Full text of The Northwestern Banker : March 1976, 83rd Year, No. 1350

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

MARCH
1976

ON THE COVER

Record Farm
P lanting
Predicted

EXCLUSIVE

Annual Bond
and Investm ent
Review

The M unicipal
Bom bs of 1975!

Area Bankers
Give T h eir
V iew s on EFT


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Peter Bailey is a good w ay fo r you to
avoid being bum ped fro m h old b u tto n to hold
b u tto n . Call him and you w o n 't have to go
th ro u g h a c o m m itte e o f ju n io rs to get help.
He's th e man w h o can give you p ersonalized
assistance w ith yo u r in ve stm e n t p o rtfo lio .
Pete's an experienced pro in co rresp on ­
d e n t b anking. He know s yo u r needs and he
knows h ow o u r bank can help yo u r bank
m ake th e m ost o f its investm ents.
Call Pete w hen you need:
• U.S. Treasury Securities
• Personalized Safekeeping

•
•
•
•

M u n ic ip a l Bonds
A M a rk e t in Federal Funds
Federal Agencies
C om m ercia l Paper or o th e r m oney
m arket instru m e nts
• O dd Lot Purchases fo r y o u r custom ers
Call Pete w hen y o u 're tire d o f d e a lin g
w ith a c o m m itte e o f ju n io rs.
Peter Bailey's th e reason w h y w e can
give you th e personalized assistance you
need. Call him on o u r in b o u n d w atts n um be r
(1-800-332-5991). H e'll be w a itin g on you.

Merchants National Bank
Cedar Rapids, Iowa 52401

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A BANKS OF IOWA' BANK

4

Roll your own!

Now is
the time for for­
ward-thinking banks han­
dling ever-increasing quantities of
coins to evaluate the many benefits of
wrapping their own coins.
Convenience: Have wrapped coins available when
you and your customers want them.
Security: Sort and wrap your coins in your bank with your
people.
Service: Your ability to respond to your customers’ needs is sig­
nificantly increased and this added service means more and
more customers. Amiel Industries is ready to help you realize
these benefits. We’ve developed the biggest little automatic coin
wrapping machine in the world—the AI-9100. Big in produc­
tion, yet little in size... simple to operate... quiet and easy to
maintain. The AI-9100 is the ideal automatic coin wrapper
for the forward-thinking banker. For more information and a free
trial evaluation, call or write the nearest .Amiel Industries Office.
Corporate headquarters—P.O. Box 48149, Atlanta, GA. 30340, (404)
455-0090 • Plaza 66, Bldg. B-9, Mt. Prospect Ave., Clifton, N.J. 07013, (201)
473-0166 • 2101 Ferry Ave., Suite #604—1800 Pavilion, Camden, N.J. 08104
(609) 962-9490 • 3000 Cleatview Pkwy., .Atlanta, GA 30340, (404) 455-0090 •
1285 Rand Rd„ Des Plaines, ILL. 60016, (312) 299-6630 • 2284 Weldon Pkwy.,
St. Louis, MO. 63141, (314) 567-3323 • Suite #125, 12830 Hillcrest Rd„
Dallas, TX. 75230, (214) 387-4579 • P.O. Box 1348, Denver, CO. 80201, (303)
499-1663 • 325 Corey Way #111, South San Francisco, CA 94080, (415)
873-0316 • 395 Freeport Blvd. #10, Sparks, NEV. 89431, (702) 359-9588

The World’s Leader
in Coin & Currency
Handling Systems &
Equipment

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4
BAI Forms Two New Chapters

Bank Administration Institute has
announced the formation of two new
affiliates — The Iowa-Illinois Chapter
and the Southeastern Oklahoma Chap­
ter.
The new units, serving banks in
southeastern Iowa, west central Illi­
nois, and southeastern Oklahoma,
bring overall Institute membership to
8,926 banks and 269 chapters in the
U.S. and abroad.
Newly elected officers of the IowaIllinois Chapter are: Edward J. John­
stone, II, president, Keokuk Savings
Bank & Trust Co., Ia., president; Don­
ald Kellar, auditor, First National
Bank, Burlington, la., vice president;
Robert G. Williams, cashier, Lee
County Savings Bank, Fort Madison,
la., treasurer, and Tom Ritchey, exec­
utive vice president and cashier, New
London State Bank, la., secretary.
Chapter directors are: James C.
Bloomberg, vice president, Burlington
Bank and Trust Co., Ia.; Leo I. Brunenn, executive vice president, Hill
Dodge Banking Co., Warsaw, 111.;
Robert C. Oatley, vice president and
cashier, Ft. Madison Bank and Trust
Co., Ia., and Richard K. Reinhardt,
president, State Bank, Nauvoo, 111.
Illinois charter member banks in­
clude: Security State Bank, Hamilton;
State Bank, Nauvoo, and Hill-Dodge
Banking Company, Warsaw.
Charter member banks from Iowa
are: Burlington Bank and Trust Co.,
Farmers and Merchants Bank and
First National Bank, Burlington; Keo­
kuk Savings Bank and Trust Co. and
State Central Savings Bank, Keokuk;
New London State Bank; Citizens
State Bank, Donnellson; Fort Madison
Bank & Trust Co., Iowa State Bank,
and Lee County Savings Bank, Fort
Madison, and Wayland State Bank.

United Missouri Bank
Tops $1 Billion in Assets

R. Crosby Kemper, chairman of the
board of United Missouri Bancshares,
Inc., announced recently that the Kan­
sas City based, multi-bank holding
company became a $1 billion company
during 1975. Net income also reached
a new record exceeding $8 million for
the first time.
Total assets climbed more than 13%
by year end to $1,056,088,000, up
nearly $122 million from a year earlier.
Deposits climbed to $734,675,000, up
$15,670,000 during the year.
N o for
rth w
e ste rn B a n k e r, M arch 197 6
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

fo r your March 1 9 7 6 reading
< -T

8 3 rd

Year

No.

1350

FEATURE ARTICLES

10 Bank Promotions and Changes

-~

16 Corporate News

< •.

19 Convention Calendar
20 Bankers’ Market Place
25 Annual Bond and Investment Survey— A N orthwestern Bank­
er Survey
31 The Municipals Bombs of 1975!— Brenton W. Harries

*^

38 New DKQ Municipal Index Will Measure Regional Rates
39 Area Bankers Give Their Views on EFT— A N orthwestern
Banker Survey

+

44 EFT Update by ABA President— Rex Duwe
R EG IO NA L B A N K IN G

N EW S

Illinois News 51

74 Montana News

Minnesota News 55

75 Western News

Twin City News 56

77 Nebraska News

South Dakota News 68

78 Omaha News

North Dakota News 70

84 Lincoln News

Wyoming News 71
Colorado News 72

\
-yJ

87 Iowa News
4

92 Des Moines News

OTHER FEATURES

106 In the Directors’ Room
106 Index of Advertisers
NORTHWESTERN BANKER

4

306 15th Street, Des Moines, Iowa 50309. Phone 5 1 5 ^ 2 4 4 -8 1 6 3

Publisher

Malcolm K. Freeland

Editor

Ben Haller, Jr.

Mildred Barnes

Sherri Nielsen

AI Kerbel

Linda L. Rhein

Auditor

Advertising Assistant
Field Representative

Associate Editor

Field Representative
Paul Masters

Field Representative
Glen Hicks

N o. 1 3 5 0 N orth w estern B anker is p u b lish ed m o n th ly b y th e N orth w estern B anker C om pany, 3 0 6 F ifteen th
S treet, D es M oines, Io w a 5 0 3 0 9 . Subscription S I . 0 0 per cop y, $ 1 0 per year. S eco n d class p o sta g e paid
at D es M oines and at ad d itio n a l m a ilin g o ffice. A ddress all m a il (sub scriptions, ch a n g e o f address Form
3 5 7 9 , m anuscripts, m a il item s) to a b ove address.

-<
4

We’ve got a
great big reputation
to live up to!
It’s a tough reputation to live up to!
Because Dawson Hail Insurance has been
known for 59 years for their service. And
Quality. And Strength. And we’re
determined to maintain the same “ Great
Big Reputation” going into the 1976 ultra
mechanized agri-business market.

We offer a very unique background
You may ask of us some hard questions relating to our future
in the extra sensitive field of crop hail damage protection.
Then you’ll be interested to know that Dawson Hail Insurance
of Fargo, ND, boasts the longest continuing growth record of
any private crop hail protection firm in this upper
midwest region.
We feel that it is our long record of service that has given us
real insight. We appreciate the crop protection needs of the
modern farmer within our 5-state service area.
Our 37 adjusters have specialized up-to-date training which
qualifies them to deal fairly with today’s farmer-businessmen.
Dawson has 500 agents, most of whom are bank-affiliated.
If you are not already one of them, contact our office and we
will send one of our key people to call on you.

We’re ready to “prove-up”
on our Great Big Reputation!

1917

Dawson

DaWS° n

Askerooth

Dawson

Fosberg

DAWSON HAIL INSURANCE
B O X 1 8 2 0 , FARGO, N O R T H D A K O TA 5 8 1 0 2

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N o rth w e s te rn B a n k e r, M arch 1 9 7 6

NORTH CENTRAL LIFE INSURANCE CO.
REACHES BILLION DOLLAR MILESTONE!
Insurance-In-Force Achievement Ranks Company
In Top 20% of all U.S. Life Companies
North Central Life Insur­
ance Company of St. Paul,
Minnesota, reached a major
milestone recently when it
achieved a billion dollars of
life insurance in force.
North Central Life is the
principal subsidiary of The
North Central Companies,
Inc., St. Paul, M innesota
based financial services
holding company.
Insurance Industry figures
show that North Central
now ranks in the top 20% of

all United States insurance
companies in this important
statistic, and in the top 15%
of all North American Life
companies in premium in­
come.
North Central is a major
marketer of innovative in­
surance products through fi­
nancial institutions includ­
in g c r e d it l if e , c r e d it
accident and health, mort­
gage insurance and a variety
of ordinary insurance pro­
grams specifically designed

Company Extends Thanks To
Financial Community For Its Help
In Billion Dollar Success

Sanborn
Kane
C om p any o ffice rs for
North Central Life today an­
nounced their official thanks
to the financial community
for the part it played in help­
ing North Central achieve a
billion dollars in Life Insur­
ance in-force.
Theodore Sanborn, chair­

man, and Stanley P. Kane,
president, acknow ledged
that much credit for the con­
tinuous grow th of North
Central must go to those
banks, savings and loan asso­
ciations and other financial
accounts whose receptivity
to the company’s innovative
insurance products, imagi­
native packaging of insur­
ance programs and helpful
a d m in istr a tiv e se r v ic es
caused North C entral to
grow spectacularly in recent
years.

for customers of banks, sav­
ings and loan associations
and other lending firms.
Established in 1921 under
the name Modern Life In­
surance Company, the com­
pany was reorganized in
1951, changed its name to
North Central and charted a
new marketing strategy. It
was in this last 25 year period
that the company grew dra­
m atically in size, stature,
scope of operations and ser­
vice to the financial commu­
nity.
Since 1951, the company’s
life insurance in-force has
grown at a rate three times
faster than the life insurance
industry.
Currently, the company
has more than 1,000 finan­
cial institutions as customers
th r o u g h o u t th e U n ite d
States and insures nearly
400,000 people.

North Central Life’s innovative “Shatterproof Nest Egg”
program provides bank customers with an unusual way to
accumulate money for a variety of future purposes whether
they live, die or become disabled. A tax-sheltered version
is IRA-qualified for retirement income purposes.

Company Is Major Marketer of
Insurance Through Financial Institutions.
A unique marketing con­
cept has made North Central
Life Insurance Company of
St. Paul, Minnesota, one of
the nation’s leaders in selling

More Than 1,000 Financial Firms Are
Customers Of North Central Life.
A recently released analy­
sis of North Central Life’s
account profile showed that
banks, savings and loan asso­
ciations, auto dealerships,
production credit associa­
tions, industrial loan and
small loan companies, mo­
bile home, motorcycle and
boat dealers totaling more

than 1,000 firms across the
country, make up N orth
Central’s roster of accounts.
The account list, the sur­
vey showed, includes com­
panies of all sizes, located in
little towns as well as big
cities.
North Central is licensed
to do business in 38 states.

insurance, reliable sources
have reported.
It was ascertained that the
company markets its insur­
ance products exclusively to
customers of banks, savings
and loan associations and
other firms engaged in lend­
ing services.
The sources indicated that
North Central specializes in
designing innovative insur­
ance programs for these cus­
tomers and that currently
the company insures nearly
400,000 people, providing
over a billion dollars of fi­
nancial security for its poli­
cyholders.

Company Ranks In Top
North Central Life’s twin
major marketing thrusts, acc o r d in g to a c o m p a n y
spokesman, are in the areas
of creditor insurance, in
which it was one of the na­
tion’s earliest pioneers, and
in ordinary insurance, in
which it has developed many
im aginative products and
marketing techniques — all
through financial institu­
tions.
“Creditor insurance”, it
was explained by F. William
Stohr, senior vice-president,
credit insurance, “is a means
of protecting the financial
security of a borrower’s fam­
ily or business associates who
might not be able to make
loan repayments in the event
of the death or disability of
the borrower. The insurance


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Company Marketing Efforts Explained
also protects the investment
that the lending institution
has in the borrower and as­
sures the institution that the
death or disability of a bor­
rower will not result in an
unprofitable default or a
needlessly embarrassing re­
possession.
“A creditor insurance pro­
gram has become increas­
ingly important to lending
institutions because it gives
them an opportunity to offer
their customers a vital addi­
tional financial service.”
In recen t years, North
Central Life has also made
substantial progress in pro­
viding innovative forms of

Ordinary insurance cover­
ages for customers of finan­
cial institutions. According
to Roland Allen, senior vicepresident, ordinary insur­
ance, “ A se lec t group of
North Central agents, often
at the request of the lending
institution itself, provide in­
surance plans for a wide va­
riety of purposes. Perhaps
the most significant are the
“Overlines” programs which
insure the liv es of major
m ortgage holders w hose
loans exceed the normal
limits of creditor insurance.
A “ Major Borrower Plus”
program gives protection for
the individual who needs

larger coverage (minimum of 40 Of All United States
$10,000) to protect a line of Credit Insurance Cos.
credit. And other unique
Informed sources have re­
programs have been devel­
oped for disability protec­ ported that the North Cen­
tion, retirement income, and tral Life Insurance Company
to guard against the high of St. Paul, Minnesota, be­
cost of hospital-medical ex­ cause of its unique relation­
penses.”
ship with financial institu­
As w ith creditor insur­ tions, has become a national
ance, North Central’s Ordi­ leader in credit insurance
nary insurance programs sales, currently ranking in
give financial institutions the top 40 of all U.S. credit
many additional services to insurance companies in pre­
mium income.
provide their customers.
In total, North Central
The Company offers a
Life products are currently variety of credit insurance
marketed through more than products to these customers
1,000 financial services com­ including credit life, credit
panies throughout the upper accident and health, and
Midwest and on the East mortgage insurance.
Coast. The company is li­
C o m p a n y sp o k e sm e n
censed to do business in 38 today confirmed that this re­
states.
port was true.

7

Plan Instalment Credit Conference
In Miami, April 4-7
onsumer credit and its prospects in
C
the future will be the center of the
banking industry’s attention when the

Kansas City, N.A. He was elected
president of the St. Louis affiliated
bank one year ago.

American B a n k e r s
Association
(ABA) hosts its National Instalment
Credit Conference, April. 4-7, in Mi­
ami Beach.
ON THE COVER
J.
Donald Saul, conference chair­
With agriculture continuing to play
man and vice president of First Na­
tional Bank, Cincinnati, said that spe- a major role in the American economy,
:ific topics include: the economy today area bankers and their farm customers
as it relates to consumer credit; the au­ look forward to another record year in
tomotive outlook; equal credit oppor­ 1976. Corn planting, as portrayed on
tunity; electronic funds transfer sys­ the cover, will soon be in full swing.
USDA reports indicate that new
te m s (EFTs); the outlook for con­
sumer credit; and regulatory and legis­ crop plantings will be 80.8 million
acres of corn. Two key states, Iowa
lative developments.
William T. Gwennap, chairman of and Illinois, will increase about five per­
he ABA’s instalment lending divi­ cent over 1975. Drouth conditions in
sion and vice president of Pittsburgh the USSR may help market conditions.
Revised forecasts for planted acreage
National Bank, will preside at the con­
ference. The keynote address, “The for soybeans indicate that 50.9 million
Competitive Environment,” will be de­ acres will be planted, down seven per­
liv ered by ABA President J. Rex cent from 1975.
With worldwide wheat stocks on the
Duwe on Monday morning, April 5.
Luncheon speakers will be Sen. Jake decline, all countries are going to try
Garn, R-Utah, and columnist Art to increase production. Tn North Da­
Buchwald. Mr. Garn is a member of kota, the leading state, growers expect
the Senate Consumer Affairs Subcom­ to plant 4.1 million acres, the same as
mittee.
last year. South Dakota growers ex­
Additional information and registra­ pect to plant eight percent more acre­
tion material is available from Ms. Liz age, and Minnesota growers 10 percent
Hall, Instalment Lending Division, more but Montana growers expect to
American Bankers Association, 1120 plant 14 percent fewer acres. Total
Connecticut Ave., N.W., Washington, acreage expected in the traditional
DC. 20036, (202) 467-4056.
acres of the Dakotas, Minnesota, and
Montana is down slightly.
NCAA Honors Banker
Wade R. Stinson, president of
^United Missouri Bank of St. Louis,
N.A., has been selected by the Nation- Ziegler Record Earnings
^ al Collegiate Athletic Association as
The Ziegler Company, Inc., a finan­
one of its top five graduates of 25 years cial services holding company, has re­
ago. Mr. Stinson was named not only leased its preliminary unaudited fi­
Tor one successful career, but for three nancial figures for the fourth quarter
^separate careers after graduating from and for the full year ended December
the University of Kansas where he 31, 1975.
starred as one of the school’s all-time
For the three months ended Decem­
>-great running backs.
ber 31, 1975, total revenues were
After an outstanding career placing $5,380,000 and net income was $691,him as one of the nation’s leading rush­ 000, or 200 per share, compared with
ers in college football, Mr. Stinson es- revenue of $6,351,000 and a net loss
ablished a successful career with of $1,465,000, or 430 per share for
Equitable Life Assurance Society of the corresponding period in 1974, ac­
le United States in Chicago. In 1964 cording to R. D. Ziegler, president.
For the 12 month period ended De­
ie was chosen to head the Kansas Uni­
versity athletic program. Tn 1972 he cember 31, 1975, total revenues were
embarked on his third career, as a $23,737,000 compared with $21,713,^banker, when he became a vice presi­ 000 for 1974. Net income for 1975
dent of the United Missouri Bank of was $4,093,000, or $1.20 per share,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

compared with net income of $505,000
or 150 per share in 1974. The $1.20
per share earnings for 1975 equaled
the prior record operating earnings per
share of $1.20 attained in 1972.
An extra dividend of 100 per share,
in addition to the regular quarterly
dividend of 8^ per share, had been de­
clared on December 15, 1975, payable
On January 20, 1976, to stockholders
of record on December 31, 1975. That
brought total dividends declared dur­
ing 1975 to 42^, compared with the
32^ that was declared in 1974.

Call

us.

(6 1 2 ) 2 9 1 -5 6 5 9

■ Tax exem pt bonds
■ S hort term
tax exem pt notes
■ U.S. Treasury
and Agency Obligations

IS C om m ercial p a p er
B Negotiable
Certificates of Deposit
B R epurchase agreem en ts
B Portfolio
Advisory Services
B Portfolio
C o m p u ter Services

Investm ent Services G ro u p

Member F.D.I.C.
N orthw estern

Banker,

March

1976

“For the time being, we expect savings flows into S&Ls to
remain at a very high level; and savings flows for the year may
not be too much below the record level of last year'
—FEDERAL HOME LOAN BANK BOARD

■■
ISM

■R IS

m m w m w m m m im & m m '.
mBSSm ■ ■ m B B H H I

' .V

iHsila
mm

jjg ■-

;■

MM


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

“With savings up, investors
have to get money out.
Let’s go with conventionals
— and MGICs
secondary market.
Today, experts in financial m arkets know you always check
the largest, broadest m arket first. T hat is w hat M G IC s
secondary m arket is. And now it can work for you better
than ever before.
At MGIC, we feel secondary m arket is so im portant w e’re
calling this “the year of the secondary market!' And we
are taking several m ajor steps to help you w hen you
need us. They are:
• Doubling our staff of secondary m arketing special­
ists, already the largest in the industry, both at the
hom e office and in the field. T hese people are in
constant contact with buyers.
• Committing the skills and talents of our sales force
of m ore than 100 representatives to finding
investors who are ready to buy loan packages
right now.
• Increasing our counseling services. W hether you
are large or small, you can now receive additional
assistance or advice in getting negotiations started.
You also get expertise on how to put together all of
the docum entation to m ake your buyer’s
decision easy.
T hen there is the way in which we work with you —always
with speed, reliability, and with your profits in mind.
For these reasons we say —w hen it com es to m ortgage
insurance there is no substitute for experience.
MGIC experience.

MGIC
Because experience pays.
Mortgage Guaranty Insurance Corporation, a Subsidiary of MGIC Investment Corp., MGIC Plaza, Milwaukee, WI 53201


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

10

DAKTRONICS
displays
and other an­
P ROMOTIONS
nouncements have been made by

IMPACT

A Oaktronics display is the efficient
a d v e rtis in g m edium th at c re a te s
traffic, new business, image and pro­
vides community service.
Daktronics has taken the service ex­
pense out of time and temperature dis­
p la y s w ith 10 0% s o lid s t a t e
electronics.
Our engineers will custom design a
time and temperature display, that will
enhance the appearance of your facili­
ty.
Call or write us today! Daktronics
will give you the edge over your com­
petition with 100% solid state displays.

M ESSAG E C EN TER S

Daktronics offers entirely solid state
message display centers with chang­
ing and traveling messages, and time
and temperature information.

DAKTRONICS, INC.
BOX 299

BROOKINGS, S.D. 57006
PH. 605-692-6145

DigitizedN for
FRASER
o r th w e s te r n B a n k e r, M arch
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

the following banks:
Bank of America, San Francisco:
Lloyd J. Sugaski has been appointed
executive vice president and executive
officer for loans and Kendall D. Mar­
tin senior vice president and con­
troller. Mr. Sugaski, formerly senior
vice president for credit in the world
banking division, succeeds E. A. Iversen who retired March 1. Mr. Martin,
formerly head of credit administration
for the North America division in Los
Angeles, succeeds D. S. Langsdorf as
controller. Mr. Martin will be replaced
in Los Angeles by Clayton B. Elm who
moves up from group vice president
in the corporate services office, Los
Angeles. Mr. Sugaski also succeeds
Mr. Iversen as chairman of the bank’s
loan policy committee and general loan
committee and as a member of the
money policy committee. Named as
senior administrative officers are
executive vice presidents D. S. Langs­
dorf, for premises and data services,
and Arthur V. Toupin, for invest­
ments, fiduciary and communications
services. Both also were appointed to
the managing committee along with
Leland S. Prussia, executive vice
president and cashier. In their new
posts, Messrs. Langsdorf and Toupin
assume the duties relinquished by
Executive Vice President A. R. Zipf,
who recently retired.
The Bank of New York Company,
New York, N. Y.t The election of
Lawrence Lachman as a director has
been announced. He is chairman and
chief executive officer of Bloomingdale’s.
Exchange National Bank of Chicago:
Attorney Robert Kahn recently joined
the board of Ex­
change
Interna­
tional Corporation
and its whollyowned subsidiary,
Exchange Nation­
al Ba n k . Mr.
Kahn has been in
the private prac­
tice of law since
1938 specializing
R. A . K A H N
in financial, con­
struction and agricultural law.

Continental Bank, Chicago: Robert
K. Miller, a vice president, has been
named head of the quality assurance
division, a new division which will em­
phasize customer awareness among
bank employees. Mr. Miller, who holds
B.S. and M.B.A. degrees from North­
western University, joined the bank in
1952.
The First National Bank of Chicago:
Nick Poulos, financial columnist and
former financial editor of the Chicago
Tribune, recently was elected vice
president in charge of press relations
for the bank and its parent company,
First Chicago Corporation. A 1950
graduate of the University of Illinois
Mr. Poulos joined the newspaper in
1952.
First National Bank of Kansas City:
Five promotions in the trust and in­
vestment divisions have been an­
nounced. They are Clark C. Bradshaw,
Jack G. Brown and Thomas A. Foster
from trust officers to vice presidents;
and Anita G. Butler and Michael J.
Patton from assistant trust officers to
trust officers.
First National Bank in St. Louis:
John L. Dudash, marketing officer, has
been elected an assistant vice president;
James R. Lanigan, bond investment
officer, and Gerald L. Walther, cash
management officer.
Harris Bank, Chicago: Harris Bankcorp has announced the nomination of
four new directors and the retirement
of a current director. The four nomi­
nees are O. C. Davis, president and di­
rector, Peoples Gas Company; Theo­
dore H. Roberts, executive vice presi­
dent, secretary and treasurer, Harris
Bankcorp; and Charles M. Bliss and
Kent W. Duncan, executive vice presi­
dents, Harris Bancorp. Remick Mc­
Dowell, retired chairman of the execu­
tive committee of Peoples Gas Com-

O . C. D A V IS

T. H . ROBERTS

eà

^ ¡ ¡ te s te r
^ b

« t e ^ r QVac * s 1 ,nxet\o! *

? OVS e V ^ ll <*#*g sc«^ •

tìte s ^

pr > ^ ^ e e V
tte
s\\òe
Aa sVee'0
> ^leVb»*
e e > idÓS;
■\6*
6Udd
„ . . - s
AO-0® ^
oS^ e < ' " ^

o <n9

^

e ^

r ' “
<aod

. v,o<i'-v'® o a ^ e t l o ' ^ ^ e 9 w a

-

y° V

^

aV
O'-'

, ao d ° ^ f
9 ^ < e o c ed \ i0^

°

àf° Ò à ^ -

r qO

\.ra^ei
Oe'

. ^ P ^ t c o r t 'P S v e ^ 5

s ? ^ ^ r s s ^ f

3 ^

a t o o S ^ g p $ * ^ t^ e i'.P 'c o ^ ^
goes* * V «
^ 0g e 's .'® > ó* ® ^<eS'

iSK!
tè

bo^-". - vro"’ .>. s\a'
V\e ò > ^
* * » £ > ? ^ ,V
< ° s V 'e
^ Y ^ e d ^ fr te ^. „e!esW('a
J v ea ^ 'co O P 1
aid
1 Ose
A W ? Ìte sé ^ . ",'<J<o0.!?\.od®f'

. -.- -

esì<r^

O^°èod <°t 'i
io Sfci
c^e
'\oSeà 's
r\\o

ÌS

a\ \VA6

^

cV- \o<

'GO'tìe

sS®6,

■H

Ha^e

f ' ir(A c,S

l
\
:
■

n i

£\P
\V\C.

\

■&&>

^ > eb,a

k

B&i

>

j f c w - - ’■
.B M P {& s

^ JP :
’ <'"


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

f ^ e sS
GW
S ^l

■ "■'

->

si

12

who resigned to become president,
Marine National Exchange Bank. Mil­
waukee, Wis. James L. Roberts, vice
president, succeeds Mr. Carlson as di­
vision administrator in the financial
group. Other promotions announced
include: Richard S. Stam and Robert
Turpin, vice presidents, trust depart­
ment; and John H. Laubscher, as­
sistant vice president, banking depart­
ment; and Robert J. Fridell, Clifford
C. M. BUSS
K. W. D U N C A N
pany, has retired from the board. Rol­ M. Lind and Robert L. Newman, as­
land S. Carlson, vice president, has sistant vice presidents, trust depart­
been named group executive in charge ment.
Irving Trust Company, New York:
of metropolitan banking succeeding
George R. Slater, senior vice president, Peter C. Palmieri has been promoted

Every banker has them—problem loans with seem­
ingly insufficient or unsatisfactorily controlled col­
lateral. And because business will be looking to their
banks more and more for expansion capital, the prob­
lem will be compounded, not simplified.
Douglas-Guardian has been in the business of
uncomplicating inventory collateral for banks and
their customers for over 50 years. We simply bring
our Traveling Credit to the situation in the form of
Field Warehousing. We are doing it every day for
banks just like yours. We would like to work with
you on your current “ problem child.’’
Together we might be able to turn
him into a little angel.

Douglas-Guardian Warehouse Corporation
P.O. Box 52978, New Orleans, La. 70152, Phone (504) 523-5353
Offices in 15 principal cities


N o rth w e s te rn B an ker, March
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

to senior vice president and manager
of the international corporate banking
division. He assumes the post pre­
viously held by Jean D. Zutter, senior
vice president, who is now manager
of the international correspondent
banking division succeeding Ernest D.
Shaw who retired January 1.
Mercantile Trust Company, N. A.,
St. Louis, Mo.: John S. Poelker has
been elected a
vice president of
Mercantile T rust
a n d Mercantile
Bancorporation.
He remains comp­
troller of b o t h
companies. Rich­
ard E. Callahan,
banking officer in
the international
.banking
,.
,
.
j. s. POELKER
depart­
ment, has been appointed to head a
newly-established operations/customer
relations division.
National Boulevard Bank, Chicago:
Irving Seaman, Jr., has resigned effec­
tive March 31 as
chairman of the
executive commit­
tee, chief execu­
tive officer and a
director. His du­
ties will be as­
sumed by Elenry
K.
dent. Mr. Sea­
man, 52, joined
1. S E A M A N
National Boule­
vard Bank in 1961 as president and
chief executive officer. He had previ­
ously been vice president, commercial
department, at Continental Bank, Chi­
cago, where he started in banking in
1 QzL7

United Missouri Bancshares, Inc., ^
Kansas City: R . Crosby Kemper, chair- «
man of the hold­
ing company and
its lead bank, ^ t
United Missouri
i
Bank of Kansas
City, has an- ^
nounced the elec­
tion of G. Lynn +
Mitchelson as ex­
ecutive vice pres-"
ident of both the
G . M ITCH ELSO N
holding company ^
and the bank. He will also be a mem- ber of the holding company’s board of
directors.
A graduate of the University of ^
Kansas with bachelor and master de-

13

WI can
agribusiness <
crossing the street. You’re very likely to
be loaned up seasonally if you have large agribusiness cus­
tomers. That means overline financing, sometimes loan
participation. I think you get a better deal on both with a big
bank like United Missouri. O ur own large correspondent
business means we re not after your customers. We just want
to help you serve them better. If this makes sense to you, my

n:i!1‘^ !,:" ..
S 5 “ °°

united missouri bank
f c j o f K an sas

Joe Henderson. He runs United Missouri’s Agribusiness division.

V

¥■

i


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northw estern

B a n k e r, M arch

1976

14

grees in economics, Mr. Mitchelson
joined United Missouri from Traders
National Bank in Kansas City where
he was first executive vice president,
chief administrative officer and a direc­
tor. At United Missouri his principal
responsibilities will be loan administra­
tion and management duties, working
closely with the chairman and vice
chairman of the board.
Before joining the Traders, Mr.
Mitchelson was with First National
Bank of Kansas City for nine years,
rising from assistant cashier to senior
vice president.
Mr. Kemper also has announced
these 10 promotions: Cyrus E. Ricketts,
executive vice president and corporate
secretary; David D. Miller, vice presi­
dent and trust counsel; Malcolm M.
(Mick) Aslin, vice president and trust
officer; Daniel F. Fox, vice president,

United Missouri Bank of Kansas City;
Stephen M. Godfrey, bank corporate
trust officer; William A. Hann, as­
sistant vice president and pension trust
officer; Rita Abernethy and Shirley
Blacklidge, bank assistant pension
trust officers; Robert M. Maddox and
Mary Lou Heigele, assistant cashiers.
Valley National Bank of Arizona,
Phoenix: Roger A. Lyon, 48, will be­
come president and chief administrative
officer of the bank April 1. As presi­
dent, he succeeds Gilbert F. Bradley,
55, who has been named chairman and
will continue as chief executive officer.
James B. Mayer, 62, currently chair­
man of the board, will remain on the
board and be chairman of the execu­
tive committee.
Mr. Lyon has been associated with
Chase Manhattan Bank N. A., New
York, for 26 years and is resigning his

People you can count on...
i—ó/-i

Norm Fletcher
Iowa

Bob Geiger
North Dakota
South Dakota
Montana, Wyoming

Gaba Kuhn
Minnesota
North Dakota
South Dakota

Stan Grout
Iowa

Here are four people you should get to know. They
represent the St. Paul Hospital & Casualty Company.
Specialists in providing full service credit insurance
programs for a dynamic financial industry.
Like our parent Company, Mutual of Omaha, we are
innovative. Adaptive. And that means service. Which also
means volume and persistency.
Get to know these people. You’ll thank yourself.
Call c o lle c t (612) 854-4515

or write to:
St. Paul Hospital & C asualty C o m p a n y
7850 M etro Parkway, Suite 304
B lo o m in g to n , M in n e so ta 55420
A T T N : Jack Fortner, Vice President, Sales

St. PaulfT)
Hospital & Casualty

A Mutual of Omaha Company
Home Office: Bloomington, Minnesota
DigitizedN ofor
r t hFRASER
w e s te r n B an ke r, M arch
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

ft
Y-

-4

R. A . L Y O N

G . F. BRADLEY

post there as executive vice president,
effective March 31. Mr Lyon started
his banking career with The Chase in
1950. He was named manager of the
correspondent bank portfolio review
department in 1957, moved up as di­
vision executive of the bank portfolio
division in 1966 and was elected execu­
tive vice president in 1972. He is well
known throughout the country in his A
work with the national division serving
*
banks.
Mr. Lyon is treasurer of the Ameri­
can Bankers Association this year. He
served as chairman of the ABA’s ex­
ecutive committee of the correspondent
bank division from 1973-75.
Mr. Bradley has served with Valley
National since 1937, starting his bank­
ing career there as a junior clerk. He
was named president in 1973 and chief
executive last November.
Also, J. Robert White, vice presi­ ■*
dent, has been named to head the
bank’s newly formed public affairs de­
partment. He will be responsible for
directing the bank’s efforts in the areas
of government, community, Indian af­
fairs and social responsibility. Warren
Goodrich, director of corporate com­ V
munications, has been elected a vice
president.

Heads Minnesota independents
Norbert McCrady has been named
executive secretary of the Independent
Bankers of Minnesota.
He succeeds Noel Busch who has *
been elected executive vice president
of the recently chartered Independent
State Bank of Minnesota, a correspon­
dent bank.
Mr. McGrady, association manager
and executive vice president of the 4
consumer finance industries since
1968, was treasurer of Steele County ■<
from 1955 until 1962 when he was the
GOP candidate for Minnesota Secre­
tary of States.
E. Milton Klohn, president of Town
& Country State Bank, Newport, is *
president of the Independent Bankers
of Minnesota.

15

Wel}like you to take
a lo o k

behind th e scenes.

W e th in k th a t knowing your suppliers
makes good business sense. And th a t’s why
we w ould lik e you to v is it th e D eluxe
printing plant nearest you.
There’s a lot more to printing checks
th a n meets the eye. For example, you will
see how we apply all of th e “ working” in­
formation required to “ personalize” each
of the checks. This process is performed,
w ith both speed and accuracy, a t every
one of our 43 plants. And, we’d like you


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

to meet our people . . . from those who open
the morning mail on down to those who
ship those same orders the following day.
T h e n ex t tim e you see yo u r D eluxe
representative, ask him about a tour of
our plant. We
n
th in k y o u ’ll
en jo y seeing
w hat goes on
b e h i n d t h e CHECK PRINTERS, INC.
scenes.
SALES HDQTRS.

•

P.O. BOX 3399, ST. PAUL MN. 55165

STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST

N o rfto w e s fe rn

B an ker, March

1976

16

and other an­
P ROMOTIONS
nouncements have been made by
the following firms:
Amiel Industries of North Ameri­
ca, Inc., Atlanta, Ga.: Andre Amiel,
president, has announced the appoint­
ment of Peter J. Petropoulos as na­
tional sales manager for vending op­
erations, Gerard F. Murphy as nation­
al sales manager and Craig Starti as
product manager at this Atlanta-based
coin and currency handling systems
and equipment company.
Mr. Petropoulos brings 30 years of
experience in coin operations and mar­
keting to the company. He comes from
his own firm, International Sales Mar­
keting and Management Consultants,
Pompano Beach, Fla. Prior to setting
up his own firm, he was affiliated with
American International Marketing
Corporation, Westinghouse Electric
Corporation, Rowe Manufacturing and
Canteen Corporation as national sales
manager; R.M.I. Industries as director

of special services; and Liggett and
Myers Corporation as director of spe­
cial promotions. He has a master’s de­
gree in marketing.
Mr. Murphy joined Amiel Indus­
tries in March of 1975 as product
manager of the AI-665 currency
counter. Previously, he was with
Olivetti Corporation. Mr. Startt pre­
viously was southeastern regional man­
ager for Varian Data Corporation. He
has been with Amiel since May of
1975.
Bank Building Corporation, St.
Louis: Thomas E. Murphy has been
named director of
BBC F in an cial
Research Associ­
ates, the new
name for the real
estate services di­
vision. The divi­
sion’s p r i m a r y
objective is to pro­
vide a compre­
hensive consulting
T. E. M U R P H Y
service exclusively
to the financial client.
Christmas Club a Corporation, Eas­
ton, Pa.: Bryan Bernart has been ap­
pointed vice president, marketing, re­

¡ ■ ■ BB........................................ ...

l

FREE...6 issues of
■ Doane’s Farming for Profit,
Over 800 banks send this leading newsletter to farm customers
each month. It’s filled with facts to help farmers boost income.
They appreciate the information and the bank that sends it. There’s
no better way to show you’re the ag bank in your area. Your attrac­
tive bank heading appears on each issue — and you get exclusive
use in your trade area.

EVALUATE FARMING FOR PROFIT.
Mail coupon or your name and letterhead for six issues . , . Free.
■ YOUR NAME__________________________ TITLE______________
! BANK NAME______________________________________ _________
g

ADDRESS_______________________________________ ____________

■

CITY___________________________
FARMING FOR PROFIT...
...a vital link between
you and your
farm community.

Digitized
FRASER
N o for
r th w
e s te r n B a n k e r , M a r c h
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

STATE________ ZIP_______

IV IE

Doane Agricultural Service, Inc.
8900 Manchester Road
^t. Fouis, Missouri 63144
(314) 968-1000

sponsible for the company’s marketing 1
strategies, product planning and sales. ^
CMI Investment Corp., Madison,
Wis.: Stanley Hill has been appointed
district sales director for northern
Washington, western Montana and or
northern Idaho for CMI Investment
and its largest subsidiary, Continental
Mortgage Insurance, Inc. Before join­
ing CMI, Mr. Hill was with the Federal Home Loan Mortgage Corpora­
tion and Peoples Mortgage Co., Seat­
tle.
Continental Mortgage has opened a
branch underwriting office in Seattle
to serve lending institutions in Wash­
ington, Oregon, Alaska, western Mon­
tana and northern Idaho. The office,
located in the Plaza 600 Building, 600
Steward St., Seattle 98101, is being
managed by Donald Truitt, who has
been an underwriter at the home office
in Madison since 1971.
Diebold Incorporated, Canton, Ohio:
William H. (Bill) McGurk has been appointed eastern
area manager and
Robert A. Hamlin
director of marketing-eastern for
the bank/systems
division. Mr. Mc­
Gurk joined the
company in 1965
as a sales repre­
sentative
for sub­
R. A . H A M L IN
urban New York
sales. Mr. Hamlin joined Diebold in
1947 as sales representative in New
York City and for the past 15 years has
been the eastern bank area manager.
Walter E. Heller International Corporation, Chicago: Edwin J. Reidy
has joined the firm
as vice president,
according
to
Franklin A. Cole,
chairman. M r .
Reidy occupies a
newly - established
officer
position
relating to personnel activities,
according to Mr.
E. J. REIDY
Cole. Before join­
ing the Heller firm recently he was vice
president for organization development
and assistant to the president at Hammond Corporation. Previously he had
been corporate manager of manage­
ment development for Armour and
Company and also served with the
Crane Corporation.

1
■<

^
<
V
^<

*
"
4
*~
^
>J

<
■«
c

*- ‘

*

<
4

w^
\
s
4

Heller... the difference between what
your custom er wants to borrow
and what you are w illin g to lend.
Under today’s conditions, you may find that you
aren’t willing to lend as much as a customer
requests. As a result, you may create cash prob­
lems for established customers or turn away
new business.
When you’re in that situation, think in terms of
Heller and a participation loan. Very simply,
your bank funds the portion of the loan it wants
to extend; Heller provides the difference up to
your customer’s full borrowing capacity on a
secured basis. Then Heller does all the admin­
istrative work on the loan.

HELLERg

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

So you have the comfort of a secured loan
without the cost of handling it. And your bank
continues to render all other bank services to
the customer. Through participations, smaller
banks up to many of the 25 largest commercial
banks in the country are benefiting from Heller's
m ore than 50 years of s e cu re d fin a n c in g
e x p e rie n c e .
Heller help is important to your bank and your
customers today more than ever.
And available right now.

W alter E. Heller & Company 105 W. Adams St., Chicago, III. 60690

New York • Boston • Philadelphia * Baltimore • Syracuse • Detroit
Kansas City • Denver * Atlanta • Miami • Birmingham * New Orleans
Houston • Dallas • Phoenix * Los Angeles • San Francisco • Portland
San Juan PR. Heller services also available through Heller Companies
m Canada and twenty other countries around the world.
Northw estern

Banker,

M arch

19 7 $

18
Lawrence Systems, Inc., San Fran­
cisco: James H. Leonard has been
elected chief executive officer, a posi­
tion he assumes in addition to that of
president of the company. The an­
nouncement was made by Louis E.
Tippet who will continue as chairman
while relinquishing his responsibilities
as chief executive officer to Mr. Leon­
ard.
Mr. Leonard became president of
Lawrence in March, 1975. Prior to
joining the collateral control services
company, he spent 17 years with First
National Bank of Chicago, most re­
cently as vice president and group head
responsible for loan divisions serving
Chicago area business.
LeFebure, Cedar Rapids, 5a.: O. T.
Finley Jackson has been appointed
sales specialist for
the
company’s
automated finan­
cial systems. Mr.
Jackson, who has
over 20 years of
data processing
experience with
firms such as Univac, Litton Auto­
mated
Business
O. T. F. JACKSON
Systems and the

DataStation Corporation, will coordi­
nate activities in the north central and
west coast areas.
NYTCO Services, Inc., St. Paul,
Minn.: Robert J. Deason has been pro„ ^
* m o t e d to vice
president/division
operations m a n ­
ager for the cen­
tral division. Mr.
Deason j o i n e d
NYTCO as a field
representative in
the Atlanta, Ga.,
office in 1959,
was
promoted to
R, J. DEASON
district manager
of the Houston, Tex., office in 1963
and vice president and regional man­
ager in charge of the Dallas office in
1966. He now will be located in the
central division office in Des Plaines,
111.

Also announced was the appoint­
ment of John W. Drew as vice presi­
dent/regional sales for the company’s
Chicago office. A native of Cincinnati,
Ohio, Mr. Drew joined NYTCO in
1965 as a member of the auditing staff.
In 1969 he joined the sales force and
was assigned to the St. Louis office.
Upon the company’s entry into the cat-

You’re in the center
of everything
when you stay Sheraton
and, also, the finest in

KANSAS CITY,
MISSOURI

Prom -Sheraton Motor Inn
SIXTH AND MAIN STREETS
SHERATON HOTELS AND MOTOR INNS. WORLDWIDE

OTHER SHERATONS
• JOPLIN. MO
SHERATONPROM MOTOR INN
3600 RANGELINE AT I 44 AND U.S 71

• WAYNESVILLE FT LEONARD WOOD. MO
SHERATON MOTOR INN
I 44 AND MO 28. OFF 1-66

800 -3 25-3535 MAKES IT HAPPEN
IN MISSOURI, CALL 1-800-392-3500
N o r th w e s te r n B an ke r, M arch

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

tie industry he opened an office in ^
Amarillo.
Also, Robert A. Schwiesow and
Richard J. Otto have joined the staff ^
of this national third party collateral 1
control company and subsidiary of
Space Center, Inc. Mr. Schwiesow pre- •*
viously was with the First National 7
Bank in Council Bluffs, la. He at- <
tended Bellevue College. Mr. Otto is
a graduate of St. Cloud State Univer- •* -j
sity.
United Guaranty Residential Insur­
ance Company of Iowa, Davenport: r
W. H. Gillison, president, has an­
nounced the following promotions: * i
William Y. McKenzie, Jr., from vice i
president to senior vice president, and
W. Reid Wooldridge from property
and claims administrator to vice presi- -*
dent. Mr. McKenzie will continue to *
administer marketing and sales and ^
Mr. Wooldridge will be responsible for
the underwriting and claims depart-,' ■
ments.
|

Record Earnings for
Walter E. Heller Corp.
Walter E. Heller International Cor­
poration reported record net income
for 1975 from
continuing operations (finance and
banking). Earnings from these
o p erations increased 6.1 per
cent to $28.5 mil­
lion, or $2.52 per
s h a r e , for the
year. On the same
basis fourth quarter earnings rose 2.6 per cent to $7.3
million, a new high, or 65 cents per
share.
Total earnings, including net income
from discontinuing (manufacturing)
operations, rose 7.3 per cent to a rec­
ord $30.4 million, or $2.64 per share.
On the same basis, fourth quarter earn­
ings rose 13.5 per cent to a record $8.4
million, or 73 cents per share.
Franklin A. Cole, chairman of the
financial services firm, said net income
from continuing operations was $28.5
million for the year ended December
31, 1975.
Earnings for American National
Bank, Chicago, a subsidiary of Heller,
were $7.4 million, up 19.1% from
1974, establishing a new record for the
bank.

-v
"
^

v1

- *
*
4

<
<

19

Convention
Calendar
March 28-30—ABA Northern Regional
Bank Card Management Workshop, Hyatt
Regency O’Hare, Chicago.
March 30-April 9—ABA National Commer­
cial Lending School, University of Okla­
homa, Norman.
March 31-April 3—BMA Essentials of Bank
Marketing Midwest Extension, University
of Chicago.
April 1-3—ABA/Compfroller of the Cur­
rency Seminar for Chief Executive Offi­
cers of National Banks in Illinois and
Indiana, Marriott’s Lincolnshire Resort,
III.
April 4-6—ABA Midwestern Regional Bank
Card Division Conference, Stouffer’s Inn,
Cincinnati.
April 4-7— ABA National Instalment Credit
Conference, Fontainebleau Hotel, Miami
Beach, Fla.
April 11-14—BMA Commercial Bank Mar­
keting Workshop, Fairmont Hotel, Dallas.
April 11-14—RMA Financial Statement
Analysis, Cosmopolitan Hotel, Denver.
April 20— ABA Board of Directors Meet­
ing, The Greenbrier, White Sulphur
Springs, W. V.
April 20-22—BAI Conference on Bank
Holding Company Administration, Stouf­
fer’s Riverfront low er, St. l ouis.
April 21-23—ABA Governing Council Meet­
ing, The Greenbrier, White Sulphur
Springs, W. V.
April 21-24—IBAA Seminar Workshop on
Bank Ownership, Royal Orleans Hotel.
New Orleans.
April 24—Montana Independent Bankers
Annual Convention, Northern Hotel,
Billings.
April 25-27—BMA Marketing Management
Seminar, Del Webb’s Townhouse, Phoe­
nix.
April 25-28— ABA National Conference on
Real Estate Finance, Fairmont Hotel,
Dallas.
April 25-30—ABA National Commercial
Lending Graduate School, University of
Oklahoma, Norman.
April 25-30—RMA Loan Management Sem­
inar, University of Indiana, Bloomington.
May 2-4— BAI Northern Regional Conven­
tion, Hyatt Regency O’Hare, Chicago.
May 2-4—Nebraska Bankers Association
79th Annual Convention, Radisson Cornhusker, Lincoln.
May 2-5—BMA Marketing Research Con­
ference, Hyatt Regency, Chicago.
May 2-5— BAI Smaller Bank Presidents
Forum, Miami.
May 2-7— ABA National Personnel School,
Rantada Inn, Arlington, Va.
May 9-12—Conference of State Bank Super­
visors, 75th Annual Convention, Broad­
moor Hotel, Colorado Springs, Colo.
May 13-14—South Dakota Bankers Associ­
ation 84th Annual Convention, Howard
Johnson’s, Rapid City.
May 13-16—NABW Rocky Mountain &
W’estern Regional Conference, Hilton Inn,
Albuquerque.
May 16-18—ABA National Marketing Con­
ference, Waldorf Astoria, N. Y.
May 16-18—Nevada Bankers Association
57th Annual Convention, MGM Grand
Hotel, Las Vegas.
May 16-19—BAI Forum for Presidents of
Smaller Community Banks, Dorai Coun
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

try Club, Key Biscayne, Fla.
May 17-19— ABA Northeastern Regional
Bank Card Division Conference, The
Americana, N. Y.
May 19-21—North Dakota Bankers Associ­
ation 91st Annual Convention, Holiday
Inn, Bismarck.
May 20-22—NABW' Northwestern Regional
Conference, Hilton Hotel, Portland.
May 22-25—Illinois Bankers Association
85th Annual Convention, Stouffer’s Riv­
erfront Towers, St. Louis.
May 23-26— RMA Financial Statement
Analysis, Airport Marriott, Chicago.
May 23-26— RMA Financial Statement
Analysis Workshop, Airport Marriott,
Chicago.
May 23-27—National Association of Credit
Management 80th Annual Convention,
New York Hilton.

May 23-28—BMA Essentials of Bank Mar­
keting Course, University of Colorado,
Boulder.
May 23-,Tune 4—BMA School of Bank Mar­
keting, University of Colorado, Boulder.
May 24-25— ABA National Conference on
Urban & Community Economic Develop­
ment. Loews L’Enfant Plaza Hotel, Wash­
ington. D.C.
May 24-27— Association of Registered Bank
Holding Companies 18th Annual Meeting,
Grosvenor House, London.
May 26-28—NABW Lake, Midwestern and
North Central Regional Conference,
Stouffer’s Riverfront Inn, St. Louis.
May 30-June 4—BMA School of Trust
Business Development and Marketing,
University of Colorado, Boulder.
May 31-June 2— AIB Annual Convention,
Chase Park Plaza Hotel, St. Louis.

THREE REASONS

“ 1

why most banks depend on
A

HN1 A
OFFICIAL

C A R G UID E
Q

It is accurate and
up-to-date

Q

Contains all essential
inform ation for
identifying and
appraising used cars

O

Is the Recognized
A utho rity of those
with a business
interest in the
used car
A Regional Edition
for Your Market

Every 30 Days

SUBSCRIPTION ORDER FORM

SUBSCRIPTION
RATES

1 sub.
2 sub.
3
sub.
1640 Westpark Drive, McLean, Va. 22101
4 sub.
5
sub.
Please enter our order for___ ..New n Additional □
6-14 sub.
Annual Subscriptions to the NADA Official Used Car
15-29 sub.
30 and over
Guide, issued every 30 days.
[3 Rem ittance enclosed □ Will remit on receipt of invoice
N am e_________________________________ — — ------ ----------- Make of car handled.
B y --------------------------------------------. P.O. Box .
Street ___________________ _____
Zip Code
State
C it y __________________________

National Automobile Dealers Used Car Guide Co.

N orthw estern

15.00
28.00
39.25
49.25
58.00
11.00 ea.
10.50 ea.
10.25 ea.

Banker,

M arch

1976

20

“The champ,” the
heavy duty automatic
coin counter and wrapper marketed by
Amiel Industries counts five denomina­
tions at 2,100 coins per minute and av­
erages 21 rolls per minute with a mini­
mum of maintenance. The AI-9400
features a solid state visual alarm sys­
tem designed to detect when the paper
is being depleted, incorrect coin set­
ting, misalignment of coins, an empty
hopper, paper failure, and improper
coin feeding due to damaged or foreign
coins. The AI-9400 offers high quality

N A1-9400

ic k n a m e d

Amiel Industries Ai-9400 automatic coin
counter and wrapper.

mechanical engineering and design for
greater reliability.
A companion piece, billed as the
biggest little coin wrapper in the indus­
try for its heavy duty automatic coin
wrapping, is the AI-9100. It has a
throughput of 18 rolls per minute and
is built with advanced solid state elec­
tronics that give long wear, less down
time, greater accuracy and reliability.
The AI-9100 is quiet and compact.
Both machines are available through
Amiel Industries of North America,
Inc., 3000 Clearview Parkway, Atlan­
ta, Ga. 30340.
r iiR E emphasis is on total security
A with Mosler’s lockers, and a new
four-page brochure describes its com­
Northw estern

B an ker, M arch


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

plete locker line, and features Mosler’s
flexible B-width system.
Maximum flexibility and efficiency
are attainable through the modular Bwidth feature which allows intermixing
of the B-SDL, L and BL lockers. In
addition, B-SDL, L, and BL lockers
can be stacked with the B-width cus­
tom safe deposit boxes and with Mos­
ler’s exclusive Rapid-Set boxes.
Mosler Teller Lockers are planned
for the storage of teller cash trays with
additional space for bulk packages.
The Bank Lockers are engineered for
the storage of bulk reserve cash. The
Cash Vault Lockers are designed pri­
marily for collateral storage but can
also be utilized for cash storage.
These products, their specifications,
and available options are described in
Mosler’s new brochure.
For further information, write Mos­
ler, Department PR-035, 1561 Grand
Blvd., Hamilton, Ohio 45012.
t p XCEPTIONAL security and exA-4 traordinary convenience are fea­
tures of Meilink’s new Nightwatch
combination bag and envelope deposi­
tory. It is also available as a bag drop
only. Nightwatch provides proven 24hour protection resisting “fishing” and
“trapping” and carries the Under­
writers’ Laboratories label, as well as
exceeding the specifications and re­
quirements of the Bank Protection
Act.
Among the innovative Meilink de­
sign features are Nightwatch’s side-byside hoppers for flexibility and conven­
ience. The new depository’s totally me­
chanical operation has only three mov-

Meilink’s “ Nightwatch” depository.

ing parts, which eliminates gears, chain
drive and power assist.
For more information on Meilink’s
new Nightwatch combination bag and
envelope depository write: Meilink
Bank Equipment, 3100 Hill Avenue,
Toledo, Ohio 43607.

