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Port of Duluth at Sunrise

Convention Programs: Minnesota • Montana • W yom ing
Convention Reports: Nebraska • South Dakota
• for
FRASER squeezes
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

Vice President


Vice President

Vice President

Vice President

(319) 398-4313

(319) 398-4320

(319) 398-4306

(319) 398-4314

(319) 398-4217



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


* Som ebody has to set the standards*




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SALES HDOTRS • P.0. BOX 43399,
Federal Reserve Bank of St. Louis



JU N E 1980 • 87th Year No. 1401



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.


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


Fed Governor Wallich reviews asset problem

36 Bankers have tough decisions


Continental Bank seminars present current analysis

2 ¿




œ in



0) ©



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



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Bank Promotions
Corporate News
What’s New
Twin Cities


jjj «

North Dakota
Des Moines
Advertisers’ Index

1 *

1 ©
o DO
2 o
8 °

30615th Street, Des Moines, Iowa 50309

Phone (515) 244-8163



Business Manager

Malcolm K. Freeland

Ben Haller, Jr.

Mike Freeland

Associate Editor
Deborah Peck


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
Federal Reserve Bank of St. Louis



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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
Federal Reserve Bank of St. Louis


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.

America’s premier correspondent bank
National Division, 350 Park Avenue, New York, N.Y. 10022
Northwestern Banker, June, 1980


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,
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,
Oct. 19-23—IBAA Bank Executive Develop­
ment Seminar, Ball State University,
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.
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,
Nov. 16-18—ABA National Correspondent
Banking Conference, Hyatt Regency, At­
lanta, Ga.

Feb. 15-18—ABA Community Bank Execu­
tives Conference, Hyatt Regency Phoe­
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
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.
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,
Aug. 17-23— IBA Consum er Lending
School, Eastern Illinois University,
Nov. 19-20—IBA 35th Annual Bank Man­
agement Conference, Holiday Inn, De­
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
Aug. 11-15—Iowa Instalment Lending
School, Drake University, Des Moines.
Sept. 21 -23—94th Annual Convention, Civic
Center, Des Moines.
June 16-17—90th Annual Convention, Du­
luth Arena Auditorium, Duluth.
June 22-27—Minnesota School of Banking,
St. Olaf College, Northfield.

June 25-27—77th Annual Convention,
Broadmoor Hotel, Colorado Springs,
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,
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.
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
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.




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Federal Reserve Bank of St. Louis



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
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


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




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^>©S & A Inc.)
Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis




Bob Abboud Resigns As
First Chicago Chairman
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. _ _
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.

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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
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Bank Promotions


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m o u n t a in



ROMOTIONS and other changes
have been announced by the
following banks:


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

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Phone 605-692-6145

Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis



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,
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
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.



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
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-


This travelers check
is going places.

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U.S. Currency

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NEW YOAK, N.Y., U. 8.A.

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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
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980

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
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
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.


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


thf; aco r n printing g o .

Oakland, Iowa

Northwestern Banker, June, 1980
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
Named assist­
ant vice presi­
dent were Rich­
ard J. Aberson,
international de­
partm ent, and
James A. WatR , arfrson



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
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
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
Andrew M. Jarmel and Raymond
C. O’Brien were promoted to the
position of vice president in the trust
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
Kathleen M . Hogan was named an
investment officer in the trust depart­

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


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 .


American Express FIMO. The money-making money order.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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
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.


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.


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
Federal Reserve Bank of St. Louis



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
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
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!
□ 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
_______________________________________________ J
*Snap is available in the states where
negative amortization mortgages are authorized.


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
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


ROMOTION S and other changes
have been announced by the
following firms:


inventory loan
floor plan
lending institutions

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
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.
Quirk, president.
M r.
Joh n son
takes com plete
responsibility for
all international
operations of the
company, includ­
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



offices in 15 principal cities
with Executive Offices
in New Orleans, LA
P.O. Box 52978, 70130

Northwestern Banker, June, 1980
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
Brandt, Inc., Watertown, Wis.:



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

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



A s*

it. n
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.


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

For Installm ent Loans
• Automated
• Manual



call or write:

T K 7 g .d . v a n
1678 Northwestern Bank Bldg.
Minneapolis, MN 55402
(612) 333-2261

v ____________ _ Z ___________ J

Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis



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.
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
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
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
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



Is adding

toyour advertising
budget worth

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)


© 1980 American Bankers Association
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980

December, 1978, Mr. Schneider was
with Sentry Life Insurance Co. of
Stevens Point, Wis.

Wfe don't just
build buildings.
We build
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

We’ll build you a business.

Banker, June, 1980
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
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
officer at General
Mills Corp. He will also be a member of
that firm’s management policy com­
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


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
“ 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

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980



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



■ Precision made on special machines from finest quality
■ ’ 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
■ 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 /


Name _________________ ___ __________________________________________________ Title_
Firm ___________________ ___________________________________________________________________
A ddress______________________ _________________________________________________________
City____________________ __ ______________________________________________________ State.



Banker, June, 1980
Federal Reserve Bank of St. Louis





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
$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


announces the formation of

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

Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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!



HAIL ° °
O o

We welcome Dennis and Norm to our staff.

Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis


BOX 1820 FARGO, ND 58107



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


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
Federal Reserve Bank of St. Louis

Written Especially for
T he N orthwestern B anker

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
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


Financial statements:

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


Northwestern Banker, June, 1980
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
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


“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
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
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
• 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
• 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,
Federal Reserve Bank of St. Louis

affects the current and quick ratios in the following
• Cash payments for fixed assets reduces current
• 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
II. Have these changes in the income statement
strengthened or weakened the firm’s financial
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
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
(Turn to page 34, please)
Northwestern Banker, June. 1980



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?


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
The market could be skeptical also of the quality of
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

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
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,
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


“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
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
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.
One very obvious implication about which the
banks unfortunately are unable to do anything relates to


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Northwestern Banker, June, 7980


“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.
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
(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
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.
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
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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


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
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
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
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
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 %.

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doesn’t go home at
five o'clock.
We’re there
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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
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Northwestern Banker, June, 1980






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
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
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.


Mosler’s Econo Door.

Northwestern Banker, June, 1980
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


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
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.



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travelers cheques are lost or stolen.
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tolbfree, they can arrange for an
Emergency Refund® at participating
Holiday Inns throughout the U.S.
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business hours resume—when they
can get the balance o f their refund.
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Northwestern Banker, June, 1980


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
Alan J. Weber
has been named
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
“ 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


Northwestern Banker, June, 1980
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
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
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
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
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)


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
get refunds any day
o f the year.

Am erican Express
Travelers Cheques
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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
services reached
Mr. Richley said FRIs will be pur­ an all-time high,
chased at a discount. At maturity, with both finance
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.
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,
M ay 21 in St.
Mr. Cole said that earnings for the
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


Banker, June, 1980
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

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
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
Manufacturers Hanover is provid­
ing initial capital, computer facilities,
research and operational back-up
services to the firm.


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 Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60693
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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.


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

Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis


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.
A ssist Business
Mr. Sircy is a 1978 graduate of
Development Program
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
Located at 1013 Burlington Avenue
at the west end of Western Springs’
downtown shopping district, the office
is being enlarged to include four drive
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

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.
* * *


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
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
Mr. Michas joined the bank in 1970
as a management trainee, rose




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,


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 •


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
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.


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
Federal Reserve Bank of St. Louis

Of Minneapolis





First Vice. Pres.

Second Vice Près.

Exec. Vice Pres.

90th Annual

Minnesota Bankers
Association Convention
June 16-17
Duluth Arena Auditorium

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
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

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
9:00 Men’s Golf Tournament, Northland and Ridge­
view Country Clubs.
9:00 Tennis Tournament, Duluth Indoor Tennis Club.


Northwestern Banker, June, 1980


Minnesota Bankers
Association Convention
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
3:00 Hospitality Rooms open.
6:00 First Night Party, Duluth Arena Auditorium.
9:00 Hospitality Rooms open.
Tuesday, June 17
7:00 Registration open, Duluth Arena Auditorium.
7:30 Prayer Breakfast, Duluth Arena Auditorium.

9:00 Ladies’ Hospitality Center opens, Duluth Arena
9:30 Ladies’ Tour of Glensheen Mansion.
9:30 First Business Session, Duluth Arena Auditor­
Noon Luncheons
• Ladies, Radisson Hotel.
• Pioneer and MBA Past Officers, Duluth Arena
• Delegates, Duluth Arena Auditorium.
2:00 Second Business Session, Duluth Arena Auditor­
2:30 Ladies’ Hospitality Center open, Duluth Arena
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,
assistant vice president and director
American National Bank: Richard
of marketing.
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
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.


Northwestern Banker, June, 1980
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.


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.
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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
gan his banking
career in 1958 and previously served
in a number of positions with various
subsidiaries of Northwest Bancorporation.










* * *

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.
* * *


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


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
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.
* * *
Lease Northwest, Inc., a fullservice equipment lease and finance
company, has announced the ap­
pointment of James D. Sheedy to


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
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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
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
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
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
ployed by California banks since
1974 and has a BS degree from Man­
kato State College.



Northwestern Banker, June, 1980
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,
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
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-


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
*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.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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
Corporation. Before joining Banco,
Mr. Hinnenthal was a vice president
Management Changes Told
in commercial lending for Northwest­
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
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
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
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



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
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.
Federal Reserve Bank of St. Louis


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.


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
Federal Reserve Bank of St. Louis

R ich a rd
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
in various capa­
cities at the bank for the last three

New President Joins
Dodge Center NW Bank
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
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
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
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
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.





Banking Services

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,
Texas 78704 or phone (512) 444-7722.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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.
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
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
Federal Reserve Bank of St. Louis



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
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
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
was most recently auditor at First Bank-Valley City,
N.D. He is a graduate of Moorehead
State College.


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.
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


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
• 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
• Insurance — Ron Lamphear,
State Bank of Burleigh County, Bis­
• 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



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


Wednesday, June 25
Noon Registration until 5 p.m. in
6:00 Social hour, Burning Hills
7:00 Pitchfork Fondue.
8:30 M ed ora M u s ic a l, A m p h i­
Thursday, June 26

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
Federal Reserve Bank of St. Louis

$5,664 billion as of December 31,
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
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
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
^ 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.
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


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

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
of a pilot program to test the
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
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


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.

Banker, June, 1980
Federal Reserve Bank of St. Louis

Of Minneapolis

Member FDIC


Vice President


Exec. Vice Pres.

77th Annual

Montana Bankers
Association Convention
June 25-27

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:



Wednesday, June 25
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

Federal Reserve Bank of St. Louis

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.
6:00 Reception and Dinner, International Center.
Speaker: Brent Musburger, CBS sportscaster, Los Angeles, Calif.
Northwestern Banker, June, 1980


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,
12:30 Awards Luncheon, International Center.



1:30 Annual Membership Meeting, International
6:30 Associates Reception, International Center.
8:00 President’s Dinner Dance, International Cent­

Joins Butte Bank as ILO

Serving Southeastern Montana
Continuously Since 1882


First Bank MilesCity #
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
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


fyom ily ß o n h "

Northwestern Banker, June, 1980
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.


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.


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.
Continental Bank:
Gibbs, vice president.



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.

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


[406] 442-5050


Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


Montana News

First National Bank: Jerome R.
Wagner, loan officer.
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.
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.


You're Number O n e Under The Sun

(406) 657-3866

Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis

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
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
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-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
North Central Companies, St.
Paul: Robert Gordon.
Omaha Financial Life, Blooming­
ton, Minn.: Bob Geiger, regional
USLIFE Credit Life Insurance
Company, Schaumburg, 111.: James
B. Anattol, district manager.


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
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
So consider the Source.
I “a r _ \
Federal Reserve Bank of St. Louis

think First. First of Denver

Northwestern Banker, June, 1980


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
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


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,
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.

“ 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
Federal Reserve Bank of St. Louis


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

■ ■

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

Financial Corporation

Affiliated with Northw est Bancorporation

An Affiliate of N orthwest Bancorporation
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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
Federal Reserve Bank of St. Louis

South Dakota N ew s


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 .
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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

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
F is c h e r ,
Francis Vander
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
from 1970 until his retirement. He

Northwestern Banker, June, 1980
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
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
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
Replacing Mr. Walter is Joyce
Olsen who has been promoted to





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.


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



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
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
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





Northwestern Banker, June, 1980






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

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
Golf coaches are John Edmiston, senior vice presi­
dent, Denver National Bank, Denver, and Gene McMillen, senior vice president, First Wyoming Bank, Raw­
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


Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis


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
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
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,
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


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
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
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.


10:15 Address—Dr. Edward Jennings, president, Uni­
versity of Wyoming, Laramie.
10:50 Association Business Session.
11:30 Adjournment.
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.


Security Bank: Dick Kjoss and
Jerry Woods.
First National Bank: Catherine D.
Saccany, loan officer.
American National Bank: Larry F.
Pisacka and Roger R. Reiling, vice
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.
First National Bank: Gary L.
Bieck, vice president and manager,
and Mark Zaback, correspondent
Omaha National Bank: Thomas N.
Federal Reserve Bank of St. Louis


Moore, executive vice president;
Jack H. Babcock, J. D. Clements and
Bruce Hendrickson, vice presidents.
Packers National Bank: Wesley D.
United States National Bank:
James R. Campbell, president; Larry
H. Hansen and Howard Nielsen, vice
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

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
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

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

Northwestern Banker, June, 1980


W yom ing News

WBA President Views State’s Economy;
Legislative Session Update Presented
Wyoming Bankers Association
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
We can expect, if interest rates re­
th ir ty
m illio n
Q w Mc1LVaine
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.

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
affectin g
signed into law
and represent
some very sa tisfactory changes.
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


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
Federal Reserve Bank of St. Louis

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,
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,
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.



accountant and in 1979 transferred to
the holding company’s accounting
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
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
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
has announced the promotion of
square foot office building.
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
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.
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
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


Colorado News

and an MBA from New York Univer­
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

United Bank of Denver
National Association
Correspondent Banking Group
1740 Broadway Street
Den ver, Colorado 80217
Phone 303-861-8811 Member FDIC
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
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
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


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 .


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
Federal Reserve Bank of St. Louis

Northwestern Banker. June. 1980


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
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
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
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

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.


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
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,
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.

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.

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

Bob Hams

U.S. National Bank, 1980
Federal Reserve Bank of St. Louis

Howard Nielsen

Member FDIC

Larry Hansen

Lee Bachand

John Lewis

Myron Peterson

US National
Of Omaha


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 .

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
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
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
Mr. Roe made his Task Force
appointment during a brief speech of
acceptance when he was elected to
succeed James W. McBride, who was

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
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


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


Banker, June, 1980
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.’ ’



Nebraska News


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.
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


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 .

Banker. June, 1980
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
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

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


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.
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



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
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


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 .
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


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 .
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
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
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


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

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.

?nn fin 1Qth fit nmiha N»hr RR1OO
208 So. 19th St. Omaha, Nebr. 68102
(402) 344-4611

New Department, Officer at
First Nat’l., Grand Island

Investment Bankers


In Nebraska call toll free (800) 642-8438
Member of the Securities Investor Protection Corporation

The First National Bank, Grand
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980

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
Buddy Bear was at the Auto Bank

Two reasons
our service
is fast and

* * *

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



Working with this Big Nebraskaland


National Bank
24th & 0 • 402/731-4900
Omaha, Nebr. 68107

Member FDIC

Northwestern Banker, June, 1980
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
“ 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
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
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







R 'Ir-*







It ]



■•*«t T


Jim Flodine, Don Ostrand, Ralph Peterson, Bob Brown, George McFadden, Merv Aegerter.


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
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.


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
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.
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’


(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
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.


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
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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.


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
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.



Serving the Midwest...




• Municipal Bonds • Fiscal Agents
• Corporate Bonds • Listed and Unlisted Securities
• Government
Agency Bonds

• Investment Banking


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


Member New York Stock Exchange. Inc
and other Principal Stock and Commodity Exchanges
Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic •
Cedar Rapids • Des Moines • Fort Dodge • Marshalltown • Chicago •
Kansas City • Wichita
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.”
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
“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 !”

10th and Grand
Kansas City, Missouri 64141
Member FDIC

Northwestern Banker. June, 1980

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

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
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


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
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

Steve W. Sutton

Vice President

Bank Programs for Group •
Individual Life • Accident & Sickness


(jOe/te/rf LIFE

Where BENEFIT is more than a middle name
Lincoln, Nebraska 68508
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



Specialists in
fulfilling your every
correspondent need...

Vice President


Vice President




Vice President

Assistant Vice President


Correspondent Bank Officer


Correspondent Bank Officer

<- V



Correspondent Bank Officer

13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Member, F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


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.


Come Crow

W ith us


Correspondent Bank Department

Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Use our toll-free WATS line:

Des Moines' largest locally
owned, independent bank

Northwestern Banker, June, 1980
Federal Reserve Bank of St. Louis

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.


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,
The average deposit total for each
of the 72 holding company banks was
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.
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.


Oelwein Bank Constructs New Facility

Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980


Iowa Groups Discuss
Dramatic Changes in 1980s

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
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.





W it h the k in d o f in fla tion

w e 'v e


to d a y ,

o n uub m a r m i

an d c lo se ly regu lated serv ices


p ro p rieto rsh ip

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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

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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,


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



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."
Federal Reserve Bank of St. Louis


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 ,



d e p a rtm e n t,


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.

Banker, June, 1980
Federal Reserve Bank of St. Louis


“The Drovers Difference”
starts here.




S E - F T H £■

p r e s id e n t .


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.


Iô r  H P






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
Federal Reserve Bank of St. Louis

(312) 9 2 7 -7 0 0 0

Northwestern Banker, June, 1380


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

Banker, June, 1980
Federal Reserve Bank of St. Louis


W hat makes IBIS
so successful?
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980



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,


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


You’re Invited to a Prize-Winning
Iowa Independent Bankers
9th Annual Convention
July 17-19, Lake Okoboji
Special Events
July 17, couples
golf tournament
July 17, tennis
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
Federal Reserve Bank of St. Louis


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
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.



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 Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60603. Member F.D.I.C., Federal Reserve System.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980



New Building


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
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.


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.


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
Federal Reserve Bank of St. Louis



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
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.
Federal Reserve Bank of St. Louis

SIOUX CITY IOWA 51101 • 712/277-6600 • MEMBER F.D.I.C.
) 1980 Security National Bank

Northwestern Banker, June, 1980


Cherokee Bankers Organize
The Cherokee County banks re­
cently formed the Cherokee County
Bankers Association to improve and
promote the banking industry in the
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

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
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.





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



Northwestern Banker, June, 1980
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,
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
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
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.


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Central National Bank & Trust Company
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1980



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
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


needs.” He emphasized, “ Contract
work will be provided locally which
will add stimulus to the local
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
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

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

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
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


J o n u o V o fo X ”

O R P O R W 'o N

calerlo».'o'« M1W
(319) 2M-465'

Northwestern Banker, June, 1980
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.




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
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:
“ 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

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
Three workshops in the afternoon
were provided on compliance, per­
sonnel practices, and subpeonas and
confidentiality. Nancy L. Nemitz,
Northwestern Banker, June, 1980


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
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
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
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


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




110 East 7th Street
Waterloo, Iowa 50705
Phone 319-234-6641
Ask for Dick or Jerry

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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
Federal Reserve Bank of St. Louis

Jack B. Conley,
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
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.

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
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
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
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
Federal Reserve Bank of St. Louis




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.
(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
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


In the
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

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


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
“ He’s under the hay!” said the


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

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.”

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
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
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


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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
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
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


Youdon’t haveto


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.

m JF




M em ber FDIC

Lynn Horak

Roger Mahoney

John Johnson

Barb Estey

Tom Naughton

©1980 Iowa-Des Moines National Bank
Federal Reserve Bank of St. Louis