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Federal Reserve Bank of St. Louis

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Merchants National Bank 1:1

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

Member F.D.I.C.



Deluxe Shareholders OK
Shortening Company Name

JULY 1988


95th year


No. 1498


This peaceful scene at Ft. Logan National Cemetery in southwest Denver is
typical of the many national cemeteries this nation provides as a final resting
place for millions of veterans and their spouses. The American flag under which
each of these men and women rallied in the cause of freedom in the nation’s wars
continues to fly serenely over them in silent tribute to their memories. It is an
especially inspiring picture for all who pass by or visit the cemeteries on July 4,
the birthday of the nation. Many of those buried here were killed in combat or died
of injuries, but most of them are those who returned to civilian life and chose to
be buried with their comrades.



Too big to fail!

Kenneth Guenther looks at community banks in this scenario


Professional help for directors

Dr. Doug Austin reviews the role each professional plays


How to control staff workload

Lawler firm eyes cost reduction, increased income


Shazam Advance

ITS product gives customers’ cash or credit


Illinois Elects David Webber
Schiefelbein Heads Wisconsin Bankers
Sands Named Minnesota Bankers President
Berglund Elected President by NDBA
Scruby Heads Colorado Bankers
Dowdy Selected President by Wyoming Bankers


South Dakota
Twin Cities


Iowa Indep. Bankers 54
Convention Program 54

Second Week of
Iowa Group Meetings
Des Moines
Index of Advertisers

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

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1498 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
M A STER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Federal Reserve Bank of St. Louis

At its annual meeting held May
18 in Houston, Tex., shareholders of
D elu xe Check
Printers, Inc. ap­
proved a pro­
posal to shorten
the name of the
company to Del­
uxe Corporation.
The adoption of
the name Deluxe
Corporation took
effect upon the
filin g o f the
amendment with the Secretary of
State of Minnesota. Deluxe head­
quarters is in St. Paul.
As a result of the expanding
variety of Deluxe’s business opera­
tions, the board of directors, at the
recommendation of Deluxe Manage­
ment, proposed the name change. It
its traditional product lines, the
com pany will continue to do
business under the name Deluxe
Check Printers.
President and Chief Executive Of­
ficer Harold V. Haverty told share­
holders that Deluxe has steadily
broadened its operations over the
past few years. “ Deluxe is a leading
participant in all aspects of the U.S.
payment systems market,’ ’ said Mr.
Haverty. “ We also have a growing
presence in the direct mail markets
for forms, greeting cards, and re­
lated products. This year, the com­
pany’s sales will exceed $1 billion.’’
Mr. Haverty stated that the com­
pany’s recent investments in techno­
logy and new businesses assure the
long-term health of the company. He
stressed that Deluxe’s leading posi­
tion in the check printing market re­
sults from a commitment to quality
and service and that success in the
company’s newer businesses will be
achieved in the same way.
All proposals presented to the
shareholders were adopted. Whitney
MacMillan, chairman and CEO of
Cargill, Incorporated, was elected to
the board of directors, filling the
vacancy created by the retirement of
Raymond H. Herzog, former chair­
man and CEO of 3M. All other direc­
tors were reelected.
Deluxe reported in April that it
had record first quarter sales of
$286,172,431, up 22.6% over the
first quarter of 1987 and net income
of $33,889,999, up 14.2% over the
same period last year.
Northwestern Banker, July, 1988


Major Educational Campaign on A g
Secondary Market Launched by A B A


ary market resource center to
help educate bankers and others on
the benefits and advantages of tak­
ing part in a new era of agricultural
financing has been established by
the American Bankers Association.
“ The A B A resource project is the
first of its kind,” said Les Peterson,
member of the A B A Secondary Mar­
ket Task Force. “ It will help
bankers understand exactly what
the secondary market means for
their banks, for their farm custo­
mers and for investors in ‘Farmer
M ac’ securities,” he said. Mr. Peter­
son is also president of the Farmers
State Bank in Trimont, Minn.
Development of the secondary
market for agricultural real estate
and rural housing loans, known as
“ Farmer Mac,” was authorized in
legislation enacted last January as
part of the financial assistance
package for the Farm Credit Sys­
tem. It will enable banks and other
lenders to make long-term, fixedrate mortgages available to farmers
and ranchers.
The A B A resource center will
combine A B A expertise in the agri­
cultural secondary market in the
areas of government relations, com­
munications, and education along
with the various state bankers asso­
ciations and A B A Agricultural

Banker Division. Elements of the re­
source center will include the fol­
One-day seminars: In-depth ses­
sions by a panel of experts on the
secondary market, offered in con­
junction with state bankers associa­
tions. The first of these seminars
was sponsored by the Nebraska
Bankers Association on March 24.
Topics include:
• why it’s a good idea to buy
“ Farmer M ac” stock,
• what kinds of loans are likely to
be eligible,
• how banks can benefit from
sales of pooled loans, and
• how loan originators benefit
from “ Farmer M ac” securities.
Secondary market manual (phase
1): A basic text which is used in the
seminars. Among other things, the
booklet will show bankers how to
calculate initial pricing estimates,
projected costs for farmers, and esti­
mates of fees for bankers. The
primer also describes anticipated
returns for investors. (“ Farmer
M ac” will be the only secondary
market available for rural housing
loans of up to $100,000 for resi­
dences in communities of up to 2,500
Secondary market training man­
ual: Published by the A B A Agricul­
tural Bankers Division, this exten­

Superior Performance Banking
Through Professional Consulting

Regulatory Compliance
Consumer Compliance
Asset/Liability Management
Management Policies and Procedures
Other Consulting Services
—Ronald L. George, President

Af Midwest Management Consultants
9 1 4 0 W e s t D o d g e R o a d , S u ite 2 7 0

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

O m a h a , N e b ra s k a 6 8 1 1 4 (4 0 2 ) 3 9 1 -1 3 4 4

sive, in-depth manual will be the primary source of information on the
agricultural secondary market for
the banking industry. It will contain
the final standards for origination,
underwriting, appraisal, and mortgage terms and documentation for
rural housing and agricultural prop­
erties. Publication of this manual is
expected by late summer. For more
information, contact Leslie Miller at
A B A at 202/663-5100.
“ This is the only effort of its kind
that is designed to let the agri­
cultural banker know exactly what
the secondary market can mean for
his bank’s bottom line and for his in­
dividual community,” Mr. Peterson
said. “ The seminars alone give
bankers a detailed look at how small
banks can originate more loans, how
larger banks can pool loans for in­
vestors, and how banks can do
both,” he said.
In addition, A B A will continue to
work with farm, commodity and
other lending groups who are in­
terested in the operation of the agri­
cultural secondary market.

United Missouri Announces
Staff Changes
The board of directors of United
Missouri Bank of Kansas City, n.a.
has announced the election of
Robert W. Hatch to the board. Mr.
Hatch is president and chief ex­
ecu tive o ffic e r o f In te rs ta te
Bakeries Corporation and its baking
subsidiary, Interstate Brands Cor­
United Missouri Bank of Kansas
City also has announced that Rober­
ta J. Byers has been promoted to
senior vice president in the accoun­
ting department, and Helen M. Anspaugh has been promoted to cor­
porate trust officer in the trust
Mrs. Byers coordinates the opera­
tions area of the accounting depart­
ment for the bank. She joined
United Missouri’s accounting de­
partment in 1967 and has held
several positions as an auditor and
accounting officer. She has attended
Northeast Missouri State Teachers
College in Kirksville, Mo.
Mrs. Anspaugh manages the sec­
urities transfer operations for the
bank’s corporate trust area. She
joined United Missouri in 1982 as a
department supervisor. She pre­
viously was associated with a local
financial institution.








• Record Data Announces
Three Executive Promotions
Record Data, a subsidiary of
TRW Inc., Cleveland, Oh., has announced the promotion of three com^ p a n y executives.
Patrick J. Nolan, III, has been ap­
pointed vice president and senior ti­
tle officer. He joins the corporate
^ staff at national headquarters in
w Cleveland. Mr. Nolan was branch
counsel for a major underwriter
before joining Record Data in 1984.
He has served as vice president for
^ th e company’s Minnesota service
center and most recently was
regional vice president of operations
for the Great Lakes Region for near­
ly three years. He was appointed to
^ h is present post in April.
Paul S. Lehman has been ad­
vanced to regional vice president for
the Great Lakes Region, which
oversees Record Data business in
0 Indiana, Kentucky, Michigan, Min­
nesota and Columbus, Oh. service
centers. He has been with Record
D a ta
s in ce
1985 as s ta te
manager/operations for the Colum||bus service center. Prior to 1985 he
was with a major title insurance
Kirby L. Parker has been ap­
pointed state manager/operations
# fo r Record Data’s Nebraska service
center, with headquarters at The
Exchange Building, 1905 Harney
St., Suite 620, Omaha 68102. He has
12 years of experience in the title in• dustry. He joined Record Data in
November, 1987, as title facilities
manager and was named to his
Nebraska post last February. Mr.
Barker makes his home in Papillion.

Edward Ketchmark Heads
Fed’s Des Moines Office
The Federal Reserve Bank of
Chicago has named Assistant Vice
President Edward Ketchmark of­
ficer in charge of the bank’s Des
^ Moines office.
Mr. Ketchmark, 43, was most
recently responsible for market
research and promotion in the opera­
tions and check services area at the
^ bank’s head office in Chicago. As
head of the Des Moines office, Mr.
Ketchmark oversees the check pro­
cessing and automated payment ser­
vices offered by the Reserve Bank to
|| all depository institutions in the
state of Iowa.
Federal Reserve Bank of St. Louis


Bankers-TV Network debuts this Fall. The first nationwide,
interactive, satellite video communication network broadcasts
directly to your bank.
Training: BANKERS-TV NETWORK will educate, inform and
train all levels of bank personnel in such areas as: Compliance,
Operation, Lending, Credit, Marketing, Bank Management,
Customer Relations, Human Resources, Customer Contact
Representatives, and Bank Security.
Programming: Programs feature the most authoritative
sources of information in the banking industry, regulatory
decision makers and members of congress—live!
Daily services include: Stock Market/Securities Updates
and Industry News Reports.
Weekly programs include: News & Analysis, Training &
Development, Interviews, Special Features, Legislative Up­
dates & Briefings, Regulatory Agency Presentations & Briefings,
Management Training & Development, Supervisory Training,
Staff Training & Development, Teller Training, Compliance
Management, Marketing & Pricing Strategies, Bank Operation,
Bank Directors Forum, and Senior Management Forum.
Rates: Monthly program subscription rates are less than the
cost of most video tape training programs.
Please call 212-351-2700, or fill out and mail the coupon
below for further information and a free copy of our demonstra­
tion video tape.
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Attention: Ms. Judy Kauffman
708 Third Avenue 25th Floor NY, NY 10017-4102

A Service Mark of
Satellite Conference Network, Inc.
A P R IM E RICA Company

Northwestern Banker, July, 1988

Chairman William Seidman Reports:

blems and challenges that must b e ^
faced by banks, bankers, regulators
and Congress. These problems are
not easily resolved, but can be man­
covering about half of their non­ aged. We look forward to cooper­
trade LDC debt. “ Based on the use ating with the Congress in whatever 0
of 25 percent of export income to way possible to insure that the
service debt,” Chairman Seidman banking industry remains safe and
said, “ the level of reserving taken as sound, the backbone of the U.S.
a whole appears reasonable for pre­ economic system and a competitor
in world markets. ”
□ 0
sent conditions.”
• The main problems in U.S.
banking continue to be concentrated
in areas having severe economic pro­ High Performance Secrets
blems. Mr. Seidman pointed out
that banks holding roughly 50 per­ Are Detailed in New Book
Based on extensive research
cent of the banking deposits in
Alaska, Oklahoma and Texas have among high performing banks that
or are expected to require financial regularly earn considerably more
support, either from the FDIC or than their neighbors, a new book
from o th e r s o u r c e s . “ S u ch titled Secrets o f High Performing
widespread weakness in those states Bankers illustrates the way high
will continue to be a significant performers think and operate. Its
burden for the FDIC,” he said, “ at author, Robert Long, says he pre­
pared the book to enable financial
least for the short run.”
• Recent transactions involving executives to compare easily their
First City Bancorporation and First own perspectives and action pat­
RepublicBank Corporation dem­ terns with those who achieve consis­
onstrate the FD IC’s resolve to main­ tent high performance.
Mr. Long is well qualified to
tain stability in banking without ex­
tending the federal safety net to author this type of useful study
bank holding companies. Mr. Seid­ book for decision-making bankers.
man noted that the FDIC has sub­ He was widely-known for many
mitted proposed legislation that years when he served as a staff of­
would allow regulators to require ficer of Bank Administration In­
the emergency consolidation of a stitute, where he counseled bankers '
failing bank with other banks in a on automation payment systems
multi-bank holding company. He and management strategies. Mr.
also pointed out that the investment Long was in the forefront in the
community now demands an in­ banking industry of those who per­
terest premium over bank CDs to ceived the great value of micro­
provide funding to holding com­ computers when they were in their
panies. He noted that not extending infancy. He left BAI to found
the safety net is important if M icroBanker, the financial in­
holding companies are permitted in­ dustry’s most successful microcom- (
puter newspaper. Later, he was
to new non-banking activities.
president of the Sendero Institute,
• The problems of the thrift in­ and currently is president of Think­
dustry and the FSLIC are affecting ing T echnology A ssociates in
the banking industry by increasing Phoenix.
the cost of funds and forcing banks
Through his nationwide contacts
to compete in an unfair environment with bankers in his extensive
against insolvent in stitu tion s. seminars, speeches and consulting
Because this situation has a work, Mr. Long amassed detailed
destabilizing effect on banking, reports on what lies behind th e ,
resolving FSLIC’s problems is im­ financial reports that indicate highportant to the banking system and performing banks and bankers. In
the entire financial system, Mr. pinpointing their success, Mr. Long
Seidman said. He noted that the states, “ Their secret is simple. Just
FDIC has undertaken a complete re­ set the right goals and get every- <
view of the role of deposit insurance, thing coordinated—the marketing,
to be completed by the end of 1988. the financial strategies, the opera­
Chairman Seidman concluded:
tions, the employees, the executives,
“ Although sound, the banking in­ the board and the regulators. It’s
dustry is experiencing a stressful not always easy, but observe how i
period of evolution. There are pro- the high performers do it and you

FDIC Fund Remains Strong and Stable
ESPITE a record number of
failures and assistance transac­
tions, the finan­
cial condition of
th e
b a n k in g
system and the
Federal Deposit
Insurance Cor­
poration remain
strong and sta­
ble, FDIC Chair­
man L. William
Seidman repor­
ted May 25 to
the Senate Banking Committee.
In his report on the condition of
the FDIC and the banking system,
Mr. Seidman noted that the
agency’s insurance fund at year-end
stood at $18.3 billion, up modestly
over a year earlier. “ Based on cur­
rent estimates of loss in 1988—in­
cluding the loss on First RepublicBank Corporation of Dallas—we
may experience some decrease in the
net worth of the fund in 1988,“
Chairman Seidman commented.
Mr. Seidman noted that if there
were a decline in the insurance fund,
it would be the first time the cost of
handling assisted and failed banks
resulted in a loss to the fund. “ Des­
pite this,” he said, “ we believe the
FDIC fund is sufficient to deal with
any problems we can foresee in the
banking system.”
Addressing other issues he con­
siders “ most significant” to bank­
ing, Mr. Seidman said:
• Based on market capitalization,
the world’s 50 largest financial in­
stitutions—insurance, securities and
banking—at year-end 1986 included
only 11 U.S. companies, and only
two of those were primarily banking
organizations. Japan, he noted, had
27 in the top 50. “ It seems clear that
the stock markets do not believe
U.S. banks will be among the
future’s leading global financial in­
stitutions under current condi­
tions,” Mr. Seidman commented.
• Significant increases in bad
debt reserves by most major U.S.
banks in 1987 place the banking
system in a much improved position
in terms of its exposure to LDC
debt. Mr. Seidman noted that
money-center banks have reserves
against about 25-30 percent of their
non-trade LDC exposure, while large
regional banks now have reserves


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



ANK Marketing Association,
the national trade group for fin­
ancial service marketing profes­
sionals, has selected the most out­
standing examples of advertising in
print, TV and radio for 1988.
Winning banks and thrifts from
across the U.S were awarded cer­
tificates of excellence during special
ceremonies at B M A ’s annual Adver­
tising Conference held at the Westin
I) Hotel in Chicago. The awards, 131 in
all, were presented in three cat­
egories: Best of Print, Best of TV,
and Best of Radio.
More than 1,400 entries to B M A ’s
• 16-year-old competition were judged
in several media sub-categories and
according to bank asset size and/or
production costs. Participant at the

Advertising Conference voted on a
“ Best of Show” award in each of the
three major categories—print, TV
and radio.
• Winner of the Best of Show
award in radio was Chase Lincoln
First Bank N.A., Rochester, N.Y.,
submitted by Andrew R. Morrison,
senior vice president/manager of
marketing services, and Hutchins/
Y&R, a New York-based ad agency.
All told, there were 26 Best of Radio
• South Carolina Federal Savings
Bank, Columbia, was declared the
Best of Show winner in the TV cat­
egory. The entry was submitted by
Elizabeth M. Tapp, vice presidentsales management and marketing,
with HutchesonShutze, Atlanta, as

the agency. There were 24 best of
TV winners.
• In the Best of Show for print,
Norwest Corp, Minneapolis, was
voted the winner. The entry was
submitted by Karen Aines, Norwest’s advertising director, Camp­
bell Mithun Advertising, Minnea­
polis, was the agency. The Best of
Print winners totalled 81 for the
1988 competition.
Both the Best of TV tape and the
Best of Radio cassettes are available
from BMA. The Best of TV tape
sells for $130 a copy while the Best
of Radio cassettes can be purchased
at $30 each. The winning print ads
are available in a bound book
available for $35 a copy.
For more information on the
“ Best O f” winners, contact B M A ’s
advertising department at 309 W.
Washington Street, Chicago, IL

joined the Cirrus and PLUS ATM
networks to give member banks’
customers access to the two national
ATM networks for cash advances;
were to be offered a flexible en­
hancement package to attract new
cardholders; were soon to receive
significant discounts for merchant
supplies, and that Bancard would
soon begin publishing a new quar­
terly operations newsletter for mem­
ber banks.
Representatives of both MasterCard International and Visa U.S.A.
were on hand to share company

plans and growth statistics with
Bancard participating banks offer­
ing both MasterCard and Visa
cards. Also appearing before the
group was the president of Tele­
credit Service Center, Inc., the na­
tional processor for Bancard, who
discussed a plan for regional Tele­
credit offices.
The two-day meeting also fea­
tured seminars on marketing, pro­
cessing, compliance, card enhance­
ments, merchant relations, and
bankruptcy and recovery proce­


may get some ideas on how to im­
prove the coordination of activities
in your institution.”
To make Secrets o f High Performing Bankers even more useful, Mr.
Long also developed a two-hour
audio tape seminar based on the
research findings. He reports that
early users of the book and tape
seminar have found it an excellent
basis for team-building, user groups,
officer retreats and other perfor­
mance improvement discussions.
The book and tape seminar are
priced at $34.95 each, or may be ob­
tained as a set for $50.00, with quan­
tity discounts available. Contact
Thinking Technology Associates,
1309 E. Northern, Suite 910,
Phoenix 85020, (602) 944-7245.


IBAA Bancard Meeting
Attracts 150 Bankers

• B M A Panel Selects Outstanding Ads




More than 150 bankers from 31
states registered for the second an­
nual IB A A Bancard Conference
0 held at Minneapolis in mid-May.
“ Building Your Business” was the
theme of the meeting for bank of­
ficers and staffers who direct credit
card activities in member banks of
% the Independent Bankers Associa­
tion of America.
In addition to learning that banks
in the program have more than
doubled in the past year—to 350—
# delegates were told that the IBAAsponsored program had recently
Federal Reserve Bank of St. Louis

A TM Access and Customer Usage Grow


UTOMATED teller machines
continue to be a key retail ser­
vice in commercial banks nation­
wide, according to the American
Bankers Association’s new Retail
D eposit Services Report.
The A B A study found that 96
percent of medium-sized banks
(assets of $100-500 million) and
almost all (99 percent) large-sized
banks ($500 million or more in as­
sets) operated ATMs in 1987 and
the average number of annual trans­
actions processed on those bank
operated ATM s was between 388,
500 and 8.8 million, depending on
bank size.
The report also showed that 31 to
77 percent of community banks
(assets of $100 million or less)
reported operating ATM s with an
average number of 34,000 to 90,000

customer transactions processed on
bank operated ATMs.
All banks, however, projected a
significant increase in customer
transactions in 1988, especially $50
to 100 million-asset community
banks, where transactions were ex­
pected to reach 131,800 by mid1988, up 46 percent from a year ago.
The growth of ATM services re­
flects a strong banker commitment
to convenience and customer ser­
vice, according to Terry Kors, chair­
man of A B A ’s Branch Administra­
tion Division and senior vice presi­
dent, Citizens and Southern Bank
Corp., Tampa. “ By offering cus­
tomers after-hours access to their
bank accounts, ATM s enhance, but
don’t replace, traditional banking
Northwestern Banker, July, 1988

“...fee income from
our Investment Center •
continues to exceed all •
our expectations!”
When Bill Beohm, president of Tama State
Bank, decided to provide a full service invest­
ment center for the bank’s customers, he looked
into a number of companies offering this type of
service. “We chose Investment Centers of Amer­
ica,” Bill says, “because they have years of experi­
in working with independent banks such as
Investment counselor Bob Gun­
ours and a proven track record of success.”
derson discusses an investment
with one o f his clients.
Beohm was certain the program would
succeed but was surprised how quick­
ly it happened. Surprised how the Investment Center’s hand­
picked representative, Bob Gunderson, established “almost
instant credibility” in the bank and in the community.
Surprised at the many new faces he saw in the bank because
of the Investment Center. Surprised at the amount of cross- j
over business the center has generated. Surprised how
bank deposit levels remained stable as customers drew
money from other institutions, brokerage houses, insur­
ance companies, etc. to fund their investments.

