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V o l-11 No. 11

____________________________Des Moines, Iowa

July 5,1982

Treasury’s Regan Thwarts Banks Again







BROKEN record was replayed
at the June 29 meeting of the DeA
pository Institutions Deregulatory
Committee, and the only difference
noted from previous meetings was
that the irritation from the “scratchy”
sounds had become more unbearable
to the nation’s bankers.
On a 4-1 vote the committee ap­
proved an account, effective Sep­
tember 1, that requires a minimum
daily balance of $20,000, with interest tied to the Treasury’s threemonth bill rate, with a range of
seven to 31 days, and continuing the
quarter percent differential rate that
favors thrifts over banks. The interest rate ceiling on it will be
eliminated May 1, 1983.
The lone dissenter was FDIC
Chairman William Isaac, who tried
to propose an account that would re­
quire the initial $20,000 minimum
deposit, with this requirement
phased out by October 1, 1983. He
said the account shouldn’t have an
interest-rate ceiling and that de­
positors should be able to withdraw
funds without advance notice.
Perhaps the most frustrating and
insulting part of the DIDC meeting
was the tenor of the meeting itself.
Observers said Mr. Regan strode in
late with his proposal in his pocket,
announced there was no time for dis­
cussion and called for a vote up or

down since he had another meeting
in a half hour. FDIC Chairman
Isaac’s request for discussion on his
proposal was cut off and the Regan
proposal was railroaded.
This lack of progress in making
the nation’s financial institutions
more able to compete, especially
with Money Market Mutual Funds
which have already drained more
than $200 billion of bank and thrift
deposits from those industries, is at­
tributed by many directly to the at­
titude of Treasury Secretary Regan.
As former chairman of Merrill
Lynch, where he presided at the con­
ception and birth of the MMMF,
which permits securities firms to act
as depositories with checking pow­
ers, but no regulation as banks, he
has checkmated every effort by the
DIDC to remove the regulations
that prohibit banks and thrifts from
competing with his former associ­
ates. While this lack of deregulation
continues, operators of MMMFs
now have been able to raid at will
the deposits of banks and thrifts to
the tune of more than $200 billion.
An obviously frustrated ABA
made a terse, three-sentence state­
ment after the latest DIDC meeting:
“I t ’s abundantly clear that the
DIDC is unwilling to fulfill its re­
sponsibility, in blatant contradic­
tion of the deregulation philosophy

of the Reagan Administration. The
ball is now clearly in Congress’ court
to resolve this inequity before addi­
tional damage is done to this na­
tion’s communities and the banks
trying to serve them. In the mean­
time, the securities industry con­
tinues to be the winner at the ex­
pense of the local communities and
IBA A similarly was disgusted.
Its new release termed the DIDC ac­
tion “government irreponsibility at
its worst.” It says that Secretary
Regan is taking on himself a matter
already resolved by Congress in the
area of deregulation, and is trying to
piggyback on that Congressional
mandate by stating that he will
trade off deregulation for banks—
eventually—in exchange for com­
mercial powers for thrifts—an au­
thority that is legally not his to
assume. IBA A calls this “blackmail
and hostage politics. ’’

Plan Leadership Banking
In Agricultural Seminar
“Planning Your Role in a Chang­
ing Farm Economy” is the first
Leadership Banking in Agricultural
Seminar sponsored by the editors of
Farming For Profit, a Doane-Western, Inc., business letter. The sem­
inar is scheduled for August 4-5 at

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Federal Reserve Bank of St. Louis

Team w ork:
One of the
reasons we’re
first in Iowa.

