Full text of The Northwestern Banker : March 1982, 89th Year, No. 1422

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MARCH
1982

Photo by: M a ry B a tk a

A B A Leadership Conference by Satellite
In this issue:

• Leasing waters are muddied by politics - Survey
• How banks are using asset-based financing today - Survey

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Federal Reserve Bank of St. Louis

"The challenge of developing more ef­
ficient methods in correspondent
banking is greater than ever. That's
why at Merchants National Bank, we
encourage our correspondent bankers
to develop new and better ways of
handling Overlines and Liquidity
Loans. That's why we offer time­
saving services like the 24-Hour
Transit Service and more efficient ap­
proaches to Federal Funds Purchase
and Sales and Bond Purchasing and
Safekeeping.
"At MNB, we expect originality
and we encourage innovation. In cor­

respondent banking, as in any
dynamic business, creative thinking
blends vision with experience for a
better product. And by aggressively
seeking new perspectives, we believe
we'll find the best ways to serve our
respondent banks and their
customers."
Talk to one of MNB's creative corre­
spondent bankers, soon. Call John E.
Mangold, Terry M. Martin, Stan R.
Farmer, Jerry N. Trudo, or Dale C.
Froehlich. Just dial (319) 398-4313 or
call, toll free, 1-800-332-5991.

Merchants National Bank
CEDAR RAPIDS, IOWA

isi

A BANKS OF IOWA’ BANK
Member F.D.I.C.!


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Federal Reserve Bank of St. Louis

3

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but not so very scary.

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can process Money
Orders, NOWs and
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Because that's all we do.
We reconcile, file, store, trace,
stop payment and clear up all the
problems that pop up daily. We
do everything your back office
now does and we do it at lower
cost. And, in the case of Official
Checks, you may also be able
to increase balances or receive
cash payments.
The Paper Tiger is financially stable (a
member of the Greyhound family), totally
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"systems business since 1940), and, unlike other
suppliers of remittance services, we are not in
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There's nothing to fear from the Paper Tiger
he's expressly working for you.
For more information call 1-800-328-5678 and ask for
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A GREYHOUND .^ L A T T c T
COMPANY
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N orthw estern Banker, March, 1982

4

A B A Satellite
Teleconference
A Big Su ccess

•

e l e c o n f e r e n c i n g by s a ^
ellite underwent its first test by
the American Bankers Association
February 10-12 when the A B A ’s
Banking Leadership Conference ak
the Capitol Hilton Hotel in Wash­
ington, D.C., was hooked up via
satellite to remote locations in Min­
neapolis, Minn., Des Moines, la.,
and Alexandria, Va.
^
At each of the remote locations;
bankers were able to watch and lis­
ten to all the deliberations con­
ducted by the more than 400 bank­
ers at the main room in the Capito^
Hilton Hotel. In turn, they haa
direct hookups for audio contact
with the Washington group, so that
each remote location could respond
with questions, statements and^ j
finally, a consensus from each
remote group. The consensus state­
ment arrived at by A B A appears on
page 25 of this issue.

T

M A R C H 1982

•

8 9th Y e a r

•

N o. 1422

tX I
OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES
MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION

FEATURES

• Leasing and Commercial Banks - Survey
17

Politics m uddies leasing w aters

Douglas R. Hawkins cites conflicting Washington reports

18

Leasing— com m ercial bank vehicle

W. Scott Morris looks at leasing benefits to banks

18

Leasing— a w in/win deal

Daniel A. Leclerc sees benefits for customer and bank

• Role of Commercial Finance Firms — Survey
19

W hen to call asset based lender

John H. Olson gives check list for bankers

19

M onitoring collateral

Allen J. Olson gives accounts receivable checklist

20

Acquisition financing

David F. Herrick says it makes dollars and sense

DEPARTM EN TS
4
6
12
27
33
46
52
53

Calendar
Bank Promotions
Corporate News
Illinois
Minnesota
Twin Cities
South Dakota
North Dakota

56
58
61
64
68
75
96
98

Wyoming
Montana
Colorado
Nebraska
Omaha
Iowa
Des Moines
Index of Advertisers

MINNESOTA — Leslie W. Peterson (at
podium), pres., Farmers State, Trimont,
chaired the remote session in Minneapolis.
With him at head table were MBA Pres. B o|^
Welle, chmn., 1st Natl., Bemidji, and TriP
man Jeffers, (right), MBA exec, v.p., Min­
neapolis.

NORTHWESTERN BANKER
305 15th Street, Des Moines, Iowa 50309

Publisher & Editor Associate Publisher
Ben Haller, Jr.

Steve Burch

Phone (515) 244-8163

Associate Editor
Becky McBurney

Consultant
Malcolm K. Freeland

Auditor

Field Representative

Field Representative

Debbie Hibbert

Glen Hicks

Paul Masters

No. 1422 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $15 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, IoWa 50309.

orthw
estern Banker, March, 1982
DigitizedNfor
FRASER
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Federal Reserve Bank of St. Louis

IOWA — Watching large screen intently in
Des Moines and listening to comments
from Washington, D.C., are, from left: John
Walther, pres., Renwick Savings; John
Mangold, sr. v.p., Merchants Natl., Cedar
Rapids, and Don Curry, pres., Farmers Savl
ings, Massena.

Paint a brighter
earnings picture.
The Northern Trust
can help your bank
generate more profits.
The Northern Trust has a
reputation for providing out­
standing assistance to corre­
spondent banks. Expertise in
areas most crucial to your earn­
ings built that reputation. Inno­
vation and the closest personal
attention to detail maintain it.
Our safekeeping expertise
can help make your portfolio
easier to manage. Our cash let­
ter service will help you take
better advantage of overnight
money markets. Both rank
among the fastest, most accu­
rate systems available any­
where.


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Federal Reserve Bank of St. Louis

The Northern Trust’s prom­
inent position in primary and
secondary bond and money
markets can give you and your
customers greater selection and
ready liquidity. We’ll also pro­
vide in-depth portfolio analysis
and advise you on investment,
tax and related asset and liabil­
ity planning.
For planning short- and
long-term profitability, The
Northern Trust’s consulting
services are unique among
Chicago banks. We have the
capability and experience to find
first-hand answers to any ques­
tions about banking you may
have.

You’ll find every officer of
The Northern Trust is a trained
specialist in correspondent ser­
vices who has the authority to
act fast. If you’d like to profit
from our experience, contact
Curtis E. Skinner, Senior Vice
President, The Northern Trust,
50 South La Salle Street,
Chicago, Illinois 60675. Tele­
phone (312) 630-6000.
Member F.D.I.C.

The more you want
your bank to do,
the more you need
The Northern.

The
Northern
Trust

6

Bank Promotions

P

ROMOTIONS and other an­
nouncements have been made
by the following banks:
Centerre Bank, St. Louis: Four
new executive vice president posi­
tions have been announced by Chair-

D.M. CULVER

T.B. FRENCH

W.S. SALTER

E.R. WHITELAW

man and Chief Executive Officer
Clarence O. Barksdale. They are:
David M. Culver, multi-national
group; T. Barton French, special in­
dustries group; William S. Salter,
regional group, and E. Randolph
Whitelaw, central group.
Mr. Culver joined the bank in
1967. He was named vice president
and manager of the regional banking
division in 1975 and promoted to
senior vice president in 1977. In
1981 he was appointed head of the
multi-national group.
Mr. French has been with the
bank since 1963, moving up to
senior vice president in 1976 in
charge of real estate, mortgage lend­
ing, correspondent banking and
special industries. He was named
last year to head the special in­
dustries group which includes
agricu lture, energy, corpora te
finance, leasing and transportation
units.
Mr. Salter was an international
banking officer in Hong Kong with
Bank of America before joining

We are proud to be the regional representative of this renowned
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also currently on display at the Minneapolis Institute of Arts
thru April 4th. The bronzes are for sale at Images Gallery.

IMAGES GALLERY
Citizens State Bank Bldg., Suite 313
5050 Excelsior Blvd. (1 Blk. East of Bwy. 100)
Minneapolis, MN 55416 Phone 927-5565
N orthw
estern Banker, March, 1982

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Federal Reserve Bank of St. Louis

Centerre Bank in 1971. He headetL
Centerre’s international banking un­
til 1981 when he was placed in
charge of the regional group.
Mr. Whitelaw joined Centerre in
1968, became manager of the nev^
metropolitan division in 1976 and irr
1981 was named head of the newly
formed central group.
At the affiliated Centerre Bank of
Kansas City, Craig Wanamaker h a ^
joined the bank as vice president in
the correspondent bank division. He
will continue living in Lincoln,
Nebr., working with customers in
that state. Until his appointment h^|
was a vice president in the cor­
respondent division at First Na­
tional Bank and Trust Company of
Lincoln.
Continental Illinois Corporation#
Chicago: Promotions have been an­
nounced in the merchant banking
subsidiary, Continental Illinois
Limited, as follows:
Kenneth W. Cunningham, David®
Gates and James L. Hildebrand to
managing directors of CIL. Each
had previously been a deputy man­
aging director. William A. Page,
managing director since April, 19810
continues as chief executive officer.
The subsidiary headquarters in Lon­
don.
A new subsidiary, Continental Il­
linois Trust Company of Florida™
N.A., has been opened at 1499 West
Palmetto Park Rd., Boca Raton. It
is the first of two trust companies
Continental plans to open in Florida^
The second is expected to open late™
in 1982 in Sarasota. The Comptrol­
ler announced November 4 he would
allow the establishment of such na­
tional trust companies in Florida bju
out-of-state bank holding companie ™
after a Supreme Court decision that
overturned a Florida statute, and
the subsequent expiration of a
federal moratorium.
^
First National Bank of Chicago:
Four persons have been promoted in
the service products marketing
group. Lawrence B. Wieland was
named vice president and managed
of the market planning unit of the
new business development sector of
the Cash Management Marketing
Support Group.
James W. Nylen and Michael A "
Patt were appointed vice president
and manager of the worldwide sales
support unit and vice president and
manager of the U.S. sales supporL
unit, respectively.

7

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Without question, there is significantly more risk
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You can shelter your home improvement loans
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writing and marketing expertise to assist in

the evaluation and development of your home
improvement loan portfolio.
Insured Credit Services, Inc. is a wholly owned
subsidiary of Old Republic International
Corporation, the nation’s largest provider of
consumer credit insurance coverages. If you want
to take the risk out of home improvement lending
and feel more secure about aggressively pur­
suing this profitable market, please contact:
William F. Schumann, President, Insured Credit
Services, Inc.: 307 North Michigan Avenue;
Chicago, Illinois 60601; (312) 621-9400.

IN S U R E D C R E D IT
V S E R V IC E S 1

The Original Hom e Equity and
Home Im provem ent Loan Protection Specialists

the

s, Texas
'


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Federal Reserve Bank of St. Louis

redit Conference

March 21-23

N orthw estern Banker, March, 1982

8
First National Bank, St. Joseph,
Mo.: William R. Manring was ad­
vanced to vice president. His re­
sponsibilities are
with the ag lend­
ing, correspon­
dent banking,
and farm man­
agem ent area.
He also serves
as assistant vice
p r e s id e n t
of
First AgCorp.,
Inc., as ag lend­
ing subsidiary
of the parent First Midwest Ban­
corp., Inc. Mr. Manring joined First
National in 1976.
W. Dale Maudlin, president of the
bank, also announced these promo­
tions to assistant vice president:

P.R. WORLEY

Stanley Hulett, ag representative
since 1980; Paul Ronald Worley,
program manager in the data pro­
cessing department since 1981; Mrs.
Irene Hilton, account service officerEDP since 1979, and Ms. Jeanette
Venable, assistant cashier since
1981.
Mr. Hulette is a graduate of the
University of Missouri and has com­
pleted the Missouri Basic and Ad­
vanced School of Agricultural Bank­
ing. Mr. Worley joined the bank’s
EDP department in 1973. Mrs. Hil­
ton has been with the bank since
1971. Ms. Venable started her career
at the former First Trust Bank of St.
Joseph in 1966. It was merged with
the bank last year.
Promoted to loan officer and col­
lection manager was William R.

I. HILTON

J. VENABLE

Reiss, an employe since 1972.
£
New assistant cashiers are Mrs.
Hazel Poloski, Mrs. Eleanor Hanway and Mrs. Lorene Wood. Other
promotions were: Mrs. Wayne Son­
ner to assistant comptroller, Mrs. J #
Ann Whittington to assistant aud­
itor, Ms. Shirley Black to assistant
loan officer, and Ms. Helen Brittain
to assistant secretary/treasurer of
First AgCorp., Inc.
#
First National Bank of Kansas Ci­
ty: Brian D. Bailey has been elected
vice president, Dean A. Graves and
Michael A. Ward have been pr^p
moted to assistant vice presidents,
and Cherryl L. _ _ _ _ _ _ _ _
Kopala has been
p r o m o te d
to
strategic plan­
ning officer.
WF* *
Before joining
i B
the First Na­
tio n a l
s t a ff
recently as bond
á %
manager in the
funds manage­
B.D. BAILEY
ment division,
Mr. Bailey had been affiliated for 11
years with the investment division
of Indiana National Bank, Indian­
apolis.

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N orthw
estern Banker , March, 1982
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Federal Reserve Bank of St. Louis

nwb

D.A. GRAVES

M.A. WARD

Mr. Graves joined the trust div^
sion in September, 1979, and now
manages the investment portfolios
in the funds management division.
As a bond sales representative, Mr.
Ward provides short-term invesW
ment alternatives to corporate ana
correspondent customers. He has
been with the bank since 1980.
Mrs. Kopala has been with the
bank since January, 1981, moving
strategic planner last June 1.
Morgan Stanley & Co., New York:
Funeral Services were held las^|
month for Henry Sturgis Morgan,
81, a founding partner of the com­
pany and of the investment banking
business as it is known today. He
was a grandson of J. Pierpont Mor^
gan and son of J.P. Morgan, Jr. He

9

W ant cash in Seattle
the sam e business day?
G o hire a superm an.

||

Cash availabilities. Most money center banks
talk a big game. But start to pin them down. Inquire
about schedules. Ask if your cash letter with items
on Seattle, Atlanta, New York or Topeka banks can
be available the same day. And the brags and boasts
will start to fade.
You’ll hear, “Hey, you don’t need us. Call a
superman’.’
Funny, at Continental Bank, we don’t think
same-day cash availability is an act of heroism. To us,
it’s business as usual. But then, we happen to have
one of the best schedules in America.
Part of it is luck. We’re in Chicago, the nation’s
transportation hub. The other part is good planning,

good technology and good old-fashioned hard work.
We have two helicopters for continuous mail pickup,
An exclusive zip-code. And non-stop, 24 hour-a-day
processing. We present checks for collection to 400
endpoints daily, 250 of which are direct sends.
Frankly, on speed alone, we generally beat
the Fed hands down. And not many banks can
say that.
Let us show you how your availability could be
better. Call Robert C. Vasco at (312) 828-4046. Our
correspondents get the best there is.
It’s what you expect from a top correspondent
bank.
At Continental Bank, it’s reality.

CONTINENTAL BANK
Continental Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60693

125th ANNIVERSARY

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Federal Reserve Bank of St. Louis

N orthw estern Banker, March, 1982

10
joined the Morgan family bank in
1923, was a partner of J.P. Morgan
& Co. from 1928-35; then, following
enactment of the Banking Act of
1933, which required commercial
banking and investment banking ac­
tivities to be separated, joined
Harold Stanley and others to form
Morgan-Stanley in 1935 to handle
the securities business formerly con­
ducted by J.P. Morgan & Co.

Northern Trust Company,
Chicago: Directors recently pro­
moted J. Timothy Ritchie to trust
counsel in the legal department and
appointed Robert A. LaFleur from
outside the bank as vice president in
the trust department.
Promoted to second vice presi­
dent were: Patricia O. Fiorell, per­
sonal banking; John S. Darrow,
Margaret M. G. Georgevich, Robert
W. Holt and Michael T. Meegan,
trust department.
Named operations officer in the
operating department were: Mar­
garet E. Bogdanovicz, Arthur A.
Jablonski and Susan M. Jones.
Carol L. Ennis and Beatriz Huerta
were appointed personal banking of­
ficers, and Mike N. Alex was ap­
pointed trust officer.
New appointments from outside
the bank include: Luke C. Mazur and
Davis A. Roeske, vice presidents,
trust, and Ronald E. Koepsel, se­
cond vice president, trust.

Kansas City, Mo.: Peter M. Granat
and James K. Seitz have been elect­
ed assistant vice president, and
Mark L. Garten was promoted to
assistant tax officer.
Formerly with United Missouri
Mortgage Company, Mr. Granat
joined the organization in 1978. He
has a master’s and law degree from
the University of Missouri at Kan­
sas City. Mr. Seitz, previously with
the Missouri division of finance, will
handle loan review and credit ad­
ministration for the holding com­
pany’s affiliates. He has a B.A.
degree in business administration
from Northeast Missouri State Uni­
versity. Mr. Garten, who joined the
company in 1976, has a business ad­
ministration degree from the Uni­
versity of Missouri at Kansas City.

H a p p y B.D., H u b ert!

ANNIVERSARY — The Harris Bank,
Chicago, celebrated the 25th anniver­
sary of Hubert, the bank’s widely
known spokesman, with a birthday
party for employees in the bank’s 8th
floor cafeteria on February 9.
Bank chefs had prepared a giant
cake with Hubert’s image in yellow ic­
ing. Employees helped the six-foot
Hubert blow out the candles, and
Harris Chairman Charles M. Bliss led
a chorus of “ Happy Birthday” songs.
One of the bank’s major intangible
assets, Hubert made his first appear­
ance in the 1950s. His television
debut came in 1962.
By pure coincidence, Hubert is 25
years old in the same year that the
bank marks its 100th anniversary.

Wells Fargo & Co., San Francisco:
the subsidiary Wells Fargo Leasing
Corporation has advanced Marker
E. Lovell, 37, chief credit officer, to
senior vice president. He has been
with the company since 1972. It was
also announced that William A.
Sellier, headquartered in Los
Angeles, has been promoted to vice
president and named western reg­
ional manager.
Edward G. Zaik, 36, chief finan­
cial officer of Wells Fargo Leasing
Corporation, has been named senior
vice president, and James S. Godry, A llen V o lk e n a n t Joins
35, has been promoted to vice presi­ A lb an y H o ld in g C o m p a n y
dent, both at San Francisco head­
Allen J. Volkenant, a vice presi-.
United Missouri Bancshares, Inc.,
quarters.
dent of First Bank System, Inc., in'
Minneapolis, has been named a sen­
ior vice president for marketing and
advertising in Key Banks Inc., ac­
—Our 62nd Year—
cording to an announcement by Vic-,
THE CROP H A IL PROTECTION
tor J. Riley, Jr., president and chief'
FARM ERS PREFER
executive officer of the six-bank
STATEMENT OF CONDITION At Close of Business December 31, 1981
h oldin g corp ora tion based in
ADMITTED ASSETS
Albany, N.Y. He succeeds Neal L.
Moylan, of Delmar, N.Y., a senior,
U.S. Government B o n d s ........................
$3,105,669.28
Other Bonds ..........................................
865,267.04
vice president, who is retiring in
Accrued Interest, etc...............................
41,772.19
May.
Cash in Bank and Home O ffic e ............
477,326.38
Mr. Volkenant has been an officer
Total Admitted A s s e ts ....................
$4,490,034.89
of the Minnesota bank holding com­
LIABILITIES
pany since 1967, in charge oL
Reserve for Federal and State T a xe s................................ $ 170,193.60
Other L ia b ilitie s ..................................................................
56,100.00
marketing, advertising and public
Total L ib ilitie s .............................................................. $ 226,293.60
relations.
Prior to that, he was
Funds for Policyholder P ro te ctio n ....................................
4,263,741.29
employed in advertising-marketing
$4,490,034.89
positions for several mid-west cor­
Securities carried at $399,860.00 in above statement are
deposited with public authorities as required by law.
porations, including Rand McNally \
and Company in Chicago. He is a
graduate of the University of Min­
nesota, with graduate work in mar­
DES MOINES, IOWA 50308
keting at that university, as well as
several other specialized graduate {
banking schools.

SQUARE DEAL INSURANCE COMPANY
l^Yiutuai

DigitizedNfor
FRASER
orthw
estern Banker, March, 1982
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Federal Reserve Bank of St. Louis

In the race
against tim e the
Chase is on.

Everywhere you look, the financial service industry is in revolution.
Volatile money markets swing 100 basis points in a single day. Decisions must
be made in hours or minutes, instead of weeks or days.
We’re all in the race. Whether you’re a commercial bank, thrift,
investment bank, broker, or insurance company — you need a partner
that responds quickly. Chase.
Chase can help your asset/liability balancing. And put you on the
fast track to diversification. We’ll work along with you and your customers
to approve overline credit in advance.
And when consumers clamor for fast banking, our private label
consumer services — like telephone home banking — can help keep yours
on the books.
Chase can tell you exactly what you have in any bank in the U.S.
With our InfoCash® system, we can execute and confirm your money transfers
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And we’ve automated securities processing too. Our real time
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Now more than ever, time is money. So call the Chase Manhattan
Bank. In the race against time, the Chase is on.


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Federal Reserve Bank of St. Louis

12

r

Corporate

V

P

P R O M O T IO N S and other
announcements have been made
by the following firms:
American Express Company, New
York: Robert E. Riley has been
named senior vice president —
strategic business planning. Mr.
Riley previously was senior ex­
ecutive vice president of Shearson/American Express, Inc., respon­
sible for financial services strategic
planning.
From 1970 to 1981, Mr. Riley had
been president and chief executive
officer of Marsh & McLennan Asset
Management Co., a subsidiary of
Marsh & McLennan Companies Inc.
He was also a senior vice president
and director of the parent company.
The principal subsidiaries for which
Mr. Riley was responsible included
the Putnam group of management
companies and the Eberstadt group
of companies. He joined the Putnam
Companies in 1956 as an investment
analyst.
Mr. Riley graduated from Har(

^

S IN G L E IN T E R E S T
IN S U R A N C E
For In s ta llm e n t Loans

B L A N K E T S IN G L E
IN T E R E S T
IN D IV ID U A L S IN G L E
IN T E R E S T P R O G R A M S
• A u to m a te d
• M anual

V

_

_______ J

PROTECT YOUR LOANS
AGAINST THO SE PHYSICAL
DAMAGE LOSSES.
CONTACT US ABOUT A
PROGRAM FOR YOUR BANK.
call or write:

T K 7 g .d . v a n
W A G E N E N CO.
524 Plym outh B uilding
12 South S ixth Street
M inneapolis, M innesota 55402
(612) 333-2261

DigitizedNfor
FRASER
orthw
estern Banker , March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

University of Wisconsin Extension^
Mr. Powell joined Diebold in 1969 as
a service technician, later becoming
a field coordinator, installation
supervisor, service manager and ser­
vice marketing manager.
%

vard Business School with an MBA
in 1953 and from Holy Cross College
Lease Northwest, Minneapolis,
in 1951.
Minn.: Daniel Leclerc, president, has
Brandt, Inc., Watertown, Wis.:
announced the formation of a new
Vincent A. Manni has joined the
Financial Services Division and fi vu
marketing division of Brandt as
officer promotions, effective in ^
systems market coordinator, with mediately.
responsibility for promoting sales of
The new division will act as a
the firm’ s ex­
brokerage operation to sell tax
panding line of
oriented leases to outside equity
c o m p u t e r iz e d
sources, Mr. Leclerc said. Namecr
cash settlement
vice president and head of the new
systems.
division is Perry R. Mead, who
M r.
M anni
joined Lease Northwest in May,
fo r m e r ly w as
1978, as a leveraged lease represeiw
operations an­
tative. He was promoted to lè v e ra ^
alyst for the
ed lease officer in July, 1978, assis­
past three years
tant vice president in 1979 and was
with Best Pro­
V.A. MANNI
named manager of financial services
ducts Co., Inc.,
in November, 1981.
a
headquartered in Richmond, Va. In
that position he was involved in the
im plem entation and successful
money-saving operation of more
than 40 cash settlement/media
management systems manufactured
by Brandt, at catalog showrooms
nationwide.
Before joining Best Products, Mr.
Manni was a production supervisor
with United Parcel Service in Rich­
P.R. MEAD
J.D. MAC LEOD
mond for two years. He has had
broad experience with data process­
John D. MacLeod was named vice
ing and financial systems, including
sales audit functions, loss preven­ president, marketing with respon­
sibility for managing the Min-*
tion and bank relations.
With Brandt, Mr. Manni is locat­ neapolis marketing division. Mr.
ed in Bensalem, Pa., near Phila­ MacLeod joined Lease Northwest in
delphia, at the firm’s currency December, 1976, as a lease market­
ing representative. He was pro-,
systems division headquarters.
moted to officer in September, 1977,
Diebold Incorporated, Chicago, and to assistant vice president in
111.: Gary Joseph Powell has been 1979.
Mark LaCount, named assistant
named district service and installa­
tion manager, according to a recent treasurer of Lease Northwest, joined.
announcement by William Tussing, Lease Northwest in 1977, was pro­
moted to financial accountant in
central area ser­
1978 and was named accounting of­
vice and installa­
ficer in 1980. In September, 1981, he
tion manager.
assumed the responsibilities of theHe will manage
leveraged lease accounting function.
all service and
Bennie Gates was named leasee
installation ac­
marketing officer. He joined Lease
tivities in the
Northwest in 1977 as lease market­
Chicago area.
ing representative in the Des^
Born in Chi­
Moines regional office and assumed
cago, Mr. Powell
responsibilities for management of
a tte n d e d the
G.J. POWELL
the Omaha regional office in 1981.
C levela n d In ­
stitute of Technology, Management Mr. Gates is responsible for the
Courses at Triton College, Illinois management of the Lease Norths
Institute of Technology and the west Omaha regional office with

1

V

Vj

Want customers to know you’re
not just another apple?
<111

You Need the Marketing
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Unfortunately, financial institu­
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Help from the marketing profes­
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We can help you profit through
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have the tools to help you build an
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Find out how to become that
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For our booklet, Profit Through
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V°2le

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

BANK M ARKETING ASSOCIATION
309 WEST WASHINGTON STREET, CHICAGO, IL 60606

•ve o t

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14
marketing responsibilities covering
Piper, Jaffray & Hopwood Incor­
all of Nebraska and western Iowa.
porated, Minneapolis: The company
Rita Chamblin was named finan­ purchased 50,000 newly-issued
cial services officer. Ms. Chamblin shares of common stock of Piper Jaf­
joined Lease Northwest in 1980 as fray Incorporated, the parent com­
credit analyst. She is responsible for pany of Piper, Jaffray & Hopwood
the marketing of lease transactions Incorporated, for a price of $31 per
and Lease Northwest services to share.
equity sources.
PJH will contribute the 50,000
LeFebure Corporation, Cedar shares to its employee stock bonus
Rapids, la.: Larry D. Stewart has trust as a part of a previously an­
been appointed manager of the nounced contribution for the fiscal
Omaha regional office. Mr. Stewart year ending September 25, 1981.
will supervise both sales and service
The total number of shares of
fo r th is t e r ­
Piper Jaffray Incorporated common
ritory, which in­
stock, reflecting the January 22 pur­
cludes counties
chase of 50,000 shares, will be
in N e b ra sk a ,
1,196,990 shares.
South Dakota,
Minnesota and
Also at Piper, Jaffray & Hopwood
Iowa.
Incorporated, William H. Ellis and
Prior to this
Addison L. Piper were named ex­
a p p o in t m e n t ,
ecutive vice presidents.
Mr. Stewart was
Mr. Ellis, who joined PJH in
a sales manager
l . STEWART
1980, is assistant to H.C. Piper,
with the Cedar
president.
Rapids office. He joined the com­
Mr. Addison Piper is marketing
pany in 1971, with a background in director at PJH and started with the
sales.
firm in 1969.

Fed Reports Income of $15.5 Billion
RELIM IN ARY figures indicate
that gross income of the Federal
Reserve Banks amounted to $15.509
billion during 1981, a 21.1% increase
from a year earlier. Of this, more
than $14 billion was paid to the U.S.
Treasury. Current expenses for the
12 Reserve Banks and their branch-

P

es totaled $897 million, 13.4% above
a year earlier.
Assessment for expenditures of
the Board of Governors amounted
to $63 million. Other deductions
from current net income amounted
to $372 million. The principal items
were net losses of $124 million on

sales of U.S. government obliga#
tions and $306 million on foreign ex­
change operations. The foreign ex­
change loss was primarily due to
revaluation of assets to market ex­
change rates.
•
Net income before payments to
the Treasury totaled $14.177 billion.
Payments to the Treasury as in­
terest on Federal Reserve note^®
am ounted to $14.025 billion;
statutory dividends to member
banks, $75 million; and additions to
Reserve Bank surplus, $77 million.
Under the policy established b ^
the Board of Governors at the end of
1964, all net income after the
statutory dividend to member banks
and additions to surplus to bring it
to the level of paid-in capital w e r^
paid to the U.S. Treasury as interest
on Federal Reserve notes.
Compared with 1980, gross in­
come was up $2.707 billion, d u ®
mainly to increases of $2.072 billion
on U.S. government securities and
$454 million on foreign currencies.
Income from priced Federal Reserve
services amounted to $155 million®
reflecting mainly the phasing in dur­
ing the latter part of the year of a
program to charge for Federal Re­
serve services.
Income of the Federal Reserve®
System is derived primarily from in­
terest accrued on U.S. government
securities that the Federal Reserve
has acquired through open market
operations, one of the tools o ®
monetary policy.

LeFebure Honors Top Regional Managers

CHECKS were presented to these two LeFebure regional managers when they were named Regional Managers of the Year during the com­
pany’s four-day annual meeting at headquarters in Cedar Rapids, la. Pictured, from left, are: Mylo D. Schultz, v.p.-sales & mktg.; Ralph Borzillo, Denver reg. mgr., and George X. Miller, exec. v.p. At right is Fred Girbert, St. Louis reg. mgr., with Mr. Miller. Mr. Borzillo’s region
achieved the greatest sales growth in the western division, while Mr. Girbert won similar honors for the central division. Managers from all
over the country attended the LeFebure conference and received marketing plans for domestic and international sales. The meeting also
featured new products for financial institutions.

N orthw estern Banker , March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15

'B A I P lans 5th A n n u al
A u d ito rs C o n fe re n c e
Bank Administration Institute’s
1982 Bank Auditors Conference will
)be conducted March 21-25 in Holly­
wood, Fla.
Speakers and topics include: H.
Joe Selby, senior deputy comptrol­
ler of the currency, Washington,
>D.C., “ The Deregulation Movement:
An Update’ ’; B A I’s Chairman of the
Board, George D. Norton, executive
vice president and cashier, Phila­
delphia National Bank, “ Manage­
m en t Directives for the ’80s’ ’; and
Philip F. Searle, chairman and chief
executive officer, Flagship Banks,
Inc., Miami, “ Management Expec­
tations of the Internal Auditor.’ ’
* More than 800 bankers are ex­
pected to attend the 3x/2 day pro­
gram. Topics to be addressed in 42
sessions include pre-acquisition
audits, fraud, peer reviews, person­
nel screening, current regulatory
issues, planning, special investiga­
tio n s and d e v e lo p in g p o lic y
statements.

'R e c o rd $2-B illio n Y e a r
For M id w e s t B ank C ard s
It was a record $ 2-billion year for
bank charge cards in the midwest in
►
1981.
The combined dollar volume of
MasterCard and Visa business was
$2,074,781,000, up 14% over the
$1,812,678,000 recorded in 1980.
1The number of individual cardholder
transactions — retail sales and bank
cash advances — also increased, by
six per cent to 56,945,000 from
53,888,000.
1 This record-setting volume was
reported by Credit Systems Incor­
porated, the operating center for
MasterCard and Visa in the fivestate area of Missouri, Kansas, II1linois, Iowa and western Kentucky.

ALL­
RISK
CROP
INSURANCE
NOW HAS THE

niuson

NAME REHIND IT!

If All-Risk Crop Insurance is confusing you or your farmercustom er, w e’ll help you elim inate the confusion. W ith 65 years
experience in the crop insurance business, we have the
q u a lific a tio n s to explain the details of the new All-Risk Crop
Insurance. Once you know more about it, we think you’ll agree...
it’s an excellent opportunity for both you and your custom ers.
A fter all, All-Risk Crop Insurance is designed to help you help your
custom er guarantee profits.
The deadline for w riting All-Risk Crop Insurance is com ing up
quickly. . .as soon as March 31 in some areas. So make plans to
talk w ith a Dawson representative today about a Reinsurance or
Master M arketing Agreement. He’s got the answers. . .a simple,
no-nonsense explanation. . .about All-Risk Crop Insurance. It can
help assure a p rofitable year for your custom er. . .and for you.
If you have never worked w ith Dawson. . .maybe it ’s tim e we
talked. Call us, anytime.

HAIL ° °
IN SU RAN CE

B o f A to E lim in a te
T rave lers C h eq u e Fee
Bank America Cheque Corpora­
tion is eliminating the fee charged
for the purchase of its “ World
Money® ” travelers cheques at
Bank of America branches in Cali­
fornia. The fee, which has been one
percent of the cheques’ value, will be
waived on all purchases of BankAm erica U.S. dollar travelers
cheques. The commission-free World
Money will be available to both
BofA and non-bank customers.

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

Call to ll free:
1- 800 - 437-4680
1- 800 - 342-4848
(North D akota)
20 South 8th Street

P .O .B ox 1820

Fargo, North Dakota 58107

N orthw estern Banker, March, 1982

16

Capital
via
Banco
Financial Corp.

Capital
via
Lease
N orthw est

ONE WW OR ANOTHER
WE CAN LEADYOUR CUBITS TO WORKING CAPITAI.
Use Your Asset Power.

Get more mileage out of each dollar.

Your assets can secure a tailor-m ade revolving
credit line. Accounts receivable, inventories,
machinery, equipm ent, land and buildings can be
turned into Asset Money™ It’s the sm oothest route
for com panies short on w orking capital, those look­
ing tow ard expansion or growing firms eager to
increase sales. Or money for buy-outs, mergers
and acquisitions. Bank participations.
Banco Financial C orporation can help get your
com pany off to a great future with Asset Money.
C ontact John Olson, Lee Mork, Robert Olson or
Paul Weingart, (612) 372-7988, 780 Northstar
Center, Minneapolis, Minnesota 55402. Or Jack
Hart, (303) 571-0515, One Denver Place, Suite
1512, 999 18th St., Denver, C olorado 80202.

Clients with considerable working capital may wish
to conserve it by leasing needed equipment.
Decide on a Lease Purchase Contract with a
guaranteed purchase option at the end of the term.
Go with a leverage lease or purchase
equipment outright.
Whatever your clients’ business, whatever the
equipment they need-Lease Northwest, Inc. has
the financing options that put it to work.
Contact Dave Michael in Minneapolis at
(612) 372-7416, Roger Meier in Omaha at
(402) 536-2310, Jim Sheedy in Des Moines at
(515) 245-3392, Chris Hoss in Fargo at
(701) 293-8136, or Jim Fetzerin Billings at
(406) 657-3581.

Banco
Financial

LEASE NORTHWEST, INC.
corporation

An Affiliate of Northwest Bancorporation

-----

^ ^

Banco

N orthw estern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Affiliated with Northwest Bancorporation

B anco

17

How politics muddies
the leasing waters
A N orthwestern B an ker S urvey
(§

From the Dow Jones ticker:
2/19 Senate Finance Chairman Robert Dole said the leasing rules in the tax law ‘will be either substantially limited or totally repealed on
the first available tax measure congress will take up this year. Dole, a Kansas Republican, said he is weighing ‘eight or nine different
options to limit or repeal leasing.’ He said he has discussed the matter with House Ways and Means Chairman Dan Rostenkowski addinq
that they agree that changes should be made to the leasing rules quickly. In a speech in Wichita, Kan., Dole warned that ‘corporations
entering into leasing deals after today do so at their own risk.’ A partial text of the speech was made available in Washington The tax
leasing rules which allow corporations to sell unusable tax benefits for cash have been highly controversial. There are six bills pendinq in
the senate to repeal or modify them and more measures have been introduced in the House. 10:32 AM.

9

2/ 1 9 Treasury Secretary Regan said it would be ‘extremely unwise for congress to repeal the leasing provision that was passed as part of
the omnibus tax bill last year. The leasing provision was designed specifically to ensure that as many companies as possible could use the
accelerated cost recovery system, Regan said. Regan said repeal at this time ‘could have a serious impact’ on severely stressed
industries such as steel and autos. Regan made his remarks after Sen. Robert Dole, R-Kansas, proposed repealing the provision. 4:33 PM.

