderson from Osceola, Wis., and Jack Lemmerman, newly-elected pres, of the Illinois Bankers Assn.
CENTER— Lawrence Roos, pres, of St. Louis Fed. RIGHT—William J. Hoctor, exec, v.p., Illinois Bankers Assn., and Gavin Weir, pres.,
Illinois Bankers Assn., and pres., Chicago City Bk. & Tr. Co.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Illinois News

LEFT—Sidney J. Taylor, chmn., Drovers St. Bk., Chicago, and William C. Harris, comm, of bks. and tr. co’s., Springfield. RIGHT—
Charlene and John Crotty, sr. v.p., Drovers St. Bk., Chicago; Gerald C. Meyers, pres., Riverside Nat’l. Bk.; Dennis Davito, Marshall Co.
St. Bk., Varna, and wife, Jan.

Market. He added that while we keep
talking about trading food for oil, we
export about $2.6 billion in ag products
to OPEC while importing $81 billion
in oil. OPEC’s total ag imports run $10
billion! In addition, Dr. Sisler said that
we will sell $2.6 billion in ag products
to China this year— but we are so des­
perate to develop China that we are
not trying to arrange long-term con­
tracts. He rem inded bankers that
Chinese are fantastic traders, and he
questioned if we had the "smarts” to
keep up.
Looking at the political scene, David
B rin k ley , co-a n ch orm a n on NBC
Nightly News, predicted that Ronald
Reagan will be elected president, bar­
ring some radical change between now
and November. He indicated that the
New Deal— after 47 years— is dead.
He said the ideal candidate for vice

president should be younger than
Reagan and widely experienced in
government and foreign affairs. He
suggested that former President Ford
would be the ideal candidate, and
Senator Howard Baker would be an
excellent choice.
ABA President-Elect Lee Gunder­
son told bankers "the government has
expressed support for creating a level
playing field between financial inter­
mediaries, for encouraging savings
and for stopping inflation. But the way
governm ent is actually doing any­
thing to help meet these goals is about
as efficient as pushing string.”
Mr. Gunderson said that in face of
phasing out Regulation Q, the thrifts
stood ready to take advantage of their
quarter point advantage on certifi­
cates, as interest rates trended lower.
Finally, Mr. Gunderson added the De­

pository Institutions D eregulation
Committee took some modest steps to
stem a major outflow of funds from
The regulators allowed a one-time
roll over of six month CDs at banks at
the higher S&L interest level and in­
creased penalties for early withdraw­
als. He concluded by saying "though
this lowers our immediate vulnerabil­
ity to disintermediation it is still a far
distance from competitive equality.”
As the 89th annual convention drew
to a close, IBA members continued to
show concern over bank structure
change. The Illinois House voted 91 to
60 in early May approving a multi­
bank holding company bill. As this
issue went to press, the Senate Fi­
nance Committee voted the bill down
by 7 to 3 — but the bill’s sponsor was
forcing a vote by the entire Senate to
bring the S. 1299 bill to the floor. □

LEFT— William Troutman of Pekin and Mike Flier, v.p., First Nat’l. Bk., St. Louis. RIGHT—Tom Rochford, new IBA treas., and pres.,
Bank of Illinois in Champaign; B. F. Backlund, pres., Bartonville Bk.; John E. Treston, 1st deputy, Comm, of Bks. & Tr. Co’s., and H.
Peter DeRosier, v.p., Nat’l. Blvd. Bk., Chicago.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


Two ways to find out
what we can do for you.
1. Send for one of our booklets
Our “ Guide to Correspondent
Banking Services” is designed to
give you an overview of the dif­
ferent types of services we offer
your bank. Call or write and we’ll
be glad to send one your way.
2. Send for one of us
If you want to find out e x a c tly
what we can do for you, send for
one of us.

plain how we could work with
you on a correspondent basis.

ship that will help set long-range
plans and goals.

And, when you deal with us, you
don’t deal with a correspondent
bank. You deal with a correspon­
dent banker.

To request a booklet or a
banker, write or call (toll free)
(800) 322-2212.

One who is assigned to you on a
permanent basis so you develop
a long-term, personal relation-

the Human
Interest bank

Commercial National
Bank of Peoria m e m b e r f .d .i .c .

W e’ll come to your bank to dis­
cuss your specific needs and ex­

PHONE: (309) 655-5000

P ^ u¡de to o
e S e r v ¡c e s


B a rro n

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Federal Reserve Bank of St. Louis

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Northwestern Banker, July, 1980


Illinois News

Photos Taken at Illinois Bankers Convention


LEFT— George Derderian, pres., The Northlake Bank, Northlake; Mayo C. Walcott, pres., North Bank, Chicago, and George Dearborn,
v.p., Nat’!. Blvd. Bk., Chicago. RIGHT— Louis E. Avery, asst, v.p., Nat’l. Blvd. Bk., Chicago, and wife, Lee; Robert O. Walcott, pres., First
Nat’l. Bk. of Schiller Park, and wife, Reggie; Delores and Ken Keating, W estbrook Bank.

LEFT—Jerry Fleschner, v.p., M ercantileTr. Co. N.A., St. Louis; Vernon Hildebrand, pres., Peoples St. Bk., Newton, and Frank Kabbes,
pres., Effingham St. Bk. RIGHT— Gay 90’s costumes were shown at Ladies’ luncheon. William Flick Jr., dir., Coal Valley St. Bk., is shown
with two of the models.

Greenville Group to Buy
First Bank, O’Fallon
At a recent special board meeting of
the First Bank and Trust Company of
O ’F allon , D on B row n, presid en t,
announced that James M. Jackson and
his family of Greenville have made
arrangements to purchase a major
interest in the bank effective Janu­
ary, 1981.
Mr. Brown said that the Jackson’s
plan no changes in the officers, em­
ployes or directors of the bank at this
time, nor will there be any changes in
bank policy.
Mr. Jackson and his family have a
major interest in the First Bank and
Trust Company in Greenville and the
Farmers and Merchants Bank of Vandalia, where they are active in the
banks’ management.
Combined assets of the three banks
is over $110 million and total capital
accounts over $8.5 million. The three

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

banks have the same management
philosophy. Principals of the three
banks have long felt that Illinois bank­
ing laws should be modernized in or­
der to offer more services to their
Because of the wide background and
experience of the personnel of all the
banks, the relationship will provide a
much broader spectrum in banking
and allow the addition of bank services
not now offered by the individual
Mr. Jackson, a native of Bedford,
Iowa, has had 26 years of experience in
the banking field, including extensive
experience in farm m ortgages and
loans, cattle loans, real estate, corre­
spondent banking and com m ercial

Promoted at Rockford Bank
The First National Bank & Trust
Co., Rockford, recently announced two

new promotions. George Wallace was
elected assistant vice president, and
Mary M. Beale was appointed custom­
er services officer.
Mr. Wallace joined the bank as a
trust officer in June, 1979, after pre­
vious trust department experience in
Rhode Island and Massachusetts. He
will manage the account administra­
tion section of the trust department at
First National.
Ms. Beale has served for 10 years
with the bank and is associated with
the commercial and real estate loan
department. She attended the Uni­
versity of Wisconsin-Whitewater.

Graduate From IBA School
N in e ty -e ig h t b a n k ers recen tly
graduated from the Illinois Bankers
School in Carbondale. The school,
sponsored by the IBA in conjunction
with the division of continuing educa­
tion, Southern Illinois University, was


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Northwestern Banker, July, 1980

Illinois News
established in 1953 to equip bankers
with the practical knowledge they
need to further their own success and
that of their banks.

ICBI Announces Officers
Jack Marantz, president of the Bank
of Springfield, was recently elected
president o f the
C om m u n ity
Banks in Illinois.
One of the prin­
cipal founders of
the organization
s ix y e a r s a g o ,
Mr. Marantz has
s e r v e d on th e
board sin ce its
inception. Other officers elected were:
first vice president— Don Nolen, ex­
ecutive vice president, First Commun­
ity Bank, West Frankfort; regional
vice presidents—John Crotty, senior
vice president, Drovers Bank of Chi­
cago; Robert Schertz, chairman, First
National Bank in Metamora; David
Combs, cashier, First National Bank,
Taylorville, and Lloyd Henderson, ex­
ecutive vice president, Carterville
State and Savings Bank, and treasur­
er— Fred L am key, vice president,
Citizens First State Bank, Walnut.

F & M State, Bushnell
Adds 3 Officers to Staff
The Farmers and Merchants State
Bank in Bushnell recently added three
new officers to its staff.
Michael G. Steelman left his posi­
tion as McDonough County assistant
states attorney to become the bank’s
com pliance officer, assistant trust
officer and internal legal counsel. He is
a graduate of Western Illinois Uni­
versity and Lewis University College
of Law.
The new assistant farm manager is
Steven R. Farr, a 1970 graduate of
Western Illinois University with a de­
gree in agriculture. He has spent eight
years in farm-related business, and
will also be involved with the farm
loans department.
Kathleen M. Bisbee has joined the
bank as the new marketing officer.
She has a BS degree in journalism
from the University of Colorado. Her
position is a new one for the bank, and
she will be working with the existing
marketing committee in the formation
of a marketing program.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

State Charter Given to
Mechanicsburg Citizens Bank

to strengthen the ties between Greeks
and individuals of Greek descent liv­
ing abroad by promoting the develop­
ment of mutual business interests.

A charter has been issued to the
Mechanicsburg Citizens Bank on West
Main Street, Mechanicsburg.
The state bank’s total capitalization
Receives SBA Honor
of $750,000 consists of $300,000 capi­
Jacob Magierek has been named
ta l stock , $ 3 0 0 ,0 0 0 su rp lu s and
Business Person of the Year for
$150,000 reserve for operating ex­
He was nominated for the
pense. There are 30,000 shares of stock
honor by Joseph J. Briganti, presi­
with a par value of $10 each.
The officers are Kenneth R. Metcalf, dent of the Albany Bank & Trust C o .,
chairman; John H. Pickrell, president, Chicago.
Mr. Magierek, 28, owns Raguard
and C. Bryant Flatt, vice president.
Directors include the officers and: P rin tin g , L t d ., C h ica g o , w hich
Jon Gray Noll, Springfield; Gerald K. specializes in wholesale printing. He
Patton, Dawson; Robert O. Beatty and was able to purchase the business in
1978 through the cooperation of AlS. Wade Patton, Mechanicsburg; John
R. Bice, William N. Etherton, William bank’s loan department and the U .S.
B. McCubbin, Ronald L. Richards and Small Business Administration.
William E. Whiteside, Buffalo.

Named Instalment Manager
Deerbrook Bank President
Greek Government Guest
Spyros E. Xintaris, president of
the Deerbrook Bank, Deerfield, was
invited by the Greek government to
the first Panhellenic Convention for
Investing in Greece in Athens in
M ay. He was one of six persons in the
Chicago area to be invited to the
special conclave, a total of 50 prom i­
nent U .S. business persons selected
by Greek governm ent’s Ministry of
The purpose of the convention was

Hawthorne Bank of Wheaton
Sponsors CPR Course

Mark W . Johann, loan officer, was
recently promoted to manager of the
instalment loan department of First
Galesburg National Bank. He joined
the bank’s instalment loan depart­
ment in 1977 and was promoted to
loan officer in 1978.
Mr. Johann received a BS degree in
business administration from Illinois
State University in 1976.

Promoted at Oak Brook
The First Security Bank of Oak
Brook recently announced the promo­
tion of Steven Opl to the position of
loan officer.
Mr. Opl joined the bank in 1975 and
has served in the loan department re­
viewing instalment loan applications.
His new duties include making instal­
ment and commercial loans. He gradu­
ated from the 1979 National Instal­
ment Credit School in Norman, Okla.,
and attended the College of DuPage.

Hosts Investment Seminar

HAWTHORNE Bank of Wheaton recently
sponsored an intensive nine-hour course in
Cardio-Pulmonary Resuscitation for all
bank employes and their fam ilies, accord­
ing to William J. Davis, pres. Classes were
held in the bank lobby.

Crestwood Bank recently hosted a
seminar on financial investments for
municipalities and public agencies.
William J. Murphy, president of the
bank, discussed how public organiza­
tions can best invest their funds to
earn the maximum return for their
Robert L. Tomiello, assistant vice
president of the Harris Trust and Sav­
ings Bank in Chicago, described the
various types of investments designed
for short-term investment periods.
Over 20 communities and public agen­
cies were represented at the morning



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Northwestern Banker, July, 1980


Midland Correspondent team. Not only can you
call them anytime you need some fast answers,
you can call them toll free. THE NUMBER IS
1-800-752-4200 IN MINNESOTA* The names
are Stan Peterson, Marge Lamosse, Mike
Bodeen and Jackie Dunn. They represent the
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Banker, July, 1980
Federal Reserve Bank of St. Louis


NEW OFFICERS— Pres. Richard Gandrud; 1st V.P. Robert Welle; 2nd V.P. John Ingebrand, and Treas. Don Sirek.

Richard Gandrud Heads Minnesota Bankers
IC H A R D E. Gandrud, presi­
dent, Pope County State Bank,
Glenwood, was elected president of
the Minnesota Bankers Association
at the 90th annual convention held in
Duluth last month. He succeeds
James T. Gowan, vice president,
First National Bank, St. Paul.
Mr. Gandrud will be assisted by
the following: first vice president—
Robert J. Welle, chairman, First N a­
tional Bank, Bemidji; second vice
president—John P. Ingebrand, pres­
ident, Kanabec State Bank, Mora,
and treasurer— Donald A . Sirek,
president, State Bank of New
Prague. Truman Jeffers continues as
executive vice president.
Appearing as a key speaker, C. C.
Hope Jr., president of the American
Bankers Association,
that he will head a group on a trade
mission to China on A ugust 4. A B A
feels that it can be an important influ­
ence in developing trade between the
two nations.
Mr. Hope explained the highlights
o f the 1980 Depository Institutions
Deregulation and M onetary Control
A ct, saying that it is the m ost his­
toric legislation since 1913. (A review
o f the A ct appears on page 27 o f the
M ay issue - o f the N orthwestern
B anker .) He added that in 1978 there
were 67,000 pages o f financial
regulations in the Federal Register,
and more are being added each year.
Mr. Hope believes that the problem
o f regulations is only exceeded by our
problems with energy and inflation.

Federal Reserve Bank of St. Louis


Elimination of premium giveaways
for deposits was added to the list of
resolutions this year when the Minne­
sota Bankers Association announced
support o f the proposal made by the
Federal Depository Institutions D e­
regulation Committee. M ost other
banking trade groups, including
A B A and B M A , favor the continued
use o f premiums, and some major
Twin Cities’ banks feel that the M B A
resolution is at odds with the free
enterprise system. Other resolutions
included rejection of a proposal to
withhold dividend and interest in­
come; elimination of the interest rate
differential, and removal o f interest
rate ceilings.
The new Certificate o f Deposit
Program, passed by the Minnesota
legislature, was explained by Howard
Bicker, assistant executive director,
State Board o f Investment, St. Paul.
The SBI will purchase CDs on a
quarterly basis, and three and six
months maturities will be available.
The unique feature o f the program
is the use o f the nine clearinghouse
banks in Minnesota (American N a­
tional Bank o f St. Paul, First Nation­
al Bank o f Minneapolis, First N a­
tional Bank o f St. Paul, Marquette
National Bank, Midland National
Bank o f Minneapolis, M idway N a­
tional Bank o f St. Paul, National City
Bank o f Minneapolis, Northwestern

National Bank of Minneapolis, and
the Northwestern Bank o f St. Paul)
and the Home Loan Bank o f Des
Moines as the focal point for other
financial institutions desiring to sub­
scribe to the program. These institu­
tions, which are called “ clearinghouse
institutions,’ ’ have correspondent
relationships with the vast m ajority
o f all financial institutions in the
state. The procedure is as follows:
On the second day of each January,
April, July and October (all days will
be m oved forward, e.g. second to the
third, for weekends and holidays) any
financial institution wishing to sub­
scribe to the program will call, be­
tween 11:00 a.m. and 4:30 p.m ., one
o f the clearinghouse institutions. The
clearinghouse institution will have all
necessary information relating to the
offering including its size, maturity
and yield. The yield will be set by the
SBI using the average secondary CD
rate quoted by the New York Federal
Reserve Bank on the morning o f the
subscriptions. This rate will be dis­
counted 10 basis points because the
CDs must be collaterized.
On the third day o f the month the
clearinghouse institutions will report
all subscriptions to the SBI. There is
no limit to the amount any one finan­
cial institution may request. The SBI
will then fill each subscription up to
$500,000 in full, provided that the
total does not exceed the amount the
SBI is prepared to place that quarter.
If the total offering has not been filled
by the allotments o f $500,000 or less,
all subscriptions over $500,000 will
receive allotments on a pro rata basis
to fill the offering.
By 9:00 a.m. on the fourth day of
the month, each financial institution
will call the clearinghouse institution
through whom it subscribed for noti­
fication o f its final allotment. That
morning the SBI will also mail to each
subscribing financial institution a
safekeeping agreement with four
copies that will acknowledge the
transaction and stipulate the face
amount, interest rate, interest at
maturity computed on a 360-day
basis, and the proceeds at maturity.
It will also allow the clearinghouse
institution to credit the financial
institution’s account at the clearing­
house institutions on settlement date
and to charge the financial institu­
tion’s account for the proceeds at
maturity date. The financial institu­
tion will also stipulate on the
safekeeping agreement the collateral
used to secure the CD. The market
Northwestern Banker, July, 1980


Minnesota News

value of the collateral shall equal 110 % M B A showed a $123,000 surplus due
of the face value o f the CD.
to record attendance at meetings and
workshops, according to Mr. Jeffers.
Truman L. Jeffers, who has com ­ He mentioned that the 1RS has
pleted 10 years as M B A executive alleged certain profits in its insurance
vice president, presented an overview activities—that the tax has been paid
of the future o f banking. He suggest­ —but that M B A is protesting the
ed that M B A will continue to feature 1RS action.
more workshops on specific topics in
order to keep ahead o f the fast pace o f
Budget Deficit
change. He said the Association will
Dr. William Freund, senior vice
soon make plans to expand its office president and chief economist of the
space to accommodate insurance re­ New York Stock Exchange, predicted
cords, word processing and com m un­ the budget deficit for the next fiscal
ication areas. During the past year,
year will be $40 billion to $50 billion;

the unemployment rate will rise to
9 % ; short term rates will be in the 7 %
range, and the prime rate will be at
9% by year-end. He forecast a bright­
er picture for the 1980s due to favor­
able population trends and new atti­
tudes on savings and investments.
Officers were installed at the
annual banquet, and “ Lonesom e”
George Gobel joined singer Cathy
Johnson and the Duluth Accordionnaires in providing entertainment.
The 91st annual convention will be
held June 15-16, 1981, at the Radisson South in Bloom ington.

LEFT— Renee and Jim Diebold, pres., GraniteFalls Bk.; Charles H. Nelson, pres., BackusSt. Bk., and John W. Morrison, chmn. & c.e.o.,
Northwestern Nat’l. Bk., Minneapolis. RIGHT— NeisTurnquist, 1 st v.p., South Dakota Bkrs. Assn., and pres., Nat’l. Bk. of South Dakota,
Sioux Falls, and wie, Margie, and Don Pederson, sr. v.p., Northwestern Nat’l. Bk., Minneapolis.

LEFT— Bob Jacobson, v.p., American Nat’l. Bk. & Tr., St. Paul; Warren Gibson, pres., Citizens St. Bk., Brandon, and wife, Rose, and Don
Johnson, v.p., American Nat’l. Bk. & Tr. Co., St. Paul. RIGHT— John Ingebrand, pres., Kanabec St. Bk., Mora, and wife, Marce; Len
Eirickson, v.p., Marquette Nat’l. Bk., Minneapolis, and wife, Kathleen; E. D. Buerkle, pres., Farm. & Merch., New York Mills, and JoAnn
Krueger, inv. dept., Marquette Nat’l. Bk., Minneapolis.

