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Federal Reserve Bank of St. Louis

He's Stan Farmer, your MNB Correspondent banker.
MNB's Stan Farmer means business — more
business for you and your bank. He can help
you say "yes" to your valuable bank
customers when their financial need exceeds
your ability to fulfill it.
Stan has the knowledge and experience to
work with you and your customer on
agricultural loans, or commercial and real
estate loans. He w ill also consult with you on
your personal plans for bank ownership.
He means business when it comes to
assisting with your day-to-day cash
management needs, as well. In addition to
providing standard services — such as federal
fund transactions, short-term investments and
check clearing — Stan and our MNB
Federal Reserve Bank of St. Louis

Correspondent banking staff can help you
deal with critical cash transfer deadlines,
complicated collection requirements,
international transactions and difficult check
clearing problems. Additionally, Stan w ill
work with you to provide operational
innovations that prepare your bank for any
service need.
At MNB, we're dedicated to bringing
together the resources, experience and
services you want in a correspondent bank.
That's MNB's commitment to productivity, so
talk to Stan, soon. When he says he can help
your bank's business grow, he means
business. Call Stan at 319/398-4320 or
1-800-332-5991, toll free, today.

Merchants National Bank
Cedar Rapids, Iowa 52401

Member F.D1C

is i



Brandt Has The Products
T hat W ill W rap Up Your
Money Handling Needs.

Count O n It.
Chances are when you think of
Brandt, you think of your money
handling equipment.
Actually, Brandt is a total sup­
p lier of banking related items.
Paper products are a good example.
We handle flat, tubular coin wrap­
pers. Crimped end wrappers. Paper
rolls for automatic packaging. All
color coded by denomination. All
produced to Brandt’s high quality

standards. And, for money coming
into your operation, we can supply
high quality bank bags. Bags de­
signed to provide the security you
and your custom ers need. Bags
built to hold up for extended use.
Paper products. Bank bags. Just a
part of the complete line of Brandt
money handling products.
B randt. M aking yo u r m oney

Brandt, Inc. P.O. Box 200, Watertown, WI 53094 (4 1 4 ) 261-1780.
Federal Reserve Bank of St. Louis


i j a

JULY 1986




93rd Year


No. 1474


Exclusive color photos of the new officers of seven upper midwest state banker
associations were taken at recent state conventions by the N o r t h w e s t e r n
B a n k e r . Nebraska’s officers are, from left: Pres.-Elect— Donald E. Blaha, pres., 1st
Natl., Ord.; Pres.— C.G. “ Kelly” Holthus, pres., 1st Natl., York.; Immed. Past
Pres.— Mel Adams, chmn. & ceo, Adams Banks, Ogallala, and Exec. V.P.—Stan
Matzke, Jr., Lincoln. The Nebraska convention report was published in the June
Officers for the Colorado, Illinois, Minnesota, North Dakota, Wisconsin and
Wyoming Bankers Associations, also pictured on the cover, are identified with
on-the-spot, exclusive staff reports appearing in this issue. (Note page numbers
below for each convention report.)
Color photo was unavailable for South Dakota (reported last month).



Case of defendant director— Part IV

Attorneys review “ Risk Protection Mechanisms


Revisiting data processing alternatives

CPA Geoffrey Wold looks at two basic EDP approaches


Illinois Convention Report
Wisconsin Convention Report
Minnesota Convention Report
South Dakota News
North Dakota Convention Report
Montana News
Wyoming Convention Report


Colorado Convention Report
Nebraska News
Omaha News
Iowa News
IIB Convention Program
Des Moines News

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

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Melinda Sauers

Diane Nelson

No. 1474 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker,' 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Northwestern Banker, July, 1986
Federal Reserve Bank of St. Louis

CSBS Certifies Michigan
In ceremonies at Lansing, the #
Michigan Financial Institutions
Bureau became the fifth state bank
regulatory agency in the nation to
receive formal certification under
the State Banking Department Ac •
creditation Program of the Confer­
ence of State Bank Supervisors
The Certificate of Accreditation
was presented by Sidney A. Bailey,
commissioner of financial institu­
tions of Virginia and chairman of the
CSBS Performance Standards Com­
mittee, to Michigan Commissioner
Eugene W. Kuthy. Mr. Bailey em­
phasized the certificate recognizes
that the Michigan Financial Institu­
tions Bureau “conforms to the high­
est standards of bank supervision
and regulation,” adding, “the core
of effective duality lies in effective
systems at both state and federal
levels.” The CSBS spokesman con­
cluded, “this new, highly profes­
sional, highly disciplined perfor­
mance evaluation program demon­
strates in the most concrete fashion
that state banking departments are
worthy of the expanded responsibili­
ties being placed on them.”
David Taylor Elected
at Irving Trust Company
David G. Taylor has been elected
vice chairman and a director of Irv­
ing Trust Company, New York, it
was announced recently by Joseph
A. Rice, chairman and chief execu­
tive officer of the bank and its par­
ent company, Irving Bank Corpora­
Mr. Taylor has been vice chairman of Continental Illinois National
Bank and Trust Company of Chi­
cago, responsible for the bank’s
funding, trading and treasury op­
From February to July 1984, Mr.
Taylor served as chairman and chief
executive officer of Continental,
leading that bank through its fund­
ing crisis and negotiating its financial restructuring package with
bank regulatory authorities.
At Irving Trust, Mr. Taylor will
be responsible for the bank’s securi­
ties markets, investment banking,
foreign exchange and funding activi­
ties. He will assume most of the cur­
rent duties of Senior Executive Vice
President Robert W. Stone, who is
scheduled to retire in 1987.








B alancing
g o o d b an k in g
w ith stro n g

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

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

Firslier Correspondents

O ur New Nam e
Speaks For Its e lf.
So Does Our History.
Federal Reserve Bank of St. Louis

Omaha National and First National
Lincoln are now FirsTier Bank Omaha and
FirsTier Bank Lincoln. New names for two of
the Midwest’s most experienced providers of
Correspondent Bank Services.
While our names may have changed, our
people and commitment remain. As always,
you can depend on the FirsTier Correspon­

dents for fast, responsive, personalized ser­
vice in meeting your needs...the qualities our
reputations were built upon.
And, as our new name implies, we’re
dedicated to bringing you quality service in
everything we do...backed by more than two
centuries of combined experience.

For all your Correspondent needs, remember the name — FirsTier.

Farnam at Seventeenth, Omaha, NE 68102
Phone: In Nebraska (800) 642-9305
Outside Nebraska (800) 228-9175

Richard J. Yeshnowski
Vice President / Manager

James L. Allen
Vice President

Tim Kyndesen
Assistant Vice President

13th & M Sts., Box 81008,
Lincoln, NE 68501
Phone: (800) 742-7462

Gary L. Parker
Vice President

Gary L. Bieck
Vice President/Manager

Steve Anderson
Vice President

John D. Clements
Vice President

Marv Hefti
Vice President

Kathryn Barker
Agricultural and Financial Officer

John Wear
Assistant Vice President

David Luckey
Agricultural Inspector

Daniel Black
Ag & Financial Representative

FirsTier Bank, N.A., Omaha and FirsTer Bank, N.A., Lincoln, Members FDIC
Federal Reserve Bank of St. Louis


Important Changes Are
Made at First of Chicago
William E. Moeller, 44, has been
named executive vice president/
partner and head of the North Amer­
ican Banking Group of the Global
Corporate Bank for The First Na­
tional Bank of Chicago. He has re­
sponsibility for the Midwest, New
York and National Banking Depart­
ments and for the Middle Market
Banking and U.S. Financial Institu­
tions Divisions. Prior to this, he was
the head of the midwest banking
Before joining First Chicago in

November, 1981, Mr. Moeller was a
vice president and area manager of
Citicorp (USA), Inc., having started
his career with that bank in 1965.
His last Citibank post was in charge
of corporate business in Illinois,
Wisconsin, Michigan and Indiana
areas, as well as supervising Citi­
bank International, an Edge Act
Bank in Chicago. He received his
BA from Yale in 1964 and his MBA
in finance and accounting from The
Amos Tuck School of Business Ad­
ministration at Dartmouth in 1966.
James K. Suhr, 56, senior vice
president, and Thomas M. King, 58,
vice president, have elected to take

Douglas Austin & Associates knows that community bankers
are special with special problems. We've served hundreds
nationwide as financial consultants. Call us for help with Mer­
gers and Acquisitions, Bank Sales, Stock Valuation, Strategic
Planning, Bank Feasibility Studies or any problem or

(312) 577-4570
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swimming pool and sun deck.

Banker, July, 1986
Federal Reserve Bank of St. Louis


John Castillo, 31 2-93 9-2 800

Chicago Illinois 606 05
Across from Chicago Hilton & Towers





early retirement. Mr. Suhr was head
of the U.S. Financial Institutions
and National Groups. Mr. King was
head of the Community Banking In­
stitutions Division in the U.S. Fi­
nancial Institutions Division.
Succeeding Mr. Suhr, effective
May 1, was James N. Meehan, 40,
vice president and head of the U.S.
Financial Institutions Division. Re­
placing Mr. King, effective July 1,
was John M. Clark, 56, vice presi­
dent, as head of the Community
Banking Institutions Division.
Mr. Suhr joined First Chicago in
1953 and subsequently held respon­
sible positions at Chicago headquar­
ters as well as in Eastern Europe of­
fices, before being named a senior
vice president in the U.S. Banking
Department in 1977. He received his
B.A. degree from Colorado College
in 1960 and attended Northwest­
ern’s Graduate School of Business.
After his graduation from the
University of Notre Dame in 1949,
Mr. King served 10 years as an ac­
count executive in the bank division <||
of The National Cash Register Com­
pany. After achieving an outstand­
ing sales record at NCR, he joined
LaSalle National Bank of Chicago
and served as an assistant vice n
president in the correspondent bank
department for eight years.
Mr. King joined The First Na­
tional Bank of Chicago in 1967 and
served four years as head of the 0
public funds division of the bank. He
then served the past 15 years with
The First in various managerial
capacities of correspondent bank­
ing, most recently as head of the #

Community Banking Institutions
9 Division. In this latter capacity he
had become well-known to hundreds
of bankers, especially in recent years
for the Strategic Planning Seminars
conceived and executed by his divi0 sion for community banks (July
1985 N orthw estern B a n k e r ).
Mr. Meehan is a graduate of Mar­
quette University and holds a MBA
from Loyola University. He left
# Walston and Company, an invest­
ment firm, to join First Chicago in
1973. Prior to this latest promotion,
Mr. Meehan was head of the Finance
and Insurance Companies Division
# of the Corporate Banking Depart­
Mr. Clark has been with First
Chicago nearly 31 years. From 198085 he served as a team leader in the
# Midwest Financial Institutions Di­
vision, serving regional banks in
Wisconsin, Iowa, Minnesota, Mis­
souri, Kansas and Nebraska. HSince
1985 he has been a team leader for
® Midwest Thrift Institutions.
Daktronics Introduces
0 Galaxy TM LED Displays








Daktronics, Inc. of Brookings,
S.D., has introduced Galaxy TM
LED computer-controlled, message/
animation displays - a dynamic new
way to communicate indoors.
Galaxy TM displays are available
in hundreds of different matrix con­
figurations, from 16 to 128 points
high, and 64 to 512 points wide.
Daktronics Venus 4100 TM and
Venus 5000 TM controllers are cap­
able of operating Galaxy TM dis­
plays. Features include automatic
scheduling, special display effects,
network capability, and fast and
easy editing of word messages and
Several large matrix Galaxy TM
displays were recently shipped for
installation at the Washington D.C.
Convention Center.
Andrew Craig to Become
Boatmen’s Bancshares CEO
Boatmen’s Bancshares, Inc., St.
Louis, announced that Donald N.
Brandin, chairman of the board and
chief executive officer, had agreed to
continue as chairman of the board
through 1988 but would relinquish
the position of chief executive officer
to Andrew B. Craig, III, president,
at the end of 1987.
Federal Reserve Bank of St. Louis



9910 N. 48th St., Suite 201
Omaha, Nebraska 68152
(402) 451-8440
Toll Free—1-800-255-2255 ext. 8440

Northwestern Banker, July, 1986

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


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

Marquette Bank
Minneapolis M
Correspondent Services Division
Federal Reserve Bank of St. Louis


Risk Protection Mechanisms

The Case of the
Defendant Director:
Part IV
Written especially for
Partners, Davis Hockenberg Wine Brown & Koehn
Des Moines, Iowa
T he N orthwestern B a n k er

HE first and third articles in this series of five arti­
cles introduced the expanding trend toward direc­
tor and officer liability and summarized the legal


sources which may provide a basis for imposing such
liability. The second article summarized the legal de­
fenses available and provided guidelines intended to
reduce the exposure to such liability. This fourth arti­
cle discusses the risk protection mechanisms currently
employed to provide financial protection for today’s
bank director and bank officer.

ISK protection mechanisms available to the direc­
tor or officer include: (1 ) prevention; (2) indemnifi­
cation; and (3) insurance.




Risk Protection Mechanisms
(1) Prevention. One of the most effective means of
limiting liability is to prevent the liability from occur­
ring. General guidelines and other methods of avoiding
or at least reducing exposure to such liability are discussed in the first three articles of this series. This
fourth article discusses the risk protection mecha­
nisms which are applicable when the preventive mea­
sures have failed to prevent a claim from being made.
(2) Indemnification. Indemnification provides a
mechanism by which the bank may reimburse the offi­
cer or director for certain liabilities and related ex­
penses incurred. Indemnification may be obtained
under: (a) common law; (b) statutes; (c) corporate documents; or (d) contract.
Federal Reserve Bank of St. Louis

Measures to Obtain Indemnification
2.1. Common law. There are a few early cases which
support the establishment of a common law right of a
director to indemnification from the corporation. In­
deed, some state statutes which provide statutory in­
demnification specifically refer to and incorporate by
reference any common law indemnification rights
which existed prior to the effective date of the statute.
Obviously, the availability of indemnification under
the common law is not within the control of a director;
it either exists or not. Therefore, when looking to in­
demnification as a financial protection to the director,
a director should not count on the availability of com­
mon law indemnification. Rather, the statutory indem­
nification provisions or contractual indemnification
provisions should be analyzed when any indemnifica­
tion planning is undertaken. Common law indemnifica­
tion rights, if they exist, should only be applied as a
last resort when the situation requiring such indemni­
fication has already arisen.
2.2 Statutory. Nearly all states provide for statutory
indemnification of directors and officers. These general
indemnification provisions typically apply to all corpo­
rations, including bank corporations. Many states fol­
low the Model Business Corporation Act (“Model
Act”) provisions. Therefore, the 1980 version of Model
Act provisions will be highlighted in this article.
Two Categories
Statutory indemnification provisions fall into two
categories: (i) those statutes that merely grant the
power to the corporation to indemnify (permissive sta­
tutes); and (ii) those statutes that impose a duty on the
corporation to indemnify (mandatory statutes). Some
Northwestern Banker, July, 1986

statutory provisions provide a mix of those permissive
or mandatory formats.
In addition to the distinction between permissive in­
demnification and mandatory indemnification, many
statutes also expressly provide whether such indem­
nification is exclusive or non-exclusive. If the statu­
tory indemnification is exclusive, the director will not
be able to expand the scope and coverage of the statu­
tory indemnity. If, however, the statute is silent or ex­
pressly provides that it is non-exclusive, the director
may wish to consider expanding the scope and cover­
age of the indemnity through contractual means. Even
such non-exclusive statutes, however, typically pro­
vide that any additional indemnity must be consistent
with the statutory provisions.
The comments to the Model Act state that it is not
intended to be an exclusive type statute. However, the
Model Act requires that any indemnification provi­
sions which are adopted be consistent with the Model
Act. For example, commentators have expressed the
view that a charter, bylaw, or contractual agreement
which alters the permissive indemnification proce­
dures in such a way that they become mandatory may
be consistent with the Model Act.
Review the Limitations
Indemnification statutes vary from state to state.
Even statutes based on the Model Act may contain
some variances. Therefore, it is incumbent upon the di-

ly provide indemnification for legal costs and other ex­
penses incurred in successfully defending a claim. Does
the indemnity apply only to litigated cases? Such re­
stricted coverage may not apply to settlements. Some
indemnification statutes segregate the coverage based
on the standard determined to have been breached.
Under the Model Act, a director is indemnified
against reasonable expenses incurred by the director in
connection with the proceeding where the director has
been wholly successful on the merits or otherwise. Ad­
ditionally, a director may be indemnified by the corpo­
ration if that director acted in good faith and reason­
ably believed that the conduct was in the best interest
of the corporation. Even if the corporation does not in­
demnify under this permissive standard, a court of ap­
propriate jurisdiction may order indemnification and,
in those cases where good faith and best interest are
not satisfied, the court may still allow indemnification
in view of all of the relevant circumstances. However,
any director that has been adjudged liable in any pro­
ceeding charging improper personal benefit may only
be indemnified for expenses (which includes attorneys’
fees) by court order. Without this court order a director
is not entitled to any indemnification when personal
benefit is involved.
(c) What costs are indemnified. As mentioned above,
some indemnification is provided only if liability is
determined by a court. If the claim is settled before lia-

