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Newly-Elected State Officers

South Dakota


Federal Reserve Bank of St. Louis

Great Accomplishments

How to Generate
Non-Interest Income .
Through Student Loans


■ W Berchants National
Bank realizes how valuable
non-interest income can be
in keeping your bank
strong. So with your needs
in mind, MNB announces
a unique correspondent
service to enhance non­
interest income through
student loans.
Here’s how it works.
We will pay you a referral
fee for each Iowa
Guaranteed Student Loan.
The first loan made to a
student earns you 1.00% of
the loan amount. With each
additional loan to that
student, you’ll receive .50%
of the loan amount.


■ ^ o t e this example:
A student borrows $2500
for his or her first year of
college. MNB will pay you
1.00% of that loan amount
or $25. If the student
borrows the
same amount
the second
year, you
earn .50%
of $2500 or
$12.50. The
same $12.50
amount would
apply again for the
third and fourth
Your total non­
interest income
would be $62.50
for one student.

est of all, your bank
can perform a valuable
service to your community
by making a college
education possible for
young people.
So find out how
student loans can
improve your
income. Please
contact Jerry
Trudo. Or call
MNB’s Student
Loan Represen­
tative, Dana
or toll-free
ext. 739.
Strength of

Merchants National Bank
Cedar Rapids, Iowa 52401
Federal Reserve Bank of St. Louis

Member F D I C

is i


Jerry Trudo,
MNB Correspondent
1-800-332-5991, ext. 306

We look a fte r your custom ers.

You have th eir word on it.
■"ear American express--and I do mean dear,
Everyone knows that you can’t believe what you see/hear in


That is,with the exception of the advertisements you people
run.I have had first-hand experience¿with your particular brand
of "truth in advertising,“ and 1 wish that I could tell the
whole world how well you deliver on your promises.
Elsa A tkins, C hicago, IL.

he called American Express telling of our loss and were told that
within three hours new checks would be delivered to our door. And sure
enough, three hours later a courier was at the door with our checks.
We were very impressed with your service and have told many people
about your great response.
D av id R. Binkley, U n d e rw o o d , N D .

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Ben Poidom ani, B ay p o rt, N Y .

When you sell travelers cheques, you depend entirely
on the service provided by the travelers cheques company
for the well-being and security of your customer.

Express Travel Rc^Bd Services Company, I

That's why so many banks choose American Express
Travelers Cheques.

Federal Reserve Bank of St. Louis

Because when you sell American Express Travelers
Cheques you can rest assured th a t we look a fte r your
customers the same way you would. That means satisfied
customers, and that means repeat customers for all your
banking products.
You see, service is what we do best. You have our word
on it. And we have theirs.

They’re what your customers want .5


Wilbur T. Billington
Retires from Fed Service

JULY 1987


94th year


No. 1486


THESE exclusive photos of the officers of five state banker associations were

taken by the N o r t h w e s t e r n B a n k e r at the state conventions in May and June. Offi­
cers for the Nebraska, South Dakota, Colorado, Wyoming and Minnesota Bankers
Associations are shown. Photos of officers for the North Dakota, Montana, Wis­
consin and Illinois Bankers Associations, as well as those for the Iowa Indepen­
dent Bankers, will appear on the August cover. Identification of those pictures
from Minnesota, Colorado and Wyoming may be found with the convention
stories on the pages noted below.
The Nebraska convention was reported last month and their officers are, from
left to right: Immed. Past Pres.—C.G. Kelly Holthus, pres., First Natl., York;
Pres. — Donald E. Blaha, pres., First Natl., Ord.; Pres.-Elect— Harley D. Bergmeyer,
pres., Saline State, Wilber, and Exec. V.P.—Stan Matzke, Jr., Lincoln.
The South Dakota convention also was reported in last month’s issue and their
officers are, from left: Exec. V.P.—J.l. Milton Schwartz, Pierre; Pres.-Elect—Chris­
tine Schirber, exec, v.p., Dewey County Bank, Isabel; Pres. — Larry Ness, pres.,
First Dakota Natl., Yankton; Vice Pres.— David S. Birkeland, pres., First Bank S.D.
Sioux Falls, and Immed. Past Pres. — B. Michael Broderick, Jr., pres., First Ameri­
can, Canton.



Increasing electronic efficiency

Wisconsin community banker Gerald Talen relates his experience


Respect your management

But directors are still responsible, says Doug Austin


Nebraska ad campaign

New program seeks to educate the public


Guest editorial

Iowan discusses bankruptcy effects on banks



Illinois Conv. Report
Minnesota Conv. Report
Twin Cities
Wisconsin Conv. Report
No. Dak. Conv. Report
South Dakota
Wyoming Conv. Report
Colorado Conv. Report


Iowa Independents
Plan Convention
Des Moines
Index of Advertisers

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

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1486 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.

Banker, July, 1987
Federal Reserve Bank of St. Louis


Wilbur T. Billington, executive
vice president of the Bank Super­
vision and Struc­
tu re D ivision,
has retired after
35 years of ser­
vice with the
Federal Reserve
Bank of Kansas
City. For the
last 16 years,
Mr. Billington
h as been in W.T. BILLINGTON
charge of the
supervision and regulation of bank
holding com panies and s ta te
member banks, banking structure,
consumer affairs and loans to finan-^
cial institutions.
Mr. Billington joined the bank’s
research staff in 1952 and was
named to the official staff in 1958.
In 1963, he was promoted to vice^
president and senior economist. He
headed the business analysis area,
and later the financial analysis area
of the Bank’s Research Department.
In 1971, Mr. Billington became^
head of the newly created Bank
Supervision and Structure Division.
He was appointed senior vice presi­
dent over that division in 1973. Last
year he was named executive vice^
Succeeding him is Thomas M.
Hoenig, senior vice president, who
has been named to the bank’s man­
agement committee and has as­
sumed full responsibility for the
bank supervision and structure divi­

United Missouri Makes
Illinois Acquisition
United Missouri Bancshares, Inc.
has received approval from the Fed- 1
eral Reserve Board to acquire the
FCB Corporation, a multi-bank
holding company headquartered in
Collinsville, 111. The agreement will
be consummated after a 30-day1
waiting period.
According to the agreement,
United Missouri will purchase for
cash and promissory notes 100 per­
cent of the stock in FCB Corpora­
tion. The value of the transaction
based on quarter-end figures was
$28 million.
FCB Corporation has assets of ap­
proximately $164 million and owns
three banks with five locations.


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F/rsfBankers Securities
Federal Reserve Bank of St. Louis

200 Brick & Tile Building• Mason City, Iowa 50401
Toll Free - (800) 952-7899 • In Iowa - (800) 325-3030


Trans Union Credit
Information Gives Honors

Trans Union in 1985 as bureau man­
ager of the Maine division and re­
cently was named vice president/
general manager of the southeast
division/United Credit Bureau of
America, a division of Trans Union
in Atlanta, Ga. Mr. Munroe pre­
viously had extensive credit experi­
ence with firms in Pennsylvania and

Trans Union Credit Information
Company recently honored three of
its sales and management staff for
outstanding service.
Ed Pfeiffer, sales manager of the
Columbus (Ohio) division, was pre­
sented the Presid e n t’s
Award as 1986
Sales Manager
of the Year. The
United Missouri Bank
award is given
Announces Promotions
annually to the
United Missouri Bank of Kansas
sales m anager
N.A., has announced the fol­
who e x h ib its
lowing promotions and elections:
o u ts ta n d in g
In the trust department, Frank C.
le a d e rs h ip in
has joined the department
sale s p e rfo ras a vice president and corporate
trust officer. He joined the bank in
March after working for a financial
institution in Tulsa, Okla. He holds
a BA degree from the University of
California in Davis.
Mary Mallow has joined the trust
department as a corporate trust offi­
cer for bond trusteeship accounts.
She was with another local bank
before joining UMB in March and
holds a BA in Business Administra­
mance. He joined Trans Union in tion from Avila College in Kansas
1982 as a sales representative in City.
Timothy Eblen, with UMB since
Dayton and was named to his pre­
sent position in January, 1986. Pre­ 1984, has been named assistant
viously he was a sales representa­ trust operations officer. He has a
tive in the insurance industry for BA degree from Southwest Missouri
seven years and was a member of State University.
Peter M. Granat has been pro­
the Million Dollard Round Table.
Mr. Pfeiffer is a 1985 Trans Union moted to vice president and legal
Golden Circle Winner.
counsel in the legal department, pro­
Rick Hearn was presented the viding professional counsel to
President’s Cup Award as 1986 United Missouri Bancshares, Inc.,
Operations Manager of the Year, and all its affiliates. He holds a
based on his outstanding perfor­ bachelor’s degree from California
mance in exceeding his goals and his State College in Long Beach, Cal.,
previous year’s efforts. He joined and master’s and doctorate of law
Trans Union in 1986 after serving as degrees from the University of Mis­
director of credit services for a Phil­ souri School of Law.
adelphia department store. He was
R. Stephen Parris has been pro­
1985-86 president of the Consumer moted to assistant vice president
Credit Association of Pennsylvania, and trust counsel for the legal de­
New Jersey and Delaware. He is partment. He joined the bank in
operations manager of the Mid-At- 1981 and earned his law degree from
lantic/UCB Baltimore division.
the University of Missouri-Kansas
Scott Munroe, bureau manager of City.
the Maine division, was named the
Charles M. Benson, Jack Hylton
1986 Bureau Manager of the Year and Charles D. Dixon have been
for “steadily increasing unit volume named assistant vice presidents in
through team work and innova­ the commercial banking division.
tion.’’ He revitalized the Maine busi­ Mr. Benson, who is responsible for
ness from its unprofitable status business development, has a BA de­
under the previous owner and regis­ gree from Texas Christian Universi­
tered significant profit and revenue ty. Mr. Hylton, a BA graduate of
for Trans Union in 1986. He joined the University of Kansas, is respon­

Banker, Juty, 1987
Federal Reserve Bank of St. Louis

sible for generating corporate busi-1
ness in Kansas, Nebraska and Colo­
rado. Mr. Dixon recently joined the
bank and services accounts in
metropolitan Kansas City. He has a.
degree in ag economics and an MA
in finance from the University of
Missouri in Columbia.
In the investment department,
Mark Bailey has been promoted to^
an assistant vice president. He
joined the bank in 1983, holds a BA
degree from Westminister College in
Fulton, Mo., and an MA from Har­
vard Business School in Boston.

Continental Illinois
To Buy Arizona Bank
Continental Illinois Corporation,
Chicago, has agreed in principle to
purchase Grand Canyon State Bank
in Scottsdale, Ariz.
The proposed acquisition is sub­
ject to negotiation of a definitive
agreement and must be approved by
bank regulators and Grand Canyon
State Bank stockholders. The esti­
mated cash purchase price would be
$4.2 million, or 2.3 times Grand Can­
yon’s book value on March 31, 1987.
The Arizona location will be posi­
tioned to expand services to current
Grand Canyon customers, as well as
Midwestern private banking and
trust customers with second resi­
dences or retirement homes in the
greater Phoenix area. A full line of
investment and banking products
and services will be offered. Conti­
nental opened trust offices in Boca
Raton and Sarasota, Fla., in 1982.

Norwest Takes $200 Million
Addition to Reserves
Norwest Corporation, Minneapo­
lis, has taken a $200 million addition
to reserves for its international loan
exposure. As a result, the corpora­
tion indicated it will report a loss of
approximately $160 million for the
second quarter. Based on current es­
timates, Norwest anticipates a loss
of approximately $30 million for the
entire year 1987.
Lloyd P. Johnson, chief executive
officer, said: “This decision is ex­
tremely positive for Norwest’s fu­
ture. With the added reserves for in­
ternational loans and the expected
continued improvement in the quali­
ty of our domestic loan portfolio, our
annual provision for loan losses
should return to more normal levels.


•The team to trust for all your
•title and appraisal needs.

Proudly serving the real estate
* lending industry nationwide...
With a complete package of quality title, appraisal and loan closing services.
^ Receive our reports within 36 hours via R.E.X?, our telecommunications
delivery system.
For fast and accurate title and appraisal reports, choose the team to
trust. Choose Record Data and TRW.
For more information, call 1-800-321-1890, ext. 207.


©Record Data, Inc. 1987
TRW is the name and mark of TRW Inc.
R.E.X. is a service mark of Record Data, Inc.
Federal Reserve Bank of St. Louis

Record Data, Inc.
A Subsidiary of TRW Inc.
72 5 St. Clair Avenue N.W.
Cleveland, Ohio 44113
216-696-2110, ext. 207
National Toll Free
1-800 3211890, ext. 207

Northwestern Banker, July, 1987


AE Introduces Gold Gift Cheque

Increasing credit to a corporate client can be risky business.
Especially if that client is
- a rapidly growing company
- undergoing a corporate turnaround
- making a major acquisition
Now you can reduce your risk while increasing your lending
with Norwest Business Credit’s loan participation program.
Experienced specialists at Norwest Business Credit will
do their best to provide creative solutions for your client’s
credit needs.
With Norwest Business Credit’s Asset-Based Financing
Program, you’ll keep your client’s business, have an edge on
the competition, spend less time administrating, have more
time to develop new business...and reduce your risk.
Risky business? Good business.
Contact our New Business Department today at 612/372-7988.

Norwest Business Credit, Inc.
6600 France Ave. S., Suite 245
Edina, Minn. 55435

Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

fffH ff

MERICAN Express Travel Re­
lated Services Company, Inc. on
June 16 introduced American Ex­
press Gift Cheque, the Company’s
first new cheque in 97 years. An ele-.
gant alternative to gifts of cash or
personal checks, the gold-colored
Gift Cheque will be accepted like
cash at millions of locations, re­
funded if lost or stolen, and avail- (
able beginning this fall through
banks, credit unions and American
Express Travel Services offices.
The American Express Gift Che­
que features the familiar and simple {
signature and countersignature de­
sign of the American Express
Travelers Cheque, and will be of­
fered in denominations of $25, $50
and $100 at a fee of $2.50 (suggested)
retail price), regardless of the de­
Each American Express Gift Che­
que is enclosed in a gold envelope
with a distinctive card, which can be (
personalized by the giver. Refund
procedures for lost or stolen Ameri­
can Express Gift Cheques will be
similar to those for American Ex­
press Travelers Cheques, and imme-1
diate refunds will be available from
the same network worldwide.
The American Express Gift Che­
que is “a dramatic new entry into a
virtually untapped $45 billion mar­
ketplace — th a t’s the amount
Americans spend each year on
monetary gifts,” said Aldo Papone,
president and chief operating officer
of American Express Travel Related
Services Company.
The Company estimates that 69
percent of all adults give monetary
gifts each year. Of those, 53 percent
give cash, 30 percent give personal
checks, and 12 percent give gift cer­
tificates, Mr. Papone noted.
Ron K. Glover, president of
American Express Travelers Che­
que Group, U.S.A., said that Gift
Cheque is an excellent choice for any
occasion. More than 85 percent of
monetary gifts are given for seven
specific events: Christmas, birth­
days, graduations, weddings, anni­
versaries, M o th er’s Day and
Father’s Day. Mor than 65 percent
of all monetary gifts are given in
December, May and June.
‘‘All of our research shows Gift
Cheque has very strong consumer
appeal. We believe the American
Express Gift Cheque could precipi­
tate a new wave in gift giving,”
stated Mr. Glover.


Visa USA makes
the Plus System
even easier.
The Plus System network... the leader in shared
Automated Teller Machine systems, has gained a most
impressive industry advantage... an affiliation with
Visa U.S.A.
Charles T. Russell, president of Visa U.S.A. states,
“The affiliation of Visa U.S.A. with Plus System, Inc. brings
together the resources, experience and expertise of two
acknowledged industry leaders. Now financial institutions
anywhere in the U.S. and Canada can make a national network
decision with a new level of confidence and commitment.”
The Plus System network, long recognized as the premier
ATM network, has earned its reputation for excellence because
of an ongoing dedication to personalized service and the industry’s
highest security and technical standards.
Make the right decision today.. .join with Visa U.S.A.
in selecting the Plus System network. For complete in­
formation regarding membership, contact your local
Plus System financial institution or call Plus System, Inc.
at (303) 573-7587.

Federal Reserve Bank of St. Louis


Trans Union Credit Develops an
Early-Warning to Detect Bankrupts
T A NATIONAL press confer­
ence in New York last month,
Trans Union Credit Information
Company President Allen Flitcraft
introduced Trans Union’s newest
product called DELPHI™ CREDIT
INDEX. This new product is de­
signed to provide an early-warning
system to creditors on potential
bankruptcies before the credit is
Per Gothe, Trans Union’s director
of research and development, said
personal bankruptcy is America’s
number one consumer credit prob­
lem, accounting for nearly half of all
write-offs by retailers and lending
institutions. The number of bank­
ruptcy filings was up 37% last year
Addressing this problem, he said,
Trans Union Credit Information Co.
supplied copies of its database to
M anagem ent Decision System s
(M.D.S.) and worked with them in
building a model which would pre­
dict consumer credit worthiness.
M.D.S. provides statistically-based
decision support systems to man­
agers charged with granting con­
sumer’s credit. But, whereas indivi­
dual retailers, banks or other credit
grantors have various standards of
credit worthiness (differing from
grantor to grantor), Trans Union
used one measurable standard: a
filed bankruptcy.
M.D.S. technicians tried hun­
dreds of variables utilizing the data
in Trans Union’s credit files, using
the statistical technique of multi­
variate discriminate analysis. They
finally arrived at approximately 25
key credit activity characterists, to

which positive or negative points
are allotted, Mr. Gothe related.
The score of these variables pro­
vides a relative measure of a con­
sumer’s credit activity, much the
same way as an application process­
ing scorecard. But, while a credit
le n d er/g ra n to r’s
in tern ally
developed score predicts a con­
sumer’s ability to pay bills, Trans
Union’s score predicts a consumer’s
chance of filing bankruptcy. The for­
mula has shown a high degree of
reliability, being substantially more
reliable than the average behavioral
or credit scorecard.
In building the m athem atical
model, called DELPHI, historical
data from two groups of consumers
were used. One group contained con­
sumers who had filed for bankruptcy
in the past 12 months. The other
was a random sample of consumers
who had remained solvent. A bank­
ruptcy was defined as a consumer
who has filed for a non-business
Chapter 7 or Chapter 13 bankruptcy
Both sets were plotted on graphs
measuring the percentage of the
group against the scores achieved.
The greater the difference in the me­
dian scores for the two groups, the
more reliable is the model.
Using the cumulative percentage
in the two groups and the scores,
another graph was plotted to show
the maximum difference between
the two groups. This maximum dif­
ference shows how reliable the
model is and is called the Kolmogorov-Smirnov rating. D ELPH I’S for­
mula achieved a KS rating of 65.
This compares with the average KS

The Carpenters Pension Fund of Illinois, covering the State of
Illinois and the eastern half of Iowa, announced today a fin a n c­
ing program of new and rehabilitation co nstruction projects.
The Pension Fund is interested in providing financing of con­
struction and end loans at com petitive rates. The servicing of
these loans, ranging from $250,000 to $2,000,000, w ill be
handled through local banks. The program is available for com ­
mercial and residential projects.
For further inform ation, please contact: Frederick A. Westmark, Adm inistrative Manager, Illinois Employee Benefits Cor­
poration, 28 North First Street, Geneva, Illinois, 60134, 312/
Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

rating of 35 for a credit scoring for­
mula and the average KS rating of(
50 for a customized behavioral for­
The tim ely n atu re of Trans
Union’s files, which captures all of a
consumer’s credit history, is a pri-1
mary advantage in scoring and indi­
cating which consumers have degen­
erated credit since first issued their
bankcard, Mr. Gothe stated.
DELPHI can be used to review
all, or selected accounts in an exist­
ing portfolio, so the credit grantor
can cut off additional credit, or eli­
minate high risk bankruptcy candi­
dates. DELPHI is also available to
pre-screen the bankruptcy potential
of individuals on a given list or tape
before solicting their accounts.

Deluxe Check to Sell
Data Card Stock
H.V. Haverty, president and chief
executive officer of Deluxe Check
Printers, Inc., St. Paul, Minn., an­
nounced that Deluxe has entered in­
to an agreement for the sale of its
3,749,401 shares of Data Card Cor­
poration common stock to National
Computer Systems of Minneapolis,
Minnesota. The shares sold repre­
sent approximately 38 percent of
Data Card’s shares outstanding.
The sale, which is subject to review
by regulatory agencies under the
Hart-Scott-Rodino Act, is in con­
sideration of the issuance by Na­
tional Computer Systems of a
$45,000,000 subordinated converti­
ble debenture payable in 1992, bear­
ing interest at an average of 7.3 per­
cent per annum. The convertible
debenture will have a conversion
price of $20.00 per share.

Continental Illinois Adds
$500 Million to Reserve
Continental Illinois Corporation,
Chicago, announced it will add $500
million to its reserve for loan losses
in the second quarter for loans to
certain less-developed countries
The addition will bring the re­
serve to approximately $970 million,
or 5 percent of total loans, and es­
tablishes a reserve of approximately
29 percent of cross-border outstand­
ings and commitments to 17 coun­
tries after considering previous
charge-offs. The remaining reserve
for all other loans will amount to ap­
proximately 1.7 percent of such out­


dent, Norwest Bank, Sioux City, la.,
and Roger C. Solheim, senior vice
president, Norwest Bank, Norfolk,

•Norwest and Sallie Mae Will Provide
$200 Million for Law Student Loans
K t ORWEST Corporation and the
9 I tI Student Loan Marketing Asso­
ciation (Sallie Mae) announced June
24 they have entered into an agree­
ment that will provide nearly $600
million to fund education loans for
9 law school students nationwide over
the next three years.
Under the agreement, Norwest
will originate the loans and Sallie
^ Mae ultimately will purchase them.
9 The agreement is the largest pur­
chase commitment ever for Sallie

RMA Group Elects
The Siouxland Group of Robert
9 Morris Associates elected new offi­
cers at their recent annual meeting
held at the Marina Inn in South
Sioux City, Nebr.
The elected chairman was Donald
M. Acker, vice president, Security
National Bank, Sioux City, la.; Vice
Chairman—Michael J. Schumacher,
vice president, Western Bank, Sioux
^ Falls, S.D.; Secretary—Douglas A.
Schmidt, vice president, First Na­
tional Bank, Sioux City, la.; Trea-

Mae, the nation’s major secondary
market for student loans.
Vicki P. Ripley, Sioux Falls, vice
president and manager of student
loans for Norwest Corporation, said
all loans issued under the $595 mil­
lion program will be managed
through Norwest Bank South Dakota-Sioux Falls.
Ms. Ripley said the commitment
from Sallie Mae “assures adequate
funds to assist an estimated 100,000
law school students.’’
surer—Steven A. Sahly, vice presi­
dent, Norwest Bank, Sioux Falls.
In addition, six bankers were
elected to the Groups’ board of di­
rectors. They are: James D. Hop­
kins, senior vice president, Commer­
cial Bank, Mitchell, S.D.; John L.
Johnson, executive vice president,
First Bank, Worthington, Minn.;
Bruce M. Kolbe, executive vice
president, Pioneer Bank, Sioux City,
la.; Mary Lynn Myers, Senior vice
president, First Bank, Sioux Falls,
S.D.; Thomas Pohlman, vice presi-

Joins Moebs Services
Moebs Services, Lincolnwood,
111., announced recently Kenneth A.
W illiam s has
joined the firm
as executive vice
president. Mr.
Williams has a
b ro a d
ground in finan­
cial services hav­
ing worked 10
years for Citi­
corp S a v in g s
and five years
for Household Finance.
He will have administrative, semi­
nar and product duties. With Mr. William ’s extensive lending back­
ground, he will be primarily respon­
sible for L.O.A.N. - Loan Officer
Assistant Network - the powerful
PC-based loan pricing software pro­
gram. This software prices loans ac­
curately and profitable and is a de­
sign tool to implement new loan

How would you like to build consumer loan volume
successfully for ten years — without a single loss?
It can be done... with support from Insured Credit
Services. In fact, since 1954 ICS has helped nearly
2,000 financial institutions successfully build highly
profitable consumer credit operations. By providing
default insurance protection on property improve­
ment and home equity loans and secured revolving
lines of credit, ICS has taken all the risk out of this
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Now you can move aggressively in these con­
sumer lending fields without worrying about the
safety of a single loan — secured or unsecured!
Find out how ICS can provide you with a
competitive advantage in this exciting field.
To receive a copy of our new brochure contact
William F. Schumann, President at 312/621-9400.