By DOUGLAS R. HAWKINS
President
UCB Leasing Corporation
Des Moines, la.

HESE two press releases, a mere six hours apart,
only go to demonstrate the dramatic and swift
changes which have taken place in the leasing indus­
try in the past six months.
* With the passage of "the lessor’s bill of rights” (The
Economic Recovery Tax Act of 1981) came a period of
almost limitless opportunity for the leasing industry.
The quickest to take advantage of these new opportu­
nities were the investment bankers who arranged
^ B T s (Thx Benefit Transfers) between unrelated corpo­
rations. While the institutional lessors (many mem­
bers of the American Association of Equipment Les­
sors) were lounging on the beaches of Hawaii, these
^ blu e sueders” were structuring deals amounting to
aen billion dollars in reduced tax payments to the
TVeasury.
Quite slowly, the main body of the leasing industry
has evaluated the implications the ERTA and made
^hanges in their program to take advantage of this
major tax bill.
Quite clearly, the great majority of income generated
by the leasing companies due to ERTA has been earned
by those organizations which enbodied the section of
he bill which dealt with the sale of tax benefits from
one corporation to another. Also, the great majority of
the attention paid to us in the leasing business has
been caused by the TBT’s. Unfortunately, this atten­
tion has not in the least been beneficial, as can be noted
y Senator Dole’s remarks on February 19.
Without explaining the motivation of the TVeasury in

T


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

utilizing the leasing vehicle to effectuate the end of the
tax bill, we can see that the far reaching implications
were to throw our industry into revolution. Apparently,
this revolution is about to be countered by coup de
grace. No wonder the last leasing company representa­
tive could not give you a straight answer to your
apparently simple question!
This counter-revolution has been caused by the huge
deficits created by the sizable personal tax breaks and
increasing defense appropriations. Dave Stockman
(who never could figure out the numbers anyway),
before a friendly gathering of the senate budget com­
mittee, informed the studious group that the adminis­
tration was willing to give back some of the corporate
tax breaks, gained in August. As could be expected,
Senate Republicans led by Senator Dole (solely pres­
sured by their constituents) were all too ready to
attack the most visible of the tax relief plans. This, of
course, turned out to be the leasing section.
The basic problem behind the scenario is that a plan
which was envisioned to carry out the tax policies of
the new administration is being short-circuited by
political pressure. As stated earlier, the "blue suede”
sector saw a fast buck and took advantage of the new
law; but the intent of this law is sound and leasing
could make it happen. The slow moving nature of the
traditional lessors had just begun to implement the
law when the legislature, which had just passed the
bill, decided to take a second look.
Now we are in a state of flux. We have intended to
pass on to the general business sector with the "Safe
Harbor Provisions” the great benefit of the new leasing
bill; but now we are psychologically prohibited.
The advantages of leasing were evident before the
Economic Recovery Thx Act of 1981. This new law
made them more evident and more effective. Unfortu­
nately, the political realities of budget deficits and the
singular interest of its participants make it subject
to attack.
Personally, I favor the retention of the provisions of
ERTA and I feel that you will, too, after reading the
following articles.
N orthw estern Banker, March, 1982

18

Leasing — now a
community banker vehicle
W. SCOTT MORRIS
Second Vice President
First National Bank of
Omaha, Nebr.

EASING came of age for the community bank and
its customer with the passage of the Thx Recovery
Act of 1981. Prior to 1981, one of the biggest disadvan­
tages to leasing from the lessee standpoint was the
"end position” on the lease at the "fair market value
price.” Bank could only lease on a full payout lease,
resulting in the customer’s anxiety over the total cost
of his purchase of the equipment. The Thx Recovery Act
eliminated this problem, provided certain other re­
quirements were met. The lessor and the lessee can
agree on a purchase price at the end of the lease term.
The heart of the Thx Recovery Act as it relates to
leasing, however, was the investment tax credit. In
essence, the act said the ITC was a tradeable commodi­
ty that the purchaser of the equipment could use to
bargain for a lesser financing cost over the term of his
repayment period. The ease by which the lender and
the borrower can enter into a lease today should make
leasing a must for every community banker.
The margin of profits have come under stress as the
majority of liabilities have become either variable rate
or short term. We feel that the after tax flows of our

L

Leasing — a win/win deal
for custom ers and banks
By DANIEL A. LECLERC
President
Lease Northwest, Inc.
Minneapolis, Minn.

HE STAGE is set! The economy is the floor of the
stage. The bankers and their customers of the
country are the actors, the Economic Recovery Thx Act
of 1981 is the curtain. The name of the production is
"Bank Leasing in the ’80s.”
Lights, Camera, Action!
There is no question that the Economic Recovery Thx
Act of 1981 (ERTA) has created excitement in the
leasing industry; a shot in the arm for an industry
negatively affected by rising interest rates and disap­
pearing profits. The rules of the ball game have
changed significantly, and they now promote the easy

T


N orthw estern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

leasing activity over the years have helped us t o w
generate a much higher rate of return on assets and
equity.
"How do you qualify a lease customer?”, is a frequent
question I am asked. The answer, of course, depends ^
upon several factors and, much like any other type of
lending, is a credit risk factor. A simplified "rule of
thumb” answer that I sometimes give is: if the custom­
er cannot fully utilize the investment tax credit, or if
he has alternate methods of reducing his tax liability, f
then leasing should be beneficial to him.
Another important question asked is "How do I get
into the leasing activity?” This answer, like the one
above, is not simple but there are some basic points
that must be explored.
q
First, do you have anyone in your shop who has a
leasing background? If so, do you have an accountant
and an attorney who fully understand leasing? If the
answer to these questions is yes, then you are probably
ready to begin your leasing activity.
£
However, in most cases the answer will be no and, in
most cases, you will not want to incur the additional
expense of acquiring the above mentioned expertise. In
that case, there is emerging an alternate way of
entering the leasing field, in some cases, at modest if #
any expense at all. At least two companies in the
midwest offer a participation type program that en­
ables a community bank to participate with the leasing
company in a loan. The two will share the tax benefits
on the same ratio as their participation.
#
In our case, we provide complete structuring, docu­
mentation, closing assistance and complete reporting
information. This is all performed with no fees when
we participate in the transaction. We believe that
leasing is finally a financing alternative that each •
banker must make available to his customer, or run
the risk of losing one of the best "pieces of business”
that his customer can generate for him.
transferability of tax benefits from one party to
another.
This resurgence is especially true with the middle
market lessee where residual risks will disappear, and
purchase options at fixed prices will appear. No longer q
will your customer worry about what price must be
paid at the end of the lease to purchase the equipment.
The feasibility of leasing is magnified by the current
economy. Farmers, businessmen, and others are feeling
the pinch in profitability, even a lack of profit, and they f
cannot use timely the tax benefits generated when
equipment is purchased. More favorable depreciation
rules, which provide more tax deductions than before,
together with more investment tax credit, are going
unused. They are turning to leasing as a means of £
getting the best value for their tax benefits.
Leasing can provide a win/win situation for smaller,
local banks and their customers. Third party leasing is
a vehicle to provide customers a viable alternative in
financing equipment. It will free up working capital 0
lines of credit, already strained because of lack of
paydown. Leasing will also provide customers with
terms, generally at a fixed rate, which more closely
match the life of the equipment.
LEASING...
(Turn to page 72, please)

*

19

*The Role of Commercial Finance Firms
A N orthwestern B anker S urvey

When to call in an
•asset based lender

By JOH N H. OLSON
President
Banco Financial Corporation
Minneapolis, Minn.

NDER the current adverse economic conditions
U
worsened by persistently high level interest rates,
many small and medium sized companies are experi­
encing real trouble in maintaining profitable opera­
tions. Commercial loan officers must consider a wide
range of remedies to cope with the problems created by
this environment.
One choice might be the involvement of one of the
asset based lenders for they are often able to inaugu­
rate a more disciplined approach to the financial needs
of the borrower through the techniques they bring to
the lending situation. TWo key ingredients found in an
asset based lender are the in-depth evaluation of a
prospect before granting credit, and the intense
monitoring of the customer’s activities by experienced
staff members who have a smaller number of custom­
ers to serve than the typical bank lender.
When should a banker call in an asset based lender?
Here are some characteristics of a customer that may
signal this type of action:
1. Leverage exceeds 3 to 1
2. Unable to clean up short term debts
3. Unprofitable but not ready for bankruptcy
4. A criticized loan
5. Old cu stom er ex p e rie n cin g p ro fita b ility
problems
6. Existing customer considering making a large
acquisition
7. Leverage buyout where there is a limited invest­
ment but good collateral
8. Officer handling the account doesn’t want to
extend or renew the loan
9. Bank doesn’t have sufficient or experienced staff
to properly evaluate or monitor the collateral
10. Advances on accounts receivable are insufficient
to supply needed working capital
11. Loan requirements exceed the legal limit of your
bank
Banco Financial Corporation believes strongly in
working in partnership with banks. In fact, over 85% of

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

the loans that we are involved in have a bank
participant.
In times like these it is important that banks utilize
every resource available to them. Joining with an asset
based lender is one choice which we feel can fit many
situations.

Monitoring collateral
...of accounts receivable financing

By ALLEN J. OLSON
Regional Vice President
Barclays American/Business
Credit
Minneapolis, Minn.

HEN a bank provides a customer with accounts
W
receivable financing, it assumes responsibility for
monitoring the borrower’s financial status, and also
the loan’s source of repayment — the borrower’s
accounts receivable.
Close scrutiny of accounts receivable will assist the
borrower in keeping bad debts to a minimum, assure
the bank of high quality collateral, and minimize the
possibility of fraud.
Unlike fixed assets, receivables change constantly.
The accounts that secured a loan last month, last week,
and as recently as yesterday are replaced daily with
new receivables. How does the lender satisfy itself that
this revolving collateral continues to meet its quality
standards? Close and constant monitoring is the obvi­
ous answer.
A prudent lender must monitor collateral regularly
in several ways, including:
1. The review of borrower’s accounts receivables and
customers’ credit standing and payment histories;
2. Understanding the borrower’s selling terms and
the types of discounts offered. (Substantial dis­
counts can dilute the collateral base and reduce
the cash collected);
3. Knowing whether the borrower offers dating
terms. (Accounts which might be outstanding for
six months to a year are less liquid than 30-day
collateral and consequently increase potential
loan exposure);
4. Determining the existence of consigned sales
MONITORING COLLATERAL...
(Turn to page 72, please)
N orthw estern Banker, March, 1982

20

Acquisition financing
...m ak es dollars and sense

By DAVID F. HERRICK
Senior Vice President
Associates Commercial
Corporation
Chicago, 111.

I OWNED this company, I’d...” Almost every
IFexecutive
has made a statement along those lines

sometime during his or her career, but, in recent years,
particularly the past two or three, a lot of managers
have suddenly found themselves living their lifelong
ambition to be their own boss, running a large corpora­
tion. There has literally been an explosion of activity
in management buy-outs as the big conglomeration
push of the 1960s has begun unraveling.
Divestitures of operating units by major corpora­
tions reached a new nine-year high in 1981. While
most of the divestitures last year probably were pur­
chases by other corporations, there were a significant
number of deals, consistent with the national trend, in
which the divested unit became an independent entity.
The number of acquisitions nationwide continues to
increase.
Tremendous Opportunity to Bankers
These management buy-outs offer a tremendous
opportunity to bankers. With these loans, banks are
able to command above-prime returns and, by partici­
pating with a capable asset-based lender, such as
Associates Commercial Corporation, they greatly re­
duce risk. At the same time they normally develop a
long-lasting customer relationship. In almost all in­
stances, the new company formed as a result of the
management buy-out will require depository accounts
and other services such as payroll, trust accounts and
lock boxes. Thus, acquisitions allow a community or
regional bank, whatever its size, the chance to build a
lasting and profitable relationship with a customer
that was probably non-existent to that particular bank
prior to the acquisition.
Through our business loans division we have been
very active in leveraged buy-outs in the recent past,
including spinoffs from Chromalloy American, Sunstrand, Richardson-Merrell and Combustion Engineer­
ing, among others. In all of these cases the buyer put
up some cash, and we provided the needed financing in
participation with regional banks.
Banks are normally a primary contact point for
arranging acquisition financing; however, the high
debt-to-equity ratio characteristic of such financing
packages often precludes many banks from entering


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Federal Reserve Bank of St. Louis

into the transactions directly. The same is true of the ^
heavy funding requirements involved in acquisition
financing, which many times exceed the lending limits
of regional or community banks.
Acquisition Financing a Specialty
£
Even more important than these restrictions is the
fact that acquisition financing is a specialty unto itself:
Almost all loans must be collateralized, there are
critical legal considerations at the time of closing and,
of key concern is the careful monitoring of the progress %
of the newly-formed entity, especially in the early
months of operation when problems are likely to
develop. The road to success for the new owners
seldom is as easy as it appears to be, even to the
seasoned management team which had been running #
the company.
That’s why it is so important for the regional or
community bank to choose the right asset-based lender
when it decides to enter into an acquisition financing
package. Banks can profit handsomely by looking for #
opportunities to cooperate with asset-based lenders
which have considerable expertise in structuring and
administering the total financial package that is re­
quired to assure the success of the new venture.
Not all asset-based lenders are alike. Preferably, the •
bank should choose an asset-based lender with previ­
ous acquisition experience — a lending partner that
can provide competent service to both the customer
and the bank should it choose to participate in the
lending arrangement. The bank should strive to select #
a lender that complements its own banking services,
not one that represents a future competitor for profit­
able banking services. This is particularly important
these days when the concept of financial supermarkets
is in vogue and as more and more banks are looking to ^
expand by penetrating new markets.
Participation by Bank
Participations may well be the most important
aspect of the acquisition financing program. Through
participation, the bank can be involved actively in a
credit which it might otherwise have to decline, there­
by cementing its present and future relationship with
the new customer. Participation also provides the
customer with the all-important rate blend which
lowers overall financing costs, and it gives the bank a
first-hand insight into the customer’s financial needs
and performance, positioning the bank to step in to
take over the lending relationship when the customer
becomes qualified for full bank financing.
The bank should look for an asset-based lender that
will work with it, keeping it fully involved in the
progress of the credit. This is more than just financial
prudence...it’s business preservation. Close involve­
ment helps ensure that the bank builds that close
relationship that is its key to future business with the
new customer.
There are many problems that make acquisition
lending such a complex and specialized financial ser­
vice. Thus, "due diligence” is extremely important in
thoroughly investigating the buyer, the seller and the
target company. Bankers should take heed of all of the
potential problems or risk dire consequences but, then
again, the handsome rewards and abundance of oppor­
tunities make acquisition financing an attractive area

21

The Associates: People who can help keep your
commercial customers in your bank .

The Associates, with resources over
$5 billion, has been a leading
source of asset-based financing for
over sixty years. Much of our
success is due to our close working
relationships with banks.
Our skilled, experienced, moneyfor-business specialists can help
expand your bank’s ability to meet
the special needs of your customers
— and keep your commercial
customer in your bank. A key
consideration in today’s competitive
banking environment.
Perhaps a good customer needs
more funds than you can loan.
Or, you may choose to limit your
employment in a particular loan
without jeopardizing the banking
relationship. Just two of a variety of
ways an Associates’ bank participa­
tion program can help you and your
customers.
Our people have the experience
and desire to create the best
possible program for you and your
customers. Get to know The
Associates. Contact the regional
office near you. A Loan Development
Officer will meet with you to discuss
your requirements.
The Associates:
People Worth Knowing.

The Associates
A Driving Force in American Business

A s s o c ia te s C o m m e rc ia l
C o rp oratio n
B usiness Loans
55 E. Monroe Street
Chicago, IL 60603
(312) 781-5800 (Call Collect)
Business Loans Offices in Atlanta, Boston,
Charlotte, Cherry Hill (NJ), Chicago, Dallas,
Denver, Detroit, Houston, Cos Angeles, Miami,
Nashville, New York, St. Louis, San Francisco,
South Bend (IN), Tulsa.
Associates Commercial Corporation is a
subsidiary of Associates Corporation of
North America, a Gulf + Western Company.


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Federal Reserve Bank of St. Louis

N orthw estern Banker, March, 1982

22

“ Experienced acquisition lenders know financing options and*
have contacts to help buyers structure the added credit.”
that progressive bankers cannot afford to overlook.
Deadline Pressures
Acquisitions are usually time-oriented, perhaps be­
ing comparable to the fourth quarter of a close champi­
onship football game. However, it is imperative that
lenders never rush into a commitment to meet a
deadline if they have been unable to do a proper
investigation. For that reason, asset-based lenders
should be brought into the picture as soon as an
acquisition opportunity develops.
Short deadlines for buy-sell agreements and closings
are common. In some cases, the corporation selling the
division may have exhausted all of its potential buyers
when it finally turns to its own management, and the
corporation may be under the gun to come up with cash
for other deals. In other cases, conditional commit­
ments may be required at the buy-sell stage before the
lender will be allowed to make inspections of the unit’s
books and records.
This is when an experienced asset-based lender is
important to have as a teammate because it will be
better positioned to spot potential problems and risks
and to look for the right answers even before the
specific details of the acquisition can be flushed out. By
knowing the right questions to ask in advance, the
seasoned asset-based lender can help avoid the is­
suance of an unworkable commitment or the need for
lengthy and "deal-killing” restructures before the clos­
ing. Such expertise often is the only buffer between
receiving a commitment or not, and it definitely helps
build adequate protection into any commitment by
anticipating potential problems.
Buyers Need Financing Options
Buyers, particularly the present management
teams, are usually unsophisticated as to the financing
options that are available to them, and often they lack
financial counselors who are knowledgeable about
these options. The absence of being exposed to all the
options could result in a financing package that is less
than adequate to complete the acquisition, possibly
eliminating the client’s access to adequate credit to
sustain the business after closing. Experienced acqui­
sition lenders know financing options and they have
the knowledge and the contacts to help the buyers
structure the added credit. Seller notes, letters of
credit, long-term real estate mortgages and a variety of
other vehicles often can spell the difference between a
successful acquisition and a futile negotiating exercise.
Acquisition financing requires a multi-disciplined
approach. Obviously, asset values and financial perfor­
mance are important, but careful evaluation of the new
management’s experience, both as managers and as
people knowledgeable about the business they are
entering, is a must. Past trends and operating history
are only a gauge of future success. Adequate attention
must be directed to the development of realistic profit
and loss and cash flow projections. Furthermore, an
evaluation must be made of the services the parent
company had provided and the costs associated with
replacing those services. How much corporate over­
DigitizedNfor
FRASER
orthw
estern Banker, March, 1982
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Federal Reserve Bank of St. Louis

head really can be saved? How much new expense w ill®
there be? What are the real motives for the sale of the
business? In some cases, the seller may be aware of
market trends or long-range problems that the new
managers may be minimizing or even ignoring al­
together. Finding the real answers is not always easy.#
Yet, without the answers to questions like these, costly
and potentially devastating surprises may crop up only
months into the new relationship.
Another important consideration that must be dealt
with concerns the effect the acquisition will have o n #
suppliers, creditors, employees and even the commu­
nity. After all, the acquired company will be a new,
untested entity in the eyes of its creditors and the
public. What will the working capital requirements
be? Will adequate trade credit be available? Are there •
labor contracts or provisions that may radically change
the company’s performance? Will the employees and
community leaders support the new entity?
Reviewing Performance Is Critical
^
The most obvious place where an asset-based lend- ^
er’s special acquisition experience will pay off is in
reviewing the operating performance of the company.
Special care must be taken to confirm the past operat­
ing history. The auditors verification of the authen- ^
ticity of the financial statements must be made and
trends fully understood. It’s also important to pay close
attention to subtle changes in operations that may
have made the company more attractive as an acquisi­
tion candidate, but which could be unrealistic treat- ^
ment for an ongoing operation.
This is one area where we, as an asset-based lender,
feel we make a very important and positive contribu­
tion to the arrangement. Our auditors prepare a
detailed new account survey which analyzes virtually q
every facet of the company’s financial performance.
Once the acquisition is complete and the new entity is
operating, projections must be carefully compared with
actual figures. It is essential that lenders have the
knowledge and ability to understand the differences #
and their underlying causes during this critical first
year period.
Conclusion
In conclusion, there is just no substitute for acquisi- #
tion lending experience, so community or regional
banks would be well-advised to take advantage of this
experience rather than to learn the hard way by trial
and error.
It is expected that the volume of acquisition activity #
will continue at a record pace in the coming years; in
fact, current economic conditions may even accelerate
the trend. That means regional banks will have a
tremendous opportunity to cash in on the potential
market, particularly if they use the resources of a n #
experienced asset-based lender. When an acquisition
financing opportunity does knock, regional banks can
make money, aid their communities, and perhaps help
fulfill the lifelong dream of a manager turned entre­
preneur. And, that kind of rewarding business makes #
dollars and sense.
□

23

Y o u d o n 't h a v e t o
ru n in to it.
Those frustrating limits on your
ability to grant a loan. They don’t
have to b e barriers to accom m o­
dating new customers for the bank.
Or to arranging further credit
for a good customer whose
growth has outpaced his net worth.
You can break through those
walls with a simple call to your
nearby Heller office. And get a
Heller representative working on
those projects. Heller can even
help with a valued customer
suffering a tem porary reversal.
Calling on Heller’s lending is a
w ay to increase your bank’s port­
folio without increasing exposure.
And you benefit by keeping both
deposit balances and opportun­
ities to provide other profitable
services to your customers.
Let Heller turn the credit com ­
mittee’s “no” into just a setback,
not the final word.
At Heller, where there’s a wall
there’s a way.

HELLER
Financial Services
W alter E. Heller & Com pany, 105 W. A dam s St., C h ica g o , IL-50603 • Other Heller offices In: New York • Boston • Philadelphia • Montclair, NJ • Baltimore
Syracuse • M inneapolis • Detroit • G rand Rapids • C leveland • Kansas City • Atlanta • Charlotte • M iam i • Tampa • Birmingham • Colum bia, SC
Houston • Dallas • San Antonio • A lbuquerque • New Orleans • Phoenix • Tucson • El Paso • Denver • Salt Lake City • Los Angeles • Newport Beach, CA
San Francisco • Seattle - Portland * Spokane • Boise • San Juan, F:R. Heller services also a va ila b le in C a n a d a a n d twenty-three other countries.


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Federal Reserve Bank of St. Louis

N orthw estern Banker, March, 1982

24

ABA National Conference Integrates
Marketing, Compliance and Planning
FIRST-OF-A-KIND program —
the A B A National Conferences
on Marketing, Compliance and Plan­
ning — will be held May 23-26 at the
Hyatt Regency Embarcadero, San
Francisco, announced C.C. Hope,
Jr., A B A past president and con­
ference chairman.
“ With the intensified competitive
environment in the financial ser­
vices industry today, successful
bank planning strategies are more
important than ever to position
banks effectively,” Hope said, point­
ing out that the new combined con­
ferences will offer “ a broader base of
information, carefully integrating
planning with the bank’s marketing
and compliance perspective.”
Jerry Jordan, a member of the
President’s Council of Economic Ad­
visors, will speak on “ Reagan­
omics” on Monday, May 24, along
with Paul Nadler, professor of
finance at Rutgers University and
well-known banking lecturer, whose
keynote address is entitled “ Bank­
ing in the Post-Peanut Era.”
The A B A combined conferences
will appeal to bank CEOs and senior
management, as well as planning,
compliance and marketing officers.
The unique aspect of this program is
that the three individual conferences
— marketing, compliance and plan­
ning — will share general sessions
on issues impacting all bankers. In
addition, separate break-out ses­
sions will feature subjects of unique
interest to bankers in marketing,
compliance and planning. The range
of topics at the program will include
“ Closing the Gap Between Corpor­
ate Goals and Employee Needs,”
“ Social and Consumer Trends,”
“ Cost of Compliance,” and “ NonBank Competition.”

A

O p en s M ia m i T ru st O ffic e
Manufacturers Hanover Corpora­
tion has opened a new subsidiary,
Manufacturers Hanover Trust Com­
pany of Florida, located at 100 N.
Biscayne Boulevard, Miami. Manu-

ACORN

Registers

“ Accepted Sale Registers by Bank
Clerks Everywhere"
Tor info rm atio n w ri te

THE ACORN PRINTING CO.
Oakland, Iowa
DigitizedNfor
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Federal Reserve Bank of St. Louis

Tim e-Tem p Sign

facturers Hanover is the first out-ofstate bank holding company to open
a trust subsidiary under a Florida
state charter since the expiration of
the Federal moratorium.

C o rrec tio n !
In the feature presented in the
January N o r t h w e s t e r n B a n k e r on
“ C orrespondent B a n k in g ...C ity
bankers look at what’s ahead,” there
was an error in the comments con­
tributed by William F. Love, vice
president of the LaSalle National
Bank, Chicago.
In his remarks, Mr. Love said he
expects progress this year “ toward
allowing commercial banks to under­
write municipalities’ general obliga­
tion bonds.” That quote should have
said, “ toward allowing commercial
banks to underw rite revenue
bonds.”

D elu xe C h eck R eports
Record S a le s for 1981
Based on company statements for
the year 1981, which are as yet
unaudited, Deluxe Check Printers,
Incorporated will report record sales
of $504,036,023, an increase of
17.6% over last year’s $428,488,415,
according to Eugene R. Olson, presi­
dent.
Net income for the same period

Combining time and temperature with up­
dated commodity prices makes for a very
unique sign which the First National B an k#
of Blooming Prairie, Minn., has installed to
keep members of the community informed
of the price of corn and beans as well as the
time and temperature.
The unit, which was designed and manu­
factured by Daktronics, Inc. of Brookings,#
S.D., is operated within the bank by a sim­
ple console much like those used to oper­
ate an athletic scoreboard, according to
Kenneth Throm, senior vice president and
cashier of the bank.

was a new high of $55,687,793, up
25.3% over the year 1980 when earn­
ings were $44,455,888. Net income
per share was $2.43 compared to
$1.95 last year.

Plan Operations, Automation Meeting
H IR T Y -SIX concurrent pro­
gram sessions focusing on six
major areas of interest to bank
operations and data processing
senior managers will highlight the
largest, most comprehensive con­
ference of its kind to date, the 1982
National Operations and Automa­
tion Conference, June 13-16 at the
Los Angeles Convention Center.
Sponsored by the American
Bankers Association, NOAC ’82 will
offer concurrent session tracks
focusing on product management,
systems management, operations
management, transaction process­
ing, system s tech n ology, and
community bank needs. There will
also be subjects of special interest to
retail bank operations.
Co-chairmen for the 1982 NOAC
are Eric C. Andrews, executive vice
president of National City Bank,

T

Cleveland, OH, and Russell L. Fen­
wick, senior vice president of Bank of f
America, Los Angeles. The NOAC
planning committee chairman is
Gerald M. Czarnecki, executive vice
president, RepublicBank Houston.
Conference highlights already#
planned include seminars on retail
services technology, human and in­
formation resource management,
survival in a deregulated environ­
ment, a report on the results of th e #
A B A MICR Line Enhancement Stu­
dy, and the popular peer group ses­
sions for bankers from similar size
institutions and functional respon­
sibilities.
More than 400 exhibitors will in­
troduce the newest developments in
the field, constituting the largest ex­
hibit display of banking related
equipm ent and services ever
presented in one place.

25

• ABA Leadership Consensus Report
OLLOWING is the Statement
of Consensus reached by the
A B A Banking Leadership Confer# ence February 10-12 in Washington,

w

•

W

W

w

9

0

®

®

€1

F

D.C. It was adopted by a vote of
337-48 (with participation via
satellite of the Iowa, Minnesota and
Virginia Bankers Associations);

American Bankers Association will
T HE
seek in every possible forum and via

directed to remove all existing differentials,
all federal S&Ls would be permitted to orig­
inate, acquire, and hold up to 5% of their
assets in commercial loans if such loans are
made within the state where the S&L is
located or within 75 miles of the S&L’s home
office, and to accept demand deposits which
are tied to such commercial loans.
• At such time as Reg Q is phased out,
federal S&Ls and federal mutual savings
banks would be permitted to originate, ac­
quire, and hold an additional 5% of their
assets in commercial loans (for an aggregate
of 10%).
• Any federal S&L or mutual savings
bank wishing to originate, acquire, and hold
more than 10% of its assets in commercial
loans or 20% in consumer loans would be re­
quired to seek a bank charter as either a na­
tional or state chartered institution. As a
bank, the former thrift institution would
then have to comply with applicable state
branching laws, if any. In the event the
branches were prohibited, the institution
would be given two years to dispose of these
branches. If branches are allowed, they could
be retained. If holding company laws apply,
the branches would have to be converted to
holding company affiliates.
• In addition, all commercial banks
should at their option be permitted member­
ship in the Federal Home Loan Bank System
similar to the status now enjoyed by some
FDIC-insured mutual savings banks and life
insurance companies. This provides the op­
portunity for banks active in mortgage
finance to qualify for FHLBB advances and
loans. Also, banks should have the option of
converting their charters to federally insured
savings and loans.
Regarding the special powers requested by
the regulators to deal with troubled financial
institutions, ABA renews its previous sup­
port for the regulators' bill, which generally
is incorporated in S. 1720, with further
amendments suggested by the regulators (a
$1 billion threshold to trigger application of
the powers to failing banks and continued
regulation by the FDIC of mutual savings
banks converting to federal charters).
The determinant is whether the Congress,
the DIDC and the thrift industry show by
their actions a bona fide interest in working
with banking for our agenda for change. A
key measurement for this commitment will
be the DIDC’s March 22 decisions. If this
commitment is evident, banking is prepared
to reciprocate by considering a fiscally
responsible program for dealing with the lowyielding mortgage situation of all depos­
itories and by agreeing to the plan described
above for thrift asset powers.

every possible legislative vehicle the expansion of bank powers which is necessary to
make banking competitive in the 1980s. This
includes a permanent federal usury override,
a permanent override of state prohibitions of
due-on-sale clauses, significant relief from
banking’s regulatory burden (FIRA, Truth in
Lending, and CRA, for example) and all the
banking powers enumerated in A B A ’s earlier
responses to S. 1720 and in ABA's banking
agenda for change endorsed by the Banking
Leadership Conference.
The highest prerequisite is the removal of
impediments to the rational pricing of banking services — Reg Q, usury statutes and the
due-on-sale matter.
The Banking Leadership Conference reit­
erated its support for existing provisions of
S. 1720 which override state prohibitions of
due-on-sale clauses in mortgages; override
state usury statutes; authorize bank under­
writing of revenue bonds and offering of
mutual funds; substantively reform the
Truth in Lending Act; eliminate excessive re­
strictions in the Financial Institutions
Regulatory Act; liberalize national bank
lending and borrowing limits, real estate ac­
tivities and the treatment of bankers’ accep­
tances and of bank affiliates; and provide the
regulatory agencies with additional powers
they have requested to deal with troubled
depository institutions.
Looking beyond these provisions, which
currently are part of S. 1720, the Banking
Leadership Conference concluded that mod­
ernization of banking laws to permit local
banks to continue to serve the financial
needs of their customers and communities
must also include: authorization for banks to
offer a full line of insurance brokerage ser­
vices; to provide investment advice and to of­
fer full securities brokerage services; to make
equity investments in real estate (as all other
financial entities are permitted to do); and to
engage in real estate brokerage, development
and management activities.
Any acceptance by banking of any further
bank-like powers for thrift institutions is
dependent absolutely upon material progress
toward deregulation in the March 22nd
meeting of the DIDC. Such progress should
include establishment of a dependable
schedule for phasing out Reg Q and the dif­
ferential and the creation of truly com­
petitive, short-term deposit instruments.
Further, any acceptance by banking of any
bank-like powers for thrifts is dependent
upon Congressional support for banking’s
agenda for change. In any event, thrift in­
stitutions will have to make their own
political case for expansion of their asset
powers. To the extent that they are able to
make that case convincingly, the following is
a plan on which the members of the Banking
Leadership Conference would be willing to
seek wider agreement within the nationwide
banking community:
• Provided that the statutory interest
rate differential is repealed and DIDC


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Federal Reserve Bank of St. Louis

C o n tin e n ta l E s ta b lis h e s
N e w Leasin g S u b sid iary
C o n tin e n ta l I llin o is B ank
(Canada) Ltd., the Canadian bank­
ing subsidiary of Continental Il­

linois National Bank and Trust
Company of Chicago, has announced
the formation of a new wholly owned
leasing subsidiary, Continental Il­
linois Leasing Canada Ltd.
Continental Illinois Leasing
Canada will manage the mediumterm lease financing programs
previously administered by Con­
tinental Illinois Bank (Canada), The
new subsidiary was formed as a
result of the Canadian Bank Act
passed in 1980, which requires the
leasing of assets to be managed by a
subsidiary of a Canadian bank.
Continental Bank of Chicago was
one of four U.S. banks and 12 nonCanadian banks given permission
by the Canadian Government to
establish banking subsidiaries in Ju­
ly 1981. This was the first time
foreign banks had been allowed to
open banks in Canada since 1932.
Continental Illinois Leasing
Canada has assets of $500 million
and is managed by a board of direc­
tors consisting of three Canadians
and two U.S. citizens.

M o s le r S c h e d u le s T h ree
A n ti-C rim e S e m in a rs
Mosler Anti-Crime Bureau, the in­
dependent security education unit of
the Mosler Safe Company, has
scheduled three, two-day anti-crime
seminars in the United States and
four programs in Europe for this
year. 1982 represents the 23rd year
that anti-crime educational sem­
inars have been presented by this
organization. In the United States,
the seminars will be held in New
York City, March 24-25; Chicago,
April 28-29; and Kansas City, May
25-26. Seminars in Europe will meet
in Frankfurt, Germany, September
28-29; London, England, October
5-6; Paris, France, October 12-13;
and The Hague, Netherlands, Oc­
tober 20-21.
Each two-day program covers the
latest anti-crime information on at­
tacks against physical and electron­
ic security and the methods used by
experts to defeat the criminals who
use these methods. The programs
are lively give-and-take sessions
making full use of demonstrations,
training films, and tape recordings
of actual attacks in progress. The
seminars also include sessions
covering robbery, kidnap, extortion,
bomb threats, check fraud, and
counterfeit schemes.
N orthw estern Banker , March, 1982

26

Not bank-to-bank.
Person-to-person.
That's the National Boulevard Bank approach
to correspondent banking. Each of our
correspondent customers enjoys the personal
service of an individual account officer
especially involved with his customers'
particular goals and needs In today's
challenging business climate.
And, our very special kind of personal service
is a vailab le across a broad range of functions

in four basic areas - Credit and Financing
Services, Assets-Liability M anagem ent
Services, Operational and Clearing Services
and M anagem ent and Marketing Services.
If you'd like that kind of personal service in
those kinds of areas, the person to call at
National Boulevard Bank is H. Peter DeRosier
at (312) 836-6868. Make it person to person.

NATIONAL BOULEVARD
The Bank for the New Downtown.
400-410 N MICHIGAN AVE . CHICAGO, IL 60611
ONE ILLINOIS CENTER (111 E. Wacker). CHICAGO, IL 60601
(312) 836-6500 • MEMBER FDIC


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Federal Reserve Bank of St. Louis

27

ed the bank as vice president and
cashier. Katie Landis was promoted
to instalment loan officer and assis­
tant cashier.
Mr. William E. Froelich, Jr.,
owner of Froelich Memorial Homes,
has been elected to the board.

r

Illinois
J. A. Fitch, pres., Chicago
W. J. Hocter, exec. v .p ., Chicago

EFT C o n fe re n c e to be
H eld A pril 1 and 2
#

#

<§

#

®

Electronic Funds Illinois, Inc. will
be holding its second annual EFT
conference and vendor exposition
April 1 and 2 at the Marriott-Oakbrook Hotel, Oakbrook.
The two-day conference, “ EFTIllinois 1982,” will examine the
status of electronic banking in Il­
linois and national factors affecting
its development, and feature a wide
range of discussions on ATM net­
work approaches, national EFT
trends, ATM marketing programs,
EFT systems security issues and
various operational considerations.
EFT-Illinois 1982 will also include
a two-day exhibition of companies
specializing in EFT products and
services.
For registration information contact Electronic Funds Illinois, Inc.
at (312) 644-7088.

H arris Plans to Buy
R o selle S ta te Bank
Joins D e e rfie ld Bank
Raymond F. Seiffert has recently
joined the First National Bank of
Deerfield as a loan officer, according
to Alan M. Meyer, president.
M r. S e iffe rt was fo rm e rly
employed by a Chicago financial ser­
vices corporation.