T EFEBURE Corporation is mar^
keting a new check cashing pro­
tection system consisting of a docu­
ment time-dating device and LeFebure’s Model 2163 surveillance cam­
era.
Each time a store or bank teller
cashes a check, the check is inserted
into the device which stamps the time
and date and automatically activates

LeFebure Model 2163 used in conjunction
with check cashing.

the surveillance camera to take a single
frame photograph of the person cash­
ing the check. This system may also
be used by banks when customers open
new accounts, or make loan applica­
tions and account deposits and with­
drawals.
LeFebure also offers a Grade A
3000 Vault Alarm System featuring a
digital clock. For greater reliability,
and to comply with the latest U /L ap­
proved circuit changes, a digital dock
has been incorporated into the pro­
grammer unit of the LeFebure Grade
A 3000 Vault Alarm System. As a re­
sult, the actual time is now much eas­
ier to read.
LeFebure offers lease programs tai­
lored to specific needs on its complete
line of banking equipment and security
systems. These lease programs are in
addition to the usual direct sales basis.
Leasing is through Circle Leasing
Corporation, a subsidiary of Mer­
chants National Corporation, Indian­
apolis, IN.
Plans offer leasing at prime rate, fair
market plans, and all offer the option
to purchase equipment at the end of
the lease.

21

T h is a n n o u n ce m e n t is n e ith e r an o ffe r to sell n o r a s o lic ita tio n of an
o ffe r to buy the se s e c u ritie s . The o ffe r is m ade o n ly by the P rosp ectus.

New Issue / February 27, 1976

8 0 0 , 0 0 0 Shares

BANCO

Northwest Bancorporation
C o m m o n S to c k
Par Value $1 % Per Share

P ric e $ 4 5 P e r S h a re

C opie s of the P ro sp e ctu s m ay be o b ta in e d in any S tate in w h ic h th is
a n n o u n ce m e n t is c irc u la te d on ly fro m such of the u n d e rsig n e d
as may le g a lly o ffe r these s e c u ritie s in such State.

Salomon Brothers
Bache Halsey Stuart Inc.

The First Boston Corporation

Morgan Stanley & Co.
In c o rp o rate d

Drexel Burnham & Co.

Dillon, Read & Co. Inc.

Blyth Eastman Dillon & Co.

In co rp o rate d

In c o rp o rate d

Goldman, Sachs & Co.

Hornblower & Weeks-Hemphill, Noyes

E. F. Hutton & Company Inc.

In co rp o rate d

Kidder, Peabody & Co.

Keefe, Bruyette & Woods, Inc.
Lazard Frères & Co.

Kuhn, Loeb & Co.

In co rp o rate d

Loeb, Rhoades & Co.

Lehman Brothers
In co rp o rate d

Paine, Webber, Jackson & Curtis

Merrill Lynch, Pierce, Fenner & Smith

In co rp o rate d

In c o rp o rate d

Reynolds Securities Inc.

M. A. Schapiro & Co., Inc.

Smith Barney, Harris Upham & Co.
In co rp o rate d

White, Weld & Co.

Wertheim & Co., Inc.

In co rp o rate d

Dain, Kalman & Quail,

Piper, Jaffray & Hopwood

In c o rp o rate d

In co rp o rate d


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dean Witter & Co.
In co rp o rate d

Shearson Hayden Stone Inc.

Northw estern

B a n k e r, M arch

1976

22

Chicago Bank Plans New Financing;
Elects Joseph G. Lutz as C.E.O.
National
CENTRAL
poration, holding

Chicago Cor­
company for

Central National
Bank in Chicago,
has announced a
program to add
$10,000,000 to its
capital funds. This
program includes
the commitment
of $6,000,000 of
new capital funds
by its major share­
holders. F. H.
Prince & Co., Inc. and entities asso­
ciated with the Regnery family each
have agreed to invest $3,000,000 in
debt or equity of the holding company,
subject to the Central National Bank
in Chicago securing an additional $4,000,000 of subordinated capital debt.
Negotiations are in progress with two
major Chicago banks for that addition­
al financing.
These actions when completed will
bring the capital funds and reserves of
the bank to $42.7 million.
This financing program replaces one
previously announced with a group of
Chicago investors headed by Donald
M. Graham. The new financing pro­
gram was arranged when it became evi­
dent that the initial program could not
be completed within the time available
on a basis satisfactory to the parties in­
volved.
Elect New Officers

Frank E. Bauder, chairman, and
Robert I. Logan, president, advised the
board of their decision not to stand for
re-election to the board of the bank
at the annual meeting in April. In view
of this decision, the board elected Jo­
seph G. Lutz president and chief exec­
utive officer of the holding company
and chairman, president and chief
executive officer of the bank. Mr. Bau-

^
I
r

ANNUAL REPORTS
.
PREMIUM PROGRAMS
SCHEDULING
LOGOTYPE DESIGN
BUDGETING
701-235-5308

CREATIVE GROUP
DIVERSIFIED MARKETING SERVICES

BOX 3052,

Northw estern

ROYAL BLOCK ON THE MALL
FARGO. N O. 58102
Banker,

M arch


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

der will continue as chairman of the
holding company.
Mr. Lutz has served as vice chair­
man of the bank for the past two years.
He joined the bank in 1973 upon his
retirement as Regional Administrator
of National Banks for the Seventh
Bank Region, a position that he had
held for 11 years.
The board of directors again de­
ferred action on the fourth quarter
dividend pending completion of the fi­
nancing program.
Losses

The holding company also an­
nounced that the bank made a special
provision for loan losses of $3.0 mil­
lion in addition to its regular provision
of $700,000 for the fourth quarter.
During the quarter the bank charged
approximately $4.2 million of losses
to the reserve. After giving effect to

these transactions the bank’s loan loss
reserve at December 31, 1975, stood
at $6.5 million, or approximately 1.7%
of the total outstanding loans.
Commenting on the special provi­
sion for loan losses and the write-offs
taken in the fourth quarter, Mr. Lutz
stated: “Our actions reflect a determi­
nation by our directors and manage­
ment to deal with problems in the loan
portfolio as they are identified. The
progress that has been made in im­
proving the quality of the bank’s assets
together with the new capital affords
us the opportunity to return now to a
competitive and profitable posture.”
As a result of the special provision
for losses at December 31, 1975, the
holding company reported a consoli­
dated net loss of $2,570,000 or $2.31
per share for the quarter compared
with a net profit of $203,000 or $0.18
per share in 1974. The consolidated
net loss for the year 1975 was $11,310,000 or $10.19 per share compared
with $3,786,000 or $3.41 per share
a year earlier.

Civil Service Direct Deposit Program
Will Begin in August in Western States
HP HE Treasury Department says the
next federal recurring direct de­
posit program, to cover payments by
the Civil Service Commission, will
start in August, according to the news­
letter Thruput.
Thruput is the monthly newsletter
of the operations and automation di­
vision of the American Bankers Asso­
ciation.
In its February edition, Thruput re­
ports, “The Civil Service Commission
(CSC) will start announcement of the
program in August.
‘CSC makes about 1.3 million pay­
ments a month, averaging $434 each.
The August announcement will cover
North and South Dakota, Nebraska,
Kansas, Oklahoma, Texas, and all
states west.
“Recipients of CSC payments in the
central corridor, including Ohio, Ken­
tucky, North and South Carolina and
Alabama, will be notified with check
inserts on September 1, and all other
states east and north on October 1,
1976.
“Pilot CSC programs will start in
May for Florida and Georgia.
“ The new direct deposit program
will begin as a Phase 11 check system.

EFT is tentatively scheduled for first
quarter 1977.
“A new authorization form, SF1199A, will be used for the CSC direct
deposit program and for most of the
federal recurring payment programs to
be started later. The major difference
in the new form is inclusion of the re­
cipient’s claim number and identifica­
tion of the program agency.
“Treasury plans to mail to financial
institutions additional updates to its
‘green book’ procedures guide in midMarch, including details of the CSC
program.
"Since the CSC program will start
at different times in different sections
of the country, initial supplies of new
authorization form SF-1199A will be
mailed to financial institutions (at their
check-receiving address) about 30
days before the program starts in that
section. Additional forms will be avail­
able through the U.S. Government
Printing Office, Washington, D.C., af­
ter July 1.
“A good initial sign-up by CSC re­
cipients is anticipated. An estimated
50% of eligible recipients are expected
to opt for direct deposit during its first
month.”

22A
>N

% offer a
free”checking account...

doesn’t mean you have to
give it away.
When your bank gives away free
checking, you are giving away profit.
There is a better way. BanClub.
According to the Unidex Report on
Service Packages, 34% of a bank’s
customers would consider changing banks
. . . for a package of services that costs
$3.00 a month and includes free, unlimited
personal checking. BanClub is such a
package. It includes $10,000 accidental
death insurance. BanClub Magazines that
offer national discounts, special
purchases and travel opportunities.

A free Tax Saver® Checking Account.
(That is a checking account that helps
your customers remember and get all the
tax deductions that are rightfully theirs.)
And free personalized Tax Saver checks.
In less than 30 days, you can offer your
customers BanClub . . . a package of
services which your competitors cannot
duplicate . . . a package of services so
valuable to customers that over 1,000,000
are now paying $3.00 a month for it . . . a
package of services so profitable to banks
that 860 have already chosen it.

Financial Institution Services, Inc.
Administrator,
725 Melpark Drive
Nashville. Tennessee 37204

NWB

Gentlemen:
Please send me more information on how
BanClub can work for our bank.

Bank’s Name
Address

City

State


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N o rth w e ste rn B a n k e r, M arch 197 6


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Being synergetic is the briefest way of saying that we
work together smoothly.
We are a registered bank holding company of­
fering diversified financial services in the areas of
commercial banking (Jackson State Bank & Trust,
Maquoketa, Iowa; First Trust and Savings Bank,
Wheatland, Iowa), consumer finance (Morris Plan),
leasing (LeaseAmerica Corporation), venture capital
(MorAmerica Capital Corporation) and commercial
mortgage financing (MorAmerica Mortgage Com­
pany.) We serve the nation.

MorAmerica Financial Corporation
Peter F. Bezanson, President
200 American Building
Cedar Rapids, Iowa 52401
AC 319-363-0261


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22D

Opens M ini C o m puter
C enter in W aterloo
FORMAL opening of a new mini-computer center
A
was held in Waterloo last month by Banks of Iowa
Computer Services to serve northeastern Iowa
customers. Area bankers were invited for a special
demonstration and reception.
The remote processing center is similar to the one
that is operational in Des Moines. Both facilities are
linked to the main processing center in Cedar Rapids,
where the new IBM 370/Model 158 has an integral
memory storage of over one million characters.
Under the system, banks prepare work for processing
and delivery to BICS Waterloo facility by overland
courier. BICS prepares the work for computer
processing. Cards are key punched from source docu­
ments, and MICR items are read and captured by an
IBM 1419. Data is sent to Cedar Rapids by telephone
lines where work is posted and master files are updated
for each participating bank. After the information is
prepared on computer disks, it is returned to Waterloo
for processing between midnight and 5:00 A.M. Items
and a print-out are returned to each bank before the
bank opens to the public.
Joe Phernetton, president of BICS, stressed that the
new facility can offer an additional plus to participating
banks by providing a wide range of services to
corporate customers.

HOSTS included Bill McKinley, exec, v.p., BICS, and F.
Forbes Olberg, pres., Banks of Iowa, Cedar Rapids.

Electronic Banking
B enefits to Increase
Tt/T ORE widespread use of electronic banking sys■*-*-*- terns eventually will result in reduced service
costs, elimination of most “paper” banking transac­
tions, and greater convenience for the customer, a Con­
tinental Bank senior vice president said in Chicago last
month.
William D. Plechaty, who heads up personal banking
services at Continental, told a meeting of financial
executives that electronic funds transfer systems are
“an economically-attractive method of making our
services more convenient for our customers.”
Mr. Plechaty said the expected increase in use of
computer-linked terminals will make it possible “to
reduce or eliminate most of the paper forms used at
teller windows today. Through-the-wall and drive-up
automated tellers will also be increasingly employed to
speed transactions and increase customers’ accessibi­
lity to our services.”
Mr. Plechaty said the sharing of electronic systems
by banks, savings and loan associations, and other
financial institutions also will facilitate the establish­
ment of two to five national debit-card systems over the
next few years.
“The communications network needed for national
check guarantee already exists in the form of the
Master Charge and Bank Americard national creditauthorization system s,” Mr. Plechaty said. “These
systems are with us permanently and will continue to
grow.”
N o rth
e ste rn B a n k e r, M arch 197 6
Digitized
for wFRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Pat and Jack Hix, pres., First Nat’l., Waverly, visit with Mary
and John Mangold, sr. v.p., host bank.

IBM 1419 Reader-Sorter is explained by Ed Kadera, sr. mktc,
off., BICS, to Bill Wilson, exec, v.p., Oelwein State Bank.

H

23

“Look, I just got a divorce. The judge
gave the house to my wife and the
payments on the new kitchen to me.

There’s no way
in the worid
I can pay
back the
loan

Insure your home improve­
ment loan portfolio against
every conceivable loss
including divorce,
personal bankruptcy,
unemployment and
extended illness.

t.

(
f
i

wiSBiMtimm

^

.V „

■

3

307 N. Michigan Avenue
Chicago Illinois 60601
312/263-2375
America's No. 1 insurer o f home improvement loans

Vi"

* ^ %\
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

■•

‘'

V

',; "
v* - ■
- .. ;

As the world’s largest
private insurance
source for home
improvement loans,
Insured Credit
Services offers this
guaranteed
protection to over
1,000 leading
banks. For maxi­
mum profitability
and complete peace
of mind on your HIL
portfolio, call or write
William F. Schumann,
President, for details.

24

INDIVIDUAL BANKS
COMMITTED TO MUTUAL GROWTH

The Continental
Correspondent Community
Portfolio Advisory
Service
• Expert Analysis • Timely Evaluations
• Profitable Recommendations
• Continuous Follow-Up
Where correspondents share
a banker’s approach to
in vestm en t op p or tun it ies.

N orthw estern

Banker,

March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

25

Bond and Investment
Survey
* T\yr ORE THAN half of the community bankers
I tJ. responding to a special survey expect earnings to
improve in 1976. They also anticipate increased loan
✓ v demand, both real and to offset inflation costs;
tax-exempt bonds continue to be of prime interest to
*“ most of them, and correspondent banks continue to be
K their principal source of investment advice.
These and other details were learned in the
N orthwestern B anker ’s Annual Bond and Investment
Survey among selected community banks of varying
*■ * sizes in upper midwest and mountain states. A
A summary of answers to the several questions follows:
*

Question 1
Q. 1 Do you anticipate earnings o f your bank to be up
or down this year, compared to 1975, and to what
, v extent?
Ju st over half (55%) expect earnings to improve,
* while another 36% look for earnings to be on the same
level, and 9% look for a downward trend in earnings.
The factor of increased costs and depressed income

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Q. 1. Do you anticipate earnings of your bank to be up or
down this year, compared to 1975?
Up

from some investments will keep net from approaching
its 1975 level, in the opinion of several respondents.
Also, several bankers from Minnesota called attention
to the unfavorable 8 % usury limit under which lenders
in that state must operate.
Projections for earnings increases ranged from about
5% to 22%, with decreases generally expected to run
about 5%. Here are selected responses to the first
question regarding earnings outlook:
Northw estern

Banker,

M arch

1976

26

“ keep investments short until rates improve.”
Robert C. Conrad, president, Sidney National Bank,
Sidney, Nebr., deposits $11 million: Profits will be up
slightly as a result of movement of Federal Funds into a
combination of Government and Municipal Bond
securities.
Robert S. Ross, president, City National Bank,
Shenandoah, la., deposits $20 million: I would guess
that our deposits and footings will be up a bit, but with
interest rates in their current trend I would anticipate
earnings about the same. Would expect a very modest
increase in investments.
Harold R. Deitemeyer, president, First National
Bank, Beatrice, Nebr., deposits $26 million: Earnings
up 13%. Demand deposits up moderately-. Time
deposits up 8%. Interest rates on loans to remain firm.
Loan demand strong.
Ned K. Job, president, Iowa State Savings Bank,
Knoxville, la., deposits $21.5 million: In January,
1975, we took advantage of the favorable bond market
to sell some of our securities that were producing
relatively low coupon income. The proceeds from the
sale of these securities, along with additional funds
obtained from deposit growth, were invested in the
August and September Treasury offerings of 8 lA and
8V2. This reinvestment will increase our 1976 earnings
by 12%. We will probably reinvest our 1976 taxable
securities that mature during the year into the
municipal bond market.
H.
B. Schelle, president, Tri-County State Bank,
Chamberlain, S.D., deposits $16.8 million: Gross
earnings up, net to remain about the same. We are
going to continue our policy of staying short in both
municipals as well as U.S. securities. Will take less
income to retain quality.
C.
W. Berg, executive vice president, State Bank of
Faribault, Minn., deposits $30 million: While income
from Governments will probably go down, we
anticipate earnings on loans to increase as some lower
rates pay out and are replaced by higher rate loans. We
intend to continue to replace maturing municipals and
governments with like issues to ride through the ups
and downs.
W. S. Morgan, president, First National Bank,
Pipestone, Minn., deposits $30 million: The usury rate
in Minnesota is 8% and if the legislature does not grant
us some relief, our earnings will continue to go down.
Our investments will be short term and will not exceed
the amount of maturing securities in 1976.
Lyle F. Jacobs, president, First National Bank,
Akron, la., deposits $9.6 million: At the present time
our loan to deposit ratio is 34%. We would like to
increase this by an increase in farm loans and town real
estate loans. We will sell U. S. Governments as funds
are needed.
M. F. Chevalier, president, Citizens State Bank,
Postville, la., deposits $12 million: We expect earnings
to decrease, with interest costs increasing, as more and
more customers keep their surplus funds in savings.
The fed fund market will not produce much income, and
low short-term rates mean less income. Increased loans
will help some but probably not cover all of the

N o rth w e s tern Ban ker, March
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

increased costs. Since we have about two-thirds of our
deposits in loans, we must keep a sizable portion of our
other funds in short-term investments and are at the
mercy of current interest rates. Should we have any
surplus funds this year we would plan to keep
investments short until rates improve.
Rodney P. Vandeberg, president, First National
Bank, Falls City, Nebr., deposits $24.7 million: Due to
pressures on our gross profit margins brought about by
more and more deposits going into the time and savings
categories, coupled with continued rises in general
operating expenses, I feel all of banking is faced with a
challenge it has not faced in many years. We are no
different than the merchant whose gross profit margins
go down with expenses going up, except he does have
some opportunity to go up on his prices while we are
pretty well controlled by current money market rates.
We will see this profit squeeze enter many banks in
1976. I believe the only solution is for us to do the very
best job we can in the area of asset management,
controlling of costs and charging for our services.
Question 2
Q. 2 W hat do you anticipate your bank's loan demand
to be in the months ahead, compared to 1975, for
specific areas such as instalm ent lending, ag loans, real
estate loans, commercial loans?

In each of these four loan categories an expected
increased demand was first choice, followed closely by
those expecting loan demand to remain about the same
level as 1975, while only several banks expect a drop in
loan demand. All banks responding to the survey do
not make ag loans, and some choose not to become
deeply involved in real estate lending; consequently,
each category of loans did not have the same number of
responses. Of the total replies, the following chart
shows the results:
Loans
Up
Same
Down
Agric.
50%
48%
2%
Comm.
59%
39%
2%
Real Est.
54%
40%
6%
-Instal.
60%
40%
The usury rate limitation of 8% in Minnesota was
again mentioned as a limiting factor by respondents
from that state. If the 8% limit is increased by the
Minnesota legislature this year, several Minnesota
bankers replying to the survey see an immediate
increase in residential and other real estate lending.
In general, most of the bankers replying expect a
steady to increased loan demand based on continued
recovery of the economy into 1976, as well as dollar
totals being greater to offset inflationary costs in
normal loan requirements. Instalment loans are
expected to climb in some cities as customers loosen up
on purchases due to greater optimism in the outlook.
The market for car loans is clouded because of the
continuing high prices for cars making buyers think
twice.
Several banks mentioned their anticipated loan
increases to take care of commercial and residential

27

“tax exempt interest more important this year.”
construction needs —not only for delayed projects, but
v- also for new volume as people move back into this
' 'market.
► Marvin R. Campbell, president, Citizens State Bank,
Brainerd, Minn., deposits $30 million: We anticipate
►> loan demand to be rather heavy in the real estate area,
posing problems in taking care of our customers in view
of the usury rate in Minnesota. We do not have any
7 vgreat volume of farm loans so no change is anticipated
in this area, although the consumer loan area should
■- continue to increase as it has over the past few years.
Richard O. Wold, president, First National Bank,
” Grand Forks, N.D., deposits $70 million: We expect
installment loans to be up 13% by mid-year and real
- estate loans up 9% by mid-year, with both those totals
‘doubled to 26% and 18% by year-end. We anticipate
commercial loans to remain steady to mid-year, then
show a 13l/2 % increase by year-end.
► Joe H. Gronstal, president, Carroll County State
Bank, Carroll, la., deposits $19 million: Total loans are
up 20% over last year at this time. Each category of
loans has increased about the same percentage. We
expect the increase to level off at about 25%.
Tom R. Smith, president, Fidelity Brenton Bank &
Trust Co., Marshalltown, la., deposits $42 million: Our
loan demand stays about the same. We have allocated
extra funds in 1976 to instalment loans and commercial
loans. Our loan to deposit ratio is currently 75%. We
propose to reduce that to 70% by year-end.
Peter M. Graff, president, McCook National Bank,
McCook, Nebr., deposits $31 million: We anticipate an
„ increase of about 10% in loan volume in 1976. We
anticipate very little change in instalment and commer*■ cial lending, but anticipate that livestock and farm
operations will increase about 15%.

because of current low return on investments. They are
keeping an eye open to trends in the market, waiting for
any upward change in rates that might occur later in
the year and keeping such funds as liquid as possible
for a later move into more profitable avenues.
The majority of respondents mentioned short-term
Treasuries and Governments. Mentioned second most
frequently were tax-exempts, then agencies, with fed
funds running close behind. All referred to their
intentions to distribute a good share of new funds into
various loan categories, especially sh o rter-term
instalment loans.
Question 5
Q. 5 Is tax-exem pt interest o f importance to you at
this time? W hat are your plans for purchase of
municipal bonds or for m odifying your present
municipal holdings?

Of the total replies, 62% said they are going to keep
their municipal holdings at the same level or are
interested in possible purchases; 27% definitely plan to
increase their municipal holdings to some degree, and
11% said tax-exempt holdings are not of importance to
them at this time or plan a reduction in tax-exempt
holdings.
Q. 5. Is tax-exempt interest of importance to you at this
time? What are your plans for purchase of municipal
bonds or for modifying your present municipal holdings?
In c re a s e M u n ic ip a ls

H o ld s a m e fo r n o w

P la n r e d u c tio n

*

Question 3
Q. 3 A re you m aking or do you plan to make real estate
*■ loans? I f “Yes, ” on what basis [m aturity and rate]?
Of the total responding, 74 % said they are making or
plan to make real estate loans, and 26% said they are
not making such loans or will hold off for the present
time.
Maturities are centered around the 20 year mark at
_ 9% , with variances up to 25 years in a number of cases,
and downward in a few to as low as even 10 years at
►9%. In most cases where 10% to 20% down payment is
required the interest rate is 9%, with an occasional
8 V2 % rate. As down payment decreases and maturity
* lengthens, the rate or point total required increases.
K

Question 4
Q. 4 In view of your anticipated loan demand, how do
you plan to invest your bank's available funds,
including your time CDs and regular savings?

Because of varying methods of measuring the term
v “ available funds’’ and measuring their distribution, no
attem pt was made to commit these replies to a chart.
However, the vast majority or respondents, regardless
► of what method they selected for these excess funds,
stress their intent to keep such funds short-term

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H

6%

Many of those offering comments indicate they are
interested in tax-exempts and have a continuing pro­
gram calling for re-investment of rollover funds on a
fairly well established percentage basis. The most fre­
quently mentioned range was 16% to 20% of assets in
municipal holdings. A number of these bankers said
they have already rolled over 1976 funds into new
municipal holdings and will not have further purchases
until later in the year or next year. Typical comments
were these:
H.
C. Messerer, president, First National Bank,
Cedar Falls, la., deposits $29.3 million: Our bank has
in the past six months increased our holdings of taxexempts on a 15-year laddered maturity basis, and we
will continue to be moderately active in the high grade
municipal market.
Ned K. Job, president, Iowa State Savings Bank,
Knoxville, la., deposits $21.5 million: Tax-exempt
interest will become more important to us this year
than it was in 1974 and 1975. The corporate tax change
in 1975 relieved the pressure on our need for tax-exempt
income; however, in 1976 we will start purchasing
Northw estern

B anker, M a rth

1976

28

“ 1976 goals are primarily liquidity and quality.”
municipal bonds to provide additional tax-exempt
income in 1977 and 1978. We will probably increase our
ownership of 5 to 10 year municipals by 15%.
W. J. Heimerman, senior vice president, North­
western National Bank, Sioux Falls, S.D., deposits
$250 million: Our policy has been quite selective to date
and we will continue our buying program on the same
basis. Our projections are for an average net increase in
holdings of 7% over last year.
Peter M. Graff, president, McCook National Bank,
McCook, Nebr., deposits $31.2 million: Yes, it is of
importance to us at this time. We carry approximately
20% of our total assets in municipal holdings; but,
except for rollovers, do not intend to increase our
holdings in municipals.
W. S. Morgan, president, First National Bank,
Pipestone, Minn., deposits $30 million: Our major
investment portfolio is in municipals. We do not intend
to buy any further municipal bonds in the year 1976.
Marvin R. Campbell, president, Citizens State Bank
of Brainerd, Minn., deposits $30 million: Tax-exempt
interest is of great importance to us since we carry
approximately $4 million of these securities at this
time. However, we are staying away from purchases at
this time because of the market, anticipating an
increase in these rates as previously indicated.
Anonymous, deposits $12 million: We have an ample
supply of tax-exempt bonds at this time, so it is not of
major importance to us. If rates strengthen again, then
we will sell our large city municipals bonds that we
have in our portfolio and concentrate on municipal
bonds in the rural areas of the midwest states.
Question 6
Q. 6 A re you planning now, or at any time this year, to
capture profits in your investm ent portfolio? W hat
kinds o f investm ents are you considering selling to
capture these profits?
A total of 56% replied “ No” to this question, 29%
said “ Possibly” and 15% said “ Yes.” In the latter two
categories, the selling off of Treasury securities and
agencies were mentioned most frequently. Here is a
sampling of comments from respondents:
“ I have already done so and at a profit. I sold low
coupon investments at a profit in January ’76.”
“ Based on action already taken, we are letting large
public fund CDs run off and selling some governments
and agencies at a profit in present m arket.”
“We do not plan to capture profits since we are
usually more interested in pushing income into future
years. However, we might give this some consideration
later in the year if our profit picture does not come up to
expectations.”
“ As a normal policy our bank does not actively trade
in the market to generate capital gains and/or loss
years. Rather, we attem pt to keep our portfolio on a
spaced maturity basis, giving us a relatively stable
income annually on these investm ents.”
“ If, during 1976, we sense the economy beginning to
stage a stronger recovery than is now apparent, we will
take profits in our U. S. Government securities in
anticipation of a less expansionary monetary policy by


N o rth w e s tern B an ker, March
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

the Fed. The funds obtained from profit taking would
be kept in short-term securities with higher interests
rates anticipated in 1977, for reinvestment.”
“ Seems pointless to sell, take profits, pay taxes
thereon, and be unable to reinvest the proceeds as
well.”
4
“We will consider selling any of our securities if the
profits are available to be offset by the sale of less
desirable securities, which in some instances represent^ <
losses. In other words, we are looking for off-set profits
to take care of improving the quality of our bond ^
portfolio.”
Question 7
Q. 7 W hat do you consider to be major goal of your
bank's investm ent portfolio this year?

Most bankers mentioned a mix of two or more goals
for their investment portfolio but the ones mentioned
first in practically all cases were liquidity and quality.
These were followed by the desire this year to stay
short in order to take advantage later this year of
anticipated better rates which would improve yield. A
sampling of comments reflects these purposes:
Richard O. Wold, president, First National Bank,
Grand Forks, N.D., deposits $70 million: To lock in
liquidity for 1977 and have loans and municipal
securities of approximately 75-80% of deposits.
Continue to upgrade quality and achieve increased
earnings.
H. L. Thorndal, president, Bank of North Dakota,
Bismarck, N.D., deposits $400 million: Switch to
better trading securities. Increase overall yield,
probably by a slight increase in maturities.
Alfred C. Nowaczyk, president, Bank of Bellwood,
111, deposits $29 million: To provide us with the highest
rate of return possible, while maintaining normal
liquidity and a ladder of maturities out to seven years. Anonymous, deposits $58 million: To meet pledging
requirements for public funds and maintain a high
degree of liquidity.
Ronald R. Jenkins, vice president and cashier,
Commercial Bank, Mitchell, S.D., deposits $46 million:
Maintain our liquidity primarily. We intend to
re-invest in A rated or better bonds, GOs from the
midwest; and no east coast urban areas.
Minnesota, deposits $12 million: To try to maintain
our present return on bonds, if possible, while rolling
over about one-fourth of our portfolio. We plan to do
this by waiting for bonds at a somewhat attractive rate
that extend out from six to 10 years. We can afford todo this, as nearly 80% of our bonds mature within the
next three years.
Tom R. Smith, president, Fidelity Brenton Bank &
Trust Co., Marshalltown, la., deposits $42 million:
Stay short and be able to lengthen the portfolio when
rates strengthen.
Robert W. Stafford, president, First National Bank,
Ames, la., deposits $41 million: Maintain quality.
Keep maturities short while rates appear to be
declining. Nevertheless, we expect to increase yields
and look for higher rates by fall.

29

“timing important in achieving above-average results.”
Question 8
Q. 8 On whom do you rely for principal advice about
v y o u r b a n k 's in v e s tm e n t p o r tfo lio —co rre sp o n d e n t
* bank, investm ent firm [or advisor], own judgm ent,
v other?

Correspondent banks are relied on for advice by 68%
*■of the bankers taking part in the survey, with this
service ranging from periodic consultation to profes> sional handling of the portfolio. Ultimately, the
>individual banker must make his own decision, based
on advice solicited from outside sources. Most
*■ respondents stressed this, while 47% emphasized that
the investment decisions made are entirely their own.
Q. 8. On whom do you rely for principal advice about your
bank’s investment portfolio?
C orrespo nde nt Bank

In v e s tm e n t Firm or A d v is o r

Several respondents noted that they belong to multi> bank holding companies and investments are handled
as part of their groups.
K A second part of the same questioned asked, “ Is your
investment portfolio computerized?” and 88% replied
in the affirmative. Commenting on the advantages of
this computerization, some of the bankers said:
*
“ Our correspondent does it at no cost (offset by
'f - security orders). It gives us more information than
older record keeping methods.”
“The printouts provide an easy and quick analysis of
r our investment portfolio, assisting in investment
decisions. We particularly appreciate the average
maturity and average rate of return in each category.”
“ Monthly pricing of our entire portfolio, accurate
information on amortization, accretion, daily interest
accruals, maturity of investments by years.”
“ Periodic pricing and interest accrual and premium
amortization; inventory of holdings and maturities,
and analysis of locations and ratings.”
One banker, whose portfolio is computerized, simply
* replied “ None.”
General Comments
Several bankers offered these general comments at
the conclusion of the survey:
Rodney P. Vandeberg, president, First National
Bank, Falls City, Nebr., deposits $24.7 million: Wide
swings in bond prices and yields create great problems
► in portfolio management. During periods of low yields
it is always tempting to improve yields by lengthening
v maturities in order to cover the ever increasing costs of
>.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

deposits and operation. One must learn patience and
that continuing cycles bring about those opportunities
for bank investments.
Harold R. Deitemeyer, president, First National
Bank, Beatrice, Nebr., deposits $26 million: Quality is
of extreme importance in the area of tax-exempts due to
the problems of New York City, etc. With interest rates
also down, it is difficult to locate adequate yields in the
short term to cover short term deposit liabilities.
Peter M. Graff, president, McCook National Bank,
McCook, Nebr., deposits $31 million: I think it is
important to keep in mind the serious fluctuations in
interest rates and not be stampeded into unwise invest­
ments at a time when the return on investments is not
suitable, as compared with the rates the bank is paying
on savings and time certificates of deposit. The first
criterion is the quality of the investments and the
necessity of constantly reviewing quality so the inte­
grity of the bank’s investment porfolio can be
maintained.
Marvin R. Campbell, president, Citizens State Bank,
Brainerd, Minn., deposits $30 million: The problem of
managing a portfolio adequately today is very difficult,
especially since this area of the bank has not had the
attention which it justly deserves. I am sure that this
must change in the future as we recognize the problems
that develop as a result of purchases which were not
ideal and the economic conditions that affected bonds
which were accepted as gilt-edged. I think that all chief
executive officers concerned in this area of banking,
especially in smaller banks, will have to give more
attention to this very important function of the bank as
it relates to liquidity, soundness of the bank, and
profitability.
James E. Hansen, president, Merchants & Miners
State Bank, Hibbing, Minn., deposits $26 million: The
country banker is generally too busy to spend much
time (on his investment porfolio) and does not have the
total expertise in the field, so I personally depend on
this help (correspondent bank) and the reports give
complete and concise answers.
Robert W. Stafford, president, First National Bank,
Ames, la., deposits $41 million: Inflation must always
be considered. Some longer term commitments must be
made, and marketing timing is important in achieving
above-average results.
M. F. Chevalier, president, Citizens State Bank,
Postville, la., deposits $12 million: With the changing
economy we find it very difficult to chart a course. As
our overhead continues to increase, it is even more
necessary to work closely with our portfolio, not only to
maximize earnings, but also to analyze the credits
involved.
W. J. Heimerman, senior vice president, Northwest­
ern National Bank, Sioux Falls, S.D., deposits $250
million: We still feel there will be a demand for funds in
the instalment and commercial loan areas and
consequently expect to continue an investment strateBONI) AND INVESTMENT SURVEY . . .
( Turn to page 48, please)
N orthw estern

B a n k e r, M arch

1976

30

O

W o rk in g to g e th e r

mm

Jim Howard, Vice President
O ur man for Iowa, Nebraska,
Wyoming, Montana and

,he

as

It's the way we do business best: your
people getting to know ours, learning about
our expertise, building trust. It simplifies
business. And the world of fixed income
securities — municipals, Ginnie Maes,
governm ents — is a complex one. A big
reason we're a leader is because our people
are knowledgeable experts — some of the
best in the business. Men who believe in
straight talk. And that's the straight of it. If
you'd like to know more about us, call
our man for your state, or ask him to send
you our current annual report.

HIBBARD, O'CONNOR & WEEKS, INC
INVESTMENT BANKERS
Tenth Floor, 1300 Main Street, Houston, Texas 77002
Phone: 713/224-9664 Toll-Free 1-800-231-3566
Houston
New York

N orthw estern

Banker,

M arch


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

The
MUNICIPAL B|
of 1975!

By BRENTON W. HARRIES
President
Standard & Poor’s Corporation
New York, N.Y.

U

P UNTIL last year the municipal bond market was a rather little
known part of finance as far as the general public was concerned.
Oh, yes, we had seen the unfortunate antics of some unscrupulous bond
dealers in some southeastern cities, but actually the market was
regarded as fairly smoothly running in an orderly fashion.
And then the bombs started to fall!
The first bomb? On February 25, 1975, a major state agency of
(
New York —the Urban Development Corporation —defaulted on
$105 million of notes. It was a serious mistake on the part of the
Governor and the State Legislature to permit this to happen. Credit is a
fragile thing and the loss of investor confidence in New York, started
by this note default, has been devastating. It has severely impacted
very fine and well executed programs of construction for essential


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

32
facilities such as housing and schools.
The New York State Housing Fi­
nance Agency, probably the best
run agency of its kind in the country,
has seen the market for its notes, which
it uses only for construction, not long
term financing, disappear. Each month
we see a replay of the “perils of Pau­
line” as our state officials scramble to
repay maturing notes.
This agency problem has poured
over to affect other states. Massachu­
setts, particularly, has also been fore­
closed from the national bond market,
and its Housing Agency faces monthly
traumas, even with the assumption by
the State of ultimate repayment of the
notes.
What is it like when you can’t bor­
row? . . . nobody will lend you money?
. . . and you have maturing short term
loans coming due that can only be met
by borrowing?
inability to repay short term debt
has been the cause of nearly every ma­
jor credit collapse in recent times:
Penn Central and W. T. Grant initial­
ly defaulted on short term debt be­
cause their borrowing capability disap­
peared.
Y

The second bomb? New
York City’s inability to bor­
row, lack of cash flow. Our
credit ratings attempt to measure abil­
ity to repay debt. An intregal part of
this analysis is a judgment as to the
ability to borrow. In the case of the
City and New York State agencies,
they lost the ability to borrow to meet
maturing short-term debt. This makes
ROBERT J. KIRKE, P res.

the problem of default on short-term
notes an immediate and constantly re­
curring need. Normally, borrowing is
for capital improvement, and I empha­
size that in the case of the City the bor­
rowing was for debt repayment, and
inability to borrow triggers immediate
default.
It was on April 2 of last year that
we suspended our rating on New York
City’s bonds. This came about after
a routine check on the City came up
with startling answers to the following
two questions which were put to the
Controller’s office.
1. What is your cash shortfall for
the next days? Answer: about $2 bil­
lion.
2. If you husbanded all your re­
sources, did not pay any of your bills
and applied all your revenues first to
the payment of debt service, and you
couldn’t borrow from the banks, would
you have enough money to meet debt
service? Answer: no.
We had been watching closely the
disintegration of the underwriting ac­
count which historically had bid for
New York City’s bond and notes. We
saw drop outs. No big west coast
banks. No Chicago banks. No major
New England banks. The New York
banks were being left to go it alone
with whatever dealers could continue
to sell Cities. We watched the animos­
ity, distrust, and suspicion building be­
tween the banks and the City, and the
numbers — the numbers were just too
big.
We became convinced that the
banks might take a walk. They had
proved they could do it in the matter

TH O M A S L. WORMLEY, E x ec. V. P res.

^ haw, I f (PermotI

&

MUNICIPAL BONDS EXCLUSIVELY
Underwriters and Distributors
of
G eneral M arket M unicipal Bonds
and Industrial Revenue Bonds
518 Stephens Bldg.
DES

Northw estern

B an ker, March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M O I N E S ,

1976

Phone 515—243-6119
IO W A

50309

of the Urban Development Corpora-< *
tion. We decided that the situation had
reached a point where default on a '
note issue or a failure to make a bond r
interest payment could be more real
than imagined, because of inadequate
cash flow. We, therefore, suspended ^
the bond rating.
' ^
The third bomb of 1975? "
Regulation of municipal <bond marketing. Long before
the cash flow problems of New York
City surfaced, regulation of municipal/*
bond marketing was in the works. Mu­
nicipals had been specifically exempted from the 1933 and ’34 Acts, and for
almost 40 years there really was no r
need for SEC regulation. But then
some bad boys came on the scene with -<
boiler room, fraudulent selling prac-' ‘
tices, and fouled up a fine business. Af­
ter it was apparent that regulation was
imminent, there were further delays in «
framing how dealers would be regu­
lated because banks are involved in
underwriting and distributing m unici-J/
pal bonds, and other government bank
regulators had to have their say.
>The event occurred in June when
President Ford signed the regulation
bill into law, and we now have a self
regulatory body writing rules of busi­
ness which will be enforced by the Se­
curities and Exchange Commission. I /
don’t mean to imply that regulation by
itself is bad; what is bad is the timing
of its arrival on the scene just as we
have the greatest loss of investor con- *
fidence in municipals in the past 40
years. The dealers don’t know how the +
rules will affect them and they are un- + \
easy. What effect could it have on local
issuers? Well, I’ll discuss disclosure re­
quirements in a moment, but let me x ■
quickly comment that successful mar­
keting of municipal bonds, whether
they be Norfolk, Virginia, Minneapolis </
or Denver depends upon a vibrant,
well financed, group of professional +
bond underwriters willing to risk their
capital by bidding for issues with the *'
hope that the bonds can be distributed
profitably to the investing public who.
in turn, will be pleased with their pur- ^ s
chase and the issuer will meet the re­
payment requirements on time. If regu- A
lation unknown vet becomes heavily .
onerous, if profitability disappears,
dealers will find other uses for their
capital than b'dding for municipal
bonds and the amount of underwriting
capital available will shrink. Issuers ^
will not get bids and socially needed
facilities won’t get built.
■*

not-

j

mms

lfm as s w

FNMA

»¡*

»

FLB-29
?» té» «

%»NNALEE FELTON

gj , EDNA SHERWOOD

WMB

i d
B

a r .

IS ^

..

;. «

âmâÈmÊÈÈÊÈÈÈÈM

We make service calls
It’s simple enough to hook up a wire desk and direct
lines to money markets and call yourself a bond depart­
ment, but good service is a skill that comes only from
experience.
We’ve got experience.

We’re primary and secondary dealers in govern­
ments, agencies, municipal bonds and money market
instruments.
We’ll provide pricing and portfolio analysis upon re­
quest And we’re just a phone call away.

Omaha National’s Bond Department—one of
many departments totally committed to servicing
our correspondent banks.

The Omaha National Bank
17th & Farnam • Omaha, Nebraska 68102

BOND DEPARTMENT TOLL FREE NUMBERS • 1-800-642-9305 Nebraska • 1-800-228-9175 Adjacent States
N orthw estern


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B a n k e r, M arch

1976

34
My fourth bomb of 1975? debt is either a constitutional or statu­ away from him. He will suffer a dimi- A
The Federal Bankruptcy Bill. tory requirement that the debt is se­ nution of his basic security pledge.
The Bankruptcy Act of 1893 cured by ad valorem taxing power.
This bill also provides for a new <
currently has 15 chapters in it. To
Ad valorem — to the value of. This class of securities senior to the general
“help'’ New York, President Ford in­ means that the municipality is re­ obligation bonds in order to provide r
troduced a bill to provide Chapter 16 quired, in order to pay off its general cash for maintenance of essential ser­
— a proceeding to permit a municipal­ obligation bondholders, to levy and vices. Again, the bondholders’ security ^
ity to seek the shelter of bankruptcy. raise taxes on the taxable property in pledge will be short-circuited.
There has never been a way for mu­ its city or county to the value of the
There are other ways to see that es­
nicipalities to obtain the shelter from land and the buildings. This has been sential services are provided in the v
creditors that Federal bankruptcy pro­ and is the fundamental security of event of default on debt repayment. 4
vides. The bill is currently in confer­ most tax supported municipal bonds.
Our fathers and mothers came through
ence, different versions having been
This requirement of ad valorem tax­ 7,000 municipal defaults in the 30’s
passed by the Senate and House.
ation will be abridged by this bill be­ without a bankruptcy court. Permitting w
We have outstanding in the United cause the municipality will have a ref­ the issuer to hide behind the protection ’
States today some $220 billion of mu­ uge it can seek called bankruptcy of a bankruptcy court is not the an- nicipal debt. About $140 billion of this court, and bondholders can be shut off swer. This bill will alter drastically the
is tax supported — so-called general from this direct requirement of the is­ very structure of municipal debt.
*
obligation debt wherein the full faith suer. A fence can be erected, protect­
, I he fifth bomb of 197s? The
and credit of the issuer is pledged. ing the municipality from the bond­
How is this full faith and credit holders, a fence called bankruptcy.
rt~ A)' legislation passed in New
pledged? Historically, and in most
York State providing for a
Every bondholder of a general obli­
states, the fundamental security for this gation bond will have something taken delay of repayment of principal and
smaller interest payments on $1.6 bil­
lion New York City notes — the socalled moratorium legislation.
Without question this has to be the
worst legislation passed by any state
in this century. A clearer case for abro­
gation of contract could not be made.
Bad enough for the New York City
noteholders; how about the effect of
this legislation, if held to the constitu­
tional, on other debt issuers? In New
York State, catastrophic. The amount
of interest payments that taxpayers in
New York will have to pay in future
years, in order to compensate buyers
for the risk that the issues they buy
might also experience a moratorium
if things go sour, boggles the mind.
And how about you people, in cities
and states away from New York? New
York case law has historically been
powerful precedent for other jurisdic­
tions. Investors can ask, if New York
910 Grand Avenue • Des Moines, Iowa
can get away with it, why not Colo­
(515) 284-7030
rado, Minnesota?
Court actions challenging the law
have been instituted in both the state
and federal courts. The state court, in
an unbelievable decision, found the act
constitutional. In my humble opinion
the act is blatantly unconstitutional
and will be so found to be. Oh yes, the
noteholders were offered a substitute
M u n ic ip a I B o n d s
— a MAC 8% bond due in 11 years
which we found unratable. And some
28% of the noteholders exchanged
irrevocably and forever their City
711 Insurance Exchange Building
notes for the MAC bonds; 72% of the
notes
— 1.1 billion are, or shortly
Des Moines, Iowa 50309
will be, in default.
Phone 515 243-5188
So what has been accomplished by
this moratorium act? It has accom-

Call Us For Quotes
On Any
■ Stock

■ Bond
■ C o m m o d ity

■ G overnm ent Agency
Instruments

R .G . DICKINSON & CO.

ownie

N orthvrestern

Banker,

March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

nc.

Presenting a small case
for Iowa’s most complete
bond department.
Whether it’s analyzing your long-term portfolio on a continuing basis, or
handling idle funds day-to-day, keeping track of every investment opportunity
is a hassle you probably don't have time for.
That’s where our Bond Department comes in. We re actively underwriting
Iowa municipal bonds, and we re dealing in selected out-of-state municipal
issues plus Federal government and Federal agency securities, short-term tax
exempts, commercial
paper, and much more.
Result— we know where
the action is, and that can
be profitable for you. Call
toll-free 1-800-362-2514,
and our 16 bond people
J I b#
a
A n a tio n a l b a n k
will give you a lot of help
Y
e
s
,
y
o
u
ca
n
g
e
t
a
lo
t
o f h e lp for you r m o n e y .
for your money.

IO W A .
n e s M O in e s
7th & Walnut, Des Moines, Iowa 50304 (515) 245-3131


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member FDIC

A r A ffilia te o f N o rth w e s t B a n c o rp o ra tio n

Banco

36
plished two things. One, it has bought
time — time for the City and State to
get their affairs in order, budgets bal­
anced, priorities realigned. Court ap­
peals alone can easily run a year past
the due dates of the notes. And two,
the passage of the act was, in my mind,
a political expedient. It said to Presi­
dent Ford, Treasurer Secretary Simon,
the Congress and the nation — look
to what we will do to prevent a com­
plete breakdown, look how far we will
go! And the President then spoke unto
the Gothamites — indeed ye have re­
pented and cleansed your souls. Ye
have sinned as wastrels and ye have
confessed your sins. Now go forth with
$2.3 billion in Federal loans.
But what of the $1.1 billion note­
holders who are out there hanging in
the wind? There is no provision in the
three-year moratorium plan for their
notes to be repaid. The MAC exchange
was supposed to handle that. I submit
to you that the scenario will unfold as
follows:
The Court of Appeals in New York
— the highest court — will properly
find the act to be unconstitutional, but
will give the State say one to three

years by a stay of the order. This will
give the time needed to find the $1.1
billion and who knows what kind of
a change of heart there may be in
Washington by then? There may even
be a few changed hearts.
The end result is that you and I will
be rid of this disgraceful legislation,
New York will hopefully be well on
its way to fiscal recovery, and the note­
holder will be able to see some light
at the end of the tunnel.
Number six bomb — near
and dear to the hearts of all
of you — the new problems
of municipal disclosure. Part of the
problem is that the recent changes to
the securities laws specifically excuse
municipal bond issuers from having to
disclose anything, while at the same
time the underwriters are required to
provide full information to prospective
buyers.
The questions raised by New York
City’s fiscal crisis, coupled with these
recent changes in the securities laws,
have caused a feeling of “confused
caution” among lawyers advising the
banks and dealers who bid for munici­
...

$

If you w o u ld like

The Bond
Bulletin,
a weekly,
detailed report on
fixed income securities
from

Dain, Kalman & Quail,
call us at (612) 371-2854
N o w includes new
D K Q Regional M u n ic ip a l Index

N orthw estern

B a n k e r, M arch


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

pal bond issues. This has led to substantia! confusion about what is mate­
rial and who should be responsible for
certifying that everything material has
been disclosed and is accurate. And
this confusion is resulting in fewer bid­
ders for new bond issues and higher
interest costs for states and municipalities.
Last week the state of New Jersey
sold $50 million general obligation
bonds. Two major New York banks
and one major New York dealer re­
frained from bidding because of disclo­
sure questions. Counsel to one major
New York bank insisted on signed
statements from the State Treasurer,
Attorney General, and the Governor
that all material information was accu­
rate and disclosed. The winning under­
writing account bid with a greater
profit spread to compensate for the
confusion and perhaps because there
was less competition. Normally, they
could have expected a profit of $7 to
$8 per $1,000 bond. Instead they bid
with a $ 15 profit. The excessive cost
to New Jersey, caused by the disclo­
sure problem, therefore, was $7 per
bond, times 50,000 bonds = $350,000.
I suggest that we not attempt to
change the law under which the SEC
and the municipal self regulatory body
operate. At least the law prevents fur­
ther Federal encroachment on munici­
pal issuers. Instead, I suggest that the
responsibility for municipal disclosure
be assumed by each state, wherein a
state clearing agency would approve
the form of each bond issue and certi­
fy as to its accuracy and complete dis­
closure. This approval would not go
to the concept of the bond issue; only
its form. There would be no impinge­
ment of home rule.
There is ample precedent for what
1 am suggesting; I am not trying to re­
invent the wheel. Many states already
have some form of clearing set up. But
they should go further.
Perhaps the most advanced state
agency I know of is the North Caro­
lina Local Government Commission.
Consisting of a staff of 12, this agency
assists the local issuers with bond sale
procedures, insists on high, uniform
accounting standards, and insures that
all pertinent information is disclosed.
This is a state wide problem and can
be resolved at the state level. Failure
to do anything will result in further
Federal infringements on local financ­
ing. And, as we approach this bicen-

/

*
^
v

A

37
tennial year, I happen to be one of
those people who believe that the foun­
tainhead of power should be where it
was 200 years ago — at the state level.
In those days you will recall that the
states delegated certain powers to the
Federal government and permitted cer­
tain powers to be exercised by the local
governments. I am reminded of that
famous quotation of somebody I don t
remember — the Federal government’s
power should be confined to defending
the shores and delivering the mail; and
they’ve done a poor job of both.
I suggest that the Municipal Finance
Officers Association, the largest na­
tionwide organization of finance offi­
cers, carry the ball in assisting the
states in adopting disclosure guidelines
and in setting up clearing agencies.
Bomb number seven for
1976 — new ways to sell
municipals. In business, if
you have trouble selling your product,
and there is no way for you to change
the buyer, you change the product.
The major buyers of municipal bonds
historically have been commercial
banks, casualty companies, and indi­
viduals, But there have been changes
in the reasons why these three groups
have historically been the main buyers
of tax-exempt securities.
The Bank Flolding Company Act of
1969 opened up a whole new set of tax
shelters for banks through holding
company subsidiaries qualifying for
such tax breaks as accelerated depreci­
ation and investment tax credits. Mu­
nicipal bonds are no longer the only
way for banks to shelter income. In­
deed, bank demand for municipals
has been decreasing for the last four
years.
Fire and casualty insurance compa­
nies are taxed at regular corporate
rates and, therefore, buy municipals
to shield profits. But their purchase of
state and local bonds falls sharply in
years of heavy claims when they have
little or no profit to shield. These spor­
adic investors can’t be counted on to
provide the investment capital which
will be needed in the future.
As for individuals, the loss of inves­
tor confidence caused by the events in
New York has been shattering. Some
of the prices on municipals today are
ludicrous — totally out of proportion
with actual risk. But investor psychol­
ogy has been badly hurt and will take
a long time to mend.
What about the big pools of funds
t

¿ A)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

that municipals don’t appeal to be­
cause they are not benefited by the tax
exempt interest which municipals of­
fer such as foundations, pension funds,
mutual savings banks, and other low
tax institutions? To appeal to them
means paying more interest.
There are bills in Congress again
this year providing for what is called
the taxable bond option, wherein the
issuer may elect to sell tax exempt or
taxable. If taxable, the bills provide
that the Federal government reimburse
the municipality anywhere from a third
to 40% of the interest cost, and the

IRS theoretically gets the subsidy back
in taxes on the total interest.
1 submit that maybe this is an idea
whose time has come. The market for
municipals must be broadened to make
up for the loss of investor confidence
and the changing benefits of tax ex­
emption. In addition, I have long be­
lieved that an issuer should have all
avenues of choice open to him to select
that which will result in the lowest pos­
sible cost of money to his tax payers.
Midwest Appraisal
A few words about what we see in
this neck of the woods (Minnesota).

W hen it
comes to
industrial
development
bond issues,
we wrote
the book.
Back in the sixties, when Iowa needed an industrial
development bond act, we were asked to write it.
W e’ve been involved in its updating and amend­
ments since then, too. Because when we get in­
volved in something, we stay involved.
Just as w e’re involved in Iowa. In the more than
fifty years we’ve been in business, w e’ve been re­
sponsible for over 80% of the industrial develop­
ment issues sold in Iowa. Issues for manufacturing
plants, processing plants, health care facilities,
pollution control, warehousing, and agri-business.
In every size community. All over Iowa. W e’ve also
been responsible for over 80% of the total dollar
volume of Iowa bond issues — over $300 million
since 1963.
We understand Iowa. And we understand financing.
If you’d like to put our understanding and involve­
ment to work in your community, contact us.

Carleton D. Beh Co.