“It is incumbent upon the director to review the specific
indemnification provisions for his particular state law.”
rector to review the specific indemnification provisions
of his particular state law. The director should take
particular note of the limitations to indemnification.
Any statutory indemnification should be reviewed
with the following factors in mind:
(a) Who is indemnified. It is important to determine
who is intended to be provided the benefits of statu­
tory indemnification. If the indemnity is provided only
to directors, an inside director may wish to carefully
document actions taken in his capacity as a director, to
distinguish actions taken as an officer. Also, is it clear
that the indemnity continues even after the director
resigns (for actions taken during his term), or does it
apply only to existing directors?
The Model Act extends coverage to any person who
is or was a director or officer of the corporation,
although indemnification for directors is more re­
stricted than that permitted for officers. However, for
those individuals who are both officers and directors of
the corporation, the Model Act provides that indemni­
fication may only be given to the extent allowed as a
director and not to the more permissive indemnifica­
tion standards available to officers.
(b) What acts are indemnified. Most indemnification
statutes make a distinction between actions by or on
behalf of the bank, and actions involving third parties.
Indemnification for liability incurred as a result of an
action by a bank or its shareholders (derivative ac­
tions) is less likely to be provided. Does the indemnifi­
cation depend on whether the director is successful in
defending the suit? Some indemnification statutes onNorthwestern Banker, July, 1986
Federal Reserve Bank of St. Louis

bility has been determined, the indemnification rights
may not apply. Also, it may not be clear whether all ac­
counting, legal and other associated costs and ex­
penses may be included within the indemnity, or
whether punitive damages, fines or penalties are in­
Costs that may be legally indemnified under the ap­
plicable statutory provisions may be limited by other
relevant state or federal statutes. For example, the
Comptroller of the Currency has provided that, as to
national bank directors or officers, a national bank
may, through its articles, adopt provisions of indemni­
fication which substantially reflect the general stan­
dards of law of (i) the state in which the bank is head­
quartered, (ii) the state in which the bank’s holding
company is incorporated, or (iii) the relevant provi­
sions of the Model Act. Such provisions are presumed
by the office of the Comptroller to be within the gen­
eral corporate powers of a national bank. The Model
Act permits indemnification in the corporation’s arti­
cles that are broader than those specified in the Model
Act so long as such broader indemnification provisions
are not inconsistent with those specified in the Model
Act. However, the Comptroller has provided that no
such indemnification will be permitted to the extent
that it provides for indemnification in any administra­
tive proceeding or action instituted by an appropriate
bank regulatory agency, which proceeding or action
results in a final order assessing civil money penalties
or requiring affirmative action in the form of payments
to the bank. The Comptroller also has the authority to

review any indemnification provisions, and may re_ quire the bank to modify any such provisions to the ex® tent that the Comptroller determines such provisions
provide a threat to bank safety and soundness.
(d) What special conditions precedent must be fol­
lowed before indemnity may be claimed. Some
^ indemnification statutes impose a complex procedural
^ format which must be satisfied if the right to indemni­
fication is to be obtained. Common provisions include
special notice requirements to the bank and/or its
shareholders of the claims, time limitations for providq ing such notices, and formal methods for determining
the extent of liability and the standard of care
The Model Act states that no indemnification shall
be made unless authorized by one of several determina^ tion procedures. These procedures include: (i) by vote
of the board of directors (provided that quorum voting
requirements contained in the Model Act are followed);
(ii) by special legal counsel; or (iii) by the shareholders.
In addition, any indemnification arising out of a deri0 vative action must be reported in writing to the share­
holders with or before the notice of the next sharehold­
ers’ meeting.
Director Should Address Gaps
It is incumbent upon a director or familiarize him• self with the local statutory indemnification provisions
in order to insure that the benefits available from such
indemnification will be realized. Further, to the extent
that the indemnification is not complete or is unclear,
the director may wish to consider addressing any such
D potential gaps in indemnification in the corporate
documents or by other contractual means.
2.3 Corporate Documents. The indemnity provision
should be reflected in the articles and bylaws of the
bank. The business reasons which require the indemni® ty should be documented to provide a basis for sup­
porting a determination that the existence of the in­
demnity is within the corporate power of the bank. The
extent which indemnity may be provided in the articles
and bylaws is dependent upon the type of statute
® -either exclusive or non-exclusive - which is applicable
to that particular bank. In the event that the indemni­
fication statute is non-exclusive, the bank may, by arti­
cle and bylaw, provide for a much broader indemnifica­
tion than that provided by statute, so long as it is not
® inconsistent with the statute. By including the indem­
nity in all primary source documents of the bank, the
director will obtain the benefit of having shareholder
The Model Act provides that no provision in corpo* rate articles or bylaws to indemnify or to advance ex­
penses to a director shall be valid unless consistent
with the Model Act. In the case of national banks, it
appears that indemnification is allowed only when pro^ vided for in the articles of association.
2.4 Contractual. By requesting a separate agree­
ment, the director will obtain the benefit of having an

independent contractual basis to support the indem­
nity, in a form which is not subject to unilateral
amendment by the shareholders. The contractual in­
demnity should be blended with the statutory indemni­
fication provisions, to make sure that they are consis­
tent and that there are no gaps between the two. As
noted earlier, the contractual indemnification may pro­
vide th at permissive statutory indemnification
becomes mandatory. Both the corporate document and
contractual indemnification agreements may provide
in advance the procedure by which indemnification
agreements may provide in advance the procedure by
which indemnification may be determined, following
any of the authorized procedures outlined in the par­
ticular indemnification statute. The contract should
specify who is covered, and the type of costs, penalties,
fines, punative damages, expenses, losses, damages,
and other items intended to be covered. Also, it should
be clear whether the indemnity is intended to provide
advance payment, or if it is intended to operate only as
a reimbursement of such costs after liability has been
imposed and such costs actually incurred by the direc­
tor or officer.
Third Party Source
Since the indemnification comes from the bank, and
is merely an agreement to reimburse (or to provide ad­
vance payment for) costs and liabilities incurred, the
bank’s ability to indemnify is subject to the general
creditor risks of the bank. Therefore, if the bank is not
financially capable of fulfilling the indemnity, the pro­
tection intended to be provided may be nullified, or at
least significantly reduced. Because the need for
indemnification typically arises under circumstances
where the bank is not in the best financial position, the
effectiveness of an indemnity right may be subject to
doubt. Therefore, the director or officer may wish to
look to a third party source for providing such pay­
ment or reimbursement. Such third party payer is
typically provided for in the form of company reim­
bursement insurance and director and officer liability
insurance. The director may also wish to consider the
feasibility of securing the indemnity by letter of credit,
establishing a self-funded trust, or other financial pro­
tection mechanism intended to promote payment of
the indemnity.
Insurance: Third Risk Protective Mechanism
(3) Insurance. Due to the limited effectiveness of in­
demnification, many banks provide company reim­
bursement insurance and/or director and officer liabili­
ty insurance coverage to encourage participation by
competent and capable directors. Today’s financial
crises, however, have reduced the availability and in­
creased the cost of such insurance coverage. As a re­
sult, many banks are simply not able to continue pro­
viding such insurance coverage. Another response has
been the formation of captive insurance companies by
groups of such insureds, to self-fund such insurance
protection. Even if such coverage is provided, how-

• “...the director may wish to consider addressing any such
potential gaps in indemnification in the corporate documents
or by other contractual means.”
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986


“The prudent person will undertake the responsibility of
serving as a director or officer only after carefully analyzing
the extent (and limitations) of available protections.”
ever, it is important that the director realize that such
insurance protection is never absolute. The policy
should be reviewed carefully by the director and legal
counsel to determine the extent and limitations on
As a threshold question, the director should satisfy
himself that the corporation has the authority to ac­
quire company reimbursement insurance and/or direc­
tor and officer liability insurance. Most state statutes
expressly provide for such authority. If it is unclear
whether the corporation has the authority to obtain
such insurance coverage, the cautious director may
wish to make specific provision in the articles and by­
laws which permit such acquisition, in order to obtain
shareholder approval.
Insurance Coverage Divided
The typical insurance coverage is divided into two
categories. The first category, commonly referred to as
“company reimbursement insurance,” provides for re­
imbursement to the corporation to the extent that the
corporation has properly made any indemnification or
other payments to a director or officer. The second
category, commonly referred to as “director and officer
liability insurance,” provides coverage to a director or
officer to the extent that the corporation does not (or
cannot) provide indemnification. It is noteworthy that
under neither category is a corporation allowed to re­
cover for any acts for which the corporation itself is
found to be liable. Therefore, if a claim is against both
the bank and its directors or officers, it is important
that the director or officer provide for a clear and
reasonable split of costs and liabilities associated with
the claim, so that all costs and liabilities attributable
to the action against the director or officer may be pro­
perly provided for under the insurance coverage. It is
also important to note that the director/officer is gen­
erally given wide latitude in designating legal counsel
under the director and officer liability insurance policy.
Consider General Issues
In connection with a review of the director and of­
ficer liability insurance policy, the director should con­
sider the following general issues:
(a) Who is insured. It is important to determine who
is insured under the policy. Policies generally cover the
entire history of officers and directors.
(b) What acts are insured. Most policies provide that
coverage is limited to those “wrongful acts” specified
in the policy. A standard exclusion in most policies is
to exclude coverage for any criminal or intentional
acts. Similarly, the type of wrongful act which is per­
mitted coverage may be limited to those acts under­
taken in the insured’s capacity as a director and may
exclude any actions taken within the scope of his re­
sponsibilities as an officer or other agent for the bank.
Therefore, it may be important to formally document
Northwestern Banker, July, 1986
Federal Reserve Bank of St. Louis

any actions taken by a director and to clarify whether
they are taken in such individual’s capacity as a direc­
tor or otherwise. For example, if a director takes an ac- £
tion he may wish to formally document such action in
the board of directors minutes by making specific ref­
erence to the action and that it is undertaken in his
capacity as a director rather than as an officer, attor­
ney, shareholder or other agent of the bank.
(c) What costs are insured. The types of losses cov­
ered should be reviewed. Does coverage include reim­
bursement or payment for all damages, judgments,
punative awards, fines, penalties, settlements, attor­
neys fees, accountants fees and other costs associated
with the investigation or defense against the covered
claim, or are only specified and limited items covered?
Are there any limits (maximum dollar amounts) on
coverage? Such policies almost universally exclude
coverage of fines or penalties, and also usually provide #
for a maximum dollar limit on coverage, typically
ranging from one million to five million dollars. Many
policies add deductible provisions that require the di­
rector to pay the first dollars of liability. Exclusions
may also be provided for claims covered under other #
policies, personal injury claims, pollution claims,
ERISA claims, nuclear energy liability claims, claims
involving dishonesty or fraud, personal profit or dam­
age, insider’s short-swing profits, illegal remuneration,
libel or slander, or damages that would have been cov- •
ered if reasonable and customary insurance protection
had been obtained by the bank. Exclusions may also be
provided for claims made by the bank, or for claims by
any regulatory agency, such as the FDIC.
(d) What special conditions precedent must be fol- •
lowed before insurance may be claimed. Most such
policies contain mandatory procedural and notice pro­
visions which, if not followed, may void coverage. It is
important that such requirements and limitations be
understood so that whatever limited protection is ®
available is not lost. Many policies provide that notice
be sent to the insurer whenever a claim has been made
against the director, notice has been received by the
director of a third-party’s intent to hold the director
liable, or the director is aware of any occurrence which ®
may subsequently give rise to a claim.
Because of the dramatic increase in director liability
cases, there is an increased concern and awareness of
the types of risk protection mechanisms available. The
prudent person will undertake the responsibility of ®
serving as a director or officer only after carefully
analyzing the extent (and limitations) of available pro­
tections. If a committed use of preventive measures
does not prevent the claim from being made, the financial risks associated with such potential liability may ®
at least be minimized by careful planning and use of in­
demnity and insurance protections.
Next month: Claims Made By the FDIC Against
Directors and Officers.


Revisiting Data Processing Alternatives
McGladrey Hendrickson & Pullen


HERE are two basic automation alternatives avail­
able in today’s banking environment: service cen­
ters and in-house computer systems. However, there
are several variations of each alternative that can in­
clude distributed processing, microcomputers and re­
mote item capture equipment. There are several impor­
tant quantifiable and non-quantifiable factors that
should be thoroughly investigated before a bank
selects a system.

Quantifiable Factors
When analyzing automation alternatives it is impor­
tant to identify all the relevant costs throughout the
life cycle of the system. The length of the system life
cycle will vary depending on the particular circum­
stances; however, it is common to assume that a sys­
tem will be obsolete after five years. One time costs
and annual operating costs should be determined.
The analysis should include only the relevant costs


Annual Operating

Main computer
MICR equipment
Teller terminals
Power installation transformers



Support Equipment:
Tape cleaner
Tape rack
Envelope stuffers
Noise silencers for printers



Office Equipment:
Data media cabinets
Outlet strips
Anti-static flooring


Cost Description

Telephone line installation
Line costs
Operating system
Application software
Custom modifications
MICR software
Teller terminal software
ATM software
ACH software
Microcomputer software
Federal Reserve Bank of St. Louis





Cost Description


Disks, tapes and diskettes
Stock paper
Special forms
Printer ribbons
Printer bands
Output binders
Office supplies
Site Preparation:
General construction
Fire detection and prevention
Computer room security
Terminal cable installation
Telephone installation
Office furnishings
Air conditioning equipment
Humidity control equipment
Transition costs:
Taxes and benefits
Microfiche processing
Sales tax
Consulting fees

Annual Operating

Northwestern Banker, July, 1986

that have an impact on the decision. For example, the
cost of existing equipment that was purchased in the
past is a sunk cost and may not be relevant when an­
alyzing the cost of a new system. Another example
could be the cost associated with space requirements
of a system. These costs are probably irrelevant if the
bank has excess space capacity that could not be
rented or used for another purpose. The Exhibit con­
tains a list of typical one-time costs and annual op­
erating costs that should be quantified when compar­
ing various automation alternatives.
Hardware costs have decreased significantly during
the last five years, while speeds and capacities have in­
creased. However, hardware acquisition may represent
less than 30% of the total five year cost of an in-house
computer system.
Many service centers are reevaluating their pricing
strategy as a result of competition from in-house com­
puter vendors. In the past, most service centers based
their pricing strategy on a per unit account and tran­
saction basis. Therefore a bank’s cost could increase
when it experienced growth in the volume of accounts
and transactions. However, presently certain service
centers are providing long-term (3-5 years) fixed price
contracts tht are not related to volume. In these situa­
tions, the service center is assuming the risk of volume
increases. This risk is possibly quite low for many

Non-Quantifiable Factors
1 . Software flexibility is important for either a ser­
vice center or in-house computer system. The sys­
tem design should be modular to facilitate adding
new applications. In addition, the software should
be parameter driven to allow non-technical users to
change processing routines and procedures
without modifying the program (e.g. interest com­
putations, service charge routines, etc.)
2. Integrated software is also an important consider­
ation for either alternative because it allows a bank
to better streamline its overall operations. Duplica­
tion of effort in data entry and computer process­
ing should be minimized. It can be of particular
benefit in the CIF and general ledger applications.
3. File transfer capability between a main computer
system and a microcomputer can provide end users
with a powerful capability. Many service centers
and in-house systems provide this capability.
4. Both in-house systems and service centers should
have good documentation that is easy to use and
up-to-date. Outdated documentation is a common
problem when systems are modified.
5. Many service centers and in-house systems pro­
vide a report writer software package to allow a
non-technical user to develop special reports. How­
ever, as a word of caution, all report writers are not
created equal. It is important to consider a report
writer that can access multiple files across several
6. It is not necessarily a requirement that all the ap­
plications be acquired from a single source. Micro­
computers and distributed processing techniques
provide several options and alternatives with both
service centers and in-house computers.
Banker, July, 1986
Federal Reserve Bank of St. Louis

“In 10 years, data processing#
has progressed through five
generations of computer
hardware, and indications are®
that changes will accelerate
as technology advances.”
7. Equipment and software obsolescence is a continu­
ing concern. In 10 years, data processing has pro­
gressed through five generations of computer
hardware, and indications are that changes will ac-ffr
celerate as technology advances. Software ad­
vances have included a cast of thousands. A ttract­
ing, retaining and managing a qualified EDP tech­
nical staff is a common problem with computer
systems, and is more acute in non-urban areas.
8. EDP internal controls are a vital consideration in a
decision. The Comptroller of the Currency and
other regulatory agencies are extremely concerned
about EDP internal controls especially in banks
with in-house systems. Important areas of concern ®
• Physical security
• Access controls
• Backup
• Disaster/recovery planning
• Segregation of duties
• Program change controls
• Off-site storage
• Data editing and validation routines
• File maintenance controls
• Balancing controls
• Data input, processing and output controls
• Adequate documentation
• Data communications controls
• System development and maintenance controls
• Hardware controls
9. Software support is as important as hardware
maintenance. The bank should consider the capa­
bilities of the service center and the software ven- 0
dor to provide continuing regulatory changes and
other enhancements on a timely basis. Banks
should be careful when modifying a standard pack­
age, because it could result in an unsupported
system. A prerequirement to software modifica- •
tion is the availability of source code; however,
many vendors do not provide source code.
10. The changing EFT and telecommunications tech­
nology requires special analysis, because of the *
severe systems impact. It is important to consider
the interface to ATM and POS networks, as well as
the processing for microfiche, ACH, and on-line
teller terminals.
In summary, it is important that bank management q
thoroughly analyze both the quantifiable and nonquantifiable aspects of each data processing alterna­
tive. This approach should result in a system selection
that satisfied both short-term and long-range objec­

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

National Conventions & Schools

July 14-18—KBA, NBA and Iowa Trust
Assoc. School of Trust and Financial
Planning, Holiday Inn, Manhattan, Kan.
Aug. 10-15—Central States Conference of
Bankers Associations and the University
of Wisconsin - Post Graduate Program/
Banking Executive Program, University of
Wisconsin, Madison, Wis.
Aug. 10-23—Central States Conference of
Bankers Associations and the University
of Wisconsin-Madison Graduate School
of Banking/Banking School, University of
Wisconsin, Madison, Wis.
Sept. 7-10—ABA National Bank Card Con­
ference, Loew’s Anatole, Dallas, Tex.
Sept. 14-17—NABW National Convention,
Ceasars Palace, Las Vegas, Nevada.
Sept. 21-24—ABA National Conference on
Human Resources, Fairmont Hotel, San
Francisco, Calif.
Sept. 21-24—BMA Annual Convention,
Washington Hilton, Washington, D.C.
Sept. 21-26—KBA, NBA Professional Devel­
opment Program Intermediate School of
Banking, Holiday Inn, Manhattan, Kan.
Sept. 22-26—BAI Basic Bank Auditing Con­
ference, Minneapolis, Minn.
Sept. 23—The College for Financial Plan­
ning, Financial Planning Practice Semi­
nar, Part II, Atlanta, Ga.
Sept. 28-Oct. 1—RMA Annual Fall Confer­
ence, Shamrock Hilton, Houston, Tex.
Oct 7-10—BAI Contemporary Issues in
Cash Management Conference, Wash­
ington, D.C.
Oct. 14-17—RMA Conference on Securities
Lending, Boca Raton Hotel and Club, Fla.
Oct. 19-22—BAI Asset Liability Manage­
ment Conference, Dallas, Tex.
Oct. 24-29—ABA Annual Convention, San
Francisco, Calif.
Nov 16-19—BAI ATM9 Electronic Delivery
Systems Conference, Los Angeles, Cal.
Nov. 16-19—BMA Trust & Personal Finan­
cial Services Marketing Conference, New
Orleans Sheraton.
Nov. 16-19—ABA National Ag Bankers Con­
ference, Opryland Hotel, Nashville.
Nov. 16-19—BAI ATM 9, The Electronic
Delivery Systems Conference, Los
Angeles, Calif.
Nov. 17-21 —BMA Southwestern Essentials
of Bank Marketing School, University of
Houston, Houston, Tex.
Dec. 9-12—BAI Money Transfer/Corporate
Operations Conference, New York, N.Y.

State Conventions & Schools

Aug. 3-10—Graduate School of Banking, Uni­
versity of Colorado, Boulder.
Federal Reserve Bank of St. Louis


Oct. 6-7—Asset/Liability Mgmt Seminar, Den­

July 20-25—IBA Consumer Lending School,
Bradley University, Peoria.
July 27-Aug. 1—IBA Commercial Lending
School, Bardley University, Peoria.
Aug. 10-15—IBA Bank Compliance School,
DePaul University, Chicago.
Aug. 17-22—IBA Internal Auditing School,
DePaul University, Chicago.
Sept. 16-17—IBAA Commodity Marketing
Seminar, Chicago.

July 22—IBA Bank Directors Seminar, Buena
Vista, Storm Lake.
July 23—IBA Bank Directors Seminar, Air­
port Hilton, Des Moines.
July 24—IBA Bank Directors Seminar, Holi­
day Inn, Cedar Rapids.
July 24-26—MB Annual Meeting & Conven­
tion, The New Inn, Okoboji.
Aug. 6-8—IBA Financial Statement Analysis,
Airport Hilton, Des Moines.
Aug. 30— IBA Loan Documentation, Marriott,
Des Moines.
Sept. 14-16—IBA 100th Annual Convention,
Convention Center, Des Moines.

July 20-25—MBA Midwest Banking Insti­
tute, University of Minnesota, Morris.
Aug. 10-15—MBA Commercial Lending
School, St. Olaf College, Northfield.