G rid ley O ffic e rs N a m e d
Bob McNamara was recently
named executive vice president and
a director of First Bank & Trust Co.
of Gridley, announced John A. Witmer, chairman and president. Mr.
McNamara succeeds Don P. Sherrill
who took a position as president of
Forest City Bank & Trust Co., Iowa.
James E. Hanfland has also join-

Largest Banks in Illinois
EPOSITS and loa n fig u re s fo r Illin o is b a n k s re p o rtin g d e p o s its o f $200
m illio n o r m o re at y e a r-e n d are s h o w n in th e c h a rt b e lo w . C o m ­
p a ra tiv e fig u re s fro m a y e a r a g o are fe a tu re d .

D

S ta te B ank of H u n tle y
P ro m o tes T hree

(Last three figures omitted)

®

Paul Reed was recently promoted
1. Continental Natl. B&T, Chicago
to executive vice president and cash­ 2.
First Natl., C h ic a g o ....................
ier, and Betty Ahrens and Michael
3. Harris Bank, Chicago ................
G. Davis, vice president, of the
4. Northern trust, C h ic a g o ............
5. American Natl. B&T, Chicago . .
0 State Bank of Huntley.
6. LaSalle Natl., C h ic a g o ..............
Mr. Reed joined the bank in May,
7. Central Natl., C hicago................
1981, to replace the retiring Roy
8. Exchange Natl., C h ic a g o ..........
Bankes and was previously ex­ 9. Springfield Marine Bk..................
ecutive officer of the Bank of North 10. Lake View T&S, C h ic a g o ..........
11. Northwest Natl., C h ic a g o ..........
^ Aurora.
Ms. Ahrens has been with the 12. Bank for S&Ls, C h ic a g o ............
13. Lake Shore Natl., C h ic a g o ........
bank since 1965 and her main duties 14. Sears B&T, C h ic a g o ..................
involve internal auditing and opera­ 15. Citizens B&T, Park Ridge ..........
16. Natl. Blvd. Bank, C h ic a g o ........
tions.
^
Mr. Davis joined the bank in 1978 17. Glenview State Bk., Glenview . .
18. Commercial Natl., P e o ria ..........
and is in charge of the bank’s instal­ 19. First Natl., Evergreen P a rk ........
ment loan and marketing depart­ 20. First Natl. B&T, E vanston..........
ments.
21. Chicago-Toyoko Bk., Chicago..

T w o P ro m o tio n s Told
First National Bank of Evergreen
Park has announced the promotion
of Joseph C. Fanelli to senior vice
president and trust officer and Rita
G. Wozniak to vault department
manager.

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Federal Reserve Bank of St. Louis

Harris Bankcorp and the Roselle
State Bank and Trust Company
have announced the signing of a let­
ter of intent under which Harris
would acquire 100 per cent of the
capital stock of the Roselle bank.
The agreement calls for a cash
p u rc h a s e
t r a n s a c t io n
of
$10,090,000, or $210 per share for
each of the 48,048 Roselle State
Bank shares outstanding. Founded
in 1903, and located at 106 East Irv­
ing Park Road in northwest subur­
ban Roselle, the bank also has ser­
vice facilitites at 400 East Irving
Park Road, Roselle, and 1080 South
Roselle Road in Schaumburg. With
year end assets of $122.2 million and
deposits of $111.6 million, it is the
largest bank in its trading area.

22.
23.
24.
25.
26.
27.
28.
29.
30.

First Natl., S p rin g fie ld ..............
American Natl. B&T, Rockford .
Pioneer B&T, C h ic a g o ................
State Natl., E va n sto n ................
Mount Prospect State Bk............
Oak Park T&S, Oak P a rk ............
First Natl., S k o k ie ......................
First Natl., Des P la in e s ..............
Illinois Natl. B&T, Rockford

December 31, 1981
December 31, 1980
Deposits
Loans Deposits
Loans
$29,594,005$33,299,226$27,313,667$27,629,701
25,554,923 20,382,723 21,361,154 17,151,539
4,574,817 3,894,571 4,760,948 3,445,371
4,314,000 3,341,000 4,163,000 2,865,000
2,083,569 1,316,112 1,968,953 1,182,486
984,149
661,626
880,502
665,681
470,898
399,211
472,585
404,311
469,867
306,274
438,719
311,282
451,207
320,515
415,994
292,783
429,962
155,749
411,556
160,222
408,660
214,851
355,670
224,063
389,192
283,502
326,374
123,532
358,720
255,098
244,443
184,438
358,190
254,437
378,416
264,265
345,020
274,923
322,795
242,901
329,428
224,091
322,580
208,542
234,157
328,558
304,801
235,736
321,036
224,429
303,111
229,125
313,482
131,335
275,455
134,174
291,407
182,158
276,628
183,369
280,426
363,673
249,516
223,880
276,679
179,452
255,331
180,698
267,634
142,141
249,243
138,020
266,970
176,856
268,813
181,001
252,682
130,299
228,749
126,411
249,365
158,091
226,029
164,001
239,947
131,452
231,789
115,339
236,253
164,807
223,644
143,506
231,104
107,880
105,877
212,796
205,942
74,956
76,692
212,189
N orthw estern Banker, March, 1982

28

Illinois News

James R. Sieben
w as r e c e n tly
promoted to proca s h ie r,
instalm ent/credit
department, at
The M id -C ity
National Bank
of Chicago, an­
nounced K en ­
neth A. Skopec,
J. SIEBEN
president.
* * *

Three employees have been pro­
moted at Seaway National Bank of
Chicago, according to Walter E.
Grady, president.
Dorothy Lullen has been named
assistant vice president. She has
been with the bank 12 years, most
recently in personnel.
Wayne C. Ostling, who has more
than 30 years of banking experience,
has been named assistant vice
president/loan officer.
Lorette Yamini has been named
mortgage loan officer. She joined the
bank in 1981 and had previously
worked in all phases of real estate
lending.
* * *

The Federal Reserve Board
recently approved the merger of The
Mid-City National Bank of Chicago
into a bank holding company to be
known as Mid-Citco Incorporated.
Stock of the Mid-City National
Bank will be converted to shares of
Mid-Citco Incorporated and the
Mid-City National Bank will operate
as a wholly-owned subsidiary of
Mid-Citco.
* * *

president-elect of the 53 year ol(%
A m e ric a n S o c ie t y o f F arm
Managers and Rural Appraisers.
The Society is headquarterd in
Denver, Colo., with 3,500 members
throughout the United States.
0

Illin o is B ank C lo sed ,
Sold and R eopened
After its capital was exhausted^
following a series of bad loans, the
First National Bank & Trust Co. of
Tuscola, 111., was declared insolvent
on February 6 by the Comptroller of
the Currency and the FDIC was ap-^
pointed the receiver. The bank was
reopened Monday morning, Febru­
ary 8 as First National Bank of
Douglas County after FDIC ar­
ranged its purchase with two downstate bankers headquartered in
Springfield.
The bank, with $17.7 million
deposits, was the 10th bank failure
in Illinois in the past five years.
Purchasers were Coyne Richard­
son and Thomas W. Faller, who ar­
ranged the takeover deal with the
FDIC and have capitalized the new^
bank at $1.5 million. The purchase
required a premium of $526,000, and
$7 million advance from FDIC,
assumption of $15.2 million in
deposits and other liabilities, and,
FDIC retention of $10.7 million of
assets “ not suitable for sale.’’

Money Network, Chicago’s larg­
est shared network of automatic
teller machines, has added three new
members to its ranks, bringing the
total number of Chicago area par­
ticipants to 31.
New members include: First
Security Bank of Chicago with two
ATM s being installed in Water
Tower Place; The Chicago Bank of
Commerce with ATM s located in its N o rth ern M oves S o u th e a s t
new facility in the Boulevard
Northern Trust Corporation, ®
Towers North building, scheduled to
Chicago, has received final regu­
open in April, and at the bank’s
latory approval from the Federal
Standard Oil Building, and Melrose
Reserve Board to convert one of its
Daniel A. Smith has been ap­ Park National Bank.
Florida trust subsidiaries, Security ^
pointed executive vice president of
Trust Company of Sarasota, to a full w
the Main Bank
service commercial bank. The new
N a m e d C o n tro lle r
of Chicago, ac­
bank will be named Northern Trust
cording to Sid­
Kenneth R. Forman has joined Bank of Florida/Sarasota N.A.
ney J. Taylor,
Still pending is an application ^
the First National Bank of Deerfield
chief executive
as controller, according to Alan M. filed in October, 1981, to merge
officer.
N orthern Trust Interam erican
Meyer, president.
M r.
S m ith
In his new position, Forman will Bank, Northern Trust’s Edge Act
joined Drovers
be r e s p o n s ib le fo r fin a n cia l subsidiary in Miami, into a new na­
Bank in 1979 as
statements, budgets and audits. tional bank to be named Northern f
vice president in
Previously, he was a fiscal officer at Trust Bank of Florida N.A. into
the commercial
which Northern Trust Corporation
financial services institutions.
D.A. SMITH
lending depart­
intends to merge Security Trust
ment. He moved to the Main Bank
Company, Miami. This bank would
of Chicago in 1980 as senior vice
be able to offer a full range of 9
H e a d s Farm M a n a g e rs
president and senior lending officer.
domestic commercial and personal
Prior to his affiliation with the Cole- And Rural A p p rais ers
banking services as well as the trust
Taylor Financial Group, Mr. Smith
Jesse M. Dowell, trust invest­ services offered by Security Trust
was with Sears Bank and Trust for ment services, Continental Illinois Company and the international ser­
21 years where he was second vice National Bank and Trust Company vices provided by Northern Trust #
of Chicago, has been elected Interamerican bank.
president.

DigitizedNfor
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Federal Reserve Bank of St. Louis

29

Uncertainty.

These are uncertain
times. We have been
in a serious recession,
but we’re not sure
how deep it has been
or how fast we are
climbing out. Money
rates reached
unheard of heights,
but we don’t know
how much they will
drop or if they will drop
back to normal. Some of our
large, basic industries are in
trouble. Our economic stability is
dependent on a steady flow of
petroleum imports which may or
may not prove dependable.
All of this uncertainty makes
business lending very difficult.

However, SLT can
eliminate some of the
uncertainty that lenders
face by guaranteeing
your customers’ inventory
as pledged collateral.
For over 50 years, we
have worked with
s and commercial
lenders to collateralize
loans and make lending
safer and more profitable.
Give us a call; we can eliminate
uncertainty from your
loan portfolio.

SLT WAREHOUSE COMPANY
P 0 Box 242. St Louis, M o 63166 • 314/241 9750 • Offices in Maior Cities
N A T IO N W ID E


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Federal Reserve Bank of St. Louis

COLLATERAL

CONTROL

S E R V IC E S

Northwestern Banker, March, 1982

30

Illinois News

G le n d a le H e ig h ts
Bank P u rch ase A n n o u n c ed
A group of investors, headed by J.
McKeown, a Glen Ellyn resident,
has purchased
the First Secur­
ity Bank of Glen­
dale H e ig h ts,
1148
M ain
Street. In addi­
tion to being
elected chairman
he will assume
the position of
president. Ma­
jority interests
in the bank were purchased from
William Powers, Harold J. Ticktin,
and Paul Olsen.
For the past 20 years Mr.
McKeown has been owner of Ed
McKeown Chevrolet in Glen Ellyn,
along with his father Edward P.
McKeown and Howard V. Phalin.

1982 Illinois Group M eetings
Group
4
3
2
1

Date

Place

March 30
March 31
April 1
April 2

Emerald Hill, Sterling
Villa Olivia, Bartlett
Bon Vivant, Bourbonnais
Bismark, Chicago

month certificate.
The banks’s goal of $1 million was
reached during Thanksgiving week,
and the winner announced shortly
thereafter.

president/personal investment of­
ficer; Willard C. Brenner and Robert
E. Baker, assistant vice president
commercial loans, and Judith A #
Fisher, personnel officer.

E lected to Board
Fred L. Drake, a member of the
trust department of the Commercial
National Bank, Peoria, has been
elected to the board of The Bank of
Carlock.

P ro m o ted in S terlin g
W in n e r A n n o u n c ed
Frances Emmons of Crestwood,
was the lucky winner of a Hawaiian
vacation for two in Crestwood
Bank’s “ The More You Save the
Better Your Chances” saving pro­
motion which began October 1,
1981.
Crestwood Bank gave customers
one chance (up to 10) at the
Hawaiian trip for every $1,000 they
deposited into an All Saver or six-

Central National Bank of Sterling
recently announced the following
promotions according to Don E.
Cousins, president:
Andrew R. Cullum, executive vice
president and bank director; James
E. D illon , senior v ice president/agriculture and real estate;
William R. Hoefler, vice president
and controller; John R. Kuczynski,
vice president and bank attorney;
Stephen M. Bryan, assistant vice

ILLINOIS Commissioner of Banks William
C. Harris presents organizers of the Col­
onial Bank of Schaumburg with their bank
charter. (Standing I to r) James Trunck, v.p.,
Colonial Bk. & Tr., Chic.; Glen Marino,1
v.p.-finance, First Colonial Bancshares,
Chic.; (seated I to r) Dr. Jesse Soltis, Or­
thodontist, Barrington; William C. Harris,
and C. Paul Johnson, pres., Colonial Bk. of
Schaumburg and chmn., Colonial Bk. & Tr.
of Chic.
1

“ BANKNET” System Announced
S T A T E W ID E netw ork for
teleconferencing educational
programs to members has been an­
nounced by the Association for
Modern Banking in Illinois.
The system, known as “ BANKNET,” will connect 17 major cities
where specially designed classrooms
will be located to administer educa­
t i o n a l p r o g r a m s for A M B I
members.
“ This is the first statewide com­
munications system offered on a per­
manent basis by a state banking
trade association, linking major Il­
linois cities on a 24-hour basis
throughout the year,” according to
AM BI President James B. Watt.
“ We anticipate a significant finan­
cial savings to our membership
regarding the escalating costs of
participating in educational and in­
formational programs,” he said.
orthw
estern Banker, March, 1982
DigitizedNfor
FRASER
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Federal Reserve Bank of St. Louis

“ Our members will be offered a
simultaneous program with spea­
kers located in one classroom, either
in Chicago or Springfield; the par­
ticipants will be able to hear the
same lecture at the same time and
also to interact with the speakers
and fellow students in small-class­
room settings, without disturbing
classes in other cities.” Watt said.
The system will be operated in
conjunction with “ LAW N ET,” a
service of the Illinois Institute of
Continuing Legal Education.
C i t i es
connected
by
“ BAN KN ET,” besides Chicago and
Springfield, are: Bloomington, Can­
ton, Carbondale, Champaign, Fairfield, Galesburg, Geneva, Mt. Ver­
non, Paris, Peoria, Pontiac, Quincy,
Rockford, Rock Island, and Ster­
ling.

C olonial Bank of Schaum burg
G ra n te d S ta te C h a rte r
The Colonial Bank of Schaum-^
burg was granted a state charter on
December 30, 1981, by the Illinois
Commissioner of Banks and Trust
Companies, William C. Harris, it ^
was announced recently by C. Paul
Johnson, president of the new bank.
Capitalized at $2.25 million, the
bank will open June, 1982, in the
Manulife Building in the Schaum-^
burg Corporate Center, at Higgins
and Meacham Roads. The new bank
will be affiliated with “ the Colonial
Group” of banks which includes:
Colonial Bank and Trust Com pany^
and the All American Bank, both of
Chicago, and the Northwest Com­
merce Bank, Rosemont.
Mr. Johnson is also chairman and
chief executive of the group’s tw o^
Chicago banks.

31

5 O L D S T Y L E C O IN W R A P P E R
A U T O M A T IC C O IN W R A P P E R
B a s ic c o in w ra p p e r in e x tra s tro n g k r a ft s to c k . P rin te d in 6
A m o u n ts a n d d e n o m in a tio n s a u to m a tic a lly i n d i c a t e d b y
d if fe r e n t s ta n d a rd c o lo rs to d if f e r e n t i a t e d e n o m in a tio n s .
p a te n te d " r e d b o rd e re d w in d o w s ” . A m o u n t s in w in d o w s
T r i p le d e s ig n a t io n t h r o u g h c o lo rs , p r i n t i n g a n d le tte rs .
a lw a y s in re g is te r . . . e lim in a te s m is ta k e s . A c c o m m o d a te s
T a p e re d edg e s.
a ll c o in s fro m l c to $1.00.
6
K W A R T E T C O IN W R A P P E R
T U B U L A R C O IN W R A P P E R
W ra p s 4 d e n o m in a tio n s in h a lf size p a c k a g e s . A m in ia tu r e o f
E s p e c ia lly d e s ig n e d fo r m a c h in e f i l l i n g . . . a re a l tim e -s a v e r.
th
e p o p u la r " A u to m a tic W ra p p e r” . . . 25c in p e n n ie s , $1.00 in
P acked fla t. In s ta n t p a te n te d “ Pop O p e n ” a c tio n w ith fin g e r
n ic k e ls , $2.50 in d im e s , $5.00 in q u a rte rs .
t ip p re s s u re . D e n o m in a tio n s id e n tifie d b y c o lo r c o d in g . . . 6
d if fe r e n t s ta n d a rd c o lo rs .
7 F E D E R A L B IL L S T R A P
P a cka ge c o n te n ts c le a rly id e n tifie d on fa c e s a n d e d g e s b y
R A IN B O W C O IN W R A P P E R
c o lo r c o d e d p a n e ls w ith in v e rte d a nd re v e rs e fig u re s . M a de
C o lo r co d e d fo r q u ic k , e asy id e n tific a tio n . Red fo r p e n n ie s . . .
o f e x tra s tro n g s to c k to a s s u re u n b ro k e n d e liv e rie s . O n ly p u re
b lu e fo r n ic k e ls . . . g re e n fo r d im e s . . . to in d ic a te q u a n tity
d e x trin e g u m m in g used.
a n d d e n o m in a tio n s . . . e lim in a te s m is ta k e s . T a p e re d e dg e s.
8 C O L O R E D B IL L S T R A P
D U Z IT A L L C O IN W R A P P E R
E n tire s tra p is c o lo r c o d e d to id e n tify d e n o m in a tio n . P rin te d
E xtra w id e . . . e x tra s tro n g . D e sig n e d fo r a re a s w h e re h a lv e s
a m o u n t a p p e a rs on to p a n d b o tto m o f p a c k a g e . E xtra w id e
a re w ra p p e d in $20.00 p a cks . . . " r e d b o rd e re d w in d o w ” fo r
fo
r m a rk in g a n d s ta m p in g . E xtra s tro n g s to c k fo r s a fe d e liv e ry
e ase o f id e n tific a tio n . A c c o m m o d a te s $20.00 in d o lla rs , $20.00
a n d s to ra g e . P u re d e x trin e g u m m in g .
in h a lv e s . T a p e re d e dg e s.
9 B A N D IN G S T R A P S
Id e a l fo r p a c k in g c u rre n c y , d e p o s it tic k e ts , c h e c k s , e t c . . . . d o n o t b re a k
o r d e te rio ra te w ith age. Size 10 x % in c h e s a n d m a d e o f s tro n g b ro w n
K ra ft s to c k w ith g u m m e d e n d fo r ease o f s e a lin g . P acked 1000 to a c a rto n .
SEE

THE

C. L . D O W N E Y


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D E A L E R

OR

COMPANY

•

S E N D

FOR

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S A M P L E S

MISSOURI
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32

W h at th is sym bol m eans in th e Upper M id w est.
INSTANT CASH DEBIT
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S NORTHWESTERN
M National Bank
XXJ O f M inneapolis

An Affiliate of Northwest Bancorporation

Member FDIC

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Minnesota News

33

Richfield Officer Named

r

Minnesota
R. J . Welle, près., Bemidji
T. L. Jeffers, exec. v .p ., Minneapolis

Crystal Bank Elects Two
J.J. Choromanski, president of
Crystal State Bank, has announced
the election of Michael S. Higgins as
executive vice president and Paula

Mr. Schlagel joined the bank’s staff
in 1978 as commercial loan officer.
Mr. West, who has been with the
bank since 1973, has served as assis-

John L. Simpson has been named
trust operations officer for Richfield
Bank & Trust Co.
M r.
S im p son
joined the bank
in March of 1981.
His financial
background in­
cludes positions
as trust officer
and loan officer
wtih banks in
Colorado, and he
J.L. SIMPSON
is a graduate of
University of Northern Colorado,
Greeley.

Marshall Addition Told

M.S. HIGGINS

Thomas J. LeDuc has joined
Western Bank & Trust Co. of Mar­
shall as assistant
vice president in
consumer loans.
His duties will be
supervision of
the con su m er
loan department.
He has had
previous exper­
ience at the Hill­
top
N ational
D
n
T.J. LE DUC
Bank in Casper,
Wyoming, and Beneficial Finance in
Colorado.

p.M. MITCHELL

()i M. Mitchell as a consumer loan of­
ficer.
Mr. Higgins moved to Crystal
State Bank from Midland National
Bank in 1980 as vice president in
# charge of commercial loans. He will
continue as senior commercial loan
officer.
Ms. Mitchell entered her banking
career in 1977 as a loan secretary
# with Crystal State Bank, and be­
came consumer loan rep in 1980.

Appointed in Bemidji
First National Bank of Bemidji
has announced the appointment of
Marshall D. Froyd to instalment
loan officer. Mr. Froyd joined the
bank staff in 1979.
Betty L. Ol­
son was also ap­
pointed to real
estate loan de­
partment man­
ager, Richard L.
Rierson to in­
stalm ent loan
department
manager, Dennis
L. Schlagel to
M.D. FROYD
senior commer­
cial loan officer and David B. West
to commercial loan officer.
Ms. Olson has been with the bank
15 years. Mr. Rierson began his
career with First National in 1973.

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

D.L. SCHLAGEL

D.B. WEST

tant vice president in the real estate
loan department the past four years.
Dr. Frank A. Goodell, associate of
Stubbins, Goodell, Wellner Dental
Group, was elected to the board to
replace Dr. A.C. Gilmer, who recent­
ly retired.

Named A.V.P. and Mgr.
The Marquette State Bank of Col­
umbia Heights recently announced
the promotion of
Michael Bufala
to assistant vice
presid en t and
manager of its
Fridley office.
M r. B u fa la
joined the bank
in 1978 as a loan
officer. Prior to
jo in in g
M a r­
q u e tte
S ta te
M. BOTALA
Bank, he spent four years with a
finance company.

Fosston Promotions Told
Lynn H. Siverson, president of
Farmers State Bank, Fosston, has
been promoted to president and
chairman. Other promotions in­
clude: D.L. Lundquist to executive
vice president, Paul Voxland to
assistant cashier and Lorraine Perry
to computer operations officer.
Mr. Siverson joined the bank in
1946, made assistant cashier in
1952, cashier in 1958 and was
elected president in 1964.
Mr. Lundquist joined the bank in
1962 and was elected vice president
in 1964. Mr. Voxland started at the
bank in 1981 and Ms. Perry in 1976.
Also at the bank, Robert L.
Anderson was elected to the board
to fill the vacancy created by the
death of LeRoy E. Voxland.

Norwood Elects Cashier
Citizens State Bank of Norwood,
has announced the election of
Gladys Pedersen to cashier. Ms.
Pedersen has been employed with
the bank 23 years.
Northwestern Banker, March, 1982

34

Minnesota News

MBA Pres. Bob Welle (left) and Exec. V.P. Truman Jeffers (right) welcome Minnesota’s Lt.
Gov. Lou Wangberg, who gave the keynote address at the MBA Senior Bank Management
Conference in Minneapolis last month.

At MBA Conference

Senior Bank Officers Are Briefed on
Legislation and Management Programs

B

ANK EXECUTIVES attending
th e
M in n e s o ta
B a n k ers
Association’s 21st Senior Bank
Management Conference at the Hy­
att Regency Hotel in Minneapolis
last month had a mixed diet of fed­
eral and state legislative reports, ex­
ecutive management planning ses­
sions, M BA program reports, and a
dinner meeting with members of the
Minnesota Legislature.
Their social hour and dinner meet­
ing with legislators was especially
timely for it provided an opportuni­
ty to discuss personally some key
financial legislation that was cur­
rently under consideration in com­
mittees and in floor action. Al­
though there was no formal program
presenting M BA views, M BA Presi­
dent Robert J. Welle, chairman of
First National Bank, Bemidji, in­
vited the majority and minority
speakers in the House and Senate to
address the dinner gathering briefly.
One thing that was evident from
remarks made was the respect ac­
corded the M BA officials who repre­
sent the association in statehouse
lobbying.
The keynote address at the open­
ing session the first afternoon of the
Conference was delivered by Lt.
Gov. Lou Wangberg, who is an an­
nounced Republican candidate seek­
ing the office of Governor, following
announcement by Gov. A1 Quie that
he will not stand for reelection. In

Northwestern Banker , March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

By BEN HALLER, JR.
Editor and Publisher
his talk, he noted that while Min­
nesota is 18th in the nation in
earned income, it ranks 44th (after
all taxes are paid) in the percentage
of personal income remaining, and
that ranking, he said, is reportedly
down to 48th after recent tax breaks
took their effect. He blamed the poor
positioning on high workmen’s
comp rates and high corporate tax
rates.
“ Now we have a watershed time,’ ’
he observed. “ Decisions need to be
made. We have a unique combina­
tion of things here that gives us op­
timism. We should view ourselves as
being in the center of the world. We
have an air center, a shipping center,
foodstuffs, with a balance of people,
ideas and resources not available
elsewhere. We can succeed if we get
government out of the way — out of
the disincentive business. We veiw
ourselves in too narrow a time span,
too narrow a view. We have great
potential if we will but see ourselves
in Minnesota.’ ’
The Lt. Gov. concluded his ap­
pearance by responding to a ques­
tion, “ We are not going to have a
meaningful tax reform until we have
a Republican Governor and a Re­
publican legislature.’ ’
A report on Federal Legislation

featured a brief report from A B A *
State Vice President James T. Gowan, president of First National
Bank, Chaska, who described the
process followed in the ABA Bank­
ing Leadership Conference. That {
Conference had just concluded, with
a pilot program of broadcasting it
via satellite to three spots in the na­
tion, including Minneapolis and Des
Moines, and more than 70 Min­
nesota bankers from around the
state took part in the Washington,
D.C., proceedings via the remote
hookup.
Rollie McClellan, chairman of the
A B A Task Force on Thrift Institu­
tions and president, The Bank of
Wisconsin, Janesville, delivered the
report his Task Force has turned in­
to ABA. It reviewed the S&Ls ef­
forts to extract themselves from the
desperate situation in which they
find themselves today, and the legis­
lation and regulatory approach be- (
ing pursued by the FHLBB chair­
man. None of these efforts are
geared to yielding the quarter per­
cent differential S&Ls presently
hold by law over banks, yet they (
seek bank help in resolving legis­
latively the problems they have.
M BA Executive Vice President
Truman Jeffers also commented on
the Leadership Conference tele­
conferencing pilot, confirming it was
most successful with 77 bankers —
about 10% of the banks in the state
— taking part. He said he hopes this
type of conference will continue and
that more banks can be a part of
such a “ hands on’’ conference. “ We
of the M BA will be looking at ways
to expand this process,’’ Mr. Jeffers
stated.
Mr. McClellan went over in detail
the assumptions developed by his
Task Force for ABA, those assump­
tions stating the condition of finan­
cial institutions today. From those
assumptions, and the two days of
discussion at the Leadership Confer­
ence, the A B A consensus statement
was drawn up, which Mr. McClellan
then detailed to the audience.
Basically, it sets forth a list of
banker demands that must be met
for A B A cooperation with S.B.
1720, which would grant new
powers to S&Ls in an effort to help
them.
The rundown on state legislation
was handled by John S. Jackson,
M BA general counsel. M BA Legis­
lative Committee Chairman A. Wil­
liam Sands, president of Western

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Federal Reserve Bank of St. Louis

36

Minnesota News

LEFT—James T. Gowan, ABA state v.p., and pres, of 1st Natl., Chaska; Rollie McClellan, chmn. ABA Task Force on Thrift Institutions, and
chmn. & pres., Bank of Wisconsin, Janesville, and John P. Ingebrand, MBA 1st v.p., and pres., Kanabec State Bank. RIGHT— Martin Chorzempa, chmn. MBA Bank Mgmt. Comm., and pres., Richfield B&T; George Sugden, chmn. MBA Bank Mgmt. Education subcommitee, and pres.,
Northwestern Natl., Mankato; James Baker, pres., James Baker & Co., Oklahoma City, Okla., and Wayne Berthiaume, MBA adm. v.p.

State Bank, St. Paul, was unable to
take part as planned since his father,
A.W. Sands, chairman of the bank,
had died the previous day.
On the second morning’s agenda
was a rapid-fire coverage of AssetLiability Management by James
Baker, president of James Baker &
Co., Oklahoma City, Okla., and a
banker in that state. His review of
more than 70 charts outlined for ex­
ecutive officers the critical need for
such management procedure today.
Among the findings he presented
was that while Oklahoma is the
most profitable banking state in the
nation based on net interest margin,
Minnesota is at the bottom with
3.48% NIM because of its low usury
ceiling.
James Haugh, partner in Chicago
for Peat, Marwick, Mitchell & Co.,
covered Strategic Planning for Com­
munity Banks — Tax Aspects. This
was followed by a discussion of
M B A ’s Workers Compensation Plan
by George Celusta, M BA insurance
consultant.
Closing out the second morning’s
program was an address on Com­
munity Banking — It’s a Personal
Matter, by Charles A. Bruning,
chairman of the A B A Community
Bankers Division and president of
the Edge wood Bank in Countryside,
111. Mr. Bruning listed five basic
rules for dedicated athletes who are
committed to achieving perfection
in their particular sport, and related
these same basic rules to the com­
munity banker who is committed to
serving his community.
At the final afternoon session,
Richard E. Gandrud reviewed for the
executives the formation and current
planning of Mid America Bank Ser­

Northwestern Banker, March, 1982
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Federal Reserve Bank of St. Louis

vices Company (MABSCO), which is
waiting for SEC approval to begin
marketing its Money Market Fund
for commercial banks in the 13
states making up MABSCO. Mr.
Gandrud is past president of the
M BA and president of Pope County
Bank in Glenwood. He is also presi­
dent of MABSCO. The newly formed
group representing 13 state banker
associations is working on several
other programs of common interest
to the affiliated groups.
The subject of Personnel Manage­
ment was covered by Thomas J.
Skinner, chairman of the M BA
Bank Management Personnel Sub­
committee, and vice president at
American National Bank & Trust
Co., St. Paul.
The scheduled final speaker was
the well-known Jack Whittle, chair­
man of Whittle, Raddon, Motley and
Hanks, financial consulting and
marketing firm headquartered in the
Chicago suburb of Wilmette. Bad
weather kept Mr. Whittle on the
ground in Tulsa, Okla. However,
since the audience had many ques­
tions held over for Mr. Baker and
Mr. Bruning, those two men con­
sented to conduct an open question
and answer session that completed
the program.
□

Supervisory Training
Workshops Scheduled
The Minnesota Bankers Associa­
tion has scheduled a series of 10 Su­
pervisory Training W orkshops
starting with March 24 and con­
ducted one day each month through­
out the balance of 1982. The first
meeting will be March 24 at the
Radisson Inn, Plymouth.

Wayne Berthiaume, M BA admin­
istrative vice president, emphasizes
that these special sessions “ are not
a traditional learning concept.’’ The
goal of the workshops will be to pro- •
vide bank supervisory personnel
with the management tools to
become more efficient and produc­
tive managers of people.
A unique feature of the four-part #
workshop is the follow-up. The reg­
istrant’s immediate supervisor will
receive a letter prior to the
workshop, outlining areas to be rein­
forced prior to and following the ses- •
sion. The participants then will
receive four mailings following the
sessions on strengthening the skills
learned at the workshops. Partic­
ipants also will receive a completion •
certificate.

Promoted in Albert Lea
At First Bank - Albert Lea
Richard Davis was recently pro­
moted to assistant vice president,
commercial lending and Paul Mos­
ley to assistant cashier.

Elected A.V.P. in Gonvick
Grace E. Larson and Bruce R.
Byers were recently elected as assis­
tant vice president at the Northern
State Bank of Gonvick.
#

Mapleton Promotes Four
The following staff promotions
were recently announced at the First
National Bank of Mapleton:
Galen Reding, agricultural repre­
sentative and assistant vice presi­
dent; Shirley Runke and Evangeline
Stevens, assistant vice presidents,
and J.F. Forland, customer service
officer and security officer.

Ifyou think your correspondent
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maybe its time you severed the ties.
Sometimes, getting the answers you need from
your correspondent banker can be a frustrating
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to your loss of a customer.
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you along. Because most of our business
as a bank com es from dealing with businesses
and other banks. So, frankly, w e’re willing
to put a lot of effort into making
our relationship with you work.
W e’ve organized our bank
in a way that allows you to
deal directly with a decision
maker, rather than having
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committees. Our correspondent
team is dedicated to responding to
your needs quickly. And, our
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So the next time you feel like
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National Bank correspondent team,
toll free at 1-800-752-4200.* And see
how the bank for business can
go to work to improve yours.
*In North and South Dakota, call 1-800-328-8678.

M idland national
Bank Of Minneapolis
An Affiliate of Northwest Bancorporation

Main Bank

401 2nd Avenue South • 372-7000

Banco

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Federal Reserve Bank of St. Louis

38

Minnesota News

Marquette National Acquires F&M to
Become 4th Largest Bank in Minnesota

F

ARM ERS and Mechanics Sav­
ings Bank of Minneapolis and
The Marquette National Bank of
Minneapolis have combined to cre­
ate the fourth
largest bank in
Minnesota, with
deposits in ex­
c e s s o f $ 1.1
billion. With ap­
proval from Min­
nesota Commis­
sioner of Banks
Michael J. Pint,
the FDIC board
C.R. POHLAD
and the Federal
Reserve Bank of Minneapolis, the
merger of F & M into Marquette
took place February 21, ending
several days of speculation about
the possibility of an out-of-state
holding company buying F & M, as
authorized recently by Minnesota
state legislature and regulatory
authorities.
As Minnesota’s only mutual sav­
ings bank, F & M was experiencing
severe problems due to its loan port­
folio being tied up in lower yields
from home mortgages, the business
mandated by its charter.
The new bank, F & M Marquette
National Bank, opened the following
morning, February 22, utilizing all
locations of both institutions. It is
anticipated that F & M ’s headquar­
ters offices will be consolidated into
M a r q u e tte ’ s d ow n tow n h ea d ­
quarters offices.
In addition to the two downtown
main offices, F & M Marquette Na­
tional has the former F & M ’s
facilities in Brooklyn Center and
Edina, as well as Marquette’s two
skyway facilities, a downtown auto
bank and a facility in Bloomington.
The new bank, the fourth largest
in Minnesota, has combined depos­
its in excess of $1.1 billion, placing it
behind Northwesten National Bank
and First National Bank, both of
Minneapolis, and First National
Bank of Saint Paul. Bank Shares,
Inc., the parent of Marquette, now
becomes the third largest bank
holding company in the state and
the Ninth District with $1.5 billion
deposits.
Bank Shares, Inc., established in
1940, consisted of Marquette Na­
tional Bank, Marquette Lake State
Bank and Marquette National Bank

Northwestern Banker, March, 1982
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Federal Reserve Bank of St. Louis

at University. Marquette State
Bank of Columbia Heights joined
Bank Shares in 1954 and Marquette
Rochester was added in 1972.
Carl R. Pohlad, president and
chief executive officer of Marquette
National, continues in those posi­
tions with F & M Marquette Nation­
al Bank. He said, “ This association
is the beginning of an entirely new
era in Minnesota banking. With our
combined deposit strength, there is
now a third major local banking
organization, and that’s going to
result in dramatically increased
competition with Minnesota’s bank­
ing com m unity. B y brin gin g
together our mutual strengths, we
will be better able to serve our
customers’ growing needs, and also
meet the banking challenges of the
future.’’
His statements met with the con­
currence of Henry S. Kingman,
president and chairman of F & M
since 1969, who stated, “ Not only is
this new bank a great deal larger as
a combination, but it now will be
able to provide more convenience
and more strength along with the
new services.’ ’
Mr. Kingman said that at 1981
year-end, F & M was the nation’s
45th largest mutual savings bank,
with deposits of $825 million and a
net worth of $41 million — over 4%
of assets.
Mr. Pohlad and Mr. Kingman em­
phasized at a news conference an­
nouncing the merger that all ser­
vices of both institutions would be
retained. It was stated that the new
bank would be beneficial to cor­
respondent bank customers because
of the greatly expanded legal lend­
ing limit, more than double Mar­
quette’s previous limit. This would
aid commercial lending as well, it
was stated.
Mr. Pohlad served as president of
Chicago Lake State Bank (now Mar­
quette Lake State), and was vice
president at Marquette National
starting in 1950, then executive vice
president before being named presi­
dent of Marquette in August, 1955.
Mr. Pohlad is a well-known fig­
ure in midwest banking circles. A
native of West Des Moines, la., he
was graduated from Gonzaga Uni­
versity in Spokane, Wash., where he
was an outstanding football player.

