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r* h r DIr 3

Federal Reserve Bank of St. Louis

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

Member F.D.I.C.


T his bank cut processing costs 30%
w ith aT I computer system.
When J. Sid Dinsdale decided that there
had to be a way his bank could operate
more effectively, he did the smart thing.
He turned to a TI computer Value-Added
Reseller (VAR) that specializes in bank­
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and software.
“When we committed to computeriz­
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ing our processing in-house. We figured
the payback would take 30 months, but
with our TI system, we’re already well
ahead of schedule.”
Investment protection you can take to
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Protecting the bank’s computer invest­
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Federal Reserve Bank of St. Louis

Now, all they have to do is upgrade
their software and add processing power
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An easy transition.

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Te x a s
In s t r u m e n t s


Memo to Readers...


JUNE 1988


95th year


No. 1497


Admiring the main reception area in the new headquarters for Minnesota Bankers
Association in the new Peavey Building in downtown Minneapolis are these MBA
officials, from left to right: Gerald M. Kanne, District 5 board member and chief
admin, officer/commercial banking for Norwest Bank Minnesota, N.A., Min­
neapolis; Truman L. Jeffers, exec. v.p. MBA; Michael L. Lillehaugen, District 7
board member and pres, of Community State Bank, Alexandria; (in foreground) A.
William Sands, first v.p. MBA and chmn. of Western Bank, St. Paul, and James R.
Jorstad, pres. MBA and pres, of Minnesota Bank, N.A., Caledonia. Story is on
page 6 .



Handling minority stockholders

Dr. Austin describes how to clean up your bank/holding company


Voice for community bankers

An exclusive survey with ABA Community Bankers Advisory Board

25 South Dakota Convention Report and Pictures
30 Wisconsin Convention Program
32 North Dakota Convention Program
36 Wyoming Convention Program
38 Montana Convention Program
41 Nebraska Convention Report and Pictures
51 Iowa Group Meeting Report and Pictures

20 Illinois
21 Minnesota
22 Twin Cities
33 Colorado
66 Des Moines
68 Index of Advertisers
1535 Linden Street, Suite 201, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1497 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-1
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Two m ilitary veterans organ­
izations have asked for our as­
s is ta n c e in lo c a tin g fo rm e r
m em bers of th e ir u n its from
World War II. Information con­
cerning both appears below. If
other readers are seeking, or
wish to transm it, inform ation
concerning o th er u n its from
WWII, the Korean or Vietnam
wars (we call them all wars!)
please contact us and we will do
our best to find space for brief
— Ben Haller, Jr., Publisher
376th H eavy Bom bardm ent
A h is to ry of th is h ig h ly decorated unit, the first Ameri­
can Air Corps planes to bomb
Europe, is being w ritten by Jim
W alker, 1025 N. 73rd Place,
Scottsdale, Ariz. 85257 (602/9456207). A reunion of the 376th has
been scheduled for Colorado
Springs in June. If you were a
member of the 376th in Africa or
Italy, please contact Mr. Walker or
Ben Haller, Jr., Publisher N orth­
western Banker, 1535 Linden St.
#201, Des Moines, la. 50309
(5 15/244-8163). Mr. W alker
would like to include the names
of all personnel who served with
the 376th, and receive as many
anecdotes, copies of d iaries,
photos, etc., as former unit mem­
bers can furnish.
17th Airborne
The 17th Airborne Division
A sso c ia tio n , (T h u n d e r from
Heaven), composed of men who
se rv e d as p a ra tro o p e rs and
glidermen in the Division during
World War II, is conducting a
membership drive to locate all
former members, including Gold
Star mothers and family mem­
bers of those who were killed in
action. If you served with this
Division, please contact Edward
J. Siergiej, Secretary-Treasurer,
62 Forty Acre M ountain Road,
Danbury, Connecticut 06811, for
details of the Division Associa­
tion, as well as in form ation
about the 35th Annual Reunion
which will be held this year at
the Radisson Hotel, St. Paul,
Minnesota on August 3-7,1988.



Chances are, your bank has
been exposed more than once to
“bond service.”
It’s transaction-oriented
service from people who know
bonds, not banks. So the advice
you get too often goes no fur­
ther than offerings and occa­
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Bond service is not what
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Our specialty is BANK
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your portfolio in the same light
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That’s why before we make
a recommendation we conduct a
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committee meets to discuss the
Bank Report we’ve prepared
specifically for you.
The recommendations
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to your bank’s present position
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Our PMS system can help
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your area.
All these services are de­
signed for one goal: To help you
achieve your bank’s overall
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service can.
So, while you may be get­
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really need is BANK SERVICE.
Call Mark Rosen, Principal, at
(212) 238-2600.


Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


Farmer Mac Interim Board Appointed
A M ES of the persons who will
serve on the interim board of
directors of the Federal A gricultural
M ortgage C orporation were an ­
nounced by President Reagan last
m onth. The new o rg an iz atio n ,
popularly known as “ Farm er M ac,”
was authorized in December, 1987
by Congress as p a rt of the Farm
Credit System rescue bill. I t was
signed into law Ja n u ary 6, 1988 by
the President. The purpose of the
new corporation is to provide a
secondary m arket for agricultural
real e state and rural housing loans.
The interim b oard’s duties are
two-fold. The first is to oversee the
sale of $20 million in stock in two
classes to fund the secondary m ar­
ket. Class A stock will be purchased
by private sector financial in stitu ­
tions such as banks and life in­
surance companies. Class B stock
will be held solely by Farm Credit
System institutions. The second du­
ty of the interim board will be to a r­
ran g e for th e se le c tio n of a
15-member perm anent board which
will oversee the actual s ta rtu p and
continued operation of the new ag
secondary m arket.
The law requires the President to
select three interim board m em bers
from am ong FCS institutions, three
from private sector financial in­
s titu tio n s and th ree from the
general public. The perm an en t
15-person board will be selected in
the same ra tio -fiv e , five and five.
The chairm en of the interim board
and the perm anent board are to be
nam ed from am ong the general pub­
lic selections m ade by the President.
The three financial in stitu tio n ap­
pointees to the interim board by
President R eagan are:
• Randall A. Killebrew, president
since 1974 of the F irst N ational
B ank of P etersburg, 111. Mr. Kille­
brew was chairm an of the ABA and
IBA A Special Task Force for A gri­
cultural Credit which focused on the
Farm er Mac concept as a top ABA
priority two years ago. He is also a
nominee to serve on the ABA board
of directors for a three-year term
beginning in October, 1988. Mr. Kil­
lebrew was vice chairm an of the
ABA G overnm ent Relations Coun­
cil and is a p a st chairm an of the
ABA Com m unity B ankers Council.
• Thom as H. Olson, president
since 1973 of the Lisco S tate B ank

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

in Lisco, Neb. Mr. Olson is the im­
m ediate p a st president of the In ­
dependent B ankers A ssociation and
now chairm an of its board of direc­
tors. Mr. Olson also served a key
role on the ABA and IB A A Task
Force for A gricultural Credit and,
like Mr. Killebrew, has testified on
th a t subject and a num ber of others
before Congressional com m ittees in
recent years. He also is currently
chairm an of IB A A ’s Federal Legis­
lative Com m ittee and is a p a st chair­
m an of its A gricultural Rural Com­
m ittee.
• Leslie G. H orsager, vice presi­
dent since 1985 of P rudential In ­
vestm ent Corporation and head of

H E M innesota Bankers Assoc­
iation moved its offices on April
22 to 700 Peavey Building in down­
town M inneapolis (55402). M BA E x ­
ecutive Vice President Trum an L.
Jeffers said the new q uarters will
provide additional space to accom­
m odate su bstantial grow th in mem ­
ber services for M innesota banks.
Changes in recent years include
the incorporation of the M BA In ­
surance Agency, which provides
B anclnsure and other property and
casualty insurance products, and
the M BA E n te rp rise N etw ork,
which provides resources to bankers
in the area of economic develop­
m ent. M B A ’s educational program s
also have increased dram atically,
which required additional staff, Mr.
Jeffers noted.
The A ssociation office needs were
studied by a special task force, and
the move was approved in late 1987
by the M BA board of directors.
The new office space is approxi­
m ately 40% larger th an the old of­
fice a t 332 Baker Building. Because
of increased dem and for m aterials
and inform ation, production facili­
ties in the new office are larger than
before. A large m eeting room for
com m ittees and a banking library
also are available to m em ber banks.
According to M BA Vice Presi­
dent-A dm inistration W ayne Berthiaum e, who headed the m oving
team , “ the move was accomplished
with no interruption in program s,
and the staff now can provide an
even higher level of quality service
to M BA mem ber ban k s.”


the P rudential A gricultural In v e s t-^
m ents Group in Sea B right, N .J.
The other six appointees are:
• John R. Dahl, a rancher w ith
the Dahl Land & C attle Company in
Gackle, N.D. The President a p ^
pointed Mr. Dahl as chairperson of
the interim board.
• E dw ard Charles Williamson,
Jr., since 1978 m anager, director
and vice president of J.L. A d am s#
Farm s in Camilla, Ga.
• B. Dale H arrison, chairm an
since January, 1988, of the F ourth
Farm Credit D istrict Board in E a s­
ton, Oh. He is also a farmer.
• Jam es A. Pierson, president
and CEO since 1987 of Farm Credit
Banks of Springfield in Agawam,
M ass.
• Donald R. Rogge, p resid en t#
since 1986 of Federal Land B ank of
Texas in A ustin, Tex.
• George Benston, professor of
finance, Em ory U niversity, A tlanta,

FDIC Proposes Joint
Exams with State Visits


Federal D eposit Insurance Cor­
poration Chairm an L. W illiam Seidman told the Conference of S tate
B ank Supervisors recently th a t
broader acceptance and use of s t a t ^
bank exam inations would build
upon existing cooperative program s
while helping the FD IC achieve its
goal of more frequent on-site ex­
am inations of in stitu tio n s demon-®
stra tin g deteriorating trends.
“ Our goal is to conduct on-site ex­
am inations of all sta te nonm em ber
banks rated 3, 4 and 5 a t le a st^
annually, and 1 and 2 rated banks a t*
least every two years. As it relates
to 1, 2 and 3 rated banks, our pro­
posal would envision tre a tin g m any
exam inations conducted by sta te ex-^
am iners as our own,“ Mr. Seidm an*
said. “ W here sta te exam inations are
accepted as our own, FD IC presence
in these banks for full-scope exam i­
nations would be delayed.”
Mr. Seidman estim ated th a t re­
liance on sta te exam inations could
extend the period betw een full scope
FD IC exam inations up to two years
for 1 and 2 rated banks, and an addi-^
tional one year for 3 rated in stitu ­
tions. The specific arrangem ents
would depend upon exam ination
schedules developed jointly by each
sta te and the appropriate FD IC e x ^
am ination personnel.

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United States, can do as much to
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and problem free
than North Central Life.
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All other states 800-328-9117.
Protection all ways
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


BMA Elects Officers
The Bank M arketing Association
announced last month the selection of
its 1988-89 leadership team, including
the election of five new directors who
will assume office on July 1.

executive vice president, Third N a­
tional Bank, N ashville, Tenn. Mr.
Thibodeau has been the Association’s
second vice president.
The new second vice president will
be Joyce A. Healy, senior vice presi­
dent, M anufacturers Hanover Trust
Co., New York. Since last December,
she has been on special assignm ent at
the New York bank in charge of devel­
oping and executing a corporate stra t­
egy for increased securities activities.
In addition, BMA’s executive com­
m ittee includes the treasurer of the
American Bankers Association, L.W.
Stolzer, chairm an of the Union N a­
tional Bank and Trust Co., M anhat­
tan, Kan. and J. Douglas Adamson,
BMA’s executive vice president and its
chief staff officer.

FDIC Wants Independent
Outside Audits of Banks



Serving as the Association’s 1988-89
president will be Gerald E. Warren,
senior vice president and head of pub­
lic affairs at the National Bank of
Detroit. He moves up from first vice
president, succeeding John A. Russell,
vice president and director of m arket­
ing, Banc One Corp., Columbus, Ohio.
Named as first vice president for the
ensuing year is David M. Thibodeau,

The Board of D irectors of the
Federal D eposit Insurance Corpora­
tion has proposed a new policy en­
couraging sta te nonm em ber banks
to o b tain in d ep en d en t ex tern al
“ The FD IC believes a strong in­
ternal auditing program combined
with an annual external audit will
substantially lessen the risk th a t a
bank will not detect potentially
serious internal problem s in its con­
trol system s or operations,’’ FD IC
Chairm an L. W illiam Seidm an said.
“The large num ber of unaudited
banks experiencing financial diffi­

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Consumer Compliance
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M anagem ent Policies and Procedures
O ther C onsulting Services
—Ronald L. George, President

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9140 W est D odge Road, Suite 270

Banker, June, 1988
Federal Reserve Bank of St. Louis

Om aha, N ebrask a 68114 (402) 391-1344

culties because of fraud, in sid e r^
abuse and m ism anagem ent in d icates^
an independent external audit could
benefit a sizable num ber of in stitu ­
tio n s.”
The proposed policy s ta te m e n t^
• A b an k ’s board of directors
should consider an annual external
audit by a certified public accoun­
ting firm as p a rt of the cost o f ^
operating the in stitu tio n in a safe
and sound manner;
• B anks should engage an inde­
pendent CPA firm to conduct an
audit of their financial s ta te m e n ts ^
annually regardless of the natu re of
their internal auditing procedures;
• A copy of external audit re­
p o rts prepared for banks should be
sent by the banks to a p p ro p ria te ^
FD IC regional offices;
• The board or au d it com m ittee
of a bank th a t does not already em­
ploy an independent CPA firm
should analyze annually the b a n k ’s #
need for an external audit and record
its deliberations;
• W hen a bank decides an outside
audit by an independent CPA firm is
unnecessary, a more lim ited “ re -#
view” of financial statem en ts and
controls should be considered; and
• R egional offices should be
notified when a bank decides to
change its outside auditor.
U nder the proposed policy, ap­
p lic a n ts for d e p o s it in su ra n c e
coverage after the effective date of
the policy statem en t will be ex­
pected to obtain an external a u d it#
annually for a t least the first three
years after deposit insurance cov­
erage is granted. The proposed pol­
icy statem en t also notes th a t an an­
nual au d it by an outside CPA firm®
will be a condition of future enforce­
m ent actions under certain circum ­

Record Data Appoints
Account Executive for Illinois
Record Data, Cleveland, Ohio, a
su b sid ia ry of TRW Inc., h a s a n - ^
nounced the appointment of Sue B.
Maze to account executive for its Il­
linois regional service center. She has
more than 18 years of experience in
the real estate lending industry.
Ms. Maze attended Austin Commu­
nity College and San Jacinto College in
Pasadena where she received her Asso­
ciate Bachelor of Arts degree in music.
A native of Houston, Tex., Ms. M aze^
makes her home in Barrington, 111.


# Rocky Mountain Bank Note
Buys Los Angeles Company
Rocky M ountain B ank Note,
Denver, Colo., the second largest
check p rinter in the w estern U nited
® States, has acquired the assets of
the Form s Division of B ankP rint, a
Los Angeles prin tin g firm. The divi­
sion, w ith annual sales of $2.2
m illion, produces a v a rie ty of
® business form s for the California
m arket of financial in situtions.
Term s of the acquisition were not
The operations of the division will
® b e shifted to Salt Lake City where
Rock M ountain B ank Note has its
own Form Products Division. Accor­
ding to Laurence Polner, senior vice
_ president of acquisitions, the ac^ q u ir e d activities “ stren g th en our
position in th is grow ing m arket,
allowing us to b e tte r service our
financial custom ers throughout 16
^ w e s te r n s ta te s .”
Rocky M ountain B ank Note, w ith
20 check prin tin g p lan ts throughout
the W est, and revenues approaching
$100 million, is one of several firms
g o w n e d by the Russell Scott family.
O ther related firm s include the N a­
tional T ag Com pany of Vandalia,
Oh., a m ajor supplier to the retail in­
dustry, which was acquired in June,
^ 1987; and Checks-To-Go of E l Cajon,
Calif., acquired in M arch, 1988.

Former Merrill Lynch Exec
Joins Continental Bank
H. G ran t Clark, Jr., has joined
Continental B ank of Chicago to run
its private banking division.
Mr. Clark, 53, had been executive
director of M errill Lynch Private
Capital, Inc., Chicago, a private
banking and investm ent subsidiary
of M errill Lynch & Co., since 1982.
Prior to th a t he was senior vice
president and group head of the per­
sonal banking departm ent a t The
N orthern T ru st Bank, Chicago.
He spent 26 years w ith The
N orthern, and during th a t tim e Mr.
C la rk ’s resp o n sib ilities included
com m ercial banking relationship
m anagem ent and m anagem ent of
the executive and professional bank­
ing division. He earned a bachelor’s
degree in 1956 from W illiams Col­
lege in W illiamstown, M ass., and in
1972 c o m p le te d th e G ra d u a te
School of Credit and Financial
, M anagem ent p ro g ram a t D a r t­
m outh College.
Federal Reserve Bank of St. Louis

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individualized service an d comprehensive
capabilities, including:
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• credit and financial services
• global trade finance
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• trust, treasury and m any other services
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As your Midwestern neighbor, we share
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LaSalle c a n share m oney-center ban k in g
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Get acquainted with LaSalle's Correspondent
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135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Northwestern Banker, June, 1988


Rural Lenders to Meet in Rapid City
{{Q1ERVING The Custom ers and
O Improving the Bottom Line — In
a Changing Rural Environm ent” is
the theme for the 34th annual conven­
tion of the Upper Midwest Agricultur­
al Credit Council July 6, 7, 8 at the
Howard Johnson Motor Lodge in Rapid
City, South Dakota. The convention is
targeted to m anagers and lending offi­
cers of rural financial institutions.
"Rural financial institutions find
them selves in a rapidly changing
world,” says UMACC president Craig
Rehm, First Interstate Bank, Miles
City, Montana. "As a result, m anagers

and lenders in those financial institu­
tions look for information th at will
help them anticipate change and help
them cope with change — and th a t’s
the thrust of the 1988 convention.”
Also featured will be discussions of
how rural financial institutions m ain­
tain the bottom line in a changing
environm ent, "because,” says Mr.
Rehm, "w ithout profitability, ru ral
lenders are history.”
Keynote speaker John Borchert, Re­
gents Professor at the University of
Minnesota, will talk about "The Eco­
nomic and Social Evolution of Amer-

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IS Y S T i
4333 Ed gew o od Rd n e
PO. BOX 1847
Cedar Rapids. Iowa 5 2406
A Banks o f lowa subsidiary

Banker, June, 1988
Federal Reserve Bank of St. Louis

ica’s N orthern H eartland.” Charles
Riemenschneider, chief of staff, Com-®
mittee on Agriculture Forestry and
Nutrition, U.S. Senate, will discuss
economic and agricultural policy is­
sues impacting rural lenders.
Jam es Kirk, president, Farm Credit®
Services, Omaha, will discuss "The
New Farm Credit System: W hat Role
With O ther Rural Lenders?” Rural
bank profitability prospects will b e _
addressed by Donald R. Mengedoth,
president, Com m unity F irst Bankshares, Fargo.
Other speakers are Emil Melichar,
agricultural finance specialist, a n d ^
Les Horsager, Prudential ag ricu ltu ral^
group, and Kenneth Stone, professor
and extension economist, Iowa State
University, who will discuss "Business
Changes in Rural Communities: W h a t^
Are Viable Future M arkets for Rural
Lending Institutions.”
More information about attending
the conference may be obtained by
contacting Gailen Meyerink, UM ACC^
S e c re ta ry -T re a su re r, C om m unity
First State Bank, Platte, South Dako­
ta 57369, or UMACC State Directors
Larry Graham, First Western Bank,
N ew U nderw ood, S o u th D a k o ta ^
57761; Bob Caudel, 2100 Hannaford,
Bismarck, North Dakota 58501; Bill
Fisher, First Interstate Bank, Hardin,
M o n ta n a 59034; M a rtin G jerde,
Bonanza Valley State Bank, B ro o ten ^
Minnesota 56316, and Dale Crowley,
Hammond State Bank, Hammond,
Wisconsin 54015.

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U n ited M issouri B a n c sh a re s,
Inc., K ansas City, has announced
th a t David A.
P ro fitt
joined the hol­
ding com pany as
a s e n io r v ice
president in loan
a d m in is tr a tio n
r e v ie w ,
where he works
w ith the com­
p a n y ’s in tern al
portfolio review
system .
D u rin g M r. P r o f itt’s 23-year
banking career, he has been associa­
ted w ith U nited M issouri B ank of
K ansas City, n.a., U nited M issouri
B ancshares, Inc., U nited M issouri
Bank South and another local finan­
cial institution. He rejoined U nited
M issouri in M arch, 1988. He holds a
bachelor’s degree in business administratio n from W ashburn U niversity
in Topeka and a m a ste r’s degree
from C entral M issouri S tate U ni­
v ersity in W arrensburg.
The following appointm ents also
were announced by the holding com­
pany: Lindsey S. S tew art to loan ad­
m inistration officer in the loan
review departm ent, and Holly H.
Sm ith to a ssista n t m arketing officer
and Jo an M. Korinek to a ssista n t
corporate com m unications officer in
the m arketing departm ent.
A t U nited M issouri B ank of Kansas City, n.a., the holding com pany’s
principal subsidiary, several officer
prom otions have been announced.
A dvanced to the rank of senior
vice president are Charles J. Wolf
and Jim M. Rundberg.
Mr. Wolf is in the commercial
banking division where he services
new and existing loan portfolios. He
joined the bank in 1978 as vice president and m anager of the credit de­
p a rtm en t and has been in comm er­
cial banking since 1984. He was as­
sociated previously w ith financial
institu tio n s in K ansas and Denver,
Colo. Mr. W olf holds a B.A. degree
in business adm inistration from the
U niversity of Denver.
Mr. R undberg m anages the check
processing area of the operations
division. He joined UM B in 1986 as
a vice p resid en t in operations.
Previously, he was associated w ith a
com puter com pany in H utchinson,
Kan. Mr. H aw kins has attended
K ansas S ta te U niversity and Kan-
Federal Reserve Bank of St. Louis

N et income for the period was
$33,889,999, up 14.2% from last
y ear’s first q u arter earnings of
$29,679,910. N et income per share
for the qu arter was 40 cents, com­
pared to 35 cents in 1987.
H arold V. H averty, president and
chief executive officer, said the rev­
enue increase generated by the com­
pany, excluding the revenue con­
trib u ted by its m ost recent acquisi­
tion, Current, Inc., reflected an im­
sas City B usiness College.
Prom oted to a ssista n t vice presi­ provem ent in sluggish economic
dent is A nthony P. Haw kins, who is conditions in certain regions and
responsible for the operations and continued strong grow th in the com­
retail services of the international p a n y ’s newer products and busi­
departm ent. Mr. H aw kins joined the nesses.
However, Mr. H averty added,
bank in 1973 as a teller, transferred
a t least the balance of 1988,
to the collateral departm ent in 1977
in net income will be reduced
and w ent in to the international
departm ent in 1984. He has a tte n d ­ by the costs associated w ith conti­
ed M aple W oods Com m unity Col­ nued im plem entation of new prin­
ting technology, which will result in
lege and the AIB.
N ancy L. Hoffm an has been elec­ a more cost effective m ethod of pro­
ted a corporate tru s t officer. She is ducing traditional check p ro d u cts.”
an adm inistrator in the securities
tran sfer area of the tru s t d ep art­ Morvis Named Chairman of
New Entrepreneurship Board
Vickie S. S ibbitt has been elected
George M. M orvis, president of
a d a ta services officer, working w ith Financial Shares Corp., Chicago, has
correspondent bank custom ers who been elected chairm an of the board
use U M B ’s m ainfram e com puter for of the new S ta te of Illinois In stitu te
m ajor banking applications. She for E ntrepreneurship E ducation.
joined the bank in 1987 as a data
The In stitu te, created late last
services representative.
year by the Illinois General A ssem ­
bly, is designed to prom ote entre­
Deluxe Sales Are Up
preneurship as a career option, to
Deluxe Check P rinters, Incorpor­ foster the grow th and developm ent
ated, St. Paul, Minn., reports sales of entrepreneurship education as
for the first qu arter of 1988 were p a rt of prim ary and secondary
$286,172,431, up 22.6% over the economic education program s and to
first qu arter of 1987 when sales were prepare instructional personnel and
m aterials.

It'S IO P.M.
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Your C ollateral Is?
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check on inventory used as loan collat­
Instead, call us. An SLT professional
is always nearby to provide full inven­
tory control services or spot checks.
Our nationwide staff can also keep
track of insurance policies, lease con­
tracts and other documents in borrow­
ers' possession.
For over 50 years, SLT has helped
banks reduce credit risks on collateral
loans. To find out how our proven,
computerized system can help you,
mail coupon or call 1-800-325-7118.