“Most o f all, we’re surprised at how fe e income
from our Investment Center continues to exceed all
our expectations!”, Beohm says, “and it’s all new
money... income we would not have had otherwise. ”
It’s no surprise that 60% of your customers
would prefer to consolidate their financial affairs at
one bank — that’s research-proven! For more
information on establishing an Investment Center
in your bank, call or write today!

Investment Centers of America, Inc.
First Dakota Building • 212 North 4th St. • Bismarck, ND 58501

WilliamJ. Beohm, President

TOLL-FREE: 1-800-544-7113


North Dakota: 1-800-732-2363)
Digitized for
Federal Reserve Bank of St. Louis



Outlook for community banks
in the world of the
Too Big to Fail!

Executive Vice President
Independent Bankers
Association of America
Washington, D.C.


1 OOKING to the year 2000, we can be confident
L that many community banks filling specialized
niches in the market will be among us, around us and a
comfort to us. I am similarly confident that such com­
munity banks even at that time will not be trying to
^ restrict the disadvantaged of our society—the disad­
vantaged who may not have entered the paper world of
checks, let alone plastics—to automated teller
machines instead of human tellers, The only issue is
one of numbers, and the merger-acquisition age is upon
^ us. But numbers games are silly, barren, lack meaning
and are so often wrong. Remember the predictions of
the late 1970s and early 1980s? One would think their
primary purpose was to encourage feelings of fear and
trembling in small banks.

• Two Caveats
I have two caveats to this optimistic prediction:
(1) First, it assumes that the industry remains a key
player in the private sector—that quasi-nationalized
• institutions like Continental Illinois, First Republic
and the brain dead thrifts don’t survive and prosper in
the years ahead to the detriment of institutions still
laboring under the disciplines of free market theology,
whose basic tenet is the right to fail. More than 65
• community banks failed in Texas in the last 15
months. Texas is an overbanked market. A process is
underway whereby inefficient institutions are being
culled out; and then, the government intervenes to
say—we decree that some of you, based solely on size,
• are immortal, and if it causes the rest of you to suffer
more, so be it.
FDIC Guaranteed Deposits
How does something like this work its way through
• the system? We have the recent example at hand. By
direction of the Board of Directors of the FDIC, on
Federal Reserve Bank of St. Louis

.. . presentation to the Restructuring America’s
Financial Services Industry Conference at Morin
Center for Banking Law Studies, Boston University
School of Law, April 20, 1988.

March 29, 1988, Hoyle L. Robinson, executive secre­
tary, wrote a letter to Mr. Gerald W. Fronterhouse, the
then chairman and chief executive officer of the First
Republic Corporation which stated inter alia:
At the time of the financial assistance,
the FDIC also determined that all the
depositors and general creditors of the First
Republic banks would be fully protected and
that services to the customers of these
banks would not be interrupted. The express
intent of this determination was to assure
all depositors of the banks, insured and
uninsured, and all general creditors of the
bank, that valid and enforceable obligations
of the bank will be fully honored, regardless
of the nature of the long term solution that
may be announced regarding First Repub­
lic .. . This assurance and the financial sup­
port provided should relieve anxieties about
the safety of transactions with the First
Republic banks. You may provide copies of
this letter to customers and depositors as
you deem appropriate.
Here, a footnote is appropriate. A t approximately
the same time, the Wall Street Journal reported that
the Federal Home Loan Bank Board had given similar
guarantees to the depositors and creditors of the sec­
ond largest thrift in the world, the Financial Corpora­
tion of America.
Marketing Tool for Republic
On April 5, a letter was sent to the customers of the
First Republic Bank over a signature of its top of­
ficers. Its salutation was—unsurprisingly—Dear Cus­
tomer. It enclosed the letter from the FDIC and it used
this FDIC letter as a marketing tool. The April 5 First
Northwestern Banker, July, 1988


“ What these policy statements mean is what banks above a *
certain size have known for years— they they will not be
allowed to fail. For them, $ 1 0 0 ,0 0 0 in deposit insurance
becomes irrelevant.”
Republic letter stated, “ the express intent of this det­
ermination was to assure all depositors of the bank, in­
sured and uninsured, and all general creditors of the
banks, that valid and enforceable obligations of the
banks will be fully honored. This guarantees dep­
ositors and general creditors that ALL of their obliga­
tions of the banks will be honored, regardless of the
amount involved . . . you should be fully aware that
your depositors, transactions and obligations are com­
pletely safe.” ALL was capitalized and underlined.
Thus, one of the sickest of the Texas depository in­
stitutions was authorized to market a product by
federal regulators that no other financial institution
can market—a fail-safe CD over $100,000, fully pro­
tected by the government. In addition to having this
exclusive product, we are not aware that regulators
have enforced rate or loan pricing discipline on this
quasi-nationalized institution.
A t this time, an historical reference may be appro­
priate. In addition to moderator Jerry Hawke, another
great financial thinker was Sir Thomas Gresham
(1519-1579). Hawke’s duty was to explain legal prin­
ciples to the former Fed Chairman Arthur F. Burns.
He was not always successful, fortunately. Gresham
explained to Queen Elizabeth the financial principle
that bad money drives out the good. Only the purists
in the audience would regard First Republic CDs as
“ good money.”
Second Caveat
(2) My second caveat assumes that the leaders of the
banking industry do not give away our franchise—
and perhaps one of the most essential remaining com­
ponents of our existing franchise is FDIC insurance
coverage to the $100,000 level. Now why would banker
“ statesmen” volunteer to give this away? Why would
the chairman of First Union, Edward E. Crutchfield,
testify before the Senate Banking Committee on Dec­
ember 8 of last year that “ First Union Corporation
would give up its deposit insurance in return for ex­
panded securities powers” ? This is a direct quote from
a December 9 lead story in the American Banker. Only
Mr. Crutchfield knows why he said this. But it has
been said, so let us put in place a hypothesis.
Too Big to Fail Doctrine Emerges
In the early 1980s, then Comptroller of the Currency
C. Todd Conover, against the backdrop of the bailout
of Continental Illinois, first enunciated the too-big-tofail doctrine. FDIC Chairman Seidman, in his National
Press Club appearance on October 16, 1986, ac­
knowledged that this policy was still in effect.
What these policy statements mean is what banks
above a certain size have known for years—that they
will not be allowed to fail. For them, $100,000 in
deposit insurance becomes irrelevant. They have
something better—all deposits at their banks, and
their banks alone, are not at risk. They have achieved

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

immortality! And, since they have something better,
deposit insurance becomes a bargaining chip. Smaller #
depositories don’t have this luxury—as noted, they are
failing in record numbers since the Great Depression
and, in some instances, depositors over $100,000 have
lost money and general creditors haven’t been made
whole. The level of deposits in community banks i s #
directly related to the maximum level of deposit in­
surance in their banks. Proposals to reduce deposit in­
surance coverages must be regarded as proposals
which look towards draining the deposit base of
smaller institutions to the benefit of the large.
No Assessment for Risk
Another aspect of giving away our franchise is ped­
dling the notion that all banks are equal. We aren’t.
Continental and First Republic and money center #
banks in general present a systemic risk to the finan­
cial and insurance systems. The Farmers and Mer­
chants Bank of Ellicott City presents no such risk. Un­
fortunately, the assessment base of our present in­
surance system makes no provision for assessments #
based upon the systemic risk to the system.
Similarly, there is great resistance to the concept
that all liabilities of the system should bear an in­
surance assessment. Foreign deposits are a clear
Lability. Why aren’t they assessed? These issues #
become very alive when the FDIC is losing money for
the first time in its history and when billions of FDIC
funds are being channeled to support the too big to fail.
How long, oh Lord, are community banks going to be
called upon to subsidize the big?
How Effective Are Firewalls?
Another way of destroying the commercial banking
franchise is to so expand the coverage of the safety
net—the network of government programs underlying £
the safety and soundness of the banking system—to
make it meaningless. Fed Chairman Alan Greenspan
has testified that he believes in firewalls. He has
stated, “ The important point is whether these
measures would cause the risks of securities activities £
to be passed on to banking institutions and to the
federal safety net. As I indicated, the Board believes
that the corporate separateness measures that we re­
commend should be put in place effectively deal with
these problems.” (Chairman Greenspan’s N ovem ber#
18,1987 testimony before the House Banking Commit­
But, fortunately, equally formidable voices have
sown the seeds of doubt and disbelief about the effec­
tiveness of firewalls. Is it the course of wisdom to con- #
struct a new financial system on the basis of untested
beliefs? Former Fed Chairman Paul Volcker was not a
believer. Neither was former Citicorp head Walter
Wriston, who perhaps expressed his doubts best. In
1981, he told the Senate Banking Committee that “ it is #
inconceivable that any major bank would walk away

• from any subsidiary of the holding company. If your
name is on the door, all your capital funds are going to
be behind it in the real world. Lawyers can say you
have separation, but the marketplace is persuasive and
it would not see it that way.”

Congress Now Being Petitioned
The Congress is being asked to sign off on a new
financial blueprint based on belief in firewalls—based
on the belief that nonbanking subsidiaries of holding
^com panies can be insulated from the bank and the
9 federal safety net. Now if this belief is correct, there
may be some logic behind the new conglomerate finan­
cial structures that are being advocated. But if this
proves to be the worshipping of a false god and if the
^ subsidiaries cannot be insulated from the bank and the
^federal government’s safety net, then we will have
taken a major step towards far greater government in­
tervention in our system. And, in the fairly near
future, we may see a too-big-to-fail conglomerate link^ in g commercial banking, insurance, real estate, etc.,
belly up to the government bar for a bailout.
While some of the present high priests of deregul­
ation have staked their case on a belief, others just
don’t believe in the safety net. They believe that bank­
i n g is a business like every other business. But, as
regards the latter, every society has had fringe
elements advocating thoughts destructive to the finan­
cial and social order as a whole.





Reagan Era of Deregulation
Let me close this brief opening presentation with a
recent historical perspective. We are coming to the end
of an era—the Reagan era. The Reagan Administra­
tion did have in place and aggressively pursued a
sweeping deregulation agenda. The model of this agenda under Treasury Secretary Donald Regan was the
Merrill Lynch financial supermarket model. Under­
secretary of the Treasury George Gould’s deviation to
the super bank model was not a significant change.
This Administration has had no use for specialized
financial institutions. Secretary Regan said it best in
Chicago in September, 1981. In setting out the deregu­
lation blueprint of this Administration, he stated:
Another problem fostered by regulation is
specialization. In some ways, specialized
financial institutions are like that rookie
pitcher who comes up from the minors and
mows them down with his fastball. You can
bet that the opposition will have adjusted
by the next season, and our pitcher better
have more than just a fastball if he wants to
stay in the big league.

Secretary Regan’s Approach
To implement this vision, Treasury Secretary Regan
and his Congressional allies worked first to give thrifts
the foundation powers of banks: demand deposit ac­
counts and commercial lending powers. This was done
in the Garn-St Germain A ct of 1982 and even the Wall
^ S treet Journal now criticizes this law as having con­
tributed to the thrift and the FSLIC crises we are pres­
ently facing. A March 25, 1988 Journal article stated:
Much of the S&L debacle can be traced
to the 1982 Garn-St Germain legislation,
and subsequent state deregulation, that
gave broad and risky new powers to S&Ls.
Federal Reserve Bank of St. Louis

Now, with those problems still unresolved,
Congress is contemplating further banking
deregulation, the repeal of the GlassSteagall A ct that separates commercial and
investment banking. However, the G A O ’s
Mr. W olf worries that some commercial
banks would run wild and pile up losses in
investment banking—just as some S&Ls did
when their lending and investment powers
were expanded.
Results of Secretary’s Work
History has still not written how Secretary Regan
blackmailed the banking industry to get them to sign
off on the unfortunate bill. Mr. Regan told the banking
industry that they would not get competitive deposit­
taking instruments unless they signed on the dotted
line, even though he had full authority under the his­
toric 1980 Depository Insitutions Deregelation Act to
give banks these competitive instruments.
Regan and Company then went after the separation
of banking and commerce. Fed Chairman Paul Volcker
and friends fought them for five years and the separa­
tion of banking and commerce was reaffirmed by the
bill that President Reagan reluctantly signed into law
on August 10, 1987, closing the nonbank bank loop­

“ I am confident that if the too big to
fail doctrine stays in place, future
historians will regard [Sen.
Proxmire’s] bill as a turning point.”
Thus thwarted, the Administration then turned its
attention to the repeal of the Glass-Steagall Act, which
prohibits the common ownership of commercial banks
and securities firms. It is my judgment that they
would have gotten nowhere with this except that first
Ken McLean, Senate Banking Chairman Proxmire’s
Chief of Staff, and then Chairman Proxmire became
converts to this cause. They were also facing their last
hurrah and the golden fleece of history was beckoning.
Portent for the Future
I am confident that if the bill that Chairman Prox­
mire so skillfully maneuvered through his Committee
and the Senate becomes law, the door will have been
opened significantly to a far more concentrated finan­
cial system in the years to come, to the detriment of
specialized financial institutions like community
And, I am confident that if the too big to fail doc­
trine stays in place, future historians will regard this
bill as a turning point because it gave legislative sanc­
tion not only to the common ownership of securities
firms and commercial banks—but also to the common
ownership of banks, securities firms, insurance firms,
real estate firms and travel agencies in the context of
these conglomerates being too big to fail.
And, if this is the case, I am also confident that in
retrospect, this legislation—like the 1982 Garn-St Ger­
main A ct—will be regarded as having been a serious
Northwestern Banker, July, 1988


Written especially for
T he N

Special Reading for
Directors, Management

Advisors for
Bank Directors
Editor’s Note: After numerous visits at recent state conven­
tions with bankers about problems they face internally,
with regulatory procedures, and with some customers, we
asked Dr. Austin to prepare an article that would specifi­
cally discuss for bank directors what resources they can
draw on for help in making necessary decisions to resolve
these problems as they arise. Dr. Austin graciously re­
sponded with the following article. It is being presented in
two parts. Part I discusses how the board can utilize
professional advisors, while Part II, which will be pub­
lished in next month’s issue, will give the board 14
guidelines on rrHow to Obtain Professional Assistance.” We
hope bank owners, directors and management find this
special series useful.

Part I
HE state and federal regulatory agencies expect you
as boards of directors to be omnipotent. If you are not,
you have significant potential liability as a director. Most
of you are not professional bankers, financiers, or accoun­
tants. Generally, you are businessmen; professionals such
as doctors, dentists, veterinarians; housewives; farmers,
and other vocations and professions not allied with the
financial industry. In fact, if most of you have one thing in
common, you are not financially oriented. How many of
you need to have your checkbook balanced for example?
You seem to be caught in a Catch 22 — you are supposed to
direct and supervise a financial organization while, at the
same time, your strengths as a human being are in other
areas of endeavor.
How do you solve the problem of supervising and


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

orth w estern



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

directing the bank/bank holding company in a prudent £
and solvent manner while, at the same time, covering
your deficiencies as a director?
At the outset of this commentary, I must confess as to
my credentials so you will know the position I come from
in this commentary. I am president of a national financial 0
institution consulting firm which specializes in assisting
community banks throughout the United States and,
thus, act as a professional advisor, investment banker, and
financial institutions consultant to banks. I am also an
attorney and a Chartered Financial Analyst. Therefore, 1 0
guess you can call me at least a professional advisor
"cubed.” Now that you are aware of my credentials and
might be in favor of professional advisors because of my
bias, I would like to talk to you about how professional
advisors can assist you in supervising and directing your 0
bank so you can meet your fiduciary responsibilities and
feel more comfortable about your purported deficiencies
as financial analysts and financiers.

Utilizing Professional Advisors
At the Board Level


Professional Staff
Your first professional advisors are right at hand at all ^
times. They are your professional staff within the bank. A w
complete commentary could be developed on the compe­
tency of your staff, but your first line of defense against
insolvent and unsafe banking is a high quality, modern,
progressive, intelligent and honest management a n d ^
If your president and chief executive officer is not as
competent a person as you can obtain with your limited
resources, then you are headed for trouble. If your lenders
are not competent and do not know all of the tricky 0
regulations and problems with lender liability, you are
heading for trouble. If your accounting department can­
not get the bank to balance, and your internal auditor
could not find the elephant in the loan ledger, then you are
headed for trouble.
On the other hand, if they are good, competent and
honest, they are your first checks and balances. Thus,
your first set of professional advisors are your profes­
sional staff.
However, always keep in mind the old adage which 1 0
coined several years ago and that has spread around the


“ (If) your legal counsel is on the board, he or she wears two hats
and is in a high priority conflict of interest.”
^country: "Respect Your Management — Don’t Trust
Them.” A recent study by the Comptroller of the Currency
indicated that of all of the bank failures, in 57% of the
cases the C.E.O.s were "desk spots” who made all of the
^decisions. Also, in at least 20% of the cases, misappropria­
tion or embezzlement of funds were one of the causes of the
failure of the bank. The professional management should
be treated with respect, until they lose it, but they should
not be trusted with the entire operation of the bank
^ without a series of checks and balances.
The other professional advisors discussed below are
those that you use to assist you as directors in providing
the checks and balances necessary for the safe and solvent
operation of your banking institution.


B ank/B ank Holding Com pany Law yer

As noted above, I quote "lawyer.” I believe that after 10
years of being a lawyer, a Ph.D., and a bank consultant for
over 20 years, I understand the role of a bank lawyer in
^ y ou r type of institution. Essentially, you need two types of
^law yers and they may be encompassed in one individual
or one law firm in your area.
• The first type of lawyer you need is the day-to-day
operational bank counsel who will assist you in the filing
^ o f mortgages, security agreements, financing statements,
and other legal documents necessary to the daily opera­
tion of your banking institution. This local bank counsel
also will assist you in the collection of problem loans, legal
filings for foreclosure and litigation purposes. This type of
^layw er is necessary because your bank operates in a
financial environment at all times, and you need compe­
tent legal assistance to provide you with the expertise in
order to perform the job as a financial intermediary.
In addition, the legal counsel can also assist you in
0 advising the board as to what it should or should not do in
certain matters and should act as the secretary to the
board and auditor of the financial filings of the bank and
its legal documents necessary for its fulfillment as a
corporation within your state or under the National
£> Banking Act. For this purpose you do not need a big city
lawyer unless the local lawyers are not capable of doing
the job.
Furthermore, you should consider carefully not placing
your local lawyer on your board of directors. As soon as
# y o u r legal counsel locally is on the board of directors, he or
she starts to wear two hats and is in a high priority conflict
of interest position. Your local bank counsel should come
to all of your board meetings, executive committee meet­
ings and loan committee meetings where decisions will be
# made that could affect the legal liability of the bank and/
or its personnel. It is not necessary for the bank counsel to
show up at meetings which are procedural or administra­
tive in nature. However, as soon as your bank counsel sits
on the board, he or she is a director and is subject to all of
the liabilities of a director. They may in the future be
subjected to compromising the bank’s position with that of
the directors’ position on any particular legal matter that
might be faced by the bank.
I recommend that bank counsel be retained to assist the
® board o f directors, but not to be a "cheap” lawyer member
of the board. This so called "cheap” lawyer on the board
Federal Reserve Bank of St. Louis

may end up being very expensive to you in the long run. I
should note that not all lawyers agree with me but,
unfortunately, most of the lawyers who do disagree are
bank directors. They assume that if they sit on the board,
they can act as bank counsel. Furthermore, their law
firms are often retained by the bank/bank holding com­
pany. If you are a bank counsel and a member of the board
of directors, you can perform your duties as bank counsel
without any apparent or real conflict of interest, while at
the same time, not diminishing the funds received by you
and/or your law firm.
• The other type of bank counsel that might be neces­
sary would be the specialized legal counsel to assist you in
lenders liability cases, branch and/or merger or consoli­
dation acquisitions or bank sale. There can be other types
of transactions involved here, but essentially it is the
types of transactions which are irregular and not specific
in nature. If, for example, you received a Cease and Desist
Order from your state and/or federal regulatory agency,
your local bank counsel might not be the appropriate
person to handle the negotiations to assist you in meeting
the conditions of the Cease and Desist Order. Further­
more, if you were required to add capital to your bank/
bank holding company, specific "out-house” counsel might
be of advantage to you because they treat these types of
transactions on a regular basis and your local counsel
may never have seen such a transaction.
You, as directors of the bank/bank holding company
should know when to retain out-house counsel to assist
you in a specific and often significant transaction. If your
local bank counsel is worth it, he or she will know when to
recommend retention of such "out-house” counsel.