He served in the infantry in Worldi
War II and received the Purple
Heart with two Oak Leaf clusters,
the Bronze Star with an Oak Leaf
cluster, and a battlefield commis­
sion for valor.
□ (

Paul Lindholm Retires
PAUL LINDHOLM, senior
■ vice president, consumer and
branch banking, at Northwestern *
National Bank of Minneapolis, has
elected early retirement effective
March 31, 1982,
after 34 years of
service.
Mr. Lindholm,
who joined the
bank as a teller
in 1948, spent 25
y e a rs o f his
career in North­
western’s corre­
spondent bank­
C.P. LINDHOLM
ing department,
which he headed up from 1968 to
April, 1977, when he was named
head of the retail banking group.
His career promotions have in­
cluded election to assistant cashier,
in 1953, assistant vice president in
1961, and vice president in 1964. In
1974 he was elected senior vice pres­
ident.
Widely known in regional banking,
circles, Mr. Lindholm, a long time
participant in Minnesota Bankers
Association activities, served as
that organization’s president from
1976 to 1977. He was also active in<
the American Bankers Association
having served three terms on the
A B A Governing Council. In 1971,
he was one of the original members
of the executive committee of cor-i
respondent banking of the A B A and
was chairman of the National Cor­
respondent Conference in 1974 in
Atlanta, Ga. He and his wife,
Marlys, have been familiar figures i
at state and national banking con­
ventions.
Mr. Lindholm also served eight
years as a commissioner on the Hen­
nepin County Park Reserve District. <
Mr. Lindholm, whose family has
had an ownership position in the
State Bank of Maple Plain, Minn.,
for many years, said his retirement
will permit him to increase his in- 1
volvement as president of that bank.
Mr. Lindholm’s father was the
late Paul F. Lindholm, who died last
fall at the age of 94, and was retired
chairman of the State Bank of
Maple Plain.

C

39

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1982

40

Minnesota News

Promoted in Eveleth

Two Promoted in Hastings

Robert P. Hatten, president of
First Northwestern National Bank
of Eveleth, has
announced the
p r o m o t io n o f
Lee D. Branville
to in stalm en t
lending officer.
Mr. Branville
began his career
with the bank in
1979 as an in­
stalment loan in­
L.D. BRANVILLE
terviewer.

Curtis S. Von Bargen has been ap­
pointed vice president and Francis
V. Larson has been promoted from
cashier to vice president and cashier,
at First National Bank, Hastings,
announced Arvid B. Evens void,
president.
Mr. Von Bargen was previously
employed by the White Rock State

staff: Valarie Van Wyck, credit #
review; Constance Bertrand, mar­
keting, and LaVonne Bill, personal
banking.
Ms. Van Wyck transferred to
First Bank Mankato in 1978 from •
National Bank of South Dakota. Ms.
Bertrand joined in 1974 as a teller
and has held numerous positions.
Mr. Bill joined in 1972, holding a
number of positions also within the •
bank.

St. Cloud V.P. Named
A. William Pennings has been ap­
pointed vice president-instalment
lending at Northwestern Bank and
Trust Company
in St. Cloud, ac­
cording to Tim
V. Stern, presi­
dent.
Mr. Pennings
began his bank­
ing career at the
N orth w estern
Bank of Mar­
shall in 1973,
A.W. PENNINGS
and was serving
as manager of the instalment loan
department of Northwestern Na­
tional Bank of Fergus Falls before
moving to St. Cloud.

C.S. VON BARGEN

F.V. LARSON

Bank. His duties at First National
include consumer and ag lending
and regulatory compliance.
Mr. Larson has been employed by
the bank since 1978. He is the
bank’s chief operations officer and
has responsibility for bank security
as well as personnel.

Elected in Mankato
Starr J. Kirklin, president of First
Bank Mankato, has announced the
election of three new officers to the

“Cornin’ Soon” McCarrons Lake Office

STANDING: Roger Zellmann, v.p.; Lowell
Piagge, cash.; SEATED: Bruce Mathwig,
a.c., and Roland Narr, sr. v.p.

Promotions Announced at
Young America Bank
State Bank of Young America
recently announced the promotion
of Roland Narr to senior vice presi­
dent, Roger Zellmann to vice presi­
dent, Lowell Piagge to cashier and
Bruce Mathwig to assistant cashier.
Mr. Narr joined the bank in 1962
and has served as cashier and vice
president since. Mr. Zellmann has
served as assistant cashier and
cashier since joining the bank in
1968. Mr. Piagge joined the bank in
1975 and Mr. Mathwig joined in
January, 1981.

Board Member Named

LOCAL business and political leaders along with officers of Western State Bank, St.
Paul, uncovered the “ Cornin’ Soon” sign in January, at 1740 Rice Street, the site for
the bank’s new McCarrons Lake office scheduled to open in the spring. Participants
in the ceremony include (I to r): A. William Sands, Jr., pres., Western St. Bk.; Dan
Jeans, pres., North End Business Assoc.; Hugo Masanz, pres., North End Improve­
ment Club; A. Wiliam Sands, Sr., chmn. (who died Feb. 15); Dennis Prchal, ass’t
v.p./br. mgr.; Julia Reitan, mktg.; L.l. Davis, sr. v.p.; Senator Peter Stumpf, and Aug. T.
Meyer, bd. of dir., Western St. Bk.

Northwestern Banker , March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H.G. (Bob) Jordheim, general
manager of Land O Lakes—Soybean
D iv ision , was
recently elected
to the board of
the N orthw es­
tern State Bank
of Dawson, ac­
c o r d in g
to
Everett E. Kel­
ley, president.
He replaces
Joe Givens who
H G j o r d h e im
retired from the
board in May, 1981.

41

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Northwestern Banker, March, 1982

F&Mand
Marquette.


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Federal Reserve Bank of St. Louis

The
brand new
billion
dollar
bank.
M arq u ette N atio n al B an k an d
F& M S a v in g s B ank, tw o o f
M in n eapolis' oldest an d m ost
respected financial institutions,
h ave joined forces to create the
fourth largest com m ercial b an k in
M in n esota.
W ith total assets o f o v er one
billion dollars, the new F& M
M arq u ette N atio n al B an k is in a
stron g financial p o sition to m eet
the n eeds o f its correspond ent
b an k custom ers th roughout the
U p p er M idw est.

An unparalleled partnership
in Minnesota banking
history.

banking institutions, each with
well-earned reputations, each
recognized leaders in Minnesota
banking, are now together as one.
Our correspondent banks benefit
from the increased strength of the
larger organization.

A new era is unfolding.
The F&M Marquette story is an
exciting one, and we'll be telling
you more about the potential
opportunities with us in the weeks
and months ahead.
If you have any questions,
please call Marquette's
Correspondent Banking
Department at 612-370-2161.

W e're p ro u d o f this union o f
tw o M in n eso ta b an k s. T w o

F&M Marquette National Bank
We're ready for you


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

( ¡Si)

44

Minnesota News

Staff Changes Announced
At Northwestern Bank of Fergus
Falls, Darlene Flanson has been
elected market­
ing officer and
Joel Kraft has
jo in e d
the
bank’s staff as
assistan t vice
p r e s id e n t/p e r sonal loan man­
ager.
Ms. Hanson
joined the Fer­
D. HANSON
gus Falls staff in
1970 and was named assistant mar­
keting officer in 1979. Mr. Phillips
was previously with First National
Bank of Moorhead.

Maple Grove Bank
Announces Staff Changes
James Heig, president of North­
western Bank Northwest, Maple
Grove, has announced the election of
Mary E. Talmage and Ronald Gangelhoff as members of the board, Bar­
bara Lynch as personal banking officer/assistant manager of Maple
Grove Mall office and Charles Peter­
son as commercial banking officer.
Ms. Talmage is vice president and
secretary of Mikros Engineering in
Brooklyn Center, and Mr. Gangelhoff is president of Chicago Cutlery
Consumer Products, Inc. of New
Hope.
Ms. Lynch joined the bank in
1977 and Mr. Peterson in 1979.

Promoted at Edina Bank
At First Bank Southdale, Edina,
James D. Rorvick has been pro­
moted to assistant vice president,
executive and professional banking,
and
A n d re w
W illia m s and
Robert D. Har­
vey to personal
banking officer.
Mr. Rorvick
has been em ­
ployed at First
Bank Southdale
since 1973. Mr.
Williams started
with the bank in
JD- R0RV|CK

Largest Banks in Minnesota
EPOSITS and loa n fig u r e s fo r M in n e s o t a b a n k s r e p o r tin g d e p o s i t s o f
$70 m il l i o n o r m o re at ye ar-e nd are s h o w n in th e c h a r t b e lo w . C o m ­
p a r a tiv e fig u r e s fr o m a ye a r a g o are fe a tu r e d .

D

(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.

December 31, 1981
December 31, 1980
Northwestern Natl., M p ls ...................... $3,279,847 $2,661,698 $3,388,517 $2,331,593
First Natl., Mpls........................................ 3,173,563 2,246,919 2,509,430 1,813,316
First Natl., St. P aul..................................
2,012,186 1,435,351 1,818,643 1,260,356
Farmers & Mechanics Sv., M p ls ............
825,103
807,682
865,675
829,942
Northwestern Natl., St. P a u l..................
289,597
241,097
294,235
211,969
American Natl. B&T, St. P a u l................
281,763
225,648
266,488
228,700
Natl. City Bank, Mpls...............................
279,912
207,654
215,568
170,792
Midland Natl., Mpls..................................
222,733
146,668
238,441
144,813
Marquette Natl., Mpls..............................
218,129
133,214
239,719
144,239
First Natl., Duluth ..................................
199,419
134,257
193,186
131,053
N.W. Natl. S.W., Bloomington ..............
197,589
140,657
188,679
114,960
Midway Natl., St. P a u l............................
170,991
106,598
156,235
92,869
Northern City Natl., D u lu th ....................
159,551
111,874
165,867
105,039
Northwestern Natl., Rochester ............
151,491
130,221
147,031
115,578
First Edina N atl........................................
144,863
108,915
130,480
101,723
First Southdale Natl., E d in a ..................
134,663
103,935
120,335
95,697
First Natl., R o ch e ste r............................
131,695
87,693
123,635
87,826
Central Northwestern Natl., Mpls..........
126,584
107,242
120,310
102,795
First Minnehaha Natl., Mpls...................
124,819
75,890
115,968
76,165
First Natl., H o p k in s ................................
122,622
89,387
111,891
81,761
Merchants Natl., Winona ......................
114,265
79,771
105,805
78,366
N.W. Natl. BankWest, H opkins..............
114,180
84,158
95,787
66,803
Commercial St., St. P a u l........................
105,040
72,729
94,043
62,586
Richfield B&T, R ic h fie ld ........................
102,451
68,753
101,967
69,914
First Natl., Moorhead ............................
102,003
62,364
93,415
63,800
First American Natl., St. C loud..............
100,107
81,577
95,087
80,243
First Natl., A u stin ....................................
98,180
60,533
93,023
61,216
Fidelity B&T, Mpls....................................
98,116
66,114
93,244
61,234
Northwestern Natl., M ankato................
97,271
69,076
97,482
62,347
First State Bank, St. Paul ......................
95,995
61,987
85,361
61,945
First Bank Robbinsdale..........................
95,254
64,943
83,686
62,879
First Natl., A noka....................................
91,972
65,186
91,405
56,761
Community State Bk., Bloomington . . .
87,500
50,860
77,983
46,301
Fifth Northwestern Natl., Mpls...............
85,476
81,114
68,430
63,853
First Natl., M ankato................................
85,022
50,681
79,528
51,597
82,430
54,582
First Northwestern Natl., W in o n a ........
80,385
54,313
First N.W. Natl., F airb a u lt......................
79,449
53,556
72,437
47,401
First N.W. Natl., M a rs h a ll......................
78,989
52,857
82,547
55,735
78,622
First Natl. Bk., V ir g in ia ..........................
47,441
72,703
51,219
N.W. Natl., So. St. P a u l..........................
77,457
57,536
85,044
49,667
Wayzata B & T ..........................................
76,506
59,770
71,451
51,069
Marquette B&T, R ochester....................
75,977
44,059
85,677
43,301
Northwestern Natl., Owatonna ............
75,836
50,513
65,880
44,463
75,281
59,664
Camden N.W. State Bk., M pls................
69,509
55,575
Zapp Natl., St. C lo u d ..............................
74,229
49,637
74,762
50,525
First Natl., Worthington ........................
72,641
45,656
44,554
60,468


Northwestern
Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A. WILLIAMS

R.D. HARVEY

1976 and Mr. Harvey in 1978. Both ®
previously held the position of per­
sonal banker.

First Bank-Duluth
Staff Changes Announced
At First Bank-Duluth, Larry L.
Gilb, president and chief operating £
officer, has been elected to the
bank’s board, according to James H.
Claypool, chairman and chief ex­
ecutive officer, Mr. Gilb served as
vice president in the commercial £
loan department and head of its
marketing department until 1975
when he became vice president at
First Bank-Billings, Mont. He
returned to Duluth as president in £
late fall of 1981.
The following officer promotions
were also announced: Barbara Lar­
son, personnel; Daniel Ringsred,
trust investment, and Lawrence Sto- #
vern, Jr., marketing.
Robert M. Hammerstrom, assis­
tant vice president, recently retired
after 43 years in banking. He began
his career as a messenger in 1938 #
and in 1952, moved to City National
Bank and took over its operation un­
til 1957, when the bank merged with
Northern City National Bank, and
more recently, to First Bank- •
Duluth.

Minnesota News

45

F

IRST Bank Minneapolis held an
open house for employees and
their guests Jan. 31 to celebrate the
^ grand opening of its new and ex­
panded headquarters, First Bank
Place.
First Bank Place, located in
downtown Minneapolis, consists of
0 two office buildings - First Bank
Place West and First Bank Place
East. It also consists of First Bank
Plaza, First Bank Atrium, First

Bank Skyway and First Bank Con­
ference Center.
First Bank Place East is the
south tower of the Pillsbury Center,
which is owned and developed by
First Bank Minneapolis and Gerald
D. Hines Interests.
The ground-breaking for First
Bank Place East took place in June,
1978, with the first occupancy by
bank employees in September, 1980.
Extensive renovation on First

Bank Place West, formerly called
First National Bank Building,
began in the summer of 1980.
The Open House marked the end
of construction work for employes.
Tours were given throughout First
Bank Place and most bank depart­
ments were open for viewing.
Some 2,400 employees and their
families and guests attended the
afternoon event.

•

Hastings Bank Elects Two

Applications Approved

Robbinsdale Officer Named

Bernie Estenson was elected per­
sonnel officer and Michael Schu­
macher assistant vice president and
commercial loan department manager of Northwestern National Bank
of Hastings.

The Federal Reserve Bank of Min­
neapolis has announced its approval
of the following applications by
holding companies to acquire banks.
Argyle Financial Services, Inc., to
acquire Argyle State Bank, Argyle;
Gaylord Bancorporation Ltd., Cit­
izens State Bank of Gaylord; High­
land Park Bancorporation, Inc., The
Highland Bank, St. Paul; St. James
Bancorp., Inc., Citizens State Bank
of St. James, and Emmons Agency,
Inc., First State Bank of Emmons.

Melody Holland-Rehder has been
elected commercial lending officer of
First Bank Rob­
binsdale, accord­
ing to Kenneth
C.
S h eeh an ,
president.
She began her
banking career
in 1977 at First
Bank Southside,
Missoula, Mont.,
joining the Rob­
binsdale bank in M- HOLLAND-REHDER
1978 in the sales finance depart­
ment.

®

Board Member Named
B. ESTENSON

M. SCHUMACHER

Ms. Estenson started her career
with the bank in 1973 as a teller, ser­
ving most recently as personnel ad­
ministrator.
Mr. Schumacher started with the
bank in Hastings in May, 1980, as a
commercial loan officer.

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

Clifford H. Zaffke, president of
Polk County State Bank, Crookston,
recently announced the election of
Don R. Hass, executive vice presi­
dent, to the board. Mr. Hass joined
the bank’s staff in 1978, and has
more than 25 years experience in
finance and banking in Iowa, South
Dakota and Minnesota.

Elected in New Prague
Beverly Zvanovec has been
elected as assistant cashier, an­
nounced W.A. Bender, president of
Fidelity State Bank, New Prague.
Mrs. Zvanovec started with the
bank in 1978, serving most recently
as secretary to the president.
Northwestern Banker, March , 1982

46

F

IR S T B ank M in n e a p o lis
recently announced the promo­
tion of Fenwick C. Atwill to ex­
e c u t iv e
v ic e
president, five
others to vice
president, seven
to assistant vice
p resid en t and
the naming of
eleven others to
officer status.
M r. A t w ill
joined the bank
F.C. ATWILL
in 1947 and has
been serving as senior vice president
and head of the credit administra-

H.H. MILES

K.H. SCHROETER

M.C. DERCK

P.M. SULLIVAN

K.A. HYDUKE

R.A. KORTGARD

Northwestern
Banker , March , 1982

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

tion department since 1976.
Promoted to vice president were:
Henry H. Miles, international bank­
ing planning and control division;
Patricia M. Sullivan, midwest cor­
porate banking II division; Colleen
L. McCoy-Deppa, national central
division; Richard L. Quam, ad­
ministration division, and Karl H.
Schroeter, profit sharing trusts divi­
sion.
Elected to assistant vice presi­
dent in the various divisions were
Kathleen A. Hyduke, midwest cor­
porate banking II; Carlene A. Crnkovich and Douglas E. Barnes, for­
eign exchange; Michael C. Derek,

C.L. MC COY-DEPPA

R.L. QUAM

trust agency/custody; Rosemary A.
Kortgard, trust real estate, and Bet­
sy A. Burns and Richard J. Rinkoff,
first asset management.
The following have been named to
officer status:
Dean C. Sanberg, commercial
banking; James W. Maenner, trust
real estate; Ann M. Coughlin, com­
mercial banking; Bradford A. Benzick, cash management; Kathryn C.
Smith, commercial banking; Cindy
L. White, branch operations; Mary
Anne Clifton and Suzanne F. Dixon,
trust operations; Raye C. Kanzenback, investment; Nancy E. Fuller,
cash management, and Charles F.
Rooney, bond investment.
* * *
Commissioner of Banks, Michael
J. Pint, announced recently the ap­
proval of a license for The Vault,
Inc., to operate a safe deposit com­
pany. Mr. Pint said this is the first
private safe deposit company to
open in Minnesota that is not af­
filiated with a financial institution.
It is licensed to do business at 7300
France Avenue South, Edina.
According to Commissioner Pint,
Tom Tyler, president of The Vault,
states that this new concept in safe
storage of business and personal val­
uables will include the capability of
storing large or small valuables and
will be open for business 24 hours a
day, seven days a week.
* * *

C.A. CRNKOVICH

B.A. BURNS

Emily D.M. Hallock has been ap­
pointed assistant vice president of
purchasing for First System Ser­
vices, Inc., the service subsidiary of
First Bank System, Inc., Minne­
apolis.
Ms. Hallock joined First System
Services in 1981 as purchasing of­
ficer and department manager, and
was previously with Central Penn
National Bank in Philadelphia, Pa.

•

•

®

®

Minnesota News

Northwestern National Bank of
® Minneapolis has announced the elec­
tion of Craig A. Jones and Jennifer
A. Freeman as vice presidents, and
Russell G. Cleary, president and
^ chairman of the
w G.
H eilem a n
Brew ing Com ­
pany, LaCross,
W is.
to
th e
^ board.
M r. J o n e s ,
who joined the
bank in 1980,
will be serving in
0 the commercial
credit division of
c.B. JONES
the correspon-

J.A. FREEMAN
q

0

Q

#

#

R.G. CLEARY

dent banking department.
Ms. Freeman joined the bank in
1981 and serves in the asset-liability
management unit of the bond group.
Elected to assistant vice presi­
dent at Northwestern were: Patricia
D. Felcyn, central operations; Don­
ald L. Sodman, individual services;
Gale R. Friedrich, special services,
and Gerald D. Olsen, loan opera­
tions.
New officers named include:
Thomas M. Doerk, commercial
banking; Theodore R. Novak and
David L. Waldo, professional bank­
ing; Barbara J. Bruneau, operations;
Sara H. Mushlitz, international
banking; Sandra J. Anderson, in­
vestments; Mitzi Tousman, legal
division; David Bodine, trust
marketing; Janet L. Grant, comm u nications, and Richard K.
Hughes, accounting.
* * *

Northwest Bancorporation has
® revised its dividend reinvestment
plan to provide a 5 percent discount
for common shares purchased under
the plan and eliminate brokerage
com m issions, fees and service
charges.
Under amendments to the com­
pany’s “ Shareholders Savings Ser­
vice,’ ’ holders of Banco common
stock may elect to have all or a por­
tion of their dividends automatically

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

reinvested on a quarterly basis in
additional shares at a 5 percent dis­
count from the market price.
The service also permits optional
cash payments of up to $3,000 per
quarter, with a minimum payment
of $25, for investment in common
stock monthly at the then-current
market price.
* * *

The board of American National
Bank and Trust Company, the Twin
Cities largest independent bank, has
made the following promotions:
H. Joseph Brunner, was promoted
to senior vice
president - con­
sumer banking
and marketing;
Thomas
H.
Farnham to vice
president - com­
mercial banking;
Timothy
K.
Lindhlad to vice
p resid en t and
H.J. BRUNNER
department
manager - executive and profes­
sional; Elizabeth L. Maine promoted
to vice president and cashier, Rich­
ard A. Stewart to vice president, and
Diane L Quinn to assistant vice
president - consumer banking. The
board also elected Eugene P. Mc­
Donnell collections officer - con­
sumer banking, and Susan M. Pe­
ters marketing officer and assistant
director of the marketing division.
At the same time, the following
organizational changes were made:
Robert L. Nelson, vice president,

S.M. PETERS

R.L. NELSON

47

has been promoted to deputy divi­
sion head, division C. Also within
that division Patrick T. Stead, vice
president, will manage the construc­
tion, mining and heavy equipment
department, and Beth A. Dinndorf,
vice president, will manage the
transportation department.
Mr. Brunner joined American in
1979 as director of the marketing
division. Mr. Farnham joined the
bank in 1973 as a credit analyst, be­
came commercial loan officer in 1977
and was elected assistant vice presi­
dent in 1978. Mr. Lindblad joined
with the bank in 1976 as a personal
banker, and was made assistant vice
president and manager of the ex­
ecutive and professional department
in 1980. Ms. Maine joined the bank
in 1973 as manager of executive
communications and became assis­
tant vice president in retail banking
in 1980. Mr. Stewart joined the bank
in 1981 as assistant vice president
and manager of personal banking,
bringing with him over 15 years ex­
perience in consumer banking in the
Twin Cities area.

T.H. FARNHUM

T.K. LINDBLAD

D.L. QUINN

E.P. MC DONNELL

P.T. STEAD

B.A. DINNDORF

Northwestern Banker, March, 1982

48

Minnesota News

W. John Wendler has been named
commercial banking officer and
manager of the Metropolitan Bank­
ing Division at First Bank Saint
Paul. As man­
ager of Metro­
politan Banking,
Mr. Wendler will
be responsible
for small busi­
ness re la tio n ­
ships.
Mr. Wendler
r e c e iv e d
his
B a ch elor’ s de­
W.J. WENDLER
gree in Econom­
ics from Kenyon College and his
Master’s degree in Finance and A c­
counting from Carnegie Mellon
Univ.
* * *
Robert S. Branham, president of
Northwestern National Bank of
South St. Paul, has announced the
promotion of Anthony W. McGuire
to executive vice president and John
A. Marien to senior vice president.
Mr. McGuire joined the bank in
1974 as assistant vice president,
commercial lending, and was elected
vice president in 1976.
Mr. Marien started his banking

in Minnesota, North Dakota, and
Wisconsin where there are Bremer
bank affiliates.
* * *

bank since 1969, most recently serv-^
ing as vice president and comp­
troller.
Other appointments made by the
bank include:
Robert J. Koenke, vice president0
in the marketing department; Ed­
ward W. Locke, assistant vice presi­
dent, personal banking; Robert A.
Zygmunt and Lucy Wright Matt­
son, assistant vice president, com- 0
mercial banking; John S. Kes, assis­
tant auditor; Sandra G. Udstrand
and Leona O. Hager, personal bank­
ing officer, and Ruth A. Ronning,
commercial loan officer.
0
* * *

At National City Bank of Min­
neapolis, Thomas J. Freed has been
named senior vice president and
comptroller in the control and plann in g
d ep a rt­
ment, according
to C. Bernard
Jacobs, ch a ir­
man and chief
e x e c u t iv e o f ­
ficer.
Mr. Freed has
been employed
in various ac­
counting capa­
Northwest Bancorporation re­
cities with the
cently announced the promotion of 0
David Jarvis, a senior vice presi­
dent, to executive vice president and
chief financial officer. This increases
the number of executive vice presi-

R.J. KOENKE

E.W. LOCKE

D. JARVIS

A.W. MC GUIRE

J.A. MARIEN

R.D. ZYGMUNT

L.W. MATTSON

career with Northwestern National
of St. Paul in 1958 in their instal­
ment lending department. In 1962
he joined Banco’s credit department
and in 1964 was elected assistant
cashier, remaining there except for a
short time when he served as vice
president at Northwestern National
Bank of Faribault.
* * *
The Trustees of the Otto Bremer
Foundation have announced the pro­
motion of John Kostishack to grants
administrator and the appointment
of Karen Starr to program officer.
The Otto Bremer Foundation is a
private grant making foundation
supporting programs in community
affairs, health, higher education,
and human services in communities
N orthw
estern B a n k e r, M a rc h ,

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

1982

L.O. HAGER

R.A. RONNING

W.C. JOHNSON

dents in Banco’s corporate office to
three, the other two being Walter C.
Johnson and Gerald M. Kanne.
Mr. Jarvis who joined Banco in
April, 1981, was previously vice
president and director of business
development for international opera­
tions at the Pillsbury Company.
Mr. Johnson, formerly chief finan­
cial officer, moves into an expanding
area of corporate activity, assuming
line management responsibilities for
Banco’s largest non-banking sub­
sidiaries. He has been with Banco
since 1957.
Mr. Kanne will continue to head
Banco’s banking operations.
* * *
Cameron E. Berg and Lynne H.
Hansen have been promoted to as­
sistant vice president and trust of­
ficer of Midland National Bank of
Minneapolis, according to Harry C.
Benson, president.
Elected officers of the bank were:
Galen J. Cadle, personal banking;
Elizabeth F. Kerner, investment;

Minnesota News

Thomas E. Lynn, commercial bank­
ing, and Steven W. Truchinski,
trust.

49

facility when it opened in October of
1980.

Duluth Board Member Named
Matthew R. Banovetz, president
of Reserve Mining Company, Silver
Bay, has been elected to the board of
First National Bank of Duluth, an­
nounced Dennis W. Dunne, presi­
dent.

Four Elected to Board
C.E. BERG

G.J. CADLE

T.E. LYNN

L.H. HANSEN

E.F. KERNER

S.W. TRUCHINSKI

Mr. Berg joined Midland Bank in
1979. Ms. Hansen started with the
bank in 1978. Mr. Cadle started with
the bank in 1979 in the credit
department. Prior to joining in 1980,
Ms. Kerner was an investment ana­
lyst. Mr. Lynn began his career with
the bank in 1979, and Mr. Truchin­
ski joined the bank in 1980 as a trust
administrator.
* * *

Northwestern Bank of Rochester
recently announced the election of
four persons to its board. They are:
L.J. (Joe) Bauman, plant manager
of IB M ’s Rochester manufacturing
facility; Rickee Henoch, vice presi­
dent and treasurer of McDonald’s
restaurants in Rochester; Isabel
Huizenga, president of the Roches­
ter Area Foundation, and Gerald
Price, part owner and president of
Rochester Silo, Inc.

Northfield Officers Named

B.B. MEYER

served as a director for Sully County
Bank, Onida, which became a
branch of BankWest January 1,
1982.
Mr. Meyer, an attorney practicing
in Onida, also served six years on
the Sully County Bank board.

Elected in Watertown
David D. Petersen was recently
elected manager of First National
Bank of Watertown’s insurance
department — The First National
Agency. The announcement came at
the bank’s annual meeting.

Peggy Hoffman and Gary Gavin
have been named as officers at First
Bank Northfield. Mrs. Hoffman who
joined the bank in 1980, works in the Elected to Board in Huron
personal banking department. Mr.
Ralph Braun, an area farmer, has
Gavin started with the bank in Jan­
been elected to the board of the
uary, 1981, in agricultural lending.
Farmers and Merchants Bank of
Elected to Board in Danube Huron, according to Dale Teich,
president.
Les Schneider, a partner in owner­
ship and manager of the Americana
Insurance Agency in Danube, was Milbank Bank Promotes
recently elected to the board of the
Mike Stehly, manager of First Na­
Americana State Bank of Danube.
tional Bank in Milbank, recently an­
nounced the promotion of Thomas
Elected to the Board
N. Gronseth to agricultural loan of­
Roger H. Rinerson, assistant vice ficer. Mr. Gronseth served with the
president, has been elected to the South Dakota Highway Patrol as a
board of the Pelican Valley State State Trooper before joining the
Bank, Pelican Rapids. Mr. Rinerson bank in 1981.
joined the bank in 1975.

Gary M. Lechko was recently SOUTH DAKOTA NEWS
elected a commercial real estate of­
Application Approved
ficer of Midland National Bank of
The Federal Reserve Bank of Min­
Minneapolis, according to Harry C.
neapolis has approved the applica­
Benson, p resi­
tion of Minnehaha Banshares, Inc.,
dent and chief ex­
Sioux Falls, to acquire the Farmers
ecutive officer.
State Bank of Flandreau, Flandreau.
Mr. L ech k o
was previously
Two Elected to Board
with Marquette
National Bank
Charles H. Burke, president of
where he started
BankWest N.A. in Pierre, recently
in 1977 as a
announced the election of Kenneth
trainee and was
Kinkier and Brian B. Meyer to the
later
nam ed
board.
a ssista n t vice
GM- LECHK0
Mr. Kinkier is presently a wheat
president and manager of its Fridley farmer in Sully County and also

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Federal Reserve Bank of St. Louis

K. KINKLER

Board Members Elected
Max Cruse, presently engaged in
a farming and cattle operation, and
Jerry Klocker, owner-manager of
Klocker Furniture in Pierre, were
elected to the board of first National
Bank in Pierre at their recent annual
meeting.

New Officer in Rapid City
At the annual meeting of First
National Bank of the Black Hills,
Rapid City, Marlene Wager was
elected operations officer at the
North branch in Rapid City. Ms.
Wager joined First National in 1970,
most recently serving as operations
supervisor.
Northwestern Banker, March, 1982

If your prim ary correspondent
can't clear San Francisco
the sam e day, call
First B ank M inneapolis*


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Federal Reserve Bank of St. Louis

Most correspondent banks
won’t collect your funds as fast as we
will. Or give you an immediate
investable balance. So you may be
losing m oney every day.
Those are some reasons why
you should use First Bank Minneapolis
as your primary correspondent.
You see, we offer one o f the
best Availability Schedules in the nation
and one o f the fastest in this region.
Take San Francisco for example. We’ll
give you immediate availability on

most items and credit for the rest in
one day. A nd we still accept payment
for our services through balances.
What’s m ore, there’s our
exclusive “ DAILY $’s” report which
shows you exactly how m uch you can
invest today.
We’ll even m onitor your cash
letter schedule. So you can get
m ore o f today’s cash letter to invest,
because that’s what counts.
So if you’ re getting the idea
that we can deliver m ore investable

funds every day, you’re getting
the right idea.

First Bank
Minneapolis
Correspondent Banking
Department
First Bank Place
Minneapolis, M N 55480
612/370-4762

We are what you want a correspondent bank to be.


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Federal Reserve Bank of St. Louis

52

A

South Dakota
IN. E. Turnquist, chm n., Sioux Falls
J. M. Schwartz, exec, mgr., Pierre

V

___________

J

Sioux Falls Staff
Changes Announced

First Bank - Aberdeen
Promotes Five

United National Bank, Sioux
Falls, has announced several staff
changes.
B ob H elv ik
was named as­
sistant vice pres­
ident and branch
manager of the
b an k ’ s T abor
branch. Mr. Hel­
vik, who joined
th e ban k in
1979, replaces
Clarence Vlasak
B. HELVIK

At the annual meeting of First
Bank-Aberdeen, the following pro­
motions were announced:
Eldon Swingler from assistant
vice president to vice president and
manager of the commercial loan
department; Loren Podoll from
cashier to cashier and senior opera­
tions officer; Doug Tribble to opera­
tions officer; Cheryl Olson from
assistant auditor to assistant opera­
tions officer, and Elaine Kennedy to
trust administrator.

Promoted in Mitchell
Ron Jenkins, president of Com­
mercial Trust and Savings Bank,
Mitchell, has an­
nounced the pro­
motion of Bon­
nie O lson to
com pliance o f­
ficer and Beth
Vlasman to as­
sistant cashier
and head o f
bookkeeping .
M s.
O lson
joined the bank
R- JENKINS
in 1955 and became compliance
analyst in 1980.
Ms. Vlasman has been working in

B. OLSON

Named Ass’t. Mgr. - Bristol
David Kaup has been promoted to
assistant manager of the First Na­
tional Bank of Aberdeen’s Bristol
branch, according to manager
Robert Hawley. Mr. Kaup will con­
tinue to serve as the agricultural
lending officer of the bank.
E. FOX

V. VLASMAN

the bookkeeping department since
joining in 1978.
Also at Commercial Bank, Ronald
F. Randall, president of Randall
Stores, Inc., Coca-Cola Bottling Co. ^
of Central South Dakota, Inc. and
Corby Recreation, Inc., has been
elected to serve on the board.

R. LARSON

who recently retired after 35 years
service at the Tabor branch.
Elaine Fox, who began her bank­
ing career in 1967 and joined United
in 1977, was named instalment loan
officer at the main office.
Rose Larson, of the bank’s 41st
Street branch, was promoted to per­
sonal banking officer. Ms. Larson
joined Union Bank and Trust in
1974 prior to its becoming part of
the United National Bank system.

Herreid Director Named
Vern Ochsner, of Herreid, was
recently elected to replace Matt
Seiler as a director of the Campbell
County Bank, Herreid. Mr. Seiler
recently retired.

Approval Announced
The State Banking Commission
recently approved the Articles of In­
corporation for Spearfish Mountain
Bank, Spearfish.

Northwestern Banker , March , 1982
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Federal Reserve Bank of St. Louis

Largest Banks in South Dakota
EP O SITS a n d loa n f i g u r e s fo r S o u th D a k o ta b a n k s r e p o r tin g
d e p o s i t s o f $50 m il l i o n o r m o re at ye a r-e n d are s h o w n in th e c h a r t f
b e lo w . C o m p a r a tiv e f ig u r e s fr o m a y e a r a g o are fe a tu r e d .

D

(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
1Ô.
16.
17.
18.
19.

Natl. Bk. of South D a k o ta ..........
N.W. Natl., Sioux Falls ..............
First Natl. Black Hills, Rapid City
First Natl., A berdeen..................
First Natl., Sioux F a lls ................
United Natl., Sioux F a lls ............
First Bank-Aberdeen*................
Western St., Sioux F a lls ............
First Natl., Brookings ................
Commercial Bk., M itc h e ll..........
First Mitchell Natl., Mitchell . . . .
Farmers & Mer. B&T, Watertown
First Natl., W atertow n................
American St., Yankton................
Farmers & Mer., Huron ..............
BankWest N.A., Pierre................
Bk. of Belle Fourche ..................
Valley Natl., Sioux Falls ............
Farmers St., W inner....................

‘ formerly Aberdeen National.