Please rush information about SLT services for
financial institutions.

SLT Warehouse Company
1015 Locust Street
St. Louis, Missouri 63101
Northwestern Banker, June, 1988

oney makes the world go
round, they say.
And at Travelers Express, we
make money go round.
With our Official Check pro­
gram, for example.
Diane Booth, Controller in a
Wisconsin Savings and Loan, puts
it this way: "Our satisfaction with
Travelers Express isfrom the quality
o f service we have received[ the costsaving features o f the program. and
the friendliness and cooperation
And James L. Smith, a bank
president in Pennsylvania, reports
that the Travelers Express Official
Check program saves them money
through reduction in supplies cost,
and provides additional interest
income. "The system has worked
flaw lesslyf he adds.
Service is another popular
feature of our Official Check pro­
gram. At an Alabama Savings and
Loan, for example, Vice President
Larry Conville says, "We appreciate
the way Travelers Express responded
to our operations needsT


And from Ronald N. Linglass,
Vice President of a Maryland
savings association: "I am confiden t
that your product is the finest
on the market
To find out for yourself why
our Official Checks receive so much
official praise, contact
our Official Check
marketing department.

€>1988 Travelers Express Company. Inc.
Federal Reserve Bank of St. Louis

Money in Motion'"'
In Minnesota (612) 591-3000 (800) 328-5678



How to
clean up your
bank holding

Special Reading for
Directors, Management

Written especially for
T he N orthw estern B an k er

President and CEO
Austin Associates
Toledo, Ohio
Department of Finance
College of Business Administration
The University of Toledo
Toledo, Ohio

A T YEAR end 1986, almost one and a half years ago
JT\. when the last Federal Reserve statistics were avail­
able, there were 5,207 one-bank holding companies regis­
tered with the Federal Reserve system. Your banking
organization may be one of those 5,207 organizations. If
•y o u are, this commentary is for you.
While giving speeches on formation and operation of
one-bank holding companies during recent months, I
have been asked by commercial bankers throughout the
United States, "How does one clean up the minority
•shareholders th a t still reside in the bank subsidiary of the
one bank holding company?” This m onth’s commentary
will answer the two basic ways th a t you can clean up your
bank holding company ownership of the minority stock
still residing in the commercial bank subsidiary.
® H ow Minority Shareholders in Your Commercial
Bank Subsidiary Arose
There are two basic ways by which to form a one-bank
holding company: the tender offer for the outstanding
^ sh are s of your bank and the interim bank m erger through
^ th e chartering of a phantom bank and m erger with your
operating bank. If you formed your holding company
through the phantom bank m erger format, then you don’t
have any minority shares residing at the bank level since
^ th e y were eliminated through either exchange of shares of
wthe commercial bank with our bank holding company, or
more likely through the state and/or national bank
dissenter’s appraisal procedures. There is one way by
which you would have ended up with minority shares in
^ th e bank if you had formed the bank holding company
through a phantom bank merger, and th a t would have
Federal Reserve Bank of St. Louis

been through the intrastate securities exemption — thus
not offering the exchange to the shareholders th at were
outside of your state. This however is not an important
exception and will be ignored throughout the rest of the
If you are one of the over 3,000 one-bank holding
companies th at formed their holding company through
the tender offer route, then chances are th at you are one of
the 3,000 th at still have some minority shares at the
commercial bank level. Since you now have been operat­
ing for a num ber of years, you probably are finding out
th at these minority shareholders may have reaped a
windfall by not exchanging their shares for the holding
company shares.
Time and time again as we consult with community
banks throughout the country, we find th at minority
shareholders at the bank level who are now receiving
annual cash dividends in excess of what they paid for the
stock since the one bank holding company has had to
upstream cash dividends from the bank to the holding
company in order to be able to service the leveraged
buyout debt and/or bank stock loan. If your leakage is
significant, you may be costing yourself more per year to
pay off your minority shareholders than it would cost to
clean up the situation and eliminate such shareholders.
W hat you thought was a "cheap” way to form your holding
company may have turned into a very expensive annual
cost to the holding company.
Furthermore, simply to tender for the rem aining shares
will bring you, not surprisingly, extremely poor results,
since these shareholders realize th at they are benefiting
from the reorganization far better than you anticipated
they would. The simple question then becomes how do you
get them out? Is there a way to get them out? W hat should
you do? Should you leave them there? This commentary
addresses these questions in order to assist you in clean­
ing up your bank holding company if the leakage is a
significant dollar amount each year. If it is not, it may not
be cost effective to do so.
The Interim Bank M erger Solution
The traditional solution to cleaning up your bank
holding company is to proceed through the formation of an
interim bank and merge your current bank with and into
the interim bank. This is, for all intents and purposes, the
same transaction you could have used when you formed
Northwestern Banker, June, 1988


the holding company. Under current applicable law, you
would have to charter either a state bank or a national
bank and then merge your operating bank with and into
the interim bank. In cases of state banks, you could merge
the interim state bank with and into your current operat­
ing bank utilizing a reverse triangular merger.
Such reverse triangular reorganization is against the
public policy of national banks, according to the Comp­
troller of the Currency. This procedure would, by opera­
tion of law, eliminate your minority shareholders at the
bank who would either have to exchange their shares of
the commercial bank for the shares of bank holding
company or dissent and request "fair value” from the bank
holding company. In essence, the outcome to the minority
bank shareholder is either receive cash or bank holding
company stock — but with no chance of continuing as a
bank shareholder.

“With your legal counsel you should
make sure you follow appropriate
procedures for forming the phantom
bank and accomplishing the merger.”
If you anticipate following this procedure, you m ust
realize th at you will have to perform a "valuation” of your
bank holding company shares so th a t you exchange the
shares of the minority shareholders at a "fair value”; or if
you wish to eliminate such shareholders completely, the
valuation m ust be done in order to cash the shareholders
out a t a "fair value.” This valuation, accomplished by an
objective third party at arm ’s length, will assist you as a
board of directors in meeting your fiduciary duty of care in
determining the exchange ratio of holding company stock
or cash for bank stock, especially if you plan to cash out
the minority shareholders.
In concert with your legal counsel, you should make
sure th a t you follow the appropriate procedures for form­
ing the phantom bank and accomplishing the merger,
m aking sure th a t you meet all state and federal regula­
tory requirements, including the Securities laws of the
state and/or the S.E.C. This type of holding company
formation clean up may take you up to six months. It may
be necessary for you to have the firm th at accomplished
the valuation also provide you with a fairness opinion.
Such a fairness opinion may be based upon your particu­
lar circumstances, especially if you know the desires and/
or litigative tendencies of your m inority shareholders.
If the Financial Modernization Act of 1988, Senate Bill
1886, which was passed by the senate on March 30, 1988,
were to pass the House in substantially the same form,
Section 201 would perm it you to accomplish the clean up
through a 30 day notification period, if your minority
bank shareholders accounted for less than 10% of the
shares of the bank. Consult your legal counsel as to the
status of Senate Bill 1886, and if the Financial Moderniza­
tion Act of 1988 is passed sometime during the year, this
may allow you to accomplish the same bank holding
company formation clean up procedure as mentioned
before under simplified conditions.
Now for the big question: How much does it cost? One
bank holding company charter/m erger applications cost
in the range from $5,000 to $7,500 and the amount of legal
expenses/consulting expenses incurred may cost another

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

$7,500 to $15,000, and the valuation/fairness opinion
may cost $7,000 to $20,000. This total is in the range of®
$19,500 to $42,500 and if there are security costs involved
with the S.E.C. or state Blue Sky Laws, this should be
added to that. Thus, it could cost anywhere between
$20,000 and $50,000 for this particular procedure to clean
up your minority bank shares. You should thus, analyze®
these costs in relation to the benefits achieved by elim ina­
tion of the yearly cash leakage to minority bank share­
The R everse Stock Split Procedure
A reverse stock split is a recapitalization of the commer­
cial bank subsidiary of your one-bank holding company.
The board of directors of the bank approves and recom­
mends to the shareholders of the bank, who consist of t h e ^
bank holding company and the minority bank sharehold­
ers, th at the common stock authorized and outstanding of
the commercial bank subsidiary be split in a reverse
fashion. Utilizing a hypothetical example, a reverse stock
split of one share for 100 shares would eliminate a l l ^
m inority bank shareholders who own less th an 100
The purpose of the reverse stock split is to eliminate
commercial bank minority shareholders of one-bank hold­
ing companies and to pay off such shareholders by d is-^
bursing cash for fractional shares. In your particular case,
the reverse stock split has to be one for every "X” num ber
of shares so th a t no single minority shareholder would
end up with at least one share of the bank after the
recapitalization. Such recapitalizations accomplish th e ^
intended aim of elim inating the commercial bank minor­
ity shareholders.
After such recapitalization, the one bank holding com­
pany will own 100% of all shares of the commercial bank
subsidiary and the minority bank shareholders will h av e#
been cashed out.
The reverse stock split is available under the laws of
certain states including many of the states served by the
N orthwestern B anker. Several illustrations follow on
what has to be accomplished in certain states in order for#
the reverse stock split to be legally followed in order to
clean up your bank holding company. Since this commen­
tary is not a legal opinion, if you are interested in a
reverse stock split, I suggest you contact your legal
counsel to determine the efficacy of a reverse stock split in #
your state. If the reverse stock split is not available and
you are desirous of accomplishing the elimination of your
minority bank shareholders, you m ust then utilize the
interim bank m erger procedure noted in the section
Chapter 11 of the Ohio Revised Code (The Banking
Code) does not have a statutory prohibition for reverse
stock splits. Reverse stock splits are legal in Ohio iL
reviewed by the Division of Banks. Thus reverse stock®
splits are not prohibited, as long as the "fair value” given
to the minority shareholders in the form of cash is fair and
equitable. Since the board of directors can recommend
such reverse stock splits, the board of directors is responsi-^
ble for the fair and equitable "fair value” of the reverse
stock split.
Section 1103.14 of the Ohio Revised Code indicates th at
a two-thirds vote of the outstanding shares at the commer­
cial bank level m ust be voted in favor of the reverse stocl^
split, since the recapitalization in Ohio is an increase in


• Michigan: Reverse stock split requires 100% approval by H.C. and bank.
Indiana: Has approved several reverse stock splits.
Missouri: Reverse splits are fully acceptable if conditions are met.
# Wisconsin: Reverse splits are not encouraged.













the par value of the capital stock of the commercial bank
subsidiary and as a change of the Articles of Incorporation
of the state bank, there m ust be a two-third vote to
accomplish such recapitalization.
Procedurally, the bank m ust send to the rem aining
minority commercial bank shareholders notice of a spe­
cial shareholders m eeting to be held for the purpose of
voting on the reverse stock split. The Notice m ust be sent
at least 10 days prior to the holding of the meeting.
Following such vote, a Certificate of Amendment of the
Articles of Incorporation m ust be filed with the Division of
Banks and the Division of Banks has 60 days in which to
either approve or deny the Amendment to the Articles of
Incorporation of the state bank. If the Division of Banks
(DOB) approves such amendment, the DOB forwards the
Certificate of Amendment to the Secretary of State, and
thereafter the amendm ent and the reverse stock split
become effective. Ohio’s position on reverse stock splits is
constructive and more liberal than some other states.
M ichigan
Although the Michigan Banking Code of 1969 does not
explicitly prohibit the reverse stock split for cleaning up
the bank holding company, it is the policy of the Financial
Institutions Bureau (FIB) th a t reverse stock splits will
not be approved, unless the bank holding company and its
subsidiary bank receive 100% approval of the recapitali­
zation. The reasoning for this policy is th a t the FIB
believes th a t the interim bank m erger techniques de­
scribed above are the accepted means by which to clean
up the bank holding company. It is the FIB’s position th at
the legislature expected the interim bank m erger proce­
dure to be the exclusive remedy for cashing out minority
bank shareholders. The FIB would entertain requests for
a reverse stock split, if su b stan tial disclosure was
given to the shareholders and if the D issenter’s Appraisal
Statute under Michigan law (Section 487.430(2)(b)) were
to be followed in order to determine the equitable and
fair value of the shares under the reverse stock split
In summary, the Michigan reverse stock split procedure
is extrem ely restrictive, and since you do not know
whether you will get 100% approval of the minority
shareholders until after all of the money is spent, and you
may have to go ahead and do a phantom bank m erger
anyway, sound business judgem ent may dictate the in­
terim bank m erger technique rather than attem pting a
reverse stock split.
Indiana has approved several reverse stock split tran s­
actions in recent years. Indiana Code, annotated Section
28-1-6, outlines the procedures necessary to amend the
Articles of Incorporation of an Indiana state bank. Under
Indiana law, once a resolution of the board of directors has
been approved to amend the Articles of Incorporation a
majority vote of shareholders is all th at is required, and
then the amendm ent is submitted to the Secretary of
State for effectiveness. If the board of directors and legal
counsel for the Indiana state bank are convinced th a t the
Federal Reserve Bank of St. Louis

term s of the recapitalization are "fair” to the minority
shareholders, no application for approval to the banking
board of the Departm ent of Financial Institutions may be
required. It is prudent to contact the Departm ent of
Financial Institutions for the latest information concern­
ing their position on this m atter if you decide to accom­
plish such reverse stock split.
M issouri
Reverse stock splits under Annotated Missouri Stat­
utes Section 362 are permissible if the following condi­
tions are met:
1) the per share purchase price of the minority shares is
equal to or greater than the book value of the commercial
bank ;
(Per share price less than book value is not precluded,
but the general counsel for the Departm ent of Finance for
the State of Missouri says th a t the Commissioner will
scrutinize such per share prices less than book value.)
2) m inority shareholders of the bank are given substan­
tial m aterials which reflect the reasons for the reverse
stock split recapitalization, the mechanics of the transac­
tion, and the techniques by which the per share cash price
has been determined.
Under Missouri law, the Amendment to the Articles of
Incorporation for purposes of achieving the recapitaliza­
tion m ust follow these procedures:
1) mail all appropriate disclosure m aterials to the
rem aining minority shareholders at least 10 days prior to
the shareholders meeting;
2) publish legal notice in the local newspaper of such
special shareholders meeting;
3) at the special shareholders meeting achieve at least a
majority vote of shareholders (including shares held by
the bank holding company);
4) file a Certificate of Amendment with the Missouri
Commissioner of the Division of Banking, and;
5) the Amendment becomes effective when the Com­
missioner of Banking issues a Certificate of Effectiveness.
Subsequent to the Effectiveness Certificate, a copy of such
certificate and a certified copy of the Resolution of the
approval of such recapitalization by the shareholders of
the state bank should be filed with the office of the
Recorder of Deeds.
U nder Missouri law, reverse stock splits are fully
acceptable, and it is not necessary under Section 362:730
for the state bank to utilize the dissenter appraisal
technique for the determination of the per share value or
to provide any other alternative means for cashing out the
minority shareholders.
A review of Wisconsin statutes, annotated Section
221.25, and discussions with the Wisconsin Departm ent
of Banking indicate th at reverse stock splits are not
encouraged in Wisconsin. The Commissioner’s office will
flatly deny any reverse stock split where the per share
value of the cash out to minority shareholders has been
determined by the board of directors of the state bank
Northwestern Banker, June, 1988

requesting the Amendment to the Articles of Incorpora­
tion. Even if one utilizes an outside appraisal, and possi­
bly a fairness opinion, the Commissioner’s office does not
encourage such reverse stock splits and indicates th at
such cash out transactions should be handled through the
phantom bank merger which permits the minority share­
holders to utilize the dissenters appraisal statute in
Wisconsin (WSA 225.21)({1}).

“The Comptroller has approved the
reverse stock split recapitalization,
but under very stringent guidelines.”
The Iowa Departm ent of Commerce, Division of Bank­
ing has not denied the ability of a state chartered bank to
amend its Articles of Incorporation to perfect and reverse
stock splits — on the other hand, the Division has not
approved such a transaction either. The general counsel’s
office of the Division of Banking has stated th a t Iowa
banks are given very narrow and specific powers by the
Iowa legislation and since the Iowa Code; the Iowa Code
has not specifically stated th a t a reverse stock split
recapitalization can be effectuated by an Iowa bank, until
the legislature specifically empowers banks to take such
actions, the phantom merger technique of treating minor­
ity shareholder interests m ust be used. This technique
utilizes the appraisal process for dissenting minority
Each of these states has a different approach to the
permissibility of reverse stock splits. If you think this
technique is for you, make sure th at your legal counsel
checks with the Departm ent/D ivision/B ureau of Bank­
ing in your state for the appropriate procedures under
your applicable state law. If it is not permissible in
your state, then the only way by which you can cash out
the shareholders is to use the phantom bank merger
R everse Stock Splits and National Banks
The Office of the Comptroller of the Currency (OCC)
has approved the reverse stock split recapitalization, but
under very stringent guidelines. The OCC has approved
such recapitalization plans where a national bank, under­
capitalized, wanted to restructure the capital structure of
the bank to take out of the capital account a certain sum of
money and reaccount it as "capital contribution in excess
of p a r” or a sim ilar connotation. The OCC also requires
explanatory disclosures to be made to the affected minor­
ity shareholders. At a minimum, the OCC will require
th at shareholders be given the following information
prior to voting on the recapitalization:
1. The bank’s purpose in conducting the reverse stock
2. The reasons for the tim ing of the stock split;
3. The amount and precise valuation of the considera­
tion being offered;
4. A statem ent as to the fairness of the transaction;
5. A statem ent as to the availability of an independent
appraisal relating to the consideration offered;
6. A summary of the appraisal including findings and
7. The basis for the findings and recommendations;
8. A statem ent making the appraisal report available
to all shareholders requesting such.

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Due to the am ount of disclosure required and the
hesitancy of the OCC to approve such reverse stock splits1
unless special circumstances arise, the phantom bank
merger method is the more accepted method by the OCC
for cashing out minority shareholders. As with most
issues studied by the OCC, the applicable laws of the state
where the National Bank is located will greatly influence
the OCC decision on the permissibility. If your home state
does not allow reverse stock splits, the OCC won’t even
consider the idea. If your home state does allow reverse
stock splits, you will have an uphill battle, a t best.
Cost of a R everse Stock Split
The cost of a reverse stock split should be less than the
phantom bank m erger technique. The cost may depend on
the outside third party valuation cost plus fairness opin­
ion costs if applicable. Two recent reverse stock splits 0
performed by this office cost clients approximately $7,700
and $15,000, and these values can be considered as
illustrative of w hat it m ight cost for you to clean up your
bank holding company by utilization of the reverse stock
split methodology. On the other hand, a recent p h a n to m #
bank merger clean up cost the client $21,000 which may
or may not be illustrative of the costs. Before proceeding to
undertake such recapitalizations, bid out the costs of such
techniques in order to determine the best way by which to
accomplish the minority bank shareholder cleanup.

“Both techniques are available, but
make sure that you know which one
is most cost effective for your state
and your personal situation.”
Sum m ary and C oncluding Rem arks
If you w ant to get rid of your minority shareholders who
are bleeding you dry, and not perm itting you to upstream
the cash dividends of your bank to the holding company
for legitim ate business purposes, then you either have to
get rid of them through the reverse stock split recapitali- <
zation or through a phantom bank merger. Both tech­
niques are available, but make sure th a t you know which
one is most cost effective for your state and your personal
Since you will be subject to liability, and possible <
litigation by angry minority commercial bank sharehold­
ers who have determined th at they have a real good thing
going at your expense, you should make sure th a t you do
not place your board of directors into a compromising
position through determining the cash out price by a rb i-1
trary and capricious means. Utilize an outside objective
valuation firm and if necessary, have a fairness opinion
issued which may m itigate against your liability in case of
The end result of all of this will be to achieve a 100% *
owned subsidiary commercial bank for your bank holding
company, and allow you to upstream whatever money is
necessary to the bank holding company for corporate
purposes, including repaym ent of bank stock loans, is­
suance of cash dividends to the shareholders by utilization 1
of such funds for purchasing other financial institutions
and/or nonbanking subsidiaries. Furtherm ore, every­
body will be on the same team or off of the team, and this
will eliminate any problems you have in serving your
shareholder constituency.


ABA Community Bankers Advisory Board

A voice for community banks

A ssociate E ditor






U | B E L IE V E the A BA Council and A dvisory Board
I have m ade great strides in m eeting the goal of
serving the needs of com m unity bankers...w e are com­
m itted to the future of com m unity banking and involv­
ing as m any com m unity bankers as possible in our effo rts.”
These words of praise for the ABA Com m unity
B ankers Council and A dvisory Board come from John
Berg, A dvisory Board m em ber and president of The
B ank W ayzata, W ayzata, Minn. Michael G uttau,
another Board m em ber and president and chairm an of
Treynor S ta te B ank in Treynor, la., adds, “ This has
been one of the m ost enlightening and rew arding ex­
periences I have been involved in during m y banking
career. In general, the m em bers of this board are real
shakers and m overs w anting to accom plish things for
com m unity bankers across the n ation.”
O ther Board m em bers agree th a t th is organization
is doing a g reat deal to advance the interests of com­
m unity bankers, and they w ant to get the word out so
bankers can take full advantage of w hat the Board
does on their behalf.
Federal Reserve Bank of St. Louis

Origins of the Advisory Board
K athleen M. M urphy, associate director of the Com­
m unity B ankers Council, relates the origins of the A d­
visory Board. “ From 1973 to 1981, com m unity bank
representation in ABA was achieved through the Com­
m unity Bankers Division. This small group of commu­
nity bankers often worked jointly w ith the A gricul­
tu ral B ankers Division to develop products and ser­
vices to m eet rural b ankers’ needs. The Division also
reviewed legislation and regulation and their im pact
on com m unity banks.
“ A round 1981 it became apparent th a t there was a
need to increase com m unity banker involvem ent in the
legislative policy-making and im plem entation process.
Therefore, the com m ittee was elevated to ‘Council’ s ta ­
tus, giving it the powers to m ake and im plem ent poli­
cies. I t was also assigned an advisory board which pro­
vides input to the Council from com m unity bankers in
every state. The Com m unity B ankers Council also has
perm anent seats on the G overnm ent Relations Coun­
cil, the E ducation and Policy Developm ent Council and
the Com m unications Council, giving com m unity
Northwestern Banker, June, 1988


Who Took
Part in




The Bank Wayzata
Wayzata, Minn.

Treynor State Bank
Treynor, la.

Iowa Trust & Savings Bank
Centerville, la.

Buffalo National Bank
Buffalo, Minn.

banker input to other key policy-making groups w ithin
A B A .”
The Council has 20 m em bers, while the A dvisory
Board m em bership num bers 90, w ith the num ber of
m em bers from each sta te determ ined proportionately
according to the num ber of com m unity banks in th a t
state. A bout 56% of the m em bers are officers of banks
in the $26 to $75 million asset range.
Responsibilities of Members
The A dvisory Board m eets twice a year, in Ju ly and
November. The m eetings are dedicated to discussing
pending legislation, providing input to the Council re­
garding how current trends in the industry are affect­
ing bank operations, and identifying needs for pro-

identify new sources of fee income and integrate tech­
nological advances into our bank.
“ 5. In teg rate an overall planning process (financial,
strategic, m arketing, operational) in the b an k s.”
A Voice for Community Banks
Board m em bers feel the A dvisory Board serves as a
much needed voice for com m unity bankers w ithin
ABA. “ I think th a t the Am erican B ankers A ssociation
has difficulty relating to sm aller com m unity banks,
particularly in rural a reas,” says Samuel P. Baird,®
president of Farm ers S ta te Bank, Superior, Neb. “ I see
the A dvisory Board and, specifically, my position on it
as an opportunity to advocate the position of the rural
com m unity banks. The ABA staff m em bers appear to ^

“I see the Advisory Board as an opportunity to advocate the
position of the rural community banks. The ABA staff mem-*
bers appear to be quite willing to listen.”
Samuel P. Baird, Superior, Neb.
ducts and services which the ABA can meet.
R esponsibility of Board m em bers does not stop w ith
the m eetings. M em bers are expected to establish
strong relationships w ith their legislators, w ith elected
officials and w ith regulatory agencies, serving as
spokesm en for ABA com m unity banker efforts. Mem­
bers are called upon to respond to surveys and serve as
resource persons. They also represent the ABA to
banks in their own states, supporting ABA program s
and encouraging use of its products and services.
The Board addresses specific goals as it takes on
these responsibilities. E xplains m em ber D avid Taylor,
president, Iowa T ru st and Savings B ank in Center­
ville: ‘‘Board m em bers contacted bankers in their sta te
this p a st year, for example, to get a list of strategies
th a t should be discussed. The following were identified
by com m unity bankers:
“ 1. Become more aggressive and effective in legisla­
tion and regulatory initiatives in W ashington; become
more active in grassroots efforts back home.
“ 2. Develop a sales culture in the bank through b e t­
ter understanding of m arket needs, product develop­
m ent and aggressive selling.
‘‘3. M ake the com m itm ent to train/retrain/evaluate/
update our bank employees.
‘‘4. Find ways to control our non-interest expense,

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

be quite willing to listen and to discuss the different*
view s.”
John M. L undsten, president, Buffalo N ational
Bank, Buffalo, Minn., sees four ways in which the
Board benefits com m unity banks: “ A. I t provides a
forum for the exchange of ideas betw een community*
bankers and the ABA. B. I t gives com m unity bankers
a strong voice in the ABA decision m aking process. C.
I t gives com m unity bankers an opportunity to speak
w ith a united voice on legislative and regulatory m at­
ters. D. I t gives the ABA staff a m ethod of determ in­
ing w hat issues are m ost im portant to com m unity
ban k s.”
A Well-Kept Secret
Several Board m em bers expressed their feelingsth a t the organization is not well known and under­
stood by the com m unity bankers it serves, and th a t
the ABA tends to be perceived by bankers as a ‘‘big
b an k ” organization. Says C.G. ‘‘K elly” H olthus, presi­
dent, The 1st N ational B ank of York, Neb., “ I have|
some concern th a t the Com m unity B ankers Council
Advisory Board is a well-kept secret as far as m any
com m unity banks are I talk to commu­
nity bankers in N ebraska, I find they are not aware of
all the activities of th is group. In atten d in g the Com-|
m unity B ankers A nnual Conference, I find th a t the












1st National Bank of York
York, Neb.