July 14-18—Schools of Banking School of
Trust and Financial Planning, Holiday Inn,
Manhattan, Kan.
North Dakota:

Aug. 19—NDBA Loan Documentation Work­
shop, Kirkwood Motor Inn, Bismarck.
Sept. 15—NDBA Northeast Group Meeting,
Veterans Club, Grafton.
Sept. 16—NDBA Northwest Group Meeting,
Turtle Mountain Lodge.
Sept. 17—NDBA Southwest Group Meeting,
Golden West, New Salem.
Sept. 18—NDBA Southeast Group Meeting,
Eagles Club, Valley City.
South Dakota:

Sept. 15—SDBA Group II Meeting, Sheraton
Inn, Aberdeen.
Sept. 16—SDBA Group IV Meeting, Wrang­
ler Motor Inn, Mobridge.
Sept. 17—SDBA Group V Meeting, Rapid
Sept. 18—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 19—SDBA Group I Meeting, Holiday
Inn City Centre, Sioux Falls.

July 14-15—IBAA Internal Auditing I Semi­
nar, Madison.
Aug. 3-9—WBA Consumer Credit School,
St. Norbert College, De Pere.
Aug. 10-15—WBA Basic Banking School,
St. Norbert College, De Pere.
Aug. 10-23—Graduate School of Banking,
University of Wisconsin, Madison.

Evergreen Announces New
System, New Sales Manager
Evergreen System s, Inc. of
Omaha has announced a new soft­
ware system for financial institu­
tions using the IBM/36 family of
business computers. At the same
time, Evergreen announced appoint­
ment of Ken Meredith as sales
manager for the organization.
Mr. Meredith has spent the past
five years with Financial Systems,
Inc. of Kearney, Nebr., as national
sales manager. Prior to joining FSI
he was employed by a commercial
bank for a number of years.
The System/36, which served the
smallest institutions up to those
with $500 million in assets, can
utilize Evergreen’s new integrated
software system to support a single
institution with multiple branches,
or a multi-bank holding group with
common ownership.
Evergreen software packages
cover demand deposit accounting,
check clearing, proof of deposit, sav­
ings, time CDs, commercial, mort­
gage and installment loans, retire­
ment management accounting, safe
deposit box accounting, and general
ledger. Programs may be purchased
individually or as a complete finan­
cial management system.
The retirement management ac­
counting system also is available as
a stand-alone package for the IBM
Personal Computer and includes
capabilities for producing IRAs,
Keoghs, 401-Ks and self-directed
Evergreen’s software has been in
development for the past three years
and offers many features not found
in system s designed prior to
deregulation. All of the software
packages are integrated with a
customer information file to allow
access to all of a client’s relation­
ship. An institution can have access
to any information stored in the
system through an on-line reports
generator. Examples would include
customized reports, m arketing
demographics and asset and liability
Documentation for the system is
provided through the use of a help
key, allowing immediate inquiries to
questions concerning the operation
of the system.
Mr. Meredith said Evergreen will
announce a seminar schedule later in
the summer to introduce financial
executives to this newest financial
information processing concept.
Northwestern Banker, July, 1986


David Kemper Named CEO
of Commerce Bancshares, Inc.
The Commerce Bancshares board
of directors has named David W.
Kemper chief ex­
ecutive officer,
in addition to his
present title of
president of the
K a n sa s C itybased company.
Ja m e s
Kemper, Jr., for­
merly chief exec­
utive officer, will
c o n tin u e
chairman and will remain active in
the company’s general management.
Commenting on the announce­
ment, David Kemper said, “The
change in the CEO designation is a
natural step in our management suc­
cession plan announced at the an­
nual shareholders meeting in April
of this year. My father will continue
to be very much involved in the
overall direction and expansion of
Commerce Bancshares.”
David Kemper joined the Com­
merce organization in 1978 as vice
president of the Kansas City bank.
He was elected president and chief
Federal Reserve Bank of St. Louis

operating officer of Commerce Banc­
shares in 1982. He added the direct
senior responsibility for all opera­
tions in the St. Louis area in 1985 as
chairman of Commerce Bank of St.
Louis and moved to St. Louis at that
time. He will continue to reside in
St. Louis with a principal office in
the Commerce Clayton headquar­
ters building.
He is a director of Business Men’s
Assurance Company, Kansas City,
and of several Commerce Banks. He
is also active in several Missouri
civic organizations.
ABA Video-Training Tapes
Now Available For Rent
Best-selling video-training tapes
in the American Bankers Associa­
Video Systems series are now avail­
able for rent.
The ABA Community Bankers
Council has selected 35 videoclasses
covering all facets of banking for its
new rental program. Samples in­
clude: “Organizing a Sales Call”;
“ T elep h o n e C o m m u n ic atio n s
Skills”; “Tellers: Your Role in the
Bank”; “ Security Issues for the

Whole Bank”; and “Officer Calling:
Responding to Objections.”
“Thousands of financial institu­
tions have been using BANC­
TRAINING videoclasses for em­
ployee training through ABA’s an­
nual subscription program or indivi- 0
dual purchase,” said ABA Commu­
nity Bankers Council Chairman T.
Charles Bruere, president and CEO,
First State Bank, St. Charles, Mo.
“However, because ABA wants 0
every bank to experience the bene­
fits of in-bank video training, the
rental program was developed.”
A complete list of BANCTRAIN­
ING videoclasses available for rent 0
and additional information is avail­
able by calling 1-800-247-0010. (In
Iowa, call collect 1-515-282-2601.)
FDIC Chairman Predicts
160 Banks in Trouble
A record number of banks — up to
160 — will either fail or need govern- •
ment assistance by the end of the
year, the chairman of the Federal
Deposit Insurance Corp. said recent­
ly in a speech to the United States
League of Savings Institutions.
William Seidman said that be-

tween 140 and 160 banks will fall in­
to the failed or help-required cate­
gory in 1986, up from last year’s
record 120 banks.
Bank failures and assistance
transactions reached 55 by June 9,
surpassing the 43 failures and inter­
ventions that occurred during the
same period in 1985, said Mr. Seidman.
Seidman said that slightly more
than 1,300 banks are on the FDIC’s
problem bank list, compared with
1,140 at the end of last year.
IBAA Moves to New Office
The Independent Bankers Asso­
ciation of America has announced
the location of its new office. The ad­
dress is One Thomas Circle, NW,
Suite 950, Washington, D.C. 20005.
Their phone number is (202)
United Missouri Bancshares
Elects Assistant Treasurer
United Missouri Bancshares,
Inc., Kansas City, has announced
that Gary L. Lasche has been elected
assistant treasurer of the corpora­

Mr. Lasche has been with United
Missouri since 1983 and currently
serves as senior vice president and
assistant treasurer for the holding
company and senior vice president
and assistant comptroller for the
company’s lead bank, United Mis­
souri Bank of Kansas City, N.A.

BMA Announces Officers
The Bank Marketing Association
announced recently the selection of
its 1986-87 slate of officers headed
by its new president, John A. Rus­
sell, vice president and director of
marketing at Banc One Corp.,
Columbus, Ohio.
Mr. Russell, who took over his
duties July 1, served during the last
year as BMA’s first vice president.
As BMA president, the Banc One
executive succeeds Smith W. Brookhart, III, president of Centerre Bank
of Branson, Mo.
Joining Mr. Russell on the MBA
leadership team for the coming year
are Michael Sullivan, first vice presi­
dent, who is vice president of corpo­
rate communications at First Union
National Bank, Charlotte, N.C.; Ger­
ald Warren, second vice president,

who is senior vice president for pub­
lic affairs at National Bank of De­
troit, and American Bankers Asso­
ciation Treasurer Thomas P. Ride­
out, president and chief executive at
Savannah Bank & Trust Co., Savan­
nah, Ga.
Messrs. Russell, Sullivan, War­
ren, and Rideout join Mr. Brookhart, immediate past president, and
Raymond M. Cheseldine, executive
vice president, in comprising BMA’s
Executive Committee.
The BMA also announced the se­
lection of five new directors, each of
whom will serve three-year terms.
They are James M. Grant, vice president/manager of marketing ser­
vices, First National Bank of Chi­
cago; Paul L. Hefner, senior vice
president/chief of staff for the Los
Angeles division, First Interstate
Bank of California; Ruth E. Fall,
vice president/sales development
manager, California First Bank, San
Diego; Charles L. Ferguson, chair­
man and chief executive, First Colo­
rado Bank & Trust, Denver, and Ledean Bailey Hamilton, senior vice
president/director of marketing and
business development, Citizens
Bank and Trust Company, Glasgow,

Bankers w ith am bition. Those are bankers
Drovers values as correspondents. If you
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specialists in financing bank acquisitions.
As a member of the Cole-Taylor
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holding companies. And our large
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bank stock carry loans. Hungry for more? Call
Drovers toll-free at 1-800-621-8991. In Illinois,
phone 1-800-572-2498. Or simply complete
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47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000
Federal Reserve Bank of St. Louis


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Banking Officer

Jim Fassino
Vice President

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Bruce Edwards

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Banking Representative

Vice President

Commercial National Bank
of Peoria
Member Midwest Financial Group, Inc.


301 S.W. Adams
Peoria, Illinois 61631
Phone (309) 655-5225 WATS LINE 1-800-322-2212
Member FDIC

Banker, July, 1986
Federal Reserve Bank of St. Louis


THE 1986-87 Illinois Bankers Association officers are, from left: Vice Pres.—Jack A. Em­ Louis Rukeyser, host of television’s “ Wall
mons, pres, and ceo, Security Bk. & Tr. Co., Mt. Carmel; Exec. Vice Pres.—William J. Hoc- Street Week,” talked about “ What’s Ahead
ter, Chicago; Pres.—Charles E. Waterman, chmn. and ceo, South Holland Tr. & Svgs.; for the Economy.”
Sec.—Wilbur D. Meadows, pres, and ceo, Natl. Bank of Canton, and Treas — Richard K.
trom, president of The Uptown Na­
Ostrum, pres., Uptown Natl., Chicago.

Illinois Bankers Elect Waterman As Pres.
Associate Publisher

tional Bank, Chicago. William J.
Hoctor will continue as executive
vice president of the association.
During the first general session,
Louis Rukeyser, host of television’s
“Wall Street Week,” told bankers,
“The sleeping beauty of the Ameri­
can economy is still waiting for her
kiss.” In his two hour presentation,
“W hat’s Ahead for The Economy,”
Mr. Rukeyser said there are two
things that we can do to challenge
our economic condition: first, to get
inflation under control and second,
to get the country launched on eco­
nomic growth and higher standards.
Mr. Rukeyser called for economic
leadership that won’t shortchange
Americans. “We need politicians
that will keep their promises,” he
emphasized. “President Reagan is
not totally to blame for the prob­
lems in our economy. These prob­
lems have been with us for at least


management, legislative and regula­
tory developments and safety and
soundness in the banking industry.
During the convention, Charles E.
££ I UST as St. Louis was the
i J place for making the final pre­ Waterman, chairman and CEO of
parations before heading West, the South Holland Trust and Savings
Illinois Bankers Association’s 1986 Bank, was elected president of the
Annual Convention is the opportune association and begins his term offi­
place for preparing for the changes cially July 1 . He succeeds G.
in banking.” This excerpt from G. Thomas Andes, president of First
Thomas Andes’ president’s message National Bank of Belleville.
explains why over 600 bankers and
Elected to the position of vice
spouses met at the Adams Mark president was Jack A. Emmons,
Hotel in St. Louis for the IB A Con­ president and CEO of Security Bank
vention last month.
and Trust Co., Mt. Carmel. The posi­
In addition to a broad range of tion of secretary will be filled by
general session topics, the program Wilbur D. Meadows, president and
also featured several workshops on CEO, The National Bank of Canton.
mergers and acquisitions, portfolio Treasurer will be Richard K. Os-


LEFT— Enjoying themselves during the convention were, from left: William J. Hocter, exec, v.p., IBA; Donald G. Ogilvie, exec, v.p., ABA,
Washington, D.C., and C.C. Hope, dir., FDIC, Washington, D.C. RIGHT—Taking time out before the first general session were Immed. Past
Pres.—Thomas Andes, pres., First Natl., Belleville, and Pres.— Charles E. Waterman, chmn. and ceo, South Holland Tr. & Svgs.




Federal Reserve Bank of St. Louis

Northwestern Banker, July, 198S

Illin o is N e w s
the past two decades.”
In his concluding remarks, Mr.
Rukeyser predicted that our econo­
my is going into a slow down phase,
following our recent three and onehalf year broad recovery. But he
doesn’t see the recovery dying out.
He did caution the overflow crowd,
“The true danger of our economic
growth is this might send signals to
Washington to loosen up on the
fight against true inflation, thus
sending the nation into a recession.”
One of the most challenging pre-

sentations of the convention was
given by Michael Vance, a manage­
ment consultant from Cleveland,
who was once part of the Disney
organization where he “helped de­
velop creative solutions to corporate
problems.” During his session,
bankers were cautioned to stay out
of “the red zone,” the area between
unconscious competence and con­
scious competence. Mr. Vance said
this is the place where people find
themselves when they are “too ex­
cellent at what they do.”

Mr. Vance told bankers, “Spiri­
tuality is a must in the corporate #
structure,” because it establishes
foundational values to which your
employees and community respond.
He also said, “ People should have
resource rich working environments
because people tend to go to these
places and if these areas are not
available, they will go elsewhere.”
In closing, Mr. Vance presented a
new theory, called The Kitchen of
the Mind (KM), which he says wall
be “the hottest thing going.” It is a

LEFT—Present at the United Missouri Bank reception were, from left: Robert J. Heinsohn, St. Louis; Matt Grzybinsky, sr. v.p,, St. Louis;
Peter J. Genovese, vice chmn., UM Bancshares, Inc., St. Louis, and Malcom M. Aslin, pres, and ceo, UMB of Kansas City. RIGHT—Pictured
at the Davenport Bk. & Tr. breakfast were, center: Michael Bauer, v.p.; right, David Howell, corr. bkg. off., with guest, left, Lyle Campbell,

chmn., Worth Bk. & Tr., III.

LEFT— Presenting his topic, “ Adventures in Creative Thinking,” was Michael F. Vance, Cleveland, Oh. RIGHT—Taking part in a panel
discussion were, from left: Sen. Philip Rock (D-Oak Park, III.); M. Danny Wall, dir., U.S. Sen. Committee on Banking, Housing and Urban af­
fairs, Washington, D.C., and William J. Bosies, Jr., sr. fed. adm. counsel, ABA, Washington, D.C.

LEFT— Welcoming guests to the Drovers Bank of Chicago breakfast were, from left: Kathy Hardy, v.p.; Larry Nau, a.v.p.; Ruth and James
Carmody, chmn., and Lorraine and Bob Corey, exec v.p. RIGHT— Robert H. Bukowski, v.p., Douglas Austin & Associates, Inc., Arlington
Heights, III., and Douglas Austin, pres.

Banker, July, 1986
Federal Reserve Bank of St. Louis

interstate banking bill, which goes the afternoon’s general session. The
into effect July 1, 1986.
first was a state and federal legisla­
Mr. Hope called on his banking tive and regulatory discussion mo­
friends to write their local senators derated by Thomas Andes. The sec­
on banking issues, especially the ond panel discussed current issues
proposed Graham-Rudmann legisla­ in bank safety and soundness. Spe­
tion. Under such legislation, said cial luncheon guests include Donald
Mr. Hope, the FDIC would be re­ G. Ogilvie, executive vice president,
quired to cut its budget by over 4%, ABA, Washington, and Lou Holtz,
the equivalent of 500 examiners. head football coach, University of
“Now is not the time to be cutting Notre Dame, who inspired and en­
back on this crucial aspect of the tertained his banking audience with
FDIC,” concluded Mr. Hope.
his presentation “Commitment to
Two panel discussions concluded Excellence.”
Illin o is N e w s




type of learning resource center in
the home. Mr. Vance’s hypothetical
KM includes three personal compu­
ters, a VCR, a telescope, microscope,
and various musical instruments.
“These are the places where we
should spend our time,’’ he con­
The second day’s general session
began with “A View from Washing­
ton,’’ by C.C. Hope Jr., newly appointed director of the FDIC, Wash­
ington. He congratulated the Illinois
Bankers Association for passing the

Joins Skokie Bank
Paul A. Hartmann has joined the
First National Bank of Skokie as
vice president in
the commercial
loan department.
Prior to join­
ing the bank,
Mr. H artm ann
held a similar
* * *
position at the
Aetna Bank in
Jack N. Macholl has joined Colo­ Chicago. His ex­
nial Bank and Trust as assistant tensive experi­
vice president
ence includes P.A. HARTMANN
and manager of
commercial loan experience at the
the m arketing
Bank of Elk Grove, Northwest Na­
tional Bank and Merchandise Na­
Mr. Macholl
tional Bank, both in Chicago.
comes to Colo­
Elected in Aurora
nial Bank from
Continental Illinois Corporation the Federal Re­
Susan Snell Kaufman-Horwitz
has announced that William E. Gib­ serv e
B ank
has been elected to the Aurora Na­
son has joined the organization as where he served
tional Bank of directors. The ex­
an executive vice president and a in the marketing
panded board now has 15 members.
vice chairman of the asset and and c u sto m er
Ms. Kaufman-Horwitz is director
liability management committee. services department.
of planning at Aurora University.
Also, the economic research division
will report to him.
Mr. Gibson was senior vice presi­ Renovation Begins For Community Bank
dent at RepublicBank in Dallas,
He joined the Dallas bank in 1981
and previously was a senior vice
president at McGraw-Hill, Inc., a
vice president at Smith, Barney,
Harris Upham and Co., Inc. and vice
president and director for The Chase
M anhattan Bank, N.A.., in New
Continental Illinois Corporation
has also announced the appointment
of three vice presidents.
Jacques Gliksberg, who joined the
bank in 1980, will be in the corporate
and institutional banking, Midwest
department, which serves ChicagoCOMMUNITY Bank of Edgewater, Chicago has embarked upon an extensive renovation of
based multinational corporations.
its main banking facility. Plans include interior and exterior renovation and the installation
Jean Robinson joined Continental of a CASH STATION/CIRRUS ATM. Additional teller stations and expansion of the mort­
in 1980. She will be in the corporate gage servicing area are also included. The renovation should be completed by September.
and institutional products depart­
ment, counseling corporate custo­
mers interested in cash management
Erie R.L. Archer, based in Conti­
nental Illinois’ Sao Paulo represen­
tative office, is responsible for meet­
ing the credit needs of corporate cus­
tomers in Brazil. He joined the bank
in 1980.






Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986


NEW officers for the Wisconsin Bankers Association are, from left: Pres.— Rolland J. McClellan, pres., Valley Bank, Janesville; Immed.
Past Pres.— Dean A. Treptow, pres., Brown Deer Bank; Vice Pres. — Richard P. Klug, chmn., F&M Bank, Menomonee Falls, and
Treas.—Thomas L. Schiefelbein, pres., Security Natl., Durand. RIGHT— Lee Gunderson, partner, Arthur Young, Inc., New York told bankers

to look to the future “ for opportunities to build strong banks.”