December 31, 1981
$550,094
$374,126
455,200
318,125
307,093
187,105
281,490
195,228
159,782
94,667
140,448
79,170
131,899
104,975
57,257
92,560
84,336
54,411
83,942
53,637
82,943
52,755
82,917
44,419
79,615
56,595
76,563
43,251
71,080
33,543
69,945
47,206
56,956
28,833
56,589
29,295
55,493
33,946

December 31, 1980
$512,284
$370,332
425,109
286,769 #
280,755
177,378
267,342
184,985
146,432
90,923
147,497
85,822
126,348
96,324
84,376
57,554
75,433
61,097
78,736
51,310
75,104
53,164
74,343
42,946
71,173
46,977
70,009
43,395
68,525
37,716
70,752
48,744
52,288
27,768
51,397
30,491
51,627
32,641

53

North Dakota
T. A. Roney, pres., Carrington
H. J. Argue, exec. d ir., Bismarck

The Bank of North Dakota
Hosts “ Mid-Winter Break”
By STEVE BURCH
Associate Publisher
•

HE Bank of North Dakota
hosted the 7th annual “ MidWinter Break” February 17-19 in
Bismarck. In his welcome, Mr. Herb
# Thorndal, president, remarked that
this years program was a timely and
truly a welcome “ break” as most of
North Dakota had experienced 48
consecutive days of sub-zero wea# ther. (Bob Caudel, senior vicepresident and program chairman,
quickly took full credit in arranging
for temperatures which zoomed into
the 40 ’s during the conferenece.)
®
North Dakota Governor Allen
Olson gave a very optim istic
forecast on the economic condition
of the state. The main essentials for
this optimism are the states ability
# to produce and process food, the in­
creasing value of North Dakota nat­
ural water resources and the state’s
oil and natural gas reserves.
Dr. William Staats, professor,
• Louisiana State University, chal­
lenged the bankers to be aware of
the magnitude of the continuing
changes occurring within the bank­

T

ing industry. Failure to adapt to
these changes would place bankers
right next to dinosaur on the list of
extinct beings, he warned. Recogniz­
ing the soundness of the banks in
North Dakota, he further warned
that even though the state may be
insulated and isolated from many
problems facing the banking in­
dustry, they should not consider
themselves to be immune.
Commenting on the general eco­
nomic condition of the country, Dr.
Staats cautioned the bankers to
avoid a pessimistic attitude towards
the economy. There is too much pes­
simism in the daily headlines and
newscasts, even though the econ­
omy seems to be in-tune with the
short-term attitudes of the people,
he added. Looking for a reduction in
the govenment’s current 40% share
of the GNP and lower interest rates,
he feels that President Reagan’s
economic directions are on the right
track and should be given a chance
to prove themselves. Addressing the
banking industry, he said that bank­
ing today could be summarized in
one word - change. The source of
most of the change is in deregulation

and the continuing rate sensitivity
of the financial customer. Also con­
tributing to this rapid change is the
attitude of the Comptroller of the
Currency towards bank chartering.
He feels that this attitude reflects a
greater tolerance for bank failure
and will result in freer chartering of
banks. He sees this new chartering
policy as an open door entry into any
market-place bv commercial banks.
Mr. Larry Byrd, president, Keplinger & Associates, Houston, pro­
vided the conference with an insight
into the future impact of the oil and
natural gas industry within North
Dakota. With over 50% of North
Dakota land now under lease, Mr.
Byrd traced the states oil develop­
ment from 10 working rigs in 1972
to the 111 rigs now working, which
produce 126,000 barrels daily. As
the energy industry is now respon­
ding to supply and demand econom­
ics, he predicts a very bright future
for the continued exploration of oil
in the state. More favorable return
on investment ratios are also con­
tributing to the increased value of
the natural gas reserves within the
state. Deregulation of the gas in­
dustry could lead to a tripling of cur­
rent prices, he predicted.
“ Bankruptcy - What to do When
the Notice Hits the Bank” was the
title of the presentation by Mr.
Thomas Small, vice-president, First
Union Bank, Raleigh, North Caro­
lina. Since going into effect in 1979,
the new bankruptcy law has resulted
in a 100% increase in bankruptcy fil­
ings. Mr. Small attributes this in­
crease to the “ pro-consumer” nature
of the law and to attorney advertis­
ing which promotes the advantages
of a bankruptycy filing. He advised
the bankers on what steps to follow
to improve their chances of col­
lateral and inventory recovery once

SPEAKERS: Hon. Allen Olson, Gov. N.D., Herb Thorndal, pres., Bk. N.D., Bob Caudel, s.v.p. & c o n f. ch m n ., Thomas A. Small, v.p., F irs t
U n io n Bk., R a le ig h , N.C. and Roger West, W e s t Bk. C o n s u lt. Serv., M in n e a p o lis .

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Federal Reserve Bank of St. Louis

Northwestern Banker, March , 1982

54

North Dakota News

a filing has been received, and
pointed out that failure to follow
correct procedure could result in a
contempt of court charge against
the creditor. Additionally, he sug­
gested the banker develop an ade­
quate protection agreement with the
debtor rather than risk a lesser
return from immediate litigation.
The interest in this topic was
reflected in a lengthy question and
answer period following the presen­
tation.
Other topics on the agenda dealt
with the formation of one bank hold­
ing companies, internal control and
security, and a question and answer
session with Mr. Lee Stenehjem,
commissioner, Department of Bank­
ing and Finance. Additionally there
was a full spouse program presented
during the business sessions. The
“ Mid-Winter Break" concluded
with a humorous talk, “ What to to
Until the Psychiatrist Comes” by
Dr. Murray Banks, New York.

Largest North Dakota Banks
EPOSIT a nd loa n fig u r e s fo r N o rth D a k o ta b a n k s r e p o r tin g $50
m il l i o n o r m o re d e p o s i t s are s h o w n in th e c h a r t b e lo w as r e p o r te d at
year-end. C o m p a r a tiv e fig u r e s fo r a y e a r e a r lie r a ls o are re p o rte d .

D

(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

Bank of North Dakota, B is m a rc k..........
First Bk. of N. Dakota, Fargo ................
First Bank, B ism arck..............................
First Natl. B&T, F a rg o ............................
Dakota N.W. Bk., B ism arck....................
First Natl., Grand Forks ........................
First Natl., M in o t....................................
Fargo Natl. B & T ......................................
American St. B&T, W illis to n ..................
Dakota Bk. & Tr., F a rg o ..........................
American Bk. &Tr., M in o t......................
First N.W. Natl., M andan........................
First Bk. of N.D., Grand Forks................
First Natl., J a m e s to w n ..........................
First Bk. of N.D., Minot ..........................
First Natl. B&T, Dickinson ....................
First Bk. of N.D., Jamestown ................
Walsh Co. B&T, Grafton ........................
State Bk. of Burleigh Cnty., Bismarck . .

Elected in Mayville
Elected in Carrington
Ron B artholom ay has been
elected cashier-loan officer at
Farmers State Bank in Carrington.
Mr. Bartholomay started with the
Carrington bank December 15 and
was previously serving as vice presi­
dent at McIntosh County Bank.

Expansion Completed
The remodeling project under­
taken by the State Bank of Kenmare
early last summer was recently com­
pleted and an open house held. With
the growth experienced by the bank
in the past few years, more room
was necessary, stated Jim Jorgen­
son, executive vice president.
The new addition measures 46 ft.
by 100 ft., adding 7,000 sq. ft. to the
old bank, representing a physical ex­
pansion of 140 percent.
The project included not only the
additional desk and office space, but
also remodeling of the old lobby, the
installation of a 24-hour teller
machine and a new self-contained
computer system.

Joins New Town Bank
The Lakeside State Bank, New
Town, recen tly added Curtis
Leibrand as a loan officer trainee.
Mr. Leibrand is a recent graduate of
the University of North Dakota,
where he obtained a degree in bank­
ing and finance.
Northwestern
Banker , March, 1982

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Federal Reserve Bank of St. Louis

December 31, 1981
$592,391
$386,033
149,441
98,620
144,975
77,442
122,551
84,994
122,531
93,844
122,446
63,299
121,259
76,601
99,954
66,941
93,215
59,648
88,327
59,083
83,749
48,774
76,772
58,924
75,242
40,462
72,412
44,511
65,835
41,394
61,223
33,113
61,043
41,895
58,014
35,516
52,406
33,430

December 31, 1980
$436,764
$329,079
133,887
97,479
128,699
89,651
120,396
79,911 •
120,880
87,663
106,279
59,096
109,913
76,505
100,660
69,483
79,306
48,070
78,840
49,347 •
79,154
48,997
71,224
54,267
62,198
38,831
65,377
49,022
62,146
41,425
58,686
31,745 •
55,986
42,309
51,947
33,380
45,944
30,475

Approval Received

F.
Jill Day was recently elected Ramsey Bancshares, Inc., Devils
operations officer of The Goose Lake, has received approval from
River Bank, Mayville. She will the Federal Reserve System to ac­
assume responsibility for supervi­ quire the Ramsey National Bank & •
sion of internal and computer opera­ Trust of Devils Lake.
tions.
Willard D. Sorteberg, executive
vice president & cashier, was elected
to serve on the board. He replaces
M.J. Parker who recently resigned.

Joins Bowman Bank Staff
Rick Nelson has recently joined
the staff of First National Bank of
Bowman as assistant vice president,
in the ag department.
He was previously employed by
Dakotah Bank Holding Company
and the Bison branch of Bank of
Lemmon, South Dakota.

Advanced in Fargo
The First National Bank of Fargo,
recently announced the promotion
of:
Darlene Jensen, currently person­
nel officer, to assistant vice presi­
dent, human resources; Irene
VanEeckhout, assistant personnel
officer; Dona Durbin, accounting of­
ficer, and Pat Sandvik, assistant
manager of first National Bank of
Fargo-West.
Also at First National, Richard E.
Perry, vice president and chief ex­
ecutive officer for Northwestern
Bell’s North Dakota operation, has
been elected to the board.

I. Jeannine Christy, an administrative of­
ficer in the student loan division of the
Bank of North Dakota, Bismarck, has been
chosen “ Woman of the Year” by the
Bism arck and Professional W om en’s
Organization of Bismarck. She has been a
member of the women’s organization for
approximately seven years, and joined the
Bank of North Dakota as a secretary 12
years ago. She now holds the title of vice
president and assistant manager of the stu­
dent loan division.

North Dakota News

55

Jamestown V.P. Named

Minot Promotions Told

Wahpeton Elects Two

Dennis J. Renner, assistant vice
president of First National Bank of
Jamestown, has
been promoted
to vice presi­
dent, according
to D a n ie l P.
Schorsch, presi­
dent.
Mr. Renner,
who has a BS in
agricultural eco­
nomics, was pre­
D.J. RENNER
v io u s ly
w ith
Farmers Home Administration,
Devils Lake and Ft. Yates.

The First National Bank in Minot
has announced the promotion of
T h om a s
R.
S to c k e r t
to
senior vice presi­
dent and cashier;
Kenneth A. An­
derson to assis­
tant vice presi­
dent, agri-busi­
ness; R. Wayne
Brostrom to as­
sistant vice pres­
T.R. STOCKERT
ident, personnel;
Steven D. Peck to agri-business loan
officer, and Lorraine Deck to instal­
ment loan officer.
Mr. Stockert started his banking
career in 1963 and joined First Na­
tional in 1976. Mr. Anderson joined
the bank in 1976 and was promoted
to agri-business loan officer in 1979.
Mr. Brostrom, who joined the staff
in 1978, has been serving as person­
nel officer since 1979. Mr. Peck
started with the bank in 1979 and
was appointed agri-business loan
rep later that year. Ms. Deck has
worked at First National since 1967,
most recently as assistant loan of­
ficer.

First Bank of North Dakota
(N.A.)-Wahpeton has announced the
promotion of Paul Skorheim and
Bruce Heysse as assistant vice
presidents.
Mr. Skorheim joined the ag
department of First Bank in 1977,
and is currently an ag lending of­
ficer.
Mr. Heysse began his banking
career in 1977 as an instalment
lender, moving into the commercial
lending area in 1979.

^ NABW Committee Meets
To Plan State Conference
The National Association of Bank
Women State Conference Chairper­
son, Evelyn Zelmer, vice president
® for the bank of North Dakota,
Bismarck, met with the conference
planning committee in Bismarck
recently to organize the North
Dakota State Conference of the
• NABW, Inc.
With an “ accent on management
leadership,” the conference is
scheduled for April 28-30 at the
Kirkwood Motor Inn in Bismarck.
® All bank officers are encouraged to
make plans to attend.

Valley City Elects Two
The Northwestern National Bank
of Valley City has recently an­
nounced the election of Dennis Claus
to the position of vice president and
cashier and Harlee Olafson to com­
mercial loan officer.
Mr. Claus has been with the bank
since 1973, having previously been
em ployed by the Valley City
Municipal Utilities.
Mr. Olafson is a graduate of
Valley City State College and has
been with the bank since 1979.

K.A. ANDERSON

R.W. BROSTROM

L. DECK

Elected to Board

H. OLAFSON


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Federal Reserve Bank of St. Louis

B. HEYSSE

Bank Capital Increases
The Department of Banking and
Finance has announced that the
following banks have increased their
capital by stock dividend:
The First State Bank of Cando,
Cando, $750,000 to $1,000,000; The
First State Bank of Cooperstown,
Cooperstown, $250,000 to $500,000;
First State Bank of Goodrich,
Goodrich, $75,000 to $150,000;
Walsh County Bank and Trust Co.,
Grafton, $900,000 to $1,800,000;
The First State bank of Munich,
Munich, $400,000 to $800,000;
Lakeside State Bank, New Town,
$200,000 to $300,000, and Northwood State Bank, Northwood,
$225,000 to $450,000.

First Bank ■ Minot Elects

S.D. PECK

D. CLAUS

P. SKORHEIM

Marvin Erdmann, president of
the Bismarck Super Valu Division,
and David Vanderscoff, president
and chief executive officer of
Manhattan National Life Insurance
Co., Bismarck, were recently elected
to the board of Dakota North­
western Bank, Bismarck.

First Bank of North Dakota
(NA)-Minot has recently elected
Morris J. Lawrence, vice president
and cashier, as comptroller; Gloria
Hultberg as assistant vice presi­
dent, and Ed Everts as operations
officer.
Mr. Lawrence has been with the
bank since 1939 with experience in
all departments. Ms. Hultberg
began her banking career at First
Bank in 1966. Mr. Everts started
with the First Bank system in 1977
as a management associate with
First National Bank, Cloquet.
A lso at First Bank, Benny
Northwestern Banker, March, 1982

56
Bechtold, founder of Bechtold E x­
cavating and starter of Lowboy Ser­
vice and Bechtold Paving, has been
elected to the board.

Fargo National Names
New Executive Vice Pres.
Jerry Just has been elected ex­
ecutive vice president of Fargo Na­
tional Bank and Trust Company,
Fargo, effective
March 1. Mr.
Just fills the
vacancy created
by the advance­
ment of David
D. Gordon to the
p re s id e n cy o f
Fargo National
after C.S. Miller
was moved up to
chairman.
Mr. Just is a native of North
Dakota and received his degree from
Jamestown College in 1958. He joined
Northwest Bancorporation in 1961
with Dakota Northwestern Bank,
N.A., moving to Banco’s affiliate,
First National Bank of Fargo, in
1967. Then, in 1973, Mr. Just
transferred to Northwestern Na­
tional Bank in Sioux City, la., also a
Banco affiliate, and has served as a
vice president in commercial and ag
lending since that time.
Mr. Just was graduated from the
University of Wisconsin Graduate
School of Banking in 1980.

Tom Fix, Denis J. Trom and
Bruce Zavalney have been promoted
John McGinley, president of the
American State Bank & Trust Co. of to assistant vice president and Toni
Hieb, personal bank officer.
Williston, has announced the promo­
Mr. Fix has been employed with
tion of Marian Dunn to instalment
the
bank since 1978, most currently
loan manager, Rick Braaten to in­
as
a
commercial loan officer.
stalment loan officer, and Dave
Mr.
Trom is presently manager of
M cAdoo to commercial lending of­
the
personnel
department and
ficer.
joined the bank in 1978.
Mr. Zavalney, who has been with
Four Promotions Announced the bank since 1977, is an
a g ricu ltu ra l loan o ffic e r and
At Devils Lake Bank
James V. Kuchar, president of manager of that department.
Ms. Hieb has been a bank trainee
Western State bank, Devils Lake,
has announced the promotion of since October of 1980.
J.A. Leiphon to senior vice presi­
dent and operations officer; Dean A.
Pecka to vice president; Lonnie D.
Parsons to vice president and
agricultural representative, and
Sheila K. Windjue to cashier.
Mr. Leiphon, who joined the bank
in 1970, was appointed vice presi­
dent and cashier in 1979. Mr. Pecka
joined the bank in 1976 as a loan of­
ficer. Before joining Western State,
T. FIX
D.J. TROM
Mr. Parsons was an assistant coun­
ty supervisor, certified appraisor
and emergency loan supervisor at
the USD A Farmers Home Adminis­
tration in Newtown. Ms. Windjue
began her employment with the
bank in 1971.

Williston Names Three

^
w

^

£

m

Four Named in Bismarck
The First National Bank & Trust
Co. of Bismarck and Bob Westbee,
president, recently announced the
following elections:
New officers elected were:
Jerry McCrimmon to vice presi­
dent in marketing. Mr. McCrimmon £
came to Wyoming National Bank of
Casper from Wyoming National
Bank of East Casper, where he had
served as vice president and cashier
since that bank opened in December #
of 1979.
Kasa Long, Mary Price and Gary
Sloan were promoted to the position
of installment loan officer. Mrs.

Wyoming National Bank
Announces Recent Elections
Robert W. Miracle, president of
the Wyoming National Bank of Cas­
per, recently announced the promo­
tions of two officers and the election
of 10 new officers to the bank staff.
Promoted were:
Charles W. Derby to the position
Northwestern
Banker, March, 1982

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Federal Reserve Bank of St. Louis

of vice president and cashier. Mr.
Derby joined the bank in April of
1977 as vice president of operations.
Gary Wickam previously vice
president in the commercial loan
department, was promoted to the
position of vice president and assis­
tant manager of commercial loans.
Mr. Wickam has been at Wyoming
National Bank since 1979.

C.W. DERBY

G. WICKAM

Wyoming News

57

# Long has been with Wyoming Na­
tional Bank since 1980, Mrs. Price
since 1979 and Mr. Sloan recently
joined the bank coming from Long­
mont, Colorado.

L. JOHNSON

N. SHERMAN

Appointed Loan Officer
K. LONG

J. MC CRIMMON

M. PRICE

Tim Walker was recently ap­
pointed a loan officer at the First
State Bank of Newcastle, according
to Don Jording, president.
Mr. Walker previously worked
five years at Farmers State Bank
and Trust, Canton, and is presently
in his third year of continuing educa­
tion at the Colorado Graduate

®

_
™

^
w

G. SLOAN

TOCKMENS Bank and Trust
Rae McAdam was elevated to the
Co., Gillette, recently held a
position of assistant auditor. She
joined the bank in the auditing week-long promotion to celebrate
“ topping o ff” steelwork on its
department in September of 1980.
seven-story
building addition. Topp­
June Wilcox was promted to the
position of accounting officer. Mrs. ing off is steelworkers’ jargon for
Wilcox has been with Wyoming Na- raising the last piece of structural
steel into place during construction
tional Bank since 1952.
of
a multi-story building.
Louise Johnson was elected to the
Stockmens Bank placed the last
position of personnel administrator.
Mrs. Johnson joined Wyoming Na- piece of steel, painted white, in front
tional Bank in 1977 as a commercial of its present facility during the
week and encouraged the public to
loan secretary.
Nancy Sherman has been in the autograph it. The bank also passed
operations department of the bank out plastic hard hats with Stocksince 1979, and was just elected to mens Bank and Bank Building Corp.
the position of manager of lobby logos, donated by Bank Building.
teller services.
Helen Fay Butler was elected to
the position of manager of the W ol­
cott drive-in facility. Mrs. Butler
has served the bank in various
operational functions since 1975.
Pam Snell, elected corporate trust
officer, joined Wyoming National
Bank in August of 1975 with the
trust department.

R. MC ADAM

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

J. WILCOX

P. SNELL

School of Banking.

New Building Completed
First State Bank of Afton recent­
ly moved into its new quarters and
the old building was moved away,
announced Clair Norton, president.
An open house was held in February
to celebrate the new facility’s com­
pletion.

Stockmens Bank and Trust Co.
Celebrates “Topping Off”

S

^

H.F. BUTLER

It is a lso tr a d itio n a l for
steelworkers to hoist a Christmas
tree with the beam on topping off.
The tree was donated to the bank by
Gillette Boy Scouts.
Once completed, the addition will
give the bank a total of 80,000
square feet and provide expanded
facilities for all bank departments
including a huge new lobby to
facilitate customer transactions.
This is the largest construction
project of its type to be undertaken
by the Rocky Mountain Division of
Bank Building Corporation. The
project is being financed through
Colorado National Bank of Denver.

LEFT: Ready to raise the beam is (I to r) Ollie Kane, Stockmens Bk. dir., Hal Baker, foreman
of Bank Building Corp., Bill Naramore, v.p., and Kenneth Naramore, pres., Stockmens Bk.
RIGHT: The beam is swung into place atop the seven-story addition to Stockmens Bank.
Northwestern Banker, March, 1982

58

Poison Promotion Told

Largest Banks in Wyoming

D

EPOSIT and loa n fig u r e s fo r W y o m in g b a n k s r e p o r tin g d e p o s i t s o f

$40 m illio n or m o re at ye ar-e nd are s h o w n in th e c h a r t b e lo w . C o m ­
p a ra tiv e fig u r e s fr o m a y e a r a g o are fe a tu re d .
(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

December 31, 1981
$183,097
$245,761
245,723
161,645
149,504
99,819
99,291
61,870
55,735
98,556
54,567
82,431
42,247
80,213
80,016
58,083
75,194
48,163
62,409
43,546
61,179
28,666
60,242
29,545
26,224
58,051
56,460
35,899
53,903
41,336
53,244
43,229
29,045
53,030
51,669
19,043
49,218
34,728
26,218
48,581
47,369
28,226
45,484
35,057
42,947
29,475
40,671
19,117
22,647
40,603

First Natl., C a sp e r................................
Wyoming Natl., C asp e r........................
Stockmen’s B&T, G ille tte ....................
Rock Springs N a t l................................
First Natl. B&T, Cheyenne ..................
American Natl., C h e ye nn e ..................
First Natl., L a ra m ie ..............................
First Natl., R iverton ..............................
Bank of Commerce, Sheridan..............
First Wyoming Bk., NA, Kemmerer . . .
First Natl., G ille tte ................................
First Natl., Powell ................................
Converse County Bk., D ouglas............
First Natl., Sheridan ............................
Jackson State B ank..............................
First Wyoming Bk., NA, Cheyenne . . . .
Rawlins Natl. Bk.....................................
Shoshone First Natl., C ody..................
First Wyoming Bk., C asper..................
First Natl., L a n d e r................................
Stockgrowers State Bk., Worland . . . .
Citizens Natl., B&T, T orrington............
American Natl., R iverton......................
Hilltop Natl., C a s p e r............................
Bank of Laram ie....................................

December 31, 1980
$251,643
$162,865
253,402
144,530
77,612
114,539
79,536
42,494
52,037
93,946
76,747
46,645
66,674
40,523
53,110
74,319
44,972
68,618
59,477
39,851
53,214
23,651
28,927
51,958
50,476
24,389
34,559
54,956
51,503
41,096
40,614
59,578
50,422
28,655
46,174
22,124
44,133
26,636
45,584
22,895
22,502
39,456
29,559
43,415
40,905
27,650
28,047
84,775
38,319
23,013

William L. Funke, chairman of
First Citizens Bank, Poison, has an­
nounced the recent promotion of
Jolanda Ingram to assistant vice
president. She is
presently man­
ager of the real
e s ta te
loa n
department.
Mrs. Ingram
started with the
bank in 1973 as
assistant cashier
and has previous
experience with
Conrad National
J. INGRAM
Bank and First Northwestern Na­
tional Bank, Kalispell; Commerce
Bank, Helena; Northwestern Bank
of Helena and First State Bank,
Missoula.

Great Falls Elections Told
Richard J. Schirber, senior opera- £
tions officer and cashier has been
promoted to vice president and
cashier and Tom D. Mathews has
been elected consumer finance of­
ficer at First Bank Great Falls, an- £
nounced John Reichel, president.
Mr. Shirber joined First Bank
Great Falls in 1978 as senior opera­
tions officer. Mr. Mathews joined in
1979 in the timepay department.
0

1982 Montana Group M eetings
For the first time since 1947, there will not be a Flying Circus in 1982,
but the group presidents have scheduled six group meetings in May.
At a meeting with the Montana Bankers Association board in Great
Falls, it was decided to divide the state into three western and three
eastern meetings. Group officers will be responsible for developing the
entire business program and social activities, allocating one hour for
MBA reports.
The Flying Circus has been permanently grounded although cor­
respondent bankers and other associate members of M BA are welcome
to attend the group meetings, which were combined where possible and
scheduled in sequence to accommodate the M BA officers and staff in
traveling around the state. The group meeting schedule follows:
Group
1
5A, 5B, 6
3A, 3B
4
2
7A, 7B

Northwestern Banker , March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Date
May
May
May
May
May
May

6
7
8
13
14
15

City
Conrad
Butte
Poison
W olf Point
Glendive
Billings

R.J. SCHIRBER

T.D. MATHEWS

Compliance Officer Named
Jan Lords was recently promoted 0
to compliance officer, according to
Robert M. Pancich, president
of First Bank
W e s t,
G rea t
Falls.
Ms. Lords be­
gan her banking
career in 1966
working in the
bookkeeping and
proof areas, and
then as a teller.
J- LORDS
Her most recent position has been in
the audit and compliance depart­
ments.

Montana News

Bank Presidents Conf. — March 28-29
ARCH 28 and 29 are the days
set for the Montana Bankers
Association’s Fourth Annual Bank
Presidents Conference, to be held at
the Sheraton in Great Falls. Robert
L. Reiquam, M BA president and
president of First Bank Miles City,
will be presiding officer at the con­
ference. The program schedule
follows:

M

S u n d a y , M arch 28
P.M .

12:00 Board of directors lunch
meeting.
6:30 Reception.
7:30 Dinner.
Master of ceremonies—Jerry
B. Wallander, MBA immediate
past president, pres., First
Bank Froid.
Speaker—Ross V. Hersey,
m o tiv a tio n a l
h u m orist,
Waynesboro, Virginia.
9:30 Adjourn.
M onday, M arch 29
A .M .

8:15 Business session.
Presiding—Erie Gross, MBA
vice pres., pres., Little Horn
State Bank, Hardin.
“ MBA
and
C on sen ­
sus’ ’—Robert L. Reiquam,
MBA pres., pres., First Bank
Miles City.
8:45 “ Pricing Bank Services/NOW
Accounts...The First Year’’—
Carl C. N ielsen, Ph.D .,
associate professor, Wichita
State University.
10:15 Coffee break.
10:45 “ Advertising Banking’’
M oderator—Earl Johnson,
member ABA Communica­
tions Council, pres., First Bank
Helena.
Speakers—A1 Paro, advertis­
ing manager of American
Bankers Association; Jack
H en sley ,
chm n.,
MBA

R.L. REIQUAM

C.C. NIELSEN


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Federal Reserve Bank of St. Louis

marketing committee, pres.,
Valley Bank, Kalispell, and
Bob Henkel, pres., Sage Adver­
tising, Helena.
11:20 Business meeting.
“ M BA Dues Structure” —
Robert Sizemore, chmn., MBA
Dues Task Force, pres.,
Western Bank of Chinook.
“ WEB SCO’’—Robert Henry,
WEBSCO dir., pres., First
Bank Southside, Missoula.
“ Bylaw Amendment on Prox­
ies.’’

59

2:45 Coffee Break.
3:00 “ Lawsuits on Foreclosures”
P a n elists —M ilt W ord al,
Church, Harris, Johnson &
Williams, Great Falls; George
Bennett, Hughes, Bennett,
Kellner & Sullivan, Helena.
4:00 Adjourn.

P.M .

12:00 Lunch
“ China Today” —Robert F.
Burke, past pres., MBA and
First National Montana Bank,
Missoula, and Marlene Burke,
slide presentation.
1:30 Business session.
“ M o n ta n a ’ s
E c o n o m ic
Future” —Montana Economic
Development Panel. Panel­
ists—Dr. Terry Anderson,
Department of Economics,
Montana State University and
exec. dir. of Montana Council
on economic education; Gary
Buchanan, dir., State Depart­
ment of Commerce, and For­
rest H. “ Buck” Boles, pres.,
Montana Chamber of Com­
merce.

A. PARO

T.L. ANDERSON

G. BUCHANAN

F.H. BOLES

Sidney Director Elected
Ingvard Svarre, chairman of the
Richland National Bank, Sidney, has
announced the election of Keith E.
R obinson, vice president and
cashier, to the board.

Largest Banks in Montana
EPOSIT and loan fig u r e s fo r M o n ta n a b a n k s r e p o r tin g $50 m il l i o n or
m o re d e p o s i t s are s h o w n in th e c h a r t b e lo w as re p o rte d at year-end.
C o m p a r a tiv e fig u r e s fo r a y e a r e a r lie r a ls o are re p o rte d .

D

(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

Midland Natl., B illin g s ............................
Security Bk., NA, B illin g s ......................
First Northwestern Natl., Billings ........
First Natl., Great F a lls ............................
Northwestern Natl., Great F a lls ............
First Metals Bk., B u tte ............................
First Bk., Western Montana, Missoula .
First Natl. Montana, M is s o u la ..............
First Natl., B ozem an..............................
First Interstate Bk. of Kalispell* ..........
First Natl., Anaconda ............................
First Natl. B&T, H e le n a ..........................
First Security, B ozem an........................
Northwestern Bk., H elena......................
Montana Bk., Great Falls ......................
First Natl., Miles C ity ..............................
First Northwestern, K a lis p e ll................
First Security B&T, Miles C ity ................
First Natl., L e w isto w n ............................
Richland Natl., S idney............................
First Natl., H a v re ....................................
First Westside Natl., Great F a lls ..........

December 31, 1981
$225,471
$168,878
219,972
142,711
161,830
123,006
150,418
75,934
108,511
79,728
102,604
37,327
100,815
62,503
95,448
65,186
92,865
64,203
85,284
62,371
84,980
47,805
84,320
46,341
81,732
55,427
75,650
47,540
73,170
63,506
72,614
46,875
70,264
48,909
69,691
36,657
64,530
47,647
53,842
24,743
53,344
44,276
52,158
37,187

December 31, 1980
$211,826
$150,464
206,158
133,915
141,151
115,292
153,484
85,993
115,602
76,572
81,696
42,613
103,078
75,829
97,614
71,276
85,563
63,993
80,495
55,332
72,465
41,977
68,229
46,488
76,439
47,999
81,632
50,360
74,531
57,654
69,771
45,718
66,668
44,213
65,654
36,711
61,408
41,156
47,747
22,471
48,537
35,748
50,907
39,331

‘ formerly Conrad National
Northwestern Banker, March, 1982

60

Montana News

Bankers Conduct Ag Conference
VER 160 bankers from across
the state attended the 33rd
Montana Bankers Association Agri­
cultural Credit Conference held
February 11-12 in Bozeman, featur­
ing more than a dozen highly qual­
ified speakers.
Dr. Terry Anderson, professor of
ag-economics at Montana State Uni­
versity, told the conference that sup­
ply side economics has worked in the
p a st and co u ld w ork again.

O

are traditionally paper rich and cash
flow poor. They must learn to lock in
profits and emphasize cost control
instead of volume. He further ad­
vised farmers to practice preventive
maintenance on equipment, reduce
capital and cash outlays, and con­
sider refinancing to lengthen repay­
ment schedules.
The conference heard about hedg­
ing, microcomputers, outlook dis­
cussions on agri-business, and the

recently announced the election of f
Clay Landry, agricultural represen­
tative, and Roland Olson, R.E. and
instalment loan representative, to
assistant vice presidents.
Advanced to assistant cashiers 0
were: G eorgia N orderu d, ad ­
m in is t r a t iv e
o ff ic e r ;
S te lla
Feisthamel, Marge Hart, and Mary
Doll, customer service officers, and
Barbara Lee, internal operations of- 0
ficer.

Two Promoted in Bozeman
Peter J. Van Nice has been pro- •
moted to assistant vice president
and David D. Anderson to opera­
tions officer and manager of tellers,
at First National Bank of Bozeman,
according to Harry W. Newlon, ®
president.

LEFT: Dr. Terry Anderson, prof, of ag-economics at Mont. State Univ., and Dr. Mike Beohlje,
prof, of economics at Iowa State Univ., Ames, la., were featured speakers at the 33rd MBA
Ag Credit Conf.

However, he said, Reagonomics may
have some trouble being effective
because the incentives meant to be
provided by the tax cuts are gobbled
up by inflation and their effect
neutralized. He said the situation is
different from in the past where the
economy was beseiged by either
high interest rates or inflation. Now,
he shrugged, we have both.
Dr. Mike Beohlje, professor of
economics at Iowa State University,
Ames, Iowa, warned the bankers
that the businessmen had better
switch their economic thinking over
to “ risk management” to survive.
Why? Because, he predicted, far­
mers will reap only low profits
through 1985, and even though pro­
fits will stay abreast of inflation, the
potential for great profit as well as
massive failures is aggravated by
high and volatile interest rates, com­
petition, and the fact that food has a
political aspect. To survive, farmers
must not only produce the food, but
they must market it competitively,
and especially, they must employ
risk management.
To change to risk management,
Mr. Boehlje said that agri-business
people must learn the difference be­
tween cash flow and profit: farmers

Northwestern
Banker , Ma rch , 1982
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Federal Reserve Bank of St. Louis

status of Monatana bankers’ ability
to increase ag loans by forming ag
credit corporations which would
receive their loan monies from the
Spokane Federal Interm ediate
Credit Bank. Research members of
MSU explained their efforts in
sheep research for improved yield,
biological weed control, and the use
of ethanol production by-products
as feed stock.
Special guests of the A g Commit­
tee included Jim Johnson of the U.S.
Department of Agriculture, Gary
Buchanan, director of the Depart­
ment of Commerce, Les Graham, ad­
ministrator of the Brands Enforce­
ment Division of the Department of
Livestock, and Keith Kelly, deputy
director of the Montana Department
of Agriculture. Wayne Gibson, vice
president of 1st Security Bank of
Bozeman, is the out-going A g Com­
mittee chairman. Hal Brown, First
State Bank of Fort Benton was
elected committee chairman for
1982-83, and Curt Schwartz, 1st
Security Bank of Miles City, was
elected vice chairman.

Glendive Changes Told
First National Bank of Glendive

P.J. VAN NICE

D.D. ANDERSON

Mr. Van Nice began his banking
career with First National in 1977 ®
and became personnel officer in
1979.
Mr. Anderson moved to First Na­
tional Bank in 1979 as an operations _
clerk, and became supervisor of ^
tellers in 1980.

From the Old West
to The Far East
Wells Fargo Bank’s 113-year-old
“ Century” stagecoach, symbol of
the pioneer banking and express
firm, is on its way from the Port of
Oakland to Fukuoka, Japan, where
it will be displayed at the Expo ’82
transportation exhibition from
March 19 to May 31, 1982. The
coach will be part of the City of Oak­
land pavilion, commemorating the
20th anniversary of the OaklandFukuoka Sister City Society.
The stagecoach is making its
tra n s -P a cific jo u r n e y a b oa rd
American President Lines’ (APL)
containership “ P resident M c­
Kinley,” which is sailing to Kobe,
Japan. The coach will then travel by
ferry to Moji and, finally, by land
transportation to Fukuoka.

61

president. Herman J. Zueck, senior
executive vice president will oversee
the activities of the division.
Mr. Dietler has pursued a career
in the petroleum industry since
1936, most recently as chairman and
chief executive officer of Northern
Tier Pipeline Company.

Promoted in Englewood
Central Bank of Denver
Announces Staff Changes
^

Central Bank of Denver recently
promoted Clarence H. Degenhart to
vice president. Mr. Degenhart
joined Central in 1965 and has serv­
ed in various departments of the
<ft bank.
Promoted to assistant vice presi­
dent were: Marie K. Abbato, Marcia
A. Fitzgerald and Harlan L. Pepper.
Eight employes were also pro4 f t moted to officer status. They are:
Richard P. Anson, retail lending;
Elton J. Baggett, securities; Carol
A. Buchanan, personal trust; Ran­
dall F. Komisarek, staff attorney;
# Shauna T. McCaffery and Mary L.
Stuckey, customer services; Cindy
A. Perret, human resources, and
Philip J. Randell, correspondent
banking.