LEFT— Don Stein, pres., First St. Bk., Spring Lake Park, and Paul Lindholm, sr. v.p., Northwestern Nat’l., Minneapolis, look over 1980
MBA resolutions. RIGHT— Marilyn and George Rekow, pres., First Nat’l. Bk., Chaska, and Kay and Jim Russell, corres. bk. off., First
Nat’l. Bk., St'. Paul.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

James Russell, Correspondent Bank O fficer, Twin City Metro Area (612) 291-5581

“ I can increase your services
without increasing your sta ff.”
“ There are times when a bank’s customers need
more services, more expertise, than it has
available. Sometimes situations arise that require
a staff much larger than you may have.
“ That’s where I can help by bringing the full
resources o f First Bank Saint Paul to bear on
your problem. And when you get a bank with
our size and experience working for you, you ’ re
money ahead.
“ M y jo b is to help analyze your needs and
provide the extra services you require without
increasing your $taff.
“ T o do my jo b effectively, I stay on top o f
the latest developments in banking. I’m in
Federal Reserve Bank of St. Louis

constant contact with banks in the metro area.
“ M y jo b is to make your jo b easier. So give
me a call.”

First Bank
Saint Paul
Correspondent Bank Division

W e do our job.
You get the credit.
The First National Bank of Saint Paul • Member FDIC
Northwestern Banker, July, 1980


Minnesota News

Pictures from the Minnesota Bankers Convention

STAR PERFORMER George Gobel. CENTER— Cliff Sommers, former ABA pres., and Jim Gowan, MBA pres, (accepting Savings Bonds
award). RIGHT—ABA Pres. C. C. Hope Jr.

LEFT— Roger Raina, asst, v.p., and Michael LaVigne, corresp. bk. off., Fist Nat’l. Bk., Minneapolis; Ralph Rathmanner, pres., Citizens
St. Bk., Winsted, and wife, Dorothy; Ray Johnson, v.p., First Nat’l. Bk., Minneapolis; Kath LaVigne, and Walt Fries, e.v.p., Farmers St.
Bk., Russell. RIGHT— Nancy and John Berg, pres., Wayzata Bk. & Tr. Co., and Kenneth A. Wales, v.p., First Nat’l. Bk., Minneapolis.

LEFT— Hugh Rogers, v.p., Alexandria St. Bk., and Earl Lundeen, v.p., Manufacturers HanoverTr. Co., New York, inspect gift presented
at Midland of Minneapolis function. RIGHT— Jodi and Mike Pieschel, pres., Farmers & Merchants St. Bk., Springfield (seated); Ernest C.
Pierson, e.v.p., Midland Nat’l. Bk., Minneapolis; Len Griffith, sr. v.p., and Robert F. Poirier, e.v.p., First Nat’l. Bk., Duluth.
Banker, July, 1980
Federal Reserve Bank of St. Louis

Minnesota News


LEFT— DickStorlie, v.p., NW Nat’l. Bk., Minneapolis, left, and Don Pederson, sr. v.p., NW Nat’l. Bk., Minneapolis, present duck stamp
plaque to Jim Gowan (right), MBA pres, and v.p., First Nat’l. Bk.,St. Paul. RIGHT—Stan Peterson, v.p., Midland Nat’l. Bk., Minneapolis,
presents Les Kouba painting to Paul Gandrud Jr., cashier, Swift Co. Bk., Benson, in honor of his bank’s 50-year association with Midland.

LEFT— R. B- Cameron, pres., First Nat’l. Bk., Deer River; Richard Hogan, mgr., Kerrick office, Sec. St. Bk., Askov, and Clair Wilcox,
pres., Grand Rapids St. Bk., admire golf trophy won by Bill Langford, sr. v.p., American Nat’l. Bk., St. Paul. Bill won the golf tourney with
a 75 gross score. RIGHT— Newly-Elected MBA Pres. Richard E. Gandrud confers with MBA Exec. V.P. Truman Jeffers.

LEFT— Gene Beito, pres., Northern St. Bk. of Thief River Falls, and wife, Gretchen; Ginny and Andy Sail, exec, v.p., First Nat’l. Bk., St.
Paul. RIGHT— David L. James, v.p., Citicorp Remote Computing Services, Inc., Garrettsville, Ohio; Frank Farrar, Britton, S.D.; Joe
McChristian Jr., a.v.p., Correspondent Resources, Inc., New York, and wife, Lynn.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980

IRST Bank System , Inc. has
announced that it has filed with
the Securities and Exchange Commis­
sion a registration statement covering
a proposed $75,000,000 offering of
10.05% notes due June 1, 1983.
Interest on the notes will be payable
semi-annually on June 1 and Decem­
ber 1, commencing December 1, 1980.
The First Boston Corporation was
named manager of the underwriting
syndicate. The notes will not be subject
to redemption prior to maturity.

plem enting an effective consum er
compliance program and discuss its
use in day-to-day contact with cus­


Approval was recently granted by
the Comptroller of the Currency for
Northwestern National Bank of Saint
Paul to open its second detached facil­
ity, to be located at White Bear Ave­
nue and Beam Avenue adjacent to the
Maplewood Mall shopping complex.
A temporary facility will be estab­
lished on this site within the next few
months with the permanent structure
scheduled for completion in the spring
of 1981.
* * *
N orthwestern N ational Bank o f
Saint Paul recently approved the fol­
lowing elections
_ ^
and promotions.
Gale D. Kafka ' j j r ^
!||| '
was elected vice
-.fpresident in the
fin a n c ia l planÆi
ning and control
Jf Cdf
division. Mr. Kafka, a graduate of
the University of
Minnesota, joins
N o rth w estern
from Peat, Marwick, Mitchell and Co.,
Minneapolis, where he was a mana­
ger in the a cco u n tin g and au dit
Arthur B. Cahalan was promoted
to vice president from assistant vice
president. He joined Northwestern in
1971 and is manager of the commer­
cial real estate division.
David R. Warner was promoted to

Banker, July, 1980
Federal Reserve Bank of St. Louis

* * *





vice president from assistant vice pres­
ident. He joined Northwestern in 1972,
has worked as a sales and marketing
representative and is presently in the
m etropolitan /region al com m ercial
banking division.
Sandra M. Hauth was promoted to
assistant vice president from commer­
cial banking officer. She joined North­
western in 1971 and is presently in the
m etropolitan /region al com m ercial
banking division.
Margaret Hall-Brown was elected
operations officer. She joined the bank
in 1978 and is operations manager at
Northwestern’s North Suburban office
in Arden Hills.

The M inneapolis Chapter o f the
American Institute of Banking and
the Minnesota Bankers Association
are co-sponsoring a Consumer Com­
pliance Seminar to be held October 2022 at the Minneapolis Hilton Inn.
The seminar will be of primary in­
terest to all customer-contact staff in­
volved in customer credit activities. A
guest panel will outline steps for im-

Lorraine Holmes has been pro­
moted to cashier of the St. Anthony
N ational Bank.
She has been
w ith th e b a n k
since 1962 serv­
ing as assistant
cashier and many
other duties relat­
ing to bank opera­
tions. Ms. Holmes
began her bank­
ing career in 1952
with NorthwestL' H0LMES
em National Bank of Minneapolis.
* * *
Northwestern N ational Bank of
M in n e a p o lis has a n n ou n ced the
ap p oin tm en t o f
five new vice
presidents in the
bond and tru st
S tev en
A lm q u is t w as
named vice presi­
dent of the money
market division.
He joined North­
western May 1 as
manager of the money market division
of the bond department and formerly
was head of the treasury division of
Northwest Bancorporation.




What this symbol means in the Midwest.




















Call your full-service correspondent banker (612) 372-8200

National Bank
Of Minneapolis

An A ffilia te of N o rth w e s t B an c o rp o ra tio n

M e m b e r FD IC
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Our C orrespondent
Bankin g P ersonnel are
now R eorganized to be
Even M ore P erson al
At First Bank Minneapolis,
we think it’s important to
listen to our customers and
understand their needs. That’s
why we’ve reorganized our
Correspondent Banking
Department. To give you the
kind of attention you want and
need now and for the future.
Like quicker turn-around

Ken Wales
Vice President &
Department Head
Glen Walters
Vice President &
Assistant Department Head


Minnesota Correspondent
Banking Division
Raymond H. Johnson
Vice President,
Division Head
Frank L. Brosseau
Assistant Vice President
Allen G. Highum
Assistant Vice President
Jerry Larson
Assistant Vice President
Michael P. LaVigne
Correspondent Banking
Beverly Kieffer
Correspondent Banking

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

on credit requests, and more
rapid response to all your
needs. This means more
attention from your
Correspondent Banker, as well
as our management.
So take some time to get
acquainted with our new
organization. You’ll find it’s
what you’ve been asking for.


Minnesota Map
Jack L. Quitmeyer
North Dakota
Michael E. Boncher
North Central Wisconsin
Rick Kunst
South Dakota

John L. Franklin

East-West Correspondent
Banking Division
Michael E. Boncher
Assistant Vice President,
Division Head
John L. Franklin
Assistant Vice President
William W. Hamilton
Assistant Vice President
Rick Kunst
Assistant Vice President
Jack L. Quitmeyer
Correspondent Banking
Mark Landreville
Correspondent Banking


Mark Landreville
Upper Michigan;
Western & Southern Wisconsin

William W. Hamilton

Correspondent Cash
Management Division
Roger Raina
Assistant Vice President
& Division Head
Brad Benzick
Cash Management Assistant 370-5244
Judy Watts
Cash Management Assistant 370-3947
Correspondent Support Division
Zylpha Gregerson
Correspondent Banking
Officer, Division Head
June Swanson
Administrative Assistant
Delores Ellis
Special Services

We a re w h a t you w a n t a b a n k to b e.

First Bank
M inneapolis
First Bank Minneapolis, First Bank Place,
Minneapolis, MN 55480* M em ber FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Twin Cities News



Wallace E. Erickson and Richard
O. Hanson were named vice presi­
dents in the development division of
the personal trust department. Mr.
Erickson joined the trust department
in 1957 and was formerly assistant
vice president. He has a law degree
from Mitchell Law School.
Mr. Hanson joined Northwestern in
1951 and was formerly assistant vice
president. He has a law degree from
the U niversity o f M innesota Law
Ronald G. Hoffman and Win J.
Neuger were named vice presidents in
the investment research division of the
trust investm ent departm ent. Mr.
Hoffman joined Northwestern in 1971
and had been an assistant vice presi­
dent since 1978. Mr. Neuger joined
Northwestern in 1973 and was elected
assistant vice president in 1978. Both
m en a r e C h a r t e r e d F i n a n c i a l
Robert R. Corrick and A . W.
"Bill” Davis were appointed assistant
vice presidents in the corporate fi­
nance division of the regional bank­
ing group.
Prior to joining Northwestern, Mr.
Corrick was with the corporate finance
department of the Prudential Insur­
ance Company of America. Mr. Davis
was with the Eberhardt Company be­
fore joining the bank.
T he b a n k h a s a n n o u n c e d th e
appointment of these 13 new officers:
James R. Horn Jr. to dealer fi­
nance officer, corporate banking, Mid­
west Department I.
Stephen R. Sefton to commercial
banking officer, manufacturing and
electronics division of corporate bank­
ing, M idw est D epartm ent II, and
John L. Matyi to commercial banking
officer in the retail, wholesale and
transportation division of the same
David J. Lubar to com m ercial
banking officer of the correspondent
and commercial credit division and
Timothy R. Skildum to correspond­
ent ba n k in g officer o f the co rre ­
spondent contact division, eastern

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

region in the correspondent banking
Lorraine M. Hyde to consumer
services officer, consumer and offices
banking group.
Murli D. Sujanani to tax officer,
personal trust division, tax section,
personal trust department.
James W. Burnstad to trust in­
vestment officer in the securities trad­
ing division, trust investment depart­ R. H. YOUNGSTRAND
o f the life and health m ark etin g
Patrick M. Griffin and Warren G.
Herreid to systems officers in the sys­
Kent D. Rahn has been appointed
tems division.
m arketing officer and m anager of
Kenneth O. Beckwith and Mau­
advertising-delivery for FBS. Most re­
reen K. Stauber to operations officers
cently he was manager of the Vernon
in the deposit operations division.
Avenue facility of First Bank Edina.
Nancy B. Webster to operations offi­
cer in the facilities management de­
* * *
partment. All of these areas are in the
operations group.
Marilyn R. Halverson has been
named a personal
* * *
banking officer at
S econd N orth ­
Len Erickson, a 25-year veteran
w e s te rn B an k .
correspondent banker, retired from
She j o i n e d the
M a rq u e tte N a ­
bookkeepin g
tional Bank on
department of
June 30.
Second North­
He joined M ar­
western in 1967
quette in 1955 as
and held a teller
assistant credit
position prior
manager for the
to being nam ed
commercial loan
bookkeeping supervisor.
department. He
later transferred
* * *
to the correspon­
dent bank deL- EfNCKSON
American National Bank & Trust
partment handling overlines and Co., Saint Paul, has announced that
bank stock loans. A great many John C. Palmer
bankers in the upper midwest area has j o i n e d the
have benefitted from his ability to trust division as
arrange financing.
assistant vice
Mr. Erickson served on the U .S.S.
p r e s id e n t and
Philadelphia for 38 months during
head of the corpo­
W orld War II. He obtained his CPA
rate trust and em­
certificate while with Haskins and
ploye benefits
Sells following the war. He has been
an active member of the Minnesota
department. He is
Chapter of Robert Morris Associates
an attorney and
for 15 years, and served as president
holds a BA degree
in 1974-75.
from Gustavus Adolphus College and
He and his wife are planning to
a JD degree from Drake University
retire to Sun City, A riz., which will
put them at a safe distance from
Minnesota winters and closer to their
daughter and grandchildren in San
Jose, Calif.
* * *
Fredric H. Youngstrand has been
elected a vice president of First System
Agencies, Inc., the insurance subsidi­
ary of First Bank System, Inc. He
joined the firm in 1979 as manager



Twin Cities News

College of Law. He formerly was a re­
search director with IDS Plan Serv­
ices, Inc., Minneapolis, and a trust
officer with First Bank Minneapolis.
W alter Opal, trust officer, was
named assistant vice president and
trust officer. Mr. Opal, who joined the
bank in 1977, is an attorney and came
to American from Valley Bank, Appleton, Wis.
Robert Jenkins, assistant trust
officer, was named trust officer. He
joined the bank in 1978 and is an attor­
ney fo rm e rly en ga ged in priva te

The M in n esota C h apter o f the
Robert Morris Associates, the national
association of bank loan and credit
officers, has elected its new slate of
officers and directors for the coming
The following bankers were voted
into office: president — David M.
Hyduke, group vice president, Amer­
ican National Bank & Trust Co., St.
P aul; vice presid en t — John H.
Olson, president, Banco Financial
Corp.; M inneapolis, and secretarytreasurer — Dale S. Hanson, vice
president, First Bank St. Paul.


Two Tw in C ities bankers were
elected to the board of directors, David
M. Gilman, president, Fidelity Bank
& T r u s t Co. , M i n n e a p o l i s , and
Raymond M. W ollum, vice pres­
ident, M id w a y N a t io n a l Bank,
St. Paul.
* * *
M idland N ational Bank o f M in­
neapolis has nam ed D ’A rcy MacManus & Masius as its new marketing
and a d v e r t i s i n g a g e n c y . The
announcement was made by Richard
Erickson, corporate marketing direc­
tor of the bank.

First Bank Minneapolis Reorganizes Correspondent Dept.
M A JO R reorganization o f the
correspondent banking depart­
ment at First Bank Minneapolis is
designed to enhance the level of serv­
ice to respondent banks by structur­
ing two banking divisions and two
support divisions.
In addition to this divisional re­
structuring, Vice President Glen R.
W alters has been prom oted to the
new position of assistant department
head. He will report to Kenneth A .
W ales, vice president, who continues
as department head of the corre­
spondent banking division.
The two new banking divisions will
consist of a Minnesota division, con ­
centrating on all Minnesota banks,
and an East-W est division, focusing
on banks in W isconsin, Iowa, North
Dakota, South Dakota, Nebraska,
W yom ing, Montana and upper M ich­
Raymond Johnson, vice president,
will head the Minnesota correspond­
ent banking division. This division
will consist o f Frank Brosseau, H en­
nepin and nearby counties; A1 Highum, southern Minnesota; Michael
LaVigne, western Minnesota; Bev­
erly Kieffer, eastern Minnesota, and
Jerry Larson, northern Minnesota.
M s. Kieffer and Mr. Larson are
new additions to the correspondent
banking staff. M s. Kieffer has been
with First Bank Minneapolis since
1966 and has an extensive banking
and credit background. Mr. Larson
had previously been in the corre­
spondent services division and has a
background in financial analysis.
T he E a s t - W e s t co rre sp o n d e n t
banking division will be headed by
Michael Boncher, assistant vice
president. This division will consist
of John Franklin, Montana, W yom ­
ing and Nebraska; Bill Hamilton,
Iowa; Jack Quitmeyer, North Da-

Federal Reserve Bank of St. Louis





kota; RickKuntz, South Dakota, and
Mark Landreville, southern and
western W isconsin and upper M ichi­
Mr. Landreville and Mr. Kuntz are
new additions to the division. Mr.
Landreville has a credit background
with First Bank Minneapolis and Mr.
Kuntz was m ost recently head of the
agriculture loan department of First
Bank Havre, Havre, M ont. Mr.
Kuntz, along with Mr. Franklin, will
provide the division with additional
depth and expertise in agricultural
Two additional divisions, corre­
spondent support and cash manage­
ment, also have been formed as part
of the reorganization.
The correspondent support divi­
sion will be headed by Zylpha Gregerson and will be responsible for
assisting in analyzing new credit re­
quests and the administration of cor­

re sp on d en t b a n k in g d ep a rtm en t
credits. Other non-credit adminis­
trative functions also will be handled
in this division.
Roger Raina will head the corre­
spondent cash management division,
which will be responsible for provid­
ing cash management services to the
correspondent banks including de­
pository services, cash letter process­
ing and rapid check collection.
D. H. Ankeny Jr., president of
First Bank Minneapolis, said the or­
ganization is a result of an intensive
research study which the bank con­
ducted last fall.
“ Despite the fact that w e’re in a
leadership position in this area, we
were not content to sit still,” Mr.
Ankeny said. “ W e undertook this re­
search and the subsequent reorgan­
ization to better position ourselves to
meet the changing needs of the corre­
spondent banking m arket.”
Mr. Ankeny said research indicat­
ed that respondent banks want closer
contact with their calling officers;
fast, efficient service; contact with
top management, and a long range
commitment on the part of their cor­
Mr. Wales said the reorganization
addresses itself to those needs and
“ W e have increased the number of
our calling officers which will allow us
to provide more attention and service
to each of our custom ers,” Mr. Wales
“ By adding the correspondent sup­
port and cash management divisions,
we will be able to increase our service
level and help minimize errors,” he
Mr. Wales also stressed that the
geographic divisions would provide
greater depth and allow for much
stronger back-up support.
Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis


Minnesota News

Irwin Jacobs Sells 11 Minnesota Banks
A L E of the seven banks in the
Mid America Bancorporation,
Inc., was announced last month by
Irwin Jacobs, 39, chairman. A t the
same time, the sale of four banks
owned personally by Mr. Jacobs also
was announced. Mr. Jacobs, who
lives in W ayzata, thus has sold his
holdings in the banking business and
will devote his time exclusively to
other investments and businesses he
The seven M id Am erica banks were
sold as follows:
Coon Rapids— First M id America
State Bank. Sold to a group headed
by Seymour Schoenweter and Donald
Stein. Both men also are associated
with First State Bank o f Spring Lake
Park, where Mr. Stein is chairman
and president and Mr. Schoenweter is
vice president (inactive).
Cottage Grove— M id America N a­
tional Bank. Sold to Robert E.
Keyes, chairman o f the Minnesota
State Bank o f St. Paul and Caledonia
State Bank of Caledonia. Mr. Keyes
owns eight other banks in W isconsin
and Colorado.
Eagan— M id America National
Bank. Sold to Mr. Keyes.
Hutchinson— First National Bank.
Sold to a group of Minneapolis bank­
Maplewood— Hillcrest M id A m er­


ica State Bank. Sold to B. John
Barry, chairman of Town & Country
State Bank in Newport and Blue
Earth State Bank in Blue Earth.
Roseville— Mid America National
Bank. Sold to W . Donald Larson,
trucking industry executive.
St. Paul— M id America State
Bank of Highland Park. Sold to a
group o f employes headed by
President John D. Turner.
The four banks sold by Mr. Jacobs
Mankato— National Bank of Com ­
merce. Sold to B. John Barry, chair­
man of Town & Country Bank in
Newport and Blue Earth State Bank
in Blue Earth, and James Chafoulias,
director o f the Newport and Blue
Earth banks.
North Mankato— Valley National
Bank. Sold to Glen Taylor, president
of Carlson Craft, Mankato, and a di­
rector of Valley National for many
Sherburn— Farmers State Bank.
Sold to a group of local people headed
by James D. Lytle, president of the
bank for several years.
St. James— Citizens State Bank.
Sold to Lloyd A . Am undson, owner
and chairman of First Security State
Bank o f Sleepy Eye and State Bank
of Madison and other banks.