Write or call to receive
your copy today.

307 N. Michigan Ave., Chicago, IL 60601 • 312/621-9400
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987



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
b ciirks
your portfolio in the same light
as you do: As a crucial com­
ponent of your bank’s overall
position. Not as an independent

Banker, July, 1987
Federal Reserve Bank of St. Louis

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

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




Increasing Electronic Efficiency
at the

N orthw estern B anker

Interview with
First Bank & Trust
Menomonie, Wis.

Gerald A. Talen

m ABOUT FIRST BANK & TRUST: Founded in 1874, First
9 Bank & Trust today has assets of more than $46 million, up
22% in the last three years. A well-managed institution
which was rated 36th in the nation for strength and securi­
ty by The Holt Investment Advisory, the bank operates a
drive-in facility in a separate building in Menomonie and
lit branch offices in North Menomonie, Downsville and
Wheeler, Wis. The Dunn County area served by the bank is
a stable community with a diverse economic base, in­
cluding the University of Wisconsin—Stout, numerous
manufacturing plants and the dairy industry.

A. Talen of First Bank & Trust of Meno­
monie, Wis. usually talks like the chief executive

officers of other community banks. But every once in a
0 while he slips into the vernacular of the computer

You might hear him say: “The NCR 9300 operates
with a 32-bit word length which permits faster pro­
cessing of data. And the Banker ‘807Thrift ‘80’ system
# is designed for interactive operations. First Bank &
Trust is taking advantage of these capabilities in a
number of ways.
“We were a first site, for example, for MICR capture
of incoming cash letters from the Federal Reserve
# District Bank in Minneapolis, Minn.,’’ he continues as
he shifts to banking terminology. “We are also memo
posting cash letters and other electronic and proofing
transactions on a concurrent basis, reducing float by
up to a day.
“These are applications which many big banks are
not doing, primarily because of the problems involved
Federal Reserve Bank of St. Louis

in managing large software projects,’’ Mr. Talen adds.
“However, we have been able to implement them suc­
cessfully because our 9300-based operations are so
easy and simple to manage.’’
A technical background is not necessary for a top
bank executive to be highly successful. But it is helpful
if he or she plans to lead the way to a new level of elec­
tronic banking efficiency. “We can do almost anything
electronically that a big bank can do and, in many
cases, we are doing more than a lot of big banks are do­
ing at less cost,” Mr. Talen says.
Data Processing Moved In-House
Up until the early 1980s, First Bank & Trust han­
dled all of its data processing through a correspondent
bank in Milwaukee. But increasing communications
costs become a growing problem with the operation of
seven dedicated, leased lines. Three of these lines
served on-line teller machines and another three tied
into CRT terminals at the main office, a drive-in and
the North Menomonie branch. The seventh line is
hooked up to an ATM at the drive-in facility. No leased
lines were run to the Downsville and Wheeler branches
since these were small offices that operated off-line.
First Bank & Trust, therefore, began looking for a
system which could be installed in-house. Based on
this investigation, the bank installed its 9300 in Sep­
tember, 1984. Providing two megabytes of main
memory and more than 200 megabytes of disk storage,
the system operates on-line with 14 teller machines
and 17 CRT terminals installed at its main office,
drive-in facility and North Menomonie branch office.
The on-line teller machines are run using Telebanker
Northwestern Banker, July, 1987


software from Advanced Computer Systems (ACS) of
Dayton, OH.
At the same time, First Bank & Trust became the
first bank in the country to install a Banker “80 ”/
Thrift “80“ system. The bank converted its DDA
operations to the new system in September, followed
by conversions of savings, CDs, general ledger, and
commercial, installment and real estate loans by June,
“In-house implementation of the 9300 in place of
former service bureau operations has enabled us to
achieve greater efficiency while minimizing the use of
manual subsystems,” states Mr. Talen. “We are also
able to produce more timely reports which are tailored
to our specific needs. Every morning, for example, we
obtain a current general ledger report.
“We are now a $46 million-plus bank but have fewer
personnel than in 1983 when our assets were only $38
million,” he noted. “Our full-time staff has been re­
duced from 42 to 31 even though we’ve converted to inhouse operations. In addition, communications are
more efficient and problem-free and leased line costs
have been cut from $2,200 to $180 per month.”
Achieving Maximum Efficiency
First Bank & Trust has used the 9300 system to
achieve increased efficiency, according to Data Pro­
cessing Manager Mark Steidinger. “We are trying to
get as much out of the system as we can by pushing
everything through it,” Mr. Steidinger states. “We are
automating or electronically communicating every­
thing. ’’
One example of this automation effort is the pre­
viously mentioned MICR capture of incoming cash let­
ters from the Minneapolis Federal Reserve District
bank. Each morning before doors open, First Bank &
Trust calls the Federal Reserve Bank via a 4800 baud
dial-up modem. The Federal Reserve bank transmits

FIRST BANK & TRUST is trying to get as much out of its 9300 sys­
tem as possible by automating or electronically communicating
everything, explains Data Processing Manager Mark Steidinger
who is shown here discussing use of the PC6 Personal Computer
for platform automation with Rachel Dolby.
Banker, July, 1987
Federal Reserve Bank of St. Louis

all MICR data from the previous evening to the Meno-^
monie bank where it is captured on disk. Normally in­
volving 1,000 to 1,500 items a day, the MICR data is
immediately memo posted and a report is produced for
comparison with a summary which is received later in
the day along with items from the Federal Reserve^
“This MICR capture and memo posting operation
cuts float by a day,” Mr. Steidinger points out. “It
also reduces the need for proofing operations.”
Another example of automation at First Bank
Trust is total on-line operation of two ATMs, one in­
stalled through-the-wall in the bank’s drive-in facility
and the other operated in a free-standing mode in a
local Super America convenience store.
First Bank & Trust was the first bank in the country fl|i
to use ACS networking software on a 9300 system to
interface its ATMs with a statewide switch. Serving
Wisconsin’s TYME ATM network, the statewide
switch is operated by Quantum, a division of Grey­
hound based in Minneapolis. The Quantum switch, inf)
turn, is interfaced with the INSTANT CASH ATM
network in Minnesota and the international CIRRUS
ATM network.
Customers of First Bank & Trust, therefore, are able
to access their accounts at any one of more than 10,000^
ATMs worldwide. All ATM transactions are trans­
mitted to the Quantum switch which checks not only
for valid cards but available balances on the 9300 sys­
tem before authorizing transactions.
“Our ATM operations are totally on-line,” Mr.^
Steidinger relates. “All debits are immediately made
and reflected in actual available balances.”
First Bank & Trust also processes all Automated
Clearing House (ACH) transactions electronically on
the 9300 system. Consisting of Social Security, payroll *
and insurance payments and amounting to as many as
700 items a day, these transactions are received via
dial-up phone lines from the Minneapolis Federal Re­
serve bank in the same way as cash letters. Trans­
actions are memo posted immediately after they are re­
ceived, providing better service to customers in terms
of Social Security and payroll payments while reducing
float by a day on insurance payments.
“We’re able to memo post ACH transactions faster
than big banks,” comments Mr. Steidinger. “Many big
banks, in fact, still can’t perform this function.”
Software Enhancements Used
Several software enhancements have also been im- q
plemented by First Bank & Trust as part of its auto­
mation efforts. An ACS asset/liability management
system, for example, is run on the 9300. Capable of
directly accessing data in Banker “80’’/Thrift “80,”
the system can be used at any time to determine the £
current status of assets versus liabilitites. Further­
more, the parameter-driven system can be used to play
“what-if” games designed to improve management
and control capabilities.
Another enhancement is an automated call report f
system obtained from Independent Bank Software,
Abilene, Tex. Reducing the time required to produce
call reports from a month to as little as a day, this
system generates reports on the 9300 in an FDIC-approved format, eliminating the need for retyping.
A credit analysis program is used to make faster,

more comprehensive determinations of disposable in­
come available to loan applicants. Based on a standard
spreadsheet package which was internally tailored to
specifically meet the bank’s credit analysis needs, the
program is run on a standalone basis on any one of four
personal computers.
First Bank & Trust also operates these four PC6s in
a network with the 9300 to achieve total platform
automation using “Branch Manager,’’ a state-of-theart system from North American Financial Services,
Ltd., St. Petersburg, Fla. Completely interfacing with
Banker “80’’/Thrift “80,“ this system is making it
possible to achieve increased sales productivity, im­
proved cross-selling capabilities and faster, more accu­
rate operations, according to Mr. Steidinger.
“The menu-driven system enables us to display all
of our products—DDA, savings, CDs and loans—on a
PC screen,” he states. “This permits comparisons be­
tween similar products and cross-selling of different
“When customers select products, the system auto­
matically prints out all required documents, including
signature cards, account agreements and loan papers,”
he points out. “Data is simultaneously transmitted to
the 9300 to create a new account.
“The end result is that we’re able to provide faster,
better customer service while saving officer time,” the
data processing manager sums up. “An installment
loan, which previously took 1Vi hours to handle, for in­
stance, is now processed in only 10 to 15 minutes. Cur­
rently operating in our main office, the system will be
implemented in branch offices in the future.”
Most recently, First Bank & Trust installed an
7770-3000 proof machine. This unit is helping to speed
up proofing operations because it is twice as fast as the
bank’s previously used 7750-DDPS proof machine.
But, even more important, the new proof machine
provides concurrent, electronic memo posting of each
batch of items following proofing. This capability is
being used to memo post incoming cash letters con­
taining 6,000 to 12,000 items which are received from a
small, regional clearing house. In addition, items re-

Duane W. Acklie Named
• To USO World Board





Duane W. Acklie, president and
chief executive officer of Crete Car­
rier Corporation of Lincoln, Nebr.,
has been named as a member of the
USO World Board of Governors,
USO’s governing body. His election,
along with 19 other prominent busi­
ness and government leaders, was
officially announced by Dennis P.
Long, USO chairman, and Charles
T. Hagel, USO president, at the an­
nual meeting of the USO World
Board in Washington, D.C.
Mr. Acklie also will serve on the
Resource Development Committee
of the USO World Board. He will
lend his expertise in business,
governmental and legal affairs to
assist USO in the development of
fundraising policies and programs.
Federal Reserve Bank of St. Louis

FIRST BANK & TRUST was a pioneering site for MICR capture of
incoming cash letters from the Federal Reserve Bank in Minnea­
polis. Cash letters and other transactions are memo posted on a
concurrent basis, reducing float by up to a day.

ceived at teller windows are proved and concurrently
memo posted throughout the day.
Low Operating Costs
“A recent book called ‘Handbook for Banking Stra­
tegy’ generally indicates that average operating costs
per deposit and loan account are lowest for banks with
assets in the range of $25 to $50 million,” sums up
Gerald Talen. “This is contrary to what one might
think from the standpoint of economies of scale but it
appears to be representative of our experience at First
Bank & Trust.
“It is our belief that we will be able to maintain
these low operating costs as we grow because we have
the capability to easily and efficiently expand the 9300
system with additional memory and disk storage capa­
city,” the chief executive officer concludes. “ In addi­
tion, we enjoy good support and are part of a large, ex­
perienced user base which can be of great benefit in
achieving economical future growth. ’’

Previously, Mr. Acklie was chair­
man of the board of Shaffer Trucking,
Inc., in New Kingstown, Pa. He is
presently chairman of the board of
the Bank of Norfolk, Norfolk, Nebr.;
chairman of the board of Packers
Management Company, Omaha,
Nebr.; and serves on the boards of
B a n k e rs L ife In s u ra n c e of
Nebraska, Lincoln Telecommunica­
tions Company, Lincoln Telephone
& Telegraph Company, all of Lin­
He also serves on the advisory
boards of Duncan Aviation, Inc. and
Peoples Natural Gas and is an active
member of numerous professional
Mr. Acklie earned his B.S., L.L.B.
and J.D. degrees from the Universi­
ty of Nebraska, and was admitted to
practice before the bars of Neb­

raska, Federal and U.S. Supreme
Court. He has practiced law in Neb­
raska for several years and served as
a Lieutenant in the U.S. Army Coun­
ter Intelligence Corps in Europe. He
also is still active in the family farm­
ing business at Norfolk, Nebraska.

Harry Mitiguy Dies
Harry R. Mitiguy, president of
the Vermont Bankers Association
and treasurer of the American Bank­
ers Association 1983-85, died recent­
ly, it was reported by A B A Bankers
Weekly. Mr. Mitiguy had been presi­
dent and CEO of Howard Bank,
Burlington, Vt., since 1974. Prior to
that he had served 16 years with the
Federal Reserve Bank of Boston as
an ag economist, and later being
elected senior vice president.
Northwestern Banker, July, 1987


Respect your *
management .
Special R e ad in g for
D irectors, M a n a g em en t

...but don’t trust them


One of the most important, if not the most important, responsibilities you have, as a member of the ®
board of directors, is to hire, retain, and compensate
fairly, the senior management of your institution.
President and CEO
Honest, ethical, and competent senior management is
Douglas Austin &
the key to the survival of your institution since indiviAssociates, Inc.
duals who are interested in management and are being 9
Toledo, Ohio
compensated fairly while engaged in a highly respon­
sible career with ample job satisfaction and social gra­
tification can be your best line of defense against po­
Department of Finance
tential and/or actual liability of the operations of the ^
College of Business Administration
You should respect your senior management. You
The University of Toledo
hired the senior management and, hopefully, they
Toledo, Ohio
are competent. If they are not competent, you should
have replaced them with more competent individuals. ^
NTERACTION between a board of directors, a com­
You should respect their professional competency,
mercial banking organization and senior manage­
their integrity, honesty, and ethical values. You should
ment may take one of three scenarios:
also encourage them for continued banking education,
1. Board of directors runs the senior management;
managerial and administrative educational skills, and
2. Senior management, notably the president and
interpersonal relationships. You, as members of the £
C.E.O., runs the board of directors; and
Neither the senior management nor the board of board of directors, are not the day-to-day managers of
the institution, but are the overall supervisors of the
directors controls the situation.
commercial banking institution on behalf of the share­
Corporate and managerial theory indicates clearly
holders. If you do not respect your management, you
that the board of directors supervises and directs the
should eliminate them and replace them with ones you £
senior management, since the directors, utilizing dele­
do respect. Those whom you respect, you should en­
gated power from the shareholders, are responsible to
courage to improve themselves. Through self-improve­
the shareholders for the safe and solvent operation of
ment they will improve the operations, efficiency, pro­
the corporation, including the actions of the senior
fitability, and safety/solvency of your institutions.
You should encourage them to not only improve 0
Unfortunately, theory and reality are not always
but to hire and promote from within
identical. Whether it is the industrial or the financial
through encouraging younger officers and staff mem­
institutions environment, many corporations today
bers to excel. They should be provided with a working
are run by management, not only from the day-to-day
climate capable of strengthening your management
standpoint, but also from the supervisory and direc­
and staff personnel within the institution. The appro- 0
torate standpoint. In this case the directors, being un­
priate environment will permit your financial institu­
familiar and uncomfortable with the industry they are
tion to operate smoothly and will encourage profes­
supposed to be directing, have abdicated their respon­
sional managerial attitudes and a proper atmosphere
sibilities and authority to the senior management. For­
for professional development. Respect of your senior
tunately, in most cases, this abdication has not re­
management will trickle down through the staff and 0
sulted in financial disaster to the corporation and
your senior management, if appropriately trained and
potential or actual liability to the directors themselves.
astute, will develop an internal respect/rapport with
On the other hand, there are a significant number of
their staff and junior officers that will assist in the suc­
cases per year within the financial institutions indus­
cessful operation of the institution.
try to examine the question of the interrelationships
Respect and trust are not the same thing. As noted •
between senior management and the board of direc­
above, you should respect your senior management,
Written especially for

T he N orthw estern B anker


Banker, July, 1987
Federal Reserve Bank of St. Louis


“Successful management of your commercial banking organi
zation depends upon a series of checks and balances which
mpermit you to respect your senior management and staff,
while at the same time not trust them explicity.”_________












especially your president, executive vice president(s),
and senior vice presidents(s). However, as directors of
the institution, you should not trust them. Trust
means to place all of your faith in and, unfortunately,
abdicate your responsibilities to a group of individuals
who are by theory, and should be in reality, subser­
vient to the board of directors and accountable to the
board of directors for everything they do. Trusting
senior management means in reality that you have ab­
dicated your authority to the senior management and
have become sheep following the shepherd or simply
“yes” persons to their desires.
A review of the FD 1(J statistics on the failure of
banks up until recent years indicated clearly that 70
percent of all bank failures were caused by inappro­
priate managerial activities, most notably embezzle­
ment, fraud, misappropriation of funds, and self-dealing. It should be noted that in some of these cases out­
side directors were in conspiracy with the inside senior
management. Given the events of today, when most
commercial bank failures are purported to have been
more economic and financial in nature, especially in the
states where ag and oil patch problems have exacer­
bated past lending practices, and where no embezzle­
ment, fraud or self-dealings are noted in the public an­
nouncements, there are still a significant number of
cases where senior management has taken advantage
of its position and a lack of accountability and review
of the board of directors in order to financially weaken
a commercial banking organization through theft,
fraud, embezzlement, misappropriation of funds, misapplication of funds, self dealing, and illegal and un­
ethical activities.
This discussion does not have to be limited to only
those cases where the commercial bank and/or holding
company fails—this type of analysis applies to all
situations where members of senior management have
“stolen” significant funds from the institution and
have caused claims against bonding companies, litiga­
tion against shareholders and/or directors, and have re­
sulted in administrative orders from regulatory agencies, weakened financial conditions, personal and pro­
fessional embarrassment, and tarnished the reputa­
tions of the board of directors and remaining manage­
Series of Checks and Balances
Successful management of your commercial banking
organization depends upon a series of checks and
balances which permit you to respect your senior man­
agement and staff, while at the same time not trust
them explicitly. Appropriate funding of these checks
and balances, along with managerial and administra­
tive review on behalf of the board of directors will pro­
tect the shareholders and the board of directors from
most attempts to defraud or steal from the banking in­
1. The Accounting System—First of all, it is neces­
sary to have a competent accounting department, con-
Federal Reserve Bank of St. Louis

troller (or cashier), or financial vice president of the
commercial banking organization. The accounting
staff should be competent in current bank accounting
and should be trustworthy and ethical. The senior
management who was responsible should have been
trained in sophisticated accounting techniques and, as
time goes on, he or she should be exposed to continuing
accounting education.
2. The Internal Auditor—The second check in the
system of checks and balances is a competent internal
audit staff. The smaller the bank, the more you have to
rely on the single internal auditor. This individual
should be one of the smartest people that you have on
staff, but with a caveat, that the internal auditor may
be a source of possible embezzlement, fraud or misap­
propriation of funds if he or she is the only individual
permitted to operate throughout the bank and have ac­
cess to all bank records.
If you can only afford one internal auditor, then you
might consider it prudent to employ an external audit
staff on a periodic unannounced basis to act as an in­
ternal auditor. This may permit for the internal audit
feature to be accomplished without running the risk of
the internal auditor going south with the funds. In the
past five years, to this author’s knowledge, six of his
clients have had a problem with embezzlement of bank
funds by a single internal auditor. Therefore, if you
utilize only an individual auditor, be very careful of the
selection, training and accountability of such auditor.
If you can afford an internal staff, that being two or
more people, this would be preferable. In fact, several
small, individual community banking organizations
might hire one or two people to act as an internal audit
staff for several banks. Although this would not be a
full-fledged CPA firm employed as an internal auditor,
this would accomplish the same effect and, therefore,
permit for a cost justified internal audit.

“An internal audit staff must report
directly to the board of directors, not
to the senior management of the
If you are able to afford an internal audit staff,
please keep in mind that the internal audit staff must
be up-to-date in bank accounting and, most important­
ly, they must report directly to the board of directors,
not to the senior management of the bank. Realistical­
ly, the proposed changes, purported violations of law,
or other matters which must be remedied by the man­
agement and implemented by the staff of the bank
should be downstreamed by the board of directors
through the senior management to the staff of the
Internal audit staffs are caught between a rock and
a hard place. They report directly to the board of direc­
tors, but they work with the management of the bank
Northwestern Banker, July, 1987

on a day-to-day basis. However, make sure, as direc­
tors of a commercial banking organization, that the in­
ternal audit staff reports directly to you on a frequent
and regular basis, and has the full support of the board
in order to accomplish what is necessary.
If the senior management is unhappy about the in­
ternal audit staff, then either you have a problem with
senior management, or your internal audit staff is not
capable. Senior management should realize that the in­
ternal audit staff is utilized as a checks and balances,
not only to the board but also to the senior manage­
ment and staff. If your senior management gives you a
problem with the internal audit staff, it is time to be
concerned about your senior management.