Outside Auditors
Bank counsel are not the only professional advisors you
need on a regular basis. Whether you like it or not, a
significant check and balance that you should use to assist
you in determining the safety and solvency of your
banking organization is the outside audit firm. There is no
attempt here to recommend one outside C.EA. firm over
another. However, I am most insistent as a professional
that one of your best checks and balances for your
solvency is the utilization of an outside auditing firm to
protect against misappropriation of funds, embezzle­
ments, fraud conversions, and other significant problems
that can wipe out your bank through the dishonest
practices of your personnel and/or their incompetent
In the old days, you used to be able to expect the state
and federal banking examiners to do this job for you.
However, with their emphasis on assisting the problem
banks, their administrative and staff cutbacks, and ten­
dencies to examine today by computer or through the
mail, they are less of a check and balance than they
were before.
You probably say you cannot afford to use an outside
C.PA. firm to do a certified audit. Realistically, you cannot
afford not to have an outside audit done. The cost is not

(Turn to page 16, please)
Northwestern Banker, July, 1988


Control staff
workload to:
Push p r o fits ^
Push e x p e n se s^

Written especially for



or th w ester n



visors have been promoted based on superior technical #
skills; however, this does not automatically prepare
them for management, and this gap in training will cer­
tainly impact staffing.
We are all aware that workloads are not constant—
that every bank experiences peaks and valleys in %
available workloads. Yet, without a method of identify­
ing existing workload variations precisely, and defin­
ing exactly how many hours should be applied, staffing
requirements are largely a matter of informed guess­
work. And when your supervisors are estimating, there #
is a natural tendency towards overstaffing. After all,
who has to answer for any problems in meeting dead­
lines or excessive overtime? Any conscientious super­
visor wants to be absolutely certain that he/she is
covered for peaks as well as valleys.
This approach to staffing is illustrated by the ac­
companying chart:

Chief Consultant
Austin P. Lawler & Associates, Inc.
St. Charles, 111.

AVE you ever seen five teller windows open at 10
a.m. with not a customer in sight, and found the
same lobby packed at noon with only three tellers to
handle the customers? A staffing problem in the teller
line is certainly the most obvious example to
management—as well as to a bank’s customers—of
poor employee utiliztion. But closer examination will
reveal variations on this theme in other departments.
Every institution contains potential for better control
over employee utilization.
Payroll is your single largest non-interest expense;
ensuring that each and every employee is maximally
productive is essential to controlling costs. Keeping a
sharp eye out for misapplied staff and wasted hours is
an ongoing need in any organization and you should be
able to expect your managers and supervisors to iden­
tify opportunities for improvement as they arise.
Begin at the First Level
This control must begin with first level supervision:
the people on whom you depend to provide recommen­
dations as to what is needed to effectively accomplish
all tasks assigned to a department. Often, those super-


■ ABOUT THE AUTHORS— Austin P. Lawler and Associ­
ates is a bank m anagem ent consulting firm that
specializes in the areas of cost reduction and income im­
provement. Its programs are designed to provide a bank’s
supervisory staff with the tools and training necessary to
manage in the most cost effective manner.
Austin Lawler and Jane Conroy and their staff have pro­
vided service to a broad variety of banks in a wide range of
marketplaces and are the largest provider of cost reduc­
tion programs to Iowa banks.

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

To control costs, what you are aiming for looks more
like this:




To ensure that you are maintaining this degree of
control over the utilization of your most expensive
resource, you need to know that each hour paid for is
being used to yor best advantage.
Understand Three Basic Points
To manage this time effectively, your supervisors
need to apply the following terms:
ACTIVITY —What is each employee actually doing
with his/her time?
VOLUME—How often and how many times does this
activity occur?
STAN D ARD —How long does it take?
(Turn to page 16, please)


Microcomputers and
Automation Issue

Customers Get
• Cash or Credit . . . with

^A D V A N C E

Written especially for



o r th w ester n



President and CEO
ITS, Inc.
Des Moines, la.
TM debit cards could become dual purpose cards
with the introduction of SHAZAM Advance.
ITS, Inc., operator of the SH AZAM network in a
five-state area, is introducing this new product to sup­
plement the current uses of the debit card. SHAZAM
Advance allows consumers to receive ATM cash advances from a line of credit established by their finan­
cial institution. Also, customers will be able to make
purchases using their credit account at merchant loca­
tions which accept SHAZAM Advance transactions.
In addition, merchants will be able to offer their own
cards (“ private label cards” ) which will be supported
by the credit function.
This newest product enables your customers to re­
ceive cash advances and make purchases from retail
merchants who participate in this electronic banking
The credit transactions will be processed in a similar
way that a debit transaction is processed to a D D A or
savings account. FIs will not have to issue cards to
provide customers with credit. The credit option will
be an “ add-on” feature to the SH AZAM cards custo­
mers already use.
Everyone else issues cards as an agent. They don’t
get to share the profits, but they also don’t share the
risk. We at ITS began to realize that we really didn’t
want to issue a traditional MasterCard or Visa. They
involve a lot of complicated rules and many banks al­
ready offer both cards to their customers.
Unlike an overdraft or checking account, SHAZAM
Advance is electronically processed through an ATM
terminal. If the transaction is an approved ATM cash
advance, money is dispensed. If the transaction is an
approved purchase authorization at a retail location,
the customer receives the merchandise and the
retailer’s account is credited at its sponsoring FI.
SHAZAM Advance Cash
Here’s how a SHAZAM Advance cash transaction
The cardholder FI offers a line of credit to be tied to
the cardholder’s customer card number. A credit line is
established, which is separate from the cardholder’s









Federal Reserve Bank of St. Louis

DDA or savings account. A credit transaction only af­
fects this credit account.
The customer will insert his/her SHAZAM card into
an ATM, enter the personal identification number
(PIN), select the option for a credit cash advance, then
select the amount desired. If the transaction is ap­
proved, the money is dispensed.
SHAZAM Advance Purchase
Customers will also be able to make purchases using
their credit account at merchant locations which ac­
cept SHAZAM Advance transactions. In addition,
merchants will be able to offer their own cards which
will be supported by the credit function.
The merchant will handle the SHAZAM Advance
transaction as follows: The clerk at the merchant loca­
tion chooses the credit key, the customer then swipes
the card and enters the PIN.
The cardholder data processing center (DPC) deter­
mines whether to approve or deny the transaction and
formats a response message to return to ITS. ITS pro­
cesses the message and routes a formatted response to
the establisher DPC.
The establisher DPC returns the response to the ter­
minal and the customer receives a receipt describing
the transaction processing results. If the transaction
was an approved purchase authorization, the mer­
chant’s account is credited at their sponsoring FI.
Advantages of Advance
The advantages of SHAZAM Advance to the custo­
mer include:
• using your current bank card and add SHAZAM
• offer credit card cash advance at ATMs.
• make purchases using credit account at retail
locations which accept SHAZAM .
• receive many of the same benefits as national
credit cards.
Benefits to FI
Financial institutions will enjoy many of the bene­
fits of this new product, such as:
• open a line of credit for selected customers.
• control your own F I’s accounts receivables.
• FI determines the merchant discount (if any).
• offer customers many of the same benefits as na­
tional credit cards.
• will not have to reissue cards to provide custo­
mers with credit.
Northwestern Banker, July, 1988

Benefits to Retailer
From the standpoint of the retailer involved, this is
also an attractive service and benefit. The advantages
to the retailer include:
• may offer private label credit cards for customers.
Credit transactions with these cards are only
allowed at that retailer’s stores.
• enhance customer purchases for more volume.
• may not be charged for discount like MasterCard
and Visa.
Bankers Comment
“ I think this will be an excellent opportunity for FIs
to control their accounts receivables and offer more
competitive rates to both merchants and customers,”

said Dennis Wood, president of Bankers Trust in Des^
“ When this option becomes available, it will give
smaller FIs a chance to offer their own credit program
to their selected customers,” said James Miller, chair­
man, Pioneer Bank in Sergeant Bluff.
“ I think consumers will be pleased with a credit fea­
ture of the SHAZAM card, and the possibility of lower
interest rates could be a selling point,” according to
Ron Fenton, chairman, Story County Bank in Mar-,
With the introduction of SHAZAM Advance, con­
sumers will experience yet another benefit of electronic
banking at ATM terminals.

(Continued from page 14)

task in their departments from a predecessor—are they
certain that every task is necessary? W e’ve seen many
instances of hours applied to antiquated or useless ac­
tivity because “ we’ve always done it this way.”
They then need to closely examine work manage­
cause of misapplied time is the idle time and®
ment from the three angles:
active imagination of employees. Most people do not
ACTIVITY —Is it necessary? Is it according to proper
want to appear useless while everyone around seems
procedure? Is there a better way to get the same
occupied, and so it is not uncommon to find that wellresults?
intentioned employees have invented unnecessary pro­
VOLUME—What are the patterns and trends so that I
cedures to occupy otherwise idle time. As these em-®
can plan accordingly?
ployees leave the bank, they will train their successors
STAND ARD —How long should this task take? What
in these tasks, and the problem becomes more deeply
is a reasonable performance standard for a trained in­
entrenched. Your supervisors must be able to examine
each activity in their departments to ensure that each
is needed and, if so, that it is performed according to®
Inadequate planning for varying workloads is one
correct procedure.
reason for lost time. Let’s examine some of the other
What methods are your supervisors using to deter­
reasons why you may be paying for unproductive
mine staffing increases? Too often, a staffing addition
hours, and ways in which you could be getting more
is based on vague information. We add staff because«
productivity out of the hours for which you’re paying.
“ we’re swamped,” or “ customer service is suffering.’ ®
Review Existing Activity
These are, of course, all very valid concerns. But ask
Consider existing department activity. The hours
question such as “ how swamped?” and you will find
already applied to the workload may contain hidden
that most supervisors are at a loss as to how to answer
opportunities. Your supervisors have inherited each
with well documented, quantified support for these ob-^
servations. The logical conclusion
may seem to be to increase staff—
but without a precise definition of
why and by how many hours, the
best you can hope for is a rough^
Austin P. Lawler & Associates, Inc.
estimation of what is really nec­
to accomplish the work effec­


Is reducing operating expense
one of your priorities?

If s o , y o u ’ v e p r o b a b ly a lr e a d y ta k e n s te p s in tern a lly to r e d u c e c o s t s . B u t
h o w m u c h c a n realistically b e a c c o m p lis h e d w h e n it’s o n ly a p a rt tim e e f ­
fort at b e s t?
W e h a v e th e tim e , e x p e r tis e a n d o b je c tiv ity n e c e s s a r y t o b rin g a b o u t th e
im p r o v e m e n t s y o u k n o w y o u n e e d .
O u r firm is th e la rgest p r o v id e r o f c o s t r e d u c t io n p r o g r a m s t o I o w a b a n k s .
L e t u s tailor a p r o g r a m to m e e t y o u r n e e d s a n d d e liv e r p o s it iv e resu lts. O u r
p re lim in a ry a n a ly sis c a n s h o w y o u h o w d r a m a tic im p r o v e m e n t s c a n b e
m a d e at y o u r b a n k .
F o r a list o f r e f e r e n c e s o r m o r e in fo r m a tio n call 3 1 2 - 5 8 4 - 5 7 5 7 .

Austin P. Lawler & Associates, Inc.
40W 274 Winchester Way
St. Charles, IL 60175

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

Recognize Opportunities
Opportunities for decreasing staff
frequently are not fully realized
either. Workloads can decline in
specific areas, even if the bank is in a
growth posture. For example, while^
total loan dollars outstanding may
increase, this may represent a shift
toward larger loans or increased use
of master lines. In such a case cor­
responding processing activity will^
decline, even though overall growth
has occurred. This type of a decrease
in workload is likely to be gradual.
Again, we are looking at a natural
human response by individual em -f
ployees who find themselves with



Microcomputers and
Automation Issue

Growth of m icros in banking
. . . a guest editorial by
Marketing Director
Evergreen Systems, Inc.
Omaha, Nebr.
INCE the early 1980s, we have seen an
emergence of microcomputers in the bank­
ing industry. Giant steps in technology of
hardware and software have given the banking
industry the ability to accomplish tasks that
were unheard of and unthought of in the early
In the beginning, the programs offered were
mostly decision aid in design. What you could
do with a basic four function calculator, a piece
of paper, pencil and a great deal of time was
accomplished with remarkable speed with the
micro. This began also the era of the “ What I f”
Microcomputer literacy and desires have in­
creased at a record pace, and bankers are want-


shrinking workloads. Without an ad­
justment in schedules from ade­
quately equipped supervision, they
may either invent new procedures,
as described earlier, or gradually
stretch their available work to fill
the time that has been allotted to
complete it. It becomes very dif­
ficult to isolate these excess hours
once they have been reabsorbed;
valuable opportunities are lost and
dollars are wasted.

ing these machines to do more. They want not
only decision aid programs, but they also want
management aid programs.
Following is a short list of new applications
for which our industry is using microcompu­
• CRTs and smart terminals
• Mainframe data processing interface for
sharing of data
• Loan documentation
• Client profitability analysis
• Replacement of microfiche
• Investment portfolio accounting and val­
• Ability to analyze individual banks and
then create a consolidated analysis
• Ability to process non-interest, fee in­
come, generating programs
Banking automation also has increased at a
record pace. A programmer is not needed to
have a state-of-the-art, in-house computer sys­
tem. We have the ability now to create almost
any type of report for which data is available.
Bankers want to own and be able to utilize
their bank’s information.
Experts in the early 1980s said technology
in microcomputers and software will be the key
to future productivity. We are beginning to see
what they meant, and the future is exciting. □

These are just some of the causes
of lost productivity; your super­
visors must have a thorough under­
standing of how each employee’s
time should be utilized to confident­
ly and competently address their
particular situation while keeping a
close staffing/workload relationship
By providing specific answers to
these questions, your supervisors
can construct schedules for their em­

(Continued from page 13)
that great when you compare it to what the cost might be
if you do not have a certified audit and a significant
financial problem arises. Furthermore, you as director
can request bids from several competent outside C.PA.
firms and match up their costs with the benefits received.
If you do have an outside audit done and you do not like
the services rendered or the escalating costs involved,
then change C.EA. firms.
In 20 years of consulting, I can guarantee you that in
cases where a commercial bank /bank holding company
did not utilize a C.EA. firm, the damages from misappro­
priation o f funds, embezzlement frauds, and other legal
activities were far greater than the annual costs of doing
the audits. You should also keep in mind, however, that
C.EA. firms are not perfect and that you must make sure
they provide you with an efficient, competent, and profes­
sional service no different than what you would require of
your staff or yourselves.
Next Month: Part II o f Dr. Austin’s article will appear
in next month’s issue and is titled, ’How to Obtain
Professional Assistance.”
Federal Reserve Bank of St. Louis

ployees that will keep the hours you
are paying for under control. Asking
these questions on an ongoing basis
can assure you a means of keeping
this precise staffing/workload rela­
tionship intact, with confidence that
your most valuable resource is maxi­
mally effective at minimal expense.


ABA Comments on Fed Regs
For Funds Availability
The banking industry continues
to face the difficult and costly task
of complying with the provisions of
Regulation CC, which were adopted
by the Federal Reserve Board May
11 to implement the Expedited
Funds Availability Act, according
to the American Bankers Associa­
A B A recognizes that its primary
concern with the regulation rests
with the Congress, which failed to
give the Federal Reserve Board am­
ple flexibility to write the reg­
ulations, particularly in the case of
funds drawn on depository and
government checks. Funds drawn
on those deposited checks must be
available on the day following
deposit without limit to the amount
of the withdrawal. The dangers of
fraud losses are substantial.
The Senate has passed a limit on
the availability of such funds and
the A B A urges the House to follow
suit with its own limitations.
Northwestern Banker, July, 1988


OFFICERS elected during the 1988 Illinois Bankers Convention for the 1988-89 term are,
from left: Pres.— David L. Webber, pres. & CEO, Harris Bank, Roselle; Vice Pres.— Richard
K. Ostrom, pres. & CEO, Uptown Natl., Chicago; Treas.— Morris Peine, chmn., First
Farmers State, Minier; Secy— Daniel Marvin, pres. & CEO, First Natl., Mattoon, and (front)
Immed. Past Pres.—Jack A. Emmons, pres. & CEO, Security B&T, Mt. Carmel. Not pictured:
William J. Hocter, exec, v.p., Chicago.

Webber to Head Illinois Bankers Assn.
Associate Publisher
AVID L. Webber, president and
CEO, Harris Bank, Roselle, was
elected president of the Illinois
Bankers Association during the re­
cent 1988 annual convention in
Chicago. Mr. Webber was recently
named to his president position
after many years with Harris Bank,
Other officers elected during the
convention were:
Vice President—R ichard K.
Ostrom, president & CEO, Uptown
National Bank, Chicago.
Secretary—Daniel Marvin, presi­


dent & CEO, First National Bank,
Treasurer—Morris Peine, chair­
man, First Farmers State Bank,
Immediate Past President—Jack
Emmons, president & CEO, Securi­
ty Bank & Trust Co., Mt. Carmel.
Executive Vice President—Wil­
liam Hocter, Chicago.
The IBA convention was held last
month at the Fairmont Hotel in
Chicago. Over 400 bankers and
spouses attended the three-day
g a th e r in g ,
w h ich
in c lu d e d
workshops on topics ranging from
tax planning to ag marketing to
decision-making and media rela­

Noted speakers included D r.^
Beryl Sprinkel, chairman, Council of
Economic Advisors; former FDIC
Chairman W illiam Isaac; Ron
Zemke, author of Service America!,
and John M cLaughlin, R ob ert^
Novak and Morton Kondracke of
television’s McLaughlin Group.
General Session
This year’s convention theme was
“ Performance and Profitability . . \
Your Mission Today and in the
Future.” IB A President Jack Em­
mons opened the first general ses­
sion and told his audience, “ Pro­
viding quality service is the key to^
success in an industry like ours.
That relationship between service
and success, or to put it in other
words, between performance and
profitability, is what the IB A ’s 1988’
convention is all about.”
Providing insight on legislative
issues was A B A President Charles
H. Pistor, Jr., chairman and CEO,.
NorthPark National Bank, Dallas,
Tex. Referring to the repeal of
Glass-Steagall, Mr. Pistor said,
“ Bankers are facing a legislative
paradox, with an option to re-write a.
page of history.”
Mr. Pistor encouraged bankers to
talk with their local representatives
and to emphasize three important
points: 1. Bank securities must not^
be at the state’s individual rights.
2. Bankers should not have to give
up the right to sell insurance to gain
the right to sell securities. 3. Con­
sumer regulations must be fair. Mr.^
Pistor concluded by saying, “ Tim­
ing is everything, and there are
many steps between where we are
and where we need to be.”
Sprinkel Discusses Economy
Dr. Beryl Sprinkel spoke on the
many challenges facing the U.S.
economy and the banking industry.

LEFT—Taking part in the general session were, left: ABA Pres. Charles H. Pistor, Jr., chmn. & CEO, NorthPark Natl., Dallas, Tx., with Mr.
Emmons (center) and Mr. Webber. RIGHT— Presenting their views on the 1988 election and on banking were, from left: Robert Novak, Johr#
McLaughlin and Morton Kondracke, all of The McLaughlin Group, a syndicated public affairs television program.

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


LEFT— Enjoying the hospitality of United Missouri Bank were, from left: Raydine, Jeffrey and Bill Alexander, sr. v.p., The Bank of Edwardsville, III., with Stephan P. Blackburn, pres., UMB-St. Louis, and Larry Russell, vice chmn., inv. bkg. div., UMB-Kansas City. RIGHT—Showing
j|||i off their wares at the First Chicago exhibit were, from left: Camille O’Connor and Wendy Williams, both comm. bkg. assoc., and Dennis
“Skip” Duffy, a.v.p.

LEFT—Visiting at the convention reception were, left: Scott Grigsby, pres., Union Natl., Streetor, III., and Wayne Bismark, v.p., LaSalle
Natl., Chicago. RIGHT—Taking part in Deloitte Haskins Sells’ party were, from left: Heidi Cartwright, host; Dick Bishop, pres., First Natl.,
Moline; Bill Yant, host, and Gary Scott, host.

® President Reagan appointed Dr.
Sprinkel chairman of the Council on
Economic Advisors in 1985. In this
role, he provides the president with
— economic analysis and advice, and
helps formulate national economic
Dr. Sprinkel said, “ The economy
remains healthy and prospects are
q good.” He pointed out that during
the past 67 month economic expan­
sion period, 17 million new jobs have

Beryl Sprinkel, chmn., President’s Council
of Economic Advisors, Wash., D.C., was op­
timistic about the U.S. economy as he ad­
dressed the 1988 convention in Chicago.
Federal Reserve Bank of St. Louis

been created. “ It’s not an accident
that this has happened,” he said.
Dr. Sprinkel observed that some
of the economic “ problems” often
addressed today are imaginary ones.
To illustrate, he cited the “ rejected
theory that inflation is inevitable.”
He cautioned that we do need to get
inflation under control, but said the
threat of a major recession and high
inflation has been exaggerated. The
“ real” problem facing our economy,
he said, is the trade deficit, but that
“ is improving as we experience an
export boom .”
The members of the McLaughlin
Group, featured on a syndicated
public affairs program broadcast
from Washington, D.C., appeared
during the general session. The
three men gave an insightful look at
the upcoming presidential election
and its impact on the banking in­
Also featured at the convention
were comments from Lee Sherman
Dreyfus, former governor of Wiscon­
sin; a presentation by Raymond Stringham, of Strategic Market Pro­
grams, Inc., Chicago, and a special
look at “ The Expedited Funds

Availability Act Implications for
CEOs,” presented by represen­
tatives of the Federal Reserve Bank
of Chicago.
This year’s convention offered
many exciting spouse programs and
various convention activities, in­
cluding an evening at the ball park,
a musical and an exhibit hall with
over 70 displays.