Joins Crystal State as VP
Michael S. Higgins has joined the
Crystal State Bank staff as vice presi­
dent in charge of
loans. M ost re­
cently he served
with M idland
National Bank
and had been in
the corresp on d ­
ent bank division
since 1977. Mr.
Higgins previous­
ly held positions
with the Fifth Northwestern National
Bank in Minneapolis and the First
National Bank of Duluth.

Joins 1st Bank Edina;
New Director Elected
H. J. Wogsland, president of First
B ank Edina, has a n n ou n ced the
election o f Paul
W enino to com ­
mercial loan offic­
er. Mr. W enino
began his bank­
ing career in 1976
at First Bank Vir­
ginia as a man­
agement trainee
and w as pro­
moted to commer­
cial loan and real
estate officer in 1978. He is a 1976
graduate of Concordia College.
Floyd Hall has been named to the
board of directors. He is president and
chief executive officer of B. Dalton
Bookseller, a nationwide book store
chain based in Minneapolis. He is a
recent graduate of the Harvard Busi­
ness School’s Advanced Management

Joins NW Nat’l., Hastings

Call the hotline number for the
latest Money Market News and
offerings of municipals,
governments, agencies,
secondary market loans,
negotiable certificates
of deposit and other
short term investments.


These fixed income securities are
available with maturities from one
day to 3 0 years.

Saint Paul

A Full Service Bank

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

612-2 9 1 -5 6 59
Investment Services Group
First National Bank
of Saint Paul
St. Paul, Minnesota
Member FDIC

Richard P. Pike, president of the
Northwestern National Bank of Hast­
ings, has a n ­
nounced the elec­
tion of Michael J.
Schumacher as a
commercial loan
Mr. Schumach­
er r e c e i v e d a
BSBA degree
from C reigh ton
University, Oma­
ha, in 1976. He
worked as a tax auditor for the State of
Nebraska in Scottsbluff before joining
Banco in 1978 as an internal auditor in

Independent banks
face some very real threats
to their survival in the 80’s.
Butthey don't have to face them alone.
As an independent banker,
you are facing some enormous
challenges and changes.
An important part of our
role as your correspondent part­
ner is to give you the support you
need to meet those challenges. So
you can compete and survive in
a world of giant banking groups.
For over 30 years, we've
been helping independent

community bankers by providing
a full range of correspondent ser­
vices. We will continue to provide
and improve those services in
the future.
That's important. But even
more important, is the respect
and support we can give to you,
the independent banker. So you
will not only survive the 80's —
you will prosper.

Am erican
National Bank
and Trust
Com pany
C o rresp on d en t D ep artm ent
5th & M in n eso ta Streets
St. Paul, M in n esota 55101
(612) 2 9 8 -6 00 0

The Independent Bank’s Correspondent Canner.


B ® W «S


Federal Reserve Bank of St. Louis



Minnesota News

the O m aha region. Last year he
started as a regional credit trainee at
the U.S. National Bank of Omaha.

Maple Grove Bank Opens New Facility

Named VP at Northfield
Jerry M. Van W yk has been named
vice president o f Northwestern State
Bank of Northfield. Previously he was
in financial analysis and planning
for Banco.
Prior to joining Banco, Mr. Van W yk
was in systems and operations in the
Iowa-Des Moines National Bank. He is
a graduate o f Central College in Pella,
Iowa, and has an MBA degree from
Drake University.

Promoted at Appleton Bank
Two employes o f the Farmers &
M erchants State Bank, A ppleton,
W ade Schm idt and Tom Swenson,
were named assistant cashiers at the
bank’s recent annual meeting.
Mr. Schmidt has been with the bank
for 3V2 years, joining the staff after his
graduation from Moorhead State Uni­
versity. Mr. Swenson has been with
the bank for 4V2 years, previously
working for a Minneapolis insurance

NORTHWESTERN Bank Northwest, Maple Grove, recently opened Its second full-service detached
facility, according to James Heig, pres. The grand opening for the new office, located at the Maple Grove
Mall, was held June 19-21. Features include an Instant Cash ATM, motor banking and safety deposit

W. St. Paul State Donates Band Trailer

George M. Robertson Sr.
Funeral services were held in Wino­
na for George M. Robertson Sr., 85, a
retired area banker. He came to W ino­
na in 1937 as executive vice president
of First National Bank of Winona, now
First Northwestern National Bank.
Mr. Robertson was elected president
in 1940 and chairman in 1958, retiring
in 1960. He was previously associated
with Union Bank & Trust Co. in Hel­
ena, Mont.

Bankers Named to Board
John Cochrane, president of North­
western National Bank in Rochester,
and Roger Popp, vice president of First
N orthwestern Bank in Red W ing,
were recently elected to the Courage
Center board of directors at the group’s
annual meeting in Minneapolis.
Courage Center, headquartered in
Golden Valley, provides services of re­
habilitation, education, employment
and recreation to individuals with
physical disabilities.

American Nat’l., St. Cloud
Tells Trust Dept. Changes
Anita B. Hanson has been promoted
to trust officer at the First American
National Bank o f St. Cloud, according
to A. D. Didier, president. Ms. Hanson
has been with First American’s trust

Banker, July, 1980
Federal Reserve Bank of St. Louis

THE Henry Sibley High School Championship Marching Band recently paraded into the West St. Paul
State Bank parking lot to receive a new band instrument and equipment trailer donated by the bank. The
24-foot Wells Cargo trailer was turned over to John Minors, center right, band dir., by West St. Paul State
Pres. J. Robert Stassen. West St. Paul Mayor Ken Kube and Jim Froelke, pres, of the Sibley Band
Parents, attended the event, along with a number of local public officials. The $5,000 trailer features a
special water tank which dispenses ice water to refresh band members at the end of a day's march.

department since 1978. She is a gradu­
ate of the University of Minnesota and
attended the National Trust School at
Northwestern University.
Duane E. Cramer has joined the
bank as an assistant vice president
and trust officer. Mr. Cramer is a
graduate of Dajkbta State College and
received a JD degree from the Uni­
versity of South Dakota. He previously
managed the trust department at the
Am erican N ational Bank of Chey­
enne, Wyo.

Record Master Charge
Volume Shows Slower Pace
The dollar volume of Master
Charge/MasterCard transactions in
the midwest reached a new record
level of $279,546,000 in the first quar­
ter of 1980, despite an apparent slow­
ing in the charge card’s growth.
Volume was up seven per cent over
the first three months of 1979, while
the growth for the same period in 1979
over 1978 was 28%.


N W N a t’l., Sioux Falls
Welcomes Rotary Group


South Dakota
J. W. Thomson, pres., Centerville
J. M. Schwartz, exec, mgr., Pierre


Sioux Falls Branch To Have New Building
r o u n d b r e a k i n g ceremonies
for the Northwestern National
Bank, Stockyards branch, to be located


on the southwest com er of Cliff Ave­
nue and Rice Street in Sioux Falls
were recently held.
The new facility will replace the ex­
isting branch office which is located at
828 E. Rice St. The bank will offer all of
the features o f a full service bank, in­
cluding six teller stations, an Instant

Cash machine and three auto bank tel­
lers with the provision to expand to
five in the future. One of the teller
stations will operate as a post office
The building which will encompass
6,720 square feet will have a western
m otif expressed in materials and decor
to reflect the close ties the bank has
with the agri-business community.
The facility will be completed in the
early fall.

C. P. “Buck” Moore, pres., Northwestern
National Bank of Sioux Falls, far left, wel­
comes a Rotary Group Study Exchange of
Australians from New South Wales. The
men are spending six weeks in the area
visiting people and studying institutions.
The group stopped at NW National on their
first day, touring the facilities and discuss­
ing banking and economics with bank

Elevated at Rapid City
United National Bank, Rapid City,
has announced
the promotion of
Rosemary Hogan
to the position of
customer service
officer. She has
been with the
bank for four
years and has
served in various
capacities, in­
cluding teller suR- HOGAN
pervisor. She has been in the banking
field for 20 years.

THE NEW building for the Stockyards branch of NW Nati, Sioux Falls, will be completed this fall.

Hosts Cash Seminar
NW Nat’l., Sioux Falls
Announces Appointment
Three promotions were announced
recently at the Northwestern National
Bank of Sioux
Falls, according
to C. P. "B u ck ”
Moore, president.
L e o n a r d S.
D ankey, who
joined the bank in
1978, was named
personal loan
officer, Westwood
office. He has a
bachelors degree
in agriculture from South Dakota
State and an MBA from the University
of South Dakota.
Robert C. Oliver was elected com­
mercial loan officer, main office. He is
Federal Reserve Bank of St. Louis



a graduate of the University of South
Dakota with a bachelors degree in eco­
nomics and an MBA. He moves from
the Westwood office where he was a
personal loan officer.
Marilyn J. Murray was named per­
sonal banking/student loan supervisor
at the main office. She joined the bank
in 1974 and was formerly a personal
banking representative.

A three-day seminar called "Fron­
tiers of Corporate Cash Management”
will be held in Chicago at the Ritz
Carlton Hotel July 9-11 and again
July 21-23 at the Ambassador East
Hotel. The programs, sponsored by
First Chicago Corporation, deal with
state-of-the-art cash management sys­
tem, design, and decision support
Presentations will focus on current
practice and prescriptions for address­
ing cash management system design
problems. Participants and faculty
will discuss strategies for coping with
the rampant changes occurring in the
cash management environment.
Enrollment is limited to 40 corpo­
rate cash m anagers, treasurers or
CEOs, who will be divided into small
task groups for specific problem solv­
ing sessions.
Northwestern Banker, July, 1980

OFFICERS of the North Dakota Bankers Association for 1980-81 are, from left, front row:
Immed. PAST Pres.— MorrisT. Nelson, pres., Scandia American Bank, Stanley; Pres.—C.
N. Davis, sr. adm. off., First State Bank of Cando; Pres.-Elect— T. A. Roney, pres., Foster
County B&T, Carrington; Vice Pres.— John M. McGinley, pres., American State Bank,
Williston. Back row: Treas. — L. F. Gerhart, pres., Mandan Security Bank, and Exec.
Dir. — Harry J. Argue, Bismarck.

C. N. Davis Named President of NDBA
Tom A . Roney, president of the
Foster County Bank & Trust Com ­
pany in Carrington. The new vice
N. D A V IS was elected presi­ president is John M. M cGinley, pres­
d e n t of the North Dakota Bank­ ident of American State Bank in
ers Association for the 1980-81 at the W illiston. Treasurer is L. F. Gerhart,
95th annual N D B A convention in president of Mandan Security Bank,
Bismarck M ay 20. Mr. Davis is senior Mandan. Harry J. Argue continues
administrative officer of the First as executive director.
T. A . Solheim, A B A state vice
State Bank of Cando. In his new post,
for North Dakota and
Mr. Davis succeeds Morris T. Nelson,
president of Scandia American Bank chairman of American Bank and
in Stanley, who served as president of Trust Co., M inot, presided at the
A B A meeting. Dan P. Schorsch,
the association this past year.
Advancing to president-elect, was president of First National Bank of
Jamestown, was elected to a two-year
term on the A B A council effective
with the conclusion of the A B A con­
vention this fall. He will succeed Mr.
Solheim. The other N D B A represent­
ative on the council is Edward L.
Olson, executive vice president, First
National Bank in Grand Forks. All
three men are former N D B A presi­
The Kirkwood M otor Inn in B is­
marck was the site of the 1980 con ­
vention, which was attended by 450
bankers, spouses and associate mem­
In his President’s Address, Mr.
Nelson proposed that the N D B A and
the Independent Bankers of North
Morris and Gloria Nelson admire the bronze
western sculpture presented to him as a gift Dakota hold a joint convention, with
for service as NDBA president this past one-half day set aside for separate
meetings of the two groups. Mr.


Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Nelson noted that mounting costs of
speakers and facilities for conven­
tions, as well as the interest by so K
many North Dakota bankers in both
D u rin g the annual b u sin ess >
session, four amendments to the
N D B A constitution and by-laws were
presented by G. C. Anderson, presi­
dent of the Bank of Tioga. The print­
ed ballots were distributed to each
bank present, and also were sent by
mail following the meeting to each
bank not represented at the conven­
tion. The first provides that the posi­
tion of treasurer be combined with
that o f the vice president, whose title
would become vice president and
treasurer. The second would reduce
from three to two years the term of
past presidents on the N D B A execu­
tive council after the conclusion of
their presidency. The third change, in
the by-laws, would provide that the
nominating committee consist of the
nine executive council members elect­
ed by the groups, with the immediate
past president as chairman. They
would publish a proposed slate of
officers at least 30 days prior to the
annual meeting. The fourth change
proposed that in the event of a v a ­
cancy in the office of vice president,
the nominating committee be re­
assembled to nominate an individual
for the remainder of the term and
would assume office on approval by
the full executive council. If the v a ­
cancy occurs within the last three
months of the term, the office re­
mains vacant.
Seven bankers were awarded
plaques for 40 years of service. They
• Carlyle P. Austinson, executive
vice president, Northwood State
• James B. Collinson, president,

ABA Pres. C. C. Hope is greeted warmly as
he is introduced by NDBA Pres. Nelson.

North Dakota News

First National Bank, Devils Lake.
• Morris T. Nelson, president,
Scandia American Bank, Stanley.
• W . E. Summers, president,
S t u t s ma n C o u nt y St at e B ank,
• George H. Sumnicht, vice presi­
dent, First National Bank, Devils
• Robert V. Trousdale, president,
Commercial Bank o f M ott.
• Gordon H. W eber, president,

Farmers State Bank of Lisbon.
A plaque for 50 years service was
presented to Ralph L. Trom, presi­
dent o f the Kindred State Bank.
A 60-year plaque was presented to
Herbert M. Nash, chairman, Farmers
& Merchants National Bank, Hatton.
A fter an opening day of men’s and
wom en’s golf and bowling tourna­
ments, followed by the president’s
reception, dinner and dancing, the
second day of the 95th convention


opened with what has become a favor­
ite session—the Prayer Breakfast.
Presiding was Robert E. Caudel,
senior vice president of the Bank of
North Dakota in Bismarck. An
address was delivered by C. John
Miller, president of the Independent
Petroleum Association of America,
W ashington, D.C.
After viewing the new N D B A film,
“ G ood Fortune in the 1980s,” Pres­
ident Morris Nelson introduced the


LEFT— Pete Ankeny, pres., 1 st Nat’l., Minneapolis, and Bob Westbee, pres., 1st Bank of Bismarck. RIGHT— Ken Wales, v.p., 1 st Nat’l.,
Minneapolis, visits with a long-time friend, Dale W. Youngern, C.P.A., Grand Forks.

LEFT—Tom Stockert, v.p., 1st Nat’l., Minot, his wife, Kathy, and Stan Peterson, v.p., Midland Nat’l., Minneapolis. RIGHT— Dan
Schorsch, pres., 1st Nat’l., Jamestown, and Ted Solheim, chmn., American B&T, Minot.

LEFT— Bert Gerhart, pres., Mandan Security Bank, and his wife, Rose, and Mary and Jack Campion, a.v.p.-inv. dept., Marquette Nat’l.,
Minneapolis. RIGHT— Ron Doll, dist. mgr. of Brandt, Wayzata, Minn., with Darrell Patzer, a.v.p., Stutsman Co. Bk., Jamestown.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


North Dakota News

president o f the American Bankers
Association, C. C. Hope Jr., vice
chairman o f the First Union National
Bank of North Carolina, Charlotte.
He gave his review of the function of
A B A and its recent accomplishments
in the fields of legislation and con ­
sultation with federal and W hite
House authorities on the subjects of

A B A ’s task forces on inflation and
regulation. Mr. Hope noted that the
newly-formed committee of five regu­
lators was meeting that day in W ash­
ington to discuss whether they
should invoke the quarter percent
differential favoring thrifts or do
away with it. He noted that President
Carter, Treasury Secretary Miller

and Fed Chairman Volcker have
asked A B A support in use of its Task
Force on Inflation to fight Congres­
sional attempts to beef up Congres­
sional spending prior to the fall elect­
One of the popular speakers was
Ron Erhardt, head coach of the New
England Patriots professional foot-

LEFT— Don Pederson, sr. v.p., Northwestern Nat’l., Minneapolis; Gloria and Morris Nelson, retiring NDBA pres., and Peter Gillette,
pres., Northwestern Nat’l., Minneapolis. RIGHT— Dennis McFadden, corr. bk. rep., Northwestern Nat’l., Minneapolis; George Schwartz,
pres., 1st Nat’l., Fargo, and his wife, Donna, and John Thomson, v.p., Northwestern Nat’l., Minneapolis.

LEFT— Tom Roney, pres., Foster Co. State, Carrington; Don Johnson, v.p., American Nat’l. B&T, St. Paul, Minn.; LeRoy Lokken, v.p.,
Bankof Tioga, and Frank Forster, pres., Farmers State, Richardton. RIGHT—AI Haas, exec, v.p., cash. & c.e.o., Bismarck State; Morris
Nelson, retiring NDBA pres.; Ron Erhardt, coach of New England Patriots, and Gerry Wilier, pres., Bank of Kirkwood Plaza, Bismarck.

LEFT— Phil Adams, v.p., St. Paul, Minn., and George Thorson, a.v.p., Fargo, both with Collateral Control of St. Paul, and Sandie and
Kent Mongeon, exec, v.p., State Bank of Towner. RIGHT— Lyle Askerooth, Dennis Christofferson, Garnas Askerooth, Jim and Barb
Dawson, all of Dawson Hail Ins. Co., Fargo, and M. I. Hoffmann, exec, v.p., 1st State, Munich.
Banker, July, 1980
Federal Reserve Bank of St. Louis

ball team of the NFL, Foxboro,
M ass., who was returning to his
native North Dakota as the luncheon
speaker. He played on a two-time
high school championship football
team in Mandan, later at North
Dakota State University and coached
that team to national small college
championships before m oving into
professional football coaching.

Another speaker of special interest
was Orion Samuelson, vice president
at W G N Continental Broadcasting
Company in Chicago, who is wellknown throughout North Dakota and
other midwest states because he
keeps in close personal touch with ag
conditions through on-the-spot visits
to North Dakota and surrounding

North Dakota News
Gerald P. Wilier, president of the
Bank of Kirkwood Plaza in Bismarck,
was master of ceremonies for the
annual banquet. A fter recognition of
guests and presentation of awards,
the evening was concluded with an
outstanding performance by the
Serendipity Singers.
The 1981 N D B A convention will be
M ay 18-19 in Fargo.

LEFT—Jack Quitmeyer, corr. bk. off., 1st Nat’l., Minneapolis; Ralph L. Trom, pres., Kindred State, and Glen Walters, v.p., 1st Nat’l.,
Minneapolis. RIGHT—Tony Goetz, pres., Security State, New Salem; Homer Hiller, asst, cash., Bank of Glen Ullin, and Lee Stenehjem,
pres., 1st Internat’l. Bk., Watford City, and a past NDBA pres.

