View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


Caution Flags Hoisted on Home Equity Lending
• How to Cut 7 Years from a 30-Year Mortgage
• Directors Compensation — Dr. Douglas V. Austin
Federal Reserve Bank of St. Louis

Dick Retz (right) with neighbor Phillip Buelow getting the job done through teamwork.

Great Accomplishments
Great accomplishments require determination.
Hard work.
And sometimes a little assistance.
Assistance from someone you can trust. Someone
experienced. Someone w h o can w ork together with
you, and safely get the job done.
Dick Retz is a key member o f the correspondent
banking team at Merchants National Bank. With
professionals like Dick and assets o f over $660 million,
MNB can provide the financial assistance and teamwork
to support your hard work and determination.
Together we can accomplish great things.
Call Dick Retz at 319/398-4806 or toll-free
1-800-332-5991, ext. 806.

Strength of
Merchants National Bank
C ed a r R a p id s, Iowa 52401
Federal Reserve Bank of St. Louis

is i


First Bankers Securities
Federal Reserve Bank of St. Louis

200 Brick & Tile Building • Mason City, Iowa 50401
Toll Free - (800) 952-7899 • In Iowa - (800) 325-3030


On the Cover

4 5 « wk w
JUNE 1987


94th year


No. 1485




Directors compensation

Dr. Douglas Austin continues his series


Caution flags hoisted
on home equity lending

ABA and CBA voice concerns


How to cut 7 years
from a 30-year mortgage!

Bi-weekly payments save homeowners money


How to appraise the appraisers

Robert Wissler advises real estate lenders


MGIC 15 PLUS saves one-third
on mortgage insurance

New plan offers lower premiums


Wisconsin Program
South Dakota Report
North Dakota Program

41 Nebraska Report


Twin Cities


Des Moines
Index of Advertisers

1535 Linden Street, S uite 201, Des M oines, Iow a 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1485 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis

Happy Birthday, Flag!
EEING YOU snapping briskly
and waving proudly, imparting
your sense of freedom as easily a s1
the free-flowing breeze that gives
you life, has always been a sight
that tugs at our innermost emo­
For years you have stirred ou r1
very soul as you marched by in
parades in our youth; as we honored
you each morning and evening at
Boy Scout camp as our ideal and
protector those many years ago; as (
we sang to you at countless sporting
events where we paused first to pay
tribute to you as our standard of
patriotism and togetherness.
Then, later, you became our un-1
yielding sign of strength, our ideal,
our very symbol of being an Ameri­
can when you passed proudly in re­
view at countless military dress
parades as we prepared to defend
you in W W II. You flew with us con­
stantly as a simple armband, yet the
day we had our disaster you saved
our lives because the sight of you on
that small armband convinced those
mountain peasants instantly that
we were friends, not the enemy, and
you became our passport to their
homes and protection.
Remember that celebration you
shared with us in Italy on May 8,
1945, the day peace came to the land
and our souls? And what a winner
the next day was! We flew to POW
camps in Austria and dropped you
with supplies to American and Bri­
tish prisoners so they could have
you flying proudly, with authority,
as you gave visible evidence of hav­
ing official control before the Rus­
sians arrived within a few days.
Later, when we built this home to
raise our family, one of the first
things we did, as we promised you
long ago, was to erect the pole on
which you have flown so proudly on
many occasions—the birth of each
child, for birthdays, anniversaries,
holidays, special occasions, and even
no occasions. And now, those chil­
dren turned adults know you will be
flying as a welcome to them each
time they come home to visit.
This is the time of year when we
especially think of you. That’s why
we still display you proudly every
May 8th. Mother’s Day follows im-


(Turn to page 6, please)

* The team to trust for all your
. title and appraisal needs.


Proudly serving the real estate
* lending industry nationwide...


With a complete package of quality title, appraisal and loan closing services.
Receive our reports within 36 hours via R.E.Xs.M
,our telecommunications
delivery system.
For fast and accurate title and appraisal reports, choose the team to
trust. Choose Record Data and TRW.
For more information, call 1-800-321-1890, ext. 207.

Record Data, Inc.
A Subsidiary of TRW Inc.
725 St. Clair Avenue N.W.
Cleveland, Ohio 44113
216-696-2110, ext. 20 7
National Toll Free
1-800-321-1890, ext. 20 7

©Record Data, Inc. 1987
TRW is the name and mark of TRW Inc.
R.E.X. Is a service mark of Record Data, Inc.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


Candidates for ABA
Offices Are Announced

LaSalle National Bank supports you. With
more than half a century of exp erien ce...
innovative products... responsive service...
and deep commitment to the market.
Our goal is to help you enhance your over­
all performance. LaSalle takes a consulting
approach to correspondent banking, working
closely with you to develop strategies that
improve profits, growth and efficiency. We offer
individualized service and comprehensive
capabilities, including:
• multiple investment consulting
• credit and financial services
• global trade finance
• merger and acquisition consulting
• trust, treasury and many other services
In addition, LaSalle ensures dependable,
cost-effective check processing, collections,
loan overlines and the other standards of cor­
respondent banking.
As your Midwestern neighbor, we share
your perspective and regional loyalties. As a
Chicago bank with international resources,
LaSalle ca n share money-center banking
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m an y a d v a n ta g e s w ell w orth
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del and the LaSalle
Correspondent Banking team will give you
u n b eatable support—with better service,
better products and better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis


The nominating committee of the
American Bankers Association has
selected Thomas
P. Rideout as its
nominee for the
position of presi­
dent-elect and
L.W. Stolzer as
its nominee for
treasurer. They
are scheduled for
election at the
annual conven­
tion in Dallas
next October.
Mr. Rideout, who is completing
the second year of his term as A B A
treasurer, is senior vice president
and director of governmental affair ®
for First Union Corp., Charlotte,
N.C. He would be in line for ad­
vancement to the A B A presidency
for the 1988-89 term.
Mr. Stolzer is chairman of t h ^
Union National Bank & Trust Co.,
Manhattan, Kan.
(Continued from page 4)
mediately, so you fly again to honor
those we love. Soon after comes
Memorial Day when you are visible
evidence of the honor we pay oin®
fallen comrades, to all those who de­
fended you with their lives, and to
all whose memory we cherish and
honor. June 6th can’t go by without
you displayed to the neighborhood®
as a reminder of that eventful day in
And then, it will be your birthday
on June 14! Flag Day! Your very—
own day when, instead of being®
flown to honor others, we honor you.
So fly proudly, and know that there
are millions of us who still feel that
old thrill of excitement as you ap-~
pear in the distance leading new®
generations in parades; millions of
us who still pay you deserved re­
spect as you pass us quietly, grand­
ly, as a silent symbol of the strength^
our nation needs in these troubled^
times as a leader seeking world
Continue flying proudly, and may
you inspire each generation w ith ^
that same tug at the heartstrings
w e’ve known, with that same
strength and pride you’ve given us.
Happy Birthday, June 14, old
—The Editor

Visa USA makes
the Plus System
even easier.
The Plus System network... the leader in shared
Automated Teller Machine systems, has gained a most
impressive industry advantage. .. an affiliation with
Visa U.S.A.
Charles T. Russell, president o f Visa U.S.A. states,
“ The affiliation o f Visa U.S.A. with Plus System, Inc. brings
together the resources, experience and expertise o f two
acknowledged industry leaders. Now financial institutions
anywhere in the U.S. and Canada can make a national network
decision with a new level o f confidence and commitment.”
The Plus System network, long recognized as the premier
ATM network, has earned its reputation for excellence because
o f an ongoing dedication to personalized service and the industry’ s
highest security and technical standards.
Make the right decision today.. .join with Visa U.S.A.
in selecting the Plus System network. For complete in­
formation regarding membership, contact your local
Plus System financial institution or call Plus System, Inc.
at (303) 573-7587.
Federal Reserve Bank of St. Louis




You have their word on it
calle<7~T.uvr¥0Q n u m b e T T ! '

^ x u ^ s ly calmed aown oy the operator

She was able to arrange replacement checks within 45 minutes and a ls o o ffe re d
to cancel any other c re d it cards.

Talk about service 1

need on a hot day in Tenn.. i s a lo t o f red tape.

One thing one doesn't

Thanks to your operator and

the guaranted service of the American Express, we were back on the road to
Shannon M. Rhodes, Austin, TX.

Dear American Express- --and I do mean dear,
Everyone knows that you c a n 't b e lie v e what you see/hear in ads.
That i s , with the exception o f the advertisements you people run.
I have had fir s t -h a n d experience with your p a r t i c u l a r brand of
"t ruth in a d v e r t i s i n g , " and I wish that I could t e l l the whole
world how w e ll you d e l iv e r on your promises.
Elsa Atkins, Chicago, IL.

Ke c a lle d American Express t e l l i n g of our lo ss and were told that
within three hours new checks would be d elivered to our door.
And sure
enough, three hours la t e r a courier was at the door with our checks.
We were very impressed with your service and have told many people
about your great response.
David R. Binkley, Underwood, ND.


të^ ù A
OJjUA&. . •.



Ben Poidomani, Bayport, NY.
Federal Reserve Bank of St. Louis

I was extremely impressed with the way our s it u a t i o n
was handled.
We had replacement checks in our hands
within t h i r t y minutes o f our phone c a l l .
A bso lu tely
no problems.
Because o f the ease o f obtain ing replacements and
the professionalism o f your s t a f f , I w i l l always buy
American Express Travelers Cheques in the futu re.
Thanks again fo r helping make the t r i p one to remember
instead of a nightmare to fo r g e t .

David Mendenf





« .....

tra v e c w B

C .T S q u e s .

.................-***"V.. .

As I was l e a v i n g the b u i l d i n g , I g l a n c e d a t my watch,
was not 3:00 p.m.
My refund was g iv e n to roe o n ly 50
minutes a f t e r my pocket was picked!


Those American Express ads fe a tu rin g Karl Malden are
a b s o l u t e l y c o r re c t.
From now on, b e l i e v e me, I “won’t
leave home without them“, and only American Express
T rav e lers cheques.

William R McMahon, Arlington, TX,

. u^CuTT!1
commercial on t e l e v is i o n has taken a lot of kidding, but everything
you say on i t is the truth.
Your company and your employees are
to be complimented on the way they deal with customers, e s p e c i a l ly
in the sta te of mind I found myself upon learning that my checks
were missing.
They were very courteous and h e lp fu l and I was never
made to fe e l n e gligen t.
I ju st wanted to w r it e this l e t t e r to
let you know that companies and people should be told when a great
s e rvic e i s paid to i t s customers.
I ’m sure you u sua lly get l e t t e r s
t e l l i n g you what should have been done — w e l l , please know how
g r a t e fu l my husband and I are fo r your help.
Because of my st a te
“ mind at th<° * '
Susan K. McCown, Baton Rouge, LA.



Mike turned a very scary situation into a pleasant ending for both ay son and myself
I can’t say enough for the thoughtfulness of Mike Welch. We had insisted Steve c&rrv
Aoerican Express travelers checks, when others had been offered to us, and thanks
to your very helpful employee, Mike Welch, ve shall continue to carry American Expreswhenever we travel.

Robin Merrill, Norcross, GA.

When you sell travelers cheques, you depend entirely
on the service provided by the travelers cheques company
for the well-being and security of your customer.
That’s why so many banks choose American Express"
Travelers Cheques.
Because when you sell American Express Travelers
Cheques you can rest assured that we look after your
customers the same way you would. That means satisfied
customers, and that means repeat customers for all your
banking products.
You see, service is what we do best. You have our word
on it. And we have theirs.

They're what your customers
Federal Reserve Bank of St. Louis

If your bank’s software com ­
pany or service bureau went
under, you could be left holding
the bag. That’s reason enough to
go with the stability of Security
Pacific, a corporation with $71
billion in assets. Our banking
division is America’s 5th largest,
giving us valuable first-hand

knowledge about what makes a
bank run efficiently and profitably
Let Security Pacific show
you the best way to take con­
trol, without exposing yourself
to unnecessary risks. With an
affordable in-house banking
system from Security Pacific,
you don’t have to depend on a

service bureau or a software
company that might not be
there when you need it.
Bank on the solidity of Security a
Pacific. Call 1-800-325-1481 or
303/430-2147 for
information or
a complete

Security Pacific Financial Systems
Federal Reserve Bank of St. Louis

A Division of Security Pacific Information Systems, Inc.


. . . bribery for
Special Reading for
Directors, Management

Written especially for
T he N o r t h w e s t e r n B a n k e r









President and CEO
Douglas Austin &
Associates, Inc.
Toledo, Ohio
Department of Finance
College of Business Administration
The University of Toledo
Toledo, Ohio
I AM A L W A Y S asked by banks and their directors,
I “ What is the adequate compensation for bank direc­
tor’s duties?’ ’ The answer, in these litigative days,
with disappearing directors and officers liability insur­
ance, class action lawyers touring the countries in Mercedez Benz and B.M.W. cars, and the ever-present
“ benevolent” F.D.I.C. attorneys, is: there is never
enough compensation for bank directors. Furthermore,
bank directors are not compensated for the time they
spend, nor are they compensated by the size of bank or
by its location. Bank directors compensation, in spite
of the few selective surveys available, seems to be cor­
related more to a historical tradition than to common
sense or workload.
However, the total value of any yearly directors fees
is not the subject of this commentary. The subject is,
how should the payment of your directors be struc­
tured — by the meeting, or by the year?
Tradition Pays By the Meeting
With bows and platitudes to ‘ 4Fiddler On The Roof, ’ ’
tradition is not always the best example. Tradition in
the banking business indicates that bank directors, or
bank holding company directors should be paid by the
meeting. Let us examine why directors are paid by the
meeting - traditionally. The reason is quite simple: we
bribe our directors to show up and, hopefully, partici­
pate, by paying them for attending the meetings. If
they do not show up for the meetings, then we punish
them by not paying their director’s fees. Therefore,
they show up at the meetings in order to get their
money, even if they are unprepared or do not partici-
Federal Reserve Bank of St. Louis

attendance and
pate, or are sick, or anything else. They just want to
get paid.
What is even worse, by paying directors per meeting
you also can end up with the insipid problem of having
more meetings than necessary just so the directors can
be paid for each meeting. Directors are paid for com­
mittee meetings, board meetings and special board
meetings. If you do not make a decision at the commit­
tee meeting, or the board meeting, they can always
hold another committee or special board meeting and
get paid again. Consequently, there is no reason not to
hold another meeting in order to reach the decision you
could have reached at the prior meeting, because you
will be paid again.
Should Be Paid By the Year
You, as directors, should be compensated by the
year not by the meeting. Your management is paid by
the year; your staff is paid by the year; and your inde­
pendent professionals such as auditors, consultants,
and lawyers are paid by the job; no one you deal with in
your organization is paid by the meeting. Further­
more, if you have a sales staff, they are paid on com­
mission. I cannot think of anyone around your com­
mercial bank that is compensated on the basis of meet­
Regardless of the amount of work you have to do as
a director, you should be compensated yearly, divided
into appropriate 12 monthly checks, or 24 semi-month­
ly checks or whatever you decide to do. On the other
hand, there will never again be any incentive to hold an
additional meeting just to get paid. Additionally, there
will be a tremendous incentive to get the job done
because if you have to return for another meeting, you
are not going to get paid one dime more for showing up
for the additional time and effort. This will make you a
much more efficient director. It will force you and your
colleagues to act as efficient directors and, thereby, get
the job done as quickly as possible, and not gather just
in order to meet and be paid.
If you say to me. . . “ Well, if we pay everybody by
the year and not by the meeting, then what is the in­
centive for them to show u p ?.. . ” The answer is simple.
There is no incentive to show up. On the other hand,
there is no incentive for you to renominate them the
(Turn to page 19, please)
Northwestern Banker, June, 1987


Caution flags hoisted on
home equity lending

NE OF THE hottest financial products avail­
able at banks and thrifts today is the Home Equi­
ty Loan. The new Tax Law eliminated many deduc­
tions for income tax purposes but left home mortgage
loans as a wide window through which personal loans
could be made as Home Equity Loans and keep the in­
terest deductible for the borrower.
However, in the rush by borrowers and lending in­
stitutions to take advantage of this remaining avenue
of tax deductibility for individuals, the Consumer
Bankers Association and the American Bankers A sso­
ciation have raised cautionary flags.
CBA President Thomas E. Honey, speaking in A t­
lanta recently before the C B A ’s Home Equity Lend­
ing Conference “ The Boom in Second Mortgages”
said “ the boom in home equity lending raises critical
issues for both consumers and lenders.” He said home
equity lines are giving consumers unprecedented ac­
cess to credit, adding: “ Whereas second mortgages
had been the province of finance companies and were
looked at only as a last resort by the public, home equi­
ty lines today are the hottest consumer product
“ With opportunity comes responsibility. Used pru­
dently, home equity lines give consumers unprece­
dented ability to manage their financial affairs, at very
affordable costs and with possible tax advantages. At
the same time, consumers should continue to use credit
prudently, and lenders must be more diligent than ever
to ensure that debt levels remain at serviceable levels.
Unlike credit cards and other unsecured debt, where
the lender is left holding the bag if the consumer is
overextended, the title to the home is at stake with
these loans.”


Consumer Banker Guidelines
With those words of caution, Mr. Honey offered
these six guidelines to consumers who have obtained
or are thinking of obtaining home equity lines:
• Home equity lines of credit and fixed amount equi­
ty loans are typically used for home improvements, edu­
cation finance and large medical bills. They can also be
Banker, June, 1987
Federal Reserve Bank of St. Louis

used for debt consolidation, such as paying off a car
loan or more expensive unsecured credit, such as credit
card bills. However, in general they should not be used
to finance current consumption. While lenders some­
times allow credit to be accessed through checks and
drafts, and sometimes even credit cards, transaction
minimums of $100 and higher are usually imposed, to
help assure responsible use of such credit.
• Avoid “ interest only” payments. Some lenders
will allow “ interest only” monthly payments, with
payments on principal deferred to a later date. While
there may be occasions when a larger payment can’t be
afforded, you are probably overextended if you can’t
afford to pay down principal.
• Smaller monthly payments associated with equity
lines can be deceptive. Home equity lines are typically
amortized over 15-20 years, making monthly pay­
ments relatively small. Yet, equity lines of credit can
easily exceed $50,000, making available unprecedented
buying power. Debt service in general should not ex­
ceed 35 percent of gross income.
• Consult a qualified accountant or tax specialist to
determine whether interest payments on such loans
are tax-deductible for you. Lenders are generally not
able to provide this information.
• Consumers should be aware that almost all home
equity loans and lines of credit have a variable interest
rate, meaning the interest charged will rise and fall
with changes in market rates. This allows the most af­
fordable possible interest rate to the consumer, but
may cause monthly payments to be substantially
higher if rates increase sharply in the future. Some
lenders offer caps on fixed amount equity loans,
similar to those on variable rate first mortgage loans.
Most states have laws which govern maximum rates
on credit lines.
• Never borrow more than you expect to repay over
a reasonable period of time. Some lenders allow out­
standing debt to be converted to a fixed amortization
schedule, providing the discipline of monthly pay­
ments that some borrowers prefer.
Mr. Honey noted further that the large-scale entry

of banks and thrifts into the market for home equity
loans has significantly lowered rates and that many in­
stitutions have reduced or waived “ closing costs” and
offered introductory rate discounts to attract new cus­
tomers. “ As with any kind of credit, its use should be
for a worthwhile purpose, and only for an amount that
the borrower can reasonably afford to repay,” he con­
ABA Assigns Task Force
Similarly, the American Bankers Association came
forth to caution its member banks after the media
began making such statements as “ Banks help you
hock your home with home equity loans,” and “ Lend­
ers put ticking time bombs in your wallet.” A B A ap­
pointed a Home Equity Task Force to deal with this
new phenomenon, says A B A President-elect Charles
H. Pistor, Jr., who is chairman and CEO of Republic
Bank Dallas. As chairman of the A B A Operating Com­
mittee, his Task Force emphasizes to banks the need
for credible advertising of home equity loans and urges
banks to study and follow these three areas reviewed
and approved by the Operating Committee:
ABA Guidelines
Follow Federal Advertising Guidelines:
Before any advertising issues are addressed, banks
should be fully knowledgeable of the federal regula­
tions on open-ended credit advertisements.
All home-equity loan ads must comply with the re­
quirements established by Reg. Z, Section 226.16 and
related provisions. In brief, the regulation says if an ad
for credit states specific credit terms, it can only state
those terms that actually are or will be arranged or of­
fered by the creditor.
The regulation does, however, allow a creditor to
advertise credit-terms that will be offered for a limited
It is important to keep in mind that certain terms,
if included in an ad, will “ trigger” additional disclosure
requirements. Trigger terms include finance and other
charges that may be imposed under the plan. When
trigger terms appear in ads, the ads must “ clearly and
conspicuously” set forth this information:
• Any minimum, fixed, transaction, activity or simi­
lar charge that could be imposed.
• Any periodic rate that may be applied, expressed
as an annual percentage rate. If the plan provides for a
variable rate, that must be disclosed.
• Any member or participation fee that could be im­
Banks should consult their counsel for further de­
tails on these regulatory requirements.
Task force advertising suggestions:
Once banks have complied with regulatory obliga­
tions, the suggested advertising guidelines developed
by the A B A Home Equity Task Force should be of
further assistance.
Home-equity loan advertisements should include an
adequate explanation of any:
• Introductory variable rate of interest and the
duration of special rates.
• Annual variable rate of interest and the time this
rate is applicable.
• Index used to establish the annual variable rate of
interest. Example — “ prime plus 2 percent” or “ prime
as published in The Wall Street Journal.”
Federal Reserve Bank of St. Louis

• Cap on the annual variable rate of interest, if ap­
• Minimum balance and minimum draw require­
• Terms and frequencies of fees. Closing costs such
as title examination, appraisal, points and/or origina­
tion fees; membership fees; transaction and mainte­
nance fees.
• Minimum repayment terms, such as interest-only
for five years, plus final lump-sum payment.
• Advertisements that refer to the tax advantage of
home-equity loans. These ads should qualify the lan­
guage as a “ potential” — not guaranteed — tax deduc­
tion. Do not position the bank as a tax expert. Ads
should encourage consumers to consult tax advisors.
» Explain computation of equity in simple terms.
Example — equity equals 80 percent of appraised
value of home minus the outstanding balance of first

ONE of the city correspondent banks which moved quickly to

assist its respondent banks with a computerized program to
handle all details of Home Equity Loans was The National Bank
of Waterloo. City banks like NBW that have software systems in
place can process all data for respondent banks in this new field.

Design guidelines:
• Federal regulations for open-ended credit state
that the size of type selected for advertisements should
be clear and conspicuous. Credit terms are not required
to be printed in certain type sizes or in any particular
location in the advertisement. Credit terms, however,
must appear in reasonably understandable form.
• Information on interest rates and fees should be
presented with equal prominence. Consumers are sus­
picious of small type.
• Home-equity advertisements should also include
the Equal Housing Lender logo.
To assist its member banks, A B A has distributed a
(Turn to page 17, please)
Northwestern Banker, June, 1987


How to cut
7 years from a
30 -y r. mortgage! #

N A G ENERATION that has seen one of America’s
most cherished dreams and traditions—ownership of
one’s own home—whipsawed by the extreme ups and
downs of a volatile economy, mortgage lenders have
evidenced great creativity in trying to retain their
business and make the home ownership dream come
true for the new generations.
The rising cost of homes leaves little doubt that the
home ownership undertaking is a big step that con­
sumes a good share of the family income. One of the
more innovative ways to relieve that long-term load is
the switch from traditional monthly payments to bi­
weekly payments. The monthly payment has been a
taken-for-granted fixture of home mortgage lending
since time immemorial. However, in recent years, a few
mortgage lenders have shown prospective customers
how they can use the same dollar amount of payments
to reduce the number of years of payments and, thus,
save thousands of dollars in interest.
Marquette Bank Minneapolis claims the distinction
of being the first major Twin Cities financial institu­
tion to capitalize on this growing trend to bi-weekly
payments. Its Gemini Mortgage, introduced only in
late December through a newspaper advertising cam­
paign, is hitting pay dirt.
Forrest Gillson, vice president and manager of Mar­
quette’s residential mortgage department, stated in
late February, “ In just the two months since we intro­
duced the Gemini Mortgage, we’ve received well over
1,100 inquiries regarding the new product, and 15% of
those inquiries already have resulted in mortgage ap­
plications. Virtually any homeowner can benefit from
this product. Its appeal is due to the interest savings it
provides, as well as the fact that the loan is serviced
locally. It is well-suited for customers who want to


Banker, June, 1987
Federal Reserve Bank of St. Louis

organize their finances by structuring mortgage pay­
ments to coincide with their paychecks.”
The attraction of the Gemini Mortgage is that the
homeowner merely divides the traditional monthly
payment in half, then pays that reduced amount every
two weeks. Obviously, this is 26 payments per year,
which means the customer is making an extra monthly
payment per year. However, that one extra monthly
payment per year can accelerate a 30-year mortgage at
7.5 percent interest to payoff in just 23 years. Thus,
the customer saves a bundle of interest and eliminates
payments completely for the last seven years!
With little imagination, a sharp marketing director
can devise a savings or investment program that
would induce the customer to save all or a great por­
tion of the last seven years of payments to build
further equity for the family.
Mr. Gillson points out that under the Gemini Mortgage the customers can decide whatever term they
like. “ In addition,” he states, “ the Marquette program
offers customers automatic debit from the customers’
checking or savings accounts every second Tuesday.
That day was selected because there are few or no
banking holidays on Tuesday.”
Mr. Gillson said Marquette’s Gemini Mortgage “ is a
30-year Adjustable Rate Mortgage (ARM). The custo­
mer is given a projection starting with the IV 2 percent
rate, for example, then the balance of the 30-year mortgage is projected at the second year rate o f 8V2 percent
to give an idea of what the 30-year payout could be and
what the accelerated payment savings might be.”
The estimated 23-year payout on a 30-year mortgage at IV 2 percent would accelerate even faster
toward a payout in fewer years if interest rates in­
creased, he said. “ As rates bounce up,” Mr. Gillson
(Turn to page 18, please)











make your credit insurance
operations more profitable
and problem free
than North Central Life.
“America’s Number One Credit Insurance Service Organization’’

North Central Life Insurance Company

In Minnesota call 800-792-1030.
All other states 800-328-9117.
Protection all ways
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


How to appraise
the appraisers

S PART of today’s more sophisticated residential
mortgage loan procedures, lenders have placed in­
creased reliance on residential appraisals. Ultimately,
this requires that lenders be assured they are dealing
with reliable appraisers who use professional stan­
dards to provide quality appraisals to the loan review
In his appearance before the recent A B A Real
Estate Lending Conference in San Francisco, veteran
appraiser Robert L. Wissler, SREA M AI, addressed
this subject in his address on “ An Industry Perspec­
tive.’ ’
Historical Perspective
After tracing the earlier history of appraisals for
lending purposes, Mr. Wissler said the many bank
failures of the 1930s pointed up the need for an ap­
praisal profession that would use an appraisal process,
arrive at proper values and formulate an educational
program. From this need were born the Society of Real
Estate Appraisers and the American Institute of Real
Estate Appraisers. The fledgling organizations and
profession worked their way through the ensuing
W W II years, post-war development years and subse­
quently through the turbulent times of the 1970s when
continuing inflation practically negated the need for or
value of appraisals in the minds of many lenders.
From these unsettled years, Mr. Wissler told his
banker audience, it was determined that “ over the past
six years we find we have appraisals that are fraudu­
lent and faulty. Appraisers were paid high fees to be
advocates of high values. The V A and FH A have many
case histories of appraisals that were made up. There
were also losses by FHLMC and FNM A due to many
faulty appraisals.” After detailing some of the prob­
lems, Mr. Wissler said they occurred for these reasons:
• Appraisers lacking sufficient education.
• Appraisers lacking sufficient experience.
• Lack of ethics by some appraisers and some lend­
• Short-sightedness on the part of some lenders.
• Lack of independent appraisal review process for
existing loans.
• Regulatory bodies not doing their part.
Reviewing Appraisers
In his own job as chief appraiser for Record Data,
Inc., a subsidiary of TRW, Inc., Mr. Wissler has the re­
sponsibility for contracting with top qualified apprais­
ers nationwide. That assignment is a key one for Re­


Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis

A N o r th w e ste r n B a n k e r
interview with
Chief Appraiser
Record Data, Inc.
Cleveland, Ohio

cord Data is the only such national company and it is
imperative for Mr. Wissler that his firm utilizes only
those appraisers in whom Record Data has complete f
confidence so that its performance for lenders can be
given without reservation.
Since it is important for medium size to smaller
banks to know how to find and work with a qualified
appraiser, Mr. Wissler was asked how lenders can de- 0
termine how well qualified an individual is who will be
asked to make residential appraisals for home mort­
gages. He responded by discussing briefly the prob­
lems outlined above and how his company and his pro­
fessional associations have responded to these needs: #
Qualifications Needed
“ First, I definitely prefer to have a person with a col­
lege degree, then one who has taken appraisal courses.
In lieu of this, sufficient experience and appraisal
courses are vital. For both the college graduate and
those who have come up through experience, an ap­
praiser should have continuing education. Many ap­
praisers have not kept up with changes occurring in
our industry.
“ Second, we require our approved appraisers to have
three to four years of full-time experience. We look for
ones who have worked with a senior appraiser, one who
has had good supervision. Some lenders choose real es­
tate people as appraisers, but they are generally advocates for high prices.
“ Third, we look for designated appraisers and candi­
dates from the better appraisal societies who have pro­
fessional standards and ethics to follow.” (See accom­
panying story on appraisal societies.)
Mr. Wissler went on to say, “ If our candidates have
the education, experience and professional society
qualifications, we then review their work to see how
they conduct an appraisal and follow it through.”
Regulatory Response
Mr. Wissler said “ the responses of the federal agen­
cies, regulatory bodies, appraisal societies, lenders and
appraisers to the problems noted above are: 1. More
regulation. 2. More quality control. 3. Increased costs.
The new uniform residential appraisal report must now
be used for all federal agencies: FNMA, FHLMC, VA
and FHA. This new form and the definition of market
value address the need for adjustments when there are
seller concessions or a cash equivalent value...They are
requiring specific guidelines to be followed and are








stating that if the appraisal is faulty, the lender will
buy the loan back. This has concerned many mortgage
banking companies.”
He said the Comptroller and FDIC “ are reviewing
recommendations for increased use of appraisals for
lending purposes and a review of appraisal practices”
in banks. He added that the appraisal societies are dis­
cussing common uniform appraisal standards and
Mr. Wissler noted that “ individual appraisers are
going back to school and taking more appraisal
courses and seminars,” and added that “ individual
lenders now are hiring review appraisers or under­
writers. Lenders are more concerned than ever with the
quality of the appraisal they are putting in their file.”
Lender Alternative
Mr. Wissler was asked what alternative lenders
have if they do not have the capability of interviewing,
selecting and supervising properly the work of apprais­
ers on whose work their lending officers must rely. One
alternative, he stated, is to turn to a company like Re­
cord Data that provides this service for a fee to lend­
ers. A number of good regional firms are available, he
said. Record Data is the only national company that
provides a complete package of services nationwide
with a local presence. This range of service encom­
passes appraisals, obviously, and points up the critical
nature of Mr. Wissler’s work as chief appraiser who is
responsible for contracting with the most highly quali­
fied appraisers in communities nationwide. Although
Record Data has 65 brick and mortar offices, it has af­
filiated appraisers in hundreds of communities.
In addition, the company provides a broad range of
other services that include title insurance, complete
property reports and instant processing service, a
nationwide network of closing attorneys, a telecommu­
nications delivery system that reduces report time,
and a flood zone determination service to confirm re­
quired flood zone status of residential real estate. A
unique service of Record Data is its National Process­
ing Center through which NPC serves centralized loan
operations with one call for all products and services
coast to coast.
“ Any one of the many nationwide companies that
(Continued from page 13)
Home Equity Advertising Kit containing the above
guidelines from the Task Force.
In the meantime, A B A reported on results of a sur­
vey it conducted at its recent National Conference for
Community Bankers in Phoenix. Of the 222 bankers
who completed a short questionnaire, 60 percent re­
ported their banks currently offer a home equity line of
credit, while another 25 percent responded that they
plan to offer the service by the end of this year. A t 90
percent of the banks, only 10 percent or less of their
customers have applied for the service, although 1 per­
cent stated that 25 percent or more of their customers
have made application for home equity loans.
Other findings of the A B A survey were these:
• The prime rate is the most popular economic in­
dex, used by slightly more than half of the respon­
dents. Treasury bill rates ranked second (22 percent).
Federal Reserve Bank of St. Louis

How Are Appraisers Rated?
NE CRITERION for selecting appraisers
of residential properties for home mort­
gage lending is to examine the professional
organization(s) in which they have member­
ship. Robert L. Wissler of Record Data, Inc.,
offers this brief description of the two most
recognized real estate appraisal societies:


Society of Real Estate Appraisers:
SRA—Senior Residential Appraiser
SRPA—Senior Residential Proficiency Appraiser (in
income property)
SREA—Senior Real Estate Appraiser. This top rat­
ing authorizes holder to teach appraisal classes and
analyze projects.
American Institute of Real Estate Appraisers:
MAI—Member American Institute (indicates profi­
ciency in income property)
RM—Residential Member
In addition, two other societies now have educa­
tional programs:
IFA—Independent Fee Appraiser
ASA—American Society of Appraisers.

have their operations centralized in one place, for ex­
ample, can have our firm do all of this localized, on-site
appraisal work and title work and funnel it all by our
NPC to that central headquarters for the lender’s final
processing,” says Laura Day Polk, vice president of
corporate communications for Record Data. “ They sell
nationwide, but we provide the localized service
because of the extensive network we already have in
place for appraisals and the related professional work
that each company cannot economically afford to do.
Then, through NPC, we can transmit the results to
them instantly.”
This availability of a full-time, nationwide staff,
with collateral mortgage lending services provides a
viable alternative to community size and medium size
banks who want to be involved in mortgage lending,
but may be looking for the most experienced apprais­
ers available. By utilizing such a recognized nation­
wide service, many lenders feel this provides an inde­
pendent buffer between them and the borrower.
• The most common way customers can access thenhome equity lines is by check, followed by phone call.
• Most banks impose a minimum loan amount of
$500 (40 percent), $1,000 (24 percent), or had no mini­
mum (18 percent).
• The average line of credit approved for customers
was $20,000 or $25,000 according to a majority (60 per­
cent) of the respondents.
• The most common payment schedule plans were
monthly, interest and principal to fully retire the debt
(39 percent), or monthly, interest and principal to par­
tially retire the debt, followed by a lump sum payment
(31 percent). One respondent required biweekly pay­
• Most loans were for either five or 10 years.
• Almost three out of four of the banks (72 percent)
have no ceiling on the amount the interest rate can in­
crease during the life of the loan. For banks with maxi­
mum increases, the most common limits were 4 or 5
percentage points.
Northwestern Banker, June, 1987

saves one-third on
mortgage insurance
OME buyers will need less money at time of clos­
ing and will save money on their total mortgage
insurance premiums through
“ MGIC 15 P L U S /’ a new in­
surance plan introduced by Mort­
gage Guaranty Insurance Corpo­
ration (MGIC) for 15-year conven­
tional mortgage loans.
The new plan enables borrow­
ers to pay for mortgage insurance
in a single payment as part of the
loan, thereby reducing closing
costs since borrowers do not have
to provide out-of-pocket cash at
closing for mortgage insurance.
Including the premium in the loan
also reduces the borrower’s monthly mortgage insur­
ance cost by up to 33 percent.
Premium rates for MGIC 15 PLUS are lower than
rates for longer term loans because of the lower risk in­
herent in the 15-year mortgage. As a result, lenders
should be able to qualify more borrowers for this type
of financing while saving them hundreds of dollars in
premium costs over the life of the loan.
MGIC introduced the new plan to encourage poten­


tial homeowners to consider the 15-year mortgage and
its many benefits, according to company president
William H. Lacy.
“ The 15-year loan wins the ‘triple crown’ with its
lower interest rate, faster equity build-up, and at least
a 50 percent savings in total interest paid over its
30-year counterpart,” Mr. Lacy said. He cited this ex­
Five-Year Equity Build Up
$75,000 loan at 10% interest
15-year loan
30-year loan
Interest savings on 15-year vs 30-year loan =
“ When you look at the combination of savings in in­
terest and rapid build-up of a homeowner’s equity, it’s
easy to understand the growing appeal of such loans,”
Mr. Lacy said. He pointed out that the volume of insur­
ance written by MGIC for 15-year mortgages has
soared 350 percent over the last three years.
“ Another important factor to weigh when consider­
ing 15-year financing,” Mr. Lacy added, “ is that the
absence of inflation these days means homeowners will
not necessarily by paying back their loans in cheaper
dollars. Accordingly, they should give careful throught
to the benefits of retiring their mortgage debt as ex­
peditiously as possible.”
Mr. Lacy prediced that the surging popularity of the
15-year mortgage would grow in 1987 and beyond. He
said the growing popularity of 15-year mortgages
would be further spurred by a rising demand for such
loans from major secondary market investors, such as
FNMA. In 1986, FN M A ’s commitments to purchase
15-year mortgages more than quadrupled to $11.6 bil­

How to cut 7 years from a 30-year mortgage!
(Continued from page 14)
said, “ a fixed rate will become more attractive to the
customer than the ARM and would accelerate payout
for the customer. We may establish a fixed rate pro­
gram; in fact, management is now considering one.”
Mr. Gillson points out that “ Marquette Bank’s
Gemini Mortgage product is the first of its kind among
major financial institutions in this market. Although
the product has been popular in Canada, it is only now
being introduced in the United States. So far, it has
gained the greatest popularity on the east coast. We
hope it will enjoy the same sort of acceptance here in
the midwest.”
A t least one other midwest bank that has offered a
bi-weekly payment program is Centerre Bank of St.
Louis, the lead bank in the $5.2 billion Centerre Bancorporation holding company. Centerre Bank intro­
duced its Smart Mortgage product into the St. Louis
market in mid-1985 and reported last month that “ it is
still being marketed aggressively.” A t the time it was
offered, Centerre said “ Smart Mortgage utilizes a new,
fixed-rate mortgage approach which we believe will
literally revolutionize home buying.”
A comparison between illustrations offered by Cen­
terre’s Smart Mortgage and Marquette Bank’s newer
Gemini Mortgage, shows graphically where rates have
gone in the past 24 months. Centerre’s examples of 30Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis

year mortgages at $50,000 and $100,000 both used the
typical example rate then of 13.5 percent! In both
cases the typical monthly payment, divided in half and
paid bi-weekly, accelerated the 30-year mortgage con­
tract to payoff in just 17V2 years. Under the $50,000
mortgage, total interest over 30 years at 13.5 percent
would have been $156,172. Utilizing the Smart Mort­
gage schedule, total interest paid would drop to
$80,289.25, an interest savings for the customer of
The savings under the $100,000 mortgage contract
were similar but more pronounced. For example, a 30year payout on $100,000 for 30 years at 13.5 percent
would produce interest paid of $312,351.20, while the
Smart Mortgage payout in 17V& years would mean in­
terest paid of $160,583.05, or a savings in interest of
For the Gemini Mortgage or Smart Saver, or any ac­
celerated payout product, homeowners find an addi­
tional benefit not immediately perceived and that is
the more rapid build-up in equity. For homeowners
who must rely on their home equity for interest-deduc­
tible Home Equity loans for college tuition for their
children, or other purposes, a more rapid build-up of
equity is a plus that provides great attraction with this
new product.



(Continued from page 11)
next year. You want directors who are interested in
supervising and directing your commercial banking
organization based upon their interest in the organiza<||» tion and not on the compensation per se. If the only
reason they show up is to get paid, then you are guilty
of bribing them for attendance and participation.
Weeding Out Process Is Tough
The toughest job that a bank director has to do is
® either fire the president or not renominate one of his
own directors. In most cases, the board of directors
hopes fervently that a bad president dies, retires, or
resigns and that a weak fellow director retires and
moves to Florida, Arizona or wherever is appropriate. I
® believe firmly that the only reason why there are man­
datory retirement ages at commercial banking organi­
zations is because boards of directors are too gutless to
fire weak directors who are not carrying their share of
the load. The easiest way out is to formulate a manda*
tory retirement policy, grandfather current directors,
and then hope everyone else dies. Unfortunately, the
only key I know to eternal life is to become a grand­
fathered director — they live forever. Gerontologists

Omaha Financial Life
Promotes Two Officers

Omaha Financial Life Insurance
Company has announced the promo­
tions of Cecelia H. Keenan and
Roger K. Williams.
Omaha Financial Life, headquar­

have been trying to determine how bank directors out­
live the general population. I have the answer — grand­
father clauses and mandatory retirement policies.
Responsibility Deserves More Pay
It is legitimate to distinguish salary levels based
upon the functional activities of the various board
members. A Chairman of the Board should receive at
least $100 more per month ($1,200 per year) for his or
her titular position. Members of the executive commit­
tee or loan committee, who might have to work signi­
ficantly more hours than a general board member,
should be paid an annual salary in excess of regular
board members. On the other hand, if all are paid by
the year, rather than by the meeting, then you can ex­
pect them to work for you on a yearly basis, not just on
a meeting-by-meeting basis. You can judge their per­
formance in respect to how they perform throughout
the entire year and not at any particular meeting.
Try compensating your directors by the year. It may
start a new tradition in your banking organization.
Also, you might find out in a year or two that you have
a more efficient board which understands the totality
of having to work throughout the entire year and not
at just one quick meeting after another.

tered in Minneapolis, is a Mutual of
Omaha affiliate specializing in mort­
gage and credit insurance.
Ms. Keenan, named second vice
president, personnel, joined the com­
pany in 1976 and was promoted to
personal manager in 1978. She has
served as assistant vice president

since 1982.
Mr. Williams was named second
vice president, marketing and sales.
He joined the company in 1984 as
national agency director and was
named assistant vice president, mar­
keting, in 1985.

Don't go into
the markets
detailed analysis and advice
from T h e B ro c k R e p o rt­
s ' Am erica's m ost com plete
farm m arketing service.

For your FREE three-w eek trial offer,

The Brock Report
2050 W. Good Hope Rd.^ M ilwaukee, W l 53209
Circulation: (800)558-3431
In Wisconsin: (414)351-5500
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


United Missouri Reorganization
tive management and election
of several vice chairmen at United
Missouri Bank of Kansas City,
N.A., has been announced by R.
Crosby Kemper, chairman. He said a
new commercial banking division
has been created by combining the
business development and commer­
cial loan departments. *
The new division is under the
direct supervision of J. Lyle Wells,
vice chairman. Included in the divi­
sion are the metropolitan, national,
international and correspondent
banking departments. Mr. Kemper
said this will allow the bank to pro­
vide both credit and non-credit ser­
vices to commercial customers in
one division.
The Bankcard division, previous­
ly a part of the loan department,
now operates as a separate division
reporting directly to the office of the
chairman. John E. Davis, executive
vice president, continues to manage
the department.
Mr. Wells is a 30-year veteran
with United Missouri and also is a
director of the holding company,




United Missouri Bancshares, Inc.
Walter Beck, vice chairman and
manager of the lending division
through its transition during the
past year, will resume his previous
responsibilities of serving special,
major accounts for the bank. He has

Amazing, isn’t i t how tough times can befuddle
even the best of us.
Swords Associates will help lead you through the maze
of tough times with its team of experienced and caring
professionals. Any problem your bank has will be handled
confidentially, efficiently and immediately. Swords Associ­
ates is successful because
its clients are successful.

4900 Oak, Suite 301
Banker, June, 1987
Federal Reserve Bank of St. Louis

Kansas City, MO 64112

(816) 753-7440

25 years of banking experience and
has been with United Missouri for
eight years. He is an advisory direc­
tor of both the bank and its holding
In conjunction with the reorgani­
zation, Douglas F. Page and Law­
rence E. Russell, have been elected
vice chairmen and members of the
management committee.
Mr. Page now supervises the loan
administration department and con­
tinues to supervise the loan depart­
ment and review for the holding
company and all affiliate banks.
Mr. Russell, who joined United
Missouri in 1973, manages the in­
vestment banking division of the
bank, a position he has held two
In separate announcements un­
related to the reorganization, United
Missouri Bank of Kansas announced
these promotions:
Commercial Banking Division—
Noel J. Shull to executive vice presi­
dent to coordi­
nate lending be­
tween the bank
and commercial
custom ers. He
joined the bank
in 1979, and
holds a bache­
lor’s degree in
business admin­
istration from
the U niversity
of Missouri-Columbia.
Mary H. Browne, who joined the
bank in 1982, to assistant vice presi­
dent, calling on customers and pros­
pects in the greater Kansas City
Correspondent Banking—Joseph
E. James to vice president, develop­
ing and maintaining business with
banks in Oklahom a. A 1982
graduate of the University of Mis­
souri-Columbia with a B.A. degree
in business administration, he
joined the bank that same year, then
moved to correspondent banking in
Investment Banking D iv isio n Robert W. Brickson to vice presi­
dent, with responsibility for rein­
vestment relationships and portfolio
management for individual inves­
tors and local government custo­
mers. A graduate of the University
of Nebraska, he joined the bank in
Sean M. Doherty to bond invest­
ment officer, with responsibility for
portfolio sales and service for corres-


AIB Has “ Blueprint for the Future


pondent banks in Oklahoma and
Trust Division—Donald J. Green
HE THEME of A B A ’S 1987 train to keep up with the technology
to assistant vice president in em­
American Institute of Banking and market of today, as well as to­
ployee benefits; Kathleen A. Forsyth
Conference, “ Blueprint for morrow.
to trust officer, and Karen K. Crowl
Jon M. Christoffersen, president,
reflects the need for
to assistant trust officer.
Rainier National Bank, Seattle,
reCredit Division—Thomas J. ClauWash., as well as many other speak­
don to manager and assistant cash­
ers, will discuss the state of the in­
ier; Richard L. Loux and Diana S.
John S. Sutfin, executive vice dustry with banking education lead­
Marshall to assistant manager and president, to assume the additional
ers from across the country at
assistant cashier.
duties of chief financial officer of the A B A ’s conference, June 27 - July 1,
Northern Trust Corporation and in Seattle.
The Northern Trust Company.
Conference attendees will gather
Northern Trust, Chicago,
J. David Brock, senior vice presi­ at the Westin Hotel to address the
Advances Top Officers
dent and former chief financial offi­ changing environment and future of
The election of David W. Fox, 55, cer, to become deputy head of the af­ banking; and, most important, how
as president and chief operating offi- filiates’ group.
AIB is responding to this future
John W. Hogge, formerly respon­ through planning.
ce r
b o th
sible for the corporation’s Florida
Northern Trust
Mr. Christoffersen, also vice pres­
Corporation and
subsidiaries, to head trading and ident, Rainier Bancorporation, will
distribution activities in capital give the keynote address on “ Global
its lead bank,
The N orth ern
Finance and Protectionism — Or
Trust Company,
How to Gore the O x.”
Deluxe Check Reports
headed a list of
Carolyn Pitts Corbin, president of
senior manage­
10.8% First Quarter Gain
Carolyn Corbin, Inc., another fea­
m en t p r o m o ­
Deluxe Check Printers, Incorpo­ tured speaker, says that approxi­
tions announced
rated, St. Paul, Minn., reports sales mately 75 percent of the work force
recently by Wes­
for the first quarter of 1987 were will require retraining by the year
ton R. Chris$233,371,114, up 10.8% over the 2000 and because of that, AIB can
topherson, chairman and CEO of the first quarter of 1986 when sales were be the flagship of the future for the
holding company. Mr. Christopher- $210,690,832.
banking industry.
son also had been president of the
holding company. The office of pres­
ident at Northern Trust bank has
been vacant since the early retire­
ment last September of Charles H.
Mr. Fox joined The Northern in
1955 and since 1981 was vice chair­
How safe are secured loans? Only as safe as tomorrow’s property
man and head of commercial bank­
values. That’s why successful lenders across the country
have looked to Insured Credit
Other top level promotions in­
Services for default insurance
protection. Since 1954 nearly
William A. Osborn to executive
2,000 lenders have elected to
vice president and head of commer­
guarantee the safety of home
cial banking to succeed Mr. Fox. He
equity and property improve­
was head of the U.S. corporate
ment loans and secured revolving
lines of credit with ICS default
William S. Trukenbrod to head of
insurance protection. They’ve
the U.S. corporate group.
found ICS to be the only security
Perry R. Pero and Jeffrey H. Westhey could depend on.
sel to executive vice presidents.
Find out how ICS can provide
Barry G. Hastings, former head
you with The Lender’s Edge.
of Northern Trust Bank of Florida,
Contact William F. Schumann,
Miami, to executive vice president
President at 312/621 -9400 today.
g| —
with responsibility for all Northern
Trust subsidiaries and affiliates in
your copy today!
Florida, Arizona and suburban Chi­
Mark Stevens, former president
of Northern Trust Bank of Florida,
INC.Sarasota, to president of the Miami
307 N. Michigan Ave., Chicago, IL 60601 • 312/621-9400
Arthur M. Wood, Jr., to president
of the Sarasota bank.


Have you ever wondered why
some secured loans are worthless?
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987

ABA Names Iowan As Ag
Finance Center Manager
Leslie Miller has been named
manager of the American Bankers
A s s o c ia tio n ’ s
A g r ifin a n c ia l
Services Center.
Ms. Miller has
11 years of agri­
cultural lending
experience with
the Davis Coun­
ty Savings Bank,
Bloomfield, la.,
where she was
vice president
and an ag loan officer.
Prior to joining ABA , she was
also chairman of the Iowa Bankers
Association’s agriculture commit­
A B A ’ s Agricultural Banking
Division focuses on meeting bank­
ers’ needs through an array of pro­
ducts and programs including a na­
tional conference and national
school. Recently, the division spon­
sored “ Transition in Agriculture,’ ’ a
comprehensive analysis of the U.S.
agricultural economy and banking’s
role in it. The division also provides
input to A B A ’s Government Rela­
tions Council on important agrifi­
nance issues, such as establishing a
secondary market for ag loans.
Ms. Miller is a graduate of the
A B A National Agricultural Bank
Management School, the Iowa
Bankers Association Commercial
Lending School and Iowa State Uni­

Austin Firm Is First in
Mergers and Acquisitions
Douglas Austin & Associates,
Inc., Toledo, Ohio, led all consulting
firms in the number of commercial
bank merger and acquisition trans­
actions handled in 1986, according
to a ranking released in the March
issue of United States Banker
The publication reported that
Douglas Austin & Associates was
involved with 35 commercial bank
transactions last year with a total
transaction value of $271,800,000.
The firm also tied for first in the
ranking of the number of merger and
acquisition deals put together for all
financial institutions.
According to the U.S. Banker
comparison, the Austin firm “ domi­
nates activity out of that state and
Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis

BMA Selects 1987-88 Officer Team
HE Bank Marketing Association
has announced the selection of
its 1987-88 leadership team headed
by its current president, John A.


neighboring Midwest states’ ’ as a
regional firm with local knowledge
focusing on a specific geographic
area.’ ’
Douglas Austin & Associates spe­
cializes in consulting financial insti­
tutions throughout the nation, with
specific emphasis on community
banks and the Midwestern states.
The 20-year-old firm has proven
ability in consulting on mergers and
acquisitions, bank holding company
fo rm a tio n s, s to ck va lu a tion s,
capital programs, strategic plan­
ning, branch applications, expert
testimony, market analysis, and
regulatory liaison.
Dr. Austin began authoring a
monthly article for N o r t h w e s t e r n
B a n k e r readers, effective with the
May issue, with primary emphasis
on Bank Directors Responsibilities
and Liabilities.

Chicago Fed Promotions
The Federal Reserve Bank of Chi­
cago has announced the promotions
of David R. Allardice and James A.
Bluemle to vice president.
Mr. Allardice joined the Chicago
bank in 1974 as an economist after
receiving a Ph.D. in economics from
Colorado State University, Fort Col­
lins. He has also been named assis­
tant director of research.
Mr. Bluemle joined the bank in
1972 after graduation from the Uni­
versity of Iowa with a B.A. degree in
economics. He will oversee the finan­
cial institutions accounts division.
Other promotions at the Chicago
Fed include:
William J. O’Connor to loan offi­
cer and continuing as manager of
the loans unit and supervising the
administration of the Payments
System Risk Policy in the Seventh
Fed District.
Gay Whiting to applications offi­
cer, continuing to oversee the pro­
cessing of applications from bank
holding companies and state mem­
ber banks. Her duties include appli­
cations to establish branches of
state member banks and to form or
expand BHCs.

Russell, vice president and director
of marketing at Banc One Corp.,
Columbus, Ohio.
Joining Mr. Russell on B M A ’s
roster of new officers, slated to as­
sume their duties July 1 are: First
Vice President—Gerald Warren, se­
nior vice president for public affairs
at National Bank of Detroit; Second
Vice President—David M. Thibo­
deau, executive vice president of
Third National Bank, Nashville,
Tenn.; and Immediate Past Presi­
dent Smith W. Brookhart, III, presi­
dent of Centerre Bank, Branson,
Serving with the officers on
B M A ’s Executive Committee is
L.W. Stolzer, chairman of the Union
National Bank and Trust Co., Man­
hattan, Kan., who is the treasurernominee of the American Bankers
Association. BM A is an A B A affili­
The BM A also announced the se­
lection of five new directors, each of
whom will serve three-year terms.
They are: Thomas H. Ficquette, se­
nior vice president/director of mar­
keting, Planters Bank R ocky
Mount, N.C.; Robert T. Johnson, se­
nior vice president, Valley National
Bank, Phoenix; Jeffrey M. Westergren, department executive, Marine
Midland Bank, Buffalo, N .Y.;
Michael W. Riley, executive vice
president, Signal Bank, W. St. Paul,
Minn.; and John D. Domer, Jr., vice
president, P ittsburgh N ational
Also serving on the BM A Board
during 1987-88 will be Michael P.
Sullivan, president of Michael P.
Sullivan Associates, Inc., a Char­
lotte, N.C. marketing/communications consulting firm. Mr. Sullivan
served as BM A first vice president
during the last year but chose for
professional reasons to step aside in
the BM A chairs for 1987-88. “ Mike
has served the Association well for
many years and particularly so as
B M A ’s first and second vice presi­
dent,’ ’ said Mr. Russell. “ Normally
B M A ’s first vice president would
move up to the presidency, but Mike
felt it was inappropriate for a non­
banker to serve as the president of
the Association.”
Prior to forming his own consult­
ing firm, Mr. Sullivan was vice presi­
dent-corporate communications at
First Union Corp. in Charlotte.

manager, commercial loans depart­
ment; Karen S. Dubinski to con­
sumer loan officer, and Pasquale
Malfitano to assistant vice presi­
dent, personal banking.

C.E. Waterman, pres., South Holland
W.J. Hocter, exec, v.p., Chicago

Promoted in Stronghurst
Keith Douglass has been pro­
moted to assistant vice president at
th e B a n k o f
Stronghurst. He
joined the bank
in 1981. M r.
D o u g la s s has
worked in all de­
partments of the
bank, starting in
bookkeeping and
advancing to as­
sistant loan offi­
cer, where he has
served for the last three years. He
will be responsible for all types of
consumer lending.

Appointed in Galena
The First National Bank of
Galena has appointed Larry Cook as
assistant cashier-internal auditor.
Mr. Cook has been assistant cashier
since 1983, and has been with the
bank for six years. He will be respon­
sible for cash management, loan
documentation, the securities port­
folio and basic operations.

Cole Taylor Bank/Main in Wheeling.
He will be responsible for commer­
cial and retail banking, operations
and asset-based lending.
Mr. Clay has served as vice presi­
dent of the bank since 1983, and es­
tablished Cole Taylor’s asset-based
lending division. Prior to that, he
was vice president of BancAmerica
Commercial Corp., Oak Brook. He
has also worked for Borg-Warner
Collateral Services, Lawrence Sys­
tems, Inc. and Walter E. Heller Co.,
all in Chicago.
* * *
Gerry Klein, senior vice president
of Cole Taylor Bank/Yorktown, has
been elected a vice president of the
other Cole Taylor banks. In addition
to his responsibilities at the Yorktown bank, Mr. Klein will structure
the process for auto dealer condi­
tional sales contracts purchased on
behalf of all member banks of the
Cole Taylor Financial Group. He has
served as senior v.p. at Yorktown
since 1985, and has been a lending
officer at the bank for 18 years.



Patrice M. Lima has joined Ave­
nue Bank Northwest, Niles, as assis­
tant vice president. Prior to
joining Avenue
west, Ms. Lima
was a s s i s t a n t ^ * rt
vice president H K
' *


ter manager for
AmeriFirst Fed- H P *
eral Savings and
Loan, Boca RaP M- LIMA
ton, Florida. She is a graduate of
Florida Atlantic University.
* * *

Darrell E. Clay has been ap­
pointed executive vice president at
Federal Reserve Bank of St. Louis

Colonial Bank and Trust Com­
pany, Chicago, has announced the
following promotions: Richard L.
Vucich to senior vice president and
senior lending officer; Lawrence W.
Zydowsky to vice president and





Mr. Vucich has served as assis­
tant vice president and vice presi­
dent of the bank’s commercial lend­
ing department. Mr. Zydowsky
began his career at Colonial in 1974,
and has served as assistant vice
president and assistant manager of
the bank’s commercial loan depart­
Ms. Dubinski joined Colonial in
1979 and has held various positions
in the consumer loan department.
Mr. Malfitano previously worked as
a personal banking officer. Prior to
that he was assistant cashier and
manager of the customer service de­

Convention Update
A t the time this issue was
being mailed, the Illinois Bank­
ers Association was holding its
Annual Convention at the
Peoria Civic Center.
Jack Emmons, president
and CEO, Security Bank &
Trust Co., Mt. Carmel, was
scheduled to advance as presi­
dent of the association, suc­
ceeding Charles E. Waterman,
chairman and CEO, South Hol­
land Trust & Savings Bank.
The complete convention re­
port with photos will appear in
the July issue of The N orth­

B anker .
Northwestern Banker, June, 1987


Northlake Bank Completes Renovation

CELEBRATING the completion of the extensive renovation of the Northlake Bank are

builder Joe Nasca, Northlake president Tory Campanella, Northlake mayor Gene Doyle,
Northlake chief executive officer Bill Duquaine and holding company chairman C. Paul

Marvin E. Neland, chairman, A f­
filiated Banc Group, Inc., an­
nounced on April 28 that the $800
million asset bank holding company
has agreed in principle to merge
with Manufacturer’s National Cor­
poration, an $8 billion asset, Michi­
gan-based bank holding company,
for an exchange of stock.
* * *
Continental Illinois Corporation
announced on April 30 that it has
reached an agreement in principle to
acquire Norris Bancorp, Inc., a twobank holding company that owns
The First National Bank of Batavia
and the State Bank of St. Charles.
The estimated purchase price will be
$21 million, plus the suburban
banks’ earnings from Jan. 1, 1987
through the closing date.
The proposed acquisition is sub­
ject to negotiation of a definitive
agreement, regulatory approval, and
the approval of Norris stockholders.
At year-end 1986, The First Na­
tional Bank of Batavia had assets of
$50.3 million and deposits of $45.9
million. A t that time the State Bank
of St. Charles had assets of $114 mil­
lion and deposits of $105 million.
* * *
Marilyn Mengarelli has been pro­
moted to assistant vice president
and Roberta A. Patt has been pro­
moted to assistant vice president
and controller of BankersTech, a
wholly owned subsidiary of First
Colonial Bankshares Corp.
Ms. Mengarelli is currently re­
sponsible for BankersTech’s custo­
Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis

mer service and bookkeeping activi­
ties. Prior to that, she was assistant
manager of Colonial Bank and Trust
Company’s operations office.



Ms. Patt previously served as
automated teller machine cardbase
manager of Colonial Bank and Trust
Company and customer service rep­
resentative at BankersTech.
* * *

(Dolly) E. Horan has joined as assis­
tant vice president of teller services.
Mr. Tatera has more than 25
years of experience as a real estate
officer, most recently as vice presi­
dent of real estate for Devon Bank.
Ms. Horan previously served as
operations officer for Bank and
Trust of Arlington Heights and has
over 20 years banking experience.
* * *
Pamela A. Terpinas has been pro­
moted to assistant vice president
and cashier of
th e
A venue
B ank o f E lk
Grove. A gradu­
ate of Northeast­
ern College with
a degree in mana g e m e n t/m a r keting, Ms. Ter­
p in as p a r t ic i­
p a ted in the
F irst Colonial
Bankshares’ management training
program. In 1982 she was promoted
to auditor/officer.
* * *
Brian F. Bara has been promoted
to assistant vice president and cash­
ier of Northlake
Bank. He began
his banking ca­
reer at the Colo­
nial Bank in Chi­
cago as a staff
auditor in 1983.
His new respon­
sibilities include
financial report­
ing, operational
s y s te m s
regulatory reporting for Northlake

Eugene F. Tatera has joined Ave­
nue Bank of Oak Park as vice presi­ CHICAGO NEWS. . .
dent of real estate and Marion (Turn to page 33, please)

The Carpenters Pension Fund of Illinois, covering the S ta te of
Illin o is and the eastern h a lf o f Iowa, announced to d a y a fin a n c ­
ing program o f new and re h a b ilita tio n c o n s tru c tio n p ro je cts.
The Pension Fund is in te re ste d in p rovid ing fin a n c in g o f c o n ­
s tru c tio n and end loans at c o m p e titiv e rates. The servicing of
these loans, ranging from $250,000 to $2,000,000, w ill be
handled th ro u g h lo cal banks. The program is ava ila b le fo r c o m ­
m ercial and re s id e n tia l p ro je cts.
For fu rth e r in fo rm a tio n , please c o n ta c t: F re d e rick A. W estm ark, A d m in is tra tiv e M anager, Illin o is Em ployee B e n e fits C or­
poratio n, 28 N orth F irst S treet, Geneva, Illin o is , 60134, 312/

Added in Winona

Added in St. Louis Park

Richard L. Mahoney has been
hired by Merchants National Bank
of Winona as se­
nior vice presi­
d e n t -lo a n ad­
ministration. His
respon sibilities
will include the
supervision of
all lending de­
partments, com­
estate and in­
s t a l l m e n t , as
well as the credit department.
Mr. Mahoney previously served
as senior vice president and head of
lending for the Peoples Bank and
Trust of Waterloo, where he was em­
ployed for 15 years. He was also em­
ployed as manager of commercial
loans and leases by Universal C&T

Park National Bank, St. Louis
Park, has announced that Debra
joined the staff
marketing direc­
tor. She comes
to the bank with
12 years bank­
ing experience.
Ms. Hibbard is
responsible for
ma rk et ing re­
search, product
development, advertising and pro­
motions. She is currently supervis­
ing plans for the bank’s 25 year an­
niversary celebration, which will
begin in January, 1988.

Appointed in Richfield

field, has announced the appoint­
ment of Robert N. Prentiss, Jr.,
senior vice president—trust/investments, to the board of directors.
Mr. Prentiss started his banking
career in 1971 in trust marketing. In
1978, he was made vice president
and senior trust officer, and 1981
was named to his current position.
The bank has also promoted Bon­
nie Oien to bank officer and manager
of computer operations. Ms. Oien
joined RB&T in 1978 and has been
in the data processing department
since 1979.

Convention Update
At the time this issue was
being mailed, the Minnesota
Bankers Association was hold­
ing its Annual Convention at
the Marriott City Center Hotel
in Minneapolis.
James R. Jorstad, president,
Citizens State Bank, Hayfield,
was scheduled to advance as
president of the association,
succeeding Roy Terwilliger,
president, Suburban National
Bank, Eden Prairie.
The complete convention
report with photos will appear
in the July issue of The N o rth ­
w e st e r n

B anker.

Richfield Bank & Trust Co., Rich­

American National Bank of St.
Paul has announced several staff
Charles K. Kulas has joined the
bank as employee benefits market­
ing officer and will be working in the
trust department. He was previous­
ly employed by Northwestern Na­
tional Life Insurance Company for
14 years, most recently as business
insurance technical consultant.
Federal Reserve Bank of St. Louis

Theresa A. Costello, who joined
the bank in 1981, has been promoted
to personal banking officer. Fred K.
Holzapfel, with the bank since 1978,
was advanced to operations officer
in the check processing department.
Kristi S. Tollefson, who joined in
1984, was promoted to commercial
banking officer in the aircraft and
leasing department.
Grace E. Jaeger has joined Ameri­

can National as an investment offi­
cer in the bond and investment de­
partment. Self-employed for the last
year as an investment broker, she
spent the six years prior to that em­
ployed by Marquette Bank Minnea­
American National has also an­
nounced that John R. Newton, an
assistant vice president in the air­
craft finance department, has been
Northwestern Banker, June, 1987

elected to a one-year term on the
board of directors of the Minnesota
Aviation Trades Association.
* * *
First Bank System has an­
nounced several promotions.
In the metropolitan division:
Frank L. Nardi has been promoted
from assistant vice president to vice
president in capital markets. David
M. Pote was similarly advanced in
FBS Business Finance. Jill S. Verio
was promoted from assistant vice
president to vice president in human
In the merchant banking group:
Mordechai Fishman and D. Ward
Johnson were advanced from senior
associates in merchant banking to
vice presidents.
In the legal division: Melissa R.
Fogelberg was advanced from assis­
tant vice president and corporate
counsel to vice president and senior
corporate counsel.

Deanna L. Crock was promoted
from assistant cashier to assistant
vice president and cashier. Before
joining Resource Bank & Trust in
1985, she was a staff accountant for
McGladrey, Hendrickson & Pullen.
Debra Garry was appointed credit
officer. She previously served as a
commercial banking officer for Norwest Bank Metrowest.
* * *
Robert E. Krammer has been ap­
pointed vice president and manager
of Midway Na­
tional Bank of
St. Paul data
processing divi­
sion. Mr. Kram­
mer was pre­
v io u s ly a s s is ­
tant vice presi­
dent and has
been associated
with the bank
since 1965. As
manager of Midway Data Center he
is responsible for data processing
and numerous support services for
35 Minnesota banks.
* * *


M. Harper, William A. Hodder,
George C. Howe, Jr., Lloyd P. John­
son, Reatha Clark King, Richard M.
Kovacevich, Richard S. Levitt, Don­
ald W. McCarthy, Richard D.
McCormick, John E. Pearson, Ger- £
aid Rauenhorst, James R. Spicola
and David M. Winton.
Stockholders also ratified the ap­
pointment of Peat, Marwick, Main
& Co. as the company’s public ac- #
countants and voted to amend the
corporation’s certificate of incor­
poration, adding a new article which
limits directors’ liability under cer­
tain circumstances and provides in- #
demnification for directors and offi­
* * *

Harold V. Haluptzok has been ap­
pointed to the board of directors for
Marquette Bank Columbia Heights.
He is president and treasurer of
John’s Auto Parts, which he has
owned since 1973.
* * *

Independent State Bank of Min­
nesota, Minneapolis, has announced
the election of Gordon H. Klaudt to
the board of directors. Mr. Klaudt is
the president of Farmers State Bank
in Adams, where he has served since
1963. Prior to that he wefrked at the
First National Bank of Aberdeen in
Milbank, S. Dak., where he began
his banking career in 1958.

John A. Wittek has joined Liberty
State Bank, St. Paul, as vice presi­
dent of commer­
cial lending. He
began his bank­
In the credit policy division: For­ ing career at
mer assistant vice president Gary A. First Bank—St.
Magnuson was promoted to vice Paul in 1968,
* * *
president and director of industry moving to First
In the funds management depart­ Paul in 1975. In
Marquette Lease Services, Inc.,
ment: James G. Senger was pro­ 1982 he joined
moted from assistant vice president Richfield Bank
Minneapolis, has announced the ap­
pointment of Donn Bergstedt as
and principal eurodeposit trader to and T rust as
vice president and chief deposit v ice p r e s id e n t /d iv is io n m a n ­ general manager of its newly created
ager-com m ercial loan department. car leasing division. Mr. Bergstedt
* * *
comes to the company with an ex* * *
tensive background in the vehicle
E. Thomas Welch has been elected
leasing industry. Most recently he
Tony J. Albrecht has joined
president of Resource Bank &
served as general manager at Mauer
Trust, Minneapolis. He will continue Bremer Financial Services, Inc., St. Leasing Service, Minneapolis.
to serve as vice president of the Paul, as assistant vice presiden t* * *
bank’s holding company. Before investments. He previously served
joining the Resource Companies in as investment manager at Bankers
1984, Mr. Welch was senior vice Trust Company in Des Moines, la.
M.H. Novick & Company, Inc, In­
* * *
president at Marquette Bank Min­
vestment Bankers, Minneapolis, has
announced several recent promoThe bank has also promoted
At the company’s annual meet­ tions: Michael D. Wilk, senior vice
Daryl Standafer to senior vice presi­ ing, stockholders of Norwest Corpo­ president/sales; Herbert W. Olson
dent. He joined the bank in 1984 as ration elected the 17 nominated di­ and John C. Wiedman, vice presivice president, having previously rectors: H. Brewster Atwater, Jr., dents/institutional bond depart­
served as vice president at First David A. Christensen, Pierson M. ment, and Bertram G. Leach, vice
bank Edina.
Grieve, N. Bud Grossman, Charles president/bond department.
Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis














Vice Pres.

9 1 s t Annual

Wisconsin Bankers
Association Convention
June 15-17
Em bassy S uites H otel,
Green Bay
SPECIAL new feature of the Wisconsin Bankers
Association Annual Convention this year will be a
business resource fair, sure to be an interesting and
valuable addition to the gathering. Wisconsin bankers
will meet on June 15-17 at the Embassy Suites Hotel
in Green Bay. This year’s theme is “ Wisconsin Bank­
ers: A Natural Resource for Economic Development.”
Presiding at the convention will be W B A President
Rowland J. McClellan, president, Valley Bank, Janes­
ville. Slated to succeed him is President-Elect Richard
P. Klug, chairman and CEO, F&M Bank, Menomonee
Falls. Vice President of the association is Thomas
Schiefelbein, president of Security National, Durand,
and Treasurer is Jess S. Levin, president, Bank of Elm­
wood, Racine. Bryan K. Koontz is executive director.
Keynote speaker for the meeting will be Mark Olson,
president of the American Bankers Association. Rob­
ert M. Bleiberg, publisher of Barron’s, will speak on
the topic, “ What the Markets are Telling U s.” CBS
football commentator Joe Theismann will also speak.





Exec. Director




You Will See Them at the
Wisconsin Convention



TH HE follow in g m etropolitan
I bankers and service and equip­
ment dealers have indicated they
will be attending the annual conven­
tion of the Wisconsin Bankers Association in Green Bay on June 15-17.
Continental Bank: Robert E.
Pietrzyk, vice president.
LaSalle National Bank: Peter
M cG u ire, R o b ert H ildeb ra n d,
Federal Reserve Bank of St. Louis

Wayne Bismark, Del Rogers, vice
N o rth e r n T r u s t C o m p a n y :
Michael L. Kubacki, vice president;
Susan Lang Berry, commercial
banking officer.
First Wisconsin National Bank:
Roberto J. Vinent, vice president;
Richard Schmitz, vice president;
Robert Grant, assistant vice presi­
Minneapolis/St. Paul
American National Bank: Robert
W. Jacobson, Michael J. Tompkins,

Gary Omerza.
First Bank, Capital Markets/Correspondent Services: Kenneth A.
Wales, senior vice president; Darryl
R. Nelson, assistant vice president.
Marquette Bank: Bill Addington,
Ralph Nelson, vice presidents.
Bank Equipment and Other Firms
Modern Banking Systems, Inc.,
Omaha: Ken Conrad, president; Bill
Pierce, regional manager.
North Central Companies, St.
Paul: Norm Ahles, Arne Bundgaard,
Jim Fink, Tom Walsh, regional man­
Northwestern Banker, June, 1987

Peoples’ Bancshares had assets of _
approximately $44 million and Cen- ™
tral Wisconsin Bankshares, Inc. had
assets of approximately $726 mil­
lion. The acquisition of about 95% of
the stock of the Bank of Plover, ^
Plover, by Central Wisconsin Bank- w
shares, Inc. was expected to be com­
pleted on April 30.

Pres. Named in La Crosse

VISITING prior to the First Wisconsin Correspondent Seminar are, left, John Becker, pres.,
First Wis., Milwaukee and Don Kramp, v.p., corr. bkg., First Wis., Milwaukee.

Correspondent Seminar Held
Associate Publisher
IRST Wisconsin held its 18th
Annual Correspondent Seminar
last m onth in four location s
throughout the state. Bankers in
Milwaukee, Green Bay, Eau Claire
and Appleton attended the one-half
day seminar which included an even­
ing reception and dinner.
John Becker, president of First
Wisconsin, Milwaukee, “ kicked off”
the session in Milwaukee, where
over 130 bankers were in atten­
dance. He called the seminar “ a
great time to exchange views of
common interest and to plan for a
better future for ourselves and our
Special interest topics were cov­
ered at each location and included
remarks by Walter Fiorentini, senior


vice president, Information Services
Division, and by Michael Schmitz,
executive vice president, Consumer
Financial Group.
A tax planning session was pre­
sented by James Mohr, partner,
Peat Marwick Main & Co., as well as
a motivational talk by Robert Rodri­
guez, partner, Professional Develop­
ment Systems, Sun Prairie. His pre­
sentation was titled “ Winning in a
Competitive Environment.” Repre­
sentatives from the division of cash
management and consumer credit
and from the department of public
finance gave their viewpoints.
Mr. Becker concluded his com­
ments by saying, “ Correspondent
banking at First Wisconsin has a
rich tradition—a relationship built
on mutual trust and respect, offer­
ing the highest quality of products
and services.”

quartered in Wausau.
Mr. Zagzebski stated that an ex­
change offer of stock had been ap­
Plans for the affiliation of Peo­ proved by the board of directors of
ples’ Bancshares of Antigo, Inc. Peoples’ Bancshares and Central
with Central Wisconsin Bankshares, Wisconsin Bankshares, Inc. and
Inc. were jointly announced April 27 would be presented to Peoples’
by Walter A. Diercks, president of Bancshares stockholders following
Peoples’ Bancshares of Antigo, Inc. regulatory approval. He noted that
and William H. Rodd, chairman of under the terms of the exchange of­
the board and chief executive offi­ fer, stockholders of Peoples’ Banc­
cer, and Edwin J. Zagzebski, presi­ shares will be offered 17.05 shares of
dent and chief operating officer of Central W isconsin Bankshares,
Central Wisconsin Bankshares, Inc. Inc.’s common stock (subject to pos­
Peoples Bancshares of Antigo, Inc. sible adjustment) for each share of
is the sole stockholder of The Peoples’ Bancshares’ stock.
The proposed affiliation is subject
Peoples’ Bank, Antigo, and Central
Wisconsin Bankshares, Inc. is a to the approval of the Federal Re­
multi-bank holding company head­ serve System. At Dec. 31, 1986,

Holding Companies
to Affiliate

Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis


Peter W. Knitt has been named
president and chief executive officer
of Valley View Bank of La Crosse.
He previously held the position of
senior loan officer with the Marion ®
State Bank, Marion. Mr. Knitt’s re­
sponsibilities there included all
aspects of lending as well as super­
vising the bank’s branch personnel
and loan personnel at the main of- “
fice. In addition to his banking ex­
perience, he also holds Wisconsin
property, life and health insurance

1st Wis. Acquires Two
III. Bank Holding Cos.
The acquisition of two Illinois
bank holding companies by First
Wisconsin Corporation was com­
pleted April 30. Naper Financial
Corporation, a two-bank holding
company in Naperville with assets
of $234 million, and Du Page Baneshares, which owns the $146 million
Du Page Bank & Trust Co. in Glen
Ellyn, are now part of Wisconsin’s
largest bank holding company, with
assets of $6.6 billion.
The Naper Financial and Du Page
Bancshares deals were valued at $43
million in cash and $18.5 million in
stock respectively.





Named in Kohler
Gerald L. Beiersdorf has been
named chief financial officer of First
Interstate Corporation of Wisconsin, Kohler. He serves as executive
vice president of the bank holding
company with responsibility for the
finance, accounting, audit, loan
review, facilities, maintenance,
human resources, legal and risk
management departments. He also
serves as president of First Inter­
state Management Services, a data
processing subsidiary.
Mr. Beiersdorf originally joined
the corporation in 1976 and has
served as assistant treasurer, trea­
surer and senior vice president of
the holding company.






1987-88 SDBA OFFICERS, from left: Exec. Vice Pres.—J.l. Milton Schwartz, Pierre; Immed.
Past-Pres.— B. Michael Broderick, Jr., pres., First American, Canton; Pres.-Elect— Christine
Schirber, exec, v.p D ew ey County Bank, Isabel; Vice Pres.— David S. Birkeland, pres. &
ceo, First Bank S. Dak., Sioux Falls, and Pres.—Larry Ness, pres., First Dakota Natl., Yank­


m Larry Ness to Head SDBA
Vice-President—David S. Birkeland,
president, First Bank of S. Dak.,
N.A., Sioux Falls; Immediate PastPres.—Michael Broderick, Jr., presi­
VER 300 bankers and spouses
dent, First American, Canton. J.l.
from around the state were pre­ Milton Schwartz will continue as ex­
sent for the 95th annual South Da­ ecutive vice president of the associa­
kota Bankers Association Conven- tion in Pierre.
tion held last month in Rapid City.
General Session
Convention-goers enjoyed a wide
Chairing the 1987 SDBA Conven­
variety of activities and insightful tion was Pete Cappa, vice president,
presentations by noted speakers Norwest Bank South Dakota, N.A.,
during the two-day convention. Rapid City, who welcomed everyone
Highlighting this year’s meeting to the convention and Rapid City.
was the election of officers.
Mr. Broderick had the honor of call­
Officers Elected
ing the convention to order and in­
SDBA Officers elected at con­ troducing the first speaker, Mr.
vention are: President—Larry Ness, Hugh Sidey, contributing editor,
president, First Dakota National, Time Magazine.
Yankton; President Elect—Chris­
Mr. Sidey presented his thoughts
tine Schirber, executive vice presi­ on national politics and the eco­
dent, Dewey County Bank, Isabel; nomy, and some insights on the
Associate Publisher





media. Mr. Sidey, who witnessed the
assasination of President Kennedy,
said, “ I have been through a lot over
the past three decades, but we have
had quite a time lately,” as he refer­
red to the current Washington situa­
tion with the Iran-Contra Affair.
Mr. Sidey said that politicians’
lives are “ fair game” for the media
and have “ become a critical part of
governing and deciding who is to
govern.” Mr. Sidey predicts that
Senator Bob Dole has the best
chance of becoming the next presi­
dent. He concluded by saying, “ The
media have created standards for
people in politics that are impossible
to meet.”
Les Mehlhaff, chief of staff, U.S.
Small Business Adm inistration
(SBA), shared his thoughts on cur­
rent happenings at the SBA. He told
bankers, “ If you remember one
thing today, it is that the SBA is
here to stay.” He went on to add,
“ SBA is very much in the loan busi­
ness—a partnership to help small
businesses.” Mr. Mehlhaff noted
that SBA has over $200 million
available each month, “ and over $25
million is left unborrowed each
S econ d -d a y general session
speaker Philip D. Steffen, CSP and
head of his own consulting firm in
Marietta, Ga., entitled his presenta­
tion “ a blinding flash of the ob­
vious.” Mr. Steffen’s material cen­
tered on “ professional excellence
through management and leader­
ship,” and reminded bankers that
their number one goal is to turn a
profit for the shareholders of the
Mr. Steffen, who intermixed
humor with common sense, related
his many insights on job satisfac­
tion, proper management of time
and one’s ability to be successful.

LEFT—Taking part in the second day’s business session were, from left: Philip D. Steffen, consultant, Marietta, Ga.; Donald G. Ogilvie,
exec, v.p., ABA, Wash., D.C., and Mr. Broderick. RIGHT—Encouraging bankers to look to the SBA for funding of small businesses was
Leslie Mehlhaff, chief of staff, SBA, Wash., D.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


If you want your investment dollars to work hard,
you need a hard-working team behind you. Your
FirsTier Investment Division team.
When we put our heads together, things
happen. Investments earn healthy returns without
sacrificing liquidity or safety. Plus, we can help you
gain even greater profit through many tax-free
Our professionally-trained team has the experi­
ence and knowledge to assist you in developing a

Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis

portfolio that will earn the maximum return and
meet your quality and liquidity objectives.
From Municipals, Governments and Com­
mercial Paper to Negotiable CDs and Mortgage
Backed Securities, we know the markets and the
innovative techniques to assist you in meeting your
investment needs.
For investment management that outperforms
your most ambitious expectations, let our Investment Division team perform for you.




that w orks

Lincoln—(Left to Right) Marlene Wagner, Vance Mehrens,
Jay Callahan

to serve you



In Nebraska: 800-642-9305
Outside Nebraska: 800-228-9175

In Nebraska: 800-742-7462

FirsTier Bank, N.A., Omaha and FirsTier Bank, N.A., Lincoln, Members FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


LEFT— Present during the opening business session were, from left: Hugh Sidey, contributing editor, Time; Conv. Chmn. Pete Cappa, v.p.,
Norwest Bank S. Dak., Rapid City, and Mr. Broderick. RIGHT— Deborah Gates, adm. v.p., SDBA, was honored for her ten years of service
during the convention. Presenting the award to her is Mr. Broderick.

LEFT— And the winners are...during the “ International Gala” reception, from left: Pat Farrar; Mr. & Mrs. R.G. Knodel, chmn., First State,0
McLaughlin; Doug & Lori Peterson, v.p., Rushmore State, Rushmore, and Karen Kirkeby, Sioux Falls. RIGHT—Enjoying the reception
were, from left: Boyde Hopkins, chmn., Hopkins Financial Corp., Mitchell; Gary Stevenson, v.p., First Natl., Sioux City, and Mike Hefner,
tax mgr., Williams & Co., Sioux City.

LEFT— Present during the Norwest dinner were, from left: Jan & Lee Jacobson, v.p., Bryant State, Bryant; Don Hooper, v.p., Norwest Bank
S. Dak., Sioux Falls; Boyd Waara, v.p., First Natl., Philip, and his wife Cheri, and Bob Rasmussen, v.p. & mgr., Norwest, Mpls. RIGHT—Also
in attendance were, from left: Jan and Craig Johnson, v.p., Norwest Bank S. Dak., Sioux Falls, and Mike Bodeen, a.v.p., Norwest, Mpls.

LEFT—Vern Holter, left, pres., First Bank S. Dak., Vermillion, discusses information with George T. Kirk, mktg. mgr., First Fin. Mgmt. Corp.,
Sioux Falls. RIGHT—Enjoying themselves at the Security Natl., Sioux City dinner were, from left: Rich Waller, sr. v.p., Security Natl.;
Sherm Visscher, v.p., First Fidelity Platte, and his wife Lois; Tom Lillibridge, pres., First Fidelity, Burke, and his wife Cindy, and Ron Kiel, 4H
corr. bkg. off., Security Natl.
Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis


LEFT— The Broderick family, from left: Perlina and Bernard Broderick, Sioux City; Lois and Mike Broderick, pres., First American, Canton,
and Debbie Broderick, Ft. Collins, Colo. RIGHT—Taking part in the convention activities were, from left: Don Lindeman, a.v.p., Amer. Natl.,
St. Paul, and his wife, Ev; Ken Erdahl, exec, v.p., Robert County Natl., Sisseton, and his wife, Bonnie, and Jim Russell, v.p. & mgr., Amer.
Natl., St. Paul.

“ The philosophy that you’re either
too old or young to be a success is
not true,’ ’ he said. “ Look at actress
Tatum O ’Neal, who won her first
*Oscar award as a teen-ager, and how
George Burns didn’t receive his
until he was 80 years old,’ ’ he
related. Mr. Steffen gave the ex­
amples of Col. Sanders, who was
*drawing social security at age 65
and a millionaire at age 68.
Pride and enthusiasm were two
qualities Mr. Steffen said were
needed on the job. He also pointed
'out that there are two parts to being
p ro d u ctiv e —ability and effort.
“ Always give just a little bit more,’ ’
Mr. Steffen encouraged. He chal­
lenged his audience to maintain a
good sense of humor, use common
sense and employ empathy.
Concluding the general session
was Donald G. Ogilvie, executive
vice president, ABA , Washington,
D.C. In his talk, Mr. Ogilvie updated
bankers on legislative issues facing
the industry, particularly relating to
the recapitalization of the failing
FSLIC fund. “ The A B A supports
this avenue,” he said, “ and opposes
any legislation that would encour­
age the merging of the FSLIC and
the FDIC.”




Entertainment and Activities
Bankers and spouses were kept
“ on the g o ” with various activities
throughout each day and entertainment each evening. When not at­
tending the general sessions, con­
vention-goers were treated to “ an
International Gala reception” featuring Mexican, German, Oriental
and American food. Participants
were encouraged to wear ethnic cos­
tumes. An all-convention dance fol­
During the afternoon, separate
men’s and women’s golf tourna-
Federal Reserve Bank of St. Louis

ments were held amid beautiful
scenery. The annual past-presidents’
luncheon was held, as well as a presi­
dent’s reception in honor of Mr.
Ness. Following was the all-conven­
tion banquet during which the
SDBA presidential duties were
passed on. “ The Great Pretenders”
entertained with music from gospelto fifties-style tunes.
The 1988 SDBA Convention will
be held in Sioux Falls, May 15-17, at
the Ramkota Inn.

Elected in Sioux Falls
At First Bank of South Dakota,
Sioux Falls, Cynthia A. Geiwitz has
been elected vice president and trust
officer and Dawn R. Stahl has been
elected pension trust officer.
Ms. Geiwitz joined the bank in
1982 as a trust administrator in the
Rapid City location. She became
manager of the employee benefit
trust division in Sioux Falls last
November. Ms. Stahl joined the
bank in April, 1986 as a pension
trust administrator.

Norwest Names Two
Norwest Bank South Dakota has
announced Christy Davis has been
named credit officer. She joined Nor­
west in 1982 in Brookings and in
1984 was named an ag banking rep­
resentative. She transferred to the
Stockyards branch in Sioux Falls in
1985 and last year was promoted to
ag banking officer.
Sharon Oliver has been named
personal banking officer in Aber­
deen. She joined Norwest Audit Ser­
vice in 1979 and in 1983 transferred
to Aberdeen as an accounting/control officer. In 1984 she was named
credit officer.

(Continued from page 24)
Christine M. Long has joined
MONEY STATION of Illinois, Inc.,
Chicago, as vice
p r e s id e n t
marketing and
sales. She comes
from M urdoch
and Coll, Inc.,
Chicago, a real
e s ta te
firm ,
where she was fin a n cia l a sse t
m a n a ger and
head of Chicago
office property operations. Prior to
that she served as a corporate plan­
ner and lending officer for First Na­
tional Bank of Chicago.
MONEY STATION has also an­
nounced it has named two advisory
council chairmen. John G. Eilering,
senior vice president of First Na­
tional Bank of Mount Prospect, has
been named chairman of the sys­
tems and operations advisory coun­
cil. Thomas J. Rinella, senior vice
president of St. Paul Federal Bank
for Savings, Chicago, has been
named chairman of the sales and
marketing advisory council.
* * *
Adalys Rivero has been promoted
to assistant vice president at Com­
munity Bank of
Edgewater. Ms.
Rivero serves as
a ssista n t vice
president and as­
sistant manager
of Com m unity
Bank of Edgewater’s personal
banking depart­
ment. Previous­
ly she was a per­
sonal banking officer for Communi­
ty Bank of Edgewater.
Northwestern Banker, June, 1987


1987 Annual

North Dakota Bankers
Association Convention
June 15-16
International Inn, Minot





HE THEM E of this year’s North Dakota Bankers
Convention, “ Sharing the Work, Sharing the
Pride,” is taken from the television spots the organiza­
tion has sponsored this year. North Dakota bankers
will gather at the International Inn in Minot on June
N DBA President Harvey Huber, president, Union
State Bank, Hazen, has been assisted this past year by
President-Elect John W. Pierson, chairman of Norwest
Banks in Minot, Bismarck and Mandan; Treasurer
Roger Berglund, president of Dakota Western Bank,
Bowman, and N DBA Executive Director Harry
In the recreation department, the convention begins
with men’s and women’s golf tournaments. The busi­
ness sessions include a number of interesting speakers,
among them journalist Jerry Levin, held hostage by
terrorists in Beirut in 1984; Representative Douglas
Barnard of Georgia, a former banker; investment ex­
pert James Vining; former governor George Nigh of
Oklahoma, now a full-time speaker; A B A Treasurer
Thomas Rideout, and political journalist Hugh Sidey.
Featured entertainers are Dakota Dixies and LIFE.
The complete convention program follows:


Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis


North Dakota’s Bankers:
Sharing the Work,
Sharing the Pride

Monday June 15

Ladies’ golf tournament.
Men’s golf tournament.


Registration opens.
Exhibits open.
President’s reception.
Dinner, banker awards, entertainment by
Dakota Dixies.
Tuesday, June 16

7:30 Prayer breakfast.
“ U n fin ish ed B u sin ess in the M id d le
East” —Jerry and Sis Levin, journalist, CNN.
8:45 Registration opens.
9:00 General session.
Presiding—N DBA Pres. Harvey Huber.
Address—Hon. Douglas Barnard, Jr., U.S.
Congressman from Ga.
10:00 Coffee break.
10:15 “ Investment Strategies in a Low Rate Mar­
ket” —James Vining, pres., Vining-Sparks
Securities, Inc., Memphis, Tenn.


12:30 Joint luncheon, news update, golf awards.
“ Things Are Not Always As They Seem” —
George Nigh, former governor, Okla.
2:00 General session.
“ The Presidency” —Hugh Sidey, journalist,
2:45 Break.

You Will See Them at the
North Dakota Convention
HE follow in g m etropolitan
bankers and service and equip£ ment dealers have indicated they
will be attending the annual conven­
tion of the North Dakota Bankers
Association in Minot on June 15-16.


Minneapolis/St. Paul
American National Bank: John P.
Seidel, James A. Russell, Craig
First Bank, Capital Markets/Correspondent Services: Allen G.
Highum and Jack Quitmeyer, vice
presidents; Michael McArdell, Dave
Williams and Dolores D. Walstrom,
assistant vice presidents; Peter J.
Mehlhaff, correspondent banking of­
Marquette Bank: Jack Campion,
Minnie Schroeder.

3:00 “ Banking and the Future—A Longer View” —
Thomas Rideout, A B A treas. and s.v.p./dir. of
govt, rel., First Union Corp., Charlotte, N.C.
3:30 Annual NDBA business meeting.
4:15 Recess, exhibits open.
6:30 Reception.
7:45 Convention banquet, installation of officers,
entertainment by LIFE.

elected chairman of that bank and
named to the additional posts of
chairman and managing officer of
Norwest Bank Bismarck, and chair­
man of Norwest Bank Mandan.
Thomas R. Stockert, senior vice
president and cashier of the Minot
bank, has been elected president and
managing officer of Norwest Minot,
succeeding Mr. Pierson.
Steven D. Jacobson continues as
president of Norwest Bank Bis­
marck. W. Warren DeKrey, current
chairman, will remain with the Bis­
marck bank in an advisory capacity
until his scheduled retirement later
this year.
Gary A. Flaa continues as presi­
dent of Norwest Bank Mandan.
Mr. Pierson has been with Nor­
west since 1965, and has served at
Lewistown and Great Falls, Mont.,
Mason City, Iowa, and Fargo. He
was elected president and CEO of
the Minot bank in 1982. Mr. Pierson
is also president-elect of the North
Dakota Bankers Association.
Mr. Stockert joined Norwest in
1963. He has served in Valley City,
Sioux Falls, S.D., and Hoyt Lakes,
Minn, (now Norwest Bank Mesabi).
He joined the Minot bank in 1976 as

joined the bank in 1979 and pre­
viously held the position of assis­
tant vice president. He also serves
as the bank’s corporate pilot.
Kenneth Unhjem has joined the
bank as an agricultural representa­
tive and loan officer. His past ex­
perience includes ten years as busi­
ness manager of the Crosby Clinic
and ten years as administrator of St.
Luke’s Hospital in Crosby. He is
also an experienced farmer.

Acquisition Proposed
for West Fargo St. Bank

First National Corporation, the
holding company which owns First
National Bank in Grand Forks and
Northwood State Bank, and First
Dakota Bancorporation, Inc. have
jointly announced the execution of
an agreement related to the pro­
posed acquisition of West Fargo
State Bank by First National Corpo­
Bank Equipment and Other Firms
for cash in the amount of ap­
% Dawson Hail Insurance, Fargo:
$4.2 million.
Dennis Christofferson, Norm Selzle,
The acquisition is subject to ap­
Deb Dawson, Lyle Askerooth.
proval of a definitive agreement by
Modern Computer Systems,
applicable banking authorities, the
Omaha: Bill Stohr, sales representaboard of First National Corporation,
• tive; Mike Coalwell, customer sup­
and the board and shareholders of
port; Dan Kesky, sales representa­
First Dakota Bancorporation, Inc.
A t March 31, 1987, West Fargo
North Central Companies, St.
Appointed in Grand Forks
State Bank had approximately $37
Paul: Keith Falconer, regional manCommunity National Bank of million in assets. No staff changes
• ager; Dave Okeson, regional man­
Forks has announced the ap­ are anticipated.
p o in tm e n t o f
Norwest Announces Changes Bill Lee as ex­
Added in Minot
v ic e
Norwest Corporation has an- e c u t iv e
Herbert J. Kleinsasser has joined
• nounced new management teams p r e s id e n t
American Bank & Trust,
and organizations for its banks in charge of com­
Minot, as loan review and credit
Bismarck, Mandan and Minot.
analyst. He previously served for
Mr. Lee began
five years at the Farmers State
his career with
Bank of Crosby, most recently as
the State Bank
cashier. Prior to that he spent seven
of Lakota, Lakoyears with the state banking depart­
ta, and later
moved to First
Bank of Fargo, Fargo, where he
served as assistant vice president of Elected in Fargo
commercial lending.
Ronald G. Hayes, president and
CEO of American Crystal Sugar
Changes Told in Crosby
Company, was elected to the board
Paul Hanisch has been promoted of directors of Norwest Bank Fargo
John W. Pierson, president of to vice president and cashier at the at the bank’s March 17 board meet­
Norwest Bank Minot, has been Farmers State Bank of Crosby. He ing.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987

84th Annual
Montana Bankers
Association Convention
June 24-26
Sun Valley, Idaho




ONTANA bankers are invited to “ Catch some
sun in Sun Valley” as their 84th Annual Conven­
tion takes place at the Idaho resort on June 24-26. Pre­
siding at the gathering will be Montana Bankers Asso­
ciation President W.E. “ Buster” Schreiber, chairman
and president of Mountain Bank of Whitefish. He has
been assisted this year by Vice President James Ben­
nett, president of First Citizens Bank Billings; Trea­
surer Lynn Grobel, president of 1st National Bank of
Glasco, and Executive Vice President John T. Cadby.
In addition to business meetings and excellent
speakers, the convention offers a men’s 18-hole golf
scramble, a women’s 9-hole golf tournament, mixed
doubles tennis tournament, trap and skeet, and a varie­
ty of activity options at Sun Valley. Friday evening’s
dinner dance will feature a southern atmosphere with
cajun cuisine and Dixieland music by “ The Many
Sounds of Nine.”
The complete convention program follows:
Wednesday, June 24
8:00 Registration opens.
12:00 Exhibits open; Executive Committee meeting.
2:00 M BA and M B A Services Board of Directors
4:00 Senior Bank Management Committee meeting;
BankPac Trustee meeting.
Thursday, June 25
8:00 Registration opens.
1:00 Election of area directors, areas 1, 2, 3.
1:15 Business Session—W.E. “ Buster” Schreiber,
M BA pres.
“ Meeting the Intensifying Demands on Bank
Leadership: Keys to Survival & Success” —Dr.
Charles Williams, Harvard Business School.
2:00 “ Performance Planning” —William F. Staats,
prof, of banking, Louisiana State U.
3:00 Afternoon break.
3:30 “ Tort Reform: Wrongful Discharge, Punitive
Damages, Bad Faith and D&O Liability” —
George T. Bennett, M BA counsel.
4:30 Annual membership meeting.
President’s report.
Election of officers.
4:45 Adjournment.
6:00 M BA Welcome Reception—Mexican style.
Dinner on own.




Vice Pres.


Banker, June, 1987
Federal Reserve Bank of St. Louis

Friday, June 26
7:30 Light breakfast.
25 Year Club no-host breakfast. Presiding—
Gene Coombs.
Speaker—Louis Stur, “ A History of Sun Val­
8:30 Business session—Jim Bennett, new M BA
“ Farm Production, Prices and Politics for
1988” —Dr. John Marten, staff economist, The
Farm Journal.
9:00 Ladies brunch.
9:30 “ Dealing with the Changing Operating Environment” —Thomas F. Tabasz, v.p. & econo­
mist, First Interstate of Washington, Seattle.
10:30 Morning break.
11:00 “ Things Aren’t Always As They Seem” —for­
mer gov. of Okla. George Nigh.
12:00 Adjournment of business session.
6:30 Southern reception.
7:30 President’s dinner dance, “ A Night at Tara.”
Dixieland dancing to The Many Sounds of
12:30 Convention ends.
(Turn to page 38, please)






_ T HE G REAT American Pastime will be celebrated
® I by W yoming bankers this year as their annual con­
vention, “ It’s a Whole New Ball Game!,” is held June
14-16 at Jackson Lake Lodge in Moran.
Presiding over the gathering will be W B A President
^ N.P. Van Maren, Jr., vice chairman, Hilltop National
Bank, Casper, who will be succeeded in that office by
William Ruegamer, president, First Interstate Bank,
Sheridan. This past year the two have worked with
W B A Second Vice President Auburn Dowdy, presi^ dent, Norwest Bank, Cheyenne, and W B A Executive
Director Gretchen Tea.
Speakers at the convention will in particular address
new developments in the financial industry since dere­
gulation. James Sulgrove will speak on the A IB and
^ Arch Lustberg will discuss communications. On the
16th a number of excellent recreational activities will
be offered, including golf, fishing, a tennis clinic, and a
scenic river float trip.
The complete convention program follows:
Sunday, June 14
1:00 Registration opens.
3:00 “ Umpires’ Panel” —Walter Thompson, deputy
reg. dir., FDIC; James W. Timmel, dir., Salt
Lake City office of Comp, of the Currency;
Stanley R. Hunt, state exam.
Monday, June 15
7:30 Registration opens.
President’s breakfast.
8:30 Business session. Presiding—W B A Pres. N.P.
Van Maren, Jr.
9:15 “ Covering All the Bases” —C.C. Hope, dir.,
10:00 “ 1, 2, 3 Strikes Y ou’re Out...or Are Y ou?” —
Wilbur T. Billington, e.v.p., Kansas City Fed.
Women’s golf tournament.
Elk Island picnic cruise.
10:45 “ AIB...Improving Your Batting Average” —
James Sulgrove, state A IB comm, chmn., v.p.,
First Natl. Bank, Gillette.
11:00 Membership meeting, election of officers.
11:30 Joint luncheon. Speaker—J. Denis O ’Toole,
dir. legis. operations and sr. legis. counsel,
1:30 Business session. Presiding—new W B A Pres.
William H. Ruegamer.
“ Winning at Confrontation” —Arch Lustberg,
Arch Lustberg Communications, Inc., Wash­
ington, D.C.
4:00 Adjourn.
6:30 Reception, banquet, entertainment and danc­
ing with Morningstar.
Tuesday, June 16
7:30 Fishing derby.
8:00 Men’s golf tournament.
9:00 Ladies’ champagne breakfast.
10:30 Fishing derby.
11:30 Tennis clinic.
Scenic float trip.
6:30- “ Bottom of the Ninth” —closing refreshments.

79th Annual

Wyoming Bankers
Annual Convention
June 14-16
Jackson Lake Lodge, Moran


Federal Reserve Bank of St. Louis




Northwestern Banker, June, 1987


this transaction, acquiring the First
National Bank of Lovell. Mr.*
Miracle stated that these steps were
Net charge-offs in the first quar­ on track and the transactions should
ter were $5.4 million and the ending be closed early in the fourth quarter.
allowance for loan losses was $10.1 You Will See Them at the
million. At March 31, equity capital Wyoming Convention
was $21.6 million and primary capi­
HE following service and equip­
tal was $32.7 million or 7.1% of total
ment dealers have indicated
assets. Total assets at quarter-end
were $447.2 million, total deposits they will be attending the annual^
were $384.8 million, and total loans convention of the Wyoming Bankers^
Association in Moran on June 14-16.
were $226.5 million.
Central States Health & Life,
“ While the largest improvement
was in the reduction of the provision Omaha: Pat Keitges, regional vice
for loan losses,” Mr. Miracle said, president; John Owens, W yoming £
“ we are particularly pleased that regional manager; Gary Craft,
non-interest expenses for the quar­ Wyoming regional manager.
Kansas Bankers Surety Co.,
ter have been reduced some 14%
from the first quarter of 1986. This Topeka: Don Towle, president; Dave
represents cost saving efforts that Abendroth, vice president.
Modern Banking Systems, Inc.,
will bear fruit quarter after quar­
Omaha: Gary Moore, president;
At the end of January, Affiliated Frank Stearns, senior sales repre­
announced it was acquiring $11.7 sentative; Tom Lahti, vice presi­
million of additional capital and in dent.

Affiliated Reports 1st Quarter Upturn
Affiliated Bank Corporation of
Wyoming has reported its financial
results through
March 31, 1987.
R .W . M iracle,
p resid en t and
CEO of Affili­
a te d , s t a te d ,
“ For the first
qu arter 1987,
Affiliated is re­
porting earnings
$ 5 3 4 ,0 0 0
($0.45 per share).
This compares to earnings of
$14,000 ($0.01 per share) in the first
quarter of 1986 and a loss of $6,569,
000 ($5.54 per share) in the fourth
quarter of 1986.“
Mr. Miracle called the results “ a
meaningful return to profitability,
in spite of the economic conditions
in our markets not yet improving.”

(Continued from page 36)

You Will See Them at the
Montana Convention
HE follow in g m etropolitan
bankers and service and equip­
ment dealers have indicated they
will be attending the annual conven­
tion of the Montana Bankers Asso­
ciation in Sun Valley, Idaho, June


Minneapolis/St. Paul
American National Bank: Donald
R. Lindeman, James A. Russell, Bob
Rosenberg, Dick Pringle.
First Bank, Capital Markets/Correspondent Services: Kenneth A.
Wales, senior vice president; Allen
G. Highum, vice president; D.D. Lee
and Darryl R. Nelson, assistant vice
Marquette Bank: Dick Holmes,
assistant vice president.
Bank Equipment and Other Firms
M odern C om puter S ystem s,
Omaha: Bill Stohr, sales representa­
North Central Companies, St.
Paul: Bob Nelson, regional manager.

Exhibitors Announced
The following companies will be
among exhibitors appearing at the
1987 Montana Bankers Association
Annual Convention:
Northwestern Banker, June, 1987
Federal Reserve Bank of St. Louis


Minnehoma Insurance Company,
Denver, Colo.
Union Bank—Advisory Services
Group, Los Angeles, Calif.
CFI Bankers Service Group, Inc.,
Bozeman, Mont.
M ainwaring—Corey Insurance
Services, Missoula and Bozeman,
B anclnsure, Oklahoma City,
LarMel Salary Continuation Plan,
Helena, Mont.
M BA Group Insurance Trust,
Helena, Mont.
M BA Mortgage Insurance, Bill­
ings, Mont.

Livingston Bank Sold
On April 29, First Bank System
announced that it had signed a pur­
chase agreement for the sale of First
Bank Livingston, Livingston. Upon
regulatory approval, the bank will
be purchased by a group of investors
headed by Bob Gersack, president of
First Bank Livingston. Specific pur­
chase terms were not disclosed. At
year-end 1986, the bank had assets
of $49 million.

Changes Told in Great Falls
First Interstate Bank of Great
Falls has announced three staff
Frank Boucher, Jr. has been pro­
moted to assistant vice president.
He joined the bank in 1985 as com­

mercial loan officer and transferred
to the credit department as manager
in 1986. Mr. Boucher started his®
banking career in 1978.
Mark Costello has been appointed
an agribusiness loan officer. He
joined the bank in 1986 as an agri­
business loan trainee.
Donna Sowers has been appointed
credit department manager.

Added in Cut Bank
The First National Bank of Cut ®
Bank has announced the hiring of
Arthur E. Winsky of Harlowton as the bank’s
new agricultural
Mr. Winsky has
a degree in agri­
cultural produc­
tion from Mon­
tana State Uni­
versity and until
recently was inA E- WINSKY
volved in ranching in partnership ^
with his father.

Lewistown Bank Sold
First Bank System has an­
nounced the sale of First Bank _
Lewistown, with $101.4 million in
assets, to Jim Bennett, president of
First Citizens Bank in Billings, and
John Vucurevich, who owns banks
in Montana, South Dakota and Wis- ^


United Banks Announces
Staff Changes











United Banks of Colorado, Inc.
has announced numerous staff
At the corporate office, three new
officers have been appointed:
Donald W. Robotham, executive
vice president—credit administra­
tion; Susan K. Koonsman, vice pres­
ident-hum an resources, and Robert
L. Schoep, vice president and controller. Mr. Robotham joined United
Bank of Denver in 1960 and was
most recently senior vice president.
Ms. Koonsman most recently was
senior vice president at IntraWest
Financial Corporation. Mr. Schoep
joined United Banks as senior ac­
countant in 1974 and was appointed
controller in 1984.
United Banks of Colorado, Inc.,
has also elected four new directors:
Robert G. Boucher, formerly presi­
dent and chairman of IntraWest Fi­
nancial Corporation, will serve as
vice chairman of United Banks as
well as chairman and CEO of the
mortgage company. Frederick C.
Hamilton is chairman, president and
CEO of Hamilton Oil. Roland L.
Mapelli is chairman of the board of
Monfort of Colorado. George S.
Writer, Jr. is CEO of the Writer Cor­
A t United Bank of Denver, Andrew B. Kane and George Y. Kolva,
Jr. have been named vice presidents,
James R. Conley, was promoted to
assistant vice president, Laura L.
Edelen was named manager of check
services’ proof department, William
C. Knorr was named an officer in the
funds department, Lenore A. Marti­
nez was named an officer in asset
management’s corporate trust services, and Edward T. Williams was
named commercial banking officer.
Samuel L. Leeper has been named
president and chief operating officer
at United Bank of Fort Collins.
David E. Bailey will remain chair­
man of the board and CEO. Mr.
Federal Reserve Bank of St. Louis

Leeper spent the last seven years as
president of IntraWest Bank of
Jack C. Heimbichner has been
elected president of United Bank of
Aurora—City Center. John T. Ken­
nedy, chairman, CEO and president
of United Bank of Aurora, will serve
as chairman and CEO of United
Bank of Aurora—City Center. Mr.
Heimbichner began his banking
career in 1973, and has spent 13
years at United Bank of Aurora, the
p a st' four as senior vice president
and senior lender.
Richard J. Swanson has been
elected to the board of United Bank
of Littleton. He is president, trea­
surer and a director of Real Estate
Associates, Inc.

CNB Announces Changes

in 1979 and is currently responsible
for the overall supervision of the ac­
count services department. Mr.
War savage began with the bank in
1983 and is responsible for the
bank’s check processing and maga­
zine departments.
At Colorado National B a n k Grand Junction, Ronald W. Sher­
wood has joined as vice president
and cashier and Michael A. Wilson
was elected an assistant vice presi­
dent in commercial lending. Mr.
Sherwood began his banking career
in 1963, and in 1972 joined First Na­
tional Bank—North and served
there as vice president and cashier
until the bank’s merger last year.
Mr. Wilson served Palisades Na­
tional Bank from 1965-1978, and
most recently was executive vice
president of Gunnison Bank and

Changes Told by
First Interstate-Denver
First Interstate Bank of Denver
has elected three new vice presi­
dents: Robert W. Lewis, treasury;
Katherine L. Polk, treasury, and
H.R. Vogel, credit administration.
Mr. Lewis began with the bank in
1983. Ms. Polk has worked for the
bank for 32 years. Ms. Vogel has
been employed there for 27 years.
The bank has promoted two to
assistant vice presidents: Kathleen
S. Dolan, corporate banking, and
Michael W. Zimmer, treasury.
Also promoted to officers were
Tony W. Adams, corporate banking;
Kay M. Alig, financial and adminis­
trative services; Mary F. Bond, cor-

Colorado National Bankshares
has announced recent staff changes.
M ax W iley,
who until recent­
ly was chairman
of the board and
p r e s id e n t
IntraWest Bank
of Boulder, has
joined Colorado
(Turn to page 46, please)
National Bankshares as senior
vice president,
Convention Update
subsidiary ad­
A t the time this issue was
ministration. Mr. Wiley joined
going to press, the Colorado
IntraWest in 1973. He will be re­
Bankers Association was hold­
sponsible for the two Colorado Na­
ing its Annual Convention at
tional Banks in Boulder as well as
the Broadmoor Hotel in Colo­
those subsidiaries in Lakewood, Ar­
rado Springs.
vada, Longmont, Greeley and Fort
Jon Coates, chairman, Cen­
tury Bank of Denver, was sche­
Margaret E. Me Wee has been
duled to advance as president
elected an assistant vice president of
of the association, succeeding
Colorado National Bank—Boulder.
A.J. “ Tony” Anderson, presi­
She joined the bank in 1977 and cur­
dent, Kiowa State Bank,
rently manages the bank’s facility
at 30th and Pearl.
The complete convention re­
Gisela M. Davis and Ted Warsavport with photos will appear in
age have been elected operations of­
the July issue of The N orth ficers of Colorado National B a n k w e st e r n B a n k e r .
Boulder. Ms. Davis joined the bank

Northwestern Banker, June, 1987


Here’s One lin e
That Says More About Us
Than Anything.
When it comes to gauging success, one of the key indicators is total assets.
First National Bank of Omaha* has one of the best records of any financial institution
in Omaha.
We’re proud of our solid growth. And proud to serve you — and assure you —
with our strength, financial expertise and experience.
Few institutions offer you what we can in performance and stability. Wouldn’t
you rather trust your money to the people who consistently prove they know how to
manage it?
In 1986 we achieved $1,118,046,000.00 in total assets. That’s why we’re proud
of our name.
* First National of Nebr., Inc.

No Wonder They Call Us First.

firs! national bank
of omaha
Member FDIC
Banker, June, 1987
Federal Reserve Bank of St. Louis


NBA 1987-88 OFFICERS (left to right): Immed. Past Pres — C.G. (Kelly) Holthus, York;
Pres.— Donald E. Blaha, Ord; Pres.-Elect— Harley D. Bergmeyer, Wilber; and Exec. V.P.—
Stan Matzke, Jr., Lincoln.


Don Blaha Named President of NBA











||M| EETING in Lincoln last month
IIw I for their 90th annual conven­
tion, members of the Nebraska
Bankers Association elected Donald
E. Blaha as NBA president for 198788. Mr. Blaha is president and CEO
of the First National Bank in Ord
and Farmers Bank of Sargent.
As NBA president, he succeeds
C.G. “ Kelly” Holthus, president
and CEO of First National Bank of
Following Mr. Blaha as the Asso­
ciation’s president-elect is Harley D.
Bergmeyer, president and chairman
of Saline State Bank in Wilber.
Stan Matzke, Jr. continues as
NBA executive vice president and
head of the Lincoln headquarters
Eight bankers were formally
elected to three-year terms on the
policy-making executive council.
They are:
Group 1—Frank Bruning, president, Bruning State Bank.
Group 2—John Peck, president,
First National Bank, Columbus.
Group 3—Jeff Gerhart, executive
vice president, First National Bank
of Newman Grove.
Group 5—Bill McQuillan, execu­
tive vice president, City National
Bank, Greeley.
Group 7—Charles Undlin, president, Norwest Bank Nebraska,
Federal Reserve Bank of St. Louis

Group 7—Lawrence Comine, Jr.,
senior executive vice president, FirsTier Bank, Omaha.
Group 7—Gerald Karlin, presi­
dent, Southwest Bank & Trust Co.,
In addition, Rodney P. Vandeberg, president, First National Bank
& Trust Co., Falls City, was ap­
pointed to the governing board for a
term of one year to fill the Group 1
vacancy created by the election of
Mr. Bergmeyer as president-elect.
Members of NETS, Inc., elected
Fred Otten, president, Commercial
State Bank, Hoskins, to a two-year
term on the NETS board of direc­
tors. He succeeds James D. Lutes,
president and CEO of Scribner
Bank, who was the remaining mem­
ber of the original board that
founded NETS 10 years ago.
Nearly 900 bankers, spouses and
exhibitors were registered for the
convention at the Cornhusker Hotel
in Lincoln. The convention got
underway Thursday evening with
the traditional NBA Correspondent
Banks’ Annual Hospitality Night.
Hosts were First National Bank of
Omaha, FirsTier Banks of Omaha
and Lincoln, National Bank of Com­
merce in Lincoln, and Norwest Bank
Nebraska, Omaha.
Registrants gathered Friday
morning for a Trade Show Breakfast
in the exhibit area and they also vis-

ited the Trade Show area for a morn­
ing and afternoon break.
President Kelly began the first
general session by introducing Dr.
Thomas W. Faranda, Ph.D., who
heads his own training and consult­
ing firm that deals with manage­
ment motivation. His talk on “ Ten
Commitments to Excellence” was a
dynamic one, presented in a unique
way. Mr. Faranda had given each
member of the audience an advance
booklet outline so that as his talk
proceeded they only had to fill in key
words and phrases.
Donald G. Ogilvie, executive vice
president of the American Bankers
Association, was made an honorary
member of the N BA Past Presidents
Club. In his visit with bankers at the
general session, he recounted the
Congressional legislative moves so
far this year and stated, “ The first
quarter Congress has not been very
productive for banks.” He did note,
however, that building affirmative
banking legislation is a long-term
process and the past months and
years of work by A B A and other
banking organizations is now pro­
ducing a foundation of Washington
support from the Administration,
regulatory bodies and many other
business groups. “ It remains now to
convince the Congress,” he said,
“ and if we can get eight or nine key
House and Senate members to side
with us we can get our legislative
package enacted.”
Mr. Ogilvie said the superb grass
roots efforts of bankers is making a
difference in advancing A B A spon­
sored positions. He called for more
BankPac support, noting how other
groups with limited numbers take in
and expend large multiples of the
modest dollar amounts of BankPac
money handled by bankers.
Mrs. Cynthia Hardin Milligan,
Nebraska’s personable director of
the department of banking and fi­
nance, paid high compliments to the
NBA membership and its leaders.
She said, “ I plan to establish a
board of advisors made up of bank­
ers,” and indicated that the NBA
and Nebraska Independent Bankers
Association had already given her a
list of suggested names.
She specifically thanked NBA for
its cooperation in the vital area of
Economic Development, a move she
said “ that will help retain young
people in Nebraska by creating
meaningful jobs for them.”
Mrs. Milligan said her departNorthwestern Banker, June, 1987

ment records show a stabilizing and
upward trend in all areas of bank
reports reaching her desk. She
pointed out that after absorbing two
dozen bank failures earlier, “ not one
Nebraska bank has failed in the first
four months of 1987.”
The continuing problem for banks
today, she stated, “ is how to gener­
ate adequate income and good loans,
how to analyze and manage the in­
vestment portfolio better than ever
to maximize profits.”
Mrs. Milligan said the depart­
ment’s self-examination program for
banks is participated in at this time
by two-thirds of Nebraska’s state
banks and some national banks. A
re-evaluation of the program will be
undertaken and she asked for
bankers to contribute their input to
the study.
Ritch Davidson, senior vice­
emperor of Playfair, a Berkeley,
Calif., firm devoted to encouraging
laughter and fun to improve physi­
cal health, did a fine job through au­
dience participation in convincing
Nebraska bankers of such value as

he kept them laughing, clapping and
gyrating at the noon luncheon.
J. Thomas Madden, C.F.A., senior
vice president of Federated Re­
search Corp., Pittsburgh, discussed
“ The Economy and Financial Mar­
kets.” His last advice was to
“ shorten your bond portfolio matur­
ities. The main thing holding up the
stock market is liquidity. Tradi­
tionally, when a market break oc­
curs, the bond market leads the
stock market on the way down, and
that’s where I see us today.”
From that somber note, the audi­
ence tuned into another one of equal
concern, but from a totally different
perspective. Former Nebraska Dis­
trict Judge Sam Van Pelt gave a
candid view of the numerous indivi­
duals and organizations whose goal
seems to be the return of all land and
possessions free and clear to farmers
and “ little people,” while making
banks and bankers pay a heavy price
for laying all this past burden unne­
cessarily on the backs of these farm­
ers. Judge Van Pelt recounted a
string of hair-raising events and in­

34 Banks, Bankers Honored


URING the NBA convention, banks and bankers who reached significant mile­
stones in their careers during the past year were honored with plaques:

100-Year Banks:
The Carson National Bank of Auburn
First State Bank of Beaver City
First Nebraska Bank of Brainard
The First National Bank of Cambridge
The Dawson Bank
Farmers State Bank of Eustis
Farmers and Merchants Bank of Imperial
The First National Bank of Marquette
The First National Bank & Trust Company of North Platte
50-Year Bankers:
Herman Brockmeier, president, Farmers State Bank, Eustis
Harold R. Deitemeyer, president, First National Bank of Beatrice
James L. Gray, Sr., president, Coleridge National Bank, Coleridge
H.W. “ Bud” Hendriksen, current director, retired president, First National Bank &
Trust Company, Fremont
Robert D. Iske, current director, retired president, Springfield State Bank, Springfield
Otto Kotouc, chairman, Home State Bank & Trust Company, Humboldt
Richard McMullen, president, State Bank of Stella
Irvin F. Novak, current director, retired executive vice president, Saline State Bank
of Wilber
Vincent E. Rossiter, Sr., chairman and CEO, The Bank of Hartington
A.H. Walentine, current director and senior vice president, retired president, Bank
of Bertrand
Personal Economics Program—in recognition of excellence in economic education:
Vickie Clements, Lexington State Bank, Lexington
Gary Gannon, FirsTier Bank, Grand Island
Randy Shelden, First National Bank, York
NETWORKS outgoing director:
James D. Lutes, president and CEO, Scribner Bank, Scribner
In addition, 11 outgoing members of the NBA executive council and outgoing
NBA committee chairmen were presented plaques.
Banker, June, 1987
Federal Reserve Bank of St. Louis

dividual atrocities as he tried to
point out that banks have “ some™
real maniacs” out there as a minori­
ty to deal with.
Jack Jackson, chairman of Jack
Jackson and Associates, Ft. W o r th y
Tex., gave his enlightening andw
humorous address on “ The Chal­
lenge of Change in the Banking In­
dustry.” Mr. Jackson based much of
his talk on the experience of his 23^
years with American Airlines and
related the steps A A has taken to be
a strong airlines survivor to the
steps banks must take to do the
same in banking.
He said any individual business
will receive complaints, but the way
they are handled and responded to
“ will determine whether you keep a
customer long-term or if you have^
made a silent enemy.”
In his President’s Report, Mr.
Holthus attributed the success of
getting central filing legislation
adopted by a special session of th e#
legislature (by 48-0) to “ grass-roots
support.” He said central filing
avoids “ the costly alternative of pre­
“ Another area where we have#
made a very positive contribution to
our state’s banking environment is
in our advertising and marketing
program,” Mr. Holthus noted. “ The
new series of ads have significantly#
improved our credibility and our
He recounted also the work of his
NBA Task Force on Economic De­
velopment that is cooperating w ith #
state agencies in promoting this en­
Mr. Holthus said NBA “ has set
up a special committee of bankers
and attorneys to monitor Chapter#
12. W e’re going to need your help to
keep us posted on how Chapter 12 is
affecting your individual banks.”
The newly-elected president, Don
Blaha, also detailed the necessity fo r #
supporting economic development
and said N B A ’s Task Force has
“ planned a series of programs in
conjunction with the Nebraska De­
partment of Economic Developm ent#
to familiarize you with the financial
p a ck a g in g s e rv ic e s a v a ila b le
through the Economic Development
The Saturday morning program ^
featured Michael Reagan, 42, who
related many episodes from his life
as the son of famous actors Jane
Wyman and Ronald Reagan, a n d ^
through Mr. Reagan’s subsequentw


AT FirsTier reception, left to right: Becky and Jim Abbott, chmn., Abbott Bank Group, Alliance; Jan and Orrin Wilson, exec, v.p., FirsTier
Lincoln; Gayle and Bob Jones, chmn., 1st Natl., York; Mark Hahn, v.p., FirsTier Lincoln; Jim Fox, pres., 1st Natl., Albion; Elmer Mohl, pres.,
DeLay First Natl., Norfolk, and Gary Bieck, v.p., FirsTier Lincoln.


AT First National of Omaha reception, from left: Tom Bass, pres., Bank of Swanton, and Kathy Graff, Lincoln; Janet and Fred Kuehl, v.p.,
1st Natl., Omaha; Mary Ruth and Tom Jensen, 2nd v.p., 1st Natl., Omaha; Mary Kay and John Peck, pres., 1st Natl., Columbus, and Mary Jo
and Jim Doody, sr. v.p., 1st Natl., Omaha.

LEFT— Phil Straight, exec, v.p., United Missouri Bank, Kansas City, and Art Fritson, v.p., State Bank of Hildreth. RIGHi— Chris Dittmer,
acctg. mgr.; Kathy Kahler, bank software support, and Tom Shambo, v.p., all of Founders Financial Services, Lincoln.


AT Norwest Bank Nebraska reception, left to right: Chuck and Lois Undlin, pres, of host bank; Helen and Jack Moors, chmn., American
Natl., Sidney; Jerry Acheson, pres., American Security Bank, North Platte, and Howard Nielsen, v.p., Norwest Nebraska.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


LEFT—Kelly Holthaus, NBA pres.; Don Ogilvie, ABA exec, v.p., Cynthia Milligan, Nebr. dir. of bkg.; Don Blaha, pres-elect; and Stan Matzke,
NBA exec. v.p. RIGHT—(Front row) Kelly Holthus, Gov. Orr, and Virginia Holthus. (Back row) Don Blaha, Dorothy and Stan Matzke.

LEFT— Security Natl, of Sidney group: (Seated) Wayne Hoskinson , pres, of Harrison branch; Bob Conrad, vice chmn. of Sidney office, and
Lois Conrad. STANDING—Joanne Hoskinson; Chuck Leffler, Sr., chmn. and CEO, and Hermine Leffler. RIGHT—Skip Hove, chmn. an<*
CEO, Minden Exchange B&T; Al Schmid, pres., Bank of Midlands, Papillion; Bill Cook, Jr., pres, and CEO, Beatrice Natl. B&T; Mel Adams,
chmn. and CEO, Adams B&T, Ogallala, and Harold Stuckey, pres., and CEO, Lexington State B&T. All except Mr. Schmid are past pres of


LEFT—John Miller, NETS exec, v.p.; Gov. Kay Orr; Jim Lutes, pres, and CEO, Scribner Bank, and Jack Holmquist, pres., York State B&T.
RIGHT—Sam O’Neal, Omaha; Harriet Bauer, Minneapolis, and John Reynolds, Minneapolis, all with Norwest Technical Services, Inc.

public life as Governor of California
and now President of the United
Governor Kay Orr also addressed
that breakfast meeting to thank
Nebraska bankers for their support
of economic development and to
petition for its continued strong sup­
port. Governor Orr and President
Holthus then concluded the conven­
tion by presenting plaques to all the
award recipients (listed separately).
On Friday night, registrants at­
tended the President’s Reception at
The Cornhusker, adjourned by bus
to hear the Osmond Brothers stage
show, then returned to The Corn­
husker for dancing.
Banker, June, 1987
Federal Reserve Bank of St. Louis

App Filed for Minatare
An application has been filed with
the Federal Reserve Bank of Kansas
City under the Change in Bank Con­
trol Act giving notice that Gary L.
Kelley, president of Minatare State
Bank, Minatare, plans to acquire
100 percent of the voting shares of
Minatare State Company, thereby
indirectly acquiring the bank.

Added, Elected in Cozad
First Bank and Trust Company of
Cozad has hired David Higbea as a
vice president. He will be operating

out of the Saronville office. Mr. Hig­
bea previously served with Norwest®
Bank in Hastings as a vice president
in agricultural banking. He will be
working with development of agri­
business loans.
In addition, Dail Vetter and Craig®
Dewalt were recently elected to the
bank’s board. Mr. Vetter is a vice
president and Mr. Dewalt is a loan
officer of the bank.

Elected in Edgar
Richard Boyce, formerly with
State National Bank of Wayne, has
been elected vice president and man­
ager of Guide Rock State Bank at its ®
Edgar Branch.


new accounts and has worked at the
bank for seven years.
* * *
Dain Bosworth Incorporated has
promoted six investment officers to
vice president positions in the firm’s
Omaha branch office.
Those promoted to senior vice
president were Richard W. Kelley,
William J. Raynor and Mike Van
Horne. Robert A. Falk was ap­
pointed first vice president. Ronald
L. Hale was named vice president
and David L. Ver Velde advanced to
associate vice president.

Talk To The Municipal
Bond Professionals
Norwest Bank Nebraska has an­
nounced the promotion of four offi­
cers. They are Chris B. Alt, assis|| tant vice president at Norfolk;
Loretta Diekman, accounting sup­
port officer at Omaha; Mark Gustaf­
son, farm management officer at
Grand Island, and William L.
|| McLellan, assistant vice president/
residential real estate in Millard.





Mr. Alt joined Norwest Bank in
Norfolk as an ag banker in Febru­
ary. Prior to that he served two
years as assistant vice president/
special accounts at the Farm Credit
Services in Norfolk. He began his
banking career at the Federal Land
Bank Association of Norfolk in
Ms. Diekman joined the Omaha
bank in 1972. She has held various
Federal Reserve Bank of St. Louis

positions there, most recently ac­
counting support manager.
Mr. Gustavson was engaged in
farming until 1984, when he joined
Norwest Bank in Grand Island as a
farm manager. He is also a licensed
real estate salesman.
Mr. McLellan joined a Grand Is­
land bank in 1980 as a real estate of­
ficer, and moved to Norwest in 1983.
He was promoted from the regional
liaison for the real estate depart­
* * *

Norwest Bank Nebraska has an­
nounced the promotion of Marcy
Long to facility
manager at 96th
& L Street in
O m aha.
M s.
L ong
working at Nor­
west Bank in
1967 and has
managed the dis­
cou n t d e p a r t­
ment, was assis­
ta n t
fa c ility
manager, and has been a personal
banking officer.



Terence J. Tvrdik has been pro­
moted to vice president and cashier
of Packers Bank and Trust Co. He
previously had served as vice presi­
dent of operations. He has worked at
the bank for 17 years in various posi­
Catherine A. Welniak was pro­
moted to human resources officer.
Ms. Welniak had been supervisor of

William March

Robert E. Roh
Exec Vice President

Patrick H. Rensch
Sr. Vice President

C.W. (Chuck) Poore, Jr.
Sr. Vice President

Bill Abts, Jr.
Vice President

Micky Krupinsky

Wayne A. Rasmuss

John Trecek

For municipal bond OFFERINGS,
BIDS and APPRAISALS, call on
the professionals who specialize
in tax-free bonds.

Municipal Bond
Underwriters, Inc.
Investm ent Bankers • U nderw riters
208 South 19th Street, O m aha, Nebraska 68102
(402) 341-1144

In Nebraska Call Toll Free (800) 642-4413

Northwestern Banker, June, 1987

Richard Ramm has been ad­
vanced to executive vice president
and senior financial officer of
Pamida Inc., with responsibility for
accounting and finance, insurance,
loss prevention, auditing and all
treasury functions.
* * *

Duane W. Acklie, a director of
Packers Bank and Trust Co., has
been named to the advisory board of
Peoples Natural Gas of Council
Bluffs. Mr. Acklie, who is president
and CEO of Crete Carrier Corp. of
Lincoln, headed the group of in­
vestors who purchased controlling
interest in Packers Bank last
November. He is also principal
stockholder, chairman and president
of the Bank of Norfolk in Norfolk.
* * *
River City National Bank, located
at 5332 So. 138th St., will celebrate
its third anniversary this month by
opening an office at 8017 Blondo St.
This will be the bank’s first de­
tached facility. Robert L. Kennedy
has been appointed branch manager
and will head the staff of three full­
time and two-part time employees.
* * *
The following bankers have been
installed as officers of the Omaha/
Council Bluffs Chapter of the Bank
Administration Institute: Presi­
dent—Debbie Delgado, Norwest
Bank Nebraska; Vice President—
Myron Osborn, Springfield State
Bank; Treasurer—Keith I. Frede­
ricks, First National Bank of Belle­
vue; Secretary—Bill Gdovic, First
National Bank of Omaha; Direc­
tors—Diane Falk, Omaha Federal
Reserve Branch and Don Loehr,
Northern Bank, Omaha.

Callen and Oakeson
Join Smith Hayes
SMITH HAYES, a one-year-old,
locally-owned financial services
firm, has announced that Max Cal­
len and Doug Oakeson have joined
the firm to staff its new Hastings of­
fice. The two men were selected
because of their familiarity with
the area’s unique financial needs, as
well as their experience in the finan­
cial industry. Both were most re­
cently associated with the City Na­
tional Bank and Trust Company of
Banker, June, 1987
Federal Reserve Bank of St. Louis

Prior to joining City National,
Mr. Oakeson held various positions
within the credit administration and
mortgage loan and commercial loan
divisions of the National Bank of
Commerce, Lincoln. For the past
four years, he was president of City

Thomas G. Fulcher is president and^
CEO of Fulcher Business Forms,
Inc. Wendell Kronberg has been affi­
liated with State Farm Insurance
Companies for more than 32 years
and has an office in Bellevue. Robert^
D. Taylor is president of Taylor
Plumbing, Inc.

Added in Bellevue



Robert C. Krause has joined Firstw
United Bank of Bellevue as assis­
tant vice presi­
dent. He will be
responsible for
organizing the
bank’s credit re­
view and com­
m ercial m o rt­
d ep a rt­
m e n ts.
M r.
K ra u se
p re­
viously held the
position of se­
nior field consultant with FirsTier^
Management Consultants and as a
credit officer at American National

Mr. Callen worked for two years
at a national computer firm before
joining the National Bank of Com­
merce, where he spent 11 years in
various lending and management
capacities. Before joining SMITH
HAYES, he was the executive vice
president and senior loan officer at
City National. He has worked exten­
sively with correspondent banks
throughout Nebraska.
(Continued from page 39)


porate banking; Helen Briscoe, re­
tail banking; Kathy L. Craig, cash
The First National Bank of management services; Carl G. D e £
O’Neill has announced that Nancy Rozario, treasury; Dolores M. FacMann has been
chinello, financial and administra­
promoted to the
tive services; Sandra A. Sauer, cor­
position of in­
porate banking; Susan M. Schullystallment loan
Upsen, retail banking; Chalmers 0
o f f ic e r .
M rs.
Turner, corporate banking; Patricia
Mann has been
J. Weil, retail banking; and John F.
with the First
Wheatley, financial and administra­
National Bank
tive services.
since 1980 and
has been in ­
Named Division Head by
volved in loan
Central Bancorporation
adm in istration
Ronald D. McLellan has been
for the past several years.
named division general manager for _
Central Bancor^
poration, Inc.,
Named in Bellevue
Denver. He has
First National in Bellevue has 21 years of bank­
named Sandra K. Milroy assistant ing experience,
branch manager at the Olde Towne most recently as
Bank. Mrs. Milroy has been a mem­ regional presi­
ber of the bank’s staff since 1983. d en t fo r the
Her duties will include increased southern Minne­
operations responsibilities and sota region of
Norwest Corpo­
ration. He has
also served Norwest as senior vice
Elected in Ralston
president of the eastern banking
R alston Bank, Ralston, has group, a senior vice president and^
elected three new board members. controller.

Promoted in O’Neill

tant to Nebraska football coach Tom
Osborne, and working for Dean Wit­
ter Reynolds, Inc.
* * *
FirsTier Bank Lincoln’s applica­
tion to open a branch office 3243
South 13th Street in Lincoln has
been approved by the Office of the
Comptroller of the Currency.
* * *

John Walters and Steve Pederson
have joined the Lincoln office of
SMITH HAYES. Mr. Walters has
® worked the last 13 years at FirsTier
Bank, ten of those in the investment

National Bank of Commerce
Trust & Savings Association has an­
nounced that Dr. Vance D. Rogers,
retired president of Nebraska Wes­
department. Mr. Pederson’s experi- leyan University and most recently
ence includes being director of pub- interim president of The Lincoln
lie relations and advertising for Ak- Foundation, will join the NBC staff
Sar-Ben, serving as recruiting coor- in the areas of customer and com­
dinator and administrative assis- munity relations.

New Products and Services

Know You.” advertising theme. A
variety of ads, including both imagebuilders and promotions for ser­
vices, such as IRAs, personal loans
and home improvement loans, are
featured in each advertising kit.
By early May, half of the kits pro­
duced had already been sold by the
Sauk Centre, Minn., IB A A office
Community bankers can purchase
IB A A ’s advertising kit, in either the
cartoon or human-interest photo for­
mat, for $219.

AN K ERS can obtain current, the A B A Commission on Safety and
comprehensive information on Soundness as ways for banks to im­
^ selecting, educating, insuring and prove their management practices.
w utilizing bank directors with the The other areas covered were: opera­
help of “ Bank Director Resources, ” ting risk; risk-related capital man­
a new publication prepared by the agement; consumer disclosure; fi­
Am erican Bankers A ssocia tion nancial disclosure; outside auditors;
£ Community Bankers Council.
codes of ethics; and asset quality.
“Bank Director R esou rces" lists
As an A B A member service, com­
more than 300 publications, maga­ plimentary copies of “ Bank Director
zine articles, schools and audio cas­ Resources” are available by calling
settes of importance to bank direc- or writing to Kathleen Murphy on
£ tors. Topics range from “ What the A B A Community Bankers
Mercantile Shareholders
Makes Directors Sell’ ’ to “ The Di­ Council staff. Her telephone number
rectors’ Role in Protecting Banks is 202/663-5123. The address is Elect 3 New Directors
from Failure.”
ABA, 1120 Connecticut Ave., NW,
Shareholders of Mercantile Ban“ The A B A Commission on Safety Washington, D.C. 20036.
corporation Inc., at the recent an­
q and Soundness emphasized the ex­
nual meeting in St. Louis, elected
panded role that directors can play
OMMUNITY banks around the seven members to the board of direc­
in ensuring the excellence of man­
country are selling what they do tors and approved proposals relat­
agement practices,” stated Franklin best — personal service — through ing to indemnification of directors
H. Moore, Jr., a commission mem- the Independent Bankers Associa­ and officers and adoption of the
<11 ber and chairman of the A B A Com­ tion of America’s innovative 1987 1987 stock option plan.
munity Bankers Council. “ The key advertising kit.
Elected to the corporation’s board
is providing directors with educa­
The kit, unveiled at the recent for the first time were Dr. Marguer­
tional materials to bring them up to IB A A National Convention and Ex­ ite Ross Barnett, chancellor of the
speed and this guide will help,” said position, offers community bankers University of Missouri-St. Louis;
Mr. Moore, who is also chairman a choice of two print advertising James B. Malloy, president and
and president of Commercial and campaigns. One features human-in­ chief operating officer of Jefferson
Savings Bank, St. Clair, Mich.
terest photos to capture the spirit of Smurfit Corporation/Container Cor­
The new publication not only lists community banking, while the sec­ poration of America, and Edward E.
hundreds of articles but also ex­ ond uses cartoons and tongue-in- Whitacre Jr., vice chairman and
it plains how members can obtain com­ cheek copy to deliver a sales point chief financial officer of Southwest­
plimentary copies from the A B A with a humorous pitch.
ern Bell Corporation. Both Dr.
Library. A purchase order form for
Both types of campaigns include Barnett and Mr. Whitacre previous­
A B A publications and cassettes is 12 print ads, 12 radio commercials, ly were directors of Mercantile
counter cards, logo sheets and alter­ Bank, the corporation’s lead bank.
Effective use of directors was one nate headlines. They also continue
Dr. Barnett’s and Mr. Whitacre’s
of eight recommendations made by IB A A ’s popular “ You Know Us. We terms expire in 1990.


Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987

Bankers Trust is Iowa's
International Bank.
If you thought you had to go to Chicago or N ew
York to do your overseas banking, think again.
International services aren't foreign to Bankers
Trust. Our International Banking Division has
over two decades of experience and an exten­
sive worldwide correspondent and telecom­
munications network. So we can handle your
international banking needs from right here in
Des Moines.
Our International Banking professionals are
trained to help Iowa companies and banks do
business in global markets. Bankers Trust is your

full-service international bank. We can handle all
of your international banking needs, including
letters of credit, foreign fund transfers, collec­
tions, foreign exchange and foreign drafts.
Our telecommunications system makes Bankers
Trust the only Des Moines bank d irectly linked to
money center banks on every continent. In addi­
tion, Bankers Trust is the banking affiliate of the
Iowa Export-Import Trading Company.
Call Patricia Rourke any time for advice and
service, 245-5284. Our staff is ready to improve
your international business horizons.

International Banking Division
665 Locust •Des Moines, Iowa 50309
(515) 245-5284
Member FDIC, Federal Reserve System
Federal Reserve Bank of St. Louis



IBA executive vice president, and
William R. Bernau, superintendent
of banking and chairman and presi­
dent, Peoples Savings Bank, Crawfordsville. Additional speakers ap­
peared at each meeting.

Three IBA Groups Elect New Officers
w |U| ORE THAN 2000 bankers and
■VI spouses from around the state
met last month for the 1987 Iowa
Bankers Association Group Meet^ ings. Eight groups met throughout
w Iowa over a two week period. Bank­
ers met in Clinton, Cedar Rapids,
Ames and Des Moines the first
week. The concluding week included
q stops in Council Bluffs, Fort Dodge,
Okoboji and Clear Lake.
Each meeting included a business
session with various reports from
the IB A staff followed by a recep^ tion dinner. The IB A media presen­
tation “ Bringing a Bank to Living
History Farms,’ ’ was shown in each
city. Special entertainment followed
each meeting’s dinner.
In keeping with tradition, the
odd-numbered IB A groups elected
new officers in the odd-numbered
year. (Groups 1 and 11 met in Febru­
ary and their new officers were listed
q in the March issue.)


Associate Publisher

Group Officers Elected
Group officers elected last month
Group 3: Chairman—William G.
Herbrechtsmeyer, president, First
Security Bank & Trust Company,
Charles City. Secretary—Richard A.
Halverson, executive vice president,
Corwith State Bank, Corwith.
Group 5: Chairman—Michael Guttau, president, Treynor State Bank,
Treynor. S ecreta ry—G erald F.
Lapke, president, Shelby County
State Bank, Harlan.
Group 7: C hairm an—A rn old
Schultz, president, The Grundy Na­
tional Bank, Grundy Center. Secre­
tary—James R. Brown, executive
vice president, Hardin County Sav­
ings Bank, Eldora.
Three speakers gave reports at
each of the group meetings. Russell
Howard, president of the IB A and
chairman, Mahaska Investment
Company, Oskaloosa; Neil Milner,

President’s Report
Mr. Howard acknowledged the
outstanding job the IB A staff does
and the contributions they make to
the success of the association. Mr.
Howard told his audience “ bankers
in the state of Iowa have a unique
opportunity to bring this state
around.’’ He went on to relate his
frustration with legislative issues by
saying, “ I ’m tired of productive peo­
ple being penalized and it’s time to
stand up and cheer the achiever—
the extra effort person.’ ’
Mr. Howard voiced his feelings on
the competition between banks and
s&ls and the possible recapitaliza­
tion of the FSLIC fund and related,
“ We are not born equal—in fact very
unequal—and it’s what we do with
that situation that counts.” Mr.
Howard stressed the importance of
community involvement and the
need for Iowa banks to take the lead
in rebuilding Iowa’s economy.
Staff Reports
Mr. Milner spoke on IB A activi­
ties and the current situation at the
state and federal legislative levels.
Of primary concern is the recapitali­
zation of the FSLIC fund. Mr. Mil­
ner said this would involve an injec­
tion of $5 to $7.5 billion. “ This
creates concern in the banking in­
dustry as this won’t really bail out
the system, which is losing approxi­
mately $10 million dollars a day,”
Mr. Milner pointed out.
Other staff reports included com-

GROUP 4— Meeting in Clinton aboard the Riverboat Mississippi Belle were, from left: Secy. James A. Matthys, v.p. & cash., Buffalo Sav­
ings; Chmn. J. Robert Bunn, pres., Community St., Clarence, and IBA Pres.-Elect Clair Lensing, pres., Farmers St. Marion. RIGHT—This
most captive audience includes, from left: Lee and Russell S. Howard, pres., IBA, and chmn., Mahaska Investment Co., Oskaloosa; Kay
and William R. Bernau, Iowa supt. of bkg. and pres., Peoples Savings, Crawfordsville, and IBA Past Pres. J. Bruce Meriwether, pres., 1st

Natl., Dubuque (standing in rear).
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1987


LEFT— Pictured at the Group 4 meeting are, from left: Frank Gleeson, pres., IBIS, Inc.; Jim Bigelow, e.v.p. & cash., 1st Trust & Savings, Ox­
ford, and Gary Livesay, v.p., IBIS, Inc. Gary was also a golf prize winner, shooting a “ double-eagle” at the Clinton Golf & Country C lub!#
RIGHT—Enjoying the ride on the Mississippi River were from left: Doyle Ruble, Jr., pres., la. St. Savings, Clinton, with Wayne Bismarck,
v.p., and Joel Warland, corr. bkg. repr., LaSalle Natl., Chicago.

LEFT— Enjoying the excellent weather at Group 4 were, from left: Ben Eiiders, sr. v.p., Bankers Trust, Des Moines; Jack Rigler, pres., Cen"
tral St., Muscatine; Ollie Hansen, chmn., Liberty Trust & Savings, Durant, and Neil Milner, exec, v.p., IBA. RIGHT—Representing the Fed­
eral Reserve Bank, Des Moines office were, from left: Tom Killeen, v.p.; JoAnn Bennett, mgr., and Dick Jung, acct. exec.

GROUP 4— Participating in the business meeting in Cedar Rapids, were from left: Chmn. James P. Lage, pres., Citizens St., Postville; Silas
Keehn, pres., Federal Reserve, Chicago, and Secy. Joseph D. Daly, pres., Farley St. RIGHT—Enjoying themselves at the reception were,
from left: Larry Makoben, corr. bkg. off., Davenport B&T; Craig Ross, v.p., IAC Group, Des Moines, and Dave Howell, corr. bkg. off., Daven­

port B&T.

EFT— Representing the Citizens St., Postville were, from left: Terri Nelson; Terri Downing, asst, cash.; Marie Meyer, v.p.; Darwin Fritz, v.p.;
Icot Nelson, In. off., and Steven Werner, v.p. Joining the group, center, is Jerry Trudo, v.p. & mgr., Merchants Natl., Cedar Rapids and his
/ife Ruthie. RIGHT—Pictured at the Group 4 meeting are, from left: Bud Cross, v.p., First Natl., Chicago; Leo Kane, exec, v.p., American*
Trust & Savings, Dubuque, and Dick Muir, v.p., United Missouri, Kansas City.
Banker, June, 1987
Federal Reserve Bank of St. Louis


LEFT— Also in attendance at Group 4 were, from left: Max Roy, sr. v.p., Drovers Bank, Chicago; Jim Weiser, v.p., R.G. Dickinson, Des
Moines, and R. Milton Mennick, sr. v.p., Peoples Trust & Savings, Indianola. RIGHT—Sharing his views on banking in the midwest is
William Taylor, dir. of superv. and regulation, Federal Reserve, Washington, D.C.


GROUP 6—Taking part in the Des Moines meeting were, from left: Secy. Oliver Hagen, pres., First Int. of Iowa, Inc., Des Moines; Bill Buxton, 50 year banker & honorary chmn., Peoples Bank, Indianola, and Chmn. James Schipper, pres., American State, Osceola. RIGHT—At
the Group 7 meeting was Secy, of State Elaine Baxter and Neil Milner, exec, v.p., IBA.

e.v.p., with F&M, Winterset. Also pictured were: Jay Nichols, 2nd v.p., Norwest Bank, D.M.; James Mease, pres., F&M, Winterset, and R.W.
Messerschmidt, pres., 1st Natl., West Des Moines. RIGHT—Taking part in the Group 6 meetings were, from left: Ken Malecha, a.v.p. First Int.,
D.M.; Bob Miller, pres., Polk City, and Bill Mullins, v.p. First Int., D.M.

ments from Frank Gleeson, presi­
dent, IBIS, Inc. Mr. Gleeson encour­
aged bankers to “ give IBIS a shot;
you might be surprised.” So far,
0 IBIS is outperforming 1986, “ which
was a banner year for the company,”
he said.
Sam Callahan, president of
IBMC, related the current rise in
0 mortgage rates as bearish. He said
after a record first quarter, business
is off by some 80%. Mr. Callahan
reported that 1986 was an excep­
tional year with $25 million in loans
0 made and a net worth of $750,000
Federal Reserve Bank of St. Louis

ITS, Inc. President Dale Dooley,
who was recently named to the EFT
Hall of Fame, said, “ 1987 has all of
the signs of being a very good year.”
So far this year, there have been two
m illion tra n sa ction s reported.
“ That’s 50% of all the transactions
in Iowa,” Mr. Dooley said.
Concluding remarks were made
by Steve Stahly, president, MABSCO
Agricultural Services, Inc. (MASI).
Mr. Stahly reported that M ASI “ is
able to offer good rates on a newly
acquired block of loans through the
FmHA guarantee program.” There
are 183 members that make up

M ASI in eleven states. Iowa’s en­
rollment in the program is made up
of 44 members.
Superintendent’s Report
Mr. Bernau called the banking
outlook for the state optimistic, but
cautioned, “ Even though four banks
have been closed this year, there will
be more.” However, he did add that
he sees a stabilization among Iowa
Mr, Bernau said the legislative
climate in Iowa is becoming “ a legal
problem between borrowers and
lenders.” He went on to say, “ Bor­
rowers that need the money the
Northwestern Banker, June, 1987


most won’t get it—only those with a
golden credit rating will.” In relat­
ing some figures on Iowa banking,
Mr. Bernau noted a rise in bank
earnings and an overall improve­
ment in classified loans of Iowa
As of late April, and utilizing the
C A M E L ratings system , Mr.
Bernau said there are three 5-rated
banks; 52 4-rated; 107 3-rated; 265
2-rated, and 76 1-rated banks in the
Groups 3 and 4 invited Silas
Keehn, president, Federal Reserve
Bank, Chicago, to speak before their
meetings. Mr. Keehn told bankers
he sees a stability in Iowa banking
and a sense of fundamental turn­
around. He pointed out that “ these
are the best of times and the worst
of times, because while employment
figures are high, inflation is down
and our GNP is at record level, and
we must still deal with the federal
budget, trade problems, high con­
sumer debt and the world eco­
This year’s group meeting and en­
tertainment had something for
everyone. It all began with a riverboat ride aboard the Mississippi
Belle in Clinton. Music filled both
decks as over 400 guests enjoyed a
scenic journey down the river. Music
was the highlight at most of this
year’s meetings. Singing groups like
The Great Pretenders, The Great
Imposters, The Algona Cornbelt
Chorus and special speakers like
Chuck O ffenberger, Iowa Boy
Columnist for the Des Moines Regis­
ter, made this part of the 1987 group
meeting enjoyable for all.
Walnut Hill Bank
At each group meeting, the IBA
multimedia presentation “ Bringing
a Bank to Living History Farms,”
was shown. According to the IBA,
more than 500 coins have been sold
and over $42,000 dollars raised for
the building. IBA will continue to
work towards its goal of $80,000 by
September. During the 1987 IBA
Convention, the “ Walnut Hill
Bank” will be officially chartered.
On Sunday, September 20, 1987, all
Iowa bankers and employees will be
admitted free to Living History
Farms for this dedication service. □

Photos from the second week of group
meetings will appear in the July issue.
Banker, June, 1987
Federal Reserve Bank of St. Louis

Fed Drops Charges
Against Hawkeye
Without comment, the Federal
Reserve Board cancelled a May 4
hearing on its charges that Hawkeye
Bancorporation, Des Moines, en­
gaged in unsafe and unsound prac­
tices by allowing the subsidiary
State Bank of Allison to fail earlier
this year.
After State Bank of Allison was
closed by the Iowa superintendent
of banking because its capital was
exhausted, The Fed took action
against Hawkeye, stating it should
have put the full resources of the
holding company behind the indivi­
dual bank to shore up its capital.
Later, on April 24, and again in
speeches before banking groups,
Fed Board members reaffirmed their
thinking that bank holding com­
panies must pledge the resources of
the holding company to subsidiaries
that experience financial difficulties.
There was no explanation accom­
panying the Fed’s brief announce­
ment that its administrative hearing
for May 4 had been cancelled and no
further action is planned.
As announced in last month’s
issue, Hawkeye had just completed
a long-awaited restructuring of its
holding company debt and divesting
itself of half of its 36 banks, when
the Fed action first was announced.

DeBoom, chairman at Rockford anc^
a director at Osceola.



The other new owners of Ameri­
can State Bank are Robert G arnett^
of Des Moines, W.J. Emary, Sandra**
Kale, John Lloyd, and Paul Wieck
II, all of Osceola, and William Salsman of Lamoni. Mr. Garnett and
Mr. Emary will serve as directors^
along with Mr. Schipper and Mr.
Lewis, together with Fred Reed, Jr.
of Truro.

Pres. Change in Ft. Dodge
J.P. Mansfield has announced his
resignation as president and chief
executive officer of First Interstate
Bank of Fort Dodge. He will join
“ Hotline,” a Fort Dodge telemarket- ^
ing and publishing company, as vice
president of operations and finance.
Mr. Mansfield is succeeded by G.
Larry Owens. Mr. Owens has served
as president and CEO of the First #
Interstate Bank of Spencer since

Osceola State Bank Fails

Changes Told in Bussey

Osceola State Bank & Trust Co.
was declared insolvent on April 23
and was closed by State Superinten­
dent of Banking William R. Bernau.
The FDIC accepted a high bid pre­
mium payment of $62,558 from a
group of investors headed by James
M. Schipper, then president of
Lamoni National Bank. The newlyform ed A m erican State Bank
opened the next day with Mr. Schip­
per as president. Forest Lewis of
Des Moines will serve as senior vice
president and cashier.
Osceola State Bank had $8.3 mil­
lion deposits, with assets of $9.5 mil­
lion. The new bank has been capi­
talized at $600,000, assumed about
$6.2 million in assets, and the FDIC
injected an interest-bearing $2.5 mil­
lion note.
This was the fourth bank to fail in
Iowa this year. The last one, First
State Bank in Rockford, was owned
by the same parties as Osceola State
Bank—Donald R. Wubbena, presi­
dent of both banks, and Clarence

A t State Bank of Bussey, four of- _
ficer changes have been announced.
Former Executive Vice President
Kim N. Hansen has been elected
president. Former Vice President
Cliff Danner has been advanced t o ^
e.v.p. Elmer Bussey has beenw
elected vice president, and Dean
Benson has been elected ag repre­

Promoted in Kellogg


Rodney A. Jansen has been
named cashier and vice president of
Kellogg-Sully Bank & Trust, Kel­
logg. He succeeds James C. Ander-#
son, who is leaving the bank to
become chief executive officer of
Farmers State Bank, Dows.
Mr. Jansen joined the bank in
1981 as a loan officer, and most re- 0
cently served as assistant vice presi­
The bank has also promoted
Thomas Rude to assistant vice
president. He has been with th e #
bank since 1986 as a loan officer.



When a customer dies,
his biggest legacy shouldn't
be a loan balance.

and his family
. Including
you can prevent that
happening to your
customers. W ith IBIS creditor
protection insurance.
W e have a full line o f plans
to choose from. O ne that offers
a complete excess program,
Federal Reserve Bank of St. Louis

as well as uncomplicated
and credit life licensing schools.
coverage for the com plex agri­
Want to know more?
business world.
For complete IBIS creditor pro­
It’s also insurance that,
tection insurance details, call
like our company, is designed
1-800-532-1423 toll-free.Today.
by Iowa bankers to help Iowa
* 5?
So it comes with benefits
for you, too. Like a fully com ­
puterized claim system, sales
and product seminars plus life


Iowa Bankers
Insurance &

Northwestern Banker, June, 1987

lowing the evening banquet, given j
by time management expert Rita
Davenport of Phoenix. Her talk was
entitled “ Success Strategies.”
Wednesday morning’s general
session began with a lively presen- <
tation by Gary Maas, owner of AgriCareers in Massena, on “ Managing
Transition and Change.” Mr. Maas
spoke of “ gingerbread incentives” —
excess salary, benefits and time<
off—which have no lasting effect on
employees. He proposed the best
way to draw and retain good staff is
to promote feelings of achievement,
growth, recognition and responsibil-1
ity. “ Keep in mind,” he told the
bank women, “ you as supervisors
are role models. This is one of the
most awesome tasks you have.” Mr.
Maas himself served as a role model <
PARTICIPATING in the NABW Iowa State Conference were Sharron Marquardt, pres., Iowa
for his audience, providing himself
State Council and a.v.p., Brenton Natl., Des Moines; Susan Sodey, conference chmn. and
an example of sensitive, enthusias­
v.p., Union B&T Co., Ottumwa; Christine Newman, North Central Region natl. dir. and v.p.,
1st Wis. of Green Bay, and Penny Mcllreavy, trustee for NABW’s Foundation and affl. bk.
tic and creative management.
mktg. off., Kanawha Valley Bk., Charleston, W. Va.
Four experienced and successful
Iowa women participated in a panel(
discussion entitled “ What It Takes
to Get You Where You Want to
G o.” Professional volunteer Beverly
don’t see ourselves as such.” Ms. II- Everett of New Sharon encouraged
Associate Editor
reavy gave very practical sugges­ the women to be flexible, look fo r 1
tions for managing risk in the areas genuine opportunities, assist other
OMEN financial executives of cash transactions, incentives, women, and have a passion for what
they do. Catherine Dunn, president
from all over Iowa gathered lending and investment banking.
May 11-13 in Des Moines for the
Luncheon speaker was Christine of Clarke College in Dubuque, told
1987 National Association of Bank Neuman, vice president, First Wis­ attendees, “ You can be anything1
consin Bank of Green Bay and you want, provided you take the
Women Iowa State Conference.
With 137 attendees, it was the best N ABW National Director for the time and do the work it takes.”
attended conference to date in the North Central region. She demon­ Mary Garst, manager of the cattle
north central region.
strated through individual case his­ division of The Garst Co., Coon
Governor Terry Branstad kicked tories how N ABW is achieving its Rapids, gave the women much sage
off the gathering, telling the bankers mission statement: “ To empower advice, including to take themselves
“ Each of you are pioneers opening women in the financial services in­ more seriously and to be courage­
up leadership positions in the finan­ dustry to attain professional, per­ ous. “ If you can’t make it, fake it,”
cial industry to women.” Connie sonal and economic goals, and to she recommended. Ann Jorgenson,
Wimer, the first female president of shape the future of the financial in­ partner in Jorg-Anna Farms and
the Des Moines Chamber of Com­ dustry.” She remarked that women Timberlane Hogs, Garrison, told her
merce in its 99 year history, encour­ bankers have been sufficiently suc­ audience not to forget they are
aged the N ABW members to “ sup­ cessful at empowering themselves women, and consequently have
port each other.”
that they are now able to turn out­ much to offer. “ We bring a perspec­
Educator and psychologist Dr. ward and significantly influence the tive to business that’s different—I
Charlene Bell was very well received industry. She concluded by saying, don’t apolgize for that,” she said.
Following lunch, Robert G. Milas she motivated attendees to use “ My request is that you sell your inhumor, spontaneity and supportive­ s t i t u t i o n ’ s m a n a g e m e n t
on len, president and CEO of First In­
terstate Bank in Des Moines, spoke
N ABW .”
ness to improve the workplace.
Tuesday morning’s general ses­
Concurrent workshops featured on banking in the future. His advice
sion concluded with a presentation
“ Determining Your Risk Taking for meeting future trends was 1. Be
on the management of risk by Penny
Style,” with Penny M cllreavy; committed to a strategic plan. 2.
Mcllreavy, affiliate bank marketing
“ You Can Make A Difference,” with Develop human resources fully. 3.
officer, Kanawha Valley Bank,
IB A Executive Vice President Neil Develop an organizational culture.
Milner, and “ Issues in Bank Man­ 4. Exploit your bank’s assets. 5. A c­
Charleston, W. Va., a very active
agem ent,” with Roger Rinder- quire necessary computer support.
member of NABW. “ Risk is a new
During the closing ceremonies,
knecht, president and CEO of Union
reality, and we can learn to manage
this year’s scholarship winners were
Bank & Trust Co. in Ottumwa.
it so it doesn’t manage us.” she told
N ABW members were delighted announced. Beverly Jensen, vice
her audience. “ You and I will be­
with the excellent presentation fol­ president and cashier at First Nacome risk takers even though we

Iowa NABW Holds State Conference



Northwestern Banker, June 1987
Federal Reserve Bank of St. Louis

T7 T






First national Bank of Waverly Waverly, Iowa

4015 Alexandra Drive • Box 2097
Waterloo, Iowa 50704
Phone 319-234-6641
Federal Reserve Bank of St. Louis


tional Bank, Sioux Center, received
the Betty Steele Scholarship. Beth
Ketchem, customer service repre­
sentative at First Interstate Bank in
Urbandale, was the Helen Rhinehart
Award winner. Cindi Keithley, assis­
tant vice president at Houghton
State Bank, Red Oak, received the
Margaret I. Henry Award.

Norwest Ft. Dodge
Elects New Pres.
Wallace E. Hanson, 57, senior
vice president and cashier of Nor­
west Bank Fort Dodge, was recently
elected president and chief operat­
ing officer.
Mr. Hanson will succeed Earl J.
Underbrink, 64, who will remain as
chairman of the board and chief ex­
ecutive officer until his scheduled re­
tirement on October 1, 1987. Mr.
Underbrink has been CEO and presi­
dent of the bank since 1963.
A native of Callender, Mr. Han­
son has been employed by the bank
for 34 years. He has served as an of­
ficer in the installment, real estate,
commercial, agricultural and operat­
ing departments of the bank. He has
been secretary to the bank’s board
of directors since 1974.

Mr. Hanson is a graduate of the west Corporation, the Iowa College £
National Installment Credit School, Foundation and is a member of the
the National School of Mortgage Fi­ Iowa “ Main Street” A dvisory
nance and the Stonier Graduate Board. He has been active in the
School of Banking.
American Bankers Association, hav­
ing served as vice president for Iowa f
and member of the Government
Relations Council. Mr. Underbrink
is a former chairman of Group 2 and
member of the board of directors of
the Iowa Bankers Association.

Roger Loerch Buys
Manson State Control


Mr. Underbrink, who became
president on October 1, 1963 of the
Fort Dodge National Bank (later
named the First National in 1964 and
in 1977 purchased by Norwest Cor­
poration), has been a banker 41
years. He was senior vice president
and cashier of the Waterloo Savings
Bank before moving to Fort Dodge.
He was graduated from the State
University of Iowa (now Iowa State
University) in 1947 and joined
Waterloo Savings that year. He is a
native of Jacksonville, 111.
Mr. Underbrink currently serves
on the Advisory Councils of Nor-

Committed to
making your
bank stand
apart from the

Roger L. Loerch, 55, president of
the Manson State Bank in Manson
since 1975, has
purchased con­
trolling interest
in the bank from
Mrs. Jane Youell. She is the
widow of Gene
Youell, who died
in 1984 and was
owner of several
n o rth
Iow a
Mr. Loerch is a native of Tekamah, Nebr., where his father, Lee (
Loerch, was associated for many
years with the First National Bank,
retiring in 1976 as senior vice presi­
dent and cashier, a post he had held
for many years.
Roger Loerch began his banking
career with the First National in
Tekamah in 1954 after attending
Hastings College and then serving
three years of military duty. In 1969
he joined Otoe County National
Bank as executive vice president,
then left two years later to become
president of Mr. Youell’s State Sav­
ings Bank in Aplington. He moved
to the Manson State Bank as presi­
dent in 1975, the position he con­
tinues to hold.

Appointed in Waterloo
Waterloo Savings Bank has an­
nounced the appointment of Sandra
Tielebein to con­
sumer loan offi­
cer. Ms. Tiele­
bein previously
served as branch
m a n a g er
Thorp Credit, a
subsidiary of In­
ternational Tele­
phone and Tele­
graph , A m es.
She has a busi­
ness degree from Iowa State Univer- 0
Banker, June, 1987
Federal Reserve Bank of St. Louis


•Peoples Bank & Trust of Waterloo Builds New Office

CONSTRUCTION will begin this spring on a new facility for Peoples Bank and Trust Co. of Waterloo’s main office. The site is between
West 5th and 6th Streets on Commercial in downtown Waterloo. The extensive building and remodelling project will utilize the existing
Brice-Petrides building located at the site, which is along the Cedar River. The relocation is the result of the Iowa Department of Transpor­
tation’s purchase of the former office at 419 West Fourth Street as part of the Highway 218 relocation project. Stenson, Warm, Grimes and
0 Port Architects of Waterloo will represent the bank. Plans include a new retail banking department, an integrated drive-up facility and a
drive-up ATM Projected completion date is May 31, 1988.

Keim Financial Banks
Announce Staff Changes

Mike L. Keim, president of Keim
Financial Group, has announced the
following appointments and promo­
tions at member banks:
Ivan Husa has been named presi•dent of both the Security State
Bank in Stanton and the Union Na­
tional Bank in Massena. Mr. Husa
also serves on the board of directors
at the two banks, as well as at the
•Am erican National Bank in Bed­
Martin McCartney, president of
United National Bank of Iowa in
-Sidney, has also been named presi•dent of American National in Bed­
ford. In addition to his duties as
president and director of these
banks, Mr. McCartney also serves
^ a s a director at Security State in
•Stanton and Union National in Mas­
Steven Zamastil has been pro­
moted to president of Corn Belt
^S tate Bank in Correctionville. He
joined the bank in 1986 and pre­
viously served as executive vice
president and director.
Paul Olson has been promoted to
^executive vice president and cashier
at Security State in Stanton. He

joined the bank in 1964, and was
named to its board in 1973.
Karen Uehling, cashier of Union
National Bank, has also been named
to that position at American Na­
tional in Bedford. She has also been
named to the board of directors at
both banks.
Sara Thornton, vice president of
Keim Financial Group, has been
named to the boards of Stanton,
Correctionville and Sidney. She also
serves on the boards in Bedford and
Sharon Hunwardsen, cashier of
Corn Belt State Bank in Correction­
ville, has also been named to that
bank’s board. She joined the bank in
1976 and was named cashier in 1986.
Henry Russell, agricultural loan
officer at American National in Bed­
ford, has been named to the bank’s
board of directors. He joined Ameri­
can National in 1986.

Promoted in Cedar Falls
Midway Bank & Trust, Cedar
Falls, has announced the promotion
of Ginger Bachman and Grethe
Gauger. Ms. Bachman has been ap­
pointed to branch managing officer
of Midway’s new Depot Office, sche­
duled to open this summer. It is
located at 422 Main Street in down­

Notice: Merchants Key Chain Owners



If you or o th e r o ffic e r s or d ir e c to r s o f yo u r b a n k have
ever used a M e rc h a n ts N a tio n a l B ank o f C ed a r R apids
“ re g is te re d key c h a in ,” p le a se ta ke note. We have received 5 se ts o f keys and one p a ir o f g la s s e s in re cent
years fo r w h ic h u n fo r tu n a te ly we have never had an
o w n e r r e g is tra tio n card. If you have lo s t y o u r keys,
p lease c o n ta c t Lauri S c o tt at M e rc h a n ts N a tio n a l Bank
o f C ed a r Rapids. P hone #1-800-332-5991.
Federal Reserve Bank of St. Louis



town Cedar Falls, at the site of the
former Rock Island Railroad Depot.
Ms. Bachman has been with the
bank since 1973. Ms. Gauger, who
joined Midway in 1963, has been ap­
pointed cashier. She was previously
served as assistant cashier, person­
nel officer and customer account of­

Elected in LaPorte City
A t the LaPorte City office of
Peoples Bank and Trust Co. of
Waterloo, Den­
nis J. Eads has
been elected as­
sistant cashier
and loan officer.
Mr. Eads has
three years ex­
perience in bank­
ing, is a gradu­
ate of Coe Col­
lege, and has
completed portgraduate work in agricultural credit.

Promoted in Council Bluffs
Two have been promoted to vice
president at Council Bluffs Savings
Bank. Charles C. Moser formerly
managed the Carson branch of
CBSB and now manages the Avoca
office. Craig Lovstad has been with
the bank for 15 years, seven in the
trust department and eight in the
commercial loan department.
Northwestern Banker, June, 1987


board of directors. She is p resid en t
and owner of Riche Associates, Inc.,
a full service marketing and commu­
nications firm.
* * *
William A. Van Lent has been^
named vice president and manager
of the Norwest Investment Services,
Inc. (NISI) office in Des Moines. He
will be responsible for op era tion ^
and sales.
Mr. Van Lent joined NISI in
November, 1986 as an investment
officer. Prior to that, he was an in­
vestment and trading officer at Firs-^
Tier Bank in Lincoln and an invest­
ment executive at Paine Webber,
Inc. in Lincoln.

Changes Told in Gowrie
Hawkeye Bank & Trust of Des
Moines has announced the appoint­
ment of Gayle A.
Stowe to vice
p resid en t and
ca s h ie r .
M s.
Stowe is a CPA
and has served
since 1983 as as­
sistant vice pres­
ident and con­
troller of Hawkeye Bancorporation.
Named assistant vice presidents
were Tresa K. Gillette, Connie
Kramer, Jeffrey L. Payne, Diane K.
Plym, Mark E. Rathbun and Peggy
A. Rivers.
Ms. Gillette will also serve as ac­
counting officer. She has been with
the bank since 1973, most recently
as assistant cashier and accounting
officer. Ms. Kramer is assistant of­
fice manager at the Drake office. She
joined Hawkeye in 1982 and was
previously financial products offi­
cer. Mr. Payne, who has been with
the bank since 1985, is also commer­
cial loan officer.
Ms. Plym, who has been with the
bank since 1978, is also operations
officer. Mr. Rathbun is manager of
the Hickman office and has been
with Hawkeye since 1979. Ms.
Rivers has served the bank since
1982 and is manager of the Clive of­
Barbara J. Perry has been named
assistant office manager at the
Drake office, in marketing and stu­
dent loans. She has been with Hawkeye since 1981, most recently as stu­
dent loan officer.
Banker, June, 1987
Federal Reserve Bank of St. Louis

Appointed trust officers were
Wayne VanHeuvelen and Lianne
Wright. Both joined the bank in
1986 and previously served as assis­
tant trust officers.
* * *
Brad M. Knepper has been elected
to the staff of Brenton National
Bank o f Des
Moines. He has
been named re­
tail sales officer/
office manager
at the SW 9th
and M cK inley
office. Mr. Knep­
per was formerly
assistant office
manager of the
downtown office
of Norwest Financial.
* * *
A t First Interstate Bank of Des
Moines, Michael Lang has been ap­
pointed to loan
officer in the re­
tail lending divi­
sion. His respon­
sibilities will in­
clude initiating
and evaluating
consumer, small
bu sin ess, and
SBA loans, as
well as loan com­
p lia n c e .
M r.
Lang joined First Interstate of
Iowa, Inc. as a loan compliance ad­
ministrator in 1986 and became loan
compliance officer in February.
First Interstate also announced
the election of Mary M. Riche to the


Nels A. Lindquist has been named
president of The First State Bank of
Gowrie, to succeed his father, Mau­
rice W. Lindquist, who died recent­
ly. Nels Lindquist previously servec#
as executive vice president and has
been with the bank for 10 years.
Martin L. Jacobs has joined the
Gowrie bank as vice president. He
was previously associated with Earl#
ham Savings Bank of Earlham.

Waterloo Office to Close
Peoples Bank and Trust Co. o f^
Waterloo has announced that bank­
ing services at the Crossroads office
will be consolidated with Peoples
Bank’s office locations at Kimball &
Ridgeway Avenue in Waterloo and^
in La Porte City. The action of clos­
ing the bank’s Crossroads Office
took effect at the close of business
on May 30.

June, 1987
A m erican Express Travelers Checks ................................. 8- 9#
Bankers T rust Co., Des M oines ..............................................48
B rock R e p o rt................................................................................. 19
C arpenters Pension Fund o f Illin o is .....................................24
First B ankers S e c u ritie s Corp., M ason C ity
FirsTier Banks O m a h a /L in c o ln ....................
First N a tional Bank, O m a h a ...........................

.. . 3

Gross, Kirk Co., W a t e r lo o ...............................
IAC G roup, Kansas C ity ....................................
Iowa Bankers Insurance & Services, In c .. .
Insured C redit Services, Inc., C h ic a g o .........
LaSalle N a tio n a l Bank, C h icago ..........................................


M erchants N a tio n a l Bank, Cedar R a p id s ........................... 2
M un ic ip a l Bond U n derw riters, In c......................................... 4 5 #
North C e ntral Life Co., St. P a u l................................................ 15
N orw est C o rpo ratio n, M in n e a p o lis .......................................60
O ffic e C oncepts, Ltd., W a te rlo o ..............................................56
Plus System , Inc., D e n v e r ........................................................ 7
Record Data, In c ..........................................................................


S e curity P a cific F in a n c ia l S y s te m s ..................................... 1 0 ^
Sw ords A s s o c ia te s , Inc., Kansas C i t y .................................. 20

because it's the extra profit your bank earns by
providing your customers IAC credit protection.
Remember too that these fee-based risk man­
agement services also protect your bank's assets.
Think about it: You offer your customers the
valuable service of financial security while
enjoying asset protection and adding to your
bank's profit base.
What's more, our National Training Department
w ill schedule a series of in-bank seminars to
help the people in your loan department
become confident and comfortable in their
role of Financial Advisers to your customers.
Also keep in mind that IAC offers you a full line
of bank-designed products that range from
Credit Life and Collateral Protection to Deferred
Compensation programs for bank executives.
What it all adds up to is that you have a lot to
gain from IAC—including fee income that you
could almost consider "free" income. Give us a
call for the facts.
A Full Service Company for The Full Service Bank

Individual Assurance Com pany
1600 Oak St. • Kansas City, MO 64108
Phone toll free in Missouri (800) 892-5890,
other states (800) 821-5434.
Federal Reserve Bank of St. Louis

We KnowTheWay
To Lands O f Opportunity
In today’s economic climate, you have
to search for opportunities around every
bend. A nd now more than ever, it takes
a strong financial leader to help make sure
the best ones don’t get away
At Norwest Banks, w e understand the
needs and opportunities facing bankers
today After all, w e ’v e operated banks of our
own in more than 100 different markets
over the last 50 years. A nd when you com e
to us for correspondent banking, w e make
that experience work for you.
We can provide the specialized services
you need in your marketplace— no matter
how large or how small it may be. And
whether that means ATM access, credit
cards, investment alternatives, or traditional
correspondent bank services, w e ’ll work
with you to get the job done.
Talk to us today about our full line of
services. W hen it comes to correspondent
banking, w e know the way. !

We Know The Way. We Are Norwest.
Members FDIC
Federal Reserve Bank of St. Louis