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s— n d. à <Jjlü JUNE 1978 /? M X J * én& S fL jfi'ÆaF» 0 w § r-lTÈÈ1-^*2 ^ Æ k W F " Y'?»*-*'dé&*WÈk * m + âgf^ JtfMaMÈÈËÊÊÊÊ S R à h 'i •^swsw«*« -ü How we formed our executive incentive plan • New developments in home improvement insurance • 24-hour service builds deposits for Sioux City Bank • The ninth digit— new routing symbol effective July 1 Minnesota convention program https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wyoming convention program Meet the wire transfer people who can make MNB Jeanette McGuigan Pat Bevins Terry Moore Assistant Cashier When it comes to transferring funds by phone or wire, we believe that small transfers are just as important as the large ones. With our on-line Federal wire system, plus our 24 domestic large-city correspondent banks, we eliminate frustrating delays when transferring funds between Iowa banks or throughout the United States. For fast, accurate and personal handling of your wire transfers, Treasury Tax & Loan payments, Series E Bonds redemptions, and American Express Travelers Check remittances, we’re as close as your telephone. The number to call is 319-398-4348 or toll free 1-800-332-5991. Make sure you get the best by calling one of MNB’s Correspondent Banking Professionals. John E. Mangold Terry Martin Jerry N. Trudo Mark W. Christen Dale C. Froehlich Stan R. Farmer Senior Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President Correspondent Bank Representative (319) 398-4313 (319) 398-4306 (319) 398-4320 (319) 398-4314 (319) 398-4315 (319) 398-4217 O U R PEO P LE M A K E IT W O R K Merchants National Bank Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IO W A’ BANK The promise of the future is perform ance today 11U lliii " lim ili M M ! li ! ! ! I I I I N I Ml f j II I M I H ¡uiiiniiimiiimninn« ^ k hiihiiiii The futures of many depend on the prompt, well-informed decisions of a few—on specialists tuned to making the proper investments at the right time. Kirchner Moore & Company consistently delivers this kind of performance. We’re specialists, dealing exclusively with the underwriting and marketing of municipal securities. As such, we offer our clients an unsurpassed expertise in this increasingly complex field. The key to Kirchner Moore performance is our team approach to investment decision-making and client service. Our sales, public finance and trading departments work hand in hand through every phase of municipal financing. This tight coordination of daily departmental activities assures clients of accurate, up-to-the-minute information regarding interest rates, secondary market activity, forecasts and money market trends. Kirchner Moore performance means traders who can assess the market instantly. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It means public finance specialists with an intimate knowledge of the long-range needs of municipalities in this region. It means sales representatives with a commitment to personal service and a firsthand knowledge of the territory they serve. Above all, it means prosperous futures for many because a few have performed with excellence today. Kirchner Moore & Company. We’re the Performance Team. Because when you do only one thing, you’re bound to do it better than anyone else. The Performance Team fM l M KIRCHNER MOORE & COMPANY Tax Exempt Municipal Bonds Denver 1600 Broadway, Suite 2500 Denver, Colorado 80202 (303)292-1600 Omaha 7171 Mercy Road Omaha, Nebraska 68106 (402)397-8520 4 NOmESTERN q Ia x / m JUNE 1978 • 85th Year No. 1377 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES to MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER Colter Bay, nestled at the base of the Grand Teton m ountains in Jackson Hole, Wyo., provides this alluring scene for vacationers who seek a quiet, peaceful alliance with the ageless nature of the mountains. Colter Bay is south of Yellowstone National Park and five miles north of Jackson Lake Lodge, site of the Wyoming Bankers Association annual convention this month. FEATURES 24 Commerce Bank conference Speakers discuss alternative ag policies 33 24-hour service Stan Evans looks at 5-year results in Sioux City 36 Executive incentive plan C. Bernard Jacobs reviews approach of his bank 40 The ninth digit New check verification program starts July 1 41 Labor reform law hit Continental Bank seminars highlight problems 42 Energy crunch! Bill Schumann details warning, opportunity DEPARTMENTS 6 12 17 28 30 47 60 74 76 80 98 Bank Promotions Corporate News Women in Banking Calendar W hat’s New Illinois Twin Cities North Dakota Colorado Montana Omaha 102 105 120 124 124 Lincoln Iowa Des Moines Jokes Index of Advertisers CONVENTION SECTIONS 51 69 82 91 112 Minnesota convention program South Dakota convention report W yoming convention program Nebraska convention report Iowa group meetings report NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Publisher Editor Malcolm K. Freeland Phone 515—244-8163 Business Manager Ben Haller, Jr. Mike Freeland Advertising Assistant Auditor Field Representative Delene Finch Mildred Bames AI Kerbel Associate Editor Linda L. Rhein Field Representative Paul Masters Field Representative Glen Hicks No. 1377 Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of addre«° Form 3579, manuscripts, mail items) to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s Jn Som ebody has to set the standards« r* fr is Qk ' * V & '^ 4fer‘ '4 fr ■4 # ‘ > s*h* te% •»- *> %r4e S" They call it the granddaddy of racing. Hundreds of thousands of spectators. 33 cars and 500 miles of the spectacular. There are other races, from stock cars to the Grand Prix circuit. But, there is only one Indy. There is only one Deluxe. From start to finish, we drive ourselves to the maximum of quality, service and efficiency. And we do it for one reason. ¥ Customer satisfaction. Frankly, we don't know any other way to go at it. You see, some fo llo w ... one leads. Because, somebody has to set the standards. 5» ■>. DELUXE CHECK PRINTERS, INC. SALES HDQTRS • P.0. BOX 43399, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ST. PAUL. IVIN. 55164 • STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST 6 Bank Promotions ROMOTIONS and other an P nouncements have been made by the following banks: American National Bank, Chica go: Rex A. Sinquefield, head of the bank’s trust department, was elected senior vice president and chairman of the trust committee. Albert W. Lauth, Jr., of the bond division and Bruce H. Rademacher of the educational services division were elected vice presidents; and Steven H. Baer of the commercial banking division was elected second vice president. Promoted to bank invest ment officers are Dean J. Bennan and Donald R. Benson. David P. Killion and Gerald F. Toth, Jr., were elected commercial banking officers. R. A. SINQUEFIELD A. W. LAUTH B. H. RADEMACHER S. H. BAER a 5-character message center! Words change or travel. W ith tim e and temperature. Now even the smaller financial institu tions can afford a message center display for advertising or public service. Daktronics Venus 500 has 32 columns of lamps w ith seven 15-w att bulbs per column for displaying 18" high charac ters. Flash on as many as 16 words of five letters or less, plus time and temperature or run a traveling message of up to 16 words of up to 16 characters each, plus time and temperature. At far less investment than our standard 10-character display. VENUS 500 MESSAGE CENTER D Write fo r literature and prices — DAKTRONICS, INC. DAKITN RC ONICS Box 299-L Brookings, S.D. 57006 Telephone 605/692-6145 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In other action, executive vice president Keene H. Addington was elected secretary of the bank, board and executive committee. Harold L. Arbit, vice president and head of the tru s t investm ent division, was named chairm an of the tru s t investment committee. Det Steward, a banker and former farm operator, has been named agri- ACORN Sale Registers "Accepted Sale Registers by Bank Clerks Everywhere" For i n fo rm a tio n w r i t e THE ACORN PRINTING CO. Oakland, Iowa cultural repre sentative. He is assigned to the c o rre sp o n d e n t b an k d iv isio n where he will work with corres pondent banks on a variety of agricultural cred it and collateral needs. He will also be available to customer banks for ag meetings they conduct on farm financing. A native of M ichigan, Mr. Steward began his banking career 23 years ago after a back injury forced him to give up dairy farming. He spent most of his banking career in Lapeer, Mich., serving the past 10 years as senior vice president of Lapeer County Bank & Trust Co. Bank of America, San Francisco: A major reorganization of the trust department has been announced by Lawrence E. Nerheim, executive vice president for trust activities. The department is now organized along functional and regional lines. Howard E. Ritt, 53, a veteran of 29 years with the bank, and head of the bank’s southern California trust division since 1969, was named senior vice president and statewide head of the $9 billion personal and court trust unit. The existing 33* district trust offices will now be organized into six regional groups. William E. Goetze, 59, formerly vice president in the northern division, was appointed group vice president and nationwide head of the $9 billion employee benefit trust unit. He joined the bank in 1974 after a career in advertising, broadcasting and manufacturing. Vice President Roger M. Loar, 41, was named chief financial officer for tru s t activities. He has been financial officer for BankAmerica Corporation. Vice President Dean J. Blair will continue as head of the trust real estate unit. Charles Vaughan-Johnson, based in London, will head international trust activities. Central National Chicago Corp. Chicago; Jackson W. Smart, Jr., 7 name four top investm ent firm s in the midwest. 1. United Missouri Bond Department. 2. United Missouri Employee Benefit Department. 3. United Missouri Personal Trust Depart ment. 4. United Missouri Investment Counsel Surprised? You might be. But, a lot of investors aren’t. They know that in investment management United Missouri is extraordinary, even for a large bank. And, many of these investors know why. At United Missouri, each invest ment department operates much like an independent investment firm. Responsible for its own success, in vestments, and profits. That is one reason why the United Missouri Bond Department ranks in the top 100 out of thou sands of banks and other financial and investment houses who deal in general obligation, taxexempt bonds and government securities. But, it is far from the only reason. Our Bond De partment carefully evaluates the creditworthiness of the bonds we sell. We don’t just sell it and forget it. We continually re-evaluate bond credits. Last year we participated in nearly half of the municipal general obligation bonds offered at public sale in Missouri and Kansas. We have to know what we’re doing. And we knowthat solid, consistent performance takes quality research. So, we have superior research staffs. The end result is careful and complete portfolio management. Need any type of investment management counsel? Quick, call United Missouri! UNITED MISSOURI BANK OF KANSAS CITY, N.A. U nited we grow. Ibgether. 10th and Grand, Kansas City, Mo. 64141 Telephone (816) 556-7000 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 8 president and chief executive officer, said the holding company board voted at its monthly meeting April 26 to omit the first quarter dividend of five cents per common share in order to increase the retention of earnings. He said it is not expected that common dividend payments will be resumed until net income levels are attained that result in an improved return on shareholder investment. At the same meeting, David S. Leavitt, president of Unarco Indus tries, Inc., a diversified metal fabricator in Chicago, was elected a new director of the holding company. Mr. Smart also assumed the additional title of chairman of both the holding company and its principal subsidiary, Central Nation al Bank, from Joseph G. Lutz, who retired from those posts at the annual meeting. Also, shareholders approved the Key Employee Stock Option Plan. Continental Bank, Chicago: Ver non R. Loucks, Jr., president of Baxter Travenol Laboratories, Inc., and Thomas H. Roberts, Jr., chairman of DEKALB AgResearch, Inc., were elected directors of Continental Illinois Corp., and its principal subsidiary, Continental Bank. William G. Karnes, retired chairman of Beatrice Foods Co., and Joseph S. Wright, former chairman of Zenith Radio Corp., did not stand for reelection in conformance with the board’s retirement policy. Drovers Bank of Chicago: Marcos Murillo has joined the bank as a business devel opment officer. M r. M u r i l l o spent 20 years with Central Na tional Bank of Chicago in the personal banking and instalm ent lo a n d e p a r t ments. He is a M murillo director of the Chicago Public Library and of the League of United Latin American Citizens, a volunteer organization which works to obtain college and university scholarships for Latin students. First National Bank in St. Louis, Mo.: E. Randolph Whitelaw, vice president in charge of the metropoli tan division, has been elected a senior vice president. In addition, Dominic A. Carlucci, Michael E. Jennings and R. Greg Kintz have been elected assistant vice presi dents, and Edward A. Hopkins and Mary Jo Self have been named data processing officers, Mr. Carlucci is in the representative office in London, England. Mr. Whitelaw began his banking career in 1968 as a management trainee. Manufacturers Hanover Trust Co., New York: Gabriel Hauge, chairman of the bank and its holding company, Manufacturers Hanover Corporation, was nominated for election last month as a member of the supervisory board of Royal Dutch Petroleum Company. N ational Boulevard Bank of Chicago: John A. Banks has joined the bank as a vice president in the correspondent bank division. His credentials include a BBA degree in finance from the University of Notre Dame and an MBA in finance and management from Michigan Univer- A SYSTEM FOR A MAJOR BANK TO REDUCE THE CARE & COST OF LENDING MONEY A number of major banks are discovering that The Lawrence System can manage their loan collateral better than they can. Better because Lawrence reduces the cost of monitoring inventories and receivables. Better because when there is a problem Lawrence is responsible for the collateral. In fact, some major banks are letting Lawrence handle all their collateral management. For information write or phone Lawrence, the oldest and largest system of its kind in the world. Lawrence Systems, Inc., 37 Drumm Street, San Francisco, Ca., 94111. 415-981-5575 or 800-227-4644. TH E LAWRENCE SYSTEM A COLLATERAL MANAGEMENT SUBSIDIARY OF INA Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. T. SWATEK T. J. TOWLE sity. He most recently served as vice president in the commercial loan division at City National Bank of Detroit. Other elections announced include: James F. Dickerson, to assistant vice president; Robert T. Swatek, to auditing officer, and Timothy J. Towle, to assistant cashier. , C A LL TH E P R O FE S S IO N A LS provides a program that eliminates those holes and produces bottom line profits... for a full explanation by a local representative call now. TH E K EM PER PLAN 800- 421-0331 (CALL TOLL FREE) O JOHN M. KEMPER & CO. C \W /) BANCINSURECORP. 23848 HAWTHORNE BLVD., TORRANCE, CALIF. 90505 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 United Missouri Bank of Kansas City: The promotion of three officers to vice president, two to assistant vice president, and election of two new officers have been announced by R. Crosby Kemper, chairman of the bank. George E. Crews was named vice president in the correspondent bank division, where he works with banks in metropolitan Kansas City. He has been with the bank since 1976. G. E. CREWS D. A. BEAR David A. Bear was elected assistant vice president in the correspondent division. His territory includes Oklahoma and Colorado. Before joining the bank in early April he was executive vice president at Farmers and Merchants Bank in Huntsville, Mo. Randall J. Klein was promoted to assistant vice president in the investm ent departm ent. He is responsible for portfolio and sales services to banks in Missouri, Kansas and Arkansas. Steve Panknin was elected bond investment officer in the investment department. He is involved in portfolio and sales services to banks in Kansas, Oklahoma, Nebraska and Colorado. He joined the bank in 1977. Ted H. Borgman and Eugene J. Calcara were advanced to vice presidents in the instalment loan division. Both men joined the bank in 1947. Nannetta M. Hughes was promot ed to assistant vice president in the safe deposit vault division and vice president of United Missouri Safe Deposit Company. She has been with the bank since 1971. United Guaranty Splits Stock on 5 for 4 Basis Directors of United Guaranty Corporation at their annual meeting recently in Greensboro, N. C., approved a five for four stock split. Serving the Midwest... The split was accomplished May 26 by distribution of one additional share for each four shares held on the record date of May 10. Cash was paid in lieu of fractional shares. W. L. Hemphill, president of the nationwide mortgage insurer, said the 25% increase brings total United Guaranty outstanding shares to 4.81 million. He said the 1978 cash dividend level will be considered by directors at mid year. He noted it is management’s present intention to recommend that the 1977 dividend rate of 12 cents a share be applied in 1978 to all shares following the split, thus increasing the effective divid end rate by 25%. Mr. Hemphill also reported record level first quarter revenues and earnings. Quarterly income rose to $2,990,000, or 78 cents per share, up 35% from 1977 first quarter income of $2,220,000, or 58 cents a share. Consolidated revenues to March 31 were $9,095,000, setting a new quarterly high, compared with $7,107,000 in 1977. Earned premi ums were up 30% to $7,442,000 and gross investment income was up 20% to $1,653,000. Applications for insurance of new loans in the first quarter reached $784,481,000, a gain of 50% over applications of $522,841,000 in 1977. Insurance written on new loans was up 53% to $637,655,000. Consoli dated insurance in force March 31 was $8 billion, compared with $6.2 billion a year earlier. F IR S T M ID A M E R IC A IN C . Municipal Bonds Fiscal Agents Corporate Bonds Listed and Unlisted Securities Government Agency Bonds Investment Bankina Municipal Bond Departm ent 100 Continental Building 19th & Douglas Om aha, N ebraska 68102 Call collect 402-341-1500 First Mid America Member New York Stock Exchange, Inc. and other Principal Stock and Commodity Exchanges CORPORATE AND MUNICIPAL BONDS • GOVERNMENT AGENCIES STOCKS • COMMODITIES • OPTIONS • INVESTMENT BANKING Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic Cedar Rapids • Des Moines • Fort Dodge • Kansas City • Chicago Banker. June 1978 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ABA Plans New Building Willis W. Alexander, executive vice president of the American Bankers Association, announced last month the ABA plans to move to a new building early in 1980 just one block away from present offices at 1120 Connecticut Ave., N.W. in Washington, D.C. The move will give the national association 110,000 square feet of space in the new 10-story building, compared to the present 80,000 square feet contained in three and one-half floors at the present location. ABA moved to its present building from New York City in 1971. ABA will work with the new building’s developer in its design, which will feature energy-saving approaches, and also share in selection of tenants for the building. 11 Auto loans vs. property improvemen loans? You'll earn more on property improvement loans. we guarantee it. Here's why: Greater profits. Net yields to lenders average 15% to 20% more with ICS risk-free property improvement loans than auto loans. No losses. You're shielded against every unpredictable default, strikes. Divorces. Skips. Bankruptcies. Layoffs. Longer terms. Typical auto loans run 5 to 4 years. Property improvement loans average 5 to 7 years. That means twice as much gross income on property Improvement loans! Cross-selling opportunity. Homeowners are your best "retail'' customers. Ready-made to be locked into your highly profitable financial services. And more. More stable borrowers. Less collection expense. Better collateral. Property is an appreciating asset. Plus, property improvement loans bolster your community service image. insured Credit Services is the world's largest private insurer of property improvement loans. Today over 1,300 institutions—from the smallest to the largest—use the ICS Plan. We’ve now insured more than $2 billion in property improvement loans. If you're top-heavy in auto loans, call or write William F. Schumann, President, today. You'll earn more with property improvement loans. we guarantee it. IN S U R E D C R E D IT \ S E R V IC E S 3 307 N. Michigan Avenue Chicago, Illinois 60601 3 1 2 / 621-9400 America's No. 1 insurer o f property improvement loans. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 12 Corporate News ROMOTIONS and other an P nouncements have been made by the following firms: Aetna Business Credit, Inc., East Hartford, Conn.: The creation of the National Equipment Financing Cen ter headquartered at the Minneapolis office has been announced. Kenneth W. Rahn, vice president, was named manager. He formerly headed the company’s Minneapolis region. R. K. W. RAHN R. L. JONES Lynn Jones was appointed vice president and regional manager of the Minneapolis region and will be responsible for commercial finance activities in the five-state area of Minnesota, Iowa, North Dakota, South Dakota, and Nebraska. American International Group, Inc., New York, N.Y.: Edward E. Matthews, finance, and William S. Mooney, administration and claims, have been elected senior vice presidents. Mr. M atthew s also serves as vice president and director of various AIB subsidiaries and affiliated companies. Mr. Mooney also is senior vice president and director of the American Home/National Union companies. Bank Building Corporation, St. Louis, Mo.: Roger Grimshaw has been appointed director of mar ket planning, fi nancial in s titu tions. He joined the company as manager of sales for the real estate services division in 1973 and had previously been R GRIMSHAW manager of sales for the company’s central facilities division. Prior to joining the company, Mr. Grimshaw was president of Executive General in Cincinnati, Ohio. Northwestern B a n kerJu n e 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion; John W. Kennedy, vice president and associate general counsel; Jerome G. Kraemer, and Frank W. Garvey, vice presidents, and Richard T. Kizer (Holz, Kluver & Kizer, Attorneys), general coun sel. Brandt, Inc., Watertown, Wise.: Jack R. Luebeck has been named p ro d u c t sales m a n a g e r . He joins the firm Diebold Incorporated, Canton, after five and a Ohio: The board has named Michael half years with J . M ok o d ean , IBM, most re Jr., vice presi cently as an ac dent, legal and count represen Charles B. Schtative based in eurer, vice presi Milwaukee. He dent, personnel will be responsi industrial rela ble for new prod tions. Mr. Moko uct introductions including close dean, secretary, liaison with manufacturing opera joined the com tions; organization and conduct of pany in 1969 as training schools and correspondence manager of taxes with product buyers. and insurance. Mr. Scheurer, per sonnel director since 1969, joined Central States Health and Life Diebold in 1964. Co., Omaha, Nebr.: The company Robert A. Rosenthal has been has announced appointed midwestern area manager the formation of covering Kansas City and St. Louis, a new stock cas Mo.; Wichita, Kan.; Omaha, Nebr.; ualty company, Des Moines and Davenport, la.; Central States Minneapolis, Minn.; Billings, Mont., Indemnity Co. of and Fargo, N.D. He will maintain Omaha. Princi his office in Kansas City, He joined pal officers of the Diebold as a sales representative in affiliate company the St. Louis office in 1969. Most are Thomas L . recently he was regional manager in Kizer, chairman; Seattle, Wash. The company also T. L. KIZER William J. Rus has announced the election of Mary sell, president, and Wm. Michael Charee Francis to corporate secre Kizer, executive vice president. tary. Thomas Kizer also is senior vice Financial Placem ents, Kansas president, secretary and investment officer of the parent company and City: Tom C. Cannon has joined this William J. Russell is vice president, bank officer per sonnel placement direct marketing. firm. Mr. Can non is widely known in the midwest through his 27 years with Commerce Bank of Kansas City, most of it in the c o rre sp o n d e n t T. CANNON bank department working with banks in Iowa, W. RUSSELL W. M. KIZER Nebraska and Oklahoma. He has Central States Indemnity will traveled extensively in most other offer casualty protection relative to upper midwest states working with financial institutions and will oper correspondent banks. Mr. Cannon will offer this close ate out of the parent company’s new headquarters building at 96th and contact and knowledge of banks and Western Avenue. Other officers are bankers in assistin g Financial William M. Kizer, secretary; Richard Placements accounts with their bank J. Ronk, treasurer; R. James officer personnel needs. After joining Commerce Bank as Heeney, vice president, administra- 13 Weigh the cost o f your money orders against the cost o f ours. 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Use this coupon today to find out more about FIMO®. i------------------------------------------1 Send to: Mr. Gil Rosenwald Vice President—Sales Development American Express Company American Express Plaza New York, N.Y. 10004 Em 6 Yes. 1 want to find out more about FIMO. Name Tide Bank Address City State Zip I____._________ ______________ I American Express FIMO. The money-making money order. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 14 an assistant cashier in March, 1951, in the correspondent bank division, he was appointed two years later assistant vice president and manager of the instalment loan department and later was elected vice president in that post. He transferred back to the correspondent division in Au gust, 1956, as vice president and continued in that work until his retirement earlier this year. Young, president, recently announ ced the following promotions: Clair Munyon, vice president-mar keting, and G. D. Grovier, vice president-agency development. Charles Linke, second vice presi dent-policyowner benefits; Jack Caldwell, second vice presidentwest; Terry Smith, second vice president-eastern, and Michael Willits, second vice president-computer services. Allen Stover, assistan t vice LeFebure Corporation, Cedar Ra administration, pids la.: Thomas R. Perry has been president-agency Daryl N orthrop, assistan t vice appointed sales engineer. He will operate out of the St. Louis branch president-sales promotion. Ted Kooser, assistant secretary and will concentrate on the southern Illinois and w estern Kentucky and senior underwriter. market where he resides. C.C. Hope Nominated for ABA President-Elect A. A. Milligan, president of the Bank of A. Levy, Oxnard, Calif., who is this year’s president of ABA, was nominated for chairman of the governing council for 1978-79. The current president-elect of the association, John H. Perkins, was nominated as next year’s ABA president. Mr. Perkins is president of the Continental Illinois National Bank and Trust Co., Chicago. Thomas R. Smith, president of Fidelity Brenton Bank and Trust Co., Marshalltown, la., was nomina ted for a second term as ABA treasurer. ABA is the national trade association of banking. Its member ship comprises some 13,254 full service banks — 92 % of the nation’s total. Dr. Arthur F. Burns Joins Institute as Lecturer C. C. Hope Jr., vice chairman of The Honorable Arthur F. Burns, the board of First Union National former chairman of the board of Bank of North Carolina in Charlotte, was selected as the official nominee governors of the Federal Reserve for the position of president-elect of System, has joined the American the American Bankers Association E nterprise In stitu te for Public by the Association’s governing Policy Research as a Distinguished T. R. PERRY CHRISTO PH ERSON council at its recent meeting at the Scholar in Residence, AEI President Charles P. Christopherson has Greenbrier, White Sulphur Springs, William J. Baroody announced last month. been appointed sales engineer, W. Va. Dr. Burns will have offices at the operating out of the Minneapolis Mr. Hope’s nomination will be American Enterprise Institute head branch. Mr. Christopherson will be voted upon by bankers attending the concentrating on the central Minne ABA annual convention, October quarters, 1150 Seventeenth Street, sota market area where he resides. 21-25 in Honolulu. His one-year term N.W., Washington, D.C. In his role as an AEI Distinguish as president-elect of ABA is ed Scholar, Dr. Burns will engage in Lincoln Benefit Life Insurance expected to begin at the conclusion writing, lecturing, and research on a Co., Lincoln, Nebr.: C. T. “Cemy” of the convention. multitude of economic subjects that have been his lifetime concern, including problems of inflation, monetary and fiscal policy, and the business cycle. He is also expected to participate in the collegial activities of the Institute, including seminars, forums, and conferences. Dr. Burns will also serve part-time as a Distinguished Professorial Lect urer at Georgetown University in the School of Business Administration. That's what you get when you call on the This fall he will teach a seminar Kirk Gross Company to handle your entitled “Economic Policy in Rela building or remodeling project. tion to the Business World.’’ Our specialists handle everything from Dr. Burns has had a long and building plans, to construction and distinguished career both in academ interior planning and design. Right down ic and public life. Most recently, to your secretary’s chair. from 1970 until March, 1978, he But most important, we’ll be on target, on served as chairman of the Federal time and on the money. Reserve System’s board of gover Call us. We’d like to discuss your project. nors. Before joining the Federal Reser ve, he was Counsellor to the 110 EAST 7TH ST., WATERLOO, IOWA 50705 President of the United States PHONE 319/ 234-6641 (1969-70). On target,on time, on the money. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Brandt's Countess 825 is your efficient answer to check processing Counts currency and checks up to 1200 per minute . . . also endorses or cancels. Slow, in e fficie n t paper processing can be a co stly m istake at any bank. It wastes good teller talen t and invites inaccuracy — both big strains on budget. The Brandt Countess 825 brings new accuracy, e fficie n cy and produ ctivity. N ot on ly does Countess count, endorse and cancel at high speeds . . . it also batch counts in any q u a ntity from 1 th ro ugh 999. Tw o conven ient readouts give batch and accumulative totals. Countess 825 is extrem ely easy to operate. Y our te lle r sim ply selects the coun ting and /or endorsing mode, sets fo r contin uous or batch count, and pushes the start button. A variable speed control lets the te ller m atch Countess’ speed to varying document conditions. W orn bills, inconsistent thickness in docum ents — Countess handles them all sw iftly and reliably. T here’s no need to w o rry about tw o or more docum ents being m iscounted as one. An in d ica to r light on the 825 alerts the teller if more than one item at a tim e has gone through. Put a Brandt Countess to w ork at yo u r bank. See how high speed, accuracy and efficiency can help you greet, meet and beat yo u r budget. Call your nearby Brandt Representative for full details on the Countess 825 Currency & Docu ment Counter-Endorser-Canceler. He’s in the Yellow Pages under ‘‘Coin and B ill C ounting/ Wrapping Machines.” Branch SINCE 1890 Brandt, Inc. Watertown, Wl 53094 Brandt® Cashier® Countess® https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The n ation w id e n etw ork o f serv ice is a n oth er p lu s o f Brandt S y stem s. BRANDT SERVICE IS NATIONWIDE William H. Welch, Peoria Heights, Illinois As a B ra n d t D is tric t M anager fo r S outheast Iowa, C entral Illin o is and N ortheast M issouri, I ’m p ro u d to sell the B ra n d t m oney p ro ce ssin g systems. Even m ore e xcitin g is o u r extensive n e tw o rk o f service technicians. M y custom ers e njoy fast service w ith m inim um m achine d o w n tim e . . . A n d that has helped to b u ild B ra n d t equ ip m e n t as the un d isp u te d leader. If y o u want m ore in fo rm a tion, ca ll me at the num ber liste d below. Brandt service is nationwide, knowledgeable and near you. Brandt has been building the finest money processing equipment since 1890. Just as important, we o ffe r you a nationw ide service netw ork of unmatched capability and reliability. We have over 130 service representatives . . . all Brandt specialists. They’re dedicated, experienced and factory-trained. We back our service team with complete parts inventories. And we have loaner equipment available, if your Brandt machine cannot be repaired on the spot. When you need expert Brandt service — anywhere in the nation — call us. We’re near you, with the strongest service network in the money processing business. S ince re ly , 309-682-1431 . IaJA j L SINCE 1890 Brandt, Inc. Watertown, Wl 53094 Brandt® Cashier® Countess® https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 Heller Has Record Earnings Walter E. Heller International Corporation, Chicago, reported a moderate increase in net income and earnings per share from continuing financial operations for the first quarter of 1978 over last year’s record first period. Franklin A. Cole, chairman of the financial services firm, said net income from its finance and banking operations was $7.4 million, 3.2% more than the $7.2 million earned in 1977. A fter preferred dividends, common share earnings from financial operations for the quarter were 63 cents compared with 62 cents for the comparable 1977 period (fully diluted, 61 cents versus 60 cents in 1977). Mr. Cole said that financial services now provide 100% of net income, whereas last year there were also earnings from discontinued manufacturing operations. There fore, total net income decreased 5.4% from $7.8 million in last year’s first quarter (including $650 thou sand from manufacturing) to the $7.4 million this year. Manufactur ing’s last contribution was $63,000 in the third quarter of 1977. Mr. Cole detailed 1978 first quarter earnings as follows: • $6.0 million from finance units (commercial, industrial and consum er financing, and factoring), slightly below last year’s $6.1 million. • $3.4 million from banking, up 13.5% from $3.0 million in 1977. House Bans Overdrafts To Bank Officers A House Banking subcommittee has approved legislation that would make it illegal for a bank to grant free check overdraft privileges to an executive officer or director. The prohibition would not disturb any line-of-credit plans where the overdraft is treated as a loan and interest is paid by the over-drafter. Nor would it interfere with preauthorized agreem ents under which overdrafts from a checking account are covered by transfers from another account at the same bank. The overdraft ban was part of a bill being voted on by the House subcommittee on financial institu tions supervision, regulation and insurance. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WOMEN IN BANKING By MARJORIE BREDOW, Asst. Vice President First National Lincoln, Lincoln, Nebr. banking career began in 1958 at the Jones National Bank in M YSeward. It was a typical example of the local bank looking for em ployees who had at least some potential in bookkeeping and clerical skills. My high school business instructor recommended me and upon graduation, I became a banker. Progressing through various duties, I began in the checking account area and also worked as proofmachine operator, drive-in window teller, bookkeeping, new accounts person, bond seller, etc. Having achieved the place in the bank where I felt additional promotions would not be available, I decided to try my skills in a larger bank. Fortunately, First National Bank of Lincoln, was developing a detailed management reporting system that included establishment of divisions, cost centers, work measurement standards, cost accounting procedures and variance reporting, by exception, from profit plans. When I applied at First National, my well-rounded experience in all of the facets of banking (excluding the actual making of loans or selection of investments) was the criteria they were looking for. Of course, I still had many things to learn because while the actual procedure may be similar, size dictates many additional steps to be performed. While at First National, I have refined and expanded the divisional reporting concept, worked as assistant treasurer of the holding company during its development (including all the initial SEC report development) and, in 1974 converted the general ledger systems of the bank and the holding company to a computerized system. Extensive cost accounting has also been a major portion of my past activities. In my current position I work on “special projects” as assigned by management. This can and does involve a wide range of concerns but the work is very interesting and most challenging. My educational background was a high school diploma but, recognizing the need for more knowledge, I have also taken 26 AIB classes and completed the three year BAI School at Madison, Wise., as a control major. My personal opinion is that even all of this is not enough to effectively compete in the job/promotion area so I am now enrolled in the NABW baccalaureate degree program through Mundelein College in Chicago. Obviously, I feel women must take the initiative and seek out opportunities to expand their knowledge and educational background. Of course, all the “background” in the world is of little value unless it can be applied in a practical manner, so creativity and imagination must also be present. The abilities of men and women are only as great as they are personally developed. There is no “average” professional person and stereotyping of either men or women is unfortunate. Women have contributions to make—exactly what that contribution is can only be determined by the individual woman. Possibly, it is a solid family life, well-mannered children, community involvem ent, professional expertise or any combination. Self-satisfaction and fulfillment are the determining factors for what is right for the individual. Stereotyping is bad for all involved—as women we need to avoid this trait even more than men because we establish the standards. Professionalism is universally recognized and this should be our WOMEN IN BANKING . . . [Turn to page 44, please] Northwestern Banker, June 1978 18 Continental Opens New Operations Center VIDENCE of its commitment to E revitalize the South Loop area of Chicago was given full visibility ^ V recently by Continental Bank of Chicago when bank officials and Mayor Michael Bilandic dedicated Continental’s new six-story opera tions building at 840 S. Canal St. Chairman Roger E . Anderson and President John H. Perkins pointed out that Continental could easily have placed the new operations center outside the Loop area and operated through modern communi cations technology. However, bank management and the board chose the South Canal site to give credence to bank support for revitalization of the area. The old building was purchased in October, 1975, from General Electric Realty Co. for $1,950,000. The building was completely stripped to its basic construction, then totally redesigned around computer opera tions and rebuilt. With the addition of 23,000 square feet of space during the rehabilitation, the building now has 375,000 square feet of space. Mr. Perkins noted that the site means 600 C ontinental employes will continue to work in the city. The entire renovation cost 20% less than a new building would have and also saved 14 months’ time. In addition to all-new facilities for technical and computer services, the building now contains a two-story atrium atop the fifth and sixth floors for use as an employes’ cafeteria. Extensive use of solar techniques will provide extensive savings in utility services. At the same time, Continental announced it has signed a lease for LaSalle St. to the new offices by the end of 1978. The total move is scheduled for completion by mid1979. Gabriel Hauge Honored The YMCA of Greater New York has named Gabriel Hauge, chairman of Manufacturers Hanover Corpora tion and Manufacturers Hanover Trust Company, as recipient of its Dodge Medallion Award for out standing public service. The award was presented last month before more than a thousand guests at the New York Hilton Hotel. Chase Offers Information Center Services to Public The Information Center of The Chase Manhattan Bank, New York, has announced that it will offer its research and library services to the business public on a fee basis. Staffed by professional librarians Continental Bank covered the light court of with expertise in the special needs of the original 840 S. Canal St. building with banks, The Information Center has a tubular steel and glass skylight to create a tw o-story atrium which contains an over 22,000 books, 2,450 subject employee cafeteria and lounge areas. The industry files and 1,100 periodical new floor of the atrium covers the original titles. roof. Trees and plants heighten the Sources will include 40 on-line outdoors effect. automated data bases, some main 16 floors of the 30 N. LaSalle tained and operated by various Building, to be occupied by the Chase information services subsidi bank’s trust and investment services aries. The Information Center is equip department. Gail M. Melick, execu ped to perform research and provide tive vice president for operations and source documents on questions such management services, said this as: move will provide 347,000 square • What are the current and feet of space to the bank. projected prices for the various types Remodeling of the space has of steel, and the overall prospects for begun, Mr. Melick stated, and the bank expects to move the first of the the industry over the next five to trust department’s 1,000 employes seven years? • Which companies have left New from the main office at 231 S. York City over the last five years? • W hat are the names and addresses of the correspondent banking offices of each of the 50 largest banks in the U.S.? for installment loans on: • Can I get the 10K and Annual Report on each company in the high A u to m o b ile s M o b ile H o m e s fashion garment industry? Tru cks R E C R E A T IO N A L V E H IC L E S (2 ton or le ss) Also available through The Sn o w m o b ile s H o u se h o ld G o o d s B o ats an d M otors Information Center is a document Farm M a ch in e ry T ra v e l T ra ile rs retrieval service, taken from 11,000 M o to rcy cle s M otor H o m es reports on publicly held corporations filed with the S.E.C. These include PROTECT THESE LOANS AGAINST PHYSICAL DAMAGE LO annual reports, lOks, 8ks, lOQs, prospectuses, registration and proxy ca ll or w rite : G .D . V A N W A G EN EN C ■Bal material. Services of The Inform ation Ì 1678 Northwestern Bank Bldg., Minneapolis, Minn. 55402 Center are available on a per use : (6 1 2 ) 333-2261 basis or by yearly retainer. BLANKET SINGLE INTERESt IN Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 What’s m ost im portant in a correspondent relationship? Quality. When you evaluate a corre spondent bank, you look not only for specialized financial and operational expertise, but also for a high quality of service. That’s why throughout the country, bankers rely on The Northern Trust Bank. We offer a complete range of advanced banking programs, supported by a tradition of excellence that is unsurpassed. How can we serve you? At The Northern Trust, all correspondent services are designed with your needs in mind. And these services are constantly being improved to keep pace with the latest technology and regulations. Accelerated Deposit Collection. To help your bank have more cash on hand, The Northern Trust accepts unsorted cash letters, offers late deadlines, and provides immediate availability on major financial centers throughout the country. Bond and Money Market Services. You have complete, accurate market information with just one phone call. FOCUS™ Your bank’s trust investment officers have daily access to the research th at our own portfolio managers use, weekly reports that can reduce their paperwork, and periodic seminars with top Northern Trust officers. Special Project Assistance. When you need help with operations analysis, float reduction, marketing, or other important projects, your Northern Trust calling officer and staff are available to assist you. They will put you in contact with other banking specialists who provide information and perspective for your special assignments. For a quality of corre spondent service th a t’s rare in banking today, contact the calling officer for your area at The Northern Trust Bank, 50 South La Salle Street, Chicago, Illinois 60675. Telephone (312) 630-6000. The Northern Trust Bank Bring your financial future to us. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 20 the terminal at our office will result in direct and immediate access to this information. “InfoLink will help AnheuserBusch to better evaluate its cash position,” Mr. Bridges said, “giving us timely information on our daily balances at each bank. These can be monitored as often during the day as we think necessary, enabling us to determine if and when funds should be transferred among accounts.” DeLuxe Sales Climb CHECKING a test run on the First-St. Louis InfoLink terminal at Anheuser-Busch, Inc., headquarters in St. Louis are James F. Bridges, manager of the brewery’s treasury operations; Linda Burke (seated) of the Anheuser-Busch accounting staff, and Rita Nyhoff, First National product planning officer. 1st St. Louis Offers Cash Management freeing staff for other responsibili ties,” Mr. Ford said. Customers using the InfoLink ment system designed specifically to system utilize on their premises a help corporate treasurers and money time-sharing terminal which gives managers improve the efficiency of instant access to daily balance-relat their cash management capabilities. ed information such as primary bank The new system is called First-St. balances, previous day debits and credits, other domestic and foreign Louis InfoLink. InfoLink will be participating in bank balances, lock box reports and the national BankLink system of a history of the company’s bank major U.S. banks. Both systems balances over a given period of time. have evolved from the Chemlink In addition the system permits rapid service which was developed by the transfers of funds through deposi Chemical Bank of New York and tory transfer checks. Mr. Ford announced that St. marketed to selected banks. “First National was chosen by Chemical Louis-based Anheuser-Busch, Inc., because of our national reputation in the world’s largest brewer, will be the field of cash management,” the first local company to join the explained Richard F. Ford, president InfoLink system. We investigated a number of bank and chief operating officer of First balance reporting systems through National Bank in St. Louis. Mr. Ford described the new out the country,” commented James system as a flexible approach geared F. Bridges, m anager of the toward helping reduce corporate brewery’s treasury operations, “and cash management operational costs. found InfoLink to be the best and “InfoLink will enable our corporate most versatile system for our customers to more quickly and particular needs. “Under the new system, each accurately collect daily balance-rela ted information, giving financial bank serving Anheuser-Busch will managers additional time for bank contact InfoLink daily to input the ing and investment decisions while necessary report information. Using IRST National Bank in St. Louis F has announced the availability of a major new financial cash manage Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DeLuxe Check Printers, Inc., St. Paul, Minn., reports sales forthefir st quarter of 1978 were $72,718,824, a new record for a three-month period and up 11.8% over the first quarter of 1977 when sales were $65,064,951. Net income for the period was $6,627,599, up 6.5% from last year’s earnings of $6,221,909. Net income per share for the quarter was 57 cents compared to 53 cents in 1977. Both sales and earnings were favorably affected by price increases implemented July 1, 1977, and March 1, 1978. The estimated net effect of these increases was 2.6% on total sales for the quarter. Fed Issues Guide to Explain Its Regulations A Guide to Federal Reserve Regulations, the latest in a series of educational pam phlets, is now available for public distribution, the Board of Governors of the Federal Reserve System announced recently. The booklet is designed to give a simplified explanation of the more than two dozen Board regulations dealing with commercial banks and bank holding companies, consumer credit transactions, use of credit in securities transactions, interest on savings deposits, the clearance and settlement of checks and other payments involving the use of Federal Reserve facilities, and other financial activities. Copies of the Guide may be obtained singly or in bulk free of charge from the Board of Governors in Washington or from any of the 12 Federal Reserve Banks. Requests should be addressed to the Board’s Publication Services or to the Publication Departments at the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas or San Francisco. 21 There’s a lot to be said for the Safekeeping Service of M anufacturers Hanover. Like: We know the depository ropes. We wear all the safekeeping hats. Manufacturers Hanover Trust has the sophisticated systems to assume the roles of processor, guardian, handler of trades, clearance agent, executor of repos, facilitator of pledging, depository monitor—and more—for all securities. We’re geared to move fast. To make your funds available as soon as possible, MHT is one of the few New York banks to publish deadlines for receipt of your instructions. And were organized for easy access, sure control and immediate follow-through. An early advocate of certificate-less electronic processing, MHT uses both the Depository Trust Company and the Federal Reserve bookentry system. We have the touch for keeping in touch. Through one automated means or another, we give you a daily wrap-up of all your securities activity. You can get it via MHT’s TRANSEND Securities System, a time sharing facility, or you can communicate directly with MHT’s mainframe for I.D. trades. Our pledge edge. Unlike most New York banks, MHT consolidates all your pledged securities in a single account—for example, collateral for both state and municipal deposits. The savings are considerable. For added savings, our long position at DTC entitles you to lower rates without the usual participant’s fee. We wrote the book. For a copy of our safekeeping brochure, contact your National Division representa tive, or Brian V. Carty, Vice President, 350 Park Ave., N.Y., N.Y. 10022, (212) 350-4658, or Louis V. Segalini, Vice President, 40 Wall St., N.Y., N.Y. 10015. ( 212) 623-75 M ANUFACTURERS HANOVER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 22 Fed Study Says HC Banks More Leveraged ANK holding company banks exhibit riskier portfolios and B more leveraged capital positions than similar, unaffiliated banks, but their profitability and growth are no different, according to a recently released Federal Reserve System staff study. Conducted at the request of the Senate Banking Committee, the study by the Board of Governors consists of eight staff papers making up a comprehensive review and evaluation of existing research on bank holding companies. In trans mitting the results to the Senate Banking Committee, Fed Chairman C. William Miller cautioned that “ despite the large am ount of research that has been done, it is difficult to draw unam biguous conclusions on the impact of bank holding companies/’ He said his staff has been instructed to undertake additional research in areas not sufficiently covered to date. The study generally is subdivided into the five general concerns embodied in the 1970 amendments to the Bank Holding Company Act of 1956: 1. efficiency and performance of subsidiaries, 2. bank soundness, 3. competition, 4. concentration of resources and 5. public benefits and convenience and needs. Although frequently including the caution that the study is considered incomplete, since only seven years have elapsed since the amendments were passed, the staff study made these points in the extended text submitted: Performance and Efficiency First, it is clear that multi-BHCs have had a significant effect on the asset structure of acquired banks. Most notably, BHC banks hold less cash and U.S. government securi ties, more state and municipal bonds and more loans per dollar of assets than independent banks. Second, in addition to holding what is generally regarded to be a riskier portfolio, the evidence indi cates that multi-BHC banks exhibit lower capital-to-asset ratios than comparable independent banks. Third, BHC banks exhibit signifi cantly higher earnings and expenses subsequent to affiliation while their Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis significant effects on banking market concentration and, hence, little pro or anticompetitive effects. profitability remains relatively un changed. Concentration of Resources Finally, BHC banks do not grow any faster than other banks. BHCs now control about 71% of In short, BHC banks exhibit domestic bank deposits, but only riskier portfolios and more leveraged about 8 % of these deposits are capital positions than similar unaffil outside lead banks. Thus, most of iated banks, but their profitability the recent increase in BHCs share of and growth are no different. domestic deposits is due to conver In nonbank affiliates, the study sion by existing banks to the BHC reviewed only mortgage banking and form or organization and not to consumer finance industry activity acquisitions by existing BHCs. and concluded from the limited Nationally, concentration in bank evidence that nonbank affiliates of ing has declined gradually, but BHCs tend to be less profitable and steadily, since 1934. The greatest more highly leveraged than their declines have been in the most and independent counterparts. least concentrated states. Large The available study suggests that increases in concentration directly a bank can achieve some economies attributable to bank holding compa of scale by affiliating with a bank ny acquisitions have been limited to holding company; however, it will the low and moderately concentrated also incur additional expenses. Small states. Locally, no significant, affiliated banks, especially unit systematic increases in concentra banks, may not be able to achieve tion have been attributed to bank economies until they reach a holding companies. sufficient size. As affiliated banks grow (over $30 to $40 million), the Public Benefit economies of affiliation enable subsidiary banks to operate as, or There have been very few studies more, efficiently than independent on this subject but generalizations banks. The same studies suggest are that seldom, if ever, have these gains in efficiency taper off as convenience and needs factors tipped the affiliated bank becomes large. the scale in favor of a BHC approval; the chief public benefit from BHC Safety and Soundness activity has been increased availabil ity of credit to the local community; Multibank expansion has resulted BHCs have been found to fulfill most in increased risk exposure through of the public benefit actions greater leveraging and riskier proposed. portfolios for subsidiary banks than for independent banks. The value of Conclusions geographic diversity is not known. The little available evidence on The principal economic effect of banking affiliates indicates they the BHC movement to date has been are more leveraged than independent to facilitate increased leverage and counterparts. Evidence indicates the acquisition of more loans and parent holding companies have other risky assets. To some, this leveraged significantly in recent may suggest a weakening of the years. In many cases, this leveraging stability of the financial system. has provided equity funding for However, it is not clear that BHC banks; however, even with increased risk taking by individual such equity injections, BHC banks BHC subsidiaries implies th a t as a group still tend to be more overall organization has become highly leveraged than their indepen more risky. dent counterparts. It must be determined whether a socially desirable level of risk has Competition been achieved or yet remains to be achieved. Studies of the effects of BHCs on The staff study closed with banking market concentration have recommendations for emphasis on yielded mixed results. The bulk of further in-depth studies of the the work suggests that BHC activity various aspects of BHC activity and has had little system atic or organization. 23 Keeping checks from feeling lost, returned, or rejected. Continental Bank’s check processing excep tion rate is consistently lower than national bank averages. Take lost items for example. Last year our free and lost item rate per 100,000 checks proc essed was only 13, while the national average was 29* Pretty good. But w e’re always finding ways to get b e tte r... this year our rate dropped to only 3 lost items, while the national average climbed to 32f T hat’s because our people never stop working to minimize annoying rejects, returns and lost items. And this means our correspondents save money by spending a lot less time inquiring about problems. Join the Continental correspondents who enjoy the advantages of our check processing service. Call John Tingleff at (312) 828-2191 to find out why it’s the best in the business. ^N atio n al fig u re s art* tak e n w ith p e rm iss io n from th e 1975 a n d 197b B ank A d m in istra tio n S u rv e y s of th e (Check C o lle c tio n S y stem . C o n tin e n ta l B ank fig u re s a re a s s u b m itte d to th e S u rv e y s. We’ll find a way. CONTINENTAL BANK 231 SOUTH LA SALLE STREET, CHICAGO, IL 60693 Continental Illinois National Bank and Trust Company of Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 24 Commerce Bank Conference Highlighted By Morton Sosland and Earl Butz By MIKE FREELAND Business Manager l t e r n a t iv e ideas to the present agricultural policy were readily available to guests of the Commerce Bank’s Correspondent Bank Conference held in Kansas City. Morton I. Sosland, editor and publisher of the “Milling and Baking N ew s,” described the set-a-side program as a disaster. He maintained it would create lower total income. Too much attention has been given to production controls, and not enough to consumption. The grain sector must be allowed to perform and succeed. Price setting only reduces usage. Mr. Sosland suggests the U.S. should allow for an export subsidy. He explains the cost for such a program is less than creating new markets. He went on to say the threat of export subsidy would probably be enough and that it may never have to be implemented. A American Food Machine Dr. Butz, former secretary of agriculture, said ‘‘the modern American Food Machine is perhaps the greatest single source of strength undergirding the unparalleled level of American living. It is also our number one single source of foreign exchange. At the same time, it is one Morton Sosland, publisher, M illing and Baking News. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of the real power bases undergirding our foreign policy. “The remarkable growth in the efficiency and productivity of Ameri can agriculture in the last generation forms the real basis for the general affluence we take for granted in America. “Even though the cost of food is a widespread source of complaint, the plain truth is that we Americans buy more food for a smaller share of our working day than ever before, and for less than any other nation. “As a nation, we now get our food for a little less than 17% of our take-home pay. This compares with 24% of take-home pay required for food just a quarter century ago. “Moreover, that 17% of takehome pay for food now buys a lot more services and extras than in former years. It includes all the built-in maid service in our modern food supply — frozen TV dinners, oven-ready pastries and rolls, processed potatoes, delicatessen items from the supermarket, and so on. On top of that, the 17% includes over one-third of our meals eaten outside the home. ‘‘The American family farm represents entrepreneurship at its best. It is here that we find a direct relationship between personal profit (or at least the hope of profit) and investment, innovation, risktaking, and just plain old-fashioned hard work and enterprise. “Agricultural science and develop ment, investment and innovation, profit and incentive can’t be turned on and off, willy nilly, in response to the vagaries of w eather and production from year to year. We are now face-to-face with the fact that the world’s number one problem is how to feed 80% more people in the next quarter-century. “Consumers the world around welcome a cheap food policy — and politicians respond, whether they’re capitalist or communist. As nations become less agricultural and more urban, the incentive base for the farmer becomes less certain. It Dr. Earl L. Butz, dean emeritus, Purdue University, and P. V. Miller, Jr., pres., Commerce Bank. becomes more susceptible to political pressures and special interest deal ings. ‘‘We m ust not dampen the incentives that have made our farmers the producers that they are. We must not signal to them in the language of price — the language they understand best — that we want less, not more. “Our nation — and indeed every nation of the world — must make the commitment to move agriculture and food to the front burner. It must be moved higher on the scale of priorities in both national policy and in capital allocation. Mr. Butz reminded bankers that not all farmers are in trouble, pointing to the cattle, hog, dairy, and soybean markets. He continued by saying that price supports leading to higher reserves would only COMMERCE BANK . . . [Turn to page 26, please] Fred Coulson, Jr., s.v.p., and Ed Lewis, v.p., Commerce Bank. 25 In correspondent banking services, w e’re the specialists. Here’s how First Chicago, a $21 billion banking corporation, can help you serve your customers more productively. You know what your correspondent banking n eed s are. You also know what services your present correspondent bank provides. Check this list of First Chicago's com prehensive services. See if there aren't many ways we can work together more productively. Then call a correspondent banker at First Chicago, (312) 732-4101, or write us. DATA PROCESSING Point-of-Sale Techniques Bank Accounting Services Bank Information Systems Electronic Funds Transfers CREDIT FACILITIES Holding Company Lines of Credit Participations: Upstream and Downstream Intermediate Term Credit Liquidity Lines of Credit Commercial Finance Services: Inventory and Receivable Financing Corporate Financing Advisory Services Leasing Activities and Analysis Credit Information Small Business Administration: Loan Counsel MANAGEMENT ASSISTANCE Loan Portfolio Review Techniques Economic Forecasting Profit Planning and Forecasting Marketing and Business Development Advice Personnel Assistance Operations Planning Organization Planning SPECIAL CORRESPONDENT SERVICES Annual Correspondent Conference Account Referrals Mini-conferences and Workshops, Special Events Planning Record Retention and Reconstruction Cash Management Consulting: Collection, Concentration. Disbursement and Control Visual Aids: Slides and Closed Circuit TV Production TRUST BANKING Personal and Corporate Trust Services Trust Investment Advisory Services Monthly Investment Services Stock Transfer and Shareholders Services Dividend Reinvestment PERSONAL BANKING ASSISTANCE Bank Promotions YES Card’“ Visa5 Savings Programs Automobile Leasing Program Bank-At-Work Direct Deposit Program OPERATIONAL SERVICES Cash Letter Clearings: End-Point & Float Analyses Coin and Currency Collections Money Transfer Federal Reserve On-Line Settlement Securities Custody Security and Coupon Collection Payroll Accounting Student Loan Servicing INVESTMENTS Government Securities Municipals Federal Agency Securities Federal Funds Repurchase Agreements Commercial Paper Certificates of Deposit Treasury Tax and Loan Accounts Money Desk Reviews Portfolio Analysis Services INTERNATIONAL BANKING Worldwide Locations Merchant Banking Money Market Instruments Letters of Credit Foreign Exchange Transactions Transfers and Remittances Ex-Im Financing MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 26 Automatic Transfer from Savings to Checking OKd Approval for commercial banks to offer automatic transfer of funds from savings to checking accounts, effective November 1, 1978, was given last month by the Federal Reserve Board, the FDIC and Comptroller of the Currency. Such automatic transfers could be effected only if the depositors sign a written agreement with the bank authorizing it to do so. FDIC Chairman George A. LeMaistre said, “the preauthorized transfer service is simply a logical extension of the present telephone service where banks are allowed to make transfers from savings to checking accounts if authorized to do so by a telephone call from the account holder.” Federal Home Loan Bank Board Chairman Robert H. McKinney immediately sharply criticized the Fed’s decision to approve these transfers, stating it “clearly demon strated that the Federal Reserve Board has usurped the power of C ongress.. . (and) has determ ined today that this power should be the excluisive preserve of the commercial banking industry, to the detriment of the homeowner.” The FHLBB has threatened court action against the decision. Profitability Spotlights Banciub Convention Banks can operate club checking program s at a profit because customers are willing to pay for the special services, delegates to BANCLUB Association’s recent annual convention were told. A series of speakers emphasized to the 400 convention delegates and guests that club programs must be operated at a profitable level. Club members expect to pay for the services and will accept higher monthly charges. “If there is a central theme to this convention, it is that you as bankers must price your services to bring a profit,” said Henry McCall, presi dent of BANCLUB’s administrative arm, Financial Institution Services, Inc. “You are in business to make a profit,” Mr. McCall said in his closing remarks to the four-day convention held in April at the Opryland Hotel in Nashville. “If you Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis don’t make a profit, then you’re out Long-term interest rates to be: of business.” higher 64% “BANCLUB members are willing lower 4% to pay; they expect to pay and they about the same 32 % want more services,” said Mr. Wheat prices to be: McCall, who founded BANCLUB in 51% over $2.50/bushel 1971. BANCLUB has become the 47% over $3.00/bushel nation’s largest special checking 2% over $4.00/bushel account program, with two million Corn prices to be: accounts in 1,400 banks. 47% over $2.00/bushel Banks adding automatic teller 47% over $2.50/bushel machines to a club’s amenities 6% over $3.00/bushel should consider a membership rate Cattle prices to be: hike to offset the ATM’s added higher 56% expenses, Steve McCullough, vice lower 13% president of Texas Bank & Trust in about the same 31% Sweetwater, Tex., said in outlining his bank’s move to an ATM In banking generally, I expect: program. Farmland prices to be: “We lost no accounts because of higher 44% the added ch arg e,” said Mr. lower 5% McCullough, whose bank increased about the same 51% its BANCLUB charge from $3 to The prime rate by December 31, $3.50 per month. “On a national 1978 to be: level, there’s less than a 1 % loss lower - 1 %; 6-0 %; 61/ 2 -l% ; because of additional costs on club 7-4%; 7V2-8%; 8-18%; accounts. But you have to prepare 8 ^2-49%; 9-15%; 9y2-2%; your customers for the increase. 10; higher-2 %; Also on the convention’s program The Fed Funds rate by December were updates on pending legislation, 31, 1978 to be: presentations of BANCLUB market lower-1 %; 5-0%; 6-3%; 6V2ing plans and a videotaped panel 12%; 7-45%; 7^2-20%; 8-13%; interview of U.S. Senate Minority 8V2-3 %; higher-3 % Leader Howard Baker. In my own bank, I expect at COMMERCE BANK . . . year-end 1978: [Continued from page 24] Total deposits to be: higher 94% insure that grain prices will stay low. lower Throughout the day bankers were about the same 6% introduced to various department Loan-to-deposit ratio to be: heads who shared with bankers the higher 54% services they offer the correspondent lower 5% accounts. about the same 41% The following table is the result of a survey of the over 400 bankers The need for overline assistance to present from 10 states: be: higher 33 % Looking at present conditions and lower 7% ahead to year-end 1978, I expect: about the same 60% General business conditions to be: Earnings to be: better 44% higher 60% worse 6% lower 6% about the same 50 % about the same 34% The rate of inflation in the U.S. economy to be: Does your bank plan to participate in better 1 % an electronic funds transfer system worse 71% during 1978? about the same 28% Yes 24% Unemployment to be: No 60% greater 20% undecided 16% less 20% about the same 60% If yes, will your efforts be done: in-house 9% Short-term interest rates to be: through participation with other higher 70% lower 17% banks 81 % about the same 13% or both 10 % 27 W e’ll H elp YOUR GOOD CUSTOMERS when YOUR requirements can't meet THEIRS . . . if you’ll RECOMMEND W ESTERN CAPITAL CORPORATION for personal, confidential loan brokering TO CONVERT SHORT TERM DEBT TO LONG TERM LOANS FOR Farm Purchasing • Leasing • Refinancing W ESTERN CAPITAL CORPORATION WESTERN CAPITAL BUILDING • 3035 HARNEY • OMAHA, NEBR. 68131 Specialists in Loan Analysis, Packaging & Placement NEBRASKA 1 800 642-9390 - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - TOLL FREE OUTSIDE NEBRASKA 1 800 228-2770 - - Northwestern Banker, June 1978 28 Convention Calendar June 12-14— Minnesota Bankers Associa tion 88th Annual Convention, Radisson Muehiebach, Bloomington. June 14-16—Wyoming Bankers Associa tion Annual Convention, Jackson Lake Lodge, Moran. June 18-21—Wisconsin Bankers Associa tion Annual Convention, Pfister Hotel & Tower, Milwaukee. July 8— District 7 AIB Leaders Conference, MGM Grand Hotel, Reno. July 15— District 10 AIB Leaders Confer ence, Denver. June 18-21—Wisconsin Bankers Associa tion Annual Convention, Pfister Hotel & Tower, Milwaukee. July 8— District 7 AIB Leaders Conference, MGM Grand Hotel, Reno. July 15— District 10 AIB Leaders Confer ence, Denver. July 15— District 11 AIB Leaders Confer ence, Indianapolis, Ind. July 20-22— Iowa Independent Bankers Association 7th Annual Convention, The New Inn, Lake Okoboji. July 23-28—ABA National School of Bank Card Management, Northwestern Uni versity, Evanston, III. July 31-Aug. 12— BAI School of Bank Administration, Graduate Program, Uni versity of Wisconsin, Madison. Aug. 4-15— Northwest Intermediate Bank ing Schools, Lewis and Clark College, Portland, Ore. Aug. 6-18— Colorado Bankers Association Colorado School of Banking, University of Colorado, Boulder. Aug. 12-18— BMA Bank Management School for Marketing Managers, Univer sity of Wisconsin, Madison. Aug. 14-25—ABA National Graduate Trust School, Northwestern University, Evan ston, III. Aug. 17-20—Independent Bankers Assoc iation of Minnesota, 17th Annual Convention, Arrowwood Resort, Alex andria, Minn. Aug. 23-25— Montana Bankers Association 75th Annual Convention, Big Sky. Sept. 10-15— BMS Loan Management Seminar, Indiana University, BloomingSept. 10-15— RMS Loan Management Seminar, Indiana University, Blooming ton. Sept. 11-16— Nebraska Bankers Associa tion Basic School of Banking, Nebraska Center, Lincoln. Sept. 13-15—Association for Modern Banking in Illinois Annual Meeting, Continental Plaza, Chicago. Sept. 17-20— BAI 54th Annual Convention, Hilton Hotel, New York. Sept. 17-20— BMA Trust Marketing Work shop, Copley Plaza, Boston. Sept. 17-29—ABA National Instalment Credit School, Second Session, Univer sity of Oklahoma of Norman. Sept. 24-26—ABA National Personnel Conference, Denver Hilton, Denver. Sept. 24-26— Iowa Bankers Association 92nd Annual Convention. Sept. 24-27— NABW 56th Annual Conven tion, Caesars Palace, Las Vegas. Sept. 25-27—ABA Secondary Mortgage Market Workshop, Chicago. Oct. 15-19— BMA 63rd Annual Convention, Palmer House, Chicago. Oct. 17-20— Independent Bankers Assoc iation of North Dakota, 11th Annual Convention, Kirkwood Motor Inn, Bismarck. Oct. 21-25—ABA Annual Convention, Honolulu, Hawaii. Oct. 22-26— Independent Bankers Assoc iation of America 12th Annual Seminar for Junior Bank Officers, Ball State University, Muncie, Ind. Oct. 29-Nov. 2— BAI Bank EDP Audit Conference, San Francisco. Nov. 5-8— RMA 54th Annual Convention, Dallas, Texas. Nov. 8-10—ABA Midcontinent Trust Conerence, Drake Hotel, Chicago. Chairman LeMaistre announced the appointment of W. Harlan Sarsfield as regional director of the Chicago FDIC office. He succeeds James A. Davis, who has been appointed controller at FDIC head quarters in Washington. Mr. Sars field began his FDIC career on the examination staff in Iowa in 1942 and since 1966 has been assistant regional director of the Chicago region. Continental Illinois Offers 8 1/ 2 % Notes The public offering of $100-million Continental Illinois Corp. 8 V2 % notes due November 1, 1985, at 99.75% to yield 8.546%, plus accrued interest from May 1, 1978, was announced by the Chicago based bank holding company. Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are managers of the nationwide underwriting group for the notes. Net proceeds from the sale of the new notes will be added to the general funds of the corporation. The notes are not redeemable prior to June 1, 1985, after which the notes may be redeemed at the option of the company at the principal amount, plus accrued interest. To Serve on ABA Housing Committee ANKERS who will serve as B officers and members of the housing and real estate finance division executive committee of the American Bankers Association were elected during a general session of the National Conference on Real Estate Finance last month in William M. Isaac Is New FDIC Director Washington, D.C. ILLIAM M. Isaac has been National Corporation, a holding These bankers will take office at appointed by President Carter company, and two of its subsidiaries, the ABA Annual Convention this to a six-year term as one of three First National Bank of Louisville year in Hawaii, October 21-25. directors of the Federal Deposit and First Kentucky Trust Company. Elected to serve as chairman of the Insurance Corporation and was Since 1975 he has also been secretary division’s executive committee was sworn into office April 24. He joins of the three companies. Robert W. Irving, senior vice FDIC Board Chairman George A. Mr. Isaac announced the appoint president of Equitable Trust Compa LeMaistre and Comptroller John G. ments of Edwin B. Burr as assistant ny, Baltimore, Md. He will succeed Heimann (ex officio board member). to the director and David B. Perry Russell, senior vice president Mr. Isaac, 34, received his law Jacobsohn as special assistant to the of the First International Bank of degree from Ohio State University in director. Houston. 1969, practiced corporate and Mr. Burr, 44, has been regional The newly elected vice chairman of banking law in Milwaukee, Wis., director of FDIC in Boston. Mr. the committee will be John Y. Van until 1974, and since that date has Jacobsohn, 34, was director of the Bibber, senior vice president of been vice president and general securities disclosure division at the Liberty National Bank and Trust counsel for the First Kentucky Comptroller’s office. Co., Louisville, Ky. W Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis With our computer-aided design, your new financial facility w ill look like this* 2 2 2 2 5 5 5 5 5 5 5 5 2 2 2 2 5 5 5 5 5 5 5 5 2 2 2 2 5 5 5 5 5 5 5 5 2 2 2 2 5 5 5 5 5 5 5 5 2 2 2 2 5 5 5 5 5 5 5 5 2 2 2 2 5 5 5 5 5 5 5 5 2 2 2 2 5 5 5 5 5 5 5 5 4 4 4 4 4 1 1 5 5 5 5 5 4 4 4 4 4 1 1 5 5 5 5 5 4 4 4 4 1 1 5 5 5 5 5 5 4 4 4 4 1 1 5 5 5 5 5 5 4 4 4 4 1 1 5 5 5 5 5 5 4 4 4 4 1 1 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 29 4 4 4 4 4 4 4 4 4 4 4 4 Before it looks like this* A t B an k B uilding C orporation, you can see your n ew and exterior layouts, traffic flow and parking. B y co n finan cial facility o n a com puter printout before you in sidering every variable, w e can spot and correct potential vest in expensive architectural problem s before they b eco m e draw ings. We call it C om puterNW 678 i^j costlyNmo istakes. A id ed P rob lem Solving. It’s a n other com p any offers other o f our front-end services C om puter-A ided P rob lem that h elp us effectively plan and Solving, because th ere’s n o other design your finan cial facility. com p an y quite like B ank Building We’ll build you a business. W ith the h elp o f the c o m C orporation. In the past 65 years, puter, B B C p lanning specialists w e’ve planned, designed and built Please send information about how w ill analyze and evaluate such or rem o d eled over 6 ,2 0 0 banks, you can help build my business. factors as site location, interior savings and loans and credit B ank B uilding C orporation u n ion s. W e’d like to do yours next 1130 H am pton Ave. St. Louis, M O 6 3 1 3 9 T elep h on e: (314) 64 7 -3 8 0 0 r Bank Building <C^| Corporation N am e____________________________________ Title ____________________________________ F ir m ____________________________________ Address _________________________________ . State .Zip City _______________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 30 What’s New NEW brochure detailing oppor tunities for lending institutions A in the area of property improvement matched to the guard key of boxes already on the premises. Attractively styled of all steel with loans is now available from Insured a low-maintenance textured gray epoxy finish, these Mod-22 units Credit Services, Inc. Entitled “The Risk-Free Profit allow users to start with a small Center,” the attractive brochure number of boxes and expand safe features information on the property deposit facilities as needed. Nests improvement loan field in general as may be ordered in eight different well as specific ways ICS can tailor models, with box openings from 2 x 5 programs to take advantage of the inches through 10 x 10 inches. For additional flexibility, a unique market. To obtain a copy, write to Insured numbering system permits nests to Credit Services, Inc., 307 N. be held in inventory for immediate Michigan Avenue, Chicago, IL shipment. When an order is received, the specified numbers are inserted in 60601. satin chrome frames attached to the doors. This design also makes TOTALLY new concept in safe relocating and renumbering of nests deposit box locks has been easy and economical. incorporated in the new Mod-22 line Other features of the security-ori released by LeFebure Corporation, ented Mod-22 system include: doors Cedar Rapids, la. recessed for extra protection against prying, attack-resistant hinge design and heavy-duty, reinforced steel bond boxes. All nests measure 32 5/8 inches with, 22 1/4 inches high and 24 inches deep. ments of varying thickness and condition without any problem, with uninterrupted ease. Two convenient read-outs give both the batch amount and accumulative total. All endorsing “Countesses” fea ture a “dry ink roll” that produces a sharp, consistent image — without smudging or smearing even when changing the roll. Exterior finish is a soft desert tan. For further information about the new Models 825, 827 and 829 RANDT, Inc., manufacturer of “Countesses,” contact Brandt, Inc., coin, currency and document Watertown, Wisconsin 53094. processing equipment, has announ ced the addition of three new models HE new 1978 editions of the Iowa to its line of “Countess” machines Bank Directory and the Nebraska designed for organizations requiring high-speed, automated assistance in Bank Directory have been mailed. daily document handling operations. Both editions feature a new format, The three models handle currency making it easy to obtain pertinent The unique lock design, originally and other paper items — as large as information for individual banks configured for use in the high 4x8 inches — at operator-controlled throughout the two-state area. As of December 31, 1977, national security Trident submarine strategic speeds up to 1,200 items per minute. weapons system, provides a new They feature a doubles detection banks in Iowa had $4,484,631,000 in measure of convenience and economy device with indicator light; an deposits and $2,965,036,000 in for safe deposit box installations, extended stacker for better access loans. State banks in Iowa had w ithout compromising custom er and visibility of documents, and a $9,792,038,000 in deposits and variable speed control. They can $6,792,038,000 in loans. There were security. 