LEFT— Dick Gandrud, pres., Pope State Bank, Glenwood, Minn., who is pres.-elect of the Minnesota Bankers Assn., and his wife,
Lorraine, with old friends Peggy and Harold Ormseth, v.p., 1 st Nat’l. B&T, Bismarck. RIGHT— Milt Schwartz, exec, mgr., South Dakota
Bankers Assn., Huron; Harry Argue, exec, dir., NDBA, and Henry Ness, sr. v.p., Fargo Nat’l. B&T.

LEFT— Earl Lundin, a v.p., Manufacturers Hanover Trust, New York, and Bruce Jacobson, sr. v.p., 1st Nat’l., Fargo. RIGHT— Bruce
Hebei, a.v.p., 1 st Nat’l. of St. Paul, Minn., with O. K. Anderson, pres., State Bank of Lakota, and Gordon Weber, pres., Farmers State,
Lisbon, both former NDBA presidents.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


North Dakota News

Opens New Facility
A ribbon-cutting ceremony on May
27 opened the new modern facility of
the Farmers State Bank of Richardton, according to Francis Forster, pres­
ident. A public open house is planned
for July 11 and 12.

Joins First State, Goodrich
R oy W . Dockter has joined the
staff of the First State Bank o f G ood­
rich as a loan officer. He succeeds
Magnus Meier who has accepted a
position at the newly-established
W est River State Bank at Hettinger.

Bank of N.D. VP is
Loan Program Officer
Martin E. Stenehjem, vice president
of the Bank o f North Dakota, Bis­
marck, and manager of the student
loan division, was elected to a two-year
term as treasurer o f the National
Council o f H igher Education Loan
Programs at a recent annual meeting
in Boston.
North Dakota is one of only four
states that do not have a state guaran­
tee program, but rely solely on federal­
ly insured student loans. Bank of
North Dakota made the first Federally

Insured Student Loan in 1967 and
since then has processed 90,000 loans
totaling $87 million, which constitutes
over 70% o f the total student loan
volume in the state.

Ted H. Tufte
Funeral services for Ted H. Tufte,
78, were held recently in Northwood.
Mr. Tufte was instrumental in start­
ing the N orthwood State Bank in
1930. In 1948 he was elected president,
a post he held for 30 years.
He was an active member of the
North Dakota Bankers Association for
50 years and had served on its various
com m ittees. Mr. Tufte served two
terms as mayor of Northwood.

Personnel News From
First Bank Bismarck
Denis J. Trom, personnel officer of
the First National Bank & Trust Co. of
Bismarck, recently graduated from
the Am erican Bankers Association
National Personnel School in Boulder,
Owen Noteboom, vice president and
manager of the bank’s retail banking
division, has been re-appointed to the
advisory board of the AB A ’s Instal­
ment Lending Division. He was also
elected educational chairman for the

Checklist of security items...
(Continued from page 20)
With regard to physical security, the added expense of
providing a higher degree of vault protection may, over
the long term, amount to very little on an annual basis.
The life of security vaults frequently extends 25 years or
more. Often overlooked is that these vaults also protect
against catastrophic man-made or natural disasters, as
well as criminal assault.
New Underwriters’ Laboratories classifications rate
vault doors in terms of their resistance to attack rather
than the previous standards which simply measured the
thickness of the door. The new standards are designated
as Class I, II and III, each related to the duration of
such resistance.
Night depositories are also vulnerable to burglary.
Again, the importance of an adequate alarm system can­
not be overemphasized. The alarm should provide a high
degree of security in the wiring which connects it to the
main vault alarm. When purchasing a new depository, I
recommend a U.L.-approved model. They have been tested
and examined for resistance to various forms of crimi­
nal attack.
Security Checklist
Bank security officers should make periodic examina­
tions of their organizations’ equipment and procedures. A
Banker, July, 1980
Federal Reserve Bank of St. Louis

Midwest Region for A B A ’s instalment
Wayne Hatzenbuhler, auditor, re­
cently attended the National Amer­
ican Institute of Banking Leaders Con­
ference in New Orleans. He is presi­
dent of the Bismarck-Mandan AIB

Manufacturers Commercial
Opens Dallas Office
Manufacturers Hanover Corpora­
tion has announced the opening of a
fu ll-serv ice com m ercial fin an cin g
office in Dallas.
The office will be the southwestern
commercial financing headquarters
for Manufacturers Hanover Commer­
cial Corporation, MHC’s asset-based
services subsidiary.
The new office, located at 1509 Main
St., is headed by Richard X. Hatch,
vice president.

B of A to Install ATMs
Bank of America NT & SA will in­
stall 105 additional automated teller
machines this year under a system
contract with Bunker Ramo Corpora­
tion and Diebold, Incorporated.
The announcement followed com­
pletion of the bank’s successful pilot
program involving 33 Diebold TABS®
9000 series ATMs.

risk evaluation for an existing bank or new office will
determine whether or not the risk justifies an outlay for
added protection. Among the items to be reviewed are:
• Are your teller stations and platform offices equipped
with effective hold-up devices? Does your personnel
know how to operate them?
• Have you coordinated with the local police the method
of response to your hold-up alarms?
» How long ago did you install your vault alarm? Is it
covered by a regular inspection service agreement?
• How secure is the leased line alarm connection to your
local police station? Have you upgraded it within the
past 10 years to one having a high degree of line
• Do you have a cash control system whereby tellers are
relieved of excess cash on a regular basis? Is the excess
cash under delayed timelock protection?
• Do you periodically test your cameras or are they under
a standard maintenance agreement?
• Do you train your tellers to be alert to suspicious activi­
ties in the bank lobby and to record such activities via a
suspicion photograph taken by the surveillance
• How old is your night depository? Is it protected by an
alarm system? Have you upgraded the depository
security within the last five years? (Some units can be
field retrofitted with improved security devices.)
• Do you treat your protective alarm equipment as a vital
and potentially lifesaving device, or do you consider it
merely as an obligation required by the BPA.


R. F. Burke, pres., Missoula
J. T. Cadby, exec, v .p . , Helena

MBA’s John Cadby Looks at Banking’s Future
CO M PLE TE report with pic­
tures of the Montana Bankers
Association annual convention held
at The Broadmoor in Colorado
Springs late last month will be pu b­
lished in the next issue, since the July
magazine was being printed at con ­
vention time.
In a special interview with the
N orthwestern B anker prior to the
convention, John T. Cadby, execu­
tive vice president o f the M B A , was
asked how he views the direction of
M ontana banking and what might lie
ahead for the industry. Following are
Mr. C adby’s comments in reply to
this question:

“ M B A is also launching an adver­
tising program this fall to com m uni­
cate to the public that banks are
better and that bankers are the ones
to see for financial counsel. An in­
formed, marketing-oriented banker,
combined with his vast experience in
the money business, will still be able
to make a profit in this new era of in­
tensified com petition. ’ ’

New VP at Sidney Bank

Thomas D. Tietz, executive vice
president of 1st United Bank of Sid­
ney, has announced the appointment
of William A . M cIntosh as vice presi­
“ For the past 77 years, the M on­ dent and cashier. M ost recently Mr.
tana Bankers A ssociation’s principal M cIntosh owned a drive-in business
thrust has been towards government and served as a financial investigator
relations. In the 80s, education and for the Department of Institutions in
communications will command an Billings.
equal and perhaps superior role to
Formerly he was at the Sidney N a­
that of government relations.
tional Bank from 1959-77, leaving
“ Banking’s future environment is there as a vice president and director.
intensified competition. The elimina­ Mr. M cIntosh was active in the M on­
tion of interest ceilings, the disap­ tana Bankers Association and the
pearance of industry delineations, the Montana Independent Bankers A s ­
steadily growing foreign banks, the sociation. He has a B A degree in eco­
erosion o f geographical restraints, nomics from Syracuse University and
coupled with increased technological did graduate work at Harvard U ni­
changes, will alter banking policies versity.
and procedures as never before.
“ Bankers need not fear this new
com petitive atmosphere as they are First Bank Havre Tells
the m ost capable and experienced Appointments, Promotions
Gordon Clarke, president of First
lenders in the marketplace. One
simply has to stay abreast of the Bank H avre, has announced new
changes and turn those changes into appointments and staff promotions.
profitable opportunities. The A ssoci­
Randy Smith has been promoted to
ation’s role will be to anticipate these agricultural loan officer and manager
changes and provide whatever infor­ of the agricultural department replac­
mation and education necessary to ing Rick Kuntz. He joined the bank in
keep the banker ahead of his com ­ 1978 and was promoted to ag loan
petition. This information and edu­ officer last November.
cation will be provided through semi­
M elanie Dickinson, promoted to
nars, workshops, bulletins and the commercial loan officer, has been with
m ost expeditious means available. the bank since 1979 when she joined
For example, M B A will sponsor a the staff as a real estate loan repre­
series o f workshops on NOW ac­ sentative.
counts so banks can be prepared to
Karen Miller was named to the new
price and sell them at a profit in 1981. position of personnel officer. She joined
Federal Reserve Bank of St. Louis

the bank in 1956 and was formerly
m a n a g er o f the i n s t al m en t loan
Bill Filler, named the new manager
of the instalment loan department,
joined the bank in 1978 as assistant
manager of that department.
Jean Scofield, promoted to opera­
tions officer, joined the bank in 1962
and was named auditor in 1974. She
later assisted with compliance and
Carolyn Begger has joined the staff
as auditor. She is a recent graduate of
the University of Montana and has
been training with First Bank System
examiners since November.
Tom Kuka, named instalment loan
representative, joined the bank parttime in 1977. Don Lloyd, with the bank
since 1979, has been promoted to com­
pliance and loan review represen­
Two staff members were named
management associates, Farrel Alleman and John Stott. Mr. Alleman has
been with the bank since 1979, and
Mr. Stott since January.

First Chicago Expands Its
Cash Management Division
First Chicago is in the process of ex­
panding its Cash Management Divi­
sion, according to Norman Kost, senior
vice-president and head of the admin­
istrative department. New groups
have been established to strengthen
the division’s services.
John Coblentz, vice-president and
Cash Management Division head, ex­
plained further. "We organized the di­
vision into three distinct groups —
product management, marketing sup­
port, and consulting services — in
order to better serve the growing needs
of our customers. This required the
addition of new staff members as well
as a commitment to develop market­
ing tools and new products.”
The product m anagem ent unit,
headed by Dino Kapadia, assistant
vice-president, is geared to developing
and introducing cash management
The marketing support unit, headed
by Christopher Skaar, vice-president,
is responsible for delivering First Chi­
cago’s cash management products into
the marketplace.
The third group comprising First
Chicago’s Cash Management Division
is consulting services, which is recog­
nized as the premier consulting group
in the country.
Northwestern Banker, July, 1980

sen, executive vice president, W yom ­
ing National, Casper; Mike J. Cough­
lin, president, E q u a l i t y St at e,
Cheyenne; Clifford E. Kirk, execu­
tive vice president, First National,
Gillette, and Tom Poletti, senior vice
president, First National, Riverton.
Three were elected to one-year
terms on the executive council. They
are: Melvin D. Hutchings, president,
First W yom ing Bank, N .A .-Jackson
Hole, Jackson; T. L. Stewart, presi­
dent, State Bank of Green River, and
Roman Skatula, executive vice presi­
dent, W yom ing Security Bank, Sher­
idan. In addition, Mr. M cllvaine will
continue on the council for one year as
immediate past president.
Jackson Hole weather seldom has
been more ideal than it was for this
year’s convention. Golfers, fisher­
men, tennis players, boaters and
hikers all turned up with strong evi­
dence of the sun and wind. The clear
OFFICERS of the Wyoming Bankers Association for 1980-81 are, left to right: (Seated) evening sunsets accentuated the
Immed. Past Pres.— George W. Mcllvaine, pres., Saratoga State; Pres. — George E. Cooke, sharp beauty of the Teton mountain
dir., American Nat’l., Powell, an dlst Vice Pres.— Al E. Bradbury, pres., 1st Nat’l. in Evan­ peaks.
ston. (Standing) 2nd Vice Pres. — Buzz Wassenberg, pres., State Bank of Big Piney, and
Exec. Dir. — M. Clare Mundell, Laramie.

Wyoming Bankers Elect George Cooke
By BEN H A L L E R , JR.
Y O M IN G bankers advanced
George E. Cooke to the presi­
dency of the W yom ing Bankers
Association for 1980-81 at their 72nd
annual convention last month at
Jackson Lake L odge in Moran. Mr.
Cooke is a director and past president
of American National Bank o f Powell.
He succeeds George W . M cllvaine,
president of the Saratoga State
M oved up to first vice president


was A I E . Bradbury, president, First
National Bank in Evanston. Named
the new second vice president was
Donald R. (Buzz) W assenberg, presi­
dent, State Bank of Big Piney. M.
Clare Mundell, Laramie, continues as
W B A executive director.
A B A members elected John A.
Guthrie, chairman and president of
the Bank of Laramie, to a two-year
term on the A B A Council.
Four bankers were elected for twoyear terms on the W B A executive
council. They are: Paul A . Christen­

First Speakers
Inside the meeting hall, the news
was more serious.
State Senator John Turner dis­
cussed the legislative approval of the
W yom ing Community Development
Authority, expressing several con­
cerns about the law as it was passed.
These included the price of housing
and the income level it takes to sus­
tain those houses; the $750 million of
bonding authority that perhaps
should have been set at a lower level
initially and then reviewed by the leg­
islature; the distribution of funds and
whether it was equitable among com ­
munities, and the fact there was
nothing for rental housing. Sen.
Turner also discussed the State

EFT—The Hon. Richard Cheney, U.S. Representative from Wyoming, and George Cooke, new WBA president. RIGHT— Josephine
febster, pres, of NABW, and Hugh Sidey, Washington editorforTIME magazine, Washington, D.C., visit with delegates after their talks.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Wyoming News


— Pat Echtermeyer, whose husband, Don, is sr. v.p. of Central Bank of Denver, received several gifts from John Edmiston (right), sr.
v.p. of Denver Nat’l., Denver, for her help during the WBA golf tourneys for the past several years. RIGHT— Henry A. Hitch, pres., 1st Nat’l.
of Casper, congratulates long-time friend George Cooke on his election as WBA president.

Supreme Court ruling that struck
down the method o f financing the
W yom ing school system.
Hugh Sidey, W ashington editor of
TIM E magazine, has covered the
news surrounding the Presidents of
the United States since President
Eisenhower took office. His assess­
ment of the unique characteristics
and contributions of each o f the Pres­
idents since that time were well pre­
sented and m ost interesting. His
assessment of President Carter’s
term didn’t offer much in the way of
any contribution made to date. D is­
cussing the Hamilton Jordan memo
to the President on “ how to get re­
elected,” Mr. Sidey said, “ This is a
perfect example o f how procedure has
blotted out purpose. It is totally de­
void of consideration o f direction, of
governing, of the people, but only
about the mechanics o f getting
v o te s.”
In his President’s Address, Mr.
M cllvaine stated, “ A s we look to the
future, we in our state must become
more vocal— at the state as well as
the national level— and have our
thoughts known. If we are to be lead­
ers, we must be in the forefront.”
Josephine Webster, president of
the National Association o f Bank
W om en, Chicago, spoke at the first
business session on the topic o f “ P ro­
du ctiv ity .” Citing various studies to
show that America is falling behind in
p r o d u c t i v i t y , she said, “ Lar ge
groups of people misunderstand the
purpose of our profit system, at the
same time wanting high taxes to sup­
port the programs offering services to
those who don’t believe in it.” R e­
garding the banking industry, she
stated, “ W e need an accelerated edu­
cational program to show employes
Federal Reserve Bank of St. Louis

why they have a stake in improving
productivity. Our employes are our
best consultants. Banking produc­
tion has the worst record in business
in the past 10 years—a minus 1% —
due to being so labor intensive. There
is a direct correlation between high
employe morale and high bank per­
form ance.”
Mrs. W ebster said “ banking is not
only labor intensive, it is female in­
tensive. The black cloud of labor or­
ganizing is pending. One of the best
insurance policies against this is a
strong N A B W . ”

tinuing, he said, “ N obody has a long­
term perspective” in W ashington.
There will be a 12-18 month lag time
in the effect of this new budget, so it
will be felt in ’82 and '83. This will
kick off another economic cycle, so we
keep starting each inflation at a
higher cycle level and we would have
inflation of 20% and interest rates at
“ By 1990, one person in five will be
eligible for Social Security; right
now, one in 10 is eligible for food
stamps. W e used to spend 11 % of our
peace time budget for defense; now it
is below 5 % . ”
Final Speakers
As opposed to continuing current
A t the closing business session, policies, Rep. Cheney proposes a
delegates packed the Jackson Lake long-term perspective of economic
Lodge ballroom to hear The Hon. policy, slowing down the rate of
Richard Cheney, who is one of government spending, pursuing a
W yom in g’s two U.S. Representa­ conscious policy of economic expans­
tives, and University of W yom ing ion (which, he said, means getting rid
President Dr. Edward Jennings.
of many federal regulations which
Rep. Cheney discussed national cost so m uch), encouraging a higher
economic policy and several issues he savings rate (ours is 3 % , while
felt were pertinent to W yom ing. He Japan’s is 22 % ), and we need a sound
feels the unemployment figure will go energy policy. “ Until we do th is,”
to between 9% and 10% by year-end.
Rep. Cheney testified, “ we can’t be
A lso, he is projecting the recession optimistic about the long range. If we
will last 18 to 24 months with flat or don’t do this, then the next time
negative growth. He pointed out that around will be worse than the current
the budget will not be balanced, as one and the next after that will be
Administration officials claim it will even w orse.”
be, but will more likely be about a $50
Dr. Jennings spoke of the univer­
billion deficit.
sity’s responsibility to students. “ In
When it becomes evident in the essence,” he related, “ our job is to
next few weeks that the budget will prepare them to meet, adapt and in­
not balance, Rep Cheney stated, novate to handle jobs in the fu t u r e “ constraints will go by the board and jobs that have not even yet been in­
Congress and the President will look vented. Education is a perfect instru­
to stimulating the economy . . . I ’ll ment for personal development. It
bet by the end of summer, or in ad­ doesn’t just improve our culture and
vance of the Democratic convention, the quality of life, but improves our
w e’ll see new proposals for big expen­ ability for tolerance of other cultures,
ditures and for tax reduction.” Con­ nationalities and ideas. ”
Northwestern Banker, July, 1980


Wyoming News

Pictures from the Wyoming Bankers Convention

LEFT— Greg Blow, mgr. & trust off. of Wyoming Trust & Management, Gillette; Janet and Sherrod France, pres., Rawlins Nat’l., and John
Clements, v.p., Omaha Nat’l., Omaha, Neb. RIGHT— Gene Coombs, v.p., Security Bank of Billings, Mont., and Pennie, with Sally and
Don Babbitt, pres., Stockgrowers State, Worland.

LEFT— Bernie Weber, pres. & chmn., 1st Nat’l. B&T, Cheyenne, and Ruth, with Mary and Harmon Watt, pres., 1st Nat’l., Riverton.
RIGHT—Sharon Hendrickson displays her fishing tourney prizes to her husband, Bruce, who is 2nd v.p., Omaha Nat’l., Omaha.

Named at Sheridan Bank
Robert G. Miller, president of the
First National Bank, Sheridan, has
announced several promotions.
Richard Destef ano was named
assistant cashier in operations. He
first joined the bank in 1975 and later
was associated with the Ranchester
State Bank and the First National
Bank of Green River. He returned to
First N ational, Sheridan, in July,
Robert Carew was named manager
of data processing. He joined the bank
in 1974 after graduating from the
National College of Business in Rapid
City, S.D., m ajoring in data proc­
Kay Martini, elevated to operations
officer, joined the bank in 1971 and has
worked in various departments.
Promoted to the position of loan
officer were Sally Gillenwater, with
the bank since 1955; Roberta Schrater,

Banker, July, 1980
Federal Reserve Bank of St. Louis

with the bank since 1968, and Barbara
Sare, with the bank since 1976.

