View original document

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

Farm F in ance L easin g A id s C ash Flow
Exclusive
asset-based
lending articles

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

Exclusive
survey on
investment planning

W
m m m BSSBm
M M tS & S É k i^ / S Ê H sb S S i

Il

'

;>:V||
ft

k
I

W

BCÎ

^$$$2

Ü

iËB8Ë

2&y&i

W 0m M

>£rA

sgfe

«Sr

W
èrtS

« § É t:

^

3®î

saBHM""
LO’.-i'iffi

■ pYfrvjï'Hf&M
p

■,- 'i**"■■-.-,*flareS5&:.a%§js
î

'îïv

■SS...

'o.'-bi'Svi,!

W Ê Ê Ê S S S Ê Ê ê .iVii

mm

îS^tÎ &&

“Doing the right thing at the right
time is basic to success in business.
When an investor sells a stock too
early, he loses profit potential. When a
farmer plants a crop too late, he loses
yield potential.
Proper timing is also im portant in
banking. In our Correspondent De­
partm ent we use current data process­
ing reports to maximize Fed Fund
potential. Detail check collection
schedules and sophisticated analysis
techniques enable us to pass availa-

bility on to banks for full utilization of
their investment potential.
Now is the right time to take ad­
vantage of M NB’s experience in cash
collection, Fed Funds Investments,
and over line assistance. Learn more
about our correspondent services and
improve your profitability.”
CaH 319-398-4217 or dial toll free,
1-800-332-5991 and ask for Stan R.
Farmer, Jerry N. Trudo, Terry M.
Martin or John E. Mangold. Call now!
The time is right!

Merchants National Bank 1:1
Cedar Rapids, Iowa 52401


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

■ï

Si»

mmî

:-Sîs

■•:-

r® R W S P i ^ l

V?ri3'M?

¿S3'iM'èSi

-

Member

F.D.I.C.

A BANKS OF IOWA BANK

without going to the well

The Associates has been financing success
for over 60 years. We know what it takes.
And we know for the long haul it takes
more than just money.
It takes persistence. Persistence to
keep pushing for answers. To dig in, not
give in. But sometimes that persistence can
produce demands by your customers that
are more than you want to handle.
That’s where The Associates can help.
We’ll work with you and your customers to
help make that persistence pay off.
We’ll help your customers take advan­
tage of assets they might not have con­
sidered before such as inventory,
receivables and equipment. We can turn
them into tangible growth opportunities,
while providing a consistent source of fresh
capital. And help you keep your customer.
So if you want to keep your customers
growing, but need a little help in doing it,
come to The Associates.
a
We’Uhelp both of you
/V
keep growing.
f \ \

Our money's
onyou. a
Associates Com m ercial Corporation Business Loans
20 N. Clark St. Chicago, IL 60602 (312)281-5827
Business Loans Offices in Atlanta, Boston, Charlotte,
Chicago, Cleveland, Dallas, Denver, Detroit, Houston,
Kansas City, Los Angeles, Miami, Nashville, New York,
Oklahoma City, Philadelphia, St. Louis and Tampa.
Associates Commercial Corporation is a subsidiary of
Associates Corporation of North America, a Gulf + Western Company


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

4

ABA Names New
Regional Directors *
MARCH 1983

•

90th Year

•

No. 1434

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

ON THE COVER
In his exclusive article in this issue on page 17, Michael S. Olauson of Lease
Northwest gives details of the “ Farm Finance Lease” authorized by the 1982 tax
act TEFRA. The cover picture is used through the courtesy of Wallace’s Farmer,
Des Moines, one of the leading farm publications in the nation. It shows a Ford
tractor with dual rear tires, equipped with a liquid fertilizer tank mounted on front.
The tractor is pulling a field cultivator which will incorporate the fertilizer and
herbicides. The farmer is combining operations to save trips over the field, but
this usually means a higher equipment investment. The Investment described
above, for example, probably exceeds $50,000, and the $15,000 machine shed in
the background could house another $150,000 to $200,000 of needed equipment.

OTHER FEATURES

18

Benefits of collateral management

Leo Hermes describes lender protection for accounts receivable

19

5-year term loan provides capital

Strengthening economy offers opportunities—Allen Olson

20

Lenders must work together

Participations finance local business—Walter C. Greig

21

Give business credit it deserves

Innovative financing preserves business—Robert L. OLson

22

Selecting a lending partner

Michael J. Litwin gives bankers a checklist

24

Investment Survey

Community bankers describe near-term plans

25

Managing a $20 million portfolio

Veteran banker Wm. P. Ronan reviews his methods

26

A star is born...Nationet!

Nationwide interchange of regional ATMs is set

NORTHWESTERN BANKER
306 15th Street, Des M oines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Consultant

Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1434Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 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.
Digitized Northwestern
for FRASER Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HREE bankers have been a p -^
T
pointed regional directors of the
American Bankers Association by
ABA President William H. Ken­
nedy, chairman of the National ^
Bank of Commerce, Pine Bluff, Ark. ^
Their three regions encompass 22
states, including the 10 in the upper
midwest and mountain areas.
With the other three regional q
directors, they will each serve for
one year on both the ABA Council
and the board of directors. Directors
are elected by their colleagues in
their regions who are members o f ^
the Council. The six regional direc­
tors play a key role in representing
their regions’ banking needs and in­
terests. The three are:
Region II—Donald R. Lovett, i
president and chairman of Dixon
National Bank, Dixon, 111., represen­
ting Michigan, Ohio, Indiana, Ken­
tucky and Illinois. He is the current
president of the Illinois Bankers (
Association and first president of
the new Illinois Bankers Associa­
tion, which resulted from the merger
of the old IB A and AMBI earlier
this year.
<
Region V—James T. Gowan, pres­
ident, First National Bank of
Chaska, Minn., representing Iowa,
Minnesota, Montana, Nebraska,
North Dakota, South Dakota and(
Wisconsin. Mr. Gowan also is active
in numerous professional and civic
organizations and is a past president
of the Minnesota Bankers Associa­
tion.
'
Region VI—Norman M. Dean,
president and chairman of United
Bank of Greeley, Greeley, Colo., and
chairman of both United Bank of
LaSalle and United Bank of Bright-1
on, both in Colorado. He is active in
civic and banking affairs and is vice
president of the Colorado Bankers
Association. In addition, he is a
director of Montana BancSystem, {
Inc., a holding company owning and
operating 11 banks in Montana, and
a director of United Banks of Col­
orado, the state’s largest financial
institution.

BRANDT. A NEW
GENERATION OF
MONEY SYSTEMS.
Now, a hybrid of microprocessor
technology and performance engineering
makes Brandt money handling a whole
new experience.
Microsort.™The Model 986 coin sorter/
counter earns its reputation daily. It gives
you the most reliable count in the
industry. And, a paper tape audit trail that
lets you balance faster at day end. It’s
simply a smarter way to count coin.
2780 Series Teller Terminals. Now
there’s an alternative to costly on-line
teller systems. Brandt’s new micro­
processor teller terminals offer the
economy of free-standing units, yet can
be upgraded should you decide to
go on-line!
Model 1800. Flagship of the new breed
in automatic coin wrappers. It’s the
American made auto wrapper that breaks
with tradition. At a sprint speed of 30
wraps a minute!
Model 958. Human engineering means
volume coin counting. Model 958 lets you
through-put up to $6,000.00 per hour.
Two hard working Brandt core sorters
make the difference in medium to high
volume mixed coin processing.
Model 856. Brandt interfaced coin and
currency counting through a micro­
processor to create automatic cash
settlement. Combining the new 862
currency counter and Model 955/57 coin
counter, Model 856 deciphers totals and
provides a paper tape audit trail that will
speed deposits through your vault!
Brandt money handling systems. The
next generation.
Brandt, Inc., Corporate Office, P.O. Box 200, Watertown, Wi 53094

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

(414) 261 -1780

6

Convention Calendar
ABA—American Bankers Association
AIB—American Institute of Banking
BAI —Bank Administration Institute
BMA—Bank Marketing Association
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women, Inc.
RMA—Robert Morris Associates

National Conventions & Schools
Mar. 23-26—ABA Mid Sized Bank CEO
Seminar, Marriott’s Rancho Las Palmas,
Calif.
Mar. 23-27—IBAA 53rd Annual Convention,
Town and Country Hotel, San Diego, Calif.
Mar. 27-30—BMA Advertising Conference,
Hyatt Regency Chicago.
Apr. 5-7—ABA International Banking Sym­
posium, Hyatt Regency Chicago.
Apr. 5-8—BAI Check Processing Confer­
ence, Marriott Hotel, Chicago.
Apr. 10-13—IBAA 21st Seminar/Workshop
on the One-Bank Holding Company,
Alameda Plaza Hotel, Kansas City, Mo.
Apr. 10-13—ABA National Retail Banking
Conference, Hyatt Regency Atlanta, Ga.
Apr. 14-17—AIB Regional Leaders Work­
shop, Omaha, Nebr.
Apr. 17-27—ABA National Commercial Lend­
ing School, University of Oklahoma, Nor­
man, Okla.
Apr. 18-20—IBAA Commodity Marketing
Seminar, Chicago, III.
Apr. 24-27—BMA Research and Planning
Conference, Hyatt Regency Crystal City,
Washington, D.C.
Apr. 28-May1—AIB Regional Leaders Work­
shop, Salt Lake City, Utah.
May 3-6—BAI Accounting and Finance Con­
ference, Amfac Hotel, Dallas.
May 8-10—Conference of State Bank
Supervisors, Annual Convention, The
Broadmoor, Colorado Springs, Colo.
May 8-11—Association of Reserve City
Bankers, Annual Meeting, Boca Raton
Hotel, Boca Raton, Fla.
May 8-13—ABA National Commercial Lend­
ing Graduate School, University of
Oklahoma, Norman, Okla.
May 15-18—BAI Tax Conference, Hyatt Re­
gency Hotel, Orlando.
May 22-25—ABA National Operations and
Automation Conference, Miami Beach
Convention Center, Miami Beach, Fla.
May 22-27—BMA School of Trust Sales and
Marketing, and Essentials of Bank
Marketing School, University of Col­
orado, Boulder, Colo.
May 22-June 3—BMA School of Bank Mar­
keting, University of Colorado, Boulder,
Colo.
May 28-June 2—ABA National AIB Leaders
Conference, Sheraton Washington, Wash­
ington, D.C.
June 5-8—BAI Strategic Planning, Four
Seasons Hotel, Houston.
June 5-17—ABA Stonier Graduate School
of Banking, Rutgers University, New
Brunswick, N.J.
June 9-11—Association of Bank Holding
Companies, Annual Meeting, Opryland
Hotel, Nashville, Tenn.
DigitizedNorthwestern
for FRASER Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

July 11-12—IBAA Spread Analysis and Asset/LiabiIity Management Workshop,
Hyatt Regency Minneapolis on Nicollet
Mall, Minneapolis.
July 13-16—Central States Conference,
Jackson Lake Lodge, Wyo.
Aug. 8-9—IBAA Spread Analysis and Asset/LiabiI ity Management Workshop,
Caesar’s Tahoe, Lake Tahoe, Nevada.
Sept. 11-14—ABA National Personnel Con­
ference, Hyatt Regency, Phoenix, Ariz.
Sept. 12-14—IBAA Commodity Marketing
Seminar, Chicago, III.
Sept. 13-16— BMA National Corporate
Marketing Conference, Westin Alpine
Resort, Vail, Colorado.
Sept. 14-16—ABA Senior Operations Sem­
inar, Marriott’s Marco Beach, Marco Is­
land, Fla.
Sept. 18-21—NABW Annual Convention,
Hyatt Regency, Dallas, Tex.
Sept. 18-21 —BAI National Convention, Fair­
mont Hotel, San Francisco.
Sept. 18-23—RMA Loan Management Sem­
inar, The Ohio State University, Colum­
bus.
Sept. 18-30—ABA National School of Retail
Banking, University of Oklahoma,
Norman, Okla.
Sept. 20-23—ABA National Bank Card Con­
vention, Bonaventure, Los Angeles, Calif.
Oct. 8-12—ABA Annual ABA Convention,
Honolulu, Hawaii.
Oct. 23-25—ABA International Banking
Conference, Grand Hyatt New York.
Oct. 23-26—BMA 68th Annual Convention,
Atlanta Hilton, Atlanta, Ga.
Oct. 30-Nov.2—RMA 69th Annual Fall Con­
ference, Fairmont Hotel, San Francisco.
Nov. 2-4—ABA Chief Financial Officer
Seminar, Hyatt on Hilton Head, Hilton
Head Island, S.C.
Nov. 2-5—IBAA 23rd Seminar on the OneBank Holding Company, Marriott’s Hilton
Head Resort, Hilton Head Island, S.C.
Nov. 13-16—ABA National Agricultural
Bankers Conference, Bonaventure, Los
Angeles, Calif.
Nov. 13-17—BMA Trust Marketing Con­
ference, Fairmont Hotel, Dallas, Tex.

State Conventions & Schools
Colorado:
Apr. 22—Mid-Year Membership Meeting,
Stapleton Plaza Hotel, Denver.
Sept. 21-24—Independent Bankers of Col­
orado Annual Meeting and Convention,
Keystone Resort.
Illinois:
April 5-6—IBA Commercial Credit Confer­
ence, Ramada Inn, Champaign.
Apr. 19-21 —IBA Estate Planning Seminars,
Mount Vernon, III.
May 4-5—IBA Consumer Credit Conference,
Holiday Inn, Decatur.
May 10-11—Independent Community Banks
in Illinois 9th Annual Convention, Holiday
Inn East, Springfield.
May 23-31 —IBA Bankers School, Southern
Illinois University, Carbondale.
June 9-11 —IBA Annual Convention, Chi­
cago Marriott Hotel.