Wisconsin Bankers Invade New Soil
Associate Publisher
sociation hosted its 90th Annual
Convention last month, but one
thing was missing — Milwaukee.
Since the beginning of the WBA,
Milwaukee has always been the
site of the annual convention. This
year’s convention was held in Green
Bay, and as WBA Past President
Dean Treptow said, “Wisconsin
bankers are breaking new ground by
moving the convention to Green
“This city stands on a rich and
proud history and we, as bankers,
are compelled to step across this
threshold into an environment of
new banking structure, changing
markets and expanding competi­
tion,’’ he said as he related the move
to the challenges facing the banking
industry today.
Although the convention had
many highlights, the election of offi­
cers for the 1986-87 term brought
new faces into the ranks of the
WBA. Elected president of the asso­
ciation was Rolland J. McClellan,
president of the Valley Bank, Janes­
ville. Mr. McClellan succeeds Dean
A. Treptow, president of the Brown
Deer Bank. Mr. Treptow will con­
tinue to serve on the WBA Execu­
tive Council.
Richard P. Klug, chairman of F &


Banker, July, 1986
Federal Reserve Bank of St. Louis

M Bank, Menomonee Falls was
elected vice president. Taking over
the treasurer’s position will be
Thomas L. Schiefelbein, president of
Security National, Durand. Bryan
K. Koontz will continue as executive
director of the association, which is
headquartered in Madison.
Bankers and spouses had the op­
portunity to become instant Green
Bay Packer football fans. First Wis­
consin Banks held its annual recep­
tion at the Packer Hall of Fame.
But, if football wasn’t your game,
then you could take a cruise on an
authentic paddle boat or take a tour
of Heritage Hill State Park. But if
you came for business, then the gen­
eral sessions supplied your needs.
After a warm welcome from
Mayor Sam Halloin of Green Bay,
the general session was called to
order. The first speaker was Lee
Gunderson, partner, Arthur Young,
Inc., New York, but maybe better
known for his positions as president
of the WBA in 1975 or his term as
president of the ABA in 1980. His
presentation, “Banking Opportuni­
ties in a Changing Environment,’’
instructed and informed the large
Mr. Gunderson told bankers “you
must look to the future and identify
the opportunities to build strong
banks in a challenging and changing
environment.” Since the WBA re­
cently adopted its first interstate
banking bill, act 325, Mr. Gunder­

son commented “this legislation, if
used properly, can result in stronger
competitive positioning, additional
earnings opportunities and broadened service products for your customers.”
To strengthen the fee income side
of banking revenues, Mr. Gunderson
suggested an increase in this particular area on existing and new bank
products and services. “Wisconsin
banks are below the national aver­
age on generating fee income,” he
said “and each bank should develop
a framework for determining how
realistic current fees are.”
In his conclusion, Mr. Gunderson
capsulized the entire theme and feel­
ing of the convention. He said, “The
future of banking is ripe with oppor­
tunity. Sound management prac­
tices, combined with a continuing
commitment to effectively serve the
financial needs of your customers
will assure your ability to be part of
that future.”
“Economists and financial an­
alysts have concluded, based on
their quantitative models and their
most recent experiences that the fu­
ture doesn’t work,” said Louis A.
Holland, a founding partner of the
Chicago firm under his name, who
gave a presentation on the market
and financial future of our country.
Mr. Holland said we can look for­
ward to specific structural changes
that include: 1. Demographic shifts
benefiting the consumption - investment relationship. 2. Real energy
prices have declined. 3. Productivity
is returning to its historical trend. 4.
The country is shifting politically to
the right. 5. American history is be-










W is c o n s in N e w s




. .'O:

LEFT— Newly elected WBA Pres., Rollie McClellan, and Sander Vanocur, ABC News Correspondent, visit before the general session.
RIGHT— Lou Holtz, head football coach, University of Notre Dame captured the audience’s attention with his presentation.

LEFT— First Wisconsin Natl., Milwaukee, hosted its annual reception at the Green Bay Packers Hall of Fame. Greeting guests were, from
left: Roger L. Fitzsimonds, pres., and wife Lee; John Becker, exec, v.p., and wife Bonnie, and Don Kramp, 1st v.p. and wife Phyllis. RIGHT—
General session speakers, left, Louis A. Holland, partner, Hahn, Holland & Grossman, Chicago, and Mayor Sam Halloin, Green Bay, with
Immed. Past Pres., Dean A. Treptow.

coming more competitive.
Toby Roth, 8th District, who called
In his conclusion, Mr. Holland for Congress to “set some rules of
named some important factors of the road” when it comes to banking.
the current equity and financial mar­ He encouraged bankers to key in on
kets: 1. The new Senate version of profitable diversification through
the tax bill should be bullish for real estate and financial planning.
stocks and bonds. 2. Suggested Mr. Roth stressed the importance of
lower interest rates because of soft bankers uniting on issues that di­
economy and the oil, farming and vide the industry now, because
consumer problem of debt. 3. Lower “time is running out,” he concluded.
dollar expected - still bullish. 4.
The final general session included
Energy prices should stabilize. 5. a “worldly presentation” from San­
Gold will be a relatively poor per­ der Vanocur, ABC News Correspon­
dent. His topic was “A View from
Other outstanding presentations Washington,” in which he talked
were given by U.S. Congressman about current administration and

their future.
To conclude the convention, Lou
Holtz, head football coach, Universi­
ty of Notre Dame told the packed as­
sembly “there are three rules a per­
son must obey to have a good self
image. 1. Do what is right and avoid
what is wrong. If you’re not sure,
read the Bible. 2. Do the best that
you can possibly do. 3. Treat others
as you would like to be treated.” In
applying his concept to banking,
Mr. Holtz said, “you have to over­
come adversity to be successful, and
whether you think you can or can’t,
you’re right.”

bank, most recently serving as vice
Promoted in West Allis
Three have been promoted at Cen­
In addition, Richard G. Ziebell
tral Bank in West Allis.
has been named vice president. He
Edward F. Lentz has been named started at the bank five years ago,
senior vice president and cashier. He and most recently was an assistant
has been with the bank for 17 years, vice president.
most recently serving as vice presi­
dent and cashier.
Kenneth W. de Languillette has Approved in Menomonee Falls
been promoted to first vice presi­
Richard P. Klug, chairman, presi­
dent. He is a 20-year employee of the dent and CEO of F&M Financial

Services Corporation has announced
that the Menomonee Falls corpora­
tion has made application and been
approved as a listed company on the
National Association of Securities
Dealers Automated Quotation sys­
tem. F&M’s assigned symbol is
FMFS on this over the counter mar­
Federal Reserve Bank of St. Louis

(Turn to page 36, please)
Northwestern Banker, July, 1986


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Banker, July, 1986
Federal Reserve Bank of St. Louis

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OFFICERS of the Minnesota Bankers Asso­
ciation for 1986-87: Seated. Pres.— Roy W.
Terwilliger, pres., Suburban Natl., Eden
Prairie, and Immed. Past Pres.— Clinton D.
Kurtz, pres., Citizens State, Norwood.
Standing, from left: Treas. — R. James
Gesell, pres., Cherokee State, St. Paul;
Exec. V.P.—Truman Jeffers, Minneapolis,
and 1st Vice Pres.—James R. Jorstad,

pres., Citizens State, Hayfield. Not present
was MBA’s new 2nd V.P. A. William Sands,
pres., Western State, St. Paul.

Roy Terwilliger of Eden Prairie Is
* Selected as MBA President, 1986-87
EARLY 1,000 bankers and
spouses gathered at the Radisson St. Paul Hotel June 2-4 to ex®






amine “ Strategies for Success” at
the 96th annual convention of the
Minnesota Bankers Association.
Many of them arrived early to
take part in the Men’s and Women’s
Golf Tourneys on Monday, or to at­
tend the full dozen special interest
sessions presented Monday after­
MBA President Clinton D. Kurtz,
president of Citizens State Bank,
Norwood, presided at the formal ses­
sions of the convention. Mr. Kurtz
and the 1986-87 officers are pictured
The first day was capped with the
traditional “First Night Hospitali­
ty,” hosted by the four large corres­
pondent bank groups in the Twin
Cities—American National Bank &
Trust Co., St. Paul; First Bank Minneapolis/St. Paul; Marquette Bank
Minneapolis, and Norwest Corpora­
The second day got underway at
Federal Reserve Bank of St. Louis

an early hour with the Fellowship
Breakfast starting at 8:00 a.m.
After entertainment by Jerry Rubino and Adelphoi, the program fea­
tured Dr. Sidney Rand, former presi­
dent of St. Olaf College and former
Ambassador to Norway. In his brief
address, Dr. Rand stressed the value
of meditating on three words or ex­
pressions: “We” is greater than “ I”;
“Thank you” always is better than
“give me,” and “Serving” is an im­
portant part of “leading.”
The first general session immedi­
ately followed and the first order of
business was election of officers,
noted above. The 14 resolutions
adopted reflected clearly the current
problems and trends in banking. The
first reaffirmed MBA’s “commit­
ment of service to agriculture,” and
urged “the immediate adoption of a
farm policy designed to stabilize
farm collateral values.” The second
resolution was to “urge absolute re­
peal of Minnesota’s mandatory farm
mediation law,” saying it is “costly,
confusing, complicated and timeconsuming.”
Other resolutions called for estab­
lishing a state central filing system
to avoid the problems of the elimina­

tion of the ag lien exception; urged
reform of the Bankruptcy Code;
urged closing of the non-bank bank
loophole; supported Tax Reform;
called for preservation of a decentra­
lized banking system, continuation
of SB A guaranteed loans, and the
savings bonds program.
Two special resolutions recog­
nized MBA leaders Mark Olson and
Truman Jeffers. Mr. Olson, Presi­
dent, Security State Bank, Fergus
Falls, was congratulated and sup­
ported as he looks ahead to becom­
ing president of the ABA at the con­
vention in October. The other resolu­
tion was to congratulate Truman
Jeffers and his wife, Leila, for Jeff’s
25 years of service to the MBA, the
past 16 of them as executive vice
president—the longest any one indi­
vidual has held that position of
Other recognition was accorded to
Truman and Leila Jeffers through­
out the convention. A special com­
mendation and gift was presented at
the Tuesday night banquet; Jeff was
given special recognition at the Pio­
neer Club luncheon, and Norwest
Corporation presented an engraved
silver tray to the Jeffers’ during a
breakfast Wednesday morning.
The first convention speaker was
Dr. Robert Samp, a medical school
faculty member from the University
of Wisconsin at Madison. His ad­
dresses are interspersed with plenty
of humor and homespun philosophy.
He took issue, in a pleasant way,
with many publicized fad diets, as
well as “medical journals like Read­
er's Digest and National Inquirer,"
who feature the “disease of the
month.” He took issue with “the of­
fice slob” who is the one who always
brings gloom and doom to every con­
versation, and Dr. Samp suggested
instead that “an improved attitude
can do far more for you healthwise,” while the gloom and doom
person’s “talk can hurt more than
loads of cholesterol.” Get rid of the
Northwestern Banker, July, 1986


M in n e s o ta N e w s

NORWEST BANKS hosted their annual Master’s Golf fun night as the focal point of their hospitality room. On hand to greet guests, sign
autographs and do his best to give putting advice to mostly “ weekend warriors” of the links was the very personable, affable long-time
PGA star, Lee Elder, fresh from a tournament in Japan. At left, Mr. Elder autographs his photo for Jim Campbell (left), pres., Norwest Bank
Minneapolis, while K.C. Gay, pres., Sturgeon Lake State looks on. At right, Mr. Elder gives a putting lesson to Dick Kovacevich, vice chmn.
of Norwest Corp. and c.o.o. of the banking group. Helping make Dick nervous were John Sampson (center rear), sr. v.p., Norwest Bank
Mpls. and Mr. Campbell.

“office pest,” he advised.
Dr. Samp used slides and verbal
illustrations in his fast-paced talk to
show that as people advance in age
their mental outlook can become
more positive. He urged that each
person look to “Total Well Being,”
which, he said, “has nothing to do
with firmness of buns, breasts or bi­
ceps, but about the soundness of
mind.” Dr. Sump’s delightful, men­
tal health-oriented talk made a hit
with the audience and is available to
anyone on a series of tapes from his
offices at the University of Wiscon­
The special interest sessions of
Monday were repeated Tuesday
afternoon. They covered a variety of
topics: Managing for Profitability,
Starting a Trust Department, Win­
ning Strategy, Stress Management,
Banclnsure, Deferred Compensa­
tion, D&O, Time Management, Loan
Review and Risk Rating, Customer
Profitability Through an Integrated
System, Tax Planning for Loan
Write-Offs, Laws and Regulations
Update, 401(K) Salary Savings
The second general session guest
speaker was Dr. Michael Boehlje,
head of the department of agricul­
tural and applied economics of the
College of Agriculture at the Univer­
sity of Minnesota, St. Paul. Dr.
Boehlje joined the UofM staff this
year after many years of teaching at
Iowa State University. Dr. Boehlje’s
talk was reviewed in the June 16
issue of the N orth western B anker
Weekly Newsletter.
Concluding speaker Dr. Paul Nadler, professor and economist at Rut­
Northwestern Banker, July, 1986
Federal Reserve Bank of St. Louis

gers University, East Brunswick,
N.J., said “Reagan’s luck” has been
phenomenal. Despite a huge deficit
and other problems, the ag crisis has
given the rest of the country lower
food prices, the energy crisis has
benefitted everyone else in the na­
tion, and technology changes have
been of benefit.
He said community banks will
survive in the face of increasing
competition because the local bank­
ers know their communities and give
people the service they need. “The
best news for a Minnesota bank,” he
said, “is to have Citicorp or Chase
move across the street.” He added
that a fast “No” is more appreciated
by a loan applicant than a slow
“Yes” from a faraway office. Speak­
ing of consolidations of banks, as
predicted by many savants in recent
years, Dr. Nadler stated, “Remem­
ber, there’s never been a takeover
where 51% of the stockholders
didn’t want it!”
Dr. Nadler closed with his now
famous comments on “W hat’s right
with America...Why do so many
foreigners want our money or want
to move here, if the country is so
bad? How many people burrow
under the Berlin wall—easi-bound!
When a ship arrives in Cuba, who
gets off?”
In his President’s Report, Mr.
Kurtz referred to the “achievements
and frustrations” of the past year.
He thanked several bankers who
had done yeoman work for MBA on
a continuing basis. Les Peterson,
president of Farmers State Bank,
Trimont, has chaired the Ag Task
Force, and Jim Gowan, president of

First National Bank, Chaska, chairs
a Site Task Force studying whether
MBA should continue at its present
location, expand there, or move. Mr.
Kurtz also introduced the most re­
cent addition to the MBA staff, Ray
Murray, CPA, who is MBA financial
John Ingebrand, president, Kana­
bec State Bank, Mora, gave a brief
report on the Strategic Planning
committee, of which he was chair­
man. A printed report was given to
each delegate.
Mr. Jeffers, in his report to MBA,
noted the changes in the 25 years he
has served the association. “Your
association is more complex,” he
stated, “in response to your chang­
ing needs. Our constant guideline
should be Excellence, and that
means a commitment on our part.”
He discussed several areas of bank­
ing issues—federal legislative activi­
ties, state legislation, competitive
factors. He mentioned three of the
17 items contained in the Strategic
Plan: 1. Comprehensive education at
the lowest feasible cost and at the
most convenient locations. 2. MBA
direct service to member banks to
assist them in their needs. 3. Adop­
tion of the plan and a commitment
to it. In closing, Mr. Jeffers quoted
the late Willis Alexander, who for 16
years was executive vice president
of the ABA: “Legislation is a pro­
cess, not an event.” In the same
way, Mr. Jeffers said, “Commit­
ment is a process, not an event.”
In his acceptance remarks, Mr.
Terwilliger called for banking unity
and the need for Minnesota bankers
to “provide leadership” not only at


M in n e s o ta N e w s

PICTURED at Marquette Bank Minneapolis reception were, from left: Dick Holmes, a.v.p.; Lois Broderick; Carol Holmes; Mike Broderick,
pres. South Dakota Bkrs. Assn, and pres., First American Bank, Canton; Bill Klein, v.p., Marquette, and his wife, Jane, and Carole and Bill
Addington, v.p., Marquette.


ENJOYING hospitality at First Banks reception were, from left: Mike Kelley, sr. v.p., Shelard Natl., St. Louis Park; Glenn Heltzman, pres.,
1st Natl., Cold Spring; Al Highum, v.p., First Banks; Herb Lund, pres., Security State, Albert Lea, and his wife, Mona; Sally Laux, v.p., and
John Gilpin, v.p., both with First Banks.

PICTURED at American National of St. Paul hospitality quarters were, from left: Jim Russell, v.p. of host bank, and his wife, Kay; Sue and
Bob Hoodecheck, sr. v.p., Winona Natl.; Bob Jacobson, v.p., American Natl.; Bruce Nystrom, pres., Riverside Bank, Minneapolis, and Dick
Flesvig, a.v.p., host bank.

i i «

{ &&<$$$ I

* »


CONVENTION registrants had the opportunity to visit 35 product and service displays in the exhibit hall, two of which are pictured here.
LEFT— Bill Jackson, pres, of Banker’s Equipment Service, Inc., shows a new model bank machine to convention chairman Gerald A. Bllski,
sr. v.p., Midway Natl., St. Paul. RIGHT—Discussing services offered by Marquette Bank Minneapolis were Michele Lecuyer, Sandy Hagaman, Marlin Rothe and Mike Hay.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986



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M in n e s o ta N e w s
the state level but in each communi­
ty. He is impressed, he said, by
bankers talking more forcefully
about what’s right, for this sends
clear signals that our industry is op­
timistic about the future, he added.
Mr. Terwilliger said if he were to

choose a theme for the coming year, fine.’’
The annual banquet Tuesday
it would be based on a statement
made by retired Minnesota banker evening featured the installation of
Cliff Sommer, Owatonna, who said, new officers, followed by entertain­
when he was ABA president some ment furnished by singer Brenda
years ago, “ If we remember the pub­ Byers, after which dancing con­
lic’s interest, banking will be just tinued to a late hour.



FIVE BANKERS were inducted into the MBA Pioneer Club. Left to right in front irow are: A.E. Ritt, M.D., chmn., Midway Natl., St. Paul;
Chester Eggen, dir., Richfield B&T; Ruth Danielson, pres., Atwater State; A. Dan Fiala, chmn., Citizens State of Milaca-Ogilvie, and V.S.
Sather, dir., Franklin State. In back row, from left, are: MBA Pres. Clint Kurtz; Pioneer Club Pres. Pat DuBois, chmn., First State, Sauk Cen­
tre, and MBA Exec. V.P. Truman Jeffers. Two inductees unable to be present were R.W. Perras, dir., Red Lake County State, Red Lake, and
Howard B. Williams, dir., Glenwood State. (Ben Haller, Jr., publisher, N o r t h w e s t e r n B a n k e r , was made an honorary member of the Pioneer

Club for 40 years of service to the industry.)


LEFT—Truman and Leila Jeffers (center) were congratulated at the annual banquet on Jeff’s 25 years of service to the MBA and presented
with a gift. Pictured with them are MBA Pres. Clinton Kurtz (left) and Ken Wales, sr. v.p., First Bank Minneapolis, who hired Jeff 25 years
ago when Ken was MBA’s exec, v.p., the job Jeff succeeded to 16 years ago when Ken joined First Bank. RIGHT—Speaker Dr. Mike Boehlje
visits with Mr. Kurtz prior to the second general session.