Investment Bankers/Financial Consultants
Des Moines Building, Des Moines, Iowa 50309
Phone (515) 288-2152
Northw estern

B an ker, March

1976

38

New DKQ Municipal Index
Will Measure Regional Rates
A UNIQUE index of municipal bond performance has been developed

by Dain, Kalman & Quail, Inc., regional investment banking firm
headquartered in Minneapolis, to help investors and municipal officials
evaluate performance of representative issues from communities in
Minnesota, Iowa, Nebraska, North and South Dakota, Montana,
Wyoming and Wisconsin.
Called the DKQ Regional Municipal Index, it will
be prepared each week on Thursday and made
available to business news media for public infor­
mation. Summaries and graph comparisons will be
prepared quarterly or oftener.
The new index will provide statistical averages
for 20 selected tax-free municipal bonds with
10-year maturities. The following municipalities are
included:
AAA rated bonds: Minneapolis, Minn.; Madi­
son, Wis.; Omaha, Nebr.
AA rated bonds: Rochester, Minn.; Eau Claire, Wis.; Cedar Falls,
la.; Fargo, N.D.; Sioux Falls, S.D.; Casper, Wyo.; Des Moines, la.
A -1 or A bonds: St. Cloud, Minn.; Duluth, Minn.; Menominee, Wis.;
Spencer, la.; Jamestown, N.D.; Huron, S.D.; Billings, Mont.
BAA-1 or BAA: International Falls, Minn.; Windom, Minn.; Oakes
N.D.
Robert R. Martin, DKQ execu­
D K Q R EG IO N A L M U N ICIPA L INDEX
tive vice president, said the new
index would provide a useful in­
formation source for investors and
others interested in bond trends.
“We believe this bond index,
which will indicate the movement
of municipal bond interest rates
throughout our region, will be of
interest regionally and nationally
because of the current focus on
municipal bonds as investment
and financing vehicles.”
Mr. Martin said the DKQ
Regional M unicipal Index is
calculated using the 10-year
maturity because this gives the
most consistent indication of
market trends, with minimum
distortion. The Index also is
based on the offered side of the market to provide the most meaningful
information for investors. “ In constructing this new index,” he said,
municipalities were selected whose bonds are well-known to traders in
the Upper Midwest and which mirror interest rate movements
generally. Our principal objective is to give the investor an
easily-understood, dependable indication of whether municipal bond
interest rates are rising or falling in our region.”
Dain, Kalman & Quail has four municipal bond underwriting
departments which will provide index information. The Minneapolisbased investment banking firm has 21 offices located in the eight states
covered by the Regional Municipal Index.—End

N o r tfor
h w eFRASER
stern Banker, M arth
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

As credit raters the absence of short ^ ^
term debt is particularly reassuring.
We know of no city or state that built *
up the volume of short term debt that
occurred in New York.
*
I asked our analysts for some one
liners that would best describe why our ^
ratings in this area are predominately ^
on the high side. Fiscal conservatism
was one; increases in retail sales, prop­
erty evaluations, good tax collections, <balanced budgets, prudent use of debt,
stable debt ratios, all indicate that
growth is keeping up with debt, reflect­
ing a stable economy.
Of much interest to us is your inno- vative Fiscal Disparities Act. I’m sure
I don’t have to tell you how you are
being watched nationally on this one.
Of particular interest to us is to exam- a
ine if one of the contributions this act * '
might make is to indirectly help prevent center city decay, the prime prob­
lem of our older northeastern cities.
-<
Of the 20 largest cities in the United
States rated by our organization, only
three carry the triple A rating. Milwau- ^
kee, Minneapolis, and Denver.
I hope my comments on some of the x
rapid fire changes that have taken
place in the municipal bond market in
1975 and some of my views on 1976
have not distressed you too much. Per­
haps a word to the basics of debt in­
currence analysis resulting in a rating
would be helpful in conclusion.
The desire to repay a debt can be ^
a hundred times more important than
any analysis of debt capacity. We still
see that desire, that willingness in plen­
ty of places in America today; places +
where the incurrence of debt includes * '\
the solemn promise to repay. No
welshing, no backing off, no repeal of
a statutory convenant, no new law that *
says a bondholder can’t sue for 90
days after a default, no new law that
says debt service really isn’t a first lien ^ 1
on revenues, no moratorium defaults,
no running to bankruptcy shelters.
+
We still have plenty of people in this
country who recognize that credit is
a fragile thing. In examining analysis
of repayment capability in these chang- ^
ing times, we try to continue to recog- 4 ^
nize that trait, that respect for what full A
faith and credit really mean, that in­
nate quality that cries out, “This debt *
will be repaid, not because of the legal
requirements, not because of some po­
litical hacks trying to run for higher <
office, not because the Federal govern­
ment has to help, but because you lent 4
it to me on a promise and that promise
will be kept.” — End

39

Area Bankers Give
■ H R «

IK

«I

mm

n m

P V M R n

Their Views on EFT

A N o r t h w e st e r n B anker Survey
> “ OFF PREMISE automatic teller machines (unmanned), if re­
stricted to use by one bank, should be considered as branches.
*
However, (they) could also be a means to introduce competi­
tion into localized areas dominated by a small bank.”— Montana banker

A
Editor's N ote : In the last issue of the
Northwestern Banker the results

of a special survey conducted among
upper midwest and mountain states
bankers on their views of the Elec­
tronic Funds Transfer subject were
published. That report gave the statis­
tical answers to the questions asked.
In addition, bankers from several of
the states took time to express their
personal views about EFTS but space
precluded use of their comments with
that statistical report. Selected com­
ments, representative of those sub­
mitted, are presented here to give add­
ed banker feelings about this current,
important development in banking
technology. Respondents to the survey
were not required to sign their name,
but were asked to list the total of their
bank’s deposits and give the name of
their state. (Readers who may wish to
express their opinions on this topic are
invited to send their comments to the
editor.) The selected replies from last
month’s survey follow:
Nebraska, deposits $4.2 million:
When you consider the banking indus­
try as whole, it should be allowed to
do the same thing savings and loans
are doing, even though it means the
small banks may be better off joining
the large banks that have the resources
to compete with the savings and loans.
Nebraska, deposits $1.5 million: It
would appear that EFTS is another
means of getting “Branch-Banking”

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

throughout the United States. If this
is the objective, then we are totally
against EFTS. Branch banking is the
means to forcing the smaller banks out
of existence. And we oppose that
which is against small business.
I can see using automation within
the larger banks for the sake of speed­
ing up the work within that bank. But
I do not see how computer banking is
going to help the industry. The people
in every community -—- from the very
smallest to the largest — want the per­
sonal service that people can give. A
machine cannot do what a person can
do in that respect. In some instances
perhaps a machine can give the cus­
tomer the service of depositing or with­
drawal of money, but in the overall
banking service we believe in people
service.
North Dakota, deposits $6 million:
I have mixed emotions about Electron­
ic Fund Transfer Systems. I can see
where they could well fit in metropoli­
tan areas with population of 200,000
or over where most of the people have
more remote connections with a finan­
cial institutions’ personnel as a whole
and business is more on a number ba­
sis.
I have studied this situation and my
opinion is that the people and financial
institutions have too much to lose by
breaking the personal contact they now
have in the smaller populated areas.
The larger institutions, if able to go

way out of their normal trade area, will
also deplete the least populated areas
of capital for use in their own area.
We have a very good example of the
savings and loan branches in North
Dakota which have their main office
in Fargo, N.D., with branches in
Devils Lake, Dickinson and other cit­
ies in North Dakota, with a small part
of their deposits being invested where
their branch deposits are.
Montana, deposits $18 million: The
way in which EFTS is implemented
in our country will have a great bear­
ing on whether our bank is for the use
of this technology. If EFT terminals
are operated as a communication sys­
tem, with a routing system common
to all banks so that a customer of any
bank can go into any store in the coun­
try and debit a personal account for
a purchase, then we are for EFTS. By
this we mean a customer of our bank
in our town can go to a store in New
York City that deposits with First Na­
tional City Bank and put a plastic card
into a POS terminal, make a purchase,
debit his bank account in this bank,
and all through an automatic clearing
house to pay for the merchandise and
credit the store’s account in First Na­
tional City Bank. In addition, a cus­
tomer of First National City Bank
should be able to debit his account to
pay for merchandise from a merchant
depositing with us in our city.
If EFT terminals cannot be shared
N o rthw estern

Banker,

M arch

1976

40
and each big bank is allowed to install
terminals nationwide that will only ac­
cept a certain type of card for only one
bank, then we are against EFTS be­
cause it would lead to a few, very
large, nationwide banks. This type of
EFTS would necessitate high concen­
trations in banking, lead to monopolis­
tic trends, and do away with small
banks and the nation's dual banking
system. In this case the consumer
would be the real loser.
A unit bank with top management
and directors living in the market
served has much better knowledge of
the community’s needs and more inter­
est in a community than a huge cen­
tralized bank with top management lo­
cated in a city far from the market
served by its branches. In our opinion,
the small banks offer their small mar­
kets more individual attention and
must be allowed the means to compete
with banks of all size.
Off premise automatic teller ma­
chines, if they are restricted to use by
one bank and cannot be shared, should
be considered as branches and should
follow branch banking laws in a par­
ticular state. There is a place for these
machines in providing services at ex­
tended hours and at places convenient
to customers, but applications to bank
supervising authorities should be nec­
essary with regard given to the com­
petitive factors to prevent large institu­
tions from dominating the markets
completely.
However, automatic teller machines
could also be a means to introduce
competition into localized areas domi­
nated by a small bank. That could be
healthy, too. In any case, off premise
automatic teller machines that are not
open to all banks in a market should
be under the authority of a banking su­
pervisor. Automatic teller machines
are different than POS terminals that
could be used by all consumers which
could be placed in any store without
permission of any banking authority.
If EFTS is to properly serve the
public then some provision must be
built into the laws to protect peoples’
privacy. If possible, these records
should not be available to anyone with­
out a search warrant being served on
a consumer, with the right to appeal
before anyone, including the govern­
ment, has access to the records. EFTS
records could give a detailed biogra­
phy of a person through the person’s
financial records including purchases,
charitable contributions, church con­
N o rth w e s tern Banker. March

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

“ THE MERCHANT is going to gain more
than anyone as he sees his check losses
decline and obtains immediate collected
funds on deposit."— Colorado banker

tributions, and association with his
doctor, dentist, lawyer, etc. These rec­
ords need legal protection for privacy
to prevent ‘"Big Brother” from becom­
ing a reality. All of us will lose if our
right to privacy is lost.
In summary, EFTS holds promise
of being more economical than moving
checks; it could cure the abuse and ex­
pense of NSF checks and it could
make it easier for a consumer to con­
duct business any place, which is im­
portant in our mobile society. These
are positive benefits; however, the dual
banking system and small banks must
be able to compete after EFTS is in
being. Laws and regulations can and
must be developed so all can compete
on an equal basis when EFTS is imple­
mented. The subject of EFTS is com­
plex and requires careful analysis be­
fore steps are taken to implement this
system. POS terminals and automatic
teller machines are not the same and
should be considered on separate
terms. Last, but perhaps most impor­
tant, the question on personal privacy
should be settled before EFTS is im­
plemented. Information is power.
Colorado, deposits $105 million:
Sharing of terminals, both CBCTs and
ATMs, seems to make the most sense,
both economically and for customer
convenience. The “keynote” of EFTS
must be “customer convenience” in or­
der for it to become accepted as a vi­
able way to replace checks. If con­
straints are applied due to legislative
action which would restrict where a
customer can access his deposits, then

he would have little reason to use this
new method of banking and do away
with the “float” he presently is able to
take advantage of!
1
The burden of responsibility for in­
stalling POS terminals cannot be
placed solely with banks. The mer­
chant is going to gain more than any­
one as he sees his check losses decline
and obtains immediate collected funds
on deposit. Therefore, usage inter or
intra-state then becomes a customer
convenience question rather than a
branch banking question.
Illinois, deposits $6.6 million: Since
research has begun on the issue of
EFTS, one group has been conspicu­
ously disregarded. That group is the
consumers who are expected to accept
and use an EFTS system.
To design a product with no market
research as to consumer wants and
needs would be inconceivable for a
manufacturer of consumer products.
The banking industry, however, seems
quite content to stumble on with such
a plan, committing millions of dollars
without really knowing what the re­
turns will be.
I,
for one, do not stand convinced
that EFTS will save anyone any
money, nor am 1 convinced that EFTS
will prove to be a viable, long-term so­
lution to the present, near-saturation
of our check clearing capabilities.
What I feel is that a much more
workable solution to the check volume
problem can be seen if one looks at the
dollar amounts on checks written. Free
checking accounts have been disas­
trous to the check clearing system.
Consumers can be persuaded to use
cash for smaller transactions, either
through education or through service
charges. Ultimately, the consumer will
bear a substantial part of the cost of
an EFTS system, anyway.
Iowa, deposit size not given: Our
responses to the (EFTS) questionnaire
are based on the following assump­
tions:
1. That in the state of Iowa after July
1, 1976, any bank establishing an
Electronic Funds Transfer terminal
of any nature off premises will be
required to share it with other
banks on an equitable basis.
2. That any bank in the state which
wishes to do so will have the capa­
bility to issue cards which will acti­
vate terminals and to establish ter­
minals in the market place, if it
chooses, through either in-house
capability, service provided by cor-

41

i m m j»

'VE
in y M

J

TIME!
It's been a rough year for
commercial lending. Many established
businesses didn’t make it through the
recession, and banks were often left
with inadequate collateral to cover
loans. Many banks brought SLT into
their problem loan situations and we
helped them control and liquidate
collateral without a loss, or at
least a minimum loss. But that
was after the fact.
Now that the economy is turning
upward, banks will be called on more
than ever to finance expansion. Your
problem of course, will be how to do
this profitably.
Try talking to your SLT
representative. We can help you put
together a collateral package based
on inventory to insure a s a fe lo a n
r ig h t f r o m th e s ta r t. We know we
can help you make new loans to
your customers and avoid the
problems of the past year. Since
we introduced our Field
Warehouse service over fifty
years ago, SLT has been helping
banks and industry work
together. If you feel that we can
help you, please let us know.
Before the fact.

SLT WAREHOUSE COMPANY
P.0, Box 242, St. Louis, Mo. 63166 • 3 14 /2 4 1 -9 7 5 0 * Offices in Major Cities
NATIONWIDE COLLATERAL CONTROL SERVICES


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northw estern

honker,

M arch

1976

42

“The real advantage to all
bank customers will exist
when a card issued by our
bank can be utilized in
another city at a department
store or wherever that bank
customer may happen to be.”
— Iowa banker

respondent banks, or service pro­
Iowa, deposits $20.3 million: We
vided by service bureaus.
are currently operating a courtesy
3. By definition, terminals that are es­ counter terminal in Newton. This is
tablished off premises under exist­ on a shared basis with a correspondent
ing Iowa law may not be manned and several other banks. This is all that
by a bank staff member.
is allowed under the present Iowa leg­
If these assumptions are valid and islation.
state law is not significantly modified,
We consider this the first step to­
the concept of limiting the establish­ ward a national network of shared ter­
ment of terminals by type, location or minals. We do not feel, as many
services provided is superfluous and bankers do, that the terminals will give
unnecessarily restrictive. The cost of the large banks an unfair advantage.
terminals, and systems to support the Rather, we feel the terminals, on a
terminal, will dictate that banks place state-wide or national shared network,
terminals only in locations where they would give us an opportunity to retain
can be economically justified. It is un­ accounts that might otherwise move to
realistic to think that a piece of ma­ the larger banks of Des Moines. We
chinery removed from or in marginal are also of the opinion that POS (not
areas of a bank’s normal consumer now authorized in Iowa) will give us
market will attract significant numbers a means of meeting the competition
of new business to justify cost of the from the thrifts with their liberal
terminal. Long-term cost justification branching capabilities. The key to this
must come through a generation of position is the requirement of shared
large enough volumes of electronic terminals.
transactions to drive down in-house
Iowa, deposits $15 million: I have
processing costs.
at hand the survey in regards to EFTS.
Iowa, deposits $16 million: My an­ My answer to the questions would be
swers to these questions are based on negative in almost all cases.
the assumption that the courtesy coun­
First, let me say that I feel that the
ter terminals, check-out counter termi­ EFTS is a breach of banking; it is plac­
nals and remote ATMs are operational ing stores in the position of becoming
to be utilized on a shared basis and banks. It will not stop with the transfer
that any machine which is established of funds. Never has such a plan been
would have the capability of interfac­ made that did not have as its goal a
ing with any other system being offered total takeover.
by competing banks and/or compet­
During the past several decades we
ing systems operated by non-bank en­ have seen an erosion of banking ser­
tities.
vices to other institutions — various dif­
I am opposed to the location of any ferent loaning agencies, issuing of bank
of these terminals outside the physical drafts or money orders, separate safe
location of the established bank or deposit bank companies, insurance
bank offices without considering them agencies, tax work. All these and more
a branch within the meaning of the have gone or are rapidly being
branch laws of the state if they will not changed. In return, we have acquired
accept transactions from other bank hardly any new method of expanding.
customers. The real advantage to all If they are, it is like IRA accounts and
bank customers will exist when a card direct deposit of social security checks,
issued by our bank can be utilized in which in most cases is more a service
another city at a department store or than a money making proposition. I
wherever that bank customer may hap­ am not adverse to the services but I al­
pen to be.
so think we need to consider banking
N o rth w e s tern B an ker. March

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

finding new sources of income rather
than decreasing such sources.
Further inroads are rapidly being
planned —• NOW accounts and check­
ing privileges to building and loans.
We could stop building and loans mov­
ing into checking-banking by refusing
to let them use our clearing channels;
make them set up their own. There is
no reason why a system developed by
the bankers of America after so many
years could be used cost free by some
Johnny-come-lately.
Now back to EFTS. This is almost
a death knell for small banks as we see
them today. To compete against the
larger banks in transfers would be too
costly. The only other answer is to
cuddle up with some large bank. This
so-called modern concept calls this
one-stop, shopping-banking. The super
market has moved into almost every
line including pharmacies to hardware
— now it is banking.
Surely American bankers have
proven that they are responsible for
growth in America. I feel the change
that this will bring about is wrong both
from a banking point and from a busi­
ness point.
Summing up, it is my feeling that
this is another move to change the
banking structure in favor of the large
units that can spend huge sums to in­
stall these units.

Director of Chicago ACH
Daniel J. Sullivan has been named
director of payment systems for the
Midwest Automated Clearing House
Association, Inc., Chicago. He will be
responsible for the day to day opera­
tions and implementation of ACH pro­
cedures, and will play a technical role
in the development of new ACH ser­
vices.
Approve Wisconsin S&Ls
For Public Funds
Gov. Patrick J. Lucey has signed a
bill which would enable savings and
loan associations to compete for mil­
lions of dollars of public funds long de­
posited by Wisconsin governments
with commercial banks.
The bill, passed by the legislature
late last month, extends the state guar­
antee fund to public deposits in s&ls,
beyond $100,000. The first $100,000
is protected by the Federal Savings and
Loan Insurance Corp.
Milwaukee city officials were among
the leading proponents of the bill,
which was generally opposed by
bankers.

43

Is

your insurance

file like

. . . .

OPENING U P A
BOX?

P A N D O R A ’S

Is your insurance file like opening up a PANDORA’S BOX? Has anyone
re a lly gone over yo u r insurance file and given you a su m m ary of w ha t your
insurance is all about? Do you know w ha t the new pension reform a ct has to
do w ith your operation? Do you know w hy you carry the insurance you now
carry? Is yo ur insurance c u rre n t and com plete?
There is only one answ er . . . from the firm th a t counsels over 300 fin a n c ia l
in s titu tio n s th ro u g h o u t the M idw est.

Call or write . . . Robert A. Carney, President

Insurance Programmers, Inc.
327 South LaSalle Street, Chicago. Illinois 60604— (312) 939-3366


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northw estern

Banker,

M arch

1976

44

EFT Update by ABA President
REX DUWE
ABA President,
President and C hairm an
The Farm ers State Bank
Lucas, Kan.

PEAKING before the Bank
Management Conference of the
Missouri Bankers Association re­
cently, J . Rex Duwe, president,
American Bankers Association, re­
ported on current electronic funds
transfer events that will shape the
EFT environment for tomorrow.
Here are his remarks:
“ Any EFT round-up gravitates
toward the interpretive ruling on
customer-bank communication ter­
minals (CBCTs) issued by the
Comptroller of the Currency, James
Smith, in late 1974. The Comptrol­
ler said that CBCTs do not consti­
tute bank branches. This contro­
versial statement proved a boon to
the legal profession by generating
many lawsuits.
“ Last October, the Comptroller
suspended his ruling after several
courts had held that his CBCT
interpretation violated at least in
part the McFadden Act. But this
did not mean an end to CBCTs. It
did mean that a decision to use
these terminals had to be made by
individual banks acting on the
basis of internal business decisions
and on the advice of their own
counsels.
“Some banks have chosen to use
CBCTs and have been taken to
court. Most of the court decisions
have stated that, in one way or
another, CBCTs are branches. But,
in a first-of-its-kind decision on
S

N o r for
t h wFRASER
estern BankerM M arth
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

19 7 6

January 2 of this year, a U.S.
District Court in Oklahoma ruled in
support of the Comptroller’s con­
tention that CBCTs are not bank
branches. The decision is being
appealed by the office of the Okla­
homa attorney general. As a
sidelight, this is the only CBCT
case so far in which witnesses have
testified. Other decisions have been
rendered solely on the basis of legal
briefs.
Supreme Court
“ What will be the final chapter in
the CBCT story? It seems fairly
certain that the whole CBCT
question will eventually wind up in
the Supreme Court. At any rate,
that's the prediction of the Comp­
troller’s office and the consensus
among many other knowledgeable
people.
“ But there’s a larger question
that should be asked: Should the
nation’s decision about CBCTs rest
entirely on legal arguments con­
cerning whether these devices are
bank branches?
“W hat is ABA’s position on
CBCTs? We believe that CBCTs
are a new device for delivering
traditional bank services—not in
changing those services—and that
they should be allowed. Bank
branching laws, by definition, only
•affect banks. If we alone are
blocked from installing electronic

terminals, our competitors would
gain an unfair advantage. CBCT
rulings don’t affect thrifts and they
certainly don't affect Penney’s,
Sears, and Montgomery Wards.
But these retailers are our financial
competitors too. Right now, they
are offering a tremendous amount
of credit to our mutual customers.
These retails outlets are installing
computerized “cash registers’’ that
could easily be used to accept the
equivalent of deposit.
S & L Competition
“ While remembering that our
competition isn’t limited to thrifts,
let’s look at some of the recent EFT
developments involving them.
“ First, the Federal Home Loan
Bank Board has said it will
continue to authorize “experiment­
al” remote service units for federal
thrifts until July 31, 1976. This is
an extension of the previous
deadline. From the consumer’s
point of view, a CBCT and RSU are
identical. From our point of view as
bankers, federal S&Ls are being
g ran ted specific a u th o rity to
operate these units while national
banks have been stymied by legal
actions and are not able to get the
same explicit go-ahead. This is
EFT UPDATE . . ,
( T u rn to page 46, p le a se )

45

S n = HARRIS
H u£ BANK.
D IR E C T O R S

Consolidated Statement of Condition
ASSETS

D e c e m b e r 31 , 1 9 7 5

...
Cash and Due from Banks.................................
Time Deposits in Other B anks..........................
Federal Funds Sold and Securities Purchased
under Agreement to R esell...........................
Investment Securities:
U.S. Treasury S ecurities....................................................
State and M unicipal S e cu ritie s.......................................
Other S e curities...................................................................
Trading A cco un t S e curities...................................................
Loans, net of Unearned D is c o u n t.......................................
Less: Reserve fo r Possible Loan Losses...........................
Direct Lease F in a n c in g .........................................................
Customers Acceptance L ia b ility ...........................................
Bank Premises and E quipm ent............................................
Other A ssets..............................................................................
Total A sse ts...............................................................................

$ 709,106,539
309,375,900
332,528,125
257,862,557
357,741,278
5,749,562
157,907,435
1,807,237,945
(25,539,364)
57,956,353
29,778,876
87,503,045
66,037,747
$4,153,245,998

L IA B IL IT IE S

Demand D eposits....................................................................
Savings Deposits and C ertificates.......................................
Other Time D e p o sits...............................................................
Deposits in Foreign O ffic e s ..................................................
Total D e p o sits......................................................................

$1,232,784,607
654,660,023
862,437,384
438,698,644
$3,188,580,658

Federal Funds Purchased and
Other Short Term B o rro w in g s .........................................
Acceptances O u ts ta n d in g ......................................................
Accrued Interest, Taxes and Other Expenses...................
M ortgage P ayable...................................................................
Other L ia b ilitie s .......................................................................
Total L ia b ilitie s .......................................................................

562,841,325
29,814,155
57,287,171
3,689,738
42,904,124
$3,885,117,171

E Q U IT Y C A P IT A L

Capital Stock ($16 Par Value) Authorized and
Outstanding 3,1 37,81 5 shares.........................................
S urplus........................................................................................
Surplus Arising from Assum ption of Convertible
Capital Notes by Parent C om pa n y...............................
U ndivided P ro fits .....................................................................
Equity C a p ita l............................................................................
Total Liabilities and Equity C a p ita l.....................................

5

50,205,040
83,921,460

24,058,400
109,943,927
$ 268,128,827
$4,1 53,245,998

W IL L IA M F. M U R R A Y
Chairman of the Board
STANLEY G. H A R R IS, JR.
Vice Chairman of the Board
CHALKLEY J. H A M B LETO N
President
BENNETT A R C H A M B A U L T
Chairman and President
Stewart-Warner Corporation
JO H N W . BAIRD
President
Baird & Warner, Inc.
JOSEPH A. B U R N H A M
President and Chief
Executive Officer
Marshall Field & Company
JA M E S W . BUTTON
Senior Executive Vice President —
Merchandising, and Director
Sears, Roebuck and Co.
S A M U E L S. GREELEY
President and Chief
Executive Officer
Masonite Corporation
ROBERT C. G U N N ESS
Retired Vice Chairman of the Board
Standard Oil Company (Indiana)
H U N T IN G T O N HARRIS
Trustee
Estate of Norman W. Harris
DO N A LD P. KELLY
President and Chief
Operating Officer
Esmark, Inc.
JOSEPH B. LA N TE R M A N
Chairman
AMSTED Industries Incorporated
R E M IC K M cD O W E LL
Retired Chairman of the
Executive Committee
Peoples Gas Company
AR TH U R C. NIELSEN, JR.
Chairman of the Board
A. C. Nielsen Company
JA M E S E. OLSON
President
Illinois Bell Telephone Co.
GEORGE A. RANNEY
Vice Chairman
inland Steel Company
DANIEL C. SEARLE
Chief Executive Officer
G. D. Searle & Co.
M A Y N A R D P. V E N E M A
Director and past Chairman
of the Board
UOP, Inc.

Harris Trust and Savings Bank
W h o lly o w n e d subsidiary o f H A R R IS B A N K C O R P , Inc.

M A IN BAN KIN G PREMISES: 111 W est M onroe Street, Chicago, Illino is 60690
OPERATIONS CENTER AN D BAN KIN G FACILITY: 311 W est M onroe Street, Chicago, Illino is 60690
INVESTM ENT DEPARTM ENT REPRESENTATIVE OFFICES: N ew York; St. Louis; San Francisco
LONDO N BR A N C H : 48 Gresham Street, London, EC2V7AO, England
IN TER N ATIO N A L O FFIC ES: M exico C ity; Nassau; Sao Paulo; Singapore____________ ________________ __

Harris Bank International Corporation;
Harriscorp Leasing, Inc.: 111 W est M onroe

77 W ater Street, N ew York, N.Y. 10005
Street, Chicago, Illino is 60690

W h o lly o w n e d subsidiaries o f H A R R IS T R U S T A N D S A V IN G S B A N K
ORGANIZED AS N. W. HARRIS & CO.,1882 -MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION, FEDERAL RESERVE SYSTEM


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N orthw estern

B a n k e r, M arch

>976

46

. . . our competitors aren’t just others banks.”
unfair. It means federal S&Ls have
an unfair advantage.
“A second important question
involving thrifts, banks and EFT
centers on d irect access to
automated clearing houses.
“ In June, the Federal Reserve
proposed that Fed member banks
and other financial institutions
‘authorized to maintain demand
deposit accounts’ have the right to
direct origination of ACH entries at
all Fed operated ACH facilities. At
the same time, the Fed suggested
direct delivery to any institution
that had a “ sufficient” volume of
transactions and that was on an
existing Fed courier route. In
November, the Justice Department
recommended that the Fed revamp
its proposal. Justice suggested that
the Fed establish fees for all ACH
services and offer participation on a
non-discriminatory basis to all
financial institutions. ABA ex­
pressed concern that the Justice
Department had misunderstood
both the statutory powers of
financial institutions and the way
ACH access actually would work
under the Fed proposal.
“ ABA has consistently main­
tained that origination of entries
through the automated clearing
house system should be limited to
institutions having demand deposit
powers.
“ In January of this year, the
Federal Reserve Board announced
an interim policy for the deposit
and delivery of payments on
magnetic tape cleared through its
facilities. The change permits ACH
organizations to allow thrifts to
direct access to F ed-operated
ACHs if, and this is important, the
thrifts are members of an ACH.
Essentially the burden of decision
as to who gets direct access to
ACHs rests, then, with bank-domi­
nated ACH asso ciatio n s, and
several of these associations have
voted thrifts membership and
therefore direct access. ACHs in
New York, New England, Michi­
gan, Philadelphia and Pittsburgh
already have agreed to admit thrift
Digitized
N o r tfor
h wFRASER
e s te r n B an ke r, M arch
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

institutions to full and equal
membership.
“The thrifts also seem to be
making head-way in another area.
In Chicago, commercial banks are
competing with one another in
selling point-of-sale services to
savings and loans. Continental
Illinois National Bank has an­
nounced an agreement to establish
an EFT computer link-up with the
Federal Home Loan Bank of
Chicago. The tie-in, scheduled for
operation this summer, will allow
S&Ls who use FHLB data pro­
cessing services to participate in
the 200 term in al point-of-sale
system Continental plans to oper­
ate in two major Chicago retail
chains.
Shared Terminals
“ Meanwhile, Continental’s major
bank competitor, the First National
Bank of Chicago, recently signed
the city’s three largest S&Ls for
participation in its new EFT
package, known as the “YES”
System. Again, remote terminals
will be shared.
“ Ironically, Illinois savings and
loan associations sharing in pointof-sale networks now have a
competitive advantage over banks.
S&L customers can make both
deposits and withdrawals at remote
terminals, while bank customers
are permitted to make only w ith­
drawals. This court ruling is being
appealed by Continental and FNB
of Chicago.
“One final note about thrifts and
electronic fund transfers. This year,
the Federal Home Loan Bank took
preliminary steps toward an FHLB
operated POS-related switching
sy stem . The FH LB S invited
computer hardware and software
vendors to submit proposals for the
design and development of such
switching systems.
“ In early September, the Federal
Home Loan Bank of San Francisco
announced it would operate a pilot
EFT switch that would permit
members to share remote service
units in retail establishments. The

San Francisco program was de­
scribed as the potential forerunner
of a nationwide switch and settle­
ment center for thrift institutions.
But the Justice Department took
exception to the proposal, saying
‘there is no demonstrable need for
the Home Loan Banks to enter the
EFTS field' and that government
operation could lead to a ‘regulated
public utility approach.’
“The San Francisco project has
been postponed, at least for the
time being. Nonetheless, we must
recognize that the FHLB has acted
as an advocate for the S&L
industry and sometimes that has
m eant ad v o catin g E F T -related
powers.
“Turning from thrifts, let me
briefly mention a few other EFT
developments you and I should be
aware of.
“ Both major bank card com­
panies are interested in debit cards.
About six months ago, National
Bank Americard, Inc., announced
plans for a nationwide debit card
plan. And Interbank Card Associ­
ation—the Master Charge Com­
pany—is proposing its own debit
card program to its members. We
should keep up-to-date on these
programs.
“ Moreover, individual banks and
groups of banks are preparing to
offer similar services. As you know,
Financial Communications Services
Corporation, operating in Missouri
and surrounding states, now has 37
banks participating in its proposed
debit card program. And this
number is growing every day.
Conclusion
“ Electronic transfers are here to
stay. But you and I and all other
bankers will have to determine
which EFT services make sense for
our banks. We’ll also have to be
very aware of the advances being
made by our competitors. And we’ll
have to recognize that our compet­
itors aren’t just other banks. Our
competition can come from many
directions,”

4

A

Roger Guffey Succeeds George
Clay as 10th Fed President
George H. Clay retired February 29
as president of the Federal Reserve
Bank of Kansas City and has been
succeeded in that post by Roger Guf­
fey, 46, who has been senior vice presi­
dent, general counsel and secretary.
Mr. Clay joined the bank in 1958
as vice president and general counsel,
and became its fifth president in 1961.
A native Kansas Citian, he moved to
the Kansas City Fed from Trans World
Airlines where he had been vice presi­
dent-administrative services and a
member of the TWA board.
Mr. Guffey joined the bank in 1968
as general counsel and secretary. He
was named general counsel and secre­
tary in 1971 and senior vice president
in 1973. He has been the senior officer
responsible for the bank’s administra­
tive services division and has been a
member of the management commit­
tee.

G. H. CLAY

R. GUFFEY

FDIC Will Continue
3-State Joint Exams
Chairman Frank Wille has an­
nounced that the Federal Deposit In­
surance Corporation will continue on
a modified basis the examination ex­
periment begun in Georgia, Iowa and
Washington in January, 1974.
During 1976, however, the experi­
mental program will be changed and
the FDIC will examine the 60% of the
insured nonmember banks in Georgia
which it had not examined during the
past two years, the 50% in Iowa it had
not examined, and the 80% in Wash­
ington it had not examined. These
banks, numbering about 525, had been
examined solely by the respective state
banking departments in 1974 and
1975.
During the course of its examina­
tions during 1976, the FDIC will not
only examine these banks to assess
their current condition, but will also
evaluate the examinations performed

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

during the previous two years by the
respective state departments.
As part of the continuing experi­
ment, the FDIC will not examine in
these three states those banks which
it has examined during the past two
years, leaving their examinations sole­
ly to the respective state banking de­
partments. In Georgia this amounts to
40% of the insured nonmember banks,
in Iowa 50%, and in Washington
20%.
Consistent with the previous years’
arrangements, the FDIC has reserved

the right to examine any bank whether
or not it is scheduled for exclusive state
examination during 1976 and has also
reserved the right to terminate or
modify the program at. any time. The
FDIC will also continue, during 1976,
to examine all nonmember insured
banks in the three states for compli­
ance with certain Federal laws, includ­
ing the Truth in Lending Act, the Fair
Credit Reporting Act, the Bank Pro­
tection Act, the Bank Secrecy Act, and
certain disclosure and equal opportuni­
ty laws.

It s a Big Job, When It's Done Right

A
w

ALLISON-WILLIAMS COMPANY
1445 Northwestern Bank Building, Minneapolis, Minnesota 55402
Phone ( 6 1 2 ) 3 3 3 -3 4 7 5

Providing Service to Institutions and Private Investors
for Nearly 60 Years

$ 2 , 000,000
Subordinated Capital Notes
10%—1975 Series A
DUE OCTOBER 1, 1987

9%— 1975 Series B
DUE JUNE 1, 1983
Consisting of Subordinated Capital Notes at an Offering Price of $1.000
Each or Multiples Thereof.
These notes shall not represent deposits, will not be insured by the Federal
Deposit Insurance Corporation, and are subordinated to the claims of
depositors and to other creditors and senior indebtedness of the Bank, as
more fully described in the Offering Circular.

This announcement is not an offer to sell nor a solicitation of an offer to buy
these subordinated capital notes. Offering is made only by means of the
Offering Circular, copies of which may be obtained from The Security National
Bank of Sioux City, Sixth & Pierce Streets, Sioux City, Iowa 51101

The Security National Bank
of Sioux City, Iowa
DECEMBER 1, 1975

N orthw estern

Banker.

M arch

1976

48
BOND AND INVESTMENT SURVEY . . .
(Continued from page 29)
gy which will provide the necessary liquidity to meet
this challenge.
Ned K. Job, president, Iowa State Savings Bank,
Knoxville, la., deposits $21.5 million: I feel that
bankers who have turned their investment portfolio
completely over to an outside party need to continually
review and approve all purchases and take a look at the
makeup of their portfolio. Even though a banker might
feel it is easier to turn the investment portfolio over to
an outsider, he should keep in mind that many bankers’
“best friends’’ sold them New York City bonds and
Penn Central bonds.
Alfred C. Nowaczyk, president, Bank of Bellwood,
111.,, deposits $29 million: A more detailed analysis is
required of the financial condition of state and
municipal securities.
Lynn D. Grobel, president, First National Bank,
Glasgow, Mont., deposits $28 million: The year 1976

Bank Profitability Study
The nation’s medium-sized commer­
cial banks were more profitable than
either the larger or the smaller banks
during the first half of the 1970s, ac­
cording to an article by Edward C.
Gallick in the January Monthly Re­
view of the Federal Reserve Bank of
Kansas City.
The relatively weak performance of
the net return on assets ratio of the

may show banks our size how easy it was to have made
pretty good money during 1974 and 1975. It looks like
1976 will be one of the more difficult years.
We don’t anticipate much change in our investment
portfolio other than hoping to slightly increase the
overall yield without decreasing the quality or
extending maturities. We are about to our limit on
tax-exempt securities and will probably only be
replacing those that mature. I feel that there are some
good buys in the tax-exempt area. Some of the good
quality western municipalities are paying a higher rate
because of the problems in the east.
Our investment account is on a computer with a
Minneapolis correspondent and we’ve been pleased
with their service. We look to their investment
department for advice, as well as counseling with
several of the major brokerage houses.
As I mentioned above, I ’m looking forward to a good
year in 1976; however, I think that when the year is
over we will look back and think how much easier
things were several years previous.—End

larger banks in the 1970-74 period was
due mainly to the relatively high ex­
penses incurred by these banks.
Greater expenses in turn reflected pri­
marily a sharp increase in the cost of
nondeposit funds.

Heads ABA Trust Division
James W. North, executive vice
president, Chase Manhattan Bank,
New York, was elected president of

612 / 3 7 1 -8 2 7 3
Your direct line for
municipal bond information
5 1!

P Piper, Jaffray & Hopw ood
INCORPORATED

Responsible Portfolio Management
H aw keye Bancorporation
Investm ent M an ag em ent, Inc.
A. Paul Thompson, Chairman

David Taylor, President

Rudolph H. Blythe, V. President

Stephens Building — Des Moines
N o rth w estern Banker, M a rth

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

515-284-1930

the trust division of the American
Bankers Association last month during
the ABA’s 57th National Trust Con­
ference at Atlanta’s Peachtree Plaza
Hotel. Mr. North’s term as president
of the trust division will run from Oc­
tober, 1976, to October, 1977. During
the past year he served as vice president
of the division.
Elected to succeed him as vice pres­
ident was Robert L. Hunt, executive
vice president, Security Pacific Nation­
al Bank, Los Angeles.

SBA Gets New Administrator
President Ford presided at cere­
monies in which Mitchell P. Kobelinski, the son of Polish immigrants, be­
came the administrator of the U.S.
Small Business Administration. Mr.
Kobelinski is the highest ranking per­
son of Polish descent in the federal
government. Mr. Kobelinski, 47, a na­
tive of Chicago, has been a director of
the Export-Import Bank of the United
States for the past two and one-half
years.
Prior to his federal government ser­
vice, the new administrator was in
banking for 23 years in the Chicago
area. He was one of the organizers, of­
ficers and directors of the Parkway
Bank and Trust Company and the
First State Bank of Chicago. He also
was a partner in Parkway Develop­
ment Company, a construction and
real estate development firm in Chi­
cago.
Mr. Kobelinski holds a Bachelor of
Philosophy degree from Loyola Uni­
versity of Chicago and a Juris Doctor
degree from its Law School.

49

country. They found that cities such
as New York, Detroit, Cleveland and
Washington have used similar pro­
grams quite effectively in reducing
bank crimes.
In Kansas City the Clearing House
has been encouraged to take an active
role in this area by the Federal Bureau
of Investigation, the Kansas City, Mo.,
police department and the Kansas City
Crime Commission. Thanks to the
overwhelming support of these groups,
the banking community, and the media
of Greater Kansas City the program
is operational.

director of BMA’s research and plan­
ning department. Mr. Fowler, working
with the BMA research and planning
council, also developed the original
survey from which the publication is
drawn.
In describing the purpose of the new
survey, Mr. Callan noted that although
general data on bank compensation
has been reported for many years, no­
where before has the chief marketing
officer’s pattern of compensation been
probed—beyond just asset size and re­
gion.
“And nowhere before has the bank
chief marketing executive been profiled
across different bank sizes,” he said.

Publishes Bank Marketing
Compensation Study
Publication of the Bank Marketing
Association’s first official study on
compensation for BMA members in
charge of the bank marketing function
was announced recently by Eugene J.
Callan, BMA president and executive
vice president, The New York Bank
for Savings, New York City.
Entitled the 1975 Bank Marketing
Compensation Survey, the publication
was authored by Richard C. Fowler,

U.S. Savings Bonds Hit
Record High of $7 Billion
United States Savings Bonds sales
hit a record high of more than $7 bil­
lion during 1975, Treasury officials
said recently. This is the highest sales
figure for Series E and H Bonds since
H Bonds were introduced in 1952.
Total year-end holdings of Series E
and H Bonds were $67.5 billion. In­
cluding Freedom Shares—which were
withdrawn from sale in 1970—the to­
tal adds up to $67.9 billion.

K. C. Clearing House Opens Fight on Crime
B ANKERS in Metropolitan Kansas

City have just announced a re­
ward program to fight crimes against
v banks. The program, called OPERA> * TION BREAKER — Bankers Re­
ward to Expedite Action against Kid­
napping, Extortion and Robbery — is
r- sponsored by all 110 banks of the
Greater Kansas City Clearing House
Association.
^
“It is our intention that this program
will act as a deterrent to bank robber- ies, along with other bank crimes, and
assist in the apprehension of those
r guilty of such crimes,” said John J.
Sullivan, president of the Greater Kanj- sas City Clearing House Association
> and president of Roeland Park State
Bank in Roeland Park, Kan. “We are
aware of the success of similar pro> grams operating: throughout the coun­
try and we are optimistic that our pro­
gram will enjoy similar success.”
Initial preparation of the system
began in early 1975 when the policy
- and planning committee and the fi­
nance committee of the Clearing
House looked at programs used by
other clearing houses throughout the


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N o rth w e s te rn R a n k e r, M arch 1976

50

"A m an’s got to get some m ud on his boots
before he’s any use out here.”
lh e city is the city.
The country is the country.
That’s a difference we’ve always
appreciated at American National.
And so we offer our correspon­
dents several unusual services
specially developed to meet the
needs of banks outside the big city.
For example, we have an
automated bond accounting service
that can streamline your investment
pricing, and the accounting on your
whole investment portfolio.

T

And we can offer you a whole range of
management tools, from expense reporting
systems to employee benefit programs.
We’ve also staffed our corre­
spondent department with men who
know the country.
One of them is Warner
Frohman. Before he got into
banking, he ran his own farm and
cattle operation.
And we hope you’ll call him,
the next time you need something
from a big-city bank.

THE

AND TRUST COMPANY OF CHICAGO
LaSalle at Washington/LaSalle at Wacker 60690/Phone (312) 661-5000/Member FDIC

N o r tfor
h w eFRASER
s te r n B an ker, M arch
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

AY

51
members: Glenn J. Richter to vice
president and cashier, Christine Viskocil to assistant vice president and trust
officer; Nancy Tomisek to assistant
secretary and assistant trust officer and
John W. Pindiak to assistant cashier
and trust officer.

Illinois
News
ARTHUR

ROBERT

F. B U S B O O M

C.

P re s id e n t

RontouS

SCHRÌMPLE Exec. V . P. C hicago

Peoria Bank/S&L Joint EFT Effort
National Bank
and First Federal Savings and
Loan Association of Peoria have an­
nounced the formation of a joint com­
mittee of officers from the two institu­
tions to research the possibility of pro­
viding a convenient system to allow
central Illinois financial institution
customers access to their accounts
from many retail locations through an
electronic funds transfer system, and
to provide retailers and retail cus­
tomers with an improved system of
check cashing thereby reducing bad
check losses and check cashing diffi­
culties.
David E. Connor, president of the
Commercial Bank, and F. M. Bourland, president of First Federal Sav­
ings stated that this will probably rep­
resent the first “joint effort” of a sav­
ings and loan association and a com­
mercial bank to develop a mutually
compatible system.
The research to be conducted will
be directed toward providing all com­
peting financial institutions with an im­
proved system to provide better and
more convenient services to their cus­
tomers and therefore will be compati­
ble with the needs and requirements
of other financial intermediaries. Per­
missive legislation may be necessary
to permit some of the proposals which
will be developed by this committee.

C

o m m e r c ia l

Bank of Mundelein
Announces Changes
The Bank of Mundelein has an­
nounced the election of John D. Auston to its board of directors and the
promotions of Richard Oppedal and
Gayle S. Mammosser to assistant cash­
iers.
Mr. Auston joined the bank in
March of 1966 shortly after its open­
ing as a teller and has progressed to
vice president and cashier. Mr. Oppe­
dal, who joined the bank in August,
1975, as a loan officer, will serve in
the instalment loan area. Mrs. Mam-

mosser began as a teller in 1967 and
later was advanced to head teller. She
will now be responsible for the teller
service area.

Named at Oak Park
Donald C. Henderson has been ap­
pointed executive vice president of Oak
Park Trust and
Savings Bank, ac­
cording to Wil­
liam R. Langley,
bank president.
Mr. Henderson
joined the bank
in 1950 and is
the c o r p o r a t e
secretary. He is
president of the
HENDERSON
Western C o o k
County Bankers Association.
Bank of Naperville
Appoints 2 Officers
The Bank of Naperville has an­
nounced the recent appointments of
Thomas E. O’Brien to instalment loan
officer and Dennis J. Zuchowski to as­
sistant trust officer in the trust depart­
ment. Mr. O’Brien had previously
served as second vice president of the
Hartford Plaza Bank in Chicago.
Promoted at Cicero
First National Bank of Cicero has
announced the promotions of four staff

Rockford Bank Promotions
Illinois National Bank & Trust Co.
of Rockford has announced the fol­
lowing promotions and staff changes:
Van Anderson and Marvin W. Weber
from vice presidents to senior vice
presidents, Darrell C. Thompson from
investment officer to vice president and
investment officer, Robert E. Sharp
from computer operations officer to as­
sistant vice president.
Two new officers were elected. They
are Bradford P. Piersma, assistant in­
vestment officer, and Thomas H. Scoville, assistant trust officer.
Bank of Westmont Promotes 4
The Bank of Westmont has pro­
moted four officers. They are: Albert
P. Harker, Jr., assistant vice president
and cashier, David L. Smith, as­
sistant vice president; Donald F. Smit,
assistant vice president and personnel
officer and Jean Sirovatka, assistant
cashier.
Mr. Harker has been with the bank
for nearly three years. He previously
served as assistant vice president and
branch manager of the Imperial State
Bank in Vandalia, Ohio.
Promoted at Princeton
Robert I. Zearing, president of the
Citizens First National Bank of Prince­
ton, has announced the promotion of
James E. Coplen to vice president and
trust officer.
A graduate of Purdue University
earning his B.S. degree in business ad­
ministration in 1967, Mr. Coplen has
seven years of experience in trust work
of all types. He joined the bank as
trust officer in 1973.

Illinois 1976 Bank Group Meetings
Group

Date

Location
Sears Tower, Chicago

1

March 16

3

March 17

Oakbrook Sheraton Inn

2

March 18

Joliet Sheraton, Joliet.

4

April 7

Emerald Hills, Sterling

N orthw estern


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ban ker, March

19 7 6

52

Illinois News

Lincolnshire Bank Promotes
Nelson and Crear
The First National Bank of Lincoln­
shire has announced the promotions
of Michael H. Nelson to vice presi­
dent and Steven L. Crear to cashier.
Mr. Nelson, previously cashier,
joined the bank in 1974 after serving

M. H. NELSON

S. L. CREAR

with the Wheeling Trust and Savings
Bank as assistant cashier. Formerly
assistant cashier, Mr. Crear has been
with the bank since it opened in 1973.
Previously he served as a teller at the
First National Bank of Deerfield.

Rolling Meadows Bank
Elects Hoskins Director
Dick Hoskins, president of Hoskins
Chevrolet, Inc., Elk Grove Village,
has been elected to the board of the
Plum Grove Bank of Rolling Mead­
ows. The announcement was made by
Richard D. Hughes, chairman.
Promoted at Harvey
Donald A. Morrison recently was
elected a director of the First National
Bank in Harvey. He is one of the prin­
cipal owners of the Morrison Furni­
ture, Inc., in Harvey and Morrison’s
Ethan Allen Galleries, Olympia Fields.
Donald G. King, bank president, al­
so announced the following promo­
tions: George W. Diersen and Robert
J. Piel from assistant vice presidents
to vice presidents. Both are from the
consumer credit department.
Mr. Diersen began his banking ca­
reer in 1967 as a commercial teller
and was promoted to assistant loan of­
ficer in 1973. Mr. Piel joined the bank
in 1968 as a teller trainee. He was ad­
vanced to note teller and then collec­
tion analyst in instalment loans.
IBA Credit Division
Elects 1976 Officers
Robert Streuter, vice president, City
National Bank of Murphysboro, re­
cently was elected president of the Illi­
N o rthw estern

Banker,

March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

nois Bankers Association (IBA) con­
sumer credit division beginning July
1, 1976.
Other elected include: Lawrence A.
Wilson, City National Bank & Trust
Co., Dixon, first vice president; David
G. Siebert, First National Bank,
Dwight, second vice president, and
Norman C. Peterson, IBA, Chicago,
secretary.
Elected to three year terms on the
executive committee are: C. Paul
Johnson, Alton Banking & Trust Co.,
and Jerome R. Thomas, American Na­
tional Bank & Trust Co., Chicago.
Elected to two year terms are James
N. Brasel, First National Bank, Woodstock, and B. J. King, Herrin Security
Bank. Elected to one year terms are
John Gabel, Citizens Bank & Trust
Co., Park Ridge, and Robert Ritter,
Bank of Pontiac.

Charter Issued For New
Granite City Bank
A charter has been issued to Coloni­
al Bank at 2400 Pontoon Road in
Granite City. Officers are: P. H. Lichtenberger, chairman and president and
George T. Wilkins, Jr., secretary.
IBA Bicentennial Projects
To commemorate the nation’s 200th
birthday, the Illinois Bankers Associa­
tion (IBA) is sponsoring a two-part
Bicentennial project.
The first project, “Your Bank Takes
Root in Tomorrow’s History,” is a tree
planting: program. The idea behind it
is “the Bicentennial isn’t something
you watch: it is something you do.”
Banks can plant, in groups of 10 trees,

a living memorial to recognize and
honor community notables, important
community events and historical com­
munity sites. The banks are planting
Marshall Seedless Ash and Summit
Ash trees.
The second of these projects is
“Your Bank Displays Illinois Tradi­
tion.” This is a display titled “Illinois
and its Banking Heritage,” which con­
tains a collection of documents, origi­
nal photographs of Illinois cities, her
most famous sons, from pre-statehood
through the turn of the century. The
display can be leased from the IBA.

Chicago

News
Sears Bank & Trust has announced
the following promotions: Paul M.
Fasulo, senior vice president and con­
troller; Richard M. Pollack, senior vice
president, investments; Gerald G.
Kirstner, vice president and auditor
and James R. Henry, commercial loan
officer.
* * *
Thomas J. Vavrek was named as­
sistant cashier of the National Bank
of North Chicago. He joined the
bank’s loan department in 1971 after
serving in the U. S. Army. He is a
graduate of St. Norbert College in
West DePere, Wis.

Top Banks in Illinois
and loan figures reported by leading correspondent banks in
DEPOSIT
Chicago as of year-end are shown in the chart below. Comparative
figures for the same period a year ago also are featured.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Continental B a n k ...............
First N a t l ...............................
Harris Tr. & Svgs..................
Northern Trust C o ................
American Natl B & T .............
LaSalle Natl B a n k ...............
Central Natl B a n k ...............
Exchange N a tl......................
Natl Boulevard ....................
Lake View Bank....................
Drovers Natl B ank...............
Commercial Natl, Peoria . .

(Last 3 figures omitted)
December 31,1975
Deposits
Loans
. .$15,000,999 $11,815,691
.. 14,192,788
11,751,379
..
3,188,581
1,807,238
. . 2,794,000
1,790,679
..
1,286,524
711,903
614,609
408,630
534,785
392,670
422,589
317,311
340,464
209,548
329,681
118,183
255,373
177,126
245,539
177,367

December 31,1974
Deposits
Loans
$15,142,639 $12,206,630
12,272,571
15,298,438
1,966,264
3,180,392
3,010,377
2,323,725
841,924
1,207,404
562,419
384,270
602,602
458,260
429,462
329,511
355,903
223,176
328,536
141,431
254,527
202,330
227,604
168,754

53

Looking For Answers?
BAI H as T hem .

At conventions, conferences, seminars, workshops,
think sessions, and courses. Coordinated hy a professional staff with practical
experience in every aspect of bank administration. Providing the most effective tools,
techniques and problem-solving ideas to help you cope with today s ever-changing
banking environment. So plan now to attend a BAI convention in 1976. You 11 be able
to discuss your banking needs with people in the know—bankers, educators,
consultants—authorities in the financial community who will add new dimensions to
your banking professionalism.