Cheyenne Holding Company
May Acquire Jackson Bank
Bernard R. W eber, chairm an of
First Bankshares of Wyoming, Chey­
enne, and Felix Buchenroth Jr., presi­
dent of the Jackson State Bank, re­
cently announced that an agreement
in principle has been reached for the
acquisition of the Jackson bank by
First Bankshares.
The proposed acquisition is subject
to various conditions, including the
reaching of a definite agreement be­
tween the parties concerned, com ­
pliance with state and federal secur­
ities laws and Federal Reserve Board
approval. If the conditions are satis­
fied, the acquisition will be completed
late in 1980 or early in 1981.

Elected Personnel Officer
E.J. Haines, president and chief
executive officer of the First National
Bank, Laramie, has announced the
promotion of Diana K. Hooper to per­
sonnel officer.
M s. Hooper began her banking
career with First National as a teller
in 1969. Since then she has held num­
erous positions, m ost recently that of
training coordinator. She attended
the University of W yom ing.

Continental Opens
Branch in Madrid
The Madrid branch of Continental
Illinois Nat i ona l B an k and Tr ust
Company of Chicago has opened for
business at 29 Jose Ortega y Gasset,
replacing the bank’s representative
office which had been operating in
Spain since 1967.

Wyoming News


LEFT— Larry Hansen, v.p., U.S. Nat’l., Omaha, Neb., and Bobbie, w ith Dorothy and Wayne Van Horne, pres., Citizens Bank of Laramie.
RIGHT— Howard Nielsen, v.p., U.S. Nat’l., Omaha, and Rita; Wayne Messenger, chm n., First Wyoming Bank-Cody, and Marge; Del
Crouse, pres., Security State, Basin, and Muiriel.

LEFT— Chuck Karpf, pres., 1st Nat’l. in M orrill, Neb., his wife, Jo Ann, and his mother, Dixie Karpf of Omaha, with Virginia and Bill
Coffee of M orrill. RIGHT—Cliff Kirk, exec, v.p., 1 st Nat’l., and Ken Naramore, pres., Stockmens B&T, both from Gillette, compare notes
on the convention program.

LEFT— John Easterbrook, v.p., 1st Nat’l., Laraimie, and Cindy, w ith Linda and Gary Bieck, v.p., 1st Nat’l., Lincoln, Neb. RIGHT— Bob
Miracle, pres., Wyoming Nat’l. of Casper, and Maggie, w ith Lynn and Vern Hendrickson, a.v.p., United Bank of Denver.

LEFT— George Acker, sr. v.p., 1 st Nat’l. of Denver (and also a former Wyoming banker); Wayne Messenger, chm n., First W yoming BankCody; Dave Johnson, pres., W yoming Bancorporation, Cheyenne, and Jack Haselbush, exec, v.p., Security Bank of Gillette. RIGHT—Jay
Bordewick, pres., First W yoming Bank-Casper; Bert Harris, 1st Nat’l., Greybull, and Bob Bryans, dir., First W yoming Bank-Casper.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


OFFICERS of the Colorado Bankers Association for 1980-81 are, from left: Chmn.— Donald
L. Farmer, pres., Rocky Ford Nat’l.; Pres.— James J. O’Dell, chmn. & pres., Platte Valley
Bank, Brighton; Vice Pres.—W. W. Peter Grant, pres., Colorado Nat’l., Denver, and Exec.
Mgr. — Don A. Childears, Denver.

James O’Dell Named Colorado President
By BEN H A L L E R , JR.
T THE business session of the
79th annual convention o f the
Colorado Bankers Association, mem­
bers advanced James J. O’Dell to the
CBA presidency and elected other
officers. Then, as the final order of
business they heard the official results
on their pre-convention secret mail
balloting on whether to endorse or re­
ject branch banking. The vote was 121
for, 172 against. The convention was
adjourned without further discussion.
Earlier at the business session, and
in previous talks from the platform,


CBA members had been urged to seek
unity of purpose despite the outcome of
the mail ballot.
Following the convention, a spokes­
man for First National Bank of Denver
said his bank would continue its joint
effort with United Bank of Denver to
seek the signatures needed to place a
branch banking referendum on the
November 4 ballot. The referendum
needs 8% of the legal voters in the
state, which would require 62,234
The Independent Bankers of Colo­
rado had served notice prior to the con­
vention that the IBC will continue to
oppose such a referendum.

Other than the difference of opinion
expressed in the mail ballot, the con­
vention was held under ideal weather
conditions and offered delegates an ex­
ceptionally fine program of platform
speakers and entertainment.
Mr. O’Dell, who is chairman and
president of Platte Valley Bank in
Brighton, succeeds Donald L. Farmer,
president o f Rocky Ford N ational
Bank in Rocky Ford. Mr. Farmer will
serve now as C B A ch airm an for
one year.
W. W. Peter Grant, president of Col­
orado National Bank in Denver, was
named vice president of the CBA and
is scheduled to be elected president at
the 1981 convention. Don A. Childears
will continue as executive manager
of the CBA, with headquarters in
During the brief meeting of Colo­
rado members of the ABA, J. Robert
Young was elected to a two-year term
on the ABA Council as one of Colo­
rado’s two members. His term will
commence at the end of the 1980 ABA
convention in Chicago next October.
He will succeed Leo Hill, executive
vice president o f A ffiliated Bankshares of Colorado, Inc., Boulder. Mr.
Young is chairman of Valley Bank &
Trust Co. in Glenwood Springs.
Neil King, vice president-retired of
First National Bank of Denver, was
inducted into the CBA 50-Year club.
C. Hope Jr., president of the ABA,
gave Colorado bankers an up-to-date
summary of federal legislative activ­
ity, along with a look at some pending
legislation. He said A B A ’s next target,
through a special Task Force, will be
Money Market Mutual Funds. He said
the proposal by the Federal Regula­
tory Commission for imposition of or

SPEAKERS included Wm. H. Kennedy (left), chmn. of Nat’l. Bank of Commerce, Pine Bluff, Ark., who is a candidate for office of ABA
Pres.-Elect in 1981; the accounting firm offical, who reported on the branch banking ballot results to new CBA Pres. James J. O’Dell
(right), and Dr. James Cribbin, pres, of Management Effectiveness, New York, who discussed “ Effective Management” with an overflow
crowd at a special interest session.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


to service is
your Source of
strength in

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depend on
for prompt, decisive answers and
action on yóur loan participation requests,
for the newest, most comprehensive
cash management systems,
for an availability schedule which sets
the standard in the Rocky Mountain
for highly skilled bankers who make it
their business to anticipate changes in the
agri-business and metro markets that can
affect your bank and customer needs.
And we respect and protect the
integrity of your customer
So consider the Source.
think First. First of Denver

The First National Bank of Denver, Correspondent Bank Department, P.O. Box 5808 T.A. Denver, Colorado 80217
(303) 893-2211 Member First National Bancorporation
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Colorado News

LEFT— Special honors were accorded ABA Pres. C. C. Hope Jr. during the Colorado convention. At left he is presented a piece of western
art sculpture by CBA Pres. Don Farmer (right), while CBA Exec. Mgr. Don Chiildears holds the g ift. At right, Mr. Hope and Mr. Farmer were
made honorary lifetim e members of the Koshare Indian dancers by their chief.

lifting of the Reg Q quarter percent
differential is too complex, stating,
"We’ve got to get rid of this foolish­
He told bankers the next big issue
ABA faces is any discussion of the
M cF ad d en A c t, w h ich p r o h ib its
branch banking across state lines.
Retiring CBA President Farmer
spoke of the urgent need for a unified
banking voice in Colorado. He said,
"W hile we play civil war, the big
enemy is planning to annihilate us.
W e do have a vehicle to fight together
— the CBA!”
CBS Newsman Douglas Edwards
said everyone knows the main prob­
lems prevailing in the United States
today, but there are also many good
things and favorable omens that out­
weigh the bad news. He reminded the
audience we developed as a nation in
one century and as a world leader in
the second century. The task now, he
stated, is "to develop the mind, the

body and character of (the American)
people” as pleaded by Adlai Stevenson.
Dr. W illiam Freund, senior vice
president and chief economist of the
New York Stock Exchange, gave this
brief scenario as his economic forecast:
The budget will not be balanced, but
will have a $40-$50 billion deficit; re­
cession will hit rock bottom the fourth
quarter; a 9% picture for inflation, the
prime rate, short-term interest rates
and the prime rate. He expects the
stock market to hit its low shortly,
then start a climb back up, preceding
the recession recovery as usual.
A special appearance was made by
William H. Kennedy, chairman of the
ABA Government Relations Council,
which is responsible for conducting the
ABA quarterly Leadership Confer­
ences to establish policy. He spoke
briefly at the concluding business ses­
sion. Mr. Kennedy is a candidate for
the office of President-Elect o f the
ABA for the 1981 convention. If he is

endorsed by the ABA executive coun­
cil next spring he will then be the
candidate. Mr. Kennedy is chairman
of the National Bank of Commerce in
Pine Bluff, Ark.
A1 Paro, advertising director of
ABA, said the association advertising
will be directed as a response to the
n ew b a n k in g la w ju s t e n a c te d
(HR4986) and also will respond to the
needs of customers. These two princi­
pal needs, he said, are to conserve time
(due to two-career families) and to con­
serve energy (save trips) by advancing
electronic banking, such as the Iowa
Transfer System in Iowa. He displayed
the print ads and television commer­
cials that are part of ABA’s $6 mil­
lion budget.
The entertainment was first class
throughout. Art Holst, well-known
NFL football referee, was at his best at
the noon luncheon.
The Thursday night steak fry at Rot­
ten Log Hollow was a superb evening.

TWO SETS of identical tw insare pictured at the convention: Don Farmer (left), retiring CBA pres, and pres, of Rocky Ford Nat’l., and his
twin brother Dr. Darrell Farmer, D.V.M., of Tucumcari, N.M., w ith Joy Edmiston (left) and her tw in, Judy Larson (right, we think), of
Colorado Springs. RIGHT—Joy (left) and Judy (right) are pictured with their husbands. John Edmiston (left), sr. v.p., Denver Nat’l.,
Denver, and Mike Larson of Colorado Springs.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Colorado News


LEFT— Ed Salvi, v.p., 1 st Nat’l., Denver, and Vicky; Mary Cioonan, 2nd v.p., Continental Bank, Chicago, and Terry Tangen, a.v.p., 1 st
Nat’l., Denver. RIGHT— Larry Pisacka, v.p., American Nat’l., Denver, and Mary Ann, with Andrea and Dick Yeshnowski, v.p., Omaha
Nat’l., Omaha, Neb.

Featured were the Koshare Indians (a
Boy Scout specially trained unit), the
Imperial Jazz Band and a Mexican
Brass Band.
Friday night the Arbors quartet had
a hard time getting away from the au­
dience so they could relinquish the
platform to George Gobel, who turned
in his own inimitable performance. □

First National of Denver
Creates Management Group
The First National Bank of Denver
has created a high-ranking Manage­
ment Committee, Theodore D. Brown,
chairman, announced recently.
The committee will play a key role
in a general expansion program which
also will involve major new positions
and responsibilities for a number of
bank personnel, Mr. Brown said. The
changes were effective June 1.
Chairman o f the new committee will
be Phillip J. Hogue, who also was
promoted to senior executive vice pres­
ident of consumer banking services.

He previously had been executive vice
W. Robert Alexander, executive vice
president-trust banking services, has
become vice chairman of the manage­
ment committee.
Messrs. Hogue and Alexander will
report directly to Mr. Brown.
Mr. Brown also assumes for an in­
terim period the duties of First of Den­
ver president. Bruce D. Alexander,
who had held that post since Septem­
ber, 1978, has become vice chairman of
the board, a newly-created post.
O ther M anagem ent C om m ittee
members at the outset are Roger D.
Knight III, also promoted from senior
vice president-corporate banking to a
new post of executive vice president of
corporate and correspondent banking
services; Rodney C. Thomas, senior
vice president of data services, and W.
Robert Temple, who becomes senior
vice president of administration. Mr.
Temple had been senior vice president
and chief accounting officer.

J. Rodney Uhrich becomes executive
vice president o f credit policy and
review. He previously had held that
title in ch a rg e o f a s s e t/lia b ility
Bruce Alexander, 58, joined First of
Denver in 1948 and has held numer­
ous high ranks. He became the first
president of First National Bancorporation in 1969.
Mr. Hogue, 44, began his career
with First of Denver in 1958 and also
served as senior vice president of Bancorporation.
W. Robert Alexander, 52, is in his
28th year with First of Denver, in
charge of trust, a post he has held
since 1976.
Mr. Knight, 40, began his First of
Denver career in 1963 and worked
through the ranks to his present
Mr. Temple, 38, joined First of Den­
ver in October, 1975, and two months
later was named vice president and
chief accounting officer.

PICTURED at United Bank of M issouri of Kansas City dinner party were these two groups, from left, are: Dick Muir, v.p., and Dick King,
pres., both w ith the host bank; Bob Gibbs, dir., and Gary Brooks, chm n., both with First State of Idaho Springs; Ginny Matthes, whose
husband, Larry, is pres, of Central Bank, Aurora; Leo Van Dittie, Palm Springs, C alif.; Judy King; E. L. Burch, sr. v p of United Missouri
Bank, and his wife, Anita.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Colorado News


LEFT—Carol and George Acker, sr. v.p., I s t Nat’l., Denver. RIGHT— Gary Bieck, v.p., Is t Nat’l., Lincoln, Neb., and Linda Bieck, w ith Mae
and C. C. Hope Jr., pres. of the ABA.

LEFT— RoyceClark, pres., 1st Nat’l., Greeley, and Alma, w ith Sally Ann and Leon Winters, pres., Bank of the West, Parker. RIGHT— Bill
MacMillan, v.p., Colorado Nat’l., Denver, and Lydia; Alan Kris, pres., Mid-State Bank, Denver, and Gloria, and Nancy and Dave Fowler,
a.v.p., Colorado Nat’l.

LEFT— Bill Tumelty, v.p., Central Bank of Denver; Mary Jackson; Don Echtermeyer, sr. v.p., Central Bank of Denver, and Pat, and John
Jackson, v.p., First American Bank, Colorado Springs. RIGHT— Max Brooks, chmn. of Central Bank of Denver, and Mr. Echtermeyer
greet guests at their bank’s annual convention Friday morning breakfast.

LEFT— Rod Uhrich, exec. v.p. of credit adm inistration, 1 st Nat’l., Denver; Susan Mammel, 1st Nat’l. Bancorporation, Denver; Greg Ireton,
pres., 1st Nat’l., Englewood, and John Cole, sr. v.p., Texas Commerce Bank, Houston. RIGHT— Phil Turnbull, reg. v.p., American
Express, Denver; Larry Scott, exec, v.p., Greeley Nat’l., and Ed Lichtwardt, sr. dist. mgr., American Express, Denver.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Colorado News


Cherry Creek National
Names New President
M. Kent Winker has been named
president o f Cherry Creek National
B an k , D e n v e r,
s u cce e d in g W .
Richard Scarlett
III who was nam ­
ed vice chairman
of the board.
A graduate of
the University of
N eb ra sk a , M r.
Winker has had
o v e r 20 y ea rs
banking experiM. K. WINKER
ence. Prior to his new position he
served four years as president of the
South Denver National Bank. Both
banks are members of Mountain
Banks, Ltd.
Richard C. Williams, formerly
executive vice president, has suc­
ceeded Mr. Winker as president of
South Denver National.

United Bank of Lakewood
Names Two Senior VPs
United Bank of Lakewood has
announced the prom otion of Jean
Naylor and Tom Courson to the
position o f senior vice president.
M s. Naylor has been with the bank
since 1966. She was promoted from
vice president and cashier to senior
vice president and cashier. She is re­
sponsible for the bank’s operations
Mr. Courson has been with United
Banks since 1974, joining the United
Bank of Lakewood in 1978. He was
formerly a vice president and has
been manager o f the commercial
banking department since joining the

United Banks to Acquire
Durango, Ignacio Banks

million and is the second largest bank
in the area. The bank also has a de­
tached facility in Silverton. Charter­
ed in 1910 and purchased from the
Merrill E. Turner family in 1963,
Bank of Ignacio has present assets of
$14 million.

also worked as a loan officer for two
other metro area financial companies.
Mr. Collins joined Colorado Nation­
al Bank in 1969 and transferred to
Arapahoe Colorado in January. He is
responsible for consumer loans, Visa
and collections.

Bank of Orchard Mesa
Appoints Senior VP, AVP

United Bank Announces
Officer Appointments

Louis Walker, president of the
Bank of Orchard Mesa, Grand Junc­
tion, has announced that the board
elected Richard J. W itsken senior
vice president in the commercial loan
Mr. W itsken has 20 years of bank
experience and has served as vice
president of financial institutions in
Grand Junction and Dodge City,
Kan. He was formerly manager of the
Federal Land Bank Association and
is a graduate of Colorado State U ni­
Phyllis N. Estes was elected assist­
ant vice president. Her job responsi­
bilities are in the areas of consumer
lending and collections. She has had
over a decade of banking experience
as a consumer loan officer as well as
experience as an office supervisor.

U n it e d B a n k o f D e n v e r h a s
announced the appointment of W il­
liam A. Thomas, Jon A. Wiedmaier
and Richard B. Wigton to the position
of assistant vice president.
Business development manager for
MasterCard/Visa, Mr. Thomas joined
UBD in 1975 and was named a person­
al banking officer in 1978.
Mr. Wiedmaier joined the bank in
1971 and was named a personal bank­
ing officer in 1977. He is the credit
adjustments manager in MasterCard/
Visa and has a BS in economics from
Regis College.
A graduate of Lehigh University,
Mr. Wigton joined UBD in May. He
was previously associated with Wigton-Abbott Corporation and Chase
Manhattan Bank, New York.
UBD also announced the appoint­
ment of Alfonso Garcia to the position
of operations officer; J. Sigurd Nielsen,
investment officer, and Charles C.
Pell, Robert A. Stumbaugh and Carol
A. Ward, commercial banking officer.

DRCOG Honors Jack Trezise
Jack Trezise, vice president of
Golden State Bank, recently received
the eighth annual John V. Christen­
sen Memorial Award, the highest
recognition given by the Denver
Regional Council of Governments.
Mr. Trezise was selected in recog­
nition o f his many years o f govern­
ment and civic involvement. He serv­
ed for six years on the Golden City
Counil and was a Jefferson County
commissioner for eight years. He is in
charge o f public relations and busi­
ness development at the bank.