A TRADITION carried out for many years by Norwest Bank Midland has been the presentation of paintings to banks who have celebrated a
long-term anniversary relationship with the Minneapolis bank. Two were honored during the breakfast this year. Above, Ernest Pierson
chmn./CEO, Norwest Bank Midland, presents Les C. Kouba wildlife paintings to Eldon Matson (left), chmn. of State Bank of Blomkest (35
years as a correspondent) and to Charles L. Traxler (right), pres, of 1st Natl., Le Center (40 years as a correspondent).
Banker, July, 1986
Federal Reserve Bank of St. Louis


M in n e s o ta N e w s


Purchase Agreements For
Marquette Bank Edina Plans Renovation
Four First Banks Signed
Purchase agreements have been
signed for the sale of four First Bank
locations. They are Blue Earth and
Waseca, Minn., and Highmore and
Miller, S.D. The sales are pending
regulatory approval.
A group composed of employees,
directors and community investors
will buy First Bank Blue Earth,
which had year-end assets of $33.5
First Bank Waseca, which had
assets of $42.3 million at year-end,
will be purchased by three directors,
four employees and representatives
who have had business interests in
Waseca, including Neil N. Fruechte, MARQUETTE Bank Edina has begun major renovation of its facility at 6500 France Ave. S.
The renovation, which is expected to be completed in December 1986, includes a complete
bank president.
new facade, a drive-in facility that will almost double drive-in capacity, and a new vaulted
First Bank Highmore and the roof and landscaping. Interior changes will include a remodeled customer waiting area, a
Miller office of First Bank South training room which will be made available to the community for meetings as well as a new
Dakota will be purchased by cathedral ceiling and stairway to the lower level. Plans also include an innovative safeHoward J. Peterka, president of the deposit area and safe-storage area.
Miller office, as well as six other
bank officers at Miller, five bank of­ Minnesota Banclnsure staff. She is promoted to assistant vice presi­
ficers from Highmore and all direc­ employed as administrative assis­ dents. Ms. Cotton, who has been with
the bank since 1975, will be in the
tors at both locations.
human resources department. Mr.
Specific purchase terms have not
Myres will be working in the retail
been disclosed.
First Bank System
department. Having joinedNames Managing Director
the bank in 1967, Ms. Pierskalla will
Larry L. Gilb has been appointed be in operations.
Pres. Named in New Ulm
director of First Bank
Gerald Fesenmaier has been ap­
pointed as president of State Bank
Named in Worthington
Central Minne­
& Trust Com­
Norwest Bank Worthington has
sota region.
pany of New
Steven C. Hull senior vice
Mr. Gilb will
continue in his
M r. F e s e n ­
charge of credit
maier has pre­
adm inistration.
ident and CEO
viously served
He w as p re ­
of First Bank
as a vice presi­
io u sly
Duluth. He suc­
dent of commer­
p re sid en t and
cial State Bank
manager of Nor­
Claypool, who
in St. Paul; First
w est A gricul­
will retire July
Brookdale State
tu ra l C re d it,
Bank, Brooklyn
He has been associated with First Inc., in Spencer,
Center, and most recently, executive
vice president of the St. Cloud Na­ Bank System since 1971. In 1981, he ^ M r .
H ull
was elected president of First Bank
tional Bank & Trust Company.
Duluth and has served as CEO since
1983. In February, he was chosen to
Banclnsure Employs Two
serve as division director of the
The Minnesota office of Bancln­ Northern Minnesota region.
Bank Des Moines in 1984. He trans­
sure has announced that B.A. “Berferred to Spencer later this year.
nie” Carlson, an experienced bank
bond field underwriter, has joined
The First American National Named in Young America
the company. Mr. Carlson comes to
Jerald Tiggelaar has been named
Banclnsure after 38 years with Bank of St. Cloud has announced
vice president in charge of the com­
the promotion of four employees.
Transamerica Insurance Co.
John E. Herges has been pro­ mercial loan department of the State
In 1960, Mr. Carlson joined
Transamerica and has been working moted to senior vice president-com­ Bank of Young America. He former­
with financial institution bonds and mercial loans. He joined the bank in ly was president of the Norwest
Bank, Slayton, and prior to that was
grain warehouse bonds for 26 years. 1973.
Janet K. Cotton, Brian H. Myres with the Norwest Bank of Worthing­
His assistant at Transamerica,
JoAnn LaSota, has also joined the and Theresa S. Pierskalla have been ton.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986


capital markets group processes approximately 1,600 trades per day
and holds $15 billion in securities
safekeeping for customers.
The foreign exchange arm of the
group, which was formerly part of
the International Banking Group,
has been renamed the International
Money Markets Department. With
dealing units in Minneapolis and
London, the department serves the
foreign exchange needs of many
1974 and was assistant vice presi­ European and New York-based com­
dent of personal banking prior to his panies as well as those in the central
Mr. Hauser, who had been a vice
The company provides financial
president in the financial institu­ services through a number of domes­
tions division, joined First Banks in tic and international subsidiaries
and offices, including trust, interna­
tional banking, commercial and agri­
* * *
cultural finance, data processing, inFirst Bank System has an­ surance brokerage leasing, mort­
Before joining the corporate staff nounced that Michael G. Stout has gage banking, venture capital, mer­
in 1984, Mr. Brown was in charge of joined the FBS
chant banking and discount broker­
consumer banking, funds manage­ Capital Markets
age services.
ment and capital management and Group as execu­
* * *
trust groups at Norwest Bank Min­ tive vice presi­
Scott A. Johnson and Mark Boeyneapolis.
dent of taxable
ink have joined Western Bank and
Mr. Schneider was vice chairman securities trad­
Insurance Agency.
of Norwest Bank Minneapolis. He ing, underwrit­
Mr. Johnson is manager of the
has been with the Norwest organiza­ ing and sales.
new Oakdale Office. His responsibil­
tion since 1964.
Mr. Stout had
ities will include most phases of
* * *
previously been
planning, implementing and open­
»* q s t o u t
First Bank St. Paul has promoted a vice president
ing the full-service bank. He moved
Michael E. Traeger and James W. in taxable fixed
to Western from Midway National
income capital markets with Mor­ Bank where he managed the per­
Widen to vice
gan Stanley & Company.
president. In ad­
sonal banking area. Prior to that, he
* * *
d itio n ,
worked at ITT Thorp.
First Bank System has an­
Hauser has been
Mr. Boeyink is assistant vice
nounced the merger of the bond de­ president in charge of marketing
named head of
partments of First Bank Minneapo­ and strategic planning. Prior to join­
the private capi­
lis and First Bank Saint Paul into an ing the bank, he worked at First
tal division at
FBS division called the FBS capital Bank Minneapolis as strategic plan­
the bank.
markets group. The new group, ning officer.
Mr. Traeger,
which includes the foreign exchange
who joined First
* * *
operations of the Minneapolis-based
Banks in 1980,
James J. Renier has been elected
company, also plans to open a for­
had been assis­
tant vice president of special loans eign securities subsidiary in London to the board of First Bank System,
Inc., Minneapolis. He is vice chair­
this summer.
As a combined entity, the FBS man of Honeywell Inc., Minneapolis,
Mr. Widen joined First Banks in

The board of Norwest Corpora­
tion has elected two new executive
vice presidents in the company’s
banking group. They are Robert C.
Brown, president of Norwest Capital
markets, and Richard D. Schneider,
recently appointed chief credit offi­
cer for the banking group. Both are
based in Minneapolis.

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











M in n e s o ta N e w s

Christopher Smith and Jeanne M.
Voigt have been promoted to vice
president by the First Banks.



Mr. Smith, promoted to vice
president in the FBS capital mar­
kets group, joined the bank in 1980.
Ms. Voigt, promoted to vice presi­
dent in FBS capital markets group
operations, also joined the bank in
* * *
Victor P. Reim, president and
CEO of The Commercial State Bank
in St. Paul, has
announced the
appointment of
Bruce N. Davis
as a vice presi­
dent in the com­
mercial lending
M r. D av is,
form erly w ith
First Bank Sys­
tems, is a gradu­
ate of St. Cloud University.
* * *
Marquette Bank Minneapolis has
named John R. Fox as a vice presi­
dent of trust branch services, a new
division of the bank’s trust services
group. In addition, Mr. Fox will ad­
minister several client accounts of
the trust services group.
Prior to joining the bank, he was
vice president and senior trust of­
ficer at Fidelity Bank Northeast. He
was with the bank 17 years. Before
that, he served as a trust officer at
Central Bank of Montana in Great



Kevin W. Goedel, application sup­
port representative, and JoAnn Cotroneo, human resources assistantsystems, have joined Bremer Finan­
cial Services, Inc.
Mr. Goedel had been with First
Bank Minneapolis, FBS Informa­
tion in a variety of accounting and
data processing positions. Ms. Cot
Federal Reserve Bank of St. Louis


roneo had been with Norwest Bank Richfield Mgr. Wins Award
St. Paul in a variety of accounting
and human resources positions.
* * *
Norwest Bank Minneapolis has
promoted Lloyd W. Simms and
John R. Slifer to assistant vice pres­
idents as a part of a move to intensi­
fy service to financial institutions.
Mr. Slifer’s main areas of respon­
sibility are with insurance, commer­
cial finance, leasing, brokerage and
other large financial institutions,
while Mr. Simms specializes in serv­
ing other non-bank financial service
companies and bank-holding compa­

AWARDED the Perry R. Clark Award for out­



Mr. Simms joined the organiza­
tion in 1983. He previously served
as vice president and cashier of the
First National Bank of the Lakes in
Navarre, and of Town and Country
Bank in Maplewood.
Mr. Slifer joined Norwest Bank
Old St. Anthony in 1981. He worked
with other banking organizations in
the Twin Cities from 1983 until join­
ing Norwest Bank Minneapolis as a
commercial banking officer in 1985.
* * *

standing contribution to education was
Marge Brown of Richfield Bank & Trust Co.
She was given the award at the American
Safe Deposit Association’s annual educa­
tional conference held in Indianapolis, Ind.
recently. Ms. Brown is the bank services
manager in charge of the safe deposit de­
partment for the bank.

Joe Mareck has been named in­
stallment loan officer. He has been
with the bank for three years.
Michelle Baranick has been named
loan review officer. She has been
associated with the bank for one

Northwoods Bank Relocates
Northwoods Bank of Minnesota
has received approval from the De­
partment of Commerce to relocate
Promoted in Roseville
its charter location from Dorset to
The Roseville Bank has an­ East Highway 34, Park Rapids.
nounced the promotion of Robert L.
Grasley to vice
Named in Northfield
president of the
Peggy Hoffman has been pro­
data processing
moted to assistant vice president of
F ir s t
B an k
Mr. Grasley
has been with
She previous­
the bank since
ly served as per­
1985 and pre­
sonal banking
vious to th a t
m anager. Ms.
held a similar
Hoffman began
p o s itio n
her banking ca­
M arietta, Oh.
reer in 1978 as a
where he was president of the data loan assistant at
center for American BancData.
Kanabec State
Bank in Mora.
Two Named in St. Cloud
She joined First Bank Northfield in
Two have been promoted to offi­ 1980 and has held the positions of
cer positions at Zapp National secretary and personal banking offi­
Bank, St. Cloud.
Northwestern Banker, July, 1986

(Continued from page 25)

First Bank Names Three
First Bank of South Dakota has
added one new officer and promoted
T hom as J.
Flynn has been
elected senior
vice president
and trust officer,
in the trust ser­
vices division.
He jo in s the
bank from Brenton Banks of
Iowa where he
has served as head of the trust divi­
sion for the past five years. Prior to
that, Mr. Flynn was head of the
trust department at Norwest Bank
in Mason City, Iowa from 1978 to
1981. He practiced law for two and a
half years prior to entering the bank­
ing profession.
Jerry L. Robinson has been
elected data center manager of the
regional operating center in Sioux
Falls. He joined First Bank System
Information Services in the Sioux
Falls Data Center in 1970 as a com­
puter operator. In 1980 he was pro­
moted to night supervisor and was
named item entry supervisor in
Lois I. Callis has been elected
operations officer at the regional
operation center in Sioux Falls. She
began her career with the First Bank
System at First Bank Madison in
1974 as a bookkeeper. After holding
various operational positions, she
was promoted to head of bookkeep­
ing and proof in 1980. In 1985 she
was named operations supervisor.
Ms. Callis transferred to the South
Dakota Regional Operating Center
in November of last year as excep­
tion items supervisor.
Purchase Agreement Signed
Purchase agreements have been
signed for the sale of First Bank
Northwestern Banker, July, 1986
Federal Reserve Bank of St. Louis

V.P. Named in Eau Claire
Gregory L. Gill has been ap­
pointed vice president and chief fi­
nancial officer at
First Wisconsin
National Bank
of Eau Claire.
Mr. Gill’s 11year career with
the First Wis­
Highmore and the Miller office of consin Corpora­
tion began in
First Bank South Dakota.
Howard J. Peterka, president of 1975, when he
the Miller office as well as six other joined the First
bank officers at Miller, five bank of­ Wisconsin Mort­
ficers from Highmore and all direc­
tors at both locations will purchase
First Bank Highmore and the Miller sin Corp. as manager of the holding
office. Other employees will be able company’s accounting department.
to purchase a percent of the owner­ He was promoted to accounting offi­
cer in 1980. From 1981 to the pre­
ship at later dates.
First Bank Highmore had year- sent, he has served in a staff liaison
end assets of $27.4 million and the position in the area of corporate unit
Miller office had $41.1 million in bank administration.
year-end assets.
Changes Made in Shawano
Specific purchase terms have not
Michael A. Hall, president of Citi­
been disclosed.
zens State Bank, Shawano, has been
elected chief executive officer by the
Three Elected in Sioux Falls bank’s board. Mr. Hall joined the
At Western Bank-West in Sioux bank in 1983 as senior vice presi­
Falls, three new officers have been dent, and was appointed president
in 1984.
Marlys Donner and Diane
H ovda
been elected per­
sonal banking
officers. They
bring a com­
bined total of 24
years banking
experience to
their new posiM- °0 NNER
Joseph D. Wolf recently joined
the bank as a consumer loan officer.
He was formerly with First of Amer­
ica Bank Corporation in Ironwood,
Woodruff Bk. Changes Name
First National Bank of Minocqua
and Woodruff has changed its name
to “Valley Bank” effective last
month. The change includes the
adoption of the Valley Bank logo de­
signed for all banks affiliated with
Randy Jorgensen has been elected Valley Bancorporation.
A bank representative said the
commercial credit officer. He joinedthe bank in 1984, following several change will identify the bank as a
years with the Comptroller of the member of Valley Bancorporation,
Currency as a national bank exami­ with April 30, 1986, assets in excess
of $2 billion.

room services were first-rate.

NDBA officers for 1986-87 are, left to right: Immed. Past Pres.—William M. Sanger, pres.,
First Bank, Wahpeton; Pres. — Harvey H. Huber, Union State Bank, Hazen;
Pres.-Elect—John W. Pierson, pres., Norwest Bank Minot, N.A.; Exec. Dir.— Harry J. Argue
(seated rear), Bismarck, and V.P.-Treas.— Roger Berglund, pres., Dakota Western Bank,


Harvey Huber Named NDBA President
HEN the planning committee
for the North Dakota Bankers
Association annual convention as­

weather was ideal—rainy and chilly
—while the business program was
loaded with talent that drew a full
sured NDBA officials they had house to each session! Nearly 400
everything in hand for the dates of bankers and spouses were regis­
June 9-10 in Fargo, they weren’t kid­ tered.
ding! Monday, June 9 featured the
In addition, the Holiday Inn man­
ladies’ and mens’ golf tournaments agement showed why its motel, with
through the morning and afternoon a new high-rise, six-story tower of
and the weather was ideal—pleasant special rooms and suites, is rated the
temperatures and bright sun. Tues­ finest convention facility in the city.
day, June 10 featured a full day of The staff did their jobs well, the food
business sessions and again the service was excellent, and meeting

Elections and Awards
NDBA President William M. San­
ger, president of First Bank of
North Dakota, Wahpeton, capped a
busy year with a superb convention
program, with the usual profes­
sional assistance of NDBA Execu­
tive Director Harry Argue and his
staff from Bismarck.
Succeeding Mr. Sanger as presi­
dent for 1986-87 is Harvey Huber,
president of Union State Bank,
Hazen. Named president-elect is
John W. Pierson, president of Nor­
west Bank, N.A., Minot. The vice
president-treasurer is Roger Berg­
lund, president of Dakota Western
Bank in Bowman. Harry Argue con­
tinues as executive director.
Mr. Sanger was later elected as
North Dakota’s delegate to the
ABA Banking Leadership Confer­
Plaques were awarded to five
North Dakota bankers for years of
service to the industry. A plaque for
50 years of service was presented to
Inez V. Madden of Farmers State
Bank, Ypsilanti. Plaques for 40
years of service went to Thomas A.
Dawley, First State Bank, Munich;
Harry A. Lenz, First National Bank
& Trust Co., Dickinson; Daniel J.
Lessard, First American Bank &
Trust Co., Grafton, and John C.
Phillips, First American Bank of
Business Session
The business session Tuesday
started off appropriately with the
annual Prayer Breakfast, which was
addressed this year by Dr. Kevin
Leman, Christian psychologist from
Tucson, Ariz. Dr. Leman quoted
from several of the books he has

Mark Olson (left), pres.-elect of the ABA and pres., Security State, Fergus Falls, Minn., chats with NDBA Pres. Bill Sanger before address­
ing the convention. At right, he is visiting with former St. Olaf College classmate John Pierson, who is pres., Norwest Bank, Minot, and the
new NDBA pres.-elect.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986

N o rth D a k o ta N e w s
written and lectures he has given
around the nation, centering consis­
tently on the need for solid personal
relationships within a family. The
basis for all these, he said, is the gen­
uine love and respect between hus­
band and wife. He admonished hus­
bands to make their wives, whether
homemakers or working outside the
home, as their first priority and not
to let work build a wall.
The first guest speaker at the gen­
eral business session was the wellknown NBC economic affairs com­
mentator Irving R. Levine. Mr. Le­
vine said, “We’re witnessing a rare
convergence of a lot of positive ele­
ments in today’s resurging eco­
Mr. Levine reviewed the delicate
fabric that includes a Congressional
attack on the deficit. “All these
problems,” he said, “have a linkage,
and they must all be dealt with.
There will be no significant drop in
unemployment until we have a drop
in trade deficits; no trade deficit
decrease until there is a drop in the
dollar value; no drop in the dollar

value until there is a drop in interest
rates; no drop in interest rates until
there is a significant drop in govern­
ment borrowing, no drop in govern­
ment borrowing until there is a drop
in the federal deficit, so one goes full
circle to the beginning, which tells
us that Congress must cut spending
and balance the budget.”
Association Business
North Dakota bankers were given
a detailed review of Banc Insure by
four panelists—J. Robert Stassen,
Banclnsure Minnesota, Bankers
Services, Inc., Minneapolis; Truman
Jeffers, executive vice president,
Minnesota Bankers Association;
Diane Aim, NDBA insurance man­
ager, and George W. Lennon, Jr.,
vice president, Banclnsure, Okla­
homa City, Okla.
Mr. Sanger gave a brief Presi­
dent’s Report during which he noted
a few of the positive activities of
NDBA the past year. Among these
was the NDBA entry into Banc­
lnsure, a strong legislative program
with the state legislature, a com­

plete set of response for the member­
ship through a series of regulatory ||D
bulletins, a new public relations kit
for members, filing of amicus curiae
in several cases, joining with the
North Dakota Centennial Commit­
tee in establishing a method to fi- #
nance the state’s 1989 Centennial,
and the moving of NDBA headquar­
ters to a location one block from the
old offices for larger, improved quar­
Art Linkletter Speaks
Another bonus speaker for regis­
trants was the indefatigable Art
Linkletter, who at the age of 70+ ®
gave another of his entertaining, yet
inspirational talks. He said he has
been involved in more than 70 busi­
ness enterprises “and I have learned
more from my mistakes than from ®
my successes.” He added as encour­
agement to bankers, “Those who
have the elasticity and the capabili­
ty of coping with change will be suc­
cessful in the future.” He inter- ®
spersed his program with delightful
reminiscenses of the cute sayings

LEFT—Mary Pietrzak, Fargo; Joe Lempe, sr. v.p., First Interstate, Fargo; Lenore and Curt Cornelius, pres., First American Bank, Larimore,
and Jim Dawson, pres., Dawson Hail. RIGHT— Lee Stenehjem, Sr., pres., First Internatl. Bank, Watford City; Lee Stenehjem, Jr., and Larry
Eaton, both v.p.s at 1st Natl., Fessenden, and Ralph Trom, pres., Kindred State.