Be sure to attend one or more of the following major meetings in 1976:
A p ril 4-6
E astern R eg io n a l C on v en tio n
N o rfo lk , V irg in ia

Ju ne 6-8
W estern R eg io n a l C o n v en tio n
Salt L ake C ity , U tah

F ebruary 1-3
ER ISA C o n fe ren ce
C h ica g o , I llin o is

A p ril 2 0 -2 2
C o n fe ren ce on B a n k H o ld in g
C om pan y A d m in istra tio n
St. L o u is, M issou ri

A u g u st 1-8
T h e G radu ate Program in B ank
A d m in istr a tio n
M a d iso n , W isco n sin

M arch 7-10
E x ce p tio n Item C o n fe ren ce
C h icago, I llin o is

M ay 2-4
N orth ern R eg io n a l C o n v en tio n
C h ica g o , I llin o is

A u g u st 1-13
S ch o o l for B ank A d m in istra tio n
M a d iso n , W isco n sin

M arch 21 -2 4
E D P A u d it C o n feren ce
K an sas C ity, M issou ri

M ay 16-18
S ou th ern R eg io n a l C o n v en tio n
O k lah om a C ity , O k lah om a

O ctober 17 -2 0
5 2 n d N a tio n a l C o n v en tio n
P h ila d e lp h ia , P e n n sy lv a n ia

January 2 5 -2 7
S even th N a tio n a l C o n feren ce
on B an k S ecurity
N e w O rlean s, L ou isian a

Q

DANK ADMINISTRATION INSTITUTE
303 South Northwest Highway

Park Ridge, Illinois 60068

312-775-5344
N o rth w e ste rn B a n k e r, M arch 19 7 6


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

54
£**££?£*

te li f

Consolidated Statement of Condition
D e ce m b e r 31, 1975
ASSETS
C ash and d u e fro m b a nks
In vestm e nt S e c u ritie s
U.S. T reasury secu ritie s
O b lig a tio n s o f sta tes and p o litic a l subdivisic
F ederal a g e n cie s a n d o th e r secu ritie s
T ra d in g a c c o u n t s e c u ritie s
F ederal fu n d s sold and s e c u ritie s pu rch a se d
u n d e r a g re e m e n ts to resell
Lo an s
B a nk pre m is e s a n d e q u ip m e n t
O th e r real estate
C u s to m e rs ' a c c e p ta n c e lia b ility
In tere st re c e iva ble
O th e r assets
Total Assets

S 359.046,128
140.671.546
174,660.623
25.339,347
66.352,853
28,203,269
960.361,154
12.599,212
6.366,349
13,184,484
15.579,410
4 2,732,835
$1,845,097,210

LIABILITIE S
D ep osits
D em an d de p o sits
T im e d e p o s its
Total D ep osits
Federal fu n d s p u rch a se d and s e c u ritie s sold
u n d e r a g re e m e n ts to re p u rch a se
Fun ds b o rro w e d
A c c e p ta n c e s o u ts ta n d in g
U ne arne d in c o m e
O th er lia b ilitie s
Total L ia b ilitie s

148,355.586
102,447,816
14,355,062
9.227,411
___ 54,736,228
5 1 ,70 0 ,460,052

RESERVES
Reserve fo r p o s s ib le losse s on loa ns

$

17,340,958

$

10,000,000
10,000.000

$

746.216,218
625,121,731
$1,371,337.949

C APITAL FUNDS
C a p ita l notes
4.75% d u e 1990
7.75% d u e 2003
C o m m o n s to ck, $100 pa r value, 250,000 shares
a u th o riz e d and o u ts ta n d in g
S u rp lu s
R eta ine d ea rn in g s
Total C a p ita l Funds
Total L ia b ilitie s and C ap ital Funds

25.000.
25.000.
000
_ _ 57,296,200
S 127,296,200
$1,845,097,210

000

When num bers say a lot about people.
BOARD OF DIRECTORS
1975 was Northwestern’s second best in our 103year-old history for income before securities gains
or losses.
1975 was our best year ever for net income!
We think that sa ys quite a bit about Northwestern
people. Every one of them.

Each month of 1975 seemed to bring new challenges
—difficult, multi-faceted, unusual. The economic sig­
nals were confused and askew and a reliance on hu­
man judgment became more important than charts.
Each month, Northwestern people read the signs
and responded resourcefully. They responded with
one eye to good bank management and another to the
community's financial needs.
Thr6u0h it all, Northwestern people made theyear
N orthw estern

B an ke r, March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

a successful one, for ourselves and for our customers.
And, because of our people, Northwestern Bank
enters the Bicentennial year confident, secure and
optimistic.
We’re mighty proud of our people.

Northwestern
National Bank

Of Minneapolis

An Affiliate of Northwest Bancorporation

Member FDIC

Banco.

Judson Bemis
Chairman and
Chief Executive Officer
Bemis Company. Inc.
Fredric H. Corrigan
Chairman of the Board and
Chief Executive Officer
Peavey Company
Kenneth N. Dayton
Chairman
Dayton Hudson Corporation
James C. Harris
Vice Chairman of the Board
and Chairman of the
Trust Committee
Northwestern National Bank
Philip B. Harris
Chairman of the Board and
Chief Executive Officer
Northwestern National Bank
John M. Hollern
Chairman of the
Executive Committee
Brooks-Scanlon, Inc.
Byron E. James
Chairman of the Board
McQuay Perfex, Inc.

Geri M. Joseph
Contributing Editor
Minneapolis Tribune
Paul W. Kraemer
President and
Chief Executive Officer
Minnesota Gas Company
Donald W. McCarthy
President
Northern States
Power Company
John A. McHugh
President
Northwestern National Bank
Raymond 0. Mithun
Founder Chairman
Campbell Mithun, Inc.
John A. Moorhead
Retired Chairman
Northwestern National Bank
John. W. Morrison
Vice President and
Chief Financial Officer
Honeywell Inc.
William G. Phillips
Chairman and
Chief Executive Officer
International Multifoods
Corporation

John S. Pillsbury, Jr.
Chairman and
Chief Executive Officer
Northwestern National Life
Insurance Company
Henry T. Rutledge
Chairman and
Chief Executive Officer
Northwest Bancorporation
Fred M. Seed
Retired President
Cargill, Incorporated
Otto A. Silha
President
The Minneapolis Star and
Tribune Company
William H. Spoor
Chairman of the Board
The Pillsbury Company
George R. Steiner
President
American Linen Supply Co.
Richard H. Vaughan
President
Northwest Bancorporation
David M. Winton
Chairman of the Board
The Pas Lumber Company Ltd.

55
known as First National Bank. He be­
came president and retained his title
of cashier and director. In 1956 Mr.
Schroeder was named chairman.

Minnesota
News
~ > JOHN
'

0,

C H IS H O L M

T. L. JEFFERS

»
.
*
>„
' v
*
v
"*

P re s id e n t

Exec. V .P .

R o c h e ste r

M in n e a p o lis

To Head Anoka Bank
Lawrence P. Keillor has been elected
president of the First National Bank
in Anoka. Lee
Carlson,
vice
president of Main
Motor Sales and
Service, has been
elected to the
bank’s board.
Mr.
Keillor
joined First Na­
tional in 1943. In
1945 he was
L. P. KEILLOR
elected assistant
cashier and in subsequent years rose
to senior vice president. He was elected
a director in 1958.

Appointed to Board
Of Duluth Bank
Robert J. Rich, Sr., has been apv pointed to the board of directors of the
Northwestern Bank of Commerce,
v Duluth. He is president of RLR Com­
munications and KBJR-TV, formerly
WDSM-TV of Duluth-Superior.
' ; Altura State Elects
Top Executive Officers
>
Francis Kramer recently was elected
r president and chairman of the Altura
State Bank. He has been a board mem­
ber for over 30 years.
* Thomas L. Doran was named
executive vice president and is the
chief executive officer. He has been
with the bank for the past 16 years
as cashier.
Jim Kramer advanced from asv > sistant cashier to cashier. He is the
- third generation of the Kramer family
affiliated with the bank. Patricia
*■ Schultz was appointed assistant cash­
ier.
> Citizens State, Brainerd,
► Election, Promotion
Citizens State Bank of Brainerd has
announced the election of Everett
Henrickson to executive vice president

Buy Bank of Elbow Lake
Larry A. Smith, president and
chairman of the Bank of Elbow Lake,
has announced that J. J. Connole and
W. W. Schoenwald of Minot, N. D.,
have purchased controlling interest in
the bank. Mr. Smith also announced
election
of the following directors:
and the promotion of Harold Sweeney
L.
A.
Smith,
J. J. Connole, W. W.
to vice president and senior loan offi­
Schoenwald,
Harlen
O. Estenson,
cer.
Mr. Henrickson joined the bank in Richard A. Stonestrom and Harriett
1974 as vice president after serving 11 C. Rosengren.
L.
A. Smith remains president and
years as senior vice president with the
Ellis Group of Banks in Florida. Mr. chairman and J. J. Connole is now ex­
Sweeney has been with the bank as ecutive vice president.
Mr. Connole has been an officer at
manager, instalment loan department,
the
First National Bank in Minot for
and vice president since May of 1968.
the past 15 years. He most recently
was cashier and secretary of the board.
First Edina National
Mr. Schoenwald has been in invest­
Elects Bermel to Board
ment planning and real estate in Minot
Warren R. Hinze, president of First for over 18 years. He will not be mov­
Edina National Bank, has announced ing to Elbow Lake but will be active
the election of Bruce C. Bermel to the in the management of the bank as a
bank’s board. Mr. Bermel is executive director and consultant.
vice president of Bermel-Smaby Real­
ty, Inc.
To Head Walker Bank
Clarence J. Elsenpeter of The First
Northfield National Names
National Bank of Walker has an­
Finnern Vice President
nounced changes in the bank’s officers.
Wayne A. Finnern recently was pro­ They are: Mr. Elsenpeter, from pres­
moted to vice president of the North- ident to chairman; Clifford G. Swen­
field N ational
son, president; John C. Elsenpeter,
Bank.
josJ l i*
executive vice president; Christopher
Mr. Finnern,
A. Opheim, cashier and auditor, and
who heads the É K
Thomas P. Abelmann, assistant cash­
JM
bank’s commer­
ier.
*
cial lending activ­
ities, began his
Wayzata Bank and Trust
career in 1970 at
Election and Promotion
First Merchants #ff|M
Clarence Rosen, Jr., has been
111;
State Bank in St.
elected to the board of Wayzata Bank
Paul and transW . A. FIN N E R N
and Trust Co. Mr. Rosen joined the
ferred to First
bank in 1964 and was elected cashier
Minnehaha National, Minneapolis, in in 1971 and vice president and cashier
1971. He joined the Northfield bank in 1975.
as assistant cashier in 1972 and was
Also announced was the promotion
elected assistant vice president in 1974. of Dawn Minnick to manager of the
bank’s new Auto Bank. She joined the
bank in 1968.
Henry W. Schroeder
Funeral services were held recently
for Henry W. Schroeder, chairman of Crookston Bank Directors
Armin Ross and Lee Wall have
the First National Bank of Long
been elected to the board of directors
Prairie.
Mr. Schroeder joined the Peoples of Polk County State Bank of CrooksNational Bank in 1906 and was ap­ ston. Mr. Ross farms 2,600 acres in
pointed assistant cashier in 1908 and the Fisher and Erskine areas. Mr. Wall
elected a director in 1915. In 1947 he is associated with John Padden, Morris
purchased the stock of the Bank of Dickel and Kenneth Tohannson in the
Long Prairie which later became practice of law.

■yr r

N o rth w e s te r«


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B an ke r, M arch

1976

56

"Tk IRECTORS of First National
Bank of Minneapolis recently
elected DeWalt H.
Ankeny, Jr., presi­
dent and member
of the board.
He succeeds
George H. Dixon,
chairm an
and
president, who
was nominated by
President Ford to
be Deputy Secre­ D. H. ANKENY, JR.
tary of the Trea­
sury. Mr. Ankeny’s election and Mr.
Dixon’s resignation from his First Min­
neapolis posts became effective when
the latter was confirmed and sworn in
last month.
No other changes in the bank’s or­
ganizational structure are planned at

G. H. DIXON

r. a .

FRANDEEN

this time, and the position of chairman
will remain vacant.
Mr. Ankeny, 43, began his career
with First Minneapolis in 1967 as an
officer in the trusts and investment
management group and subsequently
advanced through various responsibil­
ities in the banking area.
For the past year he has been execu­
tive vice president in charge of the re­
tail and investment services group. Al­
so he is a member of the bank’s policy
and planning committee and the execu­
tive credit committee.
Prior to joining the bank he was
with the Theo. Hamm Brewing Co.,
from 1955 to 1966. Mr. Ankeny atNarthw esfern

Banker,

M arch


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

tended Blake School in Hopkins and R. Jordan from vice president and
Phillips Exeter Academy in Exeter, cashier to senior vice president and
N.H. He graduated with honors from Leroy S. Petrasek, assistant cashier, to
Dartsmouth College in 1954, and the cashier.
following year received an MBA from
Mr. Jordan, who has been with the
the Amos Tuck School and an MS in bank for 41 years, was elected a direc­
engineering from the Thayer School of tor last year. Mr. Petrasek joined the
Dartmouth.
bank in 1962.
* * *
Mr. Dixon, 55, joined First Min­
neapolis as president in 1968, and sub­
National City Bank of Minneapolis
sequently also became chairman. A na­ recently announced the appointment of
tive of Rochester, N.Y., he previously Rolland E. Glesswas vice president-finance and treasur­ ing to investment
er of the Sperry and Hutchinson Com­ officer.
pany, the S&H trading stamp firm. He
Prior to joining
is a graduate of the Wharton School National City, Mr.
of Finance and holds an MBA degree Glessing was as­
from the Harvard University Gradu­ sociated with Se­
ate School of Business.
curity State Bank
Richard A. Frandeen has joined the in Howard Lake.
bank as assistant vice president in the A native Minne­
commercial banking group. Mr. Fran­ sotan, he received
R E GLESSING
deen, a native of Minneapolis, has his B. S. degree in
been with Citizens and Southern Na­ 1968 from the University of Minnesota.
tional Bank since 1971, serving in the
* * *
Atlanta headquarters and as manager
John
R.
Winsor
has been elected an
of the bank’s New York service of­
executive
vice
president
of Piper, Jafffice.
ray
&
Hopwood
Incorporated,
a Min­
In addition the bank has announced
three promotions; Susan D. Wright, neapolis-based investment securities
real estate officer, residential loans di­ firm. In addition, R. Rodney Pakonen
vision; Jerald W. Raarup, bond in­ has been elected a vice president and
vestment officer, money market divi­ Ingolf Hermann and John J. Spindler
sion; and Diane L. Sorem, investment assistant vice presidents.
Mr. Winsor, formerly a senior vice
officer, first Total Plan division.
president, recently was elected to the
% ifc
board of governors of the National As­
Cherokee State Bank, St. Paul, has sociation of Securities Dealers.
announced the promotions of William
First State Bank of Saint Paul has
elected Otto B. Klett chairman, Her­
bert J. Wogsland president and Rob­
ert W. Gibson assistant vice president.
Mr. Klett was advanced from the
presidency which he had held since
1968. Mr. Wogsland previously was
a vice president of First Bank System,
Inc. Mr. Gibson joins the bank from
First Grand Avenue State Bank in St.
Paul. His new duties will be centered
W. R. JORDAN
l. S, PETRASEK
in the instalment loan department,

Hawaii
isforsalein
Minneapolis.
The Municipal Bond Market.
When Hawaii, or anypiace else for that matter,
issues a bond, chances are it’s tor sate in Minne­
apolis.
When it’s for sale here, it’s because the people in
our Municipal Bond Division
have built First Minneapolis
into a major factor
in the market.
We’re dedicated.

Personal representatives, traders, research peo­
ple and an entire staff of Municipal Bond experts
have every technical advancement to help maxi­
mize portfolio performance.
Currently, we’re the Upper Midwest's largest
bond deafer. We're growing, and you’-e
invited to grow along.
Call: (612) 370-4425.
The Municipal
Bond Division.

X 0 4 2 .1

M

H '» *
«f Ä Ä * <*f
« I«»«? <«nilZ )<>
«»■» if<te n •«•* **».*&*# ftemtf. a re
a t ih r attira e>f th e IH e e rfa t tei
t h m a ^ f u , Mamma, » r e t M e *>pt*afr o f /A,- frottier. « I ?¿>,„ L ¡ w ;,„¿
<;
>hr liti) II* i W t * « t i s n ,.u
f
o f t h è W«i>*
/#«•***
Am sasteM m k, *»> x*»
M é T Í Í Í " 4¡ S £ V *
*"" * *
ito » Berna* e4 U fi: .. S to

¿ J J !;*
; ? “* * "
*»
re*P*«n> * »*»«•*?
( iM m « ,« » «*
* ’“/ m y w8y? t>”‘ »< t»»* t® tom** tm am» i« t v t * * t p*ym ***,*4tit*> a
jm x m fs h tt «m arna* th e r e o f, tk t i n t a r m i a e a r m x i th e r e o n t a */»« «i«to
« ? & ***» & < ** « j m m m f w o f ih » principiÚ a m o u n t rede»
fm
**fb *< t* w f e h m m » M . a m :
>t r*d # *m r é
t ß f ? l ' sf :
*$ **ft**K *«d
a m i t o a n d io H m d m g F ,- h
tfrfritAf r,aß® T , I f u-m th a n a lt th e b o n d * o f a m / w S « ñ % w
redimì Ut
L .W
sh uff h r
e e fa d b p lo t, i n the
t h is - h a n d ** 1

w&c* «/ ?&«? redemption hereof rtmthuj thrjjteg^m

Æ#Siga-l^æ-jfeaîgCTa^.—- ¡<'1
Cf, *yj£frto??£<>fa a n d the ..».«aiim - .

Municipal Bond Division • First National Bank o? Minneapolis • 120 South Sixth St. . Member FDIC


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N orthw estern

B a n k e r, M arch

197Ú

58

Twin City News
(Continued from page 56 )

t was jointly announced February 18
Iboard
by Philip B. Harris, chairman of the
and chief executive officer of
Northwestern National Bank of Min­
neapolis, and Edson W. Spencer, presi­
dent and chief executive officer of
Honeywell Inc., that John W. Morri­
son, vice president and chief financial
officer of Honeywell, will become

h

v f

.-» B re a #

P. 8 . H AR R IS

J. A . M c H U G H

W.

F. RICH

J. W .

M O R R IS O N

J. C. H ARRIS

E. P. GILLETTE

chairman and chief executive officer
of Northwestern National Bank of
Minneapolis, effective July 1, 1976. A
director of the bank since 1968, Mr.
Morrison will replace Mr. Harris upon
the latter’s retirement. Mr. Harris also
announced that John A. McHugh,
president, will become chief operating
officer of the bank.
Mr. Morrison is a graduate of Yale
University and Harvard Business
School. A World War II veteran of the
U. S. Air Force, he has been with Hon­
eywell since 1948. In December, 1968,
Mr. Morrison became vice president
and chief financial officer and was
N orthw estern

Banker,

March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

elected a director of Honeywell in Feb­
ruary, 1972. He is a director of North­
western National Life Insurance Com­
pany and Wayne-Gossard Corporation
of Humboldt, Terni., as well as a direc­
tor of the Children’s Home Society of
Minnesota. Mr. Morrison’s replace­
ment at Honeywell will be selected pri­
or to his departure from the firm in
June, 1976, according to Mr. Spencer.
Mr. McHugh, a graduate of the Uni­
versity of Minnesota Law School,
joined the bank in 1954 as a trainee
and by 1968 had risen to senior vice
president. In that year, he was elected
president of Northwestern National
Bank of St. Paul and was credited with
much of the extraordinary growth of
that bank over the next six years. In
1974, he returned as president of
Northwestern National Bank of Min­
neapolis.
Mr. Harris said that Mr. Morrison’s
background as the top financial officer
of a leading industrial firm and his ex­
perience in both domestic and interna­
tional markets would be helpful to the
bank in its plans for the future. Well
acquainted in banking circles, Mr.
Morrison’s active involvement with
Northwestern over the past seven years
as a director will enable him to further
the “executive team” concept instituted
by Mr. Harris when he became chair­
man and chief executive officer in Jan­
uary, 1974. Continuing as members of
that team, in addition to Mr. Morri­
son and Mr. McHugh, are:
James C. Harris, vice chairman and
chairman of the trust committee, who
joined Northwestern in 1947 after
earning his MBA from the University
of Minnesota.
Willis F. Rich, Jr., executive vice
president, who joined Northwestern in
1947 and is responsible for all com­
mercial banking activity.
E. Peter Gillette, Jr., executive vice
president, is responsible for all retail
banking, marketing, communications
and personnel operations.

father, Frank J. Schiefelbein, who did
not stand for re-election. The senior
Schiefelbein is chairman of Midwest
Oil and has served as a bank director
for the past 20 years.
*

*

Fred M. Semi has been elected mar­
keting officer and advertising manager
of First Bank Sys­
tem, Inc.
Mr. Senn joined
the system as ad­
vertising manager
in 1972 from the
government and
aeronautical prod­
ucts division of
Honeywell, Inc.
He is a graduate
F M SENN
of St. John’s Uni­
versity in Collegeville, Minn.
* * *
James W. Reagan, president of the
American National Bank and 1rust
Company of St. Paul, has announced
the following promotions: Joseph E.
Edell to senior vice president and
chief finance officer, John 1. Phillips
to senior vice president and senior trust
officer and Milan J. Thoreson to retail
banking officer. He also announced
new officer elections: Thomas G.
Gross, Richard N. Hess, Anna Kohout
and Kathleen A. Whaley to retail
banking officers and Gregory A. Karl­
stad to data processing officer.
* * *
Harold S. Myers of Omaha, Nebr.,
and David C. Myers of Weeping
Water, Nebr., recently purchased con­
trolling interest in the State Bank ol

D. FARBER

# * *
Wendell L. Olson, president of the
Fourth Northwestern National Bank of
Minneapolis, has announced that
Charles G. Schiefelbein has been elect­
ed to the bank’s board of directors. Mr.
Schiefelbein is president of the Mid­
west Oil Company of Minneapolis.
Charles Schiefelbein replaces his

*

J. D. PH ILPO TT

St. Anthony Village, Minneapolis,
from Allan Burrill and Dan Burrill.
The Burrills have owned the bank
since 1958.
The new owners have been in bank­
ing in Iowa, Nebraska and Colorado.
Donald Farger, previously president
of the Bank of Niobrara, is the new

59

M ovin' on up

N A T IO N A L C ITY B A N K
OF MINNEAPOLIS
A National City Bancorporation Affiliate

Member F.D 1C.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5th and Marquette
Northw estern

•

3 4 0 -3 0 0 0

Bankert M arch

1976

60

M in n e s o ta N e w s

president and chief executive officer.
Jim I). Philpott, formerly with North­
western Bancorporation, will serve as
senior vice president. Harold S. Myers
will be chairman and David Myers and
Jess Zimmerman of Omaha also will
be named directors.
The Burrills will remain as officers
of the bank. No other changes in per­
sonnel are anticipated.
* * *
Northwest Bancorporation (Banco)
has announced the following elections:
Ronald D. MeLellan, senior vice
president and con­
troller; Thomas
E. Dolan, vice
president,
mar­
keting and con­
sumer
services;
Jackson
L.
Schutte, vice pres'dent and Ireas„ „ MelEtl4N
urer; James H.
Treanor, assistant vice president, and
Charles S. Neerland, assistant vice
president, public affairs and communi­
cations services.
Mr. McLellan joined Banco in 1971
as controller and was named vice
president in 1974. Mr. Dolan began
his banking career at Northwestern of
St. Paul in 1969. Mr. Schutte joined
Banco in 1972 as assistant vice presi-

T. E. D O IA N

J. L. SCHUTTE

i.

A . TREANOR

C. S. NEERLÄND

dent and was elected treasurer in 1974.
* * *
Richard A. Erickson, assistant vice
lent, Midland National Bank, ad­
dressed the Wis­
consin Indianhead
Chapter of the
Bank Administra­
tion Institute at
the annual Employees-Spouse
Night on March
10. The banquet
was held at the
Holiday Inn, Eau
ER IC KSO N
Claire. Mr. Erick­
son’s talk, with the theme of “Your
One Big Opportunity — You,” focused
on employee motivation, self-improve­
ment, and a positive attitude. Mr.
Erickson has addressed a number of
banking groups in the area.
* *
Norman E. Henning, vice presi­
dent and chief engineer of Twin City
Testing and Engineering Laboratory,
Inc., and Robert E. Larson, president
of The Farm Oil Co. have been
named directors of First Security State
Bank of St. Paul.
* * *
Northwest Bancorporation recently
announced a proposed public offering
of 800,000 shares of common stock.
A registration statement covering the

offering was filed with the Securities
and Exchange Commission. Based on a
closing price of $47.50 per share on
Feb. 5, 1976, the amount of the offer­
ing would aggregate approximately $38
million.
Salomon Brothers has been desig­
nated as manager of the underwriting
group that will market the common
shares to the public.
Of the net proceeds from the financ­
ing, approximately $10 million will be
used by the corporation to provide ad­
ditional equity funds for Northwestern
National Bank of Minneapolis, the cor­
poration’s largest bank subsidiary,
while $12 million of the proceeds will
be added to capital funds of other sub­
sidiary banks. The balance will be
added to general corporate funds.
* * *
G. Richard Slade, president of the
Northwestern National Bank of Saint
Paul, has announced the election of
Everett F. Carter to the board and the
appointment of Reverend Monsignor
Ambrose Y. Hayden to the trust com­
mittee.
Mr. Carter is executive vice presi­
dent and director of Buckbee Mears
Company. Reverend Monsignor Hay­
den is vicar general of the Archdiocese
of Saint Paul and Minneapolis with
responsibilities as pastor of the Cathe­
dral and Vicar for finances.
Mr. Slade also announced the fol­
lowing promotions and elections: Den­
nis S. McChesney, vice president,
commercial banking; James J. Diebert, vice president and loan review
division manager; John R. Barthe, as­
sistant vice president and manager of
the collections department; Robert I.
Ryti, Jr., trust operations officer; John
R. Dan. loan collections officer; Jack
V. Pedersen, personal banking officer
and Ann Henneberrv, assistant trust
officer.
Mr. McChesney joined the bank in
1973 as an assistant vice president
from Chemical Bank, New York,
where he was assistant secretary. Mr.
Deibert joined the bank in 1968.

J. J. DEIBERT
N orthw estern

Banker, M a rth


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

D. S. McCHESNEY

Ir*

A

61

_____ Express
sellsmoneyorders
not travelers
cheques.
TRAVELERS EXPRESS, that is. Money orders are not a
“ sideline” with us. We process more money orders, transfer
more funds than any other company with a similar name.
Find out more by calling toll-free: 800-328-4800 *
*ln M innesota call co llect 612-332-7481

1

T h e first n a m e in m o n e y orders.

15 South Fifth Street, Minneapolis, Minnesota 55402
A Greyhound Subsidiary


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MVELERS

EXPRESS COMPANYINC.

© 1976, Travelers Express Company. Inc.

N o rth w e s te rn

B a nker,

M arch

1976

62

M in n e s o ta N e w s

Midland Displays Winners of Art Competition
I

M. D. McVay, e x e c u tiv e v ic e p r e s i­
d e n t o f C a rg ill. In c., h a s b e e n e le c te d
a
d ir e c to r
of
N o rth w e s te rn N a ­
tio n a l
B ank
of
M in n e a p o lis .
At
th e
sa m e
tim e , tw o m e n retir e d
fro m
th e
fe
b o a rd . T h e y a re
John M. Hollern,
c h a irm a n o f th e
e x e c u tiv e c o m m it„M.
te e
of
B ro o k sS c a n lo n , In c ., a n d Fred
tire d p re s id e n t o f C a rg ill,
*

MIDLAND National Bank has on display the Grand Purchase Prize winner and other win­
ning entries in the national art competition sponsored annually by Minneapolis’ Art In­
struction Schools, Inc. Shown are John P. Knutson, Midland’s chmn., & Stacey Pesek
admiring the grand prize entry which was one of 1,000 entries in the 1975 competition.
Contest judges Brent Copp, George Karn and Richard Graham reviewed the entries and
chose one by a local Minnesotan, John Berkey of Excelsior, as winner of the Grand
Purchase Prize.

CONVENTION FACILITIES SECOND TO NONE

IN MINNEAPOLIS
Incomparable Setting. . . Land of Sky Blue Waters!
Incomparable Hotel. . . The New Hotel Leamington!
In c o l o r f u l M i n n e a p o l i s . . . it ’s th e lakes, parks a nd d rives.
In The H otel L e a m in g to n . , . i t ’s th e u n su rp a sse d c a p a b ility to handle

co n ve n tio n s o f virtu a lly any size.

The exquisite Hall of States,

l a r g e s t and f i n e s t hotel b a llroo m

in th e e n t i r e N o r t h w e s t . The ve rsa tile Hall of P residents,
and a tre m e n d o u s se lection o f b e a u tifu l fa c ilitie s in th e Hall of Cities.

Each of these magnificent Halls is q u ic k ly co n v e rtib le in to separate,
so u n d-p roo f, air c o n d itio n e d fu n c tio n room s of various sizes.
Parties o f 20 . . . up to m e e tin g s o f 3 0 0 0 are
possible, and b a n q u e ts for up to 2 0 0 0 are c o m fo rta b ly a rra n g e d.

Eighty luxury suites, in clu d in g 15 to ta lly new deluxe p e n th o u se
and p atio su ite s and o ur 100-room M otor Inn
ro u n d o u t H otel L e a m in g to n ’s tre m e n d o u s resources for th e
u tm o s t in c o n ve n tio n service and SUCCESS.

J

j|

T H R E E G REA T H O T E L S MV O N E

e a m in g to n
IN THE HEART OF MINNEAPOLIS 100% AIR CONDITIONED

F o r co m p le te d e t a ils on c o n v e n tio n f a c ilit ie s an d
4 8 -p a g e c o lo r b r o c h u re , w rite , w ire o r p h o n e S a le s M a n a g e r c o lle c t
(a r e a co d e 6 1 2 ) 3 3 3 -6 1 6 1

600 L U X U R I O U S L Y F U R N I S H E D G U E S T R O O M S - A M P L E
PARKI NG WITH DIRECT HOTEL MOTOR ENTRANCE

Northwestern B a n k e r , M a r c h

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

*

_D. McVAY
..

M. Seed, r e ­
In c .

*

N o r th w e s te r n N a tio n a l B a n k o f
S a in t P a u l h a s b e g u n a u n iq u e p ro g ra m
th a t h e lp s m a n y o f th e v isu a lly im ­
p a ire d h a n d le th e ir o w n b a n k in g , a c ­
c o r d in g to G. Richard Slade, b a n k
p re s id e n t.
T h e n e w p r o g ra m e n a b le s th o s e w h o
r e a d B r a ille to w rite th e ir o w n c h e c k s
b y u s in g a n a lu m in u m te m p la te . B e­
s id e s le ttin g th e w rite r p o s itio n th e
v a r io u s e le m e n ts o n th e c h e c k , it e n ­
a b le s th e w rite r to re c o rd , in B ra ille ,
in fo rm a tio n h e w ill n e e d to b a la n c e h is
s ta te m e n t, w h ic h
a lso a p p e a r s
in
B ra ille .
B e s id e s th e B ra ille p r o g ra m , w h ich
a lso p r o v id e s a s a v in g s p r o g ra m ,
N o r t h w e s te r n / S a in t P a u l is a ls o o f­
fe rin g n e w s ta te m e n ts a n d c h e c k s th a t
a re p r in te d la rg e r th a n n o rm a lly .

Henderson Bank Sold
C o n tro llin g in te re s t in th e S ib ley
C o u n ty B a n k , H e n d e rs o n , h a s b e e n
so ld b y O . L . B ud T o m s o n to L a u r e n c e
H a u g e a n d D a v id C h ris te n s o n o f St.
L o u is P a rk . M r. H a u g e is c h a ir m a n a n d
M r. C h r is te n s o n is p r e s id e n t o f th e
C itiz e n s S ta te B a n k in St. L o u is P a rk .
M r. T o m s o n w ill c o n tin u e a s p re si­
d e n t o f th e b a n k in H e n d e rs o n u n til
J u n e 1, a t w h ic h tim e h e p la n s to jo in
h is b r o th e r , O . J a y T o m s o n , p re s id e n t,
C itiz e n s N a tio n a l B a n k , C h a rle s C ity ,
Io w a.

Deluxe Ups Dividend
J. L . R o s e , p r e s id e n t, D e L u x e
C h e c k P rin te r s , In c ., St. P a u l, h a s a n ­
n o u n c e d th e c o m p a n y h a s in c re a s e d
its r e g u la r q u a r te r ly d iv id e n d f r o m 16
c e n ts to 18 c e n ts p e r s h a re . A to ta l o f
1 1 ,8 5 6 ,7 1 0 s h a re s a re o u ts ta n d in g .

\

Stan The Man!

■

T h e B a n k e r’s B a n k e r
Can a man named Stan be all we say he is? He can if he’s a Correspondent
Banker for Midland National Bank. He’ll give you fast service, advice based on
years of experience and the backing of Midland National Bank’s famous “ Action
Banking Team!” So, whether it’s loan participation, investment advice, data pro­
cessing, transfer of funds, transit collections, access to federal funds or any
other service . . . Stan’s your man. Call our Action Banker, Stan Peterson at
(61 2) 372-7100. He’s the banker’s banker.

Midland National bank
An Affiliate of Northwest Bancoporation

Member FDIC


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ESANCO

n40 1 SECOND AVENUE SOUTH
O
tM
S
MINNEAPOLIS, MINNESOTA
N o rth w e s te rn

Z a n k e r¿ ,

M arch

19 7 6

64

M in n e s o ta N e w s

LEFT — W. C. Dub Hartley, pres., Miami County Natl., Paola, Kan., and Dick Carlander, chmn., MBA bank management committee
and pres., State Bank of Faribault. RIGHT-— Truman Jeffers, exec, v.p., MBA; Lee Gunderson, chmn., ABA communications coun­
cil, pres. Wisconsin Bankers Assn, and exec, v.p., Bank of Osceola, Wis.; John Chisholm, pres., MBA and pres. Marquette B&T,
Rochester, and C. Paul Lindholm, v.p. of the MBA and sr. v.p., Northwestern Natl., Minneapolis.

EFT, Usury Hold Conference Limelight
By

BEN HALLER, JR.
E d ito r

e ffo rts to o b ta in
p a s s a g e o f an E F T S b ill a n d o n e
to
in c re a s e
th e
p e r m is s ib le
r a te
c h a rg e d o n b u s in e s s a n d ag lo a n s w e re
th e p rin c ip a l to p ic s o f d is c u s s io n a t th e
1 5 th S e n io r B a n k M a n a g e m e n t C o n ­
fe re n c e c o n d u c te d la s t m o n th in M in ­
n e a p o lis b y th e M in n e s o ta B a n k e rs A s ­
s o c ia tio n . A p p r o x im a te ly 8 5 0 p e r s o n s
a tte n d e d th e tw o -d a y m e e tin g .
R ic h a rd J . C a r la n d e r , c h a ir m a n o f
th e M B A b a n k m a n a g e m e n t c o m m it­
te e a n d p r e s id e n t o f th e S ta te B a n k o f
F a r ib a u lt, p re s id e d a t th e first se ssio n ,
w h ic h c o v e re d “ B a n k in g L e g is la tiv e I s ­
su e s 1 9 7 6 ,” fe a tu rin g five s p e a k e rs .

L

e g is l a t iv e

o g n iz e s th e n ee d to lo o k a t th e b a la n c e
s h e e ts a n d se e w h a t n e e d s to b e d o n e .
T h e b ill is o n e p a s s e d b y th e M in n e ­
s o ta S e n a te la s t y e a r a u th o riz in g th e
c h a rg in g o f 5% in te re s t a b o v e th e F e d
d is c o u n t r a te (s a m e as n a tio n a l b ill

Favors CBF Bill
T h e H o n . A le c O lso n , S p ic e r, p r e s ­
id e n t o f th e M in n e s o ta S e n a te , w a s th e
le a d o ff s p e a k e r, a d d r e s s in g h im s e lf in i­
tia lly to S F 1 7 8 8 , th e C o n s u m e r B a n k ­
in g F a c ilitie s B ill. H e sa id th e d e n ia l
o f E F T to b a n k s , w h e n sa v in g s a n d
lo a n s a re fre e ly g iv e n th is a u th o rity ,
is lik e te llin g o th e r b a n k s in a to w n
th e y c a n ’t b e o p e n o n S a tu r d a y ev en
th o u g h o n e o f th e o th e r b a n k s a lre a d y
is o p e n a n d g e ttin g b u s in e s s . H e
s tro n g ly s u p p o r ts th e c o n c e p t o f th e
C B F bill a n d fee ls th a t M in n e s o ta n s
a lso s u p p o r t th e fa irn e s s o f h a v in g
o p e n c o m p e titio n in th e E F T field . H e
c a lle d o n b a n k e r s to s h o w a u n ite d
f r o n t o n th is b ill.
O n th e m a tte r o f u s u ry , S en . O lso n
sa id , “ I t w ill b e d e a lt w ith in so m e
fo rm ” this y e a r. H e s a id h e h a s n o t
b e e n a c h a m p io n o f S F 7 3 3 , b u t re c ­
N o rth w e s te rn B a n k e r, M a rch

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

Andy Boss, vice chmn., MBA bank man­
agement committee and pres., St. An­
thony Park State, St. Paul, and Joe Bat­
ten, management consultant from Des
Moines.

p a s s e d b y C o n g re s s ). T h e M in n e s o ta
H o u s e h a d p r o p o s e d 3 % . H o w e v e r, th e
5 % v e rsio n p a s s e d th e c o n fe re n c e c o m ­
m itte e a n d w as a d o p te d b y th e S e n a te .
It n o w a w a its H o u s e a c tio n in St. P a u l.

Legislative Speakers
J o h n S. J a c k s o n , M B A g e n e ra l
c o u n s e l, a n d B ill M c G r a n o f O 'C o n ­
n o r a n d H a n n a n , M B A le g isla tiv e
c o u n s e l, th e n d is c u s s e d s o m e d e ta ils
o f S F 1 7 8 8 a n d S F 7 3 3 , as w ell a s
o th e r p e n d in g le g is la tio n .
G e n e A . B e ito , p r e s id e n t o f N o r t h ­

e r n S ta te B a n k , T h ie f R iv e r F a lls , th e n
g a v e s o m e a s s o c ia tio n b a c k g r o u n d o n
th e C B F b ill. H e re m in d e d th e a u d i­
e n c e th a t e x te n s iv e h e a rin g s h a d b e e n
h e ld a t all d is tric t m e e tin g s o f th e
M B A . L a s t y e a r th e b ill w as p a s s e d
w ith o n ly 10 d is s e n tin g v o te s b e f o r e
b e in g v e to e d b y th e G o v e r n o r. T h e r e ­
d r a f te d b ill h o p e fu lly o v e rc o m e s th e
G o v e r n o r ’s c o n c e r n f o r th e p u b lic
u se rs a n d h a s th e s u p p o r t o f th e o v e r ­
w h e lm in g
m a jo r ity
of
M in n e s o ta
banks.
W.
C . “ D u b ” H a rtle y , p r e s id e n t,
M ia m i C o u n ty N a tio n a l B a n k , P a o la ,
K a n ., r e p o r te d f o r th e A B A o n T h e
F in a n c ia l I n s titu tio n s A c t, th e F I N E
S tu d y a n d o th e r fe d e ra l p ro p o s a ls , r e ­
la tin g th e ir im p a c t o n M in n e s o ta
b a n k s . M r. H a r tle y lik e n e d th e p r e s e n t
s itu a tio n , w h e r e th r if ts a re b e in g g iven
all k in d s o f “ b a n k in g ” p o w e rs lib e r a l­
ly, to a fo o tb a ll g a m e w h e re th e o p p o s ­
in g te a m m u s t p la y w ith re s tric tiv e
ru le s w h ile w a tc h in g th e re fe re e s a d ­
v ise th e o th e r te a m a n d le a d in g th e ir
c h e e rin g se c tio n .

Management Principles
O n th e se c o n d d a y , W . A n d re w
B o ss, v ic e c h a ir m a n o f th e M B A b a n k
m a n a g e m e n t c o m m itte e a n d p r e s id e n t,
St. A n th o n y P a rk S ta te B a n k , p r e s id ­
ed . T h e first a d d r e s s w a s g iv e n b y J o e
B a tte n , a n a tio n a lly -k n o w n m a n a g e ­
m e n t c o n s u lta n t fro m th e D e s M o in e s
firm o f B a tte n , B a tte n , H u d s o n &
S w a b , In c . M r. B a tte n , th e a u t h o r o f
“ T o u g h -M in d e d M a n a g e m e n t,” g av e
a n e x c e lle n t q u ic k re v ie w o f e s ta b ­
lish e d m a n a g e m e n t p r in c ip le s . H e c ite d
th r e e p r in c ip a l c a u s e s as s ta n d in g in
th e w a y o f m a n a g e m e n t su c c e ss: 1.
P r o c r a s tin a tio n . 2 . P a r a ly s is o f a n a ly ­
sis. 3. P a ssiv ity . H e th e n g a v e b a n k e r s
a lis t o f c h e c k p o in ts f o r p e r s o n a l m a n ­
a g e m e n t b e h a v io r , fo llo w e d b y so m e

M in n e s o ta N e w s

Gene Beito, pres., Northern State, Thief River Falls; Bill McGran, MBA legislative coun­
sel, and John Jackson, MBA general counsel.

s u g g e s tio n s to im p ro v e m a n a g e m e n t
s h a rp n e s s a n d c a p a b ility .

EFT Seminar
T h e E le c tr o n ic F u n d s T r a n s f e r S e m ­
in a r w a s s ta rte d off w ith a lo o k a t th e
n a tio n a l s c e n e b y R u s s e ll C . B ro w n e ,
J r ., a d v is o r f o r p a y m e n ts sy ste m to th e
C o m p tro lle r o f th e C u rre n c y , W a s h in g ­
to n , D .C . M r. B ro w n e n o te d th a t E F T
is b e in g d e v e lo p e d e x te n siv e ly in o th e r
n a tio n s a n d a t so m e p o in t in th e f u tu re
th e re w ill lik e ly b e in te rn a tio n a l c le a r­
a n c e s a n d fin a n c ia l c o m m u n ic a tio n in ­
te rc h a n g e . H e sa id th e u ltim a te g o a l is
le ttin g th e c u s to m e r m a k e tr a n s a c tio n s
w h e n a n d w h e re h e w a n ts to , a n d to
e lim in a te th e o v e r b u r d e n s o m e lo a d o f
c u r r e n t p a p e r w o rk .
M r. B ro w n e lis te d th e fo llo w in g im ­
p lic a tio n s f o r c o m m u n ity b a n k s : 1. In
m o s t s ta te s th e w o rd in g o f E F T p r o ­
p o s e d b ills o r la w s c a lls f o r g ra n tin g
a c c e ss to all, a s s u rin g th a t c o m m u n ity
b a n k s w o n ’t b e lo c k e d o u t. 2 . C o m ­
m u n ity b a n k s s h o u ld re c o g n iz e th e ir
fa v o r a b le , u n iq u e p o s itio n w ith lo c a l
c u s to m e rs , 3. C o m m u n ity b a n k s h a v e
a n u m b e r o f s o u rc e s a v a ila b le to th e m

Independent State Bank
Elects 1976 Officers
I n d e p e n d e n t S ta te B a n k o f M in ­
n e s o ta , M in n e a p o lis , h a s e le c te d its
d ir e c to r s a n d o ffic ers f o r 1 9 7 6 . T h e
fo llo w in g o ffic e rs a lso w e re e le c te d d i­
re c to rs : c h a ir m a n — R u s s e ll H a n s o n ,
c h a ir m a n a n d e x e c u tiv e v ic e p r e s id e n t,
S w ift C o u n ty B a n k , B e n so n ; p r e s id e n t
— • G o r d o n C . D o n n e lly , p r e s id e n t,
S ta te B a n k o f W h e a to n ; e x e c u tiv e v ic e
p r e s id e n t — N o e l H . B u s c h ; v ic e p r e s ­
id e n ts — R ic h a rd H . P lu n k e tt, c h a ir ­
m a n a n d p r e s id e n t, T h e R o c h e s te r

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

65

Clinton Morrison, chmn. of the U. S.
Chamber of Commerce, visits with MBA’s
Truman Jeffers before Mr. Morrison’s lun­
cheon address.

fo r g e ttin g in to E F T . A lth o u g h it m a y
b e to o e x p e n s iv e f o r b a n k s u n d e r $ 2 5
m illio n to in itia te a sy ste m , e q u ip m e n t
a n d se rv ic e g e a re d to s m a lle r b a n k s ’
n e e d s a r e a v a ila b le . H e u rg e d all c o m ­
m u n ity b a n k s to p r e p a r e , to u p g ra d e
th e ir o p e r a tio n s , a n d to te s t th e ir c o r ­
r e s p o n d e n ts f o r s tr e n g th s a n d c o o p e r a ­
tio n — a n d g e t se t to m o v e in E F T .
T r u m a n J e ffe rs, M B A e x e c u tiv e v ic e
p r e s id e n t, g a v e a q u ic k slid e re v ie w o f
th e a la r m in g in c re a s e in P O $ in s ta lla ­
tio n s a n d A T M s th r o u g h o u t th e T w in
C itie s a r e a a n d in all o f M in n e s o ta b y
th r if t in s titu tio n s b y v irtu e o f th e ir a l­
m o s t u n lim ite d a u th o r ity to o ffe r th e
s e rv ic e th a t b a n k s m u s t a w a it s ta te le g ­
is la tio n to p e rfo rm . W h e r e th e re w e re
23 lo c a tio n s w ith o n e s&l a fe w
m o n th s ag o , m o re th a n a d o z e n s&ls
n o w h a v e in e x c e s s o f 1 3 0 in s ta lla tio n s
a n d th e n u m b e r g ro w s a lm o s t w e e k ly .
T h e ‘‘V ie w p o in t o f th e R e ta ile r ”
w a s g iv e n by J a m e s D ir la m , d iv is io n a l
c r e d it m a n a g e r o f D a y to n ’s D e p a r t­
m e n t S to re s in M in n e a p o lis . H e l a ­
b e le d E F T S a s a n in te r e s tin g a id to r e ­
ta ilin g , w h ic h r e ta ile r s w ill b e a n x io u s
to lo o k a t f o r d e v e lo p in g b u s in e s s a s

a m e a n s o f p ro v id in g a d d itio n a l se rv ic e
to a ttr a c t c u s to m e rs .
A p a n e l d is c u s s io n w a s th e n h eld
b y th e s p e a k e rs , fie ld in g q u e s tio n s
f r o m th e flo o r.
J o h n C h is h o lm , M B A p r e s id e n t,
a n d a ls o p r e s id e n t o f th e M a r q u e tte
B a n k & T r u s t C o m p a n y , R o c h e s te r,
p r e s id e d a t th e n o o n lu n c h e o n . H e in ­
tr o d u c e d C lin to n M o r ris o n , c h a ir m a n
o f th e U . S. C h a m b e r o f C o m m e rc e ,
w h o g a v e h is “ O u tlo o k f o r B u s in e ss
a n d B a n k in g .” M r. M o r ris o n is v ic e
c h a ir m a n o f th e b o a r d a n d c h a ir m a n
o f th e tr u s t c o m m itte e a t th e F ir s t N a ­
tio n a l B a n k o f M in n e a p o lis .
T h r e e s p e a k e rs c o n c lu d e d th e a f te r ­
n o o n p r o g ra m . L e e G u n d e r s o n , p r e s i­
d e n t o f th e W is c o n s in B a n k e rs A s s o c i­
a tio n a n d e x e c u tiv e v ic e p r e s id e n t,
B a n k o f E s c e o la , d is c u s s e d “ C o m m u ­
n ic a tin g B a n k in g ’s M e s s a g e .” D a v id H .
A b ra m s o n , p r e s id e n t- e le c t, M in n e s o ta
S o c ie ty o f C P A s, a n d m a n a g in g p a r t ­
n e r o f A le x a n d e r G r a n t & C o ., M in n e ­
a p o lis , re v ie w e d “ B a n k A u d its .” W in d ­
in g u p th e p r o g ra m w a s D r. T e d . R .
B r a n n e n , p r o fe s s o r o f m a n a g e m e n t,
U n iv e rs ity o f S o u th e rn C a lif o r n ia .—

B a n k & T ru s t C o m p a n y , E . M ilto n
K lo h n . p r e s id e n t, T o w n & C o u n ty
S ta te B a n k , N e w p o rt, a n d E d w a r d A .
H ennen.
D ir e c to rs a re R o lf B. H a g e , p r e s i­
d e n t. W e s tb ro o k S ta te B a n k ; H a r v e y
E . L a tv a la , p r e s id e n t, F irs t N a tio n a l
B a n k , K e e w a tin ; C la y to n M . N e ls o n ,
p r e s id e n t. S e c u rity S ta te B a n k . E lle n d a le .

o ffic e r o f th e F ir s t N a tio n a l B a n k o f
S p rin g V a lle y .

Named at Spring Valley
M a x in e J a c o b s o n w a s n a m e d a s ­
sis ta n t c a s h ie r a n d c u s to m e r s e rv ic e

2 Promoted at Worthington
F ir s t N a tio n a l B a n k o f W o r th in g to n
h a s a n n o u n c e d tw o p r o m o tio n s . M a rk
W in e r a n d D ary l S ta n d a fe r h a v e b ee n
n a m e d a s s is ta n t c a sh ie rs .

Blue Earth State Bank
Elects Assistant Cashier
R ic h a rd
P re s c h e r
r e c e n tly
w as
e le c te d a s s is ta n t c a s h ie r o f th e B lu e
E a r th S ta te B a n k .
N o rth w e s te rn

Ba nker,

M a rth

1976

66

M in n e s o ta N e w s

Largest Banks in Minnesota
EPOSIT and loan figures for leading metropolitan banks n Minnesota are shown as they were reported at year-end. Comparative
figures for the same period a year ago also are shown.

D

(Last 3 figures omitted)
December 3iI ,1974
December 31, 1975
Deposits Loans
Loans
Deposits
$1,329,736 $993,868
. $1,371,338 $960,361
1. Northwestern Natl., Mpls. . . .
981,852
1,318,047
948,982
. . 1,221,875
2 . First Natl, M pls...........................
963,431
1,175,108
843,298
, . . 1 ,138,708
3. First Natl, St. P a u l....................
149,104
218,893
138,620
.
..
217,438
American
Natl,
St.
P
a
u
l...........
4.
160,239
191,454
145,487
. ..
195.551
5. Northwestern Natl, St. Paul . .
100,700
173,600
108,905
.
182,255
6 . Marquette Natl, M pls................
144,086
99,461
109,176
. ..
166,899
7. Natl City Bank, M pls.................
103,335
156,359
101,318
.
..
157,842
First
Natl,
D
u
lu
th
......................
8.
100,551
143,460
92,253
. ..
143,949
9. Midland Natl, M pls....................
81,473
129,028
81
,437
.
..
127,843
Northern
City
Natl,
Duluth
.
.
.
10.
64,760
85,623
71,255
on
101,356
11 . Northwestern Natl SW, Bloomington
86,554
68,180
70,174
97,468
12. Northwestern Natl, Rochester
76,024
51,293
54,590
86,187
13. Midway Natl, St. Paul .............
46,447
76,624
55,815
83,934
14. First Natl, R o ch ester...............
48,000
66,905
51 ,623
77,742
15. Central NW Nat’l, M pls.............
Mpls., reported deposits of $870,767 and loans of
$663,149. 1974 figures were $811,445 deposits and $662,352 loans.

Gibbon Banker To Head
Citizens State, Lafayette
E a r l G . W ise, f o rm e r ly e x e c u tiv e
v ic e p r e s id e n t a n d d ir e c to r o f S ta te
B a n k o f G ib b o n , h a s b e e n e le c te d
p re s id e n t o f th e C itiz e n s S ta te B a n k
in L a fa y e tte . H e a n d h is w ife, A u d re y ,
re c e n tly p u r c h a s e d s to c k in th e b a n k .
N o o th e r p e rs o n n e l c h a n g e s a r e a n tic i­
p ated .

Nat’l City of Minnetonka
Opens for Business
T h e n ew N a tio n a l C ity B a n k o f
R id g e d a le in sid e th e R id g e d a le S h o p ­
p in g C e n te r, M in ­
n e to n k a ,
opened
fo r b u sin e ss la st
m o n th , a c c o rd in g
to D o n a l d M .
J e rp b a k , p r e s i ­
d e n t . T h e n ew
b a n k ’s in itia l c a p ­
ita liz a tio n is $2
m illio n .
M r. J e r p b a k re d . m . je r p b a k
c e n tly w as e le c te d
p r e s id e n t. H e fo rm e rly w as v ic e p re s i­
d e n t in th e m o r tg a g e a n d in s ta lm e n t
lo a n d e p a r tm e n ts o f N a tio n a l C ity B a n k
o f M in n e a p o lis.
O th e r o ffic ers in c lu d e D e n n is H .
V a n H e e l, v ice p r e s id e n t a n d c a s h ie r
a n d G le n n W . K e lle r, a s s is ta n t v ic e
p re s id e n t.
D ir e c to rs a re L e e R . A n d e r s o n ,
p r e s id e n t, A .P .I . I n c o r p o r a te d ; E d ­
w a rd E . M u e lle r, p r e s id e n t, W h irl-A ir F lo w E q u ip m e n t a n d S u p p ly C o m p a ­
n y ; S im o n R . N a v ic k a s , p r e s id e n t, G a s
N o r tfor
hwe
s te rn B a n ke r, M arch
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J976

S u p p ly , In c .; C liffo rd M . R o b e rts ,
v ic e p r e s id e n t, C a rg ill, In c .; C ly d e B.
R o e , p r e s id e n t, G r e a t P la in s S u p p ly
C o m p a n y ; D e n n is O . T h o m p s o n , p r e s ­
id e n t, O . B. T h o m p s o n E le c tr ic C o m ­
p a n y ; J o e A . W a lte rs , a tto r n e y a n d
p a r tn e r , O ’C o n n o r & H a n n a n L a w
F irm a n d M r. J e r p b a k .

Alexandria Promotions
D e b ra E . B ise k w a s e le c te d in s ta l­
m e n t lo a n o ffic e r o f th e F irs t N a tio n ­
al B a n k o f A le x a n d r ia re c e n tly . L in d a
D u se k w a s e le c te d a u d ito r .