Bob Peterson

An Affiliate of Northwest Bancorporation
Mem ber FD ic

the Sheraton Plaza Hotel in St.
Louis County, Mo.
The two main subject areas to be
covered in the seminar include “Pro­
gressive Marketing: The Use of Fu­
tures as a Market Alternative” and
“New Financial Tools: Ways Your
Borrowers Can Become Better Cus­
Seminar speakers include: Dr. For­
rest Walters, president of Victorio
Commodity Research, Phoenix, Ari­
zona; Carl J . Heinisch, vice president
of the DeKalb Bank, DeKalb, 111.;
Paul Duzan, a Colfax, 111., farmer;
Marlin Jackson, president of Securi­
ty Bank, Paragould, Ark., and im­
mediate past chairman of the Amer­
ican Bankers’ Association’s ag divi-


Call (515) 245-3131 or toll-free (800) 362-2514

sion, and Paul Justis, publisher of
Doane’s “ Agricultural Report,”
Doane-Western, Inc., St. Louis.
Farming For Profit Publisher
Duane Gorr says the purpose of the
seminar is to explain the growing im­
pact on bankers of new marketing
and management methods being used
by farmers to ease their farm invest­
ment requirements.

Iowa News
JE F F E R SO N : Michael Hunter has
been promoted to senior vice presi­
dent of Brenton State Bank accor­
ding to Roger Rinderknecht, presi­
dent. Mr. Hunter joined the bank in
1979 as a vice president in charge of
commercial loans.

Nebraska News


BENNINGTON: Harold E. Roe, 79,
founder and chairman of the board
of the Bank of Bennington, died re­
cently. Mr. Roe, whose son Jerry
now is president of the bank, repre­
sents the second of three genera­
tions of Nebraska banking. Mr. Roe
entered banking in Coin, la., then
later was with the old Farmers &
Merchants Bank of Benson. He
started the Bennington bank in
1928 and was past president of the
Nebraska Bankers Association in
1958-59. His son was president in

DAVID CITY: Lewis (Bud) Zinnecker has joined the staff of the David
City Bank as executive vice president, announced L.W. (Bill) Souba,
president. Mr. Zinnecker began his
career at the First National Bank in
David City, later moving to Wyom­
ing where he has served as a bank
president for the past two and onehalf years.
M ILLIGAN: Bill Blide has been ap­
pointed president of Farmers and
Merchants Bank. He succeeds K.N.
Barnard, president, chief executive
officer and owner of the bank, who
left the bank after its sale to Ed
Chandler of Nebraska Bank Management Company. Mr. Blide previ­
ously was vice president of Amer­
ican State Bank of Mason City, la.
OMAHA: The Omaha Chapter of
the American Institute of Banking
recently elected Jean Volkir of Oma­
ha National as president, Sue Seefus
of American National Bank as edu­
cational vice president, Nancy Cordahl as marketing vice president
and Sue Costello as secretary-trea­
surer. Re-elected board members
voted in at the spring banquet were:
Gregg Dress of Center Bank and
Steve Gdovic of Northwestern Na­
tional Bank. The spring banquet
was held at the Firehouse Dinner
Theatre, with nearly 300 area bank­
ers attending.

National Bank 151

DELANO: Michael J . Pint, commis­
sioner of banks, recently announced
the issuance of a state charter to the
Crow River State Bank of Delano.
Donald P. Hamilton serves as presi­
dent and managing officer of the
bank located at 710 Babcock Boulevard.
ROCHESTER: Northwestern Na­
tional Bank recently announced the

jo t

Member F.D.I.C.

Federal Reserve Bank of St. Louis

C O Ü Î« < * * * “ ■








Minnesota News

to make MNB
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Supplement to Northwestern Banker Newsletter 7-5-82

Four Fact-Filled Manuals for The Bank Director
Every Director Should Have a Copy of Each One
BOARD REPORTS . . . for The Bank Director


More effective board meetings begin w ith effective reports. This 200-page manual
w ill help you determine the "q ua n tity and q u a lity " of m onthly reports needed by
directors so they (and management) can make proper decisions. Included are ex­
amples of reports most needed by directors who want to create policies that lead to
prudent management. Contains information on many topics such as effective re­
porting. . . reports to shareholders. . . report of examination. . . bank liqu id ity and
capital analysis. Manual illustrates various formats board reports can take. . . from
oral to detailed graphic presentation. Author: Dr. Lewis E. Davids.