LEFT—Leeann Teske, Mary Pietrzak, Joel Ampe, reg. mgr., all of Bankers Systems, St. Cloud, Minn., greet Ken Recker, exec, v.p., Dakota
Bankshares, Fargo. RIGHT— Roger Berglund, pres., Dakota Western, Bowman; Myron Pfeifle, pres., Bismarck State; Les Nesvig, pres.,
First State, La Moure, and Tom Gunderson, pres., 1st Dakota Financial Services, Inc., Bismarck. All three banks are among a growing num­

ber who maintain an Investment Center partnership with 1st Dakota.
Banker, July, 1986
Federal Reserve Bank of St. Louis

N o rth D a k o ta N e w s

way things turn out,’’ attributing
that quotation to UCLA former bas­
ketball coach John Wooden.

LUNCHEON speaker Art Linkletter visits
with guests following his address.

and comments he has garnered from
visiting on his TV program with
thousands of youngsters, then spoke
seriously of his continuing commit­
ment to fight drug and alcohol abuse
since the tragic death 18 years ago
of his daughter. He stressed the
need to fill the minds of youth with
positive thoughts and what’s right,
then added, “Things turn out best
for people who make the best of the

ABA President’s Address
ABA President-Elect Mark Olson
journeyed to Fargo a short distance
from Fergus Falls, Minn., where he
is president of Security State Bank.
In keeping with a positive approach
to the industry, Mr. Olson pointed
out that while 120 banks failed in
the United States last year, the
most since the 1930s, “there were
14,000 banks that did not fail!
Banks have $15 billion in earnings
and $183 billion in capital. I ’d say
th a t’s something positive that
should be of interest to the Ameri­
can people.’’
Mr. Olson went to point out that
outside competitive forces are con­
tinually whacking away at the tradi­
tional business of banks and it is
crucial that all banks support the in­
dustry effort to get expanded
powers enacted into legislation this
year. “We will succeed when the
public perceives that banking needs
to change,’’ he added.


William Isaac Comments
William M. Isaac, now president
of The Secura Group in Washington,
D.C., but better known to bankers
as the immediate past chairman of
FDIC, followed Mr. Olson to the
podium. He said he is “an ardent
proponent of competitive deregula­
tion. The competitive inequities of
today can only mean banking is run­
ning in place, which interprets into
falling behind.”
Mr. Isaac talked about the propo­
sals for imposing premiums on
foreign deposits of the top 25 banks’
foreign deposits, since those depos­
its are now virtually insured by
FDIC, although reluctantly. He dis­
cussed also the basing of premiums
on risk of the deposit base. He said
he believes that the “depositor disci­
pline disadvantage is outweighed by
the advantages, because of situa­
tions like Continental Illinois Na­
tional Bank & Trust Company of
Chicago. So I believe the better dis­
cipline is through capital regulation,
working to a 9% level in six years.
Directors and stockholders would
look carefully because they would be

LEFT—Bill Isaac, former chmn. FDIC and now pres., The Secura Group, Washington, D.C.; John McGinley, pres., American State, Willis1on, and Harry Argue, NDBA exec. dir. RIGHT— Richard Siengrim, v.p., dir. of sales, greets guests at North Central Life exhibit.

LEFT—Dick Holmes, a.v.p., Marquette Bank, Minneapolis, with Mick Hamerstrom, pres., West Fargo State, and Larry Kraayenbrink, a.v.p.,
Marquette Bank. RIGHT— Bob Barstad, pres., 1st State, Harvey, and Del; Dolores Walstrom, a.v.p., 1st Bank Minneapolis; Ron Brandvold,
pres., Merchants Bank, Rugby, and Ruth, and Mike McArdell, corr. bkg. off., First Bank St. Paul.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986

responsible for the risk.”
Mr. Isaac stressed again that the
least cost, prudent solution for Con­
tinental in Chicago was the action
taken by FDIC to save the bank,
especially, he noted, “because it
would have severely harmed or
ruined 2,300 smaller correspondent
banks.” An extended question and
answer period followed.
Final speaker was the highly
popular Orion Samuelson, farm ser­
vice director for WGN radio and TV,
The 1986-87 NDBA officers were
installed during the annual banquet.
The festivity was followed by a stir­
ring evening of entertainment pre­
sented by Danny Davis and the
Nashville Brass.
The 1987 convention is scheduled
for June 7-9 in Minot.
Two Promoted in Fargo
Norwest Bank Fargo, N.A. has

announced the promotions of Char­
les D. Swanson and R.W. Perez to
assistant vice presidents in the re­
tail banking department.
Mr. Swanson began working for
the bank in 1976 and was promoted
to loan officer in 1977. Mr. Perez
started with Norwest in 1976 in the
collection department and in 1977
was promoted to installment loan of­
Dan Lessard Retires
From Grafton Bank
Dan Lessard, president of the
First American Bank & Trust of
Grafton, has announced his retire­
ment as of July 1, and from the
board as of December 31, 1986. He
retires after 40 years of service to
the First American Bank & Trust of
Grafton, the last 18 years as presi­
He has held the presidency of the

North Dakota Bankers Association,
was a city alderman for 8 years and
has been involved in many civic and
banking organizations during his
His successor is Pat L. Keeley, ex-



ecutive vice president of the bank.
Mr. Keeley began his banking career
in 1972 with the bank and has held
different positions during his 15
years there. He assumed the
presidency and became a member of
the board July 1.
the 1987 legislature and lobby for •
MBA on all tax related issues. In ad­
dition, she will serve as comptroller
of the association’s finances and
manage other services developed for
MBA members.

FDIC Approves Assumption
of Bank of Columbia Falls
The board of the Federal Deposit
Insurance Corporation has approved
the assumption of the deposit liabili­
ties of Bank of Columbia Falls by
First Citizens Bank, N.A., Columbia
Falls, a newly-chartered subsidiary
of Citizens Development Company,
The failed bank’s only office re­
opened on June 2 as First Citizens
Bank and its depositors automati­
cally became depositors of the as­
suming bank.
Bank of Columbia Falls, with
total assets of $42.8 million, was
closed on May 30 by Fred Napier,
Montana Commissioner of Financial
Institutions, and the FDIC was
named receiver. Mr. Napier said
“The bank’s equity capital had been
deteriorating because of poor lend­
ing practices and management prob­
First Citizens Bank assumed
about $40.5 million in 5,400 deposit

Banker, July, 1986
Federal Reserve Bank of St. Louis

Elected in Billings
Gregory Schmidt has been elected
as trust officer-employee benefit #
plans, financial services division of
First Interstate Bank of Billings,
accounts and has agreed to pay the N.A.
FDIC a purchase premium of
Mr. Schmidt joined the bank in
$310,000. It also will purchase cer­ 1983 as an employee benefits trust #
tain of the failed bank’s loans and administrator, prior to which he
other assets for $13.7 million. To worked in Seattle, Wash, for Bank­
facilitate the transaction, the FDIC ers Life Company.
advanced $26.5 million to the as­
suming bank and will retain assets
of the failed bank with a book value
of about $29.1 million.
MBA Services Inc.
Names Exec. V.P.
Neysha Humphreys, CPA, has
been employed as executive vice
president of Montana Bankers Asso­
ciation Services, Inc. She had been
with Anderson-ZurMuehlen Co. in
Helena as a CPA for the past seven
years. Prior to that, she was a staff
accountant in Colorado.
Mrs. Humphreys’ role as execu­
tive vice president will include man­
agement of all insurance and pen­
sion plans for banks, their employ­
ees and customers. She will also
compile tax data from all banks for

OFFICERS of the Wyoming Bankers Association are, left to right, front row: Immed. Past
Pres.— Hale Kreycik, pres., Converse County Bank, Douglas, and Pres.— N.P. Van Maren,
Jr., vice chairman, Hilltop National Bank, Casper. Back row: 1st Vice Pres.— Bill Ruegamer,
pres., First Interstate Bank, Sheridan; 2nd Vice Pres.—Auburn Dowdy, president, Norwest
Bank, Cheyenne, and Exec. V.P.—Gretchen Tea, Casper.

N.P. Van Maren Named WBA President
p p r o x i m a t e l y 300 bankers
and spouses attended the 78th
annual convention of the Wyoming
Bankers Association at Jackson
Lake Lodge, Moran, in mid-June, ac­
companied by flawless weather that
provided daytime highs of 75 de­
N.P. “Van” Van Maren, Jr., vice
chairman of Hilltop National Bank,
Casper, was elected 1986-87 presi­
dent of the WBA, succeeding Hale
Kreycik, president of Converse
County Bank, Douglas.
Bill Ruegamer, president of First
Interstate Bank, Sheridan, moved
up to first vice president of the asso­
ciation, while Auburn Dowdy, presi­
dent, Norwest Bank, Cheyenne,


became the new second vice presi­
dent. Gretchen Tea, Casper, conti­
nues as executive vice president.
Four bankers were named to twoyear terms on the WBA board of di­
rectors. They are:
Ronald Bailey, president and
CEO, American National Bank,
Rock Springs; Clifford E. Kirk, exec­
utive vice president and CEO, First
National Bank of Gillette; Chuck
Pedersen, president, First Inter­
state Bank, Casper, and Jerry Ran­
kin, president and CEO, First
Wyoming Bank, Jackson.
In his review of WBA activities
this past year, Mr. Kreycik reviewed
the extensive work done in investi­
gating every angle to provide im­
proved insurance coverage for mem­
ber banks. He said ABA’s current
study of a captive insurance is
Wyoming’s best bet. He listed sev­

eral items needing special attention:
1. Either an extension or repeal of
the federal law that deleted the UCC
ag hen exception (double jeopardy
bill). 2. Branching and full interstate
legislation, for which bills will be in­
troduced in the 1987 legislature. “I
ask you not to let this controversial
issue harm our WBA,” Mr. Kreycik
said. 3. Issue of declining revenue of
dues to WBA and the increasing
cost of maintaining the Casper of­
Four guest speakers addressed
the WBA convention.
Michael A. Aun, II, a certified
Speaking Professional from Lexing­
ton, S.C., opened the program with
his inspirational speech, “Get Up
Off Your Assets.” After pointing
out the changes taking place in
banking and how banks of every size
must adapt, he urged the audience
to keep an eye on California, Texas
and Florida, the “bellwether states”
which are “determining where the
course of banking is going.”
“Big bank mergers,” he noted,
“have all the finesse and appearance
of mating dinosaurs,” and added
that “the banking giant of the ’90s
will be a leader, a facilitator, not an
order taker. America is moving
toward a union-free society, and
banks must also move in this direc­
Dr. A. James Meigs, economic
consultant and retired senior vice
president and chief economist at
First Interstate Bancorporation,
gave his “Economic Outlook...U.S.
and Wyoming.” He doesn’t foresee
another energy crisis because “oil
reserves of the world are 35%
greater today than 1970, when it
was thought we were running out.
However, we have enough oil to run
another 45 years - grim news for sup­
pliers.” He expects a modest in-

PICTURED at Norwest Banks dinner party were, left to right: Hosts Auburn Dowdy, pres., Norwest Bank Cheyenne; Bob Noel, exec, v.p., Af­
filiated Bank Corp., Casper; John Sampson, sr. v.p., Norwest Corp., Minneapolis, and Gary Wickham, exec, v.p., Norwest Bank, Casper.
RIGHT— Bill Dewhurst, v.p., Norwest Bank Omaha; Meredith and Doug Crouse, pres., Security State Bank, Basin, and Rita and Howard
Nielsen, v.p., Norwest Bank Omaha.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986

W y o m in g N e w s
crease in oil prices in late ’86 and
early ’87 to a range of $13 to $15 per
“The long run for Wyoming,” he
said, is good, “for you have great
stocks in the ground which will in­
crease in value and supply a continu­
ing source of funds long-term.” For
the short-term, Dr. Meigs feels tour­
ism emphasis is needed to shore up
the Wyoming economy.
In his summary, Dr. Meigs said
“the national economy is doing well
and has tremendous vitality, which
will help Wyoming in the long run.
We will have a little more inflation,

but not like before. Also, we will see
a little higher interest rates. This is
still a good time to be in the banking
ABA President Mark Olson re­
viewed “Legislative Goals and Op­
portunities.” Based on the erosion
of banking’s former protected posi­
tion, Mr. Olson said, “We need an
expanded banking charter granting
new powers...until we get new
powers to exercise flexibility, we’re
in a declining industry.” He urged
bankers to “look carefully at those
running for office.”
Radio and TV journalist David

Schoenbrun, entertained the audi­
ence with his reminiscences of im­
portant people and events he has
been associated with worldwide in
the past 50 years.
Following last year’s format of re­
gistering in on Sunday at Jackson
Lake Lodge, the business meeting
was held all day Monday, followed
by the annual banquet that evening.
Tuesday was devoted to recreational
activities — golf, tennis and fishing
— and concluded Tuesday evening
with a German Beer Garden party.
The 1987 convention will be held
again at Jackson Lake Lodge.

LEFT— Greeting guests at First Interstate Casper reception were, left to right: Wanda and Don Swanton, exec, v.p., Wanda and Chuck
Pedersen, pres., and Nancy and Lynn Duncan, v.p. RIGHT—Nebraska visitors from Sioux Natl., Harrison, included Charles Leffler, Jr., vice
chmn.; Don Bell, v.p.; Charles Leffler, Sr., chmn., and Wayne Hoskinson, pres.

LEFT—Rick McElroy, v.p., Central Bank of Denver, with Lorry and Jack Pearson, ret. pres., 1st Natl., Lovell. RIGHT— Barry Robinson, v.p.,
Fed. Res. Bank of Kansas City, with Janet Nacu, dir. of sales s.w. region, and Cathy Deveau, acct. mgr., Denver, both with American Ex­
press Co.

LEFT— Hale Kreycik, ret. pres. WBA and pres., Converse County Bank Douglas, and his wife, Jane; Mark Olson, pres. A3A and pres.,
Security Bank, Fergus Falls, Minn., and Juanita and N.P. Van Maren, Jr., new pres. WBA and vice chmn., Hilltop Natl., Casper. RIGHT—
Larry Matthes, v.p., Colorado Natl., Denver; Elsie and Bob Nelson, chmn., 1st Natl., Powell, and Beth Bryant, corr. bk. repr., Colorado Natl.,


Banker, July, 1986
Federal Reserve Bank of St. Louis



REPRESENTING the leadership of the Colorado Bankers Association for 1986-87 are, left
to right: Exec. Vice Pres.— Don A. Childlears, Denver; Pres.—A.J. Tony Anderson, pres.,
Kiowa Stale Bank; Immed. Past Pres, and Chmn.— Royce B. Clark, chmn., IntraWest Bank,
Greeley, and Pres.-Elect—G.K. Gar Puryear, exec, v.p., Colorado Natl. Bank, Denver.

• Colorado Bankers Elect A.J. Anderson
To Head CBA in 1986-87

Associate Publisher

held in addition to president over
the past year.
G.K. “Gar” Puryear, executive
J. “TONY” Anderson, presi- vice president of The Colorado Na­
■ dent and chief executive offi­ tional Bank of Denver was named
cer of Kiowa State Bank, was CBA president-elect, succeeding Mr.
elected president of the Colorado Anderson. Mr. Puryear is a past di­
Bankers Association during the rector of the CBA and is a member
85th annual CBA convention, held of the CBA federal legislative com­
at the Broadmoor Hotel in Colorado mittee and finance committee.
Springs last month. He succeeds
Don A. Childears will continue as
Royce B. Clark, chairman and chief executive vice president for the
executive officer of IntraW est Bank CBA.
A resolution was adopted during
of Greeley.
Mr. Clark continues as chairman the convention to change the titles
of the association, a title that he has of “vice president” and “executive





manager” to president-elect and ex­
ecutive vice president. This change
“will reflect a growing trend among
other state associations,” said Mr.
Of course, it wasn’t all business at
the Broadmoor. The CBA sponsored
a fun run, golf and tennis tourna­
ments, skeet and trap shooting and
a fitness clinic, as well as a “County
Fair” reception where bankers were
encouraged to “try their luck at the
games and to take home a prize.”
An entertainment highlight for
the convention was the performance
by Danny Gans, a singer and im­
pressionist who delighted the audi­
ence and was called back onto the
stage with a standing ovation. His im­
pressions surely brought back good
memories for many of the bankers
and spouses as he performed music
from Sinatra to Elvis.
Many bankers wish they could go
back to the “better days” of bank­
ing, but “we can’t turn the clock
back,” said Royce Clark. “Our in­
dustry needs to be unified because
we already have too many prob­
lems—we can’t let these things get
in the way (of our progress),” com­
mented Mr. Royce. “We must keep
the banking industry unified,” he
In keeping with the unification
theme, Alex Sheshunoff, president
of Sheshunoff & Co., Austin, Tex.,
encouraged bankers not to concen­
trate on the problems they have
now, but to look towards the future.
Borrowing a phrase from Charles
Darwin, Mr. Sheshunoff said, “ I t ’s
not the strongest bank that will surCOLORADO NEWS. . .
(Turn to page 46, please)

LEFT— General session speakers included, left: ABA Pres., Donald T. Senterfitt, vice chmn., Suntrust Banks, Orlando, and Alex Sheshu­
noff, Sheshunoff & Company, Austin, Tex. RIGHT—Hosting the annual Central Bank of Denver Breakfast were, left to right: Bill Tumelty,
v.p.; Don Echtermeyer, sr. v.p.; Don Hoffman, chmn. & ceo, and Bob Krane, pres, of holding co.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986




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

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


firs! national bank

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

Banker, July, 1986
Federal Reserve Bank of St. Louis

for 32 years. He had served as vice
president and cashier and had
experience in all departments of the











Changes Made in North Platte
Samuel H. Gillette, executive vice
president and secretary of the board
has retired from the North Platte
National Bank. Mr. Gillette had
served the bank for the past 17
years in the capacity of ag officer
and executive vice president.
The bank’s board has recently ele­
vated four of its officers to new ad­
ministrative positions.
Promoted to executive vice president and senior loan officer was
William Giesler. He will also serve
as secretary of the board. He has
been with the bank four years, hav­
ing worked in the credit and financial business.
Charles Sandman, who has been
assistant vice president and loan of­
ficer, has been promoted to vice
president and commercial ag officer.
He has been with the bank for five
Serving as vice president and
head ag officer will be Roger Wark,
who recently came to the bank from
First National Bank and Trust Com­
pany at Kearney.
Marcia Shanahan has been ap­
pointed assistant vice president and
a commercial loan officer and will
serve as head loan administrator.
She has been with the bank for over
two years, most recently as credit

FDIC a purchase premium of
$239,000. It also will purchase cer­
tain of the failed bank’s loans and
other assets for $7.5 million. To fa­
cilitate the transaction, the FDIC
will advance $2.4 million to the as­
suming bank and will retain assets
of the failed bank with a book value
of about $3.6 million.
President Named in Kearney
Gary L. Hodde has been named
president and chief executive officer
of the Kearney State Bank & Trust
Mr. Hodde, who was executive
vice president of the bank, succeeds
Terrence Geiger.