United Banks of Colorado, Inc.,
Denver, has signed an agreement to Named at Denver Area Bank
John Diedrich, president of Arapa­
acquire Bank o f Durango and Bank of
hoe Colorado National Bank, Little­
Berne Hart, president andton, has announced the promotion of
chairman o f United Banks, said the Jack Todd to assistant vice president,
two banks in southwestern Colorado cashier and security officer; James A.
have total assets of more than $48 Hesman to assistant vice president,
million. Final acquisition of the and Robert Collins III to loan officer.
banks is subject to Federal Reserve
Mr. Todd joined Northeast Colorado
Board approval.
National Bank in 1973 and worked
R .W . “ N ick” Turner Jr. will con ­ there as operations officer and assist­
tinue as president and chief executive ant vice president before moving to the
of both the Durango and Ignacio Littleton bank in March.
Mr. Hesman has 14 years of banking
Bank o f Durango, which was experience and joined Arapahoe Col­
chartered in 1960, has assets o f $34 orado’s loan department in 1974. He
Federal Reserve Bank of St. Louis


Citibank Offers Seminars
New operations techniques that
have helped increase productivity as
much as 50% inside Citibank are now
being offered to correspondent banks
in tw o s e m in a r p ro g ra m s. B oth
courses, designed for operations offi­
cers to increase personnel and backoffice productivity, will be conducted
by Citibank 31 times in 1980 in sev­
eral major U.S. cities.
The first program, "Effective Bank
Operations,” is a three-day workshop
which restructures work patterns and
improves job design to increase an em­
ploye’s satisfaction with his job. The
course introduces the decentralized
workstation concept similar to that
employed in Citibank’s own back office
"Production Dynamics for Bankers”
teaches bank m anagem ent how to
generate higher production levels
while holding costs and errors down
without changing a bank’s basic opera­
tions system. The four-day seminar
offers instruction in work volum e
analysis and capacity planning.
Northwestern Banker, July, 1980



You learn a lot about
Correspondent B an k in g
in 136 years...
Experience is one o f the m ost important assets o f our Correspondent
Banking Division. The nine officers o f this division have a total o f 136
years o f specialized experience in dealing with the unique problem s and
goals o f correspondent banking. And our people give y ou the kind o f
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Call us and find out what 136 years o f experience can do for your bank.
W ilbur Baack
S enior V ice P resid en t

D uane N elson
V ice P resident

T om S tu ck e y
V ice P resident

B ob D eahn
V ice P resid en t

Brad K orell
V ice P resid en t

S teve K ness
A ssistant V ice P resid en t

M ax Callen
A ssistant V ice P resid en t

Iren e R ezac
C o rre sp o n d e n t B ank O fficer

D o n n a B ieck
C o rre s p o n d e n t B ank O fficer

1 ^ r n / 1 National Bank of Commerce
J.1I J l V The Bank with the Plus

M e m b e r F D IC

N B C C en ter, 1 3 th & O S t., L in c o ln , N ebraska 6 8 5 0 8
T e le p h o n e ( 4 0 2 ) 4 7 2 - 4 3 2 1 , W A T S

Banker, July, 1980
Federal Reserve Bank of St. Louis

8 0 0 -7 4 2 -7 3 1 7

bank’s staff as an assistant vice pres­
ident. He was formerly associated
with the Bank of the Panhandle in
Guy mon, Okla.

N e b ra sk a

Joins F&M Bank, Oakland
Robert J. Keating, a 1980 graduate
of Wayne State College, has joined the
staff o f the Farmers & Merchants
National Bank of Oakland in the in­
surance department.

J. E. Roe, pres., Bennington
R. M. Beverage, exec, v.p., Lincoln

Alliance National Bank
Receives Trust Powers
The Comptroller o f the Currency’s
o ffic e in K a n s a s C it y r e c e n t ly
announced that the Alliance National
Bank has been granted full trust pow­
ers. Robert E. Knight, bank president,
said that trust powers open the door for
Alliance National to broaden its spec­
trum of service to the Panhandle.
Trust services can include not only
th e t r a d it io n a l m a n a g e m e n t o f
estates, but also such services as farm
and ranch management, and guard­
ianship and conservatorships.
Initially, the bank’s trust depart­
ment will be headed by a trust commit­
tee including Edw ard M. K night,
chairman; Robert E. Knight, presi­
dent, and Charles Kuncl, vice presi­
dent. Mr. Knight noted that the bank
intends to work with all area attorneys
and does not anticipate adding legal
counsel to the bank staff at this time.

Heads Ag Department at
First National, Kearney
Richard M. Fritz, president of the
First N ational Bank & Trust Co.,
K e a rn e y , has
a n n o u n c e d th e
promotion o f Mel
W ie n s to v ic e
p r e s id e n t a n d
head of the bank’s
agricultural divi­
sion. Mr. W iens
joined the bank in
1 9 7 6 as fa r m
m a n a g er, w as
nam ed ag loa n
officer in 1978 and promoted to assist­
ant vice president o f the agricultural
department in January. He has a BS
degree in agronomy from the Uni­
versity of Nebraska.

Changes at Milford Bank
G. A . Dunlap, president o f the
Farmers & Merchants Bank, M ilford,
has announced that Jerome “ N ick”
Federal Reserve Bank of St. Louis

Lenzen has joined the bank staff. Mr.
Lenzen, formerly an examiner with
the FD IC , was elected a vice presi­
dent with duties in the lending and
compliance areas.
Arthur G. M atous, formerly a vice
president at the Milford bank, has
joined Union Bank & Trust Co. in
Lincoln as an assistant cashier.

New Ag Rep at Hastings
Lloyd R. Kitrell, president of the
City N ational Bank & Trust Co.,
H a s t in g s , h a s
a n n o u n ce d th e
e le c t io n o f M i­
chael B. Jacobson
as a g r ic u ltu ra l
re p re se n ta tiv e .
Mr. Jacobson re­
ceived a BS de­
gree in agricultu­
ral education and
econ om ics from
the University of M.
Nebraska-Lincoln in 1976. He former­
ly taught vo-ag classes at the Shickley
public schools and was a farm manage­
ment instructor at the Hastings cam­
pus of the Central Technical Commu­
nity College.

Joins Holdrege Bank
Randy K. Rouse has joined the First
N ational Bank,
Holdrege. A 1978
graduate of Kear­
n ey S ta te C o l­
le g e , he w as
f o r m e r l y em ­
p l o y e d as an
assistant nation­
al bank examiner
for the Comptrol­
ler of the Curren­
cy for three years.
He was based in Grand Island.

Officer Promotions Told at
National Bank of Neligh
John E. Glandt, president of the
N ational Bank o f N eligh, has an­
nounced five officer promotions.
Ralph C. Schrader was promoted
from cashier to vice president, and
Carolyn Johnson was elevated from
assistant cashier to cashier. Barbara
C. Hughes, formerly assistant cashier,
was named a trust officer. Promoted to
the position of loan officer and assist­
ant cashier were William R. Bates and
Kirk K. Cisler.

In the Nebraska Convention Report
published in the June magazine, an
error was made in the list of NBA Ex­
ecutive Council members. Included
should have been Robert W. Johnson,
executive vice president, State Bank of
Benkelman, and Thomas D. Potter,
se n io r e x e cu tiv e v ice p re s id e n t,
National Bank of Commerce, Lincoln
(banks over $200 million).

Staff Changes at Imperial
R oy D. Beckett has resigned as
senior vice president of the Chase
County Bank & Trust Co., Imperial,
to pursue business interests in Colo­
Chan Schwartz has joined the

Names Marketing Officer
E. J. Thayer, president and chief
executive officer of Commercial N a­
tional Bank &
Trust Company,
Grand Island, re­
cently announc­
ed the promotion
of Judy A . Hoch
to marketing offi­
cer and director
of the marketing
Mrs. Hoch is a
graduate of KearJ- A- HOCH
ney State College with a degree in
business administration. She was an
account executive with K R G I Radio
before joining the bank in 1979.
Northwestern Banker, July, 1980


Nebraska News

Says S&Ls W ill Find NOWs Tough Going
IL L N O W a cco u n ts — th o se
in te re st-b e a rin g “ c h e c k in g ”
accounts banks and savings and loan
associations will be able to offer be­
g in n in g n ex t y e a r — sa d dle the
nation’s S&Ls with new and heavy
fixed costs that just might outweigh
N O W ’ s a d v a n ta g es as d e p o sitattracting instruments?
“ Many S&L managers might just
find that’s s o ,’ ’ says Peter J. Bruck,
president o f the St. Louis-based
Financial Research Associates, the
nation’s largest firm specializing ex­
clusively in consulting to banks,
credit unions, and savings and loans.
“ Virtually all the literature com ing
out on N OW s is concerned with pro­


m otion and pricing strategies, but I
can find very little devoted to plan­
ning for costs of personnel and space
needs, which will require substantial
investment if a NOW program takes
and is implemented as a marketmaking to o l,” Mr. Bruck said.
NOW accounts represent a funda­
mental shift in S&L marketing for
deposits from low-transaction sav­
ings instruments to high-frequency
transaction (spending) accounts, Mr.
Bruck said. “ Since numbers and fre­
quency of transactions dictate per­
sonnel needs for a “ banking” facility,
and personnel needs determine plant
requirements, many S&Ls may find
over time that they’ll be pulled, al­

most imperceptibly at first, by
market demand into taking on fixed
costs for staff and plant they didn’t
plan fo r.”
Mr. Bruck said his staff’s tele­
phone conversations with S&L man­
agers around the nation find that
some managers believe they’ll be able
to staff for NOW accounts by adding
“ an extra teller and a couple of file
cabinets in the back room .”
“ But talk to S&Ls aggressively
planning for NOW s and you find they
have on staff D D A (demand deposit
account, or checking) managers
acquired from banks who will tell you
flat out: ‘ I don’t think that S&Ls
know what they’re getting into—the
need for more conveniently located
offices, drive-up banking facilities,
extended hours . .

One m illion
Federal Reserve Bank of St. Louis

Nebraska News

Just what impact NOW s might
have on transactions and the staff
and plant required for them must be
determined on an institution-by­
institution basis, Mr. Bruck said.
“ W hen y o u ’re planning management
of transactions, you can’t go with
rules o f thumb. Unfortunately,
though, too many S&L managers are
accepting generalities by looking at
the 14 New England states, where
NOW s have been offered since the
early 1970s.”
He said planning for NOW s must
be integrated into planning for an in­
stitution’s total liability and asset
mix, and that this planning, properly
done, must be directed over a 10- to
15-year future horizon.
“ In taking on a high frequency
transaction account like a N OW , you

cannot wade in willy-nilly, see what
happens, then shut off demand or
turn it on as you choose. The market
doesn’t work that w ay ,” Mr. Bruck
said. “ But I ’m amazed that our tele­
phone research across the country is
finding that too many S&L managers
are apparently adopting such non­

Observes Anniversary;
Opens New Facility
The First National Bank o f W ilcox
will be celebrating the grand opening
of its new building July 9-11. The
celebration also marks the bank’s
75th anniversary.
The new 2,800 square foot head­
quarters building has replaced the old
structure, which had housed First
National of W ilcox for all of its 75


years, according to Mark L. Buckley,
vice president and cashier.

Two Officers Named at
Kilgore State Bank
David A . M acy, president of the
Kilgore State Bank, has announced
two prom otions. Tim othy A . Henry
was named assistant vice president,
and Janet U. M acy was promoted to

Observes Anniversary
Mr. and Mrs. Francis R. Kingsbury
of Ponca recently celebrated their 60th
wedding anniversary with an open
house. Mr. Kingsbury is chairman and
president of the Bank of Dixon County,
Ponca, and president of the American
State Bank, Newcastle.






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U S National Bank
of Omaha
Member FDIC


years. Before starting his banking
career in Nebraska, he worked for
Household Finance in Kansas City,
M o.
Mr. Applegate is a native of
Council Bluffs, la ., and attended the
University of Nebraska-Omaha.
A s president of Nebraska State
B an k , M r. A p p le g a te su cce e d s
Robert J. Thilgen, who has moved to
nearby Papillion to become president
of First Nebraska Savings Co.

Trust Theses Added to
ABA, NW Libraries
Edgar M. Morsman Jr., 41, senior
vice president of the United States
National Bank, has been named vice
president of loan administration for
Northwest Bancorporation and will
be m oving to Minneapolis to take up
his new duties. U .S. National is part
of the Banco holding company.
Ronald E. Schneider, 34, vice pres­
ident and commercial banking officer,
has been advanced to manager o f the
commercial banking division to suc­
ceed Mr. Morsman, according to



Vice Chairman—Evelyn Schafer,
operations officer, Douglas County
Bank & Trust.
Secretary— DeAnna Nielsen, as­
sistant cashier, Blair Bank, Blair.
Treasurer— Kianne Kidder, assist­
ant facility manager, First W estside
* * *

Dennis R. Wood, president of
Packers National
Bank, has an­
nounced the ap­
p o in tm e n t o f
Greg Lavitt to
the staff of the
bank’s bond de­
p a rtm en t. M r.
Lavitt comes to
Packers National
B ank
h a v in g
g a in ed several
years experience in this field with a
local bonding house.
* * *

Donald J. Murphy, chairman and
chief executive officer of United
States National. Mr. Schneider join ­
ed the Omaha bank in 1974 as a com ­
mercial loan officer and was elected a
vice president in 1977.
* * *
New officers of the National A ss o c­
iation of Bank W omen, M id Plains
Group, were installed at a dinner
meeting June 24 in Omaha. Betty
Wagner, assistant credit officer of
The Omaha National Bank and the
N A B W midwest regional vice presi­
dent, had just returned from the Tri
Regional Conference in Milwaukee
and gave a report on that meeting.
She installed the following new offi­
C hairm an — Doris Capps, v ice
president, Center Bank.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Officers for 1980-81 of the Omaha
chapter of the American Institute of
Banking, elected at the recent annual
meeting, are:
President— Don Schnorr, United
States National Bank.
First Vice President—Jean Volkir,
Omaha National Bank.
Second Vice President—Jerry W il­
son, First National Bank.
Secretary/Treasurer —Rosie Zaporowski, Northwestern National.
* * *
David C. Applegate has joined
Nebraska State Bank in Omaha as
president. He was formerly assistant
vice president at Bank of Nebraska in
LaVista, where he worked one and
one-half years. Prior to that, Mr.
Applegate was associated with Keith
County Bank in Ogallala for three

Four theses from the N ational
Graduate Trust School have been
added to the American Bankers Asso­
ciation library and the library o f
Northwestern U niversity at Evan­
ston, 111.
The new additions raise to 73 the
number of theses available for loan to
ABA members and both present and
former students of the National Trust
School and National Graduate Trust
School. Scholars and academicians
m ay borrow them th rou gh interlibrary loan arrangements with the
ABA library.
One area banker’s thesis selected
from the school’s class of 1979 was
"Lifetime Giving in Estate Planning
Under the 1976 Tax Reform Act,” by
Herbert J. Sliger Jr., The Illinois
National Bank, Springfield.



Toby Sherry Will Lead
ABA Instalment Division
Elected as chairman of the Instal­
ment Lending Division of the Amer­
ican Bankers Association was Toby E.
Sherry, senior vice president, First
Wisconsin National Bank of Madison.
Mr. Sherry’s selection, along with
that of Robert K. Georgeson, executive
vice president, First National Bank
of Lawrence, Kansas, as vice-chair­
man o f the banking division, was
announced before some 2000 bankers
and guests in attendance at the ABA’s
recent 39th National Instalment Cred­
it Conference meeting in Washington,
Mr. Sherry, who had served as the
Instalment Lending Division’s vicechairman for the past year, succeeds
Luther G. French, Jr., senior vice pres­
ident, North Carolina National Bank,


Bob Brown, Don Ostrand, Ralph Peterson, George McFadden, Jim Flodine, Merv Aegerter.

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first nahonal bank
of omaha
Federal Reserve Bank of St. Louis

In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at
800-228-9533. Member FDIC.

board. T. Michael McGregor of First
National Lincoln, 1978-79 president
of the Lincoln chapter, continues to
serve as A IB district councilman.
Other officers elected to the Lin­
coln chapter were Karen Kleman of
National Bank of Commerce, first
vice president; Helen Adams of Gate­
way Bank & Trust Co., second vice
president; Jane Snider of the Union
Bank & Trust Co., secretary, and
Ava Beeman of First National Lin­
coln, treasurer.

Ivan C. Riley
William C. Smith, president of
First National Lincoln, recently an­
nounced the following promotions
and appointments o f officer person­
Georgia Burnham, manager o f cor­
porate trusts, and Sally Schneider,
employment manager, were named
assistant vice presidents.
Judeen Carsten was appointed
trust operations officer, and Fern

Spencer was named bank marketing
* * *

Stan Maly of First National Lin­
coln has been elected president of the
Lincoln chapter of the American In­
stitute o f Banking for the 1980-81
year. He succeeds Charles Heinke of
H avelock Bank, who assumes the
position o f past president on the A IB

Banco Banks Aid Grand Island

Funeral services were held last
month for Ivan C. Riley, 80, retired
president of the First National Bank
of Fairbury.
A native of Lawrence, N eb., Mr.
Riley began his banking career in
Hastings with the Hastings National
Bank. He resigned there as cashier in
January, 1938, to join the Fairbury
bank as cashier, and his election as
president followed in 1940, the post
he held until his retirement in M ay,

of Hastings, presented checks total­
ing $10,000 to representatives of four
I N A short ceremony last month in Robert Kriz, Norman Nackerud, local organizations.
the office o f Grand Island M ayor
president of the First National Bank
Mr. Nackerud said the money was
from the five Banco Banks of N e­
braska to the tornado victim s of
Grand Island, and “ was to be used at
the discretion of the four organiz­
ations wherever it would do the most
g o o d .”
The Nebraska Banco banks are the
First National Bank of Hastings,
Northwestern National Bank of N or­
folk, and the Center Bank, N orth­
western National Bank and U .S. N a­
tional Bank of Omaha.
Mr. Nackerud presented a check
fo r $4,000 to Jolene Heckfeldt, execu­
tive director of the Hall County
Chapter of the Red Cross. James
Shamberg, a director of the Grand
Island Charitable Foundation, ac­
cepted a check for $3,000. Lt. Porter­
field and Carol Scott of the Salvation
Arm y Grand Island Corps received a
check for $2,000. Gary Wilhelm, di­
rector of G .I.F .T ., the Grand Island
Interfaith Task Force, was given a
check for $1,000.
M ayor Kriz and Dave Farnsworth
both expressed appreciation for the
gifts on behalf of the people of Grand
Norman Nackerud, right, pres., First National Bank of Hastings, is congratulated by Grand
Island Mayor Robert Kriz for the Banco donation of $10,000 to Grand Island relief organ­ Island and the Grand Island Charit­
able Foundation.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


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13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Member, f .d .i .c .
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Meet the newest
Roger Arwood, Assistant Vice President
Correspondent Banking Department

Roger Arwood is the newest Bankers’
Banker. He joins Bankers Trust’s other
correspondent bankers, ready to help you with '
your growing responsibilities.
His financial experience with consumers,
with agricultural interests and in a
large metropolitan market make him responsive
to your needs, whatever your size
and local situation.
And since he’s backed by the
full resources of one of Iowa’s
largest independent banks, he can
give you immediate, authoritative
answers to your questions.
We are proud to introduce
Roger. You’ll be pleased with
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newly expanded k
correspondent banking
departm ent at Bankers Trust.
W e’re growing!
Come grow with us.

» Ä T r u __»■■MiSm
s tl I
Correspondent Bank Department
Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Use our toll-free WATS line:
800- 362-1688

Des Moines’ largest
locally owned, independent bank

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

bookkeeping department, was named
a teller in 1917, assistant cashier in
1918, cashier in 1947 and vice presi­
dent in 1948.
He was named president in 1956
and chairman in 1963. Mr. Mouw re­
linquished the presidency to his son,
Vernon, in 1977.



L. H. O lson, pres., S ioux C ity

New Executive VP Joins
United Home, Mason City

N. M iln e r, exec, v .p ., Des Moines

Analyst Charts Banks of Iowa Growth
A N K S o f Iow a , In c., C edar
Rapids, is in "an advantageous
position to enter the decade o f the
1980s,” an analyst for a Wall Street
securities firm told the bank holding
company’s stockholders at their recent
annual meeting.
William R. Fisher Jr., senior vice
president of Donaldson, Lufkin and
Jenrette, New York, charted the rec­
ord of Banks o f Iowa in comparison
with the nation’s other banks which
have from $1 to $2 billion in assets.
"The other banks have not matched
the earnings growth o f Banks of Iowa,”
Mr. Fisher said. He pointed out that
the Iowa company exceeds the nation­
al average in such key areas as return
on assets, return on equity and ratio of
equity to assets.
"Com pared to the average o f 90
other banks of similar size, Banks of
Iowa has an extraordinary capital
base— one of the strongest in the na­
tion,” Mr. Fisher told the stockholders.
He cited three other key factors
which rank Banks o f Iowa high in the
n ation al ban k in g p ictu re— strong
profitability growth in the last five
years, very low debt position and
"strong management not only at the
company level but also in each of the
member banks.”
Banks of Iowa is the state’s only bil­
lion dollar bank holding company, and
Mr. Fisher pointed out, "Banks of Iowa
is far and away the most profitable
bank in the state.” He cited partic­
ularly the asset growth of 13.6% per
year and the annual earnings growth
of 16.7%.
The Wall Street analyst reported
that Banks of Iowa ranked first in the
state in return on assets and second in
return on equity. It also is the third
fastest growing bank in Iowa, in terms
of percentage, but, Mr. Fisher empha­
sized, the other banks are dealing with
a smaller base. "Banks of Iowa has a
strong capital base and has m ain­
tained a record matched by few banks
of its size in the country,” he concluded.