First National ■ Denver
Elects Senior V.P.s

Mr. Snow joined the bank in 1978
and named vice president of cor­
porate banking and manager of
general business services in 1979.
Mr. Martin, who joined in 1979,
served as vice president two years in
retail product management and one
year in marketing.

Elected to Board
James E. Johnson, owner and
operator of Edwards Bros. Inc., and
Donald N. Tolin, president of Tolin
Refrigeration, have been elected to

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Federal Reserve Bank of St. Louis

the board of Arvada State Bank, Ar­
vada.

Energy Division Expanded
C. Gale Sellens, chairman and
chief executive officer of Denver Na­
tional Bank recently announced the
association of Cortlandt S. Dietler
as energy consultant, in conjunction
with the expansion of Denver Na­
tional Bank’s energy division.
The energy division, which will
concentrate primarily on arranging
financing for domestic gas, oil,
energy and natural resource-related
projects, will be headed by Mr.
Dietler and Van A. Horsley, vice

The First National Bank of
Englewood has announced the pro­
motion of Douglas D. Watson, vice
president, to head of the commercial
loan department; Dennis C. Graham
to vice president of operations, and
Nick L. Saulters to assistant vice
president of consumer lending.
Also at First National Mark Fix
was appointed security officer and
Mildred Post to trust operations of­
ficer.

Named Executive V.P.
R. Bruce Robinson has joined the
First National Bank of Glenwood
Springs as executive vice president,
announced Ernest J. Gerbaz, presi-

Largest Banks in Colorado
EPOSIT a n d loa n f ig u r e s fo r C o lo r a d o b a n k s r e p o r tin g d e p o s i t s o f
$70 m il l i o n o r m o re at ye ar-e nd are s h o w n in th e c h a r t b e lo w . C o m ­
p a ra tiv e fig u r e s fr o m a y e a r a g o are fe a tu r e d .

D

(Last three figures omitted)
December 31, 1981
December 31, 1980
Deposits
Loans
Deposits
Loans
1. United Bank of D enver.......................... $1,595,979 $1,245,241 $1,357,013 $1,014,442
2. First Natl., D enver..................................
1,283,816 1,132,182 1,338,546
893,764
3. Colorado Natl., D e n v e r..........................
882,992
646,740
719,334
514,794
4. Central Bank of D enver...................... ....
754,980
561,711
722,824
491,269
5. Denver Natl. B a n k ..................................
281,106
134,244
214.292
89,657
6. First Natl., Colorado S p rin g s ................
218,092
145,552
202,898
121,354
7. American Natl., D enver..........................
206,487
161,331
205,532
151,026
8. First Natl., Fort C o llin s ..................
175,168
133,193
171,130
129,747
9. Exchange Natl., Colorado Springs
168,631
101,367
151,403
99,960
10. University Natl., D e n ve r........................
157,046
115,466
135,175
96,268
11. First Natl., B o u ld e r................................
148,426
108,796
140,186
99,809
12. Jefferson B&T, L a k e w oo d ....................
145,500
106,700
146,300
107,700
13. First Natl., Englewood ..........................
135,961
92,821
113,242
76,162
14. Colorado Springs Natl. Bk......................
128,662
87,508
114,590
79,270
15. Greeley Natl. Bk. ....................................
127,930
89,895
120,696
84,553
16. United Bk. of Ft. C o llin s ....................
122,001
96,482
113,486
87,660
17. First Natl., G re e le y ................................
118,534
86,930
104,446
70,649
18. U.S. Bk. of Grand J u n c tio n ....................
118,287
89,910
107,345
72,408
19. Guaranty B&T Co., D enver....................
114,326
87,104
111,409
81,153
20. First Natl., Grand J u n c tio n ..................
100,487
75,947
89,092
57,669
21. First Interstate, E nglew ood..................
100,413
72,804
85,756
68,213
22. Colorado St. Bk., D e n ve r......................
97,467
43,967
81,076
37,541
23. First Natl., P u e b lo ..................................
94,937
60,681
100,417
61,004
24. First Natl., G o ld e n ..................................
94,907
69,148
88,316
63,826
25. Lakeside Natl., Denver ..........................
90,340
75,545
92,454
70,214
26. Mountain St. Bk., D enver......................
86,748
49,985
80,805
43,206
27. First Bk., Westland NA, Lakewood . . . .
86,462
67,887
88,428
62,130
28. Cherry Creek Natl., D enver....................
84,275
63,358
87,537
57,752
29. First Natl., Glenwood S p rin g s ..............
80,270
62,116
65,672
46,803
30. United Bank, G re e le y ............................
78,262
56,751
81,644
59,287
31. Pueblo B&T, P u e b lo ..............................
72,803
46,838
68,397
48,886
32. Natl. City Bank, D e n ve r........................
70,561
50,650
68,795
46,692
33. Security State, Sterling ........................
70,534
48,183
67,085
44,396
Northwestern Banker, March, 1982

62

Colorado News

dent. He replaces Raymond L. Guerrie, who recently was appointed
president of First National Bank in
Battlement Mesa, a new affiliate of
Central Bancorporation, Inc.
Mr. Robinson has been with Cen­
tral Bancorporation since 1977, ser­
ving most recently as vice president
and loan coordinator at First Na­
tional Bank in Grand Junction.

Appointed to President’s
Commission on Housing
Robert G. Boucher, chairman and
president of First Denver Mortgage
Com pany, has
been appointed
b y P r e s id e n t
Ronald Reagan
to th e P r e s ­
id e n t’ s C om ­
m is s io n
on
Housing.
“ E stablished
b y e x e c u t iv e
order in June
1981, the ComR'®‘ B0UCHER
mission is expected to advise the
President and the Secretary of
Housing and Urban Development
on options for the creation of a na­
tional housing policy,’ ’ said Mr.
B ou ch er, w h ose a p p oin tm en t
became effective in January.
Mr. Boucher, the second Denver­
ite to be appointed to the 30-member
Commission, is past president of the
Mortgage Bankers Association of
America and attended a 1980
United Nations Housing Conference
in Geneva, Switzerland, as a
member of the United States delega­
tion.

New President Named
Dennis E. Peterson was recently
elected president of South Colorado
National Bank, Denver, announced
Will F. Nicholson, Jr., president of
Colorado National Bankshares, Inc.
He succeeds Fred Hitchcock who
will serve as vice chairman. Mr.
Peterson has been in banking 24
years, serving most recently as ex­
ecutive vice president of Citizens
Bank, Farmington, New Mexico.

Appointed President
John B. Harless, Jr. has been ap­
pointed president of Central Bank of
Iverness, N.A., a new subsidiary
bank of Central Bancorporation,
Inc., which anticipates opening for
business mid-March, 1982.
Mr. Harless has been with Central
DigitizedNorthwestern
for FRASERBanker , March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Bank of Denver since 1972, most
recently serving as vice president in
charge of the middle market and
professional banking for the com­
mercial banking division.

CBI to Purchase Bank
George B. McKinley, president
and chief executive officer of Central
Bancorporation, Inc., and Marvin F.
Owens, III, president of Broomfield
State Bank, recently announced an
agreement in principle for the pur­
chase of the bank by CBI.
The acquisition of the bank will be
accomplished through the purchase
of General Bancorporation, Inc., the
holding com pany which owns
Broomfield State Bank. The tran­
s a c tio n a w a its a p p ro v a l b y
regulatory authorities.

Markets, Inc., has been elected a ^
director at United Banks of Col­
orado, Inc., Denver. He replaces the
late John Bugas.

Wells Fargo to Open
New Bank in Calgary

Wells Fargo & Company, San
Francisco, has received approval 0
from Canadian banking authorities
to open a nationally chartered Cana­
dian bank.
The new bank, to be called Wells
Fargo Bank Canada, will be head- #
quartered in Calgary, Alberta. Of­
fices will be located at #3106, 425
-1st Street Southwest, Calgary.
Peter G. Wood, formerly head of
international banking for Canadian ®
Commercial Bank, Edmonton, has
been named president and chief ex­
ecutive officer of the new Canadian
bank.
Senior’s Program Started
Wells Fargo Bank Canada is the ®
First National Bank of Engle­
first chartered bank to establish
wood has announced the start of a
headquarters and maintain exec­
program called “ Seniors First,’ ’
utive offices in Calgary, says Mr.
which gives senior status and
Wood. The bank will provide whole­
special service to the bank’s seniorsale lending services to the middle ®
age customers.
market and foreign exchange ser­
Allene J. Outman, new accounts
vices as well as the international
receptionist, has been named to
banking services available through
head the program, which will offer
the worldwide Wells Fargo organiza­
specialized counseling on financial
tion.
matters for the bank’s senior cus­
tomers. A special desk and reception
area in the bank lobby has been
designated, equipped with a display Named to the Board
board for community and social
James Edward Nielson, an oil in -®
events for seniors. A newsletter is vestment consultant and managing
also planned.
director of Nielson International in
Cody, and Donald D. Hoffman,
chairman and chief executive officer
of Central Bank of Denver and o f®
Montrose Officer Named
Central
Bancorporation, Inc., have
Marian A. Thomas has been ap­
pointed to the position of operations been named to the board of the
Denver Branch of the Federal
officer at the
Reserve Bank of Kansas City.
United Bank of
Montrose, accor­
d in g
to
G.
First National Names V.P.s
Rogers Coman,
presid en t and
Six new vice presidents have been
chairman.
named by the board of First Nation­
Ms. Thomas
al Bank of Denver, according to
joined the bank
Robert E. Lee, president and chief
in 1973 and has
executive officer. They are as
served in the ac­
follows:
M.A. THOMAS
counting, teller,
Michael Austin, corporate bank­
and customer service areas.
ing; William R. Braden, retail bank­
ing; J. Jeffrey Dohse, trust banking;
Betty J. LeSuer, product manage­
Director Elected
ment; Mary B. Paschall, computer
Joseph C. Prinster, president and services, and Korvin L. Powell,
chief executive officer of City retail banking.

63

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First of Denver

Elbert, First of
Denver's
Bighorn, says:
"The combined
strengths of our
customers
make us that
much stronger."

17th and C a lifo rn ia
D enver, C o lo ra d o 80202
(303) 893-2211
M e m b e r FDIC
M e m b e r First N a tio n a l B a n c o rp o ra tio n

New banking...new friends...new spirit.

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

Northwestern Banker , March , 7982

64
Schmidt, assistant cashier, manager £
of the south motor bank.

r

Nebraska

New Bank Charter Is
Approved for Columbus

W. W. Cook, J r . , p r e s . , Beatrice
R.M. Beverage, exec. v . p . , Lin coln

Ag Outlook Conference - March 24-25
OOKING into the Crystal
L Ball for Nebraska’s Agri­
cultural Econom y” will be the
theme for the Nebraska Bankers
Association 1982 A g Outlook Con­
ference, March 24-25, at the Kear­
ney Holiday Inn, Kearney. Tom
Stuckey, chairman of the NBA ag
committee and senior vice president
of First National Bank, Kearney,
will preside at the conference. The
program schedule follows:

T. STUCKEY

D. WARDELL

Wednesday, March 24
A.M.
11:30 Registration
12:00 Informal lunch buffet
P.M.
1:00 “ Grain Outlook” - Neil Harlan,
Scoular Bishop Grain Co.,
Omaha.
2:00 “ A Banker’s Insights on Hedg­
ing” — Dick Wardell, vice pres­
ident of Washington County
Bank, Blair.
3:00 Break
3:15 “ Legislative Outlook” — Ques­
tion and answer session.
5:00 Cocktail reception

R. CARPENTER

S. WHITEMAN


Northwestern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Thursday, March 25
A.M.
8:30 Continental breakfast
9:00 “ Hog Outlook” — Archie
White, Fremont.
10:00 Break
10:15 “ Outlook for Various Energy
Sources” — Panel — Rex Car­
penter, Nebraska Rural Elec­
tric Association; Sam Whitemen, Kansas-Nebraska Nat­
ural Gas Company; Vince
Brown, Nebraska Petroleum
Council, and Dr. Splinter,
University of Nebraska at Lin­
coln.
12:00 Lunch — Joe Griffith, speaker.
P.M.
1:45 “ The Bank’s Role of Financing
Agriculture” — Alan Tubbs,
president of First Central State
Bank, Dewitt, Iowa.
2:45 Break
3:00 “ Cattle Outlook” — Topper
Thorpe, general manager of
Cattle Fax, Denver, Colo.
3:45 Adjourn.

Five Promoted in Kearney
Five individuals were recently
promoted at Platte Valley State
Bank and Trust Company, Kearney.
They are:
James G. George, vice president
and cashier; Steve Mashek and
Frank Medo, assistant vice presi­
dent, instalment loans; Curtis Ritterling, assistant vice president,
com puter services, and Joan

J. GRIFFITH

T. THORPE

•

The Regional Administrator of
National Banks in Kansas City has
given preliminary approval for a
new bank charter, Platte Valley Na- ^
tional Bank, to be located at the
junction of Highways 81 and 30 in
Columbus, on property purchased
by the organizers at what is to be
known as King Corners Site. A tern- q
porary facility is expected to be open
for business by May 1, with a perma­
nent building to be constructed
there as soon as possible.
Heading the list of organizers is £
Richard W eerts, president of
Weerts, Boettcher Realty, Colum­
bus, who is also president of the
Nebraska Realtors Association.
Organizers include Kermit Wagner, £
president, Wagner Mills, and Leroy
Trofholz, president of Skyline Car­
riers tru ck in g firm , b oth of
Schuyler.
Other organizers are Richard 0
Kubler, insurance and investment
business; Leroy Kallweit, farmer
and rancher; Eugene Bierman,
m e ch a n ica l c o n t r a c t o r ; B ill
D riefurst, building con tractor; £
Merle Johnson, electrical contrac­
tor; Duane Schmidt, cattle feeder,
and Robert McFarland, feed mill
owner. All are from Columbus, ex­
cept Mr. Schmidt, who is from O
Bellwood.

Large Number Attends
Telephone Seminar

9

Over 600 people attended the four
free sessions of the Telephone Public
Relations Seminar sponsored recent­
ly by the Kearney State Bank and %
Trust Company, Kearney. The
crowds were much larger than an­
ticipated, a ccordin g to Larry
Wangrad, president of the bank.
John Allen, national recognized #
public relations consultant, con­
ducted the workshops, hitting upon
many of the errors that frequently
occur in business telephone com­
munications and the various ways
that a business telephone can be
answered correctly.
The workshops were sponsored by
Kearney State Bank and Trust as a
public relations service to the local
business community.

65

DEPEND

ONU.S.

We’ve served
correspondent banks
since the early 1900’s.
With the vast resources
ava ila b le to us, this
commitment w ill
continue.

Jim Campbell
Don Murphy
Sam O’Keefe

The banking industry today is not as it
was five years ago. And it will most certainly
not be the same in another five years.
Never have bankers seen so much
change. Much of the future of the banking
industry is yet to be determined.
What we do know is that the U.S.
National Bank, working together with the
tremendous resources of the BANCO
Affiliates, has committed itself to the
continuing support of our correspondent
banks.

For more information about
correspondent banking, call
Lee Bachand, Vice- President,
Correspondent Banking,
402/536-2077.

US National Bank
of Omaha

Members FDIC
Affiliates of
Banco®
Northwest Bancorporation

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

N orthw estern Banker, March, 1982

66

N e b ra s k a N e w s

Joins S ta te Bank of Firth
Sheila Park was recently em­
ployed by State Bank of Firth as a
teller and bookkeeper. Prior to start­
ing at the bank she was employed at
the Union Bank and Trust, Lincoln.

Poore N a m e d To
H e ad S e c u ritie s G roup
C. W. Poore has been elected presi­
dent of the Nebraska Securities In­
dustry Association. Mr. Poore,
secretary-treasurer of the Robert E.
Schweser Company of Omaha, has
been
in the
securities bus­
iness and as­
s o cia te d w ith
the company for
18 years. He suc­
ceeds William J.
G o u rle y , v ice
p r e s id e n t
of
Dain Bosworth,
Inc., Omaha.
Other officers
c w - P00RE

named at the annual meeting of the
association include:
First Vice President, Charles
Burmeister, president of First Mid
America, Inc., Lincoln.
Second Vice President, James Pittenger, executive vice president,
Dean Witter Reynolds, Inc., Lin­
coln.
Secretary, Bill B. Beavers, ex­
ecutive vice president, Chiles,
Heider Co., Inc., Omaha, and
Treasurer, Joseph Shosnik, ex­
ecutive committee chairman, Kirk­
patrick, Pettis, Smith, Polian, Inc.
David C. Kuehl, assistant vice
president, Dain Bosworth, Inc.,
Omaha, was elected to the board.
The Nebraska Securities Industry
Association is primarily involved in
activities designed for the improve­
ment of the securities industry.

Dies in B ertrand
Dean Junkin, a well-known
businessman in the Bertrand com-

Largest Banks in Nebraska
EP O SITS and lo a n fig u re s fo r th e to p b a n k s in N e b ra s k a w ith $50
m illio n d e p o s its o r m o re are s h 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 re p o rte d a t ye a r-e n d . C o m p a ra tiv e fig u re s fo r a y e a r a g o a ls o
are fe a tu re d .

D

(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.

Omaha Natl. Bk........................................
First Natl. B&T, L in co ln ..........................
U.S. Natl., Omaha....................................
First Natl., O m a h a ..................................
Natl. Bk. of Comm., Lincoln ..................
Northwestern Natl., O m a h a ..................
First Natl., Hastings ..............................
First Natl. B&T, C o lu m b u s ....................
First Natl., Grand Is la n d ........................
DeLay First Natl. B&T, N o rfo lk ..............
Center Bank, O m ah a ..............................
First Natl., H o ld re g e ..............................
City Natl., H a s tin g s ................................
Commercial Natl. B&T, Grand Island. . .
First Natl. B&T, F rem ont........................
Scottsbluff Natl. B&T ............................
First Natl., Y o r k ......................................
First Natl. B&T, North P la tte ..................
First Natl. B&T, K earney........................
Packers Natl., O m a h a ............................
Platte Valley St. B&T, K earney..............
First West Side Bk., O m a h a ..................
First Natl., M cC o o k................................
Southwest Bank, Omaha ......................
Gateway B&T, L in c o ln ............................
Fremont Natl. B & T ..................................
Overland Natl., Grand Island ................
American Natl., O m aha..........................
Douglas County B&T, Om aha................
Gering Natl. B&T, G ering........................
Guardian St. B&T, A llia n c e ....................
McCook Natl. B a n k ................................
North Side Bank, Omaha........................
Beatrice Natl. B&T, B eatrice..................


N orthw estern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

December 31, 1981
$703,192
$368,156
498,348
297,448
410,141
250,490
406,231
247,382
255,223
181,146
138,463
94,746
132,862
89,070
116,634
64,449
110,657
74,336
102,266
58,463
86,397
57,230
84,443
61,439
84,246
44,349
81,383
57,965
77,238
40,419
76,545
52,161
74,622
53,582
54,948
74,575
74,404
52,212
74,285
44,189
52,949
71,660
65,905
42,322
65,737
43,569
65,432
39,293
50,947
65,030
64,715
40,139
39,671
64,691
40,556
62,270
61,445
39,213
59,271
42,266
56,555
37,825
55,698
36,633
21,384
53,183
52,600
38,300

December 31, 1980
$622,321
$343,000
461,646
259,965
376,533
233,374
423,057
205,589
258,418
170,910
128,043
91,112
81,037
122,130
108,626
62,106
111,559
69,698
92,851
53,473
77,578
47,227
73,335
52,288
80,060
45,477
78,588
56,000
76,190
42,562
70,874
40,441
64,919
49,483
68,464
50,622
72,929
50,135
65,162
44,032
62,082
47,961
64,306
40,476
59,780
43,998
36,474
63,119
61,151
52,255
57,270
35,153
59,788
36,896
63,360
38,210
55,699
34,792
52,554
38,585
56,121
38,437
50,441
33,491
48,365
26,143
45,800
35,700

munity for many years, died recent­
ly. He was owner and operator of a
farming business and a Bertrand in­
surance agency. His survivors in­
clude a daughter, Paula Beverage of
Lincoln, whose husband, Roger, is
executive vice president of the
Nebraska Bankers Association.

F rem o n t Bank P ro m o tes Tw o *
Michael L. Mattson has recently
joined the staff of First State Bank,
Fremont, as vice president, and
Steven W. Calta
was promoted to
assista n t vice
president.
Mr. Mattson
m oved
fro m
First National
Bank in Chadron
where he was
vice president
and cashier.
M.L. MATTSON
Mr. Calta has
been with the bank since 1976.

John B. A d kin s Dies

•

Services were held recently for
John B. Adkins, 88, who died at the
Osmond hospital following a linger­
ing illness. Mr. Adkins purchased ^
Osmond State Bank in 1938 and was
its president until turning over
those duties to his son, Richard
Adkins, in 1969. John Adkins be­
came chairman in that year, then in ^
1980 was named chairman emeritus
when his son become chairman.
Mr. Adkins had been in failing
health for several years and had
lived with his son in Osmond. £
Richard Adkins, who was president
of the Nebraska Bankers Associa­
tion in 1974-75, died suddenly at the
age of 60 in September, 1980, after
suffering a heart attack while Q
returning from a bank meeting in
Washington, D.C.
John Adkins was a native of
Howard, S.D., moved to Norfolk,
Nebr., in 1927 and was employed by f)
Butterfield Land Co. until his pur­
chase of the Osmond State Bank in
1938.

C h a rte r A pproved
The Office of the Comptroller
recently approved the national
charter of Platte Valley National
Bank, Columbus, located at 3221
23rd Street.

67

DEPEND

ONU.S.

We've got a lot
of banking talent to
stand behind our
commitment
to correspondent
banks.

Depend on more help
from the US National Bank.
The banking staff at the U.S. National is
an impressive group.
A bank-full of folks with expertise in overline
credit, In-Bank Distributed Processing systems,
investments, funds management, marketing and
human resources plus a score of other services
that correspondent banks need and
depend on us for.
The U.S. National is committed to bringing
these services to you — our correspondent banks.
They’re also your Midwest connection to
the immense resources of BANCO, which means
there is no problem too big or too tough
to handle.

For more information about
correspondent banking, call
Lee Bachand, Vice-President,
Correspondent Banking,
402/536-2077.

Member FDIC

US National Bank
of Omaha

AH

Affiliate of
BANCO «
Northwest Bancorporation

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

N orthw estern Banker, March. 1982

68

T

1HE First National Bank of
Omaha recently announced the
following appointments:
R o b e rt W . T ritsc h , chairman of
the loan review committee, and
C h a rle s H . F rie s, J r ., vice president,
commercial loans. Mr. Tritsch
joined the bank in 1953 and was pro­
moted to vice president in 1966. Mr.
Fries joined in 1975 and was also
named division head of the commer­
cial accounts division.
A lv in P . G arcia, second vice presi­
dent, proof department, joined in
1969 and became an officer in 1977.

R.W. TRITSCH

D.R. RAWE

7Jmm m^m,

C.H. FRIES, JR.

H.T. BELLOWS

»mwmzmwm » w

T h o m a s R . H aller, second vice
president, marketing, started with
the bank in 1971 and is currently
manager of retail banking.
D a ry l R . R aw e, second vice presi­
dent, BankCard department, joined
in 1972 and was named operations
officer in 1976.
H a rry T . B e llo w s, instalment loan
operations officer, has been with the
bank since February, 1981.
S te v e n K . R itzm an , loan officer,
commercial loans, joined as a
management trainee in 1979.
S tep h en R . C och ran , assistant

A.IP. GARCIA

S.K. RITZMAN

T.R. HALLER

S.R. COCHRAN

i

J.J. CONNELLY
F.D. KELLY

N orthw estern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L.L. LAND

L. BERGERSON

operations officer, systems develop- (
ment, joined the bank in January of
1981.
J a m e s J . C on n elly , assistant
operations officer, marketing, joined
the bank in 1973 and was named a i
personal banker in 1978.
F ra n k D . K e lly and L aV ern e L .
L a n d were named assistant opera­
tions officers in the BankCard
department. Mr. Kelly joined in *
1972 and is currently in charge of
BankCard security and fraud in­
vestigations. Ms. Land joined in
1968 and is presently manager of
embossing and customer distribu- ^
tion.
L a r ry B e rg e rso n , marketing of­
ficer, data processing services,
joined the bank in December, 1981.
He has previous experience with '
IBM, Great Western Automation
and another Omaha bank.
* * *
Southwest Bank of Omaha has*
announced the change of its name to
Southwest Bank & Trust Company,
having added the trust department
headed by Jo h n R ein h art, formerly
president of the First National Bank*
of Bellevue.
Also at the bank, A n n ette B ilek
has been appointed as vice presi­
dent, as well as cashier and is in
charge of operations. She is a twenty*
year employe.
R ich ard L u p a r d u s has been pro­
moted to vice president and is in
charge of the instalment loan
department. He has been with the
bank eleven years.
C arl M ey ers, who has been with
the bank six years, has been pro­
moted from loan officer to assistant
vice president, and has been
transferred to the commercial loan
department.
* * *
Ja m e s D e M o ss, senior vice presi- {
dent of Omaha State Bank, was
elected to the board, announced
Eugene J. Zaloudek, president.
Mr. DeMoss joined the bank when
it opened in 1971.
* * *
L in d a S. A s s m u s s e n was pro­
moted to internal auditor and B a r ­
b a ra J . F ie ld to assistant operations (
officer at Douglas County Bank &
Trust Company.
Mrs. Armussen joined the bank in
1964 and Miss Field started her
career with the bank in 1972.
Also at Douglas County Bank &

Jim Flodine, Fred Kuehl, Don Ostrand, Ralph Peterson, Charles Leffler.

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70

N e b ra s k a N e w s

Trust, D o n ald F . H an e y , president
of Haney Shoe Stores, and R ich a rd
H arv e y , secretary/treasurer of the
William H. Harvey Company, were
elected to the baord.
* * *
was recently
elected vice president at First Westside Bank, accor­
ding to R. K.
Flory, president
and chairman.
M s. P le is s ,
who is director
of human resour­
ces, joined First
Westside Bank
in N ovem ber,
■ ■ ■ ■ ■
V. PLEISS
1980.
Her election
was announced by the bank’s board
at their annual meeting.
* * *
V ir g in ia

P le is s

Packers National Bank recently
announced the promotion of G erry
Sch m id t to loan officer and M ary
T h o m p so n to operations officer.

and Loan of San Diego. Mr. Tomka
is a 1979 graduate of Creighton
University currently pursuing an
M BA degree.
* * *
The 1981 Annual Mitten Contest
co-sponsored by the Omaha Chapter
of the American Institute of Bank­
ing and Center Bank drew some
2,449 entries that were judged by a
committee and then distributed by
the Salvation Army at Christmas
time to the needy children of Omaha
and surrounding areas.
Four prizes were given in­
dividuals based on workmanship,
originality and practicability and
three prizes were awarded the
organizations or clubs donating the
most entries.
N an cy C ordah l, First National
Bank of Omaha, and special ac­
tivities chairperson for the Omaha
AIB Chapter, stated that cash dona­
tions were also given by Omaha Na­
tional Bank, Northwestern National
Bank and First National Bank.
* * *
A rth u r R . L a rse n , 71, retired vice

G. SCHMIDT

M. THOMPSON

Mr. Schmidt joined the bank in
the fall of 1981 and will be in charge
of collections.
Ms. Thompson has been with the
bank seven years.
* * *

president of Northwestern National
Bank, Omaha,
died recen tly.
Mr. Larsen re­
tired from bank­
in g in J u n e,
1975, after 47
years of service
to the bank.
M r. L arsen
started his bank­
ing career in
1928 as a car
messenger and his rapid ascent had
him working under five of the seven
presidents of the bank.

M ary A n n L y d ic k was recently

appointed

training

director

and

G erry T o m k a, credit department of­

E lected to Board

ficer, at Northwestern National
Bank, according to E d w a rd A .
K o h o u t, president.
Ms. L ydick was previously
employed by First Federal Savings

First National Bank of Grand
Island has elected W. Van Wolbach
as director. Mr. Wolbach will be the
fifth member of his family, covering
four generations in 100 years, to
serve as a director of the First Na­
tional Bank.
Mr. Wolbach is senior vice presi­
dent of the Westport Bank in Kan­
sas and vice president of the Kansas
City Bankshares.

P ro m o tio n Told

M.A. LYDICK

G. TOMKA

orthw
estern Banker, March, 1982
DigitizedNfor
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Beth Koster was recently pro­
moted to loan officer at Siouxland
National Bank, South Sioux City,

according to Fran Palmersheim,
president.
M s. K o s te r
started with the
bank when it
received its na­
tional charter
and opened in
December, 1980.
Her duties will
include lending
in the instal­
ment and commB- K0STER
cercial loan area as well as credit
analysis and documentation.

N a m e d in W a y n e
Sue Jammer has been promoted
to assistant cashier of the First Na­
tional Bank of Wayne.
^
She joined the bank in 1981,
previously serving as cashier of the
Dakota County Bank in South Sioux
City.

E lected in H a s tin g s

*

Douglas W. Clarke, president of
Hastings State Bank, recently an­
nounced the election of the following
officers:
#
Rebecca L. Kindig, customer ser­
vice; Barbara G. Brown, loan ser­
vice; Beverly J. Seiko, operations,
and Craig E. Marble, loan depart­
ment.
#
Dr. Charles F. Neumann was also
recently elected to the bank’s board.

j

E lected in G rand Island
Overland National Bank, Grand
Island, recently announced the elec­
tion of Mary Kay Tuma as consumer
services officer, and Stephen D. Hornady, president of Hornady-Pacific0 |
Frontier, Inc., as a director.

C o lu m b u s N a m e s Six
First National Bank of Columbus
recently announced six promotions #j
They are:
James Bator, vice president to
senior vice president and Jerry
Micek, assistant vice president to
vice president in the com m ercial
loan department;
Larry Marik to vice president of
marketing, personnel and affir­
mative action;
Larry Redel to assistant v i c ^
president in the instalment loan
department;
Elizabeth Haskins to trust opera­
tions officer, and Rachel Braithwait
to an administrative officer.

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N orthw estern Banker, March, 1982

72

N e b ra s k a N e w s

H a s tin g s P ro m o tio n s Told

A p p lic a tio n A pproved

O. J. McDougal, president of the
City National Bank and Trust Com­
pany, Hastings, recently announced
the promotion of
Michael B. Ja­
cobson to vice
p resid en t and
a g r ic u ltu r a l
representative,
Marie Kilmer to
assistan t vice
p resid en t and
Janet Medcalf to
loan administra­
tion officer.
M B- JAC0BS0N

The Federal Reserve Bank of
Kansas City, Mo., recently approved
the application by Cedar Bancorp of
Hartington to acquire the Bank of
Hartington.

P ro m o ted at O sc e o la
Royce Schaeffer was promoted
from loan officer to assistant vice
president of First National Bank in
Osceola by the board of directors at
their annual meeting. In addition,
Becky Jo Voss was advanced to
head teller.

N a m e d in F alls C ity

M. KILMER

J. MEDCALF

Mr. Jacobson joined the bank in
1980. Mrs. Kilmer has been with the
bank since 1956 and Mrs. Medcalf
since 1967.

Richard A. Young, Jr. has been
named assistant vice president at
Richardson County Bank & Trust
Company, Falls City.
Mr. Young began his banking
career in 1965.

Four P ro m o ted in O g a lla la
Gene

Hölscher

M O N IT O R IN G C O L L A T E R A L ...

(Continued from page 19)
(which may be written off if merchandise is not
sold);
5. Determining the existence of "contra” situations
(wherein sales made to companies which also
supply the borrower with goods and/or services
which can reduce cash collected).
If the borrower furnishes sales detail, receivables
agings and financial data on a regular and timely
basis, the lender is able to verify pledged receivables,
monitor sales and turnover trends and evaluate the
borrower’s overall operating performance.
If a bank is not adequately prepared and staffed to
manage an accounts receivable loan in this manner,
consideration should be given to obtaining the services
of an experienced business lender specializing in this
type of financing.
Business lenders such as BarclaysAmerican/Business Credit, Inc. do not rely only on data provided by
the borrower but independently conduct their own
exhaustive audits of the borrower records, performance
and operating trends.
Accounts receivable lenders are trained to never
take critical information for granted. Most borrowers
accurately and honestly report collateral changes.
Independent verification, however, is well worth the
effort necessary to minimize risk of unreliable
information.

N orthw
estern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

named senior vice president and ^
agricultural officer; Pat Shevlin,
assistant vice president and instal­
ment loans and compliance officer;
Leonard Johnson, assistant vice
president and agricultural officer, £
and Lucille Wolvin, marketing of­
ficer at First National Bank,
Ogallala.

was

recently

Four P ro m o ted in N o rfo lk
DeLay First National Bank and
Trust Company, Norfolk, recently
announced the promotion of Lois M. •
Ahlman to assistant cashier and ex­
ecutive assistant.
Elected new officers were Gary E.
Gunderson, assistant operations of­
ficer; Donna Thomsen, manager in ®
new accounts, and Kolleen Hoover,
adminstrative assistant, personnel
and marketing.

E lected to Board in W a lla c e
John L. Sullivan of Wallace has
been elected to the board of directors of the Farmers State Bank of
Wallace.

q

When adequately monitored, accounts receivable £
loans can be an important service offering for banks
and a viable source of working capital for borrowers,
enabling them to meet accounts payable terms, pur­
chase raw materials, and take advantage of cost saving
trade discounts and volume purchases.
•
Drawing on the specialized skills of a business
lender to minimize the risks associated with accounts
receivable financing is a prudent and profitable course
of action when that lending service has not been ^
independently developed by a bank.
□
L E A S I N G ...

(Continued from page 18)
Leasing companies, such as Lease Northwest, pro­
vide finders fees for banks who refer customers to
them. Furthermore, they are in a position to act as
agent for these banks who themselves can utilize the
tax benefits generated by their customers. We provide
complete service for the bank by documenting the
transaction, billing and collecting the payment, and
assisting the bank in accounting for the lease, for book
and tax purposes. The bank can participate in the
benefits of leasing without a commitment of people,
training, etc.
It is important, then, for bankers to recognize the
potential benefits that can arise from leasing, both for
their customers and themselves. The world is chang­
ing, and the challenge is there for us to react in a
meaningful way.
□

73

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74


N orthw
estern Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

75

f

Return flights to the same cities are
scheduled the afternoon of Wednes­
day, March 31. The headquarters
hotel in Washington is the Four Sea­
sons Hotel. Details about time
schedule and costs may be obtained
directly from the Iowa Bankers A s­
sociation, 430 Liberty Bldg., Des
M o in e s ,
la .
50309.
P h on e
515-286-4300.

Iowa
T. C. D unlap, ch m n ., Slater
N. M ilner, e x e c, v.p ., D es M oines

Al Maser Is Candidate for IBA Office
T W AS announced late last
month by A1 Maser, president and
•chairman of the First National Bank
in Le Mars, that
he will be a can­
didate for the of­
fice of president­
-e le c t of the Iowa
Bankers Associ­
ation for the
1982-83 term.
The election is
^scheduled to be
held by mail
a .l . MASER
ballot in late
August, according to procedure of
the past several years.
® Mr. Maser is a veteran of 30 years
in the banking business. Upon com­
pleting his studies at the University
of Iowa he joined the Iowa banking
A department in 1952 as a state bank
^examiner. In 1958 he joined First
National Bank in Le Mars as cash­
ier. He was named executive vice
president and cashier in 1964 and
^ w a s elected president a year later
w when he purchased controlling in­
terest from the retiring owner.
In 1972, Mr. Maser was the foun­
der and sole organizer of the Lakes
^ National Bank in Arnolds Park at
Lake Okoboji. He also serves as
president and chairman of Lakes
National, a member of the Iowa In­
dependent Bankers.
q
During his banking career, Mr.
Maser also has been associated with
First National Bank, Sibley; First
National Bank, Oelwein, and Amer­
ican State Bank, Sioux Center.
^
He has held various appointments
with the Iowa Bankers Association
and serves currently as a member of
the Legislative Division. He is also a
member of the board of directors of
United Central Bancshares, Inc.,
Des Moines, and continues as chair­
man of United Central Bank of
Sioux City (formerly Valley State
Bank).
Mr. Maser has taken advanced fi­
nancial studies, including Harvard

I


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Federal Reserve Bank of St. Louis

Graduate School of Banking and the
Graduate School of Banking at the
University of Wisconsin. His civic
activities include serving as chair­
man of the board of trustees at
Westmar College and as a trustee of
the American Institute of Business
in Des Moines.