Hocter Appointed to State
Scholarship Commission
William J. Hocter, executive vice
president of the Illinois Bankers A s­
socia tion , has
been appointed
to the Illinois
State Scholar­
ship C om m is­
M r. H o c te r
has an extensive
background in
educational poli­
cy. He currently
serves on the
Council on Education Policy and
Development for the American
Bankers Association, as well as on
Northwestern Banker, July, 1988


Illinois News

the executive committee of A B A ’s
State Association Division. He has
also been very active on the board of
trustees of the Graduate School of
Banking at the University of W is­
consin, Madison. He is both vice
chairman of the board of trustees
and vice chairman of the Herbert
Prochnow Educational Foundation
in Madison.
Prior to coming to the IB A as ex­
ecutive vice president in 1977, Mr.
Hocter served as vice president and
economist of the Federal Reserve
Bank of Cleveland. He served as
director of research and also was
associate economist to the Federal
Open Market Committee.
Mr. Hocter began his banking
career in 1962 as an economist in the
research department of the Federal
Reserve Bank of Chicago, and
served as assistant to the president
for five years. His other assign­
ments included secretary of the Con­
ference of Presidents of the Federal
Reserve Banks and secretary of the
System Subcommittee on Check
Mr. Hocter received his under­
graduate degree in political science
and his M BA in business economics
from Xavier University in Cincin­
nati. He earned his doctorate of
business administration from In­
diana University in Bloomington in
Mr. Hocter has taught a variety
of courses on economics at Loyola
University Graduate School of
Business and at Indiana’s Graduate
School of Business.

Mitchell Feiger, John J. Frale Jr.,
David L. Keller, Paul W. Velten and

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

First Colonial Bank of Lake Coun- ||
ty, adjacent to Hawthorn Mall, is
expected to open a temporary facili­
ty in July and its permanent facility
in December.
* * *



John T. Cannis have been named
senior vice presidents at Affiliated
Banc Group, Inc.
Mr. Feiger previously served as
vice president of finance for the cor­
poration. Mr. Frale will retain his ti­
tle as executive vice president of A f­
filiated Bank/Franklin Park. Mr.
Keller will retain his titles as execu­
tive vice president and secretary/director of Affiliated Bank/North
Shore National. Mr. Velten has
served as vice president in charge of
loan review since joining the com­
pany in 1985.
Mr. Cannis joins Affiliated from
Manufacturers National Bank of
Detroit, where he was a senior vice
president resp on sib le for ad­
ministration of the U.S. Banking
Department. He was with that bank
since 1964.
* * *
Lane Financial, Inc. has an­
nounced that its stockholders have
approved the acquisition of Lane
Financial by A B N /L A S A L L E
North America, Inc., parent com­
pany of LaSalle National Corp. The
acquisition is effective as of June 13.
* * *

David S. Grzenia has been named
vice president and manager of com­
mercial real estate, and Carol Proe­
sel has been named assistant vice
president of business services at Col­
onial Bank.



Mr. Grzenia previously served as
a vice president of Northbrook
Trust and Savings. In addition, he
also has served as vice president of
Lake View Bank and the Bank of
Ms. Proesel previously was
branch manager and assistant
cashier at Citizens and Southern Na­
tional Bank, Fort Lauderdale, Fla.



Michigan Avenue Bank has an­
nounced several staff changes.
June D. Schmidt has been named
vice president and manager of per- £
sonal financial services. She pre­
viously served as private banking
officer and assistant manager at
Continental Illinois National Bank
William G. Hoskins has been and Trust.
named president of First Colonial
Renee A. Hennessy has been pro­
Bank of Lake
moted to assistant vice president of
County, a new
personal financial services and
F irst C olonial
Robin J. Davenport has been pro­
Bankshares Cor­
moted to assistant vice president of #
poration full ser­
commercial loans.
vice bank lo ­
Sara G. Bode has been named to
cated in Vernon
the bank’s board of directors. Since
Hills, it has been
1986, she has been president of the
announced by
Greater State Street Council.
h o ld in g c o m ­
* * *
pany Chairman
C. Paul Johnson.
Robert L. Haire has been named
Mr. Hoskins has worked more vice president and production
than 20 years in Lake County as manager of First Colonial Mortgage •
president and chairman of First Na­ Corporation. He previously served
tional Bank of Libertyville, which as vice president of retail operations
was acquired by American National and of centralized processing at
Bank in 1984. He most recently
served as president of Suburban CHICAGO NEWS. . .
(Turn to page 24, please)
Bank of Hoffman-Schaumburg.


LEADERSHIP of the WBA is pictured here, from left: Vice Chmn.—Gilbert L. Homstad,
pres., Jackson County, Black River Falls; Chmn.—Thomas L. Schiefelbein, pres., Security
Natl., Durand; Jess S. Levin, pres., Bank of Elmwood, Racine, and Immed. Past
Chmn.— Richard P. Klug, chmn. & CEO, F&M Financial Serv. Corp., Menomonee Falls. Not
pictured: Pres.— Bryan K. Koontz, Madison.

Schiefelbein to Head Wisconsin Bankers

Associate Publisher

HOMAS L. Schiefelbein, presi­
dent of The Security National
® Bank of Durand, assumed leader­
ship of the Wisconsin Bankers
Association during the 92nd Annual
W B A Convention held last month in
Milwaukee at the Pfister Hotel. This
• y e a r’ s con ven tion theme was
“ Wisconsin Banking: A Design for
the Future.” Richard P. Klug, im­
mediate past chairman, presided
over the meeting. Mr. Klug is chair® man and CEO of F&M Financial
Services Corporation, Menomonee
Other officers serving the W BA
^ for the coming 1988-89 term are:
^ Chairman-Elect—Jess S. Levin,
president, Bank o f E lm w ood,
Racine; Vice Chairman—Gilbert L.
Homstad, president, Jackson Coun^ ty Bank, Black River Falls, and
President—B ryan K. K oon tz,
General Session
A special feature of the three-day
# convention was a full day of exhibits
during which vendors had the oppor­
tunity to present their products and
services to attendees. In addition,
an inspirational presentation was
# given by Danny Cox during the
opening day’s luncheon. First W is­

Federal Reserve Bank of St. Louis

consin National Bank held an all­
convention party the first evening of
the convention.
The second day’s general session
opened with comments from Philip
Butler, former prisoner of war, as he
presented a Flag Day salute,
“ Tragedy to Triumph.” An after­
noon “ super session” was held and
featured marketing presentations
by Kent Stickler, Financial Shares
South, and Trish Faulkender, TIF,
Inc. A reception by Banc One, and
dinner and dancing completed the
day’s program.
During the final day’s general ses­
sion, Mr. Klug addressed his au­
dience on the topic of “ The Chal­
lenge of Change.” He said, “ The
banking industry, or as we are com­
ing to call it, the financial services
industry, is changing rapidly. So is
our banking association as it adapts
to serve banks and banking better.
The W B A has undergone restructur­
ing of its organization this past year
“ to more efficiently serve the long­
term needs of the membership in
this rapidly changing financial
world,” as Mr. Klug put it.
During his speech, Mr. Klug gave
his opinion of “ what a successful
bank or banking association of the
1990s will look like.” He said the
winning organization will 1) be a
niche marketer; 2) be flatter, having

few layers of organizational struc­
ture; 3) be quality and service con­
scious; 4) be more responsive; 5) be
much faster at innovation, and
6) use highly trained, flexible people
as the practical means for adding
value to the product or service
Other speakers included Mr.
Schiefelbein, who spoke on “ Accen­
tuate the Positive” ; Shirley Abrahamson, State Supreme Court
Justice; William Isaac, managing
director and CEO, The Secura
Group, and Dr. Herbert Prochnow,
co-founder of the Graduate School of
50-Year Bankers
Seven Wisconsin bankers were
honored for fifty-year careers in
banking during the convention. One
banker, Clarence Frohmader, chair­
man of Farmers and Merchants
Bank in Jefferson, was recognized
for his 70 years as an active banker.
Inductees into the exclusive
Fifty-Year Club for bankers were:
W.H. Allen, M&I National Bank of
Neillsville; Theodore I. Arneson,
chairman, Barneveld State Bank; J.
Rodney Fusch, Farmers & Mer­
chants Bank, Reedsburg; Edward J.
Hart, chairman, The Farmers State
Bank of Waupaca; Robert F.
Newman, president, The Bank of
Juda; W.M. Schleicher, director,
M&I Fox Heights Bank, Green Bay,
and Melva C. Wirth, assistant
cashier, Farmers State Bank, Ridgeland.
President’s Remarks
In his convention speech, Mr.
Schiefelbein said, “ Our Wisconsin

William Isaac, managing dir. & CEO, The
Secura Group, told bankers that he Is “for a
merger of the FDIC and FSLIC funds.” As
former chairman of the FDIC, Mr. Isaac
said, “I believe the FDIC can handle
everything on its plate.”
Northwestern Banker, July, 1988


Wisconsin News

LEFT—During his address, Mr. Klug spoke on the topic “The Challenge of Change,” using visual effects to emphasize important points.
RIGHT— Mr. Schiefelbein, right, accepts his leadership responsibilities from Mr. Klug.

LEFT—Present at the convention banquet were, from left: Ceil and Don Larson, pres., River Falls State; (back) Bob Rasmussen, v.p.,
Norwest Bank Minn., N.A., Mpls., and Mike Bodeen, a.v.p., also with Norwest. RIGHT—Taking part in the 1988 convention were, from left:
Don Kramp, 1st v.p., First Wis., Milw.; St. Super, of Bkg. Richard Galecki, and Harvey Keller, v.p., First Wis., Milw.

LEFT—Visiting during a break in the action were from left: Bill Addington, v.p., Marquette Bk„ Mpls.; Len Hoffman, v.p., First Natl., Bangor,
and Ralph Nelson, v.p., Marquette Bk., Mpls. RIGHT— Banc One Milwaukee hosted a convention-wide party during the convention. Present
were, from left: George Slater, vice chmn., holding co.; Ron Baldwin, pres., host bank, and Richard Behnke, exec, v.p., Bank of Elroy.

banks are in very sound condition
and it’s going to be a good year for
banks, a good year for bankers and a
good year for the W B A .”
He introduced a new approach
that the W BA will be using this year
to encourage banker activity by
making use of the “ trickle down
theory.” “ Under this plan,” Mr.
Schiefelbein said, “ I ’ll be focusing
some attention on wider involve­
ment of bankers from all over the

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

state. To do that, we will be plan­
ning some town meetings in various
parts of the state. The W B A council
members from a particular area will
contact bankers in that area, in­
viting them to come and meet with
me and Bryan Koontz.”
Mr. Schiefelbein said it is unlikely
that he will have time to cover the
entire state this year, but said “ This
town meeting process this year will
give us a start that can be continued

from year to year. ’ ’
In conclusion, Mr. Schiefelbein
said the bankers’ true competition is
not from other banks but from
“ everyone who is in the financial ser­
vices business.” He went on to say, 0
“ These competitors are offering
financial products and services, yet
we are regulated or legislated out of
the business we could be in. We need
to keep fighting to get the oppor- 0
tunity to serve our customers. ’ ’ □

Wisconsin News


Madison Bank to Open
Financial Center

First Wisconsin—Madison plans
to open a Financial Center this fall
on Madison’s far west side, accor® ding to bank President James R.
The center will include a tradi­
tional teller/safe deposit lobby area,
as well as a private banking area. In® itially, a staff of eight financial ser­
vice professionals are being trained
to work at the center, in the areas of
trust and investment management,
financial planning and professional
^ banking.
Mark Warshauer, First Wiscon­
sin vice president, will manage the
Financial Center. He was formerly a
^ vice president and division manager
™ for consumer banking with the Col­
orado National Bank in Denver.
The new facility will occupy the
first level of a four-story building at
^ Old Sauk Road and the Beltline
Highway. It is expected to be open
by December 1.

Elected in Milwaukee




Robert L. Seidell has been elected
president of M&I Data Services,
Inc., a subsidiary of Marshall & IIsley Corporation. Dennis J. Kuester,
president of the corporation, has
also been president of M&I Data
Services, and will remain on the
board of directors.
Mr. Seidell joined M&I Marshall
& Ilsley Bank in 1983. He was
named executive vice president and
a director of M&I Data Services in

First Wis. Announces
Recent Acquisitions

First Wisconsin Corporation an­
nounced on June 7 that, subject to
Federal Reserve Board approval, it
^ will acquire Milwaukee Title In­
surance Company, a Milwaukeebased insurance agency. Terms of
the cash transaction were not dis­
M ilw au kee T it le ’ s p rev iou s
owners, David Silberman and Vance
Werner, will remain with the com­
pany as first vice president and vice
president, respectively. Michael J.
0 Schmitz, executive vice president of
First Wisconsin National Bank, and
Glen J. Milesko, president of the
bank’s Elan Insurance Services sub­
sidiary, will serve as chairman and
0 president of the company, which will
be renamed Elan Title Insurance
Federal Reserve Bank of St. Louis

Services, Inc. It will operate as a
subsidiary of First Wisconsin Corp­
On May 31, First Wisconsin com­
pleted two Minnesota bank acquisi­
tions: Sahara Bancorp, Inc., New
Brighton, which owns the $93
million First State Bank of New
Brighton, and Rose Holding Co.,
Roseville, which owns the $126
million asset Roseville Bank.
In addition to its main office in
New Brighton, the New Brighton
bank operates two branches in
Mounds View and Shoreview, Minn.
The Roseville Bank has three
facilities in Roseville and an office in
Arden Hills. First Wisconsin now
has a total of four banks in Min­
nesota with combined assets of $394

Graduate School of Banking
Announces Restructuring


1st Wis. Chairman Honored

LLOYD O. Johnson, former chief executive
officer of First Wisconsin National Bank of
Eau Claire, is presented with a special
legislative resolution commemorating him
on 46 years of service at a retirement dinner
at the Eau Claire Golf and Country Club.
Pictured is Mr. Johnson with State Repre­
sentative Joe Looby.

In a recent restructuring at the
Graduate School of Banking and its
foundation, the
Prochnow Edu­
cational Founda­
tion, Richard I.
D o o little was
Zuehlke Elected Director of
named executive
Financial Conference
d ir e c t o r
Gus A. Zuehlke, chairman and
chief executive
of Valley Bancorporation, A p­
o ff ic e r .
pleton, has been elected director to
Kleist was pro­
the six-member board of the Inter­
moted to assis­
national Financial Conference at
tant d irectorDOOLITTLE
their recent meeting in Paris. The
organization was formed to provide
a permanent forum for the discus­
sion fo public policy issues concern­
ing international banking and finan­
cial issues of significance to the
economy. Membership is limited to
CEOs of major regional banking or­
ganizations throughout the world.

Bankers’ Bank Offers
Facsimile Service
Bankers’ Bank of Wisconsin has
announced the establishment of its
on-line facsimile service for cash let­
ter cu stom ers, called “ SatisFAXion.” The bank is supporting
the program with propriety fac­
simile machines in each of its
customer banking offices.
Helge S. Christensen, president of
faculty; Gay Alderman to assistant Bankers’ Bank, states, “ This is the
director-students and systems man­ first facsimile network for cash
ager; and Joan Pfister to acting management services in Wisconsin,
assistant director-Prochnow Educa­
tional Foundation. Janet Primus is WISCONSIN NEWS. . .
director of operations.
(Turn to page 43, please)
Northwestern Banker, July, 1988


Elected in Lemmon
Mark A. Gannon has been elected
president and chief executive officer
and a director
of Com m unity
State Bank in
L em m on.
rep la ces D ale
Rogers, who has
served as in ­
terim president
since Lee Buf­
fington’s resig­
nation April 1.
Mr. Rogers will
continue to serve as a director of the
Since October 1987, Mr. Gannon
has served as group credit ad­
ministrator of Community First
North Dakota Bankshares, Inc., and
has been located in Dickinson. Prior
to joining Community First, he
served as assistant vice president of
an affiliate of First Bank System in
Rapid City, and with the Production
Credit Association in Rapid City
and Belle Fourche.

and branch manager of the bank’s
Skokie office.
Howard Robin is the new branch
manager at the Edens Skokie office,
and Judy Novo will serve as assis­
tant branch manager. Mr. Robin has
ten years of banking experience and
was previously employed at North
Community Bank in Chicago. Ms.
Noto has been employed at Edens
Bank since 1985.



Kendon T. Birchard, president of
Community Bank of Edgewater,
Chicago, has been named president
of the Chicago Financial Advisers.
CFA serves as a forum for exchange
of ideas among advertising and mar­
keting professionals in the financial
* * *
Shareholders at the 1988 annual
meeting of Exchange International
Corporation, parent company of The
Exchange National Bank of Chic­
ago, voted May 17 to change the
name of the corporation to Ex­
change Bancorp, Inc., effective im­
The shareholders also approved
the election of Joel I. Salk as a
member of the board of directors. He
is chairman and CEO of River Oaks
Bank & Trust Company.



Affiliated Banc Group, Inc., has
announced the availability of a new

no-fee, variable rate MasterCard in ^
Illin ois from A ffilia te d Banc
Group—Delaware, a service of
Manufacturers Bank—Wilmington.
The current rate on the card is
14.20 A.P.R. Interest levels are ad- f
justed quarterly, based on the rate
paid by U.S. government Treasury
bills. The minimum A.P.R. is 12 per­
cent. There is no grace period and in­
terest is charged from the date of 0
the transaction.
* * *
Pam Major has been promoted to
assistant director of marketing of
First Colonial Bankshares Corpora­
tion. She will retain her title of assis­
tant vice president, a position she
has held since 1985.
Ms. Major joined Colonial Bank,
First Colonial’s flagship bank, in
1970 as a teller, and in 1977 was pro­
moted to administrative assistant of
the business development/customer
service department.
* * *

Cole Taylor Bank/Skokie is now #
offering INVEST, a full-service
brokerage program. The program is
offered nationwide through banks
and savings institutions, and was
launched in 1982 by Investment Ser- #
vices For America Corporation,
Tampa, Fla. More than 200 financial
institutions subscribe.

Added in Rapid City
Beverly Hinders has joined the
Rapid City branch of Norwest Bank
South Dakota as mortgage loan of­
ficer. She was employed by Norwest
from 1978 to 1987, the latter four
years as a mortgage loan officer at
the Rapid City branch. For the last
year she has been working for a
mortgage company in Rapid City.

(Continued from page 20)
First Western Mortgage Corpora­
tion of Illinois in Palatine.
* * *
Edens Bank has announced three
recent appointments.
Judy Lemer Koss has been ap­
pointed assistant vice president of
Edens Bank in Wilmette. She has
been with the bank since 1977, and
was previously the assistant cashier

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

M eet Craig
South Dakota,
dent banking needs, he’s a good person to
know. Craig makes it his business to
understand the special needs of community
banks. And he wants to do business with
© 1988 N orwest Banks

M em ber FDIC

you.Talk to Craig about our
com plete line of specialized correspondent
banking services. W hen it com es to corres­
pondent banking, he’s got you covered.



mmy mm

N orwest Bank South Dakota, N. A .


PICTURED at the installation of 1988-89 MBA officers are, from left: Immed. Past
Pres.—James R. Jorstad, pres., Minnesota Bank, N.A., Caledonia; Pres.—A. William
Sands, chmn., Western Bank, St. Paul; Pres.-Elect—James H. Hearon, III, chmn., National
City Bank, Minneapolis; Vice Pres.— Michael L. Lillehaugen, pres., Community State Bank,
Alexandria; Treas.— Martin V. Chorzempa, pres., Richfield B&T, Richfield, and Exec. V.P. &
CEO—Truman L. Jeffers, Minneapolis.

