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C— 3Ç- JUNE 1980 Port of Duluth at Sunrise Convention Programs: Minnesota • Montana • W yom ing Convention Reports: Nebraska • South Dakota • for Inflation Digitized FRASER squeezes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bank stocks • Examine asset-based financing • Financial statem ents: What do they reveal? M eet the trust department people who can make M NB work for you. Frank Ceynar Our trust department will help you and your customers deal with today’ s increasingly com p lex tax and estate structures. A m on g the many trust services we offer: Administration and execution of estates; trustee for liv ing trust, trustee for trust under will, trustee for life insur ance trust, agency and custodian services, estate plan- ning, trustee o f em ploym ent benefit accounts, corporate accounts and trustee for investment management. For know ledgeable, dependable planning, call on o n e o f M NB’ s trust exp erts... Dick, Ed, Frank or H u go will m ake MNB w ork for you. The num ber to call is 3 1 9 -3 9 8 -4 2 2 4 or toll free 1 -8 0 0 -3 3 2 -5 9 9 1 . Make sure you get the best by calling one of MNB’s Correspondent Banking Professionals. John E. Mangold Terry Martin Jerry N. Trudo Dale C. Froehlich Stan R. Farmer Senior Vice President Vice President Vice President Assistant Vice President Assistant Vice President (319) 398-4313 (319) 398-4320 (319) 398-4306 (319) 398-4314 (319) 398-4217 As-nstan* O U R P E O P L E 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 IOWA’ BANK * Som ebody has to set the standards* ÿ r * There are V iolins. Then there is Stradivarius. Brilliant in tone and pow er. Excellent in form . Exact in every detail. It’s the standard b y w hich all others are com pa red. The ultimate in quality. Because the nam e alone is a prom ise n o other can make. Deluxe. There are other check com panies that speak o f quality. Then there is Deluxe. The name. The p ro m is e . . . absolute quality, exacting detail. A ctu ally, the nam e says it all. Deluxe. DELUXE CHECK PRINTERS, INC SALES HDOTRS • 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 4 JU N E 1980 • 87th Year No. 1401 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES (XI MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER The San Francisco of the North coast, Duluth, greets a new day with a “ fleet” of ocean ships and lake carriers adding to the colorful sunrise over the Seaway Port of Duluth. The professional artistry of Basgen Photography-Duluth captured this exquisite, reflective mood. FEATURES 27 Examine asset-based financing Gregory Tamborello looks at equity-shy customers 28 Financial statements “What do they reveal?” asks Robert Maram 30 Inflation squeezes bank stocks 65 Fed Governor Wallich reviews asset problem 36 Bankers have tough decisions c Continental Bank seminars present current analysis 2 ¿ « V) w œ in a.< „« 0) © ir _3 SPECIAL CONVENTION SECTIONS 49 50 65 67 70 76 77 78 85 104 0=Ql® .m Minnesota Convention Program You Will See Them at Minnesota Convention Montana Convention Program You Will See Them at Montana Convention South Dakota Convention Report Wyoming Convention Program You Will See Them at Wyoming Convention Wyoming Officials Comment Nebraska Convention Report Iowa Group Meeting Reports LL © — r E © ©~ n c o ° cc 2 76 c © DEPARTMENTS 6 10 16 38 45 52 Calendar Bank Promotions Corporate News What’s New Illinois Twin Cities 62 79 94 100 103 114 120 120 jjj « North Dakota Colorado Omaha Lincoln Iowa Des Moines Jokes Advertisers’ Index Q.< ©2 1 * 1 © o DO 2 o ©! ?§ 8 ° NORTHWESTERN BANKER 30615th Street, Des Moines, Iowa 50309 Phone (515) 244-8163 Publisher Editor Business Manager Malcolm K. Freeland Ben Haller, Jr. Mike Freeland Associate Editor Deborah Peck Auditor Field Representative Field Representative Debbie Hibbert Glen Hicks Paul Masters No. 1401 Northwestern Banker (USPS 397-620) 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 address Form 3579, manuscripts, mail items) to above address. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 TH E CORRESPONDENT W ATCHER’S GUIDE. 'own tonuá ■ e iiíM uyactusm /y yíw novM . ïdpeaei ■fjovteAfyonc&nt ¡JeM íuw Jm jiac tôecW idieJ [Jlkcrndactton eAioncùrt Jntew nw tum a/ y '/ dwntced ’a n w ie ’t. ïtkwftdewicej W m * y ¡‘f/twnd^nc^ <detoûce4 , ï". Certi^ica/eÛAj 'ouùmt. (Pwcedaox /buona/ J cvudtdewù&i-\ There’s good reason why Manufacturers Hanover occupies the perch as America’s premier “ banker’s bank.” A t MHT, correspondent banking is one of our major lines of business. Our com m itm ent to it shows. Over 3,000 urban and community banks across the U.S. have chosen MHT as their correspondent in America’s financial capital. Identified above are the principal ways we serve correspondents. We also offer many other diverse services— from factoring to money transfer and wire, from bank money orders to staff training programs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jnveàtm&nt Those who deliver these services— the MHT Calling Officers— are easy to spot. Just look for these characteristics: a good head for modem bank ing, a keen eye on customers’ everyday needs, and a willing hand when extraordinary situations arise. Talk over your needs w ith your MHT Calling Officer. Or call Donald E. Paul, V.P., at (212) 350-6604. When we take you under our wing, we take good care of you. M ANUFACTURERS HANOVER America’s premier correspondent bank National Division, 350 Park Avenue, New York, N.Y. 10022 Northwestern Banker, June, 1980 6 Convention Calendar ABA—American Bankers Association AIB—American Institute of Banking BAI—Bank Marketing Association IBAA—Independent Bankers Association of America NABW— National Association of Bank Women, Inc. RMA— Robert Morris Associates National Conventions & Schools June5-7—Assn, of Bank Holding Compan ies 22nd Annual Meeting, Willamsburg Inn, Williamsburg, Va. June 15-18—ABA National Corporate Trust Workshop, Palmer House, Chicago. June 16-18—NABW Tri-Regional Confer ence, (North Central, Lake and Midwest Regions) Pfister Hotel and Tower, Mil waukee, Wis. June 25-27—Upper Midwest Agricultural Credit Conference, Medora, N.D. July 13-19—ABA National Compliance School, University of Notre Dame, Notre Dame, Ind. July 19—AIB Dist. 10 Leaders Conference, Radisson-St. Paul, St. Paul, Minn. July 19—AIB Dist. 11 Leaders Conference, Ramada Inn (Airport), Milwaukee, Wis. July 20-25—Midwest Banking Institute Pro gram for Agricultural Bankers, University of Minnesota, Morris. July 20-26—ABA National School of Bank Card Management, Northwestern Univer sity, Evanston, III. Aug. 10-15—Graduate School of Banking Postgraduate Course, University of Wis consin, Madison. Aug. 10-23—Graduate School of Banking 35th Annual Session, University of Wis consin, Madison. Aug. 20-22—Conference of State Bank Supervisors Dist. IV Meeting, Badlands Motel, Medora, N.D. Aug. 31-Sept. 3—IBAA 13th Seminar-Work shop on Bank Ownership, The Drake Hotel, Chicago. Sept. 7-9—ABA Mortgage Marketing and Investor Relations Seminar, Fairmont Hotel, Denver. Sept. 14-17—ABA National BankCard Con ference, New York (City) Hilton. Sept. 14-17—BMA 65th Annual Conven tion, San Francisco Hilton, San Fran cisco, Calif. Sept. 14-26—ABA National Instalment Credit School, University of Oklahoma, Norman. Sept. 21-24—ABA National Personnel Con ference, Olympic Hotel, Seattle, Wash. Sept. 22—ABA IRA Workshop, Hyatt Re gency O’Hare, Chicago. Oct. 5-8—NABW Annual Convention, Washington, D.C. Oct. 11 -15—ABA 106th Annual Convention, Chicago. Oct. 19-23—IBAA Bank Executive Develop ment Seminar, Ball State University, Muncie. Nov. 5-7—ABA Central Regional Work shop, 1980 Operations/Automation Divi sion, Hyatt Regency Indianapolis, Ind. Nov. 9-12—RMA 66th Annual Fall Confer ence, Stouffer’s Riverfront Towers, St. Louis, Mo. https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis Nov. 9-12—ABA National Agricultural Bankers Conference, Loew’s Anatole, Dallas, Tex. Nov. 9-20—ABA National Commercial Lending School, University of Oklahoma, Norman. Nov. 16-18—ABA National Correspondent Banking Conference, Hyatt Regency, At lanta, Ga. 1981 Feb. 15-18—ABA Community Bank Execu tives Conference, Hyatt Regency Phoe nix. Mar. 22-24—ABA National Credit Confer ence, Chicago Marriott. Mar. 22-25—ABA National Instalment Credit Conference, Los Angeles Bonaventure. Mar. 22-26—IBAA 51 st Annual Convention, Las Vegas Hilton, Las Vegas, Nev. May 31-June 3—ABA National Marketing Conference, Fairmont Hotel, Denver. Sept. 13-16—ABA National Personnel Con ference. Loew’s Anatole, Dallas, Tex. Nov. 8-11—ABA National Agricultural Bankers Conference, Sheraton Washing ton, D.C. Nov. 15-18—ABA National Correspondent Banking Conference, Hyatt Regency, Kansas City, Mo. State Conventions & Schools Colorado: June 5-7—Colorado Bankers Association 79th Annual Convention, Broadmoor Hotel, Colorado Springs. Aug. 3-15—CBA School of Banking, Uni versity of Colorado, Boulder. Illinois: June 5-7—Illinois Bankers Association 89th Annual Convention, Stouffer’s Riverfront Towers, St. Louis, Mo. June 8-14 — IBA A g ric u ltu ra l Lending School, Illinois State University, Normal. June 11-14—IBA Advanced Agricultural Lending Clinic, Illinois State University, Normal. Aug. 17-23— IBA Consum er Lending School, Eastern Illinois University, Charleston. Nov. 19-20—IBA 35th Annual Bank Man agement Conference, Holiday Inn, De catur. Iowa: June 9-20—Ag Credit School, Iowa State University, Ames. June 15-20—Iowa School of Banking, Uni versity of Iowa, Iowa City. July 17-19—Iowa Independent Bankers 9th Annual Convention, The New Inn, Lake Okoboji. Aug. 11-15—Iowa Instalment Lending School, Drake University, Des Moines. Sept. 21 -23—94th Annual Convention, Civic Center, Des Moines. Minnesota: June 16-17—90th Annual Convention, Du luth Arena Auditorium, Duluth. June 22-27—Minnesota School of Banking, St. Olaf College, Northfield. Montana: June 25-27—77th Annual Convention, Broadmoor Hotel, Colorado Springs, Colo. Nebraska: June 7-11—Washington Legislative Visit. •*- North Dakota: June 8-13—School of Banking, University of North Dakota, Grand Forks. Sept. 17-19—Ind. Comm. Bankers of N.D. Annual Convention, Ramada Inn, Minot. Oct. 6— NDBA Northeast Group Meeting, Devils Lake. * Oct. 7—NDBA Northwest Group Meeting, Garrison. Oct. 8— NDBA Southwest Group Meeting, New Salem. Oct. 9—NDBA Southeast Group Meeting, Valley City. Oct. 21-22—Bank Women’s Conference, Seven Seas Motor Inn, Mandan. Nov. 18-19—Agricultural Credit Confer ence, Ramada Inn, Minot. , South Dakota: Oct. 22-23—SDBA Economics Seminar, Holiday Inn, Mitchell. Oct. 9-10—Instalment Credit Conference, Sheraton Hotel, Aberdeen. Wyoming: June 11-13—Wyoming Bankers Associ ation 72nd Annual Convention, Jackson Lake Lodge, Moran. B of A Opens Seventh Branch in Argentina Bank of America has announced the opening of a new branch in Cordoba, the bank’s seventh in Argentina and the third opened in that country in the past year. The branch will offer full banking services. Emphasis will be given pre export and export financing, as well as programs for the entire agricultural crop cy cle from p re -p ro d u ctio n through distribution. Continental Elects New Director to Boards John M. Richman, 52, chairman and chief executive officer of Kraft, Inc., was elected a director of the boards of Continental Illinois Corp. and its prin cipal subsidiary, Continental Illinois National Bank and Trust Company of Chicago, at the annual meeting of stockholders. Robert W. Reneker, former chair- i man and chief executive officer of Esmark, Inc., and Arthur M. Wood, former chairman and chief executive officer of Sears, Roebuck and Co., did not stand for re-election at the annual meeting in accordance with the retire ment policy for directors. THE DIEBOLD K FILM With film prices going sky-high, older inefficient Camera Systems can represent a substantial cost drain. Yet you should have a surveillance system: to deter holdups or identify holdup participants . . . or to provide photographic documentation of transactions at the teller line. The answer is a film camera system designed to provide good evidence, yet use film with miser-like care: Diebold is a leader in this technology. Our 35mm camera system is designed to use up to 60% less film than most competitive camera systems, yet take pictures of equal clarity. Our 16mm camera system is designed to provide an accurate evidence chain for bad check and fraud documentation, yet use as much as 80% less film than conventional sequencing camera systems. We do this by eliminating “ waste” photographs. Explore how Diebold Film Saver Camera Systems can reduce your operating cost. 1 N6 Diebold, Incorporated Canton, OH 44711 Sure, I want to reduce film usage and cost. Please send more information. We know how to help you‘ TITLE ADDRESS TELEPHONE DIEBOLD I N C O R P O R A T E D C A N T O N , OHIO 44711 NAME CITY O ur Cam era System s Let You Save Film And Save M oney STATE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ZIP 8 A B A Lists 1980-81 Officer Slate FFICIAL nominees to lead the American Bankers Association during its 1980-81 Association year were selected by the ABA Council during a meeting at White Sulphur Springs. Nominated for the presidency of ABA is Lee E. Gunderson, president of the Bank of Osceola, Wise. Mr. Gunderson currently is president-elect of the ABA. Llewellyn Jenkins, vice chairman of O the board of Manufacturers Hanover Trust Co., New York, was nominated ABA president-elect. C. C. Hope Jr., vice chairman of the board of First Union National Bank, Charlotte, N.C., is slated to become chairman of the ABA Council. He cur rently serves as president of the ABA. Virgil E. Solso, president of The Oregon Bank, Portland, was nom inated for a second term as ABA treasurer. GET AWAY FROM IT ALL! YOUR FLORIDA VACATION SOUTH SEAS STYLE , y<z ( \ A Complete FAMILY - ^ RESORT --«*• on the World’s Safest Beach! 150 luxury units — lush tropical decor — oceanfront rooms, efficiencies. Olympic size swimming pool, kiddie pool, game room, surf fishing, putting green, Color TV, dining at the ISLANDER SUPPER CLUB or Seaside Patio Restaurant on the Pool Deck, cocktails in the RUM KEG Lounge or poolside. I Adjacent to Daytona Beach Closer to Disney World than any Atlantic Ocean motel. Circus World 75 miles, Sea World 60 miles, Disney World 65 miles, Cape Kennedy 40 miles, Silver Spring, Cypress Gardens 90 miles, Marineland 30 miles. Daytona Interna tional Speedway, Jai Alai and other central Florida attractions nearby. Stay at the ISLANDER . . . see them all. Complete convention facilities. RESERVATIONS TOLL-FREE 800-528-1234 ^ Tel.: 904/427-3452 * Best (festem BEACH LODGE Dept. 1652 1601 S. ATLANTIC AVE., NEW SMYRNA BEACH, FLA. 32069 Please send literature and rates NAME. ADDRESS. CITY, STATE, ZIP. i, J ^>©S & A Inc.) https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis F L O R I D A L. E. GUNDERSON L. JENKINS Bob Abboud Resigns As First Chicago Chairman A. R obert Abboud, 50, has resigned as chair man and chief ex ecutive officer of F ir s t C h ic a g o Corporation and its principal sub sidiary, The First National Bank of Chicago, accord. _ _ ° ’ A. R. ABBOUD m g to an an nouncement made at a press confer ence in the bank last month by Ben W. Heineman, head of the holding com pany’s executive com m ittee. Mr. Heineman, chairman of Northwest In dustries, Inc., Chicago, said Mr. Abboud will continue actively as chief executive of the holding company and bank until a successor is named, a process that may be completed in two months but possibly will take up to four months. During that time, Mr. Heineman will maintain an office at First Chicago where he will "consult with the chief executive on major pol icy and personnel matters.” Mr. Heineman also announced at the press conference that Harvey Kapnick, 55, who had joined the holding company six months ago as deputy chairman and No. 2 officer, had re signed effective immediately. Mr. Kapnick had been chief executive offi cer of Arthur Andersen & Co. prior to joining First Chicago. The press conference and announce ment of the resignations came two weeks after Mr. Kapnick met with Mr. Heineman and the board at his request to define his duties. The bank had undergone four straight quarters of declining earn ings, with the first quarter of 1980 showing a 44.1% drop from a year ear lier. Much of this was attributed to longer term loans locked in at lower rates at a time when interest rates and cost of money were escalating rapidly in 1979 and early 1980. P ro Fo rm an ce! A bank runs on forms. The efficiency oi a bank’s operations function depends on the availability ol well-designed and wellprinted forms, especially if M1CR coding is involved. This is why it is essential to have a forms supplier who provides quality forms quickly and at moderate cost. The forms professionals at Deluxe offer everything you need in forms. There is a multitude o f standard bank-tested forms to fit practically any situation, or you can have a custom form for a one time charge o f $25 and printing at standard catalog prices. Orders are shipped in 10 days o f receipt, or less, and satisfaction is guaranteed. Put your forms in the hands o f the Pro Formers! Return this reply cou pon for a Forms Catalog, price information and more details, or call toll free. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Send me a Deluxe Forms Catalog and price information. Name. BankAddr City- -State. D€LUX€ CHECK PRINTERS, INC. Forms Division/P.O. Box 43497 St. Paul, Minnesota 55164 1-800-328-9600 10 Bank Promotions IMPACT XIII OLYMPIC y y p f W w in t e r GAMES LAKE PLACID I980 Official Supplier of Electronic Scoreboards to the 1980 Olympic Winter Games m o u n t a in GROVE NATIONAL BANK ROMOTIONS and other changes have been announced by the following banks: P American National Bank & Trust Co., Chicago: The board of directors has elected Hen ry S. Roberts a senior vice presi dent, and Jona than P. Hecht and Anthony A. Scerba vice pres idents. Mr. Rob erts is the direct or of data proces sing, Mr. Hecht is in commercial TIME AND TEMPERATURE DISPLAYS 100% solid state. Custom designed. Attached to your building or free standing. Daktronics has taken the service expense out of message displays with 100% solid state electronics. Our engineers will custom design a display to enhance the architecture of your building and will provide a color drawing and quote at no cost. Call or write for details today. X> DAKTRONICS INC. DAKTRONICS, INC. Box 299 Brookings, SD 57006 Phone 605-692-6145 Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A. A. SCERBA J. P. HECHT loan division T, and Mr. Scerba works in American National Data and Tel-A-Data, the bank’s data pro cessing divisions serving correspond ent banks. Seven second vice presidents were named: Thomas M. Blake, operations development; Caryl J. Burke, Gate way Center facility; Michael E. King, estate administration; Gregory S. Kobus, commercial division W; MichaelT. Manion, operations devel opment; Stephen P. Manus, trust in vestment, and Ronald D. Yenerich, personnel. New officers include: Alan S. Adams, Craig B. Collinson, Eugene R. DeMuro, PaulG. Greig, Nancy D. Halwig and William L. Hartmann, commercial banking officer; Edith M . Adlam and Sybil A. Mundy, operat ions officer; Suzanne G. Baker, Stephen A. Dixon and Arnold F. Stone, trust officer; W. John Carr J r., trust investment officer; Jackson L. Bowden, assistant comptroller; Den nis J. Antolec and Carl W. Johnson, customer service officer, and Mary A. Farrell, personnel officer. Commerce Bank, Kansas City: Fred N. Coulson Jr. has resigned as senior vice presi dent and head of the correspond ent bank depart ment to become president of A c celeration Life Insurance C o., Kansas City. He is succeeded as department head F N COULSON by H.C. Bau man, vice president. Mr. Coulson had previously been an officer of a Kansas City life insurance company before joining Commerce Bank a number of years ago. In his new position he will be developing a closer relationship with financial institutions through credit insurance policies and other financial products. fi A ^ u Continental Illinois Corp., Chi cago: New assignments for several senior officers of Continental Bank have been announced by the parent ^ company’s chairman, Roger E. An derson. v Alfred F. Miossi, executive vice president, will assume the newlycreated position of director of inter national affairs. His responsibilities will include relationships with foreign governments and other organizations involved with international business. Leo C. deGrijs, senior vice presi- * dent and head of the international banking department, assumes world wide responsibility for international banking services reporting to George R. Baker, executive vice president for ■ general banking services. Gail M. Melick, executive vice president in charge of operations and management services, assumes addi tional responsibilities for personal banking services, headed by William , D. Plechaty, senior vice president. Ray F. Myers, executive vice pres- > ident, will become general counsel, a title change from corporate counsel. J. Joseph Anderson, senior vice president for multinational banking services, will assume responsibility for the combined functions of the con troller’s division and systems re search and development. Succeeding Mr. Anderson in multi national services will be John E. Porta, senior vice president and head of the financial services department. Caren L. Reed, senior vice presi- 11 This travelers check is going places. 4074-750-828N CITICORP & ili W IL L PA y TO T HE P P O C » O f ...................... ....... ...... _ ____ _ . _ _ _ _ _ m o t cou«T£As«iNEO s t u m p y ™ iKOiviDu»i «w m sto iiAîu AEAm ABs ihtke upptA i t n c o u m S U 8 i£ C T T O T «t TEBMSON tH S «S V £ «5 £ . **» • “ Twenty Dollars U.S. Currency S P I cotmrc Rs»6MAty« e - must sc a J HÖOOOOOOÖO»: CHAlftMAK. Cf TlCORfmotC 08 U C 0«) NEW YOAK, N.Y., U. 8.A. UD?it ? 5 0 ö 2ÖH# The new Citicorp Travelers Check. And if you’re one of the thousands of institutions who are selling our travelers checks, here’s why you’re going places, too. Money makes money. And now more than ever, our money is helping you make money. Why? Because of our flexible earnings programs. That means Citicorp Travelers Checks can offer you the best profit potential of any travelers check today. Traveling First Class. Your customers can travel in confidence and security around the world. Because Citicorp Travelers Checks are honored worldwide in literally millions of restaurants, hotels, and stores. We’ve got THE*PAK! Citicorp is making it easier for you to make it easier for your customers with THE*PAK—the pre-packaged Citicorp Travelers Checks designed for speed, safety, and simplicity. Lost but not forgotten. When it comes to lost or stolen Citicorp Travelers Checks, it’s hard to find a better refund system than ours. That’s because it’s easy to find us (with thousands and thousands of convenient locations throughout the world). 24 Hour-A-Day, 7 Day-A-Week, 365 Day-A-Year Service. It’s all part of our ’Round-the-Clock Refund ServiceSMto make sure that a lost Citicorp Travelers Check won’t inconvenience your customers for one second. In an emergency, a toll-free call to 800-2212566, or a collect call in New York State to 212-559-6308 will refer your customers to the nearest open Western Union Office or agent in the Continental U.S. Our advertising says it best. Thanks to a multimillion-dollar ad campaign (including full-page ads in newspapers and magazines, and commercials on top TV shows) literally mil lions of people are hearing about Citicorp Travelers Checks like never before. And that means increased sales and profits for you. So, throughout our 76 years, we’ve learned that for you to give your customers the best service possible, we first have to give you the best service possible. Which is why we’ve been so successful for 76 years. And we’re not going to stop. Our travelers check is going places. So hop on, and travel the world with us. (Citicorp Travelers Checks were previously First National City Travelers Checks, which are honored indefinitely.) ) 1980, CITICORP https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRAVELERS CHECKS Northwestern Banker, June, 1980 12 dent, who most recently served in London as head of the multinational activities for Europe, will succeed Mr. Porta in financial services. Edward S. Bottum, senior vice president, will assume responsibility for the metro/midwest division of the commercial banking department. Replacing Mr. Bottum as head of planning, research and development will be Alexander J. Pollock, vice president. Eugene R. Croisant, senior vice president and head of corporate per sonnel services, assumes additional responsibility for the corporate com munications division. Additionally, Mr. Croisant will chair a newly-formed public policy committee, reporting to John H. Per kins, president, that will coordinate the organization’s involvement in public affairs and also will be respons ible for the development, refinement and monitoring of a broad strategic plan for the organization dealing with corporation’s publics, both foreign and domestic. Herbert E. Johnson, senior vice president, will serve as secretary to the public policy committee. Other members of the committee are Messers. Baker, Bottum, Melick, Miossi, Myers and David G. Taylor, executive vice president, bond and money market services. Mr. Anderson said the new assign ments will become effective over the next three months. Federal Reserve Bank of St. Louis: President Lawrence K. Roos has announced the promotion of three officials. William J. Sneed was appointed vice president with responsibility for budgeting, accounting, protection and building-purchasing functions. He joined the bank in 1957 and was formerly an assistant vice president. Named assistant vice president were Jerome J. McGunnigle and Dar win W. Stephens. Mr. McGunnigle, formerly sys tems project director in the data pro cessing department, joined the bank in 1973. He has a bachelors degree in business administration from Wash ington University. ACORN R egisters "A ccepted Sa le Registers b y C le r k s E v e r y w h e r e " /'or in io n n n tio n write Bank thf; aco r n printing g o . Oakland, Iowa Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Stephens, formerly manager of the securities department, joined the bank in 1960. He has a bachelors de gree from St. Louis University. First National Bank in St. Louis: Several staff changes were made re cently including four promotions and three new associates. Named assistant vice president were Richard J. Aberson, interna tional department, and James A. Watson, special industries. First National Bank in St. Louis: Several staff changes were made re cently including four promotions and three new associates. Named assist ant vice presi dent were Rich ard J. Aberson, international de partm ent, and James A. WatR , arfrson J. A. WATSON J. D. SPENCER dustries. Mr. Aberson, most recently in private law practice, is a graduate of Washington University Law School. He had nine years of interna tional banking experience with Citi bank, N.A. and served with banks in Miami. Mr. Watson joined the bank as a credit analyst in 1977 and transferred John D. Spencer has joined the bank as cash management officer. He was formerly with Detroit Bank & Trust Co. Ronald G. Sherod, former ly with Goldman, Sachs, & Co., St. Louis, has joined the bank as a com mercial banking officer in the nation al accounts department. Appointed officers were James C. Nabe and James R. Werner, audit ing, and Stephen P. Szakielo, com mercialbanking. Mr. Nabe joined the bank in 1975, Mr. Werner in 1972 and Mr. Szakielo in 1974. First National Charter Corp., Kansas City, Mo.: James M. Prévost has been promoted to assistant vice president and EDP auditor. He joined Charter in 1978 as assistant auditor-EDP and has been involved in electronic data processing opera tions since 1966. He has a BSBA degree in finance from Rockhurst College and was scheduled to receive an M BA from Rockhurst in the spring. Harris Bank, Chicago: Bruce F. Osborne, vice president, has been named head of the banking division serving companies in the commodity, food processing, meatpacking, grain, livestock and agricultural industries. He joined Harris in 1967 and formerly headed the banking division serving Chicago-based multi-national corpo rations. He has an M BA degree from Butler University, Indianapolis. The Northern Trust Company, Chicago: The board of directors re cently announced several sta ff changes. Andrew M. Jarmel and Raymond C. O’Brien were promoted to the position of vice president in the trust department. Named second vice presidents were: Gregg D. Behrens and Robert P. Griffiths, banking department; Diane R. Stumpf, financial manage ment departm ent; Jennifer K. Cameron, R. Sue Connolly and Von A. Jansma, international depart ment, and Barry G. Hoyt, trust de partment. Kathleen M . Hogan was named an investment officer in the trust depart ment. Conflict Over Fed Interest Rate Regs Federal regulatory agencies have placed a temporary ceiling on the rate of interest that may be paid on 2Vi year variable rate time certificates. At the same time, the Treasury has urged Congress to repeal the interest rate ceiling on savings bonds so the G overnm ent can com pete more effectively for savings. The action placing a temporary ceiling of 12% for savings and loan associations, mutual savings banks and credit unions and 113A% for com mercial banks was effective last month. Compounding of interest is permitted and the new ceiling will re sult in an effective yield for 2lA -year instruments of 12.94 % for thrifts and 12.65% for commercial banks. The 2 V2 -year certificate has been offered since January 1 with a ceiling rate tied to the yield on U . S . Treasury securities of similar maturity. Túne is money. That’s why it pays to sell Am erican Exprès^ Financial Institution M oney Orders (FIMO). N ot only is counter transaction time a breeze, but there’s hardly any back-room paper work. We do it for you, including reconciling, filing, storing, tracing, and refunding. We also print your name next to ours on every money order, then keep you supplied at no cost. You pay us a modest fee for each money order sold, of course. But you decide what to charge your customers, so you control the profit. W hy spend any more time than you have to on a necessary customer service when FIMO is willing to do most of the work for you? M ail the coupon today. If you’re not selling FIMO yet, you’re wasting time. . . and money. Send to: Mr. G il Rosenwald V ice President— Sales Development American Express Company American Express Plaza, N . Y ., N . Y. 10004 NB-6 D on’t waste any time. Send FIM O information to: N am eT itle _ A sso ciatio n . A dd ress-----C it y S ta te . -Zip_ American Express FIMO. The money-making money order. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 14 How M G IC can help Owning a home is part of the American dream. But with high interest rates and inflated home prices, buying it is becoming an American nightmare. The average family cannot afford the average home today (see below). We can help you restore that dream. Our three graduated payment mortgage plans let you qualify more borrowers by lowering the monthly payments during the early years of the loan. Fast Action!™ M ortgage. Our Action! plan is based on a pledged savings account. We provide you with easy-to-use, customized qualifying tables so you can indi vidually structure each loan. You can quickly determine the maximum amount a borrower can spend on a house and the maximum reduction in monthly payments during the initial years. Our free computer analysis will structure the loan payment schedule for you. Or if you want to access Action! on your own computer terminal, we'll show you how to do it, inexpensively. We can also provide you with an Action! software package for use on your own computer. w Flexible FLIP® M ortgage. Annual incom e needed to purchase average hom e. FLIP also uses a pledged accountto reduce payments in the early years of the mortgage. It employs a time sharing computer to analyze esti mated income growth, home cost, down payment and other factors. You simply enter borrower information at your terminal to qualify the borrower and set up a loan payment schedule. 1 , Simple Snap™ M ortgage.* Snap isournewestGPMplan. With Snap, the Simple Negative Amortiza tion Program, part of the mortgage The average American family cannot afford to buy the average home. Average home price (March 1980) is $72,000. $34,265 is the income required for a 30-year, $63,000 mortgage at 13% interest, plus payments for taxes, hazard and mortgage insurance, based on a 28% house payment to income ratio. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- — --------------------------------------------- Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis : 15 keep the dream alive. interest is deferred during CmveeiC\aw&\% C ,( Y | the initial years. The loan balance rises during this \ o y i initial period, then the loan begins to amortize normally. We provide you with six pocket-size tables, based on FHLBB guidelines, to qualify potential home buyers and structure the loan GPM!s can qualify more families, payment schedule. with up to 20% lower initial monthly payments. The Snap mortgage First year payments are based on the same assumptions used for the $72,000 average home. allows you to preselect the maximum LTV of the loan to give you greater control of your To learn more about how loan portfolio. graduated payment mortgages can keep the dream alive for your Looking ahead for customers, send for our free brochures on Action!, FLIP and Snap. m ore ways to help. Or call your MGIC representative to MGIC continues to work with help you get started. lenders to develop other mortgage alternatives for the problems in Mortgage Guaranty I nsurance Corporation NB6 qualifying a new generation of home P.O. Box 488, Milwaukee, Wisconsin 53201 buyers. One solution may be a Please send me information on: □ Action! □ FLIP □ Snap graduated payment mortgage com bined with the new renegotiate rate N a m e----------------------------------------------------------------------------mortgage. Title ------------------------------------------------------------------------------I MGIC has the experience you can Company ----------------------------------------------------------------------i rely on to help you select the GPM Address -------------------------------------------------------------------------program best suited to your specific City/state______________________________ Z ip -------------------j needs. _______________________________________________ J *Snap is available in the states where negative amortization mortgages are authorized. MGIC Working hard to earn your business M ortgage Guaranty Insurance C orporation A M em ber of the M G IC Investment C orporation Family https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 16 Corporate ROMOTION S and other changes have been announced by the following firms: P Douglas-Guardian tailors better inventory loan and floor plan packages for... lending institutions distributors processors manufacturers Bank B uilding C orporation, St. Louis: Eugene E. Palmer has been promoted to con sultant services m anager in the company’s cent ral division in St. Louis. He will be responsible for representing the firm throughout that d iv isio n ’ s five-state area. M r. P a lm er E- E- PALMER joined BBC in 1968 as valuation con sultant for Marshall & Stevens, a subsidiary of BBC. He was then pro moted to vice president of Marshall & Stevens, and in 1979 was made vice president of BBC RESCO. Prior to joining BBC, Mr. Palmer was man ager of real estate for the Phillips Petroleum Company in St. Louis. Banco Financial Corporation, Minneapolis: John H. Olson has been named president and chief operating officer succeeding Clarence A. Adams, who was elected chairman and chief executive officer. Let us sew one up for you. Call John Cressend Exec. Vice President Terry E. Johnson has joined the firm as director of in ternational oper ations, according to E. James Quirk, president. M r. Joh n son takes com plete responsibility for all international operations of the company, includ T. E. JOHNSON ing sales, mar keting, product planning and estab lishment of sales and service offices. He has a degree in transportation from LaSalle University and formerly was international sales manager of the Simplicity division of Allis-Chalmers. Credit Systems, Inc., St. Louis, M o.: James B. Eisenbath has been appointed senior vice president-tech nical services and Robert W. Brewer senior vice president-systems/programming, it was announced recently by John G. Regan, president. CSI is the operating center for the MasterCard and Visa credit card programs in the five-state midwest area of Missouri, Kansas, Iowa, Illinois and western Kentucky. Diebold Incorporated, Canton, Ohio: Daniel Neil Vachalek has been promoted to district manager re sponsible for all the firm’s service activities in eastern Nebraska and southwest Iowa. Timothy G. Smith has joined Diebold as marketing manager-special programs. 504/ 523-5353 C. A. ADAMS J. H. OLSON !| Douglas-Guardian Warehouse Corporation offices in 15 principal cities with Executive Offices in New Orleans, LA P.O. Box 52978, 70130 TOTAL INVENTORY CONTROL NATIONWIDE Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Adams had been president and chief executive officer of the corpora tion since it was organized in 1974 as the commercial finance subsidiary of Northwest Bancorporation. Mr. Olson was most recently senior vice president and manager of Banco’s loan and administration division, a post he had held since 1977. He was previously senior vice president in the commercial loan department at N orthw estern N ational Bank o f Minneapolis. Brandt, Inc., Watertown, Wis.: D. N. VACHALEK T. G. SMITH Mr. Vachalek joined Diebold in 1973 as a service technician in St. Louis. He has studied electronics and industrial management at Southwest Missouri State University and now resides in Lincoln, Neb. Mr. Smith of Kent, Ohio, will be responsible for coordinating the sales/support effort with “ Club” ac- Paint a brighter earnings picture. The N orthern Trust offers a w ide range o f corresp on d en t ban k in g services. Use som e. Use them all. The Northern Trust has a reputation for providing out standing assistance to corre spondent banks. Expertise in areas most crucial to your earn ings built that reputation. Inno vation and the closest personal attention to detail maintain it. Our safekeeping expertise can help make your portfolio easier to manage. Our cash let ter service will help you take better advantage of overnight money markets. Both rank among the fastest, most accu rate systems available any where. The Northern Trust’s prom inent position in primary and secondary bond and money markets can give you and your customers greater selection and ready liquidity. We’ll also pro vide in-depth portfolio analysis and advise you on investment, tax and related asset and liabil ity planning. For planning short-and long-term profitability, The Northern Trust’s consulting services are unique among Chicago banks. We have the capability and experience to find first-hand answers to any ques tions about banking you may have. ssO S#*|J|I1 St A s* it. n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You’ll find Northern Trust calling officers are trained specialists in correspondent serv ices and have the authority to act fast. If you’d like to profit from our experience, contact Curtis E. Skinner, Senior Vice President, The Northern Trust, 50 South La Salle Street, Chicago, Illinois 60675. Telephone (312) 630-6000. The more you want your bank to do, the more you need The Northern. The Northern Trust 18 counts in the automatic banking divi sion. Formerly he was a manager/ consultant with Systems and Com puter Technology Corp., Cleveland, and has an MBA degree from Kent State University. Tom Hagan & Associates, a bank personnel firm, has opened an office in the Minneapolis-St. Paul area with Bonnie Brooks as manager. The Twin Cities office provides clerical placem ents and a bonded temporary help service in that area as well as junior and senior executive officers in the noth central states. Linda Blue Smith, president of Tom Hagan & Associates of Kansas City, has assumed additional duties as ch ief execu tive officer of the Kansas City operation. “ The additional office will help us to provide a broader base of both applicants and banks from which to work. Our mailing list now covers 20 states from Canada to the Gulf of Mexico in Central United States,” Tom H agan, board chairman in Kansas City, stated. Financial Institution Service [Banclu b], N ashville, T enn.: L om e N ew house, regional director, has moved his regional office to Omaha r SINGLE INTEREST INSURANCE For Installm ent Loans BLANKET SINGLE INTEREST INDIVIDUAL SINGLE INTEREST PROGRAMS • Automated • Manual v J PROTECT YOUR LOANS AGAINST THOSE PHYSICAL DAMAGE LOSSES. CONTACT US ABOUT A PROGRAM FOR YOUR BANK. call or write: T K 7 g .d . v a n W AGENEN CO. 1678 Northwestern Bank Bldg. Minneapolis, MN 55402 (612) 333-2261 v ____________ _ Z ___________ J Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L. R. NEWHOUSE S. CARRON from Des Moines. Iowa, Nebraska, Kansas and Missouri will be under his ju risd iction . His address is 9122 Tim berline D rive, Omaha, Nebr. 68152. Steve Carron will work as associate director out of Cedar Rapids. Frank Wallace, a former bank president from Louisiana and Texas, will cover the Missouri area from Columbia, and Gary Pierce will cover Kansas from Manhattan. Mel Sommers will continue as regional director w orking out of M inneapolis. M innesota, South Dakota, North Dakota, Wisconsin and now Illinois are under his ju risd iction . H om er A ldrich of Decatur serves as an associate for Illinois. The com pany held its national convention in Orlando last month, and honored Mel Sommers as number one sales executive. Financial Insurance Service, Inc., Schaum burg, 111.: J. R. (D ick) Morran, a bank insurance specialist for 28 years, has been appointed vice president for national sales. P r e v io u s ly a vice president of Insurance P ro grammers, Inc., and underwriting vice president in charge for Scar borough & Co., Mr. M orran is credited in the industry for de veloping many F- M °RRAN new insurance policy con cepts, including bankers’ data processing transit and extra expense insurance, bankers’ special bond and electronic terminal insurance. In addition to his sales responsibil ities at Financial Insurance Service, Mr. Morran will be in charge of new product development. Mr. Morran is a former director of the Association of Lloyds Brokers of Illinois and chairman of its commit tee on banks. W alter E. Heller International Corporation, Chicago: The appoint ments of Robert H. Purcell to vice president-corporate planning and Marsha Neece to assistant vice presi dent-director of taxes were announc ed recently. Mr. Purcell, 36, an attorney and certified public accountant, advanced from tax counsel for the corporation. Prior to joining Heller in 1977, he was affiliated with Ward Foods, Inc., and Arthur Andersen & Company. Mr. Purcell graduated from the University of Nebraska with a B.S. in business adm inistration. He also earned his J. D. from the University of Nebraska. Mrs. Neece, 36, a certified public accountant, moves up to the senior tax position at Heller International. Previously, she was director of taxes at its com m ercial finance and factorin g subsidiary, W alter E. Heller & Company. She has been with Heller since 1978. Before joining Heller, Mrs. Neece was associated with Motorola, Inc., and with the firms of Price W aterhouse & Co. and D eloitte, Haskins & Sells. She is an honors graduate of the U niversity o f Illin ois. MorAmerica Capital Corporation, Cedar Rapids: Directors have elected Donald K. Taylor as regional vice president. He will manage the Cedar Rapids regional office and be responsible for developin g and monitoring venture capital invest ments in Iowa, Minnesota and parts of Illinois. Mr. T aylor join ed M orA m erica Capital January 2, 1980, after seven years with Northwestern National Life Insurance Co, in the field of corporate private placement invest ments. MorAmerica Capital is a federally licensed Small Business Investment Com pany with regional offices in Milwaukee, Kansas City, St. Louis and Cedar Rapids. It is a wholly owned subsidiary of M orA m erica Financial Corporation. N orth Central Life Insurance Com pany, St. Paul: G regg M. Schneider, FSA, has been advanced to assistant vice president and actuary. He will head the actuarial department and expand work on new product development. Before joining North Central as associate actuary in „ 21 Is adding $5 MILLION toyour advertising budget worth 5 MINUTES o f your time? If you are a member of the American Bankers Association, you are already paying for the na tional advertising campaign. So don’t waste it. All you have to do to benefit from the ABA’s $5 m illion “We’ve Got The Answers” national advertising program is fill in the reply card and mail it. You’ll receive your order of A FULL SERVICE BANK® decals for FREE. Then put the decals on your bank doors, drivein windows and use the symbol in your adver tising. This is the only way your bank can ben efit from the joint banking com m unity effort to succeed in our m ore com petitive environ ment. The A FULL SERVICE BANK symbol on your bank distinguishes it from the growing bank-like com petition: SiCL’s, savings banks and credit unions that covetyour deposit base. Display the symbol. It tells people you provide convenient, professional, one-stop banking. But most o f all, it tells your customers, “We’ve Got The Answers” So take 5 minutes to send for your decals; it’s like adding $5 m illion to your advertising budget. For free decals, fill out the reply card; or call Gwen Strickland, Media Coordinator, at (202) 467-4187. JUST FILL O UT THIS C A R D TO BENEFIT FROM THE N ATIO N AL A B A ADVERTISING EFFORT. A M E R IC A S FU LL SER V IC E B A N K E R S © 1980 American Bankers Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 22 December, 1978, Mr. Schneider was with Sentry Life Insurance Co. of Stevens Point, Wis. Wfe don't just build buildings. We build businesses. Anybody can build a building. When you deal with Bank Building Corporation, the actual construction is the last o f a series o f services, whose purpose is to help your business get oetter. We believe your building should work for you. By being in the right place. By keeping maintenance costs down. By contributing to efficient operation o f your business. And by meeting your requirements for years to come. That’s why 7,000 financial institutions all across the country have selected Bank Building Corporation. Because when it’s your business, there’s a lot more involved than just a building. Bank Building Corporation We’ll build you a business. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis United Guaranty Residential In surance Co., Bettendorf, Iowa: W. H. Gillison, president, has announc ed that Howard Turner and Dan Kester have been named to The Pres ident’s Club for 1979. Mr. Turner is the regional representative for east ern Iowa and Mr. Kester is regional representative for metropolitan Min neapolis. Membership in the club is awarded to the individual in each of the com pany’s 12 operating regions who adds the most new users during the year. Mark Willes Resigns As 9th Fed President Mark H. Willes is resigning effec tive June 30 as president of the Federal Reserve Bank of Minne apolis to accept appointment as e x e cu tiv e vice p r e s id e n t and ch ie f fin a n cia l M H WILLES officer at General Mills Corp. He will also be a member of that firm’s management policy com mittee. The 38-year-old executive has been the youngest of the 12 Fed Bank presi dents. After receiving his PhD in eco nomics and finance from Columbia University in 1967 he joined the Federal Reserve Bank in Philadelphia as a consulting economist. Four years later, after having served as vice presi dent and director of research, he was named first vice president of the Fed Bank in Philadelphia at the age of 30. He became president of the Minne apolis Fed in April, 1977, and quickly became personally acquainted with bankers throughout the 9th Fed Dis trict, which embraces Minnesota, the Dakotas, Montana, parts of Wisconsin and the Upper Peninsula of Michigan. He was in great demand as a speaker at bank conventions because of his common-sense approach to the na tion’s financial troubles. He has been a strong supporter of firm monetary policy to control inflation. Thomas E. Gainor, first vice presi dent of the Minneapolis Fed, has been designated to act as president of the bank until a successor has been named. 23 44W e’ll give you Custody Service you can believe in , at a price you won’t believe.” Gregory Culp, Group Head, Securities Processing. “ First Chicago’ s Custody Service is one o f the lowest priced in Chicago or New York. “ But accuracy is what it5s all about. And First Chicago has de veloped an on-line system of com puterized checks and manual cross-checks that makes reporting errors almost impossible. “ We get it right. And you get it fast. “ We give you quarterly reports automatically. If you need informa tion in the interim, we can generate a report and have it in the mail within 24 hours. “ If you need it faster than that, we can tell you what you want to know instantly by phone. “ And we can back-date reports up to 90 days. “ First Chicago’ s sub-accounting system can handle your customer, trust and portfolio accounts with out intermingling. “ And we hold securities in New York as well as Chicago. “ If your Custody Service isn’ t giving you all this, find out more about ours. Phone for a free brochure. “ Better yet, let us do a free analysis o f your custody needs. “ Call your First Chicago Rela tionship or Bond Officer today. “Or me, Greg Culp, (312) 732-5633. “ We’ ll show you some speed and accuracy for openers.” Ask Chicago’s Bank. FIRST CHICAGO The First National Bank of Chicago Chicago: John Bailamme, 312/732-4131 • Atlanta: Norman McClave III, 404/892-0966 • Baltimore: Robert E. Probasco, 301/547-8700 Boston: Robert G. Barrett, 617/247-4040 • Cleveland: Earle C. Peterson, 216/781-0900 • Dallas: James A. Edwards, 214/742-2151 Houston: Grant R. Essex, 713/658-1100 • Los Angeles: Thomas E. Flowers, 213/628-0234 • New York: Donald Glickman, 212/751-3910 San Francisco: William R. Lyman, 415/788-4311 © 1980 T he First National Bank o f Chicago. Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 24 SH R EW D B U Y ER S AU TO M ATE W ITH A U TO M A TIC COIN W RA PPERS Book Commemorates Banco’s First 50 Years The story of how a bank holding company survived the boom and bust cycles that brought both financial ruin and prosperity to the Northern Plains states is chronicled in a 71-page book published recently by Northwest Bancorporation, Minneapolis. The book, Banco At Fifty 1929-1979, was written by Harold Chucker, noted economic writer and associate editor of the Minneapolis Star. Mr. Chucker de scribes Banco’s precarious beginning just 10 months ahead of the stock mar ket crash. Soon after, deposits at rural banks, which the new bank holding company had hoped to stabilize, fell sharply, and within six years more than 2,500 banks located in Banco’s region went out of business or were absorbed by other banks. But not one Banco failed. United Guaranty Corp. Reports Earnings AUTOM ATIC COIN W R A P P E R S ■ Precision made on special machines from finest quality materials. ■ ’ Patented Red Bordered Windows automatically indicate the total amount and denomination of contents. ■ Diameter of coin automatically positions value of contents in red window openings. ■ Save time 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 "S te e l-S tro n g " 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 / H A N N IB A L, M IS S O U R I, DEPT. N PLEASE SEND FREE DETAILS ON "STEEL-STRONG" COIN HANDLING PRODUCTS TO: Name _________________ ___ __________________________________________________ Title_ Firm ___________________ ___________________________________________________________________ A ddress______________________ _________________________________________________________ City____________________ __ ______________________________________________________ State. AROUND MONEY Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FI NEST IS "STEEL-STRONG" United Guar anty Corporation, the Greensboro, N.C. mortgage ins u r e r , h as re ported first quar ter earnings. Before securi ties transactions, quarterly income a m o u n te d to W. L. HEMPHILL $3,645,000, or 750 a share, compared with income of $3,548,000, or 730 a share, in 1979’s first quarter. Reporting to directors, President and CEO William L. Hemphill said, "First quarter operations were in line with our expectations. Compared with 1979, new business premiums were down, both renewal premiums and in vestment income were up, and net in come from operations rose modestly.” Deluxe Check Shows Gains Deluxe Check Printers, Incorpor ated reports sales for the first quarter of 1980 were $100,559,264, a new rec ord for a three-month period and up 20.3% over the first quarter of 1979 when sales were $83,565,829. Net income for the period was $9,271,907, up 25.4% from last year’s earnings of $7,393,404. Net income per share for the quarter was 810 com pared to 650 in 1979. The report was announced by Eugene R. Olson, presi dent. 25 Citicorp announces the formation of CORRESPONDENT RESOURCES, INC. A complete subsidiary designed to give independent banks the most advanced service in the industry. You may have known us as the Independent Correspondent Banks Division of Citibank’s Financial & Infor mation Services Group. No more. We are now a full-fledged subsidi ary of Citicorp—and we are determined to be one of its most successful. How? By sharing with you, the inde pendent banker, Citicorp’s complete range of capital, management and technology resources. Our manage ment is determined to build an ongoing relationship by first understanding your business and your objectives— then by providing you with prod ucts and services tailored to meet your needs. CRI will bring to your service some of the most able banking and business minds available today. Coordinating our services in the Northwest is CRTs Rela tionship Manager/Assistant Vice President Joseph A. McChristian, Jr. He’s a phone call away at 212-559-6305. Among the services CRI offers your bank is a marketing communications program, “ Con sumer Views,” which you can use to build customer loyalty. It can be yours for only pennies a copy, but it can help you maintain your bank’s image as the source of timely advice in managing finances. Call Joe McChristian to see some copies. Correspondent Resources, Inc. A service subsidiary of Citicorp One Citicorp Center 153 E. 53rd Street New York, N.Y. 10043 Telephone (212) 559-6305 CITICORP O https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 26 At Dawson Hail Insurance it is not unusual for our people to give that little extra bit of time or effort in order to do a job right. It’s nice to know that in this day of automation some things are still given that good ole “Personal Touch.” After all . . . that’s exactly how we at Dawsons have been doing business for 63 years. Whether it’s issuing a policy, adjusting a loss or paying a claim . . . Our people make the difference! o V o° HAIL ° ° INSURANCE O o O We welcome Dennis and Norm to our staff. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1\ M 20 SOUTH EIGHT STREET BOX 1820 FARGO, ND 58107 j 27 F o r e q u it y -s h y c u s to m e rs : Examine asset-based financing ALF of 1980 has passed and inflation has continued to be a pressing problem. No one has felt its sting more than the small businessman. He has discovered that even though sales may continue to be strong, he must sell more of his goods and services or fall behind inflation. This has created a situation in which many small businessmen must run in order to keep up. However, keeping up with inflation often comes at the cost of reducing the quality of small business’ balance sheet. It means greater dollar investment in their receiv ables and inventories. This, in turn, creates a situation in which assets and debt build at a faster pace than equity, thereby distorting traditional leverage ratios. This reduction in the quality of corporate balance sheets has created an environment where the customary, unsecured financing is not totally adequate to meet the needs of small- and medium-sized businesses. This fi nancing dilemma is heightened by the fact that the equity market is generally not an acceptable or feasible alternative. H Asset-Based Financing However, more and more concerns have found there is an avenue open in their search for working capital, and that avenue is asset-based financing. Loans secured by assets have many benefits. Since tangible assets are used as security, more funds are available to the borrow er than otherwise would be possible. These available funds give small businesses a greater flexibility to take advantage of the many opportunities that require capital. This flexibility is critical to the ability of small companies to grow and prosper. For the lender, this type of loan arrangement involves much less risk, making a secured loan a much more attractive situation. Because of the increased interest in, and demand for, asset-based financing, small- and medium-sized banks must find ways to meet this growing demand. If not, they stand to lose not only the financing business, but □ THE AUTHOR—Gregory J. Tamborello, assistant vice president of A ssociates Com m ercial C orpo ratio n ’s business loan division, is re sponsible for maintaining banking relations in Ohio, Indiana, Illinois, Wisconsin, Minnesota, North Dakota, South Dakota, Nebraska, Kansas, Missouri and Iowa. Mr. Tamborello joined ACC in 1975, with six years com mercial finance experience, acquired after graduating with a bachelor of science degree in finance from North ern Illinois University in DeKalb. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Written Especially for T he N orthwestern B anker By GREGORY J. TAMBORELLO Assistant Vice President Associates Commercial Corporation Chicago, 111. also jeopardize the demand deposits, trust and retire ment fund management business that often is associated with borrowing relationships. Special Expertise Required There are a number of alternatives available to these banks for satisfying the demand for asset-based lending services. The most obvious of these is developing an inhouse capability, which requires a considerable invest ment of time and capital. Asset-based financing takes special expertise that is different from the techniques used in making unsecured loans or even certain traditional bank-secured loans where the lender has relied on a financial statement and has done little direct supervision. The principal differ ence is the importance of understanding the assets which secure the given loan. A secured lender must be able to expertly evaluate collateral before making a loan and then monitor the collateral to stay apprised of liquid ation values throughout the term of the loan. Secured lending also requires a more specialized knowledge of the industry in which the borrower oper ates. There are certain inherent risks involved in some industries that are best understood by experienced secured lenders. Finally, from a legal standpoint, asset-based financ ing requires knowledge of various filing requirements and procedures to comply properly with governing laws. Even though the Uniform Commercial Code does exist in all states except Louisana, lenders must be familiar with the filing procedures and case laws governing secured financing in each state in which they make loans. For many banks, developing an in-house, asset-based lending capability would require an unwarranted com mitment. All banks must seriously ask if the market area they serve justifies an expensive in-house capabil ity. Commercial Finance Alternative For those banks that choose not to make the commit ment, there is an alternative that is rapidly gaining acceptance—participation with independent commer cial finance companies. This participation relationship provides the bank’s customers access to all the experASSET-BASED FINANCING . . . (Turn to page 96, please) Northwestern Banker, June, 1980 28 Financial statements: By ROBERT D. M ARAM Vice President Lincoln National Bank Chicago, 111. OST good analysts are aware that ratios and relat ionships such as the current ratio and the debt to worth can be valuable tools in trend analysis, especially in viewing these ratios with those of comparable firms. While certain ratios and relationships are valuable we should not lose sight of the fact that they are by design quantitative in nature and, that if a rational credit de cision is to be made, the assets or net worth from which our repayment is ultimately derived must be analyzed as to quality and liquidity as well as to quantity. The collection of receivables is based not as much as on the M Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis amount of the asset as on the ability of our borrower’s customers to pay their bills and the sale of inventory de pends upon the composition and marketability of this inventory rather than the amount shown on the balance sheet. Although it is difficult to determine factors such as physical deterioration, market price fluctuations and obsolescence, a serious attempt should be made by the lender to determine a reasonable value of the assets at hand. Examine Assets and Liabilities After adjusting the numbers to reflect the qualitative value of the items involved, the nature of the assets and liabilities should be examined in order to determine whether the resources at hand are sufficient to pay the bills as they become due. Case in point: Is there suffi cient working capital available to meet current obliga tions? In order to determine the sufficiency of working capital one must understand the basic difference be tween its components; i.e. current assets and current liabilities. Current assets are sequential in nature and move in time steps ultimately into cash as the final step from production (inventory), sales (receivables) and finally and hopefully collection (conversion into cash). The time sequence from beginning to end depends upon 29 “It is essential that we understand the causes for the changes that have occurred.” the manufacturing process, the success of the sales effort and, finally, the time it takes to collect from the customer. Current liabilities, however, tend to be of a simultaneous nature as many of the firm’s obligations tend to be due concurrently. The sufficiency of working capital and the amount of a bank credit line which the company actually needs de pend in part upon the time sequence of its working assets as measured against the demands of its trade and other creditors. Ratio Analysis Entering the area of ratio analysis, in order to more fully understand what is really happening to a company and be able to identify the basic problems rather than the symptoms, it is imperative that the financial analyst appreciate the difference between causal ratios (ratios that measure and identify causes) and ratios that measure effect. It is the changes in the causal ratios which take us to the jugular, to the heart of the matter. Let us examine seven commonly used ratios. Three of these—cost of sales to inventory, fixed assets to net worth (this ratio can be both causal and effect), and the collection period—tend to identify and measure causes while the other four, namely the current and quick ratios, debt to net worth and profit to net worth, tend to measure the effect of these other causal ratios. Let us take a few moments and observe how these ratios operate. 1. The collection period, a causal ratio, affects both the current and quick ratios in the following manner: • Slowness in receivable collections may result in additions to the bad debt allowance which reduces net receivables. • Slowness in receivable collections tends to slow pay ments to trade creditors and reduces working capital to the extent that the firm loses discounts that it could have taken if it had the funds. If the firm increases its bank borrowings in order to pay creditors it incurs inter est charges which must be paid. • The collection period affects the debt to worth, profit to worth, and fixed assets to worth because bad debt expense and interest expense have negative effects on profit and worth. 2. Cost of sales to inventory, another causal ratio, affects the current ratio since a low turnover rate due to abnormally high inventory may lead to mark-down of inventory due to physical deterioration, price fluctu ations and obsolescence. • In addition, due to the slow inventory turnover, payments to trade creditors may slow down and bank borrowings may have to be made in order to pay credit ors. The interest on the borrowed funds reduces working capital. • Debt to worth, profit to worth, and fixed assets to worth are affected since interest expense on borrowed funds and inventory write-down adversely affect profit and net worth. 3. Fixed assets to net worth, acting as a causal ratio, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis affects the current and quick ratios in the following manner: • Cash payments for fixed assets reduces current assets. • Short-term liability incurred for purchase of fixed assets increases current liabilities. • If long-term debt is incurred, the current portion of the debt increases current liabilities. • The debt to worth ratio is affected by total debt in creasing if fixed assets are financed: depreciation charge on purchased fixed assets and interest on money borrow ed have adverse effects on net worth. • Profit to worth is affected by the fixed asset to worth ratio since interest and depreciation charges have ad verse effects on both profits and net worth. Trend Analysis In order to determine the financial condition of a com pany and its ability to service its debt, it is essential that we understand the causes for the changes that have occurred rather than limit our examination to the symp tomatic effects of these causes. Trend analysis can be quite revealing if we keep this point in mind. The trend of earnings and that of the financial condition of a firm is probably more revealing than its financial condition at a given moment. When performing trend analysis we often neglect the important relationship between the income statement and the balance sheet. A systematic method of trend analysis must include the following: I. Determine what parts of the balance sheet bene fite d or suffered from the increase or decrease in profits and/or sales. How much of the gain or loss is reflected: a) In working capital? b) In fixed assets? c) In an increase or decrease in non-current liabil ities? II. Have these changes in the income statement strengthened or weakened the firm’s financial position? a) Rate of inventory turnover. b) Rate of receivable turnover. c) Relation of inventory to working capital. d) Relation of debt to worth. e) Relation of fixed assets to net worth. I ll, If trends are unfavorable, attempt to determine: a) Whether the unfavorable trend in earnings is due to sales, production or merchandising practices. b) Why inventory is higher in relation to sales. c) If collections are slowing. Why? d) If the fixed asset expansion program has been justified by higher sales and earnings. These are some of the questions that can be answered by good financial analysis. Unfavorable trends do not at times show pronounced FINANCIAL STATEMENTS . . . (Turn to page 34, please) Northwestern Banker, June. 1980 30 Inflation Squeezes Bank Stocks EPORTED bank profits have been in a strongly rising trend. The rate of return on equity, at about 14%, is close to a post-World-War-II high. Bankers are congratulating themselves on their fine performance, and the frowns that bank regulators used to wear when the bank loan losses were escalating some years back have changed back to deadpan. Only the stock market is striking a sour note. The growth of bank earnings has exceeded that of most corporations. Nevertheless, the market prices the stocks of many large American banks at four to six times earnings, well below the average for industrials. Quite a few large banks are selling at sharp discounts from book value. Does the market see some thing that the bankers and the regulators do not see? R The Stock Market’s View The market could be skeptical of the condition of banks. Banks have had their share of troubles in the past, as with Real Estate Investment Trusts (REITs) and tanker loans. Today, concern might stem, for in stance, from bank involvement in loans to developing countries. But past bad loans have on the whole been worked off quite satisfactorily. Present loss experience in international lending has been substantially better than at home. While concern about the condition of the banks was justified at the time of the Franklin and Herstatt failures in 1974, there is no obvious reason for it now. The market could be skeptical also of the quality of https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis bank management. However, with the high regard that I have for the many bankers I have been privileged to meet, I can see no reason why their performance, as a group, should be evaluated by the market less favorably than the performance of industrial executives. So, there must be some other reason. Bankers’ Doubts Inflation might account for the low esteem in which banks are held by the stock market. On the surface, it could be argued that inflation must have been good for banks. Their reported assets have risen faster during in flation than during ordinary times. After all, the essence of inflation is an increase in credit and money, including bank credit and bank deposits. Interest rates are high, and many people believe that bankers profit from high interest rates. Of course, the banks lose something on their assets as money depreciates. But don’t they gain it back from the depreciation of their liabilities? So it looks as if inflation is just money-in-money-out, and of no concern to the banker. That seems to be the view of the casual observer. That inflation doesn’t hurt banks seems to be argued on still other grounds. Bankers are blissfully free from the accounting problems of capital replacement and in ventory that trouble industrial executives during in flation. They know that inflation distorts corporate accounting by generating fictitious profits from inven tories and underdepreciation. Banks, having next to no 31 inventory or fixed assets, are immune to these pitfalls. So why should inflation hurt them? Banks Are Net Creditors What some people seem to overlook is that bankers are net creditors. Once we focus on that fact, suspicion is bound to mount that it is indeed inflation that is ailing the banks. The banks are creditors, and creditors are born losers in inflation. Their paper assets are larger than their liabilities. Their capital, therefore, except for what little real estate and equipment they have, is also invested in paper assets. These paper assets depreciate with inflation. The bank’s capital depreciates with them. The banks add to their capital each year, of course, through retentions of profits. Recently, these retentions have amounted to some 8-10 % of equity, after dividends of about 4-5% of book value. If these retentions exceed the rate of inflation, the book value of banks will rise in constant dollars. From 1972 to 1979, book value rose from $55 billion (equity and reserves) to $99 billion. Part of this 80% increase, although only a small part, is due to new stock issues and the like, but the great bulk is due to retention of profit. But during the same period the price level rose 74%. Thus, almost the entire increase in book value, and certainly all the retentions, were swal lowed up by inflation. Remarks by HENRY C. WALLICH Member, Board of Governors Federal Reserve System Washington, D.C. . . . delivered at the recent Accounting and Finance Conference of Bank Administration Institute. Bankers sometime point out that the same calculation can be made with respect to the book value of any in dustrial corporation. Since inventories and fixed assets are carried at cost, book value rises only with retentions unless there are new stock issues. So why single out banks for this calculation? Nobody worries much about the book value of corporations. Earning power is what counts. Why should banks be any different? Bank Book Value Means Something The answer is that the book value of an industrial cor poration and of a bank are indeed very different creatures. The present value of the fixed assets and in ventories of a corporation can fluctuate widely. Carrying these assets on the books at historical cost is simply an accounting convention. Particularly with inflation, the market value of these “ hard” assets, or at least their replacement cost, is bound to rise. When the price level has doubled or quadrupled, as it has in the United States since 1969 and 1945, respectively, the book value of fixed assets has indeed become meaningless. A bank is very different. Its assets are primarily monetary. Its book value, therefore, is a fairly meaning ful description of its value as an enterprise. Of course, the bank’s market value may fluctuate above or below book value. If earnings provide a high return on book, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the market will pay more than book. For poor earnings, it will pay less, as it is doing today for a number of larger banks. Unfriendly critics have been heard to say that such banks are worth more dead than alive, i.e., they could be liquidated at a profit above their market value. Market value can and does differ from liquidating or book value, because nobody thinks of liquidating banks. But book value, nevertheless, is a much more meaning ful indicator of underlying value for a bank than it is in the case of a corporation. That is why it makes some sense to measure a bank’s book value in terms of constant dollars. If over a period of years it has not changed significantly, this means that all the additions to capital, from retentions and other wise, have just been sufficient to preserve its real value. In other words, the loss to bank capital from inflation has been about equal to the retentions. How to Calculate Inflation Loss This very summary calculation can be made a little more sophisticated by allowing for the fact that banks usually own their buildings and perhaps some other real estate and equipment. For a large bank, these hard assets typically amount to about 1 % of total assets or a little more than one-fifth of net worth. During inflation, the market value or at least the replacement cost of hard assets rises. The exact change may be difficult to measure, and in any case will vary among banks. But a not unreasonable approximation suggests that they rise with the general price level. One can reasonably argue, therefore, that the part of the bank’s net worth that is matched by hard assets is in some degree protected against inflation. This means that about one-fifth of net worth of the average large bank is protected against inflation, while about four-fifths are exposed. Some banks may be able to improve on these relationships by making other “ non-monetary investments.” Given these premises, it is difficult to avoid making the following rough calculation. If inflation is 10 %, and if a bank’s net worth is protected only to the extent of one-fifth against inflation, the inflation loss on the real value of the bank’s equity amounts to 8% of net worth. This loss needs to be deducted from the bank’s rate of return on net worth. This, as noted before, recently has been about 14% of net worth. Therefore, about 6% is what is left after this inflation adjustment. If the bank paid a dividend of about one-third of its earnings, i.e., 5% on capital, it was paying out, in fact, most of its real earnings. The 9% that it thought it was adding to net worth was almost all absorbed by inflation. The Painful Truth Many bankers may have been able to ignore these un pleasant implications. The stock market has not. The stock market seems clearly to have observed the damage that inflation is doing to banks, and has remained quite unimpressed by the seemingly glowing earnings reports. I need hardly tell you that if I were a banker, I, too, would prefer not to take account of these unpleasant matters. It is discouraging, having worked hard, to find that the results, inflation-adjusted, are poor. It is even harder if my pay or bonus were to be based on inflationadjusted earnings. I would much prefer to believe that the damage that the stockholder had suffered, in terms of the price of his stock, was due to the vagaries of the Northwestern Banker. June. 1980 32 “Inflation loss on the bank’s net monetary asset position is very real.” stock market than to anything I had done or failed to do. Efforts to ignore the impact of inflation and reject the adjustment of bank statements and particularly earn ings for inflation have, of course, a very respectable ancestry. In 1977, the Inter-Association Committee on Bank Accounting (IACBA) undertook a massive study of inflation accounting for banks, employing the re search of three separate advisory groups (Arthur D. Little; Peat, Marwick, Mitchell & Co., and Robert Morris Associates). The IACBA arrived at the con clusion that there was no need for any changes in bank accounting to reflect inflation. Characteristic of this view is the following quote from one of the study papers (Peat, Marwick, Mitchell & Co., page 3): “ General pur chasing power reporting is neither necessary nor desir able in the financial statements or as supplemental data. The capital maintenance concept appropriate for bank accounting and reporting is financial capital in units of money.” If this is accountants’ language to say that a bank is maintaining its capital if, after years of inflation, the equity account shows an unchanged number of dollars, some bankers and some accountants will one day have an unhappy awakening. Enter FASB More recently, however, the Financial Accounting Standards Board (FASB) added to its accounting stand ards a requirement that large banks make a supplement ary statement in their annual reports showing selected financial data adjusted for the effects of changing prices. This mandate applies to about 150 bank holding com panies and 20 savings and loans or savings and loan holding companies with assets over $1 billion. Annual statements now becoming available contain this inform ation, usually somewhere in the back pages and some times accompanied by cautionary language explaining that it does not mean anything. The classical comment along these lines that sticks in my mind is: “ We believe these numbers are not relevant in managing the business of the corporation.” FASB’s principal inflation adjustment technique applicable to banks, known as constant-dollar account ing, does in a sophisticated way what my simple rules of thumb employed at the outset have attempted to do. They take account of the net creditor position of the bank, known as the net monetary assets position, and arrive at a broad measure of the inflation loss by apply ing the consumer price index to this magnitude. As noted, the net monetary asset position broadly speaking is equal to the bank’s capital minus hard assets (and also minus certain financial assets treated as the equivalent of hard assets). A second and much smaller adjustment is added, in the form of an upward revaluation of the small volume of a bank’s non-monetary assets—build Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ing, equipment, and a few others—and an upward re statement of depreciation on the revalued non-monetary assets. The net effect of these adjustments is that allow ance for the hard assets improves the bank’s profit picture but that this improvement is far outweighed by the relatively large loss on the net monetary asset position and the—unusally minute—increase in depreci ation charges. Why Are These Techniques Rejected? What are the reasons that so many of the critics and mandated practitioners give for their apparent rejection of these techniques, other, of course, than that they do not like the results? One is that the techniques were developed for industrial corporations with heavy fixed assets and/or inventories. Many, though not all, such corporations are net debtors. That is, financial (mone tary) assets are less than their debt; their (non-monetary) fixed assets and inventory, therefore, are larger than their net worth. Applying the inflation adjustment to this negative net monetary asset position, therefore, produces a gain from inflation. The adjustments made to fixed assets, by raising depreciation, and to inventories, by putting them, in effect, on a LIFO basis, reduce profits. Which of the two adjustm ents outw eighs the other varies from corporation to corporation, in accordance with the degree of leverage. Heavily leveraged corporations usually show an inflation gain from this method. Bank accountants seem to be of the opinion that this technique is appropriate for corporations but inappro priate for banks. Banks lack sizable non-monetary assets and, therefore, tend to be net creditors. In my opinion, the opposite is correct. I have grave doubts about the appropriateness of considering the gain from a negative net monetary asset position, i.e., from being a debtor, as a true gain worthy of being included in the income account. It produces no cash flow, cannot be used to pay taxes or dividends, and is at best a factor enhancing the corporation’s market value in a very broad sense. For a bank, these considerations are irrelevant. There are no significant non-monetary assets to revalue and depreciate. But the inflation loss on the bank’s net monetary asset position is very real. A bank stockholder is very much like a stockholder in a bond fund or money market mutual fund, except that he is heavily leveraged. The latter knows that the underlying assets are losing their purchasing power and that he can preserve the pur chasing power of his own investment only if these assets produce a rate of return in excess of the rate of inflation. The same is true of the bank stockholder: Unless the return on equity exceeds the rate of inflation—with some allowance for hard assets—his investment is losing pur chasing power. That is why the supplementary inflationadjusted statements for banks make a good deal of sense. Some Concluding Questions These conclusions, if they are valid, pose a vast range of questions, running from the value of bank stocks to regulatory policy with respect to bank capital and bank expansion and to the financing of our economy. Here I shall deal only with the narrowest implications concern ing bank profits. 1. One very obvious implication about which the banks unfortunately are unable to do anything relates to 33 TheMosler Advantage: Engineering people w ho treat security like a science. A t Mosler, our engineers have one major objective in mind: To guarantee Mosler quality in every product we make. So our research people constantly develop new techniques to improve existing products and to make new products perform even better. Our engineers rigorously test and retest the performance o f all Mosler products. Many beyond even expected endurance. With high' temperature fire tests. Brutal burglary^resistant attack tests. Exhaustive life'cycle tests. In fact, our vault doors have successfully withstood atomic blasts during unique tests at Yucca Flats, Nevada. A n d Mosler design engineers not only react to your needs. They anticipate them. That’s why true engineering feats like the massive radiation doors at Oak Ridge, Tennessee, and the first pneumatic tube drive'Up systems came from the minds and hands o f Mosler engineers. Security products that are tw ice as strong as steel. Nowhere will you find stronger evidence o f Mosler quality engb neering than in our new family o f U.L.'listed Am erican'C em tury™ Vault Doors. T hey’re constructed o f SUPERLOY®, Mosler’s advanced proprietary material which offers twice the attack resistance o f steel. A nd three times that o f reinforced concrete. Best o f all, these Mosler vault doors are engineered to give you maximum protection at a competitive price. Put The Mosler Advantage to work for you. Send for our free American'Century Vault Door literature by writing Mosler, Dept. A C '8 0 , 1561 Grand Blvd., Hamilton, O hio 45012. Q u ality People. Q u ality Products. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mosler An American-Standard Company H am ilton. O hio 45012 Northwestern Banker, June, 7980 34 “Banks pay out more in taxes than the legislator, unaware of inflation, intended them to pay.” taxes. If bank profits adjusted for inflation are smaller than unadjusted profits, banks obviously pay out more in taxes than the legislator, unaware of inflation, in tended them to pay. Banks share this fate with nonfinancial firms. Since banks already pay a lower effective tax rate than most nonfinancial firms, it would come with poor grace from them to be the first in demanding relief. On the other hand, the tax overload from inflation is well known in the case of corporations. Legislators have tried to compensate by devices such as accelerated depreciation and the investment tax credit, neither of which is of significant value to banks. 2. Larger holdings of hard assets on the part of banks might be a means of defending their capital, at least in an accounting sense. Since banks must not become manu facturing corporations, such hard assets presumably would have to be limited to real estate—except perhaps for assets that can be owned for leasing purposes. The historical record of bank real estate investments is not particularly encouraging. Moreover, regulators have strongly discouraged investment in bank buildings, at least initially, in excess of 40% of capital, although member banks are allowed to invest in their bank FINANCIAL STATEMENTS . . . (Continued from page 29) negative effects between one year and the next but rather tend to become progressively pronounced over a period of time. The analysis of a company through the use of a statement of application of funds (the funds flow statement) is of significant value in determining the causes of the changes in net working capital. However, analysts usually limit its use to the changes between in dividual succeeding years. By creating a multiple-year single statement of changes the major cause or causes for trend deterioration can be vividly shown and proper action by the lender can be taken. Break-Even Analysis For many of us, break-even analysis, while fine in theory, has an esoteric quality about it which does not readily lend itself to the analysis of the type of financial statements which we are accustomed to examining. While it is true that it is often almost impossible to fully determine the variable and semi-variable components of certain expenses, a financial analyst must not put his head in the sand and avoid the issue entirely because he doesn’t and can’t know all the answers. He should, rather, heed the words of the writer Samuel Butler who said, in effect, that the purpose of life is to make intelligent decisions based upon incomplete information. We do not have to be total experts in busi ness or credit analysis to understand that the trend of earnings of many companies, especially manufacturing Northwestern Banker. June. 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis premises to an amount equal to their capital stock. Even poorly selected investments would give banks some pro tection against the adjustments required by FASB, because they would reduce the net monetary asset position, but they would be a menace to both a bank and its depositors and stockholders. 3. Inflation-oriented pricing of bank credit and serv ices is another possibility. Banks could achieve a rate of return sufficient to compensate for capital attrition from inflation if they were to price accordingly. There is some evidence, in the recent gradual upcreep of the rate of return, that banks are trying to cope with the problem of capital attrition in this manner. But at present rates of inflation they are still far from achieving this objective. On the contrary, there is a widespread impression among the public (and some regulators) that banks are making enormous profits. Higher profits, even though modest after adjustment for inflation, might arouse widespread public criticism. Bankers are doing them selves little favor by not educating the public (and themselves) to the realities of bank inflation accounting. 4. Lower dividends would be still another line of de fense. Retentions could be raised, in the unrealistic case of total omission of dividends, up to equality with the rate of return. This would protect bank capital at least so long as the rate of return on capital remained in excess of the rate of inflation. It would be poor comfort for the stockholder, of course, to know that his principal was protected only by denying him the fruits of it. However, so long as the payment of dividends does not lead to price levels for bank stocks at which new equity issues become a realistic possiblity, dividends seem to serve no functional purpose from the point of view of the bank. □ concerns, tends to increase at a sharper rate than the in crease in sales volume or decrease at a sharper rate than the decline in volume due to the heavy fixed overhead costs that these companies have to absorb. While it is true that perhaps break-even analysis is more relevant to industrial concerns with a heavy invest ment in plant and equipment, it also can be relevant in other types of concerns. How ofter have we assumed that the owner or owners of a business who are drawing high salaries and/or dividends from the operation when business is good can subsequently reduce their income when business declines? How often have we viewed these salaries as somewhat variable without our knowing or even asking what personal debt servicing requirements these individuals actually have? Break-even analysis, especially during time of economic uncertainty, plays an important role in the credit decision process. Conclusion There is a tendency for analysts of financial state ments to emphasize certain ratios and relationships over other because (1) the ratios they emphasize may be the most relevant, (2) they feel more comfortable with these ratios and conversely less comfortable with the others. The fact is that the type of analysis which should be per formed depends upon the situation at hand. □ (Mr. Maram presented his talk, “Financial State ments: What Do They Reveal?" recently at the Illinois Bankers Association Commercial Credit Conference in Champaign, III.) Am erican Express is there when your custom ers need us. Because... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AWARDS for best guessing of future interest rates at the last Continental Bank Seminar in Des Moines were presented at this year’s seminar by Tom Elyea (left), v.p. of host bank, to Jack Hix (center), pres., 1st Nat’l., Waverly, and Ray Johnston, pres., Central Nat’l. B&T, Des Moines. RIGHT—Two of the hosts with several guests are, from left: Larry Frowick, v.p., Continental Bank; Rand Petersen, pres., Shelby County State, Harlan; John Figge, pres., Davenport B&T, Davenport; John Tingleff, v.p., Continental Bank; Scott Fetner, pres., Nat’l. Bank of Waterloo, and Tom Figge, exec, v.p., Davenport B&T. At Continental Bank Seminars— Bankers Have Tough Decisions to Make By BEN HALLER, JR. Editor F IVE Correspondent Bank Semi nars were conducted this year by Continental Bank of Chicago, contin uing a series initiated by the bank several years ago. This year’s semi nars were presented in Madison, Wis.; Des Moines, la.; Chicago and Decatur, 111., and Indianapolis, Ind. More than 1,000 attended the five seminars. The timing of the 1980 Seminars coincided with some historically im portant events on the economic scene —passage and signing of the Bank Omnibus Bill (HR 4986), further im plementation of President Carter’s credit restriction package to fight in flation, and a distinct downturn in the economy that is heading for a slight or serious recession, depending on which economists and observers are heard. Topics discussed at the Continent al Seminars were geared specifically to current concerns of bank manage ment; Challenges and Strategy in Banking; Pricing: A Key to Retail Profitability; Management—A Ra tional Discipline? ; Liability Manage ment; Agriculture—A Lender’s Per spective, and Intermediary Services for Mortgage Lenders. Officers of the bank directly involved with the management of each of these topics presented the talks. Each registrant was given a folder of materials supporting the talks so further review could be done more lei surely at home. Included was a copy of Continental’s Mid-April Economic Review tape cassette, a series sent out monthly by the bank’s economics department. In the opening talk on Strategy in PANELISTS for Des Moines seminar included, from left: Don Runger, pres., Jasper County Savings, Newton; Dave Taylor, pres., lowaT&S, Centerville; John Tingleff, v.p., Contin ental Bank, and moderator of panel; Bill Kundert, 2nd v.p., and Robert Vasko, v.p.-agri., both with host bank. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Planning, Alex Pollock, vice presi dent and head of corporate planning, presented many slide charts, one of which shows factors in bank selection by customers. Continuing studies, he said, show that customers list “ con venience” with 56.9% of the vote, “ other reasons” 28.5%, and “ price” only 14.9% . “ In general,” he stated, “ what the consumer is looking for is a reasonable price — ‘am I getting value received for my dollars?’ Most customers do not move accounts for price, but due to mismanagement of their account,” Mr. Pollock said. John Tingleff, vice president in charge of the financial institutions division, which handles midwest cor respondent banking, presided at a question and answer panel partici pated in by several bank speakers, plus two community bank officers from the audience. A great number of the questions revolved around the changing structure of banking. Mr. Tingleff said, “ We can’t afford the luxury of looking only at a single bill, law or event—it’s the trend develop ing that is significant. Banking is not an industry unto itself but is in the finance delivery service business. All our services can be performed by one or more competitors—but we’re more regulated than any of them.” The pricing and processing proce dures connected with NOW accounts were of special interest to the audi ences. A Continental spokesman said he sees rates bottoming out by spring, 1981, with inflation running at the 89% level, Fed funds at 8% and a prime ranging from 6 % to 9 %. □ American Express doesn’t go home at five o'clock. We’re there when your custom ers need us. Whether it’s 3 am in Arizona or 11 pm in N ova Scotia, your customers can find help if their travelers cheques are lost or stolen. Because by simply calling us toll-free, they can arrange for an Emergency Refund® at participating Holiday Inns throughout the U .S. and Canada. A refund o f up to $100 to tide them over until normal business hours resume —when they can get the balance o f their refund. American Express® Travelers Cheques. Because our refund system doesn’t go home at 5 o ’clock, your customers can get refunds around the clock. American Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 38 locks, / three movement timelock, N lockable daygate and when vault is What’s New v__________ !_________ J HE Mosler Safe Company of Hamilton, Ohio, has introduced the new 3Vi” Econo Door with sug gested application for financial estab lishments and commercial business es. The Econo Door is offered in either 36” or 42” clear opening models with 180° door swing (right or left). The 120-hour triple-movement timelock has anti-concussion overwind, in stantaneous drop and magnifying lens over each dial. The locking sys tem incorporates two four-tumbler U.L.-listed combination locks with “ counterspy” dials. Equipped with a rod-style daygate for “ working hours” security, the Econo Door also has a U.L.-listed emergency vault ventilator mounted in the door frame. Standard are a comtemporary-styled, satin finished, two spoke handwheel, 3” wide brush ed stainless steel box-styled archi trave, and a U.L.-listed relocking device. Mosler’s Econo Door qualifies for 6R Bank Vault Classification when equipped with dual combination secured with 18” reinforced concrete stone walls (5R with 12” reinforced walls). It meets allB .P .A . and I.S.O. requirements. T Mosler’s Econo Door. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WO essential products—a coin dispenser and adding machine— at teller windows of banks, savings and loans, credit unions, retail store service offices and other coin handl ing locations are combined into a single, compact system announced recently by Brandt, Inc. The new Model 580 CASHIER® coin dispenser saves time and space in managing transactions and basic calculations on the spot, while reduc ing chance of teller error. Measuring just 9 inches high by 10 3A inches wide by 113/4 inches deep, it fits conven iently in minimum space and allows T O AID mortgage lenders in the current housing market, MGIC Investment Corporation, Milwaukee, has prepared a seminar program that lenders can use to attract and inform potential first-time homebuyers. The key item, according to William Lacy, vice president of MGIC, is an 18-minute slide presentation that shows the steps—and advantages— of acquiring a home. Both the slides and a professionally narrated tape are provided by MGIC, the nation’s old est and largest private mortgage guaranty insurer. A booklet written specifically for the consumer explains how an insured conventional home loan can cut the down payment in half. For in stance, Mr. Lacy says, on a $36,000 home, the standard down payment is often 20% , or $7,200. However, he adds, insurance can slash that downpayment to 10% or $3,600. Mr. Lacy says that the seminar kit Brandt’s Model 580 Cashier combines coin includes a house affordability table dispenser and adding machine capabilities. that allows the lender to determine and respond immediately to quest ions about what price range a potent the teller to face the customer contin ial homebuyer could afford, based on uously for increased security and income. The table requires only three more personal attention as well. The eight-digit electronic display variables: interest rate, term and down payment. indicates both change dispensed and Particularly helpful for lenders, the balance due to the customer. The Mr. Lacy explains, is an eight-page teller may dispense the desired booklet on “ How to Conduct a Home- change portion of the calculation buyer Seminar.” The booklet covers automatically, without re-keying the planning, presentation, promotion information, or may interrupt calcu and follow-up. One page is devoted to lations to dispense the coin and then budgeting the cost, which can vary return to the calculations. from the site and materials to adver A display flash alerts the teller to a low coin channel in the coin magazine. tising and personnel. For potential buyers, Mr. Lacy Featuring an acrylic cover to prevent says, the kit contains a consumer- pilferage, the magazine disengages oriented pamphlet that explains the easily, without coin removal, and re estimation of monthly principal and attaches quickly. Newly designed interest payments and the tax bene calibrated strips allow fast, accurate fits involved in owning a home. Also balancing of coins in each channel. The Brandt Model 580 dispenses available for distribution is a “ Homebuyer Checklist” that itemizes about the dollar coin as regular change with 60 factors, including major consider pennies, nickels, dimes and quarters, ations about the house itself and the thus eliminating time required for counting singles by hand. It dis neighborhood. A sample advertisement and a sug penses up to $4.99, always using the gested news release are also contain least amount of coin, and supplies ed in the MGIC homebuyer seminar split change for the quarter or dollar upon command. program. T 39 Am erican Express doesn’t take weekends off. I ■ " h f **-mBÈÈIÈÈÈM bM M Pr 1 -m ' ll ill imv & ■ b i -***m We’re there when your custom ers need us. Whether it’s Sunday in California or Dimanche in Quebec, your customers can find help if their travelers cheques are lost or stolen. Because by simply calling us tolbfree, they can arrange for an Emergency Refund® at participating Holiday Inns throughout the U.S. and Canada. A refund o f up to $100 to tide them over until normal business hours resume—when they can get the balance o f their refund. American Express® Travelers Cheques. Because our refund system doesn’t take naps on Saturdays or Sundays, your customers H W M can get refunds B S S any day o f the week. ■ exb b ess American Express Travelers Cheques r ED64036 392 MOÙQOOO S i>; S V -0& W Ö *8,3** 2 =3 \ ' L * -MM .jp https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis :im WB '"I. ^ Northwestern Banker, June, 1980 40 Correspondent Bank Unit Created as Citicorp Subsidiary NEW subsidiary, Correspondent Resources, Inc., has been creat ed by Citicorp to provide capital, management and technological re sources to the independent cor respondent bank m arketplace, it was announced « p recently. * j* Alan J. Weber ***** has been named A’ McCHRISTIAN president of the subsidiary, which was known as the Independent Cor respondent Banks division of Citi bank. Mr. Weber had been a senior vice president of Citibank and head of the division. The subsidiary will provide a “ broad range of innovative services to customers including education and training programs, funding, consult ing and data processing, and other traditional support services,” Mr. Weber said. Donald A. Winkler, national busi ness manager for the subsidiary, said several branch offices already have been opened, including offices in New York, Orlando, Houston and Chi cago. A fifth will be opened early this fall in Minneapolis, and a sixth office will be opened early next year in Los Angeles. “ We believe this regional organ ization will enable us to better under stand our customers’ environment and respond to their needs more ef fectively based on first-hand know ledge and actual experience,” Mr. Winkler stated. Mr. Weber said that through its new marketing approach, Corre spondent Resources, Inc. “ wants to be recognized as the pre-eminent re source for capital, management and technological needs by independent correspondent bankers. “ A s a subsidiary, we will have the advantages of an entrepreneurial climate, new business opportunities, strategic geographical locations and independence,” he said. Mr. Weber pointed out that one key to his customer-oriented man agement concept is the “ consultative selling” approach. “ W e’ll not only offer a single pro duct or service, but a solution to profitability problems. And that will A Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis come from our in-depth understand ing of their business, their needs, and their objectives,” he added. Joseph A. McChristian Jr., assist ant vice president and relationship manager, has been assigned to the Minneapolis office. He will move there later this summer from New York, where he has been assistant vice president in Citibank’s corre spondent bank section. The Minne apolis office will serve Minnesota, Iowa, Missouri, Nebraska, South Dakota, North Dakota, Montana and Wyoming. Mr. McChristian joined Citibank in 1977 as operations manager in the services management group. In 1978 he became an operations head of the group. He was named an assistant vice president in 1979 and was with the central check processing depart ment of the financial and information services group. Mr. McChristian has joined Correspondent Resources, Inc. to develop and manage correspond ent banking relationships. A native of Florida, Mr. McChrist ian is a Distinguished Graduate of the U.S. Military Accademy, West Point. He served later as an officer in a variety of command, staff and special assignments. He was awarded the Bronze Star with two oak leaf clusters, Air Medal, Joint Service Commendation Medal and Army Commendation Medal. He has earned a masters degree in economics and finance from the University of Paris and has pursued doctoral studies in economics at Princeton University, as well as graduate studies in French. Banking Leader Walter Bimson Dies at 88 ALTER Reed Bimson, who W brought Valley National Bank of Arizona to a small bank from near insolvency to its current prominent national posit ion with “ maverick” ideas that helped change the face of banking nationwide. He served as president from 1933 to 1953 and chairman for another 17 years, but the groundwork for his successful service as bank president and community builder began in his native Berthoud, Colo., where he started his banking career at age 18. He soon learned that only those who don’t actually need the money were the only ones eligible for loans. Five years later, at the age of 23 in 1915, he moved to Chicago to study on campus at the University of Chicago the economics degree studies he had pursued by correspondence. After World War I he joined Harris Trust & Savings Bank of Chicago where for 12 years he was involved with business promotion, advertising, public relat ions, organizing a personnel depart ment, commodity credit and foreign banking. In 1932 while on a bank mission to Arizona he was offered the presidency of the struggling Valley National in Phoenix. The salary was “ pitiful” but the job also offered attractive stock options on the instalment plan. He ignored the warnings of fellow offi cers at Harris Bank, some of whom pointed out that even if deposits position of na tional stature while giving ma jor economic im petus to the growth of Ari zona, died April 27 at his Scotts dale home. He was 88. Mr. Bimson reW. R. BIMSON tired from the bank December 31, 1970, after 17 years as chairman of the board and 20 years as president, concluding a 60-year career as a pio neering banker. During his lifetime, he was known and respected not only as a banker, but also as a community leader, hu manitarian, sportsmans and friend of the arts. His most recent honor came in February when he was named presi dent of the Governor’s Arts Award in the first year of its inception. Mr. Bimson is survived by his wife, Isobel; a son, Earl, who is a member of the VNB board of directors and a former president of the bank, and a brother Carl, who retired as vice chairman of the board in 1970. For almost 40 years, Mr. Bimson directed the growth of Valley National Bank from its $6 million in deposits when he took it over in 1933 to its billion dollar statewide status W ALTER BIMSON . . . when he retired in 1970. He took the (Turn to page 119, please) 41 Am erican Express doesn’t take holidays. We’re there when your custom ers need us. Whether it’s Easter in Miami Beach or Dominion Day in Montreal, your customers can find help if their travelers cheques are lost or stolen. Because by simply calling us tolbfree, they can arrange for an Emergency Refund® at participating Holiday Inns throughout the U .S. and Canada. A refund o f up to $100 to tide them over until normal business hours resume—when they can get the balance o f their refund. American Express® Travelers Cheques. Because our refund system never takes a day off, your customers can AMERICAN get refunds any day EXPRESS o f the year. Am erican Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 42 1st of Chicago Offers High Yield to Small Investors with $1,000 Minimum SHORT-TERM, higher yielding officer of the bank, said that the First instrument for small investors National Bank in St. Louis Economic was introduced May 6 by First Na Development Forum: An Examination tional Bank of Chicago. Robert D. of the Port of Metropolitan St. Louis, is Richley, senior vice president and the first in a series of economic de head of the Chicago banking depart velopment forums to be sponsored by ment, said the delay from the initial the bank. Topics to be addressed in subsequent offering date of May 5 was at the re quest of the Comptroller of the Cur bank sponsored forums will concern rency, who raised questions that he economic issues of importance to the wanted clarified before the new pro greater St. Louis metropolitan area. duct went on the market. The Comp Mr. Barksdale stressed that the pur troller said on May 5 he had “ no ob pose of the forums is to bring together jection” to the bank offering its First the public and private sectors of the St. Rate Investments, as the product is Louis metropolitan area in an effort to tabbed, but is continuing to review "encourage interest controversy or de certain aspects of the program. bate; to serve as a catalyst for further In vestors may purchase face development.” amounts as small as $1,000 for 90 to 180 days, with interest based on pre vailing money market conditions. Heller Reports Record The yield will be established daily and First Quarter Figures can be obtained from a special First of Walter E. Hel Chicago number. Mr. Richley said ler International I the new instrument on May 1 for Corporation, Chi$1,000 on a 90-day FRI would have c a g o , has re been 11%, comparable to 10.79% on ported that first a three-month T-Bill and nearly quarter earnings double the 5 3A % maximum allowed from its w orld on a 90-day passbook or savings w ide fin a n cia l certificate. services reached Mr. Richley said FRIs will be pur an all-time high, chased at a discount. At maturity, with both finance F A COLE the full face value will be deposited and banking op into the customer’s checking or sav erations achieving record income ings account at First National. They levels. Record first quarter levels were are not transferable and must be held also reached in employment of funds to maturity, he said. Mr. Richley also by finance units, and average loans stated First National Bank of and deposits at the American National Chicago will unconditionally pay the Bank subsidiary. The company also in full face amount of the investment at creased its quarterly dividend to 32 V2 maturity from general funds of the cents per common share from the pre bank. FRIs, he noted, are not de vious 30 cent rate, as previously posits and are not insured by the announced. FDIC. Franklin A. Cole, Heller chairman, said net income rose 13.6% to a record high of $9.8 million versus $8.6 million 1st in St. Louis Launches earned in 1979. After preferred div Economic Progress Forums idends, common share earnings for the first quarter were up 12.3% to a record First National level of 82 cents from 73 cents for the Bank in St. Louis comparable 1979 period (fully diluted sponsored an eco 81 cents versus 72 cents). nom ic develop There were 11,785,542 average com m ent fo ru m mon and common equivalent shares focusing on the outstanding during the first period Port of Metropoli compared with 11,624,537 shares in tan St. L o u is, 1979. M ay 21 in St. Mr. Cole said that earnings for the Louis. three months ended March 31, 1980, C la r e n c e C. c. C. BARKSDALE were derived as follows: Barksdale, chair • F rom fin a n ce (commercial fiman of the board and chief executive A Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis nance and factoring provided by Walter E. Heller & Company and Walter E. Heller Overseas Cor poration), an all-time high of $7.7 million, up 15.2% from $6.7 mil lion last year. • F r o m b a n k i n g (A m e r ica n National Bank and Trust Com pany of Chicago), a record $5,345 million before security transac tions, up 12.9% from $4,736 mil lion in 1979. Net income after security transactions for the first quarter was $5,350 million, 25.7% above the $4,257 million earned in the corresponding period last year. MHT Leads Venture in Modern Portfolio Theory Manufacturers Hanover Trust Com pany, New York, has announced a ven ture with several of the nation’s leadin g s p e c ia lis t s in th e m o n e y management field of applied modem portfolio theory. The new subsidiary, Modem Port folio Theory Associates, Inc., repre sents the largest concentration of ex perts in that field of money manage ment and the only group of its kind affiliated with a major bank. The new firm will offer investment management services using quantita tive analyses based on the body of mathematical knowledge known as modem portfolio theory to support its fundamental portfolio manager judg ments. MPT services will be offered to major accounts such as pension plans, endowments and foundations. In addi tion, access to the firm’s analytical in formation may also be made available to clients who manage their own accounts. As an independently managed sub sidiary of Manufacturers Hanover Tmst, the new venture is designed to appeal to the market served by special ized advisors rather than by bank trust departments. In addition to its own accounts, Modern Portfolio Theory Associates will serve clients of the bank who are interested in applying MPT methods to portions of their funds. The firm’s specialized expertise will also be available to the MHT trust division for testing simulated retumand-risk effects of various portfolio approaches. Manufacturers Hanover is provid ing initial capital, computer facilities, research and operational back-up services to the firm. 43 Too often, commercial overline requests get put in their place. They get filed away. Forgotten. Politely ignored. The correspondent banker, who was all ears when you wanted to talk non-credit services, suddenly isn’t listening. At Continental Bank, w e’ll listen to anything. That’s right. Anything. Commercial customers mean a lot to our correspondents. And our correspondents mean a lot to us. So, we set out to accommodate. The loan might not be as well-documented as many banks would like. The risk might be higher. The profit, lower. But if you’re ready to go to the legal limit, you’ve got every right to expect us to hear you out. And answer you quickly. At Continental, you get the decisiveness you expect. And deserve. Your credit request isn’t bogged down in redtape. Or held up in committee. It goes directly to your account manager —the officer who can authorize most loans. So, you get a decision, fast, from the person who made it. Call John Tingleff at (312) 828-2191. Tell him you want to discuss commercial overlines. Then, start talking. You can be sure w e’re listening. It’s what you expect from a top correspondent bank. At Continental Bank, it’s reality. CONTINENTAL BANK Continental Illinois National Bank and Trust Company of Chicago 231 South LaSalle Street, Chicago, Illinois 60693 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 44 bgether we have more By joining hands we can do a lot better for our customers and ourselves. National Boulevard can help augment your banking operations, expanding the scope of existing services and implementing new ones for your respondent customers. Our “One-On-One” correspondent bank ing professional works closely with his coun terpart at your bank. His job: to coordinate financial resources, facilities and capabilities for maximum benefit. At National Boulevard there’s only one way— the One-On-One way—for us to work together. And when we do, we make a combi nation that’s practically irresistible— and highly profitable. NATIONAL BOULEVARD BANK OF CHICAGO The bank for the New Downtown 400-410 N M IC H IG AN AVENUE, CHIC A G O , ILLINOIS 60611 • ONE ILLINOIS CENTER, CHICAG O , ILLINOIS 60601 • (312) 836-6500 MEMBER FDIC Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 ■\ offers a loan at 10% simple interest with monthly payments up to 10 years. Named Directors at Elmhurst The York State Bank & Trust Co. of Elmhurst has announced the addi tion of two new members to the board of directors, E. Paul Lanphier and Edward Zell. Mr. Lanphier is an attorney and practices law in Elmhurst. Mr. Zell is the owner of a chain of gift shops, in lanes and a 21-car landscaped park with stores in Hillside, Oak Park, New President Takes Post ing lot for customer convenience. Chicago and Boston, Mass. At Peoria Heights Bank Diebold teller equipment will be used William C. Robinson has been pro throughout. Promoted at First Galesburg moted from executive vice president Ruth Dedek is assistant vice presi Richard M. Bishop, president of to president of The Heights Bank, dent and manager of the Western Peoria Heights. He succeeds John D. Springs office. Completion is antici the First Galesburg National Bank, Pearl who will continue as chairman pated by mid to late August. Architec has announced the promotion of John of the board. Mr. Robinson joined the tural renderings of the expansion are E. Sircy to assistant operations offi bank in April, 1978. on display in the lobby of the facility. cer with responsibilities for account ing policy, tax and insurance admin Other officers include A. Gale istration and the research, planning Youngman, cashier, and Mark D. Rockford Bank to and development of various internal Klawitter, loan officer. systems. A ssist Business Mr. Sircy is a 1978 graduate of Development Program CONVENTION R EPO R T Knox College where he majored in Ground breaking for the $900,000 economics and business administra The Illinois Bankers Associa Broadway Business District Redevel tion. He formerly was a loan inter tion convention was underway opment Program was held last month viewer in the instalment lending de as this issue was mailed. The in Rockford, according to Ronald R. partment of the bank. complete report with pictures Harkness, president of the Broadway will appear in the July issue. Business Association. Mr. Harkness, assistant vice presi Philip N. Peterson dent of City National Bank & Trust Funeral services were held recently Two Promoted at Northbrook Co., Rockford, also announced the City for Philip N. Peterson, 78, a prominent The Northbrook Trust & Savings Bank "10/10 Program,” a low interest retired banker. He lived more than 30 Bank recently approved two promot loan designed to assist merchants and years in Rockford and served as presi ions, according to Larry G. Gillie, land owners in the redevelopment dent of the First National Bank & president and chief executive officer. area to rehabilitate their businesses Trust Co. there for 20 years until his Mary Jane Walter was elected as and properties. The "10/10 Program” retirement in 1963. sistant vice president and will con tinue as personnel director, which she has been since joining the bank last year. She came to the bank from Irwin Union Bank & Trust of Colum bus, Ind., where she was associated for five years. Vicky L. Walker was appointed operations officer. She joined the bank in 1974, has had supervisory experience in both proof and book keeping departments and is now the head of the proof department. Rolling Meadows Bank Plans Office La Grange Bank Expands Office Construction has begun on the ex pansion of the Western Springs office of the First National Bank of La Grange. Located at 1013 Burlington Avenue at the west end of Western Springs’ downtown shopping district, the office is being enlarged to include four drive https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GROUND was recently broken for the new facility of Suburban Bank of Rolling Meadows to be located at the corner of Euclid and Kennicott Avenues in Arlington Heights. Officials participating were, from left: Gary Shevik, project mgr. of Pepper Const. Co.; Gerald F. Fitzgerald Jr., sr. v.p.,; Alvin S. Carlsen, pres., and W illis A. Glassgow, pres., affiliated Palatine National Bank. The new 10,000 square foot office will be the bank’s first facility. Northwestern Banker, June, 1980 46 National Bank of Minneapolis, has elected three new assistant vice presi dents and one new officer. Jeffrey S. Brooks, Denise C. Schu bert and A. Arthur Pattarozzi were elected assistant vice presidents of institutional sales. Mr. Brooks joined the bank in 1977, Ms. Schubert join ed the bank in 1979 and Mr. Pattar ozzi joined the bank in 1975. Kevin E. O’Connor was elected in vestment officer in governments. He joined the bank in 1977. * * * HE board of the Bank of Com merce & Industry recently pro moted one officer and elected two others, according to Donald B. Houder, president. Patrick W. Dooley was elected senior vice president-loans respons ible for commercial and instalment lending activities. He joined the bank in 1975 and has served as assistant vice president and vice president in the loan department. He has a BS de gree in business administration from Indiana University. Ann Marie Baumann, elected assistant cashier, will continue to supervise the bookkeeping depart ment, which she has headed since 1977. She joined the bank in 1974. Susan M. Jensen was elected an officer and promoted to administrat ive assistant to the president. She started her banking career in 1976 and joined BCI as secretary to the president last year. * * * T Henry W. Tymick has been named executive vice president of Pioneer Bank & Trust, according to John M. Sevcik, president. Mr. Tymick will serve as chief operating officer and corporate secretary of the bank and as chairman of the operations com mittee for W .N. Lane Interfinancial. Most recently senior vice president of operations and systems develop ment at Pioneer, he is a graduate of Purdue University and has graduate degrees from Loyola University and the University of Wisconsin. * * * BancNorthwest-Chicago, a Chica go-based affiliate of Northwestern Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Devon Bank has added two new officers to its staff. Leo Mendez, formerly an auditor with State Na tional Bank of Evanston, is now aud itor with Devon. The second addition is Saul Barkin, formerly with the Bank of Lincolnwood. He is now with Devon as vice president-marketing in charge of financial relations. * * * John A. Michas has been elected senior vice president and cashier of Aetna Bank, according to Joel T. Harris, president. Mary Przytarski has been promoted to personnel officer. Mr. Michas joined the bank in 1970 as a management trainee, rose J. A. MICHAS r M. PRZYTARSKI through the ranks from assistant cashier and assistant vice president ^ to his most recent position of vice president and cashier. Ms. Przytarski joined the bank in 1977 as personnel manager after an Anthony T. Catalano has been ap association with Northwest Bancorpointed vice president of commercial poration in Minneapolis. loans at Albany Bank & Trust Co. by * * * Joseph J. Briganti, president. Mr. Catalano is the fourth officer Pioneer Bank & Trust recently servicing business loans in the commerical loan department. He comes opened a $1 million drive-in facility at to Albank from Oak Park Trust & the intersection of Pulaski Road and Savings where he was vice president Wabansia Avenue, according to John M. Sevcik, president. of personal lending. Austin Bank Opens New Facility PRESENT at the ribbon cutting for Austin Bank’s new fa c ility were, from left: Eugene A. Tharp, v.p. & dir.; Edward C. Connor, dir.; Michael P. Brosnahan, sr. v.p.; Robert F. Callery, pres. & c.e.o.; Charles Saporito, adv. dir.; Louis P. Garippo, Demo, com m it.; Lydia S. Castle, dir.; Donald S. Watson, chief exam., comm, of bks.; Thomas M. McMahon, dir.; Louis Farina, aid. cand.; Paul P. Stolte, fa c ility mgr.; Patrick S. Filter, chm n.; Marvin O. Gullang, dir., and Jack McNicholas, p.r. OBERT F. Callery, president of Austin Bank of Chicago, has annnounced the grand opening of the bank’s new facility at North and Narragansett Avenues. The new facility has 7,000 square feet on the main banking floor and 3,500 square feet on the lower level, R which has been designated to accom modate efficient customer service. Safety deposit boxes are available through the newly-organized subsid iary, ABC Safety Deposit Co. The facility is now the site of the Austin Bank trust department with full trust services available • 4 His banker has to make decisions almost overnight. Buying inventory while the price is right can make the difference between profit and loss for a retail lumberyard. It s a competitive business—with lots of quick price changes that need a quick response. A nd if yo u ’re going to be the kind of banker this business needs, sometimes you have to turn on a dime. T h a t’s when it helps to work with the correspondent bankers at American National. We don’t put layers of review committees https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis between you and the overline you need. When you bring us a sound deal with all the necessary information, w e ’ll make a decision fast. Without a lot of paper-shuffling. Because w e ’re the bank for business. We spend almost all our time helping busi nessmen grow. A nd that helps us do a better job for an aggressive correspondent. Shake hands with American National. T h e bank for business. 48 The Loon, state bird of Minnesota. This year the state bankers’ convention will be held in Duluth on June 16 and 17. Join us at our Hospitality Suite at the Normandy Inn from 9:00 p.m. until midnight on June 16th. John Morrison, Peter Gillette, Jack McHugh, Larry Buegler, Paul Lindholm, Don Pederson, Dick Storlie, Mike Kelly, John Thomson, Jim Dempster, Tim Skildum, Phyllis Korinke, I t l n D T U lA f C C T C D M Ken Vegors, Gary Lundeen, and Jim Holker hope to see ^ I M U n l i 1 W t I > l L n IM you there. We're on your side. I f l] | \ | / \ J | Q | \ | / \ L B A N K This original painting is by nationally-known wildlife artist Louis Raymer. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Of Minneapolis J. T. GOWAN President R. E. GANDRUD R. J. WELLE T. L. JEFFERS First Vice. Pres. Second Vice Près. Exec. Vice Pres. 90th Annual Minnesota Bankers Association Convention June 16-17 Duluth Arena Auditorium Duluth ANKERS from all over the state will gather in Duluth June 16-17 for the 90th annual convention of the Minnesota Bankers Association. M BA President James T. Gowan said over 1,500 bankers are expected to gather to discuss current banking issues and elect new officers. The convention opens on June 16 with special interest sessions, ladies’ activities and an evening program. The June 17 activities begin with a prayer breakfast followed by morning and afternoon business sessions, special luncheons and concludes with the annual banquet. Business sessions throughout the second day will be a combination of guest speakers, election of association officers and adoption of M BA convention resolutions. Featured speakers will include C. C. Hope Jr., president of the American Bankers Association and vice chairman, First Union National Bank & Trust Co., Charlotte. N.C.; Dr. William Freund, senior vice presi dent and chief economist, New York Stock Exchange, and Mike Vance, creative leadership advocate. Top-notch entertainment will be featured both even ings during the convention. The First Night “ Duluth Harbor” Dinner Party will have the Dixie All Stars and Transition singing group. The annual banquet Tuesday night will be followed with fun and entertainment by a long-time favorite comedian, guitar-playing George Gobel, and by stunning singer Cathy Johnson, after1 which there will be dancing to the tunes of Jerry Mayeron’s orchestra to close the convention. A new special feature this year is the special interest session on Monday, June 16, at 2:30 p.m., with Tim B https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Marrinan discussing “ Developing An Effective Bank Compliance Monitoring Program.” Men’s and ladies’ golf tournaments and a tennis tour nament will take place Monday morning. The convention is being organized by Duluth bankers headed by James H. Claypool, president, Northern City National Bank. The schedule follows: Monday, June 16 A.M . 9:00 Registration open, Duluth Arena Auditorium. 9:00 Ladies Golf Tournament, Ridgeview Country Club. 9:00 Men’s Golf Tournament, Northland and Ridge view Country Clubs. 9:00 Tennis Tournament, Duluth Indoor Tennis Club. C .C . HOPE W. FREUND Northwestern Banker, June, 1980 50 Minnesota Bankers Association Convention P.M. 1:30 Bankers’ Special Interest Sessions, Radisson 1:30 Ladies’ Hospitality Center open, Duluth Arena Auditorium Mezannine. 2:00 Ladies’ Program, The Depot Theater. 2:30 Bankers’ Special Interest Sessions, Radisson Hotel. 3:00 Hospitality Rooms open. 6:00 First Night Party, Duluth Arena Auditorium. 9:00 Hospitality Rooms open. Tuesday, June 17 A.M. 7:00 Registration open, Duluth Arena Auditorium. 7:30 Prayer Breakfast, Duluth Arena Auditorium. 9:00 Ladies’ Hospitality Center opens, Duluth Arena Auditorium. 9:30 Ladies’ Tour of Glensheen Mansion. 9:30 First Business Session, Duluth Arena Auditor ium. Noon Luncheons • Ladies, Radisson Hotel. • Pioneer and MBA Past Officers, Duluth Arena Auditorium. • Delegates, Duluth Arena Auditorium. P.M. 2:00 Second Business Session, Duluth Arena Auditor ium. 2:30 Ladies’ Hospitality Center open, Duluth Arena Auditorium. 5:00 All Convention Reception, (sponsored by corre spondent banks and associate members) Duluth Arena Auditorium. 6:15 Annual B anquet, Duluth Arena Auditorium. □ You Will See Them at the Annual Minnesota Bankers Convention Midland National Bank: Harry C. Benson, president and chief execu tive officer; Ernie C. Pierson, execu tive vice president; Stanley J. Peter son, vice president-correspondent banking; Michael E. Bodeen, assist ant vice president-correspondent banking, and Richard A. Erickson, Chicago assistant vice president and director American National Bank: Richard of marketing. Akin. National City Bank: C. Bernard First National Bank: Colin C. Jacobs, chief executive officer; James Johnston, vice president. Hearon, president; Walter Meadley, Harris Trust and Savings Bank: senior vice president, and Donald L. Robert E. Grimes II, commercial Smith, vice president. banking officer. Northwestern National Bank: John W. Morrison, chairman of the board; John H. McHugh, vice chair Minneapolis First Bank: Lee C. Hamilton, Ray man of the board; E. Peter Gillette mond H. Johnson, Patrick R. Lavin Jr., president; Larry D. Buegler, C. and Kenneth A. Wales, vice presi Paul Lindholm and Donald G . Peder dents; Michael E. Boncher, Frank L. son, senior vice presidents; Richard Brosseau, JohnL. Franklin, Allen G. C. Storlie and Michael E. Kelly, vice Highum, Jerome (Jerry) Larson and presidents; John L. Thomson, Gary Roger Raina, assistant vice presi L. Lundeen and James R. Holker, dents; Zylpha Gregerson and Michael assistant vice presidents; Kenneth J. P. LaVigne, correspondent banking Vegors, Timothy R. Skildum, Phyllis officers; Leonard Kiskis, computer L. Korinke and James R. Dempster, services officer; Minnie B. Schroeder correspondent banking officers. and Delores Walstrom, bond invest St. Paul ment officers; Anne Bergen, corpor American National Bank: James ate computer service representative; Larry Nelson, bond investment rep W. Reagan, chairman, president and resentative, and June Swanson, cor chief exectuive officer; Robert E. respondent administrative assistant. Sipple and William P. Langford, Marquette National Bank: Carl senior vice presidents; Robert W. Pohlad, Bill Rosacker, Bill Adding Jacobson and Donald H. Johnson, ton, Len Erickson, Bill Klein, Larry vice presidents, and Gary M. Omerza, assistant vice president. Kraayenbrink and Larry Lange. HE following metropolitan bank ers and service and equipment dealers have indicated that they will be attending the 90th annual con vention of the Minnesota Bankers Association in Duluth, June 16-17. T Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First National Bank: Clarence G. *~ Frame, president; James T. Gowan, Michael T. Mishou and Richard C. Swanberg, vice presidents; Craig B. Jones, Donald R. Lindeman, Jerome J. Borovansky, Robert J. Peroutka, Robert F. Hall and Clayton L. John- < son, assistant vice presidents; James A. Russell, correspondent bank offi cer; James D. Schmitz, correspond ent bank representative, and Andrew G. Sail, executive vice president. Bank Equipment and Other Firms Banco Financial Corporation, Min neapolis: Clarence A. Adams, chief * executive officer; John H. Olson, president, and Lee T. Mork, senior vice president. Bank Building Corporation, St. Louis: John Ladner, consultant serv ices manager. Daktronics, Inc., Brookings, S.D .: Bob Graf, district sales manager. Dawson Hail Insurance, Fargo, N.D.: Lyle C. Askerooth and Dennis J. Christofferson. Financial Institution Services, Inc., Nashville: Mel Sommers, reg- „ ional director, and Tom Brickner, area director. ITT Life Insurance Corporation, Minneapolis: Wil Rogers. Mosler Safe Company, Hamilton, Ohio: Earl Frederickson and Harvey Larson, sales representatives. * Omaha Financial Life, Blooming ton: Gabe Kuhn, regional manager. Saint Louis Terminal Warehouse Company, St. Louis: David Miller, district manager. USLIFE Credit Life Insurance Company, Schaumburg, 111.: Robert L. Spehr, field vice president; David K. Craig and Donald R. Berreman, district managers. 51 When your com m unity needs a clinic,you have to be on call. W hen one of your customers needs money for his financial health, he relies on you. That’s why you need a correspondent you can rely on. During good times. Bad times. A n y time. A correspondent like First Bank Minneapolis. First Bank Minneapolis gives you one simple commitment. When you need us, we’ll be there. Period. Remember that next time a customer needs capital. When he calls you, you can call us. And we’ll be ready. If you have any questions about any of our Correspondent Services, call Ken Wales, Vice President, (612) 370-4687. You’ll get answers and a commitment you can count on. ♦ First Bank M inneapolis First National Bank of Minneapolis, 120 South Sixth Street • Minneapolis, MN 55402 • Member FDIC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 52 HE board of directors of the St. Anthony National Bank recently elected Jim Philpott the new president and chief executive officer. He joined the bank in 1976 and most recent ly served as exec utive vice presi dent and cashier. Mr. Philpott be J. PHILPOTT gan his banking career in 1958 and previously served in a number of positions with various subsidiaries of Northwest Bancorporation. T * E. M. LONG J. K. LUKASKA R. J. ROTH J. A. RUSSELL D. L. TIMMERMAN K. D. CARLSON D. E. BARNES * * * Eight officers have been promoted and 10 new officers have been named at the First National Bank of Saint Paul, according to Clarence G. Frame, president. Promoted to assistant vice presi dent were: Linda A. Darling, com puter service sales; Ronald W. Duffey, Robert F. Hall and Richard G. Lamm, investm ent services group; Eileen M. Long and John K. Lukaska, wholesale group; James A. Russell, correspondent banking, and Dale L. Timmerman, operations. The new officers and their titles are: Sherryl A. Anderson, Steven C. Cavalluzzi and Lee Ann Fiereck, operations officer; Robert T. Charpentier, audit officer; Alan J. Holz, personnel officer; Joe C. Paray, accounting officer; Wayne J. Prendergast, systems officer, and Lor raine M. Ruedy, Patricia S. Schneider and Linda L. White, personal banking officer. * * * R. F. HALL R. G. LAMM https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis Four new associates have joined First Bank Minneapolis. They are Richard J. Roth, assistant vice presi dent, U.S.-Canada division of the in ternational banking departm ent; Douglas E. Barnes, international banking officer, foreign exchange division, international banking de partment; Kent D. Carlson, com mercial banking officer, interim con struction loans division, and Harvey H. E. HOVEN E. Hoven, retail banking officer, pro fessional banking division. Mr. Roth had been with the Ranier National Bank in Seattle, Wash., as an assistant vice president in the U.S.-Canada region since 1974. He is a graduate of the University of Idaho. Mr. Barnes was formerly in the in ternational banking department of Cleveland Trust Company. He has a degree in finance from the University of Akron, Ohio. Mr. Carlson was formerly a con struction loan administrator for First Bank System Financial. He has a bachelors degree in business adminis tration from the University of W is consin. Mr. Hoven had worked for several * New York Stock Exchange firms since 1968. He has a masters degree in psychology from the College of St. Thomas. * * * * Lease Northwest, Inc., a fullservice equipment lease and finance company, has announced the ap pointment of James D. Sheedy to 53 WHEN YOU WANT TO TRANSMIT DATA, JUST REMEMBER WHO Y O W E TRUSTED TO TRANSMIT YOUR VOICE ALL THESE YEARS. Northwestern Bell has the equipment, the systems, the experience, the knowhow and the people to make your communi cations dollar work harder and go further. To transmit and receive data, for example, Northwestern Bell introduces the latest in our line of data terminals: The D ataspeedR 4540 data communications terminal. Toned down in price, with new functional styling, the Dataspeed 4540 terminal features extensive LSI technology and microprocessor control for greater reliability. This modular terminal fits readily into existing systems and offers faster speeds and expanded inter- connecting capabilities. Designed for either bisynchronous or certain AD CCP protocol transmissions on multipoint private lines, the Dataspeed 4540 terminal is on the leading edge of communi cations technology. The Dataspeed 4540 terminal. Another example of how we can help you get the most out of your communications system. Whatever the size of your business. Why not communicate with Northwestern Bell right now? Call toll-free: 1-800328-4535, ext. 603 (in Minnesota: 1-800752-4225, ext. 603) Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 54 Twin Cities News lease marketing officer. Mr. Sheedy is a graduate of Man kato State College. He joined Lease Northwest in 1978 and was most re cently a marketing representative. * * * Ms. Plante’s title change reflects her new assignment in the consumer banking services department. * * * * * * The board of trustees of F&M Sav ings Bank of Minneapolis has elected Susan M. Peters planning officer. Ms. Peters is a graduate of Macalester College in St. Paul and has been with the bank since 1973. She was appoint ed m a rk e tin g services super visor in 1977 and S. M. PETERS became long range planning analyst in 1979. Midland National Bank of Minne apolis has announced the promotion of Eileen Schema to assistant vice president and the election of three new officers: Gail Sahlstrom, mar keting officer; Debbie Goosen, accounting offi cer, and Ruth Ronning, person E. SCHEMA al banking offi cer. Kathy Plante, formerly a credit * * * card officer, has been named personal banking officer. Ms. Schema joined Midland in National City Bank of Minneapolis 1954 as a secretary, in 1972 was elect recently announced two additions to ed mortgage loan officer and became the bank’s staff, according to C. a mortgage banking officer in 1977. Bernard Jacobs, chairman and chief Ms. Sahlstrom joined Midland last executive officer. Thomas S. Hull August as retail marketing manager joins the trust department as vice following previous employment as an account executive with Stevenson & Associates in Minneapolis. Ms. Goosen joined Midland last August as accounting department manager following responsibilities at the First Northwestern Bank in Mar shall. She is a CPA. Ms. Ronning joined Midland in 1977 as a secretary and became a per sonal banker later that year. She is a T. S. HULL R. D. ZYGMUNT graduate of Concordia College with a BA degree in business education. president in charge of investments, and Robert D. Zygmunt joins the commercial banking department as commercial loan officer. Mr. Hull, who has an extensive background in banking, is a graduate of the University of Pennsylvania with a BA degree, and its Wharton School with an MBA. Mr. Zygmunt joins the commercial loan department’s group E which is responsible for executive and profes sional relationships. He has been em G. SAHLSTROM D. GOOSEN ployed by California banks since 1974 and has a BS degree from Man kato State College. R. RONNING K. PLANTE Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis as a mortgage loan officer, and is re sponsible for the income property section. He is a graduate of Michigan State University. Janice K. Karls was recently elect ed operations officer at the North western National Bank of Saint Paul, according to G. Richard Slade, president. M s. K arls, a graduate of the College of St. B e n e d ic t, S t. J o s e p h , M o., joins Northwest ern from Banco, K- KARLS Incorporated where she was in-charge auditor. She will be special services manager, specializing in credit unions and commercial services cus tomer needs. * * * Comptroller of the Currency John G. Heimann recently announced the selection of Michael A. Mancusi as regional administrator of national banks for the Ninth National Bank Region (Minneapolis). Mr. Mancusi joined the OCC in 1967 and was commissioned a nation al bank examiner in 1973. Since 1974 he has held various positions in the Richmond regional office. He is a native of Washington, D.C., and has a BA degree in commerce from St. Francis College in Loretto, Pa. * * * Gerald H. Thole has been appoint ed a liaison credit officer for First Bank S ystem , Inc. He has been associated with FBS since 1973 when he joined First Bank Mer chants, St. Paul, as a management trainee. Most re cently he served as assistant vice G. H. THOLE president - m ar * * * keting and commercial loan officer at First Bank Security, St. Paul. He has a BS degree in business from the Uni American National Bank & Trust versity of Minnesota. Company, St. Paul, has announced * * * the appointment of Douglas M. Bach as assistant vice president in the Thomas M. Hinnenthal has been mortgage department. Mr. Bach joined the bank in 1978 named senior vice president and man- 55 A LO T O F SM A R T BAN K ERS A R E A F T E R T H IS T E A M 'S N U M B E R . The Midland Correspondent team. Not only can you call them anytime you need some fast answers, you can call them toll free. T H E N U M B E R IS 1-800-752-4200 IN M IN N ESO T A * The names are Stan Peterson, M arge Lamosse, M ike Bodeen and Jackie Dunn. They represent the strength and service of a substantial financial institution. But, more importantly they represent the team spirit it takes to give your bank the best our bank has to offer W E R E B IG E N O U G H T O KNOW H O W AND SM A L L ENOUGH T O KN OW YOU. *In North Dakota and South Dakota, call 1-800-328-8678. L to R : Stan Peterson, Mike Bodeen, Jackie Dunn Marge Lamosse, Midland national 401 Second Ave. S./Street Level, Gov’t Center/MemberED.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 56 Minnesota News ager of the loan administration divi Northwestern National Bank of Minneapolis prior to joining Banco in sion of Northwest Bancorporation. 1979. He is a graduate of William Mr. HinnenMitchell College of Law. thal, a vice presi dent in the loan adm in istration New VP at Erskine Bank division since Michael Newland has joined the April, 1979, suc American State Bank of Erskine as ceeds John Olson vice president in the loan department. who has been A former teacher, Mr. Newland was named president previously with the Valley National and chief operat Bank of North Mankato where he was ing officer of T. M. HINNENTHAL in charge of instalment lending and Banco Rinancial personnel. Corporation. Before joining Banco, Mr. Hinnenthal was a vice president Management Changes Told in commercial lending for Northwest At Security, St. Michael ern National Bank of Minneapolis The Security State Bank of St. where he had been employed since Michael has made the following per 1961. Charles L. Kretchman and H. B. sonnel changes. Paul F.Ederer Renanderwere elected vice presidents of Banco and Richard J. Lovett was was elected presi elected government relations officer. dent and manag Mr. Kretchman, formerly presi ing officer replac dent of Northwestern State Bank of ing R. E. Simms Dawson, was named vice president in who has been the banking division. He joined the elected vice chair Dawson bank in 1973 after serving 12 man of the board. years with the First National Bank of Mr. Ederer be gan his banking Aberdeen, S.D P. F. EDERER Mr. Renander was elected vice career in 1968 president in the financial division. He with Fourth Northwestern National joined Banco as a manager of cost Bank of Minneapolis and later be benefit analysis in 1977 and previous came vice president of the First Na ly was with Northwest Computer tional Bank of Waconia. He joined the St. Michael bank in 1978 as exec Services, Inc. Mr. Lovett, formerly government utive vice president. Marcella Daleiden has been prorelations representative, was with Electronic communication brings the National M unicipal Market to you in minutes at the First National Bank o f St. Paul The “Blue List Bond Ticker” makes available on a CRT screen new listings and price changes as they happen in the Municipal Market. This new service together with the “Telerate”, Munifacts”, “J. J. Kenney” and “Chapdelaine” wires provides up-to-the-minute infor mation on the market needed to make sound investment decisions. Ask your investment representative how elec tronic communication can help manage your bond portfolio. First Bank Saint Paul A Full Service Bank Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 6 1 2 -2 9 1 -5 6 5 9 Investment Services Group First National Bank of Saint Paul St. Paul, Minnesota M. DALEIDEN D. M. LANGE moted to assistant vice president re sponsible for customer services and new accounts. Mrs. Daleiden has been with the bank since 1957 and had been cashier since 1972. Donna M. Lange has been promot ed to cashier. Mrs. Lange started her banking career at the Prior Lake State Bank in 1970. She then went to First Bank Produce, Minneapolis, and joined Security State in 1978. Staff News From Edina H. J. Wogsland, president of First Bank Edina, has announced the election of Kevin McShane as man ager of the Vernon Avenue office. Mr. McShane joined the bank in 1975 as a management trainee. He was promoted to a personal banking officer in 1976 and most recently was a commercial loan officer. Howard L. Weldon, a vice presi dent at First Bank Edina, was recent ly awarded a certificate designating him as a Certified Commercial Lender (CCL) at a special ceremony held in con ju n ction with the Am erican Bankers Association’s National Cre dit Conference. Retires From Bank Service Leon J . Kaliher has retired as a di rector of the Northern National Bank, Bemidji, where he has been associat ed since 1951 when he assumed the duties of president. He retired in 1968 and has since served on the board. Mr. Kaliher, who completes 61 years in banking, began his career in 1919 at the Bank of Elk River. He has a bachelors degree in business admin istration from the University of Minnesota. Over the years he has worked at the Northwestern National Bank of Hopkins, First National Banks in Richmond and Knapp, Wis., Union State Bank at Thief River Falls and the First National Bank at Red Wing. Directors and staff members of the Bemidji bank honored Mr. Kaliher at a retirement party last month. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 Minnesota News Robbinsdale Plans Brooklyn Park Facility of the Waseca Insurance Agency. He was formerly affiliated with the Pipe stone Insurance Agency. Mr. Hup replaces Wally Skoglund who has re signed to accept the managership of the First National Insurance Agency of Luverne. y N. Mankato Bank Promotion GROUNDBREAKING ceremonies for the Brooklyn Park detached facility of First Bank Robbinsdale were held in late April, according to Kenneth Sheehan, pres. The new office will be located at 74th and Zane Avenue North and an August completion date is planned. Featured will be multiple drive-through auto bank lanes and a 24-hour Firstbank automatic teller machine. First National, Lakefield Converts to State Charter The Minnesota Commerce Com mission has approved an application by the First National Bank of Lakefield to convert to a state chartered bank. The bank has held its national charter since 1899. The state charter will be issued and become effective when the bank completes the incor poration process. The bank’s management will con tinue with Evelyn Kolander as chair man, Douglas Kratz as president and Kenneth E. Haddock as executive vice president. The bank also is planning on ex panding its corporate authority to offer trust services, and will be named First Trust Bank of Lakefield. Con sent to authorize the trust powers and privileges was granted subsequent to the conversion act. First National of Duluth Announces Appointments Dennis W. Dunne, president of the First National Bank of Duluth, has announced the promotion of Leonard E. Griffith and Richard G. Williams to the position of senior vice president. Mr. Griffith, who directs the bank’s marketing programs, joined the bank in 1952 as advertising director. He had served as vice president and director of marketing since 1969 and is a business and journalism graduate of the Uni versity of Minnesota. Mr. Williams, who heads the human resources department, joined the bank in 1957. He was named assistant vice president-personnel in 1970, vice pres ident-human resources in 1973 and assigned the additional responsibil ity of regional personnel director for Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R ich a rd F. Voelz, president of the Valley National Bank of North Mankato, has announced the election of John H. Maiers as an assistant cashier. Mr. Ma iers has worked j H MAIERS in various capa cities at the bank for the last three years. New President Joins Dodge Center NW Bank L. Kenneth Erickson, formerly vice president of First Northwestern Banco banks in northeast Minnesota National Bank in D enison, Iow a, in 1978. Raymond C. Sink, who was pro has been elected moted to vice president, joined the p r e s i d e n t o f bank in 1956. He had served as assist N o r t h w e s t e r n ant vice president and security officer State Bank of Dodge Center by since 1978. Other promotions include Dorothy the bank’s board A. Puchreiter and Philip D. Rolle, of directors. He assistant vice president; James D. succeeds Lowell O. G ra s d a le n McCabe, assistant vice president and L. K. ERICKSON whose resignat trust officer; Linda M. Paulsen, branch ion was effective April 30. Mr. Erick officer, and Nancy Ann Fellbaum, son joins the Dodge Center bank after teller operations officer. four years with the Iowa bank. He previously spent nine years New Managers Named with Northwestern State Bank in At First Bank-W aseca Hillsboro, N .D ., where he was assist Glenn Thompson, president of ant vice president before joining the First Bank-Waseca, has announced Denison bank. He has completed sev eral banking and bank-related the appointment schools. of new managers for the instal ment loan depart Opens Motor Bank Addition ment and insur The State Bank of Faribault re ance agency. cently held a celebration for its new W illia m P. Motor Bank addition. Originally con Tuttle has been structed in 1971, the facility (with appointed assist three drive-in units) was expanded to ant cashier and six drive-in units. manager of the S. HUP With the new additions the Motor consumer finance department. He will also serve as Bank provides one of the largest com marketing officer for the bank. Mr. plete drive-in facilities in the area. Tuttle joined the bank in April, 1979. Hams were given away to winners Stanley Hup was named manager who registered through the facility. L. E. GRIFFITH R. G. WILLIAMS V 59 Sheshunoff Banking Services 'Our sole objective is to simplify, not mystify, the achievem ent o f high , perform ance. Bankers across the country who share this objective with us are fin d in g that significantly higher perform ance can be achieved through the use o f often am azingly sim ple straightforward approaches learned prim arily fro m other bankers. W e serve as a catalyst and clearinghouse fo r innovative approaches to high perform ance. A n y leadership role we have achieved is sim ply a reflection o f carefully listening to the high perform ance bankers and then working to p u t their approaches into broader use throughout the banking community. W e do not do any consulting work. Quite frankly our total energies are devoted exclusively to serving our clients at a m odest cost b y providing useful - information and seminars fo c u sed on what we firm ly believe are the essentials o f high perform ance banking. 99 For more information, please write Alex Sheshunoff, Sheshunoff & Company, 611 South Congress Avenue, Austin, Texas 78704 or phone (512) 444-7722. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 60 Minnesota News MBA Sponsors Minnesota 4-H Delegation She has worked in a number of the bank’s departments, becoming a member of the personal banking de- h partment in the spring of 1979. New President at Dawson THE MINNESOTA Bankers Association, for the 32nd year, has sponsored a trip for four Minnesota 4-H delegates to attend the National 4-H Conference in Washington, D.C. Pictured are three of the delegates with James T. Gowan, MBA pres., who presented a check for travel expenses. Mr. Gowan is also v.p., First Bank-St. Paul. Executive Changes Made at Lake Crystal National At a sp e cia l board meeting of L a k e C r y s ta l National Bank, James A. Clark was appointed to fill the position of p r e s id e n t and director vacated by the resigna tion of Donald E. j ^ CLARK A c k la n d , w h o had been president since 1974. Mr. Clark had served as vice presi dent of the bank for the past two years. Quentin J. Marsh, who joined the bank recently, has been appointed vice pres ident. In other action Fred L. Lantz was elected chairman of the board. Mr. Lantz, who farms in the Lake Crystal area, has been a director the past year. Negotiations for the sale of the in terest held by Mr. Ackland and Wilbur Kraus were recently finalized. Con trolling interest in the bank has been purchased by Mr. Clark and Mr. Lantz and Charles A. Johnson, a long time resident and businessman who now re sides in Mankato. Prior to joining the Lake Crystal bank, Mr. Clark was associated with the First Bank at Windom and Produc tion Credit Association of Mankato. ed the election of James M. Simpson as president replacing Thomas K. Wilson, interim president. Mr. Simpson comes to Elk River from Watertown, S .D ., where he was president of the United National Bank. He was president of the First National Bank of Barron, Wis., for five years and has held positions with the Western State Bank of Sioux Falls, S.D., and the Iowa-Des Moines National Bank. First Bank Mankato Elects New Officers Starr J. Kirklin, president of First Bank Mankato, has announced the election of Pamela Terry as auditor and Barbara J. Bahr as personal banking officer. Ms. Terry has a BA degree from Simpson College, Indianola, Iowa. She joined First Bank System, Inc. in 1975 as a member of the examining staff and was most recently auditor at the First National Bank of Hopkins. In her capacity she will act as regional auditor for First Bank System. Ms. Bahr joined the bank in 1972. New President Elected At Bank of Elk River Edmund Babcock, chairman of The Bank of Elk River, has announc Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P. TERRY B. J. BAHR The board of the Northwestern State Bank of Dawson has announced the election of Everett E . Kelley as president to succeed Charles L. K re tch m a n who has accepted a position with the Banco corp orate office. Mr. Kelley was formerly assist E. E. KELLEY ant vice presi dent and assistant manager of the Groton branch, First National Bank of Aberbeen, S.D. He had been with the Groton branch since 1973 and previously was ag loan officer at First National Bank, Britton branch. He is a graduate of Northern State College, Join s Maplewood State Michael R. Ruether has been elect ed a loan officer by the board of directors of the Maplewood State Bank, according to G. Jack Hillstrom, president. M r. R u eth er graduated from St. John’s Uni versity. He was M.R.RUETHER previously emnloved at ITT Thorp Finance. New Cashier at Marshall Thomas D. Lessard has been elect ed operations officer at Western Bank & Trust Co. of Marshall and as sumed the duties of cashier May 1. He was form erly an auditor for the Bremer Service Co., aud itor at Dakota Bank & Trust Co. in Fargo, and T. D. LESSARD was most recently auditor at First Bank-Valley City, N.D. He is a graduate of Moorehead State College. 61 Craig Jones, Assistant Vice President, Northern Metro Area, Northern Minnesota (612) 291-5576 “ I ’ll bring the fidi resources o f the bank right to your desk.” “ The most valuable asset I can offer my Correspondents is the strength and experience o f First Bank Saint Paul. “ All it takes is a phone call to me to have the full resources o f the bank brought to your desk. “ If you have questions about overline participations, acquiring a bank, financial regulations, check clearing or any other problem . . . contact me. “ M y job is to stay on top o f the fast changing developments in banking today, by frequently attending banking workshops and seminars. Add to that the years o f experience I ’ve acquired in banking. T hat’s the kind o f experience it takes to bring the full resources o f our bank right to your desk. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ In today’s competitive banking world, First Bank Saint Paul, could be one o f your strongest assets. Give me a call and I ’ll put it to work for yo u .” First Bank Saint Paul Correspondent Bank Division W e do our jo b . You get the credit. The First National Bank of Saint Paul • Member FDIC Northwestern Banker, June, 1980 62 Convention Report The North Dakota Bankers A sso ciation annual convention was just concluding in Bismarck when this issue went to the printer. A full con vention report with pictures will be presented in the next issue. Incoming NDBA President C. N. Davis, president of the First State Bank in Cando, announced prior to the convention that the following in dividuals have accepted appointment to serve as committee chairmen for 1980-81, effective with the conclusion of the convention last month. Named chairman of standing committees are: • Advertising — Mike Coffey, Northwestern National Bank, Valley City. • Agriculture—Arlo Maag, First State Bank, Munich. • Bank Management — James Lewis, National Bank of Harvey. • Bank Women—Janice Kolrud, First Bank of North Dakota, Fargo. • Consumer Credit—Mike Kitzman, Fargo National Bank. • Education—Lee Nelson, Bank of Tioga. • Insurance — Ron Lamphear, State Bank of Burleigh County, Bis marck. • Legislative — Doug Nyquist, American State Bank, Williston. • Trust—to be named. Named chairmen of special com mittees are: • Long Range Planning Task Force—Don Miller, Community Na tional Bank, Grand Forks. • 1981 Annual Convention—Stan Taylor, Fargo National Bank. It was further announced that the 1981 convention will be held May 1819 in Fargo. Future conventions are scheduled as follows: 1982 —Minot; 1983 — Grand F orks; 1984 —B is marck; 1985 —Fargo. dent. A native of Valley City, he was most recently senior vice president of the Farmers State Bank of Minnewaukan. Leon Schaible has been promoted from assistant cashier to the cashier position. He was recently with the Bank of Lemmon, S.D., prior to join ing Liberty National. Deposits Increase in N.D. Says Banking Com m issioner LeRoy Gilbertson, commissioner of the Department of Banking and Financial Institutions, Bismarck, has announced that the deposits of North Dakota state and federally chartered banks, savings and loan associations and credit unions totaled > V Joins Leasing Company Lease Northwest, Inc., a full-serv ice equipment lease and finance com pany, has named Christopher A. Hoss lease marketing officer and manager of the North Dakota region al office in Fargo. Mr. Hoss, who assumed manage ment duties in March, is a graduate of North Dakota State University. He formerly was an assistant vice presi- UMACC Scheduled for June 25-27 HE conference of the Upper Mid west Agricultural Credit Council will be held June 25-27 at the Bad lands Motel in Medora. Member states include Minnesota, Montana, North Dakota, South Dakota and Wisconsin. Council president is Charles K. Pederson, vice president, Farmers & Merchants State Bank, Springfield, Minn. First vice president is William C. Parker, vice president, Citizens State Bank, Rugby. The program follows: T Wednesday, June 25 Noon Registration until 5 p.m. in lobby. 6:00 Social hour, Burning Hills Amphitheater. 7:00 Pitchfork Fondue. 8:30 M ed ora M u s ic a l, A m p h i theater. Thursday, June 26 A.M. 8:00 Registration. 9:00 Welcome, Charles K. Pederson. Changes at Dickinson Bank 9:15 Planning Financial Resources for the Future — M ichael Dennis W hite has join ed the Boeljhe, professor of economics, Liberty National Bank and Trust Iowa State University. Company, Dickinson, as vice presi Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $5,664 billion as of December 31, 1979. Total deposits increased $477 million, or 9.20 % for the year 1979 as compared to increases of $514 million for the year 1978, $519 million for the year 1977 and $394 million for the year 1976. Of the total 1979 deposits, banks held $3,749 billion, or 66.19%; sav ings and loan associations held $1,699 billion, or 29.99%, and credit unions held $216 million, or 3.81%. Mr. Gilbertson said that the steady increase in deposits provides for a healthy and viable financial com munity and is an indication that North Dakota citizens are saving money and supporting their local financial institutions. 12:30 Luncheon and business session. Speaker: Pat Goggins, pub lisher, Western Livestock Re porter, Billings, Mont. Preview of ranch tour — Jim Voll, Farmers & Merchants Bank, Beach. 2:30 Tour of Jerry Meyer’s ranch near Medora. 5:30 Social hour, patio. 6:30 Casual banquet, Chuckwagon Room. Presentation of the 1981 Wis consin conference. A History of the Medora area — Harold Schafer, founder and chairman, Gold Seal Wax Co. Friday, June 27 A.M. 8:30 World Trade Outlook for Ag Products — Carol Hirtz, North Dakota Sunflower Co-op, Mott, and Steve Reimers, grain pro ducer, Carrington. 10:15 Trade Outlook continues — Joseph Halow, executive direc tor, North American Export Grain Association. 11:15 Panel discussion. Noon Final session luncheon. >* North Dakota News dent of the Dakota Northwestern Bank of Bismarck, and has held posi tions with Northwestern Bank in Great Falls, Mont., and First Na tional Bank of Fargo. Joins First Bank Bism arck B ob W estbee, president of the First National Bank & Trust Co. of B is m a r c k , has a n n o u n ce d the appointm ent of Jam es Braaten as an officer. Mr. ^ B ra a ten ’ s re sponsibility will be loan review and compliance. He joined First Bank System in J. BRAATEN ^ 1978 as a man agement associate at First Bank of Little Falls, Minn., and transferred to First Bank Bismarck in February. He has an M BA degree from the Uni versity of North Dakota. Farm ers State, Crosby Promotes Two Officers Gary Hanisch, president of the 1 Farmers State Bank of Crosby, has announced the promotion of two offi cers, Gaylen Melgaard to vice presi dent and Kathy Hall to cashier. Mr. Melgaard joined Farmers State in 1976 and has served as repre sentative and assistant vice presi dent. He previously was employed by A vco Financial Services as an assist ant manager for three years. Ms. Hall has been employed at the bank since 1966. She began as a sec retary, was promoted to assistant vice president in 1978 and now as sumes responsibilities in the instal ment, commercial and real estate lending fields. New A sso ciates, Promotion Told at Minnewaukan Bank The board of the Farmers State Bank of Minnewaukan has announc ed the election of two new officers and the promotion of another. Vernon J. Anderson was elected vice president and agricultural loan officer. Mr. Anderson, a graduate of NDSU, was formerly with Security Pacific Bank in California as manager and Ramsey National Bank & Trust * Co. of Devils Lake as vice president and agricultural loan officer. Gertrude F. Berg was elected cashier and operations officer. Ms. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Berg attended Concordia College and formerly served as commercial teller at Citizens State Bank, Puyallup, Wash., operations officer at the First National Banke, Enumclaw, Wash., and vice president and director at Farmers State Bank, Leeds. Kathryn G. Griffin was elected assistant vice president. Ms. Griffin joined the bank in 1961 and had served as cashier. Promoted at Langdon Bank 63 Appointed at Wahpeton Bank W. M. Sanger, president of the First Bank of North Dakota (N.A.)Wahpeton, has announced the ap pointment of E. Justin Reynolds as an instalment loan representative. Mr. Reynolds was previously em ployed by the First Bank of North Dakota-Fargo, leaving that bank in March, 1979, to complete his BS de gree at North Dakota State Univer sity. D. M. Mason, president of the First Bank Lang Visa U.S.A. Board Calls for don, has announ Legislative Price Relief ced the promot A federal legislative proposal to ion of Terry Rime afford pricing relief on bank cards was to vice president. endorsed by the Visa U.S.A. board at Mr. Rime will its recent meeting. It was one of sev continue as head eral actions taken to enable Visa mem of the bank’s ag bers to respond to the effects of the ricultural loan continuing high cost of funds and gov department. He ernment-imposed controls on con joined the bank sumer credit. in 1977 and prev O ther board actions in clu ded iously was employed by First Bank of approval of a pilot program to test the Jamestown. potential for cost savings in a new elec tronic dial terminal authorization con First Bank of Langdon cept, and temporary suspension of the Celebrates Anniversary corporation’s card advertising pro First Bank of Langdon celebrated gram. The board also approved "Na its 75th anniversary with a three-day tional Car Rental” for Visa Blue Band open house in March attended by identification. over 2,000 people. Several contests The legislative proposal would de and drawings were held and free gifts regulate all charges on bank cards to were given to visitors. the extent they are used as a conven Of special interest were films of ient payment device. The entire proc farm life from the early 1900s and a ess by which a transaction is com contest for the oldest cancelled check pleted between cardholder and mer on the bank, which was won by a chant and paid in full by the customer check cleared in 1909. within a reasonable period would be The bank, a First Bank System considered a payment transaction. The affiliate, has grown from $10,000 proposal calls for this transaction proc capital in 1905 to nearly $34 million at ess to be priced in an open market free year-end 1979, according to D. M. of restraint. The funds necessary to Mason, president. complete this cycle would be consid ered a part of the process and not an Kenneth A. Nielsen extension of credit and, therefore, not Funeral services for Kenneth A. subject to state usury laws. Nielsen, 66, were held recently in The board also review ed and West Fargo. He approved cancellation — to the extent join ed the W est possible — of card advertising that had Fargo State Bank been scheduled for the spring months in 1952 and later of 1980. This action was taken as a served as its presi result of the government’s credit con dent until his retire trol program. ment in 1975. Mr. "The present commercial is now con Nielsen began his trary to the letter and spirit of gov banking career in ernmental action and to measures K. NIELSEN Binford, Minn., and already implemented or under consid later served as a bank examiner out of eration by our member financial in the Minneapolis FDIC office. Among stitutions,” said Philip S. Hayman, his survivors are his wife, Anne, and senior vice president and head of the a daughter. marketing division of Visa U.S.A. Northwestern Banker, June, 1980 64 The Western Meadow Lark, state bird of Montana. The state bankers’ convention will be held in Colorado Springs, Colorado,on June 25 through June 27. John Morrison, Larry Buegler, Don Pederson, Dick Storlie, John M A n T M iiir o T r p i^ i Thomson, Steve Thompson, and Ted Taney hope to 51 n l U n l n W t o l t n I M see vou there. We’re on your side. isi n atio n al Ba n k This original painting is by nationally-known wildlife artist Louis Raymer. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Of Minneapolis Member FDIC R. F. BURKE President J .B . WALLANDER Vice President R. L. REIQUAM Treasurer J.T . CADBY Exec. Vice Pres. 77th Annual Montana Bankers Association Convention June 25-27 B. MUSBURGER Broadmoor Hotel Colorado Springs, Colo. ONTANA bankers will travel to Colorado for the Association’s 77th annual convention to be held at the Broadmoor Hotel in Colorado Springs June 25-27. The program has been changed from previous years in that no group function will be held Wednesday evening. All recreational activities will be held on Thursday and the convention will start with a reception and dinner Thursday evening. The business session and membership meeting will be held on Friday and the convention will end with a dinner/dance Friday evening. Serving as president of the MBA for 1979-80 was Robert F. Burke, president of the First National Montana Bank of Missoula. Assisting him were: vice presi dent— Jerry B. Wallander, president of the First State Bank of Froid; treasurer — Robert L. Reiquam, president of the First National Bank in Miles City, and executive vice president — John T. Cadby, headquartered in Helena. The convention program follows: M E. B. MAYNARD Wednesday, June 25 P.M. 1:00 Registration desk opens, International Center. 2:00 Board of Directors meeting, Broadmoor West. 6:30 Board of Directors Reception and Dinner, Broadmoor West. Thursday, June 26 E. B. LINDAMAN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A.M. 8:00 Registration desk opens, International Center. 9:00 Men’s Golf Tournament, Broadmoor East Course. Women’s Golf Tournament, Broadmoor West Course. Mixed Tennis Tournament, Broadmoor Courts. 50-Shot Trap Tournament, Broadmoor Trap Range. P.M. 6:00 Reception and Dinner, International Center. Speaker: Brent Musburger, CBS sportscaster, Los Angeles, Calif. Northwestern Banker, June, 1980 66 Montana News Friday, June 27 A.M . 7:30 25-Year Club Breakfast, Broadmoor Main. Speak er: E. Burton Maynard, Colorado Springs, former executive vice president, Security Bank, Billings. 8:00 Continental Breakfast, registration and informa tion— International Center. 9:00 Ladies Breakfast, Broadmoor Main (ladies tour at 10:30 a.m.) 9:00 Opening Ceremonies, International Center. • Edward B. Lindaman, president, Whitworth College, Spokane, Wash. • Ron Useldinger, Fitness Institute of America, San Jose, Calif. • Dr. Wayne Talarzyk, Ohio State University, Columbus. P.M. 12:30 Awards Luncheon, International Center. R. USELDINGER W. TALARZYK 1:30 Annual Membership Meeting, International Center. 6:30 Associates Reception, International Center. 8:00 President’s Dinner Dance, International Cent er. □ Joins Butte Bank as ILO Serving Southeastern Montana Continuously Since 1882 # First Bank MilesCity # FIRST NATIONAL BANK Member First Bank System in Miles City • M em ber F.D.I.C. Workingtogether, gettingthingsdone. W. R. Tait, president of the First National Bank, Anaconda-Butte, has announced that John C. Koppelman has joined the bank as an instalment loan officer. Mr. Koppelman was employed for the past six years by the Fourth Northwestern National Bank of Minneapolis. He is a graduate of the University of North Dakota at Grand Forks and the National Instalment Credit School. He will work with Gary Winship and John Goldberg in the instalment loan department at the Butte office. Joins Belt Valley Bank The board of directors of the Belt Valley Bank, Belt, has announced the appointment of Richard A. Browning as a vice president. Mr. B r o w n i n g was formerly asR A BROWNING sociated with the First National Bank of Great Falls. Named at M issoula Bank F IR S T N A T I O N A L BANK OF GLENDIVE fyom ily ß o n h " Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The board of directors of First Bank (N.A.)-Southside Missoula has announced the promotion of Jerry Knutson to instalment loan officer. Mr. Knutson has a degree in polit ical science and economics from the University of Montana in Missoula. He began his banking career in March, 1979, as a management trainee at First Bank-Southside. 67 Montana News PICTURED a t le ft, fro m le ft, are Bob Pancich, p re s ., F irs t B a n k W e s t G re a t F a lls ; John Reichel, p re s ., F irs t B a n k G re a t F a lls , a n d Lyle Gorman, v .p ., B u ttr e y ’s In c. Two Great Falls Banks Introduce FA STBA N K Two Great Falls banks and a local supermarket have announced the new FASTBANK® ATM service to the Great Falls area. The service is locat ed at Buttrey’s Superstore, 2601 10th Ave. South, and is provided by First Bank Great Falls and First Bank West Great Falls. FASTBANK is accessible by either of Firstbank’s Red Carpet card or Firstcard. Customers are able to make deposits, withdraw cash, trans fer money between accounts or obtain account balances. Two more FASTBANK locations will be added this summer, one each in the Buttrey store at Westgate Mall and the Holiday Village. With the addition of these locations, the First Banks will have five electronic bank ing devices in use within Great Falls. You Will See Them at the 77th Annual Montana Bankers Association Convention HE following metropolitan bank ers and service and equipment dealers have indicated that they will be attending the Montana Bankers Association Convention June 25-27 at the Broadmoor Hotel in Colorado Springs, Colo. T Billings Security Bank: Dick Kjoss, presi- " '■ \ "through thick &thin . . . ups & downs... good times & bad! Montana Territory was in the midst of a gold-rush boom when First National Montana Bank opened its doors in 1873. We’ve been through other booms since then, and a few busts as well. Regardless of the economic climate, Montana’s oldest bank has always been there to provide our customers with dependable banking services. We’ll be there in the future too . . . whatever the future holds. dent; Eugene E. Coombs, vice presi dent; Tom Scott, president—Secur ity BancShares; Jerry Woods, execu tive vice president; Homer Scott, chairman, and Bill Wilson, senior vice president. Chicago Continental Bank: Gibbs, vice president. Robert P. We’re on your side. Since 1898 Montana banks have relied upon us for e ffi cient, professional correspon dent services. Let us explain how we can assist your bank. Ed Jasmin, President Frank Shaw, Senior Vice President Sadie Hunter, Cashier Del Barnekoft, Asst. Vice President Serving Montana banks since the early gold mining days. Northwestern B ank Of Helena First National Montana Bank A n Affiliate of N o rth w e s t B a n c o rp o ra tio n Front and Higgins • Missoula, Montana 59801 • (406) 721-4200 -=== Helena, Montana 59601 q [406] 442-5050 BANCO J https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 68 Montana News First National Bank: Jerome R. Wagner, loan officer. Denver First National Bank: Terrance J. Tangen and Harry Devereaux, assist ant vice presidents, and Charles Hall Jr., correspondent bank officer. Gene Coombs #6573866 If not, we're surprised. Gene Coombs is Vice President in charge of our Correspondent Bank Department. A department that provides more services to more banks in Montana and Wyoming than any other bank. Period! Backed by an in-depth team of solid banking professionals, Gene is ready to discuss w ith you services ranging from data processing and investments — to trust accounts designed to meet your individual client’s needs. Naturally, prompt assistance is always available in handling your cash letter, overline and w ire transfer requirements. So if you haven't seen Gene lately, your bank could be missing a lot of profitable opportunities. Give him a call today. He loves to talk your business. 29TH & 3RD AVE. N. • CONVENIENT BANKIN G AT SECURITY WEST, 3RD AVE. N. AT 31 ST • MEMBER FDIC You're Number O n e Under The Sun (406) 657-3866 Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis First Bank: Robert J. Anderson, executive vice president; Kenneth A. Wales, vice president; John L. Frank lin, assistant vice president, and Ed ward L. Whelan, bond investment officer. Marquette National Bank: Dick > Holmes and Jim Kammerer. Northwestern National Bank: John W. Morrison, chairman of the board; Donald G. Pederson and Larry D. Buegler, senior vice presi dents; Richard C. Storlie, vice presi dent; John L. Thomson, assistant vice president; Steven B. Thompson, correspondent banking officer, and Clifford A. Taney, correspondent bond sales. St. Paul American National Bank: James W. Reagan, chairman, president and chief executive officer; Robert E. Sipple, senior vice president; Robert W. Jacobson, vice president, and Michael McNeil, assistant vice presi dent. First National Bank: A. G. Sail, executive vice president; James T. Gowan, vice president; Donald R. Lindeman and R. E. Pringle, assist ant vice presidents. Seattle Seattle-First National Bank: Sam uel R. Noel, vice president and man ager; Steven C. Pumphrey, vice pres ident and area manager; Vernon C. Ashbrenner and John S. Madison, assistant vice presidents. Bank Equipment and Other Firms Bank Building Corporation, St. Louis: Hank Hanson, consultant services manager. Mosler Safe Company, Hamilton, Ohio: Bill Smith, regional sales man ager, and John Tharp, sales repre sentative. North Central Companies, St. Paul: Robert Gordon. Omaha Financial Life, Blooming ton, Minn.: Bob Geiger, regional manager. USLIFE Credit Life Insurance Company, Schaumburg, 111.: James B. Anattol, district manager. 69 O ur c o m m itm e n t to s e r v ic e is y o u r S o u rc e o f s tre n g th in C o rre sp o n d e n t b anking . First of Denver is the source you can depend on for prompt, decisive answers and action on your loan participation requests, for the newest, most comprehensive cash management systems, for an availability schedule which sets the standard in the Rocky Mountain region, for highly skilled bankers who make it their business to anticipate changes in the agri-business and metro markets that can affect your bank and customer needs. And we respect and protect the integrity of your customer \ relationships. \ So consider the Source. I “a r _ \ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis think First. First of Denver Northwestern Banker, June, 1980 70 NEW OFFICERS— 2nd v .p ., Dean D. Mehlhaff; 1 s t v .p ., Nels E. Turnquist; p re s ., John W. Thomson, a nd p a s t, p re s ., Glenn H. Waltner. John W. Thomson Elected South Dakota President By MALCOLM FREELAND Publisher OHN W. Thomson, president, The Bank of Centerville, was ad vanced to the presidency of the South Dakota Bankers Association at its 88th annual convention in Rapid City last month. He succeeds Glenn H. Waltner, president of the First National Bank of Freeman. Over 700 were in attendance. Elected to assist Mr. Thomson were: first vice president, Nels E. Turnquist, president, National Bank of South Dakota, Sioux Falls, and second vice president, Dean D. Mehl haff, president, Eureka State Bank. J. I. Milton Schwartz continues as executive manager, and Deborah Gates continues as assistant execu tive manager. Association officials announced that recodification of the banking J laws in South Dakota is planned for the next session of the legislature. To gain input, the Association plans a series of meetings June 9,10 and 11 in Sioux Falls, Pierre and Rapid City, respectively. A B A Activities Heading a list of outstanding speakers, Lee Gunderson, president elect of the American Bankers A sso ciation and president of the Bank of Osceola (Wisconsin), discussed cur rent legislative activities in the nation’s capitol. He was critical of a proposal that would have banks with hold taxes on deposit interest at the source, calling it “ an idea to dis courage savers.” Mr. Gunderson also questioned the proposed Fair Credit Practices Act which would require banks to split credit balances on open-end accounts into different categories, applying one finance charge to balances accru ed before new terms became effective — and another to balances subse quently accrued. He termed the pro posal an “ operational nightmare” for banks offering credit card programs. As money market CDs retreat to interest rates of nearly 9 % , he noted that thrifts stand poised to exercise their authority to offer the extra quarter point of interest on this cate gory of accounts. Mr. Gunderson described the everexpanding role of the Farm Credit System, stating that it has privileges accorded no other lender. He added that it is exempt from usury laws, consumer protection statutes, and Federal taxation. Concluding his comments, he said that bankers have encouraging news in that “ truth in lending” has been simplified and a motion making cost/ benefit study of all proposed banking regulations has been signed into law. Economy “ What Lies Ahead for American Business” was the title of a talk given by Dr. William Freund, senior vice president and chief economist of the New York Stock Exchange. Dr. Freund said that the inflation rate will be down to 10% by year-end. He indicated that even though the nation is heading into a deep recession, a turn-around will occur in 1981. He believes that savers will put money in longer term certificates and thereby help the housing market. He sees a strong underlying demand for hous ing in the 25 to 40 age group that will continue through 1986. Dr. Freund and Association officials, appearing at a special press conference, were at a loss to provide an answer to the cur rent farm situation, describing it as a “ depressing picture.” The 1981 annual convention will re turn to Sioux Falls on May 11-12. LEFT—Rich Breyfogle, T o y N a t’ l. B a n k, S io u x C ity ; Dwayne Halse, F a rm e rs S ta te B a n k, F la n d re a u , and Ken Wales, F irs t N a t’ l. B a n k, M in n e a p o lis . R IG H T — Larry Buegler, N W N a t’ l. B a n k , M in n e a p o lis ; Kirk Dean, F irs t N a t’ l. B a n k, B la c k H ills , R a p id C ity ; Don Pederson, NW N a t’ l. B a n k , M in n e a p o lis , a nd Larry Hansen, U .S . N a t’ l. B a n k , O m a h a . Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 71 C a p it a l Y C a p it a l v ia I v ia B anco I Lease F in a n c ia l C o rp . i N o rth w e s t ■ ■ H E ONE WAY OR ANOTHER, WE CAN LEAD YOUR CLIENTS TO WORKING CAPRAI. A sset Power. G et m ore m ileage out of e ach dollar. Your clients’ assets can secure a tailor-made revolving credit line. Accounts receivable, inventories, machinery, equipment, land and build ings can be turned into Asset Money™ It’s the smoothest route for companies short on working capital, those looking toward expansion or growing firms eager to increase sales. Or money for buy-outs, mergers and acquisitions. Bank participations. Banco Financial Corporation can help get your clients off to a great future with Asset Money. Contact Clarence Adams, Lee Mork, Robert Olson, or Paul Weingart, (612) 372-7988, 830 Northwest ern Bank Building, Minneapolis, Minnesota 55402. Clients with considerable working capital may wish to conserve it by leasing needed equipment. Decide on a Lease Purchase Contract with a guaranteed purchase option at the end of the term. Go with a leverage lease or purchase equipment outright. Whatever your clients’ business, whatever the equipment they need — Lease Northwest, Inc. has the financing options that put it to work. Contact Dave Michael in Minneapolis at (612) 372-7416, Roger Meier in Omaha at (402) 536-2310, Jim Sheedy in Des Moines at (515) 245-3392, or Chris Hoss in Fargo at (701) 293-8136 LEASE NORTHWEST, INC. Banco« Financial Corporation Affiliated with Northw est Bancorporation An Affiliate of N orthwest Bancorporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 72 South Dakota N ew s Pictures From South Dakota’s 88th Annual Convention LEFT—Truman Jeffers, M in n e s o ta B k rs ., M in n e a p o lis ; Paulline Waltner; Lyla Jeffers, a n d S D B A Pres. Glenn Waltner. R IG H T — Don Lindeman, F irs t N a t’ l. B a n k, S t. P a u l; Rose Anne Lindahl, a nd M. E. Lindahl, W ilm o t S ta te B a n k. LEFT—Mr. & Mrs. Bill Henry, F irs t N a t’ l. B a n k, O m a h a , a n d Houston Haugo, V a lle y N a t’ l. B a n k, S io u x F a lls . R IG H T — Bev Roberts, P ie rre; Tom Pohlman, N a t’ l. B a n k, S io u x C ity ; Fran and Jim Hendricks, A m e ric a n S ta te B a n k, V e r m illio n ; Ron Jenkins, C o m m e rc ia l T ru s t & S a v in g s B a n k , M itc h e ll, a nd w ife , Eleanor. LEFT—Dick Holmes, M a rq u e tte N a t’ l. B a n k, M in n e a p o lis , a n d Jim Hopkins, U n ite d N a t’l. B k ., R a p id C ity R IG H T — Dennis Kirkeby, F irs t N a t’ l. B a n k , S io u x F a ils , a nd Bob Jacobson, A m e ric a n N a t’ l. B a n k, S t. P a u l. Northwestern Banker, June, Î980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis South Dakota N ew s 73 More Pictures From South Dakota’s 88th Annual Convention SPEAKERS—Glenn Waltner, S D B A p re s .; Lee Gunderson, A B A p re s .-e le c t, and Dr. Joyce Brothers. LEFT—Clyde McIntyre, D e lu xe C h e c k P rin te rs , M a rs h a llto w n , la .; Charles T. Undlin, F irs t N a t’l. B a n k, B la c k H ills , R a p id C ity , a nd Jim Echtermeyer, U n ite d B a n k , V e r m illio n . R IG H T — S D B A P res. John Thomson, B a n k o f C e n te rv ille ; Charles W . Ekstrum, F irs t N a t’l. B a n k, P h ilip ; Lloyd W. Sohl, F irs t N a t’ l. B a n k, B la c k H ills , R a p id C ity , and Peter E. Gillette, NW N a t’ l. B a n k, M in n e a p o lis . GOLF-IN-THE-RAIN—Lee Hamilton, F ir s t N a t’ l. B a n k, M in n e a p o lis , a nd Verlyn Schmidt, W e s te rn B a n k, S io u x F a lls . R IG H T — Morris Winter, A n d e s S ta te B a n k , L a ke A n d e s , a n d C. P. “ Buck” Moore, N W N a t’ l. B a n k, S io u x F a lls . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 74 South Dakota N ew s More South Dakota Convention Pictures > LEFT—Gary Stevenson, F irs t N a t’ l. B a n k, S io u x C ity , and Roger McKellips, S ta te B a n k o f A lc e s te r. C E N T E R — Earl fa c tu re rs H a n o v e r T ru s t, N .Y ., a nd Del Olson, O m a h a N a t’ l. B a n k. R IG H T — “ Bud” Weisser, D a k tro n ic s , B ro o k in g s , a nd Lundeen, M a n u Jerry Miller, J .T . M ille r, M in n e a p o lis . Sioux Falls AIB Group Holds Spring Meeting Jean M. Ellingson, marketing offi cer of Western Bank in Sioux Falls, was awarded the eighth annual AIB Community Service Award at the recent annual spring banquet of the Sioux Falls Chapter of the American Insti tute of Banking. The award is pre sented for out- JELLINGSON standing civic involvement among the banking community. Mrs. Elling son began her banking career in 1960 and is the first woman to receive this recognition by the Sioux Falls group. Special guests at the banquet in cluded Dan Culey, AIB district coun cil member from Aberdeen, and Larry McKeaigg, AIB executive council member from Kansas City, Mo. dent of BankWest and formerly served as senior vice president of The Pierre National Bank and concurrently as president of the Badlands State Bank. Mr. Vander May owns and operates a farm and ranch south of Kadoka in the Wanblee area. Mr. Hogen owns and operates Hogen Hardware in Kadoka and serves in the South Dakota Senate. Mr. Bums is president of Midwest Custom Pools in Vivian and Rapid City and owns the Vivian Telephone Company. Mr. Oiler of Presho is retir ing from his farming and ranching op eration in the Vivian area. The two new officers are Sandra Zinter, commercial loan officer, and Jack Lynass, agricultural loan officer. Both are with the main office in Pierre. Ms. Zinter was most recently execu tive director of the Pierre Chamber of Commerce. She is a business graduate of the University of South Dakota. Mr. Lynass was formerly director of dealer development and specialty sales for the Zip Feed Co. in Sioux Falls. BankWest, Pierre, Elects Directors, New Officers L. L. Steele Dies in Huron Five new direc tors have been sle e te d to th e board o f BankW est, N .A ., Pierre, according to C h a r le s H. Burke, president. They are William V. F is c h e r , Francis Vander W. V. FISCHER M a y, M a r v is Hogen, Robert Burns and Charles (Rich) Oiler. Mr. Fischer is executive vice presi Leland L. Steele, 69, who retired last November after 35 years of serv ice with Farmers and M erchants Bank of Huron, died April 11. Mr. Steele joined the bank in Octo ber, 1944,served for many years as executive vice president, then was president of the F&M Bank L- L- STEELE from 1970 until his retirement. He Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis had remained on the board of direct ors of the bank. Mr. Steele was active in bank asso ciation work and politics for many years. He served as president of the South Dakota Bankers Association in 1970-71 and later was on the ABA Governing Council. He served in the South Dakota Senate, and recently had been selected as Republican of the Decade for the 1970s in Beadle County, where Huron is located. Prior to joining the bank,! Mr. Steele had worked for the State of South Dakota in the motor fuel divi sion and state income tax division. Survivors include Mr. Steele’s son, Jack Steele, who is a vice president of the bank. United National Bank Names New President United National Bank’s board of directors announced recently that Hurley C. Wilson has joined the bank and will serve as presi dent for the 21branch bank sys tem. Mr. Wilson steps in for Mer ritt J. Gates who has been pro moted to vice H. C. WILSON chairman of the board. Stephen Adams will remain as United’s chairman. Mr. Wilson is a graduate of the University of Montana and the Grad uate School of Banking at the Univer sity of Wisconsin. He began his banking career in 1955 with the First State Bank of Malta, Mont., and South Dakota N ew s joined the First National Bank of the Black Hills in 1963 where he had served as senior vice president since 1976. Other personnel announcements include the promotion of Jeff Walter to assistant vice president and com mercial loan officer at the main office, Sioux Falls. He is a Northern State College graduate and has been with United since 1976. He most recently served as manager of the Eastgate branch. Replacing Mr. Walter is Joyce Olsen who has been promoted to J. WALTER J. OLSEN S. L. JOHNSON P. J. PLANTEEN branch, and Steven L. Johnson was elected personnel officer, administra tive office, Sioux Falls. Miss Planteen, a graduate of Northern State College, became a management trainee in the main office following graduation. Mr. Johnson has a psychology de gree from the University of North Dakota and a masters degree in in dustrial psychology from the Georgia Institute of Technology, Atlanta. After working in the personnel de partment of Northwest Bancorporation, he has been working in personnel recruitment for the administrative headquarters since last August. 75 February after serving seven years as a securities analyst with Lutheran Brotherhood in Minneapolis. Ms. Chester joined the trust de partment last September. She previ ously worked in the investment de partment of Dain Bos worth, Inc. and has a law degree from the University of South Dakota. Mr. Pranger joins the bank after five years experience with a bank in South Sioux City, Neb. Mr. Koch re cently joined the bank after serving as a credit analyst with First Bank System, Inc. in Minneapolis. Ms. Chaffee joined the bank in 1970 and started the bank’s manage ment training program in June, 1979. Her new responsibilities will consist primarily of real estate lending. National Bank of S.D . Announces Appointments K. J. HALLOCK J. VANDENBERG assistant cashier and branch man ager. She joined United in 1974 and has served as EDP coordinator and operations supervisor of the mort gage marketing department. K. James Hallock has joined United as assistant vice president and manager of the 41st Street branch. Mr. Hallock is a 1974 gradu ate of the Colorado School of Bank ing. Jeff VanDenBerg has been pro moted to consumer finance manager and transferred to the main office. A graduate of the University of South Dakota, he joined the bank in 1976 and most recently served as assistant cashier and assistant manager of the 41st Street branch. NW Sioux Falls Names Two Two new officers have been elected at the Northwestern Bank, according to C.P. “ Buck” Moore, president. Pamela J. Planteen was elected per sonal loan representative, Colonial https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The board of the National Bank of South Dakota has promoted three officers and elected five new officers, according to Nels E. Turnquist, pres ident and chief executive officer. James A. Borszich was promoted to assistant vice president and assist ant manager-Presho branch; Mary Lou Nelsen to assistant vice presi dent- Rapid City, and Cal Willemssen to assistant vice president-Sunset branch, Sioux Falls. New officers elected were Terry Seierstad, trust investment officer, Sioux Falls; Stephanie Chester, trust administrator, Sioux Falls; Daniel Pranger, loan officer, Vermillion; William Koch, assistant vice presi dent, Sioux Falls, and Louise Chaf fee, loan officer, Sturgis. Mr. Borszich joined the bank in 1974 as manager of the insurance agency. In 1979 he was elected an agricultural lending officer. Mrs. Nelson joined the Rapid City office in 1973. She was elected mar keting officer in 1976 and continues in that position. Mr. Willemssen joined the main office in 1977. He transferred to the Sunset branch in 1978. Mr. Seierstad joined the bank in C. WILLEMSSEN W. KOCH T. SEIERSTAD L. CHAFFEE Northwestern Banker, June, 1980 76 G. W. McILVAINE G. E. COOKE A. E. BRADBURY M.C. MUNDELL P re s id e n t 1 s t V ic e Pres. 2 nd V ic e Pres. E xec. D ir. 72nd Annual Wyoming Bankers Association Convention H. SIDEY Jackson Lake Lodge June 11-13 ACKSON Lake Lodge near Moran, W yo., will host the 72nd annual convention of the Wyoming Bank ers Association June 11-13. W BA President George W. Mcllvaine, president of the Saratoga State Bank, will preside at the two general sessions which will feature four guest speakers and the annual business meeting. W BA officers serving with Mr. Mcllvaine the past year are George E. Cooke, director, American National, Powell, first vice president, and A1 E. Bradbury, presi dent, First National Bank, Evanston, second vice presi dent. M. Clare Mundell, Laramie, is executive director of the association. The first day again will be devoted to sports activities, directed by a team of veteran “ coaches” who have hand led all arrangements under the direction of Athletic Director John Easterbrook, First National Bank of Laramie. Golf coaches are John Edmiston, senior vice presi dent, Denver National Bank, Denver, and Gene McMillen, senior vice president, First Wyoming Bank, Raw lins. Tennis coaches are Dick Nelson, president, First Na tional Bank, Powell, and Rick Fleming, First National Bank, Denver. Fishing coaches are Dean Bark, vice president, Jackson State Bank, Jackson, and Sherrod France, presi dent, Rawlins National Bank, Rawlins. Registration packets may be picked up at the registra tion desk in the Lodge lobby from 10 a.m. to noon and 1:30 p.m. to 5 p.m. on Tuesday, June 10; 9 a.m. to noon and 1:30 p.m. to 5:00 p.m. on Wednesday, June 11, and 8 a.m. to 9:30 a.m. on Thursday, June 12. Wednesday, June 11 J Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.M. 6:00 7:00 8:00 9:00 Social Hour, Stockade Terrace. Indoor Picnic, Explorer’s Room. Entertainment, Faculty Jazz Trio. Dancing to the music of the Allen Brothers. Casual Clothing. Thursday, June 12 A.M . 9:30 First General Session. Presiding: G. W. M cll vaine, president W BA; president, Saratoga State Bank. 9:35 Pledge of Allegiance to the Flag. Invocation—Reverend John Wright, pastor, Our Lady of the Mountains Church, Jackson. 9:40 Welcome—John Turner, state senator, Teton and Sublette Counties. 10:00 Address—Hugh Sidey, Washington editor, Time Magazine. 10:35 President’s Report— G. W. Mcllvaine, president, Saratoga State Bank, Saratoga. 10:45 Address—Congressman Richard Cheney, U.S. Representative from Wyoming, Washington, D.C. 11:20 SB A Awards. 11:30 Report of Nominating Committee and Election of Officers—E. J. “ W oody” Haines, president, First National Bank, Laramie. 11:45 Recess. Noon Joint luncheon preceded by refreshments—Ante lope Room, ground floor. W yom ing News 77 P.M. Afternoon Free. 6:00 Social Hour, Stockade Terrace. 7:15 Seventy-Second Annual Banquet, Explorer’s Room. Athletic Association will present awards during banquet. 9:00 Entertainment, Faculty Jazz Trio. 9:45 Dancing, The Allen Brothers. Friday, June 13 A.M. 8:00 PEEPS (Past Presidents’ Breakfast), Prospect or’s Room. LES CHICKS (Past Presidents’ Wives Break fast), Vigilante Room. 9:30 Second General Session, Explorer’s Room. Presiding: George E . Cooke, first vice president of W BA; director, American National Bank of Powell. 9:30 Resolutions Committee Report—Robert W. McBride, chairman; chairman and executive vice president, First National Bank, Buffalo. 9:40 Address—Josephine Webster, president, Nation al Association of Bank Women, Inc., Chicago, 111. J. M. WEBSTER 10:15 Address—Dr. Edward Jennings, president, Uni versity of Wyoming, Laramie. 10:50 Association Business Session. 11:30 Adjournment. P.M. 12:30 Luncheon, Prospector’s Room: officers of W BA; members of executive council. Hosted by newlyelected president of W BA, George E. Cooke. □ You Will See Them at the 72nd Annual Wyoming Bankers Association Convention HE following metropolitan bank ers and service and equipment dealers have indicated that they will be attending the 1980 Wyoming Bankers Association Convention at Jackson Lake Lodge, June 11-13. T Billings Security Bank: Dick Kjoss and Jerry Woods. Chicago First National Bank: Catherine D. Saccany, loan officer. Denver American National Bank: Larry F. Pisacka and Roger R. Reiling, vice presidents. Central National Bank: Don Echtermeyer and Bill Tumelty. Colorado National Bank: Lance Johnson, vice president, and David Fowler, assistant vice president. First National Bank: Terrance J. Tangen and Harry Devereaux, assist ant vice presidents, and Charles Hall Jr., correspondent bank officer. Security National Bank: John Edmiston and Steve Sheridan. Lincoln First National Bank: Gary L. Bieck, vice president and manager, and Mark Zaback, correspondent officer. Omaha Omaha National Bank: Thomas N. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. H. JENNINGS Moore, executive vice president; Jack H. Babcock, J. D. Clements and Bruce Hendrickson, vice presidents. Packers National Bank: Wesley D. Bowen. United States National Bank: James R. Campbell, president; Larry H. Hansen and Howard Nielsen, vice presidents. Seattle Seattle-First National Bank: Sam uel R. Noel, vice president and man ager; Arthur L. Manegre, vice presi dent and area manager, and George E. Lovell, assistant vice president. Scarborough and Company, Chi cago: Jim Lloyd. United States Check Book Com pany, Omaha: Ed Batchelder, sales manager, and Wayne Kincaid, repre sentative. We’re the one. Bank Equipment and Other Firms Bank Building Corporation, St. Louis: Hank Hanson, consultant services manager. Diebold, Inc., Canton, Ohio: Leo nard Shriver, regional manager, and Dave Brooker, sales representative. Financial Institution Services, Inc., Nashville: Bill Graves, area director. First Mid America, Inc., Omaha: Gary Fenster. Kirchner Moore & Company, Den ver: Bill Potocnik and Louis J. Swiatek, vice presidents. Mosler Safe Company, Hamilton, Ohio: Bill Smith, regional sales man ager, and John Tharp, sales repre sentative. F o r credit collections and information, transit items, excess loans and all correspondent services . . . First National Bank of Casper CASPER, W Y O M IN G /(307)235-4201 MEMBER FDIC Northwestern Banker, June, 1980 78 W yom ing News WBA President Views State’s Economy; Legislative Session Update Presented By G. W. McILVAINE President Wyoming Bankers Association President Saratoga State Bank crease in activity in Wyoming and al though unemployment rates remain lower than the national average, there are soft points in W yoming’s economy. The building industry is showing a substantial decrease in B ANKS in the state of Wyoming business. With Wyoming being a during 1979 continued to show large producer of lumber products, these industries are also showing the a p p ro x im a te ly effects of the building slowdown. the same growth Farmers involved in the production of rates as has been grains are faced with the same prob seen during the lems affecting the midwest growers past three or four and while livestock prices are some years. Deposits what depressed from the past two or for all banks in three years, this portion of the agri creased approxi cultural industry has not shown the m a te ly th ree same problems as the crop producers. h u n d red and We can expect, if interest rates re th ir ty m illio n Q w Mc1LVaine main high and funds scarce, that dollars d u rin g 1979, an increase of 13.7% for the many of our small businesses and year. Overall loan totals grew agriculture will suffer. Energy production areas within approximately 10 %, indicating a continued strong demand for credit. the state will probably not feel the Bank profits were also strong. Total pains of a recession as much as other parts of the country. The high cost of equity capital increased 15%. A t this point in time, the national funds will undoubtedly reflect in economic picture is causing some de bank profits this coming year. By M. CLARE MUNDELL Executive Director Wyoming Bankers Association HE 1980 annual legislative session was the “ budget” session and, therefore, only a relatively few bills were introduced which did not deal di rectly with budg etary matters. The following acts affectin g banking were signed into law M. C. MUNDELL and represent some very sa tisfactory changes. 1. Senate Enrolled Act No. 11 in creases the authorization for the Wyoming Community Development Authority to $750 million. The Legis lature also toughened some of the abuses. First, “ reasonable priority” must be given to individual home pur chasers before committing money to contractors, builders, real estate de velopers and real estate agents. Second, the money committed may clearly be used for their new or exist ing residential dwellings. Third, a criminal penalty of $1,000 and one T Welcome to the W yom ing Bankers Convention at Jackson Lake Lodge, from Wyoming’s largest state-chartered bank — serving Northeast Wyoming since 1907 Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 year in jail has been created for per sons making false statements or applications. Fourth, any person assuming the loan must qualify under the rules and regulations to the ex tent they do not conflict with any federal programs. Fifth, the Author ity must submit a report every year to report on the results of the bonds, investment, and use of the funds. This is an oversight committee. Sixth, when any bonds are issued, the total principal amount of the bonds are subtracted from the total author ization and may not be again reissued or reused even if the bonds have been retired, redeemed or refunded. The bill was effective March 5, 1980. 2. Senate Enrolled Act No. 17 in creases the application for filing fees from $3,500 to $7,500. That law was effective March 5, 1980. 3. Senate Enrolled Act No. 23 pro vides, among other things, that banks and savings and loan associ ations are no longer required to sub mit annual reports or pay annual license fees to the Secretary of State. The new law becomes effective on June 2, 1980, and will, therefore, be applicable for the 1980 reporting (which is July 1, 1980). 4. House Enrolled Act No. 4 pro vides that the Wyoming state bank ruptcy exemptions, rather than the federal exemptions, will apply where Wyoming law is applicable on the date the petition is filed, and the debtor has been a resident of W yom ing for 180 days before the date of filing. That bill became effective on March 3, 1980. 5. House Enrolled Act No. 25 pro vides for rather severe penalties for check fraud, and exempts banks from criminal or civil liability after a war rant has been issued for releasing in formation relating to the drawer’s account. That law is effective June 2, 1980. 6. Senate Enrolled Act 14 provided for amendments to the Probate Code. None of the amendments are object ionable and, in fact, can benefit the banks. I have not yet received a copy of the new Probate Code, but it is my understanding that the Code and the amendments went into effect on April 1, 1980. Heads Bank Trust Division Robert W. Miracle, president of Wyoming National Bank of Casper, has announced the promotion of James Watson to vice president, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis senior trust officer and manager of the trust department. Mr. Watson joined the bank in 1960 and was elected to officer status in 1967. He has a BS degree in busi ness administration from Denver University and graduated from the Pacific Coast Banking School. 'n ( Colorado accountant and in 1979 transferred to the holding company’s accounting department. Mr. White graduated from the University of Colorado with a degree in business. He joined Colorado Na tional Bank in 1973 as an accountant and in 1979 transferred to the ac counting department of the holding company where he is responsible for all financial reports to management, shareholders and governmental agencies. Named Vice President, NCNB Dan Clark, president of Northeast Colorado National Bank, Denver, re cently announced the promotion of John T. Mathews to vice president in charge of loans. Mr. Mathews has 12 years bank experience in data processing, sales and service, customer service and instalment lending. He attended Trinidad Junior College and the Uni versity of Wyoming and holds a real estate license. First Nat’l., Bear Valley Opens New Headquarters CONVENTION R EPO RT The First National Bank of Bear Valley recently opened a new $5 The Colorado Bankers Asso million banking center—the largest ciation convention was under in southwest Denver—at 5353 W. way as this issue was mailed. Dartmouth Ave. The complete report with pic In making the announcement tures will appear in the July Robert Binder, president, said the issue. bank will continue to provide limited services in its present facility in the Bear Valley Shopping Center, which will supplement the new location. Central Bank of Denver First of Bear Valley will occupy the Announces Appointments lower banking level and first two The board of Central Bank of Den floors of the new five-story, 72,000 ver has announced the promotion of square foot office building. three employes and the election of Customer service and operations departments will be located on the three others to officer positions. Jerry C. Starks was promoted to lower level, with the first floor hous vice president in the operations divi ing the bank lobby, teller line, safe deposit area and new accounts de sion. He has a bachelors degree in partment. The second floor will in accounting from St. Benedict’s clude the executive offices, confer College in Atchison, Kan., and joined' ence rooms and all lending depart Central in 1971. He has served as an assistant vice president since 1976. ments. Jerry W. Keel and Eileen S. Neill were promoted to the rank of assist ant vice president. Holding Co. Names Two AVPs Mr. Keel, who is a petroleum engi Colorado National Bankshares, neer, has a bachelors degree in chem Inc., Denver, recently announced the ical engineering from Tulane Univer promotion of Edward Jy Vanderslice sity. He joined the bank in 1978 and and Sidney J. White to assistant vice formerly was a natural resources president. banking officer. Mr. Vanderslice graduated from Ms. Neill joined the bank in 1977 the University of Nebraska with a and formerly served as a product de major in accounting. He joined Colo velopment officer. She has a bachel rado National Bank in 1974 as an ors degree from Cornell University Northwestern Banker, June, 1980 80 Colorado News and an MBA from New York Univer sity. James S. Fallon has a bachelors degree from Rutgers University. He joined the correspondent banking division in February and will serve as correspondent banking officer. He was previously employed by First National Bank of Denver. Marcia A. Fitzgerald joined Cent ral’s human resources division in January and will serve as human re sources officer. Alfonso Strock has a bachelors degree in accounting from Metro politan State College. He joined orado National Bankshares, Inc. The new bank employs 12 people. Central in February in the credit department where he will serve as Besides Mr. Thomas, who is the former president of Boulevard Colo credit officer. rado National Bank, the new facility is staffed by H. Daniel Pierson, vice New Commercial Bank president and cashier, and Mayo Opens Tech Center Office “ Corky” Dodd, business develop Colorado Bank-Tech Center, the ment officer. “ Colorado Bank-Tech Center will first full service commercial bank in the Tech Center, opened for business complete the area and blend into the in April. Garth Thomas is president environment with lush landscaping of the new facility, which is located and an aesthetic building,” Mr. east of Marina Square at 8401 E. Thomas remarked. The modular Belleview, and is a subsidiary of Col building will be surrounded by a green area and the bank’s dark wood interior will be highlighted with cin namon and navy accents. The facility design will soon offer an in-house automated banking machine. Promotions Announced at Colorado National Bank The United Bank o f Denver Correspondent Banking Group believes in being innovators in our industry. Not imitators. And the fa ct that 11 different banks around the state have presidents that have come from our ranks bears out our philosophy. I f you re a bank that needs a bank, give our Correspondent Banking Group a call at 861-8811. Who knows, you might talk to a future president. United Bank of Denver National Association Correspondent Banking Group 1740 Broadway Street Den ver, Colorado 80217 Phone 303-861-8811 Member FDIC https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis Colorado National Bank, Denver, recently announced several promo tions. Named to the position of as sistant vice president were Ruby R. Cole, Luke D. Knecht, Barbara A. Henderson and Michael A. Strada. Ms. Cole, who joined the bank in 1968, is division manager for Visa out put responsible for Visa account con trol and Visa interchange. Mr. Knecht, who joined the bank in 1974, is in the investment division responsible for taxable bond trading and portfolio management. Ms. Henderson joined the bank in 1976 and is responsible for coordina tion of banks for the Visa banking program in the electronic banking services division. Mr. Strada, who joined the bank in 1967, is in electronic banking services responsible for the development and support of all on-line application. James M. Bahl and Dwight S. Kitano were elected officers. Mr. Bahl joined the bank in 1977 and is now responsible for supervising account ants working on financial and regula tory reporting for all affiliate banks. Mr. Kitano is teller communication su pervisor responsible for the teller proc essing network and maintaining the Plus System environment. Gregory J. Ellena was elected a real estate loan officer responsible for a commercial real estate loan portfolio. He joined the bank in 1977. Michael G. Huntoon, who joined the bank in 1976, has been named marketing officer responsible for bank marketing re search and business development administration. 81 T h e q u a lit ie s o f a co rresp o n d en t h an k er. J o h n A. E d m isto n Steve S h e rid a n T h e D e n v e r N a tio n a l C o r re s p o n d e n t B a n k e r p o s s e s s e s th e q u a litie s o f e x p e rie n c e , e x p e rtis e a n d e ffic ie n c y . If th e s e a re th e q u a litie s y o u d e m a n d in a c o r r e s p o n d e n t r e la tio n s h ip , w e 'd lik e th e c h a n c e to s h o w y o u a n o th e r q u a lity o f a C o r r e s p o n d e n t B a n k e r. R e s p o n s iv e . ^Affiliated Denver National Bank 425 16th S tre e t at G le n a rm Denver, C o lo ra d o 80202 • (303) 534-4000 M em b e r FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker. June. 1980 82 Colorado News Evergreen Bank Promotes 3 Donald L. Beachler, president of the First National Bank, Evergreen, has announced the promotion of three officers. Charles T. Smith was named vice president and cashier, Virgil D. Rice was named vice president, and John E. Lombardi is now a loan officer. Mr. Smith joined Colorado National Bank in 1964 and moved to Northeast Colorado National Bank in 1965. He moved to the Evergreen bank in 1975, where he is in charge of all lending functions. Mr. Rice has over 20 years of bank ing experience. He was formerly vice president and cashier of Overland Park State Bank in Kansas. Mr. Lombardi is responsible for in stalment and commercial loans, re view and collection. He joined First National from Colorado National Bankshares, Inc. where he served as examiner and auditor for five years. Promoted to VP-Lending William R. Frogge, president of Lakewood Colorado National Bank, has announced the prom otion of Barrett L. Willett to vice president in charge of the lending area. Mr. Willett had 16 years banking experience before joining Lakewood Colorado as assistant vice president. A graduate of the University of Houston, he was formerly senior vice president at Texas Commerce Bank in Conroe. Displays Photo Mural Central Bank of Denver recently un veiled an 80-foot long photo mural in its lobby which focuses on the charac ter of the central Denver area. The mural, which shows the oldest and newest parts of central Denver, consists of 30 colorful panels each four feet high. As the seasons pass and as new buildings are erected, the photo mural will reflect these changes. Named at Denver National The appointment of Gloria S. Scho field to assistant trust officer, trust department of Denver National Bank, was announced recently by Gale Sellens, president. She has a BA in business manage ment and finance from Colorado Women’s College and was formerly trust officer and supervisor of retire ment trust services for Lincoln Trust Company of Denver. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis William C. Barnett Jr. was ap pointed assistant cashier in charge of thë loan administration department. He joined the bank in 1978 as a loan adjuster and most recently was with Affiliated Bankshares’ Denver divi sion audit department as senior staff auditor. He has a BS degree in busi ness administration from The Citadel in Charleston, S.C. United Banks of Colo., Inc. Elect Directors, Officer Three new directors have been elected to the board of.United Banks of Colorado, Inc., Denver, according to N. Berne Hart, chairman and president. John J. Bugas, Robert P. Hackstaff and Jerome A. Lewis fill positions created by the resignation of John D. Hershner, former chairman of United Bank of Denver, and Hall H. Keltz and Henry D. Williams, who did not run for re-election. Mr. Bugas is president of the Colorado-Ute Electric Association, Inc. Mr. Hackstaff is president and a director of Frederick Ross Company, a commer cial real estate firm. Mr. Lewis is chairman and president of PetroLewis Corporation and a veteran inde pendent oil operator. Mark L. Swanson has been named manager of the holding company’s eco nomic development department. He joined the department six years ago as a research analyst and served most re cently as assistant director of property planning and management. He has a masters degree in public administra tion from the University of Colorado. United Bank of Denver Announces Appointments United Bank of Denver has an nounced the promotion of several staff members. Named assistant vice presi dents were John A. Green, J. Robert Ward, William L. Wong, Peter Hosakawa, Frances B. McDonald and Robert L. Seymour. Mr. Green joined the bank’s com m ercial b an k in g departm ent in March. He has BA and MBA degrees from the University of Iowa. Mr. Ward joined the bank last August and is market manager of the commercial fi nance department. Mr. Wong, who joined UBD last October, is market manager of mort gage banking. Mr. Hosakawa, a Uni versity of Denver graduate, joined the bank in March as the national ac counts market manager. Ms. McDonald, manager of employ ment in the human resources division, has been with the bank since 1971. Mr. Seymour joined UBD in 1978 and is manager of the operations division support group. Also appointed were James B. Bills, mining engineer officer; Wanda J. Myers, personal banking officer; Michael B. Geppner, pension trust officer; Christine M. Rafalko and Lyndol B. Carter, commercial banking officer, and Keith A. Spears, opera tions officer. Comptroller Promotions Comptroller of the Currency John G. Heimann has named Edmund G. Zito as chief national bank examiner and Peter C. Kraft as regional administra tor of national banks for the Twelfth National Bank Region in Denver. Mr. Zito joined the OCC in 1970 in New York and most recently has been assistant chief national bank examin er at Washington, D.C., headquarters. Mr. Kraft joined the Comptroller’s staff in 1968 in San Francisco and most recently has been acting regional administrator in Denver. Mr. Heimann also announced the appointment of two deputy regional administrators. Kenneth W. Little field, a national bank examiner and executive assistant to the regional administrator in the Tenth Region (Kansas City), has been appointed deputy regional administrator for planning and operations in the 14th Region in San Francisco. Frank J. Coughlin, a national bank examiner in the 14th Region, has been appointed deputy regional administrator for examinations under Mr. Kraft in Denver. Stonier School Is Full The incoming class is now filled for the 1980 session of The Stonier Gradu ate School of Banking, the senior edu cational arm of the American Bankers Association, it was announced by Dr. William H. Baughn, Stonier director. "We accepted 602 applicants for the class entering in June, and an addi tional 37 applicants from the waiting list as vacancies occu rred ,” Dr. Baughn noted. Thus, all applications received between now and Oct. 15, 1980, will be considered by the admis sion committee for entry in June, 1981. Graduation requirements include extension work, and attendance at each of the three summer sessions on the campus of Rutgers - The State University, New Brunswick, N.J. 83 Some bankers think Bankof America can be their correspondent only in the U.S.A. Actually, we provide correspondent bank services at our own offices in over 85 countries. In Asia, we have 28 branches in 14 countries from Japan to India; in South and Central America, it’s 4 4 branches from Argentina to Guatemala; and we cover Europe and the Middle East with 29 branches in 17 countries from Ireland to Pakistan. Plus affiliates, subsidiaries and representative offices in many m ore countries. W hen you d o need a United States correspondent, we have superb credentials, with specialized international units in San Francisco, Los Angeles, Chicago, H ouston, BANK OF AMERICA NT&SA • MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Miami, and particularly New York. Bank o f America New York (BANY) handles so m uch international business that, based on deposits, it would rank as on e o f the 30 largest banks in the United States. Dealing with us, you d o n ’t need a differ ent correspondent for each country. Bank o f America can give you the world. Bank o f Americas global network of offices can provide a broad range o f cor respondent services: from import-export financing to foreign exchange trading, special-purpose loans in local currency, letters o f credit, collections ... and more. BANKof AMERICA Think what we can do for you, Northwestern Benker, June. 1980 We can make it easy for you to become a part of today's growing Electronic Funds Transfer (EFT) environment. . . without a lot of waiting. For your bank. Instant Cash can be instant Our ready-to-go Instant Cash package includes the card, the equipment, the processing system, technical support, and a proven-effective marketing and advertising program. Best of all, we're ready to put all (or part) of it to work for you now. Learn how you can make the most of our Instant Cash Services. . . to make your account relationships more valu able, to maintain your bank's identity, and to compete more effectively in your marketplace. Call a U.S. National Correspondent Banker at 402/536-2072 today. Bob Hams U.S. National Bank, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Howard Nielsen Member FDIC Larry Hansen Lee Bachand John Lewis Myron Peterson US National Bank Of Omaha banco 85 banks, to operate the switch also for NETS. The United States National Bank of Omaha, one of the data processing centers for NETS, is compatible with ITS. The Omaha National Bank, which re-entered NETS earlier this year, is now programming its system and report edly can adapt easily to ITS. First National Lincoln and National Bank of Commerce, both in Lincoln, must find a means and agree to re-program to be compatible with ITS. If that is accomplished, it is probable that the two states would operate with the same central switch, the first such across state line electronic linkup bey tween two states in the nation. Nebraska and Iowa Bankers AssociNBA OFFICERS f o r i 980-81 (fro m le ft): Im m e d . P a st P re s .— James W. McBride, p re s ., 1 st N a t’ l. B & T , A u ro ra ; P re s .— Jerry E. Roe, p re s ., B a n k o f B e n n in g to n ; P re s .-E le c t— W. W. Cook Jr., p re s ., B e a tric e N a t’ l. B & T , B e a tric e , a nd Roger M. Beverage, e xe c, v .p ., L in c o ln . Elections Nebraska Bankers Association: President: J e rry E. Roe, p re s id e n t, B a n k o f B e n n in g to n . New NBA President Jerry Roe Announces Task Force to Study Bank Structure By BEN H ALLER, JR. Editor OTENTIAL changes in banking structure in Nebraska will be given a thorough examination by a blue ribbon Structure Task Force appointed during the Nebraska Bankers Association’s 83rd annual convention in Omaha last month by the new NBA president, Jerry E. Roe, president of the Bank of Bennington. The Task Force is comprised of representatives from the five largest banks in Omaha and Lincoln, as well as chief executives of 15 community banks from across the state. After a series of meetings throughout the state, which will provide every bank an opportunity to be heard, a report from the committee is to be given to the NBA executive council at that body’s meeting in Norfolk next October. A legislative program is expected to develop from that report which can be supported by all members of the NBA and eliminate the sharp differences that have characterized divided approaches to the Nebraska legislature in recent years. Mr. Roe made his Task Force appointment during a brief speech of acceptance when he was elected to succeed James W. McBride, who was P https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis president of the NBA this past year and also is president of First National Bank and Trust Co. in Aurora. Mr. McBride had called for an end to“ civil war’ ’of recent years, and Mr. Roe followed with the committee appoint ments. Their comments appear later in this report in a special section. Serving with Mr. Roe in the coming year will be William W. Cook, Jr., as NBA president-elect. Mr. Cook is president of B eatrice National Bank & Trust C o., Beatrice. Mr. McBride, Mr. Roe and Mr. Cook all are sons of former NBA presi dents. The senior Mr. Roe and Mr. Cook are still living and are active as chairman of their respective banks. In addition to the Task Force appointment, another announcement of major importance came from S. N. Wolbach, chairman and chief execu tive officer of First National Bank, Grand Island, during his report as retiring president of the Nebraska Electronic Transfer System. Mr. Wolbach said he had “ good news’ ’ to report by informing NETS members that the organization will be continued beyond October 31, 1980, when the contract for central switch operation by MICOR terminates. Negotiations are underway, it was learned later, between NETS and the Iowa Transfer System to consider the possibility of the ITS central switch, which is operative for all Iowa President-Elect: W m . W . C o o k J r., p re s i d e n t, B e a tric e N a tio n a l B a n k & T ru s t C o ., B e a tric e . immed. Past Pres.: Ja m e s E. M c B rid e , p re s id e n t, F irs t N a tio n a l B a n k & T ru s t C o ., A u ro ra . Exec. Vice Pres.: R o g e r M. B e ve ra ge , L in c o ln . NBA Executive Council [three years]: L .J . F o x J r., p re s id e n t, F irs t N a tio n a l B a n k , A lb io n . J o e J . H u c k fe ld t, p re s id e n t, G e rin g N a tio n al B a n k & T ru s t C o ., G e rin g . R o n a ld J. K re jc i, p re s id e n t, S c h u y le r S ta te B a n k, S c h u y le r. R o b e rt W . J o h n s o n , e x e c u tiv e v ic e p re s i d e n t, S ta te B a n k o f C o m m e rc e , L in c o ln (b a n k s o ve r $200 m illio n ) . H a ro ld M . W a lto n , p re s id e n t, C e n te r B a n k, O m a h a (b a n k s u n d e r $200 m illio n ) . A p p o in te d to o n e -y e a r te rm to f ill v a c a n c y le ft by M r. C o o k : D ic k H ahn J r ., e x e c u tiv e v ic e p re s id e n t and c a s h ie r, C a rso n N a tio n a l B a n k , A u b u rn . A m e ric a n B a n k e rs A s s o c ia tio n (tw o -y e a r te rm o n e x e c u tiv e c o u n c il, e ffe c tiv e a t c lo s e o f A B A c o n v e n tio n in O c to b e r, 1980); J a m e s W . M c B rid e . Nebraska Electronic Transfer System [NETS]: President: Ja m e s D. L u te s , p re s id e n t, S c rib n e r B a n k, S c rib n e r. Vice Pres.: A . C. “ S k ip ” H ove J r., v ic e p re s id e n t, M in d e n E x c h a n g e B a n k & T ru s t C o ., M in d e n . Secy.-Treas.: R o g e r M. B e ve ra ge , L in c o ln . Counsel: W m . B ra n d t, L in c o ln . T h re e -y e a r te rm s o n N E T S b o a rd : Ja m e s H o w e , p re s id e n t, F irs t N a tio n a l B a n k, D avid C ity . T o m A lle n , p re s id e n t, T he O m a h a N a tio n a l B a n k, O m a h a . J a m e s N is s e n , p re s id e n t, N a tio n a l B a n k o f C o m m e rc e , L in c o ln . R o b e rt Z a b a w a , p re s id e n t, A m e ric a n N a tio n a l B a n k, O m a h a . Northwestern Banker, June, 1980 86 Nebraska News O u tg o in g N B A P res. P res. Jerry Roe. Jim McBride re c e iv e s a p la q u e from ne w ations were in the forefront of EFT statewide systems and central switch operations a half dozen years ago. The convention opened Sunday evening with dinner at the Hilton Hotel, followed by a rousing evening of entertainment at the nearby Orpheum Theatre where the Univer sity Scarlet and Cream singers put on one of their dazzling performances for an appreciative audience. They were followed by Pete Fountain and his New Orleans musicians, who staged a non-stop, 45-minute show that had every toe tapping in rhthym. Opening the convention Monday morning at the first business session was the new color sound slide film prepared jointly by Nebraska with several other upper midwest state banker a s s o cia tio n s .lt is titled “ Banking: Good Fortune in the ’80s,” and gives a concise look at the problem s, com p etition and the opportunities ahead for commercial banks in the coming decade. C. C. Hope, Jr., president of the American Bankers Association, was the first platform speaker. Mr. Hope and his wife, Mae, were present for a good share of the Nebraska convention, an opportunity the A B A JIM TUNNEY Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S p e a ke r Clayton Yeutter, p re s ., C h ic a g o M e rc a n tile E x c h a n g e , v is its w ith N B A ’s Roger Beverage b e fo re g o in g on s ta g e . president uses in each state to visit with a great number of bankers and get their feelings about banking problems that are pursued on their behalf by A B A in the nation’s capital. He gave a report on the progress of legislation pending, the recently enacted HR 4986, and discussions now in progress with the White House staff concerning reports now being developed by A B A Task Forces on inflation, energy and federal regulation. Dr. Yeutter said there should have been a set-aside program for 1980, and if there is a big crop in 1980 then that move will be imperative. There could be greater movement of grain through futures exports, he stated. Dr. Yeutter also said it is highly important that farmers and thenbankers understand risk manage ment, which includes the proper use of futures in hedging-in price levels and profits on each crop of grain and livestock. He offered CME facilities for conducting seminars in Chicago or Dr. Clayton Yeutter, president of in communities where desired. the Chicago Mercantile Exchange, Dr. Wayne Dobson, A b b o tt said “ it is hard to be optimistic about 1980, but I have been saying for a P rofessor of Banking at the year that 1980 would be tough. What University of Nebraska, gave a brief astounds me is that no one in the economic outlook, in which he pictur USD A saw that and now they are ed short-term rates fluctuating more, trying to lock the barn door.’ ’ Dr. and long-term rates being responsive Yeutter said “ the grain embargo was to inflation and, therefore, being very damaging and is at the heart of down by the third quarter of this many of our troubles. I felt then it year. He expects a prime of 10-12% was a mistake and still do. Farmers by the end of the year and maybe responded patriotically, but changed lower; a federal budget still unbal their attitude when they discovered anced; unemployment at 7V2 -8 %. He no message was sent to the Kremlin. expects Nebraskans to feel the reces We have handed some substantial sion more than they have in previous markets to our competitors and will recessions, noting there will be lower suffer long-term damage. We will feel demand with “ some banks taking a beating’ ’ with lower profits. the effects of this for years.’ ’ PAUL NADLER GEORGE MORVIS Nebraska News 87 More Nebraska Convention Pictures John Martin, v .p ., O m a h a N a t’ I., a n d 1 s t N a t’ I., B e e m e r. Ray Steffensmeier, p rè s ., John D. Clements, v .p ., a n d Tom Allen, p re s ., b o th w ith O m a h a N a t’ I., v is it w ith John M. Peck, p re s ., 1 s t N a t’ I. B & T , C o lu m b u s . Jim Nissen, p re s ., N a t’ I. B a n k o f C o m m e rc e , L in c o ln , lis te n s to Karl Dickinson, p re s ., G a te w a y B & T , L in c o ln . N B A s ta ff m e m b e rs Marcia Hecox, b o o k k e e p e r; Dave McBride, d ir. o f c o m m ., a n d Kathy Powers, e xe c, s e c y ., w e re in tro d u c e d at th e b a n q u e t. Jim Kruger, e x e c , v .p ., G a te w a y B & T , L in c o ln ; Orrin Wilson, v .p ., N o rth e rn T ru s t, C h ic a g o ; Karl Dickinson, p re s ., G a te w a y B & T , a n d Ham Kerr, c o m m . b k g . o f f . , N o rth e rn T ru s t. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dave Warnemunde, p re s ., W in s id e S ta te ; Gary Stevenson, v .p ., I s t N a t’ I., S io u x C ity , la . , a n d Nancy Warnemunde. Northwestern Banker, June, 1980 88 Nebraska News N B A b u s in e s s m e e tin g p a n e l fe a tu re d , fro m le ft: Roger Beverage, N B A e x e c , v .p .; in c o m in g P res. Jerry Roe, and P a st P re s id e n ts Harold Larmon, p re s ., 1 s t N a t’ l., M c C o o k , and Karl Dickinson, p re s ., G a te w a y B & T , L in c o ln . U.S. Rep. John Cavanaugh made his third straight appearance at the NBA convention and apparently this one was his last in that capacity since he is not running for re-election and will return to his law practice in Omaha. He urged Nebraska bankers in strong terms to reconcile their differing viewpoints on structure, since structure change will be forced on them by national forces and said they would be better served by hav ing some voice in the structure change, rather than continuing in split factions. Dr. Jim Tunney, a Los Angeles business consultant who is better known to millions as one of the National Football League’s top referees, gave an interesting look at “ winners” and “ losers” on and off the sports fields. George Morvis, president of Fi nancial Shares Corp., Chicago, 111., gave a slide presentation on “ Mar keting Bank Services in the ’80s,” that stressed the need for better knowledge of costs, fair pricing, and an aggressive program to restore a better market share to banks in the coming decade. A sobering look at “ Nebraska’s Bud Wolbach, o u tg o in g p re s, o f N E T S , and c h m n . & c .e .o ., 1 s t N a t’ l., G ra n d Is la n d . Northwestern Banker. June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L e g is la to r P anel (fro m le ft): Sen. Dave Landis; Sen. Frank Lewis; Bill Brandt, N B A le g is . c o u n s e l; Sen. John DeCamp, c h m n . o f th e b a n k in g c o m m itte e , a nd Sen. Loren Schmidt. Competitive Financial Picture” was furnished through a set of slides offered by NBA Executive Vice Pres ident Roger M. Beverage. Don Peterson, chairman of the NBA committee on Marketing and E ducation, and m arketing vice president at The Omaha National Bank, followed this with a report on the NBA advertising program. He announced an ad budget of nearly $250,000, which will project NBA into all TV markets in the state with 30 and 60 second commercials. He noted, also, that each of the two largest s&ls in Nebraska spend more than $1 million apiece in advertising. The new NBA commercials were shown and heard by means of special equipment during the program. Dr. Paul Nadler, professor of finance, at Rutgers University, closed the convention with his emphatic remarks on “ what’s right with America!” After reciting all the known facts about the current recession, and again reminding his audience of his long-standing dislike for buying gold, silver, coins, stamps and antiques as inflation hedges, Dr. Nadler said, “ if Congress will support the current inflation fight, we’ll break it. If they try to jack up the economy prior to the election, we will have a disaster.” Pointing to the advent of NOW accounts, Dr. Nadler said “ they will not be your death...they will be the cheapest money you can buy!” Concerning the fear of interstate and national branching, he said if a small town customer has a card with a New York bank and one with a local bank, the customer will undoubtedlyt repay first the local banker whom he knows. “ Ifyou d oyou r jo b ,” he said, “ people will stay with you .” He spoke of the good future for the United States and labeled inflation and energy as our two greatest problems, ones that are receiving attention and will ultimately be resolved. □ Com m ents on Nebraska Bank Structure F o llo w in g are re m a rk s by th e o u tg o in g p re s id e n t, th e in c o m in g p re s id e n t a nd th e P ast P re s id e n t’s C o u c il re p re s e n ta tiv e d u r in g th e b u s in e s s s e s s io n at th e N e b ra s k a B a n k e rs A s s o c ia tio n c o n v e n tio n in O m a h a : James W. McBride, re tirin g N B A p re s i d e n t: T h is has been a b itte r ye a r w ith th e in te rn a l b ic k e rin g a nd f ig h tin g th a t w e have had on LB 491, th e lim ite d b ra n c h b a n k in g b ill, and LB 69, w h ic h w a s th e m u lti-b a n k h o ld in g c o m p a n y b ill. S tru c tu re c h a n g e le g is la tio n has c o m e up on a y e a rly b a s is and ea ch y e a r it is b e c o m in g m o re o f a d iv is iv e fa c to r in lim it in g th e e ffe c tiv e n e s s o f o u r lo b b y is ts a n d w e b a n k e rs in v is itin g w ith o u r s e n a to rs . T o be b ru ta lly b lu n t, th e y are s ic k a n d tire d o f s e e in g us w ith o u r c o n tin u a l fig h t o ve r t h is le g is la tio n . I have m a in ta in e d d u rin g th e p a s t tw o ye a rs w h ile I have se rve d as y o u r p re s id e n t e le c t a nd p re s id e n t a p o s itio n o f b e in g s u p p o rtiv e o f th e p o s itio n th a t w a s ta k e n by th e e x e c u tiv e c o u n c il o f y o u r a s s o c ia tio n . I e nd m y te rm as y o u r p re s id e n t on T u e s d a y , n o o n , so I n o w w is h to s ta te and e x p re s s to e ach o f yo u m y p e rs o n a l p o s itio n o n b o th o f th e s e p ie c e s o f le g is la tio n . I have been ve ry m u c h o p p o s e d to lim ite d o r u n lim ite d b ra n c h b a n k in g a n d m u lti- Don Peterson, c h m n . o f N B A c o m m itte e on m a rk e tin g and e d u c a tio n , a n d v .p ., T he O m a h a N a t’ l. Nebraska N ew s 89 More Nebraska Convention Pictures Harold Stuckey, p re s ., L e x in g to n S ta te ; Bill Smith, p re s ., 1 st N a t’ l., L in c o ln ; Bill Cook, p re s ., B e a tric e N a t’l. B & T , a nd Bob Harris, e xe c, v .p ., 1 s t N a t’ l., L in c o ln . Betty Jo Harris a n d Linda Bieck, w h o s e h u s b a n d s are e xe c. v .p . a n d v .p . o f 1 s t N a t’l., L in c o ln , a nd Paula Beverage, w h o s e h u s b a n d , R o g e r, is N B A e xe c. v .p . = ■ - - Ernie Thayer, p re s ., C o m m e rc ia l N a t’ l., G ra n d Is la n d ; Benton O’Neal, s r. v .p ., 1 s t N a t’l., S t. J o s e p h , M o ., a n d Don LacKamp, sr. v .p ., 1 s t N a t’ l., K a n s a s C ity , M o. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Glenn Adair, e xe c, v .p ., S p r in g fie ld S ta te ; Marvin Hefti, c o rr. bk. Gary Bieck, v .p ., b o th w ith 1 s t N a t’l., L in c o ln , and Jerry McKibbin, p re s ., M in a ta re S ta te . o f f . , a nd G u s Scholz, c h m n ., 1 s t N a t’l., F a lls C ity ; John Burt, reg. a d m . o f n a t’ l. b a n k s , K a n sa s C ity ; Jim Black, p re s ., C o n e s S ta te , P ie rce , a nd Bill Brandt, N B A le g is la tiv e c o u n s e l. ■■H . ' ■ ■ pi ^■ Kirk Reed, c o rr. b k. o f f . , a nd George Acker, sr. v p ., b o th w ith 1 st N a t’ l., D enver, a n d Bob Finke, sr. v .p ., S c o tts b lu ff, N a t’ l. Northwestern Banker, June, 1980 r. 90 Nebraska News Judee Wortman, N B A re c e p tio n is t; Dave Berkheim; Jackie Berk heim, N B A a d m . a s s t, w h o h e lp s s ta g e and s y n c h ro n iz e a ll e v e n ts o f th e a n n u a l c o n v e n tio n e ach ye a r, a n d Kathy Powers, N B A b a n k h o ld in g c o m p a n ie s . C o n tra ry to th e o p in io n o f a t le a s t o n e , if n o t m o re , b a n k e rs , I am n o t s u p p o rtiv e o f a n y g ro u p o f la rg e b a n k s a nd th e ir p o s itio n on th e s e ty p e s o f le g is la tio n . I b e lie v e th a t th e a s s o c ia tio n has se t fo rth in th e p a s t, a n d has th is y e a r e x p a n d e d , an in te re s t in tr y in g to m a in ta in a v o ic e w h ic h re fle c te d th e p o s i tio n o f th e m a jo r ity o f th e b a n k s o f th is s ta te . L a d ie s a nd g e n tle m e n , I have been w ro n g in m y p o s itio n o f o p p o s itio n . It is n o t th e la rg e s t b a n k , th e s m a lle s t b a n k, o r a n y o n e o f us in d iv id u a lly th a t has c a u s e d th e p ro b le m s th a t w e see in o u r le g is la tu re t o d a y. It is a ll o f us and o u r a ttitu d e o f n o n c o m p ro m is e . B a n k in g is c h a n g in g . W e m u s t c h a n g e . W e m u s t c o m p ro m is e . W e m u s t c o m e up w ith a p o s itio n th a t ca n be p re s e n te d to th e le g is la tu re in th is n e x t le g is la tiv e s e s s io n th a t w ill ta k e fro m th e y e a rly c a le n d a r th is in c re a s in g ly b itte r fig h t o ve r th e m a tte r o f s tru c tu re . W e are g o in g to have b ra n c h b a n k in g on D e c e m b e r 31, 1980, th ro u g h le g is la tio n p a s s e d by th e C o n g re s s o f th e U n ite d S ta te s in HR 4986. W e are g o in g to have fu rth e r c o m p e titio n . B ra n c h in g is h ere. L a d ie s a n d g e n le m e n , it is p a s t tim e fo r us to s to p o u r c o n tin u a l fu s s in g a n d w o rry in g a b o u t w h a t o u r c ity b a n k e rs w a n t in th e c h a n g e o f b a n k in g s tru c tu re . W e m u s t have a c h a n g e — n o t fo r th e m , b u t for us to e ffe c tiv e ly c o m p e te fo r o u r s h a re o f th e fin a n c ia l b u s in e s s in o u r c o m m u n itie s a nd o u r s ta te . B e ca u se a b a n k o p e ra te s in a s m a ll c o m m u n ity d o e s n o t m ean it can a ffo rd to o p e ra te as it d id in th e 1900s. W e c a n n o t is o la te o u rs e lv e s fro m c h a n g e s as c o m m u n ic a tio n te c h n o lo g y has m a d e th is im p o s s ib le . L e t us n o t c o n tin u e w ith th e b itte rn e s s o f c o n f lic t so th a t a ta s k fo rc e o u ts id e o f b a n k in g — o r w o rs e y e t, a b ill c o m in g to u s d ra fte d by o u r le g is la tu re — w ill d ic ta te th e fu tu re o f b a n k s a nd b a n k in g in th is s ta te . I g e n u in e ly h o p e th a t th e m a jo r ity o f yo u w ill a n a ly z e th e p ro b le m s th a t e x is t to d a y . T h e y a re ve ry s e rio u s a n d s h o u ld be o f c o n ce rn to a ll o f us in N e b ra s k a b a n k s , re g a rd le s s o f s iz e o r lo c a tio n . Jerry E. Roe, n e w ly -e le c te d N B A p re s i d e n t: I to t a lly a g re e w ith J im M c B rid e ’s re m a rk s c o n c e rn in g th e “ c iv il w a r” w e have been c o n d u c tin g w ith in o u r in d u s try o n th e b a n k s tr u c tu r e is s u e . T h e tim e h a s c o m e fo r Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis e xe c. s e c y , to th e d ir. o f c o m m u n ic . Dorothy McBride, re c e iv e s a g if t fro m ne w N B A P res. Jerry Roe. a re p re s e n ta tiv e g ro u p o f b a n k e rs to s it d o w n w ith o p e n m in d s to d is c u s s th is p ro b le m a nd rea ch a c o m p ro m is e w h ic h w ill e n a b le p e o p le in th e m o n e y b u s in e s s to be a b le to c o m p e te m o re e ffe c tiv e ly in th e m a rk e t p la ce . W ith th e a p p ro v a l o f th e e x e c u tiv e c o u n c il, I have a p p o in te d a T a sk F o rc e to s tu d y th is p ro b le m . T h e T a s k F o rc e w ill be c h a ire d by th e c h a irm a n o f th e b o a rd o f th e O s m o n d S ta te B a n k a n d a p a s t p re s id e n t o f th e N e b ra s k a B a n k e rs A s s o c ia tio n , D ick A d k in s . O th e r m e m b e rs o f th e T a sk F o rce w ill be: T o m A lle n , p re s id e n t, O m a h a N a tio n a l. J im C a m p b e ll, p re s id e n t, U .S . N a tio n a l, O m aha. B ill S m ith , p re s id e n t, F irs t N a tio n a l, L in c o ln . J im N is s e n , p re s id e n t, N a tio n a l B a n k o f C o m m e rc e , L in c o ln . B ru c e L a u ritz e n , vic e p re s id e n t, F irs t N a tio n a l, O m a h a . C la rk C a le y, p re s id e n t, B a n k o f C la rk s . Don J o h n s o n , p re s id e n t, F a rm e rs N a tio n a l, P ilg e r. B o b C o n ra d , p re s id e n t, S id n e y N a tio n a l. G e n e S ta n o s h e c k , p re s id e n t, S ta te B a n k o f O d e ll. T o m O ls o n , p re s id e n t, L is c o S ta te . J im O liv e r, c h a irm a n , C o m m e rc ia l N a tio n ia l, G ra n d Is la n d . Roland Emmett, p re s ., C itiz e n s S ta te , A ra p a h o e , g iv e s s tro n g s u p p o rt to s tr u c tu r e ta s k fo rc e as re p re s e n ta tiv e o f N B A P ast P re s id e n t’s C o u n c il. J im M c B rid e , p re s id e n t, F irs t N a tio n a l, A u ro ra . B ill N e ls o n , p re s id e n t, B a n k o f M illa rd . G a ry P a rke r, p re s id e n t, B a n k o f B e lle v u e . A lic e D ittm a n , p re s id e n t, C o rn h u s k e r B a n k, L in c o ln . H a n k K o s m a n , c h a irm a n , S c o tts b lu ff N a tio n a l. T o m M illik e n , p re s id e n t, F re m o n t N a tio n a l. D uane A c k lie , c h a irm a n , B a n k o f N o r fo lk . B ill D e ite m e y e r, p re s id e n t, F irs t N a tio n a l, N o rth P la tte . T he T a s k F o rc e w ill h o ld a s e rie s o f h e a r in g s th ro u g h o u t th e s ta te , at w h ic h tim e every b a n k w ill have an o p p o r tu n ity to m ake its v ie w s on t h is is s u e k n o w n e ith e r o ra lly o r in w r itin g . T h e c h a rg e to th is T a s k F o rc e is a d i f f i c u lt o n e , b u t I am c o n fid e n t th a t w ith th e q u a lity o f p e o p le w h o have a g re e d to serve, th e y w ill a rriv e at a c o m p ro m is e w h ic h can be s u p p o rte d b y a m a jo r ity o f o u r m e m b e r s h ip . T h e T a s k F o rc e w ill re p o rt its re c o m m e n d a tio n s to th e e x e c u tiv e c o u n c il at th e O c to b e r c o u n c il m e e tin g w h ic h w ill be h e ld in N o r fo lk . U p o n e x e c u tiv e c o u n c il a p p ro v a l, w e w ill th e n p ro ce e d to have th e re c o m m e n d e d le g is la tio n d ra fte d . I am d e e p ly g ra te fu l to th e b a n k e rs w h o have a g re e d to sp e n d th e ir v a lu a b le tim e on b e h a lf o f th e N e b ra s k a b a n k in g in d u s try to serve o n t h is T a sk F o rce . W e w ill keep th e m e m b e rs h ip w e ll in fo rm e d o f th e T a s k F o rc e a c tiv itie s . Roland E. Emmett, s p o k e s m a n fo r P ast P re s id e n ts ’ C o u n c il a n d p re s id e n t, C itiz e n s S ta te B a n k, A ra p a h o e : O n b e h a lf o f th e P a st P re s id e n ts , w h o have a ll s u rv iv e d t h is a n n u a l b a ttle o ve r s tr u c tu r e , w e a p p la u d th e a c tio n ta k e n by o u r p re s e n t le a d e rs h ip and s u p p o rt th e T a s k F o rc e 1 0 0 % . I t ’s tim e th e b a n k in g c o m m u n ity m a d e a c o n s c ie n tio u s e ffo rt to re s o lv e its o w n in te rn a l s tru g g le . I’m an in d e p e n d e n t b a n k e r. I a lw a y s have been and I’m p ro u d o f it. B u t tim e s c h a n g e . C o n c e p ts c h a n g e . W e b a n k e rs have re s is te d a n y c h a n g e o ve r th e y e a rs , a n d th is re s is ta n c e h a s re s u lte d in a s te a d y lo s s o f m a rk e t sh a re . O n e o n ly has to lo o k at th e tre m e n d o u s d e p o s it g ro w th o f S & L s in N e b ra s k a to re a liz e w h a t th e p ro b le m is fo r c o m m e rc ia l b a n k s . T h is is n ’t a q u e s tio n o f c o m p e tin g fo r c o r re s p o n d e n t b u s in e s s by th e fiv e la rg e b a n k s . T h e c o rre s p o n d e n t b u s in e s s w o n ’t Nebraska News 91 Larry Hansen, v .p ., U .S . N a t’l., O m a h a ; Joe Shafer, p re s ., a n d Jo Anne Shafer, a n d Rollie Reynolds, c h m n ., b o th m en w ith B a n k o f N io b ra ra , and Jim Campbell, p re s ., U .S . N a t’l. Bob Hamilton, v .p ., O m a h a b ra n c h — K a n s a s C ity F ed ; Rich Breyfogle, v .p ., T o y N a t’ l., S io u x C ity , la ., a n d Howard Nielsen, v .p ., Loren Anderson, e xe c, v .p ., N a t’ l. B a n k o f C o m m e rc e , L in c o ln ; Vic Michel, p re s ., H e n d e rs o n S ta te ; Willard Jackman, c h m n ., F a rm e rs N a t’l., G ra n t, a nd Wilbur Baack, sr. v .p ., N a t’ l. B a n k o f Ron Krejci, p re s ., S c h u y le r S ta te , and Dorothy; Fred Douglas, s a le s re p ., C h ile s , H e id e r & C o ., In c ., O m a h a ; Janet and Dale Pohlmann, p re s ., R a venna B a n k. C o m m e rc e . Chet Krouse, B a n k B ld g . C o rp ., D enver; Don Stull, c h m n ., G u a rd ia n S ta te , A llia n c e ; Chuck Leffler, c h m n . & p re s ., S io u x N a t’ l., H a rris o n , a nd Helen a nd Jack Moors, c h m n ., A m e ric a n N a t’l., S id n e y . be w o rth ve ry m u c h u n le s s w e b e g in to re a l ize a b a s ic fa c t o f life : W e ’re in th e money business. T he c o n s e q u e n c e s o f c o n tin u in g t h is d iv is iv e , in te rn a l w a rfa re , b e c a u s e p e o p le th in k w e ’re o n ly in th e b a n k in g b u s i n e s s , are o b v io u s to a n y o n e w h o h a s even th e s lig h te s t fa m ilia r ity w ith th e le g is la tiv e p ro c e s s . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U .S . N a t’ l., O m a h a . Jim Kenner, p re s ., T h a y e r C o u n ty B a n k, H e b ro n ; Bill March, p re s ., R o b e rt E. S c h w e s e r C o m p a n y , In c ., O m a h a ; K. L. Stewart, p re s ., C itiz e n s S ta te , P o lk ; Tom Milliken, p re s ., F re m o n t N a t’l.; Dwight Bash, e xe c, v .p ., R e p u b lic a n V a lle y B a n k, O rle a n s , and Bob Roh, v .p ., S c h w e s e r C o m p a n y . W e are p ro g ra m m e d to s e lf-d e s tr u c t as an in d u s try u n le s s , and u n til, w e are a b le to re s o lv e th e s tr u c tu r e is s u e a n d m ove on to th e o th e r c h a lle n g e s w h ic h w e fa c e in tr y in g to im p ro v e o u r a b ilit y to c o m p e te in th e m o n e y b u s in e s s . I have n o id e a w h a t th e re c o m m e n d a tio n o f th e T a s k F o rc e w ill be b u t, w h a te v e r It is, I w ill support it totally. T he T a s k F o rc e is n ’t s ta c k e d o n e w a y o r th e o th e r a nd e v e ry o n e h ere k n o w s it. The key element (w h ic h a ll o f us m u s t re a liz e is e s s e n tia l) is flexibility. W e have to be fle x ib le if w e are g o in g to c o m p e te s u c c e s s fu lly and s u rv iv e in th e m o n e y b u s in e s s . T he P ast P re s id e n ts w is h to c o m m e n d Northwestern Banker, June, 1980 92 Nebraska News More Nebraska Convention Pictures th e b a n k e rs w h o a c c e p te d th e im p o r ta n t a nd d if f ic u lt a s s ig n m e n t o n th e T a s k F o rce . W e a s k a ll o f y o u r to p ro c e e d w ith an “ o p e n m in d ” a n d r e m e m b e r th a t f le x ib ilit y o n b o th s id e s w ill be n e c e s s a ry fo r s u c c e s s . I u rg e a ll o f y o u to jo in us in s u p p o r tin g th e T a s k F o rc e . G e t b e h in d it. T e s tify a nd m a ke y o u r v ie w s k n o w n . P a rtic ip a te a nd th e n h e lp us to s e ll its re c o m m e n d a tio n , w h a te v e r it m a y be. L e t’s b u ry th e s tr u c tu r e f ig h t n o w , th is ye a r, o n c e and fo r a ll. A n d , le t’s d o it on te rm s we p ro p o s e , n o t th o s e w h ic h are fo rc e d d o w n o u r th ro a ts by th e fe d e ra l o r th e s ta te le g is la tu re s . It can be d o n e ; it m u s t be d o n e . Y es, w e ca n s u c c e e d , w ith o u r h e lp a nd s u p p o rt. W e can d o it; w e m u s t d o i t — o u rs e lv e s . Hugh Wilkins, p re s. G e n eva S ta te , a n d Bill Henry, v .p ., 1 s t N a t’ l., O m a h a . Tom Olson, p re s ., L is c o S ta te ; Phil Giltner, p re s ., 1 s t N a t’ l., O m a h a ; Hon. John Cavanaugh, U .S . Rep. fro m O m a h a , and A B A P res. C. C. Hope Jr., v ic e c h m n ., F irs t U n io n N a t’l., C h a rlo tte , Bill Dietemeyer, p re s ., I s t N a t’ l., N o rth P la tte ; Ted Armbruster, p re s ., N e b ra s k a S ta te , B ro k e n B o w ; Don Ostrand, v .p ., 1 s t N a t’l., » O m a h a , a n d Russ Morgan, p re s ., I s t N a t’ l., E lw o o d . N .C . Jim Lutes, p re s ., S c rib n e r B a n k; Tom Poggemeyer, F irs t M id A m e ric a , In c ., L in c o ln , and Frank Brüning, p re s ., B rü n in g S ta te . https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis Dean Kugler, p re s ., G o th e n b u rg S ta te B & T , and Jim Wolf, p re s ., A lb io n N a t’ l. Nebraska News NABW Nebraska State Group Holds 25th Anniversary Meeting B ANK women officers numbering 140 from over the state convened in Kearney at the Holiday Inn April 18-20 for the 25th anniversary meet ing of the Nebraska State Group, Na tional Association of Bank Women. Featured speakers included the regional vice president of NABW , Betty Wagner, assistant credit offi cer, The Omaha National Bank; Robert Moses, vice president, First National Bank in Grand Island; Howard Tracy, a Grand Island attor ney, and Robin Abrams, vice presi dent-adm inistration from Center Bank, Omaha. A seminar entitled “ Managing Executive Priorities” was presented on Thursday, and three modules were given on Friday covering “ Develop ing Employes,” “ Managing the Un- Hastings Bank Offers New Mortgage Refinancing Program Norm Nackerud, president of the First National Bank of Hastings, has announced that a mortgage refinanc ing program designed to provide attractive mortgage financing to home buyers for homes presently financed by the First National Bank is now available. Mr. Nackerud stated that only homes presently financed by the First National Bank qualify for the new Mortgage Refinancing Program. Any present residential real estate loan balance can currently be refinanced at 12.5% interest and additional funds can be advanced over and above that present loan balance up to 80% of the appraised value of a home at the rate of 16% interest. Named at Scottsbluff Bank John A. Koenig, president of the First State Bank, Scottsbluff, has announced two promotions, Evelyn Weinmeister to assistant operations officer, and Sheron Dinnel to assist ant loan officer. Robert Wentz, a former national bank examiner, has been added to the staff as an assistant cashier. satisfactory Performer” and “ Decis ion Making.” Betty Walline, assistant vice presi dent, Platte Valley State Bank & Trust, Kearney, is chairman of the Nebraska State Group and presided at the anniversary con ven tion . Special recognition was given to 14 past state chairmen who attended the meeting, which also marked the final meeting of the Nebraska State Group. There are now 10 separate groups across the state to better enable the members to attend more frequent educational meetings, with less travel involved. One of the groups will host a state-wide meeting an nually, with the 1981 meeting sche duled to be hosted by the Northeast Nebraska Group. Island, recently implemented operat ion of its new central credit depart ment. The officer in charge of the new department is Roger L. Kozisek, credit analyst. This will be an independent depart 93 ment, responsible to the directors and executive officers, working with all loan officers and loan staff personnel. Mr. Kozisek will serve in a capacity similar to the bank’s auditor. He had been a national bank exam iner for the past 12 years with the Comptroller of the Currency head quartered in Grand Island. He is a graduate of Kearney State College with a degree in business adminis tration. Named VP, Dept. Head Pat Cook was promoted to vice president and head of the instalment loan department at a recent board meeting of the First N ational Bank & Trust C o., Kearney. She joined First National of Kear ney in 1977 in the instalment loan department. Her past experience includes I.S.C. Financial House and four years as branch manager of Beneficial Finance of Nebraska. We have been providing banks with advice on tax-free investments for more than 40 years. We are specialists in tax exempt investments and we’re proud of our reputation for service. Why not give us a chance to show what the Schweser team can do for you? Talk to the Professionals in tax-free investments. ROBERT E. Schweser Company ?nn fin 1Qth fit nmiha N»hr RR1OO W 208 So. 19th St. Omaha, Nebr. 68102 INCORPORATED (402) 344-4611 New Department, Officer at First Nat’l., Grand Island Investment Bankers Underwriters In Nebraska call toll free (800) 642-8438 Member of the Securities Investor Protection Corporation The First National Bank, Grand https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 94 four days during the week and a large helium balloon flew over the site. The inside of the lobby was remod eled and two additional teller win dows were installed. A seventh drivein window was equipped to handle large vehicles. * A GRAND re -o p e n in g c e le b ra tio n fo r th e n e w ly -re m o d e le d C e n te r A u to B a n k at 4 5 th a n d C e n te r S tre e t w a s h e ld in la te A p r il. held on Tuesday, Wednesday, Fri day and Saturday with attendance of 127. Buddy Bear was at the Auto Bank Two reasons our service is fast and dependable * * * First West Side Bank has intro duced the convenience of automatic teller machine banking services to its customers by installing ATM s in the main bank at 72nd & Dodge Streets, the Crossroads facility and will add a drive-up ATM at the Millard facility. The new ATM s can be accessed by First West Side Bank’s new banking card or Visa Plus card. The Visa card, which is tied directly to a First West Side Bank checking account, allows customers to deduct purchases di rectly from their checking account anywhere the Visa charge card is accepted. * WES BOWEN TOM GROVE Working with this Big Nebraskaland PACKERS National Bank 24th & 0 • 402/731-4900 Omaha, Nebr. 68107 Member FDIC Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * A new service called Interest Plus Checking has been launched in Omaha by the Banco banks, designed to provide consumers with a way to earn interest on checking account dollars. “ Although we have had automatic transfer checking in the past, we’ve revitalized and are actively promot ing it now because we feel it is a good service to help consumers get more for their money,” said Jim Campbell, U.S. National president. Interest Plus Checking is available at no charge to customers who keep a $900 minimum or $1,600 average balance in their Interest Plus account. Customers who keep $3,000 minimum savings account balances also get the service at no charge. There is a $5 per month fee for other accounts. The Omaha Banco banks are U.S. National, Northwestern National and Center Bank. D URING the week of April 21 the Center Auto Bank celebrated its recent remodeling at 45th and Center Street. On Monday, Money Market customers were invited to have a tour of the facility and receive a free Susan B. Anthony dollar. On Tuesday, Arbor Day, the bank sponsored a special tree planting ceremony. Four burr oaks and eight pfisters were donated to the city and planted in the area just north of the Auto Bank. All during the week customers and neighborhood friends were invited to come in, have punch, coffee and cookies and register for a door prize. Those who visited were given a free packet of flower seeds and ball point pens. Over 4,500 cookies were con sumed. In the upstairs offices at the Auto Bank special one-hour seminars were * * * The Omaha Chapter of the Amer ican Institute of Banking held its elec tion of new board members at the re cent annual meeting. Serving a three-year term will be: Sue Bramlett, data processing, Amer ican National Bank; Catherine Car lin, accounts specialist, Omaha Na tional Bank; Gary Nedved, assistant vice president-operations, Mid City Bank; Sue Stubbs, check processing, Federal Reserve Bank, and Jerry Wil son, manager-bankcard collection de partment, First National Bank of Omaha. I m *W ■ WÊI V I R 'Ir-* ? ^ / M i Jk 4 ,/• It ] N m / » *r ■•*«t T y%-' iJPHr .jk. Jim Flodine, Don Ostrand, Ralph Peterson, Bob Brown, George McFadden, Merv Aegerter. nV ft ust your correspondent banking to our efficiency experts, These superb profes sionals are dedicated to meeting all your individual corres pondent needs. Call us for details on elec tronic data processing cash letter processing, overlines, fed fund transactions; or any other correspondent service. We’ll show you how friendly effi ciency can be. first n a tio n a l b a n k of omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at 800-228-9533. Member FDIC. 96 Nebraska News stant Cash promotion activities con ducted by the banks. Instant Cash affiliated banks in Nebraska currently number seven, with a total of 90,000 cardholders. Up to six more banks will be joining In stant Cash before the end of the sum mer, according to U.S. National President James R. Campbell. Oak Creek Valley Bank Opens in New Quarters The Oak Creek Valley Bank, Val paraiso, is open for business in a new building located at 108 W. Second St. This location is one block east of the former site which had housed the GIVING a new In s ta n t C ash “ B e e tle b o a rd ” its s e n d -o ff are to p o ffic e rs o f O m a h a ’s fiv e In bank since 1907. Customer service s ta n t C a sh B a n k s . F ro m le ft are Harold M. Walton, p re s ., C e n te r B a n k; William A. Nelson, hours have been expanded by over p re s ., B a n k o f M illa rd ; Edward A. Kohout, p re s ., N o rth w e s te rn N a tio n a l B a n k; Dale Heione-third. mann, p re s ., D o u g la s C o u n ty B a n k & T ru s t C o ., (d riv e r) a nd Donald J. Murphy, c h m n ., The new building features a night U .S . N a tio n a l B a n k. depository, expanded private office space, additional safe deposit boxes and drive-up window service. The former bank building, including post Angeles-based marketing firm which IVE Omaha banks participating in the “ Instant Cash” electronic provides Volkswagen traveling bill office quarters, is being donated to the Village of Valparaiso. banking network and the Nebraska board services to major markets. The Omaha Instant Cash banks Electronic Transfer System have en gaged a unique advertising medium have ten Volkswagen beetles special Named Farm Manager at ly designed with graphics of the serv to promote their shared service. The banks, U.S. National, North ice. Owners of the cars live in Omaha Com m ercial, Grand Island Wayne A. Weiss was recently western National, Center Bank, and are paid by Beetleboards Inter Douglas County Bank & Trust and national to have their cars decorated. appointed manager of the newlythe Bank of Millard, are using They will use their cars for normal formed farm management division of “ Beetleboard” Volkswagen traveling travel and for special promotional the Commercial National Bank and Trust Company, Grand Island, ac billboards to spread the identity of events as requested by the banks. “ The B eetleboard advertising cording to E. J. Thayer, president Instant Cash throughout the Omaha medium is intended to heighten and chief executive officer. metropolitan area. Mr. Weiss is a graduate of the Uni According to Deborah Savage, vice awareness of the Instant Cash name president of promotion for Beetle- in the market and to stimulate use of versity of Nebraska and is an experi boards International, many national the card by cardholders,” said Mike enced and licensed realtor. He form advertisers use the “ roller-poster” Novak, U.S. National coordinator of erly was associated with the Farmers National Company of Omaha. He is a medium, but the Omaha banks are Instant Cash consumer marketing. The Beetleboard promotion, slated member of the American Society of the first financials in the country to use Beetleboards for advertising. to run through the summer, supple Farm Managers and has three years Beetleboards International is a Los ments a broad range of on-going In of farm management experience. ‘Beetleboards’ Promotion for ‘Instant Cash’ F ASSET-BASED FINANCING . . . (Continued from page 27) tise, experience and capital necessary to evaluate, fund and administer asset-based loans. Commercial finance companies are uniquely qualified to help banks fill the capital crunch facing small busi nesses. Years of working with small- and medium-sized firms in every conceivable industry, have given inde pendent commercial finance organizations the back ground necessary to understand the credit needs and credit risks of small businesses. When small banks utilize independent commercial finance organizations, they not only give their custom ers access to this valuable expertise, but are able to also maintain their depositor and other relationships with these customers. Often, participation arrangements Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis create a favorable rate for the small business customer that results from the blending of the bank’s and the com mercial financier’s rates. From the borrower’s stand point, this partnership arrangement gives him access to the capital he requires, while he is able to maintain his relationship with the local bank that services so many of his financial needs. Meets Needs of the Customer As demand for asset-based financial services tends to increase along with the rate of inflation, participation with independent finance companies assists banking or ganizations in meeting the needs of their customers. If inflation has deepened the capital void facing small busi nesses, then, working together, small banks and inde pendent commercial finance organizations can help fill this gap. In so doing, they can both take advantage of significant new business opportunities. □ 97 You learn a lot about Correspondent Banking in 136 years... Experience is one o f the most important assets o f our Correspondent Banking Division. The nine officers o f this division have a total o f 136 years o f specialized experience in dealing with the unique problems and goals o f correspondent banking. And our people give you the kind o f service you need and expect to build for the future. Call us and find out what 136 years o f experience can do for your bank. Wilbur Baack Senior Vice President Duane Nelson Vice President Tom Stuckey Vice President Bob Deahn Vice President Brad Korell Vice President Steve Kness Assistant Vice President Max Callen Assistant Vice President Irene Rezac Correspondent Bank Officer Donna Bieck Correspondent Bank Officer The Correspondent Banking Division of NBC : Building on a firm foundation 'M ' l f e / 1 l l J 9 V N ation al B ank o f C om m erce The Bank w ith th e P lu s Member FDIC NBC Center, 13th & O St., Lincoln, Nebraska 68508 Telephone (402) 47 2-43 21, WATS 800-742-7317 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 98 Nebraska News Nebraska Bank Deposits Near $9 Billion EBR ASK A’S 454 commercial banks held total deposits at 1979 year-end of $8,961,584,000 according to figures contained in the 1980 edition of the Nebraska Bank Direct ory, published by the N o r t h w e s t e r n B a n k e r . This represented a growth of 9.39% in deposits over the 1978 yearend total of $8,192,150,000. Loans continued to grow at a faster pace. The 1979 year-end total was $5,908,002,000, up 12.28% over the total of $5,261,705,000 for the pre ceding year. A break-down by type of banks shows Nebraksa’s 117 national chartered banks held $5,233,963,000 in deposits on December 31,1979, for an average per bank of $44,734,726. The 337 state chartered banks had deposits of $3,727,621,000, an aver age per bank of $11,061,189. The 117 national banks held $3,338,826,000 in loans at 1979 yearend, for an average per bank of $28,964,324, a loan/deposit ratio of 64.745%. The 337 state banks had $2,519,176,000 in loans, an average per bank of $7,475,299, for a loan/de posit ratio of 67.581%, representing their higher ag lending needs. The loan/deposit ratio at state banks was up four percentage points over the 1978 L /D ratio of 63.72%. Nebraska’s population is estimated by state officials at 1,573,946. The total bank deposits of $8,961,584,000 average $5,693 per person, a gain of 9.4% over the 1978 figure of $5,205 per person. Based on the above population estimate and a total of 454 banks, there is one Nebraska bank for every 3,482 persons. N Bank Sponsors Contest Fairbury State Bank is sponsoring its third annual Essay Contest for stu dents from Jefferson and adjacent counties, according to Will Else, presi dent. The $3,275 scholarship event will feature prize money ranging from a $100 educational savings account as top prize in the 7th and 8th grade category to a $1,600 four-year schol arship in the 11th and 12th grade category. Nine student winners will receive a good start on a college educa tion. They will be announced at Fairbury’s 4th of July celebration. First National, Holdrege Announces Appointments Louis G. Titus, president of the First National Bank, Holdrege, has announced the promotion of two officers and the election of three new officers. Glen J. Ander son was named senior vice presi dent and Ken neth J. Slominski was promoted to G. J. ANDERSON vice president. K. J. SLOMINSKI " Serving the Midwest... A. L. ERICKSON 'l FIRST MID AMERICA INC. B. M. LINDGREN • Municipal Bonds • Fiscal Agents • Corporate Bonds • Listed and Unlisted Securities • Government Agency Bonds • Investment Banking P. M. PETERSON New officers elected include A. Lucille Erickson, assistant cashier and auditor; Bernice M. Lindgren, assist ant cashier-benefits, and Patricia M. Peterson, assistant cashier. Observes 100th Birthday Municipal Bond Department 100 Continental Building 19th & Douglas Omaha, Nebraska 68102 Call collect 402-444-1900 First Mid America SIP C Member New York Stock Exchange. Inc and other Principal Stock and Commodity Exchanges CORPORATE AND MUNICIPAL BONDS • GOVERNMENT AGEN CIES STOCKS • COMMODITIES • OPTIONS • INVESTMENT BANKING Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic • Cedar Rapids • Des Moines • Fort Dodge • Marshalltown • Chicago • Kansas City • Wichita https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis The First National Bank, Grand Island, is observing its 100th anni versary year during 1980. To com- * memorate the occasion the bank hosted a unique celebration recently. During the two-day event, the bank commissioned a local bakery to “ build” what is believed to be the largest cake in the State of Nebraska —8’ by 5’ weighing over 2,200 v pounds. Cake and soft drinks were served to the over 3,000 people who attended the event. Local dignitaries were present along with the Secretary of State A1 Beerman. “Skip the frills. Just tell me in 100 words why United Missouri Bank computer processing is better and more dependable!” “We have tested and proven systems and procedures.” “That sounds like ad talk! D oesn’t e ve ryb o d y? ” “Not everybody has systems that are geared to what banks really need.” “ You’ve already used up m ore than 20 words. What do banks really need that you h a ve ? ” “What banks really need is a system that takes work in at night and gets it out every morning, not just most mornings.” “ Why c a n ’t every com pute r processor do th a t? ” “Because most haven’t tailored their operations to do the meat-and-potato jobs most subscribers need most. Their systems are over-designed, over engineered, too complex.” “A n d y o u rs . . . ? ” “Ours is highly sophisticated, but simple and flexible.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “Okay, you r system is sophisticated, b u t sim ple an d flexible. Focused on w hat banks really need. B ut so far th a t’s ju s t you talking. What do other pe ople say about h o w g o o d your system is ? ” “ I can tell you what an impartial profes sional said about us: ‘Well managed. Smoothly functioning. Quality data service.’” “Actually, th a t’s close to w hat we heard. And, con gra tulatio ns!” “What for?” “It took you only 91 w o rd s !” UNITED MISSOURI BANK OF KANSAS CITY, N .A . COMPUTER SERVICES DIVISION 10th and Grand Kansas City, Missouri 64141 Member FDIC Northwestern Banker. June, 1980 100 Corten steel sculpture, was erected in April in the mini-park area of Citizens State Bank in University Place. Four months in production, the sculpture was set by crane and welded into specially designed foot ings. Scheduled for sandblasting im- v mediately before installation, “ Plains Rhythm” will quickly begin to weather to the familiar “ rusted” patina. And although the piece weighs nearly two tons, “ it will move and flex in the wind,” says sculptor Peragine. Lincoln IRST National Lincoln and Elec tronic Data Systems Corp., Dallas, recently announced the sign ing of a long-term agreement under which EDS assumed the responsibil ity for First National’s data process ing operation, including personnel, equipment and software. Accordingly, the data processing services provided by First National through its extensive on-line data processing network will be further enhanced by utilization of the re sources of the nation’s largest data processing facilities management company. Widely recognized as a pioneer in data processing and an innovator in developing advanced systems for fi nancial institutions, First National is the largest processor of computerized services for correspondent banks in Nebraska. It presently provides data F processing services to more than 150 banks in Nebraska, of which most are served in an on-line mode. * * * National Bank of Commerce will continue its series of Sheshunoff semi nars when it brings Alex Sheshunoff to Lincoln on June 18. He will speak on "Profitably Meeting the Challenge of NOW Accounts.” Included in the session will be how to price, introduce and implement NOW accounts as well as how to com pete more effectively for profits in this area. Registration will begin at 8 a.m. The business session will be at 9 a.m., lun cheon is at noon and adjournment is scheduled for 4 p.m. Sculptor Dan Peragine’s “ Plains Rhythm,” a 14 foot high, two-ton SCULPTOR Dan Peragine, left, and Eames y Irvin, pres., are pictured at the dedication of Call Steve Sutton For Complete Credit Insurance Service . . . “ Plains Rhythm” at the Citizens State Bank Mini-Park location. The Peragine sculpture marks the completion of Citizen’s Mini-Park at 48th and Baldwin, begun in the sum- * mer of 1978. Carl Kjeldgaard Call Toll Free in Nebraska 800-742-7335 or call collect 402-475-4061 Steve W. Sutton Vice President Bank Programs for Group • Individual Life • Accident & Sickness LIN CO LN (jOe/te/rf LIFE Where BENEFIT is more than a middle name Lincoln, Nebraska 68508 https://fraser.stlouisfed.org Northwestern Banker, June, 1980 Federal Reserve Bank of St. Louis Carl Kjeldgaard, 89, chairman of the Farmers State Bank in Big Springs, died recently in an area hos pital. He and other family members purchased the bank in 1916 and he remained active in the business until his death. Mr. Kjeldgaard attended the Uni versity of Nebraska and served in the Army during World War II. Among his survivors are his wife, Vieva, and sons Franklin, president of Farmers State, and Wayne, vice president and cashier. * 101 Specialists in fulfilling your every correspondent need... GARY L. BIECK Vice President \ WILLIAM E. EDGECOMB Vice President MARVIN HEFTI CRAIG E. WANAMAKER STEVEN L. ANDERSON Vice President Assistant Vice President i Correspondent Bank Officer KATHY M. VOTAW Correspondent Bank Officer X <- V W MARK A. ZABACK Correspondent Bank Officer FIRST NATIONAL LINCOLN 13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501 Phone: (800) 742-7462 Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 102 Work w ith a Bankers’B anker Don Carmody, V ice President Correspondent Banking Department Don Carmody and our other correspondent bankers provide a full range of services to banks of every size. We can arrange overlines and loan participations, wire transfers, data processing and trust services . . . all tailored to your local needs. Backing us are the full resources of Bankers Trust, one of Iowa’s largest independent banks. We can give you prompt, informed answers to any questions you may have. Don and our correspondent banking staff look forward to working with you. We’re growing! Come grow with us. Bankers ilhist Come Crow W ith us IIWl Correspondent Bank Department Des Moines, Iowa 50304 Member: FDIC/Federal Reserve System Use our toll-free WATS line: 800-362-1688 Des Moines' largest locally owned, independent bank Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103 crease of 12.21%. The biggest in crease was in one year when the loan/ deposit ratio increased from 59.87% to 65.09% during the year of 1977. Iowa Promoted at Davenport Bank L. H. O lson , p r e s ., S io u x City N. M ilner, e x e c , v .p ., D es M oines Iowa Bank Deposits Top $17 Billion Joseph A. Grubisich Jr. has been promoted from assistant vice presi dent and trust officer to vice president and senior trust offi cer at the First Trust & Savings Bank, D aven port, according to D a v id A . Shern, president. Mr. Grubisich is a graduate of J. A. GRUBISICH the University of North Dakota and has a law degree from the University of Iowa. He was district prosecutor for the 7th Judicial District, which includes Scott County, prior to join ing the bank in 1978. IGURES contained in the 1980 Loans for the 554 state chartered edition of the Iowa Bank Direct banks totaled $8,068,616,000, an ory, mailed last month by the N o r t h average of $14,564,288 per bank, for a w e s t e r n B a n k e r , show that deposits loan/deposit ratio of 68.217%. in Iowa’s 653 banks rose during 1979 Iowa’s population, as estimated to a new high of $17,074,841,000, an July 1, 1978, by the State of Iowa, is increase of 9.33% over the 1978 year- 2,896,000. The total bank deposits of end level of $15,617,915,000. $17,074,841,000 average $5,896 per Loans showed a slightly higher citizen, up 9.32 % over the average in rate of growth, increasing in 1979 at a 1978 of $5,393 per person. 10.75% level to $11,466,333,000, up Based on the above population more than $1 billion from the 1978 estimate and a total of 653 banks, year-end figure of $10,353,313. there is one Iowa bank for every 4,435 Iowa’s seven registered multi-bank people. holding companies, which own a total Iowa bank deposits have grown Advanced at Waterloo of 72 banks, including several of the from $11,803,209,000 at 1975 yearDale K. DeKoster, president and largest in the state, held total de end to their present total of more than chief executive officer of the Waterloo posits of $4,598,788,137 at 1979 year- $17 billion, an increase of 44.66% in Savings Bank, has announced the end, a 12.74% increase over their five years, for an average growth per promotion of David A. Mulnix to total deposits of $4,079,137,185 at year of 8.93 % . Loans grew at a faster consumer loan officer. the end of 1978. Assets of the seven pace, increasing from $7,120,284,000 Mr. Mulnix has a BA degree in holding companies were up 12.75 % to at 1975 year-end to their 1979 total of business education and joined the $5,603,901,785 from the 1978 level of nearly $11.5 billion. This was a five- bank in July, 1979, as a management $4,970,110,177. These holding com year jump of 61.04 % , for a yearly in- trainee. panies held 26.9% of all Iowa deposits at 1979 year-end. Individually, each holding company may own up to 8 % of the state’s commercial bank depo sits. That figure, based on 1979 data appearing in the Iowa Bank Direct ory, is $1,365,987,280. The closest company to that ceiling at this time is Northwest Bancorporation. Its 11 Iowa banks had total deposits of $1,224,436,849 on December 31, 1979. The average deposit total for each of the 72 holding company banks was $63,872,000. Iowa’s 99 national banks held total deposits in 1979 of $5,247,055,000, THE NEW facility for the First National Bank, Oelwein, is expected to be completed by for an average per bank of early fall. $53,000,555. IARRY Young, chairman of the pository operable from the automo The 554 state banks in Iowa had First National Bank in Olewein, bile, three inside teller stations, a new deposits of $11,827,786, an average has announced that construction is accounts area and a large vestibule to per bank of $21,349,794. underway on a new drive-up/walk-up accommodate an ATM for 24-hour All 653 Iowa banks combined had facility. service. On site parking will also be an average of $26,148,301 per bank. Located on West Charles across provided. Loans for the 99 national banks at the street from the main bank, the The Kirk Gross Company of 1979 year-end were $3,397,717,000, new facility will have three drive-up Waterloo is responsible for the pro an average of $34,320,000 per bank lanes with expansion for two addi ject. Completion is expected in four to for a loan/deposit ratio of 64.754%. tional lanes as required, a night de five months. F Oelwein Bank Constructs New Facility H https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 104 IowaNews Iowa Groups Discuss Dramatic Changes in 1980s By MALCOLM FREELAND Publisher TOKEN GIFT is presented by IBA Pres. Leslie H. Olson to Christy Arm strong, a past president. 6i 1 ^ RAM ATIC changes will occur in the commercial wJ banking business in the 1980s, and management will have to adjust to these changes.” This was the message presented by Leslie H. Olson, president of the Iowa Bankers Association and president of the Toy National Bank, Sioux City, at the annual group meetings held in Iowa last month. Public Law 96-221, known as the 1980 Depository In stitutions Deregulations and Monetary Control Act, will in Mr. Olson’s opinion create many problems, as well as opportunities for commercial banks. The Act includes a phase-out of Regulation Q; pre-emption of state usury laws; opening of the Fed discount window to all financial institutions, as well as demanding reserves from them. NOW accounts (interest-bearing transaction accounts) will be offered on a nationwide basis. On or before July 1, the Fed will publish details of the Act. Mr. Olson expressed concern over the decline in market share held by commercial banks, and voiced con cern over the alarming growth by credit unions and money market funds. He stated that credit unions are growing by 19% annually, having total funds of about $60 billion. Milner Report Neil Milner, executive vice president, IBA, told SERIOUS MOMENT for IBA Pres. Leslie H. Olson and Tom H uston, supt. of banking. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis members that the Nebraska Electronic Transfer System may join the Iowa Tranfer System in processing items through the ITS system. He warned members that credit unions and savings and loan associations are moving rapidly in the field of EFT and will perhaps share the same terminals with banks. It is important for banks to secure key locations while opportunities are still avail able, according to Mr. Milner. Mr. Milner also discussed the new Iowa usury bill, now effective, and described the growth of Iowa Bankers Insurance and Services. Premiums in 1979 passed $5 million and dividends were over $500,000. The hiring freeze established by the State of Iowa is a real concern to the Iowa Department of Banking, accord ing to Tom Huston, superintendent. Mr. Huston said that his department now has 14 unfilled positions, and 12 of the 14 are field examiners. In addition, Mr. Huston said that reports are taking more time to complete and to type. Consequently, the banks are paying for 29 to 32 hours of examination time, and the Department pays for 40 hours. Projected deficit is $300,000 on a total budget of $2.4 million, so the Department plans to adjust previous examination fees by rebilling time. Mr. Huston expressed concern over banks not paying attention to amount of sold loans, stating in numerous instances banks have a loan/deposit ratio of over 100 %. He suggested that banks not now on an accrual basis, should adopt this form of accounting so as to know what their costs and margins are at all times. New Officers New officers were elected in Group 8 and Group 4 during the first week of the meetings. Group 8 elected as chairman Clark Houghton, president, First National Bank, Iowa City, and as secretary David Malloy, vice president, Farmers Trust & Savings Bank, Williams burg. Group 4 elected as chairman John Mangold, senior vice president, Merchants National Bank, Cedar Rapids, and as secretary J. Bruce Meriwether, executive vice president and cashier, The First National Bank, Dubuque. Groups 6, 2, and 12 were to elect officers as this issue went to press. A report on the second series of group meetings will be published in the July issue, covering Group 5, 6, 2 and 12. * r * t > r W it h the k in d o f in fla tion w e 'v e got to d a y , o n uub m a r m i an d c lo se ly regu lated serv ices as p ro p rieto rsh ip y o u r c u sto m ers are lo o k in g b e y o n d p a s s b o o k a c - p e n sio n p la n s, co rp o ra te p ro fit sh aring p la n s, K e o g h c o u n ts , a n d ev en b e y o n d C D s , to fin d b etter w a y s p r o to ty p e p la n s o r c u s to m H R -lO s . to m a k e their m o n e y w o r k h ard er fo r th e m . P rivate N o t tru e. W it h the assistance o f o u r c o r r e sp o n - in d iv id u a ls a n d sm a ll b u sin essm en alike n eed the den t b a n k in g te a m , b a c k e d up b y o u r fu lly -sta ffe d k in d o f help o n ly y o u , their b a n k e r, trust can p r o v id e th ro u g h a w id e v a r ie ty s a v in g , o f c a refu lly a dm in istered trust _ you can p r o v id e the m o n e y - in f la t i o n -f i g h t in g s e r v ic e s Y e t , y o u m a y feel y o u aren't e q u ip p e d to o ffe r su ch h ig h ly specialized American ¿SkTrust G Savings Danl^ Town C lock Plaza Dubuque, Iowa 52001 Phone: 319/582-1841 " With our help there's ab solutely no reason w h y any bank o f any size can't provide its customers with a full range o f growth-oriented, m oney saving opportunities." https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis your Learn how easily your bank can provide its customers with all the trust services they need by calling Bernie Miller today at 319/582-1841. The Benl^qf O pportunity Member F.D.I.C. & F.R.S. th a t c u sto m ers are b egin n in g to d e m a n d , fcdSjily services. d e p a rtm e n t, 106 Iowa News LEFT—Chmn. of Gr. 4, John Mangold, sr. v.p., Merchants Nat’l. Bk., Cedar Rapids, and wife, Mary, and secy, of Gr. 4 Bruce Meriwether, e.v.p. & cash., First Nat’l. Bk., Dubuque, and wife. RIGHT—Robert C. Wede, pres., Goose Lake Sav. Bk., and outgoing chmn. of Gr. 8; Neil Milner, e.v.p., Iowa Bkrs. Assn. Des Moines, and Clark Houghton, pres., First Nat’l. Bk., Iowa City, and new Gr. 8 chmn. % LEFT— Clarence “ Bud” Cross, a.v.p., First Nat’l. Bk., Cnicago; the Mark Arnssons, chmn., Clear Lake Bk. & Tr. Co., and L. G. Hix, pres. First Nat’l. Bk., Waverly. RIGHT—Don Kimmel, new e.v.p., United Home Bk. & Tr., Mason City; Jim Schmitz, corr. bk. rep., First Nat i Bk., St. Paul; Ed Maloney, Citicorp, New York, and Joe McChristian Jr., a.v.p., Citibank, New York. .EFT—Ben Eilders, sr. v.p., Bankers Tr. Co., Des Moines; Hamilton Kerr til, comm. bk. off., NorthernTr. Co., Chicago, and Orrin Wilson, ’.p., Northern Tr. Co. Chicago. RIGHT—Jack Nielsen, pres., First Nat’l. Bk., Mason City; C. M. Frudden, chmn., and Victor M. Meyer, ires., Commercial Tr. & Sav. Bk., Charles City, and wife, Phyliss. EFT—Churchill T. Williams, chmn., and Bill Wilson, pres., Oelwein St. Bk., and H. Peter DeRosler, v.p., Nat’l. Blvd. Bk , Chicago. IIGHT—Bob Popple, sr. v.p., Dubuque Bk. & Tr. Co.; Cy Kirk, v.p., Central Nat’l. Bk. & Tr. Co., Des Moines; Mrs. Lynn S. Fuller; Mrs. opple- Lynn S Fuller, e.v.p., Dubuque Bk. & Tr. Co., and Jim Schmitz, comm. bk. off., First Nat’l. Bk., St. Paul. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 107 “The Drovers Difference” starts here. Ì H ÊS I UJANl TÖ FLOOR-- you CAN'T SET TH£RF PPOM S E - F T H £■ p r e s id e n t . HERE/ W h en you correspond with Drovers you have a direct line to the full senior m an agement team. Starting with President Frank Bauder, Sr. Executive Vice Presi dent Jim C arm ody, and Executive Vice President Bob C orey. T hey’re backed up by som e of the best corres pondent bankers in the business. People like John Crotty, M ax Roy, Andy Ruments and Kathy Hardy. V Iô r  H P K I U E T ù m TÍ 8AKJ< Drovers people are “The Drovers Difference.” T hey’re the reason the bank’s correspondent accounts have just about doubled in under two years. S o if you're looking for more service with your services . . . Put us to the test! Just pick up the phone and call Frank, Jim, B ob, John, M ax, Andy or Kathy. Y o u deserve “The Drovers Difference.” Member Federal Reserve System Drovers Bank of Chicago 4 7 th S t r e e t & A s h l a n d A v e n u e , C h i c a g o , IL 6 0 6 0 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (312) 9 2 7 -7 0 0 0 Northwestern Banker, June, 1380 108 IowaNews Photos Taken at Group Meetings 8, 4, 7 & 3 ' SPEAKER at Gr. 3 was W illiam B. Hummer, Chicago inv. dealer, shown with O. Jay Tomson, chmn., Gr. 3, and pres., Citizens Nat’l. Bk., Charles City. RIGHT—Wes Johnson, Des Moines; C liff Avon, a.v.p., First St. Bk., Britt; DonCarmody, v.p., BankersTr. Co., Des Moines, and Roger Arwood, a.v.p., Bankers Tr. Co., Des Moines. LEFT—Christy and Barbara A rm strong, pres., American Tr. & Sav. Bk., Dubuque, and Allen G. Wolkey, v.p., Federal Reserve, Chicago, a speaker at Gr. 4. RIGHT—Officers of Gr. 7 are secy., W illiam J. Beohm, pres., Tama St. Bk., and chmn., Ron Fenton, pres., Security Savings Bk., Marshalltown. LEFT—Tom Dunlap, candidate for v.p. of IBA and pres., South Story Bk. & Tr. Co., Slater, and M ilt Hennick, sr. v.p., Nat’l. Bk. of Waterloo. RIGHT— Homer Jensen, Ind. Management Serv., Des Moines; Ron Meyer and Ron Dougherty of Iowa Bkrs Ins. & Serv., Des Moines. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 109 W hat makes IBIS so successful? People. People like Jim Jensen and Bill Carr. Jim and Bill have the training and years o f experience needed to effectively service your bank’s specific needs in the areas of Blanket Bond and Directors’ and Officers’ Liability insurance. Their expertise has been helping Iowa Banks build “The Right Combination” o f corporate security coverages for years. A t no charge to you, IBIS will carefully evaluate your bank’s insurance requirements and design a Blanket Bond and/or Directors’ and Officers’ Liability package to m eet those requirements. And best o f all, w e guarantee to give you competitive quotes from the leading insurance companies in the nation. Call Jim or Bill soon for information about the comprehensive bank insurance coverages offered through your Iowa Bankers Association m em ber-owned insurance agency. Iowa Bankers Insurance & Services, Inc., 430 Liberty Building, Des Moines, Iowa 50308 (515) 286-4300 Call our toll FREE WATS number 1-800-532-1432 The right com bination. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 110 IowaNews Plan 9th Annual MB Convention LANS are being finalized for the ninth annual convention of the Iowa Independent Bankers scheduled for the New Inn at Okoboji, July 1719, according to IIB President Rich ard W. Buxton, president, Peoples Trust & Savings Bank, Indianola. Speakers for the convention in clude: Mary G. Roebling, chairwo man, National State Bank, Trenton, New Jersey and Women's Bank, Den ver, Colorado; Clifford L. Peterson, senior vice president and director, P Deere & Company, Moline, and San ford Rose, associate editor, American Banker, New York. Special events will include a couples golf tournament, tennis tour nament, and fiesta, all to be held on Thursday, July 17. A special party for junior independent bankers will be held the same day. The men’s golf tournament will again be held on Friday, July 18, starting at noon. A luncheon for reg istrants will be held on Saturday noon, July 19, and the annual barbeque will again be held on Saturday evening, July 19. Mason City Bank Elects 2 The board of the First National Bank, Mason City, has announced the election of Calvin D. Hubregtse as an agricultural loan officer and Robert Sleep as a correspondent banking officer. C. D. HUBREGTSE You’re Invited to a Prize-Winning EVENT! Iowa Independent Bankers 9th Annual Convention July 17-19, Lake Okoboji Special Events July 17, couples golf tournament July 17, tennis tournament July 18, men’s golf tournament Key Speakers Mary G. Roebling, chairwoman, National State Bank, Trenton, N.J. Clifford L. Peterson, senior v.p. & director, Deere & Company, Moline Sanford Rose, associate editor, American Banker, New York Send your convention registration to: Iowa Independent Bankers, 222 Equitable Bldg., Des Moines, Iowa 50309. Telephone 515/244-4201. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. SLEEP Mr. Hubregtse began his banking career at the First American Bank, Fairview, S.D., in 1976 and served there most recently as an assistant cashier in the agricultural and instal ment loan areas. He has a BS degree in business administration from the Uni versity of South Dakota. Mr. Sleep, most recently associated with Lemon and Company Realtors in Cedar Rapids, has a banking back ground holding positions with Citizens Savings Bank in Anamosa, Merchants National Bank Computer Services and City National Bank of Cedar Rapids. He attended Iowa State University. Joins Fort Dodge Bank Lee Griffin has joined The State Bank, Fort Dodge, in the newlycreated position of vice president and director of marketing, according to Richard Smith, president. Mr. Griffin was most recently re gional sales manager for Land O’ Lakes in Fort Dodge. He has a degree in agricultural business from Iowa State University. Joins Ocheydan Savings C. E. Spengler, president of the Ocheydan Savings Bank, has an nounced that Paul R. Dorr has joined the bank as an agricultural repre sentative. Mr. Dorr was formerly a farm loan officer with the Mutual Benefit Life Insurance Company. He has a BS de gree in agricultural business from Iowa State University. * 111 The Iowa Team of the Harris Bank. Jim Hill, Dick Ristine, and Tom Martin 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; Dick, (312) 461-2747; or Tom, (312) 461-7512. 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 60603. Member F.D.I.C., Federal Reserve System. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 IowaNews 112 New Building v For Kirk Gross Co. IRK Gross Company, wellknown designer and builder of financial facilities, recently moved into new quarters in Waterloo. L o cated off Highway 412 and adjacent to Crossroads Shopping Center, the new facility consists of 5,000 square feet of office space and 11,500 square feet of attached warehouse space. The office portion includes two offices, a conference room for presen tations and a large unique area (approximately 3,000 square feet) devoted to architectural, design and construction support staff. This area was created entirely with out any permanent walls or function al lighting in the ceiling. All the light ing, commonly called task and ambi ent lighting, is an integral part of each work station. This “ open plan/ office landscaping“ system is com pletely movable and creates an ex tremely functional work station. A blueprint room, fireproof blue print vault, employe lounge and rest rooms are also located in the office portion. An unusual 16’xlO’ wall of oak and mirrors greets clients in the main entrance. “ This wall concept worked so well for one of our bank projects we decided to duplicate it ourselves,” said Jerry Gross, presi dent. The attached warehouse is 144 feet long and is devoted to storage of furn iture and fixtures for bank building projects and construction materials. Serviced by three 16’ high receiving doors, the warehouse has ample room for expansion in all directions. K AMBASSADORS— Craig Shirey, left, presents the key to the city to Dick Zahn and Jerry Gross of Kirk Gross Co. as other Waterloo Ambassadors look on. t PICTURED above is the exterior of the new Kirk Gross building in Waterloo. Below, is the interior of new building as seen from the reception area. ♦ Carol Sm ith, a long-time employe of Kirk Gross Co. Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IowaNews 113 Staff Promotions Told at Peoples Trust, Indianola A t a recent meeting of the board of Peoples Trust & Savings Bank, Indianola, T. J. Nicholls was elected corporate secretary of the bank, Farmers Credit Corporation and Peoples Company of Indianola. Peggy Wickett was appointed secre tary to the board of each corporation and Dick C. Stoffer was appointed commercial loan officer and assistant trust officer of the bank. Mr. Nicholls has been with the bank for over 30 years. In addition to his new responsibilities he is vice president and cashier of the bank and treasurer of Peoples Company. With the bank for 15 years, Ms. Wickett has served as receptionist and executive secretary. She will assume additional responsibilities assisting the president, the board of directors and the trust department. Mr. Stoffer will continue assisting business and commercial loan cus tomers. Additionally he will assume new responsibilities in trust services. Delaware County Bankers Announce New Officers Donald R. Huber was elected presi dent of the Delaware County Bankers Association at a recent meeting in Dyersville. Mr. Huber is vice presi dent and office manager of the Citi zens State Bank of Ryan. He suc ceeds Charles P. Geers Sr., vice president of the Dyersville National Bank. Other officers elected for the com ing year were: vice president—Steven A. Brady, cashier, Community Sav ings Bank of Edgewood, and secre tary/treasurer—Michael W. Dunn, vice president and trust officer, Farmers & Merchants Savings Bank of Manchester. Wilma Weeks, Ken Roeder, Jim Hongslo, Wayne Johnson and Jim Young W e’re people you can count on for data processing. At western Iowa’s largest bank, we’re people. People you can count on for data processing and all your corre spondent banking needs. Security Bank people know data processing and how to make it work for you. They understand the special needs of agriculturally oriented banks. And we have a second full-service data processing center close to you in Mitchell. For data processing, ag lending, overlines and investments, start corresponding with Security. W e’re people you can count on. W e’re m ore than Western Iowa’s largest bank. W e’re people. Two Join Belmond Bank Doug Hartmann has joined the North Iowa State Bank, Belmond, as an assistant vice president, according to Dean Kechely, president. Mr. Hartmann, who will be responsible for agricultural finance, was formerly with Acco Seed Company in the re search department. Steve Miller of Ellsworth, Wis., has joined the bank as an instalment loan trainee. He is a recent graduate of the rural banking and agriculture finance program of the Red Wing, Minn., Area Voc.-Tech. Institute. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SECURITY NATIONAL RANK SIOUX CITY IOWA 51101 • 712/277-6600 • MEMBER F.D.I.C. ) 1980 Security National Bank Northwestern Banker, June, 1980 114 Cherokee Bankers Organize The Cherokee County banks re cently formed the Cherokee County Bankers Association to improve and promote the banking industry in the county. Elected as officers were: president— John B. Keeline, president, Central Trust & Savings Bank, Cherokee; vice president — John W. Christensen, president, Farmers National Bank, Aurelia, and secretary-treasurer — Kenneth N. Watts, cashier, Central Trust & Savings Bank, Cherokee. The group will hold quarterly meet ings on a regular basis to increase pub lic awareness of bank services and benefits. HE president and chief executive officer of Bankers Trust Com pany, Herman C. Kilpper, recently announced that Ed Redfem has join ed the administrative staff in the newly-created position of director of communications. Mr. Redfem joins Bankers Trust from the staff of Governor Robert D. Ray, where he served as administrat ive assistant. He previously worked at the White House under President Gerald Ford. The communications division of the administrative offices will work with all areas of the bank and help de velop new services and programs for the staff and customers. T * * * Raymond G. Johnston, president and chief executive officer of Central National Bank & Trust Co., has an nounced two personnel changes. Ivan L. Johnson has assumed the title of senior vice president and will be responsible for national accounts, development of secondary market sources and non-lending financial services. With the exception of those functions for which Mr. Johnson is re sponsible, Harry A. Wilmer has been named to head the commercial loan department. I. L. JOHNSON H. WILMER Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Johnson joined Central in 1948 and has worked in marketing, lending and general administration. Mr. Wilmer joined the bank in May, 1979, as vice president in commercial loan. He was previously with the First National Bancorporation in Denver and served with three of its subsidiary banks. He has a BA degree in political science from Colorado College. * * * Staff changes were announced at the recent annual meeting of Brenton Banks, Inc. Harlan D. Sterk, president and trust officer of the Jefferson State Bank, was elected to the holding com pany’s board of directors. He has been with Brenton since 1965 and was named senior vice president in 1972. Duane A. Danielson, EDP auditor, was elected an officer of Brenton Banks. He has been with the firm since 1975. Steve Schuler, who joined Brenton Banks in 1977, has been promoted from auditor to audit mana ger. Sandra Holan, who has been with the company for six years, was promoted from assistant personnel administrative officer to personnel administrative officer. IBMC Closes Home Loans The Iowa Bankers Mortgage Cor poration has reached a major mile stone with the closing of its first two loans, according to Sam Callahan, president. The loans included a VA loan origin ated by the corporation through the Farmers State Bank in Jesup and a conventional loan through Bankers Trust Company, Des Moines. Several other home loans are currently being processed, according to Mr. Callahan. In making the announcement, Mr. Callahan praised the 126 Iowa banks that initially elected to participate in the corporation, the largest instru ment for marketing home loans on the secondary market in the country and the only such company in existence. Three Promoted at Hills The board of the Hills Bank & Trust Company has announced the promotion of three bank officers, according to John R. Hughes, pres ident. James Gordon has been promoted to vice president and trust officer, and Dwight Seegmiller has been named vice president. Rose Meer has been named assistant vice president * * * in charge of customer services. Mr. Gordon has been trust officer J. Merrill Anderson of Newton,and will continue to head the trust vice chairman and treasurer of department. Mr. Seegmiller had been Central National Bankshares, Inc., assistant vice president and will con recently received special honors for tinue to serve in the loan department service as a member of the Blue Cross as well as directing marketing and of Iowa board of directors. Mr. An advertising. Both men joined the derson received the personal thanks bank in 1975. of D. Eugene Sibery, plan president, Mrs. Meer, who has been with the for his past 10 years of service and a bank since 1957, most recently served commemorative award. as customer service representative. 115 The Decision Room This is the room where your Central Notional investment counselor helps you chart your financial future. Our professional investment analysts hove over 60 years combined experience. With our know-how and the latest accurate, up-to-the-minute market information, w e con tell you when to buy. What to buy. When to sell. At the touch of a button, CNB has access to world w ide market information with Munifocts, Telerate and Bunker Romo. And w e feature a computerized Fed Fund System to facilitate efficient Fed Funds transactions. We also offer a complete bond analysis system. Come in and talk to any of our investment professionals. They will know just w hat your portfolio needs . . . money market investments, government securities, municipal bonds, commercial paper . . . and how to get it. With os little red tope os possible. Buying or selling, or just getting market information is w hat our investment departm ent is oil about. If you w ont professionals working for you, coll James C. King at the Central National Bonk, (5 1 5 )2 4 5 -7 0 7 0 . “C ” Central National Bank & Trust Company DES MOINES (515) 245-7111 MEMBER FDIC LOCUST AT 6TH/5TH & GRAND/35TH & INGERSOLL WDM: 3400 WESTOWN PKWY./501 E. ARMY POST RD. AFFILIATED WITH CENTRAL NATIONAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1980 116 IowaNews First National Bank in Sioux City Plans $5 Million New Facility ICHARD C. Taylor, president of the First National Bank in Sioux City, recently an nounced plans for construction of a new main bank facility which will be located on the ban k ’ s present site at 5th and Pierce Streets. Planning for the project began in 1978 and the R- c - TAYLOR new facility is scheduled for complet ion in early 1982. The new building will be a fourstory structure occupying approxi mately 80,000 square feet. The con struction cost is estimated to be $5 million. According to Mr. Taylor, “ This new building project is an ex pression of our confidence in the future of Sioux City and the Siouxland area. “ It will ensure that the most effi cient banking facilities are available for our customers’ present and future R needs.” He emphasized, “ Contract work will be provided locally which will add stimulus to the local economy.” During the new building construct ion, the bank’s main facility will be temporarily relocated in the Warrior Tower at 6th and Nebraska Streets. The renovation of the first two floors of that facility has begun and is esti mated to be completed in about three months. The main bank’s offices, lobby, 24hour Instant Access Banking, walkin and drive-in facilities will be moved to that site later this summer. The re location facility will accommodate all of the financial services presently available at the 5th and Pierce Streets location. New VP at Hawarden Bank Ken Hultquist has joined the Farmers State Bank, Hawarden, as a vice president. Most recently he had served as a vice president at the Northwestern State Bank of Orange X h e t e a ï® g& SB facility City for the last eight years, and previously was associated with the First State Bank in Hawarden. B IC S, Inc., Cedar Rapids, Names Directors, Officers Donald R. MacKay, vice president of Merchants National Bank, Cedar Rapids, and William C. McCormick, executive vice president of Banks of Iowa Computer Services, Inc., were recently elected to the Banks of Iowa Computer Services board of direct ors, Cedar Rapids. Joseph Phemetton, president of BICS, also announced the election of six new officers. Brian Phillips was elected vice president; Tom Ander son, Steve Rominger and Brian Scott were elected assistant vice president; Uraina Evans was elected secretary, and Lawrence D ’Souza was elected comptroller. In addition, Larry Eilers was pro moted to marketing manager, and Ed Brunsting was promoted to chief EDP auditor. Farmers State, Marion Tells of Staff Changes Morris F. Neighbor, president of the Farmers State Bank, Marion, an nounced several personnel advance ments following the bank’s recent shareholders meeting. Kim Nelson was promoted to vice president and manager of the Hiawatha office. New officers elected include Eula Wood, personnel officer; Johna McBumey, bookkeeping offi cer; Sue Boddicker and Judy Easterday, assistant office manager, and Nancy McKern, executive assistant. New SBA District Director OÍBnan< J o n u o V o fo X ” c O R P O R W 'o N calerlo».'o'« M1W (319) 2M-465' Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Conrad E. Lawlor has been named district director for the U.S. Small Business Administration for Iowa. He succeeds J. Harold Sears who trans ferred from Iowa to Harlington, Tex. The Iowa SBA office has the largest portfolio in the United States. The state has one of the highest loan vol umes according to population, with fewest amount of delinquent loans. Mr. Lawlor was named SBA’s Re gion VII’s regional director in Kansas City from 1977 to September, 1979. He joined SBA as branch manager of the Des Moines office in 1964 and in past years served in various key executive positions for the agency in Region VII. From 1965-70 he was district director in St. Louis and Des Moines. IowaNews 117 A UPPER LEFT— Luin Cox (extreme left), chmn. of the IBA mgmt. comm, and pres, of First State Bank, Belmond, listens to other c.e.o.’s discuss a management situation at a round table discussion. UPPER RIGHT— Dave M cN ichols (standing), IBA staff v.p., provides some background material in response to a question from another round table discussion group. LOWER LEFT— Speakers Thomas Salsbery and Nancy Nemitz check notes with Kenner Swedburg (standing left), member of IBA mgmt. comm. & pres., 1st Nat’l., Woodbine, and Mr. M cN ichols. LOWER RIGHT— Katherine Fisher, human resources dir. of the IBA, chats with Iowa bankers before starting her work shop on personnel practices. 120 Bankers Attend Iowa C .E.O . Conference By BEN HALLER, JR. Editor N HIS welcoming remarks to 120 bankers attending The Bank CEO , Conference conducted in Ames re cently by the Iowa Bankers Associ♦ ation, IBA President Les Olson re counted how the philosophy of bank ing has changed: y “ It has gone from conservatism in pre-World War I I ,” he recalled, “ to abundance of money during World War II with no loans and low invest ment return, to almost riskless bank ing in the late ’40s and ’50s when al most any business starting up would * succeed. In the late ’70s we reaped the bad harvest of ill-advised business teaching from some major univer sities. We brought in credit cards, which deteriorated our monopoly on checks. W e’ve given away our lead in I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis banking by a lack of attention to the banking business itself. “ Now, we’re looking at ways as CEOs to regain our leadership. A good executive is not one who knows how to do everything, but one who knows where to find the answer and how to do it with a good staff.” A series of talented speakers then took the platform in the next day and a half to share results of their experi ences with key situations and prob lems that are uppermost in the minds of all bank management. George Wright, senior vice president at European-American Bank in sub urban Westbury, N .Y., related why his bank elected to hold back and not be the first to jump into NOW ac counts. He gave a detailed rundown on steps his bank followed in making its successful entry into this special ized market that will become nation wide next December 31. Jack O. Weatherford, chairman of the A B A community bankers divi sion and chairman and chief executive of Murfreesboro Bank & Trust Co. in Murfreesboro, Tenn., used numerous slides to depict the competition for funds, and banking’s market share loss to thrifts and credit unions and, more recently, to money market mutual funds. He noted the constant outreaching across the nation of large banks and holding companies with offices and credit cards, stating this calls for a total re-thinking of tradi tional, competitive marketing con cepts. He predicted bank mergers and some failures in the coming decade after looking “ at the real world” of competition. He cautioned the c.e.o.’s at the conference to “ know the market and know what it wants.” Three workshops in the afternoon were provided on compliance, per sonnel practices, and subpeonas and confidentiality. Nancy L. Nemitz, Northwestern Banker, June, 1980 118 IowaNews Morningside Office Planned for Security Nat’l. corporate compliance officer for First Bank System, Inc., Minneapolis, showed why she holds that respons ARIOUS city and bank officials ible position with her presentation attended the recent ground that left each attendant shaking his breaking ceremonies for Security head. She said, “ compliance is even worse than anyone thought it would National Bank’s new Morningside be.” The workshops were repeated office. The branch site is located at Sergeant Road and Lakeport A ve later in the afternoon. Spread management and invest nue, across from the Southern Hills ments were the last two topics the Mall in Sioux City. The new 3,800 square foot facility second morning. They were handled will offer a full range of financial serv by James W. Bruce Jr., senior vice president, Liberty National Bank, ices to include five drive-up lanes, Oklahoma City, and Harold Hollis automated teller machine, night de ter, senior vice president-invest pository and safe-deposit boxes to ments, United Missouri Bank of serve the Morningside area. The building will be constructed of Kansas City. □ brick and cedar siding with plans for extensive landscaping. When com pleted in early November, the con Top Management Changes venient location will provide a pictur esque view for those in the area. At Keystone Savings Bank Robert G. Roese, executive vice president of the Keystone Savings Bank, has been elected president. He board meeting. J. H. Milroy will con succeeds Roland A. Hellwig who is tinue to serve as chairman of the retiring from active duty after 35 board. years of service to the bank. Mr. Hellwig will remain in an advisory capa Named VP, Sr. Loan Officer city. Daniel Engler has joined the First Steve L. Wilson has been named executive vice president and Grace National Bank, Sibley, as vice presi Wiese was elected cashier at a recent dent and senior lending officer, accord V BANK and city officials break the ground for Security National Bank’s new Morning side office. ing to Leo E. Carlson Jr., president. Mr. Engler was formerly a vice presi dent at the National Bank of Wash ington and previously managed its Ainsworth office. He has a degree in agri-business from South Dakota State University and replaces Ray Dirksen, formerly vice president and farm representa tive, who has taken a position with the Ocheydan office of the Sheldon Produc tion Credit Association. Joins Morningside State t o f f KIR K G R O S S C O 110 East 7th Street Waterloo, Iowa 50705 Phone 319-234-6641 Ask for Dick or Jerry TURNKEY BUILDING SPECIALISTS! Call it a trend. Call it a concept. Call it anything you want. A Turn Key program from the Kirk Gross Co. is by far the most desirable way to handle your building or remodeling program. Because when Kirk Gross Co. takes over, you get architectural design, interior design, and construction that is coordinated, functional, economical, and downright beautiful. You also get rid of a lot of problems you will have if you try to do all those things yourself. Because Kirk Gross Co. does it all. Our record speaks for itself. Check us out! Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jack B. Conley, president of Morningside St at e Ba n k , Sioux City, has announced that Robert Lennon has j o i ne d the bank as assistant vice president in charge of consum R. LENNON er lending. Mr. Lennon formerly was a dealer service representative for a local Sioux City bank and has held management posi tions with several consumer finance companies. He graduated from Regis College in Denver in 1961 with a BS degree in business administration. IowaNews Currency as an assistant national bank examiner since 1973. Mr. Deischer was recently promot Formation of The John Fitzgibbon ed to the position of regional director Corporation in Des Moines has been for customer and community pro announced by grams for the Tenth National Bank John R. Fitzgib Region, which includes the states of bon. The firm Iowa, Nebraska, Kansas and Mis offers experienc souri. ed, professional He is a native of Webster City and service to banks is a graduate of Central Washington and businesses State College in Ellensberg. for financial con sulting, as well Announce Staff Changes as mergers and At Williamsburg Bank acquisitions. The J. R. FITZGIBBON new firm is lo Justin L. Collier has resigned as cated at 3101 Ingersoll Ave., Des vice president of the Farmers Trust Moines 50312 (515/274-0398). and Savings Bank, Williamsburg, Mr. Fitzgibbon is widely known according toO bertL . Larson, chair throughout the upper midwest, hav man and president. Mr. Collier has ing served nearly 28 years with affili accepted a position as executive vice ates of Northwest Bancorporation. president of the Williams Savings He retired in February, 1980, as Bank, Williams. chairman and chief executive officer During the annual meeting of the of the Iowa-Des Moines National board of directors, the following pro Bank, the largest bank in the state. motions were also announced: John He was elected president and chief R. Jones was promoted to vice presi executive officer of the bank in 1969, dent and trust officer, June Von Ahand also became chairman in 1974. sen will take charge of instalment Under his leadership, Iowa-Des loan collections and Joyce Jones was Moines National grew from $284.5 promoted to head teller. million in 1969 to $663.8 million at the end of 1979. Staff Promotions Told at A native of Nebraska and a gradu ate of the University of Nebraska in Merchants, Cedar Rapids Four vice presidents have been Lincoln, Mr. Fitzgibbon began his banking career as an ag rep with First elected by the board of directors of National Bank in Hastings, Neb., in Merchants National Bank, Cedar 1952. He later left that Banco affiliate Rapids. Larry H. Christy, comptroller, was to become vice president at First Northwestern National Bank of named vice president and comptroller. Wi nona, Mi nn. , then accepted Advanced from assistant vice presi appointment as president there dent to vice president were Calvin W. before moving to the Iowa-Des Moines National in 1960. John Fitzgibbon Opens Consulting B u sin ess Named New Bank Officer JoAnn Parker has been elected a loan servicing officer at the Peoples Bank and Trust Company, Waterloo. She joined the bank in 1973 as a secre tary in the commercial loan depart ment. Ms. Parker also has worked in the mortgage loan department and most recently was assistant manager at the bank’s office in the Crossroads Shop ping Center. Receives Com m ission Dennis R. Deischer of Kansas City, M o ., has received his commission as a national bank examiner. He had been employed by the Comptroller of the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R. L. FOUST J. N. TRUDO 119 Coquillette, Robert L. Foust and Jerry N. Trudo. Judy K. Everett was named a trust officer and Jimmie D. Henley was named an assistant vice president. Seven new officers were elected. They are Steven L. Caves, mortgage loan officer; Donna R. Garnett, person al banking officer; Randall L. Kuehl, credit card officer; Catherine I. Reed, check processing officer; James A. Sangster, commercial loan officer, Gretchen K. Sealls, international banking officer, and William W. Wil liams, assistant trust officer. WALTER BIMSON . . . (Continued from page 40) doubled he would still only have a $12 million deposit bank! Soon after taking over Valley Na tional, Mr. Bimson was joined by his brother, Carl, and together they formed a 37-year working partner ship which endured until their joint retirement in 1970. Walter Bimson initiated many firsts as a banker at Valley National. With his previous experience in what is now called marketing, he aggres sively began “ selling loans’ ’ by send ing out bank employes to call on busi nessmen, homeowners, farmers and ranchers, putting money into the hands of people who found a source of capital previously not available to them. This concept of “ creative credit,” as Mr. Bimson termed it, helped build Arizona and has been widely imitated, of course, nation wide. The validity of the concept was proved by the negligible losses sus tained. Savings deposits climbed as well. Valley National made Arizona’s first FHA loan and by 1935 year-end ranked fifth in the nation in FHA loans out of 6,000 participating banks. It was the first bank to open an instalment loan department; the first to establish a G .I. loan division and a small business department; the first Arizona bank to provide drive-up banking. Mr. Bimson’s outside activities in support of Phoenix and all of Arizona were so numerous they would fill more than one volume. His affinity for art, both native Indian and current artists, resulted in lifelong support for and recognition by artists and their organizations. His leader ship in bringing new businesses to Arizona pre-dated the advent of formal business development coun cils by communities and states. Northwestern Banker, June, 1980 i, In the DIRECTORS’ ROOM Perfect Gift Sign in a pet store: “ Give the gift that keeps on giving—a female cat.” Collecting Debts A friendly collection letter reads as follows: “ Hello, there. I am the company’s computer. So far, only I know that you haven’t been making regular payments. However, if I haven’t processed a payment from you within ten days. I will tell a human.” Just than a kangaroo suddenly came up behind him and bounded by. The startled Texan exclaimed, “ What in tarnation was that?” Calmly his host answered, “ They don’t have grasshoppers in Texas?” Hay Tale A kind-hearted farmer told the forlorn lad, whose load of hay had overturned in the road, to forget his troubles and come in and have dinner with his family. It would be time A enough to right the hayrack after a good meal. The boy demurred, saying he didn’t think his father would like it. But the farmer persisted and won. After dinner the boy said he felt better and expressed his appreciation for the hospitality. But he still insisted that his father wouldn’t like it. “ Nonsense!” said the host. “ By the w ay,” he added, “ where is your father?” “ He’s under the hay!” said the boy. * Golf Fanatic The wife of a golf fanatic said to her husband: “ Junior told me that he caddied for you this morning.” “ That’s it!” exclaimed the golf addict. “ I knew I ’d seen that kid before.” Texan Outdone The Texan, being shown around a vast ranch in Australia, was refusing to be impressed. “ Why, this would just be a teensy little corner of my spread back home,” he said. “ Nice,” he said of a huge herd of grazing cattle, “ But they’d be lost among my herd.” INDEX OF ADVERTISERS Ju n e ,1980 Acorn Printing Co........................................................... 12 American Bankers Assn.....................................19, 20, 21 American Express Money Orders ............................... 13 American Express Travelers Cheques . . . 35,37,39,41 American Nat’l. Bk. &Tr. Co., Chicago ......................47 American National B k.& Tr. Co., St. Paui ..................57 American Trust & Savings Bk., Dubuque ..................105 Banco Financial/Lease Northwest ..............................71 Bank Building Corp.......................................................... 22 Bank of America N. A ...................................................... 83 Bankers Trust Co., Des Moines ................................. 102 Brandt .........................................................................121 Central Nat’l. B k.& Tr. Co., DesMoines ..................115 Citicorp Travelers Cheques ......................................... 11 Continental Bank, Chicago ......................................... 43 Control-O-Fax .............................................................116 Correspondent Resources, Inc...................................... 25 Northwestern Banker, June, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Daktronics .....................................................................10 Dawson Hail Ins. Co....................................................... 26 DeLuxe Check Printers.................................................... 3 DeLuxe Check Printers (Forms Div.) .............................. 9 Denver Nat’l. Bk...............................................................81 Diebold, Inc........................................................................7 Drovers Bk. of Chicago ............................................... 107 Douglas Guardian Field Warehouse Co......................... 16 Downey, C.L.....................................................................24 First M id-A m erica.........................................................98 First Nat’ l., Casper .......................................................77 First Nat’l. Bk., Chicago .................................................23 First Nat’ l. Bk., D enve r................................................69 First Nat’ l. Bk., Glendive ............................................66 First Nat’ l. Bk., Lincoln ............................................ 101 First Nat’ l. Bk., M ilesC ity .......................................... 66 First Nat’l. Bk., Minneapolis ...................................... 51 First Nat’l. Bk., Omaha ..............................................95 First Nat’ l. Bk., St. Paul ..............................................61 First Nat’l. Bk., St. Paul (B o n d s )................................ 56 First Nat'l. Montana Bk., M is s o u la ..............................67 Gross Co., Kirk, Waterloo ......................................... 118 Harris Bank, Chicago ................................................. 111 Iowa Bkrs. Ins. & Services ......................................... 109 Iowa Independent Bkrs.................................................110 lowa-Des Moines Nat’l. Bk...........................................122 Islander Beach Lo d g e ...................................................... 8 KookerCo., Earl, Spencer ......................................... 118 Lincoln Benefit Life ................................................... 100 * Manufacturers HanoverTr. Co.........................................5 Merchants Nat’l. Bk., Cedar Rapids ..............................2 Midland Nat’l. Bk., Minneapolis ..................................55 Mortgage Guaranty Insurance Co.............................14-15 MoslerSafeCo.......................................................................33* Nat’l. Bk. of Commerce, Lincoln ..................................97 Nat'l. Blvd. Bk., Chicago ............................................. 44 Northern Tr. Co., Chicago ............................................. 17 Northwestern Nat’l. Bk., Minneapolis ..................48,64 Northwestern Bank, Helena ....................................... 67 Northwestern Bell .........................................................53 Packers Nat’l. Bk., O m a h a ........................................... 94 Schweser&Co., Robert, O m a h a ................................. 93 Security Bank, Billings ............................................... 68 Security Nat’l. Bk., S io u x C ity ................................... 113 Sheshunoff ...................................................................59 Stockmen’s Bank, Gillette ........................................... 78 United Bank of Denver ................................................. 80 United States Nat’l. Bk., Omaha ................................. 84 United Missouri Bank, Kansas City ............................99 Van Wagenen, G.D..........................................................18 BRANDT INTRODUCING A SYSTEMS APPROACH TO CURRENCY PROCESSING The Brandt® Model 873 Currency Processing System Ideal for night deposits, commercial accounts and vault operations, the 873 processes each of your accounts systematically! Currency, foodstamp, check and coin values are accumu lated and totaled automatically. De nomination value, programmed batch and accumulated count are all dis played on an e a s y -to -re a d LED display. And the paper tape printout answers the need for an on-the-spot, comprehensive hard copy audit, and fast, accurate day-end balancing! Systems processing, keyboard, LED https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis display, paper printout - these fea tures alone make the 873 totally unique. But there’s more! Denomina tion, foodstamp, check and coin values are stored all day long by a microprocessor controlled memory system. The 873 can help you solve some tough currency handling problems. It counts brick currency to mute quickly, accurately. A variable speed control plus new low-profile stacker combine to give you convenient discrimination of currency . . . lets you spot a wrong denomination fast. Doubles detection provides the con- fidence you need to handle a volume of currency. And a counterfeit de tection aid is available for even more security. The 873 even self-cleans for a minimum of maintenance! Brandt, Inc. offers more than a cur rency counter. We offer a system. The Model 873 Currency Processing System. Brandt Youdon’t haveto golong-distance forbig investment service. There are larger banks in bigger cities. But when it com es to your investment needs, no bank anywhere offers bigger or better service than the professional staff of the Iowa-Des Moines Investment Department. We have a full range of investment services including Bond Accounting which allows us to work closely with you and your bank in the planning of your bond portfolio. And, we now have up-to-the-minute information on tax swap availabilities through an on-line terminal. Every member of our staff is an experienced professional who can assist you in your investment decisions. And your investment with an Iowa bank is an investment in Iowa. Call us to get a lot of help for your money, right here in Iowa. IOWA . nesMoines m JF A Banco® A NATIONAL BANK M em ber FDIC Lynn Horak Roger Mahoney John Johnson Barb Estey Tom Naughton ©1980 Iowa-Des Moines National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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