Little Falls Directors
Jo h n
H.
L em m e
and
Jo h n
S im o n e tt h a v e b e e n e le c te d d ire c to rs
o f A m e r ic a n N a tio n a l B a n k o f L ittle
F a lls . M r. L e m m e is p re s id e n t a n d
g e n e ra l m a n a g e r o f L ittle F a lls B r o a d ­
c a s tin g C o m p a n y . M r. S im o n e tt is a
p a r tn e r in th e la w firm o f R o s e n m e ie r
a n d S im o n e tt.

Robbinsdale Bank Selects
Dr. Hills as Director
D r. D a le A . H ills , a R o b b in s d a le
d e n tis t, h a s b e e n e le c te d to th e b o a r d
o f th e in d e p e n d e n t G u a r a n ty S ta te
B a n k o f R o b b in s d a le . H e h a s b e e n
p ra c tic in g d e n tis try in th e a re a f o r 3 0
y e a rs.

Elected at Moorhead
H a r o ld L . O ls g a a rd a n d D a v id I.
C a rls e n r e c e n tly w e re e le c te d d ire c to rs
o f th e F ir s t N a tio n a l B a n k in M o o r ­
h e a d . M r. O ls g a a r d is a C o m s to c k a r e a

f a r m e r a n d M r. C a rls e n is v ic e p r e s i­
d e n t o f fin a n c e a t A m e ric a n C ry s ta l
Sugar C o m pany.

First of Hastings
Elects Two Officers
J o n R . B e rg in w as a p p o in te d c a s h ie r
a n d J u lie B o r n e r a s s is ta n t c a s h ie r o f
th e F ir s t N a tio n a l B a n k o f H a stin g s.
M r. B e rg in p re v io u s ly w as a s s o c i­
a te d w ith th e N o r th e a s t S ta te B a n k o f

J. R. BERGIN

J. BORNER

M in n e a p o lis a n d th e G u a r a n ty S ta te
B a n k o f R o b b in s d a le . M rs. B o rn e r h a s
b e e n w ith th e b a n k sin c e 1 9 6 0 . H e r
r e s p o n s ib ilitie s w ill b e in b a n k o p e r a ­
tio n s.

American State, Moorhead,
Selects Directors, Officers
J a c o b S ig m u n d a n d G a le S te n e rs o n
re c e n tly w e re e le c te d d ir e c to r s o f
A m e r ic a n S ta te B a n k o f M o o r h e a d .
M r. S ig m u n d is p r e s id e n t o f S&S C o n ­
s tr u c tio n , F -M A s p h a lt, M id -A m e ric a
C o n tra c to r s , R e d R iv e r T o o l & S u p p ly ,
G r e a te r M o o r h e a d D e v e lo p m e n t C o r ­
p o r a tio n a n d F a r g o G a te w a y C e n te r.
M r. S te n e rs o n is v ic e p r e s id e n t a n d
tr e a s u r e r o f S te n e rs o n B ro th e rs L u m ­
ber C o.
The
bank
a ls o
announced
th e
fo llo w in g o ffic e r p r o m o tio n s :
K en
B e n so n , e x e c u tiv e v ic e p r e s id e n t; R o g -

To Head Mora Bank
J o h n P . I n g e b r a n d r e c e n tly w as
e le c te d p r e s id e n t o f th e K a n a b e c S ta te
B a n k , M o r a , a c c o r d in g to O . J a y T o m so n , c h a ir m a n . F o r th e p a s t six y e a rs,
M r. I n g e b r a n d h a s se rv e d as e x e c u tiv e
v ice p r e s id e n t. M r. T o m s o n p r e v io u s ­
ly w a s c h a ir m a n a n d p re s id e n t.
M r. In g e b r a n d is s e rv in g as vice
p re s id e n t o f th e M in n e s o ta B a n k e rs A s ­
s o c ia tio n S ixth D is tric t a n d h a s b e e n an
in s tr u c to r a t St. O la f C o lle g e B a n k in g
S c h o o l fo r th e p a s t tw o y e a rs.

Promoted at Silver Bay
P a tr ic ia V io la w a s e le c te d c a s h ie r
o f F ir s t N o r th w e s te r n S ta te B a n k of
S ilv e r B ay .

M in n e s o ta N e w s

Mid America of Egan
Election and Promotions
M ic h a e l E . L a r k in , v ic e p r e s id e n t
o f M id A m e r ic a N a tio n a l B a n k o f
E a g e n h a s b e e n e le c te d to th e b a n k ’s
b o ard .
O th e r p r o m o tio n s a n n o u n c e d in ­
c lu d e : T h o m a s D. V a rs , D a n J. S e a b e rg a n d C a rl A . M o n z el to a s s is ta n t
v ice p r e s id e n ts , A u d r e y B e rg to s e c re ­
ta r y to th e p r e s id e n t a n d J o a n C o n ­
n o r to a u d ito r .

2 Advanced at N. Mankato
S te v e C . R o m e , a s s is ta n t c a s h ie r, r e ­
c e n tly w as p ro m o te d to a s s is ta n t v ic e
p r e s id e n t o f th e V a lle y N a tio n a l B a n k

m a n a g e r o f U n ite d B u ild in g C e n te r, to
its b o a r d o f d ir e c to r s . T h e y re p la c e
V ic B o u q u e t a n d L e s te r H o w a tt.
M r. B o u q u e t, r e tire d o w n e r o f th e
f o rm e r B o u q u e t’s S u p e r V a lu S to re ,
se rv e d as a d ir e c to r fo r 10 y e a rs. M r.
H o w a tt se rv e d 2 4 y e a rs as a d ir e c to r
a n d as a v ic e p r e s id e n t sin c e 1 9 6 7 .

Retires at Willmar
O s c a r A . J o h n s o n h a s r e tire d fro m
th e b o a r d o f C itiz e n s N a tio n a l B a n k
o f W illm a r. H e w a s o n e o f th e o r ­
g a n iz e rs o f th e b a n k , w h ic h re c e iv e d
its c h a r te r in 1 9 6 4 , a n d a ls o s e rv e d as
a vice p re s id e n t f o r s e v e ra l y e a rs.

Big Lake Banker Retires
C itiz e n s S ta te B a n k o f B ig L a k e r e ­
c e n tly h e ld a n o p e n h o u s e to h o n o r
M e lv in C . E n g e r, w h o r e tire d a s a
b a n k d ir e c to r a f te r o v e r 4 0 y e a rs o f
se rv ic e . M r. E n g e r a c q u ire d his b a n k
s to c k a n d d ir e c to r ’s s e a t in 1 9 3 5 a t th e
d e a th o f h is f a th e r w h o w a s a c o ­
f o u n d e r o f th e b a n k 10 y e a rs e a rlie r.

S, C. ROME

P. KUNKEL

Detroit Lakes Bank
Elects Lueben Director

o f N o rth M a n k a to . P a t K u n k e l w as
a p p o in te d a s s is ta n t c a sh ie r.
M r. R o m e h a s b e e n w ith th e b a n k
sin c e J u n e o f 1 971 a n d M rs. K u n k e l
s in c e F e b r u a r y o f 1 9 6 9 .

R o b e r t L u e b e n , g e n e ra l m a n a g e r o f
S w ift & C o ., h a s b e e n e le c te d to th e
b o a r d o f th e F irs t N a tio n a l B a n k o f
D e tro it L a k e s . H e s u c c e e d s th e la te
A ld e n P e a r s o n , a f o u n d e r o f th e b a n k .

Community State, Alexandria,
Promotes Anderson, Blank

Winona Bank Elects
Sister Rowland to Board

C a ro l J. A n d e r s o n h a s b e e n p r o ­
m o te d fro m a s s is ta n t c a s h ie r to c a s h ­
ie r o f th e C o m m u n ity S ta te B a n k o f

C. J. ANDERSON

R. C. BLANK

A le x a n d r ia . R o g e r C . B la n k h a s b e e n
n a m e d a s s is ta n t c a s h ie r.
M rs. A n d e r s o n jo in e d th e b a n k a t
its o p e n in g in 1 9 7 2 a n d M r. B la n k in
1973.

o n th e b o a r d o f th e S ta te B a n k o f P e n ­
n o c k f o r 4 3 y e a rs.

Bernard J. Snyder
F u n e r a l se rv ic e s w e re h e ld re c e n tly
f o r B e rn a rd J. S n y d e r, 7 6 . H e h a d
b e e n a ffilia te d w ith F ir s t N a tio n a l
B a n k o f W in o n a f o r 4 2 y e a rs r e tir ­
in g a s a s s is ta n t c a s h ie r in 1 9 5 9 . M r.
S n y d e r jo in e d th e b a n k in 1 9 1 7 as a n
e x c h a n g e c le rk a n d w as n a m e d a s ­
s is ta n t c a s h ie r in 1 9 5 1 .

Richfield Bank & Trust
Staff Assignments
R o b e r t P re n tiss h a s b e e n p r o m o te d
to m a n a g e r o f tr u s t m a rk e tin g an d
p e n sio n s a n d p ro f­
it s h a rin g a t R ic h ­
field
B ank
and
T ru s t C o . C la ire
H e s te r m a n
has
b e e n e le c te d p e r ­
s o n n e l o ffic e r a n d
B ru c e
W in slo w
a s s is ta n t v ic e p re s ­
id e n t.
M r.
P re n tiss
B. WINSLOW
jo in e d th e b a n k
in 1971 a n d M r. W in slo w in 1 9 7 4
a fte r se rv in g a s p r e s id e n t o f th e T h ird
N o rth w e s te rn N a tio n a l B a n k o f M in ­
n e a p o lis fo r f o u r y e a rs.

Joins Pierz Bank

F Jo y d L . M a th io w e tz h a s jo in e d th e
F a r m e r s a n d M e rc h a n ts S ta te B a n k o f
O n e n e w d ir e c to r h a s b e e n e le c te d
P ie rz as c a s h ie r in c h a r g e o f o p e r a ­
a t M e rc h a n ts N a tio n a l B a n k o f W in o ­
tio n s.
n a. S h e is S iste r M . J o y c e R o w la n d ,
M r. M a th io w e tz , 2 8 , b e g a n his c a ­
p r e s id e n t o f th e C o lle g e o f S a in t T e r e ­ re e r as a b a n k e x a m in e r w ith th e S ta te
sa.
o f M in n e s o ta C o m m e r c e D e p a r tm e n t
a n d m o st re c e n tly w a s w ith th e F irs t
S ta te B a n k o f S p rin g L a k e P a rk . H e
Glenwood Banker Retires
E.
A . W a lte r, c h a ir m a n o f th e fills a v a c a n c y c r e a te d w h e n H a rv e y
S e d le c e k , a s s is ta n t c a s h ie r, re sig n e d to
G le n w o o d S ta te B a n k , r e c e n tly r e ­
ta k e a b a n k p o s itio n in W a r re n .
sig n e d b u t w ill r e m a in a d ir e c to r f o r
a n o t h e r y e a r. H is r e tire m e n t c a m e 4 0
y e a rs a fte r h e a rriv e d a t th e b a n k as
First National of Virginia
c a s h ie r. H is b a n k in g c a r e e r s p a n n e d
Elects
Kajala Director
6 0 y e a rs .
G e o rg e V . K a ja la , D D S , h as b e e n
e le c te d to th e b o a r d o f d ir e c to r s o f th e
F irs t N a tio n a l B a n k o f V irg in ia . D o c ­
Cloquet Bank Advances Two
C ity N a tio n a l B a n k o f C lo q u e t h a s
to r K a ja la re c e iv e d h is d e g re e in
a p p o in te d A rle n B. L u n d a s s is ta n t
o r th o d o n tic s fro m th e U n iv e rs ity o f
c a s h ie r a n d p r o m o te d J o a n A . H o ff
M in n e s o ta S c h o o l o f D e n tis try .
fro m a s s is ta n t c a s h ie r to in s ta lm e n t
lo a n o ffic er,

Elected at Springfield

Lake City State Bank
Elects 2 Directors

Bennie H. Edman

L a k e C ity S ta te B a n k h a s e le c te d
H a r le y E g g e n b e rg e r, o w n e r o f R o s e
C lo th in g S to re , a n d K e n n e th G a r b is c h ,

F u n e r a l se rv ic e s w e re h e ld re c e n tly
fo r B e n n ie H . E d m a n , 7 8 , o f r u r a l
P e n n o c k , H e w as a f a r m e r a n d s e rv e d


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

67

G . M . P ie sc h e l, p r e s id e n t o f th e
F a rm e rs & M e rc h a n ts S ta te B a n k o f
S p rin g fie ld , h a s a n n o u n c e d th e e le c ­
tio n o f S ta n D e Z e e u w a n d A lic e
H a u p tli as a s s is ta n t c a sh ie rs .
N o rth w e s te rn

B a nker,

M a rch

1974

sin c e 1 9 6 5 , w a s e le c te d in s u r a n c e o f­
fic e r in 1 9 6 9 a t M o b r id g e a n d in 1 9 7 0
tr a n s f e rr e d to th e m a in o ffic e a s a s ­
s is ta n t m a rk e tin g o ffic e r. H e w as
e le c te d m a rk e tin g o ffic e r in 1 9 7 4 . M r.
C le b e rg jo in e d th e b a n k in 1 9 7 0 a n d
w a s e le c te d a g r ic u ltu r a l lo a n o ffic e r in
1973.

South Dakota
News
TED 5CHANZENBACH
J. I. MILTON SCHWARTZ

President
Secretary

Selby

Aberdeen National Bank
Elects Three Officers

Huron

2 Sioux Falls Banks Merge
J o h n T . V u c u r e v ic h , c h a ir m a n a n d
p r e s id e n t o f U n ite d N a tio n a l B a n k o f
S io u x F a lls , h a s a n n o u n c e d th e m e rg e r
o f th e U n io n B a n k & T r u s t C o m p a n y ,
S io u x F a lls , a n d th e U n ite d N a tio n a l
B ank.
M r. V u c u re v ic h b e g a n h is c a r e e r in
1951 p u r c h a s in g th e R u s h m o r e S ta te
B a n k in H ill C ity . In s u b s e q u e n t y e a rs
he a c q u ir e d v a r io u s s ta te b a n k s in e a s t­
e r n S o u th D a k o ta a n d in 1971 h e a c ­
q u ir e d U n io n B a n k & T ru s t.

s is ta n t c a s h ie r in 1 9 7 3 a n d c a s h ie r in
1975.
M r. W e b b jo in e d th e b a n k in M a y
o f 1 9 7 5 . M r. N ix o n w a s o n e o f th e
o rig in a l in c o r p o r a to r s o f th e b a n k in
1 9 3 8 a n d h a d b e e n p r e s id e n t sin c e
1 9 6 0 . M r. P h iilip p i fo u n d e d th e b a n k
a n d s e rv e d a s p r e s id e n t u n til r e tirin g
in 1 9 6 0 a f te r w h ic h h e c o n tin u e d as
c h a ir m a n .
D r. K e n n e th S c h u lte , a lo c a l v e te r i­
n a r ia n , h a s b e e n e le c te d a d ire c to r.

Named at Clark
Dakota State, Milbank,
Top Executive Changes
D a k o ta S ta te B a n k , M ilb a n k . h a s
a n n o u n c e d th e fo llo w in g p ro m o tio n s ;
M . W . W ise, p r e s i­
d e n t a n d c h ie f ex e c u t i v e o ffic er;
R a l p h R a m se y ,
v ic e p r e s id e n t a n d
c a s h ie r, a n d D e a n
W e b b , a s s is ta n t
c a s h ie r. E a r l F .
N ix o n h a s r e tire d
fro m a c tiv e p a r ­
tic ip a tio n a n d h a s
b e e n n a m e d c h a ir ­
m a n . F . F . P h iilip p i h a s b e e n n a m e d
f o u n d e r a n d c h a ir m a n e m e ritu s.
M r. W ise h a s b e e n a s s o c ia te d w ith
th e b a n k sin c e M a rc h o f 1 9 4 0 . H e w as
p r o m o te d to a s s is ta n t c a s h ie r, in s u r ­
a n c e d e p a r tm e n t, in 1 9 4 7 a n d v ic e
p r e s id e n t a n d c a s h ie r in 1 9 6 0 . H e h a s
b e e n a d ir e c to r sin c e 1 9 5 8 .
M r. R a m s e y jo in e d th e sta ff in S e p ­
te m b e r o f 1 9 7 0 . H e w a s a p p o in te d a s ­

H e le n P e te rs o n a n d T o m L a B rie
h a v e b e e n n a m e d a s s is ta n t c a s h ie rs a t
C itiz e n s S ta te B a n k in C la rk .

3 Receive Promotions
At Aberdeen Bank
T h r e e p r o m o tio n s h a v e b e e n a n ­
n o u n c e d by A . M . S e v e rso n , p r e s id e n t,
F irs t N a tio n a l B a n k o f A b e r d e e n . A t
th e m a in o ffic e, L a r r y K lin g m a n ,
o p e r a tio n s o ffic e r, w as e le c te d c a s h ­
ie r, a n d M ic h a e l E . S w a n to n , m a r k e t­
ing o fficer, w a s a d v a n c e d to a s s is ta n t
vice p r e s id e n t a n d m a rk e tin g o ffic er.
A t th e B r itto n o ffic e, P a tric k C le b e rg ,
lo a n o ffic e r a n d a s s is ta n t m a n a g e r, w a s
p r o m o te d to a s s is ta n t v ic e p r e s id e n t
a n d a s s is ta n t m a n a g e r.
M r. K lin g m a n jo in e d th e b a n k as
a n o ffic e r tr a in e e in 1 9 6 8 a n d w as
e le c te d o p e r a tio n s o ffic e r in J a n u a r y ,
1 9 7 0 . M r. S w a n to n , w ith th e b a n k

J a c k M . T h o m p s o n , p r e s id e n t o f th e
A b e r d e e n N a tio n a l B a n k , h a s a n ­
n o u n c e d th e e le c tio n o f th r e e n e w o f­
fice rs. T h e y a r e E v e ly n N e a l, a s ­
s is ta n t m a n a g e r, in s u r a n c e d e p a r t­
m e n t o f th e S p in k C o u n ty b r a n c h ;
R ic h a r d P . F e r r is , a s s is ta n t c a s h ie r
a n d c o m m e r c ia l le n d in g o ffic e r a t th e
m a in o ffic e a n d D a v id C . M e n tz e r,
a s s is ta n t c a s h ie r a n d a g ric u ltu ra l r e p ­
re s e n ta tiv e a t th e m a in o ffice.
A lso a n n o u n c e d w a s th e r e s ig n a tio n
o f G a r y L . S co field , a s s is ta n t c a s h ie r
a n d a g r ic u ltu r a l r e p r e s e n ta tiv e . H e h a s
jo in e d F ir s t B a n k S y ste m as lia is o n
c r e d it o ffic er.

Joins Waubay Bank
M a rtin (R ic k ) G ru n e ic h h a s jo in e d
th e S ta te B a n k o f W a u b a y as v ice p r e s i­
d e n t.
M r. G ru n e ic h is
a g r a d u a t e of
S o u th
D ak o ta
S ta te
U n iv e rsity
in 1 9 6 9 . H e jo in e d
N o rth w e s te rn N a ­
tio n a l B a n k , S ioux
F a lls , as a n a g r i­
c u ltu r e c r e d it a n a ­
lyst.
He
also
M. GRUNEICH
w o rk e d in th e in ­
s ta lm e n t lo a n d e p a r tm e n t a n d in 1 972
w as a p p o in te d p e r s o n a l lo a n officer.
S in c e 1 9 7 3 h e h a s b e e n w ith th e J. T .
M ille r C o . as a field re p re s e n ta tiv e w ith
th e S o u th D a k o ta B a n k e rs A sso c ia tio n .

Largest Banks in South Dakota
EPOSIT and loan figures for some of the largest banks in South
Dakota are shown in the chart below as they were reported at
year-end. Comparative figures for a year ago also are featured,

D

(Last 3 figures omitted)

R. RAMSEY
O. WEBB

N o r t h w e s t e r n B a n k e r , M a r c h 1 9 76
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1.
2.
3.
4.
5.
6.

Natl Bank of S .D .........................
Northwestern Natl, Sioux Falls
First Natl Bank, Black Hills .
First Natl Bank, Aberdeen.......
First Natl Bank, Sioux Falls ..
United Natl Bank, Sioux F a lls .

December 31, 1975
Deposits Loans
$345,260 $242,535
152,586
249,698
128,658
188,275
139,124
187,225
57,488
92,678
51,627
81,777

December
Deposits
$318,118
226,437
174,168
165,063
81,881
69,067

31, 1974
Loans
$211,497
148,005
125,721
131,316
54,134
38,977

South Dakota N ew s

First State of Highmore
Names Kilber Cashier
R o b e r t L . K ilb e r h a s b e e n e le c te d
c a s h ie r o f T h e F ir s t S ta te B a n k o f
H ig h m o re . H e b e g a n h is b a n k in g c a ­
r e e r in 1 9 5 8 a n d w a s a s s o c ia te d w ith
it f ro m th a t tim e th r o u g h A p r il o f 1 9 6 5
a n d r e tu r n in g a g a in in O c to b e r o f
1970. In Ja n u a ry o f 1971 h e w as
e le c te d a s s is ta n t c a s h ie r.

First National, Sioux Falls,
Promotions, Appointments
A n a p p o in tm e n t to th e b o a r d a n d
th e p r o m o tio n o f th r e e sta ff m e m b e r s
o f T h e F irs t N a tio n a l B a n k in S io u x

id e n t; M ic h a e l M . T w iss, in s ta lm e n t
lo a n s a s s is ta n t m a n a g e r a n d a s s is ta n t
c a s h ie r a n d D o ris B e rg , a s s is ta n t tr u s t
o ffic er.

National Bank of S.D.
Promotes Three Officers
N a tio n a l B a n k o f S o u th
a n n o u n c e d th e p r o m o tio n
B re u k e lm a n
to
a s s is ta n t
v ic e
p re s id e n t, H u ro n
o ffic e,
and
th e
e le c tio n s o f A n n e
G o rm le y to lo a n
o ffic e r, S o u th o f­
fice, S io u x F a lls ,
a n d J im E ic k h o ff
to in s ta lm e n t lo a n
o ffic e r,
R a p id
C ity .
M r. B r e u k e lm a n firs t
b a n k a t its P la tte o ffice in

D a k o ta h a s
o f D w ayne

jo in e d
1966.

th e

69

v a n c e d fro m a s s is ta n t v ic e p r e s id e n t
to v ic e p r e s id e n t a t th e S io u x F a lls
m a in o ffic e. O th e r p r o m o tio n s a n ­
n o u n c e d in c lu d e : H o w a r d F . M a rq u a r d t, m a in , E d ith R e e tz , m a in , B e tty
M . A n d e r s o n , S to c k y a rd s , a n d J a n e t
A . S k y b e rg , W e s tw o o d , a ll to o p e r a ­
tio n s o ffic ers; P a tr ic ia R . W a rin g to
p e r s o n a l b a n k in g o ffic e r a t C o lo n ia l,
a n d J e a n M . C a v a n a u g h , to p e rs o n a l
lo a n o ffic e r a t B ro o k in g s .
M r. C o rn e ll jo in e d th e b a n k a s in ­
s ta lm e n t lo a n m a n a g e r a t M a d is o n in
1 9 6 0 . H e m o v e d to th e m a in o ffic e in
1 9 6 3 a s a s s is ta n t v ic e p r e s id e n t a n d
b e c a m e d e p a r tm e n t m a n a g e r in 1 9 6 8 .
H e h a s m a n a g e d th e W e s tw o o d b r a n c h
sin c e 1 9 7 4 . M r. F id d e s h a s b e e n w ith
th e b a n k sin c e 1 9 5 4 se rv in g as te lle r,
c r e d it a n a ly s t, p e r s o n a l lo a n o ffic er,
a d v e rtis in g d ir e c to r , sy ste m s a n a ly s t
a n d sin c e 1 9 5 9 p e r s o n n e l m a n a g e r.

Retires at Belle Fourche
LONG

NELSEN

BASS

F a lls h a v e b e e n a n n o u n c e d b y Bill
B a k e r, p r e s id e n t.
A rn o ld S. P e d e r s o n , p r e s id e n t o f
P a m O il, In c ., h a s b e e n n a m e d a d i­
r e c to r. F o r th e p a s t five y e a r s h e h a s
b e e n o n th e a d v is o ry b o a r d o f th e
W e s te rn M a ll b r a n c h .
T o m L o n g , w h o is re s p o n s ib le f o r
a g r ic u ltu r a l a n d c o r r e s p o n d e n t b a n k ­
in g o p e r a tio n s , h a s b e e n p r o m o te d to
v ic e p r e s id e n t. H e jo in e d th e b a n k in
1 9 7 4 a n d p r e v io u s ly w a s a s s o c ia te d
w ith b a n k s a t G e d d e s , V a lle y S p rin g s
a n d V e rm illio n .
W a r re n N e ls e n h a s b e e n p r o m o te d
to v ic e p r e s id e n t a n d m a n a g e r, E m ­
p ire b r a n c h . H e h a s b e e n w ith th e
b a n k s in c e 1 9 4 6 s e rv in g in th e m a in
o ffic e u n til 1 971 w h e n h e w as tr a n s ­
f e r re d to th e W e s te rn M a ll b r a n c h as
a s s is ta n t v ice p r e s id e n t a n d a s s is ta n t
m a n a g e r.
G r a c e B a ss h a s b e e n n a m e d a s ­
s is ta n t c a s h ie r in c h a rg e o f th e o r ­
g a n iz a tio n o f th e c o lle c tio n d e p a r tm e n t
d u r in g th e b a n k ’s m o v e to its n e w f a ­
c ilitie s.

Watertown Bank
Announces Promotions
F a r m e r s a n d M e r c h a n ts B a n k a n d
T r u s t o f W a te rto w n h a s a n n o u n c e d th e
fo llo w in g p r o m o tio n s : W illia m
M.
H a n te n , v ic e p r e s id e n t a n d a s s is ta n t
c r e d it m a n a g e r; M a rly n E . K u p e r, v ic e
p r e s id e n t a n d in s ta lm e n t lo a n s m a n ­
a g e r; B u r to n L . C h r is te n s o n , vice p r e s ­

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wilmot Banker Retires
E . W . B o e h m k e h a s r e tire d a s p r e s ­
id e n t o f th e W ilm o t S ta te B a n k a f te r
a 5 0 y e a r c a r e e r in b a n k in g .
H is c a r e e r b e g a n in 1 9 1 8 a t H o l­
la n d , M in n . H e w a s a p p o in te d a s ­
s is ta n t c a s h ie r a t W ilm o t in 1 9 4 2 .

8 Promoted at Northwestern
Of Sioux Falls
L a r r y J . C o rn e ll, a s s is ta n t v ice
p r e s id e n t a n d m a n a g e r o f th e W e s tw o o d b r a n c h . N o r th w e s te r n N a tio n a l
B a n k o f S io u x F a lls , h a s b e e n a d ­
v a n c e d to vice p r e s id e n t a n d W e stw o o d m a n a g e r. J o h n S. F id d e s w a s a d -

R e g in a D o n a h u e , lo n g - tim e e m ­
p lo y e e o f th e B a n k o f B e lle F o u rc h e ,
re c e n tly r e tire d a s c a s h ie r. S h e jo in e d
th e b a n k in 1 9 4 2 .

Burke Bank Announcements
M a rk K n u d so n h a s b ee n n am ed
c a s h ie r o f th e F ir s t F id e lity B a n k o f
B u rk e a f te r a y e a r a n d a h a lf a s s o c ia ­
tio n . A ls o a n n o u n c e d w a s th e e le c tio n
o f M rs . A v is S w ift, a s s o c ia te d w ith th e
b a n k f o r 15 y e a rs, as a s s is ta n t c a s h ­
ie r.
R o b e r t S c h e in o s t, e x e c u tiv e vice
p r e s id e n t o f th e F irs t F id e lity B a n k ,
C o lo m e , w a s n a m e d to th e b o a r d as

¡g il

UNFORTUNATELY

Between Us and Our Leading Competitors

SEE FOR YOURSELVES!
U.S. Check Book Co.

Competitors

Experts in Supplying ALL Bank
Forms and Checks!

......

Expert Men, Calling on the
Banks that KNOW BANKING
Service and Quality
at Competitive Prices!

...........
......

United States Check Book Company
1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 - PHONE 345 3162
OUT STATE PHONE-CALL WATTS LINE I - 800 - 228 • 9246

N o rth w e s te rn

Banker,

M arch

1976

70
a r e s u lt o f th e re s ig n a tio n o f K e n n e th
J o h n s o n a n d L . K . N o rm a n .

M itc h e ll. M s. C o w a n h a s b e e n w ith
th e b a n k f o r six y e a rs . S h e is a g r a d u ­
a te o f D o a n e C o lle g e in C re te , N e b r.

Minot Staff Promotions

Mitchell National Bank
Elects 2 Officers
D e n n is E v e rs o n h a s jo in e d th e
M itc h e ll N a tio n a l B a n k a s a n a g r ic u l­
tu r a l
re p r e s e n ta tiv e
and
D e b o ra h
C o w a n h a s b e e n n a m e d m a rk e tin g o f­
ficer.
M r. E v e rs o n , a g r a d u a te o f S o u th
D a k o ta S ta te U n iv e rs ity , h a s b e e n an
a s s is ta n t c o u n ty s u p e rv is o r o f th e
F arm ers
H om e
A d m in is tra tio n
in

D. EVERSON

D. COWAN

North Dakota
News
G. C. ANDERSON

President

Tioga

W. J. DANER

Secretary

Bismarck

Valley Bank of Grand Forks
Announces Staff Changes
V a lle y B a n k a n d T r u s t C o . o f
G ra n d F o r k s h a s e le c te d L . R u s se ll
B ro w n a n d T o m K . C a lla g h a n to its
b o a r d . L a r r y B ro w n , p r e s id e n t o f
A g sc o , In c ., a n d d ir e c to r sin c e 1 9 5 6
a n d H e n r y L a r s o n , d ir e c to r sin c e
1 9 3 6 , h a v e re tire d .
R u s se ll B ro w n is sa le s m a n a g e r o f
A g sc o , In c . a n d M r. C a lla g h a n is p a r t
o w n e r o f D o w W e ld in g S u p p ly C o .
F iv e b a n k o ffic e rs re c e iv e d p r o m o ­
tio n s . T h e y a r e R o n B r ie h e r, a s s is ta n t
v ic e p r e s id e n t a n d m a n a g e r o f th e in ­
s ta lm e n t lo a n d e p a r tm e n t; P a t G rin d e ,
a s s is ta n t c a s h ie r a n d a s s is ta n t tr u s t o f­
ficer; W a y n e O s tlu n d , lo a n o ffic e r, a n d
M ik e P o r te r a n d D o n n a L a r s o n , a s ­
s is ta n t c a s h ie rs .

th e ir fa th e rs , W illia m J o e rs z a n d W il­
liam R u sse ll.
W a lla c e J o e rs z is p a r t o w n e r o f
J o e rs z
C o r p o r a tio n
th a t
o p e r a te s
M a rv ’s H a r d w a r d a n d B ill’s S u p e r
V a lu . M r. R u s se ll e s ta b lis h e d S p e e d y ’s
T ir e S e rv ic e in 1 9 6 9 a n d n o w h a s f o u r
s to re s in M a n d a n , B is m a rc k , M in o t
a n d A b e r d e e n . H e a lso is p r e s id e n t
a n d g e n e ra l m a n a g e r o f C lo v e rd a le
F oods C om pany.

Merchants Nat’l, Fargo,
Announces 7 Promotions

E le c tio n o f five n e w o ffic e rs o f th e
F a r g o N a tio n a l B a n k a n d T r u s t C o m ­
p a n y h a v e b e e n a n n o u n c e d b y C . S.
M ille r, p r e s id e n t. T h e y a r e J u n e N y g a rd , a s s is ta n t a u d ito r ; Je ff D . H a n s o n ,
a s s is ta n t c a s h ie r; C a ro le S a g e n , a s ­
s is ta n t s e c re ta ry , tr u s t d e p a r tm e n t, a n d
L in d a S a ile r a n d S h a ro n E ric k s o n , a d ­
m in is tra tiv e a s sista n ts.

Elected at Mandan

2 Promotions at Hillsboro

W a lla c e J o e rs z a n d D o n a ld R u sse ll
h a v e b e e n e le c te d d ir e c to r s o f th e
M a n d a n S e c u rity
B a n k su c c e e d in g

T e r r y R e e d h a s b e e n e le c te d a s ­
s is ta n t c a s h ie r a n d D e n n is B o n d y a s ­
s is ta n t c a s h ie r a n d in s u ra n c e d e p a r t ­

5 Elected Officers
At Fargo Bank

N oel K. H a n so n h as b ee n nam ed as­
s is ta n t v ic e p r e s id e n t a n d tr u s t o ffic e r
o f th e A m e r ic a n B a n k a n d T r u s t
C o m p a n y , M in o t. K e n n e th A . L in d e m a n n h a s b e e n p r o m o te d to a s s is ta n t
c a s h ie r in th e in s ta lm e n t lo a n d e p a r t­
m e n t.
M r. H a n s o n jo in e d th e b a n k in 1 9 6 7
as a s s is ta n t v ic e p re s id e n t a n d in 1 9 7 3
tr a n s f e rr e d to tr u s ts . M r. L in d e m a n n
jo in e d th e b a n k in 1 9 7 4 .

Jamestown Bank Promotes 3

S ev en sta ff p r o m o tio n s h a v e b e e n
a n n o u n c e d a t th e M e r c h a n ts N a tio n a l
B a n k a n d T r u s t C o m p a n y o f F a rg o .
T h e y a re R o y J o h n s o n to v ic e p r e s i­
d e n t a n d m a n a g e r o f th e n e w s o u th ­
w e st fa c ility ; D a v id M . K ra m e r, v ic e
p r e s id e n t, o p e r a tio n s ; C h a rle s A . N e l­
so n , a s s is ta n t v ice p r e s id e n t, a g r ic u l­
tu r a l d e p a r tm e n t; P h y llis M . L a r s o n
a n d D a v id P a r is h , a s s is ta n t o p e r a ­
tio n s o ffic e rs, o p e r a tio n s ; W illia m J.
S te n s o n , a s s is ta n t s e c re ta ry , tr u s t, a n d
T h o m a s J. A rc h b o ld , tr u s t fa rm m a n ­
a g e r.
M r. J o h n s o n h a s b e e n w ith th e b a n k
a s a s s is ta n t v ic e p r e s id e n t sin c e M a y
o f 1 9 6 9 . M r. K ra m e r, f o rm e r ly a s ­
s is ta n t v ic e p r e s id e n t, jo in e d th e b a n k
in 1 9 5 9 .


Norffiv/esfern
B a n k e r, M a rch Î 9 7 6
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

m e n t m a n a g e r a t th e N o rth w e s te rn
S ta te B a n k o f H ills b o ro .

T h e F irs t N a ti o n a l B a n k o f J a m e s ­
to w n h a s a n n o u n c e d th e fo llo w in g
th r e e p r o m o tio n s : W illia m N . D u T o it
fro m a s s is ta n t v ic e p re s id e n t a n d a g ri­
c u ltu r e r e p r e s e n ta tiv e to v ice p r e s i­
d e n t; S h irle y H e r rin g to in s u r a n c e o f­
fic e r a n d J e a n W e a th e r ly to a s s is ta n t
c a s h ie r.
M r. D u T o it b e g a n h is c a r e e r w ith
th e b a n k in 1 9 7 0 as a g r ic u ltu r e r e p r e ­
s e n ta tiv e a n d w a s e le c te d a s s is ta n t v ic e
p r e s id e n t a n d a g r ic u ltu r e r e p r e s e n ta ­
tiv e in 1 9 7 2 .

Valley City Banker
Named Boss of the Year
W a lte r B a u e r, p r e s id e n t a n d c h a ir ­
m a n o f th e F ir s t N a tio n a l B a n k o f V a l­
le y C ity , h a s b e e n a w a rd e d “ B o s s o f
th e Y e a r ” b y th e V a lle y C ity J a y c e e s .
M r. B a u e r h a d b e e n a c tiv e sin c e c o m ­
ing to V a lle y C ity in 1 9 5 7 .

Northwestern of Valley City
Announces Staff Changes
E rn e s t J. M ie d e m a h a s b e e n e le c te d
to th e b o a r d o f N o rth w e s te rn N a tio n a l
B a n k o f V a lle y C ity , a c c o r d in g to
K . B . C u m m in g s , p r e s id e n t. H e is th e
c ity ’s m a y o r.
D a r re l T . W a v r a a n d O s c a r A .
L a u z o n h a v e b e e n e le c te d a s s is ta n t
vice p r e s id e n ts . M r. W a v r a jo in e d th e
b a n k in 1 9 6 7 a n d first b e c a m e a n o f­
ficer in 1 9 7 4 . M r. L a u z o n jo in e d th e
b a n k in 1 9 6 6 a n d b e c a m e b r a n c h
m a n a g e r a t T o w e r C ity in 1 9 6 6 a n d
a b a n k o ffic e r in 1 9 7 1 .

Appointed at Fargo
D o n a ld E . M a tte s o n h a s b e e n a p ­
p o in te d a g r ic u ltu r a l r e p r e s e n ta tiv e a t
F a r g o N a tio n a l B a n k & T r u s t C o . H e
is c o m p le tin g r e q u ir e m e n ts f o r his
m a s te rs d e g re e in a g r ic u ltu r a l e c o n o m ­
ic s a t N o rth D a k o ta S ta te U n iv e rs ity .

71

Dakota National, Fargo,
Announces Staff Changes
S te w a rd A . T u r in g w a s e le c te d vice
p r e s id e n t a n d c a s h ie r o f D a k o ta N a ­
tio n a l B a n k & T r u s t C o . o f F a r g o . O th ­
e r p r o m o tio n s a n n o u n c e d
in c lu d e :
J e ro m e D . T h o m p s o n a n d K u rt D .
E rik s m o e n , a s s is ta n t c a s h ie rs ; J o h n
F. S ta d s v o ld , a s s is ta n t s e c re ta ry , tr u s ts ,
a n d P a tr ic k J. T rig g s, in s ta lm e n t lo a n
o ffic e r, tim e p ay .

To Head Hazen Bank
T h e U n io n S ta te B a n k o f H a z e n h a s
a n n o u n c e d a r e a lig n m e n t o f b a n k o ffi­

c e rs. B y ro n (B u d ) P u lle s h a s b e e n
e le c te d p r e s id e n t m o v in g u p fro m vice
p r e s id e n t. H e s u c c e e d s G e o rg e S tro u p
w h o w a s n a m e d c h a ir m a n . H a rv e y H u ­
b e r w a s n a m e d v ice p r e s id e n t a n d
c a s h ie r; C h a rle s S tro u p v ice p r e s id e n t
a n d H az el J e n s e n a s s is ta n t c a s h ie r.
M r. P u lle s, 5 8 , h a s b e e n w ith th e
b a n k sin c e 1 9 6 7 a n d p re v io u s ly se rv e d
a s c a s h ie r a n d v ic e p r e s id e n t. M r. H u ­
b e r, 3 3 , jo in e d th e b a n k in 1 9 6 8 as a s ­
s is ta n t c a s h ie r a n d la te r w a s e le c te d
a v ice p r e s id e n t. M r. S tro u p , 2 9 , jo in e d
th e b a n k in 197 3 as an a s s is ta n t v ic e
p re s id e n t.

Largest Banks in North Dakota
EPOSIT and loan figures for some of the largest banks in North
Dakota are shown in the chart below as they were reported at
year-end. Comparative figures for a year ago also are featured.

D

rity o ffic e r o f T h e F irs t N a tio n a l B a n k
o f R a w lin s.

Charter Rejected
A c h a r te r f o r a b a n k in M ills h a s
b e e n r e je c te d . M a y n e M ille r, a g e n t fo r
th e o r g a n iz e rs o f th e p r o p o s e d new
n a tio n a l b a n k to b e lo c a te d o n W y o ­
m in g B lv d . in M ills, sa id th e C o m p ­
tr o lle r re je c te d th e a p p lic a tio n b e c a u s e
it w a s fe lt th a t th e e c o n o m y o f M ills
a n d th e s u r ro u n d in g a r e a w as n o t
s tro n g e n o u g h to s u p p o r t a b a n k .
T h e a p p lic a n ts h a v e filed a n o th e r
a p p lic a tio n .

State Senator Joins
Levell Bank Board
S ta te S e n a to r C a l T a g g a r t h a s jo in e d
th e b o a r d o f th e W e s te rn N a tio n a l
B a n k o f L e v e ll, a c c o r d in g to E . J. C a s ­
sid y , p r e s id e n t.

(Last 3 figures omitted)

1.
2.
3.
4.
5.
6.
7.

Bank of N .D ...................................................
First Natl B&T, F argo.................................
Merchants Natl B&T, Fargo ....................
First Natl Bank, M in o t...............................
First Natl Bank, Grand F o r k s ..................
First Natl B&T, Bismarck ........................
Dakota Northwestern, N .A ., Bismarck .

December 31,1975
Deposits Loans
$311,720 $119,002
88,279
55,050
83,844
64,763
75,287
49,858
74,381
44,782
72,659
54,619
72,522
51,570

December 31,1974
Deposits Loans
$253,630 $242,918
68,631
49,408
71,490
55,601
62,942
42,401
62,003
39,917
60,779
47,306
60,983
45.604

News
M.

C. MUNDELL

President

Riverton

Secretary

Laramie

Staff Changes at Sheridan
R o b e rt G . M ille r, p r e s id e n t o f th e
F irs t N a tio n a l B a n k o f S h e rid a n , h a s
a n n o u n c e d th e e le c tio n o f tw o n e w
b o a r d m e m b e rs . T h e y a re J o h n A .
B ra y to n a n d F lo y d J. R e is c h . b o th vice
p r e s id e n ts o f th e b a n k .
H e a lso a n n o u n c e d th e fo llo w in g
p r o m o tio n s : W illia m H . P o rte r, v ic e
p r e s id e n t a n d tr u s t o ffic e r; W illia m L .
L in n , a s s is ta n t v ic e p r e s id e n t, a n d
J o h n L . P ie sik a n d D a v id W ith ro w ,
a s s is ta n t c a s h ie r.

Bank of Laramie Elections

Stockgrowers Bank
Promotes Rabus
G . J a c k s o n , w h o is r e tirin g f ro m th e
p o s itio n b u t will re m a in a d ir e c to r . M r.
F o r tm a n is o w n e r a n d m a n a g e r o f
F o r t m a n ’s P a in t a n d G la s s a n d h a s
b e e n a m e m b e r o f th e b o a r d sin c e
19 6 6 .

Saratoga State Names
Rancher To Board
V a lle y r a n c h e r T o m T ro w b r id g e h a s
b e e n n a m e d to th e b o a r d o f th e S a r a ­
to g a S ta te B a n k . T h e a n n o u n c e m e n t
w a s m a d e b y G e o rg e W . M c llv a in e ,
p re s id e n t.

University Nat’l, Laramie,
Elects Fortman Chairman

Promoted at Rawlins

C h a rle s
R.
F o r tm a n
has b een
e le c te d c h a ir m a n o f th e U n iv e rs ity N a ­
tio n a l B a n k o f L a r a m ie s u c c e e d in g E .

J o h n M a rtin h a s b e e n p r o m o te d to
a s s is ta n t v ic e p r e s id e n t a n d D a v id
S h a d ric k to a s s is ta n t c a s h ie r a n d se c u -


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M a ry A n n W e b e r h a s b e e n e le c te d
e x e c u tiv e s e c r e ta ry o f th e S to c k g ro w e rs S ta te B a n k o f W o r la n d . T h e b a n k
a lso h a s in c re a s e d its s u rp lu s fro m
$ 7 4 0 ,0 0 0 to $ 8 6 5 ,0 0 0 .

B a n k o f L a r a m ie h a s a n n o u n c e d th e
e le c tio n o f P a tr ic ia R . G u th r ie as a d i­
r e c to r a n d K a re n H a y s a s a u d ito r .
M rs. G u th r ie is a g r a d u a te o f th e
U n iv e rs ity o f W y o m in g a n d h a s b e e n
a p a r tn e r in th e Y a r n S h o p sin c e 1 9 6 9 .
M rs. H a y s jo in e d th e b a n k five y e a rs
ag o .

Wyoming
H. H. WATT

Named at Worland

R ic h a rd E . R a b u s h a s b e e n p r o ­
m o te d fro m lo a n o ffic e r to a s s is ta n t
v ice p r e s id e n t o f th e S to c k g ro w e rs
B a n k o f E v a n s to n , a c c o r d in g to R o g e r
A . W e id n e r, b a n k p re s id e n t.
M r. R a b u s p re v io u s ly w a s e m p lo y e d
sin c e 1 9 6 8 a t th e F irs t N a tio n a l B a n k
o f N e v a d a in R e n o w h e re h e c o m ­
p le te d h is tr a in in g p ro g ra m a n d w as
p r o m o te d to s e c o n d lo a n o ffic e r a t th e
G r e e n b r a e o ffice.

Elected at Riverton
A m e ric a n N a tio n a l B a n k o f R iv e r ­
to n h a s a n n o u n c e d th e e le c tio n o f tw o
n e w d ir e c to r s . T h e y a r e L e w is M e d o w ,
so n o f th e la te G e r h a r d M e d o w w h o
se rv e d o n th e b o a r d u n til his d e a th
D e c e m b e r 4, 1 9 7 5 , a n d L . J. G e r a u d ,
a g rib u s in e s s m a n . B o th a r e p r o m in e n t
in F re m o n t C o u n ty a g r ic u ltu re .
N o rth w e s te rn

Banker,

M arch

1976

72

Cheyenne Bank Promotes 3

Top Banks in Wyoming
EPOSIT and loan figures for some of the top banks in Wyoming are
reported at year-end as shown in the chart below. Comparative
figures for the same period a year ago also are featured.

D

Wyoming Natl,
American Natl Bank, C h e y e n n e ...........
Stockmens Bank, G ille tte ......................
5. The First Natl B&T of W yo., Cheyenne
6. Cheyenne Natl ..........................................
8 . Bank of Commerce,
9.
1 0 . Jackson State Bank

December 31, 1975
Deposits Loans
$155,102 $ 90,619
82,885
152,946
35,243
60,863
42,503
59,271
27,275
57,933
36,768
49,069
22,203
43,558
23,776
41,691
24,968
40,038
23,099
37,433

December 31, 1974
Deposits Loans
$137,314 $ 73,563
68,485
117,945
32,841
50,989
33,238
52,957
28,353
48,772
34,322
54,995
23,325
38,068
23,373
39,955
24,150
42,077
21,355
31,645

Colorado
News
W. M. WATROUS
G.

L. SCARBORO

Pres.

Bush

Exec. Mgr.

Denver

Joins Colo. Springs Bank
G re g Ire to n h a s jo in e d th e F ir s t N a ­
tio n a l B a n k o f C o lo ra d o S p rin g s as
se n io r v ice p r e s i­
d e n t in c h a rg e o f
th e le n d in g d iv i­
sio n . M r. Ire to n
p r e v i o u s l y w as
w ith
The
F irs t
N a tio n a l B a n k an d
T ru st C o m p an y of
O k la h o m a C i t y
w h e r e h e w as
s e n io r v ic e p r e s i­
G. IRETON
d e n t a n d g ro u p
h e a d o f sp e c ia l in d u s trie s le n d in g .

Named at Cheyenne
R ic h a r d M . B a k e r h a s b e e n n a m e d
v ic e p r e s id e n t a n d tr u s t o ffic e r o f
C h e y e n n e N a tio n a l B a n k . H e c a m e to
th e b a n k fro m a D e n v e r b a n k w h e re
h e w a s in c h a r g e o f th e tr u s t a n d e s ta te
d iv isio n .
M r. A le x a n d e r jo in e d th e b a n k in
1 9 5 3 , b e c a m e v ic e p r e s id e n t a n d tr u s t
o ffic e r in 1 9 6 0 a n d s e n io r v ice p r e s i­
d e n t a n d tr u s t o ffic e r in 1 9 6 4 .
T h e b a n k a ls o a n n o u n c e d
th a t
C h a rle s H . K re b s , a s s is ta n t v ic e p r e s i­
d e n t, c o r r e s p o n d e n t d e p a r tm e n t, h a s
b e e n n a m e d m a n a g e r o f th e N o r th e r n
D iv isio n . J e r o m e B. W o o d s re c e n tly
re s ig n e d th e p o s t to b e c o m e e x e c u tiv e
v ic e p r e s id e n t o f S e c u rity B a n k o f
B illin g s, M o n t. M r. K re b s jo in e d th e
b a n k in 1 9 6 9 a n d n o w w ill se rv ic e c o r ­
r e s p o n d e n ts in n o r th e r n
C o lo ra d o ,
w e s te rn N e b r a s k a , W y o m in g , M o n ­
ta n a , I d a h o a n d p a r ts o f N o rth a n d
S o u th D a k o ta .

Promoted at Bear Valley

W. R. ALEXANDER

C. H. KREBS

K y le J. M c C la u g h e rty , p re v io u s ly
v ice p r e s id e n t o f T h e F ir s t N a tio n a l
B a n k o f B e a r V a lle y , h a s b e e n a d ­
v a n c e d to s e n io r v ic e p r e s id e n t. H e h a s
b e e n w ith th e b a n k sin c e 1 9 7 0 .
M ic h a e l F . E v e r e tt, w h o jo in e d th e
b a n k in 1 9 6 7 , w a s p r o m o te d to v ic e
p r e s id e n t a n d c a s h ie r.

Largest Banks in Colorado

United Banks Elects
Two New Directors
G e o r g e R . C a n n o n a n d R . E a r le
H o n n e n h a v e b e e n e le c te d d ir e c to r s o f
U n ite d B a n k s o f C o lo r a d o , In c ., r a is ­
in g th e n u m b e r o f d ir e c to r s to 18.
M r, C a n n o n is p r e s id e n t o f C a n n o n
L and
C o m p a n y , a f a m ily -o p e ra te d
la n d a n d in v e s tm e n t c a ttle c o m p a n y .
M r. H o n n e n is p r e s id e n t o f M c C o y
C o ., a p r iv a te in v e s tm e n t c o m p a n y .

Named at First of Denver
W . R o b e r t A le x a n d e r h a s b e e n
e le c te d e x e c u tiv e v ic e p r e s id e n t, tru s t,
o f T h e F ir s t N a tio n a l B a n k o f D e n v e r.
N o r t hfor
w eFRASER
s te rn B a n ke r, M arch
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H e w ill m a n a g e th e tr u s t d e p a r tm e n t
su c c e e d in g R ic h a rd P. B ro w n , w h o , b y
h is o w n r e q u e s t, b e c o m e s c h a ir m a n o f
th e tr u s t c o m m itte e a n d th e in v e s t­
m e n t p o lic y c o m m itte e .

B e rn a r d R . W e b e r, p r e s id e n t o f th e
F irs t N a tio n a l B a n k & T r u s t C o m p a n y
o f W y o m in g ,
C heyenne,
has
an­
n o u n c e d th e p r o m o tio n s o f R o b e r t
L o u is G o d fr e y to lo a n o ffic er, D e n n is
L e e M c C a n n to a s s is ta n t c a s h ie r a n d
P h ilip M a rs h E llis to a g r ic u ltu r a l lo a n
o ffic er.

1976

EPOSIT figures for some of the top Colorado banks are shown in the
chart below as they were reported at year-end. Comparative figures
for a year ago also are featured.

D

(Last 3 figures omitted)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

First Natl Bank, D e n v er.............................
United Bank of D enver...............................
Colorado Natl Bank, D e n v e r....................
Central Bank & T r u s t .................................
American Natl Bank, D enver....................
First Natl Bank, Colo. S p rin g s ...............
First Natl Bank, B o u ld e r..........................
First Natl Bank, Fort C o llin s ....................
Jefferson B&T, Lakew ood........................
Security Natl, Denver..........................

December 31,1975
$818,280
704,983
429,064
334,844
146,887
137,997
104,207
101,702
96,545
89.298

December 31,1974
$869,910
671,050
427,673
354,063
137,632
138,519
84,840
98,387
104,814
80,174

73

W o rkin g fo r you,
is w o rk in g fo r us.

V

If you're one of o u r 300 correspondent bank
customers, we w ant to thank you. Because w o rkin g fo r you
builds o u r reputation fo r good banking service.

>

W e know we have you to thank fo r o u r success . . . because you
provide us the op po rtunities to show
the banking industry just how good correspondent
banking service can be.
>>

W orkin g for your business is what's w o rkin g
for o u r business.

>

4

7

r

Larry Matthes

>
*■

Chris leavons

Central

Bank

of D enver

A Financial Service of [ Baldwin
1515 Arapahoe Street


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

D enver, Colorado 80202

(303) 893-3456
N o rth w e s te rn

Banker,

M a rch

1976

74
a t C e n tra l B a n k o f M o n ta n a , G r e a t
F a lls.
M r. S e rv o ss jo in e d th e b a n k last
y e a r. H e b e g a n h is b a n k in g c a r e e r w ith
F irs t N a tio n a l B a n k o f C in c in n a ti in
1967.

Montana
News
A. F. WINEGARDNER
J. T. CADBY

President

Secretary

Helena

Elected at Great Falls
F o r r e s t H e n d e rs o n , p r e s id e n t o f th e
F irs t T r u s t C o m p a n y o f M o n ta n a ,
G r e a t F a lls , h a s a n n o u n c e d th a t J o h n
R e ic h el a n d E d ie A n d e r s o n h a v e b e e n
e le c te d to th e b a n k ’s b o a r d . M r.
R e ic h e l is p r e s id e n t o f th e F irs t N a ­
tio n a l B a n k o f G r e a t F a lls a n d a d ir e c ­
to r o f th e H e le n a b r a n c h o f th e F e d ­
eral R e s e rv e B a n k o f M in n e a p o lis .
M rs. A n d e r s o n p r e s e n tly se rv e s o n th e
G r e a t F a lls P a rk s a n d R e c re a tio n
B o a rd a n d is a f o rm e r d ir e c to r o f C . M .
R u s se ll M u s e u m a n d p a s t p r e s id e n t o f
th e C a s c a d e C o u n ty M e d ic a l A u x ilia ry .