IBA W a s h in g to n , D.C. Trip
P lan n ed for M arch 27-31

Polk C ity C h an g es Told
The follow ing changes were
recently announced at the Polk City
Savings Bank, Polk City:
W.C. Miller from president to
chairman; Robert J. Miller from ex­
ecutive vice president and cashier to
president; Thelma A. Miller from
vice president to executive vice
president, and Ronald M. (Jim)
Crees from assistant vice president
and auditor to vice president and
cashier.
Mark R. Smith joined the bank as
a loan officer trainee.

The Iowa Bankers Association’s
13th Annual trip to Washington,
D.C., to meet with Iowa’s Congres­ M aso n C ity P ro m o tes Tw o
sional delegation and federal
H.G. Haver, president and chief
regulatory officials is scheduled for executive officer of United Central
March 27-31.
Bank & Trust Company, Mason Ci­
This year’s banking contingent, ty, has announced the promotion of
led by IBA President Tom Dunlap, Dolores McLaughlin to vice presi­
President-Elect L.C. “ Bud” Pike dent in operations and Larry Lee to
and Executive Vice President Neil assistant vice president, instalment
Milner, will once again visit with of­ loans.
ficials at the Federal Reserve, the
Ms. McLaughlin joined the bank
FDIC, the office of the Comptroller in 1966 in the instalment loan
of the Currency, and at the head­ department and Mr. Lee started
quarters of the American Bankers with the bank in 1976 and was later
Association.
elected an instalment loan officer.
Ample opportunity to meet with
Iowa’s Representatives and Sena­
tors will be arranged as usual. In ad­
dition, participants will have time
allowed for visiting some of the
historic sites in the Washington
area.
Group flights will leave from
Omaha, Des Moines and Moline on
three separate planes Saturday
morning and noon, March 27.
D. MC LAUGHLIN
L. LEE

1982 Iowa Group M eetings
Group
6
8
7
4
5
12
2
3

Date
May 3
May 4
May 5
May 6
May 17
May 18
May 19
May 20

City
Des Moines
Iowa City
Waterloo
Dubuque
Council Bluffs
Okoboji
Fort Dodge
Clear Lake
N o r t h w e s t e r n B a n k e r , M a r c h , 198 2

76

Io w a N e w s

LEFT—At Group 1 in Sioux City, Les Olson (left), pres., of (host) Sioux City Bankers Assn., and pres, of Toy Natl., welcomed by Gp. Chmn.
Harold H. Harms (center), pres., First State, Brunsville, and Gp. Secy. Bruce M. Kolbe, pres., United Central B&T, Sioux City. RIGHT— PetfA
Nielsen, sr. v.p. & cash., Ida County State, Ida Grove; Aloha and Tom Dunlap, pres, of IBA and pres., South Story B&T, and Jeannette ancr
Dick Taylor, pres., 1st Natl., Sioux City.

At Group 1 and Group 11 Meetings:

Superintendent Tom Huston Reports
Iowa Banks Are in Excellent Condition
EATH ER played a role in
limiting attendance at the
meetings of Group 1 in Sioux City
and Group 11 in Burlington last
month. Subzero temperatures had
gripped the midwest since a severe
storm hit December 27th, and with
the prospect of the seventh straight
weekend of stormy weather, some of
the bankers apparently decided to
stay home. As it turned out, the
weekend of February 12-15 was the
breakup of a winter that had given
thousands of midwesterners “ cabin
fever.”
Despite the weather prospects,
about 700 registered at Sioux City
and about 600 at Burlington. Nei­
ther group was scheduled to elect of­
ficers this year, since the current
two-year term runs until the
meetings of 1983.
Harold H. Harms, chairman of
Group 1 and president of First State
Bank in Brunsville, presided at the

W

By BEN HALLER, JR.
Editor and Publisher
and
STEVE BURCH
Associate Publisher
Sioux City meeting. Group 1 secre­
tary is Bruce M. Kolbe, president of
the United Central Bank and Trust
Co., Sioux City.
William Logan, chairman of
Group 11 and president, The State
Central Savings Bank, Keokuk, pre­
sided at the Burlington meeting.
Group 11 secretary is John F.
O ’Neill, chairman and past presi­
dent of the First National Bank in
Burlington.
Three of the speakers addressed
both meetings: Tom C. Dunlap, pres­
ident of the Iowa Bankers Asso­
ciation and president and chairman
of South Story Bank and Trust,
Slater; Neil Milner, executive vice

president of the IBA, Des Moines,
and Thomas H. Huston, superinten­
dent of banking, and president, CoH
umbus Junction State Bank.
Mr. Dunlap gave both groups a
good report on the pilot program of
that week that saw the A B A Bank­
ing Leadership Conference brought!!
to Des Moines, Minneapolis and
Richmond, Va., by satellite so that
local participants at those sites
could take part in the usual Con­
ference proceedings with the 4501
bankers normally included. The
delegation in Des Moines saw and
heard all that transpired in the
Washington Conference center and
took part in return via audio and^l
visual transmission via satellite.
Mr. Dunlap also reported that all
banks except two small ones in Iowa
are members of the IBA.
The main part of Mr. Dunlap’s ^
remarks were directed at the finan­
cial problems experienced by banks
in trying to obtain equal treatment
from federal regulatory authorities
so they can compete with unregulat­
ed competitors in the national
markets.
Mr. Milner gave further details of

LEFT—At Group 11, IBA Pres. Tom Dunlap (left), visits with Gp. Chmn. Bill Logan (center), pres., State Central Savings, Keokuk, and Gp.
Secy. John F. O’Neill, chmn. & pres., 1st Natl., Burlington. RIGHT— Bill Logan poses with his father, W.A. Logan, chmn. of State Central
Savings, and Tom Huston, Iowa supt. of bkg., and pres, of Columbus Junction State Bank. Mr. Logan and Mr. Huston’s father, Lee, have^
been banker friends in southeast Iowa for many years.
DigitizedNfor
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orthw
estern Banker, March, 1982
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Federal Reserve Bank of St. Louis

77

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Federal Reserve Bank of St. Louis

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N orthw estern Banker, March, 1982

78

Io w a N e w s

LEFT—John F. O’Neill, chmn. & pres, of 1st Natl., Burlington; Sylvan J. Nichtlng, chmn., Pilot Grove Savings, and John Mangold, sr. v.p.,
Merchants Natl., Cedar Rapids. RIGHT—Jerald Eckerson, v.p., Hawkeye B&T, Burlington; Pete DeRosier, v.p., Natl. Blvd. Bank, Chicago.
and Dean Edwards, pres., Rubio Savings of Brighton.

the Leadership Conference satellite
teleconference, although much of
that meeting traditionally is “ off the
record” to permit participants to
discuss issues freely.
He reported that the Iowa Bank­
ers Mortgage Corporation, a secon­
dary market vehicle, “ has operated
profitably each month this fiscal
year and net earnings for the cor­
poration are now forecast to be
$40,000 for the year. Since year-end,
net worth has increased from
$192,000 to $242,500 and the cor­
poration will meet the new FNMA
net worth requirement of $250,000
by the end of March.
Mr. Milner also noted that the
10th anniversary of Iowa Bankers
Insurance & Services was observed
last fall. IBIS now provides some
type of insurance service to almost
90% of the Iowa banks that own it.
Each $10 share now has a book
value of $144.54. IBIS also has
returned more than $1.25 million in
the past five years to Iowa banks
that participated in the program.
He also gave a detailed report on
the Iowa Transfer System and ITS,
Inc., that showed an escalating

Donald L. Raiff, v.p. & econ., Northern Trust
Co., Chicago, discussed “ The Economic
Outlook” at Sioux City meeting.
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Federal Reserve Bank of St. Louis

growth in all levels of activity. There
are 296 total terminals and in
December they had a total volume of
655,420 transactions, of which
241,149 went through the switch,
which ITS operates. The POS cash
register pilot at two Des Moines
supermarkets is being accepted very
well by customers at those loca­
tions. In addition, ITS will soon go
“ live” across state lines on a sharing
basis with TYME of Milwaukee.
Mr. Milner also gave a quick report
on legislation, other IBA activities
and the progress with MABSCO.
Mr. Huston gave a very positive
report on the condition of Iowa
banks, especially in view of the
deteriorating condition being noted
at savings and loan associations
because the long term mortgages
with which they are saddled are ex­
hausting their net worth rapidly.
Mr. Huston said that two years ago,
37 Iowa banks had less than 7%
capital to assets ratio; one year ago
that number had dropped to 23, and
in the past year the number has
dwindled to only seven Iowa state
chartered banks with the 7 % or less
figure, while the average of all Iowa
state chartered banks is 9%, and
climbing toward 9x/2% capital to
assets ratio, well above the
minimum announced recently by the
federal authorities for federally
chartered or insured banks.
“ Our banks are in a strong posi­
tion,” Mr. Huston emphasized,
“ which is good for times like these.
Thank you for your help. There is no
state chartered bank, or no national
bank that I know of, in the State of
Iowa on anyone’s problem list —
perhaps the only state in the nation
that can say that.”
Mr. Huston then reviewed details
of the lawsuit filed by his depart­
ment against some large brokerage

firms and several large banks and
savings and loans out of state for
having solicited, accepted and taken
out of state those deposits in connec-'
tion with All Savers Certificates
solicitation. Mr. Huston detailed the
applicable Iowa law, as he and the
Attorney General see it, and said he
stands firm in his determination t o 1
take this case to the highest level to
establish the principle that says on­
ly the chartered banks and savings
loans are authorized depositories to
accept the public’s deposits. Various1
financial associations are joining
with him in the suit, including the
IBA.
The first hearing on that suit, filed ^
several months ago, was to be held w
the Thursday following the Group
meetings.
Mr. Huston also detailed his ob­
jections to the proposed purchase of ^
Banks of Iowa, Inc., stock andw
15-year tender offer for remaining
stock made by First Bank System,
Inc., of Minneapolis. Mr. Huston
said he feels Iowa law is quite clear ^
on two points: 1. An out of state

Greeting bankers at Group 1 in Sioux City at
the CADO Systems booth were Al Sales
(left), Management Computer Systems,
Sioux City, and Ken Johnson, Modern Copy'
Systems (Sharp), South Sioux City.

Io w a N e w s

Pictures from

79

Iowa G roup M eetings

# LEFT—Jon Sailer, v.p.-cash., Farmers State, Schieswig, and Steve Hatz, v.p., Security Natl., Sicux City. CENTER— Dick Muir, v.p., United
Missouri Bank of Kansas City, and Lois Boone, sr. pers. bkg. off., Security Natl., Sioux City. RIGHT—Ben Eilders, sr.v.p., Bankers Trust,
Des Moines, and Wayne Liljegren, exec, dir., Iowa College Foundation, Des Moines.

LEFT—Ed Tubbs, immed. past pres. IBA and chmn., Maquoketa State, and Bernard Kersey, v.p., lowa-Des Moines Natl. CENTER—Gary
Stevenson, v.p., 1st Natl., Sioux City, and Boyd Hopkins, pres., Livestock State, Mitchell, S.D. RIGHT—Jerry Meyer, cash , Climbing Hill
Savings, and Tom Pohlman, corr. bkg. off.

LEFT— Penne Milliken, bkg. assoc., Continenta Bank, Chicago Gene Hagen, pres., Security Natl., Sioux C ty; Lyle F, Jacobs, chmn., 1st
Natl., Akron, and Larry Frowick, v.p., Continental Bank, Chicago. RIGHT—Don Jordahl, v.p., Bankers Trust, Des Moines; Barb Ellis, tech,
^ s u p p o rt rep., Toy Natl., Sioux City, and Colleen and Rich Breyfogle, v.p., Toy Natl.

LEFT— Dave Vaselaar, exec, v.p., Sibley State; John Rasmussen, U.S. Check Book Co., Mpls., and Jim Kennedy, a.v p., George State.
RIGHT—Chris and Dick Draper, pres., Bank of Elgin, Nebr., and Don Ostrand, v.p., 1st Natl., Omaha.

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N orthw estern Banker, March, 1982

80

Io w a N e w s

Pictures from Iowa G roup M eetings

LEFT— Paul Gargula, comm. bkg. rep., First Chicago; Earl Rodibaugh, exec, v.p., 1st NatlL, Fairfield, and his wife, Dorothy, and David
Varnerin, comm. bkg. off., First Chicago. RIGHT— Homer Jensen and Dick Buenneke, bank consultants, Des Moines; Charles EastburnQi
pres., Iowa State B&T, Fairfield, and Eddie Wolf and Cy Kirk, v.p.’s, United Central Bank, Des Moines.

LEFT— Bob Buenneke, v.p., lowa-Des Moines Natl.., and his wife, Maxine; Voldy Vanags, v.p., lowa-Des Moines, and his wife, Kay, and
Brenda and Jan Skola, pres., Farmers Savings, Kalona. RIGHT— L.C. “ Bud” Pike (center), pres.-elect of the IBA, visits with Doyle Ruble
(left), exec, v.p., and Doug Grinde (right), pres., both with Hawkeye B&T, Burlington.

LEFT— Ben Eilders, sr. v.p., Bankers Trust, Des Moines, and his wife, Vera; Roger Arwood, v.p., Bankers Trust, Des Moines; Maurice Baringer, State of Iowa treasurer, and Mary Lou and Don Carmody, pres., Mt. Pleasant B&T. RIGHT— Del Rogers, 2nd v.p., Continental Bank,
Chicago; Charles H. Walsh, pres., Farmers & Merchants B&T, Burlington, and his wife, Jane; Charles E. Walsh, v.p., Farmers & M erchants!!
and his wife, Linda.

LEFT— Bob Laughrige, sr. v.p., Union B&T, Ottumwa, and Terry Martin, v.p., Merchants Natl., Cedar Rapids. RIGHT— Frank Lockhart^
comm. bkg. off., Northern Trust, Chicago, and Richard R. Horst, v.p.-cash., Davenport 3&T.
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Federal Reserve Bank of St. Louis

Io w a N e w s

^holding company may not buy an
Iowa bank or holding company, or
control it in any way, unless it has
ownership of two Iowa banks as of
^January 1, 1971, the effective date
^ o f that law. 2. Assuming a holding
company meets the criterion just
noted, it may make an offer to pur­
chase stock only if the same offer is
^m ade on the same terms and at the
same time to all stockholders. In the
Banks of Iowa case, he said, FBS
had no ownership of Iowa banks in
1971. Also, he noted, the FBS offer
^ a s made is to buy out one individual
at this time (21% of B of I stock),
and the offer pertaining to other
stockholders is one of tentative
nature, based on the future, and at
0 different terms. Hearings on that
case presently are underway.
Donald L. Raiff, vice president
and economist for The Northern
Trust Company, Chicago, also ad(Idressed the Group 1 meeting in
Sioux City. “ So long as the Fed
money growth is high and doesn’t
mesh with the inflation rate,’ ’ he
said, “ then we will have high bi­
tte r e s t rates.’ ’
Newt Hielscher, a humorist from
Shreveport, La., completed the
Group 1 speaking program, and the
evening dinner was entertained by
# a n orchestra for dinner music and
dancing.
At Group 11 in Burlington, the
program concluded with a noon
luncheon at which Dr. Kenneth
#R oettger, a professor of science at
Southeast Community College, dis­
played his expertise with scientific
feats and tricks of magic.
□

81

I have a responsibility to
help our correspondents
deal profitably with M
changing regulations.^^
Stan Carlson
Correspondent Bank Officer
Security National Bank

When Stan Carlson talks to you about com­
pliance in today’s fast-changing world of bank­
ing, he speaks from experience—including
several years’ experience with the Comptroller of
the Currency as a bank examiner.
Stan knows how deregulation and a fluc­
tuating economy can affect your operations. So,
in addition to providing such valuable cor­
respondent services as check clearance and data
processing, he has a special commitment to
helping you anticipate and deal with the effects
of regulatory change.
Today, your continued profitability is as
important to Security National as it is to you.
Through experts like Stan Carlson, we’re deter­
mined to help you protect it.

K en n eth J a c kso n Dies
Kenneth W. Jackson, 56, presi­
dent of the Lone Rock Bank, died
last month following an extended ill­
ness from cancer. A native of
Wisconsin, where he was graduated
from the University of Wisconsin
and the Graduate School of Bank­
ing, he began his financial career
with Household Finance offices in
Hibbing, Minn.; Milwaukee, Wis.;
Springfield, 111., and Kansas City,
Mo., before joining the Lone Rock
Bank in 1954. He became president
and owner of the bank in 1961.
Mr. Jackson was widely known in
Iowa and the midwest for the travel
tours he arranged in connection with
numerous banking conventions.
His survivors include his widow,
Lela, who is chairman of the bank.


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Federal Reserve Bank of St. Louis

Your Security
Correspondent Bank
Officers
1. to r. Ken Roeder,
Stan Carlson, W ilma
Weeks, Steve Hatz,
Mike Hefner

W estern
Iow a’s
Largest

SECURITY NATIONAL BANK

Sioux City, Iow a 5 1 10 1 (712) 2 7 7 -6 5 5 4

© 1982 Security National Bank

Member FDIC

N orthw estern Banner, March, 1982

82

Io w a N e w s

F irst N a t’l. P ro m o tes T w o

Largest Banks in Iowa
EP O SITS and lo a n fig u re s fo r Io w a b a n k s re p o rtin g d e p o s its o f $55
m illio n o r m o re at ye a r-e n d are s h o w n in th e c h a rt b e lo w . C o m ­
p a ra tiv e fig u re s fro m a ye a r a g o are fe a tu re d .

D

(Last three figures omitted)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
53.
55.
56.
57.
58.
59.
60.
61.

lowa-Des Moines N atl.............................
Bankers Tr., Des M o in e s ........................
Davenport Bank & Trust ........................
Merchants Natl., Cedar R a p id s ............
United Central Bank, Des Moines* . . . .
Security Natl., Sioux C it y ......................
Natl. Bank, W a te rlo o ..............................
Dubuque B&T, Co.....................................
Valley Natl., Des M o in e s........................
Toy Natl., Sioux C i t y ..............................
First Natl., Iowa C it y ..............................
American T&S, Dubuque........................
First Natl., Sioux City ............................
First Natl., Dubuque ..............................
Peoples B&T, Cedar R a p id s ..................
First Natl., Mason City ..........................
Northwest B&T, D avenport....................
Council Bluffs Sv. Bk...............................
Peoples B&T, W a te rlo o ..........................
Waterloo Savings Bk...............................
Iowa St. B&T, Iowa C ity ..........................
Northwestern Natl., Sioux C ity ..............
Union B&T, O ttum w a ..............................
State Bk., Ft. D odge................................
First Natl., M u s c a tin e ............................
Security Sv. Bk., M arshalltow n..............
Central St. Bk., Muscatine ....................
United Home B&T, Mason C ity ..............
First Natl., Ft. D odge..............................
West Des Moines St. Bk..........................
First Natl., B u rlin g to n ............................
Union T&S, Ft. Dodge ............................
Monticello State B a n k............................
First Natl., Council B lu ffs ......................
Citizens First Natl., Storm L a k e ............
Jasper County Sv., N ew ton....................
Peoples T&S, Ind ia n o la ..........................
Hawkeye B&T, B urlin g ton......................
Hills B&T Co., Hills ................................
Farmers St. Bk., M arion..........................
Capital City St. Bk., Des M oines............
First Natl., A m e s ....................................
Clinton Natl. Bk., Clinton ......................
Plaza St. Bk., Des M o in e s ......................
Bettendorf B&T Co...................................
State B&T, Council B lu ffs ......................
Maquoketa St. Bk.....................................
Fidelity Brenton B&T, Marshalltown . . .
State Central Sv. Bk., K eokuk................
Brenton Natl., Des M o in e s ....................
First T&S, D avenport..............................
A tlantic St. Bk...........................................
Jackson St. B&T, M aquoketa................
Mahaska St. Bk., O skaloosa..................
First Natl., C lin to n ..................................
First Natl., M a rio n ..................................
First Security B&T, Charles C ity ............
Decorah St. Bk..........................................
Farmers Mer. Bk., B u rlin g to n ................
First Natl., O ttu m w a ..............................
Brenton First Natl., D avenport..............

December 31, 1981
$588,334
$745,295
487,340
294,888
411,305
184,934
188,084
373,457
152,124
282,249
237,094
115,490
85,031
182,908
96,124
158,538
89,912
150,806
79,075
147,830
85,744
144,016
141,704
86,092
79,288
139,301
90,833
134,073
62,141
122,343
122,273
86,453
121,688
76,101
120,792
73,838
118,369
68,473
118,015
66,916
73,838
115,718
108,932
77,594
107,473
58,890
103,975
66,141
103,187
83,424
102,085
56,696
41,435
99,331
96,257
61,334
70,544
95,953
95,902
58,571
94,687
53,701
94,592
59,117
94,277
49,118
92,532
58,908
48,524
90,959
48,542
88,653
86,544
45,639
82,477
53,152
82,425
46,207
41,901
81,351
43,014
80,349
77,313
37,909
77,065
44,835
52,627
71,580
70,413
43,682
69,997
41,596
67,734
44,372
42,169
66,589
27,414
66,321
66,144
45,058
66,044
53,641
64,352
23,102
62,541
41,080
62,411
40,123
61,804
36,608
31,878
61,535
61,510
36,091
59,827
42,303
58,707
20,750
37,335
55,729
36,730
55,166

December 31, 1980
$742,211
$427,734
452,091
310,157
391,771
178,490
354,272
187,344
281,557
142,423
122,385
220,881
158,395
84,539
157,107
111,215
154,023
94,893
142,404
77,386
134,897
83,556
84,353
136,018
137,925
84,526
80,347
129,653
120,591
63,206
83,944
115,623
104,103
65,786
119,574
79,635
105,179
57,476
117,342
64,814
107,656
65,050
106,545
69,905
105,084
60,737
78,222
56,776
94,082
71,425
56,237
95,505
41,232
90,009
94,558
62,878
93,107
64,901
58,942
89,097
86,526
51,768
96,799
60,064
87,181
49,547
86,583
52,491
86,073
51,078
84,249
49,011
83,487
45,740
78,256
47,516
70,270
42,835
74,519
40,988
76,011
52,740
36,914
75,693
43,335
68,509
63,178
45,463
65,224
35,142
70,250
40,536
61,309
44,076
64,576
48,246
55,657
28,763
39,704
60,279
61,123
46,698
26,142
58,976
41,034
61,019
58,259
40,610
60,421
37,775
53,357
29,605
36,833
54,460
56,002
31,408
20,624
57,515
53,655
32,460
36,277
52,489

‘ formerly Central National Bank & Trust.

K alona D irecto r E lected
Farmers Savings Bank, Kalona,
recently elected Tom Bailey as a


N orthw estern Banker , March, 1982
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Federal Reserve Bank of St. Louis

director. He fills a vacancy left by
Dave G. Yoder, who recently retired.
Mr. Yoder has been with the bank
since 1948.

Richard C. Taylor, president of
First National Bank in Sioux City,
r e c e n tly
an­
nounced the pro­
motion of Rich­
ard L. Kounkel
to Main Office
m a n a g er and
Joseph A. Steil
to manager of
the Plaza Office.
Joe D. Broders
has joined the
bank’s staff as a
R L- KOUNKEL
()
correspondent bank representative.

J. BRODERS

Mr. Kounkel joined First Na-^
tional in 1981 as a senior family
banking officer, and was associated
with Postal Financial Corporation in
Sioux City for 13 years.
Mr. Steil has been with the bank(^
since 1976, most recently serving as
building and security officer. Mr.
Steil replaces Kent F. Wigg, assis­
tant vice president, who will be in
charge of project and product devel-^
opment for the bank, making his of­
fice in the downtown facility.
Mr. Broders was previously em­
ployed with TUCO, the animal
health division of the Upjohn Com-fl|
pany, and is an agricultural
graduate of Iowa State University,
Ames.

R e m o d e llin g C o m p le te d
The First Community Bank &
Trust of Traer, recently completed a
remodelling project, according to
Melvin Kupka, president.
*
The new lobby features a recep­
tion counter and a serpentine tam­
bour oak teller counter with five win­
dows. A brick lobby floor, with inset,
carpeted areas, extends outside the’
new entrance to the heated walk­
way. In addition, the off-street park­
ing lot was expanded.
Office Concepts, Ltd. of Waterloo^
handled the entire project, and local
contractors assisted with the work.

83

Let our agricultural specialists
*
assist your bank.

#

I t pays to talk to the experts when
you need assistance with agricultural
related subjects. Neil Helvig and
Dick Coffman, both Accredited Farm
Managers (A.F.M.), have a total of
25 years experience in direct work
with agriculture. They know the dayto-day needs of your farm and ranch
customers and can readily assist you
with cash flow planning and analysis,
commodity price trends, overline as­
sistance, workout situations or any­
thing else pertinent to agriculture.
Neil Helvig, A.F.M. (above, left), Vice
President, has devoted full time to
agricultural and banking activities
since receiving his B.S. in agronomy
from Iowa State in 1956. Neil is
currently President of the Iowa
Chapter American Society of Farm

Managers and Rural Appraisers.
He’s also a board member of the
American Society of Farm Managers
and Rural Appraisers.

G ary Stevenson
Vice President
Correspondent Banking
712 - 277-0618

J o e Broders
Correspondent Banking
Representative
712 - 277-0613

Give us a call to find out how
our complete correspondent
services can benefit your bank.

Dick Coffman, A.F.M. (above, right),
Assistant Vice President, received his
B.S. from Nebraska in 1973, and
masters degree from Iowa State in
1976, both in ag economics. Dick is
an active member of the American
Society of Farm Managers and Rural
Appraisers as well as the American
Agricultural Economics Association.
When they’re not out talking to farm­
ers, you can reach Neil at 277-0617
or Dick at 277-0601. Give one of
them a call next time your bank needs
the assistance of an experienced
agricultural specialist.

F irs t N a tio n a l B a n k m
Member FDIC • PO. Box 3248, Sioux City, Iowa 51102 • A ‘BANKS OF IOWA’ BANK

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Federal Reserve Bank of St. Louis

N orthw estern Banker, March, 1982

84

Io w a N e w s

PANELISTS d is c u s s in g th e m a rk e tin g a p p ro a c h to EFT and A T M s w ere, fro m le ft: (Seated) Carmen Powell, m k tg . o ff., D a ve n p o rt B&T; Deb­
bie Ganzel, 2nd v .p .-m ktg ., lo w a -D e s M o in e s N a tl., Des M o in e s, and Carole Custer, a.v.p. & m ktg . dir., B re n to n S ta te , J e ffe rs o n . (S ta n d in g )-.
Jim Tank, pres., C e n tra l T&S, E ld rid g e ; Neil Milner, IB A exec. v.p. & m o d e ra to r; Linda K. Sebolt, v.p. & ca sh ., C e n tra l T&S, E ld rid g e , a n d ®
Dick Holthaus, a .v.p .-m ktg., M e rc h a n ts N a tl., C e d a r R a p id s. R IG H T — Helene Duffy, D u ffy & D u ffy A s s o c ia te s , N ew Y ork.

At ITS Seminar—

Positive Future Seen for Iowa ATMs
By BEN HALLER, JR.
Editor
ORE THAN lOO representa­
tives of Iowa banks attended
the Electronic Funds Transfer
Seminar conducted recently at the
Hyatt House in Des Moines by ITS,
Inc., officials.
Keynote speaker was John Sikkink, executive vice president of the
lowa-Des Moines National Bank,
Des Moines, who reviewed the devel­
opment of the ITS from its inception
in 1974.
A recent development was incor­
poration of ITS, which has been an
Iowa Bankers Association sub­
sidiary, into ITS, Inc., making it
open to Iowa savings and loan

M

associations and to credit unions.
The Iowa Credit Union League has
purchased 3,000 shares in ITS, Inc.,
giving it one seat on the ITS board.
Several s&ls are looking at member­
ship presently.
Mr. Sikkink stated, “ Anything
you do with your own internal
system must consider EFT as well
as a paper base. Both will run
parallel for some time until EFT
begins further advances.” One of
those he foresees, as a future ap­
plication, is the possibility of food
stamp delivery being accomplished
by EFT. That subject, he noted, has
been under discussion in recent
weeks.
Helene Duffy of Duffy & Duffy,
Inc., New York City consulting firm,
looked at the current efforts by

various segments of industry to set
up a nationwide system of electronic
funds transfer. She said an in- ^
hibiting factor for larger banks if
they share is MasterCard’s per item
charge of $1.62 and Visa’s $1.41
charge to the issuing card bank
when a “ not-on-us” cash withdrawal ^
is made. BofA does not want to
share its terminals, she said.
MasterCard’s fee, she said, relates
that its fee is deliberately set high to
discourage use in the local market s o '
as not to compete with local cards.
Big banks, she noted, have been
very resistant to accepting MasterCard and Visa ATM cards.
.
Mrs. Duffy said she believes the’
efforts of the Regional Interchange
Working Group (reported earlier in
the N o r t h w e s t e r n B a n k e r ), has
stimulated large banks to action,^,
noting that more than 100 requestsw
have been received for position
papers presented at the RIWG
meeting in Chicago (by ITS, TYME

LEFT— ATM m a rk e tin g p ro g ra m s w ere a n a lyze d by Burt Day, pres., B e n to n C o u n ty S a vin g s, N o rw a y, and Dick Holthaus, a .v.p .-m ktg., Mer-,^
c h a n ts N a tl., C edar R apids. R IG H T — Dale Dooley, pres., ITS, Inc., and Sharon Glass, IBA s ta ff m em ber, p ose w ith S h a ro n ’s h u s b a n d , Larry'
Glass, sr. c o m p u te r serv. o ff. at U n ite d C e n tra l B a n k o f Des M o in e s, o ne o f th e c o n fe re n c e sp e a kers.

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Federal Reserve Bank of St. Louis

85

When you use
Iow a Bankers Insurance
& Services, Inc. fo r
Creditor Protection,
you g e t
professional service.
IBIS offers YOU:
■ A fu ll line o f credit insurance products
■ A complete excess program
■ A n uncomplicated insurance program fo r the complex

agri-business world.
■ A fu lly com puterized claim system
■ Sales and product seminars
■ L ife an d credit life licensing schools

F or details ca ll our toll-free W ats line number 1 -8 0 0 -5 3 2 -1 4 2 3 ,
or w rite to G a ry Livesay or Ron M eyer.

Iowa Bankers Insurance Services, Inc.
4 3 0 Liberty Building, Des Moines, Iowa 5 0 3 0 8 ( 5 1 5) 2 8 6 -4 3 0 0
C all our toll FREE W ATS number 1 -8 0 0 -5 3 2 -1 4 3 2

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The right combination.
N orthw estern Banker, March, 1982

86

Io w a N e w s

of Milwaukee, etc.). “ I believe the
RIWG is the best vehicle to solve
the ATMs future in the United
States,” she concluded.
M itch C h risten sen , senior opera­
tions officer at the Iowa-Des Moines
National Bank, gave an interesting,
in-depth look at the development of
his bank’s EFT system and entry in­
to the ATM market. Working with a
million dollar a year budget, his
department supports 25 of its own
terminals and 21 of its correspon­
dent banks. Of the 150,000 transac­
tions per month, two-thirds are “ on­
us” he stated. “ In the long run,”
Mr. Christensen noted, “ we believe
that EFT will cost less than teller
operations.
In looking at criteria for selecting
a vendor, he made these observa­
tions: 1. Price is not so important
now because costs of equipment are
coming down and are more com­
petitive. 2. Servicing is the key;
therefore, since all ATM s need ser­
vice, get equipment that can be ser­
viced in your location quickly and
correctly, remembering that outside
ATMs in the northern climate need
temperature support to maintain
them at 40 degrees or more Fahren­
heit. The “ hottest” item right now
of ATM equipment is the drive-up
unit, he said.
L a r r y G la ss, senior computer ser­
vices officer with United Central
Bank of Des Moines, talked about
the development of ACH and EFT
systems. When looking at any com­
bination of the two systems, he
urged only the best of both, noting
the “ abominably” slow times for
certain ACH functions, plus the fact
that some ACH handling and follow­
up generates more paper work. A
goal of six-hour processing by the
Fed, Mr. Glass said, would require
that all banks be on-line.
A look at marketing develop­
ments experienced at Merchants Na­
tional Bank was given by R ich a rd
H o lth a u s, assistant vice president
and marketing director. M N B’s
system generates a 10-1 ratio in
favor of deposits over withdrawals,
he said. While EFT volume has
grown tremendously, check volume
at his bank has grown by only onehalf. Much of the success of M N B’s
EFT and ATM program lies within
its training program for employes
and indoctrination of customers on
the value of the card and educating
them on its use.

N orthw estern Banker , March, 1982
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Federal Reserve Bank of St. Louis

Peoples State Holds Open House

*

OVER 700 people attended the open house held January 31 at the Peoples State Bank,
Odebolt, to celebrate the completion of its new facility located at 3rd and Main. Construc­
tion of the new brick structure began May 1, 1981, with Structural Design, Inc., of Holstein
serving as general contractor. The main part of the bank is on one level and contains a
drive-in facility, with a community room located in the buildings basement.

B u r t Day, president of the $10
million Benton County Savings
Bank in Norway, la., gave figures
for his bank’s ATM experience that
reflect cards issued, usage and costs.
He converted his files for $500, paid
$1.50 per card, pays a small fee of
cents per month for maintenance,
has 179 cards out on 800 DDAs, had
84 transactions for $28,900 and
eight deposits totaling $23,000. A
total of 345 transactions were made
in the entire month reported, with
55 of the 179 issued cards being
used. His cost per transaction after
all considerations were 61<t each.
“ The Hy-Vee Store in Hiawatha is
our teller window there,” Mr. Day
pointed out. “ We see some of those
customers only once a year. We
make many student loans and seek a
lasting relationship from this
business. We have students and
cards in Iowa City, Cedar Rapids,
Cedar Falls, A m es and Des
Moines.”
□

E lected P res id e n t
of Iow a C h a p te r
Neil E. Helvig, vice president of
First National Bank in Sioux City,
was recently elected president of the
Iowa Chapter of the American Socie­
ty of Farm Man■'■■■■

tion’s 42nd annual m e e tin g
was held at the
over 175 professio n a l
farm
m anagers and

I

rural appraisers from all parts of
Iowa in attendance.
Mr. Helvig has been associated
with First National Bank since
1968.
•!

O ffic e rs E lected at
S e cu rity A g ri-C red it Corp.
William F. Kabourek, senior vice
president of the Security National
Bank, Sioux City, has been elected
to the board of Security Agri-Credit
Corporation, a subsidiary of Security National.
The following officers were also
elected at Security Agri-Credit:
Stephen J. Hatz, president; Keith A.
Roeper, vice president and trea- |^i
surer; James L. Young, vice presi­
dent and secretary; Ron E. Kiel, vice
president, and Kenneth D. Roeder,
vice president.

C lin to n B ank M arks 75th
Y e a r and E lects O ne

At the annual meeting of the
Gateway State Bank, Clinton, Car­
ole L. Eberhart, assistant cashier ||)|
and employe of nine years, was
elected as the bank’s first woman
director.
Robert C. Wede announced that
1982 marks the bank’s 75th anniver-i
sary. The bank was founded in 1907
in Goose Lake as the Goose Lake
Savings Bank.

Jr

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DESIGN CONSULTANTS
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The Kirk Gross Company uses local contractors and
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N orthw estern Banker, March, 1982

88


N orthw estern Banker, March, 1982
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Federal Reserve Bank of St. Louis

89

Know your
customers.
Look around. Banking has becom e on e of
'today’ s most competitive businesses.
Y our customers are being w ooed by every
financial institution in your market area.
The trick to keeping your customers loyal,
and to increasing your profits, is knowing as
(much about them as possible and keeping
that information updated daily.
Unfortunately, complete up-to-the-minute
customer profiles are rare. Background in­
formation is often gathered randomly and
stored in many different places, making it
’ difficult to obtain for useful purposes.
Until now. Until Banks o f Iowa Computer
Services Central Information File (CIF).
With Banks o f Iowa Computer Services’
CIF, complete information on your custom­
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display terminal or as hard copy.

