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JUNE 1987 Caution Flags Hoisted on Home Equity Lending • How to Cut 7 Years from a 30-Year Mortgage • Directors Compensation — Dr. Douglas V. Austin https://fraser.stlouisfed.org 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 Eastern Merchants National Bank |owa C ed a r R a p id s, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis is i WE PUT YOU INTO THE FULL-SERVICE INVESTMENT BROKERAGE BUSINESS... PROFITABLY. First Bankers Securities C O R P O R A T IO N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 200 Brick & Tile Building • Mason City, Iowa 50401 Toll Free - (800) 952-7899 • In Iowa - (800) 325-3030 4 On the Cover NORXJJWESTERN 4 5 « wk w JUNE 1987 • 94th year • No. 1485 MEMBER OF AUDIT BUREAU OF CIRCULATIONS MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES FEA TU R ES 11 Directors compensation Dr. Douglas Austin continues his series 12 Caution flags hoisted on home equity lending ABA and CBA voice concerns 14 How to cut 7 years from a 30-year mortgage! Bi-weekly payments save homeowners money 16 How to appraise the appraisers Robert Wissler advises real estate lenders 18 MGIC 15 PLUS saves one-third on mortgage insurance New plan offers lower premiums STATE CONVENTIONS 27 29 34 Wisconsin Program South Dakota Report North Dakota Program 36 MontanaProgram 37 WyomingProgram 41 Nebraska Report DEPARTM ENTS 23 23 25 25 39 Illinois Chicago Minnesota Twin Cities Colorado 45 47 49 58 58 Omaha Lincoln Iowa Des Moines Index of Advertisers NORTHWESTERN BANKER 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 https://fraser.stlouisfed.org 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 tions. 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- S H APPY BIRTH D AY. . . (Turn to page 6, please) * The team to trust for all your . title and appraisal needs. 5 Proudly serving the real estate * lending industry nationwide... • m 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 6 Candidates for ABA Offices Are Announced Unbeatable Support. 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 investigating. 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 ABN O LASALLE” Your Correspondent Banking Bridge ©1986 LaSalle National Bank Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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 T.P. RIDEOUT • 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. H APPY BIRTH D AY. . . • (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 1944. 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 peace. 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 friend! £ —The Editor Visa USA makes the Plus System decision 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. 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' ^ 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. w— të^ ù A OJjUA&. . •. ¿/Wo*/ zi ^ Ben Poidomani, Bayport, NY. https://fraser.stlouisfed.org 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 Il I 1 M M ■ « ..... 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! It 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 ?.r i s e but AMERICAN EXPRESS TRAVELERS CHECKS. Your 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<° * ' t Susan K. McCown, Baton Rouge, LA. «ÜH IS P■ |: 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. Travelers Cheques They're what your customers want.sm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WILL YOUR SOFTWARE COMPANY BE AROUND . W HEN YOU NEED IT? SECURITY PACIFIC WILL BE. 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 demonstration. Security Pacific Financial Systems https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Division of Security Pacific Information Systems, Inc. 11 Directors Compensation: . . . bribery for Management Consulting 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 0 • ® ® m * 0 0 # By DR. DOUGLAS V. AUSTIN President and CEO Douglas Austin & Associates, Inc. Toledo, Ohio and Professor 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- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis attendance and participation 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 ings. 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 DIRECTORS COMPENSATION. . . (Turn to page 19, please) Northwestern Banker, June, 1987 12 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 around. “ 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.” O 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 Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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 cluded. 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 time. 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 posed. 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.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Cap on the annual variable rate of interest, if ap plicable. • Minimum balance and minimum draw require ments. • 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 mortgage. 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 HOME EQUITY CAUTION FLAGS. . . (Turn to page 17, please) Northwestern Banker, June, 1987 14 How to cut 7 years from a • 30 -y r. mortgage! # By BEN HALLER, JR. Publisher 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 I Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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 HOW TO CUT. . . (Turn to page 18, please) # # • • • ® ^ 9 ^ 15 NO MATTER HOW YOU 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 NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 64139, ST. PAUL, MN 55164 In Minnesota call 800-792-1030. All other states 800-328-9117. Protection all ways https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 16 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 personnel. 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 ers. • 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 A Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A N o r th w e ste r n B a n k e r interview with ROBERT L WISSLER, SREA, MAI 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 £ £ 0 • • 0 # 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 ethics. 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 HOME EQUITY CAUTION FLAGS. . . (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). https://fraser.stlouisfed.org 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: O 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 ments. • 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 MGIC 15 PLUS 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 H 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 ample: Five-Year Equity Build Up $75,000 loan at 10% interest 15-year loan 30-year loan $14,012 $2,569 Interest savings on 15-year vs 30-year loan = $91,873. “ 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 lion. □ 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 https://fraser.stlouisfed.org 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 $75,882.75. 