June 12-18—IBA Agricultural Lending
School, Illinois State University, Normal, w
June 15-18—IBA Advanced Ag Lending
Clinic, Illinois State University, Normal.
June 19-25— IBA Commercial Lending
School, Illinois State University, Normal.
June 10-22—AMBI Executive Graduate
School of Banking, University of Illinois,®^
Champaign, III.
Iowa:
Mar. 29-30—IBA Chief Executive Officer
Conference, Des Moines.
Apr. 24-27—IBA Washington, D.C. Trip.
#
June 19-24—Iowa School of Banking, Uni­
versity of Iowa, Iowa City.
Minnesota:
Mar. 21-23—MBA Agricultural Workshops.
(See Minnesota section)
£
Apr. 6-7— MBA Supervisory Training
Workshops. (See Minnesota section)
Apr. 12-14—MBA Lending Workshops. (See
Minnesota section)
May 3-6—MBA Washington Legislative
Conference, Washington, D.C.
^
May 10-12—MBA Investment Workshops.
June 20-21 —MBA Annual Convention, Hy­
att Regency, Minneapolis.
June 26-July 1—Minnesota School of Bank­
ing, St. Olaf, Northfield.
July 24-29—Midwest Banking Institute. ^
University of Minnesota, Morris.
Aug. 7-12—MBA Commercial Lending
School.
Aug. 7-20—Prochnow Graduate School of
Banking, University of W isconsin,
Madison.
0
Aug. 18-21—Independent Bankers of Min­
nesota Annual Convention, Arrowwood
Lodge, Alexandria.
Montana:
Mar. 31-Apr.1—MBA Bank Presidents Con- ä
ference, Colonial, Helena.
Apr. 24-26—MBA Consumer Lending Con­
ference, Big Sky.
May 12-13—MBA Trust Conference, Sher­
aton, Billings.
May 19-20—MBA Commercial Lending Con- ä
ference, Colonial, Helena.
June 16-17—MBA Real Estate Conference,
Colonial, Helena.
June 28-July 2—MBA Annual Convention &
Membership Meeting, Sun Valley.
Nebraska:

®

Mar. 30-31 —NBA Ag Outlook Conference,
Holiday Inn, Kearney.
Apr. 10-16—ABA Leadership Conference,
Greenbriar.
Apr. 24-29—ABA Commercial Lending, 0
School, Regency West, Omaha.
May 4-6—NBA Annual Convention, Holiday
Inn, Omaha.
June 11-14—NBA Washington Visit.
July 10-15—NBA Trust School, Regency
West, Omaha.
£
North Dakota:
Mar. 16-17—NDBA Agricultural Credit Con­
ference, Fargo.
Apr. 26-28—NDBA Washington Legislative
and Administrative Conference, Hyatt 0
Regency on Capitol Hill.
May 23-24—NDBA 98th Annual Convention,
Civic Auditorium, Grand Forks.

CALENDAR...
(Turn to page 30, please)

—

—

i

7

AUTOM ATIC

5

COIN W R A P P E R

2

TUBULAR

6

COIN W R A P P E R

E s p e c ia lly d e s ig n e d f o r m a c h in e fillin g . . . a real tim e -s a v e r.
P a cked fla t. I n s ta n t p a t e n t e d “ Pop O p e n ” a c tio n w i th f in g e r
t ip p re ssu 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 i n g . . . 6
d i ff e r e n t s t a n d a r d colors.

RAINBOW

COIN

7

8

D U ZITA LL COIN W R A P P E R

9

BANDING

WRAPPER

K W A R T E T COIN W R A P P E R

FEDERAL

BILL S T R A P

Pa cka g e c o n te n ts c le a rly id e n tifie d on fa ce s a n d ed g e s b y
c o lo r co d e d p a n e ls w ith in v e rte d and reverse fig u re s . M a d e
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 live rie s. O n ly p u re
d e x trin e g u m m in g used.

WRAPPER

Extra w id e . . . e xtra stro n g . D e s ig n e d fo r a re a s w h e re h a lve s
a r e w r a p p e d in $ 2 0 . 0 0 p a c k s . . . “ r e d b o r d e r e d w i n d o w ” f o r
e a s e o f i d e n t i f i c a t i o n . A c c o m m o d a t e s $ 2 0 . 0 0 in d o l l a r s , $ 2 0 . 0 0
in halves. T a p e re d edges.

COIN

W r a p s 4 d e n o m i n a t i o n s in h a l f s iz e p a c k a g e s . A m i n i a t u r e o f
t h e p o p u l a r “ A u t o m a t i c W r a p p e r ” . . . 2 5 c in p e n n i e s , $ 1 . 0 0 in
n i c k e l s , $ 2 . 5 0 in d i m e s , $ 5 . 0 0 in q u a r t e r s .

C o lo r co d e d fo r q u ick, e asy id e n tific a tio n . Red fo r p e n n ie s . . .
b lu e f o 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 t i t y
a n d d e n o m in a t io n s . . . e lim in a te s m is ta k e s . T a p e re d edges.

4

OLD STY LE

B a s i c c o i n w r a p p e r in e x t r a s t r o n g k r a f t s t o c k . P r i n t e d in 6
d iffe re n t s ta n d a rd colors to d i f f e r e n t i a t e d e n o m in a tio n s .
T r i p l e d e s i g n a t i o n t h r o u g h colors, p r i n t i n g a n d le tters.
Tap ere d edges.

A m o u n ts and d e n o m in a tio n s a u to m a tic a lly in d i c a t e d b y
p a t e n t e d “ r e d b o r d e r e d w i n d o w s ” . A m o u n t s in w i n d o w s
a l w a y s in r e g i s t e r . . . e l i m i n a t e s m i s t a k e s . A c c o m m o d a t e s
a l l c o i n s f r o m l c t o $1 . 0 0 .

COLORED

BILL S T R A P

E n t i r e s t r a p is c o l o r c o d e d t o i d e n t i f y d e n o m i n a t i o n . P r i n t e d
a m o u n t a p p e a rs on to p a n d b o tto m of packa g e . Extra w id e
f o r m a r k i n g a n d s t a m p in g . Extra s t r o n g s t o c k f o r s a fe d e liv e r y
a n d stora ge. Pure d e x trin e g u m m in g .

STRAPS

Ideal fo r p a c k in g c u rre n c y , d e p o s it tic k e ts , ch e c k s , etc. . . . d o n o t b re a k
o r d e t e r i o r a t e w i t h a g e . S iz e 10 x \ i n c h e s a n d m a d e o f s t r o n g b r o w n
K r a f t s t o c k w i t h g u m m e d e n d f o r ea s e o f s e a lin g . P a cked 1000 to a c a r to n .

SEE

•

T H E C. L . D O W N E Y


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

YOUR

DEALER

COMPANY

OR

•

S E N D

FOR

FREE

HANNIBAL,

S A M P L E S

M ISSOURI

•

DEPT.

Northwestern Banker, March, 1983

8

Bank Promotions
ROMOTIONS and other an­
nouncements have been made
P
by the following banks:
Centerre Bank, St. Louis: William
G. Tull has been elected a senior ex­
ecutive vice president and advisory
director, according to Clarence C.
Barksdale, chairman and chief ex­
ecutive officer.
Mr. Tull former­
ly was executive
vice president of
The Riggs Na­
tio n a l B ank,
W a s h in g to n ,
D.C., which he
has been asso­
ciated with since
1973.
Named vice
presidents were: James E. Welzbacher, investment banking depart­
ment; Mary W. Barron, Wallace D.
Niedringhaus and Charles M. Stout.
Mr. Welzberger has been with the
bank since 1970, serving most re­
cently in data processing sales. Ms.
Barron started three years ago as a
commercial banking officer. With

Douglas-Guardian
WAREHOUSE CORPORATION
Home Office

P.O. BOX 52978, NEW ORLEANS, LA 70152
(504) 523-5353


Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the bank almost 15 years, Mr. Nie­
dringhaus is a graduate of Wash­
ington and Lee University and at­
tended law school at the University
of Missouri. Mr. Stout was orig­
inally hired as an analyst in the
credit department in 1977.
Also announced was the election
of the following people to officer
status: Judith Dora Lohaus, legal of­
ficer; Gary D. Sitze, data process­
ing, and Terry Carl Throgmartin,
data processing.
Lawrence K.
Roos has been
appointed an ad­
visory director
of
C e n te rre
Trust Company
of St. Louis. Mr.
Roos, the recent­
ly retired presi­
dent of the Fed­
e ra l R eserv e
B ank of S t.
Louis, is a special limited partner
and economic advisor for Bear,
Stearns and Company. During his
career, Mr. Roos has compiled more
than 25 years of banking experience.
Commerce Bank of Kansas City,
N.A.: The board of directors of the
bank has announced the election of
David A. Rismiller as chairman and
chief executive officer and Warren S.
Weaver, formerly executive vice
president of Commerce Bancshares,
as president of the bank.
Mr. Rismiller is replacing James
M. Kemper, Jr., as chairman. Mr.
Kemper will continue as chairman
and chief executive officer of Com­
merce Bancshares, Inc. Mr. Kemper
had been chairman of Commerce
Bank of Kansas City since 1964. He
also served as president of the bank
from 1955 to 1966.
J.C. Welman, Jr., has been elected
executive vice president, with senior
responsibilities for operations and
administration, for Commerce Banc­
shares, Inc. Mr. Welman has most
recently served as an independent
management consultant, principally
to financial institutions. His most
recent position was with First Na­
tional Bank, Minneapolis, as head of
operations and control group and ex­
ecutive vice president.

Continental Illinois National#
Bank and Trust Co., Chicago: Rob­
ert P. Gibbs has rejoined the bank as
manager of the Minneapolis office at
510 Marquette Avenue. Mr. Gibbs,
who had previously been in th e #
bank’s northwest division of the
financial institutions group, joined
Continental in 1972. Before rejoin­
ing Continental, he was a vice presi­
dent at Security Bank, N.A., Bill-#
ings, Montana.
First Midwest Bancorp, Inc., St.
Joseph, Mo.: Benton O’Neal, presi­
dent, recently announced the promo­
tions of several members of First
Midwest, at their respective banks.
At First Na­
tional, St. Joseph,
Benton O’Neal
was
named
vice chairman;
Lyman L. Frick,
J r., executive
vice president;
John Karn, sen­
ior vice presi­
d en t;
Ja m e s
B. O’NEAL
Schatz and Jay
Elardo, vice presidents.

J. SCHATZ

J. ELARDO

Mr. O’Neal continues as president
of First Midwest. His main empha- q
sis will be in the operations of First
Midwest’s affiliates. Mr. Frick will
continue as the manager of the trust
division and his additional respon­
sibilities will include chairman of the #
strategic planning committee and
supervisor of the operations and
marketing division.
Mr. Karn also serves as chairman
of First Stock Yards Bank. He will #
continue as head of the lending divi-

9

’Give Us a Couple of M inutes.. .We’ll
Give You Years of Great Service.
At G.D. van Wagenen
Company, we offer
Blanket Single
Interest insurance
and our Automated
Insurance Monitoring
System. Prompt, fair
claims handling is
our #1 priority and
has been for over
thirty years.

So talk to Don Miller or
Les Lukken about
our collateral protection
programs.
Spend a few moments
n o w . . . and relax for
years to come.

m g g jy r

G.D. v a n W a g e n e n
Com pany
524 Plymouth Building
12 South Sixth Street
Minneapolis, Minnesota 55402
In Minnesota call: 1-612-333-2261
Out-of-State: 1-800-328-2052

Les Lukken
Marketing Representative


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

Northwestern Banker, March, 1983

10

sion of both First National and First
Midwest, with added responsibil­
ities in establishing and monitoring
the lending policies and procedures
of the bank.
Mr. Schatz has also been promo­
ted to manager of the commercial
loan department. He previously had
served as cashier at First Stock
Yards Bank, before joining First Na­
tional in 1982.
M.D. COIL
R.L. COLLINS
Mr. Elardo, who has been with the
bank since 1969, will be responsible
First National Bank of Kansas Ci­
for all retail banking functions and ty: Michael D. Coil has been pro­
all instalment lending.
moted to vice president and Rebecca

Especially For Bank Directors...
Programs designed to provide information and opportunity
for discussion of issues and trends in banking vital to bank
directors in meeting their responsibilities and liabilities...
Prominent bankers and senior national regulatory officials
as speakers and discussion leaders...Sponsored by the
Southwestern Graduate School of Banking Foundation at
Southern Methodist University.

Assemblies for Bank Directors Calendar
•October 23-26, 1983
The Greenbrier
White Sulphur Springs
West Virginia
Assembly 54

•November 3-6, 1983
The Fairmont
New Orleans
Louisiana
Assembly 55

•April 12-15, 1984
The Hyatt on Hilton Head
Island at Palmetto Dunes,
Hiltonhead Island, So. Car.
Assembly 57

•September 1-4, 1984
The Broadmoor
Colorado Springs
Colorado
Assembly 58

•February 16-19, 1984
Hyatt Regency
Maui, Hawaii
Assembly 56

•November 8-11, 1984
The Arizona Biltmore
Phoenix, Arizona
Assembly 59

For further info rm atio n , p lease co ntact:
Dr. Alan B. Colem an or Nancy Griggs
S.M.U. Box 2 i 4
Dallas, Texas 7 5 2 7 5
T elephone: 2 1 4 / 6 9 2 - 2 9 9 4 or 2 1 4 / 6 9 1 - 5 3 9 8
DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

L. Collins to assistant vice presi- ^
dent.
^
Mr. Coil joined the staff as man­
ager of consumer lending in June,
1982. He previously was affiliated
with Peoples Trust Bank, Fort ^
Wayne, Indiana.
Mrs. Collins was given commer­
cial lending responsibilities in June
of 1982.
Manufacturers Hanover Trust
Company, New York: A new organi­
zation structure and related man­
agement promotions for the retail
banking division was recently an­
nounced.
William A. Buckingham has been
elected senior vice president and
deputy general manager in charge of
the division’s branch banking
group. He will report to Edward D.
Miller, executive vice president in
charge of the division. Mr. Buck­
ingham had been president, Manu­
facturers Hanover, N.A., the up­
state New York banking subsidiary
of Manufacturers Hanover Corpora­
tion.
Frederick G. Westerman has been
elected president of Manufacturers
Hanover, N.A. He had been execu­
tive vice president of the 36-branch
Rochester-based subsidiary.
The branch banking group has
been realigned to include the 201
branches in Metropolitan New York,
the marketing, credit policy and
staff administration departments,
plus Manufacturers Hanover, N.A.
John P. Mascotte, chairman, pres­
ident and chief executive officer of
the Continental Corporation, was
elected a director of Manufacturers
Hanover Corporation and Manufac­
turers Hanover Trust Company.
United Missouri Bancshares, Inc.,
Kansas City: R. Crosby Kemper,
chairman and chief executive officer,
has announced the election of the
following four men to the holding
company’s board of directors:
Thomas Ellis Beal is the president
of International Villages, Inc.,
Prairie Village, and Santa Fe Office
Building, Overland Park, Kansas.
David R. Bradley, Jr., is president
and editor of the News-Press & Ga­
zette Company, St. Joseph.
James E. Ferrell is president and
owner of Ferrell Companies, Inc. in
Liberty, Missouri.
Peter N. Gabrovsky is vice presi­
dent, business development, for
United Missouri Bank of Kansas Ci­
ty, N.A.