Two Named in Sidney
The American National Bank of
Sidney has announced that Dwight
Stubbs has been named executive
vice president. He formerly was se­
nior vice president.
Merna Billings has been named
assistant cashier.
Joins Holdrege Bank
Lloyd Schepler has joined the
staff of the First Security Bank in
Holdrege as vice president.
Mr. Schepler was formerly with
the Thayer County Bank in Hebron
as senior vice president.
Two Named in Norfolk
Jane McDaniel has been elected
as assistant vice president and Dan
Skalberg as a new installment loan
officer of the Bank of Norfolk.
Ms. McDaniel has been with the
bank since 1980. Prior to this pro­
motion she was assistant cashier.
Mr. Skalberg, a former Norwest and
Bankers Life employee, has six
years of lending experience.

Lisco Banker Dies
Harold B. Olson, 90, passed away
last month in Oshkosh. Mr. Olson
was chairman of the Lisco State KBA & NBA Host School
Bank and vice president of the Rush
The first-year session of the 1986
Creek Land and Livestock Com­ Professional Development Program
pany. .
Intermediate School of Banking will
His banking career began in 1919 be held September 21-26 at the Holi­
at the Maxwell State Bank. He join­ day Inn in Manhattan, Kan.
ed the Lisco State Bank in 1924 and
Sponsored by the Nebraska and
also served as president of the Kansas Bankers Association, this
N ebraska Bankers Association course has been expanded to a twowestern panhandle group.
year program. The course covers 13
subject areas, makes extensive use
student/teacher interaction, and
Retires in Cozad
involves interim assignments which
G.S. Wittenberger, executive vice allow students to further explore the
president of First Bank & Trust Co. concepts taught in the first-year ses­
of Cozad has announced his retire­ sion. The second-year session, to be
Roseland State Bk. Closes
On May 28, State Banking Direc­ ment. He has been with the bank held during June, 1987, will utilize a
bank simulation model.
tor James C. Barbee closed the since 1966.
Jeffrey J. Konen has been named
Class enrollment is limited to 60
Roseland State Bank, which had
total assets of $11.1 million. The to succeed him. He had previously students. Applicants for admission
been a vice president of the bank.
will be accepted now through Aug­
FDIC was named receiver.
ust 22 on a “first-come, first served”
The bank’s only office reopened
on May 29 as a branch of Hastings Promoted in Elk Creek
Cost of the school is $750 for
Kenneth L. Bartels has been pro­
State Bank and its depositors auto­
matically became depositors of the moted to vice president of the John­ single housing, $650 for double, and
son County Bank, Tecumseh Office, $600 for no housing. Enrollment fee
assuming bank.
includes registration, instruction,
Hastings State Bank will assume Elk Creek.
Mr. Bartels had been working for five nights lodging, meals and all
about $10.1 million in 2,300 deposit
accounts and has agreed to pay the the former Johnson County Bank classroom materials.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986

(Continued from page 43)

Lawrence Comine, Jr. has been
named chief operating officer, senior
executive vice president and a mem­
ber of the board of FirsTier Bank
Mr. Comine, formerly vice presi­
dent and CEO of FirsTier Bank
Grand Island, joined Omaha Na­
tional Bank in 1958. He replaces
Gary K. Thrasher, senior executive
vice president, who has resigned.



Patrick J. Brady has been named
senior vice president and group ex­
ecutive for the bank’s commercial
lending division.
Mr. Brady joined the bank in
1984 following an 18-year career
with the Norwest Corporation. He
had been serving as vice president in
the bank’s commercial lending de­
partment. He replaces Robert A.
Suddick, senior vice president of the
bank, who has resigned.
* * *
Two new officers have been nam­
ed at Norwest Bank Nebraska, N.A.
They are: Kathleen A. Anderson to
retail banking officer and J.W.
“Wally” Landon to financial institu­
tions group officer.
Ms. Anderson began working in a
Sioux Falls bank in 1963 and has
Banker, July, 1986
Federal Reserve Bank of St. Louis

over 12 years banking experience.
She joined Norwest in 1977.
Ms. Anderson will office at the
Norwest Bank Nebraska location at
24th and L Street.
Mr. Landon joined Norwest last
year as a credit analyst in the
regional credit training program.



Evelyn Schafer has been pro­
moted to vice president/internal au­
ditor at Douglas
C ounty B ank
and Trust Com­
s ta r te d
career at DCB
&T in 1960 in
the bookkeeping
department. She
was promoted in
1970 to opera­
tions officer, and
in 1981 to vice president of opera­
* * *
Elaine M. Dishman has been
named international banking officer
and manager of
th e
I n te r n a ­
tional Banking
Department at
Norwest Bank
Nebraska, N.A.
She will oversee
services includ­
ing domestic, in­
ternational and
stand-by letters
of credit and all
drafts and wires overseas. Ms. Dish­
man previously served for five years
at the bank as a cash management

vive, but the one which is most
adaptable to change.”
Bankers were told that the lend­
ing side of banking will contribute to
higher performance banks. Mr.
Sheshunoff explained his “subtractafraction and addafraction theory.”
This involves the cutting of interest
rates on deposits and increasing the
rate for borrowing by a similar frac­
tional amount. “This could be any­
where from 1/4 to 3/8 of a percentage
point,” he said.
Heartsill Wilson, a noted professional speaker from Denver, told
bankers to remain optimistic. “Peo­
ple who tend to feel good about
themselves, take risks to achieve
things and show no desire to cut
back on their active lives will be suc­
cessful,” Mr. Wilson said. “Success
is not limited to just a few.”
ABA President Donald T. Senterfitt, vice chairman, Suntrust Banks,
Orlando, Fla., told bankers in his
presentation, “We must have an at­
titude of cooperation.” He went on
to say, “We are dependent on one
another and the same purpose must
draw us closer together.” Mr. Senterfitt told bankers to take up an ac­
tive role in their industry, especially
from a legislative standpoint.
“The legislative branches are do­
ing nothing and the only way to get
action is to develop a concensus
among bankers—agreed as one voice
throughout the industry,” said Mr.
Senterfitt. He urged involvement in
PAC groups and concluded, “We
can win or we can lose in Washing­
ton, but unification is the key.”
In addition to excellent general
session speakers, the CBA also pro­
vided a concurrent workshop en­
titled, “Rap with the Regulators,”
where bankers could voice their
questions and opinions with area
regulators. Those involved in the
session were Billy C. Wood, deputy
comptroller, Western District, OCC,
San Francisco; Richard B. Doby,
Colorado state bank commissioner,
Denver; Roger Guffey, president,
Federal Reserve Bank, Kansas City,
and Sidney M. Carroll, FDIC assis­
tant regional director, Dallas.
The 1986 CBA Convention was,
as the program stated, “a positive
and uplifting time.” It offered bank­
ers and spouses the opportunity to
not only enjoy the beautiful sur­
roundings of the Broadmoor, but to














C o lo ra d o N e w s


LEFT— Enjoying themselves during the United Missouri Bank Dinner were, from left: Virginia and E.G. Koelling, dir., Citadel Bank, Wichita,
Kansas; Bev and Dick Muir, v.p., United Missouri Bank, Kansas City, and Pam and Claude Cage, Colorado Springs. RIGHT—From left are:
Lyle Wells, Jr., vice chmn., United Missouri Bank, K.C.; Jeannine and Joe Lincoln, pres., Central Bank of Denver; Don Hoffman, chmn., also
Central Bank with wife Patsy, and Roger Guffey, pres., Fed. Reserve, Kansas City.

become better bankers as they
understand and learn about their in­

House ceremony in May.
Two Advance in Tech Center
Kathy Sisneros and Aundrea
Mace have been promoted to loan re­
view/compliance officer and opera­
tions officers respectively at Colo­
rado National Bank-Tech Center.
Ms. Sisneros has 12 years bank­
ing experience. She joined the bank
in 1982. Ms. Mace came to the bank
in 1981.

United Banks of Colorado
Completes Negotiations
United Banks of Colorado, Inc.
has completed negotiations to ac­
quire American National Bank of
Aurora. The terms of the purchase
have not been released. The acquisi­
tion is contingent on approval of the
board of the Governors of the Fed­ United Bank of Denver
eral Reserve.
Promotes Seven
American National has assets of
United Bank of Denver has an­
$7.2 million. United Bank of Colo­
it has promoted seven of its
rado, Inc. has assets of $4.7 billion.
employees. David L. Pitts has been
named vice president and assistant
counsel. He joined the bank in 1981.
Promoted in Boulevard
James G. Fullerton and Philip V.
William R. Vasa has been pro­
have been named assistant
moted to vice president, commercial
In addition, Faye E.
loans & loan review of Colorado Na­
tional Bank-Boulevard. Mr. Vasa
joined the bank in 1984 as credit anhave been named to officer posi­
alyst/loan operations supervisor and tions.
was later promoted to assistant vice
Three Named in Longmont
Robert P. McWhorter has joined
Awarded in Denver
Colorado National Bank-Longmont
First Interstate Bank of Denver as vice president & loan administra­
is the only bank in the country se­ tor. He has 27 years of banking ex­
lected to receive the coveted Presi­ perience having previously been as­
dent’s “E Star” Award for export sociated with First Interstate Bank
of Alaska and First Interstate
The award is bestowed on those branches in Oregon.
individuals or organizations that
L. Michael Finnegan, who is assis­
consistently have made outstanding tant vice president & commercial
contributions to promoting interna­ loan administrator, comes from
tional trade.
Commerce Bank of Aurora.
The bank was honored by Presi­
In addition, June M. Myhre has
dent Ronald Reagan at a White been promoted to consumer loan
Federal Reserve Bank of St. Louis

supervisor. She joined the bank in
1982 as loan officer.
Red Cross Names Banker
George G. Patterson, executive
vice president of the Central Bank of
D enver,
nam ed
chairman of vol­
unteers for the
American Red
Cross W estern
H e a d q u a r te r s
(WOH), located
in Burlingame,
The position G.G. PATTERSON
is one of the highest Red Cross vol­
unteer posts in the nation. Mr. Pat­
terson will be part of a top-level
management team.
Elected in Denver
Richard M. Johnson has been
elected vice president and assistant
manager of Lincoln Agency, a whol­
ly-owned insurance subsidiary of
United Bank of Colorado, Inc. Mr.
Johnson is a 10-year veteran of the
United Bank system, serving most
recently as vice president and direc­
tor of retail banking service for
United Bank of Fort Collins.
Advanced in Arvada
Colorado National Bank-Arvada
has promoted Carl Hamm to assis­
tant vice president. Mr. Hamm
came to the bank in 1984 as a loan
representative trainee and was pro­
moted to loan officer.
Northwestern Banker, July, 1986


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Hawkeye Will Sell 17 Community Banks











AWKEYE Bancorporation an­
nounced last month it will sell
off 17 of the holding company’s 36
banks as part of a proposal to reduce
the corporation’s current $100 mil­
lion of debt. Paul D. Dunlap, Hawkeye president and founder, said a
final accord with creditors would
also require resolution of other ma­
terial and legal issues, as well as
regulatory approval.
Mr. Dunlap stated that preference
in the sale of the 17 banks would be
given to current officers, directors
and stockholders, then to outside in­
vestors. Robert Murray, executive
vice president and treasurer of
Hawkeye, said there had been “con­
siderable interest’’ expressed by
Hawkeye staff members, as well as
by other bankers and investors for
the purchase of the banks.
Mr. Dunlap said the proposal,
which requires acceptance by credi­
tors, would restructure Hawkeye
debt as follows: $22.5 million in in­
stallment notes, payable $10 million
December, 1986, $5 million June,
1987, $5 million December, 1987 and
$2.5 million June, 1988. Term notes
of $15 million at prime with a 12%
cap, interest only for five years, renewable, principal amortized 1991
through 1996. Creditors will receive
$30 million of subordinated capital
notes at prime with a 12 % cap, due
in $10 million payments December
31 of 1989, 1991 and 1993.
If payment is not made on the
principal of the capital notes, credi­
tors may elect to receive 25% of the
common stock at the 1989 due date,
and an additional 15% on each of the
1991 and 1993 due dates. In addi­
tion, if the agreement as proposed is
fully approved, creditors would receive approximately 2.6 million
Hawkeye shares, or approximately
25% of the common outstanding.
The 17 banks had total assets
May 31, 1986 of $556,986,000. Their
1985 year-end capital accounts (capi­
Federal Reserve Bank of St. Louis

tal, surplus, undivided profits) to­
taled $46,386,00, as reported in the
1986 Iowa Bank Directory, based on
information furnished by each bank.
Hawkeye banks in the following
cities are offered for sale: Allison,
Camanche, C hariton, Clinton,
Eldora, Grundy Center, Humboldt,
Iowa City, Lake City, Lake Mills,
Lenox, Mason City, Maquoketa,
Red Oak, Sibley, Sioux City and
Hired in Fairbank
Max Cory has been hired by the
Fairbank State Bank as senior vice
p resid en t. He
will be the com­
mercial loan offi­
cer for all busi­
ness loans.
Mr. Cory was
employed at the
National Bank
W ate rlo o
from 1957 to
1983, where he
started as a tel­
ler. Prior to leaving the National
Bank of Waterloo, he was commer­
cial loan officer and correspondent
bank officer.
Changes Made in Muscatine
First National Bank of Muscatine
has elected Bernard J. Lattyak as
senior vice president/senior loan
officer; Kim K.
Bartling to vice
p re s id e n t/finance; M ark
Werning to in­
ternal auditor,
and David K.
Pinegar, install­
ment loan offi­



Mr. Lattyak has been vice president/loans at the Union National
Bank in Wichita, Kan. since 1984.

He was previously with the First
National Bank in Sioux City and
Marquette Bank Minneapolis.
Mr. Bartling joined the bank in
1985 as internal auditor. In addition
to vice president, he will be the chief
financial officer for the bank and for
the parent, Iowa First Bancshares
Corp. Previous to working for the
bank, he was an accountant with
McGladrey Hendrickson & Pullen.
Mr. Werning previously worked
for Merchants National Bank, Cedar
Rapids for the past 6 years, most
recently as assistant auditor.
Mr. Pinegar joined the bank in
March as installment loan officer.
He has been assistant manager of
ITT financial services in Muscatine.
Clarinda Banker Observes
50th Year in Banking
Floyd Whitmore, chief executive
officer of Page County State Bank,
Clarinda, is ob­
serving his 50th
year in banking
this month.
M r.
W h it­
more’s banking
career started in
1936 when he
began working
at the City Na­
tional Bank in
Shenandoah. He
graduated in 1940 from the Univer­
sity of Iowa and went to Chicago
where he worked on the chief ac­
countant’s staff at Bell Telephone
Co. From 1942 to 1946 he served in
the Signal Corps.
In 1948, Mr. Whitmore purchased
Hedrick Savings Bank. Later he
bought Okey Vernon First National
Bank in Corning, and in 1962, Page
County State Bank, and in 1967, the
First National Bank, Prescott.
Whitmore Company, Inc. was or­
ganized as a multi-bankholding com­
pany and since the 1970’s has been
owned and operated by Mr. Whit­
more and his two sons, James L.
Whitmore and Kenneth F. Whit­
During his 50-year banking ca­
reer, Mr. Whitmore has served the
Federal Reserve Bank of Chicago,
six years on the board of directors,
was involved in the Bluegrass Bank­
ers Association and served on vari­
ous Iowa Bankers Association com­
mittees. In addition, he has donated
much of his time to community
Northwestern Banker, July, 1986


CONGRATULATING former IYBA President Ray Schirmer (far right), on a year well done are
the newly-elected IYBA officers for the 1986-87 year, from left: Sec.— Mark Albers, v.p.,
Decorah State Bank; V.P.—Greg Johnson, a.c. & ag loan off., Shelby County State Bank,
Harlan, and Pres.—Stephen L. Kedley, v.p., First Central State Bank, DeWitt. Mr. Kedley
presented Mr. Schirmer with a plaque for his service to the IYBA.

IYBA Conference Committed to Banking
Associate Editor
OMMITMENT to Tomorrow” was the theme of this
year’s Iowa Young Bankers confer­
ence held last month at the Hotel
Fort Des Moines. The 48 bankers
who attended the one-and-a-half day
session made their first commitment
to banking by actively participating
in the conference, which concen­
trated on preparing bankers in mid­
management positions for advance­
ment potential.
IYBA officers for 1986-87 were
announced a t the conference.
Elected were: President, Stephen L.
Kedley, vice president, First Central
State Bank, DeWitt; Vice President,
Greg Johnson, assistant cashier and
ag loan officer, Shelby County State
Bank, Harlan, and Secretary, Mark
Albers, vice president, Decorah
State Bank.
The conference got underway
with a three-hour management
workshop presented by John
Schmitz, president of John Schmitz
and Associates, a staff consulting
firm in Madison, Wisconsin. An
audiovisual presentation, “I t’s All
In Your Head,” kicked off the work­
shop. The film dealt with the three
keys to becoming a good manager:
organization, clarification, and atti­
Banker, July, 1986
Federal Reserve Bank of St. Louis

tude. The rest of the workshop fo­
cused on the qualities of effective
leadership, delegation of authority,
accountability of performance and
listening skills.
Mr. Schmitz said, “ If you don’t
perceive yourself as a leader, you
won’t lead.” He emphasized the im­
portance of a positive attitude in the
workplace, emphasizing that “99%
of employers basically want commit­
ment and loyalty out of their
people.” He said most anybody can
be trained technically.
During the first day’s luncheon
Dick Holthaus, Iowa Bankers Asso­
ciation marketing director, pre­
sented “ Iowa Banks...The Day
After,” an audiovisual that reflected
hope in the banking industry despite
the gloomy news of some banks hav­
ing to close their doors. He said 96
banks have used the audiovisual
since it was introduced to the public
last spring. The IBA is planning on
putting another PR tool together.
After lunch, a panel consisting of
Gene Smith, executive vice presi­
dent, Sloan State Bank; Jim Davies,
president of Peoples Trust and Sav­
ings, Indianola; Henry Royer, presi­
dent and CEO, Merchants National
Bank of Cedar Rapids, and John
Pothoven, president, Mahaska State
Bank, Oskaloosa gave their opinions
on what qualities will make up to­
morrow’s leaders. The four execu­

tives cited what they look for when
deciding on who to promote for up- ^
per management level positions.
Mr. Davies said there are three
potholes in the road to advance­
ment: poor writing skills, lack of
community involvement, and lack of ^
knowledge of the world around us.
Mr. Royer said “You are a pro­
duct of every experience you’ve ever
had.” He said experience is the most
important talent a manager can pos- £
sess. Mr. Pothoven felt that positive
attitude was the most important
characteristic. The four men agreed
that the need to be customer-ori­
ented was an important trait.
After the panel discussion, David
Bateman, a professor of manage­
ment and business communication,
College of Business Administration,
Southern Illinois University in Car- | |
bondale, led a lively discussion on
“Productive Communications.” Mr.
Bateman said that everyone needs
to dispose of “the big I ” in commu­
nications. He said it’s a major road- (|
block to overcome, but it is ego-ori­
ented and thinking in the wrong
way. Instead, people should use the
“You orientation.” Attendees parti­
cipated in on-the-job exercises which Q
required them to work in a group
and make decisions.
The second day’s general session
was introduced by Bruce Meri­
wether, IBA president and presi- ®
dent, The First National Bank,
Dubuque, who gave a moving
speech entitled, “I ’m Proud To Be
An Iowa Banker.” He told of a personal experience that affected him •
when he was on “The Donohue
Show.” After the show he said 50
people were waiting in line to talk to
him, many of them farmers who told ^
him they weren’t mad at bankers — w
they need their help in order to sur­
vive. Mr. Meriwether said it will be
the banking community that will
help farmers survive, especially the ^
deep understanding of the banker.
“Let’s dispose of the animosity be­
tween banker and borrower,” he
said, adding that his experience
after the show was one which made £
him proud to be an Iowa banker.
Ray Schirmer, IYBA 1985-86
president, was panel moderator for
“ Knowing the Competition,” a
panel which consisted of Vince Me- a
Carty, second vice president, Shearon-Lehman Brothers, Des Moines;
Donald Beeson, senior agent, The
Principal Mutual Life Insurance
Company, Des Moines, and Mike (p


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Federal Reserve Bank of St. Louis


Io w a N e w s

LEFT— A panel made up of, from left, Gene Smith, exec, v.p., Sloan State Bank, Jim Davies, pres., Peoples Trust & Savings, Indianola,
Henry Royer, pres. & ceo, Merchants National Bank, Cedar Rapids, and John Pothoven, pres., Mahaska State Bank, Oskaloosa, had valu­
able advice for conference participants. RIGHT—John Chyrstal (right), pres. & ceo, Bankers Trust, Des Moines, with his friend, Dr. Victor F.
Lishchenko, head of food & ag dept., Academy of Sciences of the USSR, who was visiting from Russia.