This 64-page booklet provides some workable agenda, suggestions fo r advance plan­
ning and also lists types of reports a board should receive m onthly and periodically.
It emphasizes the need fo r informing the board as quickly and concisely as possible.
Contains a chapter outlining a "w orkable" board meeting, another on visual aids for
the board meeting. Also contains a model for minutes o f the board, plus sample
forms to communicate status of bank to the board. An excellent "com panion" to
BOARD REPORTS. Author: Dr. Lewis E. Davids.



Before your next shareholder meeting, get ready fo r gadflies, activists and others
who may be planning to disrupt your program. Here's h o w to anticipate1damaging
incidents, prepare tested countermeasures, turn potential disasters into a plus for
your bank. Details include handling of unusual actions (such as replacing a CEO) —
political contributions, laws and regulations directors may unw ittingly break, stock
purchases, sales and disclosures, proxy provisions, etc. A checklist of meeting de­
tails. Promoting attendance. Stockholder proposals. Materials to mail. Agenda and
procedural rules.This book is a tested"how -to"of Annual Meetings from inception
to final reports, including personnel responsible fo r each step. 96 pages of "m u st"
reading fo r chairmen, directors and officers involved.



This book is "rig h t" fo r today's banking problems. Due to the economic influence
banks have on their communities, the rapid growth of HCs and the ever-growing
"consumer" movement, directors must know what is expected of them and their
bank in terms of responsibilities to depositors, shareholders and the public. This
manual examines recent court decisions, investment return, continuity of manage­
ment, long-range planning, effects of structural changes on competition, and more.
Author: Raymond Van Houtte, president, Tompkins County Trust Co., Ithica, NY.


^ ^

152 W. Wisconsin Ave. #630
Milwaukee, Wl 53203

Board Reports

Planning The Board Meeting

2 - 5 ....................... $21.00 ea.

2 - 5 ..................................$6.00 ea.

6-10....................... $20.00 ea.

6-10.................................. $5.50 ea.

Over 10. . . . . . .

Over 10............................ $5.25 ea.

$19.00 ea.

Please send:
V- - copies, Board Reports
_ __ copies, Planning Meeting
____ copies, Effective Shareholder Meetings
____ copies, Responsibilities of Directors
Name & T itle

Effective Shareholder Mtgs.

Responsibilities of Directors


2 - 5 .................................. $7.00

6-10............................. $ 10.00

6-10.................................. $6.50

Over 10............................ $9.00

Over 10............................ $6.25
Federal Reserve Bank of St. Louis

- .....................-- ~

B ank_________ ____

.................... -....................-..............—■

(Please send check w ith order. In Missouri, add 4.6% tax.)


No. 101 DIRECTORS...Selection
Qualifications, Evaluation
and Retirement.

This 42-page manual answers key
questions concerning d ire ctor
selection, retention and retirement.
Special section: the prospective
director and how he should be ex­
pected to contribute to the bank’s
success. Includes a rating chart.
Manual also contains a section
posing questions that a prospective
director should ask himself before
he accepts a bank board post.
Another section deals with the
sensitive nature of director retire­
ment. Age can be a guide but not an
overriding factor in this decision. A
manual that will help the board
maintain its vitality.


w **




b an k

Price — $6.50
2-5 copies $6.00 ea. 6-10 copies $5.50 ea.




Directors aren’t “ born” cor­
respondent experts, but you can
help them catch up in a hurry, and
it’s profitable for you to do so. This
100-page manual covers all facets
of correspondent banking. Clear­
ings and float analysis ... loan
participations ... lines of credit ...
foreign exchange, etc. This manual
also helps directors APPRAISE cor­
respondent services — to make
certain you receive maximum ser­
vice at a competitive price.
The manual also discusses
several fe d e ra l re g u la tio n s ,
including the constraints imposed
on “ insider” bank lending by FIRA.
A MUST for every bank director.
p r ic e

PRICE — $23.00




Bank Executi ves

2-5 copies $ 11.00 ea. 6-10 copies $ 10.00 ea.

For the Bank Director
Federal Reserve Bank of St. Louis

2-5 copies $21.00 ea. 6-10 copies $20.00 ea.

e st m e n t

— $ 12.00

In this 192-page manual, the
author discusses the merits of
directors paying closer attention to
the investment policies of their
It is normal, says the author, for
the board to closely scrutinize loan
transactions since these occur more
frequently and represent the bank’s
primary earning power. Yet, poorlythought-out-and-executed invest­
ment policies can place a bank's
capital in jeopardy, particularly
when a bank is forced to liquidate
investments during a period of
rising interest rates.