11

Give them
a chance to make
the right choice.

His Risk or All-Risk
_
^

W

Why do so many farmers take unnecessary risks in an already
risky business? You know the reasons: costs, complexity and,
incomplete coverage. Up until recently, many types of crop
insurance have been loaded with miles of red tape and coverage
sometimes less than adequate. Now there’s a simple solution to
all that. . .Multi-Peril Crop Insurance from Dawson. Multi-Peril Crop
Insurance offers more in 1983. Better coverage for farmers and
new incentives for you. . .the agent. Multi-Peril Crop Insurance
protects your customers against most natural disasters. One
simple, easy-to-understand policy does it all. And that means no
more complicated forms and red tape for you. With 65 years
experience and a strong, dependable team of adjusters, Dawson is
the name to depend on. Give us a call today and find out how
easy it is. We think you’ll be pleasantly surprised.

Fargo, North Dakota
In N o rth D a k o ta

CALL TOLL FREE: 1-800-437-4680


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

1-800-342-4848
Northwestern Banker, March, 1983

12

Corporate
ROMOTIONS and other an­
nouncements have been made
P
by the following firms:
American Express Company, New
York: Frank J. Partel, Jr., has joined
the company’s
consumer finan­
cial serv ice s
group, U.S.A.
division as sen­
ior vice presi­
dent for finan­
cial services in­
stitu tio n m ar­
keting and sales.
Mr. Partel will
be responsible F.J. PARTEL, JR.
for directing all marketing and sales
efforts to financial service institu­
tions which offer the American Ex­
press Gold Card and Travelers
Cheque. He previously spent six
years at Citicorp, most recently as
vice president and general manager
for business development of Citi­
corp’s consumer banking, travel and
entertainment group.

Nebraska, Western Iowa and West­
ern Missouri. Associates business
loans provides asset-based commer­
cial finance services to businesses
throughout the United States.
Mr. Vermillion is a graduate of
Rockhurst College, Kansas City. He
also has received the executive award
from the Graduate School of Credit
and Financial Management at Dart­
mouth College, Hanover, NH.

Edward Anson & Associates, Sioux
City: Patricia C. Snyder has been
elected executive vice president and
chief executive officer of the ten year
old company. Mrs. Snyder has been
with the company since its found­
ing, most recently serving in the
position of senior consultant.

Ba rcl aysAm erican/Business
Credit, Inc., Minneapolis: William J.
Duma has been appointed business
development officer in the Min­
neapolis region office.
Mr. Duma will
be responsible
for structuring
financial p ro ­
grams to meet
the needs of a
variety of pro­
spective clients
throughout Min­
nesota, Iowa and
the Dakotas.
W.J. DUMA
A resident of
Excelsior, Minn., Mr. Duma holds a
BA degree in accounting from the
University of Notre Dame and an
MBA degree from Marquette Uni­
versity. Previous business ex­
perience includes First National
Bank of Minnesota and First Bank
St. Paul.

Associates Commercial Corpora­
tion, Kansas City: Robert Vermil­
lion has been appointed loan devel­
opment officer for the business loan
division. In making the announce­
ment, Rocco A. Macri, executive
vice president in charge of the com­
pany’s business loans division, said
the company has opened a new bus­
iness loan development office in
Kansas City in order to establish a
strong local presence in the vital
mid-western marketplace. The office
is located at 9101 West 110th Street
in Overland Park, Kans.
Mr. Vermillion, who joins The
Associates with more than five
years of commercial finance ex­
perience, will be responsible for
managing the newly-established
Kansas City sales office and for
handling all business loan develop­
ment activities in eastern Kansas,

Brandt, Inc., Watertown, Wis.:
James R. Holahan has been named
manager of advertising and sales
promotion.
Mr. Holahan formerly was na­
tional sales and marketing manager
for Brenner Tank, Inc., Ripon, Wis.,
since 1974. During the previous 15
years, he was with Speed Queen in
the same city, in positions including
national accounts manager and ad­
vertising and sales promotion
manager.
At Brandt, Mr. Holahan takes re­
sponsibility for coordination and im­
plementation of all sales promotion,
advertising and public relations ac­
tivities for the company, its coin
products and currency systems divi­
sion, and its business products
group. He also will be in charge of
sales training programs.
Douglas C. Rattray has joined


Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B ra n d t’s coin
products divi­
sion as general
manager. Based
in W atertown,
the division for­
merly was head­
ed by William F.
Kraem er, vice
president, who
d .C. RATTRAY
recently retired after 27 years w ith^
Brandt.
Mr. Rattray had been with Il­
linois Tool Works, Inc., Chicago,
where he was special projects
manager for the ITW switches divi-#
sion and earlier was manufacturing
manager of the cortron division.
Davis Oil Co, Denver: James C.
Cordell, formerly with the Continen-^
tal Illinois National Bank, Chicago,
has joined the staff of Davis Oil Co.
Mr. Cordell
was d iv isio n
manager of Con­
tinental’s Texas
division in Hous­
ton, in charge of
an energy loan
portfolio in ex­
cess of $2.2 bil­
lion and headed

\staff3 2 -.m
e l? b e r
involving

J.C. CORDELL

commercial banking services, spe-|
cial industries department, oil and
gas group.
Mr. Cordell will also serve as a
board member of and adviser to the
Davis-owned Metrobank of Denver^
where he will oversee all energyrelated loans.
Doane-Western, St. Louis: Duane
R. Gorr is retiring from Doane-^
Western after 21 years of service tow
the agricultural banking industry.
Prior to joining the company he
served as district, sales manager in
the feed department of Swift an d ^
Co., as district manager and sales
promotion manager of the Berry
Tractor and Equipment Co. and as
advertising and sales promotion
manager for the J.I. Case Co.
£
In 1980, Mr. Gorr was promoted
to manager of bank services in the
publications division and was named

ACORN

Sale
Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
Tor inlormation write

THE ACORN PRINTING CO
O akland, Iowa

13

Cm w u

m c ia

A

MINNEAPOLIS, MINNESOTA

E xperience a proud tradition
The C urtis is a landm ark in dow ntow n M inneapolis. A friendly
tradition that m akes good sense. Q uiet, bright and spacious
room s overlook the city. Helpful com petent service m akes you
feel at home. A t the m ost affordable price possible.

B eyond the expected
A value so rare these days. Convenience: easy freew ay access,
indoor ram p parking w ith connecting skyway, just a short 7
blocks from the new D om ed Stadium . Close to Nicollet Mall
shopping, C onvention C e n te r.. .all th at the Twin Cities has to
offer. C om fort: indoor and o u td o o r pools, w hirlpool, sauna,
nostalgic Palm Room lounge, beautifully landscaped center
courtyard. For business or fun, you're never a stranger at the
Curtis. Experience a tradition that will bring you back.

For reservations and inform ation call toll-free 800-328-4551.
M innesota toll-free 800-752-4264.
In the Twin Cities 340-5300.

^

^

y i n c

i\c v v

)

j -

C urtís hoteL
10th Street & 3rd Avenue South, M inneapolis, MN 55404


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

Northwestern Banker, March, 1983

14

publisher of Farming for Profit in
1982. He holds a B.S. degree in Soils
and Agronomy from the University
of Wisconsin.

made by Jay H. Keller, executive
vice president of Salem, an expand­
ing Ohio-based organization handl­
ing fine chinaware, glassware and
other ceramic products. Salem has
J.T. Miller Company, Minneap­ offered its products through banks
olis: Kurt D. Miller has joined the as premiums for a number of years.
firm as a marketing representative,
it was announced by Jerrold T.
Miller, president. Kurt Miller joins
Travelers Express Company, Inc.,
his brother Dirk Miller, as the se­ Minneapolis: Jacqueline P. Taylor
cond member of the third generation has been a p ­
of the family to be associated with pointed corpor­
the company, which provides a wide ate counsel, an­
variety of insurance related services nounced C.A.E.
to the financial community.
Anderson, Jr.,
Kirt Miller attended Cornell Col­ p resid en t and
lege and was graduated im 1978 chief executive
from the University of Minnesota, officer.
after which he joined Federated In­
Before joining
surance Companies of Owatonna as T ravelers E x ­
a marketing representative.
press, Ms. Tay­
J.P. TAYLOR
Salem China Company, Salem, lor was Minne­
Ohio: Charles E. Geiwitz, until sota’s special assistant attorney
recently vice president and general general and received national atten­
manager of the Incentive Division of tion for the 1982 complex landmark
W. Bell & Company, Rockville, Md., merger of the failing Minneapolis
has been appointed national sales savings bank with a strong commer­
manager, premium division, of Sal­ cial bank, successfully finalized as
em China. The announcement was F&M Marquette National Bank.

W ell give you $25 when you
stay at the Essex Inn!

We’ll give you $25 worth of Deli
Dollars - good for $25 worth of
delicious (fining and drinks at our
new 8th Street Deli & Lounge, every
day you stay at the Essex Inn.*
Or, in lieu of Deli Dollars, you
can have a second room FREE, or
choose one of our elegant suites.
Rates are $45 single, $50 double.
It’s our way of introducing you to

the comfort and inform ality of the
Essex Inn on Chicago's famed
Michigan Avenue. Right on Grant
Park, in the h eart o f all of
Chicago’s downtown action - close
to business, shopping,
entertainm ent. Includes FREE
PARKING, courtesy car service along
Michigan Avenue.

C an y o u affo rd
to give u p $25?

CALL NOW FOR RESERVATIONS:
312/939-2800 Ask for Deli D ollars
Or call toll-free 800/621-6909

a

ESSEX INN
8th & Michigan
Chicago, Illinois 60605

Program Runs: Through Apr. 9, 1983. ‘ One coupon per day per room . Room s s upject to
a v a ila b ility . O ffe r e x cludes c o n v e n tio n s and groups. Program not a v ailab le these dates:
Jan.’83, 14, 15, 16, 17, 18, 28, 29, 30, 31, Feb.'83, 1, 2, 9, 10, 11, 12, 18, 19, 20, 21, 22,
M ar.'83, 27, 28, 29, 30. B e nefits valid w ith curre nt stay only. M anagem ent reserves the right
to cancel th is program at any tim e w ith o u t n otice .


Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Deluxe Sales, Net Climb

4

Based on company statements for
the year of 1982, which are as yet
unaudited, Deluxe Check Printers,
Incorporated will report record sales
of $549,519,266 an increase of 9.0% <
over last year’s $504,036,023, accor­
ding to Eugene
R. Olson, presi­
dent and chief
executive officer
a t S t. P aul,
M inn., h e a d ­
quarters.
Net income for
the same period
was a new high
of $64,887,443,
E.R. OLSON
up 21.5% over
the year 1981 when earnings were
$53,422,757. Net income per share 1
was $2.83 compared to $2.33 last
year.
Sales for the fourth quarter were
$141,745,510, up 9.4% from
$129,553,163 last year, while net*
earnings were $18,332,679 or 80
cents per share compared to
$13,240,211 and 58 cents per share a
year ago.
(

Commerce Banks to Offer
Discount Brokerage
The Commerce Banks of Mis­
souri, beginning March 15, will offer ^
complete discount brokerage ser­
vices. Commerce Banks will be the
largest bank group in Missouri to
make this service available to
customers.
q
The discount brokerage services
wil be provided by Fidelity Bro­
kerage Services, Inc. Fidelity is the
nation’s second largest discount
broker. Fidelity will offer brokerage ^
accounts through Commerce Bank
of Kansas City, N.A., the lead bank
for the 39 banks in the Commerce
Bancshares, Inc., family of banks,
according to David W. Kemper, £
president of Commerce Bancshares.

Harris to Offer Futures
Harris Bank, Chicago, has an­
nounced that its subsidiary, Harris ^
Futures Corporation, has applied to
the Commodity Futures Trading
Commission for registration as a
futures commission merchant.
Subject to CFTC registration, the q
new bank subsidiary will offer bank
customers and others a full range of
financial futures services, including
executing and clearing financial
futures contracts on major com- 0
modity exchanges.

15

Our out-of-town customers
can dial a local phone number.»
to reach us700 miles away.
My company expanded its
market area without the expense of
operating a branch office. With
Remote Call Forwarding from
Northwestern Bell.
Without any cost to our
customers, they can dial a local
number and the call is automatically
forwarded to us. So, for as little as
$16 a month, plus long distance
charges, we’re maintaining a “local
presence” and lowering the cost of
a sale.
If your company wants to
branch out, but doesn’t want to
carry the cost of a branch office,


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

find out about the availability of
Remote Call Forwarding in your
area. It’s another Telemarketing tool
from Northwestern Bell that can
help make your organization more
productive.

Northwestern Banker, March, 1983

16

W e're blow ing our
cover on w ire transfers.

m

All banks transfer money.
B u t nobody talks about it. It’s one of
those quiet, ignored sort of services.
We th in k it’s tim e wire transfer got
the limelight it deserves.
E ach year w e transfer u p ­
w ards of 10 trillion dollars. So wire
transfer is certainly im portant to us.
A nd it’s im portant to you, too.
Delayed transfers m ean delays in
your investm ents.
Fast is w hat you w ant. A nd
w ith us,y o u ’ll get it. We can m ake
transfers at supersonic speed. You
m ay call it magic. We ju st call it
progress. B u t actually it’s called
electronic transfers.
Not only are they faster,
th ey ’re more convenient. Instead of
spending hours on the phone each
day, you can authorize transfers in
advance.T hey’ll be handled au to ­
matically. Electronic transfers can
m inim ize your aggravation
w hile m axim izing your
efficiency.
W hether you choose
the electronic mode of tra n s­
fer or the traditional phone
or m ail,you can be sure w e’re
over-cautious about errors,
absolute sticklers about
security.
n Call R obert C.Vasko at
(312) 828-4046. A nd ask about wire
transfer. We m ay not w ear trenchcoats or carry cryptic decoders, but
w e excel at this secret service.