First National Bank
Mattoon, III.

Bank of New Richmond
New Richmond, Wis.

Little Horn State Bank
Hardin, Mont.

Beatrice Natl. Bank & Trust
Beatrice, Neb.

bankers atten d in g w ant to retu rn because they feel it
is one of the b est bank conferences th a t they have a t­
tended, and it is geared to relating to the com m unity
banks. C ontrary to m any m eetings, this conference
continues to increase in size each y ear.”
Daniel E. M arvin, Jr., president, F irst N ational
Bank, M attoon, 111., agrees. “ M y view is th a t m any
com m unity bankers do not u nderstand th a t th is Coun­
cil exists and th a t through it they can have an im pact
on ABA policy. All of us who operate com m unity
banks are busy w ith a m yriad of duties and we often
see the A BA as a d ista n t organization. The Board goes
a long way tow ard reaching and solving th a t problem
b u t an im proved image and greater visibility is
Significant Accomplishments
The accom plishm ents to date of the Com m unity
B ankers Council and A dvisory Board testify to the
value of the organization. “ We have m ade dozens of
personal v isits w ith our representatives and sen ato rs,”
relates Jo h n Berg. “ We have generated thousands of
letters and hundreds of telephone calls and telegram s.
The Council and A dvisory Board responds to mem ­
b ers’ needs through product and program develop­
m ent and offerings [such as] Laser Pro, a loan
docum entation package, and B ank Tax Trak, a ta x
planning tool.
“ I t has form ed two ta sk forces to address key issues
im pacting com m unity bankers. The Com m unity
Banker T ask Force on R egulatory M atters provides in­
p u t to the Federal Reserve board on the im pact of
regulations on com m unity banks. The D irectors’ E x ­
am Task Force is developing guidelines to a ssist bank
directors in conducting effective directors’ exam ina­
tio n s.”
Richard Schurtz, president, B ank of New Richmond,
Wis., adds: “ A good example of [the developm ent of
program s] would be the B ank T raining Video System
to train bank employees in various areas of operation
and custom er service. A nother would be the evolution
of the N ational Conference for Com m unity Bankers
from a convention type of gathering to a working ses­
sion.” R egarding legislative issues, he says, “ The
Council and the Board both worked very diligently in
an a tte m p t to protect the com m unity b ankers’ inter­
ests w ith respect to the recent Proxm ire bill as it
moved through C ongress.”
Future Goals
The Board m em bers have learned from the organiza­
tion’s p a st successes and are creatively settin g goals
Federal Reserve Bank of St. Louis

for future efforts. Mr. H olthus says, “ I feel the Board
has done an excellent job m eeting its goals a t this
tim e. I think an additional goal would be to intensify
the role of the com m unity bankers in the lobbying ef­
forts of the ABA. The 12,000 com m unity banks would
have trem endous ‘clout’ in Congress if they would all
work together and respond to the call of the A BA when
im portant legislation is being considered.”
Mr. L undsten agrees. “ Com m unity bankers m ust be
made aware of the critical im portance of their involve­
m ent in the political process. We cannot sit back and
hope th a t the ABA will ‘take care of th in g s’ in legisla­
tive and regulatory m atters. Com m unity bankers m ust
speak out, and if they are unwilling or unable to do
th a t, then the Board m ust find ways to change those
a ttitu d e s and abilities.”
“ Concern is regularly expressed by bankers th a t
nonbank banks are providing services a t com petitive
prices which cannot be provided by banks because of
regulation of banks th a t does not apply to other insti­
tu tio n s,” says E rie C. Gross, president, L ittle Horn
S ta te Bank, H ardin, M ont. “ I believe the Com m unity
Bankers Council should offer com m unity banks tech­
niques to grow and add services w ithout fear of regula­
tory reprisals.”
Mr. Schurtz refers once again to ABA/com m unity
banker relations. “ I am concerned about the m iscon­
ception of the Am erican Bankers A ssociation relating
to this ‘big b a n k ’ image. I think both the Advisory
Board and the Council can do a b etter job to correct
this m isconception.”
An Excellent Opportunity
All the Board m em bers interview ed do seem to
agree th a t the experience of serving on the Council and
A dvisory Board has been an excellent opportunity for
them to bring the concerns of banks back home to a na­
tional forum.
W.W. Cook, Jr., president of B eatrice N ational Bank
and T ru st Company, Beatrice, Neb., expresses th a t
general sentim ent of praise: “ D uring my short tenure
on the Advisory Board, I do feel th a t we have m et our
goals. A ttendance a t Council and Board m eetings is
excellent. Projects which have been given to various
task forces are being worked on, and the results passed
on to all of the com m unity bankers. Bankers who are
m em bers of the Council and Board p u t in a lot of tim e
and effort for the betterm ent of all com m unity bank­
ers. S taff support from the ABA could not be better. I
hope th a t the Council and Board continue for m any
more y ears.”
Northwestern Banker, June, 1988


East Dubuque Savings to
Acquire Citicorp Branch
E a s t D ubuque Savings B ank and
Chicago-based Citicorp Savings of
Illinois have signed an agreem ent on
the acquisition by the E a s t D ub­
uque Savings B ank of C iticorp’s
E a s t D ubuque branch. Term s of the
transaction were not disclosed. The
acquisition is subject to regulatory
approval and is expected to be com­
pleted by the end of the summer.
The branch will operated under
the new name E a s t D ubuque Sav­
ings Bank. C iticorp’s three local
branch employees will join the ac­
quiring bank.
L a st A ugust, Citicorp announced
its intention to sell its fourteen non­

m etro Chicago branches. The deci­
sion was m ade because current
sta tu to ry interpretations prohibit
Citicorp, as a subsidiary of a bank­
holding company, from adding new
branches. W ithout the ability to add
branches to its scattered netw ork
outside the Chicago area, Citicorp is
not in a position to effectively serve
these m arkets.
L inda N elson, a s s is ta n t vice
president of the E a st D ubuque Sav­
ings Bank, will serve as m anager of
the new branch. E a s t D ubuque’s
president is D aryl D. Barklow.
The acquisition will increase the
b a n k ’s asset size from $36 to $45
The E a s t D ubuque Savings Bank
has also announced the recent addi­
tion of Joel C. H olland to its staff.
He will serve as an ag represen­
tative. Mr. Holland has done intern­
ship work w ith the Farm ers Home
A dm inistration and several area
com m unity banks.

FDIC Grants Assistance
to Pocahontas Bank
On April 25, the FD IC announced
it has granted financial assistance
under Section 13(c) of the Federal
D eposit Insurance A ct to Bond
County S tate B ank in Pocahontas.
Concurrent w ith the assistance,
the bank has been acquired by an in­
vestor group headed by Karl D. Tau­
ber, an Illinois banker. The inves­
tors have acquired all of the b a n k ’s
first vice president in the real e state
division. Prior to joining The E x ­
change last year as vice president of
the real estate division, Mr. B ennett
served a t E nterprise Savings B ank
of Chicago and The Balcor Company
in Skokie.
Catherine Cahill has also been
prom oted to first vice president in
the real estate division. She has been
with The Exchange since 1986. Prior
to th at, she was vice president of
A bacus Real E s ta te in Chicago.
Patricia Tennant has been ad­
vanced to vice president in the
b a n k ’s account analysis division.
She joined The Exchange in 1980,
and prior to th a t was employed by
The F irst N ational B ank of M orton
* * *

E x c h a n g e N a tio n a l B ank of
Chicago has announced several pro­
Richard Bennett has been nam ed

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

John Knutsen has been nam ed
president of BankersTech, Inc., a
subsidiary of F irst Colonial Bank-

stock and have contributed $450,
000 to the b a n k ’s capital structure.
The bank operates one office in
Pocahontas and has assets of about
$6.6 million.
The F D IC ’s assistance consists
of: 1) a cash infusion of up to $450,
000 to cover the deficit net w orth of
the bank; 2) a guarantee of up to
$825,000 covering losses of principal
and in terest on loans o u tstan d in g a t
the tim e the agreem ent was consum ated; 3) an indem nity of up to
$150,000 to cover possible losses in
contingent liabilities.
The FD IC assum es none of the (
bank’s assets and will have no fur­
th er obligation. F urther, the FD IC
will share in collections on a
designated pool of the b a n k ’s assets.

Convention Update
A t the tim e this issue was
being mailed, the Illinois B ank­
ers A ssocation was holding its
A nnual Convention a t The
F airm ont Hotel, Chicago.
D avid W ebber, president,
H arris Bank, Roselle, was
scheduled to advance as presi­
dent of the association, suc­
ceeding Jack Em m ons, presi­
dent and CEO, Security Bank
& T ru st Co., M t. Carmel.
The complete convention re­
port w ith photos will appear in
the Ju ly issue of T he N orth ­
w estern

B anker.

shares Corporation.
Mr. K nutsen began his career a t
Colonial B ank in 1972 and became
an a ssista n t m anager in 1973. He
was prom oted to m anager of teller %
operations in 1975 and nam ed vice
president and cashier in 1979. L ast
July Mr. K nutsen was nam ed ex­
ecutive vice president of B ankers­
Tech, Inc.
* * *
Lane Financial, Inc. announced
on M ay 11 th a t the Federal Reserve
System board of governors has ap­
proved the proposed acquisition of
Lane Financial by ABN/LA SA LLE
N orth America, Inc., paren t com­
pany of LaSalle N ational Corpora­
Lane Financial’s common stock­
holders were to m eet M ay 31 to vote
on the acquisition.
(Turn to page 29, please)

In a d d itio n to th e L en d in g
M anual, M BA is sta rtin g com m it­
tees for two other m anuals on
records retention and account pro­
cedures. A ny M BA m em ber in­
terested in serving on either ad­
visory com m ittee should contact the
M BA office.

MBA Compensation Survey
Attracts Record Participation

Promoted in Bemidji
The board of directors of The
F irst N ational B ank of Bem idji has
ann o u n ced th e
p r o m o t io n of
Debbie Lauderbaugh to auditor.
0M s.
L a u d e rb a u g h s t a r te d
w ith the bank in
1979 as a parttim e teller. In
^ 1 9 8 2 she w as
prom oted to tel­
ler supervisor, a D. LAUDERBAUGH
position she held until her appointm ent to auditor.

A record num ber of banks have
p a rtic ip a te d in th e M in n e so ta
Bankers A sssociation 1988 Compen­
sation Survey, according to W ayne
B erthiaum e, M BA vice p r e s id e n tadm inistration. He a ttrib u te d the
increase to m ajor changes in the
survey. B anks participate on a
voluntary basis in the survey, which
provides inform ation on salary and
benefits in the banking industry.

Zapp Bank Offers Scholarship,
Movie Series, Art Show
Zapp Bank, St. Cloud, has an­
nounced the winner of th is y e a r’s
$1000 scholarship. She is DeAnn
M arie B rix of St. Cloud. The scholar­
ship was established in 1984 to ben­

efit St. Cloud area stu d en ts plan­
ning to study banking/finance or
business adm inistration.
The bank is also continuing its
program of offering senior citizens a
series of free movies a t a local
theater. R efreshm ents are also pro­
vided a t the showing.
Zapp B ank also recently held its
26th annual A rt Show, which was
scheduled to run through Ju n e 20.

Convention Update
A t the tim e this issue was
being mailed, the M innesota
Bankers A ssocation was hold­
ing its A nnual Convention at
the H oliday Inn and Radisson
H otel in D uluth.
A. W illiam Sands, chairm an,
W estern Bank, St. Paul, was
scheduled to advance as presi­
dent of the association, suc­
ceeding Jam es R. Jo rsta d ,
president, M innesota Bank,
N.A., Caledonia.
The complete convention re­
port w ith photos will appear in
the Ju ly issue of T he N orth ­
w estern

B anker.

Promoted in Owatonna
Tim othy M. M cM anim on has
been prom oted to senior vice presi^ d e n t/b u sin e ss banking a t N orw est
B ank Ow atonna. He joined the bank
in 1983 as a comm ercial loan officer,
became a ssista n t vice president in
1985, and vice president later th a t
^ s a m e year. Prior to joining the bank,
Mr. M cM anim on worked for the
N orw est affiliate bank in W inona.

MBA Updates Manual

The M innesota B ankers A ssocia­
tion Procedures and Form s M anual
1988 A dvisory C om m ittee has been
w orking on an updated section on
^ a d ju sta b le rate m ortgages and a
new section on construction finan­
cing. U pdates were m ailed to M BA
m em bers in May.
The M BA Procedures and Form s
^ M an u a l consists of four loose-leaf
m anuals on procedures and forms
for four lending areas: agricultural,
commercial, real estate, and consu­
m er lending. M BA m em ber cost to
^ p urchase the set is $500 plus an an­
nual up d atin g fee.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


F irst W isconsin C orporation an­
nounced on M ay 5 th a t it had
reached an agreem ent to acquire
M etropolitan B ank Group, Inc., a
$200 million one-bank holding com­
pany which owns the M etroBank,
headquartered in Bloom ington. The
acquisition will be F irst W isconsin’s
largest to date in M innesota. W hen
com pleted, it will m ake F irs t
W isconsin the fifth largest banking
com pany in the Twin Cities, w ith
assets of more th an $612 million.
M etropolitan has six locations, in­
cluding two in Bloom ington, two in

Sorum to senior vice p re sid e n t/d ir#
ector of m ark etin g , and Tony
Albrecht to vice p re s id e n t—in ­
vestm ents.
Mr. Sorum came to Brem er in
1984 from F irst B ank G rand F orks,#
where he served as president/CEO .
He also served FB S as a vice presi­
dent and m anager of training in
Minneapolis. In addition, he has
been a bank consultant.
Mr. A lbrecht joined Brem er in
The board of directors of Brem er 1987 from B ankers T ru st Company
Financial Services, Inc. has an­ in Des Moines, where he served as
nounced the prom otion of Lyle investm ent m anager.
* * *
M inneapolis, and one each in Ply­
m outh and St. Paul. Combined w ith
F irst W isconsin’s four previously
announced acquisitions in M in­
nesota, it will give the W isconsin
bank holding com pany 19 locations
in the Twin Cities area.
The nam e and staff of M etroB ank
will rem ain the same.
* * *

‘‘We’re going
the extra mile
to be at the
North Dakota
Bankers Assoc
See you there.
Greg Larson
Bankers Officer

Three recent officer elections have
been announced by F irst S ta te Bank
of E den Prairie.
Sue Von has been elected vice
president. She previously was vice
president a t M arquette B ank M in­
neapolis. She began her banking^
career a t N orw est B ank M in ^
Janet Alland has been elected
a ssista n t vice president. She had
been a loan officer a t F irst S t a t ^
Bank. H er career began a t the banls
in 1979.
Carm Nelson has been elected
cashier. She joined the bank in 1987
after serving as operations officer a ^
Franklin N ational B ank in M in­
* * *
The following changes have b e e ^
announced a t Cherokee S ta te Bank,
St. Paul: Dennis Passeri has been
prom oted to executive vice presi­
dent, Ann Tischler has been p rc^
mo ted to vice president—c a s h ie *
and Heidi Gesell has been prom oted
to vice president.
In addition, Ms. Gesell has been
named to the board of directors. ^
Richard W. Paschke has joinea

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Minnesota News

the staff as a consum er loan officer.
•P a tr ic k D. Grinde has joined the
bank as vice president and m anager
of the G rand Avenue facility.
M r. P a s s e ri h a s been w ith
^ C h e ro k ee for 19 years, Ms. Tischler
• h a s spent her entire career w ith the
bank, and Ms. Gesell has been w ith
the bank since 1983.
* * *
The F irst B ank System has an­
nounced recent staff changes:
Fred Gumbel was nam ed credit
cycle m anager for the credit manag^ment and processing support divi­
sion of F irst Bank. H e was m ost
recently senior vice president a t
Citicorp Savings of Florida, Miami.
William M. Wingfield has been
^ a p p o in te d v ic e p r e s i d e n t fo r
Securities Processing Services, Inc.
(SPSI), an FB S subsidiary. He m ost
recently served as vice president of
t r u s t o p e ra tio n s s e rv ic e s for
)W achovia B ank and T rust, W in­
ston-Salem, N.C.
Elizabeth Parker has been pro­
m o te d to vice p r e s id e n t a n d
m anager of physical a sse t services
>at SPSI. She has been w ith FB S
since 1979 and m ost recently served
as a ssista n t vice president a t F irst
T rust.
Mike Kellogg has been prom oted
Mx> vice president and m anager, in­
stitu tio n al tru s t group a t F irst
Trust. He joined the com pany in
1986 as a ssista n t vice president.
Tom Murray has been advanced
>to vice president, personal tru s t a t
F irst T rust. M ost recently he served
as personal tru s t a ssista n t vice
p resid en t/assistan t secretary.
Bob Engebretsen has been pro­
m o te d to vice president, personal
tru s t a t F irst T rust. He joined the
company in 1973 as an income ta x
Judith Tucker Curtis has been
^named vice president and m anager
of corporate tru s t adm inistration for
F irst T rust. She joins the company
after 13 years w ith C ontinental Il­
linois in Chicago, where she m ost
^recently served as second vice presi­
dent in the corporate services tru s t
departm ent.
The F B S M erch an t B anking
Group has announced it has added
9three to its staff.
Douglas Q. Holmes, m ost recent­
ly corporate finance associate w ith
The F irst B oston Corporation in
^Chicago, has joined the group as a
corporate finance director.
Federal Reserve Bank of St. Louis


viously a vice president of corporate
finance a t Shearson Lehm an H u tto n
in New York City, has also joined
the group as a corporate finance
* * *

* w

mmm mmmmm




Independent S tate B ank of M in­
nesota has elected two new board
m em bers. They are James A. Clark
and Robert Vogel.
Mr. Clark began his career a t the
P r o d u c t i o n C r e d it o f fic e in
M ankato. He has also worked in
banks in Fulda and W indom. He is
president and CEO of the Lake
C rystal N ational B ank in Lake
Crystal, which he purchased in 1981.
Mr. Vogel joined M id America
Bancorporation after graduation.
He has worked a t the family owned
bank, F irst S tate Bank, New M ar­
ket, cince 1975, and is currently
CEO and cashier.
* * *

Clifford I. La vine has joined M er­
chant B anking as a m ergers and ac­
quisitions director. He form erly was
a m ergers and acquisitions vice
Stockholders of N orw est Corpora­
president w ith Salomon B rothers tion have elected 15 directors.
Inc., New York City.
They also voted to increase the
Paul C. Schnoebelen III, pre­ num ber of authorized shares of com-

“I’m looking
forward to seeing
all my friends from
Western Wisconsin
at the Wisconsin
Convention in
Bob Jacobson

Vice President
Correspondent Banking

Your Correspondent Partner


B A N K - S A I N T


Northwestern Banker, June, 1988


Minnesota News

mon stock to 100 million, from 50
million; to am end the corporation’s
1985 Long-Term Incentive Compen­
sation Plan to increase the num ber
of shares th a t m ay be issued and to
extend the p lan ’s term ination date
to 1998; and to ratify the appoint­
m ent of P eat M arwick M ain & Co. as
the com pany’s auditors for the year.
The directors are: David A.
Christensen, president and CEO,
R aven In d u strie s, Sioux F alls,
S.Dak.; Pierson M. Grieve, chair­
m an, president and CEO, Ecolab,
Inc., St. Paul; N. Bud Grossman,
m anager, Cogel M anagem ent Co.,
Minneapolis; Charles M. Harper,
chairm an and CEO, ConAgra, Inc.,
Omaha; William A. Hodder, chair­
man, president and CEO, Donaldson
Company, Inc., M inneapolis; George
C. Howe, Jr., president and m anag­
ing partner, Howe Seed Farm s,
Casseleton, N. Dak.; Lloyd P.
Johnson, chairm an, president and
CEO, N orw est Corporation, M in­
neapolis; Reatha Clark King, presi­
dent M etropolitan S ta te U niversity,
St. Paul; Richard M. Kovacevich,
vice chairm an and COO of the bank­
ing group, N orw est Corp., M in­
neapolis; Richard S. Leavitt, chair­
m an and CEO, Nellis Corporation,
Rockville, Md.; Richard D. McCor­
mick, president and COO, US W est,
Inc., Englewood, Colo.; John E.
Pearson, chairm an and CEO, N orth­
w estern N ational Life Insurance
Company. Gerald Rauenhorst, chair­
m an and CEO, Opus Corporation,

M inneapolis. James R. Spicola,
president and COO, Cargill, Inc.,
Minneapolis; David M. Winton,
m anager, W inton P artners, M in­
* * *

from Ford M otor Credit Com pany in
1987, announced Carl J. Mannino,
m anager of lock box system s and
operations, Ford M otor Credit Com­
Ford, which launched its q u a lity ,
service cam paign in the mid-SO’s^
along w ith its national advertising
Allen I. Olson, executive vice slogan, “ Q uality is Jo b #1,” issues
p r e s id e n t of th e I n d e p e n d e n t an annual Q1 A w ard (“ report c a rd ” ),
Bankers of M innesota, announced th a t statistically rate s the quality of^
April 20 th a t it has appointed W orld specific cash m anagem ent services.
Travel Bureau, Inc. of Rochester as Am ong 23 banks nationwide, FB S
the official purveyor of a new earned the highest ra tin g for “ in­
custom er service offered to its dependently and consistently ex­
m em ber banks throughout the state. ceeding Ford M otor C redit’s lock|
W orld Travel B ureau will offer a box quality objectives in 1987.”
com plete line of travel services to FB S is the only bank to win the
b a n k in g c u s to m e rs ex clu siv ely aw ard three years in a row, accor­
through IBoM m em bers. The scope ding to Mr. M annino.
of the service will include all of those
A utom ated retail lock box is u se d |
provided by a full-service travel to collect high volume, low dollar,
agency, including dom estic and in­ consum er-to-corporate rem ittances.
ternational travel tour packages, The service uses high-speed auto­
c ru is e s a n d in d iv id u a l a irlin e m ated equipm ent to process checks
and prepare deposits. I t transm its^
“ This program has been e sta ­ d e ta ile d rec e iv a b le in fo rm a tio n
blished to m eet a need which we see directly to the company. Terry
in m any com m unities—a need for a Sandvik, senior vice president, is
convenient, centralized travel ser­ head of the FB S Cash M anagem ent
vice,’’ sta te d Mr. Olson.
E ach p articipating bank will have
* * *
trained rep resen tativ es to coor­
A photo exhibit depicting scenes
dinate the custom ers’ arrangem ents
from St. Paul in 1903 has opened a t
and ticketing through a special com­
the Am erican N ational B an k ’s m ain _
m u n ic a tio n s n e tw o rk w ith th e
banking lobby in dow ntow n St.
W orld Travel offices in Rochester.
Paul. I t is available for public view­
* * *
ing a t no charge.
F irst B ank System lock box ser­
The exhibit is sponsored by the
vices earned the top quality ratin g
bank to m ark the 85 th a n n iv e rsa ry ^
of its founding in M ay 1903. I t w a s ^
researched by the R am sey County
H istorical Society and displays
photos provided by the M innesota
H istorical Society. The exhibit w ill^
be a t the bank through Ju n e and will
move to other locations throughout
the year.
* * *

Meet Mike Bodeen
Norwest’s Corre­
spondent Banker
for Northern Minnesota. When you have
correspondent banking needs, he’s a good
person to know. Mike makes it his business
to understand the special needs of commun­
ity banks. And he wants to do business with
© 1988 Norwest Banks
Federal Reserve Bank of St. Louis

Member FDIC

you. Talk to Mike about
our complete line of specialized correspon­
dent banking services. When it comes to
correspondent banking, he’s got you covered.