Sands Named MBA Pres, for 1 9 8 8 -8 9




ELEGATES to the 98th (and
LJ 99th!) annual convention of the
Minnesota Bankers Association in
Duluth last month advanced A.
William Sands, Jr., to be M BA
president, succeeding James R.
Jorstad, president of Minnesota
Bank, N.A., Caledonia. Mr. Sands is
chairman of Western Bank, St. Paul.
His father, A. William Sands, Sr.,
was M BA president in 1946-47.
Succeeding Mr. Sands as M BA
president-elect is James H. Hearon,
III, chairman of National City
Bank, Minneapolis. The new vice
president is Michael L. Lillehaugen,
president of Community State Bank
in Alexandria. Installed as treasurer

District will have a District Director
and no other officers.
Officer titles have been changed
slightly. The officer formerly known
as first vice president now is
president-elect. The office of vice
president and the office of treasurer,
now held by two persons, will be con­
solidated to one position titled vice
president/treasurer, effective at the
1990 convention. The board then
will have 16 members—the three
elected officers and the executive
vice president-CEO, the eight
District Directors, the immediate
past president, and three at-large
Three new board members elected
at la st S e p te m b e r ’ s d is t r ic t
meetings also were installed. They
are: Douglas F. Bultman (District 7),
president, Minnesota Valley Bank,
Redwood Falls; Michael C. Duepner
(District 8), chairman, First Na­
tional Bank, International Falls,
and Robert V. Leiseth (District 5—
formerly District 9), president, Vik­
ing Bank, Hendrum.

was Martin V. Chorzempa, presi­
dent of Richfield Bank & Trust,
100th Anniversary Planned
By-Law Changes
The more than 650 registrants at
Their titles reflect by-law changes
adopted unanimously at the busi­ the convention heard plans disclosed
ness meeting. In those changes, concerning the forthcoming celebra­
membership is specifically limited tion at next year’s convention of the
to commercial banks and trust com­ M B A ’s 100th year. The Centennial
panies. The number of districts has convention will be June 3-5, 1989, at
been reduced from nine to eight. Dis­ the St. Paul Radisson Hotel in St.
trict Three has been restructured to Paul, the city where the M BA was
consist of the counties of Chisago, founded in 1889. A t part of that
Dakota, Ramsey and Washington. celebration, the M BA has commis­
District Four has been restructured sioned Harry Gatton, an experi­
to consist of the counties of Scott, enced banking history author, who
Hennepin, Carver and Anoka. Dis­ is the retired executive director of
trict Five has been eliminated and the North Carolina Bankers Asso­
District Nine has been renumbered ciation, to prepare a 100-year
District Five. District Six has Isanti history of the M BA and the banks
County added to its makeup. Each that gave Minnesota banking its

Duluth’s old train depot featuring restored steam engines was the site of Marquette Bank’s hospitality party. From left, in two pictures by
old engines, are: Larry Kraayenbrink, a.v.p., host bank, and Ann; Lou Geistfeld, CEO, and Don Gollnast, pres., both with Citizens Bank, New
4)i Ulm; Carol and Dick Holmes, v.p., Marquette Bank; Bill Addington, v.p., Marquette, and Carol, with Bonnie and Ken Reno, pres., United
Bank of Bismarck and pres.-elect of North Dakota Bankers Assn.

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


Minnesota News

At noon luncheon, from left: Douglas Lewis, chmn. of the convention and chmn., North
Shore Bank of Commerce, Duluth; Robert L. Clarke, Comptroller of the Currency, Wash.,
D.C.; Art Holst, former NFL official, Peoria, III, and Truman Jeffers, MBA exec. v.p.

early start, continuing up to the pre­
sent day.
Other Honors
A B A State Vice President Roy
Terwilliger, president, Suburban
National Bank, Eden Prairie, an­
nounced that retiring M BA Presi­
dent Jim Jorstad has been ap­
pointed to a two-year term as an
M BA delegate to the A B A Banking
Leadership Conference.
Eight men were recognized for
50-years of service to Minnesota
banking: Arthur J. Andersen, Jr.,
Northwestern State Bank, Ulen;
C.O. Dorweiler, Farmers State
Bank, Hamel; Robert C. Eichten,
Citizens Bank, New Ulm; Gunnar E.
Kronholm, Drovers First American
Bank, South St. Paul; Ralph C.
Schmidt, Farmers & Merchants
State Bank, Appleton; Fred E.
Stein, First National Bank, Cold
Spring; A.C. Sipe, First State Bank,

Ada, and W.W. Studtmann, Courtland State Bank, Courtland.
After the first day’s activities of
golf and Lake Superior fishing,
registrants were guests of the four
major Twin Cities banks for the
First Night Hospitality. First Bank
System entertained guests aboard
the retired Great Lakes ore carrying
ship, The William A. Irvin, moored
permanently at the Duluth port as a
floating museum. Norwest and Mar­
quette Bank Minneapolis shared the
old Duluth Depot building. Norwest’s traditional Masters Mini Golf
party was staged in the old firstfloor waiting room. Marquette hos­
ted its guests on the lower level at
trackside by a number of restored
antique engines at the nearby
Holiday Center, where bankers and
spouses had an opportunity to gam­
ble play money on six horse races
broadcast on video replay tapes on a
large screen TV set.

First Business Session
The first day of business was
kicked off with the traditional
Fellowship Breakfast. Speaker was
Paul Schurke, co-leader of the
Steger International Polar Expedi­
tion that reached the North Pole last
year. His color slides and personal
commentary portrayed vividly the
testing of human endurance and
spirit that was required to complete
such a feat.
Mark W. Olson, immediate past
president of the A B A and now direc­
tor of banking relations for Arthur
Young CPA firm, Washington, D.C.,
was keynote speaker. He traced the
history of banking legislation, in­
cluding the 1913 Federal Reserve
Act and creation of the FDIC in
1934, that set the tone for banking
regulation for the past 70 years. He
said the regulations and laws im­
posed by those acts did not anti­
cipate the type of financial climate
in which banks now must compete.
To counter this, Mr. Olson sup­
ported changing the banking laws as
proposed by Congress so as to repeal
outdated laws and furnish greater
latitude for banks in developing
competitive products.
Comptroller of the Currency
Robert L. Clarke was the noon lun­
cheon speaker. After reviewing the
current health of the industry and
painting the backdrop of the laws
and regulations enacted years ago
under which the industry still must
operate, Mr. Clarke also called for
Congressional action that would free
the industry from what he termed
outdated laws, and spoke up for
broadened powers to empower
banks to compete head-on with

First Bank’s reception was held aboard The William A. Irvin, retired ore transport ship docked permanently at Duluth harbor as a floating
museum. In photo at left, Dick Swanberg, sr. v.p., FBS Capital Markets, and Cleone, visit with Jeanette and Bob Welle, chmn. 1st Natl.,
Bemidji, in lower deck of a hold converted to a “party room.” At right, Mike Pieschel (waving), pres., Farmers & Merchants State, Springfield, was one of many who toured the upper deck and climbed the high steps to the pilot house area. With him are Rollle Nordlund, pres., (D
Town & Country Bank, Maplewood, and Nancy Nordlund.

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

Time was when banking
simply meant
‘deposits inj ‘loans out’
No more.


Now, you need acorrespondent
who knows all the ins and outs.
Not too many years ago interest rates were stable,
loan demand was strong and borrowers provided
a high quality loan portfolio. Overline assistance
was needed. Marquette Bank was there.
Today interest rates fluctuate, loan demand is
soft and making new loans is a very selective
process. Your investment portfolio now must pro­
vide more o f your bank’s income. Marquette Bank
is there.


Correspondent Bankers and Investment
Counselors teamed in a coordinated effort People
w ho’ve proven their skills to our customers for
years. People who care about your business and
take the time to understand and execute your
investment philosophy.
if you’re looking for a bank with the experi­
ence to know all the ins and outs o f successful
banking, look to Marquette.

Correspondent Services Division/lnvestment Department

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

Marquette Bank

Member FDIC

Investment Department 341-6558
MN Wats 800-642-7582
National Wats 800-328-8013


Minnesota News

Pictured at American National of St. Paul’s “Night at the Races” hospitality room were, left to right in these two photos: Jim Russell, v.p., 4)
and Jim Reagan, chmn., of American Natl.; Sue and Bob Hoodecheck, sr. v.p., Winona National & Savings Bank, Winona; Joe Kingman,
pres, of host bank; Lori and Bob Jacobson, v.p., American Natl., and Roger N. Berglund, pres., Dakota Western Bank, Bowman, and pres.,
N. Dak. Bkrs. Assn., with his wife, Susan Berglund.

other financial institutions in the
Carl R. Pohlad, president, Marquete Bank Minneapolis, gave his
“ P e rs p e ctiv e —B anking in the
Future” at the final general session.
(Since the 1945 convention was not
held due to final day activities of
W W II, President Jim Jorstad
declared “ this afternoon will be our
99th convention so next year we will
be able to celebrate our 100th
meeting!” ) Mr. Pohlad pointed out
initially that “ all of corporate
America is undergoing change, not
just banking. There is more em­
phasis on enhancement of share­
holder values. Profits today are com­
ing from knowing one’s costs, how
to price and how to deliver a quality
Mr. Pohlad said banks have only
service to sell “ and we all sell the
same thing, we all look the same, so
the difference is in our personn elhow you train them and what you do
with them.” He stressed the need
for constantly impressing on bank

personnel the need for adhering to
good banking fundamentals and
likened that need to what his general
manager and field manager impress
on his World Champion Minnesota
Twins baseball club every day—fun­
damentals. “ Every football, basket­
ball and baseball team does the
same thing through out every
season,” he emphasized. “ They con­
stantly go back to drilling on fun­
damentals and we in banking can
take a cue from that.”
As an example, he cited lending,
which he termed as “ simple. What is
the purpose of the loan and the
source of repayment. If it is
speculative, how can the loan be
repaid?” Looking ahead he posed
the question, “ What is the future of
banking? I don’t know in your town.
Y ou’re going to be hard pressed to
put your deposits out for good loans.
It requires courage to control over­
head by reducing the work force. In
10 to 20 years we may well see hub
banks in rural centers—county seat
towns. There could be sub-hub of­
fices, which would be the only sur­

vival for small town banks.”
Then, with a change of pace, Mr.
Pohland grinned and said, “ If you
think banking is tough, get into
baseball! We have 46 players and
have to deal with 46 agents! We £
can’t talk to the players! But I
haven’t said anything different.
Your market is different than mine
and you have to assess yourself
what you and your bank can and O
should do in your own community.
In my own case, we visualize re­
gional banking organizations as
competitors. I think the greatest
area in this nation is up and down
the central corridor of states from
Minnesota through the plains and
down through Texas. Texas has pro­
blems but it isn’t going to dry up
and blow away! (He disclosed briefly 4)
his interest in responding to FD IC’s
invitation to look at putting two
large troubled Texas holding com­
panies into a $1.6 billion new
holding company. His firm is pursu- •
ing the idea at this time.) I believe
there is great value to free-standing
banks and how they can serve the

Enjoying Norwest’s traditional Masters Mini Golf extravaganza are, left to right: Bob Rasmussen, v.p.—corresp. bkg., Chuck Sell, comm.(
bkg. repr., and Larry Lange, a.v.p., all with Norwest Bank Minnesota in Minneapolis; Don Hass, pres., First American Bank, Breckenridge;
Bill Brewer, a.v.p., Norwest Technical Services; John Lindeman, pres.,1st Natl., Keewatin, and John Sampson, sr. v.p., Norwest.
Northwestern Banker, July, 1988
Federal Reserve Bank of St. Louis

Minnesota News






LEFT—Carl R. Pohlad, pres., Marquette Bank, Minneapolis, a principal speaker at the convention, was greeted by MBA Pres. James
Jorstad. RIGHT—At Mutual Funds and Security Brokerage workshop, host William Bunker, pres., 1st Natl., Anoka, is shown with session
speaker Mark Stenson, pres., Stenson Management Consulting, Inc., Marshall.

local public.”
Mr. Pohlad literally brought the
house down as he concluded his talk.
He casually and slowly tossed a halfdozen autographed baseballs to peo­
ple seated in front rows, but he
literally “ brought the house down”
when he accidentally hit one light
fixture and a few pieces of broken
decorative thin plastic rods fell to
the floor! After hitting that home
run, Mr. Pohlad excused himself to
fly back to Minneapolis where he
was helping put finishing touches on

getting the contract to hold the 1990
Special Olympics in Minneapolis.
Concluding speaker was Art
Holst, a former active NFL football
referee who now spends his time at
games as part of the official crew
viewing the instant replays in the
press box. On most of them, he dis­
closed, there is no way to definitive­
ly contradict the play called on the
field. His convention talk was laced
with humor gained from many years
as an active field referee and enter­
tained the crowd.

After the final reception and ban­
quet at the Duluth Convention Are­
na, the convention closed on an ex­
citing upbeat with a one-hour show
staged by “ Up With People.” The
talent and vigor of the young people
taking part in this production
proved once agan that music is the
international language as the
convention-goers watched young
folks from many nations across the
world function as one team as they
sang and danced their way through
an intricate program of music.

Added in St. Cloud

town manager. He was previously
associated with Melrose State Bank
in Melrose.
Vicki Glenn has joined the bank
as staff accountant. Geri Moshier, a
Zapp employee for ten years, has
been named personnel coordinator.

Lisa Landowski has been named
marketing communications director.
She has been with the bank for four
years. Marlene Winter, a Zapp
employee for 17 years, has been
named funds management spe­

Several staff changes at Zapp
Bank, St. Cloud, have been an
nounced by John E. Leisen, bank
Steve Domine has joined the bank
as assistant vice president and mid­

M eet
G eorge Evers
em Minnesota,
ent banking needs, he’s a good person to
know. G eorge makes it his business to under­
stand the special needs of community banks.
And he wants to do business with you. Talk

Federal Reserve Bank of St. Louis

© 1988 Norwest Banks

M em ber FDIC

to George about our complete line
of specialized correspondent banking
services. W hen it com es to correspondent
banking, he’s got you covered.


N orwest Bank M innesota, N.A.

Northwestern Banker, July, 1988


First Bank System has an­
nounced staff changes:
Richard W. Schoenke, vice chair­
man, has been named chief ad­
ministrative officer, a new position.
He has held numerous management
positions with FBS since 1979, most
recently managing corporate bank­
ing and special industries banking
for First Bank, N.A.


Mark W. Sheffert, executive vice
president, will manage the First
Bank consumer/small business ac­
tivities p reviou sly headed by
William F. Farley, who has re­
Howard W. Moody, senior vice
president, will become chief informa­
tion officer for FBS and manage
FBS Information Services. He most
recently headed the audit and exam
David F. Bodine has been ap­
pointed vice president and business
development manager for the in­
stitutional trust division of First
Trust. He previously served as vice
president and manager of institu­
tional trust sales at Norwest Bank.
Ann M. Melendez has been pro­
moted to vice president and market
manager for First Bank’s northeast
market, consumer banking. She
previously served as consumer
banking sales manager for the First
Bank St. Paul office. She replaces
Terry Pratt, who has resigned.
Kenneth R. Rossow has joined the
foreign exchange desk of FBS
Capital Markets Group as an assis­
tant vice president and trader. He
has been with FBS for 24 years,
most recently as a trader in the
government securities sales area of
FBS Capital Markets Group.
William S. Reiling has joined the
board of directors of First Asset
Realty Advisors, the real estate
asset management subsidiary of
First Bank, N.A. He is chairman
and CEO of Towle Real Estate Com­
* * *


Jay B. Walters, executive vice
president and head of corporate
banking since February 1987, will
assume responsibility for all com­
mercial banking activities of First

Banker, July, 1988
Federal Reserve Bank of St. Louis

Duncan MacMillan and National
City B ancorporation have an­
nounced they have signed a contract
for Mr. MacMillan to purchase Na­
tional City Bank of Ridgedale, a sub­
sidiary of National City Bancorpora-

tion. Mr. MacMillan is chairman of <9
the board of the American State
Bank of Bloomington. He will
become chairman of the Ridgedale
Donald Jerpbak will remain presi- #
dent of the bank and no other staff
changes are anticipated.
When the sale is final, the bank
will change its name to American
Community Bank of Ridgedale, #
N .A. The acquisition requires
federal approvals and should be
completed this fall. The bank has
assets of $56 million.




Richard E. Korinke has been ap­
pointed vice president o f the
Minneapolis office of New England
Commercial Finance Corp., an a f - #
filiate of Bank of New England. He
had been assistant vice president,
business services division, Mar­
quette Bank Minneapolis.

NABW Salutes Senior Women

THE Metroland Group of the National
Association of Bank Women recently held
their second annual Salute to Senior Finan­
cial Women at the Decathalon Athletic Club f
in Bloomington. This year Joan Paper, right,
customer development officer at Liberty
State Bank, St. Paul, was honored as Metroland’s Woman of the Year. The Lifetime
Achievement Award went to Norma Goodmundson, left, vice president at the First £
National Bank of Wayzata.


Minnesota News










Norwest Bank has announced re­
cent promotions.
Carol Weber
Rohde has been
named president
of the Plymouth
office. She was
vice president of
private banking
at the St. Paul
joined Norwest
in 1973.
Thomas W .
Longlet has been named president
of the Osseo/Maple Grove office. He
succeeds James Heig, who has been
president there since 1973 and will
retire at the end of the year after
more than 39 years with Norwest.
Mr. Longlet previously was presi­
dent of the East St. Paul office.
Dennis L. Meek has been named
president of the Norwest Center of­
fice in downtown Minneapolis. He
was president of the Olson Highway
and Golden Valley offices. He suc­
ceeds John R. Harden, who has been
promoted to a new position as vice
president and director of consumer
banking for the Norwest seven-state
banking region.
Steven D. Rapp has been named
president of the office in Arden
Hills. He was manager of business
banking at the MetroWest office.
Alan V. Johnson has been named
to a new position as vice president
and director of sales development
for Norwest Corporation’s banking
group. He was senior vice president
at Norwest Bank Billings and head
of retail delivery support for
Norwest banks in Montana.
* * *

Marquette Bank Minneapolis has
opened a new branch bank at the
Par k C e n t e r H i g h r i s e near
downtown Minneapolis. Park Center
is a large apartment building for
senior citizens.
While it is a full-service branch of
the bank, the hours will be short:
two hours each Tuesday and Thurs­
day afternoon, and 10:00 to 3:00 on
the third day of each month, when
Social Security checks are distri­
buted. Hours will be extended as de­
mand for services increases.
* * *
Kenneth J. Schweiger, vice presi­
dent of FBS Insurance, has been ac­
cepted by the
board of direc­
Association for
Advanced Life
Underwriting as
member. He is
one o f fewer
than 25 A ALU
members in the
state of MinneK-J- SCHWEIGER

Mr. Schweiger is the first FBS In­
surance employee to earn the
lifetime membership in AALU, and
serves as the company’s manager
for life insurance and employee
* * *
Roloff Insurance Agency has been
acquired by First Insurance—Fair­
mont, to form one agency housed in
the First Bank Building. Duane
Roloff will serve as manager of the
combined agency, which will be a
subsidiary of the First Bank Sys­
Carl Smith, manager of the Fair­
mont agency, has experienced
health problems, but will stay on as
an account executive with the new
* * *
Glenn R. Wilson, Jr. has been
named president and COO of KnutTWIN CITIES NEWS. . .
(Turn to page 40, please)

quality and
value with our
G reg L arson

Benjamin S. Jaffray has been
0 elected chairman of the board of
Resource Bank
& Trust, Min­
neapolis. Before
Re0 source, Mr. Jaf­
fray was a dir­
ector and senior
vice president,
finance, at Cargill, In co rp o r­
Lyman Wake­
field will assume the position of vice
chairman; Richard E. Gilbert will re0 main CEO, and E. Thomas Welch
will remain president.
Federal Reserve Bank of St. Louis

Banking Officer


Northwestern Banker, July, 1988


REPRESENTING the 1988-89 leadership of the NDBA are, in rear: Immed. Past Pres.—John
W. Pierson, chmn., Norwest Bank N.A., Bismarck; Exec. Dir.— Harry Argue, Bismarck; Vice
Pres./Treas.—Gary Paulson, pres., First State, Park River; (in front) Pres.-Elect— Kenneth
Reno, pres., United Bank, Bismarck, and Pres.— Roger Berglund, pres., Dakota Western,

Berglund Elected to NDBA Presidency
Associate Publisher
OGER N. Berglund, president
of Dakota Western Bank in
Bowman, was elected to the position
of president at the 1988 North
Dakota Bankers Association annual
convention, held last month in
Grand Forks. Nearly 300 bankers
and spouses were in attendance at
the gathering. This year’s conven­
tion theme was “ The Extra Mile—A
Commitment to Soundness and Ser­
vice in Banking.’’
The two-day convention, chaired
by Gary Lloyd, senior vice presi­


dent, First National Bank, Grand
Forks, featured an in-depth business
program with a variety of activities,
including a river boat ride on the
Dakota Queen along the Red River.
Officers Elected
Joining Mr. Berglund in leader­
ship of the association in 1988-89
will be: President-Elect—Kenneth
Reno, president, United Bank of
Bismarck; Vice President/Treasurer—Gary Paulson, president,
First State Bank, Park River; Im­
mediate Past President—John W.
Pierson, chairman, Norwest Bank
N.A., Bismarck, and Executive

Director—Harry Argue, Bismarck.
In his convention address, Mr.
Pierson acknowledged that the year
had its share of trying moments,
especially since “ every trade as­
sociation deals to a large degree
with intangibles.’ ’ He went on to
say, “ Measuring the progress and
effectiveness of an association’s ad­
vocacy role in government relations,
the real value of its educational programs, and determining the percep­
tions of its public affairs initiatives
is an inexact science at best.’ ’
Mr. Pierson said the N DBA has
made significant progress this year
in assuring that banking continues
as the “ preeminent provider of
financial services to North Dakota
citizens.’ ’ He also commented, “ The
association has not backed away
from the difficult and challenging
issues that have confronted North
Dakota banking in the past year;
nevertheless, we must stay the
course to achieve our objectives.’’
General Session
The opening general session
began with encouraging remarks
from Dave Okerlund, president of
Okerlund & Company, Cortland,
Neb. He was the featured speaker
during the Convention Prayer Break­
fast. Following Mr. Okerlund was a
special welcome frm Grand Forks
Mayor Mike Polovitz.
First to address the general con­
vention was C.C. Hope, director of
the FDIC, who gave “ A View from
Washington.’ ’ Named to his position by the President in 1986, Mr.
Hope serves on a three-member
board for a total of six years. His
biggest challenge since joining the
FDIC? Interstate banking. “ In
1980, there was one state with it;
now, we have 45 states with some











LEFT—Participating in the first general session were, from left: Grand Forks Mayor Mike Polovitz; Mr. Pierson, and Conv. Chmn. Gary
Uoyd, sr. v.p., First Natl., Grand Forks. RIGHT— Enjoying the opening night’s reception were, from left: C.C. Hope, dir., FDIC and his wife 0
Mae, with Harry and Linda Argue, Bismarck.