“The certified external audit can be a
third standard in sharing the checks
and balances.’’
3. External Audit—Recent pronouncements by L.
William Seidman, chairman of the FDIC, indicate
clearly that there is a movement towards requiring cer­
tified external audits of all commercial banks, regard­
less of size, or number of shareholders. Today, less
than a third of the commercial banking organizations
in the United States have certified audits. The certified
external audit, accomplished by a “competent” exter­
nal auditor, can be a third standard in sharing the
checks and balances. As one can tell from the litigation
pending and accomplished in the banking industry
over recent years, not all external audits are as com­
petently accomplished as they could be, but in most
cases, with over 4,000 banks having some form of an
external audit, the number of litigations is small in
relation to the total number of certifications, reviews,
or compilations.
Most commercial banking organizations under $200
million in size have a tendency to ignore the certifica­
tion of their financial statements through the utiliza­
tion of an external outside auditor because of cost.
However, the $15,000-$50,000 cost of an annual exter­
nal audit, depending upon the size of the financial insti­
tution, may be the least you can spend. Can you visual­
ize what it would cost per director to protect them­
selves from litigation if it turns out the financial
records of the bank have been imprudently or inac­
curately compiled, or major embezzlements, frauds,
misappropriations/misapplication of funds, or conflicts/self-dealings have taken place which should have
been caught by a competent external auditor? All you
have to do is look at the litigation costs compiled by
the defense attorneys and the direct costs to commer­
cial bank directors for litigations that have taken place
over the last 5-6 years. The figures clearly indicate that
the $15,000-$50,000 cost of the external audit may be a
cheap price to pay for additional checks and balances.
If you are concerned about cost, choose your exter­
nal auditor by a bidding process. Make sure the firm’s
annualized fees are predicted for several years in the
future, so that they do not offer a loss leader bid for the
first year and then raise the price for the second and
third year of the engagement. Furthermore, make sure
they have a free hand to be able to audit your financial
institution. Believe me, after they have made recom­

Banker, July, 1987
Federal Reserve Bank of St. Louis

mendations through their management letter, correct
everything that is wrong so they never have to worry
about the same problem the second time around.
In case there is some confusion, utilize an external
audit to protect you from a financial standpoint.
Whether you use their managerial service or not de­
pends upon what they find, and whether their services
are better than financial consultants/attorneys/other
professional firms. They may be excellent in external
audit, but may not be as competent in the area of man­
agerial services, so always make sure that you have
shopped around for the most competent assistance you
can find.
4. Federal and State Regulatory Examinations—The
state and federal regulatory examiners who visit you
on at least a yearly basis (hopefully) also can assist you
with checks and balances to dissuade fraud, embezzle­
ment, misappropriation of funds, misapplication of
funds, or self-dealing transactions by senior manage­
ment and/or directors. However, it should be noted
that due to the immense problem bank situations that
are located predominantly in the southwestern and
central states, there are about as many problem banks
in the United States as of year-end 1986 as there were
FDIC examiners. There is a growing trend for federal
banking regulatory examiners to examine “good
banks,” that is CAMEL 1 and 2 banks, less often than
in the past, and concentrate on CAMEL 3, 4 and 5.
Furthermore, cost constraints prohibit state banking
regulatory agencies from covering all of their banks
each year. Therefore, don’t expect the state or federal
banking regulatory examiners to arrive in time to save
you—in a lot of cases they arrive in time to close the
It is appropriate to utilize all of the information that
arises from a bank examination, correct all the defi­
ciencies, take into consideration everything they have
said to you, and not ignore their recommendations/
findings. All directors should read every examination
report before signing off on same, and if an administra­
tive order is required (i.e.; a memorandum of under­
standing), a letter of agreement (the Comptroller’s of­
fice), or a cease and desist order, all directors should
realize the importance of such an order, and make sure
that all the corrections are made as quickly as possible.
This should be done regardless of what senior man­
agement says about the quality of the examination or
the personality of the examiners.
In a later column, I will discuss, in detail, what you
should do with administrative orders, or not do, but
let’s have that one for another issue. Ju st keep in mind,
at this time, that any administrative order is far
harder to get off than it was to get on and, therefore,
you spend a great deal of time in attempting to get off
the administrative order. You can only do so by cor­
recting everything that the state and/or federal regula­
tors want corrected.
One last note—don’t expect the state or federal regu­
latory agencies to protect you from senior manage­
ment or staff members in case of fraud, embezzlement,
etc. This might have been appropriate 10 years ago,
but today, you’d better count on your internal audit
staff or external audit staff to perform this responsiRESPECT YOUR MANAGEMENT. . .
(Turn to page 49, please)


Now Available............

1987 Bank Directories
Accurate, up-to-date information on every bank
in the state, concerning:
• Officers and Directors
• Deposits, Loans, Assets and other figures
• Other offices away from main bank
• Addresses and phone numbers
• Departments within the bank and their officers
• Correspondent banks used



Nebraska — Nearly 200 pages.
Iowa — Over 300 pages.

copies of the 1987 edition of the
Send me.
IOWA Bank Directory at $14.00 per copy.
copies of the 1987 edition of the
Send me.
NEBRASKA Bank Directory at $9.00 per copy.
Our check is enclosed for $

.(add state tax:
Iowa @ 4%
Nebr. @ 4%)

Company Name

for reading or copying (pages
3 1/4” x 6 V2 ”).

Officer Name
P.O. Box or
Street Address
City and State

O rd e rs s h ip p e d by re tu rn m a il


Area Code

1535 Linden St., Suite 201
515 - 244-8163
Federal Reserve Bank of St. Louis

Des Moines, Iowa 50309


1987-88 OFFICERS ELECTED—Representing the Illinois Bankers Association for the com­
ing year are, from left: Vice Pres. — David L. Webber, sr. v.p., Harris Tr. & Sav., Chicago;
Treas.—Wilbur D. Meadows, pres., Natl. Bank, Canton; Exec. Committee Member— Rich­
ard K. Ostrum, pres., Uptown Natl., Chicago; Pres.—Jack A. Emmons, pres., Security B&T,
Mt. Carmel; Exec. Vice Pres.—William J. Hocter, Chicago, and Immed. Past Pres.—Charles
E. Waterman, chmn., South Holland Tr. & Sav.

Emmons to Head IBA
Associate Publisher
ARKING its 75 th year, the Il­
linois Bankers Association met
in Peoria for the 1987 annual con­
vention last month. Nearly 600
bankers and spouses gathered to
hear nationally known speakers and
to discuss new ideas during a first
ever, “Banking Leadership Assem­
bly” roundtable discussion. In addi­
tion, participants could choose sev­
eral workshops covering a broad ar­
ray of topics.
During the convention, associa­
tion officers were elected for the
1987-88 term. They are: P residentJack Emmons, president and CEO,
Security Bank & Trust Co., Mt. Car­
mel; Vice Pres.—David Webber, se­
nior vice president, Harris Trust &

Savings Bank, Chicago; Secretary—
Randall Killebrew, president and
CEO, First National, Petersburg;
Treasurer—Wilbur Meadows, presi­
dent and CEO, National Bank of
Canton; Past Pres.—Charles Water­
man, chairman and CEO, South Hol­
land Trust & Savings Bank, and
Exec. Vice Pres.—William Hocter,
Mr. Emmons began his banking
career in 1961 as a note teller at the
Security Bank & Trust in Mt. Car­
mel, his hometown. He was elected
president of the bank in 1972 and
has been active in the community’s
chamber of commerce, YMCA and
Lions Club. Mr. Emmons has served
on the IBA’s Committee on Bank
Directors and has chaired the Com­
mittee on Federal Legislation and

General Session
Outgoing President Chuck Water­
man called the 1987 convention to
order amid a colorful presentation of
not only the “Star Spangled Ban­
ner” but a tribute to a variety of|
flags that have flown over this coun­
try. Mr. Waterman, calling the con­
vention “part of an ongoing effort to
prepare for the futre,” introduced
the first general session speaker,(
Honorable John Tower, U.S. Sena­
tor (R-Tex.) and probably best
known as chairman of the Tower
Mr. Tower, whose presentation (
dealt with national security and the
role of Congress, said, “ I am con­
cerned with the gradual encroach­
ment of congress upon the presi­
dent. Congress cannot afford to for-*
mulate a foreign policy based on na­
tional interest,” he said. Mr. Tower
stressed that the trend towards con­
gressional intrusion m ust turn
around. “Checks and balances were*
not designed to check only the presi­
dent, but congress as well,” he said.
Commenting on the Tower Com­
mission’s findings, Mr. Tower said
he is convinced that the president *
was not aware of the funds diver­
sion. He cautioned that their cannot
be an undermining by congress of
the president. “Congress is in need
of reform,” he concluded.
“Accuracy first, then momen­
tum ,” is how the second general ses­
sion speaker described his presenta­
tion on strategic planning. Peter
Johnson, who is a strategy consul- *
tant from Newport Beach, Califor­
nia, told his audience, “Organiza­
tions that think strategically, plan
comprehensively, and implement in­
tensely will almost certainly eclipse 1
the rest of their industry.” Mr.
Johnson called today’s consumeroriented approach, or “ market

LEFT—The Hon. John Tower, right, U.S. Sen. and chmn., Tower Commission, spoke on our country’s national security and the role of Congress. Here, he is visiting with Mr. Waterman before the first general session. RIGHT—Getting his point across about the risks of stress, w
Dr. Peter G. Hanson, author of best seller, “ The Joy of Stress,” gets help from Mr. Meadows.
Banker, July, 1987
Federal Reserve Bank of St. Louis

Illinois News


LEFT— Greeting bankers and spouses during the IBA Banquet reception were, from left: William Hocter, exec, v.p., IBA, and wife June, and
Charles Waterman, past pres., IBA, and chmn., South Holland Tr. & Sav., with wife Joy. RIGHT—ABA Pres. Mark Olson, pres., Security

State, Fergus Falls, Minn., told bankers that their share in the market place is erroding, and steps must be taken to insure the future of the

LEFT—William Seidman, chmn. FDIC, Washington, D.C., through the IBA-TV network, and live from Washington, told bankers he doesn’t
see much improvement regarding bank closings in the near future. RIGHT— Peter Johnson, strategy consultant, Newport Beach, Calif., in­
structed bankers to plan strategically for the future.

LEFT— Present at the Security Pacific Financial Systems exhibit were, from left: William Beck, reg. sales mgr., Rolling Meadows; John Ardapple, chmn., Whiteside County Bank, Morrison, and Laura Patton, Security Pacific, Phoenix, Ariz. RIGHT—Displaying the latest in auto­
mated service technology from First Wisconsin, Milwaukee, were, left, Jerry Gassen, v.p., automation sales & services, and right, Paul Melnick, a.v.p., First Wise. Their guest was, center, Lou Weber, pres., Ottawa Natl., Ottawa.

LEFT— At the Davenport Bank & Trust Breakfast were, from left: Glen Plotter, 1st v.p., with guests from Colonial Trust & Savings, Peru:
Marilyn and Eugene Mischke, pres., and O.J. Stoutner, sr. v.p. RIGHT—Visiting at the Modern Banking Systems display were, from left:
Jerry Murdock, e.v.p., Galena Bancorp, Inc.; Leo Stavas, acct. repr., and Mike Reynolds, sales mgr., both with Modern Banking Systems,

Omaha, Nebr.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987


Illinois News

LEFT— Enjoying themselves at the United Missouri Bank, St. Louis hospitality party were, left: Terry Holm, e.v.p., Brimfield Bank, and Matt
Grzybinski, sr. v.p., UMB, St. Louis. RIGHT—Shown here at the Drovers Bank of Chicago hospitality suite were, from left: Max Roy, sr. v.p.,
Chicago, Jack A. Marantz, pres., Bank of Springfield; John E. Treston, 1st deputy, Commission of Banking, Springfield, and Bob Corey,

vice chmn., Drovers Bank, Chicago.

driven” approach a dramatic shift
away from a traditionally “product
driven” approach, and said bankers
must adapt to this form of strategic
There are three distinct levels to
strategic planning, the first of which
is corporate positioning. “This level
may be used to establish a recog­
nized reputation for an entire family
or products,” said Mr. Johnson. The
second level involves market posi­
tioning, or in Mr. Johnson’s words,
“targeted high level leveragable ver­
tical markets.” Instead of the more
traditional approach, strategic mar­
keting focuses on the “90/10” rule,
wherein 90 percent of the marketing
impact will result in 10 percent of all
possible accounts within a prede­
fined marketplace, according to Mr.
The third and final strategy in­
volves product positioning. “The in­
tent at this point is to visibly
establish some type of unique bene­
fit or advantage which distinguishes
your product or service from that of
your competition,” Mr. Johnson
American Bankers Association
President Mark Olson, president,

Security National, Fergus Falls,
Minn., spoke at the conclusion of the
general session. Mr. Olson said that
banks now have a smaller share of
the marketplace and by 1990 could
only have less than 30% of the mar­
ket. Mr. Olson also said that in the
period from 1975-1985, bank
deposits were up 130% but s&ls,
credit unions, pension funds, mutual
funds and money market funds had
deposit growth well over that of the
banking industry’s.
Mr. Olson mentioned five key
areas in which the ABA is involved
regarding the future of the industry:
informing the public about banking
through newspapers and other
media; working closely with state
and local governments on legislative
issues; seeking remedies in the
courts; working closely with bank
regulators, and working to achieve
legislation at the federal level.
The second day’s general session
included something of a media first.
Using advanced television techno­
logy through the IBA’s own TV net­
work, all but one speaker were
broadcast live from Washington,
D.C. directly to the convention hall,
projected upon a theater-size screen.

By means of a phone line, bankers
could ask questions of the speakers.
William Hocter said that plans <
are underway for the IBA-TV Net­
work to broadcast, once-a-month, a
two-hour program updating bankers
on legislative issues and regulation
updates. Mr. Hocter said informa-»
tive information by experts from
Washington would be shown on the
broadcast. The programming will be
available on a subscription basis, he
said. Georgia is the only other s ta te 1
to employ such a network.
Dr. Michael Mussa, member,
President’s Council of Economic Ad­
visors, Washington, D.C. was the
kick-off speaker for the second gen­
eral session. His presentation,
“Growth and Adjustment of the
U.S. Economy,” began with his
comment, “We are always experi­
encing one or the other, growth or
The optimistic Mr. Mussa told his
audience that he is pleased with the
performance of the economy by the
indicators of our progress against in­
flation, lower unemployment rates,
and lower interest rates. For 1987,
Mr. Mussa is projecting economic
growth at 3.2% and modest inflation

LEFT— Visiting prior to the convention banquet were, from left: Wayne Bismark, v.p., LaSalle Natl., Chicago; Roger Lehmann, pres., and
Vernon Townsend, v.p., The Harvard State Bank, with Tom Nelson, In. off., LaSalle, Chicago. RIGHT— Del Rogers, left, v.p., LaSalle Natl.,
Chicago, visits with Stu Jameson, a.v.p., First Natl., Springfield.
Banker, July, 1987
Federal Reserve Bank of St. Louis

Illinois News

of around 4%. He noted that as of
October of this year, the U.S. will
have experienced the longest peace­
time expansion ever.
Mr. Mussa ended his comments
by discussing the federal budget
deficit and the international trade
deficit. He pointed out that we are
m aking s u b s ta n tia l p ro g ress
against the trade deficit. Regarding
the federal deficit, Mr. Mussa said
that in 1983, the deficit was 6.3% of
the gross national product, and in
1987, that percentage average has
dropped to less than 4% of GNP.
Mr. Mussa did concede that this
figure is still too high considering
the business cycle the country is in.
Concluding the satellite broad­
cast from Washington were presen­
tations by U.S. Senator Alan Dixon
(D-Ill.) and William Seidman, chair­
man, FDIC, Washington, D.C. In
his remarks, Mr. Dixon gave his in­
sights on the Senate Banking Bill
(S790) which includes bank powers
legislation, a proposed recapitaliza­
tion of the FSLIC, and an amend­
ment that would allow bankers the
ability to amortize some agricultural
loans over seven years. Sen. Dixon
said he is confident that bankers will
be happy with the outcome of the
Chmn. Seidman called these times
“dramatic and changing,’’ but he
said they are optimistic times for
banking because many of the
changes are beneficial to the indus­
try as a whole. He said he opposes
any legislation that would add
another tier of bankholding compa­
nies to the industry. He said “bank­
ers need to work on being more con­
sumer-oriented and maintain safety
and soundness.” During the ques­
tion and answer session, Chmn.
Seidman addressed the question of
s&ls and thrifts being included in
the FDIC fund. “ It is possible that
s&ls could move into the FDIC fund
thus further weakening the FSLIC
fund—-and the FSLIC fund can’t
survive on the weaker institution’s
funds that would be left in the
FSLIC,” he responded. Mr. Seidman
questioned whether or not the FDIC
can charge a membership or initia­
tion fee to those s&ls that do want to
join the FDIC fund.
Mr. Seidman concluded that he
predicts over 200 banks will fail by
year’s end. So far there have been 90
closings. He doesn’t see any relief in
1988 and is most concerned with the
energy states in the Southwest. “I
Federal Reserve Bank of St. Louis

can’t predict much improvement,”
he said.
Wrapping up the 1987 general
session were some encouraging re­
marks by noted author Dr. Peter
Hanson, who penned the top-seller
“The Joy of Stress,” Dr. Hanson
said, “You can’t avoid stress, but
you can learn to deal with it.”
Through his verbal presentation and
audience participation, Dr. Hanson
encouraged audience members to lis­
ten to their bodies and to take care
of them.
Special Interest and Entertainment
Besides dozens of opportunities
to meet at receptions, parties and
special interest programs, bankers
had the unique opportunity of hear­
ing author John Naisbitt. He gave a
“Megatrends Update.” Mr. Naisbitt
also co-authored the book “Rein­
venting the Corporation.”
The spouses program was non­
stop, and involved historic tours and
antique shopping, aerobics work­
outs and a health and wellness
seminar. Many spouses also took
part in the general sessions.
Banquet entertainment this year
was nothing short of spectacular.
Bankers and spouses were treated to
an evening of dancing, comedy and
music with John and Donald Mills
of the Mills Brothers and the music
of the Moonlight Serenade Big Band


cago, and as a bank examiner for the
Daniel S. Bleil has been named
vice president, corporate banking,
for Cole Taylor Bank/Drovers. He
has served as an assistant vice presi­
dent of the bank since 1985. Mr.
Bleil continues to serve as a member
of the bank’s board.
Douglas R. Burmeister has been
named an assistant vice president of
trust operations for the Cole Taylor
Banks. He is based at the Drovers
bank. Mr. Burmeister joined Cole
Taylor in 1985 as a trust operations
officer with the Ford City bank, and
became trust operations officer for
all the Cole Taylor banks in 1986.
Prior to that, he worked in trust
operations for First National Bank
& Trust Co., Rockford.
* * *
The board of directors of Money
Station of Illinois, Inc., the ATM
network resulting from the consoli­
dation of Money Network and Cash
Station, has unanimously voted to
change the network’s name to Cash
Station and the corporation’s name
to Cash Station, Inc.
The Money Station name had
been licensed to the company by
Money Station, Inc., a shared ATM
network based in Ohio. Original con­
ditions of the licensing, along with
additional conditions recently re­
quired by the Ohio company, led the
board to opt for the name change.
First National Bank of Chicago has
transferred complete ownership of
the Cash Station name and mark.
According to Cash Station presi­
dent Stephen S. Cole, the conversion
is proceeding on schedule and con­
solidated market introduction is
planned for September.
* * *
David N. Valenziano has been ap­
pointed an account executive in the
public relations of Financial Shares
Corporation. He previously served
as a writer and graphic designer for
the Illinois Department of Agricul­
ture in Springfield.
* *

George F. Scully has been named
vice president and general counsel of
the Cole Taylor Banks. He has been
in the banking industry for 13 years.
Prior to joining Cole Taylor, Mr.
Scully served as an associate attor­
ney with DeHaan & Richter, Chi­


Christopher G. Knowles has been
named director of Avenue Bank of
Elk Grove. Mr. Knowles is president
of Underwriters Salvage Company,
Northwestern Banker, July, 1987


OFFICERS of the Minnesota Bankers Association for 1987-88 are, left to right: (Seated;
Pres.—James R. Jorstad, pres., Citizens State Bank, Hayfield; First Vice Pres.—A. William
Sands, chmn., Western Bank, St. Paul. (Standing) Truman L. Jeffers, exec, v.p., Minneapo­
lis; Second Vice Pres.—James H. Hearon, III, chmn., National City Bank, Minneapolis, and
Treas.— R. James Gesell, pres., Cherokee State Bank, St. Paul.

James Jorstad Heads MBA for 1987-88
2. A successful year for MBA in
education and all other services.
3. Continued progress for the
MBA Special Ag Task Force, with a
EVERAL major accomplish­ commendation to Les Peterson,
ments achieved by the Minne­ president of Farmers State Bank,
sota Bankers Association during the Trimont, who has been chairman of
past year were reported briefly by the Task Force for the three years of
MBA President Roy W. Terwilliger its existence.
4. Appointment of a Special Office
in his President’s Address during
the 97th MBA annual convention Task Force, which has recom­
last month at the Marriott Hotel in mended that MBA offices be moved
downtown Minneapolis. Mr. Terwil­ in the coming year.
5. Appointment of an MBA Orga­
liger, president of Suburban Na­
tional Bank in Eden Prairie, listed nizational Task Force which has re­
commended some improved changes
these accomplishments:
A successful state legislative in the delivery of services to mem­
session for the MBA in many ways. bers.


6. Incorporation of the new insur- •
ance entity this past year—BancInsure.
7. Appointment of an Economic
Development Task Force, whose re­
commendation to form the Minne- #
sota Bankers Enterprise Network
was adopted by the MBA Board of
Directors at its meeting just prior to
convention time.
8. Appointment of a special com- #
mittee to plan for the MBA’s 100th
Convention three years from n o w 1990.
New Officers Elected
Nearly 900 bankers and spouses ®
were registered during the course of
the convention. During the second
general session they elected these of­
ficers to serve MBA in 1987-88:
President—James R. Jorstad, *
president, Citizens State Bank,
Hayfield, to succeed Mr. Terwilliger.
First Vice Pres.—A. William
Sands, chairman, Western Bank, St. ^
Second Vice Pres.—James H.
Hearon, III, chairman, National
City Bank, Minneapolis.
Treasurer—R. James Gesell, pres- ^
ident, Cherokee State Bank, St.
Paul, to serve a second term.
Reappointed as executive vice
president and head of the profes­
sional MBA staff in Minneapolis £
headquarters is Truman L. Jeffers,
who joined the staff in 1960 and has
held his present position since 1970.
Also installed at the convention
are three new members of the MBA £
board: William B. Bunker, presi­
dent, First National Bank, Anoka,
to represent District 3; Donovan J.
Fisher, president, The Roseville
Bank, District 4, and Dwayne f

SPEAKERS at the opening general session were, left to right: Roy W. Terwilliger, pres, of MBA and pres., Suburban Natl., Eden Prairie;
James H. Hearon, III, chmn., Natl. City of Mpls.; Mark W. Olson, pres, of ABA and pres., Security State, Fergus Falls, and MBA Exec. V.P.
Truman Jeffers. RIGHT—Guy R. Doud (center), the Brainerd, Minn, teacher who was guest speaker at the Fellowship Breakfast, is con­
gratulated on his most inspirational talk by Mr. Jeffers and his daughter, Lisa, his wife, Leila, and Mark Ruff of Fargo, N.D. Mark and Lisa

are to be married August 1.
Banker, July, 1987
Federal Reserve Bank of St. Louis

Minnesota News


PARTICIPANTS in the overflow seminar on Economic Development were, left to right: Don Imsland, consultant; Bill Sands, chmn., Western
Bank, St. Paul, and chmn. of the MBA. Economic Development Task Force; Dick Conner, consultant; Suzanne Meyerson, pres., Atwater
State; John Ingebrand, pres., Kanabec State, Mora; Bob Burk, pres., Merchant & Miners State Bank, Hibbing, and Scott Jones, pres.,

Goodhue County Natl., Red Wing.