Norwest Bank Minnesota, N.A.

David M. Gilman has been n a m e d #
vice president and n orth m arket
m anager, small business banking,
for FBS, and m anaging officer for
the F irst Bank, Robbinsdale office.
Mr. Gilm an form erly was presi-#
dent and CEO of M arine B ank
B loom ington, now F ir s t B an k
Bloom ington. He began his career in
1957 w ith Fidelity B ank N ortheast,
where he eventually served as chair-#
man, president and CEO. He joined
M arine in 1986.
He replaces Kenneth C. Sheenan,
m anaging officer of the Robbinsdale
office, who retired M ay 31.



ELECTED at convention to serve as officers for the SDBA in 1988-89 are, from left:
Pres.—Christine Schirber, exec, v.p., Dewey County, Isabel; Pres.-Elect—David Birkeland,
pres. & c.e.o., First Bank of S.D., N.A., Sioux Falls; Vice Pres.—Leroy Hofer, pres., First
State, Armour; Immed. Past Pres.—Larry Ness, pres. & c.e.o., First Dakota Natl., Yankton,
and Exec. Vice Pres—J.I. Milton Schwartz, Pierre.

•Bankers Meet in Sioux Falls
Associate Publisher
HE 96th Annual South Dakota
Bankers Association Conven­
tion was held last month in Sioux
^ Falls and attracted hundreds of
bankers and spouses from through­
out the state. The two and one-half
day convention featured excellent
speakers and general sessions,
0 spouse activities and a special open­
ing night party with a “Roaring
2 0 V ’ theme.
This year’s convention was a first,
as Christine Schirber, executive vice
% president at the Dewey County
Bank in Isabel, was elected to head
the SDBA. Ms. Schirber is the first
woman to serve as president of the
Officers Elected
Other officers elected at the con­
vention were: P resident-E lect—
David Birkeland, president, First


Bank of South Dakota, Sioux Falls;
Vice President—Leroy Hofer, pres­
ident, First State Bank, Armour;
Immediate Past President—Larry
Ness, president, First Dakota Na­
tional Bank, Yankton, and Execu­
tive Vice President—J.I. Milton
Schwartz, Pierre. This year’s con­
vention was chaired by Dennis
Kirkeby, senior vice president, First
National Bank, Sioux Falls.
General Session
After a welcome from Sioux Falls
Mayor Jack White, introductions
were made and the first general ses­
sion speaker was announced. Dr.
Barry Asmus, author and professor
of economics, Phoenix, Ariz., gave
his presentation entitled “Econo­
mics and the Spirit of Free Enter­
prise.’’ Dr. Asmus said, “We have
been in an appreciated business ex­
pansion for the past six years that
has created over 16 million new jobs,
helped lower interest rates, created
higher household incom es and

helped push the Gross National
Product up.’’
Dr. Asmus credited the U.S.
economic expansion to the current
lower marginal tax rate and privati­
zation. “The key to economic resur­
gence is lower marginal tax rates,’’
he said, relating that these rates
have dropped from 50 percent to 28
percent with the newly enacted 1986
Tax Reform Bill. Dr. Asmus also
noted, “Private ownership and capi­
talism equal freedom, and socialism
destroys the souls of human
L ooking ahead, Dr. A sm us
predicts “an enormous progressive
move in agriculture and manufac­
turing.” He said we will continue to
be a great nation in both these
fields, but fewer people will be em­
ployed in agriculture and manufac­
turing. Dr. Asmus pointed out that
75 percent of the labor force in
America is employed in the service
sector, “and w e’re heading for 90
C.C. Hope, director of the FDIC,
addressed the general assembly. He
is in his second year of a six year
stint with the FDIC. Mr. Hope, re­
ferring to his last appearance before
an SD BA convention, said, “There
have been a lot of changes over the
past nine years.” In his view, most
drastic among those changes were
developments regarding interstate
banking, and the m assive bank clos­
ings that have taken place over past
Mr. Hope said there were 184
bank failures and a number of assis­
tances in 1987, and projected that
number will be about the same in
1988. “One bright spot,” he said, “is
that in South Dakota, only three
banks have been closed since 1984.”
Mr. Hope said, “Seldom is there a
single cause for a bank failure,” but

LEFT—Chairing the 1988 SDBA Convention was, left, Dennis Kirkeby, sr. v.p., First Natl., Sioux Falls, with guest speaker, C.C. Hope, Jr.,
0 dir., FDIC, Wash., D.C. RIGHT—Taking part in the convention’s general session were, from left: Kent Stickler, pres., Financial Shares, Inc.,

Clearwater Beach, Fla., with Martha and Thomas Rideout, pres.-elect of the ABA and vice chmn., First Union Natl., Charlotte, N.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988




Through your life’s experiences there has always been one
element that helped you grow - trusted friends. People who
care about you.
And it’s no different now. The people who bring you tUt
Correspondent and Investment Services of Marquette Bank
have provided dedicated support for years and continue to do so.
We are here with investment and loan strategies that function
Federal Reserve Bank of St. Louis

together to deliver the resources you need. With people who
understand the importance of working as a team and custom­
izing plans for your specific situation.
# Most importantly we’re here when you need us. The same
familiar faces, day in and day out. Bringing you knowledge,
experience, and the warmth of a trusted friend. So whatever
your needs, just call. You can count on us to come through.
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Marquette Bank

Member FC

Correspondent Services 341-6561
MN Wats 800-862-1452
National Wats 800-328-8155
Investment Department 341-6558
MN Wats 800-643-7582
National Wats 800-328-8013


South Dakota News

LEFT—Visiting prior to the start of the general business session with Dr. Barry Asmus (right), prof, of econ., Phoenix, Ariz., are Larry Ness
and Christine Schirber. RIGHT—Enjoying themselves during the “ Roaring 20’s Party” were, from left: B. Michael Broderick, pres., First 0
American, Canton; Craig Johnson, v.p., Norwest Bank, Sioux Falls, and John Thomson, pres., Bank of Centerville.

LEFT—Security Natl., Sioux City, hosted a breakfast and its guests included, from left: Tom Lillibridge, pres., First Fidelity, Burke, and his
wife Cindy; John Lillibridge, chmn., First Fidelity, Burke, and Gene Hagen, pres. & c.e.o., host bank. RIGHT—Visiting at the North Central
Life exhibit were, from left: Russ Eng, repr., Sioux Falls; Lee Larsen, pres., Norwest Bank, Huron, and Dennis Zea, repr., Sioux Falls.

LEFT—Taking part in the Norwest dinner party were, from left: John Sampson, sr. v.p., Mpls.; Pat Farrar, Britton; Joan Holter, Vermillion,
and Robert Rasmussen, v.p., Mpls. RIGHT—Present at the Brandt Money Handling Machines, Inc. booth were, from left: Al Larson, chmn.,
Farmers State, Winner; Scott Grimes, Brandt, Omaha; Jim Jares, pres., Farmers State, Winner, and Don Cahoy, Brandt, Sioux Falls.

did note that 89 percent of all
failures are a result of improper
management. He pointed out that
only ten percent of all bank failures
are caused by fraud. In conclusion,
Mr. Hope said the recent $1 billion
loan from the FDIC to the troubled
First Republic Bank in Texas was a
“temporary solution to a serious
problem /’ He related that there was
a $250 million “run” on the bank on­
ly two and a half hours after trouble
was learned of by depositors.

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Speaking out on the issue of the
merging of the FDIC and FSLIC
funds, Mr. Hope said, “We at the
FDIC oppose a merger of the funds.
There are, however, some congress­
men that are looking at proposing a
merger of the FDIC, FSLIC and the
credit union funds.” Mr. Hope called
the recent $10.8 billion FSLIC
bailout by Congress “woefully in­
adequate,” and concluded, “We
don’t have enough funds to take on
the problems of the FSLIC.”

South Dakota News

This y e a r’s program also featured
com m ents from ABA PresidentElect Thom as Rideout, vice chair­
man, F irst Union N ational Bank,
Charlotte, N.C., and The Honorable
• G eorge M ickelson, governor of
South D akota. I t was announced a t
the convention th a t the 1989 SDBA
Convention will be held in Sioux
Falls. The 1990 A nnual Convention
® will be a “ tri-s ta te ” gathering of
bankers from South D akota, N orth
D akota and M ontana, and will be
held in Rapid City.



Pres. Named in Rapid City

F irst B ank Rapid City has an­
nounced th a t Jim M irehouse will
assum e responsibility as president
# of F irst B ank Rapid City. L ast
Jan u ary , Mr. M irehouse stepped in
for President Ron Brue, following
his unexpected illness.
Mr. Brue will retu rn to the bank
# as executive vice president.
Mr. M irehouse began his career in
the ag credit area of F irst B ank
G reat Falls, M ont., in 1979. He
transferred to F irst B ank Havre,
• M ont., in 1984, and was nam ed
president and CEO later th a t year.
In 1986, Mr. M irehouse was nam ed
senior vice president of FB S Credit
Services, Inc. and A g ricu ltu ra l
® Credit Corporation.
W hen FB S purchased Mid-Valley
B ank in Omak, W ash., in 1986, Mr.
M irehouse was nam ed chairm an of
the newly acquired F irst B ank
® W ashington. In June, 1987, he was
nam ed product support m anager in
F B S ’s regional com m unity banking
in M inneapolis. He transferred to
F irst B ank R apid City as executive
® vice president and COO in Ja n u ary
of th is year.




to a new position as vice president
and m anager of agricultural real
estate lending for its subsidiary,
Norwest A gricultural Credit, Inc.
He was vice president of branch
operations w ith the F arm Credit
Services in Storm Lake, la., and pre­
viously served for 15 years, until
1985, as president of the Federal
Land B ank A ssociation in Sheldon,
Mr. M ann’s position was created
in response to the recent federal
legislation authorizing the “ Farm er
M ac” program .
D arla Sm ith has been appointed
m ortgage loan officer for the N or­
west B ank South D akota Brookings
Branch. She joined N orw est in 1976
and m ost recently was a personal
banking officer.
Shirley Pradere has been nam ed
tru s t adm inistrator for N orw est
Capital M anagem ent and T ru st in
Rapid City. She joined N orw est in
Billings, M ont, in 1985, and since
1987 has been a regional credit
analyst for M ontana’s Region V III.
Sue Thune has been nam ed per­
sonal banking representative for the
N o rw e st B a n k S o u th D a k o ta
M arion Road branch. She joined
N orw est last year as an adm inistra­
tive a s sis ta n t in correspondent

(Continued from page 20)

Kenneth A. Skopec, president of
The Mid-City N ational B ank of
C h ic a g o sin c e
1972, has been
e le c te d
v ic e
c h a ir m a n a n d
of t h e
Promoted in Rapid City
Yenerich, who
Sonia A ndrews has been pro­
had been execu­
m oted to a ssista n t cashier in charge
tive vice presi­
of d a ta processing operations for
d e n t of M idRushm ore S ta te Bank, Rapid City.
City, will suc­
She joined the bank in 1981 and
ceed Mr. Skopec as president. He
presently works a t the Rapid City
also will serve as the b a n k ’s chief
main office. Ms. Andrew s was
operating officer.
previously employed by B arn ett
Ronald D. Santo, form erly senior
Bank, N.A. in Florida.
vice president of the bank, has been
elected executive vice president of
Mid-City N ational B ank to replace
Changes Told by Norwest
Mr. Yenerich. Mr. Santo also was
N orw est C orporation has an­ elected to the board of directors.
Mr. Skopec began his business
nounced several staff changes in
career w ith M id-City in 1952, was
South Dakota:
J a y I. M ann has been appointed nam ed vice presid en t in 1962,
Federal Reserve Bank of St. Louis




elected a director in 1965, and was
nam ed president in 1972.
Mr. Yenerich joined the bank in
1959 and became a full-time em­
ployee in 1965. Since th a t itm e he
has served as pro-cashier, a ssista n t
cashier, a ssista n t vice president,
vice president, senior vice president
and executive vice president.
Mr. Santo joined M id-City in 1971
as a ssista n t auditor. Since then he
has served as installm ent credit loan
officer, real estate loan officer, assis­
ta n t vice president and commercial
loan officer, and cashier before being
elected senior vice president and
board secretary.



The Cole Taylor Financial Group,
Inc. has a net income of $6.221 mil­
lion for 1987, a 7.2 percent im prove­
m ent over income for 1986, it was
announced a t the com pany’s recent
annual m eeting. O perating earnings
for the group were up 44% over 1986
Total assets grew 6.1 percent
from 1986 to 1987, now exceeding
$1.162 billion. The com pany’s to ta l
loan volume increased 8.8 percent.
* * *
G round was recently broken for
the F irst Colonial B ank Lake Coun­
ty, a new F irst Colonial B ankshares
Corporation full service bank. The
bank, adjacent to the H aw thorn
Mall, is expected to open in late
December. A qu arter of the building
will be leased to other companies.
A r c h ite c tu r a l firm S y s te m s
Design Ltd. designed the building
and it will be built by M ickey W eiss
* * *
Dan Graham, vice president and
E D P auditor of The Exchange N a­
tional B ank of Chicago, has received
th e 1988 B lack an d H isp an ic
Achievers of In d u stry Award.
Northwestern Banker, June, 1988


92nd Annual
Wisconsin Bankers
Association Convention

Wisconsin Banking:
a Design for the Future

June 13-15
Pfister Hotel, Milwaukee



ISCONSIN Banking—A Design for the Fu-

VV ture” is the theme of the 92nd Annual Con­
vention of the Wisconsin Bankers Association. The
convention will be held June 13-15 at the Pfister Hotel
in Milwaukee.
Presiding over the gathering will be Richard P.
Klug, chairman of W BA and chairman and CEO of
F&M Financial Services Corporation, Menomonee
Falls. Slated to succeed him is Chairman-Elect Jess S.
Levin, president of the Bank of Elmwood, Racine. Vice
Chairman of the WBA is Gilbert L. Homstad, presi­
dent of the Jackson County Bank, Black River Falls.
Bryan K. Koontz is president of the association.
A special feature of this year’s convention will be a
full day of exhibits on Monday, June 13. The exhibits
are open to all bankers, whether registered for the con­
vention or not.
Featured speakers include Danny Cox, top-flight
sales manager; William M. Isaac, managing director
and CEO of The Secura Group and former FDIC head;
and banking expert Dr. Herbert V. Prochnow.
The “Black and White Gala” dinner show and dance
Tuesday night will feature entertainment by the
Marlene Ricci Show and the Chuck Howard Orchestra.
Highlighting the guest program will be a luncheon
with celebrity Virginia Graham.
The complete convention schedule follows:

Monday, June 13
9:00 Exhibit hall/registration open.
9:00 Continental breakfast.
11:30 Luncheon with Danny Cox—“Leadership
—When the H eat’s On.”

Banker, June, 1988
Federal Reserve Bank of St. Louis


Vice Chairman


2:30 WBA committee meetings.
4:00 Reception.
6:00 First Wisconsin Party, 40th Floor, First
Wisconsin Center.
Tuesday, June 14
8:00 Breakfast sponsored by M&I.
9:30 General session. “A Flag Day Salute: Tragedy
to Triumph”—former P.O.W. Phillip Butler.
Forum for U.S. Senate candidates.
12:30 Banker luncheon. “Report Card: Wisconsin
Banks’ Attack on the Future”—Bryan Koontz,
WBA pres.
2:30 Special CEO Super Session: “Meeting the
Competition—A Design for the Future”—
Tricia Faulkender, TFA, Chicago; Kent
Stickler, Financial Shares South, Clearwater
Beach, Fla.
5:30 Reception, Top of the Marine.
7:15 Black and White Gala Dinner Show and Danc­
Wednesday, June 15


8:00 Breakfast sponsored by M&I.

9:30 Final general session.
“The Challenge of Change”—Richard P. Klug,
WBA chmn.
“Accentuate the Positive”—Thomas L. Schiefelbein, WBA chmn.-elect.
“ The Future of Banking R egulation”—
William M. Isaac.
“U.S. and the International Economy”—Dr. ^
Herbert V. Prochnow.

Wisconsin News


LaSalle National Bank: Jo h n
Lynch, W ayne Bism ark, B arbara
W inter, Joel W arland, Del Rogers,
Peter McGuire.
Minneapolis/St. Paul
American National Bank: Janies
A. Russell and R obert W. Jacobson,
vice presidents.
First Bank, N.A.: A1 H ighum and
D arryl Nelson, vice presidents.
Marquette Bank: Bill A ddington
and Ralph Nelson, vice presidents.
NISI: Scott R. Bendix, regional
sales m anager.
Norwest Bank Minnesota, N.A.:
L. Rasm ussen, vice presi­
PARTICIPATING in the 1988 First Wisconsin Correspondent Seminar were, from left: Don
W. Theis, W illiam L.
Kramp, 1st v.p.; Richard Hölscher, exec, v.p.; John Becker, pres, (all with First Wiscon­
M eyer and Micahel E. Bodeen, assis­
sin-Milwaukee), and Jack Hendee, chmn., First Wis. Corp.
ta n t vice presidents.

First Wis. Holds Correspondent Seminar
A ssociate Publisher











IR ST W isconsin recently held
its 22nd A nnual Correspondent
Seminar in five cities throughout
W isconsin and Illinois. The 1988
sem inar included stops in Appleton,
M adison, H udson, M ilwaukee and
Itasca, 111. Don Kram p, first vice
president, F irst W isconsin M ilwau­
kee, said all the m eetings have had
very good attendance.
Richard Holscher, executive vice
p resid en t, M ilw aukee, welcomed
guests to each m eeting and said,
“ The focus of these sem inars is the
practical application of inform ation
to the im provem ent of your bottom
line.” Mr. H olscher told his audience
th a t correspondent banking is a
v ita l p a rt of F irs t W isconsin
business and has always been based
on m utual benefit.
In addition to being in the correspondent business, F irst W isconsin
is also in the acquisition business. In
the recent p a st it has acquired four
banks in Illinois w ith assets of near­
ly $500 million and five banks in the
sta te of M innesota, also w ith nearly
$500 million in assets.
The afternoon sem inar included
presentations from various F irst
W isconsin officers on lender liability
and environm ental laws, m anaging
loan w orkouts, E lan Investm ent
Services, Inc., strategic issues fac­
ing financial in stitu tio n m anage­
m ent and stress m anagem ent. Paul
Olander, president, Paul W. Olander
Federal Reserve Bank of St. Louis

Company, shared his perspective on
the sale of a financial institution. A
cocktail reception and dinner fol­
lowed after each afternoon session.


You Will See Them at the
Wis. Bankers Convention
T he fo llo w in g m e tr o p o lita n
bankers and service and equipm ent
dealers have indicated they will be
attending the annual convention of
the W isconsin Bankers A ssociation
in Milwaukee on Ju n e 13-15:

Bank Equipment and Other Firms
Modern Banking System s, Inc.,
Omaha: Ken Conrad, MBS, W iscon­
sin Rapids.
Northern Trust Company, Chic­
ago: Michael L. Kubocki, vice presi­

Added in Menomonie
Paul Jennings has joined F irst
Bank & Trust, Menomonie, as com­
mercial lending officer. He was
previously vice president of the Onsgard S tate B ank in Spring Grove,
(Turn to page 39, please)

Rill Meyer’s got youcovered.

Meet Bill Meyer,
Norwest's Corre­
spondent Banker
for Wisconsin. When you have correspon­
dent banking needs, he’s a good person to
know. Bill makes it his business to under­
stand the special needs of community _
banks. And he wants to do business with
© 1988 Norwest Banks

you. Talk to Bill about
our complete line of specialized correspon­
dent banking services. When it comes
to correspondent banking, he’s got you



Member FDIC

Norwest Bank Minnesota, N.A.

Northwestern Banker, June, 1988


“The Extra Mile—
A Commitment to Soundness
and Service in Banking”



HE N D BA Annual Convention will be held June
13-14 at the Grand Forks Civic Auditorium. This
year’s theme is “The Extra Mile—A Commitment to
Soundness and Service in Banking.’’
N D BA President John W. Pierson, chairman of
Norwest Bank North Dakota, Bismarck/Mandan, has
been assisted this past year by President-Elect Roger
Berglund, president of Dakota W estern Bank,
Bowman; Vice President/Treasurer Ken Reno, presi­
dent, United Bank of Bismarck, and N D BA Executive
Director Harry Argue.
Featured speakers include C.C. Hope, FDIC direc­
tor; Mark Olson, former ABA president, and Douglas
Kiker of NBC News.
For the first time this year, N D BA is offering con­
vention registrants the chance to participate in a two
mile “fun run” along the Red River. To supplement the
Monday night opening dinner, a two and a half hour
casino cruise on the “Dakota Queen” is being offered
to the first 150 registrants. Entertainment for the
Tuesday night banquet will be the Castle Family, who
present a variety of music, comedy and dancing in
their delightful program.
The complete convention schedule follows:


Banker, June, 1988
Federal Reserve Bank of St. Louis


1988 Annual
North Dakota Bankers
Association Convention
June 13-14
Grand Forks Auditorium

Exec. Director


Monday, June 13

Two mile fun run.
UND Aerospace Tour
M en’s and Women’s Golf Tournaments.

Registration opens.
President’s Reception. University of North
Dakota Instrumental Group.
7:00 Opening Night Dinner.
9:15 Dakota Queen Riverboat Casino Night Cruise.

Tuesday, June 14
7:30 Prayer breakfast.
9:00 General session. “A View from the FD IC”—
C.C. Hope, FDIC director.
10:30 Address—John R. Powers, dist. admin., Mid­
western District, Comptroller of the Currency,
Kansas City, Mo.
11:00 “North Dakota: Leading the Revolution of the
Future,”—Dr. David C. Webb, chmn., Space
(Turn to page 37, please)







Robert Krane Elected CEO
of Central Bancorporation
D onald D. Hoffm an, CEO and
chairm an of C entral B ancorpora­
tion, Inc., Denver, has stepped down
as CEO effective Ju n e 1. R obert A.
Krane, previously chief operating of­
ficer and president of the company,
has been elected CEO. Mr. Hoffm an
will continue as chairm an of the cor­
poration and as CEO and chairm an
of C entral B ank of Denver.





This is the first step tow ard Mr.
H offm an’s full retirem ent, which is
planned for Novem ber of this year.
Mr. K rane came to the com pany
from N orw est C orporation in M in­
neapolis in 1986, where he m ost
recently served as vice chairm an and
director. W hile a t Norwest, he also
served as president and director of
N orw est B ank Des Moines, presi­
dent and director of N orw est B ank
Omaha, and president and director
of N orw est Corporation.

United Banks Elects Officers


U nited B anks of Colorado, Inc.
has announced the appointm ent of
Michael J. Fowles to senior vice
p re s id e n t—c re d it a d m in is tra tio n
and Jo h n F. Falkenberg to vice
president and director of planning
for both the com pany and for U nited
B ank of Denver.
Federal Reserve Bank of St. Louis

Mr. Fowles joined the Denver
bank in 1968. He has been a
m anager in operations, personal
banking, m etropolitan banking, cor­
respondent banking, national cor­
porate banking, real e sta te banking,
and m ost recently served as an exec­
utive vice president overseeing ener­
gy and m inerals commercial bank­
ing. He has chaired U nited B ank of
D enver’s loan com m ittee since 1983
and is a director of U nited B ank of
Prior to joining U nited B ank of
Denver in 1981, Mr. Falkenberg was
president of U nited M ortgage Com­
pany. He has m anaged the money
m arket desk a t U nited B ank of
Denver and has been responsible for
asset/liability planning and liquidity
m anagem ent as well as bankwide
strategic planning.
The corporation has also an­
nounced th a t R obert A. M aynard
was elected to its board of directors.
He is president of A spen Skiing
Company, Aspen.

United Bank of Denver
Promotes Five
A t U nited B ank of D enver,
Richard A. Havey, Lenore A. M ar­
tinez and Nell P. Stallings were
nam ed a ssista n t vice presidents,
K aren M. B ergert was prom oted to
asset m anagem ent officer and Lydia
O. Sletvold was nam ed international
banking officer.
Mr. H avey and Ms. M artinez
both work in asset m anagem ent ser­
vices, and joined the bank in 1985
and 1987, respectively. Ms. Stall­
ings m anages corporate accounting
in corporate operations and joined
the bank in 1981.
Ms. B ergert is a system s support
specialist in asset m anagem ent ser­
vices. Ms. Sletvold works in in tern a­
tional banking.