The operative word is exhaustive. Since
every possible piece o f information gathered
is centrally stored, you have immediate ac­
cess to such things as the status and history
o f a given customer’ s account and his ac­
count relationships. The businesses he’ s in
and how they’ re doing. And any pertinent
family information.
This information is critical in making quick,
knowledgeable, profitable decisions.
CIF is the most econom ical, efficient and
sensible way to gather all this information
and to use it for increased profits.
D o n ’ t kid
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Because a lot o f other financial institutions
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N orthw estern Banker , March, 1982

90

Io w a N e w s

LEFT—Speakers included Dr. Lou Wolter, sr. prof, of adv. & p.r. at Drake University, Des Moines, and Becki and Tim Mills, Mills Adv. Agen®
cy, Storm Lake. RIGHT—Conference Chairperson Pam Merritt, a.v.p.-mktg. dir., Peoples T&S, Indianola; speaker Murray Raphel, Atlantic
City, N.J., and Don Leopold, v.p. & sr. mktg. off., American T&S, Dubuque.

Competing in Changing Financial
Scene Is Critical Marketing Task
By B E N H A L L E R , J R .
Editor

an d

O D A Y ’S rapidly changing scene
in the financial field formed a
classic backdrop for the Iowa
Bankers Association’s 1982 Bank
M arketing Conference in Des
Moines last month. Using the
theme, “ Partners on the Changing
Frontier,” members of the IB A
Marketing Committee gave 200
marketing officials plenty of ideas to
work with as they plan how to
satisfy present customers, bring in
new deposits and make inroads into
new areas of financial service.
P a m M erritt, marketing director
for Peoples Trust & Savings Bank in
Indianola and chairman of the IBA
Marketing Committee, presided at
the conference and kept the sessions
moving at a fast pace.
G eorge M o rv is, president of Fi­
nancial Shares Corp., a Chicagobased marketing, public relations
and financial consulting firm, was
no stranger to many of his audience
as he returned to the IBA to set the
stage for the conference with his
Monday night, after-dinner presen­
tation, “ Marketing Your Marketing
Program.”
M u r r a y R a p h e l, a successful
retailer in his own right and an
advertising consultant based on
that success, made a return visit to
the IBA Marketing Conference, hav­
ing taken part in “ The Great Iowa
Brain Robbery” program several
years ago. His fast-paced, down-toearth 90-minute presentation probed
the various segments of a total
marketing outline he urges bank

T

DigitizedNfor
FRASER
orthw estern Banker, M arch , 1982
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Federal Reserve Bank of St. Louis

BECK Y M CBURNEY

Associate Editor
marketers to keep in front of them
as guidelines and reference points.
The balance of the first morning
consisted of a panel moderated by
IBA Executive Vice President Neil
Milner, who hosted two non-banking
competitors from the Iowa scene:
P a t M c D o n a ld , vice presidentregion a l m anager for Shearson/ American Express, Des Moines,
and B ill O ddy, vice president, tax
planning and mutual fund, Farm
Bureau, Des Moines.
Mr. McDonald outlined his com­
pany’s conception of the financial in­
dustry 10 years from now, stating
they feel it won’t be bank, s&l or
other type, but just financial in­
dustry. He then delineated the
things his companies are doing and
how they are moving to position
themselves as one of the major sup­
pliers of financial services to all
strata of personal and corporate ac­
counts. “ We feel if we offer more
alternatives to the client, he is bet­
ter prepared to meet the needs of the
’80s,” Mr. McDonald stated.
Mr. Oddy pointed out that Farm
Bureau Life has been in the position
of offering financial alternatives to
members since 1971 through Keogh
plans and later on the IRAs since
they first became available in 1974.
When annuities began losing ground
due to inability of the company to
move with higher rates because of
supervisory restrictions, a new com­
pany was founded by Farm Bureau
in 1979 and into this was incor­
porated the IRA approach, Money

Market Fund and complete entree to
higher money center funds.
K en P en n eb ak er, executive vice®
president of Twin City Bank in
North Little Rock, Ark., gave the
case history of his bank’s com­
petitive struggle with other area^
banks in that major metropolitan
area, and reviewed the management
goals, marketing strategy and
results in the campaign to find a big­
ger share of that market on the w ay^
to making Twin City a $154 million
deposit bank — ten times its size
when the bank was purchased in
1968 by the present owners.
J . B ru ce M eriw eth er, president o f^
First National Bank of Dubuque,
who served as chairman of the IBA
Legislative Committee until a few
weeks ago, impressed on bank mar­
keters, a job he once held in his^
bank, the importance of being con­
stantly aware of the legislative front
in banking because of its direct bear­
ing on the directions banking is tak­
ing.
#
An innovative, light approach to
advertising prepartion and copy
analysis was presented by a
stimulating young couple, T im and
B e ck i M ills, owners of The M ills#
Agency in Storm Lake, la. Their
first presentation Tuesday after­
noon centered on goal-setting, pric­
ing and directions. Seminar regis­
trants were given a project to com -#
plete and turn in for evaluation. The
audience was assigned into three
groups, one for an audience of 0-29
years of age, one for 30-50, and the
third for over 50. The product to be®
marketed was a Money Market
Fund with no minimum deposit, no
early withdrawal penalties and
7-day notice for withdrawal. Each
registrant was to give a name for®
this new account, write a newspaper

Io w a N e w s

91

WINNERS in the Marketing Conference project to write an ad featuring the availability of Money Market Funds were, from left: Marilyn
^Pohorsky, mktg. dir., State Central Savings, Keokuk; Micky Lewis, pres., 1st Natl., Sumner; Mick Guttau, pres., Treynor State; Sue Buchan,
Fidelity Brenton B&T, Marshalltown, and Gary Mulhall, sr. v.p., Union Story T&S, Ames. Not pictured was another winner, Rosemary Drake,
v.p.-mktg., Bettendorf B&T. RIGHT— Participants in the “ Competition” Panel were Bill Oddy, v.p., Farm Bureau; Neil Milner, IBA exec, v.p.,
and Pat McDonald, v.p., Shearson/American Express, all of Des Moines.

ad that sells the account to the
^target market assigned, write a
neadline, body copy and describe a
suggested graphic for the ad.
Dr. Lou Wolter, senior professor
of advertising and public relations
^at Drake University in Des Moines,
rounded out the Tuesday program.
He stressed a five step program to
keep the marketing program on tar­
get. These include understanding
>the basics of advertising and public
relations as marketing communica­
tions and how to use these tools;
directions, goals and resources; total
product offering; positioning in ac­
c o r d with goals; communicating.
The second morning started off
after breakfast with a two-hour ses­
sion of round table discussions on
“ Strategic Marketing.” Each table
Igave reports after a short period of
discussion on assigned topics
relating to the marketing function:
how involved should marketers be in
the legislative process; competition
who it is, should county associa-

tions band together to promote
banks against other competitors;
what projects should the IBA
Marketing Committee undertake.
This session was followed by the
second half of the Tim and Becki
Mills show, when winners were an­
nounced.
The concluding speaker was the
dynamic, inspirational Dr. Steve
Falken. An Iowa State University
graduate, where he received a PhD
in Mathematics and an M.S. in
Nuclear Engineering, Dr. Falken
has had a varied, successful career
as a Wall Street economist, nuclear
resea rch s cie n tis t, a erosp a ce
engineer and sales trainer. As presi­
dent of Dealing with Change, and
headquartered in Sands Point, N.Y.,
he appears nationwide at marketing
and sales conferences, as well as in­
dividual consulting jobs to help
those with management responsibil­
ity for sales to plan, supervise and
carry out that function.
Chairman Merritt told the au­
dience before adjournment that
some of the ideas submitted at the
morning session would be incor­
porated in future plans of the IBA
Marketing Committee and at next
year’s Marketing Conference.
□

B u rlin g to n E le c tio n s Told
Douglas S. Grinde, president,
Hawkeye Bank and Trust, Burl­
ington, recently announced the
following elections:
Richard Reid, executive vice
president and a director; Frank
Delaney III, vice president and
senior trust officer; Dennis L. Dietzman, vice president and marketing
J. Bruce Meriwether, pres., 1st Natl., Du­ officer; Jerald A. Eckerson, vice
buque, who presented a legislative update. president and senior loan officer;

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Federal Reserve Bank of St. Louis

J.G. (Gus) McCulley, vice president
in commercial loans; Neal Frary,
Gary M. Routh and Andrew J.
Opiekun, Jr. to assistant vice presi­
dent; Stanley M. Edwards, instal­
ment loan officer, and Andrea A.
Walsh, assistant operations officer.
Mr. Opiekun was also promoted to
manager of instalment loan depart­
ment.
Doyle V. Ruble, Jr. was also
elected to the board.

In d ia n o la A d van ce d Four
Four employees of Peoples Trust
& Savings Bank, Indianola, have
been elected to receive new titles.
Janella Guilford has been elected
assistant cashier, Dotti Kieffer, loan
and compliance officer, Dick C. Stoffer, trust officer and Pamela Mer­
ritt, assistant vice president.
Ms. Guilford has been employed
at the bank full-time since the fall of
1980 as assistant to the auditor and
accounting services teller.
Ms. Kieffer has worked as real
estate loan servicing manager and
previously credit manager since
starting with the bank in 1978.
Mr. Stoffer joined the bank’s staff
as a teller in 1976.
Ms. Merritt joined Peoples Bank
in 1976 as consumer loan officer and
was promoted to marketing director
in 1978.

E lected in Royal
David Jacobsen was elected assis­
tant vice president and to the board,
Jeffrey Olson, agriculture loan of­
ficer and Leon Walker to the board
of Home State Bank, Royal, accord­
ing to Larry Olson, president. These
announcements were made after the
annual stockholders meeting.
N orthw estern Banker, March, 1982

92

Io w a N e w s

Stratford Bank Acquires New Home

M ahaska State Bank Remodels®
The Mahaska State Bank of Oskaloosa nears completion of their re­
cent remodelling according to John
Pothoven, executive vice president.^
One of the objectives of the re­
modelling was to add a personal
banking department. The new de­
partment will include five individual
customer service desks, acou stically
treated to provide for greater privacy/
during transactions, and a reception
station. A new executive office was
also added near the lobby.
The total project was handled b y
Office Concepts, Ltd. of Waterloo.

CONSTRUCTION that began in March of last year, was recently completed, providing a
new home for the Farmers Savings Bank in Stratford. The new building contains two bank
offices, board room, insurance office, four teller windows, bookkeeping room with night
deposit, drive-up window and a community room downstairs.

M a rie W ils o n N a m e d IBA
H u m a n R eso u rces D irecto r
Marie C. Wilson has joined the
staff of the Iowa Bankers Associa­
tion as humans
resources direc-i
tor. She was for­
merly director of
the division of
w om en s p r o ­
grams at Drake
University, Des
Moines.
M s. W ilson j
replaced Kathy
M.C. WILSON
F is h e r,
w ho
resigned last November to become
vice president of American Federal
Savings & Loan Association. Ms.
Wilson’s first major assignment was
a January tour of the IBA state
group circuit as featured speaker for
the association’s annual Staff Train­
ing Seminars.
As IBA human resources direc­
tor, Ms. Wilson will serve as consul­
tant for Iowa banks on personnel
issues, with responsibility for
developing in-house training pro­
grams. In addition, she will serve as
human resources director for the
IBA staff.
Ms. Wilson, a native of Atlanta,
Ga., was graduated from the Univer­
sity of Delaware and also received
an M.S. degree in personnel and
counseling from Drake University.
Some of her civic affiliations include
membership on the Des Moines
Chamber of Commerce Day Care in
Industry Task Force, the National
University and Continuing Educa­

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Federal Reserve Bank of St. Louis

tion A s s o c ia tio n P rofession a l
Development Committee, and the
National Job Sharing Network ex­
ecutive committee.

P ro m o ted in E m m etsb u rg
Richard Jones has been promoted
to assistant vice president and of­
ficer manager of the Ayrshire office
of the Palo Alto County State Bank,
Emmetsburg.

Fort D odge C h a n g e s Told
Richard L. Smith, chairman and
chief executive officer of the S ta t^
Bank, Fort Dodge, has announced
the promotion of Joyce Swain to
operations manager, Dayton office,
and the election of Wayne Tell, farrn
owner and operator of the Tell Wei®
Company for over 30 years, to the
board.
Ms. Swain has been at the Dayton
bank for over 15 years. Mr. Tell h a y
served as director of the Iowa Stat"
Bank and Trust Company for 21
years, and chairman for the past
three.

Tw o N a m e d in T reyn o r
F a irfie ld V.P. R etires
E nding 33 Y e a r A s s o c ia tio n
James W. Turner, vice president
and cashier of the First National
Bank in Fairfield, retired recently
ending 33 years of service.
Mr. Turner joined the bookkeep­
ing department of First National in
1948, promoted to teller in 1950,
named assistant cashier in charge of
the instalment loan department in
1956, cashier in 1960, vice president
in 1974 and elected to the board in
1975. He will continue to serve as a
director for the bank.

Third G e n e ra tio n
E lected to B ank Board
American State Bank of Sioux
Center recently elected Marlin
Oosterhuis to the board following
the resignation of Frank Oosterhuis,
who served on the bank board for 35
years. Marlin Oosterhuis is the third
generation to serve on the bank’s
board, in that his grandfather, Mar­
tin Oosterhuis, was one of the orig­
inal incorporating board members.

®

Eugene Young, assistant vice
president, has been promoted to
cashier and Richard Saar to assis­
tant vice president at Treynor Statqji
Bank, Treynor, announced Mick
Guttau, president and chairman.

E lected to Board in Persia

^

Wendell E. Knauss, hardware
store owner and plumbing and heat­
ing contractor, was elected to the
board of the Home Savings Bank,
Persia, at the bank’s annua®»
meeting.

P rom oted in S h e ffie ld
Delton Harken was promoted t<y
assistant cashier at Sheffield Sav­
ings Bank, Sheffield, according to
Harold J. Gallagher.

W in te rs e t P rom otes
David M. Nicholl has been pro­
moted to cashier and JoAnn M.
Houston to assistant cashier of
Farmers & Merchants State Bank|
Winterset.

Io w a N e w s

<D P ro m o ted in S io u x C ity
Larry Klingman was recently pro­
moted to senior vice president at
Northwestern Bank in Sioux City,
according to Michael J. Moeller,
® president. Mr. Klingman joined the
bank in 1979 and has been serving
as vice president of administration.

tion of Forest City and Crystal
Lake, has joined the bank as vice
president for agricultural lending.
He has also been appointed a direc­
tor along with Stanley R. Petersen,
owner of Petersen Funeral Home.
Also at the bank, Marjorie C.
Peterson was named an assistant
vice president; Kent Lewis, vice
president, was named trust officer,
and Karen E. Steffensen was pro­
moted to secretary to the board and
credit manager.

D u buque P ro m o tio n s Told
L. KLINGMAN

K. CLAUSEN

F. RAPHTIS

D.D. BROWN

J. PATTERSON

P. GLISAR

Also announced at Northwestern,
Douglas D. Brown, vice president,
was named manager of the commer­
cial loan department; Kirk Clausen
and Jon Patterson were promoted to
assistant vice president, and Froso
Raphtis and Patty Glisar were
elected personal banking officers.

Eugene E. Hayertz and Charles J.
Schrup, III were promoted to vice
president at the annual meeting of
the American Trust & Savings
Bank, Dubuque.
Mr. Hayertz joined the bank in
1971 and Mr. Schrup started his
banking career in 1970. Both will
continue to specialize in invest­
ments and retail banking services.
Byron Hardy, instalment loan of­
ficer; Patricia Latimer, personal
banking officer, and Jeffrey Mozena,
credit analysis officer were pro­
moted to second vice president.
Elected as officers were: Gloria

93

Cahalan, trust operations; Charles
Davis, instalment loans; Marian
Gehrig, personal banking; Paul
Jaeger, assistant trust officer, and
Gary Keleher, real estate loans.
Also at American Trust, D.B.
Cassat, N.J. Greteman and Otto F.
Henker were named honorary direc­
tors.

A n n o u n c ed in B lo o m fie ld
Davis County Savings Bank,
Bloomfield, recently announced the
election of Don Treharne as senior
vice president and trust officer, and
Juanita Nalley as instalment loan
officer.
Mrs. Marne E. Bond, vice presi­
dent and director of the bank,
recently retired after being with the
bank 33 years. She will remain as
secretary to the board.

E lected to Board
Richard S. Dare, vice president
since 1978, has been elected to the
board of Peoples Savings Bank,
Crawfordsville.
He succeeds John I. White who
recently retired afer 29 years with
the bank.

Committed to
making your
bank stand
apart from the

S ta ff C h a n g e s A n n o u n c ed
At F o res t C ity Bank
Don P. Sherrill has recently been
named president and director of
Forest City Bank & Trust Co. He
succeeds Lloyd M. Willig, who
re sig n e d to pu rsu e p erson a l
business interests.
Mr. Sherrill was previously ex­
ecutive vice president of the First
Bank & Trust Co. of Gridley, Il­
linois.
Sam Hovey, general manager of
the Farmers Cooperative Associa­

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Federal Reserve Bank of St. Louis

N orthw estern Banker, M arch, 1982

94

Io w a N e w s

Historic Structure to House Bank

Richard Bayless, pres, of Andrew Savings Bank has announced plans to restore a
historic 100-year-old limestone building in La Motte and convert it into a full service
banking facility. Once a harness shop in the 1800’s, the building’s outside will be
restored to its original condition with the addition of a drive-up window. The second
level balcony will be used to display historic artifacts. Maintaining the interior
limestone, the lobby floor will have brick pavers and will be decorated to match the
decor of the 1800’s.

Dike Bank P ro m o tes O ne
Craig D. DeBerg has been pro­
moted to assistant vice president of
the Iowa Savings Bank of Dike.
Mr. DeBerg has been with the
bank since 1974.

A p p o in te d C a s h ie r in W ever
Walter (Bud) Hayles, Jr. has been
appointed cashier of Farmers Sav­
ings Bank, Wever. He succeeds
Harvey L. Robinson who resigned to
accept a position with the Dyersville
National Bank of Dyersville.

T ru st O ffic e rs N a m e d
R.K. Sverdahl, president of
Peoples Bank and Trust Co., Water­
loo, has announced the election of
James Friedl and Henry E. Edsill as
trust officers.
Mr. Friedl joined the bank in 1980
after graduating from the Univ. of
Northern Iowa.
Mr. Edsill joined the bank in
December, 1981, and was previously
affiliated with the Schoeneman Law
Firm in Aplington.

C h a irm a n R etires At
C h arles C ity Bank
William G. Herbrechtsmeyer,
president of First Security Bank and
Trust Company, Charles City, re­
cently announced that Merten J.
Klaus has asked to be relieved as
chairman of the board, after 63
years of continuous service to the
bank. Mr. Klaus served as 76th
president of the Iowa Bankers
Association during 1957-58.
William A. Herbrechtsmeyer, Sr.,
has been elected to succeed Mr.
Klaus as chairman.
Announced at the same time were
the promotions of J.R. Herbrechts­
meyer to executive vice president;
Ray A. Bill and Norman Gerdes to
vice president; Charles Souder to
vice president and agricultural
representative; Katherine Lalor to
assistant vice president and assis­
tant trust officer; Ruth Ann Uetz
and Patricia Adams to assistant
vice president, and Randy A. Burrack to cashier.
Pauline Kalus and Ronald M c­
Gregor were also elected to the
board at First Security.

Tw o E lected to Board

H.E. EDSILL

J. FRIEDL

orthw
estern Banker, March, 1982
DigitizedNfor
FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Robert Holmes, president of Real­
ty World, Holmes & Co. Realtors of
Cedar Rapids, and Russell Thomp­
son, president of Murk-N-T, Inc.,
Swisher, were recently elected to the
board of Swisher Trust & Savings
Bank, Swisher.

P ro m o tio n s A n n o u n c ed at
C o lu m b u s Ju n c tio n S ta te
H. Lee Huston, 83, has retired
from active service with Columbus
Junction State Bank on the occasiom
of his 55th year with the bank. H ®
has been named honorary chairman.
He was succeeded by his son, Tho­
mas H. Huston, who also continues
as president.
^
Mr. Huston’s 55-year career witn
Columbus Junction State Bank
started when the bank was founded
in 1927 and he was appointed cash­
ier at its founding. He was n a m e ^
vice president and cashier in 1945,
executive vice president in 1951, and
served as president from January,
1961, until his advancement to
chairman in January, 1970, at w idely
time his son was named president.
Mr. Huston served as secretary
and chairman of Group 11 of the
Iowa Bankers Association in the
1940s. In that same period, hqj>
served eight years as a member of
the Iowa banking board.
President Tom Huston also an­
nounced that Vice President Leroy
Hughes, who has completed more^j
than 40 years of service with the
bank, was elected to the board.
T. Mark Huston was advanced
from assistant cashier to vice presi­
dent and also elected a director.
I
Mr. Huston also announced the
transfer of $100,000 from undivided
profits to surplus, bringing surplus
now to $980,000.
A t their annual meeting ii#|
January, stockholders voted to
recognize the bank’s 55th anniver­
sary by contributing $5,500 to wor­
thy local projects over and above the^
bank’s normal donations.

E lected in D avenpo rt
Richard Norman was recently^
promoted to assistant vice president
at the Brenton
First National
Bank, D a v en ­
port.
Mr. Norman
joined the bank
in March, 1980,
as an instalment
loan officer and
prior to that
managed a loan
R. NORMAN
office of an af­
filiated company known as Brentoi
Financial.

Io w a N e w s

^ C o u n cil B lu ffs A p p o in ts
P res id e n t and T h ree O th ers
Thomas D. Whitson was recently
appointed president of the Council
Bluffs Savings Bank. He succeeds
©E. H. Spetman who has served in
that position since 1963 and who
will remain as
chairm an and
chief executive
©officer.
Mr. Whitson
joined the bank
in 1963, serving
as executive vice
p r e s i d e n t and
tr u s t
o ff ic e r
since 1973.
T.D. WHITSON
Also at Coun­
cil Bluffs, Gary R. Faust was pro®moted to vice president and trust of­
ficer, David C. Brockman to assis­
tant cashier and Joanne Medlock to
personnel director.

95

Now,
First National
Bank
has a new
source of funds
available
for cattle and
grain loans.
FIRST AGCORP.

E.H. SPETMAN

D.C. BROCKMAN

G.R. FAUST

J. MEDLOCK

Mr. Faust joined the bank in
1974. Mr. Brockman joined in 1972
and has been serving as supervisor
0 of new accounts and savings. Ms.
Medlock began with the bank in
February, 1981.

agricultural credit corporation that is
a wholly owned, non-banking sub­
sidiary of First Midwest Bancorp., Inc.
First Agcorp is another of the
many correspondent services available
through the First National Bank of
St. Joseph. Just call John Kam,

i r g S S T W h e re y o u r
success is a
tra d itio n .

le c te d A s s is ta n t C a s h ie r
Ann Howe was recently elected
assistant cashier at West Liberty
State Bank, West Liberty.

oard M e m b e r N a m e d
Larry W. Jensen, vice president of
Iowa Savings Bank, Coon Rapids,
was recently elected to the board.
Mr. Jensen has been with the
ank since 1970.

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

First National
Bank
St. Joseph, Missouri 64502
Call: (816) 279-2721

A ffiliate of First Midwest Bancorp., Inc.

Member F.D.I.C.

N orthw estern Banker, March, 1982

96
Mr. Bognanno joined the bank ii^
1978 as vice president and manager
of the corporate banking division.
Mr. Walker was also promoted to
chief financial officer. He joined in
1980.
q
Mr. Deege joined in 1980 as vice
president and manager of the trust
division.
Promoted to vice president at
Bankers Trust were:
q
S tep h en W. B rin to n , retail bank­
ing; A rn o ld S . R ip p e rg e r, corporate
banking, and
K en n eth L . E v a n s, vice president
and chairman of the new bank operafl)
tions committee.
M ich ael C. F lis s , E . E u g e n e
F lo w ers and W illiam M . T an k , J r .

NITED Central Bank of Des
Moines, N.A. has introduced a
new service believed to be the first
of its kind offered by a bank in the
State of Iowa, according to R o b ert
G. M illen, president and chief ex­
ecutive officer.
The new service, called “ United
Cash Manager,” was developed in
re sp o n se to in d iv id u a ls and
businesses who wanted a means to
assure that their funds earn money
market rates, have complete liquidi­
ty and banking convenience.
The United Cash Manager, which
is available to any individual,
business or non-profit organization,
at any United Central Bank office in
Des M oines, p rovid es access
through their NOW account or
checking account to three Money
M a rk e t F u n d s m a n a g ed b y
Federated Investors.
* * *

U

L.A. BARKLEY

K.M. DE LUCCA

J a m e s W . E ric k so n , president of
Anderson-Erickson Dairy Companyj|
and J a m e s W . H u b b ell I I I , presi­
dent of Hubbell Realty Company,
were recently elected to the board of
Iowa-Des Moines National Bank.
* * *
(I

D.S. MEARS

L.B. WILLIAMSON

L ow ell A. B a rk le y to vice presi­
dent, correspondent sales and ser­
Plaza State Bank recently an­ vices of the bank’s data services
nounced the election of three new of­ department;
K ath le e n M . D e L u c c a to com­
ficers to the position of assistant
cashier. They are: L in d a S. G lenn, puter services officer;
P a u l J . Jo h n so n , and M arily n F . D on S . M e ars, vice president and
manager of trust investments, will
P ro b st.
be assuming additional responsibili­
* * *
ty for managing the pension and
Larry Wenzl, president of Capital profit sharing department, and
City Bank has announced the pro­ L. B ru ce W illiam so n , trust officer,
motion of R o b e rt D urb in to assis­ will be joining the pension and profit
tant vice president and manager of sharing department.
the Hubbell office; N an cy C rit­
* * *
ten d en to trust officer, and J a m e s
Jo s e p h M . B o g n an n o , J r ., R o b ert
M ohni to accounting officer.
M . W alker, I I , and J . M ich ael D eege
* * *
were all recently promoted to senior
At Iowa-Des Moines National vice president at Bankers Trust, an­
Bank four employes were recently nounced Herman C. Kilpper, presi­
dent and chief executive officer.
promoted. They are:
N orthw
estern Banker, March, 1982

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

were promoted to assistant vice
president.
Appointed to officer status were:
P e g g y S . K in g , assistant managing
officer of the Eastgate office; A llen
R . P e tersen , assistant managing of­
ficer of the Windsor Heights office!)
Ja n n a e I. C ooper, accounting; R a y
C. G e ttin g and Je r r y L . W h itak er,
data processing; S te v e n L . Q uigley,
operations, and Bruce W. Brown
was promoted to director of sta fl)
development.
* * *

M ich ael K . H o llin ger has been
promoted to senior vice president at
Banks of Iowa,
Inc.
Mr. Hollinger
joined Banks of
Iowa, Inc. in De­
cember, 1980, as
director of oper­
ations and was
named vice pres­
ident, operations
in 1981. He also M K HOLLINGER
serves on the
board of directors of Banks of Iowa
Computer Services, Inc., Cedar
Rapids.
* * *

GAN Vie, Compagnie Française
d’Assurances sur la Vie (“ GAN
Vie” ), a wholly owned subsidiary of
GAN which is a French stock in­
surance group, and Hawkeye Bancorporation, Des Moines, have an-

97

DO YOU RECOGMZE
THESE PEOPLE?

Front: Margo Foxhoven, Secretary. Left to right: Eddie A.
Wolf, Senior Vice President; Larry A. Bergemann, Vice
President; Cyrus D. Kirk, Vice President; William B.
Greaves, Vice President.

You’ve probably met one or more of
these United Central Bank Correspondent
Bankers over the years. Chances are there’s
one person you haven’t met, although
you’ve probably talked to her on the phone.
Margo Foxhoven has been assisting you
as secretary in Correspondent Services for
six years at United Central Bank; sending
out analysis reports each month, handling
examination requests, informing you of

money market rates, transferring funds,
assisting you with lines of credit, aiding
with the annual Iowa Bankers Convention,
sending out supplies, furnishing the Farm
Digest Newsletter and providing hotel reser­
vations when you visit us in Des Moines.
For answers to your questions about
Correspondent Services or current events
in banking, call Margo or any one of our
Correspondent Bankers at 1-800-263-1615.

AT UCB, WE LISTEN.

lucbl

UNII
CENTRAL

DES MOINES. N.A. ■ (51S) 245-7111 ■ MEMBER FDIC
LOCUST AT 6 T H ■ 5 T H & WALNUT ■ 3 4 0 0 WESTOWN PKWY.
3 5 T H & INGERSOLL ■ 501 E. ARM Y POST RD.
AFFILIATED W ITH UNITED CENTRAL BANCSHARES, INC.


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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1982

98

Iowa News

nounced the purchase of 405,139.25
shares of stock of Hawkeye National
Life Insurance Company, Des
Moines, or approximately 80% of
the 506,154 Hawkeye National
shares issued and outstanding. The
purchase follows the approval of the
acquisition by Iowa Insurance Com­
missioner Bruce Foudree. Officials
of GAN Vie and Hawkeye Bancorporation stated that all additional
shares properly tendered on or
before February 25, 1982, the ex­
piration date of their concurrent
tender offer, would be acquired. The
tender offer price was $11.56 per
share.
Hawkeye National announced the
resignations, effective February 16,
of Donald J. Bell, James G. McCur­
dy and Arthur M. Ludwig as direc­
tors of the company. The remaining
directors filled the vacancies by elec­
ting three new directors, Rex H.
Anderson, Jean Albert Arvis, and
Jean-Phillipe Geffroy, each of whom
is presently affiliated with GAN.

Elected to the Board
The Iowa Trust & Savings Bank
of Emmetsburg recently appointed
Gary Hughes, vice president and
cashier, to the board.
Mr. Hughes has been with the
bank since 1966.

Onawa Announcements Made
D onald R. Langren, owneroperator of Langren Grain Com­
pany, was recently elected as chair­
man of the Onawa State Bank.
William E. Young, who has ac­
cepted the position of controller,
previously served three years as
manager of the Onawa Insurance
Agency, and Bruce Kuenning re­
cently joined the Onawa Insurance
Agency.

vice president, president of Union
Bank & Trust Co., Ottumwa; John
Zdychnec, 2nd vice president; H.S.
“ B iff” Byrum, secretary/executive
vice president, and Paul Madsen,
treasurer.
Principals of Fort Dodge Develop­
ment Corporation, headquartered at
Municipal Building—Planning De­
partment, Fort Dodge, are: Earl C.
Underbrink, president, president of
First National in Fort Dodge; Jack
Canady, vice president; James
Hughes, secretary-treasurer, and
Dennis A. Clautz, director.
Both corporations will operate
under S B A ’s certified development
company program, designed to
boost community economic develop­
ment and create jobs.

New President Elected
Robert O. Grathwohl has been
elected president of University
Bank & Trust Company, Ames,
a c c o r d in g toDuane Sandage,
chairman.
M r. G r a t h ­
wohl began his
banking career
in Mason City in
1970 and has
been associated
with University
Bank since 1979.
R.O. GRATHWOHL
He has served as
vice president and cashier and in
1981 was appointed executive vice
president and chief operating of­
ficer.

Staff Changes Announced
At Decorah Bank
At Security Bank and Trust Co.,
Decorah, Ronald Kocher was ap­
pointed vice president and loan of­
ficer. He previously served as the e x #
ecutive officer of the First National
Bank of Maiden Rock, Wis. Also at
the bank, Lyle DeBower was ap­
pointed farm loan officer, and Wilma
Olsen, Nancy Corlett and B arbar#
Zahasky were appointed assistant
cashiers. Thomas R. Roberts, Jr., a
vice president, recently retired. He
was an employee of the bank since
1947. Carroll O. Sunde, vice presi®
dent, recently left the bank to take a
position with Luther College in
Decorah.

Joins Denison Bank
Crawford County Trust and Sav­
ings Bank, Denison, recently an­
nounced the employment of Gar]|>
Hansen as instalment loan officer.

Odebolt Changes Announced
Dean C. Mohr recently jo in e d
Peoples State Bank, Odebolt, as
farm representative and loan officer.
He has an ag business degree from
Iowa State University.
C.L. Walker, officer and director®
and M.A. Sjogren, vice president
and cashier, have both recently
retired from the bank. Mr. Sjogren
will continue as a director and
secretary of the board.
®

INDEX OF
ADVERTISERS
March, 1982
Acorn P rin tin g ..................................................................... 24
American Nat’l Bk & Tr. Co., St. P a u l................................. 41
Associates C om m e rcial..................................................... 21

Insured Credit Services, Inc., C h ic a g o .............................. 7
Iowa Bankers Insurance & S e rvice s.............................. 8j
lowa-Des Moines Nat’l Bk................................................. 101

Two Development
Corporations Certified

Banco Financial/Lease N o rth e w e s t................................. 16
Bank Marketing A s s o c ia tio n ............................................. 13
Bankers Trust, Des M o in e s ............................................... 74
Banks of Iowa Computer S e rvice s............................... 88-89

Kooker, E.F. & A s s o c ia te s ................................................. 86

The U.S. Small Business Ad­
ministration has announced the cer­
tification of Ottumwa Area Develop­
ment Corporation and Fort Dodge
Development Corporation to help
finance small businesses in Ottum­
wa and Fort Dodge, respectively.
Principals of Ottumwa Area
Development Corporation, head­
quartered at 106 North Court Mall,
Ottumwa, are: William James, presi­
dent; Max Von Schrader, Jr., 1st

Continental Bk., C h ic a g o ..................................................... 9
Chase Manhattan B a n k ......................................................11

Northwestern
 Banker, March, 1982
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dawson Hail Insurance Co., F a rg o ................................... 15
Downey, C.L. Co., H a n n ib a l............................................... 31
Drovers Bank of C h ic a g o ................................................... 77
FBS Business Credit, M inn e a po lis................................... 39
First Nat'l Bk., D enver......................................................... 63
First Nat'l Bk., L in c o ln ....................................................... 71
First Nat’l Bk., M inne a po lis........................................... 50,51
First Nat'l Bk., O m a h a ....................................................... 69
First Nat'l Bk., St. J o s e p h ................................................... 95
First Nat’l Bk., St. P a u l....................................................... 35
First Nat’l Bk., Sioux C it y ................................................... 83

Marquette Nat’l Bk., M inn e a po lis................................. 42-43
Merchants Nat’ l Bk., Cedar R a p id s ..................................... 2
Midland Nat'l Bk., M inn e a po lis......................................... 37
National Bank of Commerce, L in c o ln ............................... 7 '
National Boulevard Bk. of C h ic a g o .................................. 2
Northern Trust Co., C h ic a g o ............................................... 5
Northwestern Bell Telephone Co........................................99
Northwestern Nat’l Bk., M in n e a p o lis ............................... 32
Office Concepts, W a te rlo o ................................................. 93
St. Louis Terminal W arehouse........................................... 29
Security Nat’l Bk., Sioux C it y ............................................
Square Deal Insurance Co., Des M o in e s ........................... 10
Successful Farming, Des M o in e s ....................................... 8
Travelers Express Co.............................................................. 3

Gross, Kirk Co., W a te rlo o ................................................... 87

United Central Bk., N.A., Des M o in e s ............................... 97
United States Nat'l Bk., O m a h a ................................... 65-67

Heller, Walter E......................................................................23

Van Wagenen Co., G.D., Minneapolis

Images Gallery, M inn e a po lis............................................... 6

Whoever suggested
these monthly Teleconference meetings
to save time and travel expense
deserves a bonus.
Somebody in my company is really on the ball. They
figured that we could save a lot of time and travel expense
by getting everyone we need together in regularly scheduled
Bell Teleconferences. And they sure were right.
Starting with a conference call, we can meet with
anyone or any number of people anywhere, right from our
conference room.
Since we started these regular Teleconference
meetings, were getting more done much faster. And our
travel expenses have been cut way back.
Whoever suggested the idea probably does
deserve a bonus. I wish I’d thought of it myself.
To find out m ore about
Teleconferencing, call
I your Northwestern
¡
Bell Account
Executive.

Northwestern Bell


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Federal Reserve Bank of St. Louis

The only bank
we work harder for
than ours is

YOURS.

Prom ises don ’t deliver results. Hard
work d oes.
That’ s why more than 4 0 0 banks
count on our skilled professionals for
total correspondent services.
But hard work is just part of it.
We back that up with com prehensive
com puter capabilities. International

m Ê0

A

banking connections. Sophisticated
bankcard services. And sheer
financial strength.
For any correspondent need you
might have — large or small — you
can count on results from the hardest
working correspondent bank in Iowa.

A NATIONAL BANK

First in Iowa by putting Iowa first.
Member FDIC An Affiliate of Northwest Bancorporation (B A N C O )
7th & Walnut, Des Moines, Iowa 5 0 3 0 4 (5 1 5 ) 2 4 5 -3 13 1

Bernie Kersey

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Federal Reserve Bank of St. Louis

Bob Buenneke

Linda Collins

Garry Frandson

Mark Conway

Dorothea Wolfe