99 national banks and 553 state When a Mod-22 box is surrendered batch in quantities from 1 to 999. Model 825 counts currency, and banks. by a customer, qualified personnel National banks in Nebraska at may — with the help of a specially endorses and cancels checks and food year-end reported deposits of engineered key — reset the customer stamps with maximum ease. Model 827 counts and batches $4,385,479,000 and loans of 7-tumbler lock right on the premises, currency, and detects counterfeit $2,863,044,000. State banks showed in the presence of a new customer. The UL-listed locks need not be bills by scanning them for authenti $3,005,923,000 in deposits and disassembled or replaced and lock city. The machine stops automati $1,964,939,000 in deposits. There cally when a suspected counterfeit were 117 national banks and 333 smith services are not required. state banks. bill is detected. The guard key also may be reset at The Iowa Bank Directory sells for The Model 829 is designed to any time. Besides providing added internal security, this option enables count a wide range of currency from $9 and the Nebraska Bank Directory sells for $6. Orders can be sent the Mod-22 nests to be moved to a new to mutilated. They handle currency and docu directly to the Northwestern Banker. new location and immediately A B T Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 24-HOUR SERVICE —the results 5 years later A Northwestern Banker Interview with STANLEY W. EVANS, President Northwestern National Bank Sioux City, la. EARLY a decade ago, directors and management N of the Northwestern National Bank in Sioux City made the decision to move the main office of the bank to a central downtown location and retain the old building in the Sioux City stock yards area as a banking office. Construction of a new building on a half-block in downtown began a year or two later and it was opened in October, 1972. Topography of the site was ideal for extensive drive-through facilities on the lower level of the building and a large parking lot on an upper level immediately adjacent to the main banking floor. To take full advantage of its new facilities and to compete for a larger market share, Northwestern management initiated 24-hour teller service. In the following interview, President Stan Evans describes the results of this unique service after more than five years’ experience with it. Five years ago, you became the first banker in ■ Iowa to offer 24-hour Live-Teller Drive-In service. Five years later, you’re still the only one. Why do you keep it up? The question really should be, why are we still ■ the only one? I ’m glad it’s exclusive with us because it provides us great competitive advantages. 24-hour Teller service is a feature that our customers really appreciate and really make use of, and we attribute much of our growth to the fact that we have this unique service. According to your Statement of Condition, your ■ footings have almost tripled in those five years. Q A Q https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis What makes you think that 24-hour Teller service was responsible? We recognize that other factors have contributed ■ to that growth, but we feel that we have to give the 24-hour service credit for a lot of it. - Our new account applications encourage our personnel to ask new customers what brought them to Northwestern. Time and time again, the answer is “Your 24-hour service.” Many times they add that they don’t ever expect to use the service, but it’s such a comforting thought to know that their money is available any hour of the day or night. So, you see, there is a psychological advantage as well as a practical one. How practical is it? A Q. from its use, it’s a surprisingly practical A . Judging service. In all candor, I would profess to some surprise about that. We frankly felt that the 24-hour service would be of more promotional value than anything else, since it is so highly unusual. And it has been a highly promotable, attention-getting, imagebuilding device. But, within a very short time, people were using it, and within a very few weeks after we started the service, we were serving more cars in so-called “non-banking” hours, than we were in the conventional banking schedule. And that is a trend that has continued. Sioux City doesn’t seem like much of an after■ midnight town. Do you have customers in those early-morning hours? You bet. Our car count through those hours ■ often nears the 100 mark. And, you’re right, Q A Northwestern Banker, June 1978 34 Sioux City is pretty quiet after midnight, and you might get the impression that there wouldn’t be a hundred cars moving in the whole town that time of night. But, they’re there, and they stop by Northwestern’s Drive-In. What kind of people use the service after ■ midnight? All kinds. After the first few months of ■ spectacularly successful operation, we grew curious about that. So, I and another bank officer would station ourselves in the drive-in, just to ask people why they were banking that time of night. There was no discernible pattern to the answers, either in reasons for late-night banking, or stereo-typed customer patterns. They were from all occupations and professions, seemingly of all ages and economic strata. Some told us they had just been to the laundromat and stopped at the bank on the way home; or were visiting a hospitalized spouse and had stayed late. But, most often, when we asked “Why are you at the Bank at this hour of the night?”, the answer we received most often was “Because it’s open.” Wouldn’t machines do the job just as well, and ■ with lower costs? If you have tried those machines, you know they ■ don’t do the job well at all. Even if they’re working — and often they’re not — their services are limited. With Live Tellers, our customers know they can perform almost any financial transaction — even get a check cashed — any hour of the day or night, 7 days a week. But the most important point is, that those machines have a reputation of being undependable, and evidently it’s a well deserved reputation. D o you really think the money machines are out■ of-service that often? lt doesn’t make any difference what I think — ■ the customers think that they don’t work, and Q A Q A they don’t trust them. Our advertising shows an attractive teller over the slogan, “Northwestern’s Money Machines always work — beautifully!” And they do! Why, we even had a relative of the president of another bank switch her accounts to us one Monday, because she said she had spent Sunday afternoon trying to get money out of her cousin’s vaunted 24-hour mechanical teller. She brought us some nice deposits because, as she said, “Relative or not, I ’ll be damned if I ’m going to spend my weekends arguing with a blankety blank machine!” H ow about those tellers you mention? Any ■ staffing problems for those unusual hours? The midnight to 8 a.m. shift has been handled by ■ the same lady for all the years we have had it. I don’t think she would change shifts if we wanted her to. For the evening shifts, we rely a lot on students from Morningside and Briar Cliff colleges who are glad to have the hours which don’t conflict with their classes. D o the wee hours bring on any special problems ■ with the type of customers who show up for service? No. And that might be a little surprising, too. I ■ suppose you’re thinking late-night drunks might cause some trouble. As a matter of fact, when the Des Moines Register wanted to do a feature about our unusual banking hours, we asked our post-midnight teller to be thinking up unusual incidents which would make good copy, and she couldn’t think of any. It seems to be pretty routine — perhaps our dogs keep people well behaved, even at 4 o’clock in the morning. Tell us about those dogs. Q A Q A Q They are carefully selected, and subjected to A ■ modified K-9 Police Training, with periodic re-training. They accompany our guards day and night, A with a guard and his sentry dog in full view adjacent to the Drive-In; or, if it’s necessary to leave the area, he is After m idnight, cars still move through the Northwestern’s Drive-In. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 D o g s a c c o m p a n y t h e g u a r d s d a y a n d n ig h t . in constant radio contact with the tellers. They’re beautiful animals, and they create a lot of conversation for us, so they have promotional value as well as being valuable security instruments and deterrents to trouble. What special problems are created by your extra hours of service? A Well, problems are very minimal, and were from ■ the start. I suppose you could regard the necessity for extra personnel as a problem, but since they were added only after the patronage created the need, that probably isn’t an accurate characterization. We planned the building, as we build it, so there is a separate control center, serving all teller areas, including the drive-in. Such pre-planning minimized our problems, but setting up for 24-hour service in a structure which hadn’t been planned to accommodate it would be a real hassle. Y o u say extra personnel were added only after Q ■ the need was created. How could you start 24-hour service without extra personnel? A We had a night transit crew, anyway. Initially, ■ we just trained one of them for teller work to take care of what we thought would be only an occasional customer. When it became obvious that public acceptance of the added hours of service was going to be overwhelming, we were only too glad to arrange for the extra tellers to handle all the new business generated. You seem to be pretty much anti-automatic tellers. A Automation is a marvelous thing in banking, but ■ our experience proves that, when it comes to tellers, people want the real thing. The money machines have been oversold, and probably under-engineered, judging from the constant problems we hear about from customers of other banks. The industry seems to regard automatic tellers as the wave of the future; we don’t think so. Certainly not for the foreseeable future. Experience, surveys, and studies around the country prove that people just aren’t ready for a machined, checkless financial system. When they get ready, we’ll be ready. Meantime, we feel we’re a long way ahead of the game with Live-Teller service around the clock with none of those frustrating machines that always seem to be malfunctioning. Q Northwestern National Bank of Sioux City ■ appears to be operating in certain areas which are contrary to what bankers generally are offering. To what do you attribute this attitude? A As a student of the economy, I know that any ■ one success depends on customers and those who patronize you and use your services. It is quite apparent that you direct your thinking and your efforts to those areas in which you have customer appeal or customer acceptance. A good example of this is how difficult it has been to persuade our customers that we bankers do not want them to use checks but rather we prefer the checkless society. For over 25 years we spent millions of dollars trying to convince our customers that every man, woman, and child in America should be afforded the advantages of a checking account and when they all believed what we had told them and we had a monopoly on the service, we turned their thinking to the area that we wanted to give away this monopoly and make them part of some fantastic plastic card arrangement that we would share with all of our competitors . . . the feelings of the customers were of no concern. To me, the same thinking is what generates the use of our 24-hour Live-Teller Service. Q. A few years ago, a savings and loan in Lincoln, ■ Nebr., in cooperation with the Hinky Dinky grocery people, upset banking and created great concern. How did you react to this situation? A Our reaction in Sioux City would be one that we ■ welcome the Hinky Dinky—Savings & Loan type of competition. This would give us an opportunity to focus additional attention to our 24-hour, Live-Teller service and emphasize the fact that we are open when the Hinky Dinky store is closed and further, that our customers do not of necessity share any of their financial dealings with the clerk in the grocery store. □ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Q Q Northwestern Banker, June 1978 36 H o w w e fo r m e d o u r e x e c u t iv e in c e n t iv e p la n By C. BERNARD JACOBS Chairman & Chief Executive Officer National City Bank Minneapolis, Minn. B ANKING is a people intense industry. When we were organizing our bank to open in June, 1964 with $3 million of capital, we interviewed 400 people and hired an initial staff of 42. We had a published list of objectives placed in the hands of each of the employes. One of these objectives from the beginning has been that no more than 18% of all income shall go into salaries. We’re presently at 16% and our employes THE AUTHOR— A f t e r w o r k in g f o r C o n t i n e n t a l B a n k o f C h ic a g o f o r 2 8 y e a r s , 2 0 o f w h ic h w e r e s p e n t in t h e n a t io n a l d iv is io n c a llin g o n b a n k s in N in t h F e d e r a l R e s e r v e D is t r ic t s t a t e s , C . B e r n a r d J a c o b s a s s is t e d in t h e o r g a n iz a t io n o f N a t i o n a l C it y B a n k o f M i n n e a p o lis in 1 9 6 4 . H e w a s t h e b a n k ’s f ir s t p r e s id e n t a n d c o n t i n u e s t o d a y a s c h a ir m a n a n d c h ie f e x e c u t iv e o f f ic e r . H e h a s b e e n a f e a t u r e d s p e a k e r a t s e v e r a l b a n k e x e c u t iv e s e m in a r s o n t h e s u b je c t o f p e r s o n n e l m o t iv a t io n . In t h e a c c o m p a n y in g a r t ic le h e s h a r e s w it h o u r r e a d e r s s o m e o f t h e s t e p s t a k e n d u r in g h is b a n k ’s o r g a n iz a t io n a l p r o c e d u r e , a s w e ll a s f in a n c ia l p o lic ie s e s t a b lis h e d to p r o v id e c o n t i n u in g p e rs o n n e l m o t iv a t io n , e s p e c ia lly th r o u g h h e r e in d e t a il . th e e x e c u t iv e Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in c e n t iv e p la n h e d is c u s s e s know this. We set our salary ranges on the bank size just higher than us and established a fringe benefit program as quickly as we could. All of our employes had the courage to believe we would establish benefit programs at least equal to or better than other banks in the community, where most of them had worked before joining us. They knew that achieving this would require a unified effort of the part of all staff members. All employes work 37 hours and 45 minutes per week. None of our tellers, for example, is in at 8:30 a.m. and out at 3:00 p.m. —they have other duties to perform. From the outset we established a stock option plan for key employes with six of the original staff participating. Although we continue to have a stock option plan, our stock presently has no ready market and the changes in tax laws have made this form of compensation relatively unattractive. Profit Sharing Plan Our first incentive program was a profit sharing plan effective January 1, 1969. It was a simple plan that provided for eligibility up to 50% of salary on the January 1 following one full year of employment. After four full years, an employe would participate for 100% of salary. Each participant was fully vested and could take his or her share in cash except that after four years 50% had to be deferred until retirement, death, or separation. The plan called for allocation of profits after first setting aside a six per cent return on capital for the shareholders. From 1969 through 1976 the maximum permissible amount was contributed from profits with the effect that partial participants received 10% of salary and full participants 20% of salary in profit sharing. Pension Plan Effective January 1, 1970, we also established a non-contributory pension plan under which, after 35 years of service, retirement can be taken with 65% of the last five years’ average salary. This is a better than average pension program which, of course, is mounting in costs with increased salaries and ages of our staff. In 1970 we started a Management by Objectives program, using the format advocated by the American Management Association with attendance at the President’s Association, Top Management Briefings and Middle Management sessions. From these we established job descriptions and standards of performance. Both are used in our new incentive program. New Study Begun Late in 1975, we came to two conclusions: 1. The automatic maximum of 10% or 20% of salary in profit sharing was not really acting as the incentive that it was intended to be. 2. Within the next few years the combination of pension cost and profit sharing would be in excess of the 25% of salaries permitted under IRS regulations. This would mean that as pension costs got higher, we would have to cut the profit sharing allocation, which would also have a detrimental effect and be a deterrent rather than a spur to greater profits. We concluded that the younger employees of the bank, those under 40, were either the “Now generation” or else were people with growing families 37 a M11S0H adjuster w ill handle your hail claims as if they were his own! your customers deserve that! ‘The Premium Won't Break You . . . A Loss Might!” r \'c? HAIL ° 0 INSURANCE o o o\oA \ \ JIM DAWSON BOB DAWSON LYLE ASKEROOTH TOM DAWSON CHUCK FOSBERG 2 0 S O U T H E IG H T H S T R E E T BOX 1820 FARGO, ND 58102 If you are NOT a Dawson agent, call our office collect at 701-237-3311 or (N.D. toll free 800-342-4848) and we will send one of our key people to visit with you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 38 “Under our new executive incentive plan we carefully selected those who could have a direct bearing on the total profits, a total of 19 people from our staff of 160.” who would prefer to have larger incomes rather than defer it. Most importantly, we also felt that the key people in the bank who could directly affect profits should be properly rewarded, based on individual performance. At that point we hired a consulting firm to interview a cross-section of our management staff to confirm whether or not we were on the right track. They concluded we were and suggested several alternate plans from which we adopted an incentive compensation plan effective January 1, 1977. We discontinued the profit sharing plan after 1976 and made the transition by giving a one time salary increase of 5% to all partial participants and a 10% increase to the full participants. This was over and above the normal merit increase granted under our regular program. Executive Incentive Plan Under our new executive incentive plan we carefully selected those who could have a direct bearing on the profits, a total of 19 people from our staff of 160. Most of these people had helped to formulate overall three year objectives for the bank back in 1976, and are an integral part of setting our annual targets and profit plans. Each person, in consultation with his superior, develops and agrees to a set of personal objectives for the coming year. The new program is geared to compensating each person based on performance in reaching his or her goals as well as overall performance on behalf of the bank. The program works like this: TARGET BONUS AWARDS C h a ir m a n o f t h e B o a r d P r e s id e n t S e n i o r V ic e P r e s id e n t s O th e r 30% 30% 25% 20% Target Bonus Fund C h a ir m a n P r e s id e n t S r . V . P . s ( 5 a t $ 4 0 ,0 0 0 ) O t h e r (1 2 a t $ 2 5 ,0 0 0 ) 3 0 % o f $ 1 0 0 ,0 0 0 3 0 % o f $ 7 0 ,0 0 0 2 5 % o f $ 2 0 0 ,0 0 0 2 0 % o f $ 3 0 0 ,0 0 0 T o ta l $ 3 0 ,0 0 0 2 1 ,0 0 0 5 0 ,0 0 0 6 0 .0 0 0 $ 1 6 1 ,0 0 0 Actual Bonus Fund R e tu r n o n A v e r a g e C a p it a l 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% over Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis % o f T a rg e t B o n u s F u n d G e n e r a te d 10% 25% 40% 55% 70% 85% 100% 115% 130% 145% 160% 175% 190% 200% The plan calls for taking the salaries of those involved and figuring the percentage of each salary to the total. The resulting total of these amounts represents the target bonus award as a % of base salary. For each person to get his target bonus, he or she would have to have had a satisfactory overall performance including achieving the pre-set objectives. We are trying to achieve a 15% return on capital which would permit the bonus fund to equal the target fund total. On the bottom of the chart you will see that below a 9 % return on average equity there would be nothing allocated to the bonus fund. On the other hand at 22%, or better, the allocation could be 200%. Bonus Fund Example Let’s take an example: • Assume a 15% net after taxes. • Percent of target bonus fund is 100%. • Fund of $161,000 would then be divided as shown: C h a ir m a n P r e s id e n t $ 3 0 ,0 0 0 2 1 ,0 0 0 T o ta l $ 5 1 ,0 0 0 R e m a in d e r w o u ld b e d iv id e d a m o n g a ll o t h e r p a r t ic ip a n t s b a s e d o n a d e t e r m i n a t io n b y t h e c h a ir m a n a n d p r e s id e n t o f in d iv id u a l p e r f o r m a n c e in r e la t io n t o p r e d e t e r m in e d a n n u a l g o a ls . In d iv id u a ls s h a ll b e r a te d o n a s c a le f r o m 5 0 to 1 5 0 ; 1 0 0 r e p r e s e n t i n g a v e r a g e p e r f o r m a n c e . Officer Performance Bonus 1 S r. V ic e P r e s id e n t 3 S r. V ic e P r e s id e n t s 1 S r. V ic e P r e s id e n t O u t s t a n d in g A v e ra g e B e lo w A v e r a g e $ 1 5 ,0 0 0 3 0 ,0 0 0 5 ,0 0 0 O th e rs : 3 a t $ 7 5 ,0 0 0 6 a t $ 5 ,0 0 0 3 a t $ 2 ,5 0 0 O u t s t a n d in g A v e ra g e B e lo w A v e r a g e T o ta l G ra n d T o ta l 2 2 ,5 0 0 3 0 .0 0 0 7 .5 0 0 $ 1 1 0 ,0 0 0 $ 1 6 1 ,0 0 0 Actual Fund Distribution Now, here’s what actually happened in 1977, our first year of operation. The bank earned 11.36% on average equity which equaled 45.4% of the target bonus fund. The actual dollar amount allocated was just over $72,000. The individual allocations ranged as follows: 2 at 110% 10 at 100% 3 at 90% 2 at 80% 1 at 75% 1 at 50% Under the plan 50% was paid in cash before January 31 of this year. The remaining 50% has been deferred for one year but earns a 6% interest rate during that time. If a person voluntarily leaves before the year is over the deferred amount is forfeited. One other advantage of this type of plan is that it does not require I.R.S. approval. On the whole the plan has been very well received, but it will require more seasoning to truly test its effects. □ 39 AIB To Meet in Denver SHREW D BUYERS AUTOM ATE W IT H A U T O M A T IC C O IN The Denver Chapter, American Institute of Banking, will host the annual District Leaders Conference at the Marriott Hotel on Saturday, July 15, 1978. Attending will be approximately 400 delegates from various chapters in District 10 located in Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, and North and South Dakota. Co-chairmen are Ron Robinson, president of the United Bank of Lakewood, and Wayne Meider, vice president of Continental National Bank. Morgan Guaranty Says GNP Likely To Lag $16 Billion The 1978 gross national product is likely to be under official projections by $16 billion - chargeable to “last winter’s freeze, the coal strike, and whatever else contributed to the shortfall in first-quarter produc tion.” That’s the assessment of Morgan Guaranty Trust Company economists, who calculate the GNP loss to be equal to $200 for each family in America. The New York bank economists, writing in the May issue of The Morgan Guaranty Survey, note that first-quarter output of goods and services should have been at an annual rate of $1376 billion (in 1972 prices) to be in line with the January forecast of the President’s Council of Economic Advisers (CEA) of a 1978 real GNP of $1400 billion. But growth in the first quarter amounted to only $1358 billion, according to preliminary reports. To make up for the growth lost in the first three months of this year and get back on the 4 3A % trendline called for by the CEA would take a second-quarter GNP increase over the first quarter at more than a 10 % annual rate, the publication states. A more realistic expectation, in the view of Morgan Guaranty’s economic staff, would be a IV 2 % rate of increase in the second-quarter GNP; this “could reasonably be followed by the CEA’s 4 3A % rate in both the third and fourth quarters.” These rates of growth, the survey concludes, would result in a 3.9% year-over-year increase in real GNP, instead of the original CEA projection of a 4.7% gain in annual GNP, 1978 over 1977. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A U T O M A T IC C O IN WRAPPERS ■ Precision made on special machines from finest quality materials. ■ *Patented Red Bordered W indows automatically indicate the total amount and denomination of contents. ■ Diameter of coin automatically positions value of contents in red window openings. ■ Save tim e for tellers, buyers, stockkeepers and depositors. Eliminate errors. ■ For years a favorite with leading banks and financial institutions. ■ Wrap all coins from 10 to $1.00 in following amounts: 500 in pennies $10 in quarters $2 in nickels $10 in halves $5 in dimes $20 in dollars ■ Packed 1,000to a box. Tapered edges. Available Imprinted. For details on* other high quality "Steel - Strong" Coin Handling Products, call your dealer or send coupon. The C. L. D O W N E Y C O M P A N Y / HANNIBAL, M IS S OU R I, DEPT. N PLEASE SEND FREE DETAILS ON "STEEL-STRONG" COIN HANDLING PRODUCTS TO: 7 7 i/e_ N a m e _______________________________________ _ F ir m _________________________________________ A ddress _____________________________________________ _ C ity ----------------------------------------------- ------------------------------- S ta te . AROUND MONEY THE FINEST IS "STEEL-STRONG” Northwestern Banker, June 1978 40 VPtf T 0 „ r 0R 0» of MEMO If rue n in th di<[]if~ target date • • • July 1, 1978 CHANGE in the routing number format in the lower portion of checks will be introduced nationwide July 1 and will affect all financial institutions. This change from an eight digit to a nine digit routing number will permit computers to automatically reconstruct a single digit which cannot be read by reader/sorter, and to detect and reject misreads as is currently done by many banks and processing centers in the account number field. This change is the result of a joint effort by Bank Administration Institute, the American Bankers Association and the Federal Reserve System to reduce the number of check processing exception items. The monetary importance of this venture is clearly visible from a BAI 1973 study which showed that three of every 25 checks written became exception items (MICR rejects, return items and adjustments) which increased direct check processing cost by 25% or $285 million. BAI projected that cost would grow to $1.6 billion by 1980 unless remedial action was taken at once. Research Produced Solution BAI did just that by initiating a study that soon brought in the ABA and FRS. By May 1977, they announced approval of a plan to insert a “check digit” in the routing number field in the MICR-coded band in checks. The study had shown that a significant total of their routing number rejects was associated with the A Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis inability to read a single MICR digit within the field. Addition of the ninth number will make it possible to reconstruct that missing number as part of the normal processing run. The check digit will also be used to detect misreads, thereby reducing the extent to which such items are misrouted. The current routing number format consists of nine MICR positions —the four-digit FRS routing symbol, a dash, and the four-digit ABA number. The new format will retain the nine positions by deleting the dash and adding a check digit at the end. This new number has been calculated and can be found in the 1975 or later editions of the Rand, McNally “Key to Routing Numbers.” These nine digit numbers also appear for each bank listed in the 1978 editions of the Iowa and Nebraska Bank Directories published by the Northwestern Banker. The Joint Industry Task Force of the three initiating groups began notifying check processors and financial institutions of the change last fall, with the request that the nine digit numbers be imprinted on checks starting July 1—not before. Checks printed before then with eight digit numbers can be processed after July 1 until supplies are exhausted. THE NINTH DIGIT . . . [Turn to page 44, please] 41 SPEAKERS a n d h o s t s a t C o n t in e n t a l B a n k o f C h ic a g o f i v e - s t a t e c o r r e s p o n d e n t b a n k s e m in a r s in c lu d e d , le f t t o r ig h t : George P. Dekker, John B. Tingleff, v .p . — h e a d o f f i n . in s t i t . d i v . ; Jeanne Czarnecki, m g r ., e d u c a t io n a l s e rv . d iv .; Larry Frowick, v . p . ; J. Michael » Baird, b k g . o f f . ; William L. Hood, Jr., a t t y . ; Kent Velde, c o m m . b k g . a s s o c ., a n d H. Jack Moors, c h m n . , C a p it a l C it y S t a t e B a n k , D e s v .P -; M o in e s , a n d c h m n . , C it iz e n s S t a t e B a n k , L i n c o ln , N e b r . Labor Reform Law a Primary Topic at Continental Bank of Chicago Seminars By BEN HALLER, JR. Editor C j,. t ■** J ï- ’ T H * „ ^ ONCERN with administration policies, Congressional bills and regulatory action dominated the Continental Bank of Chicago’s correspondent bank seminars last month. The bank again took its team of in-house, experienced officials to meetings in outstate Illinois, Indi ana, Iowa, Michigan and Wisconsin, then concluded the annual series with a conference in Chicago. This y ear’s theme was “ Perspective 1978.” Leading the staff of host personnel and participating as one of the speakers was John B. Tingleff, vice president and head of the financial institutions division, which includes responsibility for all correspondent bank and thrift institutions relation ships in the above states and Ohio. His talk stressed the importance of directors understanding their re sponsibilities, including the need to ask for, read and understand all records pertinent to those responsi bilities and not leave them to be included in a general report submitted by management. H. Jack Moors was one of two speakers not affiliated officially with the bank. As chairman of Capital City State Bank in Des Moines and Citizens State Bank in Lincoln, he drew on his 21 years of banking experience to discuss “How to Use Your Board of Directors Effectively.” Directors, he said, should bring sound business sense, help establish https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sound policy, represent the interest of depositors and stockholders fairly and be capable of bringing business to the bank. Michael F. Rosenblum, a partner in the law firm of Mayer, Brown & Platt, and a specialist in labor law, pointed out the highly adverse ramifications of the Labor Reform Act (H.R. 8410) which was passed by the House and was expected to be discussed on the Senate Floor early in May. The bill, he said, definitely was written to favor union organizing and can cut the time as short as 21 days from the time a union organizer shows up until an election takes place. Among other things, the bill states th a t an employer who addresses his own employes during the organizing period will be forced to provide an equal opportunity on company time to the union to address the same employes. Mr. Rosenblum also said various federal agencies overseeing discrim ination laws of all kinds are gradually being centralized and will wind up under the aegis of one super agency in charge of all compliance within three to four years. He further reviewed what to do and what not to do when the union shows up in front of the bank. The present Harris Bank case, he says, is considered by many to be a landmark case in labor law history. The suit is costing Harris Bank thousands of dollars and is expected to drag on for a long time—several years. Edward H. B oss, Jr., vice president in the C ontinental’s economic research division, expects a strong rebound in the economy during the second quarter, as much as 9%, and about 5% in the second half of 1978, for a year-long growth of 4.4%. He pegs inflation at 6.5% for the year, unemployment at 6% by year-end and corporate profits about 10% or less. He expects the balance of payments to drop from $31 billion to the $20-$25 billion range, with the dollar having now seen its worst. Treasury borrowing this year will be competing with business for borrowed money. The prime, he feels, will move to 8 'A % by mid-May and be at 8 3A% by year-end. The stock market could end the year in the 950 to 975 range. William L. Hood, Jr., of Continen ta l’s corporate counsel division centered much of his legislative attention also on the Labor Reform Act, stating it will affect small businesses and banks more than any other sector. He predicts an all-out campaign by unions to organize banks if they are given the free rein provided in H .R. 8410. His assessment of the Carter Admin istration’s performance and future outlook was very bleak. He said Washington people look for an immediate shakeup in the White House staff and in some of the Cabinet positions, with Treasury Secretary Blumenthal a prime candi date for replacement. Jeanne Czarnecki, manager of Continental’s educational services division, gave a brief presentation on Continental’s widely accepted “Win ning with C ustom ers’’ training program now in use by more than 200 banks and financial organiza tions. (April Northwestern Banker, page 52). □ Northwestern Banker, June 1978 42 ENERGY CRUNCH! boom for home improvement loans by banks By WILLIAM F. SCHUMANN President Insured Credit Services, Inc. Chicago, 111. “ P r ic e s a n d m o r t g a g e r a te s h a v e g o n e o u t o f s ig h t . T h e a lt e r n a t iv e f o r t h e f a m i l y is a d d in g t h e n e w b e d r o o m o r f a m ily r o o m .” Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis h HILE the impact of drastically higher energy prices has provided a bonanza to the property ' improvement loan industry, it has also brought the ‘suede-shoe’ salesmen out of the closet. The modern-day con artist is easy to recognize. The ‘ ‘suede-shoe’ salesman always specializes in areas ripe v for consumer fraud. Today, energy conservation has all the ingredients to fit the swindler’s classic mold. What makes energy conservation so attractive to the con artist is (1) the rapidly accelerating costs of energy and, (2) proposed government incentives. ¥ Two Areas for Con Artists The two areas where the con artist is concentrating are solar heating and insulation. ^ Solar heating is not yet cost-effective. Despite salesmen’s wild promises, solar heating systems simply won’t pay for themselves as fast as they say they will. Solar heating is in its infancy. I t’s like what the Model T was to the auto industry. It takes a long time to go *. from a Model T to an Eldorado. Even in high sun areas like Phoenix, Albuquerque * and Central Florida — current hot spots for ‘suede shoe’ salesmen — solar heating units are taking 12 to 15 years to pay for themselves instead of the five to six v years the salesmen are claiming. Beware of the salesman who is peddling his paper on ^ a ‘pays-for-itself five to six years kind of deal. The other trouble area is insulation. Insulation is relatively easy to get into and doesn’t require a great deal of capital. I t ’s a good sideline activity for many home improvement contractors and it seems everybody is hopping on the bandwagon. I t’s just like the waterproofing schemes four or five years ago. The problem is you don’t know whether >you’ve got a botched-up job until it’s too late, because you can’t see the improvement. You didn’t know the waterproofing job failed until the flood hit; you won’t know the insulation isn’t effective until the cold weather hits. In both cases, by the time you realize **• you’ve been taken, it’s too late. How To Guard Against Sharpies Here are some simple ways lenders can guard against ' the ‘sharpies’: • Know your project. Know the facts and statistics about insulation and solar energy. For example, A thickness means nothing in insulation, it’s the R-value that counts. • Know your dealer. Make sure he’s reputable and > local. Check the Better Business Bureau. Look at previously completed jobs. Visit his sales office. Find out who’s doing the selling and their backgrounds. • Know your law. Make sure you have a reasonable contract; make sure the dealer is operating with a +. building permit. Make sure the improvement meets with zoning regulations and local ordinances. * • Know your borrower. Make sure the borrower is aware of what he’s getting into, and make sure he has the ability and willingness to repay your loan. Opportunity for Conservation Loans Putting the ‘con artist’ aside, the twin effects of energy conservation needs and rapidly increasing home ± purchase prices have made the property improvement W “The property improvement borrower is probably the most stable borrower in any loan portfolio.” loan an unprecedented opportunity for the lending institution. The costs of energy are literally and figuratively going through the roof. Petroleum costs have more than doubled over the last three years; electricity has increased 25% to 40% in the last 18 months, and natural gas costs jumped as much as 30% during the past year in most parts of the country. Such rapid increases create a strong need for the consumer to do something about conservation. Because many don’t have the funds, they will be coming in increasing numbers to financial institutions for loans. Government Energy Effects The second important aspect of energy is the Administration-proposed conservation incentives for taxpayers. When passed by Congress, this aspect of President Carter’s energy policy will create tax credits for energy-related property improvements. Let me illustrate the potential effect of energy on the property improvement industry: Normally, the property improvement industry would grow about 10% a year. In 1977 industry sales were about $30 billion. Normal expectations for 1978 would have been $33 billion. Because of government incentives and consumer needs in the energy field, we anticipate maybe another $5 billion in industry sales. That’s an added push of nearly 17% above the 10% normal growth. Opportunity To Upgrade Portfolio The current situation presents a prime opportunity for lenders. It also presents a prime opportunity for institutions to change their portfolio mix and upgrade it. Auto loans provide an obvious area for institutions to reevaluate in the light of the property improvement lending boom: There are roughly three times as many auto loans as property improvement loans in most portfolios today. But remember what took place just three years ago when we had another kind of energy crisis — the gasoline crunch. The bottom fell out of the auto loan market. □ ABOUT THE AUTHOR— W i l l i a m F . S c h u m a n n , a n a tiv e o f S t. L o u is , w a s g r a d u a t e d fr o m N o r t h w e s t e r n U n iv e r s it y in C h ic a g o a n d h a s b e e n a r e s id e n t in t h e C h ic a g o a r e a t h e p a s t 2 0 y e a r s . H e b e g a n h is c a r e e r w it h G e n e r a l F i n a n c e C o r p o r a t io n , th e n in 1 9 6 0 b e c a m e a f f i l i a t e d w it h F ir s t N a t i o n a l B a n k a n d T r u s t C o m p a n y in E v a n s t o n , III. In 1 9 6 5 h e jo in e d In s u r e d C r e d it S e r v ic e s . H e w a s a p p o in t e d n a t io n a l u n d e r w r it in g d i r e c t o r in 1 9 6 9 a n d s u b s e q u e n t ly w a s e le c t e d e x e c u t iv e v ic e p r e s id e n t . In 1 9 7 1 h e w a s n a m e d p r e s id e n t o f IC S . T h is fir m w a s e s t a b lis h e d in 1 9 5 4 a n d p io n e e r e d t h e id e a o f p r iv a t e ly in s u r e d p r o p e r t y i m p r o v e m e n t lo a n s . U n d e r h is d i r e c t i o n , IC S h a s c o n t i n u e d to e x p a n d s e r v ic e s to p r o v id e a c o m p r e h e n s iv e r a n g e o f p o r t f o l io r e v ie w a n d m a r k e t in g a id s to t h e le n d in g c o m m u n i t y . T h e i m p o r t a n c e o f t h e s e s e r v ic e s t o b a n k s is in d ic a t e d b y t h e f a c t t h a t 1 , 3 0 0 le n d in g i n s t i t u t i o n s c o a s t to c o a s t a r e u s in g IC S p la n s w h ic h in s u r e m o r e th a n $ 2 b i llio n in p r o p e r t y im p r o v e m e n t lo a n s . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One of two things happened at that time with imbalanced portfolios that were top-heavy in auto loans. Either quality dropped because lenders were scurrying around trying to maintain their outstandings and having to let down the credit bars, or outstandings dropped and control of funds decreased with regard to consumer lending. Financial institutions can’t afford to put all their eggs in one basket. Sound lending dictates a more balanced portfolio, and there is no better diversification in consumer lending than property improvement loans. Opportunity For Improvement Loans The second major opportunity area relates to the rapidly increasing costs of buying a home and implications to property improvement lending. Today, we see the post-World War II baby boom coming of age. Five or ten years ago those people would be moving by now into that second home to get that fourth bedroom or better living conditions. But look what’s happened to prices and mortgage rates! They’ve gone out of sight and salaries have not adequately kept pace. Moving to the larger home is no longer affordable. The alternative is improving existing property. Rather than buying the four-bedroom house, the family is adding the new bedroom or family room. Moreover, one in every five homes today is in need of major improvements like plumbing or electrical updating, or space. Finally, we’ve seen an increase in the luxury items as families seek to improve their ‘quality of life.’ We’re seeing more swimming pools, tennis courts, and patios. Stability and Better Bottom Line In addition to optimum timing, let me emphasize the stability provided by property improvement loans. The property improvement borrower is probably the most stable borrower in any loan portfolio. He is investing in his most valuable asset. Collection costs are consistently lower than on any other type of consumer loan and risk of loss is minimized. Moreover, you have the stability of the collateral. Homes are an appreciating asset while auto loans, for example, are depreciating assets. But above and beyond all these arguments, the “ clincher,” is bottom -line yield. A property improvement loan generally has double the bottom-line yield of the auto loan, after deducting operating expenses and money costs. Acquisition costs initally are not a lot different. The costs of handling the loans once they are on the books is about the same. Yet with a property improvement loan, the bottom-line yield is dramatically greater. The lender, through use of an insured credit services plan, can insure an entire property improvement portfolio against losses. Property improvement loans truly provide the lending institutions with a risk-free profit center, and the timing couldn’t be better to take advantage of this opportunity. □ Northwestern Banker, June 1978 44 THE NINTH DIGIT . . . [Continued from page 40] with eight digit numbers can be processed after July 1 until supplies are exhausted. The mathematical formula for determining the ninth digit in the routing number is identified as Modulus 10, using weights of 3, 7, 1 in repetitive order and placing these numbers from left to right under the digits in the routing number, thus making two rows of eight numbers. Each column of two numbers is multiplied and the sum written below the line. All sums are added from left to right below the line. From this resulting total drop the 10’s column (i.e., retain only the final digit). This digit substracted from 10 provides the ninth number to be added to the existing routing number. BAI has provided the accompanying examples for determining the “check digit” as well as utilizing it to determine a missing MICR-coded number. Conclusion The value of the computer is illustrated graphically by the fact that all the above calculations are performed instantly on the computer by the software program, thus expediting check processing and reducing the costs associated with manual processing of a high level of rejects. □ Example R o u t in g n u m b e r 0 1 M u ltip lie d by w e ig h ts x 3 T o t a l a c r o s s d r o p p in g 1 0 ’s c o lu m n 2 3 7 1 3 7 7 2 9 28 0 - 4 S u b tra c t fro m 1 0 5 6 1 7 3 7 5 18 49 = 118 (1 1 )8 10 - 8 C h e c k d ig it 2 T h e c h e c k d i g it ( 2 , in t h is e x a m p le ) t h e n w o u ld a p p e a r a s t h e la s t d i g it o f t h e r o u t in g n u m b e r , w it h t h e d a s h d e le t e d a n d becom e: 012345672. * ^ T o c a l c u l a t e a m is s in g , u n r e a d a b le d i g i t , a p p ly t h e c h e c k d i g it f o r m u l a t o t h e r e a d a b le d i g i t s . T h e f o l l o w i n g e x a m p le u s e s t h e s a m e c h e c k n u m b e r s a s t h e p r e v io u s e x a m p le : R o u t in g n u m b e r 0 1 2 3 4 5 6 ? (2 ) W e ig h ts 3 T o ta l a c ro s s 0 7 7 1 3 2 9 C o m p u t e d c h e c k d i g it S u b t r a c t k n o w n c h e c k d i g it 7 28 1 37 5 1 8 ? 1 0 -9 = '( 6 ) 9 = 1 , ___ -2. -1 A d d 1 0 ( if n e c e s s a r y ) to g e t p o s it iv e n u m b e r +10 * 9 A t t h is p o in t , d e t e r m i n e w h a t t h e m is s in g d i g it m u s t b e s o t h a t w h e n m u l t i p l i e d b y its w e i g h t (in t h i s c a s e 7 ) it y ie ld s a 9 . A s im p l e a r i t h e m e t i c t a b le d i s c lo s e s t h a t t h e w e i g h t n u m b e r 7 m u lt i p lie d b y it s e lf is 4 9 . D r o p p in g t h e 1 0 ’s c o lu m n y ie ld s t h e 9 . F r o m t h i s n u m b e r s u b t r a c t t h e “ c h e c k d i g i t ” o f 2 a n d t h e r e s u lt is t h e m is s in g d i g it b e in g i d e n t if ie d a s 7 . k * Backs Nationwide Branches WOMEN IN BANKING . . . [Continued from page 17] ultimate contribution. Conduct unbecoming to a professional must be avoided by both men and women. Perhaps women can be the most helpful in breaking down old traditions by helping men recognize the potential abilities in women and assisting younger women to achieve their full potential. Reality dictates that some people will never change but, each promotion is a step forward and each achievement opens the door a little wider for those who are following us. Women are becoming known for getting the job done, following up on specific situations and dealing rationally with difficult customers. We are coming into demand to hold positions of responsibility because we do get the job done and men are encouraging us (even recommending us in some cases). Of course, being a woman, tokenism is all too real but it is a foot in the door and in spite of the jokes, etc., it is the only way to eventually achieve the level of acceptance we want. If I had the opportunity to change any of my decisions along the way in my career, I would not. Every year has been more challenging and exciting than the previous one (or at least very different). Young people entering any job need to establish a “plan” with some objectives and a reasonable timetable. They need to get involved and interested in the assignments and accept challenges as opportunities to prove their worth. Of course, challenges will seldom be verbally expressed—they may consist of expanding knowledge by “helping out”; formulating better, more effective ways to do the job; noticing potential, new revenue sources or cost reducing efficiencies, etc. Nineteen years ago, I did not really anticipate a career in banking but now, it is difficult to think of anything I would rather be doing. Banking is progressive and innovative with challenges at every turn. The future appears to be even more exciting and I would certainly recommend banking for anyone who is willing to assume responsibility and wants to participate in the decision-making of tomorrow. □ Banker, June 1978 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Philip C. Jackson, member of the Federal Reserve Board of Governors, went on record at the Alabama r Bankers Association last month as favoring “statewide branching by any bank organized within a state v (and) we should also authorize interstate full-service operations for any bank authorized to do business in our country.” FDIC Chairman George A. LeMaistre, addressing the same convention, declined to agree with^ Mr. Jackson but said interstate branching restrictions on EFT operations should be lifted. Missouri Bankers Elect Pat Lea, chairman of the First National Bank, Sikeston, Mo., has been elected president of the Missouri Bankers Association for 1978-79 at the 88th annual conven tion. Mr. Lea, who moved up from association vice president, succeeded Mills H. Anderson, chairman of the Bank of Carthage. Named vice president for the ensuing year was S. K. Turner, president of the First National Bank, Kirks ville. 45 Regulatory Agencies Adopt Uniform Rating The three Federal bank regulatory agencies announced last month they have adopted a uniform interagency A system for rating the condition and soundness of the nation’s commercial i banks. The new rating system is being implemented by the Federal Deposit Insurance Corporation (for insured state chartered banks that are not members of the Federal Reserve System), by the Federal Reserve Board (for state chartered member banks) and by the Office of the Comptroller of the Currency (for national banks). ¥ Two Main Elements •V The new Uniform Interagency - Bank Rating System has two main elements: 1. An assessment by Federal bank examiners of five critical aspects of a bank’s operations and condition. These are: adequacy of the bank’s capital; the quality of the bank’s assets (its loans and investments); the ability of the bank’s management and administration; the quantity and quality of the bank’s earnings, and the level of its liquidity. 2. A combination of these basic .< factors into a composite—overall— rating of the bank’s condition and * soundness. Banks will be placed in one of five groups, ranging from banks that are sound in almost every *v respect to those with excessive weaknesses requiring urgent aid. Agreement Among Agencies The agencies agreed upon the qualitative characteristics that would ^ place a bank in one or another of the five overall groups, with Composite Rating Group 1 being the best and Composite Rating Group 5 being the weakest. It is expected that agreement on what factors constitute the main ^ characteristics of a bank’s condition and soundness, and on how these factors should be combined into an v overall rating, will provide a basis for comparable judgments by super visors about all Federally insured banks. The Federal Deposit Insurance Corporation has indicated that it will continue to maintain its existing problem bank list for insurance exposure purposes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Piper Jaffray Promotions Piper Jaffray Incorporated, parent company of the Minneapolis-based securities firm, Piper, Jaffray & Hopwood Incorporated, has named Richard W. Perkins a senior vice president and the following people were elected vice presidents in the M inneapolis office: Robert K. Larson, Mario G. Maki, Walter H. May, Jr., Joseph E. Meyers, Jr., Douglas V. Pool and Benjamin S. Rinkey. William T. Kirke was elected vice president in the company’s Des Moines office and Momchilo Vucenich in the Duluth office. Thomas A. Medlin and Joyce E. Nelson were elected assistant vice^ presidents in the Minneapolis office. The board accepted with regret the resignation of David S. Clayton, vice president and a director of the firm. Mr. Clayton had been with the firm since 1972 and was director of marketing. He accepted a position outside the industry. Casualty Underwriters, Inc. 10 West S ix t h Street — S t. Paul, Minn. 5 5 1 0 2 EXCESS, SURPLUS AND SPECIALTY LINES TRUCK INSURANCE (Single Units or Fleets) Physical Damage Liability Cargo Bobtail Gross Receipts Local, Intermediate, Long Haul GENERAL LIABILITY Hard-to-Place Casualty Spectator Liability Excess Liability Umbrella Liability Products Liability Specialist in OL&T - M&C PROPERTY COVERAGES Non-Standard Fire Capacity Fire Inland Marine Livestock Mortality Most Any Proerty Line FOR QUOTES AND BINDERS . . . CALL (612) 222-1824 Northwestern Banker, June 1978 46 Even Wall S t can’t give your bank the investm ent help you can get on Locust S t in S t Louis. That’s because you need more than just a supply of investment services. You need the kind of help you can get from First National Bank in St. Louis. Investment Specialists Serving the Special Needs of Commercial Banks Of course, we offer a wide range of bank investment opportu nities. But we also offer you a staff of investment specialists to sort out the options most suitable to your own partic ular circumstances. Our people understand the needs of commercial banks, and they can give you on-thespot answers to your investment questions. Through them, you can take advantage of all the investment services of First National. For example, we are a major dealer and underwriter of municipal securities, U. S. Treasury and Federal Agency securities, as well as a market maker in a variety of short term money market investments. We buy and sell for you at the best prices available, and through our Portfolio Analysis Program, we provide a complete set of informational reports from which to analyze your bank’s portfolio for the most efficient return on your investment. In addition, we maintain inventories of gold and silver bullion and gold coins. First National Serves And Your Customers As our customer, you’ll be able to tap the resources of First National’s Bond Department, so you can offer your cus tomers additional assistance and investment services. As a result, your reputation as an investment source will be enhanced in your community. Adjust Your Reserve Position With Fed Funds Through our Federal Funds Desk, we can insure quick investment of your excess funds or help to provide a source of liquidity — performed at competitive rates. We buy and sell Federal Funds continuously, dealing in a large daily volume for our customers. 5 1 0 L o c u s t S t ., S t. L o u is , M O 6 3 1 0 1 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r. ¥ Wall St. Expertise — Locust St. Availability You can count on the kind of investment experience and expertise you’d expect from Wall St. when you deal with our Bond Depart ment. But more importantly, you can depend on fast, personal attention from the First National representative who calls on your bank. For more information, stop in, phone or write First National Bank in St. Louis, (314) 342-6220. First National Bank in St. Louis A First Union Bank i- Member FDIC V ¥ 47 Illinois News in business and was school business manager of the Charleston Public Schools from 1961-68. Since then he has been self-employed. Heads IBA Trust Division JOHN R. MONTGOMERY W. J. HOCTER Pres. Exec. V.P. Chicago Chicago Named EFI Chairman Electronic Funds Illinois, Inc., has a new chairman, its third in two weeks. He is Ray G. Livasy, presi dent of the Millik in N a t i o n a l Bank of Decatur, who assumed the job at the annual meeting of EFI, the in d u stry ’s proposed vehicle r . q . LIVASY for a statewide electronic banking system. Mr. Livasy, past president of the Illinois Bankers Association, suc ceeded Thomas M. Rochford, who served 11 days. Mr. Rochford, president of the Bank of Illinois in Champaign, who was elected chair man at a special directors’ meeting called to fill a vacancy left by the resignation of an EFI founder, Daniel N. Quigley. Mr. Quigley, executive vice president of the National Boulevard Bank of Chica go, resigned with an attack on the board’s dismissal of the organiza tion’s legal counsel. EFI directors dropped Thomas G. Lyons of Chicago as legislative counsel because of legal work his Chicago law firm did on behalf of the First National Bank of Chicago, which is not a member of EFI, and which, it has been charged, sought to undermine E F I’s legislative goals on bank structure. First National denied the charge. Mr. Rochford, the interim chair man, said he declined to stay as full-time chairman because of press of bank business. He was elected EFI treasurer. Mr. Quigley was reelected as a director. Other new 1978-79 officers of EFI are: vice chairman and chairman of the executive committee, Harold Moe, president, Second National Bank, Danville,and secretary, Don ald R. Lovett, chairman of the Dixon National Bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Everett W. Kassing, vice presi dent and trust officer, First National Bank of Belleville, was elected president of the trust division of the Illinois Bankers Association recent Promoted at Peoria lyThe promotion of John R. Ales to Others elected for the 1978-79 assistant vice president has been term are: first vice president, James announced by the board of Commer T. Cahlikis of American National cial National Bank of Peoria. Mr. Bank and Trust Co. of Chicago; Ales, a 1961 graduate of St. second vice president, Charles H. Ambrose College in Davenport, la., Flanders of IAA Trust Co. in joined the bank’s dealer relations Bloomington, and secretary, Vera department in 1968. He was named Kay lor of the Illinois Bankers an officer in 1971. Association. Members at large of the division’s executive committee elected for a Lombard Bank Names two-year term is Lorraine Cassens of Assistant Vice President the Community Bank of East Peoria William J. Cahill has been named and for a three-year term is Donald assistant vice president of the Bank Hill of the First Arlington National Bank. of Y ork to w n , Lombard, by the bank’s board. He Joins Jay & Associates will be responsi George Wasem, formerly presi ble for the bank’s dent of Commercial National Man business devel agement Consulting Company, has opment affairs. joined Jay & Associates, PeoriaA finance based marketing agency serving graduate of Debanks and other clients. Paul University, Mr. Wasem joined the Commercial Mr. Cahill forw . j . CAHILL National Bank of Peoria in 1941 and merly was a bus iness development officer for Nation held various management positions. al Boulevard Bank of Chicago. He He has written extensively for bank also held a number of positions with publications. His book, “Marketing the Federal Reserve Bank of Strategies for Banks,” was publish ed in 1976. Chicago. Joins Charleston Bank CU Drafts Offered Royce Marble has joined The Charleston National Bank as assis tant trust officer. Mr. Marble was graduated from Eastern Illinois University with a BS and MS degree Merchandise National Bank of Chicago has announced a pilot share draft program to be offered to credit unions in the Chicago area in cooperation with the Midwest Association of Credit Unions. A bank spokesman said the association has more than 80 member-credit unions. The bank reached its first tentative agreement with a federally chartered credit union having more than 4,000 accounts, he said. Under the plan, the bank would clear and guarantee share drafts written by members of the credit union. In turn, the group must maintain a deposit at the bank CONVENTION REPORT The Illinois Bankers Associa tion annual convention was underway in Peoria as this issued was being mailed. An on-the-spot report with pictures from Publisher Malcolm Free land will appear in the next issue. Northwestern Banker, June 1978 48 Illinois News amounting to 125% of the estimated check clearings. The Illinois Bankers Association has a suit pending against the state Director of Financial Institutions to block state-chartered credit unions from offering share draft privileges. Burbank State Bank Announces Appointments Scott D. Skoglund has been named executive vice president and James H. Olis vice president of the loan department of Burbank State Bank. Mr. Skoglund joined the bank in 1976 as vice president from the National Bank of North Chicago where he had been vice president. He began his banking career in 1967 at the American National Bank and career at Devon Bank in Chicago in 1959. He left the bank as assistant vice president in 1970 to move to the Lakeside Bank as assistant vice president. He also has experience as an accountant with Bansley and Kierner CPAs and as second vice president at Worth Bank and Trust, Chicago. S. D. SKOGLUND J. H. OLIS Trust Company of Chicago in the commercial loan department. In 1968 he was named assistant cashier of the Palatine National Bank and in 1970 was promoted to assistant vice president. Prior to joining the bank, Mr. Olis was vice president of the River Forest State Bank. He began his Resigns from IBA Staff Karen Reeves DeLee has resigned as editor of the Illinois Banker, published by the Illinois Bankers Association, to join Burson-Marsteller public relations firm in Chicago. She will be working with the new firm on an electronic banking account program designed to assist banks in m arketing EFT to consumers. encoding, and Charles A. Fox, executive vice supervisor, programming. p re s id e n t and head of the com Also announced was the appoint mercial banking ment of Elizabeth Edwards as department. operations officer and assistant Previously Mr. manager of the bank’s office to be O’Donnell was located in the Germania Club. Ms. senior vice presi Edwards most recently served with a dent in charge of bank in Zion, 111. The facility, to be commercial lend open in June, will offer a 24-hour ing and a direc J. E. O’DONNELL automated teller machine as well as tor of Northwest all other banking services. It will National Bank of Chicago. Before have a turn-of-the-century decor that he was a national bank interior and an exterior design in examiner for the U.S. Comptroller of harmony with the architecture of the the Currency in Chicago. building. *** HICAGO City Bank and Trust Company, in connection with the Peoples Gas, Light & Coke Company, recently presented a unique display dealing with natural gas energy-savings awareness in its lobby. Visitors to the free exhibit were able to test themselves by answering numerous true-false ques tions on energy conservation techni ques and could pick up many helpful free pamphlets on how to better utilize energy-saving measures in their home. *** C Joseph E. O’Donnell, 45, has joined the Main Bank of Chicago as Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Roy H. Nelson, Jr., has been named manager of Merchandise Na tional Bank of Chicago’s office in the Germaine Club building at Germania Place and Clark Street in Sandburg Village. Most recently he served as assistant vice president, auditor in the auditing department. *** Permit Issued A permit to organize has been issued to the Bank of Lemont, 1200 South State Street, Lemont, Cook County, according to William C. Harris, Commissioner of Banks and Trust Companies. The state bank’s total capitaliza John L. Cooley, president of tion of $1,250,000 would consist of Merchandise National Bank, has $500,000 in capital stock; $500,000 announced the following staff in surplus and $250,000 in reserve for changes: Michael D. Pryde, manager operating expense. There would be of customer service and proof 50,000 shares of stock with a par encoding; Martin S. Fleigel, mana value of $10 each. Organizers are: Thomas C. Bona, ger, adjustment; Charles Bruno, assistant manager of tellers and Palos Hills; Edward Lode, Sr., manager of security guards; Samella Worth; Gary J. Leonardo, LaGranMcAfee, supervisor, proof and ge; Seymour R. Goldgehn, Highland encoding; Gerald A. Benton III, Park; Joseph Pearson, Eugene J. assistant supervisor, proof and Pulla, Lemont. 49 ~r YOU’LL NEVER MISS SLT...UNTIL YOU NEEDUS. A n d then it ’s too late. A protective C ollateral Control Program should be p a rt o f your loan negotiation. For over 50 years SLT W arehouse C om pany has been serving banks by gu aranteeing and servicing inventory collateral. W e ll be g la d to set up a w o rk a b le program fo r your bank. Call or w rite to d a y fo r com plete details. Be sure SLT’s Program is there w h e n you need it. SLT WAREHOUSE COMPANY P.0. Box 2 4 2 , St. Louis, M o. 63 16 6 • 3 1 4 /2 4 1 -9 7 5 0 • Offices in M ajor Cities N A T IO N W ID E C O L L A T E R A L C O N T R O L S E R V IC E S > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 50 T V X * % A T V > V The Italian Count and the Father of W aters. Giacomo Beltrami, an Italian adventurer, set out in 1823 to explore northern Minnesota, and hopefully find the source of the Mississippi River. He named his source “Lake Julia.” Believing he had made an important discovery, he published a romantic account of his travels which gained wide circulation. Unfortunately the waters of Lake Julia never reach the Mississippi, but flow into Hudson Bay. M n D T U lA fC C T C D M Beltrami missed Lake Itasca, but don’t you miss the p\n Minnesota Bankers Convention at the Radisson South Hotel in Bloomington, June 12-14. Your friends from Northwestern National Bank of Minneapolis will be there to greet you. Of Minneapolis IMUKIHWtu ItnIM National bank Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 Minnesota Bankers Annual Convention G. A. BEITO Pres. Radisson South Hotel Minneapolis, Minn. June 12-14, 1978 V * EMBERS of the Minnesota Bankers Association will hold their 88th annual convention June 12-14 at the Radisson South Hotel in Minneapolis. MBA President George A. Beito said that Monday, June 12, will feature the traditional golf and tennis tournaments, with business sessions slated for Tuesday and Wednesday mornings. Mr. Beito is president of the Northern State Bank, Thief River Falls. John A. McHugh, president, Northwestern National Bank, Minneapolis, is general chairman of the convention. The complete program follows: Monday, June 12 A.M. 8:00 Men’s golf tournament. South: Honeywell Country Club, Lakeville. North: Majestic Oaks, Anoka. Tennis tournament, Normandale Tennis Courts. Ladies golf tournament, Hazeltine Country Club, Chaska. Irene Jacobs, National City Bank, golf chairman. P.M. 1:00 Registration opens - Radisson South. 2:00 Hospitality rooms open (optional). 2:00 Ladies Hospitality Center open 2:00 Exhibits open 6:00 First Night Garden Party featuring “The Arbors.’’ 9:00 Hospitality rooms reopen. Tuesday, June 13 A.M. 7:30 Prayer breakfast. Presiding- Robert Bauer, president, Commercial State Bank, Bloomington. Message - Jeff Seaman, Minnesota Vikings. M J. M. OWENS 2nd V.P. ~T 4 -» J. T. GOWAN Speaker J. A. McHUGH Speaker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9:30 First business session. Presiding - G. A. Beito, president, Minnesota Bankers Association, and president, Northern State Bank, Thief River Falls. Opening ceremony. Executive Vice President’s Report - Truman A. Jeffers. “Savings Bonds and Bankers” - John Chisholm, chairman, ABA Savings Bonds Division and president, Marquette National Bank, Rochester. Northwestern Banker, June 1978 52 Minnesota News “The Many Faces of Electronic Banking“ - Virgil Dissmeyer, executive vice president, Northwestern National Bank, Minneapolis, and president, National Automated Clearinghouse Association. Treasurer’s Report - Richard Carlander, MBA treasurer and president, State Bank of Faribault. Report of nominating committee - John D. Turner, president, Mid America State Bank, Highland Park. Election of officers for 1978-79. Drawing of door prizes. Adjournment. T. L. JEFFERS Exec. V.P. J. H. PERKINS Speaker A. SHESHUNOFF Speaker RAY BOLGER Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.M. 12:30 Past Presidents’ and Pioneers’ luncheon. Banking schools luncheons. General luncheon for delegates. 6:00 Banquet, installation of officers, Ray Bolger show, dancing. Wednesday, June 14 9:00 Second business session. - Presiding - Mr. Beito. Report of Resolutions - Roland Nordlund, president, Hillcrest Mid America State Bank of Maplewood. Adoption of resolutions and incorporation of MBA. “Political Realities and Federal Banking Legislation’’ - John Perkins, president, American Bankers Association and president, Continental Illinois National Bank & Trust Company, Chicago. ABA meeting - Elmwood Throndrud, ABA state vice president and president, Northwestern State Bank, Ortonville. MBA president’s report - Mr. Beito. “New Earnings from Service Charge Income ’’ = Alex Sheshunoff, bank analyst. Announcements, drawing for color-TV, and recess. P.M. 12:30 Luncheon. Presiding - Mr. Beito. Golf and tennis awards. “Mood of America” - George Gallup, Jr., president, Gallup Poll, Princeton, New Jersey. 2:30 Convention adjourns. THE ARBORS y > +r V "Part o f m y job is to know your business.” Don Buckman, Vice President, Montana and North Dakota, (612) 291-5579 “M y correspondent banks and I have a lot to talk about. But it’s the kind of talk that just doesn’t happen on the phone. “So as often as I can, I get out to see my customers. It’s the best way for me to stay really up-todate on what ’s happening in their part of the country. I can find out which businesses they serve are growing. H o w the crops are doing. W h o’s investing in livestock. A nd what part their bank is playing in all this. “It takes a little extra digging, but it’s worth it. Because it helps me anticipate my customers’ needs. It gives me a real feeling for their business, so I can analyze situations better for them. A nd sometimes it enables me to propose a really unique solution for one of their problems. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “It’s part of my job, and it’s the part I like best, because I know it helps me serve m y correspondent banks better. A nd I really believe it helps them serve their customers better.” Correspondent Bank Division Member F.D.I.C. A Full Service Bank We do our job. \buget the credit Northwestern Banker, June 1978 54 Minnesota News Midland National Bank: Stanley > J. Peterson, vice president and Michael S. Higgins, assistant vice president. T HE following m etropolitan son, executive vice president; New York bankers and service and equip Kenneth Wales, S. R. Omlie, Bankers Trust Company: T. F. ment dealers have indicated that Richard Parnell and Raymond they will be attending the annual Johnson, vice presidents; Allen “Peter” Bundy, vice president and convention of the Minnesota Bank Highum, John Franklin, Michael Mary Ann Lambert, assistant vice ers Association in Bloomington, Boncher and Jerome Larson, assis president. Chemical Bank: Richard G. Hall, June 12-14. tant vice presidents; Frank Brosseau vice president and Jeffrey W. and Dan Simkins, correspondent Chicago Strong, assistant manager. American National Bank: James banking officers; Delores Ellis, Citibank, N.A.: Norm Gustafson, A. Carlson, senior vice president; special services representative; June account officer. Swanson, administrative assistant; Ted C. Axton, vice president, and Manufacturers Hanover Trust: Richard E. Akin, second vice Zylpha Gregerson, correspondent David S. Tackett, vice president and banking representative; Minnie president. Earl H. Lundin, Jr., assistant vice Continental Bank: Bill Michael Schroder, bond investment officer; president. Tom Trench, Larry Nelson, Barbara and Bill Goodyear, vice presidents, St. Paul and Ernie Hodge, commercial Johnson and Dolores Walstrom, bond investment representatives. American National Bank: James banking officer. First National Bank: Garth Dunn, Marquette National Bank: Corres W. Reagan, president and chief vice president, and Bud Cross, pondent division—Bill Rosacker and executive officer; Robert E. Sipple, assistant vice president. Bill Addington, vice presidents; senior vice president; A rt A. Harris Trust & Savings Bank: J. Dick Holmes and Len Erickson, H aessig, Robert W. Jacobson, H. Pearson, vice president, and a ssista n t vice presidents, and Donald H. Johnson and William P. Donna N. Smith, commercial bank William Klein and Pat Stotesbery, Langford, vice presidents; Robert T. Knopke, Charles K. Maddux and ing representative. correspondent bank officers. Invest Gary M. Omerza, assistant vice Northern Trust Company, Chica ment division—Jack Campion and go: Phil Carlson, vice president; Paul Roche, assistant vice presi presidents; Michael M. McNeil, Edwin C. Buchanan, commercial dents; Jim Kammerer and Dean correspondent bank officer, and Thomas C. Olander and Jeffrey L. banking officer. Fordyce, investment officers, and Paterson, investment representa Gene Anonsen, investment repre tives. Duluth First National Bank of Duluth: sentative. First National Bank: Clarence G. Dennis Dunne, president; Leonard N orthw estern N ational Bank: Frame, president; Andrew G. Sail, Griffith, vice president; Timothy John Morrison, chairman; Jack executive vice president; John F. Burgess, assistant vice president. McHugh, president; Peter Gillette, Mullen, senior vice president; James Minneapolis executive vice president; Harry T. Gowan and Richard C. Swanberg, First National Bank: DeWalt H. Wahlquist, senior vice president, vice presidents; Donald R. LindeAnkeny, Jr., president and chief and the Minnesota correspondent man, Jerome J. Borovansky, Clay executive officer; Robert J. Ander banking team. ton L. Johnson, Kit B. Svee, Robert J. Peroutka and I. James Smith, assistant vice presidents; Kenneth A. Heiser, James A. Russell and Craig B. Jones, correspondent bank officers, and Sandra Harley, bond consultant. Bank Equipment and Other Firms Bank Building Corporation, St. Louis: John Ladner, consultant services manager and Phil St. Aubin, manager of sales. Banco Financial Corporation: Clarence A. Adams, president; Lee A L L ISO N -W IL L IA M S C O M P A N Y T. Mork, senior vice president; 1560 Northwestern Bank Building Robert L. Olson, vice president; ___ Minneapolis, Minnesota 55402 j Paul J. Weingart, assistant vice president, and Robert L. Johnson, treasurer. D aktronics, In c., Brookings, UNDERWRITERS South Dakota: Elmer H. Weisser, AND DISTRIBUTORS district sales manager. OF Dawson Hail Insurance, Fargo, N. P h one (6 1 2 ) 3 3 3 -3 4 7 5 CORPORATE AND MUNICIPAL D.: Lyle Askerooth, senior vice N o-Toll N um ber 8 0 0 - 3 2 8 - 4 0 2 0 SECURITIES president. You Will See Them at the Annual Minnesota Bankers Convention You'veGot to Know the Territory (and we do) Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sometimes conventional bank money doesn’t fit the needs of a growing company. But you can still help your clients by offering them “ Tailored Bank Money.’’ Tailored money for leasing and asset money. Two ways you can solve a customer’s problem when conventional bank services do not apply. You get the business. Your clients get their money. Or equipment. Or equity. Or whatever. Tailored Bank Money is just that. A perfect fit for many of your clients’ financial needs. For more information, call direct. A sset Money™ Banco Financial Corporation provides tailor-made revolving credit lending programs secured pri marily by accounts receivable and inventories. Additional funds available on machinery, equip ment and real property.Or for expansion, buy-outs, mergers and acquisitions. Bank participations. Call Clarence Adams, Lee Mork, Robert Olson or Paul Weingart, (612) 372-7988, 830 Northwestern Bank Building, Minneapolis, MN 55402. FINANCIAL CORPORATION An Affiliate of Northwest Bancorporation Leasing Lease Northwest, Inc. provides funds for equip ment needs without disturbing bank lines of credit or dipping into company capital. Leasing spreads payments over the life of the equipment so cash flow remains undisturbed. Leased equipment pays for itself while it’s earning money for you. Leasing provides a complete tax deductible expense. Lease Northwest will structure payments to meet the demands of your cash flow. Contact Dave Michael at the Northwestern Bank Building, Minneapolis, Minnesota 55480, (612) 372-7416. Or, Roger Meier, 4425 Center Street, Omaha, NE 68105, (402) 536,2310. Lease Northwest,Inc. Affiliated with Northwest Bancorporation Achieve your goals w ith money services from a ffilia te s of N orthw est Bancorporation. Assets over $9 billion. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 56 Minnesota News Hibbard, O’Connor & Weeks, Inc., Houston: James W. Ogg and Davis W. Wetmore, vice presidents. ITT Life Insurance Corporation, Thorp, W ise.: W ilbur Rogers, resident vice president and Glen Gilbertson, vice president. Lawrence Systems, Inc., Chicago: Ken Knutson, assistant vice presi dent. Miller & Schroeder Municipals, Inc., Minneapolis: Gordon F. Engel, David Hendrickson and Ronald O. Olson. Mosler Safe Company, Hamilton, Ohio: Earl Frederickson, Ray Barsness and Harvey Larson, sales representatives; Roy Ticknor, bran ch service manager; Ford Campbell, regional sales manager, and Art Pisetzner, regional general manager. National Fidelity Life Insurance Company, K ansas City: Roger Fleming. Omaha Financial Life Insurance Co., Bloomington, Minn.: Gabe Kuhn, regional manager; Norm Fletcher, assistant sales manager. USLIFE Credit Life Insurance Company, Schaumburg, 111.: Robert L. Spehr, field vice president; James E. Lee, vice president, and David K. Craig and Donald Berreman, district managers. IT'S CONVENTION TIME! WE LOOK FORWARD TO SEEING ALL OF OUR FRIENDS ARCHITECT’S s k e tc h o f t h e d e t a c h e d f a c i l i t y o f N o r t h w e s t e r n B a n k W e s t , H o p k in s , to b e lo c a t e d a t t h e in t e r s e c t io n o f V a lle y V ie w R o a d a n d C o u n t y R o a d 1 8 in E d in a . Hopkins Bank Breaks Ground For Facility o r t h w e s t e r n BankWest of Hopkins officially broke ground this morning for its first detached facility to be located at the intersection of Valley View Road and County Road 18 in Edina. The new facility is expected to be completed and open for business in early fall of this year. The structure will include 4,000 square feet of lobby area on the main floor to serve both retail and commercial custom ers. Five teller windows will be featured. Also included will be an attached drive-in facility with four lanes and a 24-hour service center that will house “Instant Cash/Total Teller” mach ine. Among those attending the official groundbreaking ceremonies were William Wilkening, president of N orthw estern BankW est; Doug Meyer, who will manage the new N Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis office; Del Smith, assistant mana ger; James Van Valkenburg, mayor; Wolfgang Penzel, mayor of Eden Prairie, and Bill Solberg, Northwest ern Bancorporation. Recently the Northwestern Bank of Hopkins announced that it had changed its name to Northwestern BankWest to better reflect the total west suburban area it serves. Stan Peterson Mike Higgins MINNESOTA JUNE12-14 Named at Fairmont Elmer H. Rosen has been elected to the board of directors of the Fairmont National Bank. He is vice president of Rosen Livestock, Inc. Joins Hutchinson Bank Carol Ulrich has joined the Citizens Bank & Trust Co. of Hutchinson as a personal banking officer. She previously was with the Park Bank of Madison, Wise., where she served in a similar capacity. Midland National bank Of Minneapolis 57 Correspondent Banking Division of Midland Bank Stan Peterson Vice President 372-7067 Jackie Dunn Correspondent Services Coordinator 372-7054 Mike Higgins Assistant Vice President 372-7062 Call us by name (and call us often!) One of the beauties of dealing with Midland for Correspondent Bank services is the ac cessibility of our staff and the personal attention they can give you. Jackie Dunn, for instance, our Correspondent Services Coordinator ... is never more than a phone call away. (We say, if you want something done, call Dunn!) The solid fact is that these three people represent an institution of financial strength and broad experience in all areas of Correspondent Banking. Call us for assistance. Overlines Transit Federal Funds Bank Stock Loans Personal Loans Investments Right on the money. Credit Cards Money Transfer Data Processing Safekeeping Foreign Drafts & Currency Keogh Plan Midland National Bank Of Minneapolis An Affiliate of Northwest Bancorporation The Downtown Bank with Two Locations Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S e c o n d Avenue S o u th at F o u rth S treet T h ird A venue S o u th at S ix th S treet Northwestern Banker, June 1978 58 Minnesota News Named at Northfield First National Insurance agency as Hayward, Calif., for one year, as an agent in 1957. He was elected manager of Industrial Credit of John Holden has been elected to assistant vice president in 1966, vice Albert Lea for five years, and most the board of the Northfield National president in 1971 and has been head recently managed the Albert Lea Bank, according to Harry Shearer, of the commercial loan, marketing Trades and Labor Credit Union for president. Mr. Holden is president of and advertising departments. three years. Holden Farms, Inc. Joins Albert Lea Bank Retires at Grand Rapids Ollie Young, vice president of the First Northwestern National Bank in Grand Rapids since 1971, has retired. Mr. Young was with Western Adjustment and Inspection Co. at Virginia before he joined the David C. Siebert has joined the Luverne Bank Begins instalment loan department of the Extensive Remodeling First Northwestern National Bank of N orthw estern S tate Bank of Albert Lea, according to Carroll C. Luverne has begun an addition and Bergerson, president. Mr. Siebert has served with extensive remodeling project, accor Household Finance Company of ding to Jerry Wethor, president. The addition will expand the service area by 6,400 square feet. The new facility will include three additional drive-up tellers, customer service areas, walk-up tellers and 24-hour instant cash machine. The interior will include a two-story light atrium. People you can coont ... Clyde V. (Loraine) Stube Bob Geiger Funeral services were held recently for Clyde V. (Loraine) Stube, 60. He was executive vice president and director of Western National Bank in Duluth, where he had been employed since 1946. Stan Grout Bill Murray Here are some people you should get to know. They represent Omaha Financial Life Insurance Company — specialists in providing fullservice insurance programs for a dynamic financial industry. Like our parent company, Mutual of Omaha, we are innovative. We’ll tailor a program to fit your needs. lone Williams A nd a d a p t i v e . O u r procedures are geared to mesh with your system. And o u r “ profi t c e n t e r ” approach to cust omer insurance programs for financial institutions is designed to help maximize your earnings potential. Get to know these people. You’ll thank yourself! Call toll free (800) 328-1950 or write to Omaha Financial Life Insurance Cnmpany®V4^ A Mutual of Omaha Company 7800 Metro Parkway, Suite 200 Bloomington, Minnesota 55420 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Midwest Banking Institute Program Announced Midwest Banking Institute ad ministrator, Wayne Berthiaume, has announced the curriculum for the 1978 session July 23-28 at the University of Minnesota in Morris. The institute’s purpose is to meet the needs of the rural community banker involved in ag lending and farm management counseling. The first year curriculum in the two-year program features farm enterprise analysis, sessions on corn feed grain, wheat feed grain, dairy, swine, beef-feeding, beef-cow, identi fying farm management abilities, tour of the West Central Minnesota Experiment Station and farm credit analysis. The second year includes ag and community issues, financing com munity business, estate planning, farm business arrangements, futures trading, crop marketing manage ment and land value and appraisal. Applications and information can be received from the Montana, North and South Dakota, Wisconsin and Minnesota Bankers Associations, or from the Midwest Banking Institute R egistrar, 332 Baker Building, Minneapolis, Minn. 55402. 