United Banks Approves
Shareholder Rights Plan

U nited B anks of Colorado, Inc.
has announced th a t its board of
Promoted in Englewood
directors approved a Shareholder
F irst In te rsta te B ank of E ngle­ R ights Plan designed to ensure th a t
wood, N.A., has appointed Karen all of its shareholders receive fair
Lind vice president. Ms. Lind has and equal tre a tm e n t in the event of
been associated w ith F irst In te r­ any proposal to acquire control of
sta te B ank of Englewood since the company.
N. Berne H art, chairm an and
CEO, said, “ This action by our
board increases its ability to effec­
Norwest Names V.P.
tively represent the in terests of all
N orw est B ank M innesota has pro­
shareholders in the event of an un­
m oted M ichael W. K rutsch to vice
solicited takeover a tte m p t.’’ He add­
president and m anager of its Denver
ed th a t the action was not in re­
office. He was vice president of the
sponse to any specific effort to gain
consum er products division of cor­
control of the com pany and th a t he
porate banking for N orw est B ank
was not aware of any such attem p t.
M innesota, based in St. Paul.
Mr. K ru tsc h ’s prim ary respon­
sibility v/ill be to expand N orw est’s
Convention Update
corporate banking business beyond
A t the tim e this issue was
the energy and agriculture m arkets
going to press, the Colorado
th a t N orw est has served in Colorado
Bankers A ssocation was hold­
since 1982.
ing its A nnual Convention a t
Mr. K rutsch is a form er Colorado
the Broadm oor H otel in Col­
resident. He spent four years w ith
orado Springs.
the H eritage B ank in Beloit, Wis.
Dave Scruby, chairm an and
before joining N orw est in 1982.
CEO of E vergreen N ational
Bank, Evergreen, was sche­
Added in Estes Park
duled to advance as president
of the association, succeeding
M ark L. H oldt has joined F irst
Jo n Coates, chairm an, Century
N ational B ank of E stes P ark as vice
Bank of Denver.
president. He was previously cor­
The complete convention re­
porate banking officer a t N ational
port w ith photos will appear in
Bank of Commerce in Lincoln, Neb.,
the Ju ly issue of T he N orth ­
where he spent the last six years.
west ern B a n k e r .
His prim ary responsibilities a t F irst
N ational will be in lending.
Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

B u ild s tro n g c u s to m e r r e la tio n s h ip s — a n d lay th e
g ro u n d w o rk fo r p ro fita b le b a n k in g — w ith c r e d it se rv ic e s
fro m F irs t W isc o n sin .
U se o u r fu ll ra n g e o f fin a n c in g to o ls to o ffe r y o u r
c u s to m e rs m a x im u m flexibility. W h e th e r th e ir c r e d it n e e d s
a re sim p le o r c o m p le x , w e ’ll h e lp y o u s tr u c tu re c o m p e titiv e
lo a n p a c k a g e s .
Y ou'll w o rk closely w ith e x p e rie n c e d o fficers
w h o h av e th e k n o w led g e a n d a u th o rity
to resp o n d quickly to y o u r needs.
A n d as th e le a d b a n k , y o u re ta in
th e relatio n sh ip w ith y o u r custom er.
D ra w o n th e c r e d it se rv ic e s
d e s ig n e d to h e lp y o u b u ild p ro fits.
C all F irs t W isc o n sin to d a y a t
( 414 ) 765 - 4 4 5 9 .


OFWC 1986
Federal Reserve Bank of St. Louis

YOM ING bankers will be “ W orking T ogether”
when they m eet for their annual convention on
June 12-14 a t Jackson Lake Lodge in M oran. Presiding
over the m eeting will be W BA P resident W illiam H.
Ruegam er, p resid en t of F irs t In te rs ta te Bank,
Sheridan. H e is slated to be succeeded in th a t office by
A uburn W. Dowdy, chairm an, W yom ing N ational
Bank, Cheyenne. Executive D irector of the association
is G retchen Tea.
Keynote address will be given by W yom ing Gover­
nor Mike Sullivan. U niversity of Colorado m arketing
professor Phillip W hite will speak, along w ith ABA
President-E lect Thom as P. Rideout and H enry Czerwinski of the K ansas City Fed.
The usual fine recreational activities will be offered.
M onday there will be a ladies’ cham pagne picnic
cruise. On Tuesday attendees m ay enjoy golf tourneys,
a tennis clinic, fishing derby and scenic float trip. Tues­
day evening will be “ W estern N ig h t,” featuring a
“grown-in-W yoming” dinner and entertainm ent by the
Saw Mill Creek Band.
The com plete program follows:

“Working Together”


80th Annual
Wyoming Bankers
Association Convention


June 12-14
Jackson Lake Lodge, Moran

Sunday, June 12
1:00 R egistration opens.
E vening open for private parties.

Monday, June 13
7:30 R egistration opens.
P resid en t’s breakfast.
8:30 B usiness session, opening ceremonies.
9:00 K ey n o te a d d re s s —W yo. G overnor M ike
9:30 “ Three Steps to Im prove R etail P ro fits” —
Phillip W hite, Ph.D., assoc, prof, of m ktg., U.
U. of Colo., Boulder.
10:30 “ C entral Filing: A natom y of a M urder” —
K athy K arpan, Secy, of S tate.
11:00 A nnual m em bership m eeting.
12:15 Jo in t luncheon—“ A Funny Thing H appens on
the W ay to the B ank—Jo h n H arlin, pres.,
Bank of Gainesville, Mo.
1:45 Info on W B A ’s new group m edical insurance
program .
2:00 “ The F u tu re of C om m unity B an k in g ” —
Thom as Rideout, ABA pres.-elect.
2:30 “ The W yom ing Econom y—Building for the
F u tu re ” —H enry Czerwinski, 1st v.p., Fed.
Res. of K ansas City.
3:00 “ Lender Liability U p d ate” —W illiam Thom son
and Perry Dray, counsel for W BA.
3:20 R egulators’ Panel.
4:20 A djournm ent.
6:30 P resident’s Reception.
7:30 P resident’s B anquet.
9:30 D ancing to The Sawmill Creek Band.
Tuesday, June 14
6:30 Celebrate W yom ing Cocktail Reception.

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis


First Vice Pres.



You Will See Them at the
Wyoming Bankers Convention
T h e fo llo w in g m e tr o p o lita n
bankers and service and equipm ent
dealers have indicated they will be
atten d in g the annual convention of
the W yom ing B ankers A ssociation
in M oran on Ju n e 12-14:
Colorado National Bank: Scott
Minneapolis/St. Paul
Norwest Bank Minnesota: Charles
A. Sell, Jr., commercial bank rep.
N orw est T echnical Services:
W illiam H. Brewer, regional sales
m anager.
Bank Equipment and Other Firms
Kansas Bankers Surety Co., Top­
eka: Don Towle, president.
Modern Banking System s, Inc.,
Omaha: G ary Moore, MBS, Chey­
enne; Bill Pierce, MBS, Omaha.

Affiliated Reports Earnings
A ffiliated B ank C orporation has
r e p o r te d i t s fin a n c ia l r e s u lts
through M arch 31, 1988. R. W.
Miracle, president and CEO, said,
“ For the first qu arter of 1988, Af­
filiated is reporting net income of
$606,000, or 51 cents per share, com­
pared w ith $534,000, or 45 cents per
share, earned in the first qu arter of
The com pany has been profitable
for three consecutive quarters. Its
loans of $204.4 million have decreas­
ed $22.1 million from one year ago.
N on-perform ing loans decreased
from $23.4 million to $13.7 million.
Net loan chargeoffs are down from
$5.4 million to $488,000 and the pro­
vision for loan losses is down from
$413,000 to $270,000 com pared to
the same period last year.
Mr. M iracle said, “ Overall we feel
confident th a t 1988 will see a m ajor
turnaround for Affiliated, and we ex­
pect it to be a profitable y ear.”

Appointed in Casper
W yom ing N ational B ank Casper
h a s a n n o u n c e d s e v e r a l s ta f f
Joe M. Sprecher has joined the
bank as vice president and m anager
of the real estate m ortgage dep art­
David W. Perino and M ark S.
Ramsdell have been prom oted to
vice presidents and commercial loan
officers. Mr. Perino joined the bank
Federal Reserve Bank of St. Louis

in 1986 and is responsible for com­
mercial and small business lending.
Mr. Ram sdell joined the bank in
1985 and has had m uch commercial
lending experience.
W ayne Fowler has joined W yom­
ing N ational as a ssista n t vice presi­
dent and commercial loan officer. He
previously served as a private con­
su ltan t to real estate investors in
Norm an, Okla.
Dory G raf has been prom oted
from a ssista n t tru s t officer to tru s t
officer. Diane K. Legerski was ap­
pointed personal banking officer at
W yoming N ational B ank Casper
E ast. B oth women joined the bank
in 19(80.

(Continued from page 32)
Studies, U. of N. Dak.
A erospace Center, G rand
11:30 N D B A A nnual B usiness
M eeting.
12:30 Jo in t luncheon. Golf awards.
“ Life and H ealth are Look­
ing U p!” —Dr. R obert Samp,
U. of Wis. Medical Center,
Madison, Wis.
2:00 A d d r e s s —M a r k O ls o n ,
1 9 8 6 -8 7
p res.
3:00 “ W ashington: A View of the
F u t u r e T h is E l e c t i o n
Y e a r ” —D o u g la s K ik e r,
NBC News national affairs
6:30 Reception. M usic by The
Valley Chordsm an Q uartet,
G rand Forks.
7:45 Convention B anquet. E n te r­
ta in m e n t by th e C astle

You Will See Them at the
NDBA Annual Convention
T h e fo llo w in g m e tr o p o lita n
bankers have indicated they will be
attending the annual convention of
the N orth D akota Bankers A ssocia­
tion in G rand Forks on Ju n e 13-14:
N o rw est Bank: L. K e n n e th
Erickson, vice president.
Norwest Bank: John Holm, vice
Minneapolis/St. Paul
American National Bank: Jam es

A. Russell, vice president; Gregory
A. Larson, correspondent banking
First Bank, N.A.: Ken Wales,
senior vice president/advisor; Ken
Bezdicek, Mike M cArdell and Jack
Quitmeyer, vice presidents.
Marquette Bank: M ark Schabert,
Jack Campion and M innie Schroed e r, v ice p r e s id e n ts ; R ic h a rd
Holmes, a ssista n t vice president.
NISI: Tim othy R. Skildum, senior
vice president; Jam es R. Holker,
vice president; D avid B. B utterw ick,
a ssista n t vice president.
Norwest Bank Minnesota, N.A.:
Robert L. Rasm ussen, vice presi­
N orw est T echnical Services:
W illiam H. Brewer, regional sales

Added in Fargo
F irst B ank Fargo has announced
th a t M arshall M acK ay has joined
the m anagem ent team a t the bank
as vice president and product group
m anager.
Mr. M ackay previously served as
vice president and loan and ad­
m inistrative services m anager for
FB S Services—Regional Communi­
ty Banking in M inneapolis.
Rich Schirber will m anage loan
and adm inistrative services in addi­
tion to his current responsibilities as
vice president and transaction pro­
cessing m anager.

Two Named in Valley City
A t F irst N ational B ank of Valley
City, D eborah Koepplin has been
named vice president and ag loan
m anager, and K irby Josephson has
been nam ed a ssista n t vice president
and m arketing officer.
Ms. Koepplin joined the bank in
1977. In 1981 she was nam ed assis­
ta n t vice president and m arketing
officer, and has been an ag loan of­
ficer for the last 11 years.
Mr. Josephson spent the p a st
year as a field representative for the
B ank of N orth D akota. Prior to th a t
he was the Barnes County extension
agent for three years.

Elected in Cut Bank
Delwin Gage has been elected a
director of F irst N ational Bank, Cut
Bank, a newly created position. Mr.
Gage has been a sta te senator for
three sessions and has been an ac­
countant for m ost of his career.
Northwestern Banker, June, 1988


“Working Together”

Vice President


Exec. Vice Pres.

84th Annual
Montana Bankers
Association Convention
June 21-24
Outlaw Inn, Kalispell

ONTANA bankers will gath er for their 85 th A n­
nual Convention on June 21-24 a t the O utlaw Inn
in Kalispell. Presiding over the gathering will be M BA
President Jam es B ennett, president of F irst Citizens
B ank Billings. He has been assisted this year by Vice
President Lynn Grobel, president of 1st N ational B ank
of Glasco; T reasurer E d Jasm ine, president of N orw est
Bank Helena, and Executive Vice P resident Jo h n T.
Theme for this y e a r’s convention is “ W orking
T ogether.’’ Keynote speaker will be Dr. A rth u r B. Laffler, mem ber of the Economic Policy A dvisory Board
to the President, m em ber of the Policy Com m ittee and
the board of directors of the A m erican Council for
C apital Form ation, editor of the M arcel Dekker, Inc.
series on Economics, Finance and Business, and a con­
trib u tin g editor to Conservative D igest.
The complete program follows:
Tuesday, June 21
12:00 Executive Com m ittee M eeting.
2:00 M BA and M BA Services Board M eeting.
4:00 B ankPac T rustee M eeting.

Banker, June, 1988
Federal Reserve Bank of St. Louis

Wednesday, June 22


M en’s 18-hole golf scramble.
W om en’s 9-hole golf scramble.
M ixed doubles tennis tournam ent.
Golfers luncheon buffet.
“ O ut of A frica’’ B uffet Reception.

Thursday, June 23
7:30 L ight breakfast.
8:00 O peration P atriotism , M ontana A ir N ational
Guard, G reat Falls.
8:30 “ The Challenge of Q uality Service’’—Dr.
Jam es H. Donnelly, Jr., U. of Ky., Lexington.
9:30 F u tu re Issues R eport—Thom as Rideout, A BA
pres.-elect, vice chmn., F irst Union Bank,
Charlotte, N.C.
10:30 “ The New Age of B anking’’—K ent Stickler,
pres., Financial Shares, South C learw ater
Beach, Fla.
11:30 “ W ho’s W riting Our Law s?’’—George Ben­
n ett, M BA Counsel, Helena.




Montana News

12:00 Pacific C oast B anking Schools 50th.
12:10 A nnual M em bership M eeting.
1:30 Special in terest sessions:
“ How to Become a Sales B ank” —K ent
“ Inv estm en t S trateg ies—Increasing or De­
creasing R isk” —Charles D. W hite, s.v.p.,
N orw est Corp., M inneapolis.
5:30 B uffet Reception.


Friday, June 24
7:30 25 Year Club No-Host B reakfast. “ The Cul­

You Will See Them at the
Montana Bankers Convention









T h e fo llo w in g m e tr o p o lita n
bankers and service and equipm ent
dealers have indicated they will be
attending the annual convention of
the M ontana B ankers A ssociation
in Kalispell on Ju n e 21-24:
Bism arck
N o rw e s t B a n k : L. K e n n e th
Erickson, vice president.
M inneapolis/St. Paul
Am erican N ational Bank: Jam es
A. Russell and Richard E. Pringle,
vice presidents; Donald R. Lindem an, a s s is ta n t vice p resid e n t;
R obert L. Rosenberg, investm ent
F irst Bank, N.A.: Ken Wales,
senior vice president/advisor; Ken
Bezdicek, A1 Highum , D.D. Lee,
D arryl Nelson and Dolores Walstrom , vice presidents.
M arquette Bank: M ark Schabert
and Jam es Kam m erer, vice presi­
dents; Richard Holmes, a ssista n t
vice president.
N ISI: Tim othy R. Skildum, senior
vice president; Thom as E. Gormley,
assista n t vice president.
N orw est B ank M innesota, N.A.:
John P. Sam pson, senior vice presi­
dent; Larry M. Lange, a ssista n t vice
N o rw e st T e c h n ic a l S erv ices:
William H. Brewer, regional sales
m anager.
B ank E quipm ent and O ther Firm s
M odern B anking System s, Inc.,
Omaha: G ary Moore, MBS, Chey­

Promoted in Billings

K eith Loran has been prom oted to
a ssista n t vice president—industrial
and indirect lending a t F irst Inter^ sta te B ank of Billings. He sta rte d
with the bank in 1984 as an in dustri­
Federal Reserve Bank of St. Louis


tu ral Dim ension of A nti-C orporate Sentim ent
in M ontana” —Michael Malone, dean of grad,
studies, M ont. St. U., Bozeman.
8:30 U.S. Economic Outlook and Recap—Dr. A r­
th u r B. Laffler.
9:30 “ Financing Economic D evelopm ent” —Derek
H ansen, H ansen M cQuat & Assoc., Lom ita,
11:00 “ You and A m erica—Two G reat Cham pions” —
Michael Broome, Tom orrow’s Am erica E n te r­
prises, Charlotte, N.C.
12:00 A djournm ent.

W BA B anclnsure Agency, W BA
subsidiaries. Ms. Kindschi is also
m anager of the E ducation Products
Division. Ms. N ettesheim is legal
counsel. Mr. Gaul is president of
W BA Financial In stitu tio n s Pro­
ducts Company, also a subsidiary.
According to Mr. Koontz, the new
Appointed by Record Data
organizational stru ctu re was de­
Record D ata, a subsidiary of signed to allow W BA to more effi­
TRW Inc., has announced the ap­ ciently serve the long-term needs of
pointm ent of P atricia M. M cKean to its m em bership in the rapidly chang­
staff appraiser a t its W isconsin ing financial world.
Statew ide Service Center in W est
Allis. She has been w ith Record Valley Banks Announce
D ata since October of 1987.

al loan representative and was in­
dustrial loan officer prior to his pro­
motion. He had been office m anager
for N orwest Financial Services in
both M issoula and Billings prior to
joining F irst In te rsta te .

Staff Changes

Valley B anks have announced
staff changes:
E. Gradel has been pro­
(Continued from page 31)
m oted to real estate officer a t Valley
F irst N ational Bank of Beaver Dam.
She has been w ith Valley for five
WBA Reorganizes,
years, m ost recently as a ssista n t
Names Officers
real estate loan officer a t the Beaver
B ryan K. Koontz has been nam ed Dam bank.
president and chief executive officer '
Sharon S. H orning has been ap­
of the W isconsin B ankers A ssocia­ pointed operations officer a t Valley
tion, in a recent reorganization of System s, Inc.’s M adison A rea D ata
the association. He had been ex­ Center in Sun Prairie. She has
ecutive director.
previously been employed by F irst
W isconsin, M adison, the B ank of
M iddleton, and Com m unity Banks,
Inc. in M adison.

Promoted in New Richmond



Susan K. Linck was nam ed ex­
ecutive vice president and m anager
of the mem ber services division. A r­
nold Berg, Kim Kindschi, Richard
Gaul and Susanne N ettesheim were
nam ed senior vice presidents.
Mr. Berg is also president of
Employee Benefits Corporation and

According to Richard J. Schurtz,
the B ank of New Richmond has an­
nounced the ap­
p o i n t m e n t of
Janice M. Ferns tr o m to th e
p o s itio n
c a s h ie r.
M s.
Fem strom joined
the bank in 1973
as a bookkeeper
and m ost recent­
ly served as in­ J.M. FERNSTROM
ternal auditor.
Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis



Mr. Bergm eyer said he will pursue
two im portant goals for the NBA in
the coming year. F irst will be
legislation to allow banks to rem ain
the prim ary providers of financial
services to the general public. H is
second effort will be to appoint im ­
m ediately a Task Force of approx­
im ately a half-dozen bankers to
stu d y the Federal Savings & Loan
Insurance Corporation situation and
make recom m endations for resolu­
tion of F S L IC ’s heavy problem. Mr.
Bergm eyer said he would then pre­
sent the Task Force findings and
NBA E xecutive Council recom men­
LEADERSHIP for the Nebraska Bankers Assn, for 1988-89 is pictured here, left to right: Im- dations to N e b ra sk a ’s C ongres­
med. Past Pres.—Donald E. Blaha, pres. & ceo, 1st Natl., Ord; Pres.—Harley D. Bergmeyer, sional delegation.
pres., Saline State, Wilber; Pres.-Elect—James F. Nissen, chmn. & ceo, Vistar Bank, Lin­
President’s Report
coln, and Exec. V.P.—Stan Matzke, Jr., Lincoln.
In his P resid en t’s R eport to the
m em bership, Mr. Blaha said he had
traveled 120,000 miles by plane and
car during 200 days on behalf of
NBA work in the p a s t two years. He
cited the creation of the federal
Secondary M arket for long-term ag
joining Saline S tate B ank in 1976, real e sta te loans as an accom plish­
he had served as president of m ent th a t was achieved through the
T T H E IR 91st annual conven­ Citizens S ta te B ank in D orchester unity of bankers. He especially paid
tion a t the Red Lion Inn in for one year and as vice president of trib u te to four N ebraska bankers
Om aha last m onth, m em bers of the the Farm ers S ta te B ank of Clatonia, who had a strong hand in th a t
N e b ra sk a B a n k e rs A s s o c ia tio n where he also m anaged the b a n k ’s a c c o m p lis h m e n t —M el A d a m s ,
president, A dam s Banks, Ogallala,
elected H arley D. Bergm eyer as insurance agency.
Mr. Nissen joined N ational B ank and Kelly H olthus, president, F irst
their president for 1988-89. Mr.
Bergmeyer, 46, succeeds Donald E. of Commerce in Lincoln following N ational Bank, York, both of whom
Blaha, president, F irst N ational his graduation from the U niversity are p a st presidents of NBA, and
B ank of Ord. Mr. B ergm eyer is of N ebraska, w orking there 28 years Tom Olson, president, Lisco S tate
president and chief executive officer and serving as president from Bank, and H.L. B ud G erhart, presi­
1977-82. W hen he left NBC he dent, F irst N ational Bank, Newman
of Saline S ta te B ank in Wilber.
NBA delegates also nam ed Jam es became president of G atew ay Bank, Grove, both p a st presidents of the
F. Nissen, chairm an and chief execu­ Citizens S tate B ank and Lincoln Independent Bankers A ssociation of
tive officer of V istar B ank in Lin­ B ank E ast, all of Lincoln, which America. All four served on the
coln, as president-elect for the com­ merged in 1986 to become V istar Jo in t Task Force of ABA and IB A A
formed two years ago by ABA,
ing year.
which invited IB A A to m ake it a
Task Force Being Appointed
Mr. B ergm eyer has been a NebIn his brief acceptance address, jo int effort.
raska banker for 20 years. Prior to

* Harley Bergmeyer is Elected Nebraska
Bankers Assn. President for 1988-89






LEFT—NBA member insurance services are served by these professionals, left to right: Bill Osterberg, pres., Jones & Osterberg Co.,
Omaha; Dave Abendroth, sr. v.p., Kansas Bankers Surety, Topeka; Cathy Kohmetscher, adm. asst., Nebraska Bankers Insurance Services
Co. (NBISCO); Steve McKelvey, exec. mgr. NBISCO, Lincoln, and Don Towle, pres., Kansas Bankers Surety, Topeka. RIGHT—The NBA
staff did a super job on pre-convention planning, as well as handling a myriad of details smoothly and professionally during the conven­
tion. Those present for this picture are, from left: Karen Miller (dir. of educ.), Karen Yelden, Tammy Glunz, Cathy Kohmetscher, Carrie
Bordenaro, Ron Arrigo (conf. dir.), Kelle Lambert, Susan Kruger, Claudia Russell (office mgr.) and Nancy Mattison. Not present for photo
were Mary White, busy with her duties as dir. of communic., Genl. Counsel Bill Brandt and Exec. V.P. Stan Matzke.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


Nebraska News

Mr. Blaha also paid special trib ­
ute to Kelly H olthus, since Kelly
was selected recently as president­
elect designee for the ABA a t the
election to be held in Honolulu this
next October. He also paid high trib ­
ute to NBA General Counsel and
lobbyist Bill B randt for his lead­
ership in th e sta te legislative arena.
The effort to enact m andatory
m ediation was defeated in favor of
v o lu n ta ry m ediation, w ith M r.

B ra n d t’s able leadership. In addi­
tion, a 9 percent usury proposal was
bottled up in com m ittee. A nother
bill defeated was one th a t “ would
have pooled our m unicipal bond
business under N IF A ,’’ said Mr.
Blaha. He added, “ I t would take on­
ly a m inor am endm ent to tu rn N IF A
into a state-run bank, which we
don’t w ant or need.”
In te rsta te banking was finally
authorized in N ebraska this year.

“Now th a t th a t divisive stru ctu re
issue is behind u s ,” he said, “ we can
look forw ard to once again being
united in our sta te legislative ef­
Mr. Blaha pointed out th a t “ Our
educational program saw over 5,000
bankers take p a rt in 21 NBAsponsored conferences.” O ther ef­
fo rts in clu d ed in v o lv e m e n t in
economic developm ent, conferences
on public sector financing, the Len-

SHOWN at 1st Natl, of Omaha reception in these two photos, from left to right, are: Phoebe and Art Fritson, pres., State Bank of Hildreth;
Bill Henry, exec, v.p., 1 st of Omaha; Hermine and Chuck Leff 1er, chmn. & ceo, Security Natl., Sidney; Frank Tolstedt, pres., Guardian State
B&T, Alliance; Roger Weiss, pres., Commercial Nail., Ainsworth, and Janice; Gerry Tomka, v.p., 1st of Omaha, and Dick Stull, pres.,
Bridgeport State.