Should the board “ intrude” upon
management prerogatives of the
CEO in the administration of the
investment portfolio? Not at all,
says the author. However, a written
policy, carefully structured around
the bank’s deposit and loan “ mix,”
can be comforting during rising or
falling interest rates.
As an aid to management and the
board, th e a u th o r p re s e n ts
numerous investment and portfolio
management policy statements
presently in use by recognized wellrun banks.
Also presented: a bibliography of
recommended reading on the sub­
ject, plus excerpts from the Comp­
troller’s manual on regulations and
rulings in regard to bank invest­
ments. These interpretations (also
valuable to state banks), while
available elsewhere, are placed
together in this volume for handy
reference by the director.

In many banks, salaries, bonuses
and fringe benefits of top manage­
ment are covered by contracts.
Since many contracts extend for
periods of five years they call for
careful construction.
This 48-page manual discusses
the role of the board’s Compensa­
tion Committee in determining the
nature of such contracts. The author
suggests that “ performance” can
and should be the key in rewarding
the executive. Charts and work­
sheets are included to help the com­
mittee arrive at “ fair and equitable”
perquisites as motivating factors
for the bank executive.
An aid to writing a NEW contract
or in REVIEW ING e x i s t i n g

PRICE — $8.00
2-5 copies $7.00 ea. 6-10 copies $6.50 ea.

Please Send These Management Aids:

Send Completed Coupon W ITH CHECK to
Commerce Publishing C o ., 152 W . Wisconsii
Ave. # 6 3 0 , Milwaukee, W l 5 3 2 0 3 , publisher o
the BANK BOARD Letter.

101. . .copies
2 1 0 .. . copies

$ ..
$. .

2 2 0 . . . copies $.
2 3 0 .. . copies $.
Total $ .
(In Missouri
add 4 .6 % Tax) $ .

Enclose check payable to


Bank or Company ........................
Address ..........................................
City ........... S ta te ................ Zip


where comm on transactions are handled uncomm only well.
13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C.











promotions of six officers. Dean
Ihrke has been promoted to exec­
utive vice president, commercial
banking. Promoted to senior vice
president were: Steve Coleman, real
estate loans; John Ryan, retail ser­
vices, and Bruce Thompson, opera­
tions. Karl Aaro was promoted to
vice president and manager of finan­
cial services. Also named to vice
president status were: Elaine Eickhoff, human resources, and Carla
Kilpatrick, residential real estate.

Gordy Anderson, chairman. He pre­
viously retired after 20 years as
superintendent of schools in Worth­

Illinois News

BUFFALO GROVE: Shareholders
of the Buffalo Grove National Bank
recently approved the acquisition of
the bank by Continental Illinois Cor­
poration. The acquisition is expec­
ted to be completed July 28. Each
share of Buffalo Grove bank stock
will be exchanged for approximately
ST. PAUL: Richard A. Bishop has two and one-half shares of Con­
been named president and chief ex­ tinental Illinois Corporation com­
mon stock.
ecutive officer of Northwestern
State Bank of St. Paul. He succeeds CHICAGO: Chicago Bank of Com­
Marvin L. Ellison, president and merce recently announced the pro­
chief executive officer of the bank motion of Charlotte F. Nuss, vice
since 1976, who resigned to pursue president, consumer lending, to vice
personal interests. Mr. Bishop previ­ president, operations and cashier.
ously was vice president of Banco’s Sandra M. Wozniak, in addition to
banking business group - eastern di- her responsibilities as a consumer
vision, a position he has held since lending officer, will assume the posi­
1980. He joined Banco in 1965 at Se­ tion of manager, consumer lending.
curity State Bank of Keokuk, la., Joseph P. Kerr has been appointed
and was named president of that vice president, business develop­
bank in 1971.
ment, and Bruce A. Granat, assis­
tant vice president, commercial
ST. PAUL: Robert J . Reardon, pres­ banking group.
ident of Otto Bremer Company and
chairman of Bremer Service Com­ ELM H URST: Michael Welgat re­
pany, Inc., has announced the elec- cently joined Elmhurst National
tion of Terry M. Cummings as pres­ Bank as vice president-trust divi­
ident, chief executive officer and sion, responsible for new business
director of Bremer Service Com­ development. Mr. Welgat began his
pany, Inc., effective July 1. Mr. banking career with the Michigan
Cummings joined the Bremer organ- Avenue Bank in 1976 as a trust of­
ization as controller in 1976 and was ficer. In 1978 he joined Worth Bank
elected senior vice president/con- and Trust in Worth as senior trust
troller in 1981.
elected vice president of the State
Bank of Worthington, according to