59 “What bankers want is a proven partner” REMO VAGNONI MINNEAPOLIS DISTRICT MANAGER TALCOTT BUSINESS FINANCE Talcott knows the importance of reliable judgment and service. For over 120 years we have been helping banks help their customers. Across the country bankers know Talcott and respect the knowledge and expertise of its people. We're specialists in secured lending and dedicated to working closely with bankers like you. The next time you need a proven partner to assist one of your customers, call Talcott. Our specialists are as near as your phone. TALCOTT TALCOTT BUSINESS FINANCE 1200 HARGER ROAD OAK BROOK, ILLINOIS 60521 (312) 654-3850 OTHER OFFICES: ATLANTA, BOSTON, CHICAGO, CLEVELAND, DALLAS, DETROIT, HOUSTON, LO S ANGELES, MIAMI, MINNEAPOLIS, SALT LAKE CITY, SEATTLE. CREVE COEUR (ST. LOUIS), W EST ORANGE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 60 HREE new a ssistan t vice T presidents have been appointed by the First National Bank of Minneapolis: Doris J. Bailey, Dale R. Hogan son, and Gerald A. Kraut. Ms. Bailey, who joined the bank in 1951, previously served as opera tions officer. She is in deposit operations. Mr. Hoganson, corpo rate banking I department, joined the bank in 1966 as an adjuster for instalment collections. Mr. Kraut, with the bank since 1973, formerly was a money market officer in the bond department. He now is in resources management and planning. The bank also has announced the appointment of Dennis F. Maetzold, assistant vice president, as manager of the St. Anthony Falls office. He succeeds Stanton M. Jorgens, vice president, who has been named executive vice president of First Bank-LaCrosse, LaCrosse, Wise., an affiliate of First Bank System, Inc. Mr. Maetzold joined the bank in 1969 as a credit analyst and served in retail banking before becoming G. A. KRAUT D. MAETZOLD Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis assistant vice president and manager division. Mr. White is chief trader in of the executive and professional the department’s foreign exchange banking division in 1976. division. Kerry K. Noyes and Larry W. *** Cooke were elected m arketing Avery G. Fick retired last month officers. as vice president in the correspon Mr. Brian joined Northwestern dent bank divi last year as an international banking “ sion of Marquetofficer. He formerly was with the te N a t i o n a l Chemical Bank of New York. Mr. Bank. Mr. Fick White has been an international r joined Marquette banking officer with Northwestern National in Apsince 1976. pril, 1960 and in Ms. Noyes joined Northwestern in v Jan u ary , 1961 1977 as advertising manager and was appointed a was named director of advertising representative in last January. Mr. Cooke is manager the correspon of non-retail marketing. Prior to A. FICK dent bank divi joining Northwestern in 1977, he was sion. He was with the San Diego Federal Savings later elected an assistant vice and Loan Association. r president. At mid-year of 1968 he *** was advanced to vice president and First Bank System, Inc., has named manager of the correspondent announced the appointment of Albin bank division. A graduate of the University of S. Dubiak as Colorado, where he earned his degree vice president of in Business Administration, Mr. planning and an Fick joined Cargill, Inc., in alysis. He most Minneapolis. Prior to joining the recently was vice Marquette National, he served 13 president of fi years as manager of the feeder nancial informa finance departm ent of N utrena tion and investor relations, posi Mills, a division of Cargill. Avery Fick and his wife, Eloise, tions he will re developed a wide acquaintanceship tain for the im among bankers in Minnesota, North mediate future. Mr. Dubiak succeeds Terrance J. Dakota, South Dakota and Montana during his extensive business travels Dobson who resigned to join the Old w in those states. They have moved to National Bank of Washington in Texas where they will reside at 106 Spokane as senior vice president for Whippoorwill Lane in Kerrville, Tex. financial management. With First Bank System since 78028, while their new home in that 1969, Mr. Dubiak joined as a city is being constructed. security analyst at the First Trust Daniel G. Brian and W. Joseph Company of St. Paul, and later was White have been elected assistant elected assistant secretary. vice presidents of Northwestern * * * National Bank of Minneapolis. Mr. Marvin L. Ellison, president of the Brian heads the international bank ing department’s Latin American Northwestern State Bank, St. Paul, 61 't "Our money order business im provedwhen Travelers Express took it over. Joe Cole, Teller Supervisor Northwestern National Bank of Minneapolis, Minneapolis, Minnesota Northwestern National Bank of Minneapolis issued its own money orders, but costs were high, and processing of its large-size money order was difficult. It found the smaller Travelers Express money order form was well accepted by both customers and bank personnel. And internal costs dropped dramatically. More and more banks are discovering that it pays to have the money order s p e c ia lis t run their money order programs. Travelers Express supplies all the forms, equipment and expertise you need. Your bank collects the profits. D o e s N o rth s o m e th in g a b o u t m o n e y o rd e rs th a t y o u o u g h t to k n o w ? Call us toll-free at 800-328-5678* *ln Minnesota call collect 612-546-6161 Travelers Express 1 4 0 0 L ila c D r iv e S o u th , M in n e a p o lis , M in n . 5 5 4 1 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ™ A Grevhound subsidiary éBBESaSk FINANCIAL SERVICES® - Northwestern Banker, June 1978 62 Twin Cities News has announced the election of George E. Wardeberg to the bank’s board. Mr. Wardeberg is the newly-ap pointed general manager of the Whirlpool Corporation, St. Paul division. Three appointments were announ ced recently at the National City Bank of Minne J. J. KING C. HI. FORSE, JR. apolis. They are: Lome A. Lepou d re, a s s is ta n t vice president, personal banking department: Gary D. Nordq u is t, in v e s t ment officer, and Michael A. Sum- |_. A. LEPOWDRE mers, assistant ára vice president, commercial banking R. H. RICE D. G. ST. ANGELO department, group A. Mr. Nordquist previously was with Moore, Juran & Co. Mr. investm ent banking firm, has announced two promotions in its Summers received a BS degree in institutional services department. John J. King has been named senior vice president and Wallace N. Peters vice president. Also announced were the promo tions of three to vice presidents in the institutional bond sales depart ment. They are C. Harry Forse, Jr., Raymond H. Rice and Donald G. St. Angelo. G. D. NORDQUIST M. A. SUMMERS First State Bank of Saint Paul recently opened its Little Canada Office and Little Canada welcomed it by naming an adjacent First Bank Dain, Kalman & Quail, Incorpora Drive. ted, M inneapolis-based regional The bank opened in a temporary business administration from the University of Minnesota. *** Full service investment firm we negotiate, underwrite, distribute Municipal Bonds JOE Vitale, o w n e r o f t h e V e n e t ia n In n , o p e n s t h e f ir s t a c c o u n t a t F i r s t S t a t e B a n k o f S t . P a u l’s n e w L i t t l e C a n a d a O f f i c e . L e f t to r ig h t a r e Tony Dinzeo, a s s t , m g r .; Dick Nadeau, m g r .; M r . V i t a l e , a n d Suzanne Parisi, c le r k . facility at its property at 2850 Rice Street. Dick Nadeau, vice president and manager, said construction on the permanent building should be completed in late fall. The temporary facility has two drive-up lanes. The bank’s main office is located at 1000 Payne Avenue, St. Paul. * * * Chairman George A. LeMaistre of the Federal D eposit Insurance Corporation has announced the appointment of Robert P. Gough to the position of regional director for the corporation’s Minneapolis area. Mr. Gough will have FDIC supervisory jurisdiction over insured state nonmember banks in Montana, Minnesota, North Dakota, South Dakota and Wyoming. He succeeds regional director Anthony S. Scalzi, 41, who has been named regional director for the FDIC Boston region. Mr. Gough, 43, was an assistant regional director in the Chicago region. He began his FDIC career on the bank examiner staff in the New York region in 1959. He was transferred to the W ashington headquarters office of the division of bank supervision in 1966, and was chief of the mergers and consolida tions review section when he accepted the Chicago appointment. Mr. Gough is a graduate of St. Peter’s College, Jersey City, N. J., the Graduate and Post Graduate School of Banking at the University of Wisconsin. MBA Incorporates Piper, Jaflray& H o p w o o d INCORPORATED Established 1895 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member New York Stock Exchange, Inc. Formal approval will be given to incorporation of the M innesota Bankers Association during its 88th annual convention this month. 63 “ American Correspondent Bankers w ill see you at the Minnesota Bankers Association Convention.” "The American is constantly working to become a better and better resource for our banker friends. We're ready to provide assistance in management of their businesses and support in dealing with their customers. We want to be known as the problem-solving place, where supervision is sound, where knowing people are available in a congenial, professional environment." American National Bank and lust Com pany Correspondent Division 5th and Minnesota Streets St. Paul, Minnesota 55101 612/298-6000 M em ber F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 64 St. Anthony Park Bank has a number of positions and is announced the promotion of Susan responsible for operations in data processing and currently is central Jaska to personal operations manager. loan officer. M rs. J a s k a *** joined the bank in A ugust of G. Richard Slade, president of 1977 as a loan Northwestern National Bank of St. representative. Paul, recently announced the elec She previously tions of Martin E. Krueger to vice was with the president and senior trust officer and Caterpillar Cred John G. Geiken to vice president, it Union of Illi operations support. n o i s for five Prior to joining the bank, Mr. years. She holds a BS degree in psychology from Western Illinois University. * * * Dain, Kalman & Quail Incorpor ated’s executive vice president, Robert Martin, recently was elected president of Carnegie Capital Man agement Co., Cleveland, the invest ment-management arm of Liquid Capital Income. Dain shares owner ship of Carnegie Capital with four regional investment banking firms. *** James W. Reagan, president and chairman of the American National Bank, St. Paul, has announced several staff promotions. Michael M. McNeil was elected assistant vice president in the correspondent bank division. He has been with the American since 1973 in various departments. Arden J. Fetherhuff was named assistant vice president. He joined M. NIC NEIL A. J. FETHERHUFF the bank in 1977 and is data processing manager of St. Paul operations. Ron L. Bailey was elected data processing officer. Mr. Bailey joined the bank in 1968 and has had various responsibilities in both St. Paul and regional data processing centers. He currently is acting regional center manager. Thomas H. Feld was elected operations officer. Mr. Feld has held Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M. E. KRUEGER J. G. GEIKEN Krueger was head of the investment section for the Mayo Foundation in Rochester, Minn. He holds a masters degree in business administration from the University of Wisconsin. Mr. Geiken joins the bank from Northwest Computer Services, Inc., another affiliate of N orthw est Bancorporation. He is a graduate of the University of Montana in Missoula. *** Marjorie M. Jameson has been named cashier of the First Nation al Bank of Saint Paul, according to Clarence G. Fram e, p re s i dent. She joined the bank in Octo ber, 1967, and has been working as an assistant in the staff services division. Maple Grove Bank Holds Open House A RIBBON of 69 $1 bills - one for each year the bank has been in service — was scissored in early March to dedicate a new bank building for the Northwestern Bank Northwest in Maple Grove. The ribbon was then given as one of the bank’s door prizes during its grand opening. The event touched off a week-long public open house with daily door prizes, premium promotions, dis plays and entertainment. A “Golden Shovel’’ from the groundbreaking ceremony held in June, 1977, was displayed in the bank lobby, piled high with silver dollars. Guests were encouraged to guess how much silver the golden shovel held. The grand prize of $305 was awarded to a local resident. Ribbon cutters included local area officials: Richard Riemer, mayor of Maple Grove; Northwest Bancorpor ation Senior Vice President, Jerry Kanne and Northwestern Bank Northwest President, Jim Heig. The Northwestern State Bank Northwest, formerly the Northwest ern State Bank of Osseo, recently changed its name to reflect the expanding market area it serves. Located on Highway 52 in Maple Grove, the building is set back from the highway for easy access to the bank, its parking area, or the five drive-in lanes. The two-story struc ture has 20,000 square feet and drive-in facilities for five lanes of cars plus parking for 80 automobiles. The vestibule houses a 24-hour total teller machine to handle deposits and withdrawals around the clock plus a night depository and after-hour walk up tellers. The greatly expanded teller line is bounded on both sides by officer service areas and the lobby opens to the ceiling giving a full two story effect. The Northwestern Insurance Agency also is on the first floor. The second floor contains the bookkeep ing and accounting departments, a director-officer meeting room and an employe lounge. A portion of the previous bank building in Os seo is being remodeled and maintained as a detached facility to provide banking services. Inclu ded are a 24-Hour Total Teller Machine and Night Depository. Genevieve C. (Mickey) Barber has been elected manager of the Osseo Convenience Center. Mrs. Barber has been with the bank since 1968 and has worked in the teller area, personal banking area, and most recently in instalment loans. Minnesota News 65 To Head St. Cloud Bank The Granite City National Bank of St. Cloud, a new bank, has elected D. Jack Robert son p re s id e n t and m anaging officer. He form erly was presi dent and mana ging officer of the First State Bank of Babbitt. The new bank, to be located D j ROBERTSON near the Cross roads Shopping Center, was approv ed last December. An application to change the bank’s name from Granite City National Bank to First Bank-St. Cloud, is pending before the U .S. Com ptroller of the Currency. The bank will open in temporary quarters this summer. Mr. Robertson began his banking career in 1965 as an adjuster in the timepay department of the First Bank of North Dakota-Grand Forks. He also has been with First Bank System and served as a personal banking officer at the St. Anthony Falls Office of the First National Bank of Minneapolis from late 1973 until his election at the Babbitt bank in 1975. SHOWN is a n a r c h i t e c t ’s s k e t c h o f th e new S ta te B ank of D a n v e rs p r e s e n t ly under c o n s t r u c t io n d o w n t o w n . Construction Begins at Danvers Bank HOMAS C. Connolly, president T of the State Bank of Danvers, has announced construction of new after five years of previous banking experience with Southern California National Bank. Mr. Rangen has bank quarters. been with the bank’s instalment loan The building, designed by Dykins department since 1977 and Mr. Associates, is a 51 by 67 foot, Campbell joined the bank in 1975 two-level structure accented by a and served two years as drive-in plan which provides a plaza teller. approach to the entrances —-one oriented to pedestrian traffic and the First Edina National other to parking. The site provides space for Elects Vice President off-street parking, drive-up facility Howard L. Weldon recently was with potential for remote terminal elected vice president in the stations, building expansion space commercial loan and landscaped areas. The 1,350 departm ent of square foot mezzanine provides First Edina Na space for an employe lounge, board tional Bank. room, storage, and future officer Mr. Weldon Litchfield Promotions expansion space. joins the bank Roger O. DeBoer, president of the Six teller stations will be included, Northwestern National Bank, Litch two of which can be shut off from the from North Provfield, has announced the appoint main lobby to provide after-hours i d e n c e , R . I . , where he held the ments of Bruce A. Pederson as service. position of busi agricultural loan officer and Leon J. One of the unique aspects of the ness de vel op Susa as loan officer. building is its design for energy ment officer in H. L. WELDON Mr. Pederson, 25, has been with efficiency. The building has earth the commercial loan department of the First Northwestern National berms on three exposures in order to Bank of Marshall as an agricultural reduce the heat loss in the winter and People’s Bank. He attended Johnson loan officer since his graduation from the heat gain in the summer. A and Wales College, Bryant College North Dakota State University in clerestory provides natural lighting and was graduated from Williams 1975. Mr. Susa, 35, has been with along with the potential for College School of Banking in 1972. ITT Thorp Corporation for the past capturing solar energy. four years, most recently as manager New Building for Tracy Bank of the Litchfield office. The Northwestern State Bank of Citizens State, Brainerd, Tracy recently broke ground at the Promotes 4 to Officers corner of Rolland and Third Streets Olivia Cashier to Head Citizens State Bank of Brainerd, for a new building, according to Women’s Banking Group recently announced the appointment Wendell Anderson, president. Helen Mahnke, cashier of the of four employes to officer positions. The structure will have 15,000 Citizens State Bank of Olivia, They are: Ron Hart and Karen Owen square feet with a full basement and recently was elected chairwoman of to real estate loan officers, and a mezzanine that overlooks the main the southwestern Minnesota group Rodney Rangen and Reed Campbell banking lobby. Three drive-up units of the National Association of Bank to instalment loan officers. and a customer service area with a 24 Women, Inc. She has been with the Mr. Hart joined the bank’s hour cash machine will be included. bank for 30 years as bookkeeper, instalment loan department in 1975. Completion is planned for the first teller, assistant cashier and cashier. Mrs. Owen joined the bank in 1975 part of 1979. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 Northwestern Banker, June 1378 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 When you’ve reached the top of your legal lending lim it, what's your next step? Call Marquette. Marquette has been providing that “ next step” with overline loans for years. And we want to continue helping you help that customer whose credit needs have grown beyond your bank’s lending limit. After all, he’s your customer. And we want to keep it that way. You retain con trol. We merely provide the funds beyond your lending limit and, when you need it, the expertise to assist you with those difficult decisions. Remember too, Marquette will partici pate in your loans to provide liquidity during periods of peak loan demand. So, whenever you have loan requests that exceed your lending limit or when ever your total loan portfolio restricts liquidity, take that next step. Call Mar quette and talk with Len Erickson or Pat Stotesbery. Bill Rosacker Bill A ddington Len Erickson Dick Holm es Pat Stotesbery Bill Klein 370-2394 370-2165 370-2168 370-2167 370-2164 370-2281 Correspondent Banking Department A Marquene National Bank 777 Marquette Avenue, Minneapolis, MN 55480 The Visa Card Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 68 M innesota N ew s Mr. Young was with Western Adjustment and Inspection Compa ny at Virginia before joining the Peter L. Hollister is the new bank in 1957. He was elected president and managing officer of assistant vice president in 1966 and the First State vice president in 1971. He has served Bank of Babbitt. as head of the commercial loan He succeeds D. department, marketing and adverti Jack Robertson sing. who has been elected president of the Granite Edina Bank Elections C ity N a tio n a l Duane C. Brinkman has been B a n k of S t . elected assistant vice president and Cloud. manager of the sales finance Mr. Hollister p L H O LLIS T E R department and James D. Rorvick m o st re c e n tly was vice president of The First Bank of Rolla in North Dakota. He began his career in 1968 as an adjuster at the First National Bank of Minne apolis. He had been with the Rolla bank since 1974 when he was elected assistant vice president and manager of the timepay department. First State Bank of Babbitt Elects Hollister President To Head St. Cloud Bank D. C. BRINKM AN J. D. RO RV ICK Tim Stem is the new president of the Northwestern Bank of St. Cloud, according to Jerry Kigin, newly-elec- personal banking officer of the First ted chairman. Mr. Stern previously Southdale National Bank of Edina. Mr. Brinkman was an assistant vice president in the instalment loan department of the American Nation al Bank of Denver, Colo., before joining the bank. Mr. Rorvick joined the bank in 1973 and has held positions in the marketing, opera tions and personal banking depart ments. T. ST ER N J. KIGIN served as president of the North western National Bank of Norfolk, Nebr. Thirty of Mr. Kigin’s 35 years in banking have been spent with the St. Cloud Bank. He served as president since 1955 and was elected chairman recently. Mr. Stem had been president of the Norfolk bank since 1974. He began his banking career at Northwestern National Bank of Sioux Falls, S.D. Bemidji Bank Plans Remodeling, Facility The board of the First National Bank, Bemidji, has announced plans to remodel its present building at 502 Minnesota Avenue to provide about 7,000 square feet of additional area. Preliminary plans call for exten sion of the current building to the alley with two levels including an elevator to provide access to a lower level containing the real estate and safe deposit box departments. The building will include additional walk-up teller facilities. All present departments will be enlarged by Retires at Grand Rapids nearly 80 %. The exterior of the addition will be After 21 years of service, Ollie Young has retired as vice president of the same material and design as of the First Northwestern National the present building. The interior will be completely remodeled and Bank, Grand Rapids. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis redecorated and the lower level will utilize natural lighting from exterior windows and a skylight. The bank also has received approval to establish a detached facility on Highway 2 West near Ash Avenue. The facility will provide for three inside tellers, two drive-up windows, night depository and space for one officer. Tentative plans call for opening of the facility on or before July 1 and the existing building expansion for completion in early 1979. The bank also announced the election of Robert J. Welle as chairman and E. Joseph Welle as executive vice president. Robert Welle succeeds his father, the late N. A. Welle. Robert Welle joined the bank in 1971 as vice president. He previously had worked at the St. Cloud National Bank and Trust for 23 years where he continues to serve as director and tru s t departm ent director. He is a 1948 graduate of St. John’s University. E. Joseph Welle joined the bank in 1956. He is a 1952 graduate of St. R. J. W E L L E E. J. W E L L E John’s University and also was graduated from the Central States School of Banking at the University of Wisconsin, Madison. Northwestern of Virginia Announces 3 Promotions Northwestern State Bank, Virgin ia, has announced the following three promotions: Linda Niskanen, officer and manager of the mortgage loan department; Sue Hansen, assistant operations and security officer, and Jean Beste, assistant operations officer. Named at Luverne Paul R. Hanson has been appointed operations supervisor at the First National Bank of Luverne. He had been with the First National Bank in Mankato since 1976. 69 O F F IC E R S of the South Dakota Bankers Association for 1978-79 are, from left: Immed. Past Pres.— Charles T. Undlin, pres., 1st Natl. Bank of the Black H ills, Rapid City; Pres.— Ray L. Plowman, pres., First State Bank, Armour; 1st Vice Pres.— Glenn H. Waltner, pres., 1st Natl., Freeman; 2nd Vice Pres.— John W. Thomson, pres., The Bank of Centerville, and Exec. M gr.— J. I. Milton Schwartz, Pierre. SDBA convention last month in Rapid City. He succeeds Charles T. Undlin, president of the First National Bank of the Black Hills, Rapid City. Glenn H. Waltner, president, First National Bank, Freeman, moved up to be first vice president, and John W. Thomson, president, The Bank of Centerville, was elected second vice president. Mr. Thomson’s father, John N. Thomson, chairman of The Bank of Centerville, served as SDBA president in 1938-39. J. I. Milton Schwartz continues as executive manager, headquartering in Pierre. Orville L. Bonacker, vice president and cashier of The First National Bank in Sioux Falls, was elected to a two-year term on the ABA governing council. Lee L. Steele, president, Farmers & Merchants Bank, Huron, has one more year to serve on the ABA governing council and as the senior representative from South Dakota will serve during the next year also as ABA state vice president. In that position he succeeds Curtis A. Lovre, retired chairman of Northwestern National Bank, Sioux Falls, who is completing his two-year term on the governing council. All three men are past presidents of the SDBA. All of the 670 registrants at the convention, the largest attendance ever for the annual convention in Rapid City, were greatly impressed with the beautiful new convention facilities contained in the Rapid City Civic Center. Its architectural design, both inside and out, give it an aesthetic appearance and functional use Four convention principals were Mark W illes, pres., Federal Reserve Bank of Minneapolis; Chuck Undlin, pres, of the SDBA the past year and pres., 1st Natl. Bank of the Black H ills, Rapid City; Tom Sm ith, treas. of the ABA and pres., First Fidelity Brenton B&T, Marshalltown, la., and H. P. Pat Dixon, genl. chmn. of the convention and a.v.p.-m ktg., 1st Natl, of the Black H ills, Rapid City. Pictured leaving the ladies’ luncheon are, from left: Front— Maxine Knox, Commercial T&S, M itchell; Pauline Waltner, 1st Natl., Freeman, and Debbie Gates, asst. exec, mgr., SDBA, Pierre. Back— Betsy Holdhusen, pres., Ipswich State; Doris Winter, Andes State, Lake Andes; Verna Mateer, Pierre, and Judy Schwartz, SDBA, Pierre. South Dakota Bankers Elect Ray L. Plowman as President By BEN HALLER, JR. Editor AY L. Plowman, president of the First State Bank in Armour, was advanced to the presidency of the R South Dakota Bankers Association at the 86th annual https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 70 South D a ko ta N e w s the equal of any similar structure. The central portion offers meeting facilities that may be expanded or divided into various size acousticized rooms to accommodate each group. A modern theater is at one end of the structure, and an arena at the other end. It was an ideal place for the convention: Richard C. Hottelet, United Nations correspondent for CBS News, gave an in-depth review of world affairs that left a sobering picture of international politics and trade. Mark Willes, president, Federal Reserve Bank of Minneapolis, also gave a somber note to the morning session while describing what he termed “a developing crisis.” A positive result of the federal government’s effort to aid the economy, he said, is that we are now in the fourth quarter of an unprecedented recovery which created four million jobs last year and one and one-half million this year. We are, in effect, at full employment, he feels, and “the only way to get it below 5V2 % to 6% is by structural programs.” “The warning signals of inflation are clear, however,” he emphasized, “and we will find out if we have the courage to do something about it.” He said the forecast a year ago for inflation was 6 % and going down. “Now,” he said, “it is 7% and going up,” warning it will continue to rise if unimpeded. He blames three basic reasons for rising inflation: 1. Government deficits continuing to climb, and probably will be closer to $75 billion. 2. Special interest government legislation and rulings; e.g., farm support, consumer regulations, a 39% wage rise coal settlement. 3. The Fed let the money supply grow too fast. Instead of growing at 4V2 % to 6 V4 % it went to IV 2 % and was higher than that for a six-month period. The only remedy, he stated firmly, is to reduce the size of the federal deficit, reduce expenditures, and skip the tax cut. He closed by simply stating, “We’ll be lucky if we get one out of three—probably only the latter.” (A few days later President Carter agreed to consider reducing the size of the tax cut.) Thomas R. Smith, ABA treasurer, and president of First Fidelity Brenton Bank and Trust Company, Marshalltown, la., presented the ABA’s rundown on current legislation and the association position on each bill. Most urgent at the time, he said, was the need for all voices to be heard on the Labor Reform Bill. Royce Hackl, v.p., Bank of Hoven; Charles Ekstrum, pres., 1st Natl., Philip; Steve Thompson, corr. bkr., Northwestern Natl., Minneapolis, and Jim Hart, exec, v.p., Hand County State, Miller. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tony Welder, dir., and Barbara Welder; Clifton Birkeland, dir., and Inga Birkeland, and Fred Menzel, pres., and Shirley Menzel, all with Farmers State, Dupree, and Evie and Don Lindeman, a.v.p., 1st Natl., St. Paul. Jerry Ju st, v.p., and Tom Pohlman, corr. bkr., both with Northwestern Natl., Sioux City, la., visit with Jean and Don Juffer, pres., Commercial State, Wagner. Larry Somer, cash., 1st Dakota Natl., Yankton; Dan Sim kins, corr. bk. o ff., and Don Bergum, v.p., both w ith 1st Natl, of Minneapolis, and David G ross, tr. o ff., First Dakota Natl., Yankton. South D ako ta N e w s ^ 71 Dr. Robert J. Samp, M.D., University of Wisconsin School of Medicine, Madison, gave his prescription for longer, more enjoyable and healthy life—stop and smell > the roses, relax, solve today's problems now and face the others later. Linda S. Sherman, consultant with National Solar Heating & Cooling Center, Radnor, Pa., gave a slide presentation showing various types of solar constructed business buildings and homes, pointing out efficiencies of various methods used. Ray Dana, v.p., Com m unity Bank, Hartford; Rich Breyfogle, v.p., and Stan Fredericks, v.p., both with Toy Natl., Sioux City, _ la., and Don Whealy, v.p.& m gr., Colton branch of Community Bank, Hartford. Dennis Kirkeby, v.p., 1st Natl., Sioux Falls, visits with Bob Knopke, a.v.p., American Natl., Sioux Falls. Dwight Bos, U. S. Check Book Co., Omaha; Dick Storlie, a.v.p., Northwestern Natl., Minneapolis, and Bonnie and Jim Arend, v.p., Security State, Emery. . Gene Noell, 2nd v.p., and Dan Burnight, credit card mktg. off., both w ith The Omaha Natl., Omaha, and Joan and William Harrington, v.p., Dakota State, Colman. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bob Sam ple, DeLuxe Check Printers, Inc., Sioux Falls; Mike Clark, v.p., Natl. Bank of South Dakota, Sioux Falls, and Clyde McEntire, DeLuxe Check Printers, Marshalltown, la. Bob Hawley, v.p. & mgr., Bristol branch, 1st Natl, of Aberdeen; Chuck Maddux, a.v.p., American Natl., St. Paul, and Pat and Frank Farrar, B ritton. Northwestern Banker, June 1978 72 South D a ko ta N ew s Bud Weisser, regional sales manager for Daktronics, Inc., Brookings, hosted a breakfast attended by approximately 100 bankers. Daktronics manufactures time, temperature and message center electronic signs Fearsome foursome consists of C. P. Buck Moore, pres., Northwestern Natl., Sioux Falls; Curt Lovre, retired chmn., Northwestern of Sioux Falls; Bob Walrath, pres., 1st Natl., Watertown, and Morris Winter, pres., Andes State Bank, Lake Andes. Gary Stevenson, v.p., 1st Natl., Sioux City, la.; Walt Wintrode, supt. of bkg., Pierre; R. D. Clausen, exec, v.p., Valley State, Yankton, and Dick Taylor, pres., 1st N atl., Sioux City. for banks and other firms. Guest speaker at the breakfast was C. P. Buck Moore, president of the Greater South Dakota Association and president of Northwestern National Bank in Sioux F alls. □ Mike H iggins, a.v.p., and Stan Peterson, v.p., both w ith Midland Natl., M inneapolis, await tee-off tim e. Jeff Moran (left), corr. bk. o ff., and Bill Henry (right), v.p., both with 1st Natl, of Omaha, teamed up w ith Verlon Schmidt (center), Western State Bank, Sioux Falls. LeRoy Erickson, pres., Langford State; Avery Fick, v.p., Marquette Natl., Minneapolis, who was attending his last state convention before taking early retirement last month; Marvin Bormann, pres., Farmers State, Stickney, and Dick Holmes, a.v.p., Marquette Natl., Minneapolis. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Herman Lerdal, pres., First M itchell Natl., chats with Curt Mateer, retired vice chmn. of Pierre Natl. South D ako ta N ew s 73 More pictures from South Dakota Bankers convention Bernie Lattyak, a.v.p., 1st Nati., Sioux City, la.; Jerry Feldhaus, sr. v.p., and Don Tarleton, pres., both with United Natl., Sioux Falls, and Gary Stevenson, v.p., 1st Natl., Sioux City. Jam es J. Jares, v.p., and Allan Larson, pres., both with Farmers State, Winner, and Larry Hansen, v.p., U. S. Natl., Omaha. Northwestern of Sioux Fails Announces 4 Promotions tranferred to the Banco corporate office in 1972 until moving to the Northwestern National Bank, Sioux C. P. (Buck) Moore, president ofCity, la., in 1975 and to Sioux Falls Northwestern National Bank of in 1977 as personnel director. Sioux Falls, has announced the following four staff promotions: Charles J. Janssen to vice president National Bank of S.D. and director of personnel, Robert C. Elects Schmidt Controller Oliver to personal loan officer, Mark The board of the National Bank of Wahlstrom to mortgage loan officer, South Dakota, Sioux Falls, has and Rita Schulte, Huron Branch, announced the election of Bradley J. from personal loan officer to auto Schmidt as controller. Mr. Schmidt, a graduate of Hamline University in St. Paul, Minn., began his banking career with First Bank System, Inc., in Minneapolis as a financial analyst. Most recently he served as a financial analysis officer in the financial division of First Bank System. First Mitchell Bank Names Instalment Loan Officer Elaine Groeneweg has been named instalment loan officer of First Mitchell Nation al Bank. She has been with the bank for eight years as teller, bookkeeper, and secretary for the commercial loan M. W AHLSTRO M R. S C H U LT E and instalm ent E. G R O EN EW EG bank manager and personal loan lo a n d e p a r tofficer. ments. She also has been with the Mr. Janssen, a graduate of United Bank of California. Augustana College, was in the bank’s management training pro gram from 1967-72 as an assistant Trust Company Election auditor and personnel officer. He Gary Gunderson has been elected https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a trust officer of First Northwestern Trust Company of South Dakota, Rapid City. The company is affiliated with the First National Bank of the Black Hills. Mr. Gunderson, a native of Aberdeen, moved to Rapid City in 1973 to join Piper, J affray and Hopwood. In 1976 he joined the trust department of the First National Bank of the Black Hills, which later became a part of First Northwestern Trust Company of South Dakota. Joins Watertown Bank R. H. Walrath, president of the First National Bank of Watertown, has announced the addition of Dale V. Christensen as a trainee in the instalment loan department. Mr. Christensen most recently served as a sales representative for Moriarty Construction in Brookings. Named at Sioux Falls Donald W. Fick has been named trust officer of First Northwestern Trust Company of South Dakota, Sioux Falls. Mr. Fick was with the First National Bank of Luveme prior to joining N o rth western National Bank of Sioux Falls in 1962 as D. W. F IC K an audit trainee. In 1963 he was assigned to the trust department. Northwestern Banker, June 1978 74 ing schedule. The banking industry’s sponsorship will include: the NBC evening news during the week of July 10, the Saturday Movie on July 15, Black Sheep on July 19 and 26, UFO on July 23, the Rockford Files on July 28, and the Tuesday Big Event on August 8. All of the summer programs will appear on NBC network affiliates. North Dakota News WAYNE A. STROUP HARRY J. ARGUE President Secretary Garrison Bismarck assistant vice president in the loan Jerry C. Rask has joined the First department. A native of Cleveland, Mr. Weber Northwestern National Bank of joined the First Bank of North Mandan as as Dakota, Jamestown, four years ago, sista n t agricul and has worked in instalment and ag tural representa lending. He has attended an ag tive, according credit school sponsored by First to J. E. Noonan, Bank System, Minneapolis. president. Mr. Rask, 28, is a recent gradu ate of North Da kota State Uni CONVENTION REPORT versity, m ajor J. C. R A SK The North Dakota Bankers ing in agricultur Association annual convention al economics. He also is a graduate was in progress in Minot as this of Bismarck Junior College and issue was being printed. An North Dakota State School of on-the-spot report with pictures Science. After a brief training from Editor Ben Haller, Jr., period, he will be working with will appear in the next issue. agricultural and agribusiness loans. Joins Mandan Bank 2 Retire at Bismarck H. L. Thorndal, president of the Bank of North Dakota, Bismarck, has announced the retirement of Freda Rubbelke from the investment and trust department and Thelma Mannel from the student loan department. Mrs. Rubbelke is retiring after 19 years and 10 months of service to the bank. She worked in the loan department, mineral trust depart ment, and the investment and trust department. Mrs. Rubbelke was named an assistant cashier on December 30, 1975, by the North Dakota Industrial Commission. Thelma Mannel joined the bank on October 25, 1967, and has retired after 10 V2 continuing years of service. Mrs. Mannel began working in the operations department and transferred to the repayment section of the student loan department in 1970. Joins First National, Oakes Greg C. Weber has joined the First National Bank of Oakes as an Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banks To Cosponsor Football Telecasts The American Bankers Associa tion (ABA) announced recently that it will again cosponsor football telecasts — including the NFL Championships and the Super Bowl — on CBS and NBC this fall. Sandra J. McLaughlin, chairman of the Association’s communications council, said the ABA commercials will be aired during telecasts of 22 of the 31 pro football games scheduled for 1978. The line-up covers the prime games for the season, with peak audiences expected. The commercial spots will high light full service banks, and the ways they benefit communities and affect individuals’ lives. Extensive tie-in m aterial will be available for individual local banks from Full Service Bank Productions, Inc. (a division of Christmas Club Corpora tion) . Ms. McLaughlin, who is vice president of Mellon Bank, N.A., Pittsburgh, also announced the ABA’s prime-time summer advertis- Saul Elected Instalment Lending Division Chairman J. Donald Saul, vice president at the First National Bank of Cincin nati, has been elected chairman of the instalment lending division of the American Bankers Association (ABA). He will begin his one-year term in October, 1978. Salomon Brothers Sees Higher Bank Earnings The earnings of commercial banks this year are expected to post gains which will eclipse any previous year in recent memory, according to a major study by Salomon Brothers’ bank stock department in New York. Entitled “A Profile of Commercial Banking in the United States,” the report covering 30 major banking companies was written by Warren R. Marcus, general partner; Thomas H. Hanley, vice president, and Jeffrey L. Cohn, bank stock analyst.. They are projecting a composite earnings increase for these 30 banking companies ranging from 14% to 16% for 1978. This would compare with an actual gain of 11.7% in 1977. The authors’ expectation of an exceptional year in bank earnings is strongly supported by very good first quarter 1978 results. For the 30 company group, they note, first quarter earnings ‘‘totaled $788 million, up 23.1% from the $640 million in the comparable 1978 period.” However, they do not anticipate that the 1978 first quarter rate of gain will be maintained over the full year since generation of earnings was progressively stronger with each quarter last year. This year’s anticipated record expansion in earning power, the report states, will be fueled mainly by substantial growth in loan assets, together with stable to slightly higher net interest margins. 