ENJOYING breakfast on the Terrace at 1st Natl, of Omaha adjoining the convention hotel were, from left: Cynthia Milligan, Nebr. dir. of
bkg., Lincoln; Bud Gerhart, pres., 1st Natl., Newman Grove; A.C. Skip Hove, chmn., Minden Exchange B&T, Minden, and Elian, with hosts w
Gretchen and Phil Giltner, vice chmn., 1st of Omaha. RIGHT—Martha and Tom Rideout, pres.-elect of the ABA and vice chairman, First
Union National Corp., Charlotte, N.C., were greeted by Virginia and Kelly Holthus, recently named ABA pres.-elect designee, and NBA
Pres. Don Blaha.


LEFT—Richard Rasdall, Jr., sr. v.p., Federal Reserve Bank, Kansas City, with Betty and John Cochran, pres., Norwest Bank Nebraska,
Omaha. RIGHT—Bob Zaback (left), sr. v.p., fin. inst. gp., Norwest Bank Nebraska, Omaha, visits with two associates staffing Norwest £
Technical Services of Minneapolis booth. From left, the others are: Mike McDermott, acct. mgr., and John Reynolds, reg. sales mgr., Mpls.

Banker, June, 1988
Federal Reserve Bank of St. Louis

Nebraska News

President: Harley D. Bergmeyer, presi­
dent, Saline State Bank, Wilber.
Pres.-Elect: James F. Nissen, chairman
and CEO, Vistar Bank, Lincoln.
Immed. Past Pres.: Donald E. Blaha,
president, First National Bank, Ord.
Exec. V.P.: Stan Matzke, Jr., Lincoln.
New Executive Council Members
(Terms expire 1991)
Gp. 1: Rodney P. Vandeberg, president,
First National Bank & Trust Co., Falls Ci­
Gp. 3: Gary R. Condon, president, Pender
State Bank, Pender.
Gp. 4: Don A. Brockmeier, executive vice
president, Farmers State Bank, Eustis.
Gp. 5: Dale E. Pohlmann, president, The
Ravenna Bank, Ravenna.
Gp. 6: Frank L. Tolstedt, president, Guar­
dian State Bank & Trust Co., Alliance
Gp. 7: Dennis A. O’Neal, executive vice
president, First National Bank, Omaha
Gp. 7: Tim Coughlon, president, Norwest
Bank Nebraska/Millard (appointed to fill


a council vacancy).
Gp. 8: Ross E. Hecht, president, Lincoln
State Bank, Lincoln.
Gp. 8: Dale L. Young, executive vice
president, FirsTier Bank, Lincoln.
NETS (two-year terms)
Loren R. Anderson, executive vice presi­
dent, National Bank of Commerce, Lin­
Jim Guretzky, SAC Federal Credit Union.
Tom Cooper, vice president, FirsTier
Bank Omaha.
Mike Krzywicki, vice president, Norwest
Bank Nebraska, Omaha.
Bob Frerichs, vice president and comp­
troller, First National Bank & Trust Co.,
Dana Henricksen, president, Vistar
Bank, Lincoln.
Harold Stuckey, president, Lexington
State Bank & Trust Co., Lexington.
Jack McDermand, president, McDonald
State Bank, North Platte.
Lours Titus, president, First National
Bank, Holdrege.
Ken Brooke, O ccidental/N ebraska
Federal Savings Bank, Omaha.

der Com m itm ent Program , and sup­ the Article? of Incorporation of
p o rt for the G overnor’s Office on a NBA were am ended to allow bank­
public service advertising cam paign ers to succeed them selves for a se­
for N ebraska th a t is now widely ac- cond term on the NBA Executive
In addtion, it was announced th a t
Also during the business session,


the NBA is adding an A gricultural
Lending School to its curriculum
and details of th a t school will be
sent to all banks a t once.
First Session Speakers
John Palmer, news anchorm an on
NBC’s “ T oday” show, was the
leadoff speaker. He reviewed the
Presidential race candidates, giving
his insights into details about the in­
dividuals and their cam paigns.
ABA President-E lect Thomas P.
Rideout, vice chairm an, F irst Union
Corporation, Charlotte, N.C., dis­
cussed “ B anking Reform and the
F u tu re of Com m unity B anking.” He
called upon N ebraska bankers to
support the effort to get a favorable
bill drafted and passed through the
H ouse of R epresentatives, now th a t
the Senate has passed 94-2 a bill
th a t broadens securities powers for
banks. He reviewed a five-point
ABA legislative strategy: 1. Help
Congress to understand banking’s
need to be a com petitive player and
get law s passed to th a t effect. 2. Do
the same a t the sta te level. 3. W ork
in the regulatory arena for their sup­
port for a pro-com petitive tilt to
their policy-making decisions. 4.
Become more pro-active in the

At Natl. Bk. of Commerce during Hospitality Night party are, from left: Lyle Davis, sr. v.p., NBC; Ron Krejci, pres., First State, Hickman, and
Dorothy, Candy and Tom Henning, pres., NBC; Jack Selzer, pres., Scottsbluff Natl.; Mike Jacobson, sr. v.p., NBC, and Bud Gerhart, pres.,
1st Natl., Newman Grove.


LEFT—Charles Thacker, FDIC reg. dir., Kansas City; Cynthia Milligan, Nebr. dir. of bkg.; Meg Seidman and her father, L. William Seidman,
FDIC chmn., Washington, D.C.; Harley Bergmeyer, incoming NBA pres., and Don Blaha, retiring NBA pres. RIGHT—Tom Henning (second
from left), pres., Natl. Bank of Commerce, Lincoln, visits with four officers of United Mo. Bk. of Kansas City, from left: Dick Muir, v.p.; Phil
Straight, exec, v.p.; Lyle Wells, vice chmn., and Alexander Kemper, a.c.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


Nebraska News

courts. This has paid off for “ we are
10 for 10 against the securities in­
d u stry .” 5. C oncentrate on the
media to understand our argum ents
for a free and open m arketplace.
Luncheon speaker Jeanne R obert­
son showed by the evidence of her
delightful, humor-filled presentation
the tru th of her chosen speech title,
“ U sing H um or As s S trateg y for
Success in B anking—or for Success
M arried to a B anker.” H er audience
involvem ent “ beauty c o n te st” w ith
several p a st president bankers ta k ­
ing p a rt was a show-stopper!
Second Session Speakers
FD IC C hairm an L. William Seidman talked about legislation, a
potential m erger of the FD IC and
FSLIC funds, and a new FD IC
stu d y designed to im prove the in­
surance situation in the 1990s.
He supports expanded powers
bills being discussed by Congress,
b u t said he feels they have faults in
them by re stric tin g banks u n ­
necessarily. He said he had ju s t
learned th a t day th a t the General
A ccounting Office reported th a t the
FSLIC deficit has doubled from over
$6 billion to $13 billion, which

50-Year Bankers
R.K. (Dick) Armstrong, Sr., chairman ex­
ecutive committee, Minden Exchange
Bank & Trust Co., Minden.
Gerald H. TeKolste, executive vice presi­
dent and cashier, State Bank of Firth.
100-Year Banks
Alliance National Bank and Trust Co.
Seven Valleys State Bank, Callaway
Citizens Bank and Trust Co., St. Paul
First National Bank, Schuyler
Shickley State Bank, Shickley
The Tilden Bank, Tilden
First National Bank, Unadilla
NBA Exec. Council outgoing members:
Glenn M. Adair, Springfield State Bank,
Mel Adams, Adams Bank & Trust Co.,
Alice Dittman, Cornhusker Bank, Lin­
Eldon R. Fox, Plainview National Bank,
Dennis A. O’Neal, First National Bank,
Homer Pierce, Seven Valleys State Bank,
Orrin A. Wilson, FirsTier Bank, Lincoln.
Charles T. Undlin, Norwest Bank
Nebraska, N.A., Omaha.
NBA Committees outgoing chairmen:
Bank Management: Mike Dusenbery,
Pickrell State Bank, Pickrell.

Bank Marketing: Frank L. Bruning, Bruning State Bank, Bruning.
Correspondent Banking: Gary Bieck,
FirsTier Bank Lincoln.
Lending: Phil Burns, Farmers & Mer­
chants National Bank, West Point.
Personal Economics Program (PEP):
Vickie Clements, Lexington State Bank,
Lynn Feuerback, Packers Bank & Trust,
Gary Gannon, FirsTier Bank, Grand
Kathleen Keenan, First National Bank,
North Platte.
Carolyn Sharp, FirsTier Bank, Lincoln.
Associate Membership Award:
Bailey Lewis & Associates, Inc., Lincoln.
Secondary Market Award (in recognition
of outstanding leadership in establish­
ment of Farmer Mac):
C.G. “ Kelly” Holthus, president, First
National Bank, York.
Mel Adams, chairman and president,
Adams Banks, Ogallala.
Thomas H. Olson, president, Lisco State
H.L. “ Bud” Gerhart, Jr., president, First
National Bank, Newman Grove.
Networks outgoing directors:
Ed O’Boyle, Five Points Bank, Grand
Bob Wentz, First State Bank, Scottsbluff.

LEFT—Dee Leonard, disaster recovery spec., and Tom Shambo, pres., Founders Financial Service, Inc., Lincoln. RIGHT—Hosts at
NBC/Computer Services Corp. booth were Ginny Davis, tech, support spec., and Rich Gilbert, a.v.p./mktg.

LEFT—Warren Johnson (second from right), vice chmn., Stromsburg Bank, has Brandt’s newest electronic money counting machine
demonstrated by Brandt of Omaha staff personnel, from left: Mark Grimes, sales mgr.; Rod Sheffield, sales rep./Nebr., and Scott Grimes,
sales rep. RIGHT—Representing 1st Natl, of Omaha at First Integrated Systems exhibit were: Mike Dooley, natl. mktg. dir.; Janette
Fiedler, mktg. rep.; John Furrow, 2nd v.p., and Mike Foutch, mktg. rep.

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Nebraska News

creates a problem not only for sav­
ings and loans, b u t for banks as well.
“We have close to 500 insolvent in­
stitu tio n s (s&ls) com peting in the
m arketplace,” Mr. Seidm an said,
“ and th is is a problem any of us in
an insured depository in stitu tio n
should be concerned with. I ’ve heard
D anny W all (chairm an FH LBB) say
it would require a rescue of $17 to
$23 billion, while others have said it
would require double th a t figure of
$23 billion. I t is difficult to assess
w hat the value of the real e sta te
they hold will tu rn out to be.”

Mr. Seidm an said “ F D IC ’s reali­
zation on real e sta te is running
about 50 percent of book.” H e said
“the to ta l assets of the southw est
area s&ls exceeds $100 billion and
th a t creates a serious problem for
banks, and i t ’s g e ttin g worse, not
b e tte r.”
Final speaker Peter Johnson,
stra te g ist w ith Johnson & Com­
pany, was a one-hour w orkshop on
m anagem ent strategies for m eeting
com petition.
N ebraska’s five m ajor correspon­
dent banks were hosts for the now


traditional Correspondent B an k s’
H ospitality N ight to conclude the
opening day of the convention.
H osts were FirsTier B ank of Lincoln
and FirsTier B ank of Omaha, F irst
N ational B ank of Omaha, N orwest
B ank N ebraska, N.A., Omaha, and
N ational B ank of Commerce, Lin­
coln. The Red Lion Inn m ain
ballroom was a beautifully dec­
orated hospitality center, w ith ta ­
bles of hors d ’oeuvres and refresh­
m ents.
The Trade Show, w ith 23 ex­
hibitors, was the scene of a first

At FirsTier Banks reception were, left to right: Joe Radosti, pres., American Natl., Creighton, and Betty; Andrea and Dick Yeshnowski, v.p.,
FirsTier Omaha; Dave Rismiller, recently named pres. & ceo, FirsTier Omaha; Bill Cook, Jr., pres., Beatrice Natl.; John Clements, v.p.,
FirsTier Omaha; Jack Holmquist, pres., York State, and Harold Stuckey, pres., Lexington State B&T.

LEFT—George McFadden, v.p., Sherman County Bank, Loup City; Gary Bieck, v.p., FirsTier Bank Lincoln; Marlys and Bill Voss, v.p., Jen­
nings State, Davenport, and Mark Hahn, v.p., FirsTier Bank Lincoln. RIGHT—Staffing exhibit for FirsTier Data Services were Rich Nelson,
v.p.; Tom Novotny, reg. sales mgr., and Tom Ryan, mgr. client serv.

LEFT—Richard Barnes (second from right), exec, v.p., Bank of Clarks, is welcomed at Evergreen Systems exhibit by, from left: Dave Stochl,

m dir. of sales; Ralph Noren, pres., and Kathleen Downs, mktg. rep., all of Omaha. RIGHT—Ben Cohen, Omaha, and Larry Tweed, central
® states managing partner, Des Moines, greeted guests at the Investment Centers of North Dakota booth.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


Nebraska News

More Pictures
from the
Luncheon speaker Jeanne Robertson is pictured with NBA Pres.
Don Blaha (left) and NBA Exec. V.P. Stan Matzke.

LEFT—Bryan Cox, acct. exec, with Financial Information Trust, Des Moines, presents check for $1,000 scholarship to Denise Hungeker
(second from left), with the assistance of Nebr. Gov. Kay Orr, and Denise’s husband, far right. RIGHT—At Modern Banking Systems of
Omaha booth is E.L. Burch, pres., E.L. Burch & Associates, Kansas City, with Bill Pierce, natl. sales mgr., and Kevin McCormick, Nebr.
sales repr., both with MBS, reviewing a programming operation.

night reception prior to the Corres­
pondent B an k s’ H ospitality party.
In addition, reg istra n ts gathered in
the Trade Show area for a continen­
tal breakfast and several session
b rea k s. E x h ib ito rs c o n trib u te d
num erous prizes th a t were pre­
sented S aturday m orning to lucky
Offical convention entertainm ent
was highlighted by the hilarious
Sm others B rothers Show a t the
nearby Orpheum Theatre, and the
P resid en t’s Inau g u ral R eception
and dance following it back a t the
Red Lion Inn.
The business sessions were well
attended and the banker/spouse din­
ners and stage show a ttra c te d a
crowd of more th an 900 persons,
representing a sizable increase in
registration over last year.
The 1989 92nd annual convention
is scheduled for M ay 18-20 a t The
Cornhusker in Lincoln.

Kearney Banker Dies
B etty L. Walline, 60, a ssista n t
vice president a t P latte Valley S tate

Banker, June, 1988
Federal Reserve Bank of St. Louis

B ank and T ru st Co., died April 30.
She was employed a t the bank for 27
years. M rs. W alline was active in the
N a tio n a l A s s o c ia tio n of B ank
W omen and num erous civic organi­
M emorials have been established
to the Kearney Catholic H igh School
Foundation or the Am erican H eart

Madison Bank Acquired
F a r m e r s N a tio n a l B a n k of
M adison has been acquired by a
group of investors including J. Paul
M cIntosh, H erbert D. Feidler, John
Long, W alter M ajstrik, Gaylord
Wilcox, C hristopher L. M ajstrik,
and G erald W. Kratochvil. The
change in ownership was approved
by the C om ptroller’s office on
M arch 30.

KBA/NBA to Offer
Ag Lending School
The 1988 Professional Develop­
m ent Program A gricultural Lending
School will be held A ugust 28-Septem ber 2 a t the R am ada Inn in

Kearney. The school provides de­
tailed coverage of subjects such as
agricultural financial statem ents,
credit analysis, problem loans, and
case study applications. The faculty q
consists of such nationally known
lecturers as Dr. D avid Kohl and Dr.
Mike Boehlje.
A pplications are being accepted
now through Ju ly 29. For more in- £
form ation, contact B renda Schimenti or R oJean Clifton a t the Schools
of Banking, Inc., a t (402) 421-1107.

New Bank Planned
for Grand Island
A group of investors have an­
nounced plans to organize a new na­
tional bank in G rand Island. A ppli­
cation has been filed w ith the K an­
sas City office of the Com ptroller of
the Currency. Investors include
Je rry Jensen of G rand Island, Steve
W right of Superior, D avid M yers o f 1
W eeping W ater, and H arold M yers
and Robert Russell of Phoenix, Ariz.
The bank would be nam ed Security
N atio n al B ank and w ould be
capitalized a t $2.5 million.




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firs! n a lio n a l b a n k
of omaha
one first national center
omaha, nebraska 68102
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988

bank in 1982. Mr. Bechen joined ^
Norwest in 1985 from the Federal ^
Land Bank.
* * *

Omaha fe
John Cochran, president of Norw est B ank N ebraska, N.A., has an­
nounced the fol­
low ing p ro m o ­
t io n s :
D eb ra
K r a ft L u tto n
an d S co tt A.
Schmidt to vice
presidents, Tim­
othy Tewes, Car­
rie L. Tolstedt
and Charles L.
Veys to assiste n t vice presiKRAFT LUTTON
dents, Janice Costanzo to real estate
officer and Steven R. Bechen to com­
mercial real estate officer.
Ms. L utton has been nam ed vice
president/client executive in cor­
porate banking. She began a t the
bank in 1974 and became an opera­
tions officer in 1979. She m anaged
the cash m anagem ent departm ent
from 1981 to 1983 and was pro-


Banker, June, 1988
Federal Reserve Bank of St. Louis


Rolland C. Johnson, chairm an of
Creative Financing, Inc., an Omaha- •
based m ortgage banking firm, has
announced th a t an agreem ent in
principle has been reached for the
sale of the com pany to Investors
Savings B ank of M inneapolis.
U nder the term s of the sale, In ­
vestors will acquire all outstan d in g
stock of Creative, and Creative will
operate as a wholly-owned sub­
sidiary of Investors.
Investors Savings B ank is a $320
million federal savings bank head­
quartered in M innetonka, Minn.
* * *
m oted to a ssista n t vice president in
business banking in 1984 and assis­
N orw est B ank N ebraska’s 24th &
t a n t vice p r e s id e n t c o rp o ra te L S treet office has been the site of a
business banking/client executive in display of model homes created by
the architectural draftin g class of
Mr. Schm idt has also been nam ed B ryan H igh School. The high school •
vice president/client executive in is the b a n k ’s “ Adopt- A-School”
corporate banking. He joined the p artner. S tu d e n ts prepared the
bank in 1983 and was prom oted to models for entry in the Om aha
business banking officer in 1984. He Model Home Show, which was held
was prom oted to a ssista n t vice in M arch.
president/client rep resen tativ e in
* * *
The three new a ssista n t vice
William C. Smith, president of
presidents are also client representa­ FirsTier Financial, Inc., Omaha,
tives in the corporate banking dep- r e c e n t l y
p a rtm e n t. M s. T o ls te d t jo in ed n o u n c e d t h a t
N orw est in 1986 in H astings as a A a ro n Hi l k e special loan adm inistration officer mann has been
and was prom oted to business bank­ appointed to the
ing officer. Mr. Tewes joined the position of vice
bank in 1985 and was prom oted to p r e s id e n t a n d
s p e c ia l lo a n a d m i n i s t r a t i o n director of in­
representative later th a t year and to ternal audit for
officer sta tu s in 1986. Mr. Veys FirsT ier F in an ­
began w ith the bank while in college cial. M r HilkeA HILKEMANN
and became a m anagem ent trainee m ann form erly
in 1975. In 1976 he m anaged teller was a senior m anager for P eat M ar­
operations and was prom oted to wick M ain & Co.
a ssista n t vice president and branch
m anger in 1986. M ost recently he
N orw est B ank N ebraska has
was client representative in the com­
named Sid A. Bostic president of its
mercial real e sta te departm ent.
Ms. Costanzo, who will be a loan O m aha offices.
underw riter in real estate, joined the He form erly was
president of the
S io u x
F a lls
branch of Nor­
w est
B ank
S o u th D ak o ta.
Mr. Bostic will
be re sp o n sib le
for all com m uni­
ty banking ope­
rations in Om a­
ha and statew ide activities of the


Nebraska News

b a n k ’s financial in stitu tio n s and cor­
porate banking units.
Mr. Bostic had been president in
Sioux Falls since 1985. He began his
banking career w ith N orw est in
1964 a t the Brookings office of
N orw est B ank South D akota. He
was m anager of th a t office when he
moved to Sioux Falls in 1980 as
senior vice president and m anager of
the b a n k ’s downtown office.
* * *
Security N ational B ank of Om aha
has filed an application to open a
branch office on the southw est cor­
ner of 78th and Cass Streets in
* * *
The OCC has granted prelim inary
0 approval for the m erger of F irst
Security B ank & T rust, Beatrice,
with F irst N ational B ank of Omaha.
* * *

Bailey Lewis & A ssociates, an
advertising, m arketing, and public
r e la tio n s firm
w ith offices in
L in c o ln
0 Omaha, recently
won six aw ards
a t a re g io n a l
com petition held
in W ichita, Kan.,
0 a c c o r d in g
com pany presi­
dent Jim Lauer-

S ta te ,” is a jo in t venture of the
NBA, the D epartm ent of Economic
Development, the N ebraska Press
Association, and Bailey Lewis &
A ssociates ad agency.
I t is estim ated the series has
received over $300,000 in free
new spaper advertising since the
cam paign was released a few weeks
ago. I t has also earned creative ex­
cellence c ita tio n s in local and
regional advertising com petitions.

Wilber Bank Purchased
Saline S tate B ank of W ilber has
announced a change in ownership.
B ank president H arley D. Bergmeyer has com pleted the purchase
of o u tstanding bank stock from
Alan L. Steinacher and Joe T. and
K athryn Vosoba. Mr. Steinacher
and Mr. Vosoba are vice presidents
of the bank.

Clients whose work was honored
0 are: the N ebraska B ankers A ssocia­
tion for its ‘‘Positive S ta te ” news­
paper campaign; the N ational B ank
of Commerce, Lincoln, for a “ Holes
and B ites” direct mail piece, and the
• Lincoln Foundation for its annual
report. Three citations were given
for s e lf-p ro m o tio n a l a n d new
business solicitation pieces.

• Officer Named in York

North Bend Banker Dies

M itch C arter has been nam ed
credit review officer a t The F irst N a­
tional B ank of York. He sta rte d w ith
the bank last October, after having
® served a t the F irst N ational B ank of
A urora since 1984.

Nebraska Promotion Earns
^A ttention and Praise

E le a n o re M. G ra n g e r, an
employee of P la tte Valley Bank,
N orth Bend, for 41 years, passed
away April 28. She was a t th a t tim e
serving as a director, and had
previously been vice president of the
* * *

A series of new spaper ads pro­
m oting N ebraska, co-sponsored by
the N ebraska B ankers Association,
has proven to be very popular so far.
The campaign, which uses the
them e “ L e t’s G et Into a Positive

The N ational B ank of Commerce
has announced the election of Dr.
Gary Schwendiman and Gale Sup to
its board of directors.
Dr. Schwendiman is dean of the
College of Business A dm inistration

Federal Reserve Bank of St. Louis


of the U niversity of N ebraska—Lin­
coln. Mr. Sup has owned and
operated the H itch in ’ Post and
W ooden Nickel clothing stores for
the p a st 22 years.

ToBuy or Sell

Holding Companies to Merge
Approval has been given to m erge
eight of the ten holding companies
th a t comprise the A bbot Bank
Group. B anks now to be under the
A bbot B ank Group, Inc., instead of
in separate holding companies in­
clude: The G uardian S tate B ank &
T rust Co, Alliance; B ridgeport S tate
Bank; B ank of Chadron; Citizens
S tate Bank, Thedford; The Anchor
Bank, M errim an; G ordon S ta te
Bank; B ank of Mullen, and the Bank
of Valentine.
The B ank of H yannis and the
B ank of H em ingford were excluded
from the m erger because current
banking regulations restrict the
num ber of banks th a t can be includ­
ed in a holding com pany m erger a t a
single time. These two banks are ex­
pected to be m erged into the holding
company later this year.

m an


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(402) 341-1144
In Nebraska Call Toll Free (800) 642-4413

Northwestern Banker, June, 1988

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York to do your overseas banking, think again.
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Our International Banking professionals are
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business in global markets. Bankers Trust is your

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


GROUP OFFICERS elected during the annual meetings are, from left: Group 4 Chmn.—Joseph D. Daly, pres., Farley State; Secy.—Gary
0 Short, pres., Security State, Independence, and Past Chmn.—James Lage, pres., Citizens State, Postville. Elected officers of Group 8 are,
from left: Chmn.—James Matthys, v.p. & cash., Buffalo Savings; Secy.—Jon G. Billhorn, pres., DeWitt B&T Co., and Past Chmn.—J. Robert
Bunn, pres. & t.o., Community State, Clarence.