LEFT— Hal Lynch, pres., Arlington State, and Marian; Dick Holmes (rear), v.p., Marquette Bank Minneapolis, and Carol; Bill Kirchner,
chmn., Richfield B&T, and Garnett, and Bill Addington, v.p., Marquette Bank Minneapolis, and Carol. RIGHT—Some of the MBA staffers
who helped make the convention move smoothly were: Linda Forschen, Kelly Beede, Sandy Wollak, Jean Hendrickson and Joyce Berg.

LEFT— Hosting the American Natl, of St. Paul reception were, from left: Ev and Don Lindeman, a.v.p.; Kay and Jim Russell, v.p. and head of
corr. bk. div., and Joe R. Kingman, pres. RIGHT—ABA Pres. Mark Olson, pres., Security State, Fergus Falls, and his wife, Renee Korda,
with Jeanette and Bob Welle, chmn., 1st Natl., Bemidji.

AT First Banks reception were, from left: Grace and Tom Hinnenthal, v.p., First Bank Minneapolis; Renee Korda and Mark Olson, pres, of
the ABA and pres., Security State, Fergus Falls; Cassandra Klimp, corr. bk. off., and Ken Bezdicek, v.p., both with the host bank. RIGHT—
Bruce Hebei, v.p., and John Mullen, exec, v.p., both with First Bank Minneapolis; Roland Nordlund, pres.,, Town & Country Bank, Maple­
wood, and Bill Stiles, v.p., First Bank.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987


Minnesota News

More photos
from the
Minnesota convention
MODERATOR/speaker for the “ Consumer Marketing Strategies
special interest session was H. Joseph Brunner (standing), sr.
v.p., American Natl. B&T, St. Paul. Seated behind desk was his co­
host, John Barlow, pres., Market Trends, Inc., Minnetonka. The
other three special interest sessions covered productivity, nego­
tiating with borrowers and loan review and risk rating.

LEFT— Dick Gandrud, pres., Pope County State, Glenwood, and Lorraine, with Mary and Jim Gowan, pres., 1st Natl., Chaska. RIGHT—Art
Nelson, pres., Security State, Lindstrom, and Jan, with Jane and Bill

in the corr. bk. div.

IN photo at left, Jim Campbell, pres., Norwest Bank Minneapolis,
receives an autographed photo from noted golf pro Ben Cren­
shaw, and in photo at right, Dick Kovacevich, exec, v.p., Norwest
Corporation, receives one from Mr. Crenshaw, while Frank Lewis

(right), pres., Owatonna State, also visits with Mr. Crenshaw.

Bruns, president, Annandale State
Bank, District 6 .
50-Year Bankers
The following bankers were in­
ducted into membership in the Pio­
neer Club in honor of the 50 years of
service each has devoted to banking:
Irvin Burich, Citizens State
Bank, Hutchinson.
David DuBois, First State Bank,
Sauk Centre.
L.B. Eickhoff, Adrian State
Bank, Adrian.
Lyman Wakefield, Jr., Resource
Bank and Trust, Minneapolis.
Stan R. Wheaton, First National
Bank, Elk River.
In his brief remarks upon accept­
ing the MBA presidency, Mr. JorNorthwestern
Banker, July, 1987
Federal Reserve Bank of St. Louis

stad pledged to continue the Task
Forces referred to earlier, and em­
phasized the importance of every
Minnesota bank giving full support
to the newly-formed Minnesota
Bankers Enterprise Network.
Economic Development
While other events of the conven­
tion received proper attention, the
Economic Development effort was
the centerpiece of much of the pro­
gram. Mr. Sands, the new First Vice
President of MBA, was chairman of
the Development Committee the
past year and will continue as head
of MBEN. In his address at the
opening general session he re­
counted the events of the formative
months and the selection of A t­


water, Minn., for the pilot project.
The Committee’s purpose and the
success in Atwater were detailed in £
an exclusive interview in the May
N orthwestern
B anker
w ith
Suzanne Meyerson, president of the
Atwater State Bank. The principal
thrust of that project and the q
MBEN in the coming year will be to
expand on the employment and busi­
ness base of existing business firms
to enhance the economy of each com­
munity. Bankers are being asked to f
play a key role in this MBA project
within their own communities.
Mr. Sands said “We think cash
flow can develop to offset some farm
income loss. This project can make •
an economic difference in our state.”

Newly affiliated with the bank is
Terrence Niewolny, a CPA who is
presently controller for Frandsen Fi­
nancial Corp.
Dennis Volden, a 19-year employ­
ee of Farmers & Merchants, will
serve as board secretary and will be
president of the bank. Donn L.
Haugen, with the bank for nine
years, will be senior vice president/
cashier. Mary Ann Lyon, a 31-year
employee, will serve as assistant
vice president/operations officer.
The three will also be on the board.
O ther officers are LaVerne
O’Donovan, assistant vice president/loan officer; Phyllis Maygren,
assistant vice president/head teller,
and Deanna Cabak, assistant cash­
Minnesota News


After the first general session
ended, a special session on Eco­
nomic Development was offered.
The importance of the topic was
shown by the fact that more than
»170 bankers crowded into the as­
signed room and stayed for the en­
tire session that lasted over one
hour, with at least 25-30 having to
stand at the sides and back of the
'room. Appearing with Mr. Sands
and Mrs. Meyerson, who reviewed
the Atwater project, were three Min­
nesota bank presidents who have
taken a lead in aiding development
projects in their communities. Each
of them explained how they were in­
volved personally, with bank staff,
and a commitment of bank funds for
loans or seed money. The three were
Robert Burk, Merchants & Miners
State Bank, Hibbing; John Ingebrand, Kanabec State Bank, Mora,
and Scott Jones, Goodhue County
National Bank, Red Wing.
Mr. Sands said MBA will form a
board of bankers and non-bankers to
give direction to MBEN. He said
MBA’s goal is to raise $250,000 to
fund this important work. In his
later MBA treasurer’s report to the
membership, Mr. Gesell said the
MBA board “has recommended a
10% dues increase, all to go to fund
the new subsidiary (MBEN). MBA
will put $ 100,000 into the project.’’







Mark Olson Reports
ABA President Mark Olson reviewed the current status of federal
banking legislation. It had just been
announced that the House and Se­
nate would go to Conference on SB
790 and the House Bill aimed only
at funding $5 billion for the FSLIC.
ABA’s posture, as it is with the
IBAA, is to support Title I of S.B.
790, which would close the non-bank
bank loophole, and kill Title II,
which would place a one-year mora­
torium on the expansion of bank ser­
vices. Title II addresses the FSLIC
recapitalization and presumably will
be adopted by the committee.
Mr. Olson related that ABA is
working hard on a public image en­
hancement that is paying dividends;
through the courts, where all seven
decisions the past year on securities
powers favor banks; improved rela­
tions with regulators, and improved
communication with Congress.
National Newsmen Speak
National and international affairs
were given special attention for dele­
gates by two prominent newsmen—
Federal Reserve Bank of St. Louis

Hugh Sidey, Washington editor for
Time magazine, and Howard K.
Smith, a Washington news commen­
One of the inspirational talks of
the convention was delivered at the
Fellowship Breakfast by Guy R.
Doud of Brainerd, who was recog­
nized at a White House reception by
President Reagan last year as 1986
National Teacher of the year.
Superb singing was provided by
John Bell Wilson and Tom Tipton.
Bankers Hear Competitors
The final general session featured
Harvey Golub, CEO for IDS Finan­
cial Services, Inc., Minneapolis, and
John J. Detterick, president of Sears
Consumer Financial Corporation,
Lincolnshire, 111. Each described in
detail the financial services offered
by their respective firms, and how
they plan to dominate the financial
market. An extended Q and A
period followed.
Four special interest sessions
were offered on current topics—Pro­
ductivity Consumer M arketing
Strategies, Negotiating to Win (with
faltering borrowers) and Loan Re­
view and Risk Taking. Each session
was offered twice.
Entertainment Features
The First Night Hospitality party
was a big hit again. It was spon­
sored by American National Bank &
Trust Co. of St. Paul; First Bank
Minneapolis/St. Paul; Marquette
Bank Minneapolis, and Norwest
Corporation, Minneapolis.
In addition to golfing and tennis
the first day, the convention offered
a Spouses Hospitality Center, the
Fellowship Breakfast, drawing for
portable color TV sets, and the An­
nual Banquet which featured the ta­
lented music performers Paul and
The 98th Annual Convention of
the Minnesota Bankers Association
will be held June 6-7, 1988 in

Changes Told in Hinckley
The Farmers & Merchants State
Bank of Hinckley has been sold to
Dennis Frandsen of Rush City. He is
the owner of Plastech Corporation of
Rush City, and owns banks at Luck
and Dresser, Wis.
Mr. Frandsen will serve as chair­
man of the board. Carl Knutson will
act as vice chairman. He resides in
Rush City and is active in banking
and real estate.

Third Union Oust Attempted
The union at First American
Bank & Trust of Willmar is facing
its third decertification attempt
since February 1986. A petition ask­
ing for an election to decertify the
union, signed by over half the bank’s
46 employees, was filed with the Na­
tional Labor Relations Board in late
May. The NLRB scheduled a hear­
ing on the matter for June 10, but
the union filed blocking charges so
the hearing was cancelled.
The NLRB is currently investi­
gating the charges. If they are not
substantiated, the hearing will be
rescheduled. According to bank
president Mike McNeil, all charges
were denied. The bank feels the
charges were filed simply to delay
the vote to decertify, in the face of a
majority of the employees opposing
the union.

Promoted in Richfield
Richfield Bank & Trust Co., Rich­
field, recently announced the promo­
tion of Pat Hulm to bank officer and
manager/systems: programming.
She joined RB&T in 1979 as a sys­
tems analyst, having previously
served Norwest Bank.
Richfield Bank & Trust Co. has
announced the promotion of Joel R.
Johnson to officer status. He joined
the bank in 1984 as a management
trainee and advanced to manager-finance/operations in 1985.
In addition, the bank has pro­
moted Patrick Serváis to auditor.
Mr. Serváis joined Richfield Bank &
Trust in 1984 and previously was
assistant auditor. Prior to his affilia­
tion with the bank, he was a bank
examiner with the FDIC.
Northwestern Banker, July, 1987


Patrick J. Donavan, vice president,
retail banking for Norwest Corpora­
tion, has been
elected president
of Norwest Bank
St. Paul. He suc­
ceeds Richard A.
K lingen, who
e le c te d
Mr. Klingen,
who remains the
bank’s CEO, has
announced his
intention to retire at the end of the
year. He is a 30-year veteran of Nor­
west banks, and was the St. Paul
bank’s president and COO from
1981 to 1986, when he was named
president and CEO.
Mr. Donavan joined Norwest St.
Paul in 1981 and transferred to the
corporate office in 1983.
* * *

Prior to that he was employed by
the Bank of Los Angeles and the
Bank of America branch in South
Redondo Beach, Calif.
* *


Levor “Bud” Garnaas and Lars P.
Lidberg have been promoted to se­
nior vice presidents, capital markets
in the metropolitan division of First
Bank System.
Mr. Garnaas most recently served
as vice president, government trad­
ing and sales division, capital mar­
kets. He joined First Bank St. Paul
in 1968, and rejoined FBS in 1984
after serving in San Francisco, Min­
neapolis and Chicago.
Mr. Lidberg has been associated
with FBS since 1972. He has served
in various capacities in international
banking, and most recently was vice
president, international money mar­
kets, capital markets.
* * *

Norwest Corporation has an­
nounced that Peter R. Reis has been
elected president
of Norwest Bank
M idland, suc­
ceeding Ernest
C. Pierson, man­
aging officer of
the bank since
1982, who is re­
tiring. Mr. Pier­
son remains on
the board, and
Mr. Reis was
also elected to the board.
Mr. Reis previously served as vice
president and manager of business
banking for Norwest, and has served
as senior vice president in charge of
national banking at Norwest Bank
Minneapolis and as executive vice
president of Norwest Bank Bloom­
Mr. Pierson has served all of his
banking career with Norwest at the
Midland bank, starting in 1965.
Banker, July, 1987
Federal Reserve Bank of St. Louis

lis since 1950 and with its tru st®
group since 1956. He was appointed
head of capital management and
trust individual services in 1980.
* * *
William H. Queenan, former presi­
dent of Norwest Bank Bloomington
and Norwest Bank MetroSouth, has
been named chief credit officer of
Norwest Corporation’s banking’
group. He succeeds Richard D.
Schneider, who is leaving the com­
pany to pursue outside interests.
Mr. Queenan joined Norwest in
1973 as vice president, commercial
lending at Norwest Bank St. Paul.
Most recently he has been chief
policy officer and Norwest Bank
Minneapolis. He will continue in
that capacity until a successor is
Mr. Schneider joined Norwest in
1964 at Norwest Bank Minneapolis.
He was appointed chief credit officer (
for the corporation in 1986.
* * *
At MetroBank Bloomington, Dottie Krause has been promoted to
vice president. She was formerly •
cashier and operations officer, and
first joined the bank in 1973.
Marcia C. Tuckner has been pro­
moted to assistant vice president.
She served as consumer loan officer •
since joining MetroBank Minneapo­
lis in 1983. Prior to that she was
cashier and operations officer at
MetroBank St. Paul.
Judith L. Weeks was advanced to ®
consumer loan officer. She served as
administrative assistant since join­
ing the bank in 1984. Prior to that,
she was employed by Summit State
Bank in Richfield.

Paul F. Walsh, a former executive
with Citicorp in Europe and the U.S.,
has been named
a senior vice
president of Nor­
west Bank Min­
neapolis and de­
signated head of
its capital man­
a g e m e n t and
tru s t division.
He su cceed s
1 Y JH
Roger Bailey,
who has a n ­
nounced his intention to retire at
year-end after 38 years with Nor­
Mr. Walsh comes from Frankfurt,
West Germany, where he was senior
vice president and regional business
manager for Citicorp’s card pro­
* * *
ducts. He started with Citicorp in
Stephen J. Jarvis has been named
Mr. Bailey joined Norwest in vice president of MetroBank St.
1949 at Norwest Bank Central. He Paul. He previously served as assis- ®
was with Norwest Bank Minneapo- tant vice president of the First Na-

have passed the $1 billion mark. The
bank is the second largest trust or­
ganization in St. Paul and the fourth
largest in the Twin Cities.
American has also announced
that its Senior Vice President of
commercial loans, Robert Nelson,
has been appointed to serve as vice
president and a director of the Na­
tional Aircraft Finance Association.
Mr. Nelson has been associated with
general aviation lending for over 20
Minnesota News

tional Bank of Anoka, where he was
employed for six years. Prior to that
he served at ITT Thorp Credit and
* * *

Resource Bank & Trust has an­
nounced the following officer ap­
Jack Anderson joined the bank as
vice president, loan department. He
will be responsible for commercial
lending at Resource’s Minnetonka
office. He previously served as a
lending officer in the executive fi­
nancial services department of Mar­
quette Bank Edina. Before that, he
spent 17 years with Norwest Corp.
Sally Jo Harff was appointed vice
president of sales and marketing.
Before joining Resource, she was
vice president and branch manager
at Marquette Bank Lake’s AbbottNorthwestern Hospital office. Ms.
Harff will be responsible for sales
and marketing at Resource’s Minne­
tonka and downtown Minneapolis
* * *

M a rq u e tte B an k C olum bia
Heights has announced the appoint­
ment of Ann L. Caligur as a loan of­
ficer. Prior to joining the bank, she
was a personal banker and consumer
lender for First National Bank of
Omaha, where she also worked in
the marketing department.

BMA Pres. Named

Elaine A. Bergquist, president of
MetroBank Computer Services, Inc.,
and director of
m arketing for
James Haugen has been ap­ M e t r oB a n k s ,
pointed real estate and consumer has been named
loan officer at Marquette Bank the 1987-88 pres­
Columbia Heights. He previously ident of the Min­
served as a loan officer with the nesota Chapter
Roseville Bank, Roseville, for three of the Bank Mar­
keting Associa­
and a half years.
tion. She suc­
* * *
ceeds H. Joseph
Brunner, senior
FBS Insurance, the insurance
vice president of American National
subsidiary of First Bank System, duced a new VISA and MasterCard Bank.
has announced the sale of 16 insur­ that gives consumers more control
Ms. Bergquist has been associ­
ance agencies to Community Insur­ over the cost and benefits of their ated with the Metropolitan Bank
ance, Inc. The sale is part of FBS’s
The new product features a 16.8 Group since 1982, when she started
strategy to restructure its banking
MetroBank Computer Services. She
assets by selling 28 of its banks with annual percentage rate, the opportu­ was formerly president of Delta Sys­
45 offices, as announced in Aug.
14.4 APR installment loan line with tems, Inc., a manufacturer of elec­
terms decided by the tronic cash registers in Minneapolis.
Arlowayne R. Kilber, who man­
a skip payment op­
aged First Insurance Wahpeton, has
formed and will serve as president of
According to Robert Pitner, presi­ Elected in Cloquet
Community Insurance, Inc. The
of FBS Card Services, Inc., the
John R. Baker has been elected
former FBS Insurance agencies will
now be called Community Insurance new card “is the first of what we’re president and a director of First
agencies, and will employ the same calling the ‘next generation’ of Bank Cloquet. He most recently
served as senior vice president and
people and offer the same products credit cards.’’
The new product was first offered retail banking manager at First
and services as previously.
The 16 offices are located in Min­ in May to preferred customers of Bank Mankato.
Mr. Baker has been with First
nesota, North Dakota and South Da­ First Banks.
System since 1965. He has
been employed at First Bank Aus­
* * *
Norwest Corporation has an­ tin, First Bank Duluth, FBS Infor­
nounced that is has opened its first mation Services and FBS Services,
Robert W. McConnell, a mortgage office in Delaware, leaving only five Inc. He joined First Bank Mankato
banker with 15 years of experience, states in which it does not have an in 1983.
has been appointed executive vice operating presence. The new office is
president of Valley National Mort­ a consumer finance office of a new
gage Company, a subsidiary of subsidiary, N orw est Financial
Valley National Bank of Arizona. Delaware, which specializes in per­ Appointed in Edina
He will oversee all VNMC residen­ sonal and home equity loans. It is
Kevin L. Campion has been ap­
tial loan production.
to vice president/field ex­
located in Dover.
Mr. McConnell served for three
department at Norwest
* * *
years as senior vice president and
Business Credit, Inc., Edina. He
national production manager for
American National Bank, St. joined the company as an auditor in
Norwest Mortgage, Inc., of Minnea­ Paul, has announced that assets for 1981 and most recently served as a
which is trust division is responsible marketing representative.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987

surer—Jess S. Levin, president,
Bank of Elmwood, Racine. Immedi­
ate Past President—Rowland J.
McClellan, president, Valley Bank,
Janesville. Executive Director—
Bryan Koontz, Madison.
Mr. Klug joined F&M Bank in
1960. He has been a member of the
WBA Executive Council since 1983
and chairs the Forms & Procedures
Committee for the WBA. He is also
active in his local community where
he chairs the Greater Menomonee
Falls Committee. Mr. Klug main­
tains Kildeer Orchards, his 700 tree
apple orchard, and markets 16 varieties of apples to local supermarkets.
1987-88 OFFICERS— Elected officers for the Wisconsin Bankers Association are, from left:
Vice Pres.—Thomas L. Schiefelbein, pres., The Security Natl., Durand; Exec. Dir.— Bryan
Koontz, Madison; Pres. — Richard P. Klug, chmn., F&M Bank, Menomonee Falls; Immed.
Past Pres. — Rowland J. McClellan, pres., Valley Bank, Janesville, and Treas.—Jess S.
Levin, pres., Bank of Elmwood, Racine.

Business Fair Highlights Convention
Associate Publisher
VER 550 bankers and spouses
were in attendance for the 1987
Wisconsin Bankers Association An­
nual Convention held last month in
Green Bay, and were treated to ex­
cellent general sessions, receptions,
guest program and, new this year, a
Business Resource Seminar. Imme­
diate Past President Rowland
McClellan, president, Valley Bank,
Janesville, called this “the first step
of many that the WBA will be tak­
ing to direct the focus of our mem­
bership towards local develop­
A sampling of those topics cov­
ered during the afternoon business
fair included a look at the WBA


Strike Force, small business devel­
opment centers, development pack­
aging, developing a business client,
international trade, venture capital­
ism and correspondent banking. Mr.
McClellan said, “This is a new and
exciting direction for WBA, and I
am confident that it will give
broader recognition to the fact that
Wisconsin bankers are truly a natu­
ral resource for economic develop­
Installation of New Officers
During the convention banquet,
the 1987-88 WBA officers were in­
stalled. The new officers are: Presi­
dent—Richard P. Klug, chmn., and
CEO, F&M Bank, Menomonee
Falls. Vice President—Thomas L.
Schiefelbein, president, The Securi­
ty National Bank of Durand. Trea-

General Session
The 1987 general session was
called to order by Mr. McClellan and
a convention welcome was given by
Patricia McCarthy, Green Bay Am­
bassador. ABA President Mark Ol­
son, president, Security State Bank,
Fergus Falls, Minnesota, was the
kick-off speaker. His topic was “A
Washington Perspective.”
Mr. Olson said, “Today, commer­
cial banks are in danger of becoming
obsolete.” Referring to the overall
decline in FDIC-insured bank earn­
ings, he said, “This is directly re­
lated to banks’ inability to offer the
range of financial services necessary
to meet the demands of today’s marketplace.”
“ In 1986,” Mr. Olson said, “the
industry as a whole suffered its first
overall decline since 1961; if this
trend continues, there could be 20
percent fewer banks in 1990.” He
said banks’ share of all financial
assets would fall from 32 percent to
29 percent, at the current pace.
According to Mr. Olson, the ABA
is seeking modernization of federal
laws that limit commercial banks’

LEFT— Flosting the First Wisconsin Party were, from left: Lee and Roger Fitzsimonds, pres., & c.o.o., First Wis., with Gail and John Underwood, pres., First Wis., Green Bay. RIGHT—Also in attendance at the party were, from left: Don Kramp, v.p., and Phyllis; John Becker,
pres., and wife Bonny, with Bev and Harv Keller, v.p., all with First Wisconsin, Milwaukee.