Federal Reserve Bank of St. Louis

At the board meeting following the
stockholders session, F. Forbes Olberg
was re-elected chairman and chief ex­
ecutive officer, while Holmes Foster
was re-elected president and chief
operating officer.
Mr. Olberg, who has headed Banks
of Iowa since it was founded in 1968,
announced that he plans to relinquish
the position of chief executive officer at
the end of the year. He will continue as
chairman and stay on in a policy­
making capacity but without day-today operational responsibilities.

Peter B. Mouw Dies
Funeral services were held in Sioux
Center for Peter B. Mouw, 85, chair­
man of the First National Bank there.
Mr. Mouw had spent 69 years with
the bank, starting as a janitor in 1911.
He later became an apprentice in the

Donald A. Kimmel has been elected
executive vice president of the United
Home Bank &
Trust Co. of Ma­
son City, accord­
ing to Harold G.
Haver, president
and chief execu­
tive officer. Mr.
Kimmel will be in
charge of asset
m a n a g em en t,
with primary re­
s p o n s ib ility in
the loaning area, a new administrat­
ive assignment at the bank.
Formerly he served as senior vice
president and chief lending officer of
Northwestern Bank of Commerce,
Duluth, Minn. A graduate of the U ni­
versity of Minnesota and the W iscon­
sin School of Banking, he began his
banking career 25 years ago at South
St. Paul and served with banks at
Des Moines and Diagonal.

Roland State Bank Starts New Building

E R R Y Hanna, executive vice
president of the Roland State
Bank in Roland, announced that con­
struction started June 1 on a new
4,252-square-foot bank building. The
new building will offer services not
available previously in Roland, Mr.
Hanna said.
On-premise, drive-up and walk-up
banking with ample on-site parking is
planned to accommodate customer
convenience. The main banking level
will have four private loan offices, a
large safety deposit vault with pri­
vate coupon booth, customer service
area, five teller windows, bookkeep­
ing department and handicap facil­


The interior has been designed to
re-use a large quantity of existing
white and black marble from the pre­
sent building and it will be uniquely
displayed with charcoal colored brick
throughout. This same brick will
have an unusual exterior pattern as
indicated in the accom panying photo.
The partial lower level has been de­
signed for future expansion and an
employe lounge and storage areas.
The Kirk Gross Company of
W aterloo has the single source re­
sponsibility for the entire program
and estimates completion in late
November or early December.
Northwestern Banker, July, 1980


Iowa News

Banker Paints Rural Scenes

DURING a recent visit, U.S. Rep. Tom Tauke, Dubuque, right, received a framed limited edition print from
Jerry Maples for his Washington, D.C., office. Mr. Tauke received the print “Moonlight.”

HAT began as a relaxing pas­
time has become an engrossing
avocation for Jerry Maples, executive
vice president of MorAmerica Finan­
cial Corporation, Cedar Rapids, and
president of Jackson State Bank and
Trust Company, Maquoketa.
The Iowa banker recently issued a
set of three signed, limited edition
prints of his landscape paintings for


f e




sale to the public. It marked another
milestone in a long period of exploring
his artistic abilities while pursuing
the b a n k in g career for w hich he
was trained.
Art was far down on his list of priori­
ties during Jerry’s student days. He
recalls taking only one art course as an
undergraduate student at Cornell Col­
lege in Mount Vernon. He earned a


masters degree in marketing from the
University of Iowa.
Mr. Maples did not try painting un­
til he was about 30. Then he began
enrolling in night classes and attend­
ing summer sessions at the Ox Bow
Art Camp in Michigan.
"I committed myself to at least 10
hours of painting each week, no matter
how busy I was with other things,” said
Mr. Maples. "At that point I felt I had
to push myself to see what I could real­
ly accomplish.”
His specialties were, and are, quiet
m idw estern landscapes. He finds
many of the scenes within a few miles
of his home, in rolling countryside
near the Mississippi River.
Mr. Maples has had shows at the
University of Dubuque and the Clin­
ton municipal art center, as well as at
the art center in Cedar Rapids.

Retires as Senior VP
Upon completion of 46 years with
the National Bank of Waterloo, Robert
C. Mexdorf, sen­
ior vice president,
is retiring. A din­
ner party for him
was held recently
h o s t e d b y th e
board of directors
and attended by
fellow officers and
M r. M e x d o r f
started as a mes­
senger with the bank in 1934. He
moved through various departments
and was elected an assistant cashier in
1948, assistant vice president in 1959,
vice president in 1962 and senior vice
president in charge of the commercial
loan department in 1976, a position he
held to his retirement.
He and his wife, Ruth, will continue
their Waterloo residence.

Opens New Facility
A n open house was held recently at
the new Nichols office of the Farmers
& Merchants Savings Bank of Lone
Tree. The new building has 2,000
square feet with drive-up, night de­
pository and additional teller areas.
The facility has two private offices
and a sit-down teller desk.
A bout 400 people visited the new
structure on April 13. Door prizes and
gifts were given to the visitors. An
open house for area bankers was held
on April 12 with about 100 guests.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis


Why our man in Iowa...
should be

Chances are you already know him. Most
every banker in Iowa does. He’s Max Roy.
Max has been traveling the state for over
25 years ... helping correspondent bankers
in just about every way you could think of.
It’s not presumptuous to say that this man
knows as much about farming in Iowa, and
the needs of bankers there, as any banker
who could knock on your door.
You see, Max Roy isn’t j u s t a banker. He’s
a farmer-rancher. Has his own farm just
o u ts id e of B lo o m fie ld , Iowa. 700 acres.
Runs over 300 head of cattle. Like you, he’s

been through the ups and downs of different
cattle cycles. When you talk to Max about
farming, feed, c a ttle ... the needs of your
customers, he knows what you’re talking
a b o u t... first hand!
Max Roy is the kind of person you’ll find
in Drovers Correspondent Banking Depart­
ment. We’re proud to have him with us, and
to offer you the years of banking know-how
he represents.
If you’re one of the few Iowa bankers who
doesn’t know Max, you ought to! He’ll prove
that Drovers should be your bank —and that
Max Roy should be y o u r man in Iowa.
Member Federal Reserve System

Drovers Bank of Chicogo
47th Street & Ashland Avenue, C hicago, IL 60609
Federal Reserve Bank of St. Louis


Northwestern Benker. July. 1980


Iowa News

when a farmer saves, he will choose
the local bank where those savings
can be reloaned out into the commun­
ity . W hen farmers stop saving, banks
will no longer have funds to lend. Our
farm community will then have to
turn entirely to a governmental
agency for all farm credit.
“ That step could lead to the demise
of the family farm and to agriculture
as we know it tod a y.”
Two banks serve the W illiamsburg
CONSTRUCTION was scheduled to be underway on the new Sully facility of the Kellogg Savings Bank.
community, population 2,000. Farm ­
ers Trust & Savings Bank, with near­
Two additional offices and a second
A NEW 3,600 square foot Dutchly $30 million in deposits, is headed
Colonial style bank building will drive-up lane can easily be provided
by Obert L. “ R oy ” Larson as chair­
soon be under construction for the Sul­ later to accommodate future growth.
man and president. The Security
ly office of the Kellogg Savings Bank,
The new facility will be built west of Savings Bank, with approximately
according to Chuck Fritz, president.
the existing bank, providing a small $15 million in deposits, has R .J.
The main banking level will have
courtyard between the old and new Coulter as chairman and R. James
two offices, a conference room, a cus­
buildings. In addition, customer park­ Coulter Jr. as president and chief
tomer lounge, four teller stations, a
executive officer.
ing will be provided on the site.
customer service desk, a large safe de­
In commenting on the two editor­
Control-o-fax Corporation of Water­
posit vault with private coupon rooms
ials, Neil Milner, executive vice presi­
loo is in charge of the project.
and a drive-up banking window.
dent of the Iowa Bankers A ssoci­
ation, said: “ These are two good ex ­
amples of the kind of close working
relationship that can result when
such vital, local institutions—the
I O W A newspapers continue to take tem and community bankers. They community bank and the community
note of the important financial are also providing an additional valu­ newspaper—work to promote mutual
leadership and support that comes able service, maintaining family understanding. These two institu­
from community banks. Typical of farms . . . It is to the lenders’ credit tions have historically played an im­
these editorial reflections on the im ­ that they loan money to farmers even portant leadership role in virtually
portance of the bank to the com m un­ though they can usually obtain high­ every Iowa town, and together with
ity and surrounding area are two edit­ er rates of return elsewhere, like the other important civic institu­
orials that were published last month. short-term treasury notes. Banks tions, such as schools and churches,
The Hinton Progress, which serves would rather make loans to their good help to define the character that
the more than 400 residents o f that customers. In rural areas they will makes each of our towns and cities
town in Plymouth County, ran a continue to serve the needs of farm­ unique.
“ I can’t help thinking that every
special notice signed by The Council ers, because bankers also realize that
of the City o f Hinton thanking the farmers are the backbone of their Iowa bank would do well to nurture
such a relationship with its local
Farmers State Bank for purchasing communities.
“ Plus, bankers always hope that paper.”
the recent issue of $30,000 of G .O .
bonds for a signal light needed to
alleviate a dangerous traffic condi­
tion at Main Street and Highway 75.
Hinton has an office of the Farmers
State Bank, which is located in the
nearby town of Merrill.
In Williamsburg, Publisher C.
Edward Koch of the Journal-Tribune
printed an editorial titled “ Credit:
Savings Reloaned” which recounted
the pressing need for production and
capital loans to farmers. “ Helping
farmers obtain adequate financing,”
he wrote, “ are the farm banking sys-

Kellogg Bank Plans New Sully Office

Newspapers Credit Local Bank Support

luoketa State
Opens New Office

MAQUOKETA State Bank staff and patrons celebrated the grand opening of the new West Side office
last month. Attending the ribbon cutting ceremony were Ed Tubbs, chmn.; John Fagerland, pres., and
Norm Nielsen, branch mgr.

Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis




W hat m akes IBIS
so successful?
People like Jim Jensen
and Bill Carr.

Jim and Bill have th e training and years of experience needed
to effectively service your bank’s specific needs in the areas of
Blanket Bond and Directors’ and Officers’ Liability insurance.
Their expertise has been helping Iowa Banks build “The Right
Combination’’ of corporate security coverages for years.
A t no charge to you, IBIS will carefully evaluate your bank’s
insurance requirem ents and design a Blanket Bond and/or Directors’
and Officers’ Liability package to m eet those requirements. And best
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insurance companies in th e nation.
Call Jim or Bill soon for information about the comprehensive
bank insurance coverages offered through your Iowa Bankers
Association m em ber-ow ned insurance agency.

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430 Liberty Building, Des Moines, Iowa 50308 (515) 286-4300
Call our toll FREE WATS number 1-800-532-1432

The right combination.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Iowa News

LEFT— Scholarship chmn. Dorothy Engel, a.c., Cedar Falls Trust & Savings Bank, with winners Jane Enfield, a.c., Commercial Trust &
Savings Bank, Storm Lake; Ruth Ann Scott, a.c., Early Savings Bank, and Susan Robinson, Sac City State Bank, pictured from left.
RIGHT— Representing the NABW Iowa Groups, clockwise from top left: Janet Dickey, South Central chmn., a.c., Iowa State B&T, Fairfield; Margaret A. Linquist, Southwest, v.p., Montgomery County Nat’l., Red Oak; Ruth Ann Scott, Northwest chm n., a.c., Early Savings
Bank; Katherine Lalor, North Central, a .t.o ., First Security B&T Co., Charles City; Mary Lou Van Zee, Central Iowa, a.v.p. & aud., First
Newton Nat’l. ; Dee Ablett, Southeast chm n., mktg. o ff., First Nat’l., Iowa City, and Norma J. McVay, Northeast chm n., cash., Palo
Savings Bank.

Iowa Groups of NABW Convene
Associate Editor
RECORD 202 registrants gath­
ered at the Holiday Inn o f the
Amana Colonies M ay 22-23 for the
state convention o f the National A s ­
sociation of Bank W om en Iowa
Banquet speaker Paul Nadler, pro­
fessor o f business administration at
Rutgers University, attracted scores
of guests including top management
from several area banks. He reiterat­
ed the theme that inflation is the
number one problem facing the coun­
try today in a talk laced with humor­
ous anecdotes, “ Banking in the 80s:
Caterpillar or Butterfly?”
N A B W Regional Vice President
Betty Wagner, assistant credit offi­
cer at the Omaha (Neb.) National
Bank, outlined several proposed
structural changes in the organiza­
tion. Included in the proposals dis­
cussed at the N A B W Tri-Regional
Conference in Milwaukee, W is., last
month were:
• Establishment of a state council
in each state.
• Organizational structure to be
changed from 15 to eight regions. A
regional director would be assigned to
each region. The M idwest Region
would be dissolved and Iowa would
be part of the new North Central
• A closer working relationship
with the state banking associations.


Banker, July, 1980
Federal Reserve Bank of St. Louis

• Annual state meetings in each
state. Currently not all of the states
meet annually as a group.
Television personalities Connie
McBumey and Almo Hawkins,
K CCI-TV, Des Moines, presented a
half-day seminar on communications.
The workshop stressed verbal com ­
munication and dealt with listening,
voice qualities, conversation, man­
nerisms and personal appearance.
Audience participation was encour­
aged and registrants enjoyed the
verbal exercises as a “ hands on ”

Providing a legislative update and
remarks was Neil Milner, executive
vice president of the Iowa Bankers
Association. He pointed out that the
momentum for change is underway
from “ share drafts and pressure from
small savers to receive market rates.
W e’re m oving to equity in the inter­
est area—the banking industry has
been in support of the consum er.”
Mr. Milner stressed that all banks
currently not on an accrual account­
ing basis should do so. “ W e must be­
come more bottom-line-oriented in
the 1980s.” He added that the secret
of success with NOW accounts is
pricing and suggested marketing
them with truncation.
Anne L. Bryant, educational di-

CONVENTION chairmen, from left, included Janet Dickey, a.c., Iowa State Bank & Trust
Co., Fairfield, general chm n.; Ruth Derby, a.v.p., First Iowa State Bank, Albia; Hester
Whitlatch, cont., Mahaska State Bank, Oskaloosa; Pat Kucher, a.c., Union Bank & Trust
Co., Ottumwa, and Pat McClellan, oper. mgr., Iowa State Bank & Trust Co., Fairfield (top
row); Martha Oxenreider, aud., Nat’l. Bank & Trust, Chariton; Betty L. Bruch, v.p. & cash.,
First Nat’l. Bank, Ottumwa; Marne E. Bond, v.p., Davis County Savings Bank, Bloom field,
and Jeraldine Dixon, a.v.p., Iowa Trust & Savings Bank, Centerville (bottom row).

iowa News

rector of the N A B W Educational
F o u n d a tio n , C h ica g o , g a v e an
N A B W education advisors update
and outlined several programs for
women executives. She pointed out
that education is needed not only for
upward m obility, but for good per­
formance in present jo b placements.
She added that a commitment is
needed on both the part of the
employe and the bank.
Three women were presented with
N A B W scholarships. Susan Robin­
son, Sac City State Bank, received
the Helen Rhinehart Award for a non­
member to attend the Iowa School of
Banking. The Margaret I. Hendry
Scholarship Award was given to Jane
Enfield, assistant cashier, Commer­
cial Trust & Savings Bank, Storm
Lake, for the Iowa School of Banking.
Ruth Ann Scott, assistant cashier,
Early Savings Bank, received the
B etty L. Steele Award, a $500 grant
for the N A B W Management Series
seminars and study modules.
The convention theme of “ Up, Up
and A w a y” was followed throughout
the sessions. Chairman of the event
was Janet Dickey, South Central
Iowa Group chairman and assistant
cashier, Iowa State Bank & Trust
Co., Fairfield. The Southwest Group
will host the 1981 convention to be
held next spring in Council B lu ffs. □

Receives SBA Honor
W. R. (Bill) Johnson, vice president
at Northwest Bank & Trust Company,
D aven port, has
been p resen ted
an a w a r d f o r
b e in g " B a n k e r
Advocate” of the
year for the Iowa
D is t r ic t o f th e
U.S. Small Busi­
ness Administra­
SB A D istr ic t
Director Conrad
E. Lawlor said the award is sponsored
by the SBA to recognize a banker who
has made special efforts on a local,
regional or national level to increase
the availability o f funds for small


Wilma Weeks, Ken Roeder, Jim Hongslo, Wayne Johnson and Jim Young

We’re people you can count on
for data processing.
At western Iowa’s largest bank, w e’ re people. P eople
you can count on for data processing and all your corre­
spondent banking needs.
Security Bank p eop le know data processing and how
to make it work for you. They understand the special needs
o f agriculturally oriented banks.
For data processing, ag lending, overlines
and investments, start corresponding with Security.
W e’ re p eop le you can count on.

We’re more than Western Iowa’s
largest bank.
We’re people.