CONTINENTAL BANK
C o n tin e n ta l Illinois N a tio n a l B a n k a n d T ru s t C o m p a n y of
C h ic ag o , 231 S o u th La S alle S tre e t, C h ic ag o , Illinois 60693
A tla n ta • B o sto n • C h ic ag o • C le v e la n d • D a lla s • D e n v e r
D e tro it • H o u sto n • L os A n g e le s • M in n eap o lis • N e w York
St. L o u is • S a n F ra n c is c o • S ea ttle • W h ite P la in s

DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

17

Farm finance leasing
• A id s farm ca sh flow
• S tim u la te s eq u ip m en t s a le s
• A dds p rofits to bank
Written Especially for
T he N orthw estern B anker
B y MICHAEL S. OLAUSON
Financial Services Officer
Lease Northwest, Inc.*
Minneapolis, Minn.

OMETIMES one wonders how it is possible to
S
keep up with the dizzying pace of new financing
and leasing products...and, more importantly, wonder

#

•

^

^

^

which ones are important for you and your customers
to take a good look at. The farm finance lease is
definitely one to seriously consider.
The leasing environment has been one of seemingly
continual change since the enactment of the Economic
Recovery Tax Act (“ERTA”) in August, 1981. The
most recent development, the Tax Equity and Fiscal
Responsibility Act of 1982 (“TEFRA”) made a very
positive contribution to the agriculture industry by
giving birth to the farm finance lease. Appropriately, it
is a “hybrid” lease that combines features of ERTA’s
safe harbor lease and TEFRA’s new general finance
lease that will go into effect January 1, 1984.
The Farm Finance Lease
The farm finance lease, which has fewer restrictions
than the future general finance lease, was put into ef­
fect July 1, 1982. It was developed to benefit agricul­
tural lessees as well as farm equipment manufacturers
and dealers. The key feature from the lessee’s stand­
point is the permitted use of a minimum 10% purchase
option that is stipulated in the lease contract. Since
much of a farmer’s equipment can retain usefulness
and value long after a typical five-year lease term, the
conventional “fair market value” purchase option can
be a deterrent to leasing. The objection is usually a
strong one, “ I don’t know how much I ’ll have to pay”
(to exercise the purchase option at lease termination).
With a fixed purchase option, the lease is more attrac­
tive to the farmer and he has additional means by
which to acquire equipment...from dealers who represent a depressed farm equipment industry.
Most new equipment used for farming purposes can
*Lease Northwest, Inc., is a subsidiary of Northwest Bancorporation, a diversified financial services company with 86 commercial
banks and several specialized financial services subsidiaries with
operations in 40 states and several foreign countries.


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

be leased under farm finance lease guidelines. It is still
possible to lease this property using conventional
guidelines (pre-ERTA) or TEFRA safe harbor guide­
lines, but neither alternative is as desirable for the
lessee.
Farm Finance Lease Guidelines
The primary guidelines for the farm finance lease are
summarized as follows:
• The cost of farm property subject to a farm
finance lease cannot exceed $150,000 per calendar
year per lessee.
• The written purchase option must be 10%, or
greater, of the original equipment cost. The pur­
chase option remains an option; that is, the lessee
may still return the equipment or renew the lease
at lease termination.
• There is a 90-day “window” that allows the
equipment to be leased within 90 days of the date
the equipment is placed in service, without any
loss of tax benefits to the lessor.
These “transitional” guidelines are effective until
December 31, 1983, at which time leases of farm pro­
perty will be governed by the general finance rules
established by TEFRA. There will, however, be certain
favorable exceptions to the rules for the leasing of farm
property.
Considerations for Lessor
There are some important considerations for the
lessor when writing a farm finance lease.
1. The $150,000 limitation must either be carefully
monitored by the lessor, or the lessor must be comfor­
table relying on lessee indemnification included in the
lease agreement. This protects the lessor against loss
of tax benefits in the event a lease is disqualified
because of a $150,000 rule violation.
2. Another consideration is the fixed purchase op­
tion. A portion of the lessor’s total yield is represented
by the amount of the residual (equipment value) at
lease termination. Lessors typically assume a given
residual value (based on equipment type and its intend­
ed use, length of lease term, historical values) and take
that value as income over the lease term. At lease ter­
mination, it is not uncommon for a lessor to realize
more, or less, than the residual assumption through
the lessee’s purchase, or the sale of the equipment by
FARM FINANCE LEASING...
(Turn to page 23, please)
Northwestern Banker, March, 1983

18
OT TOO long ago, an article in a regional banking
N
publication stated, “local and regional bankers,
faced with increased competition from money-center
banks for business customers, may be turning in larger
numbers to third party specialists in certain secured
lending transactions.”
While “collateral management” services have been
available for years, companies specializing in this
business have developed many new concepts and inno­
vations. Originally, collateral management was called
Field Warehousing, and covered only inventory. Now,
this industry has expanded its services, just as lenders
have widened their spectrum. Now, lender protection
and security is provided to include accounts receivable

Benefits of
Collateral
Management
and other collateral that lenders look to for credit
justification, and the types of services available are
more flexible. Keep in mind that the role of a third par­
ty is as a manager of collateral, not a funder with
whom a potentially profitable credit has to be shared.
Lenders sometimes bypass a potential credit be­
cause of their inability to monitor the collateral on an
on-going basis. When the balance sheet and income
statement do not support the credit requirements of a
prospective commercial borrower, consider what steps
might be taken. If a lender chooses to use the inven­
tory and/or receivables as collateral, and to control and
guarantee the security through a third party such as
Collateral Control Corporation, he is a step ahead of
the average bank lender.
Instead of using third party collateral management
services to create quality loans with less risk, many
lenders place a low priority on secured lending, pro­
bably because a provision must be made to monitor the
collateral. This would portend a tendency to stay away
from loans requiring special handling. The avoidance
of this type of loan when a lender is located in a com­
munity with commercial and industrial firms might
unintentionally hamper bank growth in all of its ser­
vices. Lenders, especially commercial bank lenders, are
going to have to be more imaginative to keep pace with
the increased competition in the lending marketplace.
Deregulation and disintermediation have made it all
the more important for bank lenders to be more ag­
gressive.
Another alternative to using third party collateral
managment services is in participation with a commer­
cial finance company. While taking that action reduces
the exposure to loss pro rata with the funding parti­
cipation, it also reduces your profit pro rata and often
Northwestern
Banker, March, 1983

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

adds significant costs to your borrower, which could
prompt him to seek another lender.
®
On the other hand, if a lender holds inventory cer­
tificates or warehouse receipts, or other documents
covering collateral sufficient to cover the loan, it is in­
cumbent upon the third party to stand behind the
quantities as shown on those documents. If there is a *
shortage of that collateral, it will be covered under the
fidelity bond for the benefit of the lender.
Our role as a manager of collateral is supported by
$50,000,000 in legal liability and fidelity insurance to ^
protect lenders against loss in the event of inventory *
disappearance and/or fraudulent receivables. When­
ever losses occur in a secured lending situation, it

Written especially for
T he N orthw estern B a nk er

By LEO H. HERMES, JR.
Vice President
Collateral Control Corporation
St. Paul, Minn.

usually is because of a shortfall of collateral at the time
of default.
Third party collateral management programs pro­
vide the control-minded lender with the means to
guard against collateral deficiencies which result in
losses. In many credit situations, there is an attractive
alternative to participation funding. That alternative
is the use of third party collateral management such as
that offered by Collateral Control Corporation. The
lender retains 100% of the loan with more security,
thereby increasing his revenue substantially and, just
as important, generally at a lower cost to his customer.
Third party collateral management is designed to
provide the security, reporting and guarantees a lender
needs to monitor a credit where repayment comes from
the turnover of inventory and/or the accounts receiv­
able.
Cost of collateral management services is usually
borne by the borrower and is very minimal in relation
to the exposure taken on by the involved third party.
In fact, the cost is easily offset by increased sales, and
quantity and discount purchasing opportunities to the
borrower.
Collateral management programs can be tailored to
fit certain situations. The lender has on-going day by
day coverage, with in-depth examinations of the re­
ceivables, and complete physical inventories. These
programs enable a company to become bankable, or re­
main bankable, obtaining the most economical financ­
ing while maintaining control of its own destiny. For
the borrower, a lender will be more receptive to a loan
request, or an increase in the current line of credit, if
COLLATERAL MANAGEMENT...
(Turn to page 31, please)

#

•

#

•

^

•

19

Written especially for

For Road and Bridge Construction Firm —

T he N orthw estern B an k er

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

5-Year term
loan p rovid es

ITH the economy on a seemingly upward trend,
W
business expects its lenders to provide the finan­
w orking capital
cial support needed to capitalize on increasing product
demand.
Many companies have recently experienced severe
profit declines or losses, interrupting previously stable
and growing profit patterns. The rate of recovery con­
tinues to be a question, particularly for certain hard-hit
^ industries.
^
The financial community also has been adversely af­
fected by the economic downturn. Loan losses have
been a major concern for many lenders. Banks are
strengthening their portfolios by weeding out credits
^ in industries with an uncertain future and whose borw rowing requirements no longer “fit” the bank’s current
lending parameters.
Also affected by this credit constriction are young
businesses that do not possess proven track records.
q Their financial needs are as real as those of long
established firms.
Capital Needed in a Turnaround
In a strengthening economy, firms often require ad­
ditional working capital to sustain growth. When this
1need arises, it must be met expeditiously. Working
capital, especially in the case of small or medium-sized
companies, becomes strained quickly as these firms in­
cur increased expenses for raw materials, utilities and
payroll. Even more important, firms may not want to
bypass good opportunities when they arise, and prompt
availability of capital is important. Attractive acquisi­
tions, for example, often can be made only if financing
is quickly arranged. It is flexibility for meeting these
needs which has made asset-based lending a financing
1tool increasingly useful to American business. Assetbased lending is a practical alternative for growing
companies whose futures are bright.
The ability to manage loan risk is critical in the pre­
sent economy because the value of collateral, espe­
cially accounts receivable and inventory, is constantly
changing — sometimes appreciably, often quickly.
Asset-based lenders such as BarclaysAmerican/Bus­
iness Credit have the capacity and expertise required
to monitor collateral properly. This includes regular
on-site inspections to review and confirm accounts
receivable and inventory, and to verify other financial
data such as accounts payable, taxes and income fig­
ures. If equipment is involved, it is inspected and eval­
uated regularly by expert appraisers.
Obviously, collateral evaluation and control is vital
if banks are to minimize loan portfolio risk. Assetbased lenders can achieve this objective. Other bene­
fits also accrue from such a lending partnership. Be­
cause the asset-based lender assumes responsibility for
administering the loan, the bank benefits from its
^


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

share of income while maintaining its valued relation­
ship with a customer.
Working Capital Financed
In a recent situation, a local bank participated with
BarclaysAmerican/Business Credit in a $5.5 million
line of credit to a company primarily engaged in road
and bridge construction. Although the firm had been
consistently profitable during its 50-year history, the
lagging economy and depressed construction industry
caused a decline in sales. The company posted a loss
for the most recent year and projected a loss for the
coming year.
In need of working capital to turn the company
around, management turned to BarclaysAmerican/Busness Credit when its existing lender was unwilling to
extend additional credit. Based on collateral strength,
particularly machinery and equipment, proven man­
agement capabilities and definitive plans for turning
the company around, BA/BCI was able to structure a
$5.5 million line of credit. This enabled the company to
refinance certain machinery and equipment, pay off
unsecured credit obligations and increase working
capital.
Assured of our ability to service the loan, and the
company’s ability to again be profitable, a community
bank entered this new financing arrangement with a
50% participation.
Five-year Term Loan
The entire credit line, secured by machinery and
equipment as well as accounts receivable and inven­
tory, was structured as a five-year term loan. No prin­
cipal payments were required during those three months
of the year when business is traditionally slow. The
loan substantially strengthened the borrower’s bal­
ance sheet because much of the loan indebtedness was
moved from a current liability (as listed under the
previous borrowing relationship) to long term debt.
This enabled the firm to maintain good standing with
its bonding company.
The company now has the time required and work­
ing capital necessary to weather these difficult times.
Every indication is that the borrower is successfully ef­
fecting a turnaround.
Assisting businesses such as this to rebuild finan­
cial strength is an important role for today’s lenders.
And participations between banks and asset-based lend­
ers will be increasingly useful to struggling and growing
businesses as the economic climate improves.
□
Northwestern Banker, March, 1983

20

L enders m u st
w ork to g e th e r
to build tom orrow
Written especially for
T he N orthw estern B ank er

By WALTER C. GREIG
Vice President
Acquisition Financing
Business Loans Division
Associates Commercial Corporation
Chicago, 111.