Five IBA Groups Elect New Officers


A ssociate Publisher
A IR w eather and good partici­
pation m arked the 1988 Iowa
Bankers A ssociation Group M eet­

ings held last m onth. E ig h t groups
m et throughout the state, in D ubu­
que, D avenport, M arshalltow n, Des
Moines, Council Bluffs, F ort Dodge,
• Okoboji and Clear Lake.
B ankers were treated to unsea­
sonably warm w eather during the
m eetings, which m ade for some ex­
cellent golf and sunburned faces.
® D uring each m eeting, reports were
given by group officers and by IBA
staff m em bers. A cocktail reception
was followed by dinner and local
entertainm ent.
® In keeping w ith tradition, the
even num bered IBA groups elected

P ictu res from the
second w eek of
Group M eetin gs
w ill appear in
_______ th e n e x t issu e._______
new officers in the even num bered
year. This year, five groups elected
new officers for two-year term s.
They take office im m ediately follow­
ing the annual IBA convention in
Septem ber.
Group Officers
G ro u p 2: C h a irm a n —P a u l H.
Johnson, president, Iowa S ta te
B ank, A lgona. S e c re ta ry —S co tt
W hyte, executive vice president,
Security S tate Bank, Eagle Grove.
Group 4: C hairm an—Joseph D. D a­
ly, president, Farley S tate Bank.
Secretary—G ary F. Short, presi­
dent, Security S tate Bank, Indepen­
Group 6: C hairm an—Oliver Hagen,
president, F irst In te rsta te B ank of

Iowa, Inc., Des Moines. S ecretary—
Roger J. Hoick, president, KelloggSully B ank & Trust.
Group 8: C hairm an—Jam es A. M at­
thys, vice president and cashier,
Buffalo Savings Bank. S ecretary—
Jo n G. Billhorn, president, D eW itt
Bank & T ru st Co.
Group 12: C hairm an—Jam es L. Cuttell, president, George S tate Bank.
S e c r e ta r y —D a v e E m m e rt, e x ­
ecutive vice president, F irst N a­
tional Bank, Paullina.
President’s Report
In his address, IB A President
Clair Lensing, president, Farm ers
S tate Bank, M arion, said, “ Banking
is on solid ground and the future
looks o p tim istic .” M r. L ensing

REPRESENTING GROUP 7 bankers are, from left: Secy.—Jim Brown, exec, v.p., Hardin County Sav., Eldora; Chmn.—Arnold Schultz, pres.
& chmn., Grundy Natl., Grundy Center, and IBA Pres. Clair Lensing, pres., Farmers State, Marion. Meeting in Des Moines for the Group 6
a Annual Meeting are, from left: Secy.—Roger J. Hoick, pres., Kellogg-Sully B&T; Past Chmn.—James Schipper, pres., American State,
w Osceola, and Chmn.—Oliver Hagen, pres., First Int. of la., Inc., D.M.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


Iowa News

LEFT—Taking part in the Group 8 meeting were, from left: Randy Steig, v.p., & mgr., corr. bkg., First Int., D.M.; Kevin Burns, v.p.,
Maquoketa St., and Michael Hopson, v.p., Austin Associates, D.M. RIGHT—Present at the Group 8 reception were, from left: Michael
Bauer, 1st v.p., Davenport B&T; Kent Stout, a.v.p., American Tr., Lowden; Tom Figge, off. of pres., and John Schricker, 1st v.p., both with
Davenport B&T.

LEFT—Meeting in Marshalltown for the Group 7 meeting were, from left: Tom McDermott, sr. v.p. and mgr., corr. bkg., Natl. Bk. of
Waterloo, and his wife Norine; May and Bill Rickert, sr. v.p., Natl. Bk. of Waterloo, and Donna and David Coulter, exec, v.p., Mt. Auburn Sav.
RIGHT—Visiting during the group meetings were, from left: John Koza, sr. v.p., la. St. Bank, Iowa City; Ben Eilders, sr. v.p., Bankers Trust,
D.M., and Ben Summerwill, chmn., la. St. Bank, Iowa City.

issued a five point challenge to Iowa
bankers concerning the future of
banking in the state: 1) W rite a let­
ter to your legislator; 2) G et in­
volved in the legislative race—sup­
port your candidate; 3) Support
Bank PAC; 4) A fter the Novem ber
election, get to know the newly
elected officials and let them know
w hat you think about banking; 5) be
Mr. Lensing pointed out the pro­
gress the sta te of Iowa is seeing
p re s e n tly w ith com panies like
Kodak, Swift, Principal Group and
Iowa Beef Packers “ investing mil­
lions into the s ta te .” Mr. Lensing
also pointed out th a t unem ploym ent
is down and farm land values are up
“nearly 14 percent in some n o rth ­
eastern counties.”
“ Cooperation is a t the h eart of
Iow a’s turn aro u n d ,” Mr. Lensing
said, “ and I predict the upper M id­
west will continue w ith the best
grow th into the 1990s.” Mr. Lensing
sees this happening because of our
central location, accessibility to
m arkets and our education values
“ which lead the nation.”
As p a rt of its ongoing service to

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Iowa bankers, staff m em bers of the w ith M ORNET, which allows IB M C #
IBA gave individual presentations to s u b m it d o c u m e n ta tio n for
on various services of the associa­ securitizing loans directly w ith
tion, including IB IS, Inc., ITS, Inc., FNM A. Also, IBM C will be adding
M A SI and IBMC. Wes Ehrecke, fee revenue since it has become the
senior vice president, gave an over­ m aster services on real e sta te con-#
view of legislative issues and said, tra c ts owned statew ide by the Iowa
“The m ost recent legislative session Finance A uthority. T hat pool is now
was successful, not so m uch as to $1.7 million. “ We will underw rite all
w hat was passed, b u t w hat was future sales of real e sta te owned con­
stopped from p assin g .”
tra c ts for the IF A and receive a fee,”®
Neil Milner, executive vice presi­ Mr. Calahan stated.
Dale Dooley, president of ITS,
dent, who spoke on federal issues
facing the industry, comm ented, Inc., described two new services—
“ This is the best unified effort th a t I S h a z a m C r e d it A d v a n c e a n d
have seen in my 25 y ears.” Mr. Shazam Bill Payer. Fees w e r ^
M ilner said th a t for the p a st six lowered in April due to increased
years, the effort has sim ply been to volume and im proved expense con­
“p u t out fires,” b u t now a rifle shot trol. Transactions in April were up
has been fired as legislation was 100,000 th a t m onth for a to tal of 2.5_
passed for expanded powers in bank­ m illion tr a n s a c tio n s in A p ril.
ing. Goals of the association were M embers received rebates of $146,
outlined by John Sorensen, vice 000 in April and $186,000 last
president for legislative, education, Septem ber.
Frank Gleeson, president of I B I S ^
products & services and structure.
He declared the m ission of the asso­ reported th a t vision claims formerly
ciation to be th a t of “ m anaging handled by Blue Cross/Blue Shield
now are being handled in-house by
S am C a lla h a n , p r e s id e n t of IB IS. He said IB IS had built a $5
IBMC, reported th a t his member- m illion reserve a g a in s t c la im s ^
owned corporation now is tied in although th a t has been reduced to

"Kirk Gross
Company did
an excellent job
on our

and we
couldn't be
happier with
the final re­
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OUt tO teStore a his

R. Scott Fetner/Presldent
Iowa National Bank Corp &

The Natlonal Bank °f Waterloo

torical landmark — the railroad de­
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plans, interior design and attention
to detail resulted in a bank that our
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Kirk Gross Company has built
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unique ... each with individual re­
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can handle the challenge with full
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with one source of responsibility
Put our expertise in financial
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For more information, call or
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2097, Waterloo, IA 50704. Phone:
(319) 234-6641

Federal Reserve Bank of St. Louis


Iowa News

' _____

LEFT—Taking part in the Group 7 meeting were, from left: Bill Beohm, pres., Tama St. and wife Marilyn, with Ann and John Cunningham,
v.p., Natl. Bk. of Waterloo. RIGHT—Visiting during the Group 6 meeting in Des Moines were, from left: Dale Dooley, pres. & c.e.o., ITS, Inc. •
and his wife Marge, with Barb and Dave Ryan, pres., Panora St.

LEFT—Enjoying the Group 6 reception were, from left: Pete DeRosier, v.p., Valley Natl., D.M. and Maureen, with Bob Walcott, partner,
Robert Thomas Assoc., Chicago. RIGHT—In attendance at the Group 6 meeting were, from left: MikeTrafton, inv. off. and Bill Van Lent, sr.
v.p., both with Norwest Inv. Serv., D.M.; Bob Wims, exec, v.p., la. St. Sav., Knoxville, and Jay Nichols, 2nd v.p., Norwest D.M.

$4.6 million through servicing of
some special claims. “ Five years ago
IB IS had its first h eart tra n sp la n t
claim ,” Mr. Gleeson stated, “ and
I ’m happy to report th a t individual
is alive and doing well. B ut, it costs
the reserves $25,000 a year for his
anti-heart rejection medicine. L ast
fall, a newborn infant required a
liver tra n sp la n t th a t cost $250,000.
These and other increm ental costs in
health care reduced the reserves for
health services from $5 million to
$4.6 million. I t feels good to know
we could m eet these needs. I t shows
the im portance of reserves and the
need to review those reserves con­
stan tly so as to keep them a t an ap­
propriate level.”
Superintendent’s Report
S tate Superintendent of B anking
Ed Tubbs, chairm an, M aquoketa
S tate Bank, called his position “ in­
teresting, challenging and fru s tra t­
ing.” As the chief regulator of sta te
banks, Mr. Tubbs said his division
always tries to be flexible, b u t i t ’s
not always possible. Mr. Tubbs in­
formed his audience th a t capital re­

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

q u ir e m e n ts w ill r e m a in s ti f f
“ because even though things look
good, we as bankers m ust be
Mr. Tubbs said the num bers sug­
gest th a t banks are g e ttin g the bad
loans out of their portfolios. “ The
num bers are good as of m id-A pril,”
he said. B ankers were cautioned by
Mr. Tubbs th a t w ith the increased
com petition from S&Ls and the
Farm C redit System , they would
have to be careful and w atch out for
riskier loans. In conclusion, Mr.
Tubbs encouraged bankers to “ be
nice to the exam iners because they
have been in stru cted to be nice to
Special Entertainment
A t each group m eeting, special
speakers and entertainm ent were
featured. A p p earin g a t various
group m eetings were A llan Thoms,
director, D epartm ent of Economic
Development; Jim W alden, head
football coach, Iowa S ta te U niver­
sity; IB A A President-E lect O. J a y
Tomson, and Jo h n C hrystal, chair­
m an and CEO, B ankers T ru st Co.,
Des Moines.

Elected in Dubuque
W illiam D. M cGeehan, president
of Am erican T ru st and Savings
D ubuque,
re c e n tly
nounced the elec­
tion of H. Bruce
B rubaker to vice
p re sid e n t, con­
sumer loan de­
partm ent. Prior
to joining Am er­
ican T rust, Mr.
B ru b a k e r w as
vice p r e s id e n t
and consum er loan m anager for
F irst N ational Bank of D ecatur, 111.

Appointed in W aterloo


Jam es H. G raham has been ap­
pointed farm m anager a t M etro
R ealty and F arm M anagem ent, a
division of The W aterloo Savings £
Bank. Mr. G raham is a licensed real
estate salesm an and an accredited
real estate appraiser. He previously
operated a farm m anagem ent, realty
and appraisal business in W e s t^

Iowa News


LEFT—Discussing the latest promotional piece for the Iowa Dept, of Economic Development are, left, Neil Milner, exec. v.p. & c.e.o., IBA,
and Alan Thoms, state director. RIGHT—Visiting at one of the many stops along the way were, from left: Jim Jensen, v.p., IBIS, Inc.; D. Neil
'Erusha, asst, cash., Solon State and Frank Gleeson, pres., IBIS, Inc., Des Moines.

#LE F T —Visiting during the Group 7 reception were, from left: A.J. Ziskovsky, pres., State Bank of Toledo; IBA Pres.-Elect Don Snyder, pres.,
Manufacturers B&T, Forest City, and his wife Clare. RIGHT—Also taking part in the Group 7 meeting were, from left: St. Super, of Banking
Ed Tubbs, chmn., Maquoketa State and Grace with Bonnie and Gordon Wold, pres., Poweshiek County Sav., Brooklyn.

LEFT—Enjoying themselves during the Group 4 meeting were, from left: Wayne Bismark, v.p., LaSalle Natl., Chicago; Doug Horstmann,
v.p., Dubuque B&T, and Ken Erickson, v.p., Dubuque B&T. RIGHT—Taking part in the Group 4 reception were, from left: Don Young, v.p.,
Fairfax State Sav.; Rich Bean, sr. v.p., First Natl. Dubuque; Candi Clark, Dubuque, and Bruce Meriwether, pres., First Natl., Dubuque.

LEFT—Attending the Group 4 meeting were, from left: Michael Dunn, pres., F&M Sav., Manchester; Bob Louvar, v.p., Merchants Natl.,
0 Cedar Rapids, and Kevin Slater, a.v.p., Fairfax St. Sav. RIGHT—Visiting at the Group 8 meeting were, from left: Myrtle and Ellis Barber,
chmn., DeWitt B&T, with James Peterson, v.p., Davenport B&T and his wife, Diane.
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988

Federal Reserve Bank of St. Louis

Now the familiar sign of SHAZAM can take your
customers in more directions than one. With our two
newest services, you’ll be able to offer more than
’round-the-clock access to checking and savings
accounts. Much more.

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the added convenience of SHAZAM + Bill Payer, a service
that provides them with greater control over paying bills
electronically. The service also provides funds availability to
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features make SHAZAM + Bill Payer one more service you
can sell to both personal and commercial customers.

Market your own line of credit and enjoy the
benefits of SHAZAM + Advance. This new
service allows you to control your own
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greater flexibility in m aintaining
and obtaining retailer business.
With SHAZAM + Advance,
settlem ent tim e between
your institution, the m er­
chant, and the custom­
er is much faster than
with traditional cred­
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Bringing the expanded services
of SHAZAM to your customers is easy.
ITS, Inc., SHAZAMs provider, has m ar­
keting and training programs in place for
your immediate use. Customers can use their
current banking cards to access the added conve­
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200 Financial Services Building
508 Tenth Street ■Des Moines, Iowa 50309

Federal Reserve Bank of St. Louis


Iowa News

successful year, he said, saw earn -^
ings per share im prove from $3.44 inw
1986 to $3.72 in 1987, while pre-tax
income last year was $7,324,000,
com pared to $4,422,000 a year ear­
Iowa N ational B ankshares is the
parent holding com pany of The N a­
tional B ank of W aterloo, M idway
Bank & T ru st in adjoining Cedar
Falls, and Peoples T ru st & S a v i n g ^
B ank of Indianola.
Mr. F etner told shareholders th a t
the quality of IN B ’s loan portfolio
was excellent, since delinquent loans
BANKERS TRUST CO., Des Moines, recently held a gala reception as part of their sponsor­
ship of the Drake Relays Classic, held in Des Moines last month. Over 600 guests were in­ of 90 days or more still accruing i n ^
terest totaled $144,000, com pared to
vited to the event held at the downtown main office. Pictured with arriving guests is famed
marathon runner Bill Rodgers, past winner of the Boston Marathon. Looking on, right is
$711,000 in 1986. N et loan losses for
Dennis Woods, president of the host bank.
1987 were a t $834,000, down alm ost
$300,000 from the previous year.
R eturn on average assets w a ^ |
ing Board since 1981, and as a dir­
Bill Hess Announces for
percent and retu rn on average
ector of ITS, Inc. since 1983. In
IBA Pres.-Elect Candidacy
was 14.4 percent.
1984 he was secretary of IB A Group
IN B has three acquisitions under­
W illiam C. Hess, president of the
1 and served as its president from
Iowa Savings Bank, Coon Rapids,
1985 to 1987. D uring those years he way a t this time. The N ational B ank
has announced
also served as a director of the IB A of W aterloo is in the process of p u r ^
h is c a n d id a c y
and a director of the Iowa Bankers chasing F irst Com m unity B ank and
T ru st in T raer and the F irst N a­
for the office of
M ortgage Corporation.
tional B ank of Tam a County, Dyp r e s id e n t- e le c t
sart, w ith closing scheduled for M ay
o f t h e Io w a
Elected in Iowa City
(see separate story in th is issue). Th<#
B an k ers A sso ­
R obert M. Sierk has been elected acquisition of Oelwein S ta te B ank
c ia tio n , w hich
president and chief operating officer w ith its approxim ately $67 million
election will be
of F irst N ational
in assets is expected to be completed
held a t the an­
Bank, Iowa Ci­
later in 1988. I t will become the
nual convention
ty , a n d F i r s t
fourth wholly-owned subsidiary o 9
th is Septem ber
F in a n cia l BanINB. IN B ’s capital base a t Decem­
in Des Moines.
corporation, the
ber 31, 1987 was $44 million, w ith
Previously, Thom as R. Sm ith an­
h o l d in g c o m ­
to tal assets of $532,648,000.
nounced his candidacy for the
w h ic h
president-elect office. He is chair­
owns the bank.
Named in Mapleton
m an of B renton B ank in M arshall­
He has been
Ronnie F. Peterson has been
w ith the bank
nam ed vice president of the F irst
Mr. H ess attended Creighton Uni­
since 1961.
S tate Bank of
versity in O m aha and Buena V ista
Clark H ough­
M a p le to n . H e
College in Storm Lake, earning a
ton, form erly president of the bank has been serving
degree in business adm inistration.
and the holding company, has been custom ers of the
He began his banking career in
elected chairm an and chief executive M apleton com ­
1960 w ith the Iowa D epartm ent of
officer of both.
m u n i t y s in c e
Banking, and held num erous posi­
Newly elected directors of the 1978, when he
tions there until serving as a ssista n t
bank are Jo h n F. Kennedy, H unter j o i n e d
F irs t
superintendent from 1971 to 1973.
Rouse Professor of hydraulics and S tate B ank of
Mr. H ess then became vice presi­
director of the in stitu te of hydrau­ M apleton as a
dent and a director a t Iowa S tate
lics research a t the U niversity of loan officer. He
Savings B ank in Knoxville. In 1976
Iowa, and Dr. Stephen H. Wolken, is
o rig in a lly
he took the same positions a t the
ophtham ologist.
from A nthon, la.
Coon Rapids bank. He has been
president of the bank since 1984.
Iowa National Bankshares
Promoted in Spencer
Mr. H ess has been active in the
Posts Increased Earnings
Dale Boswell has been prom oted
cham bers of commerce both in
E arnings for Iowa N ational Bank- to vice president of the F a rm e ry
Knoxville and Coon Rapids, as well
shares Corp. (INB), W aterloo, rose T ru st & Savings Bank. He has been
as serving on the Coon Rapids
$4,650,000 to $6,013,000 in w ith the bank for one and a half
School Board.
1987, a 29.3 percent increase, accor­ years and is head of the agricultural
Mr. H ess was president of the
ding to the report given a t the April loan departm ent. Mr. Boswell previ­
Carroll County B ankers A ssociation
19 annual stockholders m eeting by ously worked for the F arm C redi^
from 1977 to 1985. He has served as
a director on the Iowa S tate B ank­ R. S cott Fetner, INB president. The System .

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

Two Strong
Staff Additions To Serve
Iowa Correspondent
Tom McDermott

Mike Coppess

Senior Vice President

Vice President

The addition of Tom McDermott as head of the
Correspondent Bank D epartment greatly strengthens
the National Bank staff. McDermott w as formerly
president of the LaPorte City State Bank and Peoples
Bank & Trust in W aterloo. Tom began his banking
career in Fontanelle, Iowa in 1955. This 33 years of
banking experience can be put to work for you in the
correspondent banking area.

Mike Coppess has been nam ed to head up the
Correspondent Bank Departm ent at Peoples Trust &
Savings in Indianola. Mike served three years in the
loan departm ent plus eight years with the Federal
Land Bank. He received his B.A. degree from the
University of N ebraska in Omaha. Mike w as born
and raised on an eastern Iowa farm so he has a well
rounded experience that can be beneficial to you in
your corresponding bank area.

The N ational Bank of W aterloo

Peoples Trust & Savings Bank

The National Bank puts its financial strength an d
outstanding co rresp o n d e n t banking services to
w ork for a large n u m b e r of ban k s in N ortheast
O ur state of the art co m p u ter processing
eq uipm ent is d esigned to m eet all your n ee d s
and is o ne of the largest processin g centers in
the state.
You ca n now pu t our u n m a tch e d
com bination of a n ex p erien ced team an d
ex p an d ed services to w ork for all your
co rresp o n d en t banking needs. Give us a call for
m ore d e ta ils . . . 1-800-772-2411 or 319-291-5200.

P eoples is an affiliate of Iowa National
B ankshares an d The N ational Bank of W aterloo.
We are now ab le to utilize the strength an d
services of the Iowa N ational B ankshares
through o u r Indianola o perations.
We offer full services including p u rch a se of
ex cess funds, b o n d advisory, d ata p ro cessin g
services, au to m ated a c co u n ts receivable billing
system s an d oth er co m p lete co rresp o n d e n t b an k
You ca n now p u t our financial strength, our
financial perfo rm an ce an d o u r financial growth
to w ork for you. In Indianola, call 515-961-6241
for m ore details o n o u r ex panding
co rresp o n d en t b an k departm ent.

T he National Bank

P e o p l e s IkusT

D o w n to w n / C ro ssro a d s/ Logan P la za /N a tio n a l Plaza
O ffices in: G ilbertville, Traer, Dysart, Clutier, Vinlng

114 N. Howard • Box 279 • Indianola, IA 50125-0279
(515) 961-6241

FDIC Insured up to $100,000
Subsidiary of Iowa National Bankshares Corp
Federal Reserve Bank of St. Louis


Iowa News

Luther College Honors Bill
Ronan with Honorary Degree
W illiam P. Ronan, president and
chairm an of the board of Decorah
S tate Bank, was
awarded an hon­
orary doctor of
laws degree at
L uther College’s
121st commence­
m ent last m onth
in Decorah.
The honorary
d e g re e r e c o g ­
nizes Mr. Ron­
an's m any con­
tributions to his com m unity, state,
profession and the college. D uring
his 65 years in the banking business
Mr. Ronan has served a two-year
term as treasurer of the Iowa
B ankers A ssociation and for 20
years has belonged to an IB A
“ rovers” group of bank presidents.
He has been president of Decorah
S tate B ank for over 30 years.
He is a charter tru stee of the Iowa
N atural H eritage Foundation and
continues to serve as a director of
the Foundation. He is also a director
of the Iowa Good Roads A ssocia­

In his com m unity, Mr. Ronan has
been a m em ber of several profes­
sional and civic organizations. He
served 51 years as treasurer of the
county fair board and over 50 years
as a tru stee of his church. He was an
organizer and has served as presi­
dent and director of com m unity dev­
elopm ent groups th a t have brought
industries and businesses to Dec­
Mr. Ronan has received num erous
honors and aw ards, including the
O utstanding Older Iowa Aw ard in
1984 and the distinguished service
aw ard from L uther College. A
Decorah native, he atten d ed L uther
College, D ePaul U niversity, the
U niversity of Iowa and the U niversi­
ty of W isconsin G raduate School of

Marion Bank Reports Profits,
Announces Promotions
A t th e a n n u a l sto c k h o ld e rs
m eeting on April 25, Farm ers S tate
Bank Chairm an M orris F. Neighbor
reported a net increase of nearly $30
per share of the M arion b a n k ’s
Six officers of the bank were pro­
moted. They are Lorna M. Barnes,

Committed to
making your
bank stand
apart from the

chief financial officer and vice presi­
dent; D w ight J. Kelley, vice presi-*
dent and farm representative; Johna
S. P e ttit, a ssista n t vice president
and bookkeeping officer; Steven K.
Neighbor, a ssista n t vice president
and farm representative; Sue A .'
Boddicker, a ssista n t vice president
and a s s is ta n t A lb u rn e tt office
m anager, and J u d ith A. E asterday,
assista n t vice president and Hia-.
w atha office m anager.
Seven employees were prom oted
to officer sta tu s. They are: Debby
R oth, executive secretary; Deb
Nelson, stu d en t loan officer; Jan^
Airy, a ssista n t cashier and credit
card officer; Shirley Allen, electronic
banking officer; M ary H anna, assis­
ta n t tru s t officer; K eitha O sterhaus,
M arion drive-up supervisor, and^
Georgene Pitzen, head teller.