Banker, July, 1988
Federal Reserve Bank of St. Louis

North Dakota News


LEFT—Visiting at the Investment Centers of America exhibit were, from left: Larry Fust, repr., with Kathleen, and NDBA Past Pres.
(1984-85) Les Nesvig, pres., First State LaMoure. RIGHT—Taking in this year’s convention were, from left: Dick Holmes, a.v.p., Marquette
Bank, Mpls. and his wife Carol, with Rose and Bert Gerhart, pres., Dakota B&T, Fargo.

form of interstate banking,” he told
his audience.
The biggest problem facing the
FDIC is bank failures. Mr. Hope
said that in 1987, there were 184
failures and 19 assists. “ Fifty per­
cent of those bank failures came
® from the states of Texas, Oklahoma
and Louisiana,” he said, and in his
opinion, 1988 doesn’t look too pro­
mising for Texas banks once again.
Nevertheless, Mr. Hope added,
® “ There is a movement toward better
times, especially in the Midwest.”
Mr. Hope applauded North Dak­
ota bankers for the excellent job
_ they are doing, and reported that
® ROA in 1987 for North Dakota
banks was .66, well above the na­
tional average of .12. Mr. Hope also
told bankers that their capital base

was strong and said, “ This speaks
well of North Dakota banks.”
Regarding the possible merger of
the FDIC and the FSLIC, Mr. Hope
voiced the FD IC’s opposition to the
merger of the funds, “ the FSLIC is
some $13 billion in the red (and
growing every day), and the FDIC is
not strong enough to combat these
problems as well as our own.
Bankers are the stockholders of the
FDIC and must maintain a strong
position,” he concluded.
Other convention speakers in­
cluded John R. “ Jack” Powers,
district administrator, Office of the
Com ptroller o f the Currency,
Washington, D.C.; David C. Webb,
chairman, Space Studies, UND
Aerospace Center, Grand Forks;
former A B A President Mark Olson,

partner/director, Arthur Young &
Co., Washington, D.C., and NBC
N ew s C orresp on d en t D ou g las
There were plenty of convention
activities this year, includng a “ fun
run,” a tour of the UNC Aerospace
Center, men’s and ladies’ golf tour­
naments, and a convention exhibit
hall with the latest in products and
services. Banquet entertainment
this year was provided by the Castle
The 1989 Annual Convention will
be held in Bismarck, June 12-13. A
tri-state convention will be held in
Rapid City in 1990 and will include
North Dakota, South Dakota and

Convention Update
At the time this issue was
going to press, the Montana
Bankers Association was hold­
ing its Annual Convention at
the Outlaw Inn in Kalispell.
Lynn Grobel, president of
the 1st National Bank of Glasco, was scheduled to advance
as president of the association,
succeeding James Bennett,
president, First Citizens Bank,
Federal Reserve Bank of St. Louis

M eet Ken
Norwest’s Correspondent Banker for
North Dakota. W hen you have correspon­
dent banking needs, he’s a good person to
know. Ken makes it his business to
understand the special needs of community
banks. And he wants to do business with
© 1988 Norwest Banks

M em ber FDIC

you.Talk to Ken about our
com plete line of specialized correspondent
banking services. W hen it com es to corres­
pondent banking, he’s got you covered.

N orwest Bank North Dakota, N.A.

Northwestern Banker, July, 1988


LEFT—Elected at convention to serve as officers of the Colorado Bankers Association in 1988-89 are, from left: Pres.-Elect— Robert •
“Cody” Pearson, chmn. & c.e.o., First Natl., Hugo; Chmn—Jon P. Coates, chmn., Century Bank, Denver; Pres.— Dave Scruby, Sr., chmn. &
c.e.o., Evergreen Natl., and Exec. Vice Pres.— Don Childears, Denver. RIGHT—Accepting his CBA presidential pin is Mr. Scruby. Mr.
Coates is doing the honors.

Dave Scruby Elected to Head CBA
Associate Publisher
ii Q

ETTER Shape in ’88” was
the theme of this year’s Colo­
rado Bankers Association Annual
Convention. The convention was
held at the Broadmoor Hotel in
Colorado Springs and featured ex­
cellent general sessions, an after­
noon of concurrent workshops,
spouse activities and numerous
sporting tournaments.
Officers Elected
One of the many convention high­
lights was the election of officers for
1988-89. Officers elected were:
Chairman—Jon P. Coates, chair­
man, Century Bank of Denver; Pres­
ident—Dave Scruby, Sr., chairman
and CEO, Evergreen National Bank;
President-Elect—Robert “ C ody”
Pearson, chairman and CEO, First
National Bank, Hugo, and Exec­
utive Vice President—Don A. Chil­
dears, Denver. The position of im­
mediate past chairman is held by
A.J. Anderson, president, Kiowa
State Bank.
Mr. Coates presided at the first
general session and w elcom ed
guests to the 1988 Convention. He
said, “ This is a time when things are
lo o k in g up for the ban k in g
industry.” Mr. Coates applauded
the accomplishments of the associa­
tion in 1987 as bills were passed
regarding interstate banking as well
as central filing. On the federal level,
Mr. Coates commended Colorado
bankers for their “ grass roots in
Northwestern Banker, July, 1988
Federal Reserve Bank of St. Louis

volvement in stopping the mora­
Mr. Coates expressed his desire to
see Colorado bankers with one state
banking association. “ We were once
divided over interstate banking and
branch banking,” he said. “ Now we
need to work on branch banking
which still needs to be resolved. We
need a consensus among the two
state associations.”
Continuing along the same lines,
Mr. Scruby, newly elected president
of the association, outlined four
areas of importance to the associa­
tion in the coming year: 1) the neces­
sity to obtain one banking associa­
tion for the state; 2) the need for con­
tinued support from all CBA

ADDRESSING the general session during
the convention was ABA President Charles
Pistor, Northpark Natl., Dallas, Tex. Mr.
Pistor said, “This is a critical time in bank­

members; 3) preparation for the
branch banking bill, and 4) the im­
portance of getting Mountain Banks
Insurance Company up and running.
Echoing these thoughts was Mr.
Childears, who said, “ 1987 was a full
plate year, and 1989 will offer
challenges in branch banking, credit
union taxation, insurance and real
estate powers, governmental issues
and the fate of the FDIC.” Mr. Chil­
dears told the members, “ The asso­
ciation is trying to be action orien­
ted and work through these rough
days in our economy.”
General Session
Also presented during the first
general session was an A B A Update
from President Charles Pistor,
Northpark National Bank, Dallas,
Tex. Mr. Pistor’s address focused on
legislative issues facing the in­
dustry, including the repeal of the
Glass-Steagall Act. He said the
financial industry finds itself in “ a
critical time for bankers to under­
stand the issues facing the indus­
try.” Mr. Pistor called the repeal of
Glass-Steagall only a “ first step vietory, as some corrections are needed.
We want progress on this bill but
not at the expense of insurance and
real estate.”
Concluding the first general session was an informative address by
Dennis McCuistion, a banking con­
sultant from Irving, Tex. Mr. M c­
Cuistion said that there are two con­
ditions that lead to bank failures:
poor management and a depressed
economy. As a way to combat these
problems, Mr. McCuistion chal­
lenged bankers to create a vision of
what achievement looks like. He
outlined four areas of successful










Colorado News



LEFT—Taking part in the United Missouri Bank, Kansas City Dinner were, from left: Robert A. Krane, president & c.e.o., Central Bancorporation, Inc., Denver, and his wife, Marcia; Richard Muir, v.p., host bank, with Patsy and Don Hoffman, chmn., Central Bancorporation,
Inc., Denver. RIGHT—Also participating were, from left: Gary Brooks, pres., Bank of Burlington; James VanDittie, v.p., Bank of Burlington;
Tennyson Grebenar, atty., Denver; Leo VanDittie, chmn., Bank of Burlington, and Mark Bailey, a.v.p., host bank.

LEFT—Visiting during the convention were, from left: Jerry Swords, pres., Swords Associates, Kansas City; Mads Anderson, pres., Central
Bank, N. Denver; Lonnie Harris, inv. off., United Missouri Bank, K.C., and Homer Lyle, pres., Peoples B&T, Aurora, Colo. RIGHT—Welcom­
ing guests to 41st Annual Central Bank of Denver Breakfast were, from left: Don Hoffman, chmn.; Diane Sweeney, a.v.p., and Phil Randeli,
v.p. & mgr., financial inst. dept.

W leadership: vision, persistence, com­
m u n ica tion and o rg a n iza tion .
“ Educate ourselves and educate our
people, the leaders of tomorrow,” he
During the second day’s general
session, a panel discussion was held
featuring Marvin Buckles, Western
Capital Investment Corporation;

United Banks Board Adopts
“Opt-Out” Resolution
On June 8, United Banks of Col­
orado, Inc., filed an “ opt-out” reso­
lution, as allowed by the industrial
bank act, with the Secretary of State
and the Colorado Division of Bank41 ing. The resolution lets United
Banks exempt itself from acquisi­
tion by an out-of-state banking com­
pany that is one of the successful
bidders under the stipulations of the
• industrial bank act.
The resolution expires January 1,

C.C. Hope, FDIC; James Rizzuto,
State Senator; Thomas Schilling,
R ocky Mountain News, and George
Turner, Bellco Credit Union. The
“ Donahue” format encouraged au­
dience participation and lively dia­
logue regarding banking issues.
In keeping with the theme of this
year’s convention, bankers and

spouses were encouraged to be in
“ better shape” via golf and tennis
tournaments as well as concurrent
fitness sessions. These activities
helped counteract the effects of the
41st Annual Central Bank Break­
fast, convention luncheon and the
all-convention reception and ban­

1991, when Colorado will open its
doors to nationwide interstate bank­

presidents. Mr. Armstrong is a com­
mercial banker, Mr. Artis is an ex­
ecutive banker and Mr. Hudspeth
works in investment banking.
Charles L. Cole, Michael G. Jezier
and Scott Palmer were promoted to
commercial banking officers. Joel P.
Johnson, who works in the money
market and municipal securities
department, was named investment
officer. Martha L. Labadie, who
manages the cash items department,
and Susan A. Wood, manager of
loan and deposit accounting, were
promoted to operations officers.

Federal Reserve Bank of St. Louis

United Bank Announces
Richard A. Kirk, chairman and
CEO of United Bank of Denver, has
announced the promotion of nine
bank employees.
Peter F.C. Armstrong, Jr., Tyrone
A. Artis and Mark S. Hudspeth
w ere n am ed a s s is t a n t v ic e

Northwestern Banker, July, 1988

T he Product That
M ost Correspondent
Banks O ffer Is
O bvious.

T ta Level O f
Com mitm ent Is
A Lit h e H arder
To Picture.
Yet it’s your most important consideration
in establishing a correspondent banking
Recognizing this simple fact, NBC has
made a commitment to the correspondent
banking business that can’t be topped. That
means offering the individual services and
professional capabilities you expect.
It also means providing the kind of
innovative thinking and willingness to dig in
and find solutions that you have a right to
Now, more than ever, correspondent
banking holds a high priority at National Bank
of Commerce. And so do you.


National Bank of Commerce
a iilF iR S T C o m m e
Federal Reserve Bank of St. Louis

r ce


NBC Center / 13th & O / Lincoln, NE 68508
Phone (402) 472-4115 / MEMBER FD1C

bank, will have over $1.5 billion in
assets, making it the state’s second
largest bank holding company.

Past President—Terry Novak,
First National Bank of Omaha,
David City branch.

Named in Hastings
Elected in Bellevue


W illard Jackman Dies

Willard Jackman, former presi­
dent of the Nebraska Bankers
Association, suffered a fatal heart
0 attack on May 28 at the age of 73.
Mr. Jackman was born in 1915 in
Grant. He was graduated from
Nebraska Wesleyan University in
1936. He returned to Grant and
0 worked for his father, Ernest
Jackman, at Farmers National Bank
until 1938, when the family pur­
chased the Madrid Bank. He man­
aged that bank until 1942, at which
0 time he was inducted into the U.S.
Army. After being honorably dis­
charged in 1945, he returned to
Farmers National in Grant.
Mr. Jackman married Kathryn
• Andrew of Holyoke, Colo., with
whom he had two daughters and one
Following the death of his father
in 1950, Mr. Jackman became presi• dent of the Grant bank. He later pur­
chased Commercial State Bank at
Elsie, of which he also served as
Mr. Jackson was president of the
• NBA in 1974. He was chairman of
the Grant Housing Authority when
it was begun, a member of Grant ci­
ty council, and also the mayor of
Grant. He was also active in
® numerous church and civic organi­





First Natl, of Neb. Plans to
Purchase North Platte Bank
First National of Nebraska,
parent corporation of First National
Bank of Omaha, has announced it
has signed an agreement to pur­
chase First National Bank of North
Platte and its holding company,
FIRN-CO., Inc.
First National Bank and Trust
Company of North Platte will con­
tinue to operate as an independent
bank with no staff changes anti­
First National of Nebraska, with
the addition of the North Platte
Federal Reserve Bank of St. Louis

First United Bank of Bellevue has
announce that Darrell A. Legband
has been elected
p resid en t and
CEO. He suc­
ceeds John R.
Young, who re­
signed recently.
M r. L e g b a n d
has been serving
in various sen­
ior management
position s over
th e la st ten
years, and most recently was vice
president and manager of the com­
mercial loan division at Delay First
National Bank and Trust in Norfolk.

City National Bank, Hastings,
has named two new members to its
board of directors. They are Larry
B utler, secreta ry -trea su re r o f
Livingston-Butler-V olland Funeral
Home, and Gary Duncan, president
and chief executive officer of
Hastings Pork.

To Buy or Sell

NBA to Hold Conference on
Check Clearing Law
A Funds Availability and Check
Hold Conference will be offered by
the Nebraska Bankers Association
at three locations in July. The
seminar will examine new regula­
tions concerning check clearing.
The agenda begins with registration/continental breakfast at 8:30
a.m. and adjourns at 3:30 p.m. Dates
and locations are: 26th—North
Platte Holiday Inn, 27th—Kearney
Holiday Inn,, 28th—Lincoln Hilton.
Before July 19, fee is $95. After
that date it is $105. Attendees will
receive a free reference manual ($95
value) as well. For more information,
contact the NBA.

We specialize in tax-free financing and
investm ent service for N ebraska
banks. Please call us for bond offer­
ings, bids and appraisals.


5 .0 0 %

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9 .0 0 '

5 .0 %

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8 .1 6

BAI Chapter Elects Officers

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New officers of the East Central
Nebraska Bank Administrative In­
stitute are as follows:
President—Daryl Wilton, First
National Bank of Schuyler.
Vice President, Education—Bob
Frerichs, First National Bank of
Vice President, Finance—Ger­
aldine Ditter, Bank of Lindsay.
V ice President, Com m unica­
tions—Diane Hofpar, First National
Bank of Omaha, David City branch.
Vice President, Membership—
Gary Sutton, First National Bank of

7 .5

1 0 .8 5

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1 1 .9 5

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

Northwestern Banker, July, 1988

& Trust Co., has been honored by 0
the Nebraska Mortgage Association
as “ Mortgage Lender of the Year.”
Mr. Burtscher has been an active
member of the organization since
1973, having served as president 0
and currently as a member of the
board of directors.
Mr. Burscher has been president
of Douglas County Bank & Trust
since April 1, and previously was ex- 0
ecutive vice president of Vistar
Bank, Lincoln.



Jeff Bakewell has been promoted
to vice president and head of the
loan department at River City Na­
tional Bank in Omaha. He has been
with the bank since 1985.
N orw est Bank Nebraska at
Omaha has promoted four officers.
William J. Hoelting was named
vice president in the private banking
department at the Regency location.
He joined Norwest in 1980 and has
held several positions, most recently
assistant vice president.
Terry J. Jaros has also been
named a vice president, in the
business banking department at the
Millard Avenue office. He joined the
then Bank of Millard in 1978 and
had been serving as assistant vice
Debra G. Ratner has been named
manager of the automated services
department at the 1919 Douglas of­
fice. She joined that bank in 1976.
Michael J. Schulte was promoted to



business banking officer at the 24th
and L Street bank. He joined Nor­
west last year as a credit review
* * *

FSLIC Task Force Appointed

Nebraska Bankers Association
President Harley Bergmeyer has ap­
pointed a special task force to study
the FSLIC funding problem and
Douglas County Bank & Trust develop possible solutions. Chair­
Co. has announced the promotion of man of the committee will be Jim
Lawrence Ziska, Jr. to executive Nissen, NBA president-elect. Other
vice president of Great Western Sec­ members include Dennis O ’Neal, Orurities, the bank’s holding company. rin Wilson, Alice Dittman, Bill Cook,
Mr. Ziska has been with the bank Jr., Jerry Roe, Tom Henning, Har­
since 1974, and has served as vice ley Bergmeyer and Tom Olson. The
president, senior vice president, task force met for the first time on
trust officer and executive vice June 20.
president, his previous position.
In addition, Douglas County
Bank & Trust Co. has announced the
appointment of David Henricksen School of Banking to Be Held •
as information officer. He joined the
The K BA/N BA Schools of Bank­
bank from First National Bank & ing will offer its Intermediate School
Trust Co. in Kearney, where he had of Banking, Session 1, on September
worked since 1973, and was serving 18-23 at the Holiday Inn in Manhat- §
as vice president and a member of tan, Kan. 36 hours of classroom in­
the management committee.
struction during the course will
* * *
qualify graduates for 300-level

Donald D. Adams, vice president
of government relations for FirsTier
Financial, Inc., retired from the cor­
poration on July 1. He has an­
nounced plans to open his own con­
sulting business as a specialist in
governmental relations. He will
continue to work with FirsTier on a
contractual basis as a consultant for
governmental affairs.
* * *

graduate banking schools. The se­
cond session of the course will be 0
held June 18-23, 1989.
Enrollment fee, which includes in­
struction, materials, lodging, and
most meals, is as follows: $925 for
single housing, $795 for double 0
housing and $750 for no housing.
For more information, contact Bren­
da Schimenti or RoJean Clifton at
(402) 421-1107.

Promoted in Osceola


Northwestern Banker, July, 19B8
Federal Reserve Bank of St. Louis

Art N. Burtscher, newly elected
president of Douglas County Bank

At the First National Bank of
Osceola, Rick Chochon has been pro- 0
moted to assistant vice president.


A p o w e r f u l , m o d e r n , t o p -o f - t h e -li n e e le c t r o n ic da ta p r o c e s s in g s y s te m is not b e y o n d y o u r r e a c h ,
r e g a rd le s s o f th e s ize o f y o u r in s titu tio n .
W e h av e o n e fo r y o u . T w o , in fa ct.
F ir s t N a tio n a l B a n k o f O m a h a ’ s I n fo r m a tio n P r o c e s s in g S y s te m is as v e rs a tile , e ffic ie n t a n d p o w e r f u l
as y o u ’ ll f i n d a n y w h e r e . A n d it ’ s a v a ila b le to y o u . D o z e n s o f b a n k s are a lre a d y lin k e d w ith u s e le c t r o n ic a lly
to r e c e iv e th e fu ll c o m p e t it iv e b e n e f it s o f th is s ta t e -o f-t h e -a r t s e r v ic e .
O u r I n -H o u s e P r o c e s s in g S y s t e m , e s ta b lis h e d in y o u r in s t itu tio n , is f u lly c o n t r o lle d b y y o u r m a n a g e m e n t
a n d fu n c t io n s o n y o u r t im e t a b le . S t a ff tim e is c o n s e r v e d , o v e r h e a d r e d u c e d , p r o c e s s in g c o s t s s ta b iliz e d
a n d s e r v ic e s im p r o v e d . I t ’ s d e s ig n e d fo r o p t im u m e f f ic i e n c y in f in a n c ia l in s titu tio n s o f v a r y in g s ize s a n d
r e q u ir e m e n ts .
O u r E D P s e r v ic e s are y o u r m o s t a ffo r d a b le a n d v a lu a b le o p t io n . G iv e u s a c a ll; w e n e e d t o ta lk .
M ic h a e l J. D o o l e y • N a tio n a l M a r k e t in g D ir e c t o r • F ir s t N a tio n a l B a n k o f O m a h a
O n e F ir s t N a tio n a l C e n t e r • O m a h a , N e b r a s k a 68102 • ( 4 0 2 ) 3 4 1 -0 5 0 0


firs! nalional bank
of omaha

Federal Reserve Bank of St. Louis

one first national center
omaha, nebraska 68102
Northwestern Banker, July, 1988



The board of directors of Vistar
Bank elected the following officers
at their regular board meeting on
April 20:
Charles D. Meyer was elected vice
president and cashier. He is head of
the bank administration division
with responsibilities for branch ad­
ministration, retail sales account
origination, and microcomputer sup­
port. Prior to joining Vistar in 1986,
he was senior vice president and
cashier with First National at Fre­
mont. Mr. Meyer has been in bank­
ing for ten years.
Susan L. Twihaus was elected
assistant vice president and con­
troller. She is manager of the ac­
counting and control department
and has 13 years of banking ex­
perience. She has been with Vistar
since 1976.
Michele Schmit was elected
human resources officer. She is
manager of the human resource
department and has been with
Vistar for six years.
* * *
The Havelock Bank has opened a
new downtown Lincoln banking faci­
lity at the corner of 14th and N
Streets. The new facility, designed
by Michael S. Bott and Associates
and constructed by the Walt Broer
Construction Company, has ad­
ditional drive-up facilities with a
new entry driveway, and a 24 hour
teller machine located inside the
14th Street entrance. The facility is
managed by Executive Vice Presi­
dent Charles Heinke.
The bank has also undertaken ex­
tensive remodeling of its two other
facilities. The bank’s central com­
puter department, formerly housed
at the old downtown bank, has been
moved to the 70th and Adams loca­

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

tion, where additional offices and a
conference room have been added.
The main branch bank at 6145
Havelock Avenue has also been re­
modeled, with a larger customer ser­
vice area and rearranged offices.
To publicize the changes, the
bank held a Grand Opening Week
the week of June 10. In connection
with the event, the bank gave away
trips to Mexico, Hawaii, and the
Kickoff Classic Football Game bet­
ween Nebraska and Texas A & M.
* * *
Vistar Bank recently donated a
new pony to the Folsom Children’s
Zoo in Lincoln. The purchase of the
pony was announced last Christmas,
when the bank decided in lieu of sen­
ding Christmas cards, it would
direct funds toward a worthwhile
project in Lincoln.
Vistar Bank also donated 200 free
pony ride tickets to the Y-Pal Big
Brother Big Sister Program and the
Foster Care Resource Development
Unit from the Lincoln-Lancaster
District Office of the Nebraska
Department of Social Service.

elected several new officers.
Elected chairman of the board
and chief executive officer is Victor
L. Michel. He has been in banking
for 45 years, the last 13 at Hen­
Steven L. Michel has been elected
president and chief operating officer
of the bank. He has been at Hender­
son for the past 13 years.
Lelan R. Thieszen, a bank em- •
ployee for over 12 years, has been
named executive vice president and
Robert L. Dane was elected vice
president and agricultural loan of- #
ficer. He has been with the bank for
five years.