EVANSTON: First Illinois Corpora­
tion, the parent company of FirstBank Evanston, has named its pres­
ident, Howard B. Silverman, to the

additional post of chief executive of­
ficer. He succeeds Harland L. Ed­
wards, who remains as chairman of
the board.
STERLIN G : First Freeport Cor­
poration recently announced that its
board has approved the acquisition
of Lincolnway State Bank of Ster­
ling. The proposed acquisition tran­
saction will involve cash and shares
of First Freeport Corporation, and is
subject to executing a definitive ac­
quisition agreement and to the ap­
proval of the Federal Reserve Bank.

South Dakota News
The Federal Reserve Bank of Min­
neapolis recently announced its ap­
proval of the application by Dacotah
Bank Holding Co., Aberdeen, to ac­
quire Faulk County State Bank,

Montana News
BILLIN G S: Peter Pfeifer has been
elected assistant vice president at
Security State Bank. He started
with the bank in 1975 as an instal­
ment loan officer.

Getting it done for you.
John Messina

Jan Lassiter

David Scott

Commerce Bank ofKansascity
Federal Reserve Bank of St. Louis


Telephone (816) 234-2000


^ With today’s rapid changes in banking
technology, data processing is becoming
an even more important management
tool. That’s where I come in .f f
Today, your con­
tinued profitability is
as important to
Security National
Bank as it is to you.

Ken Boeder
Correspondent Bank Officer
Security National Bank


Sioux City, Iowa 51101 (712) 277-6554 Member FDIC

When it conies to agriculture, banking and
perso n n el. . . go to the specialists — go to
A G R Icareers, Inc.
Progressive bankers pay us to find the people
they need.

Ag. Loans/lns___
Ag. Lend. O ff........
Ag. Lend. O ff.......
2nd. Man (2)........
Loan O ffs............
Cred. Sprv............

.SD. .$17-20,000
. .IL. .$16-20,000
.W l.. $16-20,000
. .IA. .$20-25,000
. .IA .. $15-20,000
.M D .. $22-26,500

Ask the ag banking specialists what’s
available without cost or obligation.

Rates are $5.00 per line per insertion.
Add $3.00 for file letters per insertion.
Identity of file letter advertisers
cannot be revealed.
Northwestern Banker
306 - 15th Street
Des Moines, Iowa 50309
Phone 515/244-8163
Experienced INSTALLMENT LOAN MANAGER-for south
central Nebraska $25 million bank. Also additional respon­
sibility in agricultural and commercial lending. Send sal­
ary requirements with resume. Write file QBE, c/o North­
western Banker.

If you have tw o or more years of ag lending experience and
want to move up, we have a select number of positions
open In the midwest. A degree from Iowa State University
or other ag-oriented university w ill be a definite plus.
Write or call Malcolm Freeland, Freeland Financial Ser­
vice, Inc., 246 Insurance Exchange Bldg., Des Moines,
Iowa 50309. Phone 515/282-6462. Employer pays fee. (PA)
WANTED— Executive Vice President for $20 m illion
eastern Iowa bank. Contact Citizens State Bank, Box 190,
Postville, IA 52162.______________________________ (PA)
Immediate opening for experienced banker, preferably
w ith both lending and operations experience. Position w ill
be number 2 o fficer in Northeast Nebraska State Bank of
$7 m illion assets. Send resume and salary to: file QBJ, c/o
Northwestern Banker.