Joins Humboldt Bank
Larry D. Curran has joined the First
National Bank, Humboldt, as vice
president and cashier. Mr. Curran was
form erly w ith the First N ational
Bank, Ames, for the past 10 years.
Federal Reserve Bank of St. Louis

SIOUX CITY IOWA 51101 • 712/277-6600 • MEMBER F.D.I.C.
© 1980 Security National Bank

Northwestern Banker, July, 1980


obert E. Lee, president and chief
executive officer, has announced a
new organizational structure for the
Iowa-Des Moines National Bank.
G arland K. C arver has been
named head of the corporate banking
division. The managers o f the depart­
ments in this division are David L.
Tremmel, group vice president, inter­
national banking; Walter W. Pirnot,
vice president, nation al banking;
Lance D. Davenport, vice president,
Iowa banking, and Robert A. Ander­
son, group vice president, credit ad­
Iowa banking will be responsible for
business development and service to
corporations and financial institutions
throughout the state. Bernard H.
Kersey, vice president, was named
manager, correspondent banking, and
will report to Mr. Davenport.
G eorge F. M illig an has been


named head of the metropolitan bank­
ing division. The managers o f the
dep artm en ts in th is d iv ision are
Thomas H. Farris, vice president,
com m ercial b an k in g; W illiam F.
Landholt, vice president, real estate
services; John C. Clark, vice presi­
dent, small business banking; Robert
G. Millen, vice president, retail bank­
ing, marketing and public affairs, and
Thomas N. Hammelman, vice presi­
dent, bankcard services.
Dee L. Frost will continue as head
of the finance and administration divi­
sion. The managers o f the depart­
ments in this division are John A.
Sikkink, senior vice president and
cash ier, operation s m anagem ent;
James D. Kempkes, senior vice pres­
ident, trust services; Peter F. Faletti,
senior vice president and chief finan­
cial officer, finance; H. Lynn Horak,
vice president, investment services,
and Richard D. Pedersen, vice presi­
dent, facilities management.
M. M. McMichael, vice chairman;
W. C. Smith, senior vice president,
and region al director, hum an re­
sources division, and Messrs. Carver,
Frost and Milligan will all report to
Mr. Lee.
This reorganization has taken place
in response to the changing needs of
the marketplace. It creates a logical
system for delivery of services, and it
estab lish es a firm foundation for
growth and planning in the future.

for 4V2 years. He received BS and MBA
degrees from Drake University. Ver­
non R. Ellingson, who has been with
the bank six years, was promoted to
vice president/instalment loans. He
attended Marquette University.
Robert M. Koele, with the bank for
nine years, was promoted to vice presi­
dent. He attended the University of
South Dakota. Buzz Schwartz, pro­
moted to vice president, has been with
West Bank for six years. He has a
BA degree from the U niversity of
James Aslin and Dennis Kirkpat­
rick were promoted to assistant vice
presidents. Mr. Aslin has a degree
from the University of Arizona and
has been with the bank since 1972. Mr.
Kirkpatrick, with the bank for four
years, has a business degree from Iowa
State University.
Mark Braunger, also named an
assistant vice president, is the newest
member of the West Bank staff and
was most recently with First Federal
State Bank here. He is a graduate of
the University of South Dakota.
Timothy J. Byrnes, Sharon K.
Surber and Mary Yergler have been
appointed assistant cashiers. Mr.
Byrnes joined the bank in 1974. He is
chairman of the Des Moines AIB chap­
ter and serves on the financial services
curriculum advisory board at Des
Moines Area Community College.
Ms. Surber, with the bank for five
years, is in charge of personnel and
heads the note and teller departments.
Ms. Yergler, with the bank for six
years, attended Purdue U niversity
and DM ACC.
* * *
Robert E. Lee, president and chief
executive officer of the Iowa-Des
Moines National Bank, has announc­
ed two promotions.
Mary E. Kennedy has been elected
personal loan officer. She joined the
bank’s credit department in 1969 and
served in various positions in retail
banking until joining the commercial
loan department in 1979.
Hayden C. Curry has been named

* * *



Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

David L. Miller, chairm an and
president o f the W est Des Moines
State Bank, has announced several
Dennis S. Barsky, promoted to vice
president, has been with West Bank




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Central National Bank & Trust Company
Federal Reserve Bank of St. Louis

Northwestern Banker. July, 1980


Iowa News

property management officer. He
joined the Iowa-Des Moines in 1975
as bank services manager. Previously
he held various positions with the
federal government, primarily with
the A ir Force.
* * *
The appointment of Merle J.
Baumhover as an assistant vice pres­
ident was an­
nounced recently
by John H. Harmeyer, president
of Plaza State
Mr. Baum hov­
er was formerly
employed as a
ban k exam iner
with the state dep a rtm en t

banking. He received his degree from
St. John’s University in Collegeville,

Appointed Office Manager
At Davenport Bank & Trust
Davenport Bank and Trust Com­
pany has a n ­
nounced the re­
cen t p rom otion
o f A n t h o n y E.
Hughes to mana­
ger o f the K im ­
berly Road office.
Mr. Hughes, who
joined the bank in
1969, has h eld
several positions,
m ost r e c e n tly
servin g as a correspon d en t bank

McMichael Retires from Iowa-Des Moines
HE retirement of M . M . M cMichael as vice chairman o f the
Iowa-Des Moines National Bank in
Des Moines on July 31 will conclude a
26-year banking career, all of it with
Iowa-Des Moines. Since M ay, 1976,
when management instituted a divi­
sional reorganization, Mike M cMichael has had responsibility for the
administrative and marketing divi­
sion, including correspondent bank­
ing, corporate services and retail
banking (advertising, marketing and
the offices). In August, 1977, inter­
national banking was added to his
Mr. McMichael will continue on
the Iowa-Des Moines National board
of directors and has been requested to
continue on a consulting basis to
assist in business development work
for the bank.
A native of Des Moines, Mr. M c­
Michael was graduated from R oose­
velt High School and in the course of
those four years became Iow a’s most
noted basketball player in history.
He is the only player in the history of
the game in Iowa to be selected as an
All-State basketball player all four
years, a feat that probably now will
not be equaled with the advent of
junior highs. Mr. McM ichael con ­
tinued as a basketball star at N orth­
western University in Evanston, 111.,
where he was a starter for three years.
He was graduated with a BS degree in
business administration in 1938.
He started work immediately for
Goodyear Tire and Rubber Company


Northwestern Banker, July, 1980
Federal Reserve Bank of St. Louis

Mike McMichael poses beside the two
awards he has received inducting him into
the Iowa High School A thletic Association
Hall of Fame and the Des Moines Register
and Tribune Iowa Sports Hall of Fame.

in Akron, Ohio, working later in
Memphis, T enn., before being m oved
to Des Moines. Goodyear sponsored a
team in the National Pro Basketball
League and Mike McMichael played
on it one year before choosing to pur­
sue his business career full-time.
In 1949 he left Goodyear to join
Cowles Broadcasting Company and
its Des Moines radio station, K RN T.
He left that position in February,
1954, to join the Iowa-Des Moines
National Bank as assistant vice pres­
ident in the business development,
advertising and public relations area.
He was promoted to vice president in
1957, then in 1967 was named a senior
vice president and assumed responsi­
bility for the marketing division in
1969. His election as a director of the
bank followed in 1970. In January,

1974, he was elected vice chairman
over the lending division, encom pas­
sing real estate, dealer loan and commercial loans, in addition to being
responsible for correspondent bank­
ing and corporate services. The divi­
sional reorganization followed in
Mr. M cMichael is a 1963 graduate
of the commercial banking course at
The Stonier Graduate School of
Banking at Rutgers University.
Under Mr. M cM ichael’s leader­
ship, the Iowa-Des Moines in 1959
initiated its Business Trends Confer­
ence which has been held annually in
Des Moines during the first week in
December. Participants include five
noted business executives nationwide
and a noted economist, who look at
the prospects for Iowa business in the
coming year.
In addition to his work with the
Iowa-Des Moines, Mr. McMichael
served on the savings promotion
committee of the American Bankers
Association in 1964-65, was chairman
in 1965 for the Foundation for Com ­
mercial Banks, served as panelist for
A B A National Automation Confer­
ences and held various duties on
Northwest Bancorporation com m it­
tees. In Iowa banking, he served on
the Iowa Bankers Association federal
legislative committee, was president
from 1975-77 of the Iowa Autom ated
Clearing House Association, served
on the board of Iowa Transfer S y s­
tem, as well as with Mid America
Bankcard Association since 1977,
and as president of the Central States
Card Association 1978-79 and of the
Des Moines Clearing House A ssoci­
ation in 1978. He has been a member
of the Association of Reserve City
In recent years, Mr. McMichael
has received the two highest honors
that can be accorded an Iowa athlete,
He was inducted into the Iowa High
School Sports Hall of Fame, and later
was given the same honor by the Des
Moines Register and Tribune in its
Hall of Fame.
During W orld War II Mr. M c­
Michael served in the United States
Navy as a Lt. j .g. in the South Pacific
from 1943 to 1945. In June, 1945, he
nearly lost his life when a Japanese
kamikaze pilot slammed into his
carrier, The U .S.S. William Porter,
and the ship sank within two hours
with a loss of one-fourth of the ship’s
Mr. M cMichael and his wife,
D orothy (Dot), will continue to make
their home in Des M oines.










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Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1980


Iowa News

NEW CHMN. of Gr. 6, Robert E. Chittenden, v.p. & cash., Farmers Sav. Bk., M itcheiiviile, and the new secy., Robert J. Miller, e.v.p. &
cash., Polk City Sav. Bk. RIGHT— Bill Greaves, v.p., Central Nat’l. Bk. & Tr. Co., Des Moines, and wife, Diane, and Tom Killeen, a.v.p.,
Fed Reserve, Des Moines.

NEW CHMN. of Gr. 12, Ed Norland, v.p., low aTr. & Sav. Bk., Emmetsburg, and the new secy., Ed Leahy, pres., Northwestern St. Bk.,
OrangeCity. CENTER— Bob Dixon, pres., Rolfe St. Bk., and Keith Campbell, pres., Citizens St. Bk., Sheldon. RIGHT—Wayne Johnson,
sr. corr. o ff., Security Nat’l. Bk., Sioux City, and R. M. Cuttell, pres., Everly St. Bk.

GROUP FIVE officers are Richard Randall, pres., Dunlap Sav. Bk., (chmn.),
and David N. Walthall, pres., State Bk. & Tr. Co., Council Bluffs, (secy.).
RIGHT— IBATreas. L. C. “Bud” Pike, pres., Farmers Sav. Bk., Grundy Center;
Ronald F. Sealock, e.v.p., Council B luffs Sav. Bk., and Tom Dunlap, pres.,
South Story Bk. & Tr., Slater, nominee for v.p. of the IBA.

Banker, July, 1980
Federal Reserve Bank of St. Louis

Iowa News


Pictures Taken in May at Iowa Group Meetings

IB A PRES. Les Olson, pres., Toy Nat’l. Bk., Sioux C ity, and wife, Faye, and Don Bolton, chmn. of Gr. 6 and e.v.p., Union St. Bk., Winterset. RIGHT—Tom Elyea, v.p., Continental Bank, Chicago, and Robert E. Lee, pres., lowa-Des Moines Nat’l. Bk.

Hawkeye Buys Capital City Bank
CO N TRACT to purchase Capital
City State Bank of Des Moines
by Hawkeye Bancorporation, a Des
Moines-based multi-bank holding
com pany, was announced June 22 by
H. Jack M oors, president of Capital
City Bank, and Paul D. Dunlap,
president o f Hawkeye. Terms of the
proposed sale were not disclosed.
The contract to purchase the $90
million assets eastside bank is sub­
ject to regulatory approval.
Hawkeye Bancorporation present­
ly owns 24 Iowa banks, following fed­
eral approval June 23 for acquisition
of First National Bank of Sibley. The
Hawkeye group has assets totaling
approximately $1 billion. The group
includes First Federal State Bank,
also of Des Moines, located at 24th
and University Streets on the westside. Mr. Dunlap stated “ it would be
Hawkeye’s intention to operate both
banks independently of each other
and not merge the institutions. The
eastside of Des Moines is a great
banking market and is one in which
we enthusiastically look forward to
Capital City Bank has detached
Des Moines offices at 5700 Hickman
Road and 2426 Hubbell Avenue, as
well as at 1237 Grand Avenue in W est
Des Moines. First Federal, which has
assets of nearly $55 million, has
offices in suburban Clive, and also in
River Hills and downtown Des
Capital City Bank was chartered in
1869, the second oldest charter in the
city. It is the fifth largest bank in the
metropolitan area, based on 1979
year- end reports.
Earlier this year, Hawkeye pur­

Federal Reserve Bank of St. Louis

chased the Hawkeye State Bank in
Iowa City, effective May 1, as its
23rd bank.

Management Changes at
First Nat’l., Woodbine
The board of the First N ational
Bank, Woodbine, has announced two
management changes, according to
Kenner S. Swedburg, president. Leo
P. Kenkel was elected vice president
and cashier, and Kenneth D. Waite
was nam ed assistant cashier and
loan officer.

of instalment loans and assist in the
real estate mortgage and student loan
Mr. Trudo has been with the bank
since 1978. He previously taught
school for over 10 years.

Heads Bremer Co. Bankers
Janice Johnson has been elected
president of the Bremer County Bank­
ers Association. She is assistant vice
president at the First National Bank of
Waverly and is the first woman to
head the organization.
Also elected were: vice president—
Mike Stoessel, assistant cashier, First
National Bank of Sumner, and secretary/treasurer— Gary Burke, cashier,
State Bank of Waverly.

Harlan D. Sterk Dies



Mr. Kenkel has been with the bank
since 1963. He was named cashier in
1967 and elected to the board of direc­
tors in 1977.
Mr. Waite joined the bank in 1976 as
a teller and management trainee after
working at the National Bank of Com­
merce in Lincoln, Neb. He is a gradu­
ate of Kearney (Neb.) State College.

Promoted at Lone Tree
Farmers & Merchants Savings
Bank, Lone Tree, has announced the
prom otion of Ron Trudo to the posi­
tion of assistant cashier and instal­
ment loan officer. He will be in charge

Harlan D. Sterk, 44, president of
the Jefferson State Bank, died of can­
cer last month.
Mr. Sterk, a
native of M onte­
zuma, had been
with the Jeffer­
son bank since
1965 when he was
hired as a man­
ager of the bank’s
Dana office. He
served the bank
in all areas of
lending and was named senior vice
president in 1972 and president last
A ctive in banking and civic organi­
zations , he was a member of the board
of Brenton Banks, Inc., and chair­
man of the board of trustees for the
Presbyterian Church. Survivors in­
clude his wife, Ila, and four children.
Northwestern Banker, July, 1980


Predicts ‘Second Golden Age’ of Housing
ESP IT E short-term weakness in
homebuilding due to record in­
terest rates, the
U .S. is entering a
“ second golden
age” of housing,
and the 1980 cen­
sus is likely to
find that an his­
toric two-thirds
o f A m e r ic a n s
own their homes,
Leon T. Kendall,
president, M ort­
gage Guaranty Insurance Corporat­
ion, Milwaukee, told a forecasting
conference recently in San Francisco.


“ The current outlook for housing is
bleak, and we have lost the 1980
building season,” Mr. Kendall said at
the Conference B oard’s Midyear
Forecasting Conference. “ M y hous­
ing starts estimate for the year is a
soft 1.1 million units made up of
450,000 multiple-family starts, in­
cluding condominiums, and 650,000
single-family detached units. This
would be the lowest level of starts
since 1946. A nd, as far as single­
family activity is concerned, the low ­
est since 1945.”
Indeed, the president of the
nation’s oldest and largest mortgage
guaranty insurer said his 1.1 million
starts forecast was predicated on
interest rates peaking by mid-M ay.
“ If rates remain high through m id­
year, even lower levels of starts are
likely,” he added.
Mr. Kendall said the next two
quarters, through September, should
bear the brunt of the homebuilding
squeeze, followed by a sharp rebound
in activity. “ In contrast to the 197475 slowdown, there are few parts of
the nation where builders have inven­
tories well ahead of sales,” he added.
“ There are no RE IT-type situations,
no Floridas, Arizonas and Atlantas
on the horizon.”
Over the long term, Mr. Kendall
said, “ W e have entered a second
golden age in single-family housing
activity. I t ’s being fueled by the same
force as the first one back in the late
1950’s —more people needing and
wanting hom es.”
The 1980 census “ is likely to sur­
prise u s” by reporting hoiqeownership at a new high o f more than 65 %
of the population, compared with
55% in 1950 and 62% in 1960, Mr.
Kendall said. “ A nd the estimate
probably missed many condo con ­

Banker, July, 1980
Federal Reserve Bank of St. Louis

versions and other changes to owner­
Pointing to demographics, Mr.
Kendall attributed the surge in own­
ership levels to a change in the age
distribution of the population. “ A s
we get more people in the 25- to 35year age bracket, home ownership
levels rise,” he said. “ This fast-grow ­
ing group will push ownership levels
upward during the next five to ten
Mr. Kendall said M ortgage Guar­
anty Insurance Corporation, a unit of
Milwaukee-based M GIC Investment
Corporation, “ has been watching
with fascination another dynamism
within housing. In 1979, we found
that 20 % to 25 % of the high-ratio 5 %
and 10 % down payment conventional
m ortgage loans were made to nontraditional households, including
single persons.” Changing lifestyles
are apt to continue and to build de­
mand further, he added.
The need for housing market fi­
nancing will be “ enorm ous,” Mr.
Kendall said, with one study project­
ing demand in 1989 at $1 trillion and
supply from traditional sources like
savings and loan associations at $774
billion. “ This leaves a shortfall of
$226 billion in 1989, an amount
greater than the total demand for
mortgage funds in 1979,” he noted.
Mr. Kendall said potential sources
of money to fill the mortgage gap
would be “ life insurance companies,
which closed their home loan depart­
ments in the 1970’s; pension funds,
which have practically no mortgage
debt; bank trust departments, and
in te rn a tion a l in v e s to rs r e cy clin g
Eurodollars and Petrodollars.”
However, Mr. Kendall said, “ these
institutions w on’t buy home loans in
traditional form. They will want
securities and, preferably, securities
that are rated. More conventional,
m o r tg a g e -b a ck e d b o n d s , p a s s ­
through certificates and private con ­
duits, such as M G IC ’s M aggie Mae
pass-throughs, along with innumer­
able variations on these themes, are
likely to appear. Financial evolution
will accelerate.”
For homebuyers, the challenge of
the 1980s will be affordability, Mr.
Kendall maintained. “ M onthly pay­
ments are likely to take a higher pro­
portion of income than the long-term
norm ,” he said. The house payment
ratio may move beyond the tradition­
al 25 % to perhaps as high as 40 % .
Mr. Kendall said the fixed-rate

mortgage may become extinct, being
“ m od ern ized th rou g h tech n iq u es
such as graduating payments, pledg­
ing savings accounts, using rollovers,
introducing various types of second­
ary financing and separating the
ownership of the land from the build­
in g.”

Manufacturers Hanover
Files Public Offering
Manufacturers Hanover Corpora­
tion, New York, announced that it has
filed with the Securities and Exchange
Commission a public offering of $100
million of notes due in 1983. Net pro­
ceeds were to be applied to general
corporate purposes, including the ad­
vance or contribution of funds to its
The notes were offered in multiples
of $100,000 through underwriters led
by Goldman, Sachs & Co., M errill
Lynch White Weld Capital Markets
Group and Solomon Brothers.

JULY, 1980
Acorn Printing Co........................................................... 14
Aetna Business Credit ................................................. 27
American Nat’l. B k.& Tr. Co., Chicago ......................30
American Nat’l. B k.& Tr. Co., St. Paul ........................53
American Express Money Orders ............................... 29
American Express Travelers Cheques ..................... 3
Banco Financial /Lease N o rth w e s t..............................16
Bankers Trust Co., Des Moines ................................... 80
Brandt Systems ....................................................... 21-22
Central Nat’l. Bk. &Tr. Co., Des Moines ....................89
Commerce Bank of Kansas City ............................... 5
Commercial Nat’l. Bank, Peoria ................................. 33
Continental Bank, Chicago ....................................... 7
Control-O-Fax ...............................................................82
Daktronics ................................................................... 8
Deluxe Check Printers, Inc.............................................95
Drovers Bank of Chicago ............................................. 83
First Boston Corporation ............................................. 13
First Nat’l. Bk., D enve r................................................. 67
First Nat’l. Bk., Lincoln
........................................... 79
First Nat’l. Bk., Minneapolis ................................. 46-47
First Nat’l. Bk., Omaha
........................................... 77
First Nat’l. Bk., St. Paul
........................................... 41
First Nat’l. Bk., St. Paul(B o n d s )...................................52
Gross Co., Kirk, Waterloo ......................................... 91
Harris Bank, Chicago ................................................. 9
Heller&Co., W alterE..................................................... 37
Iowa Bankers Ins. & Services ....................................... 85
lowa-Des Moines Nat’l. Bk.............................................96
Kooker&Associates, E.F.............................................. 84
LeFebureCorp., Cedar Rapids ................................... 11
Merchants Nat'l. Bk., Cedar Rapids .......................... 2
Midland Nat’l. Bk., Minneapolis ................................. 38
Nat’l. Bk. of Commerce, Lincoln ................................. 72
Northwestern Nat’l. Bk., Minneapolis ........................45
OmahaNat’l. Bk........................................................ 50-51
SLT Warehouse Co., St. Louis ................................... 35
Security Nat’l. Bk., SiouxCity ..................................... 87
United States Nat'l. Bk., Omaha ........................... 74-75
Visa Travelers Cheques ............................................... 15
Van Wagenen, G.D......................................................... 12

A m erican bankers greet th e fou n d in g o f th e Fed.
C ongress enacts
the Federal Reserve
System , new son g w riter
Irv in g B erlin s latest hit
is “Snoopy Oo^ums,”
a n d A m erica goes wild
o v er the M odel T.
It was 1913 and
though greeted as sensible
and needed by some, and
government meddling by
others, the Federal
Reserve System never­
theless remains today an
integral part o f our
fiscal machinery.
Just tw o years
later, a man named
W. R . Hotchkiss would
start w hat is today the
* iiation’s largest supplier of
individualized checks for
personal and business use.
Much has changed
since then. But one thing
hasn’t. A n d that’s our
devotion to customer
A fter all, w hen
your product bears not
your name but someone
i ehe’s you can afford
to do no less. You’d better
set your standards high.
A n d w e do. We do.

; j


£ » L .*■
Federal Reserve Bank of St. Louis


S etting the Standards.

There’s agoodreasonwhy
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(515) 245-3131

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Federal Reserve Bank of St. Louis


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1 9 8 0 lowa-Des Moines National Bank