Security State, Poison,
Adds 2 To Staff
T h e S e c u rity S ta te B a n k in P o iso n
h a s a d d e d tw o n e w o ffic e rs to its staff.
T h e y a re L y n n W e a v e r, o p e r a tio n s a n d
lo a n d e p a r tm e n t, a n d A la n B ra d le y .
M r. W e a v e r p re v io u s ly w a s a s ta te
b a n k e x a m in e r f o r o v e r six y e a rs. M r.
B ra d le y h a s w o rk e d in th e tim e p a y d e ­
p a r tm e n t o f th e W e s te rn M o n ta n a N a ­
tio n a l B a n k in M is s o u la a n d a s m a n ­
a g e r o f th e in s ta lm e n t lo a n d e p a r tm e n t
o f th e F ir s t N a tio n a l B a n k a t E a s t
G r a n d F o r k s , M in n .

First National of Helena
Announces Promotions
B r u c e T h o m s o n , p r e s id e n t o f th e
F ir s t N a tio n a l B a n k a n d T r u s t C o m ­
p a n y , H e le n a , h a s a n n o u n c e d th e e le c ­
tio n o f R ic h a r d A . P o rte to th e b a n k 's
b o a r d . M r. P o rte is p r e s id e n t o f C a ir d
E n g in e e r in g C o m p a n y .
M r. T h o m s o n a ls o a n n o u n c e d th e
fo llo w in g staff c h a n g e s : G le n N . G ra y
a n d S tu a r t E llis o n to v ic e p re s id e n ts ;
M a rily n M ille r to re a l e s ta te lo a n o f­
ficer, a n d M ic h a e l F r ie s a n d R ic h a rd
S a p p to in s ta lm e n t lo a n o ffic ers.
M r. G ra y jo in e d th e b a n k in 195 5
a s a p e r s o n a l lo a n o ffic er. In 1 9 6 8 h e
w as e le c te d a s s is ta n t vice p r e s id e n t a n d
m a n a g e r o f th e h o m e lo a n d e p a r tm e n t
a n d re a l e s ta te lo a n d e p a r tm e n t w h e re
he c o n tin u e s . M r. E llis o n jo in e d th e
F irs t N a tio n a l B a n k in H a v r e in 1 9 6 0 .
H e tr a n s f e r r e d to th e F ir s t N a tio n a l

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N o rth w e s te rn

Banker,

M arch

Security Bank, Billings,
Announcements

Billings

1976

in G r e a t F a lls in 1 9 7 0 a n d to th e
H e le n a b a n k in 1 9 7 4 as a s s is ta n t v ic e
p r e s id e n t a n d m a n a g e r o f th e a g r ic u l­
tu ra l lo a n d e p a r tm e n t, w h e re he c o n ­
tin u e s.

J o h n M . (J a c k ) D ie tric h , s e n io r
p a r tn e r o f th e law firm o f C ro w le y ,
H aughey,
H anson,
G a lla g h e r
and
T o o le , h a s b e e n e le c te d a d ir e c to r of

Appointed at Billings Bank
M ic h a e l J. R o o n e y h a s b e e n a p ­
p o in te d v ic e p r e s id e n t o f th e S e c u rity
B a n k N . A ., B il­
lin g s. H e h a s 10
y e a rs o f b a n k in g
e x p e rie n c e
in
Io w a
and
N e­
b ra sk a . M r. R o o ­
n e y w as c a s h ie r
o f th e B a n k o f
C o m m e rc e
in
S h e rid a n ,
W y o .,
b e fo re m o v in g to
M. J. ROONEY
S e c u rity .

Western Montana Nat’l
Announces 3 Promotions
J o h n E . L ip sk i h a s b e e n p r o m o te d
to v ic e p re s id e n t, b u sin e ss d e v e lo p ­
m e n t a t th e W e s t­
e rn M o n ta n a N a t io n a 1 Bank,
M isso u la . A n g e la
M . B o u rq u in has
b e e n p r o m o te d to
re a l e s ta te lo a n
o ffic e r a n d C la ra
M . S to rin g to a d ­
m in is tra tiv e
a ss is ta n t.
J. E. LIPSKI
M r. L ip sk i b e ­
g a n his b a n k in g c a r e e r a t W e s te rn in
1 9 6 7 as a s s is ta n t c a s h ie r a n d p e rso n a l
lo a n m a n a g e r. H e m o s t re c e n tly w as
a s s is ta n t v ic e p re s id e n t, b u sin e ss d e ­
v e lo p m e n t.

Central Bank, Great Falls,
Promotes Servoss
G . R o g e r S e rv o ss h a s b e e n p r o ­
m o te d to a s s is ta n t v ic e p re s id e n t a n d
o ffic e r in c h a rg e o f in s ta lm e n t lo a n s

J. M. DIETRICH

E. E. COOMBS

S e c u rity B a n k , N . A ., B illin g s. M r
D ie tric h is a g r a d u a te o f S ta n fo rd U n i­
v e rs ity a n d th e U n iv e rs ity o f M o n ta n a
L a w S c h o o l.
E u g e n e E . C o o m b s h a s r e jo in e d th e
b a n k a f te r a s ix -m o n th a b s e n c e . H e is
n o w v ic e p r e s id e n t w ith a g ri-b u s in e s s ,
c o m m e r c ia l lo a n , p u b lic r e la tio n s a n d
c o r r e s p o n d e n t b a n k s . D u rin g h is a b ­
se n c e h e w as w ith A s s o c ia te R e a lty ,
In c .

Northwestern Bank, Helena,
New Staff Assignments
W . B. A n d re w s , p r e s id e n t o f th e
N o rth w e s te rn B a n k o f H e le n a , re c e n tly
a n n o u n c e d s e v e ra l sta ff c h a n g e s a n d
th e e le c tio n o f a n ew d ir e c to r .
E . P h il M a ro n ic k , p r e s id e n t o f
M a ro n ic k C o n s tr u c tio n C o ., In c ., in
E a s t H e le n a , w as n a m e d to th e b o a rd .
E le c te d o ffic e rs a re D a le W . A n d e rs o n
a n d R a lp h L . S a m so n , s e n io r vice
p re sid e n ts; S ad ie H u n te r , c u s to m e r s e r­
v ic e o ffic er; A la n V . J o h n s o n , c o m ­
m e rc ia l b a n k in g o ffic er a n d J e ffre y M .
B ro w n a s s is ta n t c o n tro lle r. P ro m o te d
a re R o b e rt E . L in d q u is t to v ice p re si­
d e n t a n d c o n tro lle r a n d F r a n k W .
S h a w to v ic e p re sid e n t.
M r. A n d e r s o n c o m e s to H e le n a
fro m S io u x F a lls , S. D ., w h e re he w as
p r e s id e n t o f N o rth w e s t A g ric u ltu ra l
C r e d it C o m p a n y . P re v io u s ly he w as
v ic e p r e s id e n t o f th e F irs t N o r th w e s t­
e rn N a tio n a l B a n k o f M a rs h a ll, M in n .
M r. S a m so n b e g a n his b a n k in g c a r e e r
in 1 9 3 0 a t th e F e d e r a l R e s e rv e B a n k

75
H e le n a B ra n e h . H e jo in e d N o r th w e s t­
e r n B a n k in 1 9 4 7 a d v a n c in g fro m lo a n
o ffic e r to a s s is ta n t c a s h ie r to v ic e p r e s ^
id e n t a n d h e a d o f in s ta lm e n t lo a n s in
1 9 5 5 . S in ce 1 9 6 5 h e h a s m a n a g e d th e
r e a l e s ta te d e p a r tm e n t.
M r . L in d q u is t jo in e d th e b a n k in
1 9 6 9 . H e w ill a s s is t w ith o p e r a tio n s
>
o f th e n e w ly f o rm e d N o r th w e s te r n
U n io n T r u s t C o . M r. S h a w h a s b e e n
w ith th e b a n k sin c e 1 9 6 7 w h e n h e
jo in e d th e B a n c o m a n a g e m e n t tr a in e e
r p r o g ra m . H e a d v a n c e d f r o m a d v e rtis " in g m a n a g e r to a s s is ta n t c a s h ie r a n d
in 1 9 7 3 w a s p r o m o te d to a s s is ta n t v ic e
p r e s id e n t.

o ffic e r in 1 9 6 3 . M r. P e d e r s e n jo in e d
th e b a n k in A u g u s t, 1 9 7 4 , f ro m F irs t
N a tio n a l B a n k o f O re g o n w h e r e h e
w a s v ic e p r e s id e n t, n a t io n a l d iv is io n ,
a t th e a d m in is tra tiv e h e a d q u a r te r s in
P o rtla n d .
R o b e rt H . O a k la n d w a s e le c te d a
v ic e p r e s id e n t o f th e b a n k . H e a ls o is
p r e s id e n t a n d g e n e r a l m a n a g e r o f C ity
M o to r C o m p a n y , In c ., G r e a t F a lls ,
a n d w ill c o n tin u e to o p e r a te th a t b u s i­
n e ss. P a u l A . M a tte u c c i, a d ir e c to r
sin c e 1 9 5 6 , r e tire d fro m th e b o a r d a n d
w a s e le c te d a n h o n o r a r y d ire c to r.

Elected at Lewistown
Montana Bank Officers
Assume New Positions
V e r n E . H e n d e r s h o tt, p r e s id e n t, h a s
been
e le c te d
c h a ir m a n
and
c h ie f
e x e c u tiv e o ffic e r o f M o n ta n a B a n k ,
G r e a t F a lls . C h a rle s E . (C h u c k ) P e d -

N o r th w e s te r n B a n k o f L e w isto w n
h a s a n n o u n c e d th e e le c tio n o f J o a n
F e lk e
to
a c c o u n tin g
o ffic er.
She
jo in e d th e b a n k in 1 9 7 0 .
T h e b a n k a ls o a n n o u n c e d th e a p ­
p ro v a l o f a $ 7 0 ,0 0 0 in c re a s e in its to ta l
c a p ita liz a tio n , in c re a s in g it to $ 1 ,4 7 0 ,000.

Promoted at Missoula

V. E. HENDERSHOTT

C. PEDERSEN

e r s e n h a s b e e n e le c te d p r e s id e n t. M r.
H e n d e r s h o t t sa id th e c h a n g e s a re
p r e p a r a to r y to h is r e tir e m e n t p la n n e d
f o r S e p te m b e r o f 1 9 7 7 .
M r. H e n d e r s h o t t jo in e d th e b a n k in
1
1 9 6 0 f r o m P e n d le to n , O re ., w h e re h e
w a s m a n a g e r o f a b r a n c h o f F ir s t N a ­
tio n a l B a n k o f O re g o n . H e w a s e le c te d
j p r e s id e n t in 1 9 6 2 a n d c h ie f e x e c u tiv e

T h e p r o m o tio n o f J a m e s M . B e a to n
to a s s is ta n t v ic e p r e s id e n t o f th e S o u th sid e N a t i o n a l
B a n k o f M is so u la
has
been
an­
n o u n ce d by E arl
W . Jo h n so n , p re s­
id e n t.
A n a t i v e of
Billings,
M r.
B e a to n jo in e d th e
b a n k in A u g u s t o f
1 9 7 0 a n d in J u ly
M OCAT_ ..
J - M BEATON
of 1974 becam e
m a n a g e r o f th e in s ta lm e n t lo a n d e p a r t­
m e n t. H e c o n tin u e s in th is r e s p o n s i­
b ility .

Top Banks in Montana
EPOSIT and loan figures for some of the top Montana banks are reported at year-end as shown in the chart below. Comparative figures
for the same period a year ago also are featured.
(Last 3 figures omitted)

1.
2.
3.
4.
5.
6.
7.
8.
9.
I0.

Security Bank, B illin g s ......................
Midland Natl, B illin g s ........................
First Natl Bank. Great Falls .............
First Natl B&T. B illin g s ......................
Northwestern Natl, Great F a lls .........
Western Montana Natl, Missoula . . .
First Metals B&T, B u tte.............
First Natl Bank, M is s o u la .................
Northwestern Bank, Helena . .
Montana Bank. Great F a lls ...............


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

...
. ..
. ..
...
...

December 31, 1975
Deposits Loans
$149,350 $ 97,661
143,753
90,883
113,618
74,786
100,861
66,707
92,591
59,083
78,932
58,876
71,089
44,776
70,595
47,928
56,125
35,151
55,957
28,822

December 31, 1974
Deposits Loans
$147,616 $101,016
123,311
81,508
109,142
68,910
90,623
67,203
90,047
78,573
68,170
52,896
66,491
46,682
61,467
47.656
60,034
33,953
53,613
33,953

Western
News
NW Banking School
Receives Final Approval
F in a l a p p r o v a l to e s ta b lis h th e
N o rth w e s t
I n te r m e d ia te
B a n k in g
S c h o o l (N IB S ) h a s b e e n re c e iv e d
fro m
th e O re g o n a n d W a s h in g to n
B a n k e r s A s s o c ia tio n s . T h e s c h o o l, f e a ­
tu r in g a s in g le -s e s s io n p r o g r a m e a c h
y e a r, w ill b e lo c a te d a t L e w is a n d
C la r k C o lle g e in P o rtla n d , O re ., a n d
w ill c o n d u c t th is y e a r ’s 1 0 -d a y re s id e n t
se ssio n A u g u s t 4 - 1 4 .
N IB S , d e v e lo p e d a s th e r e s u lt o f c o ­
o p e r a tiv e e ffo rts o f O re g o n a n d W a s h ­
in g to n b a n k e r s , w ill d ir e c t its in s tr u c ­
tio n to w a r d b a n k e r s w ith a m in im u m
o f th r e e to five y e a r s ’ e x p e rie n c e in th e
in d u s try . T h e p r o g ra m w ill c o n c e n tr a te
o n c r e d it a d m in is tra tio n , b a n k a d m in ­
is tra tio n a n d in te r p e r s o n a l r e la tio n ­
s h ip s , w ith th e d e v e lo p m e n t o f a lo n g ra n g e m a rk e tin g p la n f o r th e s tu d e n t’s
b a n k o r a b a n k p ro file , s u p p lie d b y th e
s c h o o l, a s th e e n d p r o d u c t.
T h e b o a r d o f d ir e c to r s o f N IB S c o n ­
sis ts o f b a n k e r s f ro m b o th s p o n s o rin g
s ta te s . E le c te d in J a n u a r y a s b o a r d
c h a ir m a n is J o h a n A . M e h lu m , p r e s i­
d e n t o f S iu sla w V a lle y B a n k o f F l o r ­
e n c e , O re . V ic e c h a ir m a n is T h o m a s
H . R a in v ille , e x e c u tiv e v ic e p r e s id e n t
o f th e
B ank
o f E v e r e tt,
W a sh .
A n o th e r N IB S b o a r d m e m b e r, J o h n
H a g o p ia n , w a s n a m e d a s d ir e c to r o f
th e sc h o o l f o r its firs t y e a r. H e a lso is
a m e m b e r o f th e b o a r d o f d ir e c to r s o f
N o r th P a c ific B a n k in T a c o m a , W a sh .
T h o s e w is h in g to s u b m it th e ir n a m e s
fo r e a rly c o n s id e r a tio n m a y d o so by
w ritin g to
N o rth w e s t I n te r m e d ia te
B a n k in g
S chool
( A ttn :
Jo
A nne
M ille r), O re g o n B a n k e r s A s s o c ia tio n ,
1 2 1 2 O re g o n B a n k B u ild in g , P o r t ­
la n d , O re . 9 7 2 0 4 . I n fo r m a tio n s h o u ld
in c lu d e th e p r o s p e c tiv e c a n d id a te ’s
n a m e , p o s itio n o r title , n u m b e r o f
y e a rs in b a n k in g , n a m e o f p r e s e n t b a n k
a n d a d d re s s .

Promoted at Zions
G le n M . R o b in s o n h a s b e e n a p ­
p o in te d s e n io r v ic e p r e s id e n t in th e
b u s in e s s d e v e lo p m e n t d e p a r tm e n t o f
Z io n s F ir s t N a tio n a l B a n k . H e f o r m e r ­
ly se rv e d a s v ic e p r e s id e n t.
N o rth w e s te rn

Banker.

M a rch

1976

76

< -I

V

EVERYONE NEEDS
SOMEONE
TO LEAN ON...
We'd be happy to have you lean on us . . .
over 300 banks in 10 states do. Our correspondent bank
department will help you provide new and better
services to your customers . . . we re proud to be called
.. . U. S. National Bank . . . lean our way.

US National
BANK

Of Omaha

Digitized
FRASER
N o for
rth w
e s te rn Banker, M a rth
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

p r e s id e n t; J o h n P o rtw o o d , a s s is ta n t
v ic e p r e s id e n t a n d R a n d y L a n n in g , a s ­
sis ta n t c a s h ie r.

Nebraska
News

Kearney Bank Advances
Helen Easterbrook
ROBERT E. SURKtEY
R. E. HARRIS

President

Fairbury

Exec. Mgr.

Lincoln

Western Nat’l, Seottsbluff,
Names Hall President
G a r y W . H a ll
has been nam ed
p r e s id e n t o f th e
W e ste rn N a tio n a l
B a n k o f S co ttsb lu ff. H e p r e v i­
o u sly se rv e d
as
e x e c u tiv e
vice
p re s id e n t.
M r.
H a ll r e p la c e s H .
D . K o s m a n w ho
w as
re e le c te d
c h a irm a n .

S ta te B a n k a t K e lg o re a n d th e G o rd o n
S ta te B a n k , m o s t r e c e n tly as v ic e p r e s i­
d e n t, c o m m e rc ia l a n d in s ta lm e n t lo a n s ,
a t G o rd o n .

Named at Scribner
J o a n M o e lle r h a s b e e n n a m e d a s ­
s is ta n t c a s h ie r o f th e S c rib n e r B a n k .

Randolph Bank Elects
Lackas Cashier
G. W. HALL

To Head Walthill Bank
H a r o ld M a tn e y h a s b e e n e le c te d
p r e s id e n t o f T h e F ir s t N a tio n a l B a n k
o f W a lth ill. H e p re v io u s ly w as v ic e
p r e s id e n t. T h e b a n k a lso a n n o u n c e d
th e p r o m o tio n s o f M a rg ie F re n c h a n d
M a ry A n n H e n je s to a s s is ta n t c a s h ­
iers.

Nebraska City Bank
Promotes 2 officers
O to e C o u n ty N a tio n a l B a n k , N e ­
b r a s k a C ity , h a s p r o m o te d D e n n is
K e n n e d y fro m v ic e p r e s id e n t a n d c a s h ­
ie r to e x e c u tiv e v ic e p r e s id e n t a n d
c a s h ie r a n d D a v e D iG io v a n n i fro m a s ­
s is ta n t v ic e p r e s id e n t to v ic e p r e s id e n t.
M r. K e n n e d y h a s b e e n w ith th e b a n k
sin c e 197 1 a n d M r. D iG io v a n n i sin c e
1973.

Joins Wayne Bank
W illia m D ic k e y h a s jo in e d th e F irs t
N a tio n a l B a n k o f W a y n e a s a lo a n o f­
ficer. H e f o rm e r ly w a s o p e r a tio n s o f­
fice r f o r N a p e rv ille N a tio n a l B a n k a n d
T r u s t C o m p a n y in N a p e rv ille , 111.

Stratton Bank Sold
R o b e r t K e h r is th e n e w m a n a g in g
o ffic e r o f C o m m e r c ia l B a n k o f S tr a t­
to n . T h e b a n k h a s b e e n p u r c h a s e d b y
D a n H o ff a n d D a le S tin e a n d A s s o ­
c ia te s w h o a ls o h a v e in te re s ts in o th e r
b a n k s in th e sta te .
M r. K e h r h a s b e e n w ith th e F a r m e r s

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H e le n E a s te r b r o o k re c e n tly w as
e le c te d tr u s t a d m in is tra tio n o ffic e r o f
P la tte V a lle y S ta te B a n k in K e a rn e y .
S h e jo in e d th e b a n k in M a rc h o f 1 9 7 3 .

N e il M . L a c k a s , c a s h ie r, h a s b e e n
e le c te d d ir e c to r o f th e F ir s t S ta te
B a n k , R a n d o lp h . H e jo in e d th e b a n k
in 1 9 6 1 , w a s n a m e d a s s is ta n t c a s h ie r
in 1 9 6 6 a n d c a s h ie r in 1 9 7 2 .

Stromsburg Bank Elects
Officers

Tod Executive

W a rre n Jo h n so n has been p ro ­
m o te d to p r e s id e n t o f S tro m s b u rg
B a n k a n d J a m e s R o s e n q u is t h a s b e e n
n a m e d e x e c u tiv e v ic e p re s id e n t.
M r. J o h n s o n jo in e d th e b a n k as
a s s is ta n t c a s h ie r in 1 9 4 9 a f te r s h o r t
a s s o c ia tio n s w ith th e F ir s t N a tio n a l
B a n k o f O s c e o la a n d F ir s t N a tio n a l
B a n k in S h e lb y . H e m o v e d u p to c a s h ­
ie r in 1 9 5 1 , w a s e le c te d a d ir e c to r in
1 9 5 2 a n d w a s n a m e d e x e c u tiv e v ic e
p r e s id e n t in 1 9 5 7 .
M r. R o s e n q u is t jo in e d th e b a n k in
1 9 6 2 , w a s e le c te d a d ir e c to r in 1 9 6 4 ,
p r o m o te d to a s s is ta n t v ic e p r e s id e n t in
1 9 6 7 a n d to v ic e p r e s id e n t in 1 9 6 9 .

Michael Galen Keller
F u n e r a l s e rv ic e s w e re h e ld re c e n tly
f o r M ic h a e l G a le n K e lle r, 6 1 , p r e s i­
d e n t o f th e F ir s t N a tio n a l B a n k , O g a lla la , sin c e 1 9 5 2 . T h e b a n k w a s p u r ­
c h a s e d b y h is f a th e r in 1 9 3 5 . M r.
K e lle r w a s a f o r m e r d ir e c to r o f P a c k ­
e rs N a tio n a l B a n k o f O m a h a a n d B a n k
o f K e y s to n e , N e b r .

South Sioux City Bank
Announces Staff Elections
N e b r a s k a S ta te B a n k , S o u th S io u x
C ity , h a s a n n o u n c e d th e fo llo w in g
sta ff c h a n g e s : J o h n P a u ls o n , e x e c u tiv e
v ic e p r e s id e n t; S c o tt B r a d le y , v ic e

Changes at Gering
W illia m R . M ic h a e ls , p r e s id e n t o f
L o c k w o o d C o r p ., h a s b e e n e le c te d to
th e b o a r d o f G e rin g N a tio n a l B a n k
an d T ru s t C o m p an y .
L a rry S a u te r a n d J o h n M e L ei Ian,
J r ., h a v e b e e n e le c te d a s s is ta n t c a s h ­
iers.

To Head Seottsbluff Bank
J.
T . S e lz e r re c e n tly w as e le c te d
p re s id e n t a n d c h ie f a d m in is tra tiv e o f­
fice r o f th e S c o tts b lu ff N a t i o n a l
B a n k a n d T ru s t
C o m p an y . H e re­
p la c e s H .D . K o s­
m an
w ho
w as
e le c te d c h a irm a n
a n d w ill c o n tin u e
h is a c tiv e ro le in
th e b a n k as c h ief
e x e c u tiv e o ffic er.
,
,,
„
,
J. T. SELZER
M r. S e l z e r h a s
h eld th e p o s itio n o f e x e c u tiv e vice p re s -

H. D, KOSMAN

H. KOSMAN

id e n t fo r th e p a s t se v en y ea rs a n d h as
b e e n a b a n k o ffic e r f o r 15 y e a rs.
T h e b a n k a lso a n n o u n c e d th a t H .
H o d K o s m a n w as e le c te d a s s is ta n t v ic e
p re sid e n t.

Elected at Fremont
S a n d y R . R e e d h a s b e e n e le c te d
a s s is ta n t c a s h ie r o f th e F ir s t S ta te
B a n k o f F r e m o n t. S h e jo in e d th e b a n k
in J a n u a r y o f 1 9 7 0 a n d h a s se rv e d
a s m a n a g e r o f th e P a rk v ie w o ffice sin c e
N o v em b er of 1974.
N o rth w e s te rn

B a nker,

M a rch

1976

78

Agee h a s b e e n e le c te d
c h a ir m a n o f th e N o r t h S id e B a n k .
H e is p r e s id e n t o f th e A m e ric a n R o a d
E q u ip m e n t C o m p a n y o f O m a h a a n d
h a s b e e n a m e m b e r o f th e b a n k ’s b o a r d

H

ow ard h.

sin c e 1 9 6 8 .
O th e r n ew ly e le c te d m e m b e r s o f th e
b o a r d a re A* Bruce Truesdell, p r e s i­
d e n t o f T ru e s d e ll D is tr ib u tin g C o r p o -

W. C. RADFORD

R. V. VOORHEES

r a tio n ; Bernard Taulborg, p a r tn e r in
T a u lb o r g B r o th e r s B u ild e r s , a n d Frank.
Catalano, p r e s id e n t o f W illia m s M a ­
c h in e & T o o l C o m p a n y .
F o u r o ffic e r p r o m o tio n s a n d f o u r
n e w o ffic e rs e le c tio n s a lso h a v e b e e n
a n n o u n c e d . Roger V. Yoorhees a n d
W. Charles Radford h a v e b e e n n a m e d
v ice p r e s id e n ts ; Dennis B. Friese, a s­
s is ta n t v ic e p r e s id e n t a n d Joan Larson,
c a s h ie r. N e w ly a p p o in te d o ffic e rs, all
a s s is ta n t c a s h ie rs , a r e Robert C. String­
er, in s ta lm e n t lo a n s ; Daris Gillespie
a n d N onin (Junior) Bunselmeyer, d a ta
p ro c e s s in g , a n d Mariann Shanno a t th e
b a n k ’s n e w o ffice in F lo re n c e .
*
*
*
A t th e F e b r u a r y m e e tin g o f th e
O m a h a - L in c o ln F in a n c ia l A n a ly s ts S o ­
c ie ty , w h o s e m e m b e r s a r e th e in v e s t­
m e n t a n d b o n d a n a ly s ts of b a n k s , tr u s t
c o m p a n ie s , in s u r a n c e c o m p a n ie s a n d
in v e s tm e n t b a n k in g firm s, John E. Van
Horne, p r e s id e n t o f V a n H o r n e I n ­
v e s tm e n ts , I n c ., O m a h a , w a s a w a rd e d
th e tr o p h y f o r th e b e s t g o v e rn m e n t
b o n d g u e s s tim a te f o r 1 9 7 5 . G u e s s tiN o rth w e s te rn

B a nker,

M a rch


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

H. H. DAVIS, JR.

L. C. PETERSEN

J. SOSHNIK

G. E. KING

O. L. SADDLER, JR.

T. T. THULL

m a te s a re m a d e a y e a r in a d v a n c e fo r
th e y e a r -e n d q u o te . I n a m a r k e t w h ic h
is q u o te d in 3 2 n d s ( 3 1 1 4 c e n ts p e r
th o u s a n d ), M r. V a n H o r n e lu c k e d o u t
a n d h it th e p r ic e rig h t o n th e n o s e a t
7 9 - 1 0 /3 2 ! ! !
*
*
*
O m a h a N a tio n a l C o r p o r a tio n h a s
a n n o u n c e d th e p r o m o tio n s o f Howard
E. Reelfs to s e c o n d v ic e p r e s id e n t a n d
fin a n c ia l o ffic e r, George ML Brady to
fin a n c ia l o ffic e r a n d Melvin R. Katskee a n d Steven McWhorter to g e n e ra l
a tto rn e y s .
M r. R e e lfs jo in e d T h e O m a h a N a ­
tio n a l B a n k in J u ly , 1 9 7 4 , a n d in N o ­
v e m b e r, 1 9 7 4 , w a s p r o m o te d to c o n ­
tr o l o ffic e r. M r. B r a d y jo in e d th e b a n k
as a s s is ta n t a u d i to r in 1 9 7 4 a n d in
1 9 7 5 w a s n a m e d a s s is ta n t c o n tro l o f­
fice r. M r. K a ts k e e w a s p r o m o te d to a s ­
s is ta n t le g al c o u n s e l in 1 9 7 5 a n d M r.
M c W h o r te r re c e n tly jo in e d th e c o r p o ­
r a tio n a s a s s is ta n t le g a l c o u n s e l fro m
a p r iv a te la w firm .
*

*

*

Edward J. Wagner h a s b e e n n a m e d
v ic e p r e s id e n t in c h a rg e o f m a rk e tin g ,
a d v e rtis in g
and
p u b lic
re la tio n s
f o r F irs t W e s t
S id e B a n k in O m a ­
h a , a c c o rd in g to
James A. Irving,
c h a irm a n
and
c h ie f e x e c u tiv e o f­
ficer.
M r. W a g n e r
jo in e d th e b a n k
E. WAGNER
in 1 9 6 6 as m a n ­
a g e r o f th e te lle r d iv is io n a n d in 1 9 6 8
w as p r o m o te d to a s s is ta n t v ic e p r e s i­
d e n t in c h a r g e o f th e fa c ility b a n k .
*
*
*
K ir k p a tr ic k , P e ttis , S m ith , P o lia n
In c .,
an
O m ah a -b ase d
in v e s tm e n t
b a n k in g firm , h a s a n n o u n c e d se v e ra l

to p -le v e l

p r o m o tio n s .

Davis, Jr., h a s b e e n

Herbert
nam ed

H.

b o ard

c h a ir m a n s u c c e e d in g Carl A. Falk,
n o w c h a ir m a n e m e ritu s , w h o w ill c o n ­
tin u e to s e rv e se v e ra l a c c o u n ts . M r.
D a v is, w h o jo in e d th e firm in 1 9 4 8 a n d
w as n a m e d p r e s id e n t in 1 9 6 7 , w ill re - ?
m a in c h ie f e x e c u tiv e o ffic er.
L.
C. (Jack) Petersen h a s b e e n
n a m e d p r e s id e n t. W ith th e firm sin ce
1 9 6 6 , h e w a s n a m e d c h ie f o p e r a tin g
o ffic e r la s t y e a r a n d w ill r e ta in th a t
title .

Joseph Soshnik, f o rm e r ly e x e c u tiv e „
v ic e p r e s id e n t, h a s b e e n n a m e d c h a ir ­
m a n o f th e e x e c u tiv e c o m m itte e . H e
re s ig n e d a s c h a n c e llo r o f th e U n iv e r ­
sity o f N e b r a s k a - L in c o ln to jo in th e
firm in 1971 a n d w a s n a m e d e x e c u ­
tiv e v ic e p r e s id e n t in 1 9 7 3 .
T h r e e n e w v ic e p r e s id e n ts a lso w ere u
a n n o u n c e d : Gary E. King, m u n ic ip a l ^
b o n d s ; Owen L. Saddler, Jr., se c u ritie s
tra d in g , a n d Theodore T. Thull, se ­
c u r itie s a n d m u tu a l f u n d s .
Donald J . Murphy h a s b e e n n a m e d
c h ie f e x e c u tiv e o ffic e r o f th e U n ite d
S ta te s N a tio n a l B a n k su c c e e d in g Kermit Hansen w h o re m a in s c h a ir m a n of

79

V

Larry Carlson.

>

V

A good man for your money.
18 years of experience in municipal and
Government securities led Larry Carlson to the
position of Vice President, Investments,
First National Bank of Omaha.

r

■

It's been Larry's pleasure to use this experience
to satisfy the growing needs in First National
Territory. Now, he would like to serve you.
Feel free to contact Larry anytime. Call him
Toll Free at 800-642-9907 in Nebraska.
Or from States adjacent to Nebraska, call him
Toll Free at 800-228-9533. You'll like his
bond of service.

V

first n atio n a l bank
of omaha

you're in first national territory


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N o rth w e s te rn

B a nker,

M arch

1976

80

N ebraska N ews

th e b o a r d .
M r. M u rp h y b e c a m e p re s id e n t o f th e
b a n k la s t O c to b e r w h e n M r. H a n s e n
w a s a d v a n c e d to
c h a ir m a n .
P rio r
to th a t h e w as
p r e s i d e n t of
N o rth w e s te rn N a ­
tio n a l
B ank
of
O m aha
fo r
10
y e a rs. U . S. N a ­
tio n a l a n d N o r th ­
w e s te rn N a tio n a l
a r e a ffilia te d w ith
D. J. MURPHY
N o rth w e s t B a n c o r p o r a tio n o f M in n e a p o lis .
M r. H a n s e n w as n a m e d b a n k p r e s i­
d e n t in 1 9 7 3 a n d c h ie f e x e c u tiv e o ffi­
c e r in 1 9 7 4 fo llo w in g th e re tire m e n t
o f Edward W. Lyman.
M r. M u rp h y sa id h e w ill h a v e fu ll
re sp o n sib ility fo r th e d a y - to -d a y o p e r ­
a tio n s o f th e b a n k . T h e c h a n g e will
p e rm it M r. H a n s e n to d e v o te m o re
tim e to civ ic e n d e a v o r s a n d m a tte rs
r e la te d t o c h a n g e s in n a tio n a l a n d s ta te
re g u la tio n o f b a n k s , h e sa id .
*
*
*
T w o p r o m o tio n s in th e tr u s t d iv i­
sio n o f th e b a n k h a v e b e e n a n n o u n c e d .
John R. Caswell h a s b e e n e le c te d a s sis­
ta n t tr u s t in v e s tm e n t o ffic e r a n d Steph­
en E. Heady h a s b e e n e le c te d a s s is ta n t
tr u s t officer.
sj; ^

John M. Shonsey, c h a ir m a n o f th e
A m e r ic a n N a tio n a l B a n k o f O m a h a ,
h a s a n n o u n c e d th e p r o m o tio n s o f Wil­
liam A. Waldie to v ic e p r e s id e n t a n d
Ben G. Ohlander to a s s is ta n t c a s h ie r.
M r. W a ld ie , a 2 0 - y e a r v e te r a n o f
th e fin a n c ia l field, jo in e d th e b a n k in
1 9 7 2 . M o v in g u p fro m a s s is ta n t vice
p r e s id e n t, h e c o n tin u e s in h is p o s t o f
b u s in e s s
d e v e lo p m e n t
o ffic er.
He
e a r n e d h is b a c h e l o r ’s d e g re e in b u s i­
n e ss a d m in is tra tio n fro m th e U n i­
v e rs ity o f N e b r a s k a . A c o m m e rc ia l
lo a n o ffic er, M r. O h la n d e r jo in e d th e
b a n k sta ff la s t S e p te m b e r.

40 Largest Banks in Nebraska
D

E P O S IT a n d lo a n fig u re s fo r th e to p 4 0 b a n k s in N e b r a s k a , all w ith $ 2 5 m il­
lio n d e p o s its o r m o re , a re sh o w n in th e a c c o m p a n y in g c h a rt as th e y w e re
r e p o r te d a t y e a r-e n d . C o m p a ra tiv e fig u res fo r a y e a r ag o a lso a re f e a tu re d :
(L ast three figures om itted)

1. The Omaha Natl.. Omaha ...............
2. F irst Natl. Lincoln ...........................
3. F irst Natl., Omaha ...........................
4. U. S. Natl., Omaha ............................
5. Natl. Bk. of Commerce, Lincoln ...
6. N orthw estern N atl., Omaha ..........
7. 1st Natl., H astings ..............................
8. 1st Natl., Grand Island .... .............
9. 1st Natl. B&T, Columbus ................
10. Commercial Natl., B&T, Gr. Island
11. City N atl., H astings .........................
12. Center Bank, Omaha ......................
13. 1st Natl. B&T, Frem ont ..................
14. DeLay 1st Natl., Norfolk ..............
15. Southwest Bank, Om aha ................
16. 1st Natl. B&T, K earney ..................
17. Scottsbluff N atl.....................................
18. F irst W est Side, Omaha ..................
19. 1st N atl., Holdrege ...........................
20. Overland Natl., Grand Island ........
21. 1st Natl. B&T, North P latte ..........
22. 1st N atl., McCook
........................
23. 1st Natl., York ...................................
24. Douglas County Bank, Omaha ......
25. Frem ont N atl........................................
26. G uardian State, Alliance ................
27. Packers Natl., Omaha .....................
28. P latte Valley State, Kearney .......
29. North Side, Omaha ........................
30. Gateway Bank. Lincoln ..................
31. A m erican Natl., Omaha ...............
32. 1st Natl. B&T, Fairbury ................
33. McCook N atl.........................................
34. B eatrice N atl. B&T ........................
35. Gering Natl. .......................................
36. Jones N ath, Seward .... ..................
37. W ashington County, B lair ...........
38. N orthw estern Natl., Norfolk .......
39. Union B&T, Lincoln .....................
40. Geneva State .......................-............

M r. G r a n t jo in e d th e b a n k in 1 9 7 4 as
m a r k e tin g o ffic e r a n d h a s sin c e m o v e d
to c o m m e r c ia l a n d a g r ic u ltu r a l le n d in g .
M is s E rlin g h a s b e e n w ith th e b a n k
sin c e 1 9 3 6 . H e r p r e s e n t d u tie s in c lu d e
b e in g s e c r e ta ry to th e c h a ir m a n a n d
p r e s id e n t w ith s p e c ia l a d m in is tra tiv e
a s s ig n m e n ts . M r. B e r n h a r d t jo in e d th e
b a n k in 1 9 6 4 s p e c ia liz in g in o p e r a tio n s
a n d g e n e ra l b a n k a d m in is tra tio n .

Fremont Bank Promotions

To Head Minden Bank

J o h n R . Y o u n g , J r ., p r e s id e n t o f th e
F ir s t N a tio n a l B a n k & T r u s t C o m p a ­
n y o f F r e m o n t, h a s a n n o u n c e d th e f o l­
lo w in g p r o m o tio n s : C . J u rg in g , s e n io r
v ice p r e s id e n t; K e n n e th D. G r a n t a n d
E d ith E rlin g , v ice p re s id e n ts ; G a ry L .
B e rn h a r d t, c a s h ie r; M ic h a e l A . L i n ­
d a h l, m a r k e tin g o ffic e r; R . S p e n c e r
W e d b e rg , lo a n o ffic er; J a n e t J. H o w ­
a rd , in te r n a l c o n tro l o ffic e r, a n d L in d a
B ro d d , a s s is ta n t tr u s t o ffic er.
M r. J u r g in g jo in e d F irs t N a tio n a l in
1 9 4 8 s p e c ia liz in g in b a n k o p e r a tio n s .

v ic e p re s id e n t.
E lo is e R o g e rs A g e e , d a u g h te r o f th e
la te R ic h a rd H . R o g e rs , b a n k p r e s id e n t
a n d c h a ir m a n , a n d M o r g a n W e lls w e re
e le c te d to th e b o a r d o f d ire c to rs .

N o for
rth w
e s te rn B a n ke r. M arch
Digitized
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

D a le W e lls r e c e n tly w as e le c te d p r e s ­
id e n t o f T h e F irs t N a tio n a l B a n k o f
M in d e n . J. L . C ra ig w as e le c te d vice
p re s id e n t- c a s h ie r a n d T a r r y W ilco x

Kearney State Changes
F r a n c is
L.
R ic h a rd s
has been
e le c te d to th e b o a r d o f K e a rn e y S ta te

December 31, 1975
Loans
Deposits
$286.202
•1472,627
188 328
316,658
177,061
280,448
180,341
244,182
137.854
242,360
57,763
87,911
55.121
81,591
46,222
71,088
29,943
68.756
39,951
60,714
29.541
56,544
37,757
55,959
33.798
54.375
33,642
53.607
31.932
50,585
34,633
49,756
25.220
47,686
32,229
47,655
29.273
45.606
32,735
44,370
33 313
42.438
24,298
41.243
30.772
41,199
26,463
40,443
19.520
40.104
20,315
38,485
20,413
38,435
26.521
37,741
19,356
36.299
24.494
34,565
22.838
33,776
15,691
32,107
18.361
31.205
19,675
30,294
20,327
30,217
16,851
27.186
17.660
27,083
16,983
25,802
17,723
25.721
15.262
25,446

December 31, 1974
Loans
Deposits
$346,017
$460,653
182,880
307,820
176,233
304,789
189,404
251.333
141,862
209,740
56,314
79,761
47,372
72,427
44.337
70.578
28,722
62 758
27,773
47,845
29,481
52.085
37,703
52,432
29,293
49.712
33.265
49.209
33,119
47,054
27.688
40.528
22,392
43,859
30,182
45.281
22,105
41,285
31.863
40.485
28,508
38,509
20,430
38 828
25.817
35,226
23.485
36,087
22.199
39,310
16.449
34 897
19,773
33 584
25.912
33,502
19.008
31.329
22,675
31.722
19.124
28,750
13,956
30.921
16,199
29,614
18,372
29,506
17,021
24,079
15,505
24,707
17,306
25,619
14,972
21,611
15,001
22.133
12.273
22,943

B a n k . J o h n B u rv a in is w a s e le c te d a s ­
s is ta n t c a s h ie r.

Columbus Bank Promotes
John M. Peck
J o h n M . P e c k re c e n tly w as p r o ­
m o te d to e x e c u tiv e v ic e p r e s id e n t o f
th e F ir s t N a tio n a l
B ank and T ru st
C om pany of C o ­
lu m b u s , a c c o rd in g
to J. O . P e c k ,
c h a irm a n .
M r.
P e c k jo in e d th e
b a n k in S e p te m ­
b e r o f 1 9 6 9 f o l­
lo w in g 10 y e a rs
of
b a n k in g
ex ­
it, t t , „
J- M. PECK
p e r ie n c e w ith I h e
O m a h a N a ti o n a l B a n k .
T h e b a n k a lso a n n o u n c e d th a t it h a s
in c re a s e d its c a p ita l a n d s u rp lu s ea ch
$ 5 2 5 ,0 0 0 . E a c h a c c o u n t n o w to ta ls
$ 2 ,2 7 5 ,0 0 0 .

Start with the best equipment modern
technology can come up with. It silently
works its magic all over the state.
Add the fact that we have more computer
centers than any other bank — four.
In Lincoln, Fremont, Grand Island, and
North Platte. That makes us swift.
And, when we process something, we do
it right. People like Dave Lesback,
Bill Cummings, Roger Ormsby, Claude
Hanson, w ouldn’t have it any other way.
So, hook up to our complete bank
management system s — it ’s the best
there is — w e’re sure.

Complete Range of
Data Processing Applications
Accounting Applications

Item Processing System

Demand Deposit
Bond
Certificate of Deposit
Commercial Loan
Expense
General Ledger
Personal Loan
Payroll
Savings
Safe Deposit Box
Mortgage Loan

Proof and Transit
ACH Capabilities


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

On-Line System s

Teller Units
Cathode Ray Tubes
Automated Tellers
Commercial Services

Payroll Accounting
Accounts Receivable
Accounts Payable
General Ledger

iVTi^r
l i l i v

1

National Bank of Commerce
T h e P e o p le P la c e

Main Bank 13th and N Sts., Lincoln, Nebraska
WATS Line: 800-742-7317
Member FDIC

82

N ebraska N ew s

Bank Security, Detecting Bad Loans
Highlight Nebraska Management Conference
By BEN HALLER, JR.
E d ito r

S

P E A K I N G f ro m h is v a n ta g e p o in t
as a f o r m e r b a n k r u p tc y ju d g e in
N e b r a s k a ’s U .S . D is tr ic t C o u r t, J e r r o ld
L . S tra s h e im g a v e N e b r a s k a b a n k e r s
a ju d ic ia l in s ig h t in to s o m e o f th e
c a u s e s h e h a s se e n f o r b a n k lo a n s g o ­
in g b a d . M r. S tra s h e im , a p a r t n e r in
th e O m a h a la w firm o f V e n te ic h e r a n d
S tra s h e im , w a s s p e a k in g b e f o r e th e N e ­
b r a s k a B a n k e r s A s s o c ia tio n ’s a n n u a l
B a n k M a n a g e m e n t C o n f e r e n c e a t th e
H o lid a y In n , K e a rn e y .
S o m e lo a n s , h e sa id , tu r n b a d d u e
to to ta lly u n e x p e c te d e v e n ts , su c h as
a n u n d e r in s u r e d tr u c k in g firm e x p e r i­
e n c in g a b a d h ig h w a y a c c id e n t. M o s t
lo a n s g o in g b a d , o r b u s in e s s e s h e a d ­
in g f o r b a n k r u p tc y , g iv e a s ig n a l, h e
s ta te d . M r. S tra s h e im s a id th a t f ro m
h is e x p e rie n c e “ y o u w o n ’t fin d m u c h
o f a c lu e o n b a la n c e s h e e ts a n d fin a n ­
c ia l s ta te m e n ts , f o r v irtu a lly e v e ry
d e b to r in b a n k r u p tc y c o u r t sh o w s
s o m e n e t w o r th o n th e b a la n c e sh e e t.
E x a m p le s h e c ite d in c lu d e d A m e r ic a n
B e e f a n d K in g ’s F o o d H o s ts .
“ H o w e v e r ,” h e c o n tin u e d , “ a ll h a v e
a c o m m o n a fflic tio n — - la c k o f c a s h o r
liq u id ity e v e n th o u g h th e y h a v e a sse ts.
O n e n e e d s to lo o k to th e c a sh p o s itio n ,
c a sh s o u rc e s a n d c a s h u se s. W h a t is th e
tim in g — • w ill c a s h so u rc e s p ro v id e
c a s h a t tim e s n e e d e d ? ” M r. S tra sh e im
a lso d isc u sse d f o re c lo s u re vs. w o rk o u t,

c itin g v a rio u s w a y s th e la tte r a p p ro a c h
is h a n d le d . H e a d d e d , “ If th e w o rk o u t
is n o t to th e in te r e s t o f th e b a n k , it is
n o t r e a s o n a b le to d o s o .”
J e s s e S n y d e r, h e a d o f th e F D I C ’s
in te llig e n c e u n it f o r th e d iv is io n o f
b a n k s u p e rv is o rs , re v ie w e d s ta tis tic s
re la tiv e to b a n k c o m p lia n c e o r la c k o f
it w ith th e B a n k P r o te c tio n A c t. T h e
b ig g e st p r o b le m h e n o te d w a s la c k o f
“ b a it m o n e y ” o r its u s e d u r in g h o ld ­
u p s . H e u r g e d b a n k e r s to u p d a te th e ir
s e c u rity p r o g r a m s a n d d o c u m e n t all
d e c is io n s a n d re a s o n s f o r th e m so as
to c o m p ly w ith th e la w .
A p a n e l o f liv e in te r n a tio n a l b a n k e r s
r e p r e s e n tin g
m a jo r
c o rresp o n d e n t
b a n k s fro m O m a h a a n d L in c o ln r e ­
v ie w e d v a r io u s p h a s e s o f in te r n a tio n a l
b a n k in g a n d h o w a ll its r e la te d se rv ic e s
a r e a v a ila b le th r o u g h th e c o r r e s p o n ­
d e n t b a n k s in N e b r a s k a .
G u n n a r E . K ro n h o lm , p re s id e n t,
D ro v e rs S ta te B a n k , S o u th S t. P a u l,
r e la te d th e h a r r o w in g d e ta ils s u r r o u n d ­
in g th e k id n a p p in g o f h is w ife, M a rc h
15, 1 9 7 4 . M r. K r o n h o lm im m e d ia te ly
n o tifie d th e F B I , a n d in a la te r p h o n e
c a ll th e k id n a p p e r s d e m a n d e d $ 2 0 0 ,0 0 0 r a n s o m f r o m th e b a n k . A n F B I
a g e n t p o s in g a s M r. K ro n h o lm m a d e
th e d r o p . T h e F B I in th e m e a n tim e
h a d p o o le d a ll e v id e n c e a n d d e t e r ­
m in e d w h o th e k id n a p p e r s w e re a n d

iso la te d th e rin g le a d e r. In a b iz a r re
tu rn o f e v e n ts, th e F B I m a n a g e d to a r ­
re s t th e rin g le a d e r. M rs. K ro n h o lm a t
th e s a m e tim e w a s u sin g h e r p r o f e s ­
s io n a l tr a in in g in h u m a n b e h a v io r to
o u tw it h e r c a p to r s . S h e e s c a p e d , m a d e
h e r w ay to a p h o n e a n d w a s p ic k e d u p
im m e d ia te ly b y th e F B I, w h o a r r e s te d
th e r e s t o f h e r c a p to r s a n d s e iz e d th e
m o n e y . A ll th e m e n in v o lv e d , e x c e p t
o n e , w e re la te r s e n te n c e d f o r te rm s
f ro m se v e n to 2 0 y e a rs .
M r. K ro n h o lm h a s s e v e ra l s u g g e s­
tio n s f o r b a n k e r s , in c lu d in g w e ll-lig h t­
e d h o m e p re m is e s , ta m p e r - p r o o f lo c k s,
w a tc h d o g s a n d a le r tn e s s f o r a n y te ll­
ta le sig n s o r c h a n g e s . C la r e n c e K elly ,
h e a d o f th e F B I , to ld th e K ro n h o lm s
a f te r th e n ig h tm a r e w a s e n d e d th a t a t
le a s t “ lig h tn in g d o e s n ’t s tr ik e tw ic e ”
o n k id n a p p in g s . U n b e lie v a b ly , it d id .
A fe w w e e k s a f te r th e k id n a p p in g , M r.
K ro n h o lm w a s c h e c k in g th e h o u s e b e ­
f o re re tirin g to b e d . H e s p o tte d a p a ir
o f sh o e s s tic k in g o u t b e s id e a b a s e m e n t
fire p la c e , b u t h a d p r e s e n c e o f m in d to
c a s u a lly r e tu r n u p th e ste p s w h e re h e
b o lte d th e b a s e m e n t d o o r a n d c a lle d
to h is w ife to c a ll th e p o lic e a n d b rin g
h is s h o tg u n . A f te r a n e x c itin g fe w m in ­
u te s th e p o lic e c a p tu r e d th e in tr u d e r
w h o w a s f o u n d to h a v e a g u n , gags,
b in d in g s a n d a k id n a p n o te a lre a d y
m a d e o u t!

PEAKERS at the Nebraska Bankers Association Bank Management Conference in Kearney last month included, left to r|ght- Rich-

rd K. Draper, Jr., chmn. of NBA Committee on Bank Management and exec, v.p., Bank of Elgin; Jesse Snyder, FDIC, Washington,
>, C.. Jerrold L Strasheim, Omaha attorney; Grant Alan Jacobsen, FBI special agent in Omaha office, Grand Island, and Gunnar
Kronholm, pres., Drovers State Bank, So. St. Paul, Minn.

N o rth w e s te rn B a n k e r, M a rch
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

N ebraska N ew s

i in i tK i\A l IUNAL banking panelists were: Tom Potter, a.v.p., Natl. Bank of Commerce.
Lincoln; Don Lewis, v.p., The Omaha Natl.; Vivian Onik, internatl. bkg. assoc., U. S.
Natl., Omaha, and Brad Korell, internatl. bkg. off., Natl. Bk. of Commerce, Lincoln. Mr.
Korell filled in for Joe Crimmins, v.p., 1st Natl., Lincoln, who was unable to attend.
Panel moderator (not pictured) was Paul Quinn, v.p., 1st Natl. Omaha.

F B I S p ecial A g e n t G r a n t A la n
J a c o b s e n , O m a h a , fo llo w e d M r. K ro n h o lm a n d r e la te d “ U p d a te d P r o c e d u r e s
f o r I m p ro v e d B a n k S e c u rity ,” a f te r
w h ic h h e a n d M r. K ro n h o lm c o n d u c t­
ed a n o p e n d is c u s s io n .

Elected at Kearney
F ir s t N a tio n a l B a n k a n d T r u s t C o .
o f K e a rn e y h a s a n n o u n c e d th e fo llo w ­
in g sta ff e le c tio n s : W ilm a In g ra m , lo a n
o p e r a tio n s o ffic e r; P a tty S c h ro e d e r,
tr u s t a d m in is tra tio n o ffic er, a n d L lo y d
S ch ev e , a u d itin g o ffic er.

Sell Dorchester Bank
J a m e s H . C la rk , W a y n e C . C la rk
a n d M a r io n G ra h a m h a v e r e p o r te d th e
sa le o f th e C itiz e n s S ta te B a n k o f D o r ­
c h e s te r a n d th e C la r k In s u ra n c e A g e n ­
cy to B o b S p in a r a n d H a rle y D . B e rg m e y e r.
J a m e s C la rk , b a n k p r e s id e n t, sa id
th a t his h e a lth is th e m a jo r r e a s o n f o r
se llin g . W a y n e C la r k w ill c o n tin u e a t
th e b a n k as c a s h ie r.
M r. B e rg m e y e r, 3 4 , h a s a s s u m e d h is
n e w p o s itio n as b a n k p r e s id e n t a n d in ­
s u r a n c e a g e n c y m a n a g e r. F o r th e p a s t
e ig h t y e a rs h e w a s v ic e p r e s id e n t a n d
s to c k h o ld e r o f th e F a r m e r s B a n k o f
C la to n ia a n d p a r tn e r in th e B e rg m e y e r-S c h u e r m a n I n s u r a n c e A g e n c y in
C la to n ia .

Bank of Valentine Names
Sullivan Assistant Cashier
B e tty S u lliv a n h a s b e e n n a m e d a s ­
s is ta n t c a s h ie r o f th e B a n k o f V a le n ­
tin e .

Application Approved
C h e s te r I n s u r a n c e A g e n c y , In c ., h a s
re c e iv e d p e r m is s io n to b e c o m e a b a n k

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

E a r lie r , N B A E x e c u tiv e M a n a g e r
R o b e rt H a r ris g a v e a re v ie w o f s ta te
le g is la tio n a ffe c tin g N e b r a s k a b a n k s .
O n e o f th e im p o r ta n t b ills h e a r d F e b ­
ru a r y 10 w o u ld r e q u ir e s ta te f u n d s to
b e d e p o s ite d in N e b r a s k a b a n k s a t 1 %

h o ld in g c o m p a n y th r o u g h th e a c q u is i­
tio n s o f 8 0 % o r m o r e o f th e v o tin g
s h a re s o f S ta te B a n k o f C h e s te r, f t a lso
h a s p e rm is s io n to e n g a g e in th e b u s i­
n e ss o f a g e n e ra l in s u r a n c e a g e n c y .