Why Call On
A Professional?
Faced w ith an unprecedented demand for talent
and innovative executives, com m unity banks are
increasingly turning to Freeland Financial Ser­
vice, Inc. for assistance In attracting the most pro­
mising candidates to fill their positions.
Remember, the best individuals are usually cur­
rently employed and not looking to make a
change; therefore, conventional in-house re­
cruiting methods are often ineffective, overlook­
ing the most qualified candidates.
Time is money! Effective internal executive re­
cruiting is costly when you consider advertising,
resume review and screening, preliminary inter­
view contact, traveling costs, interviewing can­
didates, and reference fo llo w -up ._
Contact our performance-oriented organization
today to meet your professional and technical
employment needs.

Financial Service, Inc.
Phone 515/282-6462
246 Insurance Exchange Building
Des Moines, Iowa 50309
Employer pays reasonable fee

□ I would like to sell my
majority bank stock.
□ I would like to buy ma­
jority bank stock.
Please C ontact . J. Mason Henry

Charles E. Walters Co., Inc.
39 Ginger Woods Road, Valley, Nebraska68064
Phone: (402) 553-6400

Banking,Financial & Business Personnel
Iowa and Nationwide

Pitney Bowes mailing machines, scales, folder, pickometers, etc. Call C.J. Stobaugh at 512/250-0794.

NCR 279-100 off-line and NCR 279-200 and 279-300 on-line
teller machines all previously under NCR’s maintenance.
For more information call Ada Turner at 512/250-0956. (FS)
NCR proof machines—775-1000 single pocket, 775-2000
multi-pocket. Also NCR 7750-2201 and 7750-2500 w ith full
configuration. Call Ada Turner at 512/250-0794.
Pitney Bowes TicEt Counter (documents or money). Near
new. E xcellent co n d itio n . Make an o ffe r. Phone
402/368-5504 or write The Tilden Bank, Box 250, Tilden, NE

714 Central National Bldg. 515-283-2545
Des Moines, Iowa 50309

I ,(515) 394-3145
(712) 779-3744

agncuiRSRs, inc .

the original agricultural recruiter

35-45% Discount on Lamps For
Your Micrographie Equipment
Box 10 - 702 E. Wash.
Washington, la. 52353
Phone: Iowa 800/272-6459 or

Thinking about
selling your bank?
Consult with

Homer Jensen

Dick Buenneke
Over 50 years’ banking
No fee to seller
246 Insurance Exchange Bldg.
Des Moines, Iowa 50309


SECOND OFFICER— rural Nebraska bank w ith excellent
compensation program. Operations skills and agri-loan
experience desired.
AGRI-LOAN—Iowa $30MM bank has opening for seasoned
ag-lending officer. Supervision of junior officers involved.


EXECUTIVE VICE PRES.—$40MM community bank located
within one hour of Missouri resort area. Operational and
lending expertise required.
COMMERCIAL LOAN—$150MM suburban bank with pro­
gressive management team seeks strong commercial lender
for second position in department.
OPERATIONS OFFICER—rural $30MM bank with above
average earnings record desires cashier/operations officer
with some knowledge of ag-credits.


CASHIER—$35MM Nebraska bank. Prefer accounting
degree and five years or more banking. Bank has inhouse

Walk down the tellers line this morn­
ing. Are you proud of their appear­
ance? If not, call us and find out how
only $ 1 .0 0 per day per teller will help.


e A j/ io e k ^

N. Main S t„ Carroll, la., 51401 712-792-2748 |

LENDING OFFICER—handle all types of credits for $50MM
bank with emphasis on commercial. Community located in
Rocky Mountain area.


Many other opportunities available for operations officers
with ag-lending experience and commercial lenders. Please
forward resume' and salary requirements.

of Kansas City
2024 Swift - Box 12346
North Kansas City, MO 64116
“Serving the Banking Industry Since 1970”

Vol. 11 No. 11 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306
Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $15.00 per year. Second class postage paid at
Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
Federal Reserve Bank of St. Louis