(Continued from page 31)
son M ortgage
Corporation. He
previously served
as president and
CEO of FirsTier
Mortgage Com­
pany in Omaha.
Mr. Wilson is
also the former
president of the
Government Na­
tional Mortgage
Association and was owner and
president of Mid-Continent Enter­
prises, Inc.

Elected in W illm ar
First Bank Willmar has elected
Harold G. Conradi to their advisory •
board of directors. He is president of
Willmar Community College.

Elected in Brainerd
Elected in Henderson
The board of directors of the Hen­
derson State Bank, Henderson, has



Steven Olson has assumed the
position of account officer in the
commercial loan
departm ent of
F irs t
B an k
Brainerd as of
M ay
1. M r.
Olson, who has
eight years of ex­
perience in the
financial indus­
try, most recent­
ly worked for
W e s tin g h o u s e
Credit Corporation in Minneapolis
and Pittsburgh.



OFFICERS of Wyoming Bankers Assn, for 1988-89, left to right: Immed. Past
Pres.—William H. Ruegamer, pres., First Interstate Bank, Sheridan; Pres.—Auburn W.
Dowdy, chmn., Wyoming Natl., Cheyenne; 1st V.P.—Jerry W. Rankin, pres., First Wyoming
Bank—Jackson Hole; 2nd V.P.— Clifford E. Kirk, exec. v.p. & CEO, 1st Natl., Gillette, and
Exec. V.P.—Gretchen Tea, Casper.

Auburn Dowdy Named Wyoming Pres.









i l l Y O M I N G bankers assembled
at Jackson Lake Lodge, Mor­
an, by the majestic Teton Moun­
tains, for their 80th annual conven­
tion. Wyoming Governor Mike Sullivan and other convention speakers
found the beautiful setting and the
ideal weather to be the right climate
in which to proclaim that W yo­
ming’s sagging economy has finally
stabilized and is on the ascendancy
Named president of the Wyoming
Bankers Association during this
1988-89 year of recovery is Auburn
W. Dowdy, chairman of Wyoming
National Bank of Cheyenne. He suc­
ceeds William H. Ruegamer, presi­
dent of First Interstate Bank of
Sheridan. (Just before the convention it was announced that Mr. Rue­
gamer will be changing jobs within
the Commerce Bancshares holding
company that owns the Sheridan
bank. See separate news story.)
Moving up to become W B A first
vice president is Jerry W. Rankin,
president of First Wyoming Bank—
Jackson Hole, Jackson. Succeeding
him as second vice president is Clifford E. Kirk, executive vice presi­
dent and CEO of First National
Bank in Gillette.
Continuing as executive vice
president and head of the W B A staff
in Casper is Gretchen Tea. Her ad­
m inistrative assistant is Judy
Federal Reserve Bank of St. Louis

to “ upgrade its cash management
practices to enhance our revenue
stream without having a tax in­
crease. We are looking at all our
state investments to achieve the
same thing.”
He concluded by saying “ I believe
w e’re getting healthier. W e’re
recovering and will be back up by
the final bell. There is no magic or
quick recovery on the horizon. It will
just take hard work and lots of
fight—and we can achieve more if we
do it together. It occured to me in
my dialogue with bankers around
the state that we just haven’t talked
about these problems. As Governor,
I tell you we need to talk together.”
Governor Sullivan urged the W BA
to establish a means for initiating
such dialogue.
L a te r , in c o m in g p r e s id e n t
Auburn Dowdy and retiring presi­
dent Bill Ruegamer assured the
Governor the invitation will be ac­
cepted. It was not specified this
would be accomplished thorough a
task force, or other types of
Secretary of State Kathy Karpan,
who initially opposed the Central
Filing Bill that had been proposed,
said she based her opposition on the
fact that it had not received
thorough enough review, and her
feeling that the ticket price of more
than $450,000 was too high. After
more study, and extensive visits
with bankers, she now supports Cen­
tral Filing and will back the bill to
be offered in the next general ses­
sion. Its initial cost would be
$138,000, as opposed to the earlier
$450,000 cost, and the $109,000 an­
nual operating expense can be total­
ly subsized with fees, she said.

Four bankers were elected to
serve two-year terms on the W BA
board of directors. They are;
• Ron Davis, president, Rawlins
National Bank, Rawlins.
• G ary W ickam , p resid en t,
Wyoming National Bank, Cheyenne.
• D ick S ca rle tt, p re sid e n t,
Jackson State Bank, Jackson.
• Scott McBride, vice president,
First National Bank, Buffalo.
Hale Kreycik, state vice president
for A B A and president of Converse
County Bank in Douglas, announced
that W yom ing’s new delegate to the
A B A Banking Leadership Council
will be Mike Daly, president of the
First State Bank in Wheatland.
Gov. Sullivan, who is a former
bank director, said his job is identi­
fied closely with the work of W yo­
ming bankers. He cited the W yo­
ming Farm Loan Board as an exam­
ple, stating it is W yoming’s largest
ag lender with approximately $225
million in loans. A block grant pro­
gram has loaned $15 million to 30
businesses—“ so I worry as you
bankers do.” Other state entities
relating to banks or lending which
Gov. Sullivan mentioned were the
program to place state deposits in
Wyoming banks and the Wyoming
Industrial Development Board.
The Governor said the branch
banking bill did not pass in the last
session “ but I hope it will in the New WBA Pres. Auburn Dowdy (left)
presents a plaque to Ken Mcllhenny in
next one so as to bring broader recognition of 21 years of service to the
availability of credit statewide.” He Wyoming state examiners office by Mr.
said he has advised the state board Mcllhenny, who is retiring.
Northwestern Banker, July, 1988


Wyoming News

PICTURED at First Interstate reception in these two photos are, left to right: Juanita and N.P. Van Maren, vice chmn., Hilltop Natl., Casper; a
Nancy and Lynn Duncan, sr. v.p., First Interstate, Casper; Bob and Elsie Nelson, chmn., 1st Natl., Powell; Henry Czerwinski, 1st v.p..
Federal Reserve, Kansas City; Enis Alldredge, Jr., v.p. & Denver br. mgr., Fed. of K.C.; Dick Scarlett, pres., Jackson State, Jackson, and
Chuck Pedersen, pres. & CEO, First Interstate, Casper.

A B A President Tom Rideout,
vice chairman of First Union Bank
in Charlotte, N.C., reviewed current
legislation before Congreess to ex­
pand banking powers. To achieve
this, he said, “ W e’ve been working
hard to unify this industry by
holding a series of meetings the past
18 months with elected and staff of­
ficers of six associations within our
industry. Each of these meetings
has been concluded with a consensus
statement on a specific topic dis­
cussed.” He called for all 1.6 million
officers, employees and directors of
banks and spouses to join in A B A ’s
letter campaign to congressmen to
approve the expanded powers bill.
Mr. Rideout said an A B A Task
Force will have its first meeting
soon to put together proposals on
what should be done with the
FSLIC, and “ prepare positive pro­
posals on where we want deposit in­
surance to be in the years ahead.”
Phillip White, Ph.D., associate
professor of marketing at the
University of Colorado, Boulder,

presented his talk on “ Three Steps
to Improve Retail Profits—Or, Mak­
ing More Money in a Tougher En­
John Harlin, president of the
Bank of Gainesville in Missouri’s
southern Ozarks, entertained the
registrants following the noon lun­
cheon with his humorous banking
stories and impersonations.
Henry Czerwinski, first vice presi­
dent of the Federal Reserve Bank of
Kansas City, talked about “ The
Wyoming Economy—Building for
the Future,” reviewing the Fed’s
latest statistics on Wyoming banks.
They reflect the drastic downturn in
the state’s economy of the past sev­
eral years, but also now show how
remaining banks are strengthening
their balance sheets gradually to
position themselves for future
Mr. Czerw inski said, “ The
building blocks are in place for
growth in 1988 and beyond. The per­
formance of Wyoming banks should
improve in 1988 and following

Two panels completed the general #
session. The first was “ Lender
Liability U pdate,” with W B A
general counsel Perry Dray and
William Thomson of Dray, Madison
& Thomson, Cheyenne, as par- ®
ticipants. Mr. Dray spoke of “ the
new environment” in which bor­
rowers and plaintiff attorneys are
suing banks, claiming non-performance of contract in relation to loan •
agreements. Fraud, he said, is a fre­
quent charge in the hope a case will
reach a jury, which can frequently
be prejudiced against “ the bank”
and in favor of the individual bor- ®
rower. He did add that the good
news is that “ courts are beginning
to say it’s a two-way street and the
borrower also must act in good m
Mr. Thomson gave specifics of
three lender liability cases in W yom ­
The concluding panel featured ^
three reg u la tors —Stan H unt,
W yom ing state examiner, and

LEFT— Pictured at opening general session were, from left: Wm. Ruegamer, WBA retiring pres.; Wyoming Gov. Mike Sullivan; Gretchen
Tea, WBA exec, v.p.; Tom Rideout, ABA pres., and Auburn Dowdy, incoming WBA pres. RIGHT—Janet and Sherrod France, pres., Bank o f #
Commerce, Rawlins, with Bette and John Cochran, pres. & CEO, Norwest Bank Nebraska, N.A., Omaha.

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

Wyoming News

9 William Stolte and James Timmell
of the Office of the Comptroller of
the Currency. The latter two
discussed current procedures now
being used by the OCC in examining
0 banks. Mr. Hunt cited various bank
statistics over the past three years
to illustrate the severe blows taken
by Wyoming banks and the general
econom y. He said “ risk-based
• capital would be a boon for most
small institutions.” He read a long
list of potential banking changes be­
ing considered by Congress, then
said, “ With all these potential
• changes, I ask, ‘ Is Wyoming bank­
ing ready for all these changes?’ ”
The second day of the convention
was devoted to relaxation—golf, ten­
nis, rafting, fishing and other out• door activities. The convention end­
ed with a presentation of awards for
winners in various events.
The 1989 convention at Jackson
Lake Lodge is scheduled for June
• 11-13.

Changes Told in Sheridan
Homer Scott, Jr., chairman of
0 First Interstate Bank of Sheridan,





has been given additional duties as
president and CEO, effective July 1.
As president he succeeds William
Ruegamer, who has been named executive vice president and COO of
First Interstate BancSystem of
Mr. Scott will remain chairman of
the Sheridan bank’s holding company, Commerce BancShares of
Wyoming, as well as chairman of
First Interstate BancSystem of
Montana. Mr. Ruegamer will retain
his titles as executive vice president
and COO of Commerce BancShares.
In addition, Ed Garding has been
promoted from senior vice president
to executive vice president and COO
at F irst In tersta te Bank of

Affiliated Bank Corporation
Announces Name Change
Wyoming National Bancorporation is the new name of Affiliated
Bank Corporation of Wyoming, by
action of its shareholders on June 7.
The name change corresponds with
0 the name changes of all affiliate
banks to “ W yom ing N ational
The shareholders also authorized
the creation of $100 par value
0 cumulative preferred stock, 53,000
shares of which were to be used in

Federal Reserve Bank of St. Louis

the acquisition of First National
Bank of Lovell. Both the acquisition
and the previously announced $5.5
million public stock offering were
scheduled to close on June 15.


First Wisconsin Grants

(Continued from page 23)
and we are not aware of any such
service elsewhere.”

Valley Announces Plan to
Merge with Colonial
Valley Bancorporation, Appleton,
and Colonial Bancorporation, Inc.,
Thiensville, have announced they
have entered into an agreement in
principle for a merger of Colonial
with Valley, in which Colonial share­
holders will receive Valley common
Valley will issue approximately
677,000 to 874,000 shares in the
transaction, valued at approximate­
ly $16.6 million.
Colonial had assets of $148.4
million at year-end 1987. The com­
pany owns banks in Thiensville,
Port Washington and Richfield, and
has offices in Wauwatosa, Saukville
and Jackson.

Named to SBA Council
Richard A. Hansen, president of
First Wisconsin National Bank of
Eau Claire, has
been named to
the W isconsin
Advisory Coun­
cil of the Small
B u sin e ss A d ­
m in is t r a t io n .
Members of the
council serve on
v o lu n te e r
basis, offering
advice to SBA
officials and serving as advocates in
the small business community. Mr.
Hansen has been affiliated with
First Wisconsin since 1977.

The Trust Consolidates at
New Company Headquarters
The Financial Information Trust
consolidated its offices at a new cor­
porate headquarters May 31 in West
Des Moines, la., at Regency West 7,
4400 Westown Parkway.

ROGER L. Fitzsimonds, president of First
Wisconsin Corporation, is shown making a
presentation to Loraine Tyler of First
Wisconsin— Eau Claire. Her son, Robert
Lancette, was this year’s recipient of the
First Wisconsin Corporation Scholarship.
The scholarship is awarded annually to a
son or daughter of a First Wisconsin

Headquartered in W est Des
Moines, The Trust is the ninth
largest financial data processor in
the country, servicing over 225
banks and savings and loans.
Clients are located in 18 states, from
Indiana to Colorado, North Dakota
to Texas, and California.
With over 300 employees, The
Trust is a full-service information
processor. The new headquarters
will house operational support for
two major processing systems and
an item processing service. In ad­
dition, the facility will also contain
administrative, research, develop­
ment, client consulting, education
and support divisions.
“ The consolidation provides more
efficient, cost-effective support for
our clients,” said Charles I. Budd,
Trust CEO/president.
The Trust also has announced the
release of “ System 2000.” This inte­
grated system uses nationally recog­
nized software products. It contains
features for commercial banks and
savings and loans that have not
been available in one system until
now. System 2000 includes cus­
tomer management information, ac­
counting, deposit and loan manage­
ment, report writing, and PC com­
System 2000 is currently being
tested at a savings & loan in Iowa.
This conversion and implementation
process changed all processing
applications as well as all on-line
teller equipment at the institution.
Northwestein Banker, July, 1988

Banking on common ground ’

John Chrystal, Chief Executive Officer, Bankers Trust


t's easier to talk Iowa banking with people
who live it. People like John Chrystal and
the correspondent staff at Bankers Trust.
We understand, first hand, the needs of
your bank — and your customers. Just as
we understand the many challenges facing
Iowa banking, today.
Like you, we have a stake in Iowa, and
Iowa banking. So when you need the services
of a correspondent bank, talk to the people
who speak your language. Bankers Trust.

Call us for a complete range of
correspondent banking services.


Investment Management
Individual/Corporate Services

Bank Acquisition Loans
Overlines & Participations

Full line of International Services

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Banking Systems Processing
ATM & Debit Card Support
Cash Letter Processing
Remote Processing Support

Call 1-800-362-1688 or 515-245-2424 • Seventh and Locust • D es M oines 50304

BankersTrust ,
Member FDIC
Federal Reserve Bank of St. Louis


Carleton C. Van Dyke











Carleton C. Van Dyke, 72, a pro­
minent northwest Iowa banker for
nearly 50 years,
died May 19 in
Sioux City. Mr.
Van D yke’s fam­
ily was associated with the Toy
National Bank
of Sioux City for
nearly a century.
A t the time of
his death, Mr.
Van Dyke was
owner and president of American
Banc-Services, Inc., Sioux City. He
had been owner and president for
many years of Farmers State Bank,
Marcus, and the First Trust and
Savings Bank, Remsen. Mr. Van
Dyke sold the Marcus bank just a
month prior to his death, and the
Remsen bank was in the process of
being sold.
Carleton Van Dyke was born Oct­
ober 13, 1915, in Sioux City. His
father, John W. Van Dyke, D.D.S.,
gave up his dental practice after a
few years to join Toy National
Bank, where he served as a vice
president for 38 years until his
retirement. Dr. Van Dyke married
Grace Toy, daughter of the dis­
tinguished James F. Toy, who was
president of Toy National Bank and
its predecessor bank from about
1890 until shortly before his death
in March, 1937, at the age of 87. Dr.
and Mrs. Van Dyke had three sons,
Jam es, W illiam and Carleton
(named after Carleton Toy). Bill and
Carleton served for many years as
vice presidents of Toy National.
William was chairman of the board
and Carleton was president of Toy
National from January, 1957, to
January, 1972.
James Toy, Carleton’s grand­
father, owned 16 banks outside
Sioux City at one time and Carleton
began his banking career in 1938 at
the family-owned bank in Anthon.
He moved to Toy National in 1940.
Federal Reserve Bank of St. Louis

After retiring from Toy in 1972, he sidiary Andrew Savings Bank into
was president of American Banc- First Dubuque Corp., parent com­
Services, Inc., Sioux City, through pany of First National Bank of
which he pursued active manage­ Dubuque. Through this merger, An­
ment of his banks at Marcus and drew Savings Bank becomes the se­
cond subsidiary of First Dubuque
Carleton Van Dyke was gradu­ Corp.
ated from Northwestern University
Andrew Savings Bank is now
in 1938. He held various summer headquartered in Bellevue and
jobs at Toy National as a boy before operates branch offices in Andrew
joining the First Trust & Savings and LaMotte. It will continue to
Bank in Anthon as janitor, book­ operate as an independent bank. No
keeper and teller in 1938, followed staff changes are anticipated.
by his 32 years of service at Toy Na­
Named in Cedar Rapids
Throughout his career, Mr. Van
Jerry Strait has been named a
Dyke was actively involved with vice president at City National
banking education and organiza­ B a n k ,
C edar
tions. He was a past president of the Rapids. He has
American Institute of Banking held numerous
chapter in Sioux City, later serving executive p o s­
as A IB ’s regional representative for itions at Mer­
Iowa. During his career he was a chants National
past president of the Sioux City Bank of Cedar
Clearing House Association, a Rapids over the
member of the regional Comptroller past 20 years.
of the Currency advisory board rep­ Most recently he
resenting Iowa, and a member of the was a ssista n t
Small Business Adm inistration vice president
regional board.
in the personal banking division.
Mr. Van Dyke also had served as His banking experience has included
chairman of the Iowa Bankers A s­ work in the trust department, opera­
sociation public relations com ­ tions, installment loans and com­
mittee. He was a member of the mercial loans.
original board of directors of the
Iowa Independent Bankers and had Added in Cherokee
served as a member of a national
Bonni Conley has joined the
committee for the IB AA. He was a
Bank & Trust of Cherokee as
long-time member of an Iowa bank
vice president. Her responsibilities
presidents peer group.
will be in ag and commercial loans.
Mr. Van Dyke gave generously of
Prior to joining the bank, Ms. Con­
his time to civic, social and church
ley was with FDIC in Des Moines.
affairs. He had a lifelong interest in
Boy Scouts, having received the
prestigious Silver Beaver and Silver
Wenzl Earns SBA Award
Antelope awards for distinguished
Mr. Van Dyke is survived by his
wife, Virginia; a son, Steve, who
resides in California, and twin
daughters, Mary Sloan and Vivian
McCullough, both of Denver. Mrs.
Van Dyke continues to make her
residence at 510 North Briar Path,
Sioux City 51104.