Promoted in W aterloo
Russell E. L auterbach, president
and chairm an of Peoples B ank a n d 0
T rust, W aterloo,
has announced
th a t Michelle D.
W alker has been
p ro m o te d
a s s is ta n t con­
tro lle r.
joined the bank
in 1986 as staff
accountant. Ms.
W alker is a cerM.D. WALKER
tified public ac­

Appointed in Dubuque
W illiam D. M cGeehan, president
of Am erican T ru st and Savings
Bank, Dubuque,
has announced
the appointm ent
of K e v in E .
Sweeney as in­
te rn a l au d ito r.
Prior to joining
the bank, Mr.
S w eeney w as
director of quality c o n tro l a t
O Connor, Brooks
and Co., P.C.

L a st m onth we reported on
changes a t the City N ational B ank
of Cedar Rapids, including the elec-(
tion of Jam es H. Struve, the b a n k ’s
new owner, to chairm an and CEO.
The bank was incorrectly called City
N ational B ank in W aterloo. We
regret this error.

Banker, June, 1988
Federal Reserve Bank of St. Louis

Iowa News

»Norwest Hosts Investment Conference
ORE th an 200 bankers and
Des Moines area business and
retired persons atten d ed a Spring
^C onference in April a t H otel Savery
to hear two prom inent speakers dis­
cuss portfolio m anagem ent and the
economic environm ent. The pro­
gram was hosted by N orw est In^ v e s tm e n t Services, Inc., presided
over by Bill Van Lent, senior vice
president and m anager.
Portfolio Management
_ Charles D. W hite, banking group
® treasurer for N orw est Corporation,
M inneapolis, discussed portfolio
m anagem ent, utilizing his exper­
ience in funding, foreign exchange
^ tra d in g , investm ent m anagem ent
^ a n d coordination of asset/liability
m anagem ent for the N orw est B ank
Group. His scenario of portfolio
m anagem ent included consideration
^ o f fixed income securities, commodi­
ty and foreign exchange m arkets.
Economic Outlook
Dr. Leonard J. Santow, m anaging
director of G riggs & Santow Incor­
p o r a t e d , highlighted im portant as­
pects of the current economic en­
vironm ent. As co-author of the
weekly G riggs & Santow Report, he
analyzes developm ents in the money
• a n d capital m arkets. He told his au­
dience, “ I see nothing a t the mo­
m ent th a t suggests a recession is im­
m inent. We don’t see it in 1988 or
the first p a rt of 1989.”
Dr. Santow said “inflationary
pressures are on. Em ploym ent is up
and unem ploym ent is down. P lant
capacity is running a t 83 percent, or
m axim um utilization, w ith some in­
d u s t r i e s (paper, for example) a t 90
percent or higher, which creates
pressures for a 9-10 percent in­
crease. There is some im provem ent
in foreign trad e w ith the drop from
® $174 b illio n d e fic it to $145$150 billion.” Dr. Santow said, “ a
recession alw ays sees inventory
growing, p lan t and equipm ent ex­
p l o d in g , and bank loans dow n.”
^ Dr. Santow said “ If you w ant to
stabilize the budget deficit you can
do so by holding expenditures down
and by doing som ething to bring in
p i o n e y —for example, im posing a
wvalue added tax, offering tax am nes­
Federal Reserve Bank of St. Louis

ty and so on. The deficit h a sn ’t been
as bad as it was thought to be. Our
big problem is the low savings rate
of only 4 percent. If the Japanese
and G erm ans sold their long-term
U.S. T reasury holdings we would
really hurt. To stabilize the deficit
we m ust cut expenditures. To cut
the deficit we m ust increase taxes.
“ The Fed chairm an,” he con­
tinued, “ inherited Federal B ank
p resid en ts appointed by form er
Chairm an Paul Volcker and they are
more conservative. The new board is
more liberal, so you have seven Fed
Governors and five B ank presidents
on the Open M arket Committee,
which m akes C hairm an A lan Green­
span’s job more difficult.”
Small Market Moves
Looking ahead, Dr. Santow said,
“ I see upw ard m ovem ent in small in­
crem ents of perhaps 1/32nd, l/8 th ,
l/4th, and I expect to see the short
rate and prim e rate about 1/2 per­
cent higher. The long-term T reasury
rate is affected by a variety of
things, b u t I expect to see the long
bond m arket trad in g up a t 9V2 to 10
percent, which would h u rt housing.
Chairm an G reenspan doesn’t w ant
to take th a t chance, so I w ouldn’t be
a long-term bond buyer a t this
time. ’’
Dr. Santow also observed th a t
“the dollar moves on a psychological

Meet Tom Quinlin,
Norwest’s Corre­
spondent Banker
for Iowa. When you have correspondent
banking needs, he’s a good person to know.
Tom makes it his business to understand
the special needs of community banks.
And he wants to do business with you.
© 1988 Norwest Banks

Member FDIC


basis and I think the big drop is
System is Resilient
R egarding the viability of the
financial system , Dr. Santow ex­
pressed some concerns. He said, “ If
20 years ago I had fantasized th a t
Penn Central, Continental Bank,
Republic, S eaF irst all w ent under or
had serious problem s, we would
have been terribly depressed. I t ’s
am azing how resilient our economy
has been to these events! The sav­
ings and loan picture is really ugly.
They have about a $40 billion
deficit. Basically, the governm ent
has said, ‘If you’re a big institution,
we’ll back you.’ ”
Dr. Santow pointed out th a t in
the financial rescues by regulators
“those h u rt are the holding com­
pany, stockholders and m anage­
m ent if the depositors or bond­
holders are protected.” Referring to
the F arm Credit System rescue, he
said “ I t will take the FCS five years
to recover and no doubt th e y ’ll make
it. In term s of rate, if we have the
FCS in its current situation there is
no trouble if y o u ’re buying in; but,
it ’s an im possible liquidity situation
if you’re try in g to trade or get out of
Q and A Period
Dr. Santow responded to several
questions from the audience:
Do you see a national sales tax?
A: If we had a D em ocrat President,
House and Senate I would say
“yes,” or perhaps a value added tax.

to Tom about our
complete line of specialized correspondent
banking services. When it comes to corre­
spondent banking, he’s got you covered.



Norwest Bank Des Moines, N.A.

Northwestern Banker, June, 1988


Iowa News

In 1991 w e’ll have another Tax
Reform A ct and Congress will pro­
bably narrow in on tax preference
items. Congress needs money and
one way to get it is to narrow the ex­
W hat is your projection on oil
prices? A: I expect to see oil trade in
the next two years in a range of $12
to $14 per barrel on the low side to
$20 to $22 on the high side.
W hy do foreigners continue to in­
vest in U.S. Treasuries w ith our
declining dollar value? A: If they try
to move outside our m arkets, there
are none there to absorb their $70
billions a year investm ent. Also,
they don’t w ant to drop us and take
a chance of cu ttin g off their exports.
In th a t sense, we have the advan­
tage over them! I don’t see a need to
bring trade deficits to zero b u t to,
perhaps, $30 to $40 billion. Brazil,
for example, has a trade surplus and
needs it to pay its long-term deb­

Forest City Bank Fails
Forest City B ank & T ru st Co. was
closed on M ay 6 and reopened on
M ay 9 as L iberty B ank & T rust. I t
was purchased by a newly formed
bank com pany led by W illiam
Krause, who has in terests in seven
other Iowa banks and one in W iscon­
sin. Mr. K rause is also the head of
the Iowa-based Kum & Go conven­
ience store chain.
U ntil recently the bank was

owned by Forest City Ltd., a
holding com pany controlled by Des
M oines b u s in e s s m a n J o h n A.
W itner. He had sold the bank recent­
ly to an investor group assem bled
by the local directors.
A ccording to Iow a B a n k in g
S u p e rin te n d e n t E d w ard T ubbs,
F orest C ity’s directors led a local ef­
fort to raise enough money to buy
the bank in the last two weeks, b u t
failed in the attem p t.
Failure of the $25 m illion-asset
bank was a ttrib u te d prim arily to
deterioration of the ag loan p o rt­
M r. K rause and p a rtn e rs C.
W ilson Per singer of Sioux City and
Richard W ikert of Frem ont, Neb.,
acting as W innebago County Bancorporation, p u t up $1.7 million of
their own money to purchase the
bank. The FD IC p u t up an addi­
tional $1.2 million.

Promoted in Clarion
Several officers were prom oted
recently at F irst
D u an e A sbe
w as a d v a n c e d
from cashier and
tru s t officer to
vice p re s id e n t
and tru s t officer.
He has been
w ith the bank
since 1972. G ar­
land Koch, preD. ASBE

Austin P. Lawler & Associates, Inc.

Is red u cin g o p era tin g e x p e n s e
o n e of your p riorities?
If so , y o u ’ve probably alre ad y ta k en ste p s internally to re d u c e costs. B ut
h ow m u c h can realistically be acco m p lish e d w h en it’s only a p art tim e ef­
fort at best?
W e h a v e th e tim e, expertise a n d objectivity n ec essary to bring a b o u t th e
im p ro v e m en ts y o u know y o u n e e d .
O ur firm is th e largest p ro v id er of cost red u c tio n p ro g ra m s to Iow a b an k s.
L et us tailor a p ro g ra m to m e e t y o u r n e e d s a n d deliver positive results. O u r
prelim inary analysis can show you how d ram atic im p ro v e m en ts can be
m a d e at y o u r b an k .
F or a list of referen c es or m o re inform ation call 3 1 2 -5 8 4 -5 7 5 7 .

Austin P. Lawler & A ssociates, Inc.
40W274 Winchester Way
St. Charles, IL 60175

Northwestern Banker, June, 1988
Federal Reserve Bank of St. Louis

viously controller, is the b a n k ’s new
c a sh ie r. F o rm e r a g lo an a n d
m arketing officer Neil Fell has been
prom oted to a ssista n t vice p r e s id e n t
and m arketing officer. Ida Eekhoff
is now a ssista n t branch officer
m anger for the K anaw ha branch.
She previously served as operations
officer and has been w ith the b a n lP
15 years. Teresa Frink, who joined
the bank last summ er, was nam ed
internal auditor.

Iowa First Tells Earnings
Iowa F irst B ancshares Corp.
shareholders m et for their annual
m eeting in M uscatine on April 21.
The com pany reported earnings o P
$1,002,000 com pared to a loss of
$2,655,000 in 1986. The per share
earnings of $5.01 were the highest
reported since the com pany w a^
formed in 1984.
The M uscatine and F airfield
banks had after-tax income of
$1,158,000 and $724,000, respec­
tively. Lower provision for loam
losses and a reduction in non­
earning assets were the principal
reasons for the improved earnings.

Honored in Muscatine


George A. Shepley, who has been
president of F irst N ational B ank of
M uscatine for 25 years, was honored
on April 27 a t an anniversary c e l ^
bration attended by employees ana
directors of the bank. Mr. Shepley
was presented w ith a large oil p a in t­
ing which will be placed in the
b a n k ’s board room, and a p la q u ^
nam ing the board room in his honor.


"The doctors and the loving family of an
organ donor saved my husband's life. IBIS
saved mine. Thank you for being there every
step of the way for him — and for me."
Louise Mickelson —
The Farmers National Bank of
Webster City

"Your staff at IBIS has been a tremendous
help, has gone the extra distance. . . to offer
advice and approve coverage. We have not
had to worry whether our health coverage
was comprehensive enough or whether we
could afford what was needed."
— Diane Kupferschmidt
Waterloo Savings Bank

Need we say more?
Call Millie Uding today at 1-800-532-1423, or return the coupon below for
more information on IBIS Croup Health/Dental/Vision coverage for your


I want tailor-made coverage!
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Title _
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Ph on e_________________________________________
Return to: lowa Bankers insurance & Services, Inc.,
300 Liberty Building, Des Moines, lowa 50308


lowa Bankers insurance & Services, Inc.
Owned by all banks in lowa for the benefit of lowa banks.
An affiliate of the lowa Bankers Association
Federal Reserve Bank of St. Louis

Northwestern Banker, June, 1988


Iowa News

Marcus Bank Under New
W est Iowa Banc Corp. of M arcus
has purchased 95% of the out­
standing shares of the Farm ers
S tate B ank of M arcus. The newly
formed holding company purchased
controlling interest from Carleton C.
Van Dyke of Sioux City. He is retir­
ing after nearly 50 years of banking
in Sioux City and M arcus.
Mr. Van Dyke purchased control­
ling in terest in the bank in 1946 and
was president since then until this
p a st April.
W est Iowa Banc Corp. is a one
bank holding com pany comprised of
m ostly local M arcus resid en ts.
President is Stanley O. Nervig, who
has been serving as senior vice presi­
dent of the bank.
There are no planned changes in
m anagem ent or personnel.

Added in La Porte City
G ary R outh has joined Peoples
B ank and T rust, W aterloo, as assis­
ta n t vice presi­
dent and office
m anager in La
Porte City. Mr.
R outh has 14
years of experi­
ence in agricul­
ture, commercial
and consum er
lending. He has
served as assis­
ta n t county su­
pervisor for Farm ers Home A d­
m inistration, branch m anager for
Production Credit A ssociation and
vice president of Haw keye Bank.
M ost recently he was a m anager a t
F arm Credit System in Dixon, 111.

Houghton Receives Award
Clark H oughton, president of
F irst N ational Bank, Iowa City from
1959 until his re­
cent election to
c h a irm a n , h a s
r e c e iv e d
th e
H a n c h e r- F in k b in e
A lu m n i
M edallion. The
a w a rd re c o g ­
nizes leadership
and service to
th e U n iv e rsity
of Iowa.
M r. H o u g h to n re c e iv e d his
bachelors degree from the U. of Iowa

Banker, June, 1988
Federal Reserve Bank of St. Louis

gram m ing and consulting. The firm
a lso w ill p ro v id e e d u c a tio n a l®
sem inars such as desktop publish­
ing, advanced word processing,
database and others.
Mr. and M rs. W eaver were associ-^
ated for a num ber of years w ith M id­
w e s t O ffice T e c h n o lo g y , D es
Promoted in Council Bluffs
A t F irst N ational B ank of Council
Mr. W eaver, a native of Des
Bluffs, Virginia Nelson has been Moines, sta rte d a t th a t com pany i n ^
prom oted to a ssista n t vice president 1960, continuing to work for the®
and tru s t officer. She has been in firm while he was atten d in g Central
banking for 17 years.
M issouri S tate U niversity, from
Sue M cHale was prom oted to per­ which he was graduated in 1969
sonal banking officer and currently w ith a BA degree, w ith B u sin e ss^
works a t the M ain B ank Personal and English m ajors. He began pro­
Banking Center. She has been w ith gram m ing calculators before per­
the bank for six years.
sonal com puters came on the m arket
and was a pioneer user of personal
com puters in the central Io w a ^
Retired in West Union
Lloyd H. M eier and Carl Lueder region. He became proficient in n e t­
have retired as directors of Farm ers w o rk in g ( m u lti- s ta tio n u sa g e )
Savings B ank in W est Union, hav­ several years ago before this tech­
ing served 33 and 22 years, respec­ nique was in vogue. H is principal in­
tively. B oth will serve in 1988 as terests will center in the fields oIq
m arketing, program m ing and con­
honorary directors.
In addition, Lloyd H. Meier will sulting on all phases of personal
be retired as an active officer of the com puter usage.
M rs. W eaver, a native of the S tate
bank on M ay 30, after 38 years of
W ashington, also attended C e n #
service. He was honored a t a retire­
M issouri S ta te U niversity. She
m ent dinner on April 15.
Elected new directors were Jam es was graduated in 1969 w ith a
E. O ’Brien, executive vice president teaching degree in biology and phy­
of the bank, and La Verne R. Swen­ siology. She worked full-time for six
son, longtim e Clerm ont area farm er. years a t M idw est Office Technology#
w ith her husband. She is a specialist
in desktop publishing and in addi­
Peoples Bank to Hold Races tion to th a t will do m arketing, in­
Peoples B ank and T ru st Co. of stallation and provide training sup­
W aterloo will hold its 7 th A nnual port.
Com puters Plus is located pres­
Bicycle Race on Saturday, Ju n e 11
at Byrnes P ark in W aterloo. The ently a t 3117 Sum m it V ista Drive in
event includes all types of races, Des M oines—515/287-1966.
from the tricycle category for twoyear-olds to com petition for adults.
Pre-registered en tra n ts will receive Added in Missouri Valley
Gregory D. Pollard, president and
tee-shirts com m em orating the day,
and winners will receive ribbons and CEO of The F irst N ational B ank of
gym bags. R efreshm ents will be of- M issouri Valley, has announced th a t
Mike Kenealy will be joining th a t #
ferred throughout the day.
bank on Ju n e 6 as a loan officer. He
was previously w ith The Council
Des Moines Couple Founds
Bluffs Savings B ank in the farm
m anagem ent departm ent.
Computer Sales Firm
The husband and wife team of
Tom and Elaine W eaver have e sta ­ Elected in Lone Tree
Donald M. Kout, president of the
blished a new business, Lance Sys­
tem s Corp., doing business as Com­ F arm ers & M erch an ts S avings
puters Plus, to serve banks and Bank, Lone Tree, has announced th e ^
other businesses in central Iowa. election of Douglas Shanklin to the®
The firm will be an E pson dealer, b a n k ’s board of directors. Mr.
handling com puters and printers Shanklin joined Farm ers & M er­
chants in 1980 and is presently serv­
and selling directly to end users.
Mr. W eaver said he will stress ing as senior vice president ancj^
netw orking, custom database, pro- senior loan officer.
in 1944 and his J.D . in 1949. He has
served the u n iv ersity in m any
capacities over the years and was
chairperson of the com m ittee which
established the first Hancher-Finkbine M edallion Aw ard in 1964.

1989 Calendar
Im agine your bank
advertising every day of every month.
The Iowa Natural Heritage Foundation is
producing a calendar highlighting the natural beauty and


vp ~



heritage of Iowa. The 1989 calendar will feature new photography with a
different scene each month. When open the size will be
12" x 20 which includes a 2 " x 1 2 area to imprint your individual bank name
along with up to three additional lines of copy.

The Iowa Natural Heritage calendar is
an effective method to advertise your bank’s
service or product to your customers, while helping support the
work of the Iowa Natural Heritage Foundation.

For more information on prices call (515) 270-0402
or write to INHF 1989 C alendar • P.O. Box 3538 • Des Moines, IA 50322
Federal Reserve Bank of St. Louis


J. Locke Macomber, chairman of
Valley National Bank, has retired
from daily active involvement at the
bank. He will continue to serve as
chairman through December.
Mr. Macomber first joined the
bank to head its newly formed trust
department in 1952. At that time
the bank had assets of about $25
million; today that total is over $400
million. Mr. Macomber also was in­
strumental in the restoration of the
bank’s historic headquarters at 6th
and Walnut in 1979.



Kenneth Brenton has been pro­
moted to office manager of the
29th and Ingerso ll o ffice of
B r e n to n
N a­
tional Bank of
Des Moines. He
transferred to
th e b an k in
February from
B renton Bank
and T rust of
Cedar R apids,
k. b r e n to n
where he held
positions as consumer loan officer
and Master Card/Visa represen­
tative. His prior experience includes
commercial real estate brokerage
and acquisitions in Dallas.
* * *
James B. Fogt has accepted a
position with Krause Gentle Cor­
poration and First M idwestern
Financial Corporation as senior vice
president and chief financial officer.
Both of these currently Hamptonbased firms will be relocating to

Banker, June, 1988
Federal Reserve Bank of St. Louis

W est Des Moines on July 1st. Mr.
Fogt was formerly executive vice
president and treasurer of First In­
terstate of Iowa, Inc., and had been
with that holding company for ten
years. Prior to that, he was with
Brenton Banks as controller.
* * *
First Interstate Bank of Des
Moines, N.A. announced the addi­
tion of Ralph H. Weickel as vice
president, manager of investment
sales and operations.
Mr. Weickel came from First
Bank System Capital Markets, Min­
neapolis, where he was the national
sales manager for the government
trading desk. Prior to joining First
Bank System he was a retail broker
and the mutual fund coordinator at
Paine Webber in Minneapolis.
Mr. Weickel earned a BA in
economics and political science at
Lawrence University in Appleton,
* * *
A “Just Say N o’’ walk was spon­
sored by First Interstate Bank of
Des Moines on May 13. The walk
was part of the national “Just Say
N o’’ campaign against drug abuse.
A pproxim ately 800 students,
faculty and parents from two local
schools walked through downtown
Des Moines to hear a program at the
capitol on substance abuse. The
bank provided green and white
“Just Say N o’’ balloons to all
walkers. After returning from the
capitol, the students had refresh­
ments and formed a “NO’’ on school

BMA to Hold Strategy
Conference in Orlando
Bank Marketing Association’s 1988
Distribution Strategy Conference is
scheduled for June 12-15 at the Hyatt
Grand Cypress, Orlando, Fla. The two-#
and-a-half-day conference will explain
how banks and thrifts can maximize
delivery system options by exploring
"Distribution Alternatives...Our Mar­
keting Highways.”
General session speakers laying the
foundation for "case study” concurrent
sessions include: John F. Fisher, senior
vice president, Banc One Corp., Colum­
bus, Ohio; Donald G. Long, industry#
consultant-finance, IBM Corp., Prince­
ton, N.J.; David J. Totaro, senior vice
president, Dollar Dry Dock Savings
Bank, White Plains, N.Y.; Joel Fried­
man, partner, Arthur Andersen & C o.#
San Francisco, and George Hood,
manager-electronic banking services,
Wegmans Food Markets, Inc., Roches­
ter, N.Y.
More than 15 "how to” sessions w ilP
feature topics on branch strategies for
physical layout, site selection, and em­
ployee training. Other sessions will
discuss customer-activated distribu^
tion options, advanced information
systems, corporate remote services,
ATMs, and debit card technology.
For registration materials or more
information, contact Jeanne S anche^
at 312/782-1442.

June, 1988
American National Bank, St. P a u l..............

2 1 ,2 2 ,2 #

Bankers Trust Co., Des Moines ..................
BICS Banking S ystem ..................................


First National Bank, O m aha........................
First Wisconsin National B an k ....................

. . .34-35

Gross, Kirk Co., W aterloo............................

........ 53

Iowa Bankers Insurance & Services, Inc.. ..
Iowa Natural Heritage Foundation ............
ITS, Inc..............................................................

........6 #
. . . 56-57

LaSalle National Bank, Chicago ................
Lawler & Associates, Inc...............................

........ 9
........ 62

Marquette Bank Minneapolis ......................
Merchants National Bank, Cedar Rapids . .
Midwest Management Consultants, Omaha
Municipal Bond Underwriters, Inc., Omaha

. . . 26-27

National Bank of Commerce, Lincoln........
National Bank of W aterloo..........................
North Central Life, St. P aul..........................
Norwest Corporation, Minneapolis............
Norwest Bank, Iow a......................................
Norwest Bank, Minnesota............................
Norwest Bank, Wisconsin..............................

........ 40

Office Concepts, Ltd., Waterloo....................


Rothschild, L.F. & Co., New Y o rk ..................

........ 5

SLT W arehouse..............................................



........ 2 #

........ 11
TRW Corporation................................................................ 67
Texas Instruments.............................................................. 3 0
Travelers Express Co., Minneapolis.................................. 12

W hat D oes It M ean
W hen a Credit Company Says They’re on Target?
The key to a Gold Medal perform­
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Credit Data consistently hits the
target by continuously providing
credit grantors with advanced and
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A Record of Service Innovations
TRW was the first credit reporting
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Combining this with a National
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quality service for all parts of the
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more information based on all cur­
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Federal Reserve Bank of St. Louis

© 1988 T R W Inc. T R W is the nam e and m ark o f TR W Inc.

Nickname Search was added to con­
nect many com m on nicknames to
credit files associated with the indi­
vidual’s proper name. And now TRW
is adding an AKA Search to locate
and display credit information on
consum ers who have credit histories
under more than one surname.

So, if you are looking for quality
and consistency in your credit infor­
mation services, set your sights on
a Company called TRW.
For more information, call your
local TRW representative at
612.631.2215 or write:

TRW Credit Data
The New TRW Accu-Search" System
We’ve hit the mark again by adding
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TRW Accu-Search® File Matching
System. A system you can rely on to
provide you with comprehensive
credit information on every TRW
Credit Profile report.

1970 O akcrest Avenue, Suite 115
Roseville, M innesota 55113






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Whenit comesto correspondent banking,
we’vegotyoucoveredlike never before.
Wherever your bank is located, whatever size
your bank may be, you can count on a Norwest
Correspondent Banker to bring you the specialized
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Our Correspondent Bankers are available
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Whether you need a bank valuation, acquisition
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am yam


1 5 3 5 LINDEN ST ^ j v
) 1988 Norwest Bank
Federal Reserve Bank of St. Louis

Equal Opportunity Lender