75 Five new ways to talk business. Talk about progress: Northwestern Bell has made significant improvements in business com munications equipment over the past few years. By talking to people like you. Finding out how we could make the telephone into an even more powerful business tool. And then doing it. Some of the results are shown here. Look them over. Then let’s talk. T h e D im en sion P B X . This is the ultimate in business communications equipment. Designed specifically with the needs of business people in mind, Dimension includes a host of time-saving, money-saving features—including a programmable memory bank that controls / the system. Highly flexible and adaptable to changing needs, the stored program can be updated simply by changing a program tape. Plug-in modules can be added as needed. Com K ey S ervice. The business “push button” telephone system that does just about everything but take coffee breaks (like provide your customers with music on hold; lets you set up your own instant conference calls). A family of small and medium sized communications systems designed to meet the needs of many different businesses. T h e A utoM atic T eleP h one. It answers your calls when you can’t with your own personal recorded message. Then records up to 20 minutes worth of your 1 callers’ messages. Easily incorporated with either Touch-Tone or rotary phones so you W can be in two places at once! ■ T h e T ouch-a-m atic T elep h o n e. T h e D atasp eed 40 D ata Term inal. It talks to computers and other data terminals. Easy preparation and editing of text. Information is displayed on a CRT where it can be easily changed, using simple controls. Modular design lets you select the capabilities you need and add others later. Simple programming allows this remarkable phone to “remember” up to 31 local and long distance phone numbers. Calling any of those numbers is as easy as push ing a button. Business people who frequently call regular customers and suppliers will find the Touch-a-matic phone to be a welcome and hard-working business partner. Let’s talk now. Call Northwestern Bell now and ask your Account Executive for more information about improving your business communications system. Or mail the coupon. Tell me m ore about th e fo llo w in g : □ A u to M a tic T e leP hone □ The D ataspeed 40 Data Term inal Nam e____ C om pany- □ Com Key S e rv ic e N B 678 □ The Touch-a-m atic Telephone D The D im ension PBX -T itle - .T e le p h o n e N u m b e r, Type o f B u s in e s s . A ddress_________ C ity (__ -S ta te - Z ip _ Mail to: N orthw e ste rn Bell, 100 S outh 19th S treet, S u ite 702, ___ C apitol Plaza, Omaha, Nebraska 68102 Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 76 City Bank of North Little Rock, Ark., and Ms. Crow from United Banks of Colorado. Colorado News LEO HILL G. L. SCARBORO President Exec. Mgr. United Bank Names 3 To Vice Presidents Boulder Denver personal contact with existing and Bruce W. Hulbert was elected potential customers. The borrower doesn’t need to president and chief executive officer specify the purpose for the funds or of the American even come to the bank to make the National Bank of transaction, according to Linda Denver recently. Finch, Executive Chextra manager. He s u c c e e d s The funds requested Lire deposited Robert J. Frank, to the customer’s VISA, Chextra who was fired for account, the guaranteed checking allegedly not re account, which carries an additional porting loans he line of credit for overdraft protection. had taken out at Mr. Hoffman said the bank doesn’t other banks. plan to begin advertising the service Mr. H ulbert until later this year. was senior vice Account holders, whose minimum president at United California Bank draw against the account is $1,000, in Los Angeles and administrator of have a wide range of options for the largest of the bank’s six repayment, including monthly or operating regions in California. He quarterly charges against their has been in banking for 16 years.$ checking accounts. Both U nited California and American National are subsidiaries of Western Bancorporation. Denver President Named CONVENTION REPORT Central Bank of Denver Markets Executive Account A service for executives that features an unsecured personal line of credit of up to $25,000 is being introduced by Central Bank of Denver after an 18-month marketing trial. Executive Chextra is offered to executives and professionals who have a minimum annual salary of $30,000, a record of good credit and substantial net worth, according to Donald D. Hoffman, president. The product offers substantial interest savings — the interest rate is only 2% above the bank’s prime rate — and it is convenient, Mr. Hoffman explained. Bank clients participating in the program can activate their line of credit, which ranges from $5,000 to a maximum of $25,000, simply by filling out a form similar to a check. Central Bank opened its first Executive Chextra account in the fall of 1976 and marketed the service primarily through direct mail and Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis United Bank of Denver has announced the appointments of Neil E. Allen, Alan D. Linton and Faris D. Weber to vice presidents. Mr. Allen a member of the agribusiness market, joined the bank in October of 1973 as an agribusiness representative. He was named commercial banking officer in 1974 and assistant vice president in 1976. Mr. Linton, m anager of the enterprise market, joined the bank in 1972. Mr. Weber manages the Master Charge department. He joined UBD in 1969 as a loan adjustor, was named personal banking officer in 1973 and assistant vice president in 1976. Other new appointments include W. Nicholas V. M athers and Lawrence J. Ricketts to assistant vice presidents; Karen U. Ellis, operations officer; Frances W. Allen, personal banking officer, and Ann C. Thacker, trust operations officer. First of Denver Installs ATM at Sears Store The First National Bank of Denver has announced plans to install an automated teller machine (ATM) on space leased from Sears, Roebuck and Co. at its Sears/Cherry Creek location. The installation is scheduled for mid-summer opera tion. The planned ATM location is still subject to approval by regulatory authorities. Phillip J. Hogue, bank executive Cherry Creek National vice president, in making the Announces Appointments announcement, stressed that the The Cherry Creek National Bank, ATM will not be owned or operated Denver, has announced the following by Sears. Rather, he said, it will be appointments: Thomas J. Flanagan, the first TransAction bank located vice president, corporate bank off bank premises. Such off-premise lending; James R. Moss, vice ATMs are now permitted by The president, commercial loans; Bruce Colorado Bank Electronic Funds M. Basham, commercial loan officer, Act. The new site will allow customers and Beverly Ann Crow, marketing of First of Denver, as well as five officer. Mr. Flanagan comes to the bank other First National Bancorporation from Oakland, where he was a vice affiliates and six correspondent president for Union Bank. Mr. Moss banks, to utilize automated banking previously was with the First at Cherry Creek. Another location, National Bank of Southglenn while at First of Denver Civic Center, was Mr. Basham came from the Twin opened recently. The Colorado Bankers Associa tion annual convention was underway in Colorado Springs as this issue was being mailed. An on-the-spot report with pictures from E ditor Ben Haller, Jr., will appear in the next issue. 77 *■ Wfe m alte big ideas happen. With specialists who know your territory. When you bring your correspondent needs to Colorado National Bank, you’ll be working with people who understand the problems and recog nize the opportunities in your territory. Our specialists have the authority to make decisions fast—and provide the innovative service that you have to have in money markets that change every day. Whether you need an overline, a loan to start a new bank or acquire one, trust service, cash letter analysis or daily cash management assis tance-give our specialists a call. A. Tobie Safer, Administrative Assistant. B. Bill MacMillan, Assistant Vice President, Eastern Colorado. C. Dave Fowler (1. ), Correspondent Officer, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wyoming and other financial institutions; Jon Clark, Correspondent Officer, New Mexico and Western Colorado. D. Lance Johnson, Vice President and Manager. You’ll find our correspondent team backed by top management commitment—to channel the full resources of Colorado National Bank—to make your ideas come to life. Give us a call at (303) 893-1862. We make big ideas happen in correspondent banking. M em ber FDIC OLORAD ATIONA :JiVl Northwestern Banker, June 1978 78 Colorado N e w s cashier and one of the original directors. Sign Revolving Credit Agreement for Housing A $20 million revolving credit agreement has been reached which will finance the construction and renovation of rental developments for low-and moderate-income elderly people and families in Colorado. The agreement was signed May 3 by Colorado H ousing Finance Authority Executive Director David W. Herlinger and is between CHFA and a consortium of banks formed by The First National Bank of Denver. The agreement extends an original credit agreement reached in 1976 which thus far has resulted in HASKELL H. Croy, a.v.p., retail lending, Central Bank of Denver, spoke on providing approximately 1800 apart ment-type units. adjustments. Other members of the lending consortium are Colorado National 70 Attend Denver Bank’s Bank, Chemical Bank (New York), Continental Illinois Bank (Chicago) Correspondent Seminar and American Security Bank (Wash Bankers from throughout Colora do participated in the recent Central ington, D.C.). Bank of Denver seminar, “How to Get the Most for Your Money from Your Correspondent Bank,” at the John Evans, Sr. Brown Palace Hotel in Denver. One of Colorado’s most distin Donald H. Echtermeyer, senior guished citizens, John Evans, Sr., vice president, correspondent bank died recently at his home in Denver ing division, said the half-day follwing a brief illness. He was 93. seminar offered “something new for Mr. Evans, the grandson of every participant.” Seventy bankers Colorado’s second territorial gover from Central’s correspondent banks nor, was graduated as an electrical met with Central Bank officers to engineer from the Massachusetts discuss recent developments in such Institute of Technology in 1907. In areas as commercial support lending, 1916, Mr. Evans was named individual retirement accounts, mu president of the International Trust nicipal leasing, automated teller Co., serving in this capacity until machine sharing and new products 1932. and services available to correspon In 1928, he also was named dent banks. president of The First National Bank The seminar also included discus of Denver. He held the office for the sion of regulation compliance, next 31 years, until 1959, when he availability schedules, teller training retired and became honorary board and equal employment opportunity chairman, a post he held until his and affirmative action programs. death. To Head Fort Collins Bank Wes G. Johnsen recently was named president and a director of the United Bank of Fort Collins. He replaces Bob Dunn, who resigned as president but will remain as chairman. Mr. Johnsen most recently was president and chief executive officer of the United Bank of Littleton. He joined the bank 20 years ago as a Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis She is a graduate of the University of Michigan with a BA degree in economics and received a MS degree in judicial administration from the University of Denver Law School. Ms. Case, who attended Louisiana State University, joined United Bank of Denver in 1973. She has held the positions of business information supervisor, personal banker, and junior executive banker. Mr. Jenkins received his A A degree in finance from Arapahoe Community College. He joined UBD in 1969 as a loan adjustor in master charge. He also has served as a senior credit adjustor, credit approv al supervisor and personal banker. Name Changes The following banks have changed their names: Castle Rock National Bank, to Firstbank of Castle Road, N.A., Castle Rock; First Westland N ational Bank, Lakewood, to F irstb an k of W estland, N .A .; Westland National Bank, Long mont, to First bank of North Longmont, N.A., and Wheat Ridge National Bank, to Firstbank of Wheat Ridge, N.A. AIG Earnings Up 26% American International Group, Inc., New York, reported that consolidated income from operations after income taxes reached a record $36,800,000 or $1.16 per share, an increase of 26.1% from the $0.92 or $29,000,000 achieved last year. These figures exclude net realized capital gains of $300,000 or $0.01 per share in each period. At March 31 consolidated assets and capital funds approximated $3.2 billion and $636 million respectively. General insurance net premiums written surged 23.1% in the quarter to $343,800,000. The combined underw riting ratio was 92.58, compared to 91.72 recorded in 1977. Net investm ent income was United Bank of Denver $25,200,000, up 35.8%, reflecting Announces Appointments extraordinarily strong domestic cash United Bank of Denver has flow and investment income from the announced the appointments of $60,000,000 borrowed in the first Katherine Jeter to personal trust quarter of 1977. officer and Barbara Kay Case and The company’s life insurance Leonard M. Jenkyns to personal operations were ahead of objectives banking officers. with premium income up 26.7% to Ms. Jeter joined UBD in October, $40,900,000 and operating income of 1977, as a trust account manager. $4,000,000, an increase of 26.4%. In to lunch. No one likes to miss lunch. And th a t includes our correspondent bankers. Only thing is, they try to work it so their lunch hour isn't the same as your lunch hour. Or they may eat in. So that when you call for assistance, you'll always find someone here to help you. W hether you w ant to ta lk about a loan to help buy a bank or start a new one. Or would like us to participate with you in a good sized loan to one of your good sized customers. of Denver Whether you need assistance with managing your liquidity through Treasury bills or Federal fund transactions. Or have need for one or more of the special ized services we offer. Like data processing. Or our new VISA® card programs. Whatever your need, we invite you to call us at 893-3456 in Denver. Anytim e. Even during lunch. You'll find we've added a whole new dimension to bankers' hours Because we're hungry fo r your business. Central Bank A Financial Service of . R a lc tw m https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 303-893-3456 80 officer, to assistant manager, timepay department, and Shirley Prue, to instalment loan officer, timepay department. Mr. Shipley has been with the bank for over 10 years in all capacities in the timepay depart ment. He is a graduate of Montana State University. Mr. Dougan also is a Montana State University gradu ate. Mrs. Prue joined the bank’s timepay department in 1960. Montana News W. R. TAIT President J. T. CADBY Secretary Butte Helena Fossil Butte Bank Names Executive Vice President William J. Kvenild of Riverton has been named executive vice president and chief operating officer of the Fossil Butte National Bank, Kemmerer. He replaces Robert Callis who resigned several months ago to return to the midwest. Mr. Kvenild has been with the Bank of Laramie and the American National Bank of Riverton since graduation from the University of Wyoming in 1971. He is a native of Big Piney. Joins Worland Bank James R. Hinkle has joined the Stockgrowers State Bank in Wor land as a vice president. Mr. Hinkle was graduated from the University of Wyoming in 1967 with a degree in agricultural business and spent two years doing graduate work in ag economics. In 1969 he joined the Metropolitan Life Insurance Co. as a field representa tive in farm mortgages in southwest Kansas. In 1974 he joined the Fidelity State Bank in Garden City, Kan., as a farm representative. Wilbur R. Holt tration graduate of the University of Montana, ranched for 15 years at Stevensville. He also operated a registered Hereford Ranch there in partnership with his father-in-law. For the past six and a half years, Mr. Rhodes has been a bank examiner with the state. Malcolm Adams, president of the First National Park Bank, Living ston, has announced the appoint ment of Keith Armstrong to vice president. Red Lodge Bank Names Mr. Armstrong began his career with First Bank System in 1971, as a Executive Vice President Richard Powell has joined the trainee at the Midland National Montana Bank of Red Lodge, N.A., Bank in Billings. In 1972 he was as executive vice president. He transfered to the First National comes from Glendive, where he was Bank, Lewistown, and was promoted vice president and agricultural to instalment loan officer. In 1973 he representative with the First Nation was transfered to the First Bank of Langdon, N.D., and was promoted al Bank since 1966. to assistant vice president. He joined Mr. Powell was born and raised on the Livingston bank in 1976 as a livestock ranch near Whitehall. He assistant vice president and manager was graduated from Montana State of the real estate department. University in 1959 with a degree in agriculture. Billings Bank Appoints Assistant Vice President Richard A. Kjoss, president and chief executive officer of Security Bank, N.A., Billings, has announced the recent appointment of John P. Thomas as assistant vice president and director of marketing. Prior to joining the bank, Mr. Thomas served as marketing director at the Exchange National Bank of Colorado Springs, Colo., and also as marketing officer with the First National Bank of Denver. He earned his marketing degree from the University of Denver. Funeral services were held recently for Wilbur R. Holt, 95, Buffalo banker. Mr. Holt joined the First National Bank as a janitor in 1903 and rose to the office of bank president, chairman and at the time of his death, was honorary chairman of the board. Butte Bank Promotions First Metals Bank & Trust Company, Butte, has announced the Joins Hamilton Bank following three officer promotions: Weston Rhodes has joined the Jack R. Shipley, assistant vice Citizens State Bank, Hamilton, as president and assistant manager of assistant cashier, real estate and the timepay department, to manager of the personal banking department; agricultural loan officer. Mr. Rhodes, a business adminis James W. Dougan, instalment loan Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First of Livingston Names Vice President Miles City Bank Hosts Teacher-Banker Seminar First National Bank in Miles City made arrangements and served as host for a Teacher-Banker Seminar held at Miles Community College recently. The seminar, conducted by the Federal Reserve Bank of Minneapolis, provided an opportuni ty for bankers and teachers to meet in a workshop affair and to play “The Bankers Game.” Tom Kleinschmit from the Fed and Richard McConnen headed the program. Mr. McConnen is head of the economics department at Mon tana S tate U niversity and is economic advisor to the Federal Reserve Bank of Helena. Teachers and bankers were invited from throughout southeastern Mon tana. Twenty-five participated. In the morning an economics values game was played and used as a mixer for the group. Then participants met in smaller groups where they played “The Bankers Game.” 81 Wfe’re one of the ten largest banks in the country* O nly one other California Bank can say that* In 1871, cowhides and tallow were still the media of exchange in California. Since then, Security Pacific Bank and California have come a long way. Today we’re the second largest branch hanking system in the United States. The quality and range of our services are such that 90 of the top 100 corpora tions in the United States are doing business with Security Pacific Bank. We have offices or affiliates in the major financial centers of the world. Our computerized business services are second to none. And should you need a bank to handle the lion’s share of your loan syndication, we can do that too. Quality of service, quality of services: two reasons why so many corporations choose Security Pacific Bank. SECURITY PACIFIC BANK © 1 9 7 7 SPNB M EM BE R FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 82 Wyoming Bankers Association O. G E E S E Y President 70th Annual Convention Jackson Lake Lodge June 14-16 HE seventieth Wyoming Bankers Association Convention will be held T June 14-16 at the Jackson Lake Lodge, according to President Orin G Geesey, president, First Wyoming Bank. N.A.-Kemmerer. Registration will M. C. M UNDELL Exec. Secy. E. J. H A IN ES 1st Vice Pres. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis be held in the lobby as follows: Tuesday, 3-5 p.m.; Wednesday, 1:30-5 p.m., and Thursday, 8-9:30 a.m. Speakers will include Ed Herschler, governor of Wyoming; John Heimann, U.S. Comptroller of the Currency; Jordan J. Crouch, former bank president and now executive vice president of the Nevada Bankers Association, and Stanley K. Hathaway, former governor of Wyoming. Serving with Mr. Geesey this year as officers of the WBA are: first vice president, E. J. Haines, president, First National Bank of Laramie; second vice president, George W. Mcllvaine, president, Saratoga State Bank, and executive director M. Clare Mundell, Laramie. The program follows: Wednesday, June 14 A.M. 8-4 Annual fishing derby for men and women. Chairman: Dean K. Bark, Jackson State Bank. 9-3 Men’s annual golf tournament. Co-chairmen: Lloyd Fordyce, First National Bank of Casper, and John Edmiston, Security National Bank, Denver. 9 Second annual tennis games for men and women (probably a tourna ment) . Co-chairmen: Richard Nelson, First National Bank of Powell: Rick Fleming, First National Bank, Denver, Colo., and Bill Gifford, First Wyoming Bank, Casper. P.M. 5:45 Social hour on the Terrace. 7:15 Indoor picnic in the Explorer’s Room. Serving will begin at 7, bar will close at 7:15. Entertainment followed by dancing music by “Brass Beat for the 70s” from Denver, Colo. Thursday, June 15 A.M. 9 Ladies’ annual golf tournament. 9:30 First general session. Call to order: Orin G. Geesey, WBA president and president, First Wyoming Bank, N.A., Kemmerer. Pledge of Allegiance. Invocation: Father Charles Bartek, pastor, Our Lady of the Mountain Church, Jackson. T^Iruly Become N umber O ne You M ustConstantly Strive10 Surp/'SSYourself N or The Competition https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 84 W yom ing N ew s B . C . W EB ER Speaker Address: Honorable Ed Herschler, governor of Wyoming, Cheyenne. President's report: Mr. Geesey. Address: Honorable John Heimann, U.S. Comptroller of the Currency, Washington, D.C. SBA Award: Jerry S. King, district director, Small Business Administration. Report of the nominating committee: Kenneth C. Naramore, commit tee chairman and president, Stockmens Bank and Trust Co. of Gillette. Election and introduction of state association officers. Report of the governing council of the American Bankers Association: B. R. Weber, council member and president, First National Bank and Trust Company of Wyoming, Cheyenne. Report of the government relations council of the ABA: R. S. Allen, council member and president, Shoshone-First National Bank, Cody. Report on the Washington, D.C., legislative visit: H. K. (Bert) Harris, president, First National Bank of Greybull. P.M. 12 Announcements and adjournment for luncheon for men and women. 1:30 Free time to shop, fish, golf or play tennis. 5:45 Social hour on the Terrace. Seating for the banquet will begin at 7 p.m., bar closes at 7:15. 7:15 Banquet in the Elxplorer’s Room. Golfing, fishing and tennis prizes will be awarded. Entertainment and dance music by “Brass-Beat for the 70s.“ J. J. CR O U CH Speaker R. S. A LLE N Speaker Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Friday, June 16 A.M. 8 Past Presidents Breakfast in Conference Room 2 or 3. 9:30 Second general session in the Explorer’s Room. Call to order: E. J. (Woody) Haines, WBA first vice president, and president, First National Bank of Laramie. Address: Jordan J. Crouch, executive vice president, Nevada Bankers Association, Reno. Address: Stanley K. Hathaway, lawyer and former governor of Wyoming, Cheyenne. Special report on Wyoming bonds: Honorable Edwin J. Witzenburger, state treasurer of Wyoming, Cheyenne. Business meeting, committee reports. Resolutions committee: Henry A. Hitch, president, First National Bank of Casper. Legislative committee: Robert W. Miracle, president, Wyoming National Bank of Casper. Agriculture committee: Dick Van Pelt, senior vice president, Bank of Laramie. Audit committee: Beverly Sheen, vice president and cashier, Bank of Laramie. Education committee: William A. Gifford, executive vice president, First Wyoming Bank of Casper. Installment loan committee: John Martin, assistant vice president, First Wyoming Bank, N.A.-Rawlins. Trust committee: Robert J. Wyatt, vice president and trust officer, Bank of Commerce, Sheridan. Advisory committee to the State Treasurer: Clifford E. Kirk, senior vice president, and cashier, First National Bank of Casper. Credit conference committee: Paul A. Christensen, senior vice presi dent, Wyoming National Bank of Casper. State council for economic education: N. P. Van Maren, Jr., president, Hilltop National Bank, Casper. Adjournment. 12:30 Luncheon: officers of WBA, members of executive council, committee chairmen. Hosted by newly-elected president of WBA, E. J. Haines. 85 The im age o f a correspondent banker. Image, the way we present ourselves to the world, is important. Others know us by the character we project. How often have you heard it said: He is the image of health; or, He is the picture of professionalism. The important things, the things that give the image value, however, are behind the picture. "” Behind the image of a correspondent banker should be qualities such as experience, expertise and efficiency. If those are the qualities you demand in a correspondent banker, we'd like the chance to show you what it means when a correspondent banker’s output matches his image. 1 SECURITY NATIONAL BANK 425 16th Street at Glenarm Denver, Colorado 80202 534-4000 Member Affiliated Bankshares of Colorado. Member FDIC. John A. Edmiston https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Steve Sheridan Northwestern Banker, June 1978 86 W yom ing N ew s John D. Clements, second vice president. United States National Bank: Robert A. Krane, president; Jay F. vice presidents, and David W. Bordewick, vice president-manager, Fowler, correspondent bank officer. correspondent bank department, and Security National Bank: John A. Howard W. Nielsen, vice presidentcorrespondent bank department. Edmiston, senior vice president. Lincoln First National Lincoln: William C. Smith, president, and Charles R. Leffler and Gary Bieck, vice presidents. Bank Equipment and Other Firms New York Bank Building Corporation, St. Bankers Trust Company: T. F. “Peter” Bundy, vice president, and Louis: Jim Petersen, consultant Penny Huff Jones, assistant treasur services manager. er. Chiles, Heider, & Co., Omaha: Chemical Bank: Malvern Hill, Jr., Fred Douglas. vice president, and C. Randal Adam, Lawrence Systems, Inc., Chicago: assistant secretary. Robert Junk, vice president and Manufacturers Hanover Trust: E. regional manager, Denver. Danson Perin, vice president, and Robert M. Surdam, Jr., representa Mosler Safe Company, Hamilton, tive. Ohio: Jerry Stites, regional sales Omaha manager, and John Tharp, sales First National Bank: Bill Henry representative. and Don Ostrand, vice presidents. United States Check Book Compa Omaha National Bank: F. Donald ny, Omaha: Richard A. Dick, vice Lewis, Lawrence Comine, Jr. and president, and Loren Anderson, Jack Babcock, vice presidents, and sales representative. You Will See Them at the Annual Wyoming Bankers Convention HE following m etropolitan T bankers and service and equip ment dealers have indicated that they will be attending the 1977 Wyoming Bankers Association Con vention in Moran, June 14-16. Billings Security Bank: Richard Kjoss, president, and Eugene E. Coombs, vice president. Chicago Continental Bank: Pat Conway, commercial banking associate. First National Bank: Bud Cross, assistant vice president. Denver American National Bank: Roger Reiling, vice president, and Larry Pisacka, assistant vice president. Central Bank & Trust Company: Don Echterm eyer, senior vice president, and Bill Tumelty, assis tant vice president. Colorado National Bank: L. Lance Johnson and William J. Fleming, Welcome to the Wyoming Bankers Convention at Jackson Lake Lodge, from Wyoming’s largest state-chartered bank — serving Northeast Wyoming since 1907 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Financial arranger; « coordinator, problei innovator.■ It The definitive corre: or D enver https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 88 W yom ing N ew s Bank of Laramie Plans Convenience Center The Bank of Laramie has announced plans for a Convenience Banking Center in conjunction with the present banking facilities, according to J. A. Guthrie, Jr., president. The center will be located at the corner of Third and Garfield. All teller services found in the main bank will be available in the Convenience Center. Six tellers will be on duty at seven drive-up windows, one of which is for commercial customers. The center will be attached to the main bank building through a pneumatic tube system. First National of Worland Elects Gee to Board J. Owen Evert, chairman of the First National Bank in Worland, has announced the election of Tom W. Gee to the bank’s board of directors. Mr. Gee has been owner-operator of the Washakie Hotel and Grill for a number of years, and he and his wife, Christiana, own the Sun Valley Motel in Worland. We’re the one. Wyoming Trust Purchased The Omaha National Corporation has purchased a 50% interest in the Wyoming Trust and Management Company of Gillette, John D. Woods, chairman, announced. The Omaha National Corporation is holding company for The Omaha National Bank and other financial subsidiaries. Thomas N. Moore, executive vice president in charge of the bank’s estate and trust division, will serve as board chairman and president of Wyoming Trust and Management. The 50% interest was purchased from local investors in the Gillette area. The purchase price was not disclosed. Initially Wyoming Trust will maintain a single office in Gillette, Mr. Moore said. All record-keeping and the safekeeping of assets will be handled in Omaha. The purchase of the 50% interest has been approved by the Federal Reserve Board of Governors and by the state. Named at Cheyenne John C. Macleod has been elected executive vice president and chief operations officer at the American National Bank in Cheyenne. A native of Casper, Mr. Macleod is a veteran of 30 years of banking experience, beginning in Casper. He most recently was president of G uaranty Bank and T ru st in Denver, Colo. Master Charge Midwest Volume Tops $200 Million The dollar volume of Master Charge transactions in the midwest trade area increased 13% during the first quarter of 1978, compared with the first three months of 1977. A record $203,526,000 in retail purchases and bank cash advances was generated by Master Charge cardholders, according to Credit Systems Incorporated. CSI is the operating center for Master Charge in the five-state area of Missouri, Kansas, Iowa, Illinois, and western Kentucky. It was the first time in the area’s history that first quarter business on the Master Charge card exceeded $200-million. The total number of area Master Charge transactions also increased 13%, to 7,758,000 from 6,891,000 last year. 1 0 th Fed Bank Offers Guidelines to Services *r r « y V A new series of publications for Tenth District banks has been introduced by the Federal Reserve Bank of Kansas City. The series, called Guidelines, provides complete plain-language explanations for transactions between the Reserve Bank and District banks. The new series also is accompanied by a functional directory listing the names and phone number of Kansas City Fed officers and staff members. The publications are free to Tenth V- DON’T FORGET US AT U.S. CHECKBOOK CO. For credit collections and information, transit items, excess loans and all correspondent services . . . El First National Bank of Casper CASPER. WYOMING/(307)235-4201 MEMBER FDIC Northwestern Banker, May 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for ALL your Bank Supplies We have Plenty of “ TIME” for you! AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUND' • • • • Bank Printing Checks Computer Supplies Office Needs The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET _ OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3162 Out of State Call Wats Line 1-800-228-9246 V- * ti *4 ♦ W yom ing N ew s District member and non-member banks by contacting the Bank Relations and Public Information Department, Federal Reserve Bank, Kansas City, Mo. (64198). Minneapolis Economist Sees Benefit in Western Coal The Upper Midwest may be in for an energy crunch because of a regional petroleum shortage occurr ing in the next several years, according to Dr. Sung Won Son, senior vice president and chief economist of Northwestern National Bank of Minneapolis. But in the long run the area’s consumption patterns, the completion of the oil pipelines and development of substantial coal resources point to an energy future somewhat brighter than the nation’s as a whole, he said. In discussing western coal, Dr. Son said, “The benefits of coal development to the Upper Midwest are substantial. Landowners receive typically a $1,500/acre royalty for strip-mining rights and a $300/acre surface damage fee--a considerable profit on land that sold for $50/acre before development began. “Tax revenues of state and local governments would jump signifi cantly. According to a recent USD A study, taxes paid by large-scale mines in Montana would generate $55,000 in additional tax revenue annually per new mine employe based on 1976 tax laws. The same mine in North Dakota or Wyoming would produce about $18,000 per new mine employe. “The coal transportation required will be a big plus for the regional railroad industry. The U. S. Department of Transportation has recommended railroads for coal transportatrion over alternate modes of transportation such as slurry pipelines. However, the agency estimates that an investment of over $10 billion will be required by the U. S. railroad industry in order to meet the demand, and this will provide an additional boost to the economy. “In a conservative scenario, North D akota coal production would increase enough to meet increasing regional demand. Based on this assumption one projection estimates that in the western part of North Dakota, gross business volume would increase 20 percent and population would increase 10 percent by the year 2000. The benefits in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Montana would probably be even greater. Further increasing product ion in order to aid national energy independence, which is likely, would increase these benefits even more. “The potential of western coal is so great that one study estimates that Wyoming could become the leading coal-producing state in the nation. Montana could be . second, competing with Kentucky and West Virginia, the two major producing states at present. North Dakota would be a little further down the list, competing with Illinois, Ohio and Pennsylvania, the otrher leading coal-producing states. Although the benefits of coal development are substantial, the costs involved are also significant. There are the ‘private’ mining costs, of course: wages, equipment, land, etc. But there are also many ‘public’ costs which may or may not be incorporated into the market price of coal. For example, the strip-mining 89 could affect air and water quality miles from the mine site. The market price of coal would have to be high enough to pay for pollution prevention or compensate those who are hurt. “ While state and local tax revenues would jump, the demand for public services such as education, water and sewer facilities, and police and fire protection could grow at a much faster rate, straining local finances despite increased revenues. A boom own environment could develop as the demand for housing and other necessities grows at an extremely rapid pace, “Despite the substantial private and public costs associated with coal development in the Upper Midwest, the benefits should outweigh the costs...The Upper Midwest is in a good position to take advantage of this development, but must do so on a realistic basis.’’ $ 200 , 000,000 Wyoming National Bank is proud to be the first bank in Wyoming to reach $200,000,000 in deposits! Thank you Correspondent Banks for helping make this possible. Wyoming National Bank Casper, WY 307/266-1100 Member FDIC We’re for you. \ See you at The Wyoming Bankers Convention, Jackson Lake Lodge June 14th through 16th. Northwestern Banker, June 1978 90 U.S. National can make it easy for you to become a part of today's growing Electronic Funds Transfer Service (EFTS) environment. You can offer your customers our popular Instant Cash Card ... or we'll help you get your own card. We get you set up with equipment, either courtesy counter terminals or automated teller machines (buy, rent or lease). You get complete support service, too, plus, the important marketing and advertising materials you need. To learn how we can help you use EFT services to make your account Lee Bachand relationships more valuable; to maintain your bank's identity as a leader in your market; and to compete more effectively, call a U.S. National Correspondent Banker today at 402/536-2072. We'll help you make a decision on EFT services you can bank on. Jay Bordewick Howard Nielsen John Lewis Larry Hansen US Natio n al Ba n k 01 OlDShd Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ember FDIC 91 executive council to complete Mr. McBride’s term, which expires in 1979. He is president of the Lexington State Bank & Trust Co., Lexington. O F F IC E R S of the Nebraska Bankers Association for 1978-79 are, from left: Robert E. Harris, exec. v.p. of the NBA, Lincoln; Harold E. Larmon, immed. past pres, and pres, of 1st Natl., McCook; Karl E. Dickinson, new pres, of NBA and pres., Gateway B&T, Lincoln, and Jam es W. McBride, pres.-elect of NBA and pres., 1st Natl., Aurora. New NBA President Karl E. Dickinson Challenges All Bankers to Involvement By BEN HALLER, JR., Editor i i I NVOLVEMENT” was a key I word that surfaced in many of the speeches delivered at the 81st annual convention of the Nebraska Bankers Association last month at the Omaha Hilton in Omaha. Newly-elected NBA President Karl E. Dickinson, president of Gateway Bank and Trust Co., Lincoln, heavily stressed the need for individual banker involvement in community leadership, in support of industry activities, and in legislative matters. Mr. Dickinson was advanced to the presidency to succeed Harold E . Larmon, president, First National Bank, McCook. Mr. Larmon contin ues on the NBA governing council as immediate past president and also was elected to a two-year term on the ABA governing council. The nominating committee’s slate for president-elect and for two and three year terms on the executive council (presented in the May issue) was adopted unanimously. As the new president-elect, Jam es W. McBride is in line to follow Mr. Dickinson as president at the 1979 convention. In addition to the list published last m onth, Harold Stuckey was appointed to the Bill Riley, Nebraska dir. of bkg., Lincoln; Rep. John Cavanaugh (D., Neb.); Bob Harris, exec. v.p. of the NBA, and Harold Larmon, retiring pres, of the NBA and pres., 1st Natl., McCook. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Acceptance Address In his acceptance address, Mr. Dickinson zeroed in on the determin ed effort being made by the savings and loan institutions to outnumber and outflank the banking industry statewide in order to drain off every possible deposit dollar from banks into the s&ls. Their inroads are continually being felt, he said, in view of their ability to branch with almost unlimited power (one institu tion wants 300 branches in Nebras ka) and their tenacity in being able to hang onto the savings rate differential through Congressional approval while obtaining expanding powers to become more like banks. To assist Nebraska banks in this competitive struggle, Mr. Dickinson said “here’s what we have planned: “ 1. An agressive new series of television commercials which attack the limited services of s&ls compared to commercial banks. (These were shown during the convention.) “2. We’re in the process of developing a model opposition package which member banks may obtain from the NBA office. This will be a ‘how to do it’ kit if you wish to protest a branch application in your community. “3. You will shortly receive a new report on s&l deposits by branch offices which tracks growth from 1973 through the most recent reporting period...to get each of you alarmed about this situation and to watch the branch growth in your community. “4. We’ve provided a framework through implementation of NETs for Harold Roe, chmn., Bank of Bennington; Chuck Leffler, v.p. First Natl. Lincoln, and Bob Burkley, chmn., First Natl. Fairbury. Northwestern Banker, June 1978 92 Nebraska N ew s F. P. Giltner, pres., First Natl., Omaha; Clarke A. Wenke, pres., Pender State; J. W. Henry, v.p., First Natl., Omaha. you to extend your bank geographi cally and your hours of operation. I encourage you to take advantage of your investment and use it to enhance your competitive position. “5. We will begin to speak publicly about the problem we face in financing agriculture in this state if the drain of deposits from banks to s&ls is allowed to continue.” Mr. Dickinson said the whole job can’t be done by the association but requires involvement by each bank er. He suggested attacking the rate differential on the basis of it being a poor investment, writing Congress men and regulators about the impact of the differential and inability to meet loan demand if relief isn’t granted soon, speaking candidly to customers about the effect on the community when they shift funds from the bank to a s&l, earning a fair profit on requests to process s&l bill paying drafts, being innovative in working for the community, and being positive about the great job banks are doing in financing all segments of housing (not only mortgage loans). President’s Address In his president’s report to the convention, Mr. Larmon reviewed briefly the great strides made by NBA during the past year in representing the membership in legislative matters and in providing new services for Nebraska banks. The most notable of the legislative bills were LB 258, the state funds bill, which injected more than $150 million deposits into N ebraska banks; LB 259, which greatly restricts chartering and branching of industrial loan and investm ent companies, and LB 385 (defeated), which would have permitted multi bank holding companies to operate in the state. O ther so-called pro-consumer bills that would have added more layers of regulation also were defeated, he said. Mr. Larmon recounted the great Wes Bowen, sr. v.p., Packers Natl., Omaha, and Adele and Leonard Hassenstab, exec, v.p., Farmers State, Humphrey. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merv Aegerter, Is t Natl., Omaha; Lois and Bob Conrad, pres., Sidney Natl., and Don Ostrand, v.p., Is t Natl., Omaha. success with moving NBA executive council meetings out around the state, in lieu of having them only in Omaha and Lincoln. With abandon ment of the old type group meetings, these executive council sessions have allowed for more grass roots input. He referred also to the new kit to aid commercial banks in opposing s&l branch applications, strengthen ing of the advertising program with the new 30-second TV commercials referred to above, and formulation of two new political action committees—one for federal and one for state elections. Mr. Larmon also emphasized strongly the part NBA is taking actively in federal lobbying. This is being accomplished in great measure through visits to Washington about every three weeks, he said, by NBA Executive Vice President Robert E. Harris, who has worked closely with ABA personnel, as well as with members of the Nebraska Congres sional delegation. Gary Stevenson, v.p., Is t Natl., Sioux City, and Larry Liebers, chmn., Crofton State. Nebraska N e w s 93 Pictures taken at Nebraska Bankers convention Earl Lundin, a.v.p., Manufacturers Hanover Trust Co., New York; Dick Adkins, pres., Osmond State; John Woods, chmn. & pres., Omaha Natl.; Hank Kosm an, chm n., S cottsbluff Natl. B&T, S cottsbluff, and Del Olson, v.p., Omaha Natl. Front— Bob Isham, chmn., 1st Natl., Gordon; Dave Johnson, pres., Commercial Natl., Grand Island, and Roy Dinsdale, Palmer, chmn. of 17 Nebraska banks. Back— Jim Allen, v.p.; John Clem ents, 2nd v.p., and Don Lew is, v.p., all w ith Omaha Natl. Jim N issen, pres., Natl. Bank of Commerce, Lincoln; John Burt, reg. adm. of natl. banks, Kansas City and his wife, Sally; Wilbur Baack, sr. v.p., Natl. Bank of Commerce, Lincoln, and Bob Anderson, sr. v.p., 1st Natl., Minneapolis. Bob Deahn, v.p., Natl. Bk. of Commerce, Lincoln; Elbert Loewenstein, pres., Stamford Bank; Russ Morgan, pres., 1st Natl., Elwood, and Duane Nelson, v.p., NBC, Lincoln. Val Beavers, chmn. & pres., 1st Natl, of Tekamah and Stanton; Don Murphy, chmn. & c.e.o., U. S. Natl., Omaha; John Peck, exec, v.p., 1st Natl., Columbus, and Larry Hansen, v.p., and John Lew is, corr. bk. o ff., both with U. S. Natl. Bill Brandt, v.p., 1st Natl., Unadilla, and NBA counsel and lobbyist; Howard Nielsen, v.p., U. S. Natl., Omaha; Roberta and Chuck Hilderbrand, pres., 1st Natl., Ogallala, and Jay Bordewick, v.p., U. S. Natl., Omaha. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 197B 94 Nebraska N ew s Mitzi and Jim Fox, pres., 1st Natl., Albion; Ellen Ann Qualsett, pres., 1st Natl., Schuyler; Jan and Dave Schweitz, corresp. bkr., First Natl. Lincoln. The compliance handbook being prepared by NBA for member banks use in complying with the multitude of new regulations will soon be ready, Mr. Larmon advised. NETS Report S. N. Wolbach, chairman and chief executive officer of First National Bank of Grand Island, reported on the recommendation of the NETS board, of which he is president, following that group’s meeting on Sunday as the conven tion was getting underway. He said, “I wish I could stand up here and state that things are just great, but they aren’t, and you should all realize that the situation is really a crisis.” Mr. Wolbach referred to the fact that after NETs resolved its problem with threatened antitrust action from the Justice Department, the switch became operable January 17, 1978, but only three of the original five processing banks remained as members of NETS and among those three all the necessary sharing agreements had not yet been signed. He called for unity among Nebraska banks so that solid support of the system can make it a statewide reality and effective tool in dealing with competitive financial firms. Referring to the Sunday afternoon NETS meeting, Mr. Wolbach said, the result of the discussion was a unanimous action to investigate every questionable EFT operation and file a formal complaint with the Nebraska department of banking and finance against any institution which unlawfully discriminates in a Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bob Hankins, North Side Bank, Omaha; Bob Friend, Modern Banking Systems, equipment. manner which we think violates the intent of the law. ‘‘Now for the fighting words. I now openly call for our banks to resolve their difficulties so that we as an industry can get on with the business of competing with the savings and loans and making a success of EFT in Nebraska. I ask all S. N. Wolbach, chmn. & c.e.o. of 1 st Natl., Grand Island, delivers his report as pres, of NETS. of you to do your part in helping: Go to your correspondent, ask for information on how to become involved. Also, ask if your customers will be able to share with all other banks in Nebraska. If not, find out why. EFT is here—let’s make it work for us instead of eigainst us. Let’s act now!” ABA Official Speaks Another call for involvement and action was made by ABA PresidentElect John H. Perkins, president of Continental Bank, Chicago. He reminded his audience ‘‘it is important to recognize that the pace of change does not let up, but even intensifies with each day.” This Omaha, discuss new data processing stresses further, he added, the importance of developing strong relationships with elected represent atives in Washington. He commen ded the NBA highly for the excellent work it has done in this regard, especially through the frequent visits to Washington of Bob Harris. He referred to the new hands at the helm of many agencies and bureaus in Washington—‘‘the doers and movers” —including Fed Chair man Miller and Comptroller Heimann. He said the Fed was concerned at that time in early May with developing its policy on EFT, with parity a large question. F urther, Chairman Miller, Mr. Perkins stated, is committed to the Fed paying interest on reserves as part of the package to stem erosion of Fed membership and even rebuild it. Mr. Miller has set a tight time table on such action. He expects to make general comments public by June 30, with comments on the proposal to be received during a six-month period ending December 31, and new regulations published by June 30, 1979. Mr. Perkins said Chairman Miller also is well aware of the need for fair pricing of Fed services so non-Fed processors can compete on equal terms. On other matters, Mr. Perkins said it is essential that the Safe Banking Act, as drawn, be set aside to avoid over-reaction by Congress to selected events. On the EFT front, after reading the Greenbrier statement, he reminded his audience, ‘‘It is important to remember that in EFT we’re caught up in a process, not an event.” N ebraska N ew s Pictures taken at Nebraska Bankers convention John Dean III, Los Angeles, author and former White House ^ figure and concluding speaker at the NBA convention, with Robert E. Harris, NBA exec. v.p. Orrin A. W ilson, v.p., The Northern Trust Co., Chicago; Richard E. Adkins, Jr., v.p., Security Natl., Laurel, and wife Joanie. Fred Douglas, Chiles, Heider & Co., Inc.; Rachel and Oscar Clarke, v.p. & t.o ., Natl. Bank of Commerce, Lincoln; Stephen Beachler, v.p., investments, First Natl., Grand Island. A. M. Schm id, s.v.p., Bank of Papillion; Richard Dick, U.S. Checkbook; Diana & Ron Bielenberg, v.p., Platte Valley State John Frenking, First Mid America, Omaha; Jim Gray, Sr., chmn. & pres., Coleridge Natl.; Gary Fenster, First Mid America, Omaha, and G. E. Gunderson, pres., Commercial State, Wausa. Ed Lew is, v.p., Commerce Bank, Kansas City; Norm Schm idt, pres., Ravenna Bank; Steve Hats, corr. bk. o ff., and Jim Hongslo, v.p., both with Security Natl., Sioux City. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B&T, Kearney. Northwestern Banker, June 1978 96 N ebraska N ew s Other Speakers Rich Bailey, of Bailey-Lewis Associates, a Lincoln advertising agency handling the NBA statewide program, displayed the three new 30-second TV commercials now being aired in Nebraska. The TV campaign is segmented by weeks and will continue throughout the year. Mr. Harris explained the new dues program. Under an amendment adopted to the articles of incorpora tion, dues now will be set by the executive council, the council is expanded from 23 to 24 members, and uneven staggering of offices has been corrected. Gallup Reports on Polls At the Monday night annual ban quet, George Gallup, Jr., president of The Gallup Poll, Princetown, N. J., said his firm’s research shows one of every four Americans worries constantly about making ends meet, while two of every three in developing nations have a similar worry. Americans universally expect higher prices. The average American citizen is not an economic expert, he said, but more often is on target than bureaucrats. Some of his findings from the most recent monthly poll were these: 1. The public feels that a balanced federal budget is highly important and we should have a law to that effect. 2. By a 9-1 vote, those interviewed feel beating inflation is more important than a tax cut. 3. Four of 10 Americans thought the energy situation was serious 12 George Gallup, Jr., pres, of The Gallup Poll, Princeton, N.J. months ago, and the same margin prevails now, showing; that Ameri cans do not understand that we must import oil to meet our demands. The out-of-office party traditional ly picks up 33-37 seats, he noted. The most Republican pickup this year would be in the midwest where Democrat margins were the slimmest in the past election. The current Gallup Poll shows Democrats would win 47% to 43% over Republicans. Working in favor of the Republicans is the inflation problem, the energy crisis, and a President whose approval falls below the 55% mark and causes his party to lose seats. President Carter’s popularity now is down to 39%, he said. Banking received some of the highest marks from the public among all businesses and professions listed in a recent Gallup Poll. DON’T FORGET US AT U.S. CHECKBOOK CO. for ALL your Bank Supplies We have Plenty of “ TIME” for you! AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUND!' • • • • Bank Printing Checks Computer vSupplies Office Needs The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16T H STREET - OMAHA, NEBRASKA 6 8108 In Nebraska Call 4 0 2 -345-3 162 Out of State Call Wats Line 1-800-228-9246 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ag Speaker Edward Harshbarger, economist with the Federal Reserve Bank of Kansas City, made these points about prospects for the period ahead in agriculture: 1. We will see continued improve ment in both the cash flow positions of farmers and the liquidity positions of banks. 2. I remain confident that we will be able to hold most of these gains (in recent farm prices), especially those in the livestock sector. 3. If indeed prices do remain trong, cash receipts from farm arketing could increase $10 billion or so over last year’s level of $95 billion. 4. Some recently defeated farm legislation in the House does not mean that farmers will not be receiving benefits in 1978. Benefits from the government could amount to $8-$9 billion in 1978, roughly double what they were in 1977. In fact, considering how generous the farm payments currently are, it’s incredible to me that some farmers are asking for more, and the public would be outraged if it really knew what these totals are. 5. Although we have not solved the income problem in agriculture, a problem which remains quite vulner able to the ravage of inflation, we at least are beginning to make some progress. Concluding Talk John Dean,III, author and lectur er, Los Angeles, and a central figure in the White House Watergate scandal, was the concluding speaker, recounting from his memory and research various events that trigger ed and figured in the bizarre case leading to the resignation of President Nixon. At various times throughout the convention, each of the five candidates for the office of Governor of Nebraska was given an opportuni ty to address the audience for a brief presentation of their view of that office and give their qualifications. The convention opened with a rousing two-hour stage show by Doc Severinsen and “Today’s Children’’ orchestra. Especially notable was the fact th a t Doc Severinsen remained on stage, playing his famous trumpet and leading the music and singing throughout the entire show, for which he received a standing ovation. □ 97 Specialists in structuring solutions to correspondent problems... CHUCK LEFFLER llllllliilll FIRST NATIONAL LINCOLN P-O. Box 81008, Lincoln, NE 68501 Phone: (402) 471-1231 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 98 Omaha News M. W ALDBAUM become assistant vice president and a lending officer at Idaho First. He was promoted to vice president in 1960 and established a loan review Board Chairman system for the bank. John D. Woods In 1966, Mr. Allen was put in announced May charge of the bank’s Boise branches 8. and two years later was named a Mr. Woods, senior vice president. He became who has carried manager of all branch operations in the title of presi 1972 and in 1974 took on the task of dent will contin organizing and heading a new ue as chairman marketing department for Idaho and chief execu First. Responsibilities included pub tive officer of the T- H- ALLEN bank and will remain chairman and lic relations, advertising, consumer president of the bank’s holding affairs, sales and marketing training company, the Omaha N ational and product research and develop ment. Corporation. Last year Mr. Allen was named Mr. Allen, 51, has been executive vice president of the Idaho First executive vice president, asset and National Bank in Boise, Idaho. He is liability management. Mr. Allen and his wife, Millie, to join Omaha National early this summer. Initially he will concentrate have three grown children. *** his efforts in the general banking area, which includes commercial, The First National Bank of Omaha agricultural and consumer banking. Mr. Woods noted that Mr. Allen has announced the promotion of has a wealth of experience as a senior Scott D. Bradley officer of a major bank heavily to loan officer. Prior to join involved in agriculture, as Omaha National is. He also has a strong ing the bank, background in lending and market Mr. Bradley was a vice president ing. The Omaha National, largest bank at the Nebraska in Nebraska, has total deposits of State Bank of $495 million. Idaho First’s deposits S o u t h S i o u x City. He attend total $1.1 billion. Born in Ogden, Utah, and raised ed Morningside S. D. B R A D LE Y in Salt Lake City, Mr. Allen received College in Sioux City, la. Mr. Bradley is a member of a degree in banking and finance from the University of Utah in 1949. He the American Bankers Association took a position as a national bank advisory board for instalm ent examiner and worked in Salt Lake lending. *** City, Boise, Portland, Ore., and San Francisco, Calif., before being Mimi Waldbaum has been elected named manager of the Boise office, to the board of the US. National which coordinated examinations in Idaho and several surrounding Bank. She is chairman of the Nebraska states. He left that position in 1959 to Accountability and Disclosure ComHOMAS H. ALLEN has been T named president of The Omaha National Bank, Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. A. A SH FO R D mission and former state president of the League of Women Voters. She is a director and officer of the Milton G. Waldbaum Co. of Wakefield, Neb., an egg processing company. The bank also announced the promotion of Denise A. Ashford to commercial loan officer. Ms. Ash ford, 25, joined the bank in 1976 as a credit analyst. *** Marvin R. W’erve, 64, senior vice president of The Omaha National Bank, died of cancer recently after an illness of several months. In recognition of his years of civic work in Omaha and his leader ship as national Democrat com m itteem an for Nebraska, specM- R‘ WERVE ial services were held in Courtroom 1 of the Douglas County Court House, followed by interment services in Vail, la. A native of Kenosha, Wis., Mr. Werve was one of six Kenosha athletes who went to Creighton U niversity in Omaha in the mid-1980s on athletic scholarships. He was a standout football player at Creighton for three years. After earning his law degree at Creighton he worked in the instalment loan business in Chicago. In 1946 Mr. Werve joined the Old Livestock National Bank in Omaha, becoming an officer in 1950. When that bank merged with Omaha N ational in A ugust, 1954, he continued in the loan department. Mr. Werve formerly headed the Omaha Chapter of the National Alliance of Businessmen, an organi zation dedicated to reducing unem ployment, and served on the national board. He was elected a director of the Omaha Public Power District in * 4 99 Our correspondent banking pros would love to go ® on ® with you This simple principle, one-on-one service, has enabled First National's Correspon dent Banking Division to become the fastest growing in the area. We earned our reputation, and intend to keep it, by outworking the competition, and by providing unrivaled service re- gardless of prevailing financial conditions. First National's Correspondent Banking Professionals are dedicated to meeting the individual needs of your bank and your customers, and there's only one way to do that. Come on ... We can't wait to go on <E> with you. first national Member, FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis | | | l c n m n h n ln Nebraska call us toll free at 800-642-9907. ■ IX .L y 'l I IVJI From states adjacentto Nebraska call us toll free at 800-228-9533. Northwestern Banker, June 1978 100 Nebraska N ew s 1966 but resigned that post in 1968 De Lay First National, when OPPD decided to use Omaha Norfolk, Announcements National as a depository for its Charles S. Cuttell has been elected employes’ pension fund, to avoid vice president, commercial and conflict of interest. agricultural loan Mrs. Werve died one year ago. officer of The De Lay First Na Named at Broken Bow tional Bank & Ted Forsyth, C. A. Owens and Trust Company, Lloyd Ruff have resigned as N o r f o lk . M r. directors of Nebraska State Bank Cuttell formerly and Trust Company, Broken Bow, was vice presi and a holding company which owns dent of the Rock the bank, First Central Nebraska R ap id s S ta te Company, according to Ted Arm- Bank, Rock Rap C. S. CUTTELL ids, la ., and bruster, bank president. The holding company has pur before that was with the Iowa chased the shares of these men and Department of Banking. The bank also has announced the those of the late Leonard Girardin, who was a director of the holding following promotions: James R. company. Russell Adams, Jr., and Mangels, instalment loan officer; Glen Govier, members of the holding Marlene Peters, manager, credit company, have been elected to the administration, and Lois M. Ahlman, new accounts officer. board. Named at Scottsbluff NABW Elects Officers Stoney R. Nelson has been appointed vice president of Western National Bank, Scottsbluff, succeed ing Jack J. Moss, who recently moved to Casper, Wyo. Prior to joining the bank, Mr. Nelson was with the J. F. Fenimore Agency. He is a business adminis tration graduate of Kearney State College and served as a national bank examiner for seven years. Dorothy Oldfield was elected president of the Nebraska Group of the National Association of Bank Women, Inc., at its recent annual meeting in Grand Island. She is cashier of the American Exchange Bank of Elmwood. Other officers elected are: vice president, Betty Walline, assistant vice president, Platte Valley State Bank and Trust, Kearney; secretary, Retires from Abbott Banks Paul M. Hefti, chairman, presi dent and director of The Guardian State Bank and Trust Co., Alliance, * has announced his retirement from the position with all Abbott banks, effective December 31, 1978. In making the announcement, Mr. Hefti said, “With my recent illness I feel it necessary at this time to proceed to select my successor so “ that I may orient and train him for the management position.’’ A search committee has been named to recommend and interview candidates for the chief executive officer for all Abbott banks. Named at North Platte The First National Bank and Trust Company, North Platte, has announced the appointment of John ^ Frame to assistant data processing manager. Mr. Frame, who has been v with the bank for six years, will assume additional responsibilities as the officer in charge of computer operations. Wausa Banker Retires for alert CORRESPONDENT BANK SERVICE, call on Wes Bowen, o u r S R . V .P ., S p e c ia l S ervice s PACKERS National Bank 24th & 0 • 402/731-4900 Omaha, Nebr. 68107 Member FD1C Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Rose Stotts, manager of word processing center, First National Bank, Lincoln; and treasurer, LaVonne Ohlson, assistant vice president, First National Bank of McCook. The women will take office in October. Bernice Glass, assistant vice president, First National Bank of Grand Island, is the current president. The annual meeting for 1979 will be held in Lincoln. Linnea Nordstrom recently retired from the Commercial State Bank, Wausa, after 25 years of service. Mrs. Nordstrom joined the bank ^ in 1953 and has worked as vice president and cashier. She is.,a >. graduate of Lutheran Bible Institute of Minneapolis and is a member of " the National Association of Bank Women, Inc. Joins Valparaiso Bank Robert J. Schmucker will join the Oak Creek Valley Bank in Valparaiso during the summer at which time he will also assume duties as an agent * with the Valparaiso Insurance Agency. He has been a teacher in the v N ebraska N e w s 1 01 Central Public School System for the past 10 years and also has been an agent and adjuster for the Home stead Insurance Company. Sutherland Bank Names New Officer and Director Roy Bischoff of Omaha has joined the First Security Bank of Suther land, and Mike Kelly, former bank assistant vice president, has been elected to the bank’s board. Mr. Bischoff replaces Mr. Kelly, who resigned earlier this year to manage his family’s ranching opera tions. He had worked for Dial Finance in Omaha for the past year. Mr. Kelly had been with the bank for four years. State Fund Deposit Seen As Lending Aid More than 300 Nebraska financial institutions have taken advantage of a new state law requiring the deposit of idle state funds in Nebraska. A total of $48.6 million was deposited in 285 banks and 39 s&ls in May, according to State Investment Officer Donald Mathes. It isn’t the first time state funds have been invested in Nebraska Institutions, but the 1978 law, sponsored by Bellwood Sen. Loran Schmit, made the practice manda tory instead of optional. Mr. Schmit and others said in the Legislature that such a law would help address a credit crunch in which farmers, prospective home buyers and businessmen haven’t had access to the loan capital they needed. State funds will be offered monthly for deposit as they become available. The financial institutions that accept the deposits pay the state an interest rate that, by law, cannot be less than an average of rates the state could obtain from certain other investments. For May, Mr. Mathes said, the deposits earned a 7.43% interest rate for the state treasury. A strong ag lending pro gram requires both. Your knowledge of the land and the people who work it. And the correspondent resources we can provide. At Security National, we know ag lending. And we can make it work for you and your cus tomers. All it takes is a call. For ag lending, consumer credit, overlines, opera tions, trust services, and investments, we’re your resource. Officers Named at Columbus First National Bank and Trust Company, Columbus, has announced the appointment of three officers. They are: Donald Schupbach, senior vice president of commercial lending; Paulette Mrzlak, personnel officer, and Wayne Gracheck, trust officer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis So, start corresponding with Security. You’ll be glad you did. ‘Now, th a t’s startin g som ething!” Jim Hongslo Vice President Correspondent Banking 712/277-6625 SECURITY N A T IO N A L B A N K © IN SIOUX CITY, IOWA. MEMBER F.D.I.C. Northwestern Banker, June 1978 102 of C . and affiliated bank holding S companies held annual meetings in tockholders nbc o Lincoln, Fremont and Kearney and approved a corporate name change last month. The holding companies, which own eleven banks in eight Nebraska communities, will now be known as Commerce Group CG. According to James Stuart, Jr. of Lincoln, president of the holding companies involved, “We have been seeking a name that will be more representative of our basic interest: banking and finance, and one name th a t can suggest the affiliate relationship from company to company.” Corresponding logotypes and sig nature typefaces will be adopted to further augment the continuity between companies. “ Our size dictates the need for more regional recognition, this name consolidation seemed important to that end,” Mr. Stuart commented. Effective immediatelv the corpor Commerce Group replaces the phrase “The Wonderful World of Banking” which has been used in recent years as a collective banner for the affiliate system. The new name will offer much more continuity throughout the organization. It will allow for more convenient reference and will allow all the companies to be listed together alphabetically in stock listings and other directory pieces, Mr. Stuart stated. Listed below are the former ate name Commerce Group will be holding company names, the new applied to each of the holding holding company names and the companies. Individual bank names subsidiaries of each: will not be affected. The recommend NBC Co., now Commerce Group, Inc. ed holding company name changes CG: National Bank of Commerce, Lincoln, were presented to the stockholders in which owns Robert E. Schweser Company, Commerce Group CG their proxy statements for a vote. At the individual annual stockholders meetings, a presentation was made describing the rationale for the name change and its benefits. After much consideration the word “Group” was agreed upon as the most appropriate term to express the relationships involved. Mr. Stuart said the holding companies are involved in other businesses and new subsidiary relationships will likely develop, so the word Commerce was selected as the logical and most positive choice, he said. Let Me Help You With Your Credit Insurance Telephone-Quick Service on our WATS Line in Nebraska. Dial your Access Code, then 800-742-7335. • Group • Individual Life • Accident & Sickness Steve W . Sutton Vice President w h e re B E N E F IT is m o r e t h a n a m i d d l e n a m e Lincoln, Nebraska 68508 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Inc., and Peterson Building Corporation; Mutual Savings Company, Lincoln; Mutual Savings Company, Omaha; Nebraska Savings Company, S cottsbluff, and NBC Leasing Co. F re m o n t F irs t N a tio n a l C o., now Commerce Group National Fremont, Inc. CG: First National Bank & Trust Co. Fremont. Fremont First State C o ., now Commerce Group State Fremont, Inc. CG: First State Bank, Fremont, Grand Isla n d O verland C o., now Commerce Group Grand Island, Inc. CG: Overland National Bank, Grand Island. H a s tin g s C ity N a tio n a l C o ., now Commerce Group Hastings, Inc. CG: City National Bank & Trust Co., Hastings. Kearney F irs t N a tio n a l C o., now Commerce Group Kearney, Inc. CG: First National Bank & Trust Co., Kearney. LBE Co., now Commerce Group Lincoln East, Inc. CG: Lincoln Bank East, Lincoln. North Platte State Co., now Commerce Group North Platte, Inc. CG: North Platte State Bank, North Platte. West Point First National Co., now Commerce Group West Point, Inc. CG: First National Bank, West Point. Correction! The election of Tom Stuckey to vice president in the correspondent bank division at National Bank of Commerce was reported in last m onth’s issue. H o w ev er, th e picture identified with his name was incorrect. Tom S tuckey’s photo appears here. The picture used last month was that of Harold P. Stuckey who was formerly in the correspondent department at NBC, but now is president of Lexington State Bank & Trust, Lexington. Clockwise from center: Alex Sheshunoff, President, Alex Sheshunoff & Co. with the following NBC Bank Officers: Wilbur Baack, Senior Vice President; James F. Nissen, President; Roy Otte, Vice President; Jerry Thornton, Vice President; William Norris, Vice President; Dennis Stelzer, Vice President; Herman Brockmeier, Executive Vice President. Alex Sheshunoff is conducting today’s most thought provoking, beneficial sessions for profit minded bankers. NBC is bringing Sheshunoff to bankers for three seminars in July: Kearney, July 18; Ogallala, July 19 and Omaha, July 20. Sheshunoff offers the kind of solid, specific infor ---------i— mation you can take home and put to work. And the same goes for NBC’s Correspondent and Information Services Bankers. They’re here to help you make Sponsored by more money from what you learn. Keep Alex Sheshunoff’s seminar booklet as a permanent reference tool. N BC National Bank of Commerce https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NBC / 13th & O Streets / Lincoln, Nebraska 68508 / WATS Line: 800 742-7317 Member FDIC 104 loan overlines and partici “ I travel the state, bring pations, wire transfers, and ing correspondent banking computer ser services from vices. So get in my bank to touch with Ben yours. If there’s today, and discuss your a way I can help you, I’d correspondent bank lik e you to te ll me ing needs. about it." Bankers Trust has the personnel “ I ’ll be there when you Bankers Trust wants to build a solid correspondent relationship and services to fill the full range of need me. ” with you .. . bank to bank . . . per your bank’s correspondent needs. son to person. Senior Vice President Ben Eilders and our other roving corre Use our toll-free WATS line: spondent bankers offer an individ 800-362-1688. ualized approach to trust services, Ihn Ben Eilders your roving correspondent from Bankers Trust B ankers Trust Des Moines, Iowa 50304 Member: IF.D.I.C./Federal Reserve System Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105 Iowa News Fed Approves Acquisition Of Washington Bank The Federal Reserve Board has announced its approval of the acquisition of The National Bank of Washington by Hawkeye Bancorporation, Des Moines-based bank C. F. ARMSTRONG President Dubuque holding company. The bank, which NEIL MILNER Exec. V.P. Des Moines has offices in Washington and Ainsworth, has assets of $30 million and will bring total assets of Becker to its board of directors. Mr. Hawkeye to the $700 million level. IBA Announces Highlights Becker is corporate vice president of Hawkeye will have 18 banks in 45 Of 92nd Annual Convention Marshalltown Trowell Co. locations after consummation of the September 24-26 are the dates of acquisition. the 92nd annual Iowa Bankers Association Convention at Veterans Clear Lake Bank and Trust Memorial Auditorium in Des Moin Names Vice President Marshalltown Bank Names es. The IBA recently released some Senior Vice President Ray Hewitt, president of Clear of the highlights: Lake Bank and Trust, has announced Joe W. Ludley has been named • Carnival Party Sunday evening the appointment senior vice president and trust officer on the lower level of Veterans of Robert (Bob) of the Fidelity Brenton Bank and Auditorium. Trust Company, Marshalltown. Pre • 30th Annual A gricultural Fountain as the new vice presi viously, Mr. Ludley headed the Breakfast. dent of the loan marketing division, real estate and • Business sessions at the audi loan department, and served as torium will include such speakers as department. Mr. Fountain operations officer. Dr. Norman Vincent Peale, noted comes to Clear author and minister of Marble Collegiate Church, New York; Lake from seven Elected at Grinnell Shirley Chisholm, U.S. congress- and a half y e a r s ______ woman; Orion Samuelson, vice in N e e n a h , R. FOUNTAIN Douglas R. Hill, vice president president, WGN Continental Broad Wise., where he and trust officer of the Poweshiek was vice president in charge of casting Co., director, ag services for County National WGN Radio and TV; Ray Brady, commercial loans for Marine Nation Bank, Grinnell, business correspondent for CBS al Bank. Prior experience includes has been named News; Lane Palmer, editor, Farm periods in the loan department of the to the b a n k ’s Journal magazine; William Ford, First American National Bank in board, according chief economist, Wells Fargo Bank, Wausau, Wise., and as instalment to Max A. Sm San Francisco; John Chisholm, loan department manager of the ith, president. chairm an, ABA savings bonds Austin State.Bank, Austin, Minn. Mr. Douglas, committee and president, Marquette who joined the Bank & Trust Co., Rochester, Iowa ACH Elects Officers bank in 1973, Minn., and John Perkins, president Harry J. Lavigne, senior vice received his BBA D. R. HILL elect, American Bankers Association president of Central National Bank degree from the and president, Continental Bank of and Trust Company, Des Moines, University of Iowa in 1969 and his Chicago. was elected president of Iowa BMA degree from the University of • Monday Night Dance at Veter Automated Clearing House Associa Wisconsin in 1971. He joined the ans Auditorium with entertainment tion at the conclusion of the recent bank as a real estate officer. by The Arbors. annual membership meeting. Other • Theater P arty on Tuesday officers elected are: John M. Sagers, evening at C.Y. Stephens Auditori president and chief executive officer, um in Ames featuring Tennessee Peoples Bank and Trust Company, Ernie Ford and the Brothers and Cedar Rapids, vice president; John Pomeroy Bank Unveils Sisters. A. Sikkink, senior vice president, Plans for New Building • Spouse activities will include Iowa-Des Moines National Bank, The Pomeroy State Bank will erect luncheons and style shows at Des Moines, secretary and Harold a new bank building at the corner of Younkers Tea Room, luncheon Gandy, senior vice president, Bank Second and Main in downtown matinee at Charlie’s Showplace and ers Trust Company, Des Moines, Pomeroy, according to J. M. Bride, homes tour. treasurer. executive vice president. The Automated Clearing House The new bank is being designed was created in 1975 to help reduce and constructed by S tru ctu ral Green Mountain Bank the ever growing number of checks in Design, Inc., of Holstein. It will Names Becker Director the payment system and for the include a drive-up window, night The Producer Savings Bank of convenience of the banking custo depository and parking area. It will Green Mountain has named Bob mers. be of brick and frame construction. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Benker, June 1978 106 Io w a N ew s “The Business Of Banking” —theme of NABW Meeting in Waterloo By LINDA RHEIN Associate Editor * HE Iowa Group of the National Association of Bank Women, Inc., has expanded its scholarship Tprogram to include the Betty L. Steele Award. Mrs. Pictured are the scholarship recipients from left to right: Beth McGeough, Warren County Brenton Bank and Trust Co., who received the Helen Rhinehart Award given to someone who is not a member of NAWB and Connie A. Rathgeber, asst, personnel off., First Natl., Sioux City, and Wanda Spainhower, a.c., Hampton State, who received NABW Scholarships. Mary F. Holstad (left), com m issioner, la. State Commerce Commission, Des Moines, chats with Kaye F. Fulrath, NABW regional v.p. & v.p., Merchants Natl. Cedar Rapids. Steele is a past national president of NABW and is vice president and secretary of Brenton Banks, Inc., Des Moines. She has been instrumental in the development of the NABW educational program. The $500 award will go to an association member for attending the NABW Management Series Seminars. It joins two other awards the group presents each year. (The recipients of these awards are pictured with this article.) Announcement of the new award was made at the group’s recent annual meeting at the Ramada Inn, Waterloo. Sarah Lee Yoder, north central group chairman and cashier, The Grundy National Bank, Grundy Center, presided at the meeting. Speakers The 157 registrants heard from speakers on a variety of subjects. Kaye F. Fulrath, regional vice president of NABW and vice president, Merchants National Bank, Cedar Rapids, gave an update on news from the national association and showed a film illustrating the association’s comprehensive educational program. During a forum, Margaret Hough, assistant vice president, Merchants National Bank, Cedar Rapids, discussed her bank’s personal banker program. The program “emphasizes the advantages of having a large bank but being as friendly as a small bank,” she commented. “ It eliminates the need for departmentali zation and the customers like it.” Mary Doak, marketing director, The Grundy National Bank, Grundy Center, talked about her bank’s marketing efforts. In establishing an image for the bank, they decided to use Huggy Bear, who says the bank “is a honey of a bank.” Huggy appears at the bank regularly and is well known to all customers. She Marne Bond, v.p., Davis County Sav., B loom field; Carol Stone, t.o ., Central Natl., Des Moines; Lois Irvin, p.r. officer, Davis County Sav., Bloom field and Lou Ann Sandburg, asst, investment officer, Central Natl., Des Moines. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Arnold Schultz, pres., and Sara Lee Yoder, cash., Grundy Natl., Grundy Center, r u a r • When your bonk needs the services of o correspondent you often need it FAST! At American Trust & Savings Bonk w e know that. That's why w e're geared up to be knocking at your door before you know it. Often, within two or three hours after receiving your coll. After all, your business means o lot to us & TOWN CLOCK PLAZA and w e wont to earn your support. If that DUBUQUE. IOWA 52001 means going the "extra mile" PHONE COLLECT: 319-562-1541 MEMDER: FDIC & FEDERAL RESERVE SYSTEM you con count on it. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 108 Io w a N e w s Pictured are panelists (from left to right): Marilyn Hurley Ash, v.p., Natl. Bank of Des Moines; Mary Doak, marketing dir., Grundy Natl., Grundy Center: and Margaret Hough, a.v.p., Merchants Natl., Cedar Rapids. Richard Jung, v.p., Natl. Bank of W aterloo, with Inez McCarville, v.p. & cash, and Frances Rittgers, a.c., Iowa Svgs., Dike. told how the bank incorporates Huggy into its advertising and promotional campaigns. For effective communication, Ms. Doak said a bank must know its image, listen to and appreciate its customers. Marilyn Hurley Ash, vice president, National Bank of Des Moines, spoke about her career and told registrants “you need strategy and goals to get where you want to go in your career.” She also explained her bank’s officer calling program in which each officer is assigned so many calls to make a year. ‘‘Go to them,” she said.