Promoted at Thedford
C itiz e n s S ta te B a n k o f T h e d f o r d h a s
a n n o u n c e d th e p ro m o tio n o f S a m u e l
O g le fro m a s s is ta n t c a s h ie r to c a s h ie r.

Norfolk Bank Promotion
D e n n is L . M e e k r e c e n tly w a s p r o ­
m o te d to a s s is ta n t v ic e p r e s id e n t o f
N o rth w e s te rn N a tio n a l B a n k o f N o r ­
fo lk . H e is a n a tiv e o f R e d O a k , la .,
a n d a 1 9 7 0 g r a d u a te o f M o rn in g s id e
C o lle g e .

Martell State Bank
Elects Two Directors
L e w is G . M o rris o f L in c o ln a n d
W illia m M . S y m o n , J r ., o f L e a w o o d ,
K a n ., h a v e b e e n e le c te d d ir e c to r s o f
th e M a rte ll S ta te B a n k . M r. M o r ris is
v ice p r e s id e n t a n d tr e a s u r e r o f th e L in ­
c o ln L ib e rty L ife I n s u ra n c e C o . M r.
S y m o n is s e c r e ta ry a n d g e n e ra l c o u n s e l
o f th e O ld A m e r ic a n I n s u r a n c e C o .

Beatrice Banker Retires
W illia m W ils o n C o o k , c h a ir m a n a n d
tr u s t o ffic e r, th e B e a tric e N a tio n a l
B a n k a n d T r u s t C o ., r e c e n tly r e tire d
e n d in g a b a n k in g c a r e e r o f 4 2 y e a rs.
B e fo re jo in in g th e b a n k u n d e r th e
g u id a n c e o f h is la te f a th e r, D a n ie l W .
C o o k , M r. C o o k a tte n d e d W e n tw o rth

83

a b o v e th e T r e a s u r y b ill r a te f o r th e
p re v io u s m o n th .
T h e b ill’s s p o n s o r fe e ls th is w o u ld
m o v e s ta te fu n d s o u t in to N e b r a s k a
c o m m u n itie s in th e fo rm o f lo a n s in ­
s te a d o f in o u t- o f- s ta te in v e s tm e n ts as
a t p r e s e n t. T h e to ta l v o lu m e o f th e se
lo a n s c o u ld r a n g e f ro m $ 2 5 m illio n to
m o r e th a n $ 1 0 0 m illio n .
W a y n e D o b s o n , A b b o tt P ro f e s s o r o f
B a n k in g a t th e U n iv e rs ity o f N e b ra s k a ,
te stifie d b e fo re th e c o m m itte e th a t
th e s e d o lla r s p la c e d in th e f o rm o f
lo a n s in N e b r a s k a c o m m u n itie s c o u ld
h a v e a m u ltip lie r effec t o f tw o o r m o re
tim e s to b e n e fit th e lo c a l c o m m u n itie s
a n d s ta te e c o n o m y — th u s g e n e r a tin g a
g r e a t v o lu m e o f ta x a b le in c o m e .
M r. H a r r is s a id th e b ill, a s p r o p o s e d
in its e a rly f o rm , w o u ld p la c e $ 1 0 0 ,0 0 0 in e a c h N e b r a s k a b a n k ( n a tio n a l
a n d s ta te ), w ith th e re s t o f th e fu n d s
a p p o r tio n e d to b a n k s b a s e d o n th e ir
e q u ity c a p ita l.-— End

M ilita ry A c a d e m y , th e U n iv e rs ity o f
N eb rask a
and
c o m p le te d
fin a n c ia l
c o u r s e s a t H a r v a r d a n d N o rth w e s te rn
U n iv e rs ity . D o w n th r o u g h th e y e a rs h e
w as r e s p o n s ib le f o r th e b a n k ’s e x p a n ­
sio n p ro g ra m w h ic h in c lu d e d th e P ic k re ll S ta te B a n k , W y m o re N a tio n a l
B a n k a n d B e a tric e S ta te B a n k w h ich
h e la te r so ld in 1 9 7 1 .
M r. C o o k w ill c o n tin u e as c h a ir m a n .

Elected at Bellevue
F re d W ilso n a n d G le n D u n la p h a v e
b e e n e le c te d d ir e c to r s o f th e B a n k o f
B e lle v u e . M r. W ils o n is v ic e p re s id e n t
in c h a rg e o f th e b a n k ’s lo a n d e p a r t­
m e n t a n d M r. D u n la p is v ic e p r e s id e n t,
o p e r a tio n s m a n a g e r a n d h e a d o f th e
b a n k ’s o ffice a t O ffu t A ir F o r c e B ase.

Calendar of Events
M a rc h 1 6 -1 8 — N B A T e lle r S y m p o ­
siu m s.
A p ril 6 - 7 — N B A A g ric u ltu ra l S e m i­
n a r, H o lid a y I n n , C o lu m b u s.
A p ril 7 -8 — N B A A g ric u lu tra l S e m i­
n a r, H o lid a y I n n , N o rth P la tte .
M ay 2 -4 — N B A A n n u a l C o n v e n ­
tio n , R a d is s o n C o rn h u s k e r, L in ­
c o ln .
M ay 28— N B A
P r e s id e n t’s G o lf
T o u r n a m e n t.
J u n e 6 - 8 — W a s h in g to n V isit, W a s h ­
in g to n , D . C .
S ep t.
2 6 -2 8 — N B A
A g ric u ltu ra l
S y m p o siu m , L in c o ln H ilto n .
N o rth w e s te rn

B a nker,

M a rch

1976

84
o f N e b r a s k a a n d re c e iv e d h is B a c h e lo r
o f S c ie n c e d e g re e in a g ro n o m y . F o r five
y e a rs h e w a s in sa le s a n d sa le s m a n ­
a g e m e n t w ith th e S ta n d a rd O il C o . an d
a lso w as c e n tra l N e b r a s k a sa le s m a n ­
a g e r fo r th e F u n k S e e d C o . b e f o r e jo in ­
in g th e b a n k .

Lincoln News

Open House Held at
Remodeled St. Paul Bank

D

ALE L. Blanchard, v ic e p re s id e n t,

c o m m e rc ia l
b a n k in g
d iv is io n ,
N a tio n a l B a n k o f C o m m e rc e , h a s b e e n
n a m e d as o n e o f th e “ F iv e O u ts ta n d ­
in g I n d iv id u a ls ” in L in c o ln fo r 1 9 7 6 .
In e a rly 1 9 6 7 M r. B la n c h a r d jo in e d
N B C a n d sin c e th e n h is re s p o n s ib ili­
ties h a v e in c lu d e d : m a n a g e r, in te r n a ­
tio n a l b a n k in g d e p a r tm e n t; m a n a g e r,
lo a n a d m in is tr a tio n d e p a r tm e n t, fin a n ­
c ia l a n a ly s is a n d d is c o u n t te lle r. In
1971 h e h a d a sp e c ia l d u ty a s s ig n ­
m e n t as in te r n a tio n a l o ffic e r in th e
B a n k in M o n tr e a l in C a n a d a . H e is a
m e m b e r o f n u m e ro u s a s s o c ia tio n s .
O th e r N a tio n a l B a n k o f C o m m e r c e
o ffic ers n o m in a te d fo r th e a w a rd in ­
c lu d e Rod Johnson, Jane Shepard,
Dennis Stelzer, Larry Traudt a n d Tom

Yaussi.
H:

❖

❖

in d iv id u a l b a n k s th e
ta b lis h an e ffe c tiv e
an a ly sis sy stem a t a
th a t o f th e s a la r y o f

o p p o r tu n ity to e s­
fin a n c ia l a n d c o st
c o s t e q u iv a le n t to
a p a r t- tim e c le rk .

Richard L. Kearns h a s b e e n e le c te d
a
d ir e c to r
and
p ro m o te d to e x e c ­
u tiv e v ice p r e s i­
d e n t o f L in c o ln
B a n k S o u th . M r.
K e a rn s , a n a tiv e
of
R u s h v ille ,
jo in e d th e b a n k
w h e n it o p e n e d in
A p ril o f 1 9 6 5 .
R. L. KEARNS
*

*

*

C itiz e n s S ta te B a n k h a s a n n o u n c e d
tw o n e w a p p o in tm e n ts . T h e y a r e Jim
A r t z to c a s h ie r a n d s e c u rity o ffic e r a n d
Jeff Munford to a s s is ta n t c a s h ie r.

F ir s t N a tio n a l
L in c o ln
has
an­
n o u n c e d e x c lu s iv e s p o n s o r s h ip in N e ­
Central City Bank
b r a s k a o f a n e w m a n a g e m e n t in f o rm a ­
Holds Open House
tio n se rv ic e f o r b a n k s w h ic h w ill b e o f ­
C e n tr a l B a n k o f C e n tr a l C ity r e ­
f e re d th r o u g h its c o r r e s p o n d e n t b a n k
c e n tly h e ld a n o p e n h o u s e in its e n ­
d iv isio n .
la rg e d , n ew ly re m o d e le d fac ility .
K n o w n a s B a n k p la n , th e se rv ic e is
T h e b a n k c o n ta in s f o u r n ew o ffices,
d e s ig n e d to tr a n s la te in p u t d a ta fro m
e n la rg e d b o o k k e e p in g a re a , n e w v a u lt
th e in d iv id u a l b a n k to v a lu a b le in f o r ­
a n d p r iv a te b o o th f o r sa fe ty d e p o s it
m a tio n th a t c a n b e u s e d b y th e c h ie f
b o x c u s to m e rs , re s tr o o m s , e m p lo y e e s
e x e c u tiv e o ffic e r in e s ta b lis h in g g u id e ­
lo u n g e , d ir e c to r s ’ m e e tin g ro o m a n d
lin e s f o r c o n tr o llin g c o s ts a n d a tta in in g
tw o c u s to m e r r e s tin g a re a s. C ry sta l
m a x im u m p ro fits.
c h a n d e lie rs a c c e n t th e c o m b in a tio n o f
B a n k p la n p ro v id e s th e in d iv id u a l
e a rth y to n e s a n d w a ln u t th r o u g h o u t th e
b a n k s u b s c rib in g to th e s e rv ic e w ith
in te rio r.
d e c is io n -m a k in g in fo rm a tio n b a s e d o n
P la n s a re to c o n v e rt th e la rg e s e c o n d
th e fo llo w in g th r e e k e y ite m s :
flo o r h all in to a p u b lic m e e tin g ro o m
1. A c o m p le te fin a n c ia l a n d p ro fit­ a t a la te r d a te , a c c o rd in g to C . A .
a b ility a n a ly sis w h ic h is s u p p lie d
G a g h a g e n , b a n k p re s id e n t.
e a c h m o n th .
2. A c o m p a r a b le fin a n c ia l a n a ly sis
Joins Kearney Bank
to b a n k s o f s im ila r siz e w h ic h is
R ic h a rd M . F ritz , p r e s id e n t o f th e
s u p p lie d e a c h q u a r te r.
3.
A p re lim in a ry a n d c o m p r e h e n F
­ irs t N a tio n a l B a n k a n d T r u s t C o .,
K e a rn e y , h a s a n n o u n c e d th e a d d itio n
siv e a n n u a l b u d g e t b a s e d o n p a s t
o f M e lv in W ie n s to th e b a n k ’s a g ric u l­
p e r f o rm a n c e a n d p ro je c te d g o a ls.
tu r a l d e p a r tm e n t as fa rm m a n a g e r.
I n e s se n c e , th e se rv ic e , w h ic h is c u r ­
M r. W ie n s w a s r a is e d o n a f a r m n e a r
re n tly b e in g u s e d b y h u n d r e d s o f b a n k s
H
a
s tin g s . H e a tte n d e d th e U n iv e rsity
in v a rio u s p a r ts o f th e c o u n try , o ffers
 B a n k e r , M a r c h
Norfhwesfern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

C itiz e n s N a tio n a l B a n k in St. P aul
re c e n tly h e ld a n o p e n h o u se . T h e p u b lic
w as in v ited to in s p e c t th e b a n k ’s s p a ­
c io u s n e w fa c ilitie s an d to re g is te r fo r
d o o r p riz e s. R e fre s h m e n ts w ere se rv e d
a n d th e re w e re d ra w in g s f o r $ 5 0 m e r ­
c h a n d is e g ift c e rtific a te s .
T h e b a n k ’s fa c ility w as e x p a n d e d to
in c lu d e a n e a rb y lo t. T h e in te r io r a n d
e x te rio r o f th e b u ild in g w ere r e n o ­
v a te d a n d a d riv e -in w in d o w w as
added.

10th Fed Reports
Earnings for 1975
T h e F e d e ra l R e serv e B an k of K a n ­
sa s C ity r e c o rd e d g ro ss e a rn in g s o f
$ 2 4 3 .6 m illio n in 1 9 7 5 , a n d n e t e a r n ­
ings o f $ 2 0 1 .1 m illio n b e fo re p a y m e n ts
to th e U .S . T r e a s u r y a n d s ta tu to r y d iv ­
id e n d s to m e m b e r b a n k s , a c c o r d in g to
G e o rg e H . C la y , p r e s id e n t. M o s t m a jo r
s e rv ic e f u n c tio n s o f th e B a n k — in c lu d ­
in g c h e c k c le a rin g , f u n d s tra n s f e rs , a n d
U .S . G o v e r n m e n t s e c u ritie s o p e r a tio n s
— c o n tin u e d to g ro w d u rin g 1 9 7 5 , M r.
C la y sa id .
W h ile 1 9 7 5 g ro ss e a rn in g s w e re u p
$ 3 .1 m illio n o v e r 1 9 7 4 , n e t e a rn in g s
in 1 9 7 5 d e c lin e d $ 7 .3 m illio n fro m
1 9 7 4 . E a r n in g s o f $ 2 4 2 .9 m illio n o n
th e B a n k ’s h o ld in g s o f U .S . se c u ritie s
— a n in c re a s e o f a b o u t $ 9 m illio n o v e r
1 9 7 4 — w e re o ffse t b y a s h a r p d e c lin e
in e a rn in g s f r o m lo a n s to m e m b e r
b a n k s . T h e B a n k e a r n e d $ 3 6 6 ,0 0 0 on
lo a n s d u rin g th e y e a r, d o w n f ro m th e
$ 6 .7 m illio n e a rn e d in 1 9 7 4 .

Harris Bank, Chicago, Plans
Trust Office in Arizona
H a r r is B a n k , C h ic a g o , h a s a n ­
n o u n c e d p la n s to o p e n a tr u s t d e p a r t­
m e n t r e p r e s e n ta tiv e o ffic e in A riz o n a
in la te s u m m e r o f th is y e a r. T h e office
is s c h e d u le d to b e lo c a te d a t 6 7 1 0 E a s t
C a m e lb a c k R o a d , S c o tts d a le . S taffin g
th e o ffic e w ill b e R o b e rt T u r p in , vice
p re s id e n t, a n d
B ru c e
F ro b e s a n d
G e o r g e F is c h e r, a s s is ta n t v ic e p r e s i­
d e n ts. T h e th r e e c u r r e n tly a re b a s e d
a t H a r ris B a n k h e a d q u a r te r s in C h i­
cago.

85

FIRST NATIONAL LINCOLN
Box 81008 * Lincoln, NE 68501

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N o rth w e s te rn

Banker,

M arch

1976

86

I

“ I travel the state, bring­
ing correspondent banking
services from
my ban k to
yours. If there’s
a way I can help you, I’d
lik e you to te ll me
about it.”
Bankers Trust has the personnel “ I ’ll be the re
and services to fill the full range of need me.”
your bank’s correspondent needs.
Senior Vice President Ben Eilders
and our o th e r roving c o rre ­
spondent bankers offer an individ­
ualized approach to trust services,

loan overlines and partici­

transfers, and
Ihn Ben Ellders pations, wirecomputer
ser­
vices. So get in
your roving correspondent touch with Ben
and discuss your
from Bankers Trust today,
corre sp o n d e n t
bank­
w hen y o u

ing npeds.
Bankers Trust wants to build a
solid correspondent relationship
with you . . . bank to bank . . . per­
son to person.
Use our to ll-fre e WATS line:
800-362-1688
in

Bankers Trust
Des Moines, Iowa 50304
M e m b e r: F .D .I.C ./F e d e ra l R e serve S ystem


N o rth w e s te rn B a n ke r, M a rch
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

F a r n h a m v ille . T h e fo llo w in g o ffic ers
h a v e b e e n e le c te d : J. C . M a d s o n , p r e s ­
id e n t; G o r d o n L . M a d s o n , v ic e p r e s i­
d e n t; D e w e y C . M a d s o n , c a s h ie r; S tev e
L a n e , a s s is ta n t c a s h ie r a n d O . W .
M a d s o n , c h a ir m a n .

Iowa
News
D. K. DEKOSTER
NEIL MILNER

President

Exec. V.P.

W aterloo

Farmington Office Manager
Named Vice President

Des Moines

Plan Meetings on Iowa Transfer System
r 1 1 H E Io w a T ra n s f e r S y stem is e x p e c te d to b e in o p e ra tio n b y th e
m id d le to la tte r p a r t o f M a y a n d w ill
m e e t th e m a n d a to r y s h a rin g r e q u ir e ­
m e n t o f Io w a la w by J u ly 1, an IT S
* s p o k e s m a n s ta te s . B id s h a v e b e e n re A c e iv e d f ro m v e n d o rs a n d IT S e x p e c ts
to h a v e a sig n e d c o n tr a c t w ith th e su c ­
c e s s fu l b id d e r by A p ril 1. T o in fo rm
Io w a b a n k e r s o f la te s t d e ta ils o f IT S
d e v e lo p m e n t a n d o ffic ia lly sig n u p p a r ­
tic ip a tin g b a n k s , a se rie s o f e ig h t m e e t­
in g s w ill b e h e ld a r o u n d th e s ta te d u r ­
ing th e la s t tw o w ee k s o f M a rc h as
fo llo w s:
M a r. 2 2 — R a m a d a I n n , W a te rlo o
M a r. 2 3 — H ilto n In n , S io u x C ity
M a r. 2 4 — H o lid a y M o to r L o d g e ,
C le a r L a k e
M a r. 2 5 — R a m a d a I n n , C o u n c il
B luffs
M a r.
2 9 — H o lid a y
In n ,
C edar
R a p id s
M a r. 3 0 — J u lie n M o to r In n , D u ­
buque
A p r. 1— H y a tt H o u s e , D e s M o in e s

Joins Marion Bank
H a r o ld
K naack
re c e n tly
jo in e d
F a r m e r s S ta te B a n k , M a rio n , a s a s ­
s is ta n t o p e r a tio n s o ffic e r. H e re c e iv e d
a d e g re e fro m th e U n iv e rs ity o f N o r th _ e r n I o w a a n d h a s o v e r th r e e y e a rs o f
b a n k in g e x p e r ie n c e w ith Io w a S ta te
B a n k in D es M o in e s .

g u e s ts a t th e M a s o n ic T e m p le . W illia m
D. R u c k e ls h a u s , f o r m e r U . S. D e p u ty
A tto r n e y
G e n e ra l, w a s th e g u e s t
s p e a k e r. B o b J . S la v e n s, b a n k p re s i­
d e n t,
d e liv e re d
r e m a rk s
e n title d
“ N o r th w e s t B a n k & T r u s t C o m p a n y
a n d its S tre n g th .”

Joins Missouri Valley Bank
E v e r e tt P. B ro w n , 4 2 , jo in e d P e o ­
p le s S ta te B a n k in M is so u ri V a lle y as
a v ic e p re s id e n t
o n M a rc h 1, a c ­
c o rd in g to J o h n
A . K o v a r, p re s i­
d e n t o f th e b a n k .
M r.
B ro w n
re­
sig n e d la s t m o n th
as v ic e p r e s id e n t
in th e c o r r e s p o n ­
d e n t b a n k in g d i­
v isio n
of
th e
U n ite d S ta te s N a ­
tio n a l B a n k o f O m a h a to a c c e p t th e
n e w p o s t. P r io r to jo in in g U . S. N a tio n ­
al in 1 9 6 7 , M r. B ro w n w as a lo a n o ffi­
c e r f o r f o u r y e a r s a t B o o n e S ta te B a n k
a n d T r u s t C o ., B o o n e , a n d e a r lie r w as
a s s o c ia te d w ith R a ls to n P u rin a C o m ­
p a n y o f St. L o u is , M o .

Retires at Farnhamville
O . W . M a d s o n h a s r e tire d a s p r e s i­
d e n t o f th e S e c u rity S a v in g s B a n k o f

Northwest Bank, Davenport,
News Announcements
S a m G e if m a n h a s b e e n e le c te d to
I th e b o a r d o f N o rth w e s t B a n k & T r u s t
C o m p a n y o f D a v e n p o r t as th e n in th
m e m b e r. H e is c h ie f e x e c u tiv e o ffic e r
o f th e G e if m a n F o o d S to re s s u p e r m a r ­
k e t c h a in .
S h a r ri A . P h e iffe r h a s b e e n p r o m o t­
e d f r o m a s s is ta n t c a s h ie r to a s s is ta n t
v ice p r e s id e n t a n d E v e r e tt S o rto r,
C P A , h a s b e e n e le c te d in te r n a l a c ­
c o u n tin g sy ste m s o ffic e r.
T h e b a n k a ls o a n n o u n c e d th a t it r e ­
c e n tly h o s te d a n a s s e m b ly o f 2 ,7 0 0

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

D o n a ld L . V o n S eg g en , m a n a g e r o f
th e F a r m in g to n o ffic e o f S ta te C e n tra l
S a v in g s B a n k o f K e o k u k f o r 2 0 y e a rs,
h a s b e e n p r o m o te d to v ic e p re s id e n t.
H e h a s b e e n w ith th e b a n k f o r 2 0
y e a rs .

Staff Changes Announced
At Marshalltown Bank
O r ia n K . E rv in , f o rm e r ly v ice p r e s ­
id e n t, re c e n tly w a s n a m e d e x e c u tiv e
v ic e p r e s id e n t o f th e C o m m e rc ia l S tate
B a n k o f M a rs h a llto w n . H e w ill c o n ­
tin u e a s p e r s o n n e l o ffic er. C h a rle n e
H o w a r d , a s s is ta n t c a s h ie r, a s su m e d
n e w d u tie s a s o p e r a tio n s o ffic e r. S h ir­
le y N a y lo r w a s n a m e d a s s is ta n t tr u s t
o ffic e r a n d K a th le e n W a te r m a n , a s s is ­
ta n t c a s h ie r a n d M a ll o ffice m a n a g e r.

Joins Lake Park Bank
R o b e r t (B o b ) C o o p e r h a s jo in e d
th e S e c u rity S ta te B a n k in L a k e P a r k
a s c a s h ie r. H e f o rm e r ly w a s a s s is ta n t
v ic e p r e s id e n t in th e M a h a s k a S ta te
B a n k in O s k a lo o s a a n d h a s five y e a rs
o f b a n k in g e x p e rie n c e .

Open House at Mt. Pleasant
A f o rm a l o p e n h o u s e w a s h e ld r e ­
c e n tly a t th e r e m o d e le d a n d e n la rg e d
M t. P le a s a n t B a n k & T r u s t C o m p a n y .
In a d d itio n to r e m o d e lin g o f th e in ­
te rio r, th e f r o n t w a s re d e s ig n e d a n d r e ­
b u ilt. T h e b o o k k e e p in g d e p a r tm e n t
w a s r e lo c a te d to a b u ild in g n e x t d o o r.
F e a tu r e s in c lu d e d a re a la rg e fo y e r a n d
w a lk -u p w in d o w .

Iowa Bankers 1976 Group Meetings
Date

Group

City

May 3

8

Davenport

May 4

4

Cedar Rapids

May 5

2

Fort Dodge

May 17

5

Council Bluffs

May 18

6

Des Moines

May 19

7

Waterloo

May 20

3

May 21

12

Clear Lake
Okoboji

N o rth w e s te rn

Banker,

M a rch

1976

88

Io w a N e w s

Promoted at Bettendorf
K a th y P ric e h a s b e e n n a m e d a s ­
s is ta n t c a s h ie r a n d b o o k k e e p in g m a n ­
a g e r a t th e S e c u rity S ta te T r u s t a n d
S a v in g s B a n k o f B e tte n d o rf . N a n c y
E c k b la d h a s b e e n n a m e d a s s is ta n t
c a s h ie r a n d o ffic e m a n a g e r a t th e
n ew ly o p e n e d o ffice a t 1 8 th S tre e t a n d
M id d le R o a d .

Manly State Announces
Elections, Promotions
Ankeny State Bank

Ankeny State Bank Holds Open House
A

N K E N Y S ta te B a n k re c e n tly h e ld
a n c p e n h o u s e to d e d ic a te its
n ew ly r e m o d e le d b a n k in g q u a r te rs .
T h e p r o je c t in c lu d e d a 5 ,0 0 0 s q u a re
fo o t a d d itio n , n ew v a u lts , n ew d riv e in fa c ilitie s a n d e x te n siv e re m o d e lin g
o f th e o ld b a n k , a c c o r d in g to D e a n E .
M in o r, b a n k p r e s id e n t.

Promoted at Sibley
D av id W ie r w a s p r o m o te d to v ic e
p r e s id e n t o f S ib ley S ta te B a n k r e c e n t­
ly. H e h a d se rv e d as a s s is ta n t v ic e
p r e s id e n t.

Monticello State Bank
Elections and Promotions
J o h n M a u ric e , v ic e p r e s id e n t o f th e
W ilto n S av in g s B a n k , h a s b e e n e le c te d
a d ir e c to r of M o n tic e llo S ta te B a n k .
B e fo re jo in in g th e W ilto n B a n k , M r.

M a u ric e w a s a b a n k e x a m in e r f o r th e
F e d e r a l D e p o s it I n s u r a n c e C o r p o r a ­
tio n .
I rm a A d ix h a s b e e n p r o m o te d to a s ­
s is ta n t c a s h ie r. N e lla H o ffm a n , a s ­
sis ta n t c a s h ie r, r e c e n tly re tire d . S h e
w a s h o n o r e d by th e b a n k w ith a r e ti r e ­
m e n t d in n e r f o r h e r 4 4 y e a r s o f s e r­
v ice.

M a n ly S ta te B a n k h a s a n n o u n c e d
th e e le c tio n o f G . C . (G riff) V en z ,
M . O . K a h n a n d O tto M c D o n o u g h to
its b o a r d o f d ir e c to r s . M r. V e n z is
o w n e r o f C e n tr a l S h o w P rin tin g C o .
in M a s o n C ity ; M r. K a h n is fro m
C le a r L a k e a n d M r. M c D o n o u g h is a
f a r m e r in th e R o c k F a lls a re a .
R ay m o n d W . H arm a n , w ho has
b e e n w ith th e b a n k sin c e 1 9 7 2 , w as
p ro m o te d f ro m a s s is ta n t v ic e p re s id e n t
to v ic e p r e s id e n t a n d f a r m r e p r e s e n ta ­
tiv e . F lo r is Y e z e k , w ith th e b a n k sin c e
1 9 6 4 , w a s n a m e d a s s is ta n t c a s h ie r. A
n e w m e m b e r o f th e b a n k ’s sta ff is A la n
W . C h a p m a n , w h o h a s b e e n w ith a
b ra n c h b a n k in B ritto n , S. D .

First Trust and Savings,
Davenport, Promotions

Lansing Bank Reports
Staff Changes

F ir s t T r u s t a n d
S a v in g s
B ank,
D a v e n p o rt, h a s a n n o u n c e d th e e le c ­
tio n s o f T e d C . M c N a n e y , e x e c u tiv e
v ic e p r e s id e n t; C a l H a rm s e n , c a s h ie r;
M ild re d E . C a in a n d S h a ri L . H o a g ,
a s s is ta n t c a s h ie rs .
M r. M c N a n e y a n d A lb e r tu s W .
B a rn e s o f R o c k I s la n d w e re e le c te d to
th e b o a r d .

K e r n d t B r o th e r s S a v in g s B a n k o f
L a n s in g h a s a n n o u n c e d th e e le c tio n o f
J o h n C . B r o p h y a s c h a ir m a n o f th e
b o a r d . M r. B ro p h y , p r e s id e n t o f th e
L a n s in g C o m p a n y , I n c ., jo in e d the
b a n k ’s b o a r d in 1 9 5 9 .
A ls o a n n o u n c e d w e re th e p r o m o ­
tio n s o f K a th y C o n n e lly a n d D ia n a
M o ritz to a s s is ta n t c a s h ie rs .

Cedar Rapids Bank
Elects Two Directors

UNFORTUNATELY comparison
Between Us and Our Leading Competitors

SEE FOR YOURSELVES!
U.S. Check Book Co.

Competitors

Experts in Supplying ALL Bank
Forms and Checks!

...........

Expert Men, Calling on the
Banks that KNOW BANKING

...........

Service and Quality
at Competitive Prices!

...........

United States Check Book Company
1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 - PHONE 345-316,'
OUT STATE PHONE-CALL WATTS LINE 1 ■ 800 - 228 - 9246


N o rth w e s te rn B a n ke r, M arch
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

T h e e le c tio n o f J o e H la d k y I I I to
th e b o a r d o f P e o p le s B a n k a n d T ru s t
C o ., C e d a r R a p id s , h a s b e e n a n ­
n o u n c e d b y T e d J. W e lc h , c h a irm a n .
M r. H la d k y , e x e c u tiv e v ic e p re s id e n t
o f T h e G a z e tte C o ., is a g r a d u a te o f
th e U n iv e rs ity o f Io w a .
F re d E . B e lla m y h a s b e e n e le c te d
a n h o n o r a r y d ir e c to r .

Elected at Denison
J o h n J . K e n n e y o f V a il h a s b e e n
e le c te d to th e b o a r d o f F ir s t N a tio n a l
B a n k o f D e n is o n fillin g th e v a c a n c y
c r e a te d b y th e r e tir e m e n t o f F r a n k
C r a b b . M r. C r a b b h a d s e rv e d as a d i­
r e c to r sin c e J a n u a r y o f 1 9 6 4 .
M r. K e n n e y , a n a tiv e o f C ra w fo rd
C o u n ty , f a r m s n e a r V a il.

89

"O ver 00 banl^s have
discovered the opportunities we offer
w ith correspondent
services."

<

v

4

T

v
-

Meet Robert Scott, Senior Vice
President and one of our Men of
Opportunity at American Trust.
"It's not enough to offer an
experienced management team with
a proven track record of serving
banks like yours for over 28 years."
"N ot if you suddenly need help
on a busy Friday afternoon."
"That's why we put the emphasis
on service. We're never more than a
phone call away ready to give
immediate help."
If you need help with
participation in loans and overlines,
computer services, trust
management or the administration
of HR-10 and Keogh Plans, take
advantage of the opportunities
Bob can offer you.
Call him collect at
319-582-1841.

"W hy not join them ?"

American
Town Clock Plaza
Dubuque, Iowa
Member: FDIC & Federal Reserve System


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

■ kk

The Ban\of Opportunity
N o rth w e s te rn

Banker,

M arch

1976

90

Io w a N e w s
c u s to m e rs w ill b e w a ite d o n s im u lta n e
o u sly w ith e x p a n s io n c a p a b ilitie s t
th r e e w ith th e p n e u m a tic tu b e sy ste m .
T h e m o to r b a n k , w h ic h w ill ex tern
so m e 2 8 ' in to th e a ir, w ill c o n ta in in ­
sid e w a lk -u p te lle r s ta tio n s , a lo a n o f­
fice, a n d a n e m p lo y e e lo u n g e o n th e
m a in flo o r. T h e e n tir e b a s e m e n t a r e a
h a s b e e n d e s ig n e d to a c c o m m o d a te
c o m m u n ity a c tiv itie s.
T h e K irk G ro s s C o m p a n y o f W a te r ­
lo o , a r c h ite c ts , p la n n e r s , d e s ig n e rs , a n d
c o n tr a c to r s h a v e th e tu r n - k e y r e s p o n s i­
b ility f o r th e b u ild in g p r o g ra m a n d w ill ^
u tiliz e lo c a l tr a d e s w h e re p o ssib le .

A. Elias Spangler,
Donald Lee Brisbin
PICTURED left to right at the Iowa Investment Bankers Association annual meering are
these officials: Messrs. Kirke, Cornelison, McLain, Strandberg and Marasco.

Investment Bankers Elect New Officers

M

E M B E R S o f th e I o w a I n v e s tm e n t
B a n k e rs A s s o c ia tio n h e ld th e ir
a n n u a l m e e tin g a t th e W a k o n d a C lu b
in D e s M o in e s la s t m o n th . D u r in g th e
b u s in e s s se ssio n n e w o ffic ers a n d d ir e c ­
to r s w e re e le c te d as fo llo w s ( a ll f r o m
D e s M o in e s ) :
P re s id e n t— W m . T . K irk e , m a n a g e r,
L oew i & C o.
F ir s t V ic e P re s id e n t— M ik e C o r n e li­
s o n , first v ic e p r e s id e n t-s a le s m a n a g e r,
R . G . D ic k in s o n & C o .
S e c o n d V ic e P re s id e n t— J o h n M c ­
L a in , a s s o c ia te v ic e p r e s id e n t, D e a n
W itte r & C o .

S e c r e ta r y -T r e a s u r e r — G e n e S tra n d b e rg , s e c r e ta r y - tr e a s u r e r , C a r le to n D .
B eh Co.
D ire c to rs f o r th r e e -y e a r te rm s : J im
R u d e , D a in , K a lm a n Q u a il & C o .; J im
W e ise r, tr u s t in v e s tm e n t o ffic e r, C e n ­
tr a l N a ti o n a l B a n k & T r u s t C o ., a n d
J o n G a s k e ll ( r e e le c t e d ) , R . G . D ic k in ­
so n & C o .
T h e n e w o ffic e rs s e le c te d th e te n ta ­
tiv e d a te s o f M a y 27-28 f o r th e 1 9 7 6
F ie ld D a y a t th e W a k o n d a C lu b a n d
n a m e d R a lp h M a ra s c o a s F ie ld D a y
c h a ir m a n . H e is w ith D e a n W itte r &

Co.

F u n e r a l s e rv ic e s w e re h e ld re c e n tly
fo r A . E lia s S p a n g le r, 9 4 , a n d D o n a ld y
L e e B ris b in , 6 6 , b o th d ir e c to r s o f th e
S e c u rity S a v in g s B a n k o f E a g le G ro v e .
M r. S p a n g le r h a d b e e n a d ir e c to r fo r
4 0 y e a rs a n d M r. B ris b in f o r 13 y e a rs .
T h e b a n k e le c te d J a m e s H . S p a n ­
g le r, f a r m e r , to its b o a r d . H e is th e _
n e p h e w o f th e la te A . E . S p a n g le r.

Elected to Board at Fonda
P a u l M . G o e tts c h , o ffic e r tr a in e e ,
h a s b e e n e le c te d a d ir e c to r o f th e F ir s t
N a tio n a l B a n k o f F o n d a . H e fills th e
v a c a n c y c r e a te d b y th e d e a th o f W il­
lia m F . N e a v in w h o w a s a d ir e c to r fo r
m a n y y e a rs .
M a ry E v a n s h a s jo in e d th e b a n k ’s
staff.

Northwestern State Bank,
Orange City, Changes
E d w a r d L e a h y a n d P h ilip D e n ^
H e r d e r h a v e b e e n e le c te d to th e b o a r d ~
o f N o r th w e s te r n S ta te B a n k , O ra n g e
C ity . M r. L e a h y , e x e c u tiv e v ic e p r e s i­
d e n t, jo in e d th e b a n k in A u g u s t, 1 9 7 5 .
H e f o rm e r ly w a s v ic e p r e s id e n t o f th e
S e c u rity N a tio n a l B a n k o f S io u x C ity , u
w h ic h he jo in e d in 1 9 6 9 . M r. H e r d e r is p re s id e n t o f S io u x F e e d I n c o r p o r a ­
tio n .
I n a d d itio n , H a lla r d D e J o n g w as
p r o m o te d fro m lo a n re p r e s e n ta tiv e to
a s s is ta n t c a s h ie r.

Belle Plaine Plans New Building
A R L G ro s z k r u g e r , p r e s id e n t o f th e
C itiz e n s S ta te B a n k in B e lle
P la in e , h a s a n n o u n c e d a m a jo r b u ild ­
ing p r o g ra m to s ta r t as s o o n as w e a th e r

C

p e rm its .
A fu ll-s e rv ic e m o to r b a n k w ill b e
o r t FRASER
h w e s te rn B a n ke r, M a rch
DigitizedNfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

b u ilt o n e b lo c k n o r th o f th e e x istin g
b a n k o n H ig h w a y 1 3 1 . T h e u n iq u e
s tr u c tu re , as s h o w n b y th e a r c h ite c t’s
m o d e l, h a s b e e n d e s ig n e d to o ffe r fu ll
b a n k in g s e rv ic e s su c h as d riv e -u p a n d
n ig h t d e p o s it sy ste m s. T w o d riv e -u p

Hills Bank and Trust
Announcements
E a r lis R o h r e t, r u r a l O x fo r d f a r m e r ,
h a s b e e n e le c te d to th e b o a r d o f d ir e c ­
to r s o f th e H ills B a n k a n d I r u s t C o m ­
p a n y . H e fills a v a c a n c y th a t h a s e x istp H d n r e the death o f f o rm e r b a n k p r e s ­
id e n t, A . F . D ro ll.
A lfre d K le in w a s n a m e d a v ic e p r e s ­
id e n t.

Io w a N e w s

)wan Promoted in
lew York Bank

*- >

M a r k R . M a y n e h a s b e e n p ro m o te d
o a s s is ta n t v ice p r e s id e n t r e s p o n s ib le
f o r c o r p o r a te lo a n
a c c o u n ts in th e
m e tr o p o lita n f u n c ­
tio n o f M a n u fa c ­
tu r e r s a n d T r a d ­
e rs T r u s t C o m _
p a n y o f B u ffalo ,
^
N. Y . H e jo in e d
th e b a n k ’s c o m ­
m e rc ia l
le n d in g
a re a in 1 9 7 3 . P r e ­
R. MAYNE
v io u sly M r. M a y n e
h a d b e e n a n o ffic er o f th e M o n tg o m e ry
C o u n ty N a tio n a l B a n k o f R e d O a k , la .

91

“We try to offer
a service
that’s there when
you need it.”

A Advanced at Waveriy
< T h e F ir s t N a tio n a l B a n k o f W a v e riy
h a s a n n o u n c e d p r o m o tio n s o f th e fo l> lo w in g a s s is ta n t c a s h ie rs : P a u lin e E .
K o ch to a s s is ta n t v ic e p r e s id e n t a n d
> tr u s t o ffic e r; M a r jo r ie P ru in to a u d ito r
v a n d J a n ic e J o h n s o n to a s s is ta n t v ic e
p re s id e n t. T h e fo llo w in g w e re e le c te d
‘ o ffic e rs:
R ic h a rd
D e w e y , a s s is ta n t
c a s h ie r a n d fa r m r e p r e s e n ta tiv e ; T o m
L e a ry , a s s is ta n t c a s h ie r a n d s e c u rity
o ffic er, a n d D u a n e H a rm s , a s s is ta n t
c a s h ie r a n d in s ta lm e n t lo a n m a n a g e r.

Staff Changes at Newton
„

D e n n is D . E s s in g re c e n tly w a s p r o ­
m o te d to e x e c u tiv e v ic e p r e s id e n t a n d
e le c te d a d ir e c to r o f N e w to n N a tio n a l
B a n k . G . J. M e rr ill A n d e r s o n , p r e s i, d e n t o f C e n tr a l N a tio n a l B a n c s h a re s ,
r In c ., D e s M o in e s , w a s e le c te d a n h o n ­
o r a r y m e m b e r o f th e b o a r d . G re g
'C r a n s to n w a s p r o m o te d to a g r ic u ltu r a l
^ r e p r e s e n ta tiv e .

~ Resigns From Marion Bank

y

H ild a ju n e P a r k e r , a s s is ta n t o p e r a ­
tio n s o ffic e r o f F a r m e r s S ta te B a n k in
M a rio n , h a s re s ig n e d a f te r 16 y e a rs o f
se rv ic e.

. State Bank of Lawler
Elects Scally, Stone

“We continually upgrade the service we
furnish our correspondent banks to
find new ways we can help. The biggest
area we’re working on right now is
automation. For at least the next five
years we’re going to be deeply involved in
more automated services to find better
ways to serve all our
correspondent banks.”

S ta te B a n k o f L a w le r h a s e le c te d

± J o s e p h S c a lly v ic e p r e s id e n t a n d s e c u ­
r ity o ffic er a n d S u s a n S to n e c a s h ie r.
M r. S c a lly jo in e d th e b a n k in 1 9 6 3 .
> I n 1 9 6 9 h e le ft to a tte n d th e U n iv e rs ity
v o f Io w a w h e re h e m a jo r e d in b u s in e s s
a d m in is tra tio n . H e r e tu r n e d to th e
b a n k in M a rc h o f 1 9 7 4 . M s. S to n e
jo in e d th e b a n k in 1 9 6 7 .

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Gene Hagen, Vice President
Banks and Bankers Division

Security National Bank
6th & Pierce Street, Sioux City, Iowa
Phone: 712-277-6517

N o rth w e s te rn

B a nker,

M arch

Ì976

92

<A

David L. Miller, p r e s id e n t o f t h e x
W e s t D e s M o in e s S ta te B a n k , h a s a n ­
n o u n c e d five p r o m o tio n s . T h e y a re : O .
Lee Minear to s e n io r v ic e p r e s id e n t,
Joyce A. Chapman f ro m c a s h ie r to
v ic e p r e s id e n t a n d c a s h ie r, Archie G .

^I?**-*'-:
fei,

O. L. MINEAR

J

OHN R. Fitzgibbon, c h a ir m a n a n d

c h ie f e x e c u tiv e o ffic e r o f th e lo w a D e s M o in e s N a ­
tio n a l B a n k , h as
announced
th e
e le c tio n o f W. O.
Conyers a n d Jack
C. Pester to th e
b a n k ’s b o a r d . M r.
C o n y e rs is p r e s i­
dent
o f G ib b s C o o k E q u ip m e n t
C o m p a n y a n d M r.
W. O. CONYERS
P e s te r is c h a ir ­
m a n o f P e s te r D e rb y O il C o m p a n y .
M r. F itz g ib b o n a lso a n n o u n c e d th e
fo llo w in g p e r s o n n e l a c tio n s . R. Jack
Lytle h a s b e e n n a m e d m a n a g in g o ffic e r
o f M a s te r C h a rg e . Robert G . Millen
h a s b e e n p r o m o te d to s e n io r in s ta lm e n t
lo a n o ffic e r a n d Lance l). Davenport
h a s r e jo in e d th e b a n k as m a n a g e r- b a n k
offices.
M r.
D a v e n p o rt
p re v io u sly
jo in e d th e b a n k in 1 9 6 9 a n d in 1 9 7 2
w as e le c te d c o r p o r a te s e rv ic e s o ffic er.

S in c e 1 9 7 4 h e h a s b e e n w ith C ity N a ­
tio n a l B a n k o f C e d a r R a p id s .

R. J. LYTLE

J. C. PESTER

R. G. MILLEN

L. D. DAVENPORT

Design to fit
your budget
When you set your building budget, we
believe you! Our goal is to make your new
building efficient yet distinctive while
keeping w ithin the budget you establish.
That’s why so many financial institutions
use the specialized services of the Kirk
Gross Company.

Kirk Gross Co.

110 EAST 7TH ST., WATERLOO, IOWA 50705
PHONE 319/234-6641

DigitizedNfor
o r t FRASER
h w e s te rn B a n ke r, M a rth
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

J. CHAPMAN

Overby f r o m tr u s t o ffic e r to a s s is ta n t
v ic e p r e s id e n t a n d tr u s t o ffic e r, Mar­
lene S. Cox to a s s is ta n t v ic e p re s id e n t
a n d Henry Kime to a s s is ta n t c a sh ie r.

John Rodgers Welch, f o rm e r ly c o r ­
re s p o n d e n t b a n k in g o ffic e r o f V a lle y
N a tio n a l B a n k , h a s b e e n e le c te d vice
p re s id e n t. William A. Wishman, f o r ­
m e rly c o m p tr o lle r h a s b e e n e le c te d
v ic e p r e s id e n t a n d c o m p tr o lle r a n d
Jack C. Callison, in s ta lm e n t lo a n o f­
fice r, h a s b e e n e le c te d a s s is ta n t vice
p r e s id e n t.

N o rth w e s t D e s M o in e s N a tio n a l
B a n k h a s e le c te d Richard C . Remer
v ic e p r e s id e n t. H e w a s re c e n tly n a m e d
m a n a g e r o f thte b a n k ’s J o h n s t o n office.
Robert G . Mann, a s s is ta n t v ic e p r e s i­
d e n t, w a s n a m e d c a s h ie r a n d o p e r a ­
tio n s o ffic e r a n d Dean L. Payton, p r e - ‘
v io u sly m a n a g e r o f th e U p to w n office,
w a s n a m e d a s s is ta n t v ic e p r e s id e n t a n d
c o n s u m e r lo a n m a n a g e r.

Io w a S ta te B a n k h a s p r o m o te d th e
fo llo w in g to a s s is ta n t c a s h ie rs : Robert

F. Cook, Gary L. Johnston, Harold
E. Knaack, Ausma Plostins a n d Ethel
K, Smith, Marjorie K. Smith w as
n a m e d a s s is ta n t t r u s t o ffic e r, Doris Ol- -*
son, e x e c u tiv e s e c r e ta ry , a n d C . Ted
Carlson, s e c u r ity o ffic e r.

Paul T . Manning, c h a ir m a n o f
P la z a S ta te B a n k , h a s a n n o u n c e d th e +
e le c tio n o f a n e w d ir e c to r . H e is
Browne Barr, o w n e r o f C r o s s r o a d s
U .S .A .

We^re sharing
th e system !

“ Central National Bank has been a leader in developing the necessary exper­
tise (for EFT). But more important, to us, you have proven your value as a
correspondent bank by making your system available to smaller banks like
ourselves.”
— Duane W. Spicer,
Ankeny State Bank

“ If it weren’t for our correspondent bank, a bank our size could not be on
the forefront of a dramatic change such as this . . . just one more reason we
rely on the Central National Bank.”
— H. H. Van Hosen, President,
The Newton National Bank

Thank you, gentlemen, we couldn’t
have said it better ourselves.

We w ant
to be your
correspondent bank:
Central National Bank & Trust Company
DES MOINES (515)245-7111 MEMBER FDIC

LOC
LOCUST
AT SIXTH /FIFTH & GRAND / 35TH & INGERSOLL / WEST DES MOINES
A F F IL IA T E D W ITH C EN TR AL N A T IO N A L B A N C S H A RES, IN C .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

94

Io w a N e w s

Brenton Fingertip Banking Begins Operation
Brenton, president of
C• ROBERT
Brenton Banks, Inc., has an­
nounced that 14 of the 17 Brenton
Banks are participating initially in the
electronic funds transfer system, Bren­
ton Fingertip Banking. The system be­
gan operation in mid-February.
Electronic terminals were placed at
the point of sale in 16 selected super­

chairman of the Central State Bank,
Muscatine, succeeding his father, S. G.
Stein, III, who has been elected hon­
orary chairman and a director. Mr.
Stein IV is president of S. G. & P.
Stein Furniture Company and a direc­
tor of Grain Processing Corporation.
Mr. Stein III will continue as an ac­
tive director.

Named Director at Jesup
Herbert Schares has been elected to
the board of the Farmers State Bank
of Jesup. He is a former farmer and
has been in the retail grocery business
for 12 years.

markets (“Shop ’N Teller”) and the
24-hour “Anytime Teller” service was
expanded to six additional locations in­
cluding the Des Moines Municipal Air­
port.
Automatic teller machines are lo­
cated in Adel, Davenport, Grinnell and
three locations in Des Moines.
The point of sale terminals are lo­
cated in Cedar Rapids, Waukee, Des
Moines (5 locations), Indianola, Jef­
ferson (2 locations), Marshalltown
(4 locations), Perry and Vinton.

Mason City Bank Promotions
Phyllis Groh was named assistant
vice president of the United Home
Bank and Trust Co., Mason City. Two
new officers elected are Dolores Mc­
Laughlin, assistant operations officer
and Gary Widdel, computer sales of­
ficer.
Allen D. Patton, president of Metalcraft, Inc., and a bank director since
January of 1957, was elected an advi­
sory director. J. Merrill Anderson,
former president of the Iowa Farm Bu­
reau and now president of Central Na­
tional Bancshares, Des Moines, was
elected to the board succeeding B. C.
Grangaard, chairman of Central Na­
tional Bancshares and chairman and
chief executive officer of Central Na­
tional Bank and Trust Company, Des
Moines.
Son Succeeds Father
As Chairman at Muscatine
S. G. Stein IV has been elected
N orthw estern

Ban ker, March


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

Promotions at Iowa City
Iowa State Bank & Trust Company,
Iowa City, has announced the follow­
ing promotions: John A. Krieger from
assistant vice president to vice presi­

dent, Harry E. Bigger from assistant!
cashier to assistant vice president and
Nancy Hormel to assistant cashier. %

Davenport Banker Named
Outstanding Young Iowan
Larry Makoben, vice president of*
the correspondent banking department,
Northwest Bank & Trust Company.
Davenport, has been named an “Out­
standing Young Iowan” by the Betten­
dorf Jaycees. Mr. Makoben, 35, is a
graduate of the University of Wiscon­
sin’s Graduate School of Banking and*
the Agricultural Credit School at Towa
State University, Ames.
Citizens National, Boone,
Promotes Two Officers
Merle Hove has been elected vice*
president and James Niemants assis­
tant cashier of The Citizens National
Bank, Boone. Mr. Hove, who will
continue as agricultural representative,
joined the bank in August of 1963.