CONOMISTS, in general, agree that the recession is
E
over and a slight recovery has begun. The economic
improvement that will result should have a significant
impact on all lenders. Starting now, and lasting perhaps
for the remainder of this decade, there will be an abun­
dance of opportunities for community and regional bank­
ers to work with asset-based commercial lending insti­
tutions, particularly as loan participants.
A major reason for such optimism is that those same
negative economic factors that have devastated business
after business the past few years — volatile interest
rates, high inflation, shrinking balance sheets, non­
existent working capital and the like — have created an
entirely new set of financial ground rules for the business
world to follow. Actual cash has become a very valuable
and much sought after commodity...a symbol of manage­
ment independence for today’s chief executive officer.
Cash flow has become a dominant theme in boardrooms
with at least one chairman touting the large cash ac­
cumulations he has pulled together to give his company
the staying power...the liquidity...to survive in these try­
ing economic times.
Divestitures Providing Valuable Cash
The major corporations no longer find it practical to be
highly-leveraged with resources tied up in operating
units that do not fit their management’s long-term
growth plans — cash is just too expensive, and too
valuable an asset. This philosophy has led the manage­
ment at many corporations to change their strategies
and sell off or divest divisions and subsidiaries that were
marginally profitable or did not meet long-term growth
targets. These divestitures provided the seller with funds
that could then be employed for debt retirement or the
purchase of safe liquid securities.
Acquisition and merger activity has increased as a
direct result of this trend to redeploy assets and concen­
trate on return on investment versus the “growth by any
means’’ philosophy of previous years. W.T. Grimm &
Company, a Chicago-based consulting firm that monitors

Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

merger activity, counted 2,346 merger and acquisition ^
announcements in 1982, down just two percent from the w
2,395 reported in 1981. Grimm officials placed a dollar
value of $53.8 billion on the 1982 transactions, resulting
in a total value of reported mergers and acquisitions for
the past three years of more then $180 billion. We fully ^
expect the next few years to be equally productive in this
area.
Last year, for example, Associates Commercial Cor­
poration put together an acquisition financing team to
pursue what we anticipate will be a significant opportuni- £
ty to work with bankers in financing buyouts and spin­
offs. In the past year and a half, our business loans divi­
sion has approved credit lines in excess of $120 million
for more than a dozen acquisitions. Several banks and
lending institutions have participated with us in those ^
loans, which ranged in size from $750,000 to the $50
million line of credit we extended to the buyers of a major
American steel producer.
Joint Support for Local Firms
(
Perhaps even more promising for the community
banker is the fact that another significant market oppor­
tunity for participations exists in many of the smaller
and medium-sized communities across America. In these
cities and towns are located numerous factories that pro-,
vide a strong impetus into the local economies in which
they exist. Many are owned and operated by smaller
businesses...the ones that would make the second or third
“Fortune 500’’ lists...or by local entrepreneurs. These
employers many times represent the major influence in i
the social and economic structure of their local economy,
and without them, many towns would not grow.
These all-important “lead’’ employers have been
tightening their belts dramatically the past couple of
years, and in many instances, the recession has taken its <
toll — they are not as healthy financially as they were in
past years. Yet, in order for these mainstay industries to
survive and grow, they are going to need adequate finan­
cing to modernize and to expand in spite of the dramat­
ically escalating costs of doing business.
<
Ultimately, this scenario creates a very attractive op­
portunity for banks and asset-based lenders. Most of
these locally-owned companies have considerable assets,
but many are short on capital. Additionally, the com­
munity banker who provides regular banking services to <
these firms may not be in a position to provide adequate
funding for expansion plans and so forth. This is the area
where the progressive community banker can maintain
his banking relationship with his customer and still pro­
vide the full financing required by his client. He need on­
ly call an asset-based lender to share in the credit.
Asset-based lenders have the expertise to put the
credits together and to monitor the loans once they are
approved and working. With the ability to structure a
credit to fit the specific needs of a client, asset-based 1
lenders are often able to make what would be an un­
workable unsecured loan into an attractive secured
credit. That leads to profitable and rewarding working
relationships for bankers and commercial finance com­
panies alike.
Corporate Examples
Associates, for example, has just extended a multi­
million dollar line of credit to an east coast stone and
gravel company. It’s management, some of whom had £
formerly owned the company, recently purchased it from

21

T

•

#

•

•

•

®

•

^

^

HE RAPID expansion of asset-based lending for
Working partners can
_
business purposes has produced an ever-increasing
number of collateralized lenders who offer boiler-plate
financing programs. To meet the financial needs of
business today, it will be difficult to provide sufficient
funds using traditional working capital financing,
which provides only advances against the client's ac­
counts receivables and inventories. In addition, the
competition for this type of business has intensified as
commercial banks with soft loan demands are begin­
ning to invade what was formerly the asset-based
lenders’ turf.
As the line between banks and asset-based lending
companies becomes less distinct, the principal chal­
lenge for the 1980’s will be increasingly to join forces
with commercial banks. This will require aggressive
Written especially for
and innovative financing programs, which will include
T he N orthw estern B ank er
broadening the types of collateral considered accep­
By ROBERT L. OLSON
table, more flexible repayment terms, and higher lev­
Senior Vice President
erage against the assets being financed. An assetBanco Financial Corporation
based lender is better equipped to perform the extensive pre-loan evaluation and the close supervision of
Minneapolis, Minn.
the recipient of the credit extended because of the pro­
cedures used in their programs. The end result is a su­
perior loss record due to more timely knowledge of a
borrower’s performance, which permits quicker identification of developing problems and prompt action to
three-and one-half million dollars. His terms were sim­
deal with them.
ple - cash.
Banco Financial Corporation believes strongly in
After receiving two offers from companies with sub­
working closely with banks in our lending practice; in
stantial financial resources that met both his price and
fact, over 75% of our loans have bank participations,
terms, the owner decided to give two of his sons a
one of the highest in the industry.
chance to buy the business. The sons had only a mod­
In the past, bankers tended to think according to
est amount to invest through their personal means.
rigid policies rather than to the customer’s needs. We
However, between their bank and Banco Financial Cor­
are finding that even in the hottest area of asset-based
poration, the funds needed to make the purchase and
lending—acquisition financing—banks have become
provide working capital were arranged.
more aggressive, flexible, and take an active role in the
By having a creative and imaginative combination
credit, rather than merely putting up their portion of
of banker and asset-based lender, the end result was
the money.
that the bank retained the customer, the company
Recently, a local bank and Banco Financial Corporastayed in the local community, and the father has three
tion did a management buy-out of a closely held cor­
and half million dollars before taxes.
poration engaged in the business of manufacturing and
It would be appropriate to note that the asset-based
marketing both O.E.M. and private label products for
lending industry has developed guidelines that have
the retail industry. The company was formed in the
served it well in the past, while keeping losses within
1940s and, at the time of the acquisition, was doing apacceptable limits, and has helped clients achieve need­
proximately twenty-million dollars in annual sales.
ed financing. Remember, a creative, secured lender
The sole owner had reached retirement age and priced
makes credit decisions only after evaluating all the
his company at a million dollars over the book value.
facts, and to do a great deal, all the guidelines cannot
This brought the total selling price for his stock to
always be followed.
□

^ the large corporation that had bought it a number of
years ago. When we put the loan package together, we
approached the company’s local bank and asked them to
participate in the credit, which the bank agreed to do.
That allowed the bank to retain the local banking rela^ tionship it had enjoyed, and, in addition, the local bank
was able to strengthen its ties because many banking
functions that formerly flowed out of the community due
to national stature of the former owner, now are handled
locally.
0
In another example, Associates last month committed
to extend a $7 million line of credit to a group of investors
led by a local bank owner that was re-opening a closeddown brass mill operation. The transaction involves the
entire town, as well as the efforts of state officials, union
# employees and the mill’s former management. Once this

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

Give business
the credit
it deserves

purchase is completed, re-opening of the 132-year-old mill
will save between 150 and 300 jobs at the facility...an ac­
tion that will have a significant impact on the local
economy.
Economic recovery, while expected to be modest for
the remainder of 1983, nonetheless will provide signifi­
cant opportunities for cooperation between bankers and
asset-based lenders. These opportunities come from a
recognition by industry that a window now exists to
begin previously deferred capital spending and re-tooling
programs designed to position itself to satisfy increased
future demand. The business leaders of the next decade
will emerge, but it will be up to all of us to identify them
and then to help them realize their dreams. Lenders with
insight will recognize and meet the financing challenge
that precedes that success.
□
Northwestern Banker, March, 1983

22

Selecting a Lending Partner
A

SSET based financing is currently in vogue. Vir­
tually all the money center banks have established
secured lending subsidiaries and many regional banks
also are getting into the secured lending business.
Some banks have elected — for a number of reasons —
to stay out of secured lending. However, this should
not prohibit them from participating in loans adminis­
tered by a competent asset based lender.
In today’s competitive lending environment, no
bank can afford to turn away qualified potential bor­
rowers. Participation with a secured lender may be the
means whereby that bank can maintain account rela­
tionships while spreading the risk on certain loans.
Equally important, the asset based lender finds parti­
cipating with banks highly beneficial. Participations
provide a way to “blend” down the interest rate charged
to its borrowers while maintaining relationships with
banks as potential future new business referral sour­
ces.
Situations When Partner Is Needed
Banks may wish to participate with asset based
lenders in the following situations:
1. The borrower’s leverage has increased due to in­
creased sales. As a result, the credit the bank is
willing to extend is inadequate to fund the bor­
rower’s production and inventory requirements.
2. The deteriorating financial condition of a bor­
rower leads the bank to want to spread the risk
on the loan.
3. The borrower requires financing to accomodate
a leveraged buyout, but such financing would
create excessive leverage in the borrower.
4. The borrower requires significant seasonal loans
beyond the bank’s traditional lending guide­
lines.
5. The borrower requires inventory financing at
levels which make the bank uncomfortable.
6. The borrower’s needs exceed the bank’s legal
lending limits.
The selection of an asset based lender is important
because an asset based lender can directly affect the
bank’s earnings. When a bank refers a credit to an as­
set based lender, the bank is essentially giving a proxy
to a third party to manage a portion of the bank’s
assets. When a bank “shops” for a secured lending par­
ticipant, it should be aware that the abilities and
philosophies of secured lenders vary.
The bank’s loan officer should visit the offices of the
asset based lender, meet its operating people and re­
view its operations. The operating people — not the
new business officer who calls on the bank — prevent
losses and maintain relationships.
Banker Should Ask These Questions
The banker should ask himself the following ques­
tions when evaluating an asset based lender as a pro­
spective participant:
DigitizedNorthwestern
for FRASER Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1. What are the abilities and experience of the
lender’s staff?
f
2. Can major credit decisions be made quickly?
Timeliness is often critical in putting together a
secured loan and responding to problem situa­
tions. The bank should inquire as to the length
of time needed by the secured lender to make £
credit decisions.
3. To what extent does the lender analyze paper­
work on an on-going basis?
Handling paperwork (e.g. reviewing invoices,

Written especially for
T he N orthw estern B ank er

By MICHAEL J. LITWIN
Vice President
Walter E. Heller & Company
Chicago, 111.

bills of lading, accounts receivable agings, in­
ventory reports) is very expensive for the se­
cured lender. However, this increased analysis
means a better understanding of the collateral
which, in turn, improves the security of the loan.
4. Does the lending philosophy of the asset based
lender coincide with that of the bank?
I t’s important that the bank and asset based
lender agree on what steps should be taken
under different sets of circumstances. For exam­
ple, if the borrower is growing and profitable,
will the lenders agree to make occasional overad­
vances to support the borrower’s growth, or, if
the borrower fails, will the lenders agree on a
program to be implemented to work out of the
loan?
5. Does the asset based lender have the expertise
to analyze and administer inventory loans pro­
perly?
The secured lender should have people who have
experience in analyzing, evaluating and, if re­
quired, liquidating inventories. Loss rates on in­
ventory financing are higher than on receivable
financing. Inventory loans shouldn’t be treated
as “step-children” by the asset based lender.
6 . How experienced is the secured lender in dealing
with bankruptcy and liquidations?
Secured lenders vary in their ability to suc­
cessfully identify a problem and — if necessary
— work out of a loan. Obviously, the bank
should participate with those asset based
SELECTING A LENDING PARTNER...
(Turn to page 23, please)

£

£

#

•

•

®

9

Farm fin an ce le a s in g ...
(Continued from page 17)

the lessor in the open market. With the fixed purchase
option, the lessor may get the equipment back at lease
termination, which he can then sell. Or, the lessee will
exercise his purchase option, and both upside potential
and downside risk for the lessor are dissolved. For bet­
ter or worse, yields are fixed in the latter case.
Advantages to Lessee
This new farm finance lease was created by Con­
gress, not by the new product department of the leas­
ing industry. It gives lessors the tax benefits (ITC and
depreciation) created by the equipment acquisition. In
exchange for those benefits, which farmers often either
don’t now need, due to low income or can’t use because
of excess tax shelter already accumulated, the lessee
gets:
1. A low equivalent interest cost.
2. He reduces his cash flow going out.
3. Further, the lessee has the option of returning the
equipment at lease termination, which is a feature the
loan doesn’t offer. If the lessee feels he will want to ex­
ercise the purchase option, he knows exactly what his
total cost will be to acquire the equipment.
Bankers Viewpoint
Whether a lessor or not, a farmer’s banker should
take a close look at the farm finance lease. It should
not be viewed as competition for a bank’s lending de­
partment but as a means of helping a customer develop
the most effective finance mix for himself. Considering
the economic times as well as the increasingly complex
financial world, the farmer can use help in financial
planning and certainly needs it more than ever. He
doesn’t have departments full of treasurers, accoun­
tants, and financial analysts studying new techniques
and building optimization models. He hopefully has a
banker who can and is willing to keep up with the
changing financial environment and evaluate all op­
tions available to his or her customer...even if the bank
can’t provide all of the options itself.
The banker/financial advisor needs to understand
the farm finance lease, know how to evaluate it for a
particular farm operation, and realize that he or she
may have to sell the concept to the customer. Why
should a farmer accumulate excess ITC when it’s cash
flow that is critical? Why should he worry about own­
ing equipment when the primary value is in using it?
These questions involve some strong traditional per­
ceptions on the farm that must be addressed using
facts and some persistance.
How Bank Can Be Involved
Looking back on this article, I ’m reminded that leas­
ing is a complicated subject that legislation has made
even more so over the past two years by, directly or in­
directly, introducing ERTA, safe harbor, TBT’s,
TEFRA, modified safe harbor, transitional guidelines,
etc. I t ’s easy for me to suggest that bankers learn all
about leasing. However, I can suggest how this can be
done so that a bank can get involved in leasing without

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

dedicating new staff, buying computer capability, hir­
ing outside leasing professionals, and without much of
the potential risk. Several leasing companies, some of
which are bank subsidiaries, are establishing various
types of programs that assist banks in getting involved
in leasing.
For example, the Financial Services Department at
Lease Northwest was developed in late 1981 to act as
agent for banks in pricing, structuring, documenting,
and fully administering lease transactions, to include
accounting and tax advice. These transactions can be
generated by the bank itself, or they can be supplied to
the bank as investment opportunities by companies
like ours. After-tax yields to the bank are typically
higher than those for municipal bonds, largely due to
the investment tax credit. The key for the bank/investor is the credit decision regarding the lessee.
Viable Financing Tool
The farm finance lease is well suited to the agricul­
ture industry today. It gives the farmer a very viable
financing tool. The farm equipment manufacturers are
likely to see its impact on their sales. Banks can
benefit by introducing their customers to the lease
alternative and, perhaps through cooperation with a
leasing company, providing the leasing service itself.
Moreover, in and of itself, the lease is a high-yield asset
that can outperform other investment opportunities of
comparable or higher risk. Give it a try!
□