Powell, Dean W itter Reynolds,
member of Sears Financial Group,
Des Moines.
The three men said the banking
industry will have to develop a per­
sonal relationship with its custo­
mers and become more aggressive to
help overcome the competition.
The Personal Economics Program
or PEP was introduced by Greg
Johnson, IYBA 1985-86 secretary.
PEP is a program in correspondence
with the school system to teach stu­
dents about banking. Seven differ­
ent banking areas, from careers in
banking to personal money manage­
ment, are covered in the series. For
interested banks, the program is
available in elementary and high
Three Promoted in Indianola
Robert Davey, a vice president at
Peoples Trust and Savings Bank,
Indianola, has
been named bus­
iness develop­
ment officer, and
will be located at
the West Roads
office in India­
M r. D avey
has been em­
ployed by the
bank since 1967,
working specifically in the ag loan
Beverly Nicholls has been named
marketing assistant at the bank.
She has been the Motor Bank man­
ager for the past five years, and has
worked in several departments since
her employment in 1963.
Marilyn Perry has been named
Banker, July, 1986
Federal Reserve Bank of St. Louis

school levels from Marcia Collins at
the IBA.
“ M anaging and M o tiv atin g
Under Stress” was highlighted by
Gary Maas, speaker, consultant and
seminar leader from Agri-Careers re­
cruiting and consulting firm, Massena. Mr. Maas said many employ­
ers try to motivate people with ex­
cess salary, benefits and time off. He
said the real motivators are feelings
of achievement, growth, recognition
and responsibility.
Stress can be somewhat allevi­
ated when employees have real moti­
vators in their jobs, however, there
are also other ways to deal with
stress. Mr. Maas said when you
know someone is under a lot of pres­

sure, communication is very important, but it must be “down to earth.
Don’t beat around the bush.” Help
should be offered. Proper diet and
exercise are also crucial.
The conference ended with a presentation by John Chrystal, presi­
dent and CEO, Bankers Trust Com­
pany, Des Moines, who spoke on the
“Future of Banking in Iowa.” Mr.
Chrystal said he feels defense expenditures should be curtailed, the
social program reevaluated and leg­
islation passed for diversification. A
more profitable farm bill is needed,
he said. “There are going to be fewer
farms and fewer banks,” but he sees
hope for the future of banking in





of the National Council of Higher
Education Loan Programs, Inc.,
(NCHELP) at its recent spring meet­
ing held in Washington, D.C.
Mr. Cunningham will hold the •
position until July 1, 1988.



Motor Bank manager. Prior to this
she served as a new accounts repre­
sentative and savings counselor.
She began her employment as a
front line representative in the
Motor Bank in 1981.
Elected Treas. of NCHELP
Edward J. Cunningham, execu­
tive director of the Iowa Student
Loan L iq u id ity C o rp o ra tio n ,
(ISLLC), has been elected treasurer

Joins Iowa City Bank
Kent L. Jehle has joined Iowa f
State Bank and Trust Company in
Iowa City as sec­
ond vice presi­
Mr. Jehle has
spent the past
four years with
the Iowa De­
p a rtm e n t
Banking as an
exam iner. He
graduated from
the University of Iowa with a BBA
in finance.


Iowa Independent Bankers
Annual Convention
July 24-26«T he New Inn, Okoboji
HE 15th Annual Convention of Iowa Independent Bankers will be held
July 24-26 at The New Inn, Okoboji. George H. Perry, IIB president
and chairman of The City National Bank, Shenandoah, will preside.
Mr. Perry took over as president last fall after Oliver Hansen, chairman,
Liberty Trust and Savings Bank, Durant, resigned due to health problems.
Assisting Mr. Perry this year as officers were David L. Miller, IIB trea­
surer and chairman and president, West Des Moines State Bank, West Des
Moines; Richard W. Berglund, IIB executive vice president, corporate sec­
retary and general counsel, and Diane Gibbs, IIB executive director.
The 1986 convention will address independent banking’s responsibility in
the future and how to best serve customers in the years ahead. In addition,
a number of social and business activities have been planned for all age
The program schedule follows:
Thursday, July 24

Couple’s Golf Tournament - Brooks Golf Course

Noon 6:00
5:00 7:30
5:30 7:30

Lobby of The New Inn
Young People’s Gathering
Indoor Pool of The New Inn
Reception (Adults Only)
The New Inn Poolside
Friday, July 25
[Young People’s Fifth Annual Golf & Tennis Tournaments]



Exec. Vice President


First General Session—The New Inn Convention Center
Call to Order, Invocation, Keynote Address—George H. Perry,
pres., Iowa Independent Bankers, and chmn. of the Board, The City
National Bank, Shenandoah.
Report of the Executive Vice-President & General Counsel—“We’re
Safe, The Legislature is Not in Session,’’ Richard W. Berglund
“Current Trends in Bank Regulation,’’ Question/Answer Ses­
sion—Steve Scholzen, Assistant Regional dir., Federal Deposit In­
surance Corporation, Kansas City, Mo
“ If You Could See What I Hear”, Tom Sullivan, internationally
known entertainer, author and lecturer, Palos Verdes, Calif.
Spouses’ Luncheon—The Grandview Room at The Lodge
The University of Okoboji—Where Fun in Life is Your Degree
Golf Tournament
Shot-Gun Start—Brooks Golf Course

Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986


Io w a N e w s

Bank, Knoxville, Iowa
Election of Officers, Announcements, Ad- #
journment to Registrants’ Luncheon

Saturday, July 26

Second General Session, The New Inn Conven­
tion Center
Call to Order, George H. Perry, Presiding
“On a Clear Day...’’—Question/Answer Ses­
sion-Jack G. Wahlig, Managing Partner,
McGladrey, Hendrickson & Pullen, Certified
Public Accountants, Des Moines.
“Managing Through Adjustments in the Na­
tion’s Agricultural Sector,’’ Question/Answer
Session—Dr. Marvin R. Duncan, Member of
Board of Directors, Farm Credit Administra­
tion, McLean, Va.
“Biting the Bullet: What We Need to Do,’’ Dr.
Gordon P. Eaton, pres., Iowa State University,
“A View from Washington,” Question/Answer
Session—Mark Shields, Author, Political
Analyst, and Columnist for the Washington
Post, Washington, D.C.
Annual Business Session—George H. Perry,
Report of the Resolutions Committee—Chmn.
John Chrystal, pres. & CEO, Bankers Trust
Company, Des Moines.
Report of the Nominating Committee—Chair­
man Ned K. Job, pres., Iowa State Savings

Hired in Stanhope
The Farmers State Bank of Stan­
hope has added to its staff with the
recent hiring of
William D. John­
ston as a loan of­
ficer. He will
also be associ­
ated with the
Stanhope Insur­
ance Agency as
a licensed insur­
ance agent.
He was most
re c e n tly em ­ W.D. JOHNSTON
ployed at the Williams Office of the
Iowa Falls State Bank. He also
worked for two-and-a-half years at
Norwest Bank Atlantic, N.A.
Changes Made in Hartwick
After 32 years of service as a
Hartwick banker, Howard Olson,
president of the Hartwick State
Bank, has announced his retirement.
Mr. Olson joined the bank in 1954
and has served as president since
Also retiring is Anna Olson who
has served as teller since 1970. Both
Mr. and Mrs. Olson are retiring as
bank directors.
K.J. Benda, currently CEO and
chairman, will become president.
Joining the bank as executive vice
Banker, July, 1986
Federal Reserve Bank of St. Louis



Registrants’ Luncheon
(Bank Representatives)
The New Inn Lakeview Dining Room
Introduction & Remarks of Dignitaries—
Michael L. Fitzgerald, Treas., State of Iowa,
Des Moines.
William R. Bernau, Superintendent of Banking, Iowa Banking Department, Des Moines,
and Chmn. of the Board, Walker State Bank,
William H. Greiner, exec, dir., Iowa Family
Farm Development Authority, Des Moines.
O. Jay Tomson, dir., Federal Reserve Bank of
Chicago, 111., and Chmn. & CEO, Citizens Na­
tional Bank, Charles City.
Charles T. Doyle, pres., Independent Bankers
Association of America, and CEO, Gulf National Bank, Texas City, Tex.
Announcements, Golf Awards, Adjournment
Social Hour, The New Inn Beach
Barbecue, The New Inn Beach
F ifth Annual Golf & Tennis Awards
Ceremony, Young People’s Drawing, Couple’s
Golf Awards Ceremony

president will be Alan Knaack who
has been an examiner for the Iowa
Banking Department for the past
six years.
Brian Veach, who currently
serves as cashier, will be promoted
to vice president and cashier. He has
been employed with the bank since
Rose Sullivan has joined the bank
as teller. She was previously em­
ployed as a bookkeeper with Iowa
Erosion Control.
NABW Elects Officers
The Northwest Iowa Group of the
National A ssociation of Bank
W om en
e lec te d
1986-87 officers.
They are: Presi­
dent, Beverly J.
J e n s e n , vice
p re sid en t and
cashier, F irs t
National Bank
of Sioux Center;
Vice President,
Sharon Johnson,
vice president and trust officer, Hol­
stein State Bank; Secretary, Ann M.
Schulz, assistant cashier, Le Mars
Savings Bank, and Treasurer, Deb
Smith, assistant cashier, First Na­
tional Bank of Sioux City.

Appointed in Sioux City
Colleen Snyder has been ap­
pointed vice president of human re­
sources at First
National Bank
of Sioux City.
She had been
associated with
Edward Anson
and Associates
as a management consultant
and most recent­
ly served as vice
president o f huC. SNYDER
man resources at Norwest Banks,
Sioux City.









Elected in W aterloo
D.L. Porchet, president of Peoples £
Bank and Trust Company, Water­
loo, has a n ­
nounced th a t
Alan L. Ploeger
has been elected
ag loan officer.
Mr. Ploeger
comes to the
bank with seven
years of finan­
cial experience.
Prior to joining
Peoples, he was
with a financial institution in Spen­


new profit
your bank

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T h e N ational Bank
F.D.I.C. Insured up to $100,000

Subsidiary of Iowa National Bankshares Corp

m § f,f
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1986

istration. He joined the company in
Connie K. Betts has been elected a
marketing officer. She joined the
company in 1980.
The shareholders of Banks of
Iowa, Inc. have elected three new <§)
members to the board.
Richard O. Jacobson is president
of Jacobson Warehouse Company of
Des Moines. Joseph F. Hladky is
president of the Gazette Company O
of Cedar Rapids. Donald P. Hattery
is president and treasurer of ShiveHattery & Associates of Cedar
Rapids, an engineering consulting
* * *

James W. Eiler has been elected
executive vice president of First In­
terstate Bank of
D es M oines,
Mr. Eiler pre­
viously was se­
nior vice presi­
dent and is re­
sponsible for the
bank’s commer­
cial service’s di­
vision as well as
the credit review
function for loan participations
within the First Interstate system
in Iowa.
He joined the bank in 1983 as vice
president and manager of the loan
administration division. Prior to
joining the bank, he had been presi­
dent and CEO of First National
Bank in Colfax.

tions to closing contained in the
agreement. It is expected the closing
will take place on or before
September 30, 1986. Both First In­
terstate Bank of Des Moines, N.A.
and First Interstate of Iowa, Inc.
will continue as major tenants in the
property after the closing.
* * *

Banks of Iowa, Inc. has an­
nounced the promotion of two offi­
cers and the elec­
tion of two new
officers of the
Des M oinesbased holding
Michael J.
Timmins has
been named vice
re s id e n t, f i­
* * *
nance and trea_x • •
surer. xHe
the company in 1980.
Kenneth M. Myers, chairman and
Janet E. Burch has been named
CEO of First Interstate of Iowa, vice president, personnel. She joined
Inc., Des Moines, has announced the company in 1977.
that First Interstate of Iowa, Inc.
James H. Olson has been elected
and two of its subsidiaries, First In­ assistant vice president, loan adminterstate Bank of Des Moines, N.A.
and First Interstate Building Cor­
poration of Iowa, have entered into
an agreement with Graham Invest­
ment Co., Des Moines, to sell the
First Interstate Bank Building and
retail/office parking structure,
Locust at Sixth Avenue, to Graham
Investment Co. The sales price was
not disclosed.
Closing of the sale is subject to
the satisfaction of several con­
tingencies and customary condi-

Banker, July, 1986
Federal Reserve Bank of St. Louis

Phillip L. Risley has been elected
senior vice president/cashier for
B re n to n N a ­
tional Bank.
M r. R isley
will also retain
his duties as
p re s id e n t
Brenton Infor­
mation Systems,
Inc., the data
processing sub­
sidiary of Bren­
ton Banks, Inc.
He joined the bank in 1982, having
previously been manager of produc­
tivity systems at American Fletcher
National Bank, Indianapolis, Ind.

Stanton Bk. Changes Hands •
James W. Grotenhuis, president
of Security State Bank, Stanton,
has announced his family has agreed
to sell controlling interest in the
Security State Bank to a group of in­
vestors headed by Mike L. Keim of
Omaha, Neb. Mr. Grotenhuis and
Mr. Keim jointly emphasized the
policies and services of the bank ^
would remain the same under new
ownership, and no personnel
changes would be made.
The Security State Bank was ori­
ginally chartered as a state banking £
institution by William J. Grotenhuis
in 1950.
The board of Security State Bank
will be increased to include Mike
Keim, Ivan Husa, Sara Thornton
and Martin McCartney. All are in­
vestors in the new ownership group.
In addition, Mr. Keim will become
president of the bank, and Mr. Husa
executive vice president.


bankinsuranceisthat itwasn't
There are farmers’
insurance companies
and firemen’s insurance
Even companies
founded by travelers.
But IBIS insurance
was designed by Iowa
Bankers only for
Iowa banks. In fact,
IBIS is owned by all Iowa
A nd dollar for dollar,
you can’t do better.
W hether it’s property
and casualty insurance
or creditor protection.
Employee group health,
life, or disability.
IBIS professionals
tailor each plan to meet
your bank’s needs.
Federal Reserve Bank of St. Louis

A t rates you don’t have to
be a banker to appreciate.
Dividends? Last year
we paid over $515,000 to
Iowa banks.
For more information,
call 1-800-532-1423
toll-free. A nd find out how
much better insurance from
bankers can be.


Northwestern Banker, July, 1986


New Bank Opens in Huxley

THE First National Bank of Huxley has opened a new full-service bank headquarters at 102 National Drive, Huxley. This was a conversion#

from a state bank to a national bank, with the original bank remaining as an office in Cambridge. This new 3,300 sq. ft. facility (pictured
above) features a president’s office, three private loan offices, a conference room, five-station teller line, drive-up service, night depository
system, vault and an in-house computer system. Ben E. Allers, P.C. Architect was the building designer. Ehle Construction Company of
Huxley was the general contractor, and Office Concepts, Ltd., of Waterloo, specialists in bank design, provided the interior design and
custom furnishings. An open house was held for area bankers and citizens recently and was well attended.

Two Named in W aterloo
John Cunningham has been ap­
pointed to vice president in the cor­
respondent bank division of The Na­
tional Bank of Waterloo.
Mr. Cunningham was vice presi­
dent, trust officer and cashier at the
Chelsea Savings Bank in Belle
Plaine, where he worked for 16 years

prior to joining The National Bank
of Waterloo.
Dennis Thoren has been ap­
pointed to assistant director of data
processing at the bank’s Computer
Center. Prior to joining the bank, he
was with Rath Packing Company
for 35 years and was manager of
computer systems and program­
ming. He has been involved in techD. THOREN

nical aspects of data processing for
more than 27 years.

Committed to
making your
bank stand
apart from the

Banker, July, 1986
Federal Reserve Bank of St. Louis

PT&S Bancorp Plans Merger
With la. Natl. Bankshares
The planned merger has been an­
nounced of P T & S Bancorp, a o n e^
bank holding company which ow ns*
Peoples Trust & Savings Bank, with
Iowa National Bankshares Corp.,
the parent holding company of The
National Bank of Waterloo.
Peoples Trust & Savings Bank
was chartered in 1919 and has total
assets of approximately $120 mil­
lion. In addition to having three
locations in Indianola, Peoples £
Trust & Savings Bank also has of­
fices in Lacona, Martensdale and
R. Scott Fetner, president of Iowa
National Bankshares Corp. said the £
merger should be completed by the
end of the year.
James Davies, president of Peo­
ples Trust & Savings Bank of India­
nola said the bank will continue to #
operate as an independent bank
serving its own depositors. In addi­
tion, Mr. Davies has announced he
plans to retire effective January,


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

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

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




■ Relationship
I banking.

f Because you
want a banking
partner who never
stops earning
your business.
\ % 1 |

Even a fte r we have it. That s
w h a t re la tio n s h ip b a n k in g
1 J m e a n s to us. B u ild in g the k in d
c lo se n e ss th a t e a rn s y o u r
® 1gA
frc/sf. 777af's w hy we p la c e d o u r
J 4 * ' C lie n t E xecutives clo se to you.
To k e e p o u r ears tu n e d to y o u r
needs, a n d give yo u w h a t you
a sk for. Even a n tic ip a te it
■A b e fo re y o u n e e d it.
It m a y m e a n w o rk in g a
< few late nights. It d e fin ite ly
m e a n s n o t ta k in g y o u r b u s i­
ness fo r g ra n te d . A n d , it
m e a n s u s in g a ll the re so u rce s
o f N o rw e st fo r y o u r benefit.
T h a t’s w h a t we m e a n b y
¿ ¡¡¡ I
re la tio n s h ip b a n k in g . If yo u
] use o u r fin a n c ia l in stitu tio n s
services, you a lre a d y k n o w
w h a t w e ’re talking abo ut. If you
m \ *\
d o n ’t yet, yo u w ill d e fin ite ly
m •
w a n t to try us. W elcom e a c a ll
m { \
from y o u r C lient E xecutive
jR \ i 1
very soon .


Financial Institutions Group



Federal Reserve Bank of St. Louis