‘‘I t’s easier to make them feel important. There is no such thing as a bad call. They can’t help but be flattered that a banker has come to them.” Other panel speakers included R. Scott Fetner, president, The National Bank of Waterloo; R. K. Severdahl, president, Peoples Bank & Trust Co., Waterloo, and Arnold Schultz, president, The Grundy National Bank, Grundy Center. Mary F. Holstad, commissioner, Iowa State Commerce Commission, Des Moines, spoke about her work. She is a former group chairman and officer of Central National Bank and Trust Company in Des Moines. “Are you Growing?” was the title of a talk given by Bernard McKinley, CLU, district agency manager, The Prudential Life Insurance Company, Waterloo. He cited growth in knowledge, attitude, skills and habits. Knowledge must be continuous and specialized, he said. ‘‘Be around people who know more about your business than you do.” About attitudes, he commented ‘‘Make something positive out of every negative situation. Remember the enthusiasm of a little child. Stay away from negative people. ‘‘Be proud of what you do (your skills) or get out of it,” Mr. McKinley told the audience. ‘‘You’re a sum total of your habits. Change your habits, change yourself.” He said the three most important habits are physical fitness, integrity and faith. The 1979 convention will be held in Davenport. □ Sioux City Bank Elects Investment Officer William O. Wogstad has been elected bank investment officer of the Security Na tio n a l B an k , Sioux City. Mr. Wogstad, who joined the bank in January, comes from Om aha, Neb r . , where he was associated as a broker in securi W. O. WOGSTAD ty sales with the international banking organization of White Weld. Prior to that he worked for seven years as manager of corporate progress in planning and finance for Underwriters’ Labor atories in Illinois. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Capital Increases The following Iowa banks have increased their capital accounts: First Central State Bank, DeWitt, sold 1,650 shares for $167 each totaling $275,550. Distribution— $99,000 to capital, and $176,550 to surplus. Capital now totals $399,000. Iowa Trust and Savings Bank, Estherville, sold 500 shares for $500 each totaling $250,000. Distribu tion—$50,000 to both capital and surplus and $150,000 to undivided profits. Capital now totals $450,000. Goldfield State Bank, sold 200 shares for $500 each to talin g $100,000. Distribution—$20,000 to capital; $30,000 to surplus and $50,000 to undivided profits. Capital now totals $120,000. Warren County Brenton Bank & Trust, Indianola, sold 1,040 shares for $270 each totaling $280,800. Distribution—$104,000 to capital; $175,000 to surplus and $1,800 to undivided profits. Capital now totals $390,000. The Decatur County State Bank, Leon, sold 2,000 shares for $1,000 each totaling $200,000. Distribution—$100,000 to both capital and surplus. Capital now totals $400,000. Peoples Savings Bank, Wellsburg, 100% stock dividend by transferring $125,000 from undivided profits to common capital. Capital now totals $250,000. Charles Gibbons Funeral services were held recently for Charles Gibbons, 65, director of the Tipton State Bank since 1965. He was a long-time Tipton retail merchant, having retired in 1975. 109 Our idea of correspondent banking: THE COMMITTEE OF ONE. Our people are real, live, experienced correspondent professionals, with years of correspondent banking behind them. They aren’t management trainees or just goodwill ambassadors, so they can okay loans or services —like our new EFTS services-on the spot. Without going through unwieldy, time-wasting committees. WE CALL YOU BY NAME NOT BY PHONE. You see, National Boulevard believes in person-to-person, eye-to-eye contact with the management of every correspondent bank. Right there at the correspondent bank. So things get done faster, friendlier. THE FUTURE STARTSTODAY And now our individualized services will be better than ever, because National Boulevard is ready for EFTS. Electronic Funds Transfer Systems. For instance, our Central Information File is capable of transmitting information to correspondent banks. Soon, checking and savings accounts will be on line. Then, step-by-step, every correspondent service will be fully integrated into the system for more convenient, better banking. The hank for the New Downtown NATIONAL BOULEVARD BANK OF CHICAGO 400-410 North Michigan Ave., Chicago, 111. 00611 Phone (312) 836-6500 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 110 Io w a N ew s Focus on Washington From left: Ed Tubbs, pres., Maquoketa State and IBA treas.; Christy Armstrong, pres., American T&S, Dubuque and IBA pres.; Rand Petersen, pres., Shelby County State, Harlan and IBA v.p., with W illis A lexander, exec, v .p ., A B A , W ashington, D.C. IFTY FIVE Iowa bankers and their spouses parti F cipated in the recent trip to Washington, D.C., sponsored annually by the Iowa Bankers Association. The trip was closely coordinated and assisted by the American Bankers Association headquarters staff in the nation’s capital. It included briefing sessions with officials of the Federal Reserve System, FDIC, Comptroller of the Currency, Small Business Administration, Department of Energy and Conference of State Bank Supervisors. The principal goal of the annual trip is making personal contact with Iowa’s two United States Senators and six Representatives, all of whom were invited to a reception and dinner hosted by the IBA. Other guests at the dinner included representatives from the three regulatory agencies, legislative staff members, ABA officials, representatives from other government agencies and members of the press. PICTURES below were taken at reception and dinner, from left to right. Top row: (Left) Rep. Tom Harkin listens to Tom Dunlap, pres., South Story B&T, Slater. (Right) Deri Derr, dir. of ABA ag bkrs. d iv., and Oliver Hansen, pres., Liberty T&S, Durant, hear a point clarified by Rep. Neal Smith. Bottom row: (Left) Rep. Charles Grassley visits with Scott Fetner, pres., Natl. Bank of Waterloo. In background is Adrian Rademaker, chmn. & pres., Farmers Savings, West Union. (Center) Dave McNichols, exec. dir. of the IBA and Alex Neale, v.p. and dir. of federal le g is l., CSBS, W ashington. (Right) ABA’s Exec. V.P. Willis Alexander chats with Neil Milner, exec, v.p. of the IBA. DigitizedNorthwestern for FRASERBanker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Do yourself a KNOT. If you're like most bankers you've got a very busy workload. That's why we'd like to remind you that we can help you with your correspondent banking. Computer work ... proof of deposit ... transit work ... collection of checks... even the opportunity to increase your profits with our new BANKEASY card. As this area's largest correspondent bank, we do them all. And we do them well. So do yourself a favor. Call or write us today. National Bank o f W aterloo https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100 East Park Northwestern Banker, June 1978 112 Io w a N ew s Groups Discuss Legislative Proposals; Receive Optimistic ITS Report By MALCOLM FREELAND Publisher T is time the bankers of Iowa Ipolitical become active participants in the arena - rather than critical observers.” This was the suggestion made by Christy F. Armstrong, president, Iowa Bankers Association, at last month’s series of eight annual group meetings. Mr. Armstrong appealed to bankers to become more politically involved on the local level before they become ‘‘an endangered spe cies,” a term he used in his acceptance speech following his election as IBA president last fall. Pending legislation on increasing the usury rate on home mortgages and a proposed reduction in the revolving credit rate were on the minds of delegates during the first week of meetings. Executive Secre tary Neil Milner kept in touch with senators and representatives, rather than attend the Group 8, 4, 7 and 2 meetings. No action was taken on either issue, and the legislature recessed with a plan of returning in late June. ITS Report Dale Dooley, executive director of the Iowa Transfer System, gave IBA members some optimistic news when he predicted that if transactions growth continues in 1978 as projected, ITS will have a positive cash flow in March, 1979. ITS has substantially reduced its costs and plans to reduce costs even further when NCR computer system will be installed in February, 1979. MidAmerica Financial Services of Bettendorf will operate the system for ITS. It is intended for ITS to assume full operating responsibility of the switch in February, 1980, and the system will support both switch-in-front and switch-behind. Switched transactions increased from 5,870 in March, 1977, to over 52,000 in March, 1978. One participating bank reported that more than 20,000 pieces of paper are being replaced weekly. Another statistic reported by Mr. Dooley showed that the ratio of dollar deposits to dollars withdrawn is about two to one. ITS has received a formal request from the Credit Union League to use the system. The ITS board of directors is investigating the legal, economical, and mechnical issues of this request. Huston Report Turnover of examiners within the state department of banking is still a critical problem, according to Tom Huston, superintendent of banking. Mr. Huston has recently organized a state school for examiners, and 19 examiners recently completed a three week course at Camp Dodge. Seven FDIC instructors were present, and surrounding states have indicated interest in the innovative plan. It is V reported to be the first of its kind in America. Details on the school will be reported in the July Northwestern Banker. Group 8, meeting in Davenport, elected as chairman Robert C. Wede, ^ president, Goose Lake Savings Bank. Clark Houghton, president of the First National Bank, Iowa City, was elected secretary. Group 4, meeting in Dubuque, advanced Churchill Williams as chairman. He is chairman of the i Oelwein S tate Bank. A new secretary will be chosen by mail ballot. Group 6, meeting in Des Moines, elected Don Bolton, executive vice president of the Union State Bank, Winterset, as chairman. Robert C hittenden, vice president and cashier of the Farmers Savings Bank, Mitchellville, was elected secretary. Report from Headquarters Dave McNichols, executive direc- v tor of IBA gave a comprehensive report on IBA activities. New plans call for a seminar for directors this fall, an upcoming security school, and a session on formation of onebank holding companies. Nearly > 9,000 Iowa bankers participated in various educational sessions held in Y 16 communities during the past year. A further report with pictures will appear in the July Northwestern Banker, covering the meetings of Group 5, 12, 2 and 3. t AG PANEL at Gp. 4 consisted of Alan Tubbs, e.v.p., First Central St., DeWitt; Ed Tubbs, pres., Maquoketa St.; Stephen and Mary Garst, Coon Rapids. RIGHT - Dale DeKoster, pres., Waterloo Sav. Bk.; Mary Louise Petersen, Shelby Co. Natl., Harlan, Barbara Armstrong, American T & S., Dubuque, and Margaret DeKoster, Waterloo Sav. Bk. DigitizedNorthwestern for FRASERBanker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 115 THERE’S MORE TO WRITING INSURANCE THAN WRITING INSURANCE . .. Like testin g for air pollution. Or helping a firm with a truck safety program. Or m aking water flow te sts for fire protection. These are just som e o f the services Employers M utual C om panies offers its policyholders. We have our own specialists to perform them , and o u r own environm ental health laboratory located in our H om e O ffice building. Employers M utual Com panies was founded in the concern for the health and safety o f others. It started, in 1911, by w ritin g w o rke r’s com pensation insurance. Today Employers M utual w rites all lines o f insurance, but continues its tradition o f service. We w rite insurance, yes. And do much more. m m Employers Mutual Companies DES MOINES IOWA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 116 Io w a N ew s MB Announces Convention Highlights PROGRAM featuring a host of well-known speakers has been A announced for the 7th annual convention of the Iowa Indepen d e n t B an k e rs sch ed u led for Lake Okoboji, July 20-22, ac cording to Gor don L. Mennen, president of I IB and president of G> L> MENNEN the LeMars Savings Bank. Head quarters will be the New Inn. Headliners will include: Carol Foreman, assistant secretary of agriculture; Lute Olson, Iowa basketball coach; Alex Sheshunoff, well-known bank analyst, and Maurice Barringer, treasurer of Iowa. Planned as a family convention, the IIB has special activities scheduled for young people, as well as adults. The annual couple’s golf tourney will take place on Thursday, * it 'mm July 20. The men’s golf tourney will be on Friday afternoon, July 21. General business sessions will be on Friday and Saturday mornings. The convention will conclude with the social hour and barbeque on the New Inn beach on Saturday evening. 400 Attend Bank’s Seminar For Women in Sioux City More than 400 northwestern Iowa women and a few men recently attended a special women’s financial seminar, “The Joy of Money,” sponsored by the Security National Bank, Sioux City. The seminar, designed for and by Sioux City area women, featured Paula Nelson, businesswoman, na tional financial consultant and author of “The Joy of Money,” a guide to financial freedom for women. Ms. Nelson led the day-long seminar through such topics as building your financial pyramid, women and credit, insurance and estate planning. The cost of the seminar and luncheon was $10, which included a copy of Ms. Nelson’s book and attendance at any or all of three in-depth financial workshops held in April and May, according to Susy Robinette, Security National’s direc tor for the seminar and workshops. The three workshops covered invest ments, credit and trusts and wills. JOIN the KING and QUEEN Iowa Independent Bankers 7th Annual Convention July 20-22, Lake Okoboji Special events July 20, couples golf tournament July 21, mens golf tournament Special guests Carol Foreman asst. sec. of agriculture Lute Olson Iowa basketball coach Alex Sheshunoff bank analyst Send your convention registration to: Iowa Independent Bankers, 222 Equitable Bldg., Des Moines, Iowa 50309. Telephone 515/244-4201. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa Valley AIB Chapter Installs New Officers Barb A tha, tru s t officer of Security Savings Bank, Marshall town, recently was installed as president of the Iowa Valley Chapter of the American In stitu te of Banking. Other officers installed are: first vice president, John Stull, vice president and assistant trust officer, First State Bank, Conrad; second vice president, Roger Cramer, farm representative, Producers Savings Bank, Green Mountain, and secre tary-treasurer, Richard McMullin, vice president and agricultural representative, S tate Bank of Toledo. 117 The Iowa Team of the Harris Bank. Jim Hill and Christina Wilkins are the Harris Bankers who travel in Iowa. They are dedicated professionals. But, best of all, they’re backed by management that is truly committed to a winning effort. When questions or problems arise, call Jim, (312) 461-2745, or Christina, (312) 461-7510. They and their friend will get you the help you need. You should have a Harris Banker.® HARRIS BANK. Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60690. Member F.D.I.C., Federal Reserve System. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 118 Io w a N ew s First of Ames Celebrates 75th Year with Construction Activity at 3 Locations activities at three locations are highlighting C the 75th anniversary year for First o n s t r u c t io n National Bank of Ames. The bank recently opened its North Grand Office in Randall's Food Store, according to Patricia Seastrond, manager. Located at the front entrance in the northeast corner of the store, the office includes a full-size vault door, two conventional teller stations and other standard bank furniture and equipment. It also is equipped with burglar alarms, police call buttons and other security devices. The vault includes safe deposit boxes. The First Bank 24 automatic teller service, in the store since 1976, has Max Roy Retires From LaSalle National Bank been moved to an outside wall. A night deposit and customer envelope drop also have been added. A 16,000 square foot office building is under construction adjacent to the bank’s University Office. The bank will occupy about half of this space. The remainder will be available foj* shops and offices. A First Bank 24 automatic teller machine also will be installed here. The bank also is constructing a 4,000 square foot addition to its main building at Fifth and Burnett. The project, involving contracts totaling $230,000, also will increase the drive-up lanes from three to four including two manned and two visual auto tellers. R. R. HORST L. BUCHHEIT D. A. COLE Named at Cedar Rapids United State Bank, Cedar Rapids, has announced Max Roy, vice president of the appointment LaSalle National Bank, Chicago, has of Richard Rheelected to take inschmidt as au early retirement. ditor, according He has been a to Charles Cebumember of the har, president b an k ’s corres and chairman. pondent depart Mr. Rheinschment for the past midt is a certified 19 years, serving public accoun banks in Iowa, tant, who was R. RHEINSCHMIDT Illin o is , and previously with McGladrey, Hansen Southern Minne and Dunn, a Cedar Rapids account sota. When Mr. Roy started with ing firm. He is a graduate of Coe LaSalle, the bank had one corres College. pondent account in Iowa. Today, the Hawkeye state is a major factor in the bank’s correspondent network. Mr. Roy is a graduate of Iowa Princeton, Le Claire Banks State University, Ames. He started Name G. Waters President his financial career with Merrill Glen H. Suiter announced last Lynch, and later spent five years in month that Gerald R. Waters, 44, the correspondent department of the has been elected president and Iowa Des Moines National Bank. director of the Farmers Savings Mr. Roy and his wife, Lillian, plan Bank in Princeton and Le Claire to make their home at Crystal River, State Bank in Le Claire. He will Fla. During his years with LaSalle, assume his new duties July 1. Mr. the family lived in Iowa City. Suiter, 55, who has been president of both banks, will continue actively as Promoted at Waterloo chairman of the board of the two Deon Senchina has been promoted banks. Mr. Waters is resigning from to consumer loan officer at the Waterloo Savings Bank. She joined Davenport Bank and Trust Compa the bank in 1973 as an instalment ny in nearby Davenport as senior loan teller. Since then she has been in vice president in charge of correspon new accounts and most recently was dent banks and marketing to accept an officer trainee in the instalment the new position. He was graduated from St. Ambrose College in loan department. Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. L. STOLK Davenport in 1955 with a B.A. degree, joined Burroughs Corp. following graduation and remained with th a t firm until joining Davenport Bank in 1965. As chairman of the two banks, Mr. Suiter succeeds Wesley C. Schmalz, who retired last month and was honored for his 35 years of service on the bank boards. Mr. Suiter also announced several promotions of staff members at the two banks, following the decision earlier this year by Eugene R. Holst to resign as executive vice president. Dennis L. Stolk, cashier at Le Claire State Bank, assumes the additional duties of executive vice president. Richard R. Horst, cashier and farm rep at Farmers Savings in Princeton, will assume the duties of executive vice president at that bank. Loretta Buchheit moves up from assistant cashier to assistant vice president at Le Claire. Dorothy Ann Cole received a similar promotion from her former position as assistant cashier and will continue at Princeton. T ed A x to n , R ich A k in and M ik e Byrne. T h e y ’re all you rs. T h e c o lle c tiv e exp erien ce, d ed ica tio n and k n o w le d g e o f three fu ll-tim e p rofession als, backed bv top m an a g em en t c o m m itm e n t and th e ex te n siv e fa cilities o f on e o f th e fin e st banks in C h icago. M o st banks p rovid e th e sam e basic package o f corresp on d en t services. C ash letter an alysis, over lin e assista n ce, co m p u ter ca p a b ilities. B u t the A m erican N a tio n a l Bank offers its corresp on d en ts all that and M ik e, T ed and R ich , too. T h e s e m en k n o w th e territory and can resp on d q u ick ly to you r n eed s. S o if y o u ’re a bank in th e M id w e st that w a n ts m ore from its co rresp on d en t relation sh ip , call T ed , R ich or M ik e. A t A m erican N a tio n a l Bank. and Trust Company of Chicago 33 North La Salle / La Salle at Wacker 60690/ Phone (3 1 2 ) 661-5000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 120 involve commercial lending business development. and * * * Orville Lowe has been named a director of West Des Moines State Bank, according to David L. Miller, president. Mr. Lowe is owner and president of Orville Lowe Mid-town Motors. è à * * * John R. Fitzgibbon, chairman, president, and chief executive officer of the Iowa-Des Moines National Bank, and Daniel A. Leclerc, presi dent of Lease HE Iowa-Des Moines National Moines Savings and Loan Associa Northwest, Inc., Bank has announced the promo tion. Other experience includes an M i n n e a p o l i s , tions of Peter F. Faletti to vice association with the Iowa-Des Minn., have an nounced plans to president and controller and James Moines National Bank. open a regional Ornat to assistant controller. * * * office of Lease Mr. Faletti, a graduate of St. Northwest, Inc. j. d . SHEEDY The National Bank of Des Moines Louis University, received his BBA in Des Moines. has announced that it has changed in 1969 and MBA in 1975. He joined James D. Sheedy has been named the bank as controller in 1977 after its name to Brenton National Bank manager of the office, to be located of Des Moines, effective June 1. William H. Brenton, chairman, at the Iowa-Des Moines National also has announced the promotion of Bank in the Financial Center. He will Edward W. Stern to assistant vice initially be responsible for coverage president and manager, Valley West of the central and eastern portions of Mall. Mr. Stern, a graduate of Iowa, and assisting other Northwest Morningside College in Sioux City, Bancorporation affiliates in this has been with the bank for five area. Mr. Sheedy is a graduate of Mankato State College in Mankato, years. Minn., where he received a Bachelors *** Degree in economics in 1965. The Iowa-Des Moines National David L. Miller, president of the P. F. FALETTI J. ORNAT West Des Moines State Bank, re Bank and Lease Northwest, Inc. are affiliated through Northwest Banserving as assistant controller for the cently was elect corporation. Currently Lease North ed to the addi Mercantile Bancorporation in St. west, Inc., also has offices in Omaha Louis. Mr. Ornat joined the bank in tional position of and M inneapolis. The financial February after serving as profit c h a i r ma n . He services offered by Lease Northwest succeeds the late planning director at the Fidelity include the full range of equipment Hal Chase II. Bank in Oklahoma City, Okla. He is financing: true tax oriented leasing, M r. Miller, an accounting graduate of California lease-purchase programs and install president of the State University. ment sales contracts. bank since 1968, *** * * * joined West Bank in 1961. He D. L. MILLER Lewis D. Downard has been Joins Crawfordsville Bank elected managing officer of the West is a native of Davenport and a business adminis Richard S. Dare will join the Des Moines Of tration graduate of the University of Peoples Savings Bank of Crawfords fice of Capital Iowa, Iowa City. ville as vice president after harvest City State Bank. * * * this fall, according to Wm. R. A graduate of Bernau, president. Mr. Dare became Grandview Jun Robert E. Young has joined a partner in the Stephens and Dare ior College, Mr. Bankers Trust as commercial loan farming partnership in 1955 and has Downard has a t officer. A graduate of Iowa State been an active member and cattle te n d e d D rake U niversity, he was previously feeder since that time. U niversity and In other staff changes, John associated with Northwest Bancor the American In White, who had been with the bank poration and Iowa-Des Moines stitute of Bank National Bank. His responsibilities since 1952, retired as vice president ing. He comes to Capital City Bank from the Des at Bankers Trust will initially and cashier. T Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b y i* 121 Donald W. Wright, Exec. Vice Pres. Oakland Savings Bank, Oakland, la. “Thanks to our friends at the Big “C”, we have been able to assist the expansion programs of our large farm customers.” Banker Donald Wright discusses agri-business financing w ith the Muller brothers of Griswold, Iowa. Central National Bank is eager to help correspondent banks with large loans for family farm operations such as the Mullers' Central National Bank & Trust Company DES MOINES (515) 245-7111 MEMBER FDIC LOCUST AT 6TH/5TH & GRAND/35TH & INGERSOLL/WDM: 35TH & I-235 f g AFFILIATED WITH CENTRAL NATIONAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 122 Banking and Barbering in St. Lucas HERE can you get a shave, W haircut, a check cashed and a loan made all in the same place? A unique barbering and banking combination located in St. Lucas, la., at the branch of First National Bank of West Union, th at’s where. And the barber is 87 year-old John Mihm, a well-liked and respected citizen of St. Lucas. Mr. Mihm has been barbering at this bank ever since he bought the building when the bank went defunct during the depression. The bank served as his barber shop for over the next 40 years until the First National Bank of West Union bought the building in recent months from Mr. Mihm. First National then gave Mr. Mihm a lifetime lease for $1 on a space in the bank for his barber shop. During the years Mr. Mihm owned the building, he stored gum and candy in the old vault for the local drugstore and cashed checks for local residents. When First National took over the building, it decided to remodel the interior and called upon Bank Building Corporation to handle the job. It decided to retain the 1930s look of the interior by keeping many of the original fixtures including brass chande liers, a quarry tile floor, and a pressed metal ceiling. On the exterior, the existing red brick was kept and awnings, wrought marketing and service representative from 1976-77, later transferring to Minneapolis and serving as senior service representative from 1977-78. Cedar Rapids Bank Names Director, Promotes Six Clare I. Rice has been elected to the board of directors of the M erchants N a tional Bank, Ce dar Rapids. He is president of the avionics and missiles group of Rockwell Inter national and sen ior executive for the ROBERT J. Ralston, pres., First Natl. Bank of West Union, takes his turn in the barber chair of John C. Mihm. iron railings, and handrails were added along with a new wooden sign. The remodeling of the one-story building on a corner lot is now complete, and the bank and Mr. Mihm are open for business. So whether you need a haircut or money, stop by the St. Lucas branch of the First National Bank of West Union. Collins groups in Cedar S. R. FARMER Rapids. The bank also announced the following promotions: Marlette Jen sen. Patricia A. Jennings and Thomas J. Watson, from assistant cashiers to assistant vice presidents, and Stanley R. Farmer, Rudy O. W. Frey and James A.Koenig to assistant cashiers. Mr. Farmer is in the correspondent department and is well known to Iowa bankers. Changes at Donnellson Citizens State Bank, Donnellson, has announced that Jerry Harkins has been elected president and director. The bank also announced that Daniel E. Jessen, vice president and trust officer, and Greg A. Mohr, vice president and cashier, have been elected to the board of directors. Mr. Mohr recently was promoted from cashier to vice president and cashier. Mr. Kortman has worked at First State Bank for five years and prior to C. John Kortman, 32, assistant that had in extension service cashier and farm representative at work. He been was a native of Charter the First State Bank in Mapleton, Oak, where he was buried. was killed in an auto accident April 22. While stopped at a highway Appointed Savings Bonds intersection, his car was struck by Mason City Bank Names Chairman in Jones County another vehicle that reportedly ran Correspondent Officer Richard J. Moore, vice president the stop sign, and the Kortman car was thrown in the path of an The First National Bank of Mason and trust officer of the Monticello oncoming pickup truck which struck City has announced the election of State Bank, Monticello, has been it broadside. The driver of the other Gerald C. Niemeyer as correspon appointed volunteer chairman for the U nited S tates Savings Bonds auto also was killed. dent banking officer. Mr. Niemeyer brings to his new program in Jones County by Jay E. position a strong computer back Tone, Jr. , state chairm an for ground in operations and servicing of Savings Bonds activities. Mr. Moore succeeds H. M. Jones, bank applications. He began his career in 1969 with Northwest publisher of the MONTICELLO Computer Services, Inc., at Roches EXPRESS who was associated with ter, Minn. He transfered to Sioux the bond program since August, Falls, S.D., where he served as 1973. John Kortman Killed Northwestern Banker. June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Io w a N e w s Iowa Investment Bankers Hold Annual Field Day in Des Moines May 17-18 Officers for 1978 are (left to right): Pres., Secy.-Treas., Jim Weiser, Central National Kirkendall, First Mid America; 1st V.P., Tom Tournament Chmn., Art Reynolds, Carleton Goodwin, R. G. Dickinson & Co. Gene Strandberg, Carleton D. Beh Co.; B&T Co.; Golf Tournament Chmn., Bob Wormley, Shaw-McDermott & Co.; Tennis D. Beh Co.; not pictured, 2nd V.P., Bill Discussing the golf to u rn a m e n t re s u lts are Ron Stegh, a.v.p. Carleton D. Beh Co.; Dennis Young, Dial F in a n c ia l C o r p . ; Robert Beh, pres., Carleton D. Beh Co. 1 23 Iowa Bank Opens Foreign Branch John R. Fitzgibbon, chairman, president and chief executive officer of the Iowa-Des Moines National Bank has announced plans to open a foreign branch in Georgetown, Grand Cayman, in the British West Indies. Having received approval by the Board of Governors of the Federal Reserve, the bank is planning a July opening subject to final approval by the Cayman Island government. Mr. Fitzgibbon states, “This is a milestone for the State of Iowa and its economy. It will enhance Iowa’s image and ability to a ttra c t companies involved in international business while better serving the banking needs of Iowa manufactur ers currently involved in importing and exporting.” David L. Tremmel, vice president and manager of the bank’s interna tional banking department, stated that the new foreign branch will have a direct impact on Iowa firms doing business abroad. Although basic international banking services have been offered in the State, Iowa firms requiring foreign affiliate financing and export financing based on Euro currency markets have had to go outside our State for these services. Williamsburg Bank Names President The promotions of Robert J. Coulter to chairman and R. James Coulter, Jr., to president and chief executive officer of the Security Savings Bank, Williamsburg, have Banks of Iowa 1st Quarter dividends continued the yearly been announced. Both will remain in increase they have registered since the bank full-time. Earnings Hit Record Level Banks of Iowa, Inc., Cedar 1967. At B of I, compound earnings Mr. Coulter, Jr., is a 1968 Rapids-based multi-bank holding have increased 12% per year while graduate of the University of Iowa, company, reported record operating dividends have increased 11%. Iowa City. He joined the bank in Operating income at the end of the 1972 and has served as executive income, net income and earnings per share for the first quarter of 1978. F. first quarter was $17,908,272, up vice president since that time. Forbes Olberg, chairman and presi from $15,524,937 a year earlier. Net Michael B. Yanney, who pur dent of B of I, reported to income rose from $1,833,268 to chased the majority interest in the stockholders that total resources on $2,212,988, and earnings per share bank earlier this year, was named to March 31 were $961,877,775, up rose from 93 cents per share to $1.15. the bank’s board. from the first quarter 1977 figure of Elected at Waterloo $886,820,711. The National Bank of Waterloo Capital accounts increased by 9.4% to $71,511,365 from has announced the elections of Craig $65,396,506 reported a year earlier. W. Shirey and Dr. William C. Drier Named at Centerville Cathy Couchman has been promo Book value per share rose from to its board of directors. Mr. Shirey $33.98 at first quarter 1977 to $37.24 is president of C. W'. Shirey Co. Dr. ted to cashier of Centerville National Drier began his practice in Waterloo Bank. She served as accounting in 1978. officer and assistant trust officer. Mr. Olberg said warnings and in 1946. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June 1978 124 * i •i Profit Motive Joe: “But, if it costs $20 to make these watches and you sell them for $20, where does your profit come in?“ Moe: “From repairing them.’’ Calm Under Fire A, An airline was conducting a training flight for new personnel. During the takeoff, the trainee flight engineer noticed suddenly that one of the engines was on fire. With the wrench he had in his hand, he touched the pilot’s shoulder and said, “We’re on fire.’’ The pilot soon had the plane safely Faisies back on the ground. The green The three-year-old was absolutely engineer was explaining to the fascinated with his grandfather’s ground crew how calmly he had false teeth. After staring transfixed spotted the trouble, how quietly he had called the pilot’s attention to it while they were removed for brushing and replaced, he asked to without panic or excitement. As he was talking, he saw the pilot have the process repeated. The being carried from the plane on a obliging grandfather did it several times for the youngster, then asked, stretcher. “W hat’s the matter with him?’’ “Now what?” The child’s eyes shifted momen thr trainee engineer asked. “Broken shoulder,’’ someone ex tarily and he said, “Take off your nose.” plained. Employers Mutual Ins. Co., Des Moines ................115 Acorn Printing Company ......................................... 6 Aetna Business Credit ............................................. 32 Allison-Williams ....................................................... 54 American Express Company ................................... 13 American National Bank, Chicago .......................... 119 American Trust, Dubuque.......................................... 107 American National Bank, St. Paul ............................ 63 Banco Financial ......................................................... 55 Bank Building Corporation ....................................... 29 Bankers Trust Company ............................................ 104 Brandt ......................................................................... 15 First First First First First First First First Mid America ..................................................... National, C asper............................................... National, Chicago............................................. National, Denver ............................................... National, Lincoln ............................................. National, O m aha............................................... National, St. Louis ........................................... National, St. Paul ............................................. 10 88 25 87 97 99 46 53 Gross, Kirk Company ............................................... 14 Harris Bank, Chicago ................................................ 117 Insured Credit, Chicago ........................................... 11 lowa-Des Moines National Bank .............................. 126 Iowa Independent Bankers . .................................... 116 Iowa Bankers Insurance & Services .......................... 113 Kemper, John M.......................................................... 9 Kirchner, Moore & Company ................................... 3 Kooker, Earl, Spencer ................................................122 Cheer Yourself Up When you are down in the dumps and want to climb out again, do this: praise somebody. Find some excuse t to say something nice to somebody who isn’t expecting it. This simple formula really works! And the r astonishing thing about it is that it will not only lift your spirits, it will perform a minor miracle in the disposition of the person you are praising. » National Bank of Commerce .................................... 103 National Bank of Waterloo ........................................ 111 National Boulevard Bank .......................................... 109 Northern Trust Company ......................................... 19 Northwestern National, Minneapolis ...................... 50 Northwestern Bell Telephone Company .................. 75 Omaha Financial Life ............................................... 58 Packers National Bank .............................................. 100 Piper, Jaffray & Hopwood......................................... 62 St. Louis Terminal Warehouse Co.............................. 49 Security National, Sioux C it y .................................... 101 Security National, D enver......................................... 85 Security Pacific, Los Angeles ................................. 81 Stockmen’s Bank, Gillette ....................................... 8 6 Talcott, James ........................................................... 59 Travelers Express Company ..................................... 61 Central Bank, Denver....................................................79 Central National Bank, Des Moines ........................ 121 Colorado National Bank ........................................... 77 Commerce Bank, Kansas City ................................. 31 Continental Bank, Chicago ..................................... 23 Lawrence System s..................................................... 8 Lincoln B enefit............................................................102 United Bank of Denver............................................... 83 United Guaranty Insurance Company ...................... 125 United States Check Book Company ..................8 8 , 96 United Missouri Bank ............................................... 7 U.S. National, Omaha ............................................... 90 Daktronics ................................................................. 6 Dawson Hail ............................................................... 37 DeLuxe Check Printers ............................................. 5 Downey, C.L................................................................. 39 Manufacturers Hanover, New York ......................... 21 Marquette National, Minneapolis.......................... 66-67 Merchants National, Cedar Rapids ......................... 2 Midland National, Minneapolis ............................ 56-57 Western Capital Corp.................................................. 27 Wyoming National Bank ........................................... 89 Northwestern Banker, June 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Van Wagenen, G.D...................................................... 18 4 “Don’t be confused, Alice. Just think o f us as an integral part o f the lending industry.’’ One reason for United’s growth is our service. It’s both fast and efficient. Plus a nationwide network of conveniently located offices and experienced representatives. U n ited Guaranty THE MORTGAGE INSURER United G uaranty Corporation. 826 N Elm. Box 21567. Greensboro, NC 27420 • (919) 373-0863 Contact: United Guaranty Residential Insurance Company • P.O. Box 778, Bettendorf, Iowa 52722 In Iowa, call (800) 292-0047. In States bordering Iowa, call (800) 553-8976 United Guaranty Residential Insurance Company • 421 S.W. 6th Avenue, Suite 900, Portland, Oregon 97204 In Washington and Idaho, call (800) 547-1064. In Oregon, call (800) 452-7697 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa b an k s rely cm Lynn Horak to give them a lot o f help for th eir money. We at the Iowa-Des Moines pride ourselves in having a Correspondent Banking team that is committed to providing total service to Iowa Bankers. With knowledgeable and experienced people like Lynn Horak, the Iowa-Des Moines is able to live up to that com m itm ent — that now extends to over 400 banks. Because Lynn was manager of our largest office he understands, from experience, what your banking needs are and how to tailor the services of the Iowa-Des Moines to m eet them. This perspective has helped him provide the type of advice many bankers have com e to appreciate. And, if you need assistance in fulfilling the borrowing needs of your large commercial customers, Lynn’s expertise in financial statement analysis can be helpful. With correspondent bankers like Lynn Horak, the Iowa-Des Moines can fulfill its commitment of prompt, attentive service to its correspondents. It is that com m itm ent which you can rely on to get a lot of help for your money, from all of us. if J m »■' w tm George Milligan m Bemie Kersey Bob Buenneke Dorothea Wolfe Voldy Vanags / Jr Lance Davenport Call toll free 1-800-362-2514 to get a lot of help for your money. IO W A . Y es, y o u c a n g e t a lo t o f h e lp fo r y o u r m o n e y . 7th & Walnut, Des Moines, Iowa 50304 (515) 245-3131 1978 Iowa-Des Moines National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC An A ffiliate of N o rth w e s t B a n c o rp o ra tio n BANCO*
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