Selecting a lending partner...
(Continued from page 22 )
lenders with the best track records in resolving
problem situations.
7. How are legal issues resolved?
Some asset based lenders use attorneys who are
aware of many of the business problems faced
by a lender in documenting or working out of a
loan. I t ’s important that the secured lender use
attorneys who are looking for ways to do a tran­
saction rather than looking for legal reasons not
to do it.
8 . What interest rates are charged by the asset
based lender?
Typically, asset based lenders’ rates vary from
2%-5% over prime. Of course, you want to pro­
vide your customer with the best rate. However,
rate should be the deciding point only when the
preceding questions have been answered satis­
factorily.
Conclusion
Asset based loan lending can be an important option
when structuring an unusual loan. If your bank elects
not to develop its own secured lending capability, par­
ticipations are an attractive alternative. The key, of
course, is selection of a lending partner based on
thoughtful evaluation.
□
Northwestern Banker, March, 1983

24

Community bank
executives discuss
investm ent planning
An Exclusive Northwestern Banker Survey
be with us for years, we will factor them into our entire
investment and loan portfolios and integrate them into
our total cost of funds analysis.
£ í I NVESTMENT planning for 1983 doesn’t get any
Mr. Burke: We have a large share of our loans (com­
I easier...the need for effective investment planning
mercial, agriculture, instalment) on a variable rate of
has never been greater. ’’ That seemingly resigned, yet
interest tied to BankWest, N.A. base rate. This base
determined comment came from the president of a
rate
is established by monitoring our cost of funds
$100 million asset bank in a county seat town of 8,500
closely. We know the cost weekly so we are able to
persons. It was part of his reponse to questions in a
maintain a spread as we can change the rate of interest
special survey on “Community Bank Investment Plan­
charged because of our variable rate.
ning” made last month by the N orthw estern B anker
Mr. Frei: Loans.
among several selected bank executives in it readerMr. Buxton: With more funds earning interest and
ship area.
at higher rates, there is no way to maintain former
Those interviewed were asked questions dealing
spreads through investments. More loans and at vari­
with maintaining spread, maturities of planned pur­
able rates is the solution. However, the prospect of
chases, municipal holdings and planned purchases, as
substantial loan growth is currently limited.
well as how they view their investment planning task.
Mr. Prochaska: There will be a slight extension of
Six executive officers took part in this special study.
assets
as opposed to the short, interest-bearing de­
One participant was Wm. P. Ronan, president of
posits. It is essential to monitor the asset maturities in
Decorah State Bank, a $70 million deposit bank in the
the event of rates moving up. Certain growth factors
northeast Iowa county seat town of Decorah, popula­
must
be controlled to retain a satisfactory margin. In­
tion 7,400. Mr. Ronan is a respected 50-year banker
ternal rate controls will be necessary to satisfy a
who is considered by his peers in both large and com­
balance between assets and liabilities.
munity banks to be one of the state’s most astute in­
f \ What maturity range do you plan to purvestment bankers. Mr. Ronan wrote his responses to
■ £mm chase in the next three months?
the survey questions in a special article that appears
Mr. Olson said he would purchase U.S. Treasury and
on the opposite page.
Agency bonds in the 1-3 years range and municipals in
The other five executive officers who took part in
the over 5 years range. Mr. Burke and Mr. Frei indi­
this special report are listed below, along with the
cated they will confine their purchases to the 1-3 range.
deposit size of their bank and population of community:
Mr. Buxton stated likewise but also added purchases
Marty Olson, president, Farmers State Bank of Con­
in 1 year or less and 1-3 years range, as well as 3-5
rad, Conrad, Mont. Dep.: $48,000,000. Pop.: 3,100.
years range.
Charles H. Burke, president, BankWest, N.A.,
Pierre, S.D. Dep.: $86,000,000. Pop.: 12,000.
O Compared to one year ago, are your Fed
Q
Robert H. Frei, chairman, Commercial State Bank,
■ O ■ Funds more, less, the same?
Wagner, S.D. Dep.: $40,000,000. Pop.: 1,500.
Mr. Olson and Mr. Burke reported “same.” Mr. Frei
Richard W. Buxton, president, Peoples Trust & Sav­
reported “more.” Mr. Buxton and Mr. Prochaska re­
ings Bank, Indianola, la. Dep.: $95,000,000. Pop.: 8,500.
ported “less.”
George Prochaska, chairman, First National Bank &
A Are you extending your maturities overall
Trust Company, Columbus, Nebr. Dep.: $128,000,000.
■
m at this time and/or do you plan to do so in
Pop.: 15,000.
the next few months?
The survey questions and responses from these five
Mr. Buxton responded “Yes,” while the other four
participants follow:
said “No.”
>| In view of the new market-rate instruCompared to one year ago, are your
■ I ■ ments available to customers in banks,
municipal holdings greater, less or the
how do you plan to maintain the spread between the
same?
cost of these funds and a satisfactory return in the
Mr. Olson reported “greater.” Mr. Burke and Mr.
next few months?
Frei reported “same.” Mr. Buxton and Mr. Prochaska
Mr. Olson: By proper pricing of the product and
reported “less.”
establishing a realistic rate. We do not plan to use any
INVESTMENT SURVEY...
one certain type of investment vehicle to offset the
cost of these funds. Since these types of accounts will
(Turn to page 31, please)

Q

Q

Q


Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Q. 5.

•
•

How w e m an age our
bank’s $ 2 0 m illion
in v estm en t portfolio
Written especially for
T he N orthw estern B ank er

By WM. P. RONAN
President, Decorah State Bank
Decorah, la.

•

•

•

•

®

®

||

H

•

•

O IX years ago we changed our investment policy in
W this bank to provide for shorter maturities. Now, in
gazing in panoramic retrospect, we feel we were at least
partially correct. We were fortunate, in that when we
needed liquidity, we either had bonds coming due or did
not suffer any depreciation in the ones we still possessed.
We have a fluctuating $20 to $21 million investment
account, of which $7 million are governments, $1.25
million are agencies, and other Commercial Paper, as
well as C.D.s, totaling around $2,200,000. We also
carry about $10.75 million of Municipal Bonds. Our
total average maturity as of this writing would be two
years and five months, and a few months ago we
started lengthening our maturities.
This leaves us in excellent shape for funds, particularly in these uncertain, troublesome times. We
have coming due, both in Governments and Munici­
pals, about $8.75 million with a one-month to one-year
maturity; about $11.5 million in one-year to five-year
maturity; about $1.25 million in five-to-ten year
maturity, and about $50,000 in 10 to 20 years. Also, we
have a very few from twenty and somewhat beyond.
The last two descriptive items are bonds that have put
situations connected with them, which, as we have
been advised, are collectible on any interest-paying
date after a certain maturity. Of course, this is much
closer-in than the maturity date.
Prefer Small Locality Bonds
I might also state that in our municipal bond purchases, most bonds are rated A with a few B, AA, and
about $2.25 million bonds are non-rated bonds. We
found that we have had the best luck, money-wise,
with them. The rates are slightly larger, and we prefer
to purchase them out of a small locality such as those
that need a new school or a new hospital, or an addition
to their water works or sewage facilities.
In the smaller localities, we do not have the worry of
having the population increasing and taxes being raised
to extend municipal or school facilities. We also like to
have those particular non-rated bonds be in school dis­
tricts that possess a lot of land. For example, Minne­
sota farmers, whose land covers most of these bonds,
seem to have the ability to have a very excellent taxpaying desire.
The new money market rate instruments, which are


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

25
now available, will present more of a problem for banks
such as ours, as we will have to be able to maintain the
spread between the cost of these funds, and then be
able to get a return for our banks. We do use an Apple
computer, and it has been a great help for us in deter­
mining what we feel are satisfactory figures. We also
use the Shesunhoff spread, which is somewhat com­
parable to the spread that we use.
Planned Maturity Ranges
In answer to what maturity range we plan to pur­
chase within the next three months, I would say that
we probably will now start to go from three to five
years, with five years being the extreme. Anything
over five years would have to have a put situation con­
nected with it.
As to our Fed Funds compared to one year ago, I
would say we are getting much less for Fed Funds now
than we did then. I think we have more invested in Fed
Funds than ever before, thus providing us with liquidi­
ty in the event that interest rates go up in the next
three months, which I am anticipating. I am also hop­
ing I am wrong, but I feel this will be the eventuality.
We are not extending our maturities very much at
this time; probably a year to not over two years. Our
municipal holdings compared to a year ago are down
considerably; in fact, down about $3 million dollars. As
to what we will do in 1983, I would estimate we will
simply replace the ones that are running off.
Investment Planning for 1983
You ask how I view the investment planning task
for 1983 in view of the economic, political, and de-regulatory climate. I would say that the key to 1983 will
be money — domestic money as in Ml or M 2, and in­
ternational money as in the multi-billion dollar loans to
developing countries. These worry me, as it could come
to the point where every single bank in this country
might have to contribute towards the payment of
those delinquent debts in order to maintain world
financial stability, thus and thereby, restraining the
growth of communism or socialism.
If money, (or more credit, should I say) which is what
we sell in banks, becomes or is perceived to become too
widely available, then in my opinion the inflationary
fears or fuels which are still smoldering will be reignited.
Economic recovery must be real, and not imagined,
during 1983, or all markets will reverse to the down
side. Right now, for an increasing number of indicators,
the markets are pointing upward, In fact, 1983 could be
potentially explosive. One of the conditions required for
this would be low and nominal interest rates. Without
interest rates, additional long-term declines will occur,
and a sustained economic recovery will be jeopardized
because the real interest rates — the difference between
the current rates and the inflationary rate — will stay
too high.
I don’t think anything will be more influential than
the 90-day T-Bill rate. Assuming all other fundamentals
will be important during the year, then I think if that
90-day T-Bill rate stays down or falls further, markets
will rise.
If not, then the recovery cannot occur and prices will
continue to decline. I would expect this rate to vary be­
tween 7% and 9V&% during 1983, and inching higher as
the year progresses.
Q
Northwestern Banker, March, 1983

26
tionet system. Once on-line, member
networks pay no additional fees.
Telecom m unications costs are
shared equally among the members.
Nationet and its members derive
income from a 70<t-per-transaction
charge. The network authorizing the
transaction—that is, the network
with which the customer’s bank par­
ticipates—pays the charge. From
that 70$ charge, 55$ per transaction
is paid to the network performing
the cash transaction, and 15$ goes
to Nationet to cover operating costs.
Mr. Wolfson, who is also Nationet’s
director of marketing, said each
member network has the freedom to
develop its own policy on disbursal
tionet in April are ITS, Inc., Des of income from Nationet transac­
Moines, la.; TYME Corporation, tions. He added that Nationet will
Milwaukee, Wis.; MetroTeller Sys­ institute a $500 minimum monthly
tems Incorporated, Buffalo, N.Y.; transaction fee in April, 1984, but
Instant Teller, Los Angeles, Cal., anticipates no additional fee assess­
and The Exchange System, Belle­ ments over the next three years.
vue, Wash.
First Nationwide System
Mr. Martin, who is also chairman
of Nationet, is executive director of
Anacomp, Inc. of Indianapolis
TYME. Other Nationet officers are: has been awarded the contract as
Vice President—Joseph W. Wolf- Nationet’s computer service pro­
son, president of MetroTeller, Buf­ vider. Each network will be tied into
falo, N.Y.; Secretary—Michael E. the national service center, effecting
McEvoy, president, Magic Line, instant funds transfer 24 hours a
Inc., Detroit, Mich., and Treasur­ day. Installations for the computer
er-D ale A. Dooley, president of hardware in Indianapolis was com­
ITS, Inc., Des Moines, la.
pleted last year in preparation for
A participating Nationet financial this spring’s start-up.
institution need only provide its
Nationet will become the first ac­
customer with a proprietary bank­ tive nationwide transaction system.
ing card, Mr. Martin noted. The Both Cirrus and Plus proprietary
banking cards are magnetically networks have announced their in­
keyed for access through any of Na­ tentions to activate national switchtionet’s member systems. “Technol­ ing this year, but neither is expected
ogy to make a national funds trans­ to begin operating before late sum­
fer system possible is readily avail­ mer or fall. Cirrus, with its switch
able,” he stated. “We feel it’s only a operated by National Bank of De­
matter of time before consumers will troit, includes Northwest Bancordemand it as part of their regular poration of Minneapolis. Plus Sys­
banking service.”
tem, headquartered in Denver, and
Mr. Martin states that Nationet founded by Colorado National Bank,
additionally offers financial institu­ has First Bank System of Minne­
tions an important capability: “All apolis and First National Bank of
federally insured depository institu­ Omaha as participating banks.
tions now can offer their customers
In the Beginning
a national distribution system capa­
Bankers in Nebraska and Iowa
ble of competing with exclusive pro­ were among the earliest few leaders
prietary systems offered some in development of EFTS. Nebraska
banks and near-banks. The front-end formed its original NETS right after
investment by a participating in­ a Lincoln savings and loan startled
stitution is relatively low.”
the banking world by placing trans­
Fees Are Listed
action terminals in some retail
To become a member of Nationet, stores there. Within weeks, Iowa
each network must purchase a share Bankers Association formed ITS
of stock, currently selling for $5,000 . and the two systems worked to es­
The equity member then pays a tablish a means of across-state-lines
$25,000 participation fee for the switching. Justice Department and
privilege of linking up with the Na­ technical problems inpeded that

A new star is born...