Banker, July, 1987
Federal Reserve Bank of St. Louis












Wisconsin News


LEFT— Enjoying the opening night festivities were, from left: Ralph Nelson, v.p., Marquette Bank, Mpls., and wife Wendy; Matt Heimerman, pres., The Coulee St. Bank, La Crosse, and wife Jean, with Bill Addington, v.p., Marquette Bank, Mpls., and wife Carol. RIGHT—Tak­
ing part in this year’s convention were, from left: Bob Jacobson, v.p., American Natl., St. Paul, and wife Lori, with Muriel and Ron Isaacson,

pres., State Bank of Medford.

ability to underwrite and sell securi­
ties, insurance and real estate. Mr.
Olson noted that FDIC Chairman
William Seidman and Comptroller of
the Currency Robert Clark have
stated that this type of legislation is
essential to banking’s future.
“The fight for new products and
services for banks will not be easy,”
Mr. Olson said, “and bankers must
take action at the grass-roots level.”
He concluded, “What the final legis­
lation will look like and what it will
do for banking, is really very much
in our own hands.”
Other general session speakers in­
cluded Robert Bleiberg, editorial di­
rector and publisher, Barrons, who
gave his insights on the future
trends of business and the financial
forecast for the coming years. Mr.
H. Nicholas Muller, III, director,
State Historical Society of Wiscon­
sin, told his audience about plans for
the anniversary of the U.S. Consti­
tution. Joe Theismann, CBS Foot­
ball Commentator and former quar­
terback for the Washington Red­
skins, gave concluding remarks dur­
ing the dr r’s second general session.

His comments addressed the topic,
“Quarterbacking Your Own Life.”
President’s Remarks
Mr. Klug said that bankers have
paid the price over the past eight
years and now it was time to concen­
trate on what bankers can do to
s tre n g th e n th e ir own banks.
“Stronger Wisconsin banks and a
stronger Wisconsin Bankers Asso­
ciation will result in a stronger
Wisconsin,” he said. In looking
ahead, Mr. Klug said, “We bankers
are about to step forward to meet
the new needs for changing business
and personal financial services.”
Mr. Klug pointed out that change
is often opportunity, and that the
WBA committees will be adapting
to the future in the coming year. For
example, the WBA will be employ­
ing three new committees: Products
and Services, Banks Operations and
Procedures, and Human Resources.
The first committee will help bank­
ers better serve customers by pro­
viding new products and services.
“The buzz words here,” he said, “are
imagination, innovation and unlim­
ited thought process.” The second

committee is charged with helping
find more economies for Wisconsin
banks. “This will help produce solid,
sound, workable tools for bankers to
use,” said Mr. Klug. The third com­
mittee will enable banks to train
their employees to better meet the
demands of future customers’ needs,
as well as dealing with the areas of
compensation, benefits, and person­
nel manuals.
Mr. Klug concluded with these en­
couraging words: “The time has
come when WBA can channel its
very considerable resources and
talents to helping us become better
banks. Our customers and our com­
munities will benefit, not only in the
short term but in the future. Better
banks mean a better future and
quality of life for our communities.
Let’s get started on building bridges
to prosperity together.”
Entertainment and Guest Program
The WBA put together an out­
standing program for spouses and
guests which began with a river boat
cruise on the Fox River aboard the
River Queen. An all-convention par­
ty, sponsored by First Wisconsin,

LEFT— Valley Bank Corporation held its reception at the Green Bay Packers’ locker room. Taking part in the evening were, from left: Com­
missioner of Banks Richard Galecki, Madison; Jack Johnson, pres., Valley Bank, Spring Green; John Mack, sr. v.p., Valley Bank Corp.,
Madison, and Gus Zuehlke, chmn., Valley Bank Corp. Madison. RIGHT—Also present were, from left: Gus Zuehlke, chmn., Valley Bank
Corp.; Kenny Stills, free safety, Green Bay Packers; ABA Pres. Mark Olson, pres., Security State, Fergus Falls, and his wife Renee Korda;
Ed Berry, def. back, Green Bay Packers, and Rollie McClellan, pres., Valley Bank, Janesville.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987

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that works

Omaha — (Left to Right) Jim Suing, Judy Reuting

Lincoln — (Left to Right) Kathy Gulland, Sam Whitworth,
Scott Meradith

to serve you

F irsT ier B an ks


In Nebraska: 800-642-9305
Outside Nebraska: 800-228-9175

In Nebraska: 800-742-7462

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

Wisconsin News
attracted hundreds of bankers and
spouses. Tours were available to
various Green Bay attractions, and
a special luncheon was held. Of
course, golf and tennis were avail­
able. This year’s convention dinner
show was preceeded by a reception
sponsored by Marine Bank, Milwau­
kee. During the banquet, officers
were installed and fifty-year bankers
were recognized. The evening enter­
tainment was the musical group
“Reunion,” made up in part by for­
mer members of the group, The Lettermen.

Bankers’ Bank
Elects Officers
The Bankers’ Bank of Wisconsin,
Madison, has announced the elec­
tion of two new officers. Donald L.
Weber has joined the bank as senior
vice president, investments. For­
merly he held a similar position at
First Bank Creve Coeur, Mo. He has
also been employed by Centerre
Bank in St. Louis and several St.
Louis area brokerage firms.
Marilyn Stepnick, an investment
representative since 1986, was
elected investment officer. She for­
merly was assistant treasurer for
W isconsin H ousing Economic
Development Authority.
The following individuals were
elected directors of Bankers’ Bancorporation of Wisconsin, Inc. and
its subsidiary, Bankers’ Bank of
Wisconsin: Robert C. Gorsuch, The
Park Bank, Madison; Trevor A. Har­
der, Kilbourn State Bank, Milwau­
kee; Gary S. Harrop, The Peoples
State Bank, Mazomanie; Thomas K.
Maxwell, Farmers Merchants Bank
& Trust, Marinette, and Richard J.
Pamperin, Marion State Bank,

Named in Appleton
Roger S. Core has been named ex­
ecutive vice president of Valley
Trust Company, Appleton. He will
be regional manager for offices in
Appleton, Green Bay, Kewaskum,
Oshkosh, Rhinelander, Ripon, Sha­
wano and Woodruff. He will con­
tinue as manager for the Appleton
office and as a director of Valley
Trust Company. Mr. Core came to
Valley in 1978 from Chicago, where
he had been an investment officer
with the trust department of the
Continental Illinois Bank.
Also at Valley Trust, Appleton,
Joyce G. Gordon has been named to

Banker, July, 1987
Federal Reserve Bank of St. Louis

head the personal trust division. She wood Bank brings assets of $15 mil- •
is an attorney who resides in Apple- lion to the banking holding com­
pany, which currently owns State
Bank Hales Corners and University
Named in Janesville
National Bank in Milwaukee. The
banks have assets totalling #
Peter C. Jacobs has been named
executive vice president of Valley $140 million.
Trust Company, Janesville. He will
be regional manager for offices in Waunakee, Madison
Janesville, Madison, Sauk City and Banks to Merge
Sun Prairie. Mr. Jacobs has been
First. Wisconsin Corporation is
with Valley for nine years, most re­
to obtain regulatory ap­
cently as a senior vice president/ of­
First Wisconsin of
fice manager in Janesville.
Waunakee into First Wisconsin Na­
tional Bank of Madison.
V.P. Named in Milwaukee
As of April 30, the Waunakee
Mark Zalewski has joined Univer­ bank had assets of $24.6 million and
sity Bank, Milwaukee, as executive F irst W isconsin—Madison had
vice president
assets of $493.8 million.
and a director.
Pending regulatory approval, the ®
Mr. Z alew ski
merger is scheduled to be completed
on December 31. Following the
began his bank­
ing career as
merger, James R. Schmitz will con­
branch adminis­
tinue to head the Waunakee opera­
trator and com­
tion for First Wisconsin.
mercial loan offi­
cer for First Wis­
consin Corpora­
Named in Brown Deer
tion, and was
Mary Beth Brey has been named £
eventually pro­
moted to president of First Wiscon­ commercial banking officer at
sin Westown in Madison. He has Brown Deer Bank. She will serve the
also been president of Independence commercial lending team in new
Bank in Madison and served as a business, credit evaluation and cus­
bank consultant with Bank Manage­ tomer service. Ms. Brey most re- #
cently served the bank as commer­
ment Resources in Atlanta, Ga.
cial banking representative.

Promoted in Lancaster
Union Bank & Trust of Lancaster
has announced the promotions of
Will Johnson and Pat Friar. Mr.
Johnson has been named president
and trust officer. He previously
served as executive vice president
and trust officer. Mr. Friar, who is
vice president and security officer,
now has the additional responsibili­
ties of cashier.

Mary Kay Eckert has joined
Valley Trust Company, Green Bay
as assistant trust officer. Prior to
joining Valley, she was an adminis- •
trative assistant at Associated Kel­
logg Bank.

Added in Shawano

Valley Bancorp.
Announces Changes

Karen Kalishek has joined the
staff of Citizens Bank of Shawano as
vice president, controller and cash­
ier. A CPA, Ms. Kalishek was for­
merly the manager of finance for Im­
perial, Inc. of Green Bay, and prior
to that worked as an accounting offi­
cer for Valley East Bank in Green

Added in Green Bay


Kristine Schulz Goldman has
joined Valley Bancorporation, Ap­
pleton, as corporate compliance offi- £
cer. She previously served as a legal
assistant in the law department of
Aetna Life & Casualty Insurance
Company in Hartford, Conn.
Kevin L. Rust has been named in- f
vestment officer for the corporation.
Prior to joining Valley, he was an in­
Merger Announced
officer at Queen City FedStockholders of Edgewood Bank,
Greenfield, have approved a merger
with State Financial Services Corpo­ WISCONSIN NEWS. . .
ration, to be effective July 1. Edge- (Turn to page 43, please)

1987-88 NDBA OFFICERS, from left: Pres.-Elect— Roger Berglund, pres., Dakota Western,
Bowman; Immed. Past Pres. — Harvey Huber, pres., Union Staie Bank, Hazen; Exec. Dir.—
Harry Argue, Bismarck; Pres.—John W. Pierson, chmn., Norwest Bank, Minot, and Vice
Pres./Treas. — Ken Reno, pres., United Bank, Bismarck.

Pierson Elected President
Associate Publisher
VER 350 bankers and spouses
from across the state gathered
in Minot last month for the 1987
North Dakota Bankers Convention.
The two-day convention offered
plenty to do with men’s and
women’s golf outings, the presi­
dent’s reception, prayer breakfast
and the all-convention banquet fea­
turing the music of “Life.” Conven­
tion-goers also had the opportunity
to view the latest in banking pro­
ducts and services via convention
Officers Elected
Highlighting the convention was
the election of officers for the 198788 term. Officers elected were: Presi­
dent—John W. Pierson, chairman,
Norwest Bank, Minot. Pres.-Elect—

Roger Berglund, president, Dakota
Western Bank, Bowman. Vice Pres./
Treas.—Ken Reno, p re sid en t,
United Bank, Bismarck. Immed.
Past-Pres.—Harvey Huber, presi­
dent, Union State Bank, Hazen. Ex­
ec. Director—Harry J. Argue, Bis­
marck. Chairing this year’s conven­
tion was Curt Zimbelman, a.v.p.,
First Western Bank, Minot.
General Sessions
Preceding the general session,
the all-convention prayer breakfast
was held. It featured a unique pre­
sentation by Jerry and Sis Levin,
journalists, Cable News Network.
Mr. Levin related his experience of
being kidnapped by Arab terrorists
in 1984, and discussed his back­
ground in radio and television.
The 1987 general session was
called to order by Mr. Huber as he
reviewed the program’s “compre­
hensive agenda with educational, in­

formative and motivational indivi­
dual presentations.” The first
speaker was Hon. Douglas Barnard,
Jr., member of the House and Repre­
sentatives, Georgia, and probably
best known for his involvement in
the Barnard-Garn banking bill. Con­
gressman Barnard provided key in­
sights to this bill.
“ Investment Strategies in a Low
Rate Market,” was the presentation
given by James Vining, president,
Vining-Sparks Securities, Inc.,
Memphis. Mr. Vining’s background
in banking and involvement with
the Federal Reserve Board enabled
him to give valuable insight to fi­
nancial management, mortgage
backed securities and automobile fi­
Following the convention lun­
cheon, which featured George Nigh,
former Oklahoma governor, the gen­
eral session was called back into
order. Giving bankers and spouses a
look at “The Presidency” was Hugh
Sidey, journalist, Time magazine.
Mr. Sidey's remarks centered on his
remembrances of past presidents
and humorous notes about presi­
dent’s Reagan, Ford, Carter and
Looking forward to the 1988 pres­
idential election, Mr. Sidey said, “ In
my 30 years covering the presiden­
cy, I haven’t seen an election that
had 20 candidates contending for
your time and giving as many bad
speeches.” He observed, “What is
most important in the election of a
president in that person’s charac­
ter—what’s inside the man. It is our
job to sort out the right one, but
even then, we will not really know
them until they are in the Oval Of­
ABA Treasurer Tom Rideout, se­
nior vice president and director of
government relations, First Union

LEFT—Convention Chmn. Curt Zimbelman, a.v.p., First Western, Minot, left, visits with general session speaker, Hugh Sidey, journalist,
T I M E Magazine. RIGHT— Mr. Huber, left, shown here with James Vining, pres., Vining-Sparks Securities, Inc., Memphis.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987


North Dakota News

LEFT—Taking part in the joint luncheon were, from left: Mr. Huber; Mr. Argue, Gary Wickre, pres., First Bank Minot, and former Oklahoma
Governor George Nigh. RIGHT—ABA Treas. Tom Rideout, sr. v.p., First Union Corp., Charlotte, N.C., told bankers the future of the industry
is in jeopardy.

LEFT—Enjoying one of the many hospitality suites were, from left: LeRoy Lokken, v.p., Bank of Tioga, and wife Avis, with Charlotte and
Allen Highum, v.p., First Bank, Minneapolis. RIGHT—Visiting at the North Central Life suite were, from left: Mark Brown, e.v.p., and
Marlys, a.v.p., Security State, Hannaford; Dave Okeson, reg. mgr., North Central Life, St. Paul, and Steve Steinborn, v.p., F&M Bank, Wim-

Corporation, N.C., gave his view­
point on the banking industry and
the role of the ABA. “The ABA
wants to get bankers fired up poli­
tically, intellectually and for the
overall approach,“ he said. Mr. Ride­
out’s comments centered on “Bank­
ing & The Future: A Longer View.”
He said there are three questions
that bankers should be asking them­
selves: what are the issues, what can
banks do to prepare for these future
changes, and what can the ABA do
to help. Mr. Rideout warned, “Un­
less changes take place, the future of
the industry is in jeopardy.”
At the conclusion of the general
session, various special interest pre­
sentations were given. They in­
cluded comments from Jeff Bran­
don, NDBA insurance manager,
who spoke on Banclnsure; Jeff Rodman, vice president, MASI, Des
Moines; Les Nelson, member, NoDakBancPac; Warren DeKrey, ND
State Development Credit Corpora­
tion, and William Sanger, Nominat­
ing Committee report. Mr. Huber
also gave his president’s report at
this time.

Banker, July, 1987
Federal Reserve Bank of St. Louis

Mr. Huber, in his report, said the
1987 state legislative session had its
own uniqueness. “We don’t have
mandatory mediation in North Da­
kota,” he said, “and we won’t need it
because of your commitment to your
communities and your service area.
NDBA has achieved expanded pro­
ducts and services legislation in the
form of a securities and brokerage
consultation law.” Concluding his
remarks on legislation, Mr. Huber
called on bankers to “help with the
process; getting good legislation
passed and bad legislation put to a
timely death.”
Speaking on economic recovery in
the state of North Dakota, Mr.
Huber said, “This will not be rapid
for most of us. I am convinced that
recovery will be enhanced if the
bankers of this state take an active
part in diversification of our state’s
economy. Undoubtedly, most of the
economic development projects will
still be ag related.”
Looking ahead, the NDBA will be
hosting a special Legislative Leader­
ship Summit on September 22 in
Bismarck. In lieu of the four group

meetings that are normally held,
this special state-wide meeting will
give bankers the opportunity to
speak out on matters of bank struc- <9
ture. Mr. Huber commented, “This
will be a genuine opportunity to
have a say in North Dakota’s bank­
ing future.”
The 1988 NDBA Convention will #
be held June 13-14 in Grand Forks,
then be back in Bismarck in 1989. □

Kotte Named NABW
Woman of the Year


Penny Kotte, compliance officer
and supervisor of deposit services at
First Bank Fargo, has been named
recipient of the National Associa­
tion of Bank Women’s second an- ®
nual woman of the year award. The
award is based on association, parti­
cipation, community activities and
professional organization involvement.

Two VPs Named in Fargo
Pamela Anderson has been apNORTH DAKOTA NEWS. . .
(Turn to page 37, please)


City prior to transferring to Sioux
Falls in 1976. In 1979 he joined
Norwest Bank South Dakota as an
assistant controller and in 1984 was
named vice president, cost account­

Elected in Sioux Falls

L. Ness, pres., Yankton
J.M. Schwartz, exec, v.p., Pierre

Promoted in Rapid City




At Norwest Bank South Dakota
in Rapid City, Tom Naasz has been
promoted to vice president, private
banking and William Grant to vice
president, business banking.
Mr. Naasz joined Norwest in 1977
in Rapid City and from 1978 to 1982
was assistant manager of the Moun­
tain View office. In 1983, he was
named assistant vice president and
manager of Villa Ranchaero until being named assistant vice president,
private banking in 1984.
Mr. Grant joined Norwest in 1975
in Rapid City and was named com­
mercial loan officer in 1976. He was
promoted to assistant vice presi­
dent, business banking in 1984.
Also at Norwest in Rapid City,
Brenda Schmidt has been named

mortgage loan officer. She joined
Norwest in 1975 and in 1983 began
working in the mortgage loan de­
partment, being named a mortgage
loan originator in 1986.

First Bank of South Dakota has
elected Terry L. Kappes vice presi­
dent and financial services group
manager. Mr. Kappes joined the
bank in 1977 as a collector, became
an officer in 1979, was named assis­
tant vice president in retail banking
in 1983, and most recently served as
the retail collection manager.

Norwest Names VP
Craig Johnson has been named Bank Opens in Sioux Falls
vice president, community banking
Dial Bank is a newly chartered
N o rw e st
bank, doing business as of
Bank South Da­
May 15 in Sioux Falls. President
kota and Nor­
and CEO of the new bank is Michael
west Bank Min­
S. Kuzeppa.
n e ap o lis. Mr.
Johnson joined
Norwest Audit
Name Change in Veblen
Services in 1964
as an accountant
The Bank of Veblen, Veblen, with
in Minneapolis.
a branch at Britton, has changed its
He served Nor­
name to Marshall County Bank, ac­
west in Rapid
cording to the South Dakota Divi­
sion of Banking and Finance.

Consulting Firm Opens
in Sioux Falls




Pres. Elected in Whitefish

Convention Update

Keith Armstrong has been elected
president of the First National Bank
of Whitefish. He previously held the
position of president with the First
National Bank of Eureka. Both
banks are affiliates of Evergreen
Bancorporation, Inc.
Mr. Armstrong began his banking
career with First Bank System in
1971 in Billings, and transferred to
Lewistown in 1972. In 1973 he
moved to First Bank—Langdon, N.
Dak. From 1976 to 1986, Mr. Arm­
strong was vice president and cash­
ier at First Bank—Livingston,
Mont., and in 1986 was elected
president of the Eureka bank.

At the time this issue was
going to press, the Montana
Bankers Association was hold­
ing its Annual Convention in
Sun Valley, Idaho.
James Bennett, president of
First Citizens Bank Billings,
was scheduled to advance as
president of the association,
succeeding W.E. “ B uster”
Schreiber, chairman and presi­
dent of Mountain Bank of
The complete convention
report with photos will appear
in the August issue of T he
Federal Reserve Bank of St. Louis

N orthwestern B a n k e r .

R.A. Nelson of Sioux Falls has
opened a business management con­
sulting firm that deals with taxa­
tion, banks and insurance com­
panies. Mr. Nelson is a CPA and has
been an accountant, auditor and of­
fice manager for various companies.
He will also work in Des Moines and
(Continued from page 36)
pointed vice president and account
executive of First Bank Fargo. She
joined the bank in 1986, having pre­
viously been employed by First
Trust Company of North Dakota
since 1973.
Charles A. Ostlund has been ap­
pointed vice president and financial
services group manager. He joined
the First Bank System Data Pro­
cessing Center in 1965. Until his re­
cent appointment, he was manager
of the transaction processing center.
Northwestern Banker, July, 1987


WBA OFFICERS for 1987-88 are, left to right: Immed. Past Pres — N.P. Van Maren, Jr., vice
chmn., Hilltop Natl., Casper; Pres.—William H. Ruegamer, pres., First Interstate Bank of
Sheridan; First Vice Pres.—Auburn W. Dowdy, chmn., Norwest Bank Cheyenne; Second
Vice Pres.—Jerry W. Rankin, pres., First Wyoming Bank—Jackson, and Exec. V.P.—
Gretchen Tea, Casper.

Bill Ruegamer Heads Wyoming Bankers
tities have over $ 1.2 billion, and the
state has about $3 billion interestbearing funds. Wyoming gets 37%
of all royalties from federal lands in
HEN they addressed the our state. Although the assessed
Wyoming Bankers Associa­ valuation of our state is going down,
tion’s 79th Annual Convention at the State of Wyoming is in an extra­
Jackson Lake Lodge, Moran, on ordinary position. I expect Wyom­
June 15, Wyoming’s Sen. Alan K. ing’s economy to be back full tilt in
Simpson and Repr. Dick Cheney two to three years. It is important to
know that nobody can get away
agreed on several key points:
Wyoming is in a depressed from us those trust funds—they’re
state because of its close reliance on ours!’’
2. There should be concern over
income from agriculture and energy
sources. The effects of that reliance the health of the FSLIC. Both men
will not be relieved until one or both believe FSLIC needs at least a $15
of those industries experiences a billion infusion of funds and that the
turnaround, and the state develops proposed $5 billion will only delay
matters or make them worse.
alternative sources of revenue.
3. The United States needs to
Sen. Simpson reminded his audi­
ence that “Wyoming’s permanent maintain its naval presence in the
mineral trust funds exceed $900 mil­ Persian Gulf and should have an an­
lion, the University and other en­ nounced plan to the world as to ac­


tions it will take under given sets of 0
circumstances by warring parties.
In addition, our allies should be
billed their proportionate share of
our expense for such a presence of
the U.S. Navy. For example, our na- #
tional interests are only 7% depen­
dent on Persian Gulf oil shipments,
while Japan is 60% dependent on
that oil and European nations are
35% dependent on it.
There will be little or no tinker­
ing with the 1986 Tax Bill. If any
taxes are increased, “The best bet is
excise taxes on alcohol, tobacco and
gasoline—but any such increases •
would bring in minor revenue.”
Sen. Simpson and Repr. Cheney
were the opening speakers at the
first general session on Monday
morning, and took part in a lengthy •
question and answer period.
At the same morning session the
delegates advanced William H. Rue­
gamer, president, First Interstate
Bank of Sheridan, to the WBA presi- ®
dency. He succeeds N.P. Van
Maren, Jr., vice chairman at Hilltop
National Bank, Casper.
Moving up to first vice president
is Auburn W. Dowdy, chairman of ®
Norwest Bank Cheyenne. He is suc­
ceeded as second vice president by
Jerry W. Rankin, president, First
Wyoming Bank—Jackson.
Gretchen Tea continues as execu- ®
tive vice president at WBA head­
quarters in Casper.
H.D. Shellenbarger, pres. & CEO,
First Wyoming Bank—Torrington
was named to fill out the last year of ®
Mr. Rankin’s two-year term on the
WBA board of directors. Elected to
full two-year terms on the board
• Pete Waller, president, Dubois ^
National Bank.
• Mike Daly, president, First
State Bank, Wheaton.

PICTURED at First Interstate of Casper reception the first night were, left to right: Chuck Pedersen, pres. & host, and his wife, Wanda; La
Rae and John Warden, pres., First Interstate, Riverton; Nancy and Lynn Duncan, v.p. of host bank; Janet and Homer Scott, Jr., chmn., Com­

merce Bancshares, Sheridan.
Banker, July, 1987
Federal Reserve Bank of St. Louis

Wyoming News


OPENING SESSION speakers included, left to right: C.C. Hope, Jr., dir. of FDIC, Wash., D.C.; N.P. Van Maren, Jr., pres. WBA and chmn.,
Hilltop Natl., Casper; Wilbur T. Billington, recently retired exec, v.p., Federal Reserve Bank of Kansas City; Wyoming Congressman Dick
Cheney (at mike) and Sen. Alan K. Simpson.

LEFT— Visiting at Norwest Bank Nebraska dinner party were, from left: Don Kraen, pres., Wyoming B&T, Buffalo; Jay Bordewick, pres.,
Equality Bank of Evansville; Fred Hesse, chmn., Wyoming B&T, Buffalo; Tim Tewes, fin. inst. off., and Howard Nielsen, v.p., both with Nor­
west Bank Nebraska, Omaha. RIGHT— Don Towle, pres., Kansas Bankers Surety, Topeka, and his wife, Adeline, with Jim Voll, pres., Hulett
Natl., Hulett.

• Charles Krebs, president, First
Wyoming Bank—Riverton.
• Douglas Crouse, president, Se­
curity State Bank, Basin.
C.C. Hope, Jr., who was con­
firmed March 27th as a director of
the FDIC, pointed out in his keynote
address that the current three mem­
bers of the board represent “The
first time that all three board mem­
bers have had hands-on banking ex­
perience. We meet at least once a

LUNCHEON speaker J. Denis O’Toole is
pictured with his wife, Joan, and their
daughter, Moira.
Federal Reserve Bank of St. Louis

week, and frequently more often by
conference telephone.”
Mr. Hope related the vital statis­
tics that FDIC currently must work
with, and discussed the programs
FDIC is utilizing to carry out its
public duty and what is is doing to
help banks nationwide.
He was followed to the platform
by Wilbur T. Billington, recently re­
tired executive vice president of the
Federal Reserve Bank of Kansas
City. Mr. Billington gave his per­
sonal look at the regulatory changes
that have affected banking, the role
of the Fed in that process, and the
regulatory and legislative changes
that are needed to allow banks to
compete squarely with new, unregu­
lated competitors.
James Sulgrove, state AIB chair­
man and vice president of First Na­
tional Bank, Gillette, presented an
AIB film designed to encourage
bank support for the extensive AIB
educational programs.
Noon luncheon speaker was J.
Denis O’Toole, director of legislative
operations and senior legislative
council for the ABA. After describ­
ing the process ABA uses to formu­
late legislative policy and lobbying,
Mr. O’Toole showed ABA’s newest

film that portrays graphically how
individual banks and bankers can be
involved in this process.
The formal program was con­
cluded by Arch Lustberg, CEO of
Arch Lustberg Communications,
Inc., Washington, D.C. He gave a
two-hour seminar on “Winning at
C onfrontation.” Mr. L ustberg
works one-on-one or in small groups
of key people to train them how to
meet the press, prepare for impor­
tant and stressful conferences, etc.
His services have been widely uti­
lized by executives of many banker
Mr. Lustberg lived up to his repu­
tation and his own basic teaching
with his presentation, despite some
very adverse circumstances. First, a
young room attendant wheeling in
two large TV monitors for Mr. Lustberg’s program carelessly wheeled
the cart too fast across a carpeted
area, jammed the wheels on the car­
pet but kept forcing the cart and it
tipped, sending the expensive moni­
tor crashing to the floor. Mr. Lust­
berg looked on calmly, made arWYOMING NEWS. . .
(Turn to page 43, please)
Northwestern Banker, July, 1987


NEW and retiring officers of the Colorado Bankers Association are, from left: Retiring
Chmn. — Royce Clark, chmn. & CEO, IntraWest Bank, Greeley; Immed Past Pres. & new
chmn.—A.J. Tony Anderson, pres., Kiowa State; Pres.—Jon P. Coates, chmn., Century
Bank, Denver; Pres.-Elect— Dave Scruby, Sr., pres., Evergreen Natl., Evergreen, and Exec.
V.P. — Don A. Childears, Denver.

Jon Coates Heads Colorado Bankers
EARLY 500 bankers, spouses
and guests attended the 86th
annual convention of the Colorado
Bankers Association early last
month at The Broadmoor in Colo­
rado Springs.
At their annual meeting during
the first general session, members
advanced Jon P. Coates, chairman
of Century Bank, Denver, to the
CBA presidency. He succeeds A.J.
Tony Anderson, president of the
Kiowa State Bank in Kiowa, who
will be chairman of the CBA board
of directors in the coming year.
Completing his term as CBA chair­
man was Royce Clark, chairman and
CEO of IntraW est Bank in Greeley.
The new president-elect is Dave
Scruby, Sr., president of the Ever­
green National Bank in Evergreen.
Continuing as executive vice presi­
dent and head of the professional
CBA staff at headquarters in Den­
ver is Don A. Childears.
In his president’s address, Mr.
Anderson said, “With the economy
as it is in Colorado today, the need
for the Colorado Bankers Associa­
tion was never so important as it is
today. As the demands of the mem­
bership have increased, CBA has re­
sponded well.’’ He itemized briefly
four areas through which the CBA

Banker, July, 1987
Federal Reserve Bank of St. Louis

honors its mission statement to
serve the membership as a represen­
tative of Colorado bankers to
government, business, the public
and the banking industry.
On government relations he
stated that “in the state legislature
we had 38 issues we lobbied in 1986,
and that doubled to 76 issues in
1987 and they’re still in session.’’
Mr. Anderson concluded by stating,
“All banks in Colorado need the
CBA and the CBA needs the active
support of all of you. We need each
other. The Colorado Bankers Asso­
ciation is why Colorado banking will
remain Safe, Sound and Secure (the
convention theme).’’
Dick Tucker, president of Tri State
Bank in Denver, gave a hard-hitting
appeal for funds to Col Bank Pac, for
both the state fund and the national
ABA fund. Colorado bankers contri­
buted $ 10,000 last year, he said,
while realtors amassed $240,000,
home builders $90,000, nursing
homes $18,000, s&ls $45,000, and
the Colorado Independent Bankers
Association $50,000. He set a goal
of $50,000 in the next 18 months.
Mr. Tucker also challenged new
CBA President Jon Coates to for­
mulate a private committee of bank­
ers to sit down with the CIBA in
order to seek a united front for Col­
orado banking.
Mr. Scruby, the new President-

Elect, stated in his brief remarks, “I
think we should remember that as in
all things there is room for compro­
mise (with the CIBA) and that
doesn’t mean we or they should capi­
tulate, but seek compromise to com­
mon ground.’’
ABA President Mark Olson
thanked the many CBA members
who take an active part in ABA af­
fairs, including the Leadership Con­
ference. Mr. Olson reviewed the cur­
rent status of the banking bills in
Congress and noted that Colorado
Sen. Armstrong would be one of the
Senate Banking Committee team
taking part in the House-Senate
Conference committee scheduled to
meet soon. Mr. Olson noted that
Colorado’s Sen. Wirth also is on the
Senate Banking Committee, thus
giving Colorado the unique distinc­
tion of having two Senators on the
Banking Committee, which repre­
sents 10% of the voting on the 20
member committee!
Mr. Olson said ABA’s efforts to
keep legislators, regulators and the
public informed are bearing fruit
and that many in those constituen­
cies have a sense that something
needs to be done in banking legisla­
tion. He said the courts, for exam­
ple, have ruled affirmatively in all
seven cases over the past year in
favor of the banking industry on se­
curities powers questions. One posi­
tive factor, he added, is that all fed­
eral regulators are now strong sup­
porters of the industry’s search for
expanded powers.
CBA’s Don Childears gave a man­
agement report detailing the ways
in which CBA is responding to mem­
ber needs in addressing the current
economic problems in the state. He
said the CBA board met as the con­
vention started and authorized the
filing of a brief with the Colorado
Supreme Court challenging the vali­
dity of a new escheat law just en­
acted by the Colorado legislature.
He reported that all activities of
the association have been enhanced
to meet current economic chal­
lenges. Necessary CBA budget cuts
have been made in such a way that
“we are making sure we provide
those services you need the most,
and cutting out others,” he said.
Finishing up the general session
Saturday morning were John Cas­
sis, president of Second Wind in
Wheaton, 111., speaking on “How
Does Your Interest Rate?”; Jack
Whittle, president of Whittle &

Colorado News


LEFT— First session speakers included CBA Pres. Tony Anderson, pres., Kiowa State, and ABA Pres. Mark W. Olson, pres., Security State,
Fergus Falls, Minn. RIGHT—Hosting Central Bank of Denver’s 40th annual CBA Breakfast were, I. to r.: Bill Tumelty, v.p. & mgr., corresp.
bk. div.; Rick McElroy, v.p.; Diane Sweeney, corr. bk. off., and Joe Lincoln, pres.

LEFT—Gar Anneler, chmn., United Bank of Colorado Springs, and his wife, Shar; Bev and Dick Muir, v.p., United Missouri Bank of Kansas
City. RIGHT— Roger Guffey, pres., Federal Reserve Bank of Kansas City; Patsy and Don Hoffman, chmn. and CEO, Central Bancorporation
and Central B&T, Denver.

LEFT— CBA Pres. Tony Anderson (left) presented a $10,000 check from CBA to Paul Ballantine, dir. of the Center for Economic Develop­
ment at the University of Colorado in Colorado Springs, which carries out the teaching work of the Colorado Council on Economic Educa­
tion. Mr. Ballantine also is chmn. of the dept, of economics at the University. RIGHT—Plaques were presented at the noon luncheon to
several members of the Colorado legislature in appreciation for their considerable interest in the banking bills before the legislature this
past session. Pictured are Don Childears, CBA exec, mgr.; Repr. Jim Dyer; Rep. Wilma Webb; Sen. Mike Bird, and CBA Pres. Tony Ander­

Hanks, Chicago, on “a Marketing
Game Plan for the Future,” and The
Hon. Roy Romer, Governor of Colo­
Following the hilarious noon lun­
cheon talk given by Bob Murphey,
attorney and down-home humorist
from Nacogdoches, Tex., President
Anderson presented plaques to sev­
eral Colorado legislators for out­
Federal Reserve Bank of St. Louis

standing service, and to several new
50-year bankers.
Twelve “Think Tank Sessions”
were offered Friday, in addition to
hearing general session speakers.
The best attended of these current
topic discussions were the three
devoted to Loan Review and Loan
As usual, The Broadmoor facili­

ties offered superior golf and tennis
opportunities for guests. Regis­
trants enjoyed a Western Night buf­
fet dinner and entertainment Thurs­
day evening. Friday night featured
the formal banquet, followed by a
dazzlingly superb performance by
pianist Roger Williams, who was ac­
companied by selected members of
the Air Force Academy orchestra. □
Northwestern Banker, July, 1987


Colorado News

North Denver Bank Holds Grand Opening

member bank loan officer. Jan B. 0
Smedley, a trust portfolio manager,
has been appointed trust invest­
ment officer. Cheryl A. Crandall, a
corporate trust administrator, has
been appointed corporate trust officer.

Named in Denver

CENTRAL BANK of North Denver recently moved into a new 30,000 square foot facility. The

new bank is located on their existing property. The two-story structure features a 33-foot
ceiling in the lobby and 440 square feet of glass in the entryway. The facility consists of the
main building with drive-in capabilities and a smaller companion building housing two
PLUS SYSTEM machines. A variety of grand opening events are planned.

Daniel V. Sheehan has been
named vice president in real estate •
banking for United Bank of Denver.
He joined the bank this year.
Dana M. Luter and David A.
Dines were named asset manage­
ment officers, and Keith F. Woods #
was named associate counsel. Ms.
Luter works in asset management’s
employee benefits administration
area. Mr. Dines is manager of em­
ployee benefits administration. Mr. ®
Woods is an attorney in the legal
and compliance department.

Elected in Northglenn
CNB Announces Changes

issues and other corporate trust ac­
counts. Mr. Merritt is responsible
for the bank’s note operations, cor­
porate client services and interna­
tional divisions.

United Bank of Northglenn re- ®
cently elected Thomas W. Swanson,
executive vice president of United
Banks of Colorado, Inc., as its chair­
man. Bradley J. Stelling, president, ^
chairman and CEO of United Bank
of Broomfield, was elected a direc­

David R. Witte, formerly senior
vice president and treasurer of
IntraWest Financial Corporation,
has joined Colorado National Bankshares. He will be responsible for the
company’s facilities, tax and risk Central Bank Announces
management functions, and has Staff Changes
been elected a vice president.
Central Bancorporation, Inc. Named in Estes Park
Meanwhile, Colorado National recently named Kerri L. Quinn to
First National Bank of Estes
Bank of Denver has announced se­ sales support di­
Park has named Janet K. McMurry
veral officer changes.
rector. She has
to be administrative officer and stu­
Promoted to vice presidents were extensive experi­
dent loan officer. She has been with
Barry Gatz, David Eikner, Byron ence in sales,
the bank since 1978, most recently
Bateman and Rex Thorpe. Mr. Gatz most recently as
as administrative assistant.
will direct the sales, marketing sup­ a ss is ta n t vice
port and business development acti­ p re s id e n t
Boulder Banks To Merge
vities of the banking division. Mr. sales at Colum­
United Banks of Colorado, Inc
Eikner will manage personal lend­ bia Savings in
has filed an application with the
ing, preferred lending, consumer Denver.
Comptroller of the Currency to
lending and VISA banking. Mr.
Meanwhile, at
merge United Bank of Boulder into
Bateman will be responsible for the Central Bank of
portfolio administration of the fi­ Denver, several staff changes have IntraW est Bank of Boulder. On
March 31, United Bank had assets
nancial institutions division. Mr. been announced.
Thorpe will administer an agricul­
Randall F. Komisarek, senior of $99.6 million while IntraW est had
tural loan portfolio.
staff attorney, has been promoted to assets of $128.4 million. Paul Troyer
Promoted to assistant vice presi­ vice president and general counsel, will be chairman and CEO of the
dents were Elsy Wodark and and Philip J. Randell, assistant vice merged bank, and Larry E. Meyer
Timothy Guest. Ms. Wodark, who president of correspondent banking, will be president. The merged bank
previously worked for Metro Na­ has been advanced to vice president. will be headquartered in the Intra­
Eugene H. Yoshida, pension trust West facility at 1242 Pearl Street.
tional Bank, is administrator of the
special assets division. Mr. Guest’s officer, has been promoted to assis­
Pueblo Bank Wins Award
duties include the marketing and de­ tant vice president.
United Bank of Pueblo recently
Roy J. Becker, formerly assistant
velopment of international products
vice president of the international received its third consecutive quali­
and services.
Elected bank officers were Colleen banking department for Central ty of service award for United
Costigan, Randilyn Buck and Coleen Bank for Cooperatives, has been ap­ Banks of Colorado. It is the only
Merritt. Ms. Costigan serves as pro­ pointed international banking offi­ bank that has won the award more
duct development specialist. Ms. cer. Scott B. Gordon, a member than twice. Craig Ockers is presiBuck administers housing bond bank lender, has been appointed dent of the bank.
Banker, July, 1987
Federal Reserve Bank of St. Louis








Colorado News


Central Bank of Glenwood Springs Observes Centennial

NEW AND OLD photographs show Central Bank of Glenwood Springs, which recently celebrated Its 100th anniversary. It is one of the
city’s oldest continuing businesses. To thank the community for its support, the bank donated 167 acres of land for public use. The gift
was presented to the mayor of Glenwood Springs during a public dedication. A number of special events were planned, including a retro­
spective exhibit of banking in the community.

Englewood Banker
Wins BMA Award

Among 15 marketing plans and
case histories accepted for its collec­
tion by the Information Center of
the Bank Marketing Association
was one by Mitzi Kaufman of First
National Bank of Englewood. The
paper was entitled “Cost/Benefit
Analysis on Shopper/Training Pro­
gram.” The submissions were writ­
ten by graduates of the 1987 BMA
School of Bank Marketing at the
University of Colorado, Boulder.

through Tuesday took part in a cas­
ual dinner party at which awards
were presented for various athletic
Although attendance was only
about 250, all registrants enjoyed
the usual beauty of Jackson Lodge
and the Teton Mountains, and the
upbeat tone of key speakers.

(Continued from page 34)

eral Savings & Loan in Virginia,
Richard H. Jones has been named
a director of Valley Bancorporation.
He serves as senior vice president of
the corporation for the Fox Region
and is president/CEO and a director
Appointed in Wheatland
Norwest Bank Wheatland has an­ of Valley Bank in Appleton.
nounced the appointment of James
E. Hillberry as vice president, com­ Award Nominations Asked
Nominations are being accepted
mercial and agricultural loans. He
joins the bank with over 12 years of for the second annual Wisconsin
ag lending experience. Mr. Hillberry Community Banker Award of Excel­
(Continued from page 39)
most recently served with the First lence, which honors a banker for ser­
vice to the community, to his or her
rangements for a replacement, then National Bank of Powell.
bank, and to the banking profession.
proceeded at the appointed time. At
The purpose of the award is to in­
a key point late in his talk when he Stockmens Ads Honored
Stockmens Bank and Trust Com­ crease public awareness of the im­
was about to display some impor­
tant video tapes on the TV moni­ pany, Gillette, was honored recently portance of community bankers to
tors, an afternoon mountain storm by the Rocky Mountain Chapter of the economic and social vitality of
hit the area, knocking out all elec­ the Bank Marketing Association their communities and to recognize
tricity. With no microphone power with the 1987 Gold Peak Award. excellence in banking.
The award is sponsored by Wil­
and no video displays, Mr. Lustberg The award recognizes outstanding
humorously and graciously jumped efforts in institutional marketing liams, Young & Associates, a Madi­
to a brief conclusion of his seminar. during 1986, according to John son accounting firm. Any active
He was given a standing ovation Cromwell, senior vice president and bank officer or director in Wisconsin
and was told “You put on an electric COO for the bank, who oversees is eligible. Anyone who can describe
the banker’s qualifications may sub­
performance—You blew our minds marketing.
and the electricity at one time.
Stockmens entered the competi­ mit a nomination. Forms are avail­
tion in the institutional marketing able from Ray Weihofen, Williams,
That’s power!”
In addition to private parties and category for banks with assets be­ Young & Associates, P.O. Box 8700,
receptions, guests were entertained tween $75 and $200 million. The Madison, WI 53708, or call (608)
with a tasty luncheon and a typical winning entry, produced by Sage 274-1980. Entries must be made by
elegant dinner prepared by the Jack- A d v ertisin g /B illin g s, was the August 1.
Presentation of the award will be
son Lake Lodge staff, and took part “Tough as the Times” multi-media
in golf, tennis, boating, fishing, hik­ campaign which appeared in the made at the Independent Bankers
ing and other entertainment in their News-Record, on local radio, and on Association of Wisconsin conven­
tion in Stevens Point in September.
free hours. Guests who stayed billboards during late 1986.
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

tants, Inc. is located at 9140 West
Dodge Road, Suite 270, Omaha, NE
68114. Phone is (402) 391-1344.

Promoted in Millard

Consultant Firm Opens
A new firm in Omaha has been
formed to assist community banks
in fine tuning their management
systems. Midwest Management
Consultants offers several types of
consulting services: planning ser­
vices, spin quarterly analysis, loan
administration, operational perfor­
mance, regulatory compliance and
representation, mergers and acquisi­
tions, and agency placement.
The company also owns five
BankDisk software packages: Gap
Manager, Controller, Agricultural
Credit Analysis, Commercial Credit
Analysis and Client Profitability
Analysis. Other software can be ob­
tained according to the client’s

T THE May meeting of FirsTier
Bank Lincoln’s board of direc­
tors, Orrin A. Wilson was named
president and chief operating offi­
cer. Mr. Wilson previously held the
position of senior executive vice
president of FirsTier Bank Lincoln.
William C. Smith has assumed
the title of chairman and chief execu­
tive officer of FirsTier Bank Lincoln.
Mr. Smith also holds the position of
president and chief executive officer
of FirsTier Bank Omaha and Firs­
Tier Financial, Inc., the holding
Federal Reserve Bank of St. Louis

President of the firm is Ronald L.
George, whose 34 year banking
career includes both private sector
work and service with the Office of
the Comptroller of the Currency. He
has been regional director of special
surveillance at the OCC Kansas City
Executive Vice President David
C. Melena’s 11 years experience in­
clude service with the Comptroller
of the Currency and employment
with Norwest Bancorporation’s
fund management group as senior fi­
nancial analyst.
Vice President Robert E. Neville
has spent seven years in direct bank­
ing and systems consulting.
Midwest Management Consul­

company for both the Lincoln and
Omaha banks.



Lynn F. Bluml has been promoted
to vice president in the business
banking depart­
ment at Norwest
Bank Nebraska
in Millard. He
m ost recently
served as assis­
tant vice presi­
dent in the spe­
cial loan admin­
istration area at
N o rw e st
O m aha,
prior to that served as agricultural
loan officer at the Norwest Bank in
Denison, Iowa.

Promoted in Syracuse
Kim Martacho, an employee of
First National Bank & Trust of
Syracuse since 1974, has been pro­
moted to cashier. The bank’s pre­
vious cashier was Steven A. Gehle,
who has resigned to become senior
vice president of operations at SAC
Federal Credit Union in Omaha.
Mr. Wilson, a native of Clinton,
la., was named senior executive vice
president of First National Lincoln
in 1980 when he moved to Lincoln
after 18 years with the Northern
Trust Company of Chicago where he
was named vice president in the cor­
respondent bank division in 1976. A
graduate of the University of Iowa,
Mr. Wilson completed graduate
work at Stanford University in
Credit and Financial Management.
Presently, Mr. Wilson serves as
chairman of the Bryan Hospital
board of trustees and on the board of
trustees of First Plymouth Church.
He has been active in many civic and
charitable endeavors in Lincoln.
New directors elected to the Firs­
Tier Bank Lincoln board include
Larry Frazier, president and CEO of
Farmers Mutual Insurance Com­
pany of Nebraska; John Haessler,
president and CEO of Woodmen Ac­
cident & Life Company, and Gates
Minnick, president of DuTeau Chev­
rolet. Not standing for re-election
were Clark W. Faulkner, Sr., retired
chairman of Woodmen Accident &
Life Company and Deane H. Pettett,
retired president of Farmers Mutual
Insurance Company.
Northwestern Banker, July, 1987

Steven H. Durham and David R. ^
Parker have been elected to the
board of directors of FirsTier Bank
Mr. Durham is president of Dur­
ham Resources, an Omaha-based in- ^
vestment and management com­
pany. He replaces Charles R. Dur­
ham, who will remain chairman of
the board of the holding company,
FirsTier Financial, Inc.
Mr. Parker is vice president of
Double Eight Land Corporation, a
privately-held cattle and ranching

O m aha
FirsTier, Inc. shareholders have ployee relations and staffing for
voted to change the corporation’s Nebraska, previously served as as­
name to FirsTier Financial, Inc. Ac­ sistant vice president.
cording to President and CEO Wil­
liam C. Smith, the board believes the
name will better describe the com­
pany for stock analysts, potential in­
vestors and customers.
Elected a new director was Milton
E. Whitehead, Jr., chairman of the
board and CEO of Whitehead Oil Co.
* * *
Norwest Bank Nebraska has an­
nounced the following promotions:
Lydick and Sara
M asters, vice
James Ingold,
control and ser­
vice o ffice rs;
Rikki Hulsebus
and Vince Pille,
a s s is ta n t vice
president, and Yvette Walker,
private banking officer.



Ms. Lydick, previously director of
training and development in San
Diego, Calif., will serve in that capa­
city for Nebraska and Iowa. Ms.
Masters, now vice president/emNorthwestern
Banker, July, 1987
Federal Reserve Bank of St. Louis



Talk To The Municipal
Bond Professionals

William March

Robert E. Roh


Exec. Vice President

Patrick H. Rensch

C.W. (Chuckji Poore, Jr.

Sr. Vice President

Sr Vice Resident

Bill Abts, Jr.

Wayne A. Rasmuss

Vice President



Mr. Barone works in control and
services at the downtown Omaha of­
fice, which department he has man­
aged since 1984. Mr. Ingold also
works at this office, where he has
been investment operations super­
visor and reconciliation manager.
Ms. Hulsebus serves in compensa­
tion and benefits at the downtown
Omaha office. She previously was
compensation and benefits officer.
Mr. Pille is also employed at this of­
fice in business banking. His pre­
vious position was as a senior con­
Ms. Walker has been named pri­
vate banking officer at the Omaha
Regency location. She has worked in
private banking since last Decem­

Micky Krupinsky

John Trecek



For municipal bond OFFERINGS,
BIDS and APPRAISALS, call on
the professionals who specialize
in tax-free bonds.

Municipal Bond
Underwriters, Inc.
Investment Bankers • Underwriters
208 South 19th Street, Omaha, Nebraska 68102
(402) 341-1144

In Nebraska Call Toll Free (800) 642-4413


In the banking business, you measure success any number of ways. But no
matter how you figure it, we set records in total assets. Earnings. Trust Department
performance, 'fears in business. Number of customers.
We’re proud of our solid growth. And proud to serve you — and assure you —
with our strength, financial expertise and experience.
Few institutions offer you what we can in performance and stability. We’re one
of the few banks in the area that has never had to change its name. We’re a vital part of
Omaha— governed by people who live and work here.
After 124 years of business, we’re still growing strong. That’s why we’re proud
of our name.

No Wonder They Call Us First.

firs! national bank
Federal Reserve Bank of St. Louis

Member FDIC

Northwestern Banker, July, 1987


Nebraska News

NBA Ads Seek
Above All to Educate
UNIQUE advertising campaign has been under­
taken by the Nebraska Bankers Association, one
which instead of promoting bank services, seeks to ex­
plain how banks work.
“We want you to know us even better” is the slogan
used in the series, which has been co-created by the
NBA and Bailey Lewis & Associates ad agency of Lin­
coln. By explaining how banks function at the commu­
nity level, the ads show that the banking industry is
still strong, in spite of economic declines in many agri­
culture-related industries.
“With the stress the Midwest is experiencing
because of the ag situation, we felt everyone needed to
know more about the role banks play in solving or at
least helping to solve people’s problems,” said C.G.
“Kelly” Holthus, immediate past-president of the
NBA. “This series of print messages has allowed us to
reach people all across the state with our message.”
Each ad in the series ran twice in local newspapers all
over the state.
Because of the many topics the Association wanted
to discuss, and the educational format desired, the
agency chose a newspaper campaign above broadcast.
“We felt with the great amount of information to be
conveyed that a series of newspaper ads would be the
most effective,” said Rich Bailey, agency creative
director for the series. “Much of what we’re saying in
these ads has never been conveyed in this much depth
before. By using newspaper ads, we could take the
time to fully explain material that would be unfamiliar
to most readers.”
“The needs of the Nebraska Bankers Association
were unique,” explained Jim Lauerman, president of
Bailey Lewis, “and the goal was far more educational
than promotional.”
One ad explained margin, discussing interest rates
for both loans and deposits. It advised, “The old adage
th a t’s been a rule of thumb in the banking industry for
many years still applies: ‘Risk and rate go hand in
hand.’ Check out the safety of your money before you
invest your hard-earned savings.”
Another message discussed “legislated debt relief.”
“Anytime debts go unpaid, somebody else foots the
bill,” it said. “We hope you’ll agree that our govern­
ment leaders should not create an environment where
it’s expedient for a borrower to escape his or her finan­
cial responsibilities.”
A third ad talked about Nebraska banking’s com­
mitment to the state economy. “The bulk of that
money [the $8 billion currently loaned out by Nebraska
banks] has stayed right in your hometown. Nebraska’s
banks have made that commitment to local communi­
ties because th a t’s exactly what they’re in business to
do. Each bank’s well-being is tied to the good health of
the local economy.”
The NBA saw the campaign as more than good pub­

Banker, July, 1987
Federal Reserve Bank of St. Louis

lic relations. Said Mary White, NBA director of com­
munications, “Part of our thrust was to reach the opi­
nion-makers of the state.” It is hoped that education in
the basic concepts of banking will increase understand­
ing of and support for banks.
Response to date has been extremely favorable. The
series has received positive comments from citizens,
member banks, and other states. The president of one
of the largest agricultural corporations in the state
contacted Mr. Holthus to praise the ads and express
his wish that more such advertising be done. The cam­
paign has also received several awards within the
American Advertising Federation’s district.
“From all of the attention the campaign has re­
ceived, it is obvious that it has accomplished the pur­
pose of informing the people of Nebraska about the
workings of their banks,” said Mr. Lauerman. “We are
happy the message has been so well received. “The
campaign will likely be expanded during the coming
year to include additional aspects of the banking func­
tion. ’’

A message from the N eb raska Bankers in your hom etow n.


We want you to know us
even better.

THIS is one exam ple of the ed ucation al n ew sp ap er a d s s p o n ­
sored by the N ebraska Bankers A ssociation during last y ear’s

(Continued from page 18)
bility. Again, we are not discussing only the question
of losses so severe that the bank will fail, but also con­
ditions that will methodically diminish the capital,
cause lender liability situations, result in usury viola­
tions, or be in violation of the Community Reinvest­
ment Act, Equal Credit Opportunity Act, or civil
rights legislation. The changing trend in state and fed­
eral banking regulatory examination bodes less well
for a safety net to assist you and, therefore, you must
make sure that your other checks and balances are in
line in order to protect yourself.
5. What the Board of Directors Should Do—The
final checks and balances in determining how to keep
your financial institution safe and solvent is the board
of directors itself. The board should not consider the
accounting function, the internal audit function, the
external audit function, or the examination function to
be merely ministerial. The board of directors should
consider the checks and balances outlined above as be­
ing one of the most important areas in the entire
bank’s operations. If management is competent and
honest, then analysis of the accounting/audit function
will indicate clearly that the bank is profitable, liquid,
and solvent. The board of directors should spend con­
siderable time and resources to make sure that the ac­
counting/audit function is analyzed carefully, in detail,
and all reports are sent directly to the board. All ap­
propriate officials should report in person to the board
of directors and not to the senior management.
Once the results of the internal audits, external
audits, or state/federal regulatory examinations have
been reported to the board of directors, all remedial
steps are in the control of the board. Failure to remedy
Kansas Bankers Surety
Prom otes Five O fficers
The board of directors of the Kan­
sas Bankers Surety Company, Tope­
ka, Ks., elected
five new officers
a t th e J u n e
meeting. Those
e le c te d
David E. Abend ro th , se n io r
vice president;
Charles Towle,
vice president;
Sheila Watkins,
corporate secre- ^.E. ABENDROTH
tary; Francine Johnson and Bonnie
Pinick, assistant vice presidents.
Mr. Abendroth has been with the
company since 1973. His primary
areas of responsibility are in market­
ing for the company.
Mr. Towle has been with the com­
pany for seven years. In addition to
his new duties as vice president, he
also serves as comptroller and
claims supervisor.
Federal Reserve Bank of St. Louis



what the internal audit staff, the external auditors, or
the state/federal regulatory agencies require is the
failure of the board to meet its fiduciary duty. If
necessary, the board should appoint a standing audit
committee, which makes sure that all remedial actions
are taken. However, in most cases, a single director
can be delegated the responsibility and be held ac­
countable by the entire board of directors.
Keep in mind that most remedial actions, especially
those of the state and federal regulatory agencies, have
a time schedule. It is necessary for the board to make
sure that such time tables are met. Failure to hold the
staff accountable for such deadlines is perceived by the
external auditors and/or state/federal regulatory agen­
cies as a failure of the board to meet its duties and
responsibilities. It is a black mark on a commercial
banking organization to have to remedy technical and
substantive violations of law or to correct other re­
medial internal controls and procedures, but is far
worse for the board of directors to fail to remedy such
deficiencies within an orderly period of time, and to
make sure that such deficiencies never arise again.
Needless to day, the buck stops at the board’s level,
and failure to remedy the problems is a failure of the
board itself.
Remember, respect your senior management, pay
them well, and make sure they are competent. On the
other hand, do not trust them explicitly and make sure
that you have the checks and balances in place in order
to protect your board of directors from actual and/or
contingent liability. In fact, the appropriate checks
and balances may lead to lower directors’ and officers’
liability insurance premiums, or even the ability to get
same. By implementing the appropriate procedures,
you will make your financial institution a more safe
and solvent operation.



Sheila Watkins has been with the
company nine years and also has
responsibility in the data processing
Francine Johnson has been with
the company since 1984.
Bonnie Pinick is a two year em­
ployee of the company. Ms. Johnson
and Pinick’s areas of responsibility
are in the contracts and communi­
cations function of the company.
The Kansas Bankers Surety Com­
pany provides insurance for FDICinsured commercial banks. The com­
pany provides bonding for 2,100
banks in nine mid-western states,
which is 15% of the total number of
banks in the United States. The
company was originally organized in
1909 and is the only Kansas char­
tered stock fire and casualty com­
pany that is not owned by a holding
The board also approved moving
the company headquarters to the
first floor of the IBM building at
611 Kansas Avenue in Topeka.
Northwestern Banker, July, 1987


Bankers Trust is Iowa's
International Bank.
If you thought you had to go to Chicago or New
York to do your overseas banking, think again.
International services aren't foreign to Bankers
Trust. Our International Banking Division has
over two decades of experience and an exten­
sive worldwide correspondent and telecom­
munications network. So we can handle your
international banking needs from right here in
Des Moines.
Our International Banking professionals are
trained to help Iowa companies and banks do
business in global markets. Bankers Trust is your

full-service international bank. We can handle all
of your international banking needs, including
letters of credit, foreign fund transfers, collec­
tions, foreign exchange and foreign drafts.
Our telecommunications system makes Bankers
Trust the only Des Moines bank directly linked to
money center banks on every continent. In addi­
tion, Bankers Trust is the banking affiliate of the
Iowa Export-Import Trading Company.
Call Patricia Rourke any time for advice and
service, 245-5284. Our staff is ready to improve
your international business horizons.

International Banking Division
665 Locust • Des Moines, Iowa 50309
(515) 245-5284

Banker, July, 1987
Federal Reserve Bank of St. Louis

Member FDIC, Federal Reserve System


Changes Told in Mt. Ayr

IBA Convention Highlights Announced
he Iowa Bankers Association
has announced details of this
year’s Annual Convention, to be
held Sept. 20-22 at the Des Moines
Convention Center.
Speakers. Included will be Louis
Rukeyser, popular economic com­
mentator and financial expert; Paul
McCracken, University of Michigan
professor and former chairman of
the President’s Council of Economic
Advisors, and Mark Olson, presi­
dent of the American Bankers Asso­
Presidential Forum. The following
presidential candidates have been
invited to appear: Gov. Bruce Bab­
bitt, Sen. Joseph Biden, Vice Presi­
dent George Bush, Sen. Robert
Dole, Gov. Pierre S. DuPont, Con­
gressman Richard Gephardt, Alex­
ander Haig, Rev. Jesse Jackson,
Sen. Jack Kemp and Pat Robertson.
Exhibit Hall. Many aspects of last
year’s highly successful exhibit hall
will be featured, including prize
drawings, food and music.

Entertainment. The m usical
“South Pacific” with Robert Goulet
will be performed at the Civic Center
on Sunday afternoon and evening.
Appropriately, “Some Enchanted
Evening” is the theme for this
year’s president’s dance. Secretary
of Agriculture Richard Lyng has
been invited to address Tuesday
morning’s ag breakfast. Performing
at the Inaugural Dinner will be the
West Des Moines Dixieland Band.
Spouse Program. A new approach
will be taken this year, involving
special educational sessions and
more time to attend regular sessions
of the convention. An assortment of
kitchen workshops will be held along
with the popular Younkers lun­
Economy. A sliding registration
fee is being used to encourage banks
to bring their staff: before Aug. 15,
fee for the first registrant is $ 100,
for the second is $50, and for the
third is $25. After Aug. 15, fees are
$125, $75 and $35.

Roger Kerndt, president and CEO
of Hawkeye Bank & Trust, Mount
Ayr, has resigned to become presi­
dent of the Dairyman’s State Bank
in Randolph, Wis.
Gene Poppe, formerly senior vice
president of the bank, has been
named president and CEO. He
joined the bank in 1984.
Kim D. Greenland has been pro­
moted to senior vice president and
Randy Finer was advanced to assis­
tant vice president. They joined
Hawkeye Bank & Trust in 1982 and
1986 respectively.
In addition, Hawkeye has an­
nounced hiring Dave Gourley as new
loan officer and assistant vice presi­
dent. He previously served as an ag
management specialist assistant
county supervisor for Farmer’s
Home Administration.

Appointed in Mason City
Henry E. Edsill has been ap­
pointed vice president and manager
of the trust de­
partment at First
Interstate Bank
of Mason City.
Mr. Edsill has
been with the
t r u s t d e p a r t­
ment of the Peo­
ples Bank and
Trust in Water­
loo the past six
years, after prac­
ticing law in Aplington for two

Added in Indianola
Don Granstra has joined Peoples
Trust & Savings Bank, Indianola, as
vice president
and senior loan
officer. He has
been employed
at the Emmet
C ounty S ta te
Bank in Estherville for the past
fiftee n y ears,
where he has
been vice presi­

Grundy Center Banks Merge
PICTURED during the recently held Iowa Investment Bankers Field Day in Des Moines,
were from left: Assn. Pres., Mike Sparks, Allied Securities; Scott Franklin, Piper, Jaffray &
Hopwood; Committee Chmn. Jim Adrianse, Allied Securities, and Assn. Secy.-Treas. Bob
Dorweiler, Shaw McDermott & Co. The event included cocktails and dinner with a full day
of golf at Echo Valley. A tennis tournament was also scheduled.
Federal Reserve Bank of St. Louis

The FDIC has approved the
merger of The Grundy National
Bank of Grundy Center and Hawkeye Bank & Trust, Grundy Center.
The new bank will operate as the
Grundy National Bank.
Northwestern Banker, July, 1987


Iowa News

Iowa Independent Bankers
Annual Convention
July 2 3 -2 5
Inn Resort C om plex, Lake O koboji

HE 16th Annual Convention of the Iowa Independent Bankers will be
held July 23-25 at the Inn Resort Complex at Lake Okoboji. Presiding •
over the gathering will be John Chrystal, president of the IIB and chairman



Vice President


Exec. Vice Pres.


Exec. Director
Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

and CEO of Bankers Trust Company, Des Moines.
Assisting Mr. Chrystal this year have been IIB Vice President Thomas
H. Huston, chairman and president of Columbus Junction State Bank; IIB
Executive Vice President Richard Berglund, and Executive Director Diane #
In addition to the usual fine recreational activities, this year’s convention
will offer a number of valuable question and answer sessions with legisla­
tors and banking authorities.
The complete program schedule follows:
Thursday, July 23
Couples’ Golf Tournament, Brooks Golf Course.
12:00 Registration begins.
5:00 Young People’s Gathering, pool.
5:30 Reception for adults, poolside.
Friday, July 24
8:00 First general session.
Call to Order, Invocation, Keynote Address—John Chrystal, IIB
Exec. Vice Pres. Report: “ IIB —Modern Banking at its Best!”—
Richard Berglund, IIB exec. v.p.
“How the TBF* Banks are Taking Over (*Too Big to Fail)”—Q/A
Session with Irvine H. Sprague, former chmn., FDIC.
“Congressional Update—The Washington Scene”—Hon. Jim
Leach, U.S. House of Reps.
12:00 Spouses’ luncheon.
“Treasure of the Atocha”—Wanda Phillips, bus. ed. teacher, Akron,
1:00 Golf tournament, shotgun start, Brooks Golf Course.
Saturday, July 25
8:00 Second general session.
Call to order—Thomas Huston, IIB v.p.
“Recent Legal Developments in Ag Law & Ag Finance”—Q/A Ses­
sion with Prof. Neil Hamilton, Drake U., Des Moines.
“A Session with Fred Grandy”—Q/A Session with Hon. Fred
Grandy, U.S. House of Reps.


Two Strong
Iowa Banks To Serve
Correspondent Banks

------- D -------




The National Bank
of Waterloo

Peoples Trust
and Savings Bank

The National Bank put’s its financial strength
and outstanding correspondent banking
services to work for most of the banks in
Northeast Iowa.
Our state of the art computer processing
equipment is designed to meet all your
needs and is one of the largest processing
centers in the state.
Even more important, the experienced
management team can provide advice and
banking expertise for all financial questions.
We are responsive to your needs.
Put our unmatched combination of
experience and services to work for all your
correspondent banking needs.

Now the same financial strength and
services in correspondent banking are
available to banks in Southeast Iowa
through Peoples Trust and Savings Bank
of Indianola, an affiliate of Iowa National
Bankshares and the National Bank of
We offer full services including purchase
of excess funds, bond advisory, data
processing services, automated accounts
receivable billing systems and other
complete correspondent bank services.
Working together, Iowa National
Bankshares can put over one half billion
dollars of financial strength behind your bank.
Put our financial strength, our financial
performance and our financial growth to
work for you — call any member of our
experienced team today.

Build On Our Strength

Bill Rickert
Sr Vice President


Vice President

Erling Schmiesing
Sr. Vice

James Freet
Sr. Vice

T h e N a t io n a l Ba n k

Leroy Bell

Charles E. Yagla

Everett Brown

Milt Hennick

Assistant Vice

Data Processing

President, Indianola

Sr. Vice President,

P eoples IkusT
and Savings Bank

100 East Park ■ Waterloo, IA 50703 ■(319) 291-5200

114 N. Howard ■Box 279 ■Indianola, IA 50125-0279
(515) 961-6241

Subsidiaries of Iowa National Bankshares

Members FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, July, 1987


Iowa News

“From Washington Straight’’—Q/A Session
with John McLaughlin, host of “ The
McLaughlin Group” and Washington exec. ed.
of National Review.
Annual business session.
Report of the Resolutions Committee—
Thomas Huston.
Report of the Nominating Committee—George
Perry, chmn., The City National Bank,
Election of officers.

Retired in Readiyn
Burton C. Stumme, president of
the Readiyn Savings Bank, has an­
nounced his retirement after over 52
years with the bank. Over 450 peo­
ple attended a retirement party held
recently for Mr. Stumme in Read­
New president and cashier is Vir­
gil J. Matthias, who has been with
the bank since 1966.

John Hughes Scholarship
Winners Announced
The Iowa School of Banking Ad­
visory Board has selected two reci-

12:30 Registrant’s luncheon.
Introduction and remarks of dignitaries:
Michael L. Fitzgerald, treas., State of Iowa;
William R. Bernau, supt. of banking; William
H. Greiner, exec, dir., Iowa Agricultural Devel­
opment Authority; Thomas H. Olson, pres., In­
dependent Bankers Association of America.
Announcements, golf awards.
5:00 Social hour, Inn Resort Beach.
6:30 Barbecue, Inn Resort Beach.
Golf and tennis awards, young people’s draw­
ing, couples’ golf awards.

pients of the 1987 John Hughes
Memorial Scholarships, awarded an­
nually to an Iowa college student in­
terested in banking and to an Iowa
financial journalist. This year’s win­
ners are Christopher Booth, a Uni­
versity of Iowa Business student,
and Jamie Gottula Buelt, financial
services reporter for the Des
Moines’ Business Record.
Mr. Booth is majoring in finance
and has maintained a 3.92 grade
point average during his three years
at the university. Ms. Buelt has
been with the Business Record since
1985 and has also contributed to the
American Banker.
The scholarship will pay for the

two to attend the Iowa School of
Banking, sponsored by the Iowa
Bankers Association in cooperation
with the University of Iowa College
of Business Administration.

Promoted in Waterloo
The National Bank of Waterloo
has promoted four employees.
Judy DeGroote was promoted to
vice president from assistant vice
president, customer accounts. She
has served the bank in audit, book­
keeping, proof, and new accounts.

Committed to
making your
bank stand
apart from the


Kendall Messer was promoted to
vice president, ag lending. Before
joining the bank in 1986, he was as­
sistant vice president and ag repre­
sentative at First National Bank of
New Hampton.
Robert S. Kahler was promoted to
vice president/controller. He joined
the National Bank of Waterloo as
controller in 1982.
Former personnel officer Diane
Good was advanced to personnel
director. She joined the bank in

Banker, July, 1987
Federal Reserve Bank of St. Louis


W ith most insurance
plans, if you’re not sick
before you get your
final medical bill, you
will be after.
But not with IBIS.
Our many health
care plans are as
substantial as our
premiums are minimal.
Including coverage on
prescription drugs and
physical exams.
Why, we even cover
your mouth.With dental
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and complete as any
Health and dental
insurance designed
by Iowa bankers,only for
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W hich is one more
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banks in Iowa.
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400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308

Northwestern Banker, July, 1987


Iowa News

Photos from Second Week of Iowa Group Meetings
THE SECOND week of Iowa Bankers Association group meetings

was held in the third week of May with Group 5 at Council Bluffs,
Group 2 at Fort Dodge, Group 12 at West Lake Okoboji, and Group
3 at Clear Lake. The report in last month’s issue listed the names
of newly-elected officers in odd-numbered groups, which elect in
odd-numbered years. The new group officers do not take office
until the conclusion of the state convention in September, at
which time each new chairman becomes a member of the IBA Ex­
ecutive Council. Since the second week of meetings was being
conducted at press time for the last issue, the photos from those
four meetings are shown below.

NEWLY elected Gp. 5 chmn. Mick Guttau, pres. & chmn., Treynor
State, Treynor, and his wife Judy, with Kathy and Tom Whitson,
outgoing chmn., Group 5, and pres., Council Bluffs Savings Bank.

GROUP 5— Newly elected officers are, from left: Secy.—Jerry Lapke, pres., Shelby County State, Harlan, and Chmn.— Michael Guttau,
pres. & chmn., Treynor State, Treynor. RIGHT—Hosting the cocktail hour was U.S. Check Book Co., Omaha. From left are: Ed Batchelder,
pres., U.S. Check Book; supt. of banking Bill Bernau, chmn. & pres., Peoples Savings Bank, Crawfordsville, and Pete DeRosier, v.p., Valley

Natl., Des Moines.

LEFT— Enjoying themselves at the Lakeshore Country Club were, from left: Gene Noell, v.p., FirsTier Bank, Omaha; Katie and Dick Ran­
dall, pres., Dunlap Savings, with Jay Randall, v.p., Dunlap Savings and his wife Lynn. RIGHT—Present at the Group 5 reception were, from
left: Todd Kruse, corr. bkg. repr., First Natl., Omaha; Rich Stoufer, v.p. & cash., Council Bluffs Savings, and Tim Smith, corr. bkg. off., First #

Natl., Omaha.

LEFT—Gp. 2, Ft. Dodge, left to right: IBA Pres. Russell S. Howard, chmn., Mahaska Investment Co., Oskaloosa; Chmn. Joe E. Hutchinson,
pres., Union State, Rockwell City; Supt. of Bkg. William R. Bernau; Secy. Paul H. Johnson, pres., Iowa State, Algona, and IBA Pres.-Elect
Clair J. Lensing, pres., Farmers State, Marion. RIGHT—Gp. 12, Okoboji: John Sorensen, IBA v.p.; Chmn. Thomas M. Awtry, pres., Valley
State, Rock Valley; Secy. James L. Cuttell, pres., George State, and Gary Livesay, IBIS v.p.
Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis



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Federal Reserve Bank of St. Louis


Iowa News

LEFT— Gp. 3, Clear Lake: Retiring Chmn. Donald E. Snyder, pres., Manufacturers B&T, Forest City; incoming Chmn. Wm. G. Herbrechtsmeyer, pres., First Security B&T, Charles City, and incoming Secy. Richard A. Halverson, exec, v.p., Corwith State. RIGHT— Mrs. Killpack
(left) and her husband, William D. Killpack (right), exec, v.p., First Interstate Bank of Mason City, were dressed in 1875 period garb to pre­

sent certificates to three Gp. 3 bankers who have been named by their families or fellow bank staffers to the honorary board of directors of
the IBA’s Walnut Hill Bank at Living History Farms in Des Moines. In this photo are pictured John K. Hanson, chmn., Manufacturers B&l
Forest City, and chmn. of Winnebago Industries, and Mrs. Hanson. BELOW (left) are Mr. and Mrs. Wm. L. Nicholas, chmn., Community
State, Clear Lake, and (right) Mr. and Mrs. Don Sabann, pres., Corwith State.

LEFT— Gp. 12, West Okoboji: Stanley Nervig, sr. v.p., Farmers State, Marcus, and Gary Stevenson, v.p., 1st Natl., Sioux City. RIGHT— Don
Jordahl, v.p., Bankers Trust, Des Moines, and George Schneidermann, pres., Rock Rapids State, Rock Rapids.

LEFT—Silas Keehn (left), pres., Federal Reserve Bank of Chicago, discusses a point at Gp. 3 meeting in Clear Lake with John Kiger
(center), a.c., Ackley State, and Howard Garton, pres., Iowa State Bank, West Bend. RIGHT—Visiting at Gp. 12 meeting at West Okoboji
were Jack Cuttell, v.p. & cash., Security State, Hartley; John E. Benz, pres., Melvin Savings, and Harris Kruse, v.p., Sibley State.
Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

be included on page 19 with the list­
ing of Multi-Bank Holding Compa­
nies in Iowa. Assets last year-end
were $539,258,000 and deposits
were $430,441,000. The lead bank is
National Bank of Waterloo. Also in­
cluded in Iowa National Bankshares
are Midway Bank & Trust of Cedar
Falls and Peoples Trust & Savings
Bank, Indianola. The holding com­
pany and its officers are listed cor­
rectly on page 291.
Iowa News


DURING their two-day meeting in Des Moines recently, more than 50 members of the Iowa
Young Bankers Association elected new officers for the coming year. From left to right,
they are: Immed. Past Pres.—Stephen L. Kedley, v.p., First Central State Bank, DeWitt;
Pres.—Gregory A. Johnson, a.v.p., First Security Bank & Trust Co., Charles City; Vice
Pres.— Mark Albers, v.p., Decorah State Bank, Decorah, and Secy. — Luella J. Feldman, v.p.,
Iowa State Bank & Trust Co., Iowa City.

Iowa Young Bankers Elect Officers
• I NCREASED productivity and
I profits, investment alternatives,
looking at bank examinations, and
developing staff were topics ad­
dressed at the Iowa Young Bankers
• Association annual meeting June 23 at the University Park Holiday
Inn, West Des Moines. Stephen L.
Kedley, vice president, First Central
State Bank in DeWitt, presided at
® the meeting as president of the
Theme for the two-day conference
was “Building Tomorrow’s Bank­
ers’’ and the topic was addressed by
a talented array of speakers: Jo Ann
Zimmerman, Iowa Lt. Governor;
Mary Curtin, attorney, Lindquist &
V ennum , M in n ea p o lis; D ick
Guzewich, president, Dick Guzewich & Associates, Des Moines; Joe
Batten, chairman, Batten, Batten,
Hudson & Swab, Des Moines, and
Clifford Brody, president, Clifford
Brody & Associates, Washington,
In addition, the Iowa Young
Bankers heard four distinguished
Iowa bank CEOs share their in^ sights on the “ideal bank leader’’ of
w the future. The four were Thomas D.
Whitson, president, Council Bluffs
Savings Bank; Donald E. Snyder,
president, Manufacturers Bank &
£ Trust, Forest City, and president­
elect of the Iowa Bankers Associa­
tion; Jim Hughes, president, Com­
Federal Reserve Bank of St. Louis



In the listing for the First State
Bank in Nora Springs in the 1987
Iowa Bank Directory recently deli­
vered, the name of the president of
the bank should be Sam S. Weather­
ly. It appeared incorrectly due to an
editing error and users of the book
are asked to make this change in
their copies. We regret this error and
the inconvenience it has caused.

BMA Awards Work
by Sioux City Banker

Among 15 marketing plans and
mercial Trust & Savings Bank, case histories accepted for its collec­
Charles City, and Dennis R. Wood, tion by the Information Center of
president, Bankers Trust Company, the Bank Marketing Association
Des Moines.
was one by Robert W. Arnold of
Participants also attended an First National Bank, Sioux City.
evening picnic at nearby Living His­ The paper was entitled “A Market­
tory Farms at the site of the IBA’s ing Plan to Improve and Expand our
Walnut Hill Bank, where ground­ Charge Card Program.’’
breaking took place recently and
The submissions were written by
where construction was to begin in graduates of the 1987 BMA School
late June.
of Bank Marketing at the Univer­
sity of Colorado, Boulder. They were
Merchants Pays
judged by the Information Services
Council of BMA. The winners were
195th Dividend
In a special letter to shareholders, selected as the most outstanding
R. Peter Roehl, president of the Mer­ academic application of marketing
chants National Bank, Cedar Ra­ principles.
pids, announced that “the Mer­
chants Holding Company Board of Appointed in Waterloo
Directors has declared the 195th
Betty Zeman has been appointed
consecutive, semi-annual share­ marketing director for Waterloo
holder dividend.’’ In other words, Savings Bank.
Merchants has paid dividends twice She previously
a year since 1894. Announcement of served as cre­
the dividend follows the April board ativ e d irecto r
decision to declare a four-for-one and cu sto m er
stock split. The dividend will be paid service manager
on all current shares.
at the Congdon
The dividends will be paid in the Printing Com­
amount of $1.05 per share, 12% pany.
greater than the dividend payment
M s. Zeman
one year ago.
has also been
commercial loan
Bank Directory Corrections
officer at Norwest Bank, Cedar Falls
In the 1987 Iowa Bank Directory, and served on the bank’s marketing
Iowa National Bankshares should committee.
Northwestern Banker, July, 1987


Iowa News

Security, New Hampton, Observes 50th
HE Security State Bank of New
Hampton celebrated its 50th an­
niversary on June 4 with an open
house all day, and a pork barbeque
supper in the bank’s parking lot
from 4:00 to 8:00 that evening.
$1500 in various prizes and draw­
ings were awarded, and every guest
received a free gift.
The bank opened its doors for
business on June 5, 1937. It was ori­
ginally located on East Main Street
in the building which had been occu­
pied by the Second National Bank,
which failed in 1929. There were 40
original stockholders who bought
the 350 shares of stock for $100 per
share. J.P. Rigler was the principal
organizer and was elected the first
president. He served in that capa­
city until his death in 1972. The Rig­
ler family moved to New Hampton
in 1931 when Mr. Rigler was named
receiver for the Second National
When the Security State opened
in 1937, 2% was the rate all banks
paid on passbook savings accounts.
That rate was cut to 1% in 1942 dur­
ing World War II. Government trea­
sury bonds which the bank bought
in 1937 paid only 1 3/8%.
By the end of 1937, Security State
Bank’s deposits totaled $275,000. A
year later they had grown to $392,
000. Deposits on March 31, 1987
were over $44 million.
The bank paid its first dividend to
stockholders in 1940, the same year
in which the bank became a member
of the Federal Reserve System.
New facilities at the corner of
Chestnut and Prospect in New
Hampton were built and occupied in
1972. During 1986 a major addition
to the building was constructed.
Not only was J.P. Rigler a life­
long banker, but so were two of his
sons. Robert R. Rigler started his
banking career in 1946 with the Har­
ris Trust and Savings Bank in Chi­
cago, then moved back to New
Hampton in 1947 with the Harris
Trust and Savings Bank in Chicago,
then moved back to New Hampton
in 1947 and joined Security State as
a teller. He became cashier in Janu­
ary, 1949, then was elected presi­
dent of the bank at his father’s
death. His brother, John Rigler, has
been president of the Central State
Bank in Muscatine for 27 years, hav­
ing previously served 18 years as a

Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

vice president in the correspondent
bank division of the Northern Trust
Company in Chicago.
Robert R. Rigler’s older son, J.P.
Rigler, II, is vice president in charge
of the correspondent bank division
of Norwest Bank Des Moines. His
younger son, Robert E. Rigler, is
staff attorney for an investment
banking firm in Alexandria, Va.

Appointed in LeClaire
Keith Hopp, vice president and
farm representative for LeClaire
State Bank, LeClaire, and Farmers
Savings Bank, Princeton, has been
appointed to the boards of both
banks, to fill the vacancy created by
the death of Orville M. Stewart. Mr.
Hopp has been with the banks since
1983. Prior to that he was a real
estate broker in Colorado for three
years. Before that time he served 15
years with the Federal Land Bank

Retired in Atlantic
W.G. Beatty has retired as presi­
dent of Norwest Bank Atlantic. He

has been associated with the bank,
formerly the Atlantic State Bank,
since 1966, and has been president
since 1976. He started his banking
career in 1946 at Ruthven.
Mr. Beatty will be in farm man­
agement and other financial ser­

Elected in Iowa City
At Iowa State Bank & Trust Co.,
Iowa City, Paul E. McNutt has re­
tired from the board after serving as •
a director for over 18 years. Robert
L. Sentman was newly elected to fill
the vacancy. Mr. Sentman operates
a grain and livestock farm near Ox­
ford and is a brigadier general in the •
Iowa National Guard.
W.W. Summerwill and Roy J.
Koza were appointed honorary direc­
Ben E. Summerwill was re-elected ®
as chairman and W.R. Summerwill
as president and CEO. The two were
re-elected to similar positions at I SB
Financial Corp., of which Iowa State
Bank is a wholly owned subsidiary. ®
Paul E. M cNutt’s position as a di­
rector for I SB Financial will be filled
by Martin J. Kelly.

THE DES MOINES office of Peat Marwick hosted its Tenth Annual Bank Seminar at the

Marriott Hotel in downtown Des Moines. This year’s seminar, “ Decade of Change,” in­
cluded noted participants, from left: Lee Kolmer, dean of agriculture, Iowa State Univ.,
Ames; Bob Joslin, pres., Iowa Farm Bureau; Dean Kleckner, pres., American Farm Bureau
Federation; Johnny Danos, managing partner, Peat Marwick Main & Co., Des Moines, and<
Randy Hamilton, partner, Peat Marwick, Des Moines.
The keynote address, given by Mr. Kleckner, included his remarks on the overall agricul­
tural picture, which he called “ a mixed bag.” He feels that agriculture has hit bottom and
things will be turning around. Mr. Kleckner also gave his viewpoints on the failing Farm
Credit System (FCS), which he said “ needs to survive.” “ The Farm Bureau Federation is
pushing for a quick infusion of capital into the FCS,” Mr. Kleckner said. He added that thef
bottom line is to keep as many borrowers on the land as possible, and he is confident that
the government will save the FCS.

At First Interstate Bank of Des
Moines, Dean E. Roth has been ap­
pointed assistant vice president in
charge of the investment depart­
ment, and Brian J. Hughes has been
appointed an investment officer. Mr.
Roth joined the bank in 1983 and
was named an investment officer in
1986. Mr. Hughes joined First Inter­
state in 1986 after spending two
years with Security National Bank,
Sioux City, in their investment de­

• D e s M o in e s

ITS, 1st Interstate Open Pilot POS
• I TS, Inc. and First Interstate Bank
I of Des Moines opened their pilot
point-of-sale terminal at the Colonial
Standard Station in West Des
Moines on June 17. State-of-the-art
# equipment consists of two outside
terminals at the gas pump islands
and two registers inside the station,
all of which are operated by SHAZAM debit cards.
ITS President and CEO Dale
Dooley said, “Colonial Standard
was chosen because of its full-ser­
vice capabilities and excellent loca­
Said Robert G. Millen, chairman,
president and CEO of First Inter­
state Bank, “The introduction of
this new POS terminal will add

another dimension to the many uses
and benefits of the debit card.”
The two companies were also the
first to introduce POS terminals to
food stores in Des Moines, when
they opened eight systems at HyVees in 1984.
While consumers benefit from
fast, convenient service, the station
gains improved cash flow, guaran­
teed funds, and valuable data.
Mr. Dooley said ITS plans for the
project to grow to other service sta­
tions with other sponsoring finan­
cial institutions. First Interstate
Bank also plans to sponsor addi­
tional POS fuel pump sites with in­
terested retailers.



First Interstate Bank of Des
Moines has announced the election
of A1 Jennings to the board of direc­
tors. He is president, chief executive
officer and chairman of the board of
Economy Forms Corporation in Des
Moines. Mr. Jennings is also chair­
man of the Iowa Association of
Business and Industry and vice
president of the Iowa State Univer­
sity board of Governors.



Promoted in Elkader
At Central State Bank, Elkader,
Anita J. Kobliska has been pro­
moted to assistant vice president
and Linda D. Glesne promoted to

Elected in Iowa Falls
Two new directors have been
elected at Iowa Falls State Bank.
Robert A. Baird, senior vice presi­
dent and senior loan officer for the
bank, and John R. Barlow, president
of Market Trends, Inc., Minnetonka,
Minn., will join the bank’s board.

July, 1987
American Express Travelers Cheques.............................. 3
Bankers Trust Co., Des Moines ........................................ 50
Carpenters Pension Fund of Illinois ................................ 10
First Bankers Securities Corp., Mason C it y .................... 5
FirsTier Banks O m ah a /L in co ln ..................................... 32-33
First National Bank, O m a h a ............................................... 4 7
Gross, Kirk Co., W a te rlo o ................................................... 5 7
IAC Group, Kansas C ity ....................................................... 63
Insured Credit Services, Inc., C hicago............................... 11
Iowa Bankers Insurance & Services, Inc............................. 5 5
MBU, Inc., Omaha ................................................................4 6
Merchants National Bank, Cedar R a p id s ........................ 2
National Bank of Commerce, L in c o ln ............................... 4 4
National Bank of W a te rlo o ................................................. 5 3
Norwest Business Credit, Inc............................................. 8
Norwest Corporation, M in n e a p o lis................................... 64

0 EXPLAINING state-of-the-art POS fuel sales at unveiling ceremonies are Robert G. Millen,
chmn., pres. & CEO, First Interstate of Des Moines; Jim Staudenmaier, owner of Colonial
Standard station, West Des Moines, and Dale A. Dooley, pres. & CEO, ITS, Inc.
Federal Reserve Bank of St. Louis

Office Concepts, Ltd., W aterloo......................................... 54
Plus System, Inc., D en ve r..................................................


Rothschild, Unterberg, Towbin, L.F., Inc.............................12
Record Data, Inc.—T R W .................................................... 7

Northwestern Banker, July, 1987

Guest Editorial

Fellow Bankers:
HE Bankruptcy Reform Act of 1984 has certainly
done its part to impede the healing process of many
agricultural banks. The act, while being appropriately
titled, leaves open the question of who, or what, has
been reformed by this legislative masterpiece. Isn’t it
amazing how much damage can be caused by a group
of benevolent politicians with a severe case of acute
tunnel vision and no understanding of how the banking
system works?
One would have thought that the effort put forth in
the 1978 Act would have been enough to sufficiently
reduce bank earnings through the twentieth century.
Not so! In six short years our paid representatives
decided that not only should bankruptcy be fashion­
able, but that it should also be profitable. The increas­
ing number of ways in which to legitimize one’s opera­
tional incompetency makes me wonder if I shouldn’t
switch sides of the desk. In banking, the inability to
perform is handled through the issuance of pink slips;
in farming, the inability to perform, via the Bankrupt­
cy Reform Act of 1984, is handled through the is­
suance of large asset exemptions and a pat on the back.
Maybe I am too old fashioned, but I can remember the
day when the word “bankruptcy” was spoken in a
shameful whisper rather than as a prolific boast.
Have you ever followed a bankruptcy scenario full
course? As a community banker a few years ago, you
might have made a $20,000 loan to a farm customer.
Prudently, you properly secured the loan by perfecting
a security interest in $35,000 worth of farm machinery,
plus the current year’s crops. At the end of the year,
when the note was due, you found out that the grain
had been sold, but the proceeds from the sale had not
been applied to your loan. Understandably, you asked
the borrower to pay the loan and find a new lender.
Three weeks later you received notice of his Chapter 7
bankruptcy. Your attorney helped you file your bank’s
claim in a timely fashion, setting out in detail your per­
fected security interest. When you attended the bank­
ruptcy hearing, you learned that the borrower had filed
a current appraisal made by his neighbor showing the
market value of his farm machinery (which both you
and he agreed was $35,000 just a few months earlier) to
be $19,855.00. Since the borrower and his wife were
each entitled to a $10,000.00 exemption (i.e. tools of
the trade), you realized that you have just been given
the opportunity to charge off your $20,000.00 loan plus
accured interest.
You timidly asked the judge about the conversion of
secured assets (which you thought was a crime), and
the disposal of the conversion proceeds into exempt
assets (life insurance, annuities, etc.). Dazed and con­
fused about how to approach your board with the de­
velopments in this line of credit, you left the court­
house with the judge’s words still ringing in your ears,
“He’s certainly entitled to provide for his family.”


Northwestern Banker, July, 1987
Federal Reserve Bank of St. Louis

With that charge-off still warm in your monthly ,
minutes you decided to become a much more conserva­
tive agricultural lender so that you wouldn’t have any
more charge-offs to explain to the examiners. Upon ex­
amination you were “surprised” to learn that the regu­
lators thought your new agricultural lending guide- (
lines were so restrictive that you were not serving the
credit needs of your trade area!
In total frustration you loosened your lending poli­
cies but secured all lines of credit with everything you
could find, including crops, machinery, livestock, and a i
first mortgage on the farm. Things went along fairly
well under this scenario until your ag borrowers came
upon bad luck in 1986 and couldn’t meet their obliga­
tions to your bank. It is now nearly Christmas and
Santa came early to your troubled borrowers in the i
form of Senator Charles Grassley and Chapter 12.
If this story sounds unfamiliar to you as an ag
lender, then consider this your opportunity to look into
the future.
Today, we must make certain that our loan custo­
mer knows up-front that the mortgage and other secur­
ity which he is pledging to us may be exempt from us
when he decides, in a couple of years, to do a little tax
planning and eliminate his debt under our friend, the
Bankruptcy Reform Act of 1984.
Instead of writing us a check, in order to help allevi­
ate our problem, our borrower will be writing his attor­
ney a check, in order to pay for creating our problem.
Of course, our borrower will be the first to scream “dis­
crimination” after being turned down by a new lender
which wasn’t impressed by our borrower’s lack of debt
due to his having filed a Chapter Seven.
Fellow bankers, I know things can’t go back to the
way they were, and they shouldn’t, but this is utter
nonsense. I maintain that we need to be heard loud and
clear by those people we have placed in the state and
federal legislatures. Our representatives need to under­
stand that it is not a sin to repay debt which was legiti­
mately incurred and it is also not a sin for a secured
lender to pick up and sell all of its secured collateral to
help pay on a nonperforming line of credit.
Perhaps our legislators can earn their new self im­
posed salary increases, before they come begging for
our votes next term, by passing some legislation that
might “reform the previous reforms” and discourage
bankruptcies, rather than encouraging them.
This, of course, will never happen. Banks, after all,
can afford it. And I think about the dramatic rise in
the unemployment rate with so many attorneys out of
work. At a minimum, the exemptions need to be re­
duced by 50% to 75%, and bankrupt debtors must be
penalized, rather than praised, for converting assets
and creating “exempt” assets.
George E. Norden, President
First National Bank of Paullina, la.

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