Andrew Financial Merged
Into First Dubuque Corp.
Wiliam G. Kruse, chairman of the
board and CEO of First Dubuque
Corp., and Thomas C. Dunlap, chair­
man of the Andrew Financial Corp.,
announced June 8 the completion of
the merger of Andrew Financial
Corp. and its wholly owned sub­

THE 1988 Small Business Administration
Financial Services Advocate Award for the
State of Iowa has been given to Larry L.
Wenzl, president of United Bank & Trust,
Ames. The honor is presented to a business
advocate who uses his or her influence to
encourage small businesses.
Northwestern Banker, July, 1988


Iowa News

Iowa Independent Bankers
Annual Convention


Vice President

July 21-23
Inn Resort Complex, Lake Okoboji

HE 17th Annual Convention of the Iowa Indepen­
dent Bankers will be held at the Inn Resort Com­
plex at Lake Okoboji on July 21-23. Presiding at the
gathering will be Thomas H. Huston, chairman and
president of Columbus Junction State Bank.
Slated to succeed Mr. Huston as president of the
association is John Chrystal, chairman and CEO of
Bankers Trust Company, Des Moines. Treasurer of the
I IB is Ronald E. Fenton, president and CEO of Securi­
ty Bank, Marshalltown. Serving independent bankers
at the association office in Des Moines are Richard W.
Berglund, executive vice president and corporate
secretary, and Diane Gibbs, executive director.
As usual, the convention is geared to provide ac­
tivities for the entire family. While bankers hear infor­
mative presentations by bankers, legislators and ex­
perts from related fields, spouses and young people
will have their own programs to enjoy.
The preliminary program follows:


Thursday, July 21
12:00 Registration opens.
5:00 Young People’s Gathering, pool.
5:30 Reception for adults, poolside.
Friday, July 22
8:00 First general session: call to order, invocation,
keynote address by Thomas Huston.
Report by Richard Berglund.
“ W hat’s Ahead for the Econom y’ ’—Robert
Krulwich, CBS business and economic corres­
pondent, Washington, D.C.
Secondary Market Update—John C. Dean,
pres. & CEO, Glenwood State Bank, Glenwood.
Presentation by Martha R. Seger, member,
Board of Governors, Federal Reserve System.
“ Congressional Update: The Washington
Scene” —Hon. Jim Leach, U.S. House of Rep­

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

Exec. Vice. Pres.

Exec. Director

12:00 Spouses’ luncheon.
“ Nostalgia” —Carl Hamilton, vice president
emeritus, Iowa State University.
1:00 Golf tournament.
Saturday, July 23
8:30 Second general session: call to order by John
“ How to Deal with Farm Overproduction” —
Lauren Soth, Pulitzer Prize winner and former
ed., Des Moines Register editorial pages.
“ Your Telephone System—A Liability or an _
A sset?” —Mack Manning, partner, Office
Systems Consulting, McGladrey, Hendrickson
& Pullen, Schaumburg, 111.
“ 1988 Election—The View from Washington”
—Robert Novak, co-host of CNN’s “ Evans and ^
Novak,” Washington, D.C.
Business session: report of resolutions com­
mittee, I IB Pac report, report of nominating
committee, election of officers.
12:30 Registrant’s luncheon.
Dignitaries’ remarks: William H. Greiner,
exec, dir., Iowa Agricultural Development
Authority, Des Moines; Michael L. Fitzgerald,
treasurer, state of Iowa; Edward Tubbs, Iowa 4D
superintendent of banking; J.R. Nunn, pres.,
Independent Bankers Association of America.
Golf awards; adjournment.
5:00 Social hour.
6:15 Barbeque.
Awards, drawings.

* Service

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Iowa News

Pictures from Second Week of
Iowa Bankers Group Meetings

AFTER DINNER speaker at Gp. 12 meeting
at Okoboji was John Chrystal, chmn. & ceo,
Bankers Trust, Des Moines, who gave his
observations on Russia today, based on the
latest of his 14 trips to that nation as an in­
vited guest to analyze Soviet agriculture.

GROUP 5—Secy. Gerald F. Lapke, pres., Shelby County State, and Chmn. Michael K. Guttau, pres., Treynor State, with IBA Pres. Clair Lensing, Farmers State, Marion.



DURING the second week of meetings, Groups 2 and 12 elected new officers. LEFT— IBA Pres.-Elect Don Snyder, pres., Mfrs. B&T, Forest
City, congratulates incoming Gp. 2 Chmn. Paul Johnson, pres. Iowa State, Algona; retiring Chmn. Joe Hutchinson, pres., Union State—
Rockwell City, and incoming Secy. Scott Whyte, exec, v.p., Security Savings, Eagle Grove. RIGHT— IBA Pres. Clair Lensing, pres., Farm er*
State, Marion, congratulates incoming Gp. 12 Chmn. Gary Hughes, v.p. & cash., Iowa T&S, Emmetsburg; incoming Secy. Dave Emmert, ex­
ec. v.p., 1st Natl., Paullina, and retiring Chmn. James L. Cuttell, pres., George State.

LEFT—Among those hosting hospitality rooms was U.S. Check Book Co. of Omaha. Ron Warford (second from left), cash., 1st T&S, Arm­
strong, visits with U.S. Check Book hosts (from left) John Finlayson, v.p. sales/mktg., and sales reps. John Rasmussen of Mound, Minn.,
and Denny Sullivan, of Mankato, Minn. RIGHT—Another hospitality room was hosted by Financial Institution Services Corp. of West Des
Moines. Left to right are: Dave Nyberg, pres., and Ray Hartley, v.p., with guests Don Jordahl, v.p., Bankers Trust, Des Moines; Gary Livesay®
v.p., IBIS, Des Moines, and George Schneldermann, pres. Rock Rapids State.

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

Two Strong
Staff Additions To Serve
Iowa Correspondent
Tom McDermott

Mike Coppess

Senior Vice President

Vice President

The a d d itio n o f T om M cD erm ott as h e a d o f the
C orre sp o n d e n t Bank D epartm ent greatly strengthens
the National Bank staff. M cD erm ott w a s form erly
presid en t o f the LaPorte City State Bank a n d P e o p le s
Bank & Trust in W a terloo. T om b e g a n his bankin g

Mike C o p p e s s has b e e n n a m e d to h ea d up the
C orresp on d en t Bank D epartm ent at P e o p le s Trust &
Savings in In dianola. M ike served three years in the
loa n departm ent p lu s eight years w ith the Federal

ca reer in F on tan elle, Iow a in 1955. This 33 years o f
bank in g e x p e r ie n c e c a n b e put to w o rk for y o u in the
co rre s p o n d e n t b ankin g area.

Land Bank. H e re ce iv e d his B.A. d e g re e from the
University o f N ebraska in O m a h a . M ike w a s b orn
an d raised o n an eastern Iow a farm s o h e has a w ell
rou n d ed e x p e r ie n c e that ca n b e b e n e ficia l to y o u in
y ou r c o rre s p o n d in g ba n k area.

The National Bank of Waterloo

Peoples Trust & Savings Bank

T h e N a tion a l B ank p u ts its fin a n cia l stren gth a n d

P e o p le s is a n affiliate o f Io w a N a tion a l

o u ts ta n d in g c o r r e s p o n d e n t b a n k in g s e r v ic e s to

B a n k sh a res a n d T h e N a tion a l B ank o f W a te rlo o .

w o r k for a large n u m b e r o f b a n k s in N orth ea st

W e are n o w a b le to u tilize th e stren gth a n d
s e rv ice s o f th e Io w a N a tion a l B a n k sh a res

Iow a.
O u r state o f th e art c o m p u t e r p r o c e s s in g
e q u ip m e n t is d e s ig n e d to m e e t all y o u r n e e d s
a n d is o n e o f th e largest p r o c e s s in g ce n te rs in

th rou gh o u r In d ia n o la o p e r a t io n s .
W e offer full s e r v ic e s in c lu d in g p u r c h a s e o f
e x c e s s fu n d s , b o n d a dvisory, da ta p r o c e s s in g
s e rv ice s , a u to m a te d a c c o u n t s r e c e iv a b le b illin g

the state.

sy stem s a n d o th e r c o m p le t e c o r r e s p o n d e n t b a n k

Y ou c a n n o w pu t o u r u n m a t c h e d

s e rv ice s .

c o m b in a t io n o f a n e x p e r ie n c e d te a m a n d

Y ou c a n n o w pu t o u r fin a n cia l stren gth, o u r

e x p a n d e d s e r v ic e s to w o r k for all y o u r
c o r r e s p o n d e n t b a n k in g n e e d s . G ive u s a c a ll for

fin a n cia l p e r fo r m a n c e a n d o u r fin a n cia l grow th

m o r e d e t a ils . . . 1-800-772-2411 o r 3 1 9 -2 9 1 -5 2 0 0 .

to w o r k for y o u . In In d ia n o la , c a ll 515-961-6241
for m o r e d eta ils o n o u r e x p a n d in g
c o r r e s p o n d e n t b a n k d ep a rtm en t.

T he National Bank

Downtown / Crossroads/ Logan Plaza/National Plaza
Offices in: Gilbertville, Traer, Dysart, Clutter, Vinlng

P eoples IkusT
& Savings Ba n k
114 N. Howard ■Box 279 • Indianola, IA 50125-0279
(515) 961-6241

FDIC Insured up to $100,000
Subsidiary of Iowa National Bankshares Corp
Federal Reserve Bank of St. Louis


Iowa News

LEFT—Former IBA Pres. Bud Pike, Grundy Center, retired from Hawkeye Bancorporation and currently chmn. of Iowa State Racing Com­
mission, visits with Bob Louvar, v.p., Merchants Natl., Cedar Rapids. RIGHT—Terry Martin, v.p., Merchants Natl., Cedar Rapids; Roger.
Loerch, pres., and his son, Randy Loerch, a.c., both with Manson State, and James Esmay, v.p., Union State, Rockwell City.

LEFT— Representing the leadership for Group 3 are, left: Secy.— Richard Halverson, pres., Corwith State Bank and Chmn.— Bill Herbrechtsmeyer, pres., First Security, Charles City. RIGHT— Participating in the Clear Lake meeting were, left: Wes Ehrecke, sr. v.p., IBA, and
IBA Ag. Committee Chmn. Charles Souder, v.p., First Sec. B&T, Charles City.

Committed to
making your
bank stand
apart from the

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

IBA/Collin Fritz Assoc.
Offer IRA Software


The Iowa Bankers Association, in
conjunction with Collin W. Fritz &
Associates, Ltd., is offering com -^
puter software designed to perform
minimum distribution calculations
for IR A holders over age 70 V2. The
software is in accordance with ap­
plicable IRS Code and Regulations#
and can be run on any IBM compati­
ble computer with either a hard
drive or a SV2 ” drive. It works best
with DOS 3.0 or higher and is com­
patible with either a color or m ono-#
chrome monitor.
The program, called MIN CAL,
comes with a manual and a toll free
phone number to call for assistance.
Cost is $195 for the PC version;#
quotes may be obtained for main
frames. You may also elect to pay
$75 per year for the next two years
for a compliance update service.
A sample diskette may be re-#
viewed for a fee of $25, which will be
applied to the purchase price of the
software. For more information, con­
tact Collin W. Fritz & Associates,
Ltd., P.O. Box 426, Brainerd, M N #

Our Correspondent Tfeam includes (seated from left):
Jim Perkins, Assistant Vice President and Mike
Bauer, First Vice President; (standing from left):
Larry Makoben, Correspondent Banking Officer;
John Oliger, Correspondent Banking Officer; Barry
Richards, Vice President and Dave Howell, Corres­
pondent Banking Officer.

Davenport Bank’s winning lineup. When it comes to
banking services, you want results without hassles.
Our Correspondent Team is competent, competitive
and creative. We blend the right balance of personal
attention with state-of-the-art technology to give you
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A great game plan. We offer you a full line of banking
products and services to meet your operational and
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competitive rates on certificates enhance your profit
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------------------------AINID TR U S T COM PANY— -----------------MEMBER


Federal Reserve Bank of St. Louis


Iowa News

Farmers State in Keosauqua Remodels

Ruthven—Ruthven State Bank:
Surplus should be $925,000, not
$325,000 as shown.
Victor—Farmers Savings Bank:
P&R should be $2,131,000, not $3,
131,000 as shown.

Eagle Grove Bank Closes
500th IADA Loan

FARMERS State Bank in Keosauqua has remodeled its facility. New features at the bank
include a staggered teller line for more customer privacy, and a display of local artwork il­
luminated with track lighting. Office Concepts, Ltd. of Waterloo was in charge of the pro­
ject. President of the bank is Art Ovrom.

Bank Directory Corrections
Several errors occurred in the
editing and printing of the 1988
Iowa Bank D irectory. Corrections of
those errors brought to the atten­
tion of the N o r t h w e s t e r n B a n k e r
appear below. A new microcom­
puter, compatible with all top line
makes, was purchased this year for
entry of all data for the Iowa Bank
Directory. In some instances, in­
formation was incorrectly entered,
then occasional misprints occurred
in the program. We regret any incon­
venience these errors have caused.
We ask Directory subscribers to
transfer the following corrections to
their books.
Cedar Rapids—Merchants National
International Department: Carol
L. Ridder is Internatl. Bkg. Off.
Douglas Bass, Corr. Bkg. Off.,
should be shown with the Cor­
respondent Services Division.
R eta il D irect: E lizabeth C.
Henriksen, V.P. & Trust Counsel,
should be listed in the Trust Divi­
sion. Donna R. Garnett is Sales
Mgr. at Vernon Village. Add Amy
Rudd as Sales Mgr., Main Bank.
Retail Indirect: Delete James H.
Trust Division: Add Elizabeth C.
Henriksen, V.P. & Trust Coun. (as
noted above). A dd Dennis R.
Haines, V.P.
Jeffrey E. Kaiden’s title should be
Corp. Tr. Off.
Add Judith Everett, Dennis L.

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

Dean and Allan L. King as Tr. Oper.
Administration: Add Carol M.
O’Deen, V.P.; Steven K. Ohde, V.P.
& Comptroller, and Willis J. Schnell,
V.P., Facilities.
Operations: Add John R. Taylor
and Rudy O.W. Frey, V.P., and
Charles B. Hamilton, Cashier.
Systems: Add Jimmie D. Henley,
V .P .

Loan Review/Asset Quality Divi­
sion: Add Gene A. Schmidt, V.P.
Cherokee—Central Trust & Savings
Bank: Undivided Profits & Reserves
(P&R) should be $1,446,000.
Council Bluffs—First National
Bank: Four officers who were en­
tered later for this bank were in­
advertently placed in the listing for
Council Bluffs Savings Bank. The
following should be shown in First
National Bank: Rod Kinman, A.V.P.
& Comptroller; Kathleen Chandra
and Tim Donnelly, Comm. Ln. Off.,
and Todd F. Kruse, Comm./Ag. Ln.
Eagle Grove—Security Savings
Bank: Deposits are $59,003,000.
Oelwein—First N ational Bank:
Capital accounts are: Capital $725,
000, Surplus $1,675,000, and Undiv­
ided Profits & Reserves (P&R)
Pella—Marion County State Bank:
P&R shown incorrectly as $2,965,
000. Should be $6,965,000.


The 500th loan funded by the
Iowa Agricultural Development
Authority was closed May 17 at
Security Savings Bank in Eagle
Grove. The loan went to the Kent •
McCart family to purchase 80 acres
of land which they have farmed for
ten years.
Iowa Secretary of Agriculture
Dale Cochran, by coincidence a ls o #
an Eagle Grove native, was among
dignitaries who participated in a
special signing ceremony at the
bank. He has been instrumental in
promoting the program, which w a s #
established in 1981 to assist young
farmers. Since then a total of $39
million has been loaned.
William H. Greiner, executive
director of the IADA, explains,#
“ The lower interest rate on the loan
helps new farmers keep a better cash
flow and keeps them farming. We
issue bonds to fund loans to eligible
borrowers. The loan and its col-®
lateral are assigned to the lender as
security for the bond. The income
from the bonds received by the
lenders is federally tax exem pt^
which allows the lender to arrange a®
below market interest rate. The rate
is usually two to four percent below
the current market, based on 75 to
85 percent of the bank’s prime rate.’ ’^
Locally, the loan was handled by
Security Saving’s vice president,
T.L. Henderson. He said, “ We are
eager to work with local farmers to
keep them farming in our area. The^
lower interest rate helps reduce
some of the risk involved in buying
farm land.’ ’
A study of the first 75 loans made
by the IA D A shows that about 7^
percent have failed, 356 are still in
force, and 102 have been paid off.
Nine have gone to the FDIC because
of local bank failures.
Of the 500 loans made so far, all^
but five have come from local com­
mercial banks. Five came from indi­
viduals in contract sales of land.
None have been made by a savings
and loan or Farm Credit S ervice^



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Owned by all banks In Iowa for the benefit of Iowa banks.
An affiliate of the Iowa Bankers Association
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Northwestern Banker, July, 1988


Elected in Dubuque


David D. Sullivan has been elecvice president, investm ents at
American Trust
Bank, Dubuque.
Prior to joining
the bank, he was
vice president of
investments for
First Colonial
Bankshares of
Chicago. He held
a similar posid . SULLIVAN
tion with Millikin National Bank, Decatur, 111.

Remodeling for Dike Bank

Des Moines
The Federal Reserve Bank of
Chicago has promoted N. Dean Row­
land to examining officer from ad­
ministrative examiner in the super­
vision and regulation and loans
department. He will continue to
manage the bank’s supervision and
regulation office in Des Moines.
Mr. Rowland joined the Chicago
Fed in 1986 as an administrative ex­
aminer. From 1974 to 1985 he was
with the Iowa Department of Bank­
ing, where in 1981 he was named
assistant to the superintendent of
banking. He is the son of Thomas
Huston, former superintendent of
banking and president of Columbus
Junction State Bank.
* * *
On June 1, McGladrey & Pullen
merged with Hamilton & Asso­
ciates, a recruiting and human
resource firm based in Des Moines,
according to Hamilton President
Thomas Hamilton. His five-member
staff will moved to an office ad­
joining the CPA firm on the sixth
floor of Capital Square in Des
Hamilton’s division manager.
* * *
Directors of Hawkeye Bancorporation elected William J. Lillis to
the board at its regular meeting on
May 9.
Mr. Lillis is a partner in the law
firm of Connolly, O ’Malley, Lillis,
Hansen and Olson. He served as an
assistant Polk County attorney
prior to joining the firm in 1970. He
is also a member of the board of
Hawkeye Bank & Trust, Des

Banker, July, 1988
Federal Reserve Bank of St. Louis

Russell J. Perry, president anti
chief executive officer of the l o w ®
Savings Bank in Dike, has an­
Iowa State Bank has announced
plans to remodel and refur­
it has relocated its trust department
space of the bank.
to the bank’s Sky walk Office at 612
New furnishings and a total nev^
According to John Burgeson, color scheme will be p rov id e®
president of the bank, the move was throughout the facility. A new teller
necessitated by growth of the bank line that has been relocated will pro­
and the trust department. That vide expanded space in the lobby
area for added customer convey
department saw nearly 50 percent
The teller line will have a
growth during 1987.
staggered design to provide privacy
for customers, as well as a sit-down
teller station for lengthier transac­
Named in W aterloo
tions and signing of new accounts^
David A. West has been named The addition of computer supportea
trust officer at the Waterloo Sav­ furniture will provide productivity
and privacy in the bookkeeping area.
ings Bank. He
New to the bank and its custo­
com es to the
bank from NBD
mers will be an ATM located in t h ^
Trust Company
vestibule lobby, providing 24-hour
banking services. In addition to the
one at Dike, there will be an ATM in­
Evanston. Prior
stalled soon at the New Hartford
branch facility.
to his affiliation
Kirk Gross Company, specialist
there, he was an
in turn-key design and building ser­
associate with
the law firm of
vices for financial institutions, is
handling the project and estimates
Safford, W est,
work should be completed by mid^
Tornow and Jaeger of Peoria, 111.

Added in Waverly

Dubuque Bank Sponsors
Concert in the Park Series

E.W. “ Bill” Webster has joined
First National Bank of Waverly as
vice president and trust officer. He
most recently has been employed as
vice president and trust officer at
First Trust Co., Billings and Boze­
man, Mont. Prior to that he held
trust positions at The First Na­
tional Bank of Austin, Minn., and at
American National Bank & Trust
Company, St. Paul, Minn.

First National Bank of Dubuque
is sponsoring a series of biweekly,
noon hour concerts throughout the
summer. The concerts, featuring all
types of pop music, will be held i ^
Washington Park in Dubuque. The
bank is presenting the series in
cooperation with the Music Perfor­
mance Trust Fund of the Recording
Industry Local 289 of the Dubuqu^
Musician’s Association.

W hat D oes It M ean
W hen a Credit Company Says They’re on Target?
T h e key to a G o ld M e d a l p e r fo r m ­
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----------------------------------- -----------A Record of Service Innovations
T R W w a s th e first c r e d it r e p o r t in g
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C o m b i n i n g th is w ith a N a t io n a l
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Digitized ©for
T R W Inc. T R W is the name and mark o f T R W
Federal Reserve Bank of St. Louis


N ic k n a m e S e a r c h w a s a d d e d t o c o n ­
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F o r m o r e in f o r m a t io n , c a ll y o u r
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W herever your bank is located, whatever size
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Our Correspondent Bankers are available
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mm ^ma

© 1988 Norwest Bank

M em ber FDIC
Federal Reserve Bank of St. Louis


M&NL 286 9 -0 0
IA 50309

Equal Opportunity Lender