•

®

Nationet!
ROM the seed of an idea sown
F
just over two years ago when
two EFT executives met informally,
a nationwide electronic banking net­
work has been born—appropriately
christened Nationet, Inc.
This network of 12 independent
regional electronic funds transfer
systems has formed a national
switch network that will give con­
sumers cash access to their home­
town bank accounts through more
than 4,600 terminals located in 27
states ranging from New York to
California, and from Florida to
Washington State.
James H. Martin, Nationet presi­
dent, said the new network will ef­
fectively serve more than half the
U.S. population. The 12 individual
networks have enlisted more than
3,000 participating financial institu­
tions covering nearly every major
U.S. population center.
Nationet Has Advantage
One of Nationet’s big advantages
over other systems that have an­
nounced plans to initiate such a na­
tionwide network is that its par­
ticipating regional EFTS networks
already have in place their computer
hardware and software systems, as
well as access terminals. These
member networks already are using
three different access outlets: auto­
mated teller machines, in-store
banking facilities, and point-of-sale
terminals. As a result, five of the
networks are scheduled to link up
with Nationet next month (April).
The remaining eight networks will
tie in before year-end, Mr. Martin
said. (Accompanying table shows all
12 regionals, number of partici­
pants, ATMs, POS units and total
terminals planned by June, 1983).
The five regionals who will inter­
change transactions through NaNorthwestern
Banker, March, 1983

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

®

®

^
9

®

_
9

^

£

£

£

•

®

•

move at the time. Iowa proceeded
with its statewide network, based on
a newly-elected state law mandating
shared terminals, and for several
years was the only statewide switch
operating in the nation.
Soon after the formative stage,
ITS leaders hired Dale A. Dooley, an
experienced data processing and
computer executive to manage their

system. Under Mr. Dooley’s direc­
tion, ITS soon achieved national
stature, moving quickly to a state­
wide posture. Later, through corre­
spondent service arrangem ents,
several banks in South Dakota went
on-line with ITS for cash withdrawal
at their local ATMs. A year ago, Mr.
Dooley completed a contract with
Omaha National Bank to become a

data processing center with ITS,
thus tieing in Nebraska’s largest
bank, its ATMs and those of any
other banks its computer depart­
ment served in an on-line capacity.
True POS Initiated
One of ITS’ most notable ac­
complishments under Mr. Dooley’s

N A T IO N ET
NETWORK

STATES

NUMBER OF
NUMBER OF
NUMBER OF
AUTOMATIC
POINT OF
PARTICIPANTS______TELLER MACHINES SALE TERMINALS

TOTAL TERMINALS
(INCLUDING PLANNED)
BY JUNE, 1983

Electronic Funds Illinois, Inc.
One East Superior Street
Suite 306
Chicago, IL 60611

Illinois

100 Operating
602 Under
Contract

200

40

265

The Exchange
600-108th Avenue N.E.
Suite 914
Bellevue, WA 98004

Washington
Oregon
Idaho

82

188

0

240

First Financial Management Corporation
2695 Buford Highway N.E.
Atlanta, Georgia 30324

Georgia
Florida
Alabama

36

110

0

N/A

InstaNet Payment Systems
P.O. Box 70210-T
Cleveland, OH 44190

Indiana
Kentucky
Ohio
West Virginia

59

334

191

525

Instant Teller
City National Bank
1801 W. Olympic Blvd.
Los Angeles, CA 90006

California
Arizona
Washington
Oregon
Nevada

96 Operating
128 Under
Contract

268

0

326

ITS, Incorporated
508-10th Street
Suite 200
Des Moines, IA 50308

Iowa
South Dakota
Nebraska

185 Operating
783 Under
Contract

29 Point of
Sale
27 Point of
Business

424

MAGIC LINE, Inc.
1025 Shelby
Detroit, Ml 48226

Michigan

187

832 ATM
372 Teller Service

0

1379

Metroteller Systems Incorporated
237 Main Street
Buffalo, NY 14203

New York
Maryland
Rhode Island
West Virginia
Florida
Texas
Michigan

41

20

350

450

MONEYCARD of Kansas, Inc.
P.O. Box 55
Wichita, KS 67201

Kansas

50

45

0

60

NETS, Incorporated
National Bank of Commerce
P.O. Box 82408
Lincoln, NE 68501

Nebraska

107 Operating
199 Under
Contract

205

45

275

The Treasurer
P.O. Box 232
New Brunswick, Nj 08903

New Jersey
Pennsylvania
Delaware

22

82

0

300

Tyme Corporation
8989 North Deerwood Drive
Brown Deer, Wl 53223

Wisconsin
Michigan

389

419

11

452


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

347
4 Cash Dispensing

Northwestern Banker, March, 1983

28

The Treasurer
Metroteller Systems Incorporated
InstaNet Payment Systems
Instant Teller
First Financial Management Corporation
MAGIC LINE Inc.
Electronic Funds Illinois, Inc.
MONEYCARD of Kansas, Inc.
NETS, Incorporated

Tyme Corporation
ITS, Incorporated

leadership was the introduction in
September, 1981, of the nation’s
first true electronic point-of-sale
system. Mr. Dooley worked out the
hardware details with NCR Corp.,
which then installed specially de­
signed card swipe devices for cus­
tomers use at supermarket checkout
counters in stores of two major
grocery chains in Des Moines. That
pilot was completed recently and ex­
ecutives of both stores recently gave
positive reports on the results
(separate story in Iowa section of
this issue). Both executives also said
they plan to install similar POS
units in all the rest of the stores in
their chains.
In addition, NCR is now ready to
market its POS hardware nation­
wide. This equipment ties in directly
with each checkout clerk’s NCR elec­
tronic cash register. Those registers,
in turn, are tied to the store’s small
computer into which the prices for
all items in the store are filed. That
computer now is on-line with the
ITS switch. After the clerk gets a
purchase total on the cash register,
the customer activates the transac­
tion through the card swipe. The im­
pulse carries the register total
through the store computer into the
ITS switch, which routes it to the
customer’s account at the card-is­
suing bank. The response speeds
back via the same route to the
clerks’ station, activates the cash
register (if transaction is good) and
completes the sale. The entire trans­
action is completed in seven sec­
onds, which is far less than a check
cashing transaction, and is frequent­

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ly less than a cash transaction.
The POS units used in the Des
Moines pilot project are considered
“true” POS since the customer ac­
tivates the transaction and the card
never leaves his or her hands. Other
POS units presently in use else­
where require clerk handling or
other intervening steps that do not
result in a one-step activation of the
electronic impulse.
An Idea Takes Form
While that concept was under de­
velopment between ITS and NCR’s
Des Moines branch office manager,
Mr. Dooley and Mr. Wolfson (of Buf­
falo’s Metroteller) visited in late
1980 after they finished addressing
a bank conference. “We discussed
the feasibility of a national system
to allow regional systems to inter­
change transactions,” Mr. Dooley
recalls. “We agreed to meet in New
York in February (1981) during the
NACHA conference. (Mr. Dooley
also is responsible for Iowa’s ACH,
which was the only one in the coun­
try to have every bank in the state
as a member). After we discussed
the idea in New York at greater
length, we decided to invite certain
switch executives to meet in New
Orleans in June and pursue it in
greater depth during the ABA Oper­
ations/ Automation Conference. The
other three present at that New Or­
leans meeting were James Martin of
TYME, Micahel Miller of EFI (Chi­
cago) and Richard Barrett of The
Treasurer (New Brunswick, N.J.).
“We met in New Orleans and de­
cided to form a Regional Inter­

change working group. That was the
first such announcement of any na­
tionwide group to formulate a na­
tional exchange, other than the two
bank card systems. By February,
1982, we formally organized as the
Regional Interchange Association,
Inc.”
Initially conceived as an experi­
ment among the regional indepen­
dent EFTS networks, RIA represented switch organizations with
presence in 13 states. In less than 12
months the membership grew to its
present 12 members with distribu­
tion in 27 states. This growth accelerated plans for completion of the
national switch, according to Mr.
Martin, who added, “We are, in fact,
no longer regional. We are a nation­
wide network...Nationet.”
As president of Nationet, Mr.
Martin brings a wealth of EFTS ex­
perience to his new task. He has
been active in electronic banking
since the early seventies. He joined
TYME in 1980 as assistant execu­
tive director and was appointed its
executive director in 1981. Prior to
that, he was director of data process­
ing for Wisconsin’s Affiliated Bank
of Madison, where he was respon­
sible for EDP needs of the holding
company and 55 correspondent
banks. Before his move to Wiscon­
sin, Mr. M artin held several
management positions with Elec­
tronic Data Systems in Dallas, Tex.
Nationet Preserves Competition
Nationet and its member networks offer switch capability to
banks and financial institutions on a
non-exclusive basis. The corpora­
tion’s infrastructure is neutrally
designed to preserve competition
among participating institutions,
while responding to the financial ser­
vice needs of its customers, Mr.
Martin said.
To become a Nationet member,
each regional EFTS network must
be owned or controlled by an insured
financial depository institution.
Each must offer on-line capability,
and each must have the capability of
sharing its terminals among a var­
iety of banks and thrift institutions.
Mr. Martin sees the new national
switch expanding to serve all markets in the contintental U.S. over
the next few years. Expansion will
occur through growth of existing
Nationet member networks, and
through recruitment of several new
networks, he stated.
□

^

£

9

0

0

#

#

•

®

^
9

^

q

0

0

29

LEFT—Newly elected WBA Group 1 Officers—Secy./Treas.—Larry Schleusner, pres., 1st Amer. Bk., Colfax; Vice Pres.—Glen Johnson,
pres., 1st Bk., Grantsburg; Pres. —Ken Heiser, pres., 1st Nat’l. Bk., Hudson, and Past Pres.—Duaine Espegard, pres., Union St. Bk., Amery.
RIGHT—Dick Bibler, exec, v.p., 1st Wise., Milwaukee; Willard Ogren, pres., Security St. Bk., Port Wing; Roger Leonard, pres., Brill St. Bk.,
and Jack Menard, v.p., 1st Wise., Milwaukee.

LEFT—Paul Eckblad, a.v.p., Am. Nat’l., St. Paul; Larry Schleusner, pres., 1st Amer. Bk., Colfax; Wayne Fehr, v.p.,Union St. Bk., Amery, and
Bob Jacobson, v.p., Amer. Nat’l., St. Paul. RIGHT—Panel discussion members included Duaine Espegard; Chris Callen, v.p., 1st Wise.
Natl. Bk., Milwaukee; Bill Naryka, Bremer Service Co., and Bruce Soma, a.v.p., 1st Nat’l. Bk., St. Paul.

Group 1 Wisconsin Bankers Hold Annual Meeting
•

•

^

•

m
9

^
w

^

By STEVE BURCH
Assistant Publisher
HE Group 1 bankers of the Wis­
T
consin Bankers Association held
their 79th annual meeting in Min­
neapolis last month. Highlighting
the business activities was the elec­
tion of officers for the 1983-84 year.
The newly elected officers are: Pres­
ident-K en Heiser, president, First
National Bank, Hudson; Vice President—Glen Johnson, president,
First Bank of Grantsburg, and Sec­
retary-Treasurer—Larry Schleus­
ner, president, First American
Bank, Colfax.
WBA Executive Director Bryan
Koontz, just returning from the
American Bankers Association
Leadership Conference, offered the
bankers an update on the status of
withholding at source legislation.
He reported that Senator Proxmire
had recently received 15,000 letters
in one day from Wisconsin citizens
opposed to the legislation. He added
that unfortunately the campaign
has turned into an ego battle for
Senator Bob Dole of Kansas who
has pitted himself against the banking industry. Threatening the bank­
ers with increased taxes, Senator


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

Dole told the bankers that unless
they backed off their opposition, he
would become a “lifetime enemy” of
the banking industry. (The banking
leaders voted 403-0 to continue with
the lobbying efforts.)
Turning to local legislative pro­
posals, Mr. Koontz reported that the
WBA will oppose any legislation

U \//
Bryan Koontz, exec, dir., WBA, reports on
recent ABA Leadership session.

that would allow contiguous state
ownership of Wisconsin banks. He
said that the mega-banks in surroun­
ding states are trying to get a jump
on interstate banking and the Wis­
consin bankers do not feel that this
is in their best interest. He also up­
dated the bankers on the state’s
debt to the federal government un­
employment compensation fund.
The current $400 million will grow
to a $700 million debt by year-end,
for which the state is paying 10% in­
terest. He urged the bankers to form
an alliance with the insurance and
small business industries to combat
flat tax proposals by the state’s
large manufacturing interests. Us­
ing a flat tax to pay off the debt
penalizes the companies who have
maintained a stable employment
base during the past years.
The business session was brought
to a close with a panel discussion
that looked into a variety of topics
including indexing and managing
variable rate mortgage loans. Panel
members were: Chris Callen, v.p.,
First Wisconsin National Bank of
Milwaukee; Bill Naryka, Bremer
Service Co., and Bruce Soma, assis­
tant vice president, First National
Bank, St. Paul.
□
Northwestern Banker, March, 1983

30

Texan Robert L. Mason receives a certificate and gold watch from LeFebure Executive Vice
President George X. Miller (far left) to commemorate his pending retirement as manager of
the Dallas region. Also honored at the company’s annual awards banquet were Frank R.
Volesky (second from left) who retired as manager of the Cedar Rapids regional office, and
Jerry Rudrauff (far right), retiring manager of the San Francisco region.

LeFebure Honors 5 Regional Managers
IVE regional managers were
honored at a recent awards ban­
F
quet hosted by LeFebure, a major

was presented a certificate and
watch by Executive Vice President
George X. Miller.
Mr. Mason also was feted because
his Dallas region achieved the
greatest 1982 sales growth in the
western third of the country. Hon­
ored for central division was Elvin
Hanson, manager of Milwaukee.
Leading the central division was
Lawrence A. Brown, Atlanta man­
ager. A check was presented to each
by Mylo D. Schultz, vice president
-sales and marketing.

members participating in the 1982
IBAA/Barclay’s VISA travelers
cheque program, the Association an­
nounced last month.
IBAA Executive Director Ken­
neth Guenther said total travelers’
cheque sales under the program,
which was inaugurated in the spring
of 1982, were in excess of $58 mil­
lion. More than 1000 IBAA member
banks are now participating in this
innovative program, through which
banks share in the travelers’ cheque
float revenue, in some cases far in
excess of dues.
Community banks receiving the
largest checks were the Community
State Bank of Bloomington, Minn.
($6,361), the Richfield Bank & Trust
of Richfield, Minn. (3,673), and New
York’s Long Island Trust Company
($3,601).
Mr. Guenther urged all eligible
banks to sign up before April 15 to
take full advantage of the original
generous revenue-sharing program.

manufacturer of banking equipment
and security systems headquartered
in Cedar Rapids, la.
Attended by 30 managers from all
parts of the country and members of
BAI Names Exec. V.P.
the home office, the banquet cli­
James R. Pastorello has been
maxed a four-day annual sales meet­
named executive vice president for
ing, celebrated record 1982 sales,
education at Bank Administration
and honored managers who retired
Institute, Rolling Meadows, 111.
in 1982 and those who made out­
Prior to his recent appointment,
standing contributions to sales.
Mr. Pastorello had been the In­
Retiress included Frank R. Voles­
stitute’s director of professional
ky, who managed the Cedar Rapids
development programs. Before join­
IBAA
VISA
T.C.
Program
regional office for 12 years; Jerry
ing BAI in 1979, he held various
Rudrauff, who was San Francisco Nets $300,000 for Banks
operations posts during a 13-year
manager since 1973, and Robert L.
Nearly $300,000 in float/handling career at Continental Illinois Na­
Mason, Dallas manager since 1972, fee payments went to Independent tional Bank & Trust Company, Chi­
who will retire later this year. Each Bankers Association of America cago.
—Our 63rd Year—
T H E CROP H A I L P R O T E C T IO N
FARM ERS PREFER

CALENDAR...
(Continued from page 6 )

STATEMENT OF CONDITION At C lose of Business Decem ber 31, 1982
ASSETS
U.S. G overnm ent B o n d s ...........................
O ther Bonds ...............................................
A ccrued Interest, e tc ..................................
Cash in Bank & Hom e O f f ic e ..................

$5,255,701.38
720,152.92
123,858.33
642,249.91

T otal A d m itte d A s s e ts .........................

$6,741,962.54

LIABILITIES
Reserve fo r Federal & S tate T a x e s ........................................
O ther L ia b ilit ie s .........................................................................

$

79,828.26
202,100.00

Total L ia b ilit ie s .....................................................................
Funds fo r P o licyh olde r P r o te c tio n ........................................

$ 281,928.26
$6,460,034.28
$6,742,962.54

S e c u ritie s carried at $399,888.00 in above s ta te m e n t are
dep osited w ith p u b lic a u th o ritie s as required by law.

SQUARE DEAL INSURANCE COMPANY
DES MOINES, IOWA 50308

l/ lij

f)

9 I fu tu a l

Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

June 5-10—NDBA North Dakota School of
Banking, Grand Forks.
Sept. 14-16—Independent Community
Banks of North Dakota Annual Conven­
tion, Kirkwood Motor Inn, Bismarck.
Sept. 26—NDBA Northeast Group Meeting.
Sept. 27—NDBA Northwest Group Meeting,
Rugby.
Sept. 28—NDBA Southwest Group Meeting,
Dickinson.
Sept. 29—NDBA Southeast Group Meeting,
Ellendale.
South Dakota:
Apr. 6-7—SDBA Ag Credit Conference,
Kings Inn, Pierre.
Apr. 20-21—Joint NDBA/SDBA Trust Con­
ference, Holiday Inn City Centre, Sioux
Falls.
May 16-17—SDBA Annual Convention, Con­
vention Center, Sioux Falls.
Wyoming:
June 16-18—WBA Annual Convention,
Jackson Lake Lodge, Moran.

31

# BMA Offers Top Professionals for
1983 Bank Advertising Conference
RIGINAL approaches for deal­
ing with advertising decisions
O
in today’s competitive, deregulated

•

•

®

®

environment will be featured at
Bank Marketing Association’s 1983
Advertising Conference. It will be
held March 27-30 at the Hyatt Re­
gency Hotel in Chicago, and is ex­
pected to attract hundreds of mar­
keting professionals from the finan­
cial industry.
John Kinsella’s keynote address,
“The Challenges for Bank Adver­
tisers.” will set the tone for the con­
ference. The two and one-half days
will offer bank marketers general sessions featuring top professionals, as
well as a series of concurrent ses­
sions, rap sessions and bonus ses­
sions. Mr. Kinsella, president and
CEO of Leo Burnett Company, Chicago, will be the first speaker on
Monday morning.

Another top ad agency executive,
Ronald G. Hoff, executive vice presi­
dent of Foote, Cone & Belding/Corporate, New York, will address the
Tuesday noon luncheon, and then at
the last general session on Wednes­
day morning, Robert E. (Buck) Bu­
chanan, executive vice president/
U.S. media director for J. Walter
Thompson Company, New York,
will lead off the final general session.
Following him will be Kent Stickler,
executive vice president of Financial
Shares Corporation, Chicago.
In between will be an assortment
of top professionals in fields related
to advertising, while the concurrent
sessions will enable representatives
from large banks and community
banks to meet with their peers.
Interested participants should
contact BMA at 309 West Washing­
ton St., Chicago.

Investment Survey
(Continued from page 24)
/* In 1983 will your municipal holdings in■ O b crease, decrease, be the same?
Mr. Buxton said “decrease,” while the other four
stated “same.”
"» How do your view your investment planQ
m I u ning task for 1983 in view of the economic,
political and deregulatory climate?
Mr. Olson: Uncertainties in the above three areas
will make investment planning both more difficult and
hazardous in 1983 than the previous year. With this at­
titude, we will probably maintain a greater degree of li­
quidity and stay with somewhat shorter maturities
than normal. Other than this we will basically adhere
to the same policies and philosophy that have proven
to be successful in the past. We will base our invest­
ment decisions on current conditions and information
available at the time and not let the unknown influence
or dictate our actions. Above all, we will not try to out­
guess the market.
Mr. Burke: Investment planning is more & more dif­
ficult because of all the uncertainties caused by the
economic and political climate. The deregulation does
not bother us that much. We do not want to extend our
investments beyond a year or two until the Congress
decides it wants to take some firm action toward con­
trol of the uncontrolled spending which creates the fan­
tastic yearly deficits.
Mr. Frei: It is our bank’s feeling that the economic
recovery is politically based. Lower interest rates have
not stimulated the economy or reduced government
spending. Our investment plan is to keep maturities in
the one to three year span for government and agencies
Q


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

S.W. Graduate School
Names C.C. Hope as Dean
The appointment of C.C. Hope,
Jr., as Dean for Bankers of the South­
western Graduate School of Bank­
ing at Southern Methodist Univer­
sity has been an­
nounced by Dr.
Alan B. Cole­
man, director of
SW GSB
and
president of The
Foundation of
SWGSB. Mr.
Hope, who is
vice chairman of
th e board of
First Union Na­
tional Bank of North Carolina and
executive vice president of First
Union Corporation, Charlotte, N.C.,
will serve as chairman of the
SWGSB advisory board as well as
the school’s Dean for Bankers dur­
ing his three-year term.
Mr. Hope is a member of the
board and past president of ABA.

and eight to ten years for our municipals.
Mr. Buxton: Investment planning for 1983 doesn’t
get any easier. With the opposing constraints of a
fragile recovery on the one hand and rapid monetary
growth on the other, the near-term outlook for interest
rates is as cloudy as ever. In addition, because of the
squeeze on spreads and soft loan deposit ratios, the
need for effective investment planning has never been
greater.
Mr. Prochaska: Management of bond portfolios
must use a more aggressive approach. An attitude of
riding bonds to maturity is unacceptable. One must
stay abreast of the market changes with consistency
each day. If you have an on-line environment fine - if
not, make calls.
Deregulation is a myth - the consistent inconsisten­
cies can lead one to a dilemma. Forget it.
□

Collateral Management...
(Continued from page 18)
one has the added comfort of third party collateral
management. This is especially true when looking at a
growth company, a company in a turn-around situa­
tion, or one having temporary tight cash flow problem.
No one needs to be reminded of the current economic
turmoil, many companies have gone out of business,
and many are struggling to survive. Lenders are more
concerned with the quality of the loan portfolio than
ever before, and the loan status relationship to the col­
lateral available in the event of default. No one likes to
look at the worst side of things, but it is only good
lending practice to make sure sufficient collateral is on
hand at all times to cover the outstanding loans. As ear­
lier stated in this discussion, the lender who uses a third
party such as our firm to insure the existence of the col­
lateral, is one step ahead of the average lender.
□
Northwestern Banker, March, 1983

Perhaps it’s happened to you.
Just when you had built up a
working relationship with your
correspondent banker, the
bank moved him up the corporate
ladder and off your business.
All too often, a large bank
can be insensitive to the needs of
small respondent banks. Yet
smaller banks that can give you
plenty of personal attention can’t
always give you the expertise
and the clout you need. And
you’re caught in the middle.
You do, however, have an
alternative: Midland National

Bank. We’re big enough to
handle any of your correspondent
banking needs. But we’re still
small enough to respond to your
individual concerns.
We’ve deliberately kept
our Correspondent Division
small, so that you can deal

M idland National^
BANK Of Minneapolis
M a in B a n k -4 0 1 2n d Ave. S.
G o v ’t C e n te r O ffic e -3 rd Ave. S. a t 6 th S t.
S t. Louis P a rk B ra n c h -3 6 0 1 P a rk C e n te r B ivd.
Member Federal Deposit Insurance Corporation

directly with a decision maker.
Each of our correspondent
bankers has from 12 to 25 years
of experience in the business,
so they thoroughly understand
the needs of respondent banks.
They take the time to personally
call on both the respondent bank
and the respondent’s customers.
If you’re tired of banks
that are too large or too small,
come to Midland Bank.
You’ll develop a close working
relationship with one of our
correspondent bankers. Not one
after another.

We’re big enough to know how and small enough to know you.


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

33
of Le Center, and to continue to
engage in operating a general in­
surance agency.

MBA Workshops To Be Held

•

•

•

•

O

O

II

Duluth Executive Named

New President Named

First National Bank of Duluth
has promoted Richard Williams to
executive vice president, announced
Dennis W. Dunne, president. Mr.
Williams, who
has been with
th e b an k 25
years, also will
continue in his
position as re­
gional vice presid e n t-h u m a n
re s o u rc e s for
Northwest Bancorporation.
R. WILLIAMS
In addition,
the following five people were
elected to officer status: Anne Ber­
gen, customer service; Thomas W.
Conklin, trust; Mary Ellen Crain,
operations; Claudia Russ, loans, and
Carlotta C. Willard, customer service.
Ms. Bergen will be supervising
the First National’s Denfeld Office.
Mr. Conklin has been promoted
from trust operations manager, a
position he has held for the past
year. Ms. Crain joined in 1976 as a
bookkeeper in operations. Ms. Russ
has served in both consumer and
commercial loans department of the
bank. Ms. Willard joined in July,
1982, as a sales representative with
five years experience.

Ray Marr has been named presi­
dent and chief
executive officer
of First National
Bank, D etro it
Lakes.
He succeeds
Don Aschbrenner, who has
been
nam ed
chairman of the
board.
R. MARR

Worthington Election Told
Cathy Adamec has been elected
assistant vice president of First Na­
tional Bank, Worthington.

Owatonna Promotes Two
Northwestern National Bank of
Owatonna has announced the pro­
motion of Jerald D. Lundgren to
assistant vice president and agricul­
tural representative, and the elec­
tion of James M. Mattern as human
resource officer.
Mr. Lundgren joined the bank
staff in 1979 and was elected ag loan
officer in 1980.
Mr. Mattern joined as personnel
manager in 1981.

Spring Grove Appoints One
Donald P. Jennings has been ap­

Wayzata Promotion Announced pointed assistant vice president at

•

®

®

®

Mark Luukkonen has been pro­ Onsgard State Bank, Spring Grove.
He joined the bank as a loan officer
moted to assis­
last September.
tant vice presi­
dent and cashier
of
W a y z a ta
Acquisitions Approved
Bank & Trust
The Federal Reserve System has
Company, Way­
approved the applications by Mahn­
zata.
omen Bancshares, Inc., Mahnomen,
Formerly at
to acquire First National Bank in
Citizens S tate
Mahnomen; Starbuck Bancshares,
B ank of B ig
Inc., to acquire The First National
Lake, Mr. Luuk­ M.LUUKKONEN
Bank of Starbuck and Olson In­
konen s ta rte d
with the bank in 1981 and has re­ surance Agency of Starbuck and Le
sponsibility as manager of several Center Financial Services, Inc., Le
Center, to acquire First State Bank
operations areas.


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

Three different workshops have
been lined up by the Minnesota
Bankers Association to be held in
March and April.
Managing Agricultural Problem
Loans, a one day workshop spon­
sored by the MBA Agricultural and
Rural Development Committee, will
be held Monday, March 21, at the
Holiday Inn, Alexandria; Tuesday,
March 22, Donovan’s Conference
Center, Redwood Falls, and Wednes­
day, March 23 at the Holiday Inn,
Owatonna. Each workshop will be­
gin with registration at 9:30 a.m.,
Workshop from 10:00 to 4:00 p.m.
with a morning and afternoon break
and noon lunch. Registration fee is
$60, which includes lunch, breaks
and extensive workshop materials.
Faculty for the workshop are Mich­
ael Boehlje, professor of economics
at Iowa State University, Ames,
Iowa, and James Hausauer, vice
president of the First American
Bank & Trust Co, Marshall.
Supervisory Training was offered
two different dates in February and
will be offered again Wednesday,
April 6 at Kandi Entertainment
Center, Willmar, and Thursday,
April 7 at the Holiday Inn, Owaton­
na. Registration will begin at 8:30
a.m and workshops will run from
9-12 and 1-5. Pat Coleman, president
of The Training Company, Inc., St.
Paul, will conduct the workshops.
Registration is $90, which includes
lunch, breaks and materials.
Loan Documentation and Anal­
ysis of Article 9 of the Uniform
Commercial Code will be offered
April 12, Holiday Inn, Alexandria;
April 13, Hilton Inn, Minneapolis,
and April 14, Holiday Inn, North
Mankato. Each workshop will begin
with registration at 9:00 a.m.,
workshop from 9:30-4:45 with a
noon-1:00 lunch. $90 registration fee
includes lunch, breaks and mater­
ials. John Moye, partner in the
Denver, Colo., law firm of Head,
Moye, Carver and Ray, and pro­
fessor of law at the University of
Denver College of Law, will conductthe workshop.
For more information on any of
these workshops contact the Min­
nesota Bankers Association at 332
Baker Building, Minneapolis, Minn.
55402.
Northwestern Banker, March, 1983

You can't afford to do without
Cash Management Services

In today's highly competitive
marketplace. Cash Management
Services aren't a luxury.
They're a necessity.
If you're looking to improve productivity
and increase profits, look to First Bank Saint Paul.
We can provide you with a wide range of
sophisticated Cash Management Services—
like FirstLink, Audio Balance Reporting, Account
Reconciliation, and End Point Analysis,
to name only a few.
Linkup with FirstLink through a dial-up
terminal located in your office. In seconds, you'll
learn everything from previous day account
balances, debits and credits, one- and two-day
float breakdowns, and current rates.
Lend an ear to our Audio Balance reporting
service. All it takes is a toll-free phone call
to rapidly obtain balance information on any of your
accounts. Day or night, around the clock.
Get friendly with our Account Reconciliation
service and you'll save valuable time for your

high-volume