Largest Banks in Iowa
and loan figures for Iowa banks reporting deposits of $50 million or
DEPOSIT
more at year-end are shown in the chart below. Comparative figures for a
year ago are also featured.
December 31, 1974 v
December 31, 1975
Deposits Loans
Deposits Loans L
1. Iowa-Des Moines Nat’l B a n k ........................... .... $442,166 .$265,187 ..... .... $375,724 $256,308
97,239 .... .... 262.059
97,523 „
2. Central Nat’l Bk. & Tr. Co., Des Moines .... .... 271.161
116,510
131,707 ..... .... 226,926
3. Davenport Bk. & Tr................... ........................... .... 255.172
106,691 ^
99.790 .... .... 188,223
4. Bankers Tr. Co., Des Moines ............................ .... 207,438
123,909
123,802 ......... 200,727
5. Merchants Nat’l. Cedar Rapids ...................... .... 203,288
89,116
98.955 ..... .... 148,107
6. Security Nat’l, Sioux City ......................... ....... .... 158,356
60,945y
81,034 ..... ....
93,159
7. Toy Nat’l, Sioux City ......................................... .... 118,788
49,950.
50.986 ..... .... 100,204
8. American Tr. & Sav., Dubuque ................... . .... 114,906
52,952
59.326 ......... 106,819
9. Nat’l Bank of Waterloo .................................... ..... 111,781
98,929
59.020 .... ....
61,628
10. First Nat’l.. Sioux City .................................... ..... 109,452
51,316
55,876 .... ....
84,195
11. First Nat’].. Dubuque ............................... ......... .... 101,474
53,839 .... ....
88,248
46,955 V,
97,743
12. Dubuque Bk. & Tr.....................................................
38,981
96,180
57,104 .... ....
69,693
13. Valley Nat’l Bank. Des Moines ..................... ....
47,142
60,144 .... ....
74,456
93,586
14. N.W. Nat’l Bank, Sioux City ...............................
86,952
67,694
38.512* «
39.077 .... ....
15. Waterloo Sav. Bk.................................................. .....
29,614-*
82,922
36,422 ..........
72,540
16. Peoples Bank, Cedar R ap id s.................................
44,514
68,660
49,885 .... ....
81,025
17. First Nat’l, Iowa City ........................................ .....
69.568
46,349 4
76.906
49,215 .... ....
18. Council Bluffs Sav. Bank ............................... .....
45,800
70,400
74,961
51,538 .... ....
19. First Nat’l Bank, Mason C ity ...............................
72.400
39,606 .... ....
65,348
38,513 X
20. Union Bank and Tr., O ttum wa....................... .....
55,711
34,698
37.517 ..... .....
21. Security Savings Bank, M arshalltown........ ...... 62,164
53,205
35,629
61,973
38,273 .... ....
22. Iowa State Bk. & Tr.. Iowa City .................. .....
60,257
37,186*
40.178 .... ....
60.963
23. United Home Bank. Mason City .................. .....
40,3684
60.830
41,712 .... ....
57,283
24. First Nat’l Bank, Muscatine ............... ........... .....
34,070
39,775 .... .....
53,833
59,831
25. First Nat’l. Fort D o d g e ............................................
31,04*1 4
36,272 .... ....
44,994
26. First NatT Bank, < linton ............................... ...... 59,809
33.826 .... ....
53,985
31,945
59,522
27. Capital City St. Bk.. Des M o in es.................. ......
37,543 *
56,086
38,755 .... ....
28. First Nat’l. Council Bluffs ............................... ...... 59,129
56,449
28,214 .... .....
27,185
29. Central St. Bk.. Muscatine ............................. ...... 59,136
50,121
27,639
31,748 .... .....
30. Monticello St. Bk. ....................... ..................... ...... 57,204
49.325
28,527%
37,067 .... .....
56,103
31. Union Tr. & Sav., Fort D o d g e ...................... . ......
23,626 .... .....
43,566
19,338-*
...... 55,513
32. Peoples Bank, Waterloo ............
28,132 .... .....
46,803
26,095
53,269
33. Citizens First Nat’L. Storm Lake .................. .....
44,809
30.593 .........
28,136 1
34. First Nat’l., B u rlin g to n ..................................... ...... 52.919
31,559
31.375 .........
48,225
52,784
35. Jasper Co. Sav. Bk.. Newton ......................... ......
27,940 *
28,297 ..........
44,453
36. State Bk. & Tr.. Council B lu ffs................... . .....
50,380

Io w a N e w s

Automated Clearing House

Superintendent Files EFT Report
n P O M Huston, Iowa superintendent
•*- of banking, has filed a 30-page re­
port on Electronic Funds Transfer
(EFT) to the Iowa General Assembly
pursuant to Senate File 536. Mr. Hus­
ton’s findings and recommendations in­
clude areas where he believes changes
can be beneficial. Here are his com­
ments:
I. Statew ide E F T S Term inals

Section 8 of Senate File 536 pro­
vides in pertinent part, “Any state
^bank may utilize a satellite facility at
any location within this state, and at
any other location permitted by appli­
cable law. A satellite facility author­
ized by sections (8) through (12) of
this Act shall not be subject to the re­
strictions on location or number set
'forth in section 524.1202 of the Code,
and shall not require the prior ap­
proval of the superintendent, except
to the extent required by section (10)
of this Act.”
The findings during the experimen­
tal period show that none of the 27
banks approved to operate experimen­
ta l satellite facilities either requested
or received approval for the establish­
ment of such terminals outside of the
metropolitan complex in which the ap­
plicant bank was located or a town in
which the applicant bank maintained
a “bank office” as defined in section
*524.1201 of the Code. In our opinion,
the establishment of such EFT satellite
facilities over the next two years com­
mencing July 1, 1976, should be
limited to locating such terminals in
the same metropolitan complex in
»which the bank establishing the termi­
nals is situated and in towns in which
the bank is operating bank offices. This
change in the law should permit a
more orderly development of EFT in
Iowa, especially in the smaller commu­
nities, and give all banks additional
"time to determine the practicality of
EFT in their communities. On the
other hand, those banks that elect to
establish satellite facilities in their
cities or towns open the door to all
other banks as a result of the manda­
to ry sharing requirements in Senate
File 536. We do not necessarily be­
lieve that the present language in the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

95

would be required to shut down. This
concerns us because of the effect such
an interruption could have on the cus­
tomers of those banks who have al­
ready become accustomed to using
EFT terminals during the experimental
period.
We are also of the opinion that ITS
or any other “switch” utilized by an
Iowa financial institution should be de­
fined and licensed so that some control
can be exercised over the activities of
such facilities.
In addition to the above, we believe
that the superintendent of banking
should have specific statutory authority
to approve or deny agreements be­
tween state bank and ITS or any other
switch that might be developed. We
have reviewed our present law and do
not find such authority and question
whether or not we would have the au­
thority to require such approval by
regulation. To resolve this question, we
suggest that section 524.218(2) of the
Code be amended to read as follows:
“2. Any contract, to which a state
bank is a party, for the perfor­
mance of bank services of a type
referred to in either section
524.804 or 524.803, shall be ap­
proved by the superintendent pri­
or to its execution.”

law would be detrimental to any bank
or its customers, but we cannot predict
at this time how all banks will react to
such permissive legislation and have
attempted to propose a change which
will allow for an orderly development
and further monitoring of EFT pro­
gress.
II. M andatory Sharing o f Term inals
Section 10 of Senate File 536 pro­
vides in pertinent part, “ 1. The satel­
lite facility is available for use, on a
nondiscriminatory basis, by any Iowa
bank and by all customers designated
by any bank which uses the satellite
facility.”
We refer to the nondiscriminate use
of electronic satellite facilities as “man­
datory sharing' and to us this means
that all such remote EFT terminals
must be able to complete a transaction
entered by any Iowa bank customer
who has been issued an acceptable
EFT card beginning July 1, 1976. It
does not mean that an Iowa bank
III. Crossing State Lines
whose customers may use an EFT ter­
minal established by another bank
Section 8 of Senate File 536 pro­
must have an arrangement or contract vides in pertinent part, “Any state
with that other bank. We are of the bank may utilize a satellite facility at
opinion that mandatory sharing of any location within this state, and at
electronic satellite facilities as invi- any other location perm itted by appli­
sioned cannot be accomplished nondis- cable law .” We believe this language
criminately without a “central switch” would enable an Iowa chartered bank
through which all electronic transac­ to cross into any other state for the
tions can be channeled to and from purpose of establishing an EFT satel­
banks. While the proposed central lite facility provided that state did not
switch, referred to as ITS (Towa bar the Iowa banks entry.
Transfer System) is being developed
Section 9 of Senate File 536 states,
and reportedly will be operational by “A satellite facility, located so as to be
July 1, 1976, we are concerned about generally accessible to persons other
what would happen in the event ITS than employees of a bank or an affili­
or some similar central switch is not ate of a bank, may not be utilized with­
in fact ready or able to accommodate in this state by a bank other than an
all the banks that may require such Iowa bank, except that any other bank
service by July 1, 1976. The develop­ m ay utilize a satellite facility which is
ment of such a central switch seems so located with the consent o f an Iow a
to us to represent a monumental un­ bank which is concurrently utilizing
dertaking that should be given ade­ the sam e satellite facility.” We see
quate time to develop properly. There­ some danger in this language in that
fore, we are suggesting that manda­ it seems to place entry into the Iowa
tory sharing be delayed for approxi­ EFT market by out-of-state banks in
mately eight months to ensure orderly the hands of individual Iowa banks.
development of the switch. As we view In studying this matter we have con­
the present law, in the event manda­ cluded that Iowa banks should be of­
tory sharing is not possible by July 1, fered more protection than the present
1976, all electronic satellite terminals law provides and suggest that considN orthw estern

B a n k e r, M arch

1976

96

Io w a N e w s

eration be given to the following pro­
posals:
1) No out-of-state bank be allowed
to establish electronic satellite facilities
in Iowa.
2) All EFT terminals established by
banks in Iowa be controlled by an
Iowa bank. (This will enable bank reg­
ulators to control such terminals
through the supervised bank.)
3) Customers of out-of-state banks
be allowed to use terminals in Iowa es­
tablished by Iowa banks provided the
out-of-state bank was linked with a
switch capable of transmitting any
electronic transaction from the Iowa
terminal to the out-of-state bank.
4) No Iowa bank be allowed to es­
tablish electronic satellite facilities in
other states at this time.
5) No deposits could be credited to
an out-of-state bank through an Iowa
based electronic satellite terminal.
Our proposals in this area are in­
tended to insure, once again, the or­
derly development of electronic bank­
ing. We have rejected the permissive
language in the present law primarily
because we believe that larger out-ofstate banks might be able to persuade
an Iowa bank into granting consent for
it to use one or more of the Iowa
bank’s EFT terminals. Once such con­
sent was received the out-of-state
bank, through mandatory sharing,
would gain access to all terminals lo­
cated in Iowa. We have rejected the
straight reciprocity approach because
of the potential adverse effects large
out-of-state banks could have on the
Iowa deposit market. While Iowa de­
positors might benefit initially from
outside invasion of its deposit market,
it could create problems for some Iowa
banks, savings and loans, and credit
unions, which in the long run would
have adverse effects on other deposi­
tors and the economy of those areas
affected. We would not necessarily be
opposed to allowing reciprocity on a
limited basis and it has been suggested
that we consider such a limitation
which would allow only those banks
situated in the first tier of counties in
neighboring states to establish termi­
nals in the first tier of Towa’s border

ACORN

Sale
Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
For i nf or mat i on wr i t e

Tin; ACORN PRINTING CO.
Oakland, Iowa
N o rthw estern

Banker,

M arçh


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I9 7 é

counties if Iowa banks in border coun­ moved to North Carolina. Mr. McCart, M
ties were given the same privilege in 48, has farmed west of Eagle Grove
for the past 29 years.
'
the neighboring state.
The five proposals we have made
in this section would not allow state
banks to place electronic satellite facil­ Joins Corwith Bank
Richard Halverson has joined the^ ^
ities outside Iowa’s borders at this
Corwith
State Bank as insurance and : N
time, but would allow the customers
farm
representative.
He most recently
of Iowa banks to transact business
was
assistant
manager
of the Arm- *
through an out-of-state EFT terminal
strong
Farmers
Coop.
^
provided such terminal would accept
the customer’s EFT card and provided
further that the laws of the state in Dubuque Bank Elects
twhich the terminal was located would Babka, Tiede Directors
y
permit such usage. Our proposal is
First National Bank of Dubuque has
more restrictive with respect to usage announced the election of Edward A. m
of an Iowa based EFT terminal by a
customer of an out-of-state bank in
that it would limit that customer’s
transactions on an Iowa terminal to
strictly debit transactions. No deposits
would be allowed from an Iowa termi­
nal to an out-of-state bank. Customers
of out-of-state banks would make their
deposits to their bank the same way
that they presently do but the proposal
would not restrict the major purpose
I . A . BAB K A
M . G. TIEDE
for EFT terminals, that being the
elimination of paper in the form of Babka and Milton G. Tiede to its
checks and restoring credibility to the board of directors.
y
check or in this case the debit item.
Mr. Babka is owner and publisher
of the Babka Publishing Company of
Dubuque. Mr. Tiede is general man­
ager of the John Deere Dubuque^
To Head Clear Lake Bank
k.
Ray V. Hewitt recently was elected Works.
president of the Clear Lake Bank and
Trust Company replacing M. A. ArneRolfe State Bank Promotes
son who was named chairman.
For the past two years, Mr. Hewitt Shoemaker and Dixon
Rolfe State Bank has announced the
has served as executive vice president
promotions of Donald E. Shoemaker,+ ^
formerly cashier, to vice president and^
Robert J. Dixon, formerly operations
officer, to cashier.
Mr. Shoemaker joined the bank in ^
1963 from Central Trust and Savings
Bank in Cherokee. He also was associ­
ated with the Livestock National B ank^
in Sioux City. Mr. Dixon is a gradu­
ate of the University of Iowa in Iowa
City.
R. V . H EW ITT

M . A . A RN E S O N

of the Clear Lake Bank. His 20 years
of banking experience includes being
president of the Marine National
Bank. Waukesha, Wise.

Eagle Grove Bank
Elects McCart Director
George McCart recently was named
to the board of directors of Security
Savings Bank, Eagle Grove. He re­
places Dr. Martin Schaeferle who

Waterloo Bank Elects
Molinaro Director
*
Robert J. Molinaro has been elected
to the board of the Peoples Bank and
Trust Company, Waterloo. Mr. Moli- %
naro is executive vice president and
general manager of Warren Transport,
Inc., where he has been employed tor's
25 years. He attended the University v
of Wisconsin, Iowa State Teacher’s,.
College and the Chicago College of
Advanced Traffic,

Iowa News

Alta Bank Names CEO
y James (Jim) R. Johnston, 39, is the
new executive vice president of The
First Trust & Sav­
ings Bank of Alta.
„He comes to Alta
►
from C r e s t o n
w h e r e he had
been cashier of
the Iowa S t a t e
Savings Bank for
the past e i g h t
^years.
*é Ë ml» È tÊ
v M r. Johnston
J. R. J O H N S T O N
Replaces George
Morrow who is taking an extended
i leave of absence for health reasons. He
has been the chief executive officer
„since August of 1955.
> Mr. Johnston, a graduate of Iowa
State University, was associated with
Brenton Banks, Inc., from 1959-68
working his way from an officer trainee
to vice president.

he held at the time of his retirement
in 1965.

Top Executive Changes
At Centerville National
Three major reassignments were an­
nounced at the annual Centerville Na­
tional Bank stockholders meeting.
Robert F. Malmberg, formerly pres­
ident, was elected chairman, trust of­
ficer and a member of the bank dis­
count committee. William H. Griggs,
formerly executive vice president, was
elected president, chief executive offi-

R. M ALM BERG

v Promote 2 at Churdan
First State Bank of Churdan has
promoted Donna Hunt to assistant
vice president and Joyce Clark to as­
sistant cashier.
Helen Leeper Receives
Promotion at Packwood
Helen Leeper recently was pro­
moted to cashier of the Farmers Sav­
ings Bank of Packwood. She joined the
bank in 1969.
^Clinton National Bank
Officer Changes
♦ Clinton National Bank has an­
nounced the following officer changes:
Maurice J. Losey, senior vice presi­
dent and cashier; Roger J. Hill and
‘John E. Wait, assistant vice presidents;
“William A. Venema and Ruth M. Zas(row, assistant cashiers and Donna E.
Schoolman, customer relations officer.
Harold Topliff Orr
* Funeral services were held recently
*for Harold Topliff Orr, retired
Monona banker.
Shortly after his sixteenth birthday
*■ Mr. Orr began working as a bookkeep­
er in the Monona State Bank, which
„his father founded the year he was
v born. He spent is active life at the bank
and its successor, a period of 57 years.
Mr. Orr rose to the offices of teller, as­
sistant cashier, cashier, vice president
and trust officer and president, which

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

W . H . G R IG G S

cer and a director. Robert K. Beck,
previously chairman, will be joining
the Hawkeye Bancorporation board of
directors in April.
The realignment comes after the an­
nounced acquisition intention of Cen­
terville National Bank by Hawkeye
Bancorporation. The transfer is ex­
pected this spring awaiting Federal ap­
proval.
Mr. Malmberg had served as presi­
dent since 1968 and has been with the
bank since 1946. Mr. Griggs came to
the bank last September. He has been
associated with Hawkeye Bancorpora­
tion since October of 1967 with Pella
National Bank and Clay County Na­
tional Bank of Spencer. Prior to join­
ing Hawkeye he was with the First Na­
tional Bank of Omaha.
Mr. Beck had served as the bank’s
chairman since 1968.

First State of Mapleton
Holds Open House
The First State Bank of Mapleton
held an open house January 31 for the
public to view its newly remodeled fa­
cilities. On February 1 the bank held
an open house for area bankers and
associates followed by cocktails and a
buffet at the Willow Vale Country
Club.
Named at La Crosse, Wis.
Ralph Brennan, president of J. F.
Brennan Company and River Steel,

97

Inc., has been named to the board of
the National Bank of Wisconsin in La
Crosse, according to Lyle W. Ander­
son, bank president.
J. F. Brennan Company began as
a partnership under the trade style
Brennan Brothers at Lansing, la. In
1958 it was reorganized as the J. F.
Brennan Company.
Mr. Anderson also announced the
promotion of John F. Lyche to per­
sonal services officer.

Saeger Named Cashier
Of Orange City Bank
Bill Saeger has been promoted to
cashier of the Sioux County State
Bank, Orange City, after an associa­
tion of three years. He previously was
assistant cashier.
First National, Oelwein,
Names Top Executives
Louis H. Mulder has been named
president of The First National Bank
of Oelwein. He previously served as
chairman.
Other promotions announced in­
clude Harry E. Young, chairman and
Robert J. Arthaud, executive vice pres­
ident and cashier.
Elected at New Hampton
Wendal Liddle, owner of Liddle’s
Super Valu, has been named a director
of the First National Bank of New
Hampton, according to Merrill Shaw,
president.
First State of Audubon
Elects New Officers
New officers have been elected by
the First State Bank of Audubon.
A. A. Kruse, who has been execu­
tive vice president for many years, was
named president. He is succeeded as
executive vice president and chief
executive officer by F. James Boyd
who has been vice president.
Stephen Garst and John Chrystal,
both of Coon Rapids, who recently
purchased controlling interest in the
bank, have been elected vice presi­
dents. Gene Karstens was elected assis­
tant vice president and cashier.
Sioux Center Bank
Announces Promotions
The American State Bank of Sioux
Center has announced two promotions.
They are Cal Cleveringa to assistant
vice president and Jan Van Meeteren
to assistant cashier.
N orthw estern

Banker,

March

1976

98

Io w a N e w s

Discuss Financial Reform at
IBA Group 1 and 11 Meetings
By MALCOLM FREELAND
Publisher

ECAUSE financial reform in 1976
B
appears inevitable, the need for a
uniform approach by the banking in­
dustry is vital to achieving equity.
This was the suggestion made last
month at Groups 1 and 11 of the Iowa
Bankers Association by IBA President
Dale DeKoster and IBA Executive Vice
President Neil Milner. Special concern
was expressed over the Financial Insti­
tutions Act, passed by the Senate, and
the FINE study, now being conducted
by the House Committee on Banking,
Currency and Housing. Known as the
Financial Institutions and the Nation’s
Economy study, it covers elimination of
Regulation Q after five years, payment
of interest on demand deposits within
five years, permitting checking ac­
counts for S & Ls, credit unions and
mutual savings banks, branching across
state lines, charter conversions of fed­
eral S & Ls to national banks, a single
regulatory agency, consumer lending by
thrift institutions, reserve requirement
for S & Ls, and a variety of housing in­
centives. President DeKoster described
the differences between FIA and FINE.
The two group meetings drew excel­
lent registrations. Group 1 in Sioux
City recorded a total of 790. Group 11
in Burlington registered 690.
Officers of Group I are: Chairman,
Marvin G. Hansen, president, Early
Savings Bank, and secretary, Cliff
Young, executive vice president, Onawa State Bank. Mr. Young is newlyelected. Group 11 officers continue as

follows: Chairman, Robert G. Oatley,
assistant vice president, Fort Madison
Bank & Trust Company, and secretary,
Robert Laughrige, vice president,
Union Bank and Trust Company, Ot­
tumwa.
Thomas H. Huston, Iowa superin­
tendent of banking, told delegates at­
tending both groups that there are no
state-chartered banks on the “problem
list” at present. He added that although
he was not releasing specific figures on
holdings of New York bonds by Iowa
banks, he could assure the public that
the total amount was comparatively
small. Mr. Huston concluded by de­
scribing highlights of his recent EFT re­
port to the Iowa legislature. His report
recommends that all Iowa banks restrict
EFT terminals to their respective town
or complex for the next two years. A
more detailed article on his report ap­
pears in this issue.
Dr. Robert R. Spitzer, coordinator,
Office of Food for Peace, Department
of State, Washington, D.C., and Dr.
Benjamin Rogge, professor of political
economy, Wabash College, Crawfordsville, Ind., were featured speakers at
Sioux City.
GDr. Spitzer emphasized the impor­
tance of agricultural exports, which last
year amounted to $22.5 billion. World­
wide, there are 10 million tons of re­
lief food. A total of six million tons
is provided by the United States through
the agency headed by Dr. Spitzer.
Dr. Rogge predicted that 1977

LUNCHEON SPEAKER at the Group I I
m eeting in B urlington was Timothy Hays,Mayor of W hoopup, Mo. in describing liFe
in Whoopup, he said “ our town is un­
listed on maps to make it more difficuft:
fo r the CIA to find us.”

would be a very good year — but by
1978, we will be back to double digits
inflation. He suggested that we wilK
look back on eight and nine % interest
rates as “the golden years.” He believed
that we will see rates of 12 to 15% in
the years ahead. He sees even greater
government involvement with the re­
sult that in 10 years America will be
similar to the England of today.
Burlington area bankers heard Ar-1
thur Davis, IBA general counsel, de­
scribe the duties performed for the As«
sociation by its general counsel, which
includes entering cases like the Small
vs Huston case as amicus curiae. A
current report was also made on US*
Savings Bonds. At year-end, Iowa hacb
a total of $4,414,000,000, or $536 per
capita. Only one other state leads Iowa.
Nebraska has $571 per capita. Nation-

APPEARING on the Group 11 program at B urlington were: Robert G. Oatley, Gp. 11 chm n. and v.p. & cash., Fort Madison B&T;
Robert J. Laughrige, Gp. 11 secy.-treas. and sr. v.p., Union B&T, O ttum w a; Neil Milner, exec. v.p. of the IBA; A. Arthur Davis, D ei
Moines, IBA general counsel; Tom Huston, Iowa superintendent o f banking; Dale K. DeKoster, pres, of the IBA and pres., W aterloo
Savings Bank, and C. Robert Brenton, v.p. of th e IBA and pres., B renton Banks, Inc., Des Moines.
o rFRASER
th w e s tern B an ker, March
Digitized Nfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

Io w a N e w s

99

Photos Taken at Sioux City

LEFT — Terry M. Martin, v.p., The M erchants N at’ l Bk.r Cedar Rapids; Orrin A. Wilson, 2nd v.p., The N orthern Tr. Co., Chicago;
vJoAnn Kuehl, v.p , and M. J. Kuehl, pres., Sec. St. Bk., Lake Park, and Richard C. Storlie, correspondent bk. d e p t, Northwestern
^ N a t’ l Bk., M inneapolis. RIGHT — Joe Valenti, v.p., Drovers N a t'l Bk., Chicago; Ed Lenaghan, exec, v.p., Iowa Bankers Ins. & Ser­
vices, Des Moines, Rudy Dybeck, v.p., Des Moines office of the Fed, and Bernard Miller, v.p., Drovers N a t'l Bk., Chicago.

Center, and Mr. and Mrs. Max Kiernan, pres., Alton Sav. Bk., Alton. RIGHT —
merman, sr. v.p., N.W. N at’ l. Bk., Sioux Falls.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ed Newell, v.p., M itchell N a t’ l. Bk., and Bill Hei-

N orthw estern

Banker, M arch

1976

100

Io w a N e w s

LEFT — Bill Hamilton, corresp. bk. off. (le ft) and Ken Wales, v.p. (rig h t), both o f First N a t’ l. Bk., M inneapolis, jo in Del Olson, v.p.,
The Omaha N a t’ l. Bk. RIGHT — Mr. and Mrs. Jerry Just, v.p., N.W. N a t’ l. Bk.. Sioux City, and Mr. and Mrs. John Christensen, pres.,
Farmers N a t’l. Bk., Aurelia.

wide, 1975 showed a total of $7 billion
in bond sales with total outstanding of
$69 billion. Group 11 will hold its an­
nual golf outing at Fairfield June 9.

BMA Plans Conference
Authoritative speakers from both
the banking and business fields will
head up the Bank Marketing Associa­
tion’s 9th Annual Marketing Research
Conference, scheduled for May 2-5 at
the Hyatt Regency Chicago in Chicago.
This year’s program will be geared
towards the needs of both new and ex­
perienced bank marketing researchers,
with special sessions designed for both.
More than 40 program speakers will
discuss their approaches to practical,
real-life problem situations during 25
program sessions.
Subjects such as attitudinal segmen­
tation, advertising testing, focus group
usage and effective trust prospecting
will be some of the major areas probed
at the conference. Also featured this
year will be a special seven-hour “Ba­
sics of Bank Marketing Research
Course” taught by noted researchers
Anthony Diina of Erie County Savings
Bank, Erie, PA, and Kelley Clowe of
First National Bank of Denver.
CME Lists New Contracts
For Live Cattle Futures
The Chicago Mercantile Exchange,
pending approval of the Commodity
Futures Trading Commission, was to
begin listing new contracts for live cat­
tle futures trading effective February
23, Everette B. Harris, president, an­
nounced.
C.M.E. rules require that each live
cattle contract shall be for choice grade
live steers as defined by the U.S. De­
partment of Agriculture. Accordingly,
N o r th w e s te r n B an ke r, M arch

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

(jin t registrants included, trom ien: Mr. ana Mrs. jacs wimeimy, pres., c o m m u ­
n ity St. Bk., W hiting; Larry Lane, Bank of Niobrara; Hermine Leffler and husband, Chuck,
v.p., First N a t'l. Bk., Lincoln; Margaret Stoneman; Dick Wagner, pres., State Sav. Bk*,
Hornick, and Lyle Stoneman, v.p., First N a t’ l. Bk., Lincoln.
ukuuf

PICTURED at th e B urlington m eeting were Mike Byrne, corr. bkg. off., American Natl.
B&T, Chicago, and his wife, Cristina, and Linda and Charles E. Walsh, a.v.p., Farmers
& M erchants B&T, Burlington.

the new contracts will conform to the
USDA’s new beef grade standards,
which are also scheduled for adoption
February 23.
Existing live cattle contracts for the

4

delivery months of April, June, Au-"
gust, October, and December, 1976,
will be traded concurrently with ne\y ,
contracts but will be for liquidation on­
ly.
*

Io w a N e w s

Employees Learn from Mock Robbery
URING a bizarre, late-afternoon
D
holdup last month at the Security
Savings Bank in Eagle Grove, three

*r >

^.robbers wearing assorted disguises in­
vaded the bank and held 13 employees
at bay in the main lobby. While two
of them held guns on the bank staff,
the third gang member quickly went
from one teller window to another
scooping up available money.
There was one catch— it was bogus
money! So were the bandits, although
»everything else was real. Although the
employees knew a mock holdup was
to be staged that day they didn’t know
the exact time, the manner in which
>it would be staged, the number of
“robbers” to be involved nor what they
would
look like. Thomas F. Anderson,
>
assistant vice president and security of­
ficer of Security Savings Bank, had ar­
ranged the exercise, with approval of
the bank management, in cooperation
y with Eagle Grove Police Chief Curt
Green and his staff.
f Bank officials and police were satis­
fied with the job the police did as their
part—not only staging the holdup but
using proper interrogation procedures
afterward— and the job the staff did
in compiling their description reports
within minutes after the “holdup” was
concluded.

holdup (pictured here from a Polaroid
snap taken after their “arrest”) had
on such disguises as wigs, a rubber
mask and women’s clothing. They
were in the bank nearly 10 minutes,
using actual, unloaded weapons. Since

Em ployees A lerted

It all started a month earlier when
Mr. Anderson, as part of the bank’s
^security procedures, conducted train­
ing sessions for the staff on what to do
^during and immediately following such
a robbery. Employees were aware a
robbery would take place but didn’t
know until the actual day when it
>*would take place. The staff was told
*■ approximately when it would happen
,so there would not be any unfortunate
incidents during the “dry run,” such
as a staffer becoming suddenly ill or
one unexpectedly becoming violent.
> The mock holdup took place after
hours in late afternoon to assure that
no customers would be present. A uni­
formed police officer stood guard at
* both front and rear doors of the bank
in the event any passerby should be­
come alarmed. One person across the
street saw the disguised bandits run for
their car, but also saw the nearby po­
lice car and correctly determined that
things were under control.
The three police perpetrating the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

UNSAVORY would be the usual descrip­
tio n fo r characters like th is who recently
“ held up” th e Security Savings Bank at
Eagle Grove. The three men pictured were
city police officers who to o k pa rt in a
planned robbery aimed at testing re­
actions and descriptive a b ility o f the bank
staff.

101

ence between a revolver and an auto­
matic weapon.
Mr. Anderson said bank officials
“feel this drill has made our staff much
more alert in case a real robbery oc­
curs.”

Fort Madison Bank & Trust
Announces 5 Promotions
Fort Madison Bank & Trust Co. has
announced the following staff changes:
Charles J. Walker,
e x e cu tiv e vice
president, Robert
G. Oatley, vice
p re s id e n t
and
cashier; Louis W.
Fowler, vice pres­
ident and auditor;
Larry L. Hum­
phries, vice presi­
dent and manager
of the instalment
loan department and Dale W. Krogmeier, assistant vice president and
manager of the River Hills office.
Mr. Walker joined the bank in
March of 1970 and had been senior
loan officer; Mr. Oatley came to the

it was after-hours all genuine money
was locked in the bank vault and only
fake money was left in the teller cages.
Description Procedure

After the trio ran from the bank, the
employees were given description
sheets to complete. These were then
reviewed after the “robbers” were
brought back in so employees could
compare their descriptions with what
the men actually wore. Two women
employees spotted the one dressed in
women's garb as an impersonator. The
staff descriptions were varied, but of­
ficials were generally pleased with the
results, especially with several employ­
ees whose descriptions fit very closely
with what the trio wore.
One major point later stressed by
police officers was the necessity for
having as good a description as possi­
ble of the weapons used. This was one
point where employee descriptions
could have been better. The actual
weapons were then displayed to the
staff and they were shown the differ­

L. t .

HUM PHRIES

D. W . KRO GM EIER

bank as an assistant vice president in
September of 1971 and most recently
was serving as a loan officer. Mr.
Fowler joined the bank in 1946 and
Mr. Humphries in 1971.

Appointed at Emerson
Emerson State Bank has appointed
Lieselotte Curtis assistant cashier.
Northw estern

B an ker, March

1976

102

Io w a N e w s

Elected at Muscatine
First National Bank of Muscatine
has elected Dorothy Drake assistant
cashier and Mary Jane Crossley man­
ager of the bank’s downtown drive-in
facility.
Decorah Bank Advances 4
Security Bank and Trust Company,
Decorah, has promoted Gerald Gipp
to vice president and Helen Olson,
Mary Stevenson and Virginia Omdahl
to assistant cashiers. Mr. Gipp had
been assistant vice president in charge
of instalment loans since June of 1975
and will continue as the bank’s instal­
ment loan officer.
DeWitt Bank and Trust
Names Billhorn Cashier
Jon Billhorn was named cashier of
the DeWitt Bank and Trust Company.
He began his career at Farmers-Merchants Savings Bank of Manchester,
his home town. He joined the newlyorganized First Central State Bank in
June of 1967.

ence rooms and a community room.
Bank depository, drive-in service and
ample parking space will be featured.

To Head Vinton Bank
Chas W. (Bill) Barron recently was
elected president of the State Bank of
Vinton succeed­
ing J o h n
T.
Strawn, Jr., who
was elected chair­
man. Mr. Strawn,
president s i n c e
1972, succeeds
Judge W. Tobin
who stepped down
from the position
of chairman but
C. W . B AR R O N
will remain a di­
rector. Judge Tobin served as the
bank’s president and chairman since
1935. He retired as president in 1972.
Other officers elected are: Barry J.

North Iowa State Bank
Promotes Paul to Cashier
North Iowa State Bank in Belmond
has promoted Curtis A. Paul from
cashier to vice president.
Elected at Dubuque
Holmes Foster has been elected to
the board of Key City Bank and Trust
Co., Dubuque. He is senior vice presi­
dent and secretary of Banks of Iowa,
Inc., and a former deputy superin­
tendent of banking for Iowa.
Sabula Banker Retires
Otto J. Mohr, assistant cashier and
manager of the Teeds Grove Savings
Bank at Sabula, recently retired after
serving the community for the past 14
years. Mr. Mohr farmed in the area
before joining the bank in 1962. He
also had served on the bank’s board
for over 20 years.
Construction Begins on New
Raccoon Valley State Bank
Construction has begun on the new
Raccoon Valley State Bank building
in Adel, according to Leland Good­
rich. He said it will be the first Iowa
commercial solar heated, solar cooled
building to be constructed in Iowa.
The structure will be made of brick,
glass and copper. The interior will in­
clude several private offices, confer­
o r tFRASER
h w e s te r n B a n k e r, M arch
DigitizedNfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

J. T. S T R A W N , JR.

J. W . TO B IN

Lefstad from assistant cashier to cash­
ier, Rosemary J. Boisen to assistant
cashier and Randall J. Mickelson to as­
sistant cashier and farm representative.

Paulson, Tanner Named
At Northwood State
Kary Paulson has been elected vice
president, cashier and director of the
Northwood State Bank. He joined the
staff in 1972 after a three year associ­
ation with the Iowa Department of
Banking. He is a graduate of Mankato
State College.
James Tanner has been appointed
assistant cashier.
Staff Changes at Davenport
Staff changes at Davenport Bank &
Trust include: Jane A. Faulkenau,
Gerald H. Venes, Robert J. Hartman,
Jr., and David D. Kling, assistant vice
presidents and Timothy J. Foley, An­
thony E. Hughes, Curtis N. Johnson,
Betty M. Richards and Russell W.
Scott, assistant cashiers.

Parkersburg Promotion
Norm Gerdes has been named a di-^
rector and secretary of the board at
Parkersburg State Bank. Mr. Gerdes, *|
who is vice president, joined the bank
in April of 1975.
Elected at Marion
Wayne A. Kinney has been elected
a director of The First National Bank
of Marion. He is president and trea­
surer of Modern Piping, Inc., Cedar
Rapids; vice president of Mary Mop- >
pets of Cedar Rapids, Inc., and presi­
dent, secretary and treasurer of Okff
Capitol Motors, Ltd., Iowa City.
Joins Marshalltown Bank
Charles Juhl has joined Fidelity
Bank of Marshalltown, according to4
Tom Smith, president. Mr. Juhl is a
December, 1975, economics and po­
litical science graduate of the Univer­
sity of Northern Iowa, Cedar Falls.
Mahaska State, Oskaloosa,
Reports Staff Changes
Rex Blom and John Pothoven have
been elected to the board of directors
of Mahaska State
H E
Bank, Oskaloosa.
Promotions an­
nounced include:
John
Pothoven,«
■ a i | mä$ü Ü
v i c e president;
Evelyn Vos, as­
sistant trust offi­
cer; Gladys All- y
sup, Calvin V a n H
wm m Êlm
Ee and Jim Goer- A
J. P O T H O V E N
ing, assistant cash­
iers, and Hester Whitlach, controller.
Mr. Pothoven recently joined the
bank from Merchants National Bank
of Cedar Rapids where he was in the
correspondent banking department.
From July, 1971, to October, 1973,*
he was farm representative for the
Iowa Falls State Bank.

IWKKKKm

pr iiife

Promoted at Bloomfield
Dr. Harry D. McCreedy, veterinari­
an, has been elected to the board of
the David County Savings Bank, 41
Bloomfield.
Promotions announced include:
Marne E. Bond to vice president; Dor- " 1
othy Dixon to cashier; Beatrice Ryan
and Doran Ryan to assistant cashiersand Lois Irvin to public relations of­
ficer.

Io w a N e w s

Emmetsburg Bank Names
Çlasen Vice President
J. F. Spies, president of the Iowa
Trust & Savings Bank in Emmetsburg,
has announced the
romotion of Ruth
„Clasen from as­
sistant vice presi­
dent to vice presi­
dent. Her duties
are in the admini­
strative and cus'omers s e r v i c e
_
*areas and she also
Randles the bond
R clasen
p o r t f o l i o . Ms.
Clasen joined the bank in 1936 and
was first elected an officer in 1960.
rjoins Ottumwa Bank
Gary L. Larson, a native of Storm
Lake, has been named an assistant
trust officer of Union Bank and Trust
Company of Ottumwa. He earned his
bachelor’s degree and master’s degree
rin business administration from the
^University of Iowa, Iowa City.
^Bettendorf Bank Names
Young Vice President
Donald B. Young has been elected
vice president and trust officer of Bet­
tendorf Bank, Mr. Young was gradu­
ated from the University of Iowa, Iowa
City, in 1958, and received his Juris
Doctorate degree from the University
of Illinois in 1961. He comes to the
bank from Ottumwa.
Clinton Bank Adds Director
* Charles W. Harrington has been
*elected to the board of the First Na­
tional Bank of Clinton. He is a farmer
residing in DeWitt.
Newly elected officers are Jean M.
Herrity and Charles Shaw, assistant
* cashiers. The following officers changes
♦- have been announced: Kenneth R. Kra­
mer and Madonna Pinter, assistant vice
presidents and William E. Zickau, trust
officer.

Officer Elections at Crestón
A Lee McNichols has been named
* cashier of the Iowa State Savings
vBank, Crestón. He has been with the
bank since May of 1970 and is a grad­
uate of Northwest Missouri State Uni­
versity in Maryville, Mo.
Jean Trussell has been appointed asr sistant cashier. She has been with the
bank since September of 1969 and has
v24 years of previous experience in
banks in Colorado, Kansas, Illinois
and Iowa.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

R ose D ooley H onored

Rose Dooley, chm n. & treas. o f Iowa
Bankers Insurance & Services, Inc., was
honored last: m onth on the occasion of
her 47th anniversary w ith the Iowa Bank­
ers Association. Miss Dooley joined the
IBA in 1929, w orking continuously w ith
the organization since th a t date. She was
presented w ith a bouquet of 47 red roses
by her associates, and also was the guest
of honor at a special luncheon fo r the
staff.

The bank also announced the elec­
tion of Robert Gordon to the board of
directors.

2 Retire at Brooklyn
C. W. Fowler, director since 1924,
and C. C. Ecklund, director since
1938, have retired from their positions
at the Poweshiek County Savings Bank
of Brooklyn. Mr. Fowler had con­
tinued as chairman since his retirement
from active employment in January of
1975.
New directors elected are Glen J.
Kriegel and Gerald A. Read. Both are
area farmers.
Appointed at Oskaloosa
The appointment of Dr. Ronald L.
Goldsmith as a new member of the
board of Iowa Trust and Savings Bank,
Oskaloosa, has been announced by H.
W. Sauter, bank president. Mr. Gold­
smith has been a partner in Mahaska
Veterinary Clinic since 1959.
Appointed at Bettendorf
Joyce Vermost has been appointed
assistant cashier at Security State Trust
& Savings Bank in Bettendorf.
First Federal S&L’s IM S
Service Expands Further
The Money Service, originated and
trademarked by TMS Corporation of
the Americas, Lincoln, Nebr., a sub­
sidiary of First Federal Savings & Loan
of that city, announces further expan­
sion of its electronic funds transfer sys­

103

tem in Illinois, Ohio, Maryland, Flor­
ida, Nebraska and Iowa.
On November 10, customers of
First Federal S&L, Aurora, 111., with
TMS accounts were able to begin us­
ing their cards at National Tea’s two
food stores in Aurora. The firm also
has 185 stores in the Chicago metro­
politan area. Also, several financial in­
stitutions in the Chicago area have
shown considerable interest since the
new service became available.
Broadview S&L, Cleveland, O., is
now offering TMS in 55 Pick-N-Pay
supermarkets, the largest supermarket
chain in the Cleveland area. The sys­
tem utilizes the new IBM 3600 remote
terminal together with a TMS magnetic
stripe card.
Baltimore Federal S&L, Baltimore,
Md., has signed a TMS license and will
begin offering TMS there this year. It
is a $620 million asset insitution, with
15 branches. American Federal S&L,
dealer for TMS in Washington, D. C.,
Maryland, and part of Virginia, signed
Baltimore Federal. American Federal
began using the TMS service for its
customers last July.
Florida
Money Service,
Inc.,
Gainesville, Fla., will be marketing and
licensing TMS to all financial institu­
tions in Florida.
In Nebraska, TMS cards now are
honored at Ben Simons clothing stores
in its two stores located in Lincoln,
and the cards also may now be used
at seven Richman Gordman depart­
ment stores across the state—five in
Omaha, one in Lincoln and one in
Grand Island. The 10 Richman Gord­
man shoe stores in Nebraska will soon
be honoring TMS cards.
First Federal S&L of Council Bluffs,
la., reports an increase of 13.2% in its
new accounts in the first two weeks
since opening two remote service units.
TMS headquarters reports that the
50,000 transaction milestone was sur­
passed last fall, and that cards on 49,000 savings accounts in Nebraska have
been issued. When TMS first com­
menced operation in January, 1974,
First Federal of Lincoln had $48 mil­
lion in TMS accounts compared to
$800 million net total savings (exclud­
ing certificates) for the state of Ne­
braska in all financial institutions. As
of June 30, 1975, a TMS spokesman
states, savings dollars in TMS accounts
have increased to $82 million (an in­
crease of 70.83% ) while total net sav­
ings for the state of Nebraska have in­
creased to $1.23 billion up 53.75%.
Northw estern

B an ker, March

1976

104

Io w a N e w s

BANKERS attending sem inar sponsored by Capital City St. Bk., Des Moines, last m onth included fro m left: G. M. Barnett, pres.,'*
G uthrie Co. St. Bk., G uthrie Center; Bob Dixon, pres., Rolfe St. Bk.; Tom Hay, pres., Security St. Bk., Casey; Homer Jensen, v.p., host
bank, and Marv Logan, pres., Davis Co. Sav. Bk., Bloom field. RIGHT — Dick Buenneke, exec, v.p., host bank, is shown w ith panel­
ists, Harry Watts, Des Moines attorney, and Don Holder, CPA, Des Moines.

Practical Bank Seminar
Held by Capital City State Bank
ANKERS attending a “Practical
B
Bank Seminar” sponsored by
Capital City State Bank, Des Moines,
were treated to discussions of tax plan­
ning for banks and one bank holding
companies, problems in banking law,
and methods smaller banks may utilize
the Small Business Administration.
Don Holder, C.P.A., Des Moines,
reviewed tax law changes made in
1975, including raising the surtax from
$25,000 to $50,000 and changing the
investment credit from IV i percent to
10 percent. Commenting on the new
rules covering Individual Retirement
Act (IRA), Mr. Holder said bankers
should be aware of May 30, 1976
deadlines for filing new forms with the
Department of Labor and presenting
planned summaries to all participants.
According to Mr. Holder, during
1975, there were 5,000 cancellations
of pension plans and 6,000 cancella­
tions of preferred profit sharing plans
by American business due to the com­
plicated regulations.
Long Term Planning

Suggesting that banks should make
decisions on a long-term basis, fitting
needs to five, seven, ten years, or
longer, taking advantage of bonus de­
preciation and investment credit in
making purchases. In planning new
buildings, bankers should list specific
components for investment credit and
establish varying periods of deprecia­
tion for items like plumbing, flooring,
and roofing.
Special interest was shown in Mr.
DigitizedN ofor
r t hFRASER
w e s t e r n B a n k e r . /March
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

19 7 6

Holder’s discussion on cash vs. accrual
accounting, reserve method vs. direct
charge off of bad debts, and year-end
tax saving moves.
Concluding his comments, Mr.
Holder gave specific examples on how
to solve capital deficiency problems,
particularly when bankers are planning
a new building or expansion program.
Attorney Watts discussed the recent
Iowa Supreme Court decision, affirm­
ing a lower court ruling that The State
Bank of Fort Dodge acted properly in
exercising its right of offset in its ac­
tion against Farmers Cooperative Ele­
vator of Duncombe. Added comment
was made on proper handling of ware­
house receipts.
Concluding his remarks, Mr. Watts
covered the Equal Credit Opportunity
Act and bank liability under current
consumer credit contracts.
Robert Brekke of the Des Moines
S.B.A. office conducted a question and
answer session on activities of the Small
Business Administration. He stressed
the importance of qualified manage­
ment in repayments and business suc­
cess, reminding the audience that
S.B.A makes available an active corps
or senior executives to assist small busi­
ness at no charge. He suggested that
banks and potential borrowers should
review a new business kit available
through S.B.A.

Jensen, vice president in charge of cor-*
respondent banking relationships, as­
sisted in planning the seminar. Mr.
Buenneke announced that a series of
updated forms for lending are being ■*
made available at modest cost to com- T
munity banks. The new forms cover^
business loan — single payment, se­
cured or unsecured; business loan —
multiple payment, secured or unse­
cured; business loan — single payment,
interest precomputed, secured or un­
secured; business loan —- multiple pay­
ment, interest precomputed, secured or
unsecured; consumer credit note —
multiple payment, secured or unse-*
cured; consumer credit note — single
payment, secured or unsecured; guaran­
ty-personal; assignment of savings ascount or Certificate as collateral; real *
estate mortgage note, and real estate
mortgage.
*

Lending Forms

Richard Buenneke, executive vice
president of the host bank, served as
moderator for the sessions. Homer R.

SBA in fo rm a tio n was presented by Robert
Brekke, shown w ith Tom Dunlap, pres.,
South Story Bk. & Tr. Co., Slater.

Io w a N e w s

105

Great Iowa Brain Robbery Draws Ideas for Industry
By MALCOLM FREELAND
Publisher

> M urray Raphel w rites responses on a d is­
play board while Ray Considine gets rapid£ire ideas from audience on needs of cus­
tom ers, tellers and m anagem ent person­
nel. The idea exchange came a fter in d i­
vidual table discussions by those atte n d ­
ing.

; Lark B illick is arrested and handcuffed by
Polk County Sheriff Clemens and a deputy
^after being cited by the sheriff during the
luncheon fo r perpetrating Brain Robbery.

Jim Peters, a.v.p., Newton N atl.; Bob
Clark, v.p., Central
Natl.
B&T, Des
Moines, and Gus McCulley, v.p., B u rlin g ­
ton B&T, enjoy a refreshm ent break. Con­
centrated sessions offered diverse miar­
í a keting subjects like 60 Ideas in 60 M in­
utes, C ritique of Advertising (w ith num er­
o u s display of newspaper ads), Methods
of Selling, How to Help, Giving Added
Value and 4 O bjections to Sales.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A TOAST to the successful Iowa Great Brain Robbery is offered by the fo u r principal
pa rticip ants (I. to r.): Lark B illick, 1BA's p.r. dir., who was in charge o f the program;
G ilbert Ham blet, whose after-d inn er speech, ‘ ‘ Don’t Take Yourself Too S eriously,” wowed
the 180 registrants, and Ray Considine, Los Angeles, and M urray Raphel, A tlan tic City,
who teamed up to present the several w ork sessions during the tw o fu ll days of the
m arketing sem inar. The coffee mugs th e y’ re holding display the ‘ ‘Great Iowa Brain Rob­
bery” logo and a cup was given to each registrant, along w ith a ‘ ‘Stay of Execution” certific a te th a t proclaim s the holder com pleted the sem inar.

‘ ‘ Don’t you have my notebook?” is the fra n tic plea of Lark B illick, but his secretary,
Pat Sm ith, very em phatically points back to the m eeting room w ith “ No, it ’s at the
head ta b le !” Enjoying the whole procedure is Mike Newhouse (center), m ktg. dir., Se­
cu rity Natl., Sioux City. (The notebook was at the head table.)

Typical of the table discussions durin g each session is th is one held by (I. to r.) Sam
W. Neill, sr. v.p., Security Sav., M arshalltow n; John G. Fey, a.v.p., Security Sav., Scran­
ton; Jim Currie, pres., State Bank of Schaller; D. B. M ullins, v.p., City Natl., Shenando­
ah; Don Clouston, M orningside State, Sioux City, and David Moore, 1st Natl., Dubuque.
Participants too k tu rn s as recorder fo r th e ir table during the brain-storm ing sessions
and would then report th e ir findings to the entire group in the rapid-fire report session
conducted by the team .
Northw estern

Banker,

M arch

1976

106

\
Parrot Learns a Lesson

Daily Moral Inventory
LIABILITIES
W atch for —

ASSETS
Strive for —

Self P i ty .......Self-Forgetfulness
Self Justification......................Humility
Self Im portance...................... Modesty
Self Condemnation . . . . Self Valuation
Dishonesty ............................ Honesty
Im patience............................ Patience
Hate .......................................... LOVE
R esentm ent........................ Forgiveness
False Pride ........................ Simplicity
Jealousy ..................................... Trust
E n v y ..................................... Generosity
Laziness ................................. Activity
Procrastination ............... Promptness
Insincerity...........Straightforwardness
Negative Thinking . . Positive Thinking
Vulgar, Im m o ra l.................... Spiritual
T hinking....................Clean Thinking
C riticism ...........Look for the GOOD
Elim inate the N egative
A ccentuate the Positive

Strict Boss
The old-time plumber was con­
cerned about coffee-breaks, feather­
bedding and other production interrup­
tions.
“When I was an apprentice, we used
to lay the first two lengths of pipe —
then the boss would turn on the water
and we’d have to stay ahead of it.”

MARCH,

1976

A
Acorn P rin tin g ................................................................ 96
A lliso n -W illia m s C o .......................................................... 4 7
A m erican N a tio n a l B ank C h icago ........................ 5 0
A m erican T rust & Savings Bank, D u b u q u e . . 8 9
A m iel Industries o f N orth A m erica .....................
3
B
B anC lub ................
22A
B ank A dm inistration In stitu te ................................ 5 3
Bankers T rust C om pan y ............................................. 86
B ecker & C ow n ie ........................................................... 34
B eh , C arleton C om pan y ............................................. 3 7
C
C entral Bank o f D en v er ............................................. 73
C entral N a tio n a l Bank, D es M oines ................... 9 3
C ontinental Illin ois N a tio n a l Bank ........................ 2 4
C reative Group ................................................................... 2 2
D
D ain , K alm an & Q uail ............................................. 3 6
o r tFRASER
h w e s tern Ban ker, M arch
DigitizedNfor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1976

“I’m sorry, Mrs. Kirk, but you must be
more specific. ‘Plenty’ won’t do.”

Ethnic Heroics

Aboard a ship a magician was
entertaining the guests — all except »
a parrot hanging nearby. Everything,
including a pigeon that was made to
disappear, was greeted by a shout
of “Faker!” from the bird. Suddenly
an explosion destroyed the ship, and
the parrot landed on a raft occupied T
by the magician. After two days of
merely sitting and staring at the man*»
the bird finally admitted: “All right,
you win! What did you do with the
ship?”

The passenger list on one flight
across the Atlantic included people of
many different nationalities. During
the course of the flight, a storm blew
up and forced the pilot to lighten the
weight of the plane. He asked for
volunteers to bail out.
A Frenchman arose, yelled, “Vive
la France,” and jumped out the door.
Then an Englishman got up and yelled,
“Long live the Queen,” and leaped out.
Finally, a Texan got up and yelled,
“Remember the Alamo,” and pushed
a Mexican out of the door.

We used to wonder what the future*
had in store for us. Now we wonder
what the store will have in the future
for us.

Too Many Troubles

Conceit

“Man, you sure look worried.”
“I’ve got so many troubles that
if anything bad happens today, it
will be at least two weeks before I can
worry about it.

CONCEITED GIRL: “How do you^
like it, girls? It’s just a little something
I threw on.”
“Looks like you missed,” replied
one of the girls.

D aktronics
........................................................................... 1 0
D a w so n H a il Insurance .............................................
5
D eL u x e C h eck Printers ............................................. 1 5
D ick in son & C o., R, G .................................................. 3 4
D o a n e A gricultural S ervices ..................................... 16
D o u g la s G uardian W areh ou se ................................ 12
F
F in a n cia l Institu tion Services .................................2 2 D
F irst N a tio n a l L in co ln ................................................ 8 5
First N a tio n a l B an k , M inn eap olis ........................ 5 7
F irst N a tio n a l B ank, O m aha ................................... 7 9
First N a tio n a l B ank, St. P a u l ................................
7
G
G ross, Kirk C om pan y ................................................ 9 2
H
Harris T rust & Savings B ank ................................... 4 5
H a w k ey e B ancorporation ........................................... 4 8
H eller, W a lter C om pan y ............................................. 1 7
H ibb ard , O ’C onnor & W eek s ................................... 3 0

N
N A D A U se d C ar G u id e C o m p a n y ...........................
N a tio n a l B ank o f C om m erce ...................................
N a tio n a l C ity B ank .....................................................
N orth C entral L ife Ins. Co. .....................................
N orth w estern N a tio n a l B ank, M inn eap olis . . .

Girl Hater?
Two small boys were playing to-4
gether when a very attractive little girl
walked by. One of the boys said
fervently to his pal, “Boy, when I stop
hating girls, she’s the one I’ll stop hat­
ing first!”

Times Change

i

I

Insurance Program m ers ............................................. 4 3
Insured C redit S erv ices ................................................ 2 3
Io w a -D es M oines N a tio n a l B ank ............. 3 5 , 1 0 8
L
L eam in gto n H o te l ..............................................................6 2
M
M erchants N a tio n a l B ank ........................................
2
M idland N a tio n a l B ank, M inn eap olis ................... 6 3
M orA m erica ..............................................................2 2 B -2 2 C
M ortgage G uaranty Insu ran ce C orporation . . 8 -9

19*
81
59
6
54

O
O m aha N a tio n a l B an k ................................................... 33

P

A,

Piper, Jaffray & H o p w o o d ..............................................4 8 PProm S heraton Inn ........................................................ 1 8 »
R
R and M cN a lly .................................................................. 4 9
S
SL T W areh ou se ..........................................................
41
St. P a u l H o sp ita l & C asu alty ................................... 14 *■
S alm on Brothers . ........................................................... 21
S ecu rity N a tio n a l Bank, Sioux C i t y ............. 4 7 , 91
S haw , M cD erm o tt .......................................................... 32
T
T aylor & M artin ............................................................. 11 "A
T ravelers E xpress C o m p a n y . . ................................... 61
U
U n ited G uaranty C orporation ....................................1 0 7
U n ited M issouri B ank o f Kansas C ity ............. 13-*
U n ited States C heck B ook ................................ 6 9 , 88
U n ited S tates N a tio n a l B ank ................................... 76
V
V an W a g en en , G . D . C om pan y .............................. 6 0

Two is beautiful.
#1 Is The Biggest. But #2 Is Beautiful.
The largest company in private
mortgage insurance is MGIC. (They’re
also the oldest. A n d the best known.) But
while we respect their success, we’re not
afraid to tackle them every chance we get.
You see, we have something the #1
company doesn’t have.
I t’s a corny thing called special
service.
When you’re #2 you work harder at
having the rig h t answers faster than #1.
(F or example, processing at United takes
less than 24 hours.)
Very simply, when you’re #2 you do
everything th a t #1 does. But better
and faster.

Send For Your Free T-Shirt.
Our new “Two is beautiful” T-Shirts
have made more than one person at United
smile. And feel better. And perform
better.
And now you can get into one of our
T-Shirts. Easily.
If you’d like one, let us know your
size and name on company letterhead.
(Size R ange: Women’s : E x tra Small,
Small, Medium, L arg e; Men’s : Small,
Medium, Large, E x tra Large.) We’ll send

you a “Two is beautiful” T-Shirt. Free.
Ju st like that.
But th ere’s a catch.
Only tw o to a customer.

We’re #2. No Complaints.

^United
United Guaranty Corporation
826 N. Elm, Box 21567, Greensboro, NC 27420 (919)273-6961

Contact United Guaranty Residential Insurance Company • P .0 Box 778. Bettendorf, Iowa 52722.

In Iowa (800) 292-0047. In States bordering Iowa (800) 553-8976.
United Guaranty Residential Insurance Company • 300 Morgan Building. Portland. Oregon 97205.
In Washington and Idaho (800) 547-1064. In Oregon (800) 452-7697.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Correspondent On-line" puts
our computer in your bank,
to give you a lot of help.
It’s a fact of life— the computer is rapidly becoming a competitive necessity
in our business today.
That’s where “Correspondent On-Line” comes in. It’s a direct hookup
that gives your bank all the computer capability of the largest bank
in Iowa, instantly, as you need it. What’s more, there’s no major
capital outlay on your part
If that sounds interesting, let’s talk about it now. You will need some
internal planning to put yourself in a position to move “On-Line” with us.
There’s one thing for
sure. When the time is
right, plugging your bank
into our computer will get
you a lot of help for
your money.
NATIONAL BANK

IOWA


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Yes, you can get a lot of help for your money.
7th & Walnut, Des Moines, Iowa 50304 (515) 245-3131
_
Member FDIC

An Affiliate of Northwest Bancorporation

BANCO