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 $151,768.15. 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. □ 19 ^ DIRECTORS COMPENSATION. . . (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 blindfolded. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 20 United Missouri Reorganization REORGAN IZATION of execu 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, A D.F. PAGE L.E. RUSSELL 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. SWORDS ASSOCIATES. INC. PROFESSIONAL BANKING CONSULTANTS 4900 Oak, Suite 301 Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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 company. 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 years. 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 SHULL 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 area. 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 1984. 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 1982. Sean M. Doherty to bond invest ment officer, with responsibility for portfolio sales and service for corres- 21 AIB Has “ Blueprint for the Future JJ pondent banks in Oklahoma and Kansas. 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 National Conference, “ Blueprint for morrow. to trust officer, and Karen K. Crowl Jon M. Christoffersen, president, the Future,” reflects the need for to assistant trust officer. Rainier National Bank, Seattle, AIB and bankers to train and 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 of 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 markets. 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 D.W. FOX 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. Barrow. 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 ing. have looked to Insured Credit Other top level promotions in Services for default insurance cluded: 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 group. 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| — rece|>e with responsibility for all Northern Trust subsidiaries and affiliates in your copy today! Florida, Arizona and suburban Chi cago. INSUR ED CREDIT Mark Stevens, former president SE R V IC E S of Northern Trust Bank of Florida, INC.Sarasota, to president of the Miami Bank. 307 N. Michigan Ave., Chicago, IL 60601 • 312/621-9400 Arthur M. Wood, Jr., to president of the Sarasota bank. T Have you ever wondered why some secured loans are worthless? https://fraser.stlouisfed.org 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 L. MILLER vice president and an ag loan officer. Prior to joining ABA , she was also chairman of the Iowa Bankers Association’s agriculture commit tee. 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 versity. 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 Magazine. 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 https://fraser.stlouisfed.org 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. T 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, Mo. 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 ate. 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 Bank. 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. 23 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 K. DOUGLASS 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 r't|^ west, Ms. Lima was a s s i s t a n t ^ * rt vice president H K ' * JB ter manager for AmeriFirst Fed- H P * JR: 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 https://fraser.stlouisfed.org 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 R.L. VUCICH L.W. ZYDOWSKY K.S. DUBINSKI P. MALFITANO 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 ment. 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 partment. 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 western B anker . Northwestern Banker, June, 1987 24 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 Johnson. 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 https://fraser.stlouisfed.org 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. M. MENGARELLI R.A. PATT 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 P.A. TERPINAS 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 and B'F' BARA regulatory reporting for Northlake Bank. 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/ 232-7166. 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 mercial real estate and in R. MAHONEY 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 Financial. Park National Bank, St. Louis Park, has announced that Debra Hibbard has joined the staff as assistant 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 Twin American National Bank of St. Paul has announced several staff changes. 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. https://fraser.stlouisfed.org 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 polis. 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 26 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 resources. 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. * * * ,9 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 cers. * * * 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 G.A. MAGNUSON M.R. FOGELBERG 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 M erchants—St. analysis. 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 J.A. WITTEK 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 trader. * * * 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 neapolis. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis # • q • # % • 27 ROWLAND J. MC CLELLAN RICHARD P. KLUG THOMAS SCHIEFELBEIN President Pres.-Elect 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. A JESS S. LEVIN BRYAN K. KOONTZ Treasurer Exec. Director M. OLSON R. BLIEBERG □ You Will See Them at the Wisconsin Convention 4) • £ 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. Chicago Continental Bank: Robert E. Pietrzyk, vice president. LaSalle National Bank: Peter M cG u ire, R o b ert H ildeb ra n d, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wayne Bismark, Del Rogers, vice presidents. 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. Milwaukee First Wisconsin National Bank: Roberto J. Vinent, vice president; Richard Schmitz, vice president; Robert Grant, assistant vice presi dent. 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 agers. Northwestern Banker, June, 1987 28 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 By ROBERT CRONIN 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 institutions.” Special interest topics were cov ered at each location and included remarks by Walter Fiorentini, senior F 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 https://fraser.stlouisfed.org 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 licenses. ^ 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. £ f £ # 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. 9 ^ ^ q 29 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 ton. 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 By ROBERT CRONIN Associate Publisher O ^ ^ • 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 month.” 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 bank. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 30 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 instruments. Our professionally-trained team has the experi ence and knowledge to assist you in developing a Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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. • # 31 that w orks Lincoln—(Left to Right) Marlene Wagner, Vance Mehrens, Jay Callahan Here to serve you well. Omaha Lincoln 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 32 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 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.” ® ^ w ^ 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 lowed. During the afternoon, separate men’s and women’s golf tourna- https://fraser.stlouisfed.org 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. CHICAGO NEWS. . . (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 of 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 C-M- L0NG 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 A. RIVERO ly she was a per sonal banking officer for Communi ty Bank of Edgewater. Northwestern Banker, June, 1987 34 1987 Annual North Dakota Bankers Association Convention June 15-16 International Inn, Minot HARVEY HUBER JOHN PIERSON President Pres.-Elect 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 15-16. 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 Argue. 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: T D. BARNARD Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. VINING North Dakota’s Bankers: Sharing the Work, Sharing the Pride Monday June 15 A.M. 9:00 10:00 P.M. 12:00 1:00 6:00 7:00 Ladies’ golf tournament. Men’s golf tournament. £ Registration opens. Exhibits open. President’s reception. £ Dinner, banker awards, entertainment by Dakota Dixies. Tuesday, June 16 A.M. 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. T. RIDEOUT 35 P.M. 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, Time. 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. T Minneapolis/St. Paul American National Bank: John P. Seidel, James A. Russell, Craig Mueller. 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 ficer. 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 cashier. 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 ration for cash in the amount of ap % Dawson Hail Insurance, Fargo: proximately $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. tive. 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 Grand Forks has announced the ap are anticipated. ager. 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 in • nounced new management teams p r e s id e n t First American Bank & Trust, and organizations for its banks in charge of com Minot, as loan review and credit mercial lending. 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 ment. 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 J. PIERSON T.R. STOCKERT 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. https://fraser.stlouisfed.org 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 A.M. 8:00 Registration opens. P.M. 12:00 Exhibits open; Executive Committee meeting. 2:00 M BA and M B A Services Board of Directors meeting. 4:00 Senior Bank Management Committee meeting; BankPac Trustee meeting. Thursday, June 25 A.M. 8:00 Registration opens. P.M. 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. W.E. SCHREIBER JAMES BENNETT President Vice Pres. M Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Friday, June 26 A.M. 7:30 Light breakfast. 25 Year Club no-host breakfast. Presiding— Gene Coombs. Speaker—Louis Stur, “ A History of Sun Val ley.” 8:30 Business session—Jim Bennett, new M BA pres. “ 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. P.M. 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 Nine. 12:30 Convention ends. □ MONTANA NEWS. . . (Turn to page 38, please) 9 £ % # # 37 _ 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 P.M. 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 A.M. 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., FDIC. 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, ABA. P.M. 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 A.M. 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. P.M. 6:30- “ Bottom of the Ninth” —closing refreshments. “ITS A WHOLE NEW BALL GAME!” 79th Annual Wyoming Bankers Annual Convention June 14-16 Jackson Lake Lodge, Moran # 8:00 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis c.c. HOPE □ Northwestern Banker, June, 1987 38 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; ter.” 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 of $ 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.” M ONTANA NEWS. . . (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 23-26. T 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 presidents. 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 tive. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T 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, Mont. B anclnsure, Oklahoma City, Okla. 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 changes. 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 representative. 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- ^ consin. 39 United Banks Announces Staff Changes ® • ® _ ® ^ ^ ^ q q • • United Banks of Colorado, Inc. has announced numerous staff changes. 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 poration. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Leeper spent the last seven years as president of IntraWest Bank of Greeley. 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 Trust. 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 of IntraWest Bank of Boulder, has COLORADO NEWS. . . joined Colorado (Turn to page 46, please) National Bankshares as senior vice president, Convention Update M. WILEY 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 Collins. 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 Kiowa. 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 40 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 Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 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 ill By BEN HALLER, JR. Publisher ® ® ^ ® ^ ^ 0 0 0 ||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 York. 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 staff. 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, Omaha. https://fraser.stlouisfed.org 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., Omaha. 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 42 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 D 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. Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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. q 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 notification.” “ 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 visibility.” 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 deavor. 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 Department.” ^ 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 43 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. 0 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 44 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 NBA. 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 States. 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. □ Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis App Filed for Minatare Acquisition 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. 45 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. C.B. ALT M.GUSTAVSON L. DIEKMAN W.L. McLELLAN 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 1981. Ms. Diekman joined the Omaha bank in 1972. She has held various https://fraser.stlouisfed.org 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 ment. * * * 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 began working at Nor west Bank in 1967 and has managed the dis cou n t d e p a r t ment, was assis M. LONG 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 tions. Catherine A. Welniak was pro moted to human resources officer. Ms. Welniak had been supervisor of William March President 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 Representative Wayne A. Rasmuss Secretary-Treasurer John Trecek Counsel 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 46 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 Hastings. Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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 National. 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 M. CALLEN D. OAKESON 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 gage 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 Bank. 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 COLORADO NEWS. . . 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 N. MANN 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 supervision. Norwest Corpo ration. He has ^ D- McLELLAN 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 47 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 (1-800-IBA-SAUK). 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 attached. 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. B C https://fraser.stlouisfed.org 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. BankersTrust International Banking Division 665 Locust •Des Moines, Iowa 50309 (515) 245-5284 Member FDIC, Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 9 49 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 By BEN HALLER, JR. Publisher 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.) and ROBERT CRONIN Associate Publisher Group Officers Elected Group officers elected last month were: 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). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, June, 1987 50 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. Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 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 achieved. https://fraser.stlouisfed.org 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 banks. 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 52 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 banks. 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 state. 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 nomy.” Entertainment 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. Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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. J. SCHIPPER F. LEWIS 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 1983. 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 sentative. 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 dent. The bank has also promoted Thomas Rude to assistant vice president. He has been with th e # bank since 1986 as a loan officer. 53 . When a customer dies, his biggest legacy shouldn't be a loan balance. time, 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, https://fraser.stlouisfed.org 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? bankers. So it comes with benefits for you, too. Like a fully com puterized claim system, sales and product seminars plus life m Iowa Bankers Insurance & Services,Inc. Northwestern Banker, June, 1987 54 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 By DIAN E NELSON 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 W , Northwestern Banker, June 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T7 T p 1 WAV WEPUT IT ~ T O E N R 15 WHAT 5ET5 U5 APAR First national Bank of Waverly Waverly, Iowa 4015 Alexandra Drive • Box 2097 Waterloo, Iowa 50704 Phone 319-234-6641 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56 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. 0 Roger Loerch Buys Manson State Control W.E. HANSON E. UNDERBRINK 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 R.L. LOERCH banks. 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 of Thorp Credit, a subsidiary of In ternational Tele phone and Tele graph , A m es. S. TIELEBEIN She has a busi ness degree from Iowa State Univer- 0 sity. Northwestern Banker, June, 1987 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 •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 ford. 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 sena. 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 Massena. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G. BACHMAN G. GAUGER 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 ficer. 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 D. EADS 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 58 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 fice. 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. Northwestern Banker, June, 1987 https://fraser.stlouisfed.org 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 B. KNEPPER 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 M. LANG 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. INDEX OF ADVERTISERS 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 30-31 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 .......................................... 59 53 21 6 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 .......................................................................... 5 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. https://fraser.stlouisfed.org 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. 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