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https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 A BANKS OF IOWA BANK BRANDT 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 count. Brandt, Inc. P.O. Box 200, Watertown, WI 53094 (4 1 4 ) 261-1780. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 NORDWESTERN i j a JULY 1986 • M W 93rd Year • No. 1474 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINAN C IAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER 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 issue. 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). FEATURES 11 Case of defendant director— Part IV Attorneys review “ Risk Protection Mechanisms 15 Revisiting data processing alternatives CPA Geoffrey Wold looks at two basic EDP approaches DEPARTMENTS 17 21 24 27 36 37 40 41 Calendar Illinois Convention Report Wisconsin Convention Report Minnesota Convention Report South Dakota News North Dakota Convention Report Montana News Wyoming Convention Report 43 45 46 49 53 56 Colorado Convention Report Nebraska News Omaha News Iowa News IIB Convention Program Des Moines News NORTHWESTERN BANKER 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 https://fraser.stlouisfed.org 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 (CSBS). 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 tion. 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 erations. 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. • ^ ^ ^ ^ n> # B alancing g o o d b an k in g w ith stro n g profits. Keeping competitive and staying profitable is a tough balancing act these days. You’re looking for good service, availability and pricing that can keep your day-to-day operations in the black. At United Missouri, a personal representative works with you on a continuing basis to maintain this balance. Through that representative you have access to our new availability schedule that decreases float costs. And to investments, brokerage services, asset/liability management, data processing services, bankcards and loans. Our services are competitively priced to help your bank improve the bottom line, and all are backed by the expertise and careful market forecasting that have built United Missouri into a major banking force. To learn more about our services, call Phil Straight in Kansas City. UNITED MISSOURI RANK of Kansas City, n.a. P.O. Box 226, Kansas City, Missouri 64141, (816) 556-7900 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Firslier Correspondents O ur New Nam e Speaks For Its e lf. So Does Our History. https://fraser.stlouisfed.org 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. FirsTierBank Omaha 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 FirsTierBank Lincoln 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 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 group. 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 WE UNDERSTAND THE COMMUNITY BANKER 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 opportunity. (312) 577-4570 4 l / \ 4 / \ DOUGLAS AUSTIN AND ASSOCIATES, INC. 5105 Tollview Drive • Rolling Meadows, IL 60008 • Lansing • Toledo j : D o w n to w n C hica g o 's m odern and e c o n o m ic a lly p ric e d E S S E X p iW , o y jtW Park . • C , ^ 1A J l o i » - •- ä ’ executive everything % i * dH I I I The Essex Inn's one-price $52 corporate package rate gives the traveling •» he w a n ts - guaranteed rate, a newly remodeled guest room (we'll upgrade you to a suite if it's available), complimentary Wall Street Journal with your Continental breakfast, and your spouse can stay free w ith you. Free parking, too! The corporate package is one of the new programs designed to complement the Essex Inn's recently completed New, modern, economical, informal and frie n d ly . . . and downtown Chicago. Call h r Guaranteed Rate Corporate Program Plan Another fine Aristocrat Inn of America ESSEX INN $3 million remodeling; new rooms, suites and lobby. New downtown at York style deli for breakfast, lunch, dinner, late snacks, a M ichigan Ave at 8th St comfortable lounge with entertainment, along w ith a swimming pool and sun deck. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis details: John Castillo, 31 2-93 9-2 800 Chicago Illinois 606 05 Across from Chicago Hilton & Towers W.E. MOELLER J.N. MEEHAN J.K. SUHR T.M. KING 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 # 9 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 ment. 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 animation. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE-OF-THE-ART HARDWARE DESERVES STATE-OF-THE-ART SOFTWARE • PLATFORM MANAGEMENT SYSTEM • TELLER MANAGEMENT SYSTEM • COMPARATIVE RATING SYSTEM • COMMUNITY BANKING SYSTEM ADVANCED RESOURCE TECHNOLOGIES. INC. 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 Ä resources of a billion dollar bank to help you meet the challenges of today, and tomorrow. Technologies and services change, but our attitude hasn’t. Because Marquette Bank Minneapolis will never put aside our oldest promise to our customers: professional service with a personal difference. Marquette Bank Minneapolis M e.te,oc Correspondent Services Division https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 Risk Protection Mechanisms The Case of the Defendant Director: Part IV Written especially for by FRANK J. CARROLL and DAVID S. STRUTT 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 T 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. PART IV RISK PROTECTION MECHANISMS ISK protection mechanisms available to the direc R tor or officer include: (1 ) prevention; (2) indemnifi cation; and (3) insurance. ® ^ 9 ^ ^ 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 cluded. 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 13 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 breached. 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 approval. 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.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 14 “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 coverage. 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 https://fraser.stlouisfed.org 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. n|| (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. □ 15 Revisiting Data Processing Alternatives By GEOFFREY H. WOLD CPA McGladrey Hendrickson & Pullen # HERE are two basic automation alternatives avail T 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 EXHIBIT QUANTIFIABLE FACTORS One-time Costs Annual Operating Costs Hardware: Main computer MICR equipment Teller terminals Microcomputers Cables Power installation transformers X X X X X X X X X X Support Equipment: Burster Decollator Tape cleaner Tape rack Envelope stuffers Noise silencers for printers Jogger X X X X X X X X X Office Equipment: Data media cabinets Calculators Desks Chairs Telephone Outlet strips Anti-static flooring X X X X X X X Cost Description Telecommunications: Hardware Software Telephone line installation Line costs Software: Operating system Application software Custom modifications MICR software Teller terminal software ATM software ACH software Microcomputer software https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis X X X X X X X X X X X X X X X X X X X X Cost Description One-time Costs Supplies: Disks, tapes and diskettes Stock paper Special forms Printer ribbons Printer bands Output binders Office supplies Site Preparation: General construction Electrical Fire detection and prevention equipment Computer room security equipment Terminal cable installation Telephone installation Office furnishings Air conditioning equipment Humidity control equipment Transition costs: Personnel Hardware Software Delivery Installation Conversion Personnel: Wages Taxes and benefits Training Other: Electricity Telephone Insurance Rent Microfiche processing Sales tax Consulting fees Annual Operating Costs X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Northwestern Banker, July, 1986 16 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 banks. 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 applications. 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. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 ® include: • Physical security • Access controls • Backup a • 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 tives. # 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 1986 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 Colorado: Aug. 3-10—Graduate School of Banking, Uni versity of Colorado, Boulder. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J Oct. 6-7—Asset/Liability Mgmt Seminar, Den ver. Illinois: 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. Iowa: 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. Minnesota: July 20-25—MBA Midwest Banking Insti tute, University of Minnesota, Morris. Aug. 10-15—MBA Commercial Lending School, St. Olaf College, Northfield. Nebraska: 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 City. Sept. 18—SDBA Group III Meeting, Holiday Inn, Mitchell. Sept. 19—SDBA Group I Meeting, Holiday Inn City Centre, Sioux Falls. Wisconsin: 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 plans. 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 information. 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 18 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 M. Kemper, Jr., for merly chief exec utive officer, will D.W. KEMPER c o n tin u e as 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 https://fraser.stlouisfed.org 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 tion (ABA) BANCTRAINING 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.” 0 “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) 659-8111. 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 tion. 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, 19 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, Ky. Bankers w ith am bition. Those are bankers Drovers values as correspondents. If you want to acquire one or more banks but lack me it the funds to do it, Drovers can help. We’re specie specialists in financing bank acquisitions. As a member of the Cole-Taylor Financial Group, we can offer a wealth of practical advice about holding companies. And our large lendir lending limit allows us to offer substantial 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 the attached card. toyou Æ f t i / Drovers Bank of Chicago 47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C. /ACole-Taylor Bank 20 M ost correspondent banks give you a banker. We give you a whole bank! Usually, a correspondent banking relationship is a oneon-one situation. You and a correspondent banker. At Commercial National Bank, you get a correspondent banker to handle your daily needs, plus you get Bob Stevenson, Brock Hessing and our entire staff of specialists. Get the individual service and the overall banking sup port you need. Call one of us — your correspondent banker — and your correspondent bank — today! Bob Mowrer, Jr. Correspondent Banking Officer Jim Fassino Assistant Vice President Bob Stevenson Bruce Edwards Brock Hessing President Correspondent Banking Representative Senior Vice President Commercial National Bank of Peoria Member Midwest Financial Group, Inc. OB COMMERCIAL BANKING DIVISION 301 S.W. Adams Peoria, Illinois 61631 Phone (309) 655-5225 WATS LINE 1-800-322-2212 Member FDIC 20-333 Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 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. By ROBERT CRONIN 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 9 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. ^ • ® _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 198S 22 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. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 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 0 • 1 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 cluded. 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 department. 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 J- MACHOLL 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, Tex. 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 York. 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 advice. 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. 0 0 0 0 0 # https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 24 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 By ROBERT CRONIN Associate Publisher HE WISCONSIN Bankers As 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 Bay. “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 & T Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 crowd. 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 i :V 25 . .'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 former. 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 president. 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 ket. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WISCONSIN NEWS. . . (Turn to page 36, please) Northwestern Banker, July, 1986 26 How ADT became the largest processor of independent banks in the area becoming an ADT client requires no heavy up-front investment. And that we always keep them current with new banking technology and regulations. They enjoy reliable reporting and the prompt, personal attention of their own ADT customer service representative. Each month, they get to tell us what we’re doing right or how we It started 20 years ago. That’s when our parent, Amer ican N ational Bank of St. Paul, pioneered data processing services to com m unity banks th roughout the 9th Federal Reserve District. A nd ADT h a s n ’t s to p p e d growing since. B a n k e rs seem to like o u r approach to data processing. They appreciate the fact that can make improvements. And in the end, they know that their total data processing costs with ADT are lower than other DP alternatives. ADT has b e e n su c c e ssfu l because we help our clients become successful. To see what we can do for you, call Dick Aird at 800/2373762 Extension 112. Or contact one of our data centers listed below. AMERICAN ■ , y* 1/ \ I---- ^ I / i — yk I / \ N. Subsidiary of American National Bank of St. Paul TECHNOLOGY Largest processor of independent banks in the 9th Federal Reserve District V. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ADT Minot • Jerry Lee • 701/852-1274 ADT Fargo • Doug Marquart • 701/237/5164 ADT Sioux Falls • Rich Miller • 605/336-8704 27 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 By BEN HALLER, JR. Publisher EARLY 1,000 bankers and N spouses gathered at the Radisson St. Paul Hotel June 2-4 to ex® “ ^ ^ ^ ^ a 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 noon. 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 above. 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 tion. The second day got underway at https://fraser.stlouisfed.org 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 leadership. 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 28 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 sin. 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 Plan. 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 https://fraser.stlouisfed.org 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 director. 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 29 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. w 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. gatsp i i « msfxztzi { &&<$$$ 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 Who’s ATM mm The Plus System network lets Do 65 million Plus System® cardholders and eight million Plus System" transactions a year tell you something about national market dom inance? They should. Because the Plus System® network has tens o f millions more card holders and processes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis hundreds of thousands more transactions every year than any other nationally shared ATM network. It’s no secret why the Plus System network is the choice of consumers when it comes to obtaining cash throughout the United States and Canada, and soon in even more countries. At the Plus System® network, the philosophy has always been to offer customers unequaled reliability. And to offer customers uncom promising security that its numbers do the talking. ensures the confidentiality of every transaction. So when a cardholder requests cash from a conveniently located Plus System ATM, he or she has the confidence o f knowing that the process is fast, safe and secure. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Isn’t it time your financial institution joined the Plus System® netw ork— the prem ier choice for national ATM sharing? For complete information regarding membership, please contact your local Plus System* member, or call Plus System, Inc. at (303) 573-7587. ''■Plus System The premier choice. 32 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. Q» (fy 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.) I* 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). Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 M in n e s o ta N e w s 33 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 million. 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 tant. 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 banking 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 managing director of First Bank Gerald Fesenmaier has been ap System’s North/ pointed as president of State Bank Named in Worthington Central Minne & Trust Com Norwest Bank Worthington has sota region. pany of New appointed Steven C. Hull senior vice Mr. Gilb will Ulm. p re s id e n t in continue in his M r. F e s e n charge of credit capacity as pres maier has pre adm inistration. ident and CEO viously served He w as p re of First Bank as a vice presi v io u sly vice Duluth. He suc dent of commer p re sid en t and ceeds James H. cial State Bank manager of Nor Claypool, who in St. Paul; First w est A gricul will retire July L.L. GILB Brookdale State tu ra l C re d it, G. FESENMAIER 31. 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 S.C.HULL was elected president of First Bank tional Bank & Trust Company. worked with the Production Credit Duluth and has served as CEO since Association in various lending posi 1983. In February, he was chosen to tions in Emmetsburg, Harlan and Banclnsure Employs Two serve as division director of the Spencer, la., before joining Norwest 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 Four Advance in St. Cloud 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 34 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 J. WIDEN J. HAUSER 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 promotion. U.S. 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 1983. tional banking, commercial and agri * * * R.C. BROWN R.D. SCHNEIDER 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 , Jack 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, M.TRAEGER 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. commercial. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ^ ^ ^ ^ ^ # ^ £ £ HI q 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. C. SMITH J.M. VOIGT 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 1980. * * * 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 department. M r. D av is, form erly w ith First Bank Sys B.N. DAVIS 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 Falls. * * * 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 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 nies. AWARDED the Perry R. Clark Award for out L.W. SIMMS J.R. SLIFER 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 year. 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 department. F ir s t B an k Mr. Grasley Northfield. 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 in her banking ca M arietta, Oh. R L- GRASLEY reer in 1978 as a where he was president of the data loan assistant at center for American BancData. Kanabec State P. HOFFMAN 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 cer. Bank, St. Cloud. Northwestern Banker, July, 1986 36 WISCONSIN NEWS. . . (Continued from page 25) First Bank Names Three First Bank of South Dakota has added one new officer and promoted two. 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 T. FLYNN 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 1985. 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 https://fraser.stlouisfed.org 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 G.L. GILL bank officers at Miller, five bank of Wisconsin Mort gage Company as an accountant. In ficers from Highmore and all direc 1978, he moved to the First Wiscon 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 elected. in 1984. Marlys Donner and Diane H ovda have been elected per sonal banking officers. They bring a com bined total of 24 years banking experience to their new posiM- °0 NNER M.A. HALL J.D. WOLF tions. Joseph D. Wolf recently joined the bank as a consumer loan officer. He was formerly with First of Amer ica Bank Corporation in Ironwood, Mich. 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 D. HOVDA R. JORGENSEN 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. ner. 37 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, Bowman. Harvey Huber Named NDBA President By BEN HALLER, JR. Publisher HEN the planning committee W 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 ence. 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 Richardton. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 38 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 nomy.” 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 ters. # 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. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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. 39 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 40 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, Chicago. 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 ficer. 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 dent. 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 career. His successor is Pat L. Keeley, ex- D.J. LESSARD P.L. KEELEY 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, Billings. 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 lems. First Citizens Bank assumed about $40.5 million in 5,400 deposit Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 By BEN HALLER, JR. Publisher 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 grees. 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, A 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 fice. 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 tion.” 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 42 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 barrel. “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 business.” 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., Denver. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis w £ 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 ® By ROBERT CRONIN 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 A ® ® # 43 manager” to president-elect and ex ecutive vice president. This change “will reflect a growing trend among other state associations,” said Mr. Anderson. 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 concluded. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 44 A The Anchormen. Change comes fast in today’s banking — so fast you need an anchor of stability and dependability. Meet the anchormen — the experienced, professional corre spondent bankers of First National Bank of Omaha. The more things change, the stronger is their commitment to 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. Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 for 32 years. He had served as vice president and cashier and had experience in all departments of the bank. ^ ^ ^ £ • • • 0 0 • 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 years. 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 analyst. 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 Company. 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 of 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 basis. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 46 COLORADO NEWS. . . (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 Omaha. 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. L. COMINE, JR. P.J. BRADY 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 Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 pany. She s ta r te d her career at DCB &T in 1960 in the bookkeeping department. She was promoted in 1970 to opera E. SCHAFER tions officer, and in 1981 to vice president of opera tions. * * * 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 E. DISHMAN drafts and wires overseas. Ms. Dish man previously served for five years at the bank as a cash management officer. 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 ® ® ® ® _ ® _ ^ ^ q ^ i|) || O C o lo ra d o N e w s 47 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 dustry. □ 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 nounced 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 Hanel have been named assistant moted to vice president, commercial vice presidents. In addition, Faye E. loans & loan review of Colorado Na Fairbanks, J. Christopher Fleming, tional Bank-Boulevard. Mr. Vasa Inès W. Grefe and Nell Stallings 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 president. 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 service. 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 https://fraser.stlouisfed.org 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, has been nam ed chairman of vol unteers for the American Red Cross W estern Operations H e a d q u a r te r s (WOH), located in Burlingame, Calif. 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 48 E xport-Im port Experts Bankers Trust provides a full There's an Iowa team to help you range of international banking serdo business overseas. The Iowa Export-Import Trading vices to facilitate the financial and Company assists Iowa companies documentary needs of you and in marketing, shipping or procur your customers. Now, we're working together. We ing their products outside the have the experience and resources U.S. We help you break into new that can help you expand your markets, prepare the needed sales and profits. documents, arrange Contact Bankers transport — and cut kvl w Trust's International Divithrough the red tape ^ 9 C I I sion soon. Together, — to make the prowe'll help you take on cess go smoothly for 11 I l o l Member th e world.., WOT fdic the and win! your company M e rFDIC Bankers Trust (515) 245-5288 ®D Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA EXPORT-IMPORT TRADING COMPANY (515) 245-2464 Hawkeye Will Sell 17 Community Banks • • ® ® ® ® - 9 ^ • ^ ^ 0 AWKEYE Bancorporation an H 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 https://fraser.stlouisfed.org 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 Waukon. 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 of W ate rlo o from 1957 to 1983, where he M. CORY 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 cer B.J. LATTYAK Mr. Lattyak has been vice president/loans at the Union National Bank in Wichita, Kan. since 1984. 49 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 F. WHITMORE 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 more. 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 groups. Northwestern Banker, July, 1986 50 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 By MELINDA SAUERS 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 Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 Ë•- It’s very sound advice. A specialist can help you design a financial institution th a t not only looks good to your customers, but w o rk s well, too. Kirk Gross Company has built and remodeled m ore financial institutions than anyone in Iowa and our w o rk has received national aw ard recognition. W e k n o w how to design th e m b etter. W e k n o w h o w to build th e m faster. And w e can use local contractors to help build th e m fo r less. W e have the experience. W hen you’re ready to build or re m o d e l. . . call a specialist Call Kirk Gross Company. Kirk Gross Company 4015 Alexandra Drive Waterloo. IA 50704 319/234-6641 See a Specialist. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52 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 illM will be located at the West Roads office in India nola. M r. D avey has been em ployed by the bank since 1967, R- DAVEY working specifically in the ag loan department. 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 Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 Iowa. □ # # • ® 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. B. NICHOLLS M.PERRY 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 dent-commercial loans. Mr. Jehle has spent the past four years with the Iowa De p a rtm e n t of Banking as an exam iner. He K. JEHLE graduated from the University of Iowa with a BBA in finance. O 53 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 T 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 groups. The program schedule follows: Thursday, July 24 A.M. Couple’s Golf Tournament - Brooks Golf Course P.M. Noon 6:00 5:00 7:30 5:30 7:30 Registration 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] A.M. 8:30 RICHARD BERGLUND Exec. Vice President P.M. Noon 1:00 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 C.T. DOYLE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M. DUNCAN Northwestern Banker, July, 1986 54 Io w a N e w s Bank, Knoxville, Iowa Election of Officers, Announcements, Ad- # journment to Registrants’ Luncheon Saturday, July 26 A.M. 8:00 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, Ames. “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, Presiding 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 1981. 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 Northwestern Banker, July, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.M. 12:30 5:00 6:15 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, Walker. 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 1981. 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 has e lec te d its 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, B.J. JENSEN 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 C. president o f huC. SNYDER SNYDER man resources at Norwest Banks, Sioux City. # • • • ® 9 ® ^ 9 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 A- PL0EGER with a financial institution in Spen cer. O 55 FLEX-0-PAY. an important new profit center for your bank The unique Flex-O-Pay» computerized billing system was developed to solve one of the current problems faced by many bankers. How do you generate additional income from your present staff and equipment? This simple, flexible plan is easy to operate, yet it can become one of your most important profit centers. This is a computerized local billing/credit service that provides a consistent source of cash flow for your local business customers. You generate income for your bank through the discount on receivables. And you profit by the finance charges on accounts with balances that have been billed over 30 days. For complete information, call Toll FREE anywhere in Iowa . . . 1 800 772-2411 or call collect outside Iowa at 319-291-5415. Ask for LeRoy Bell or write The National Bank of Waterloo, RO. Box 90, Waterloo, IA 50704. - - T h e N ational Bank OF WATERLOO F.D.I.C. Insured up to $100,000 Subsidiary of Iowa National Bankshares Corp m § f,f https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, July, 1986 56 istration. He joined the company in 1983. 0 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 firm. <i * * * James W. Eiler has been elected executive vice president of First In terstate Bank of D es M oines, N.A. 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 J. EILER 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 company. Michael J. Timmins has been named vice p re s id e n t, f i * * * nance and trea_x • • M.J. TIMMINS surer. xHe joinedi 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 J.E. BURCH J. OLSON tingencies and customary condi- Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 of 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. 57 Theproblemwithmost bankinsuranceisthat itwasn't conceivedbybankers. There are farmers’ insurance companies and firemen’s insurance companies. 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 banks. 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. https://fraser.stlouisfed.org 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. m a* IowaBankersInsurance &Services,Inc. Northwestern Banker, July, 1986 58 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 Northwestern Banker, July, 1986 https://fraser.stlouisfed.org 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 Milo. 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, BOND SERVICE VS. BANK SERVICE Chances are, your bank has been exposed more than once to “bond service.” It’s transaction-oriented service from people who know bonds, not banks. So the advice you get too often goes no further than offerings and oc casional bids. Bond service is not what L. F. Rothschild, Unterberg, Towbin provides. Our specialty is BANK SERVICE.® Over 25 years of service that combines intimate knowledge of bonds with in-depth understanding of banks. BANK SERVICE views your portfolio in the same light as you do: As a crucial com ponent of your bank’s overall position. Not as an independent entity. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis That’s why before we make a recommendation we conduct a thorough study of your bank. Then our BANK SERVICE committee meets to discuss the Bank Report we’ve prepared specifically for you. The recommendations from the committee are tailored to your bank’s present position and future objectives in a chang ing marketplace. Our PMS system can help you monitor and manage your portfolio. We’ll introduce you to our Fixed Income Com puter Service, our investment banking group, our fixed income research, send you our news letter and invite you to appro priate seminars that we host in your area. All these services are de signed for one goal: To help you achieve your bank’s overall aims in a way no mere bond service can. So, while you may be get ting bond service, what you real ly need is BANK SERVICE. Call Stephen H. Kovacs, Managing Director, at (212) 412-2600. !H__________ L. F. ROTHSCHILD, UNTERBERG, TOWBIN, INC. BANK SERVICE® ■ 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. 1 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 1A a sk for. Even a n tic ip a te it ■A b e fo re y o u n e e d it. 3 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 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 m services, you a lre a d y k n o w m 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 . r 'x Financial Institutions Group NORWEST BANKS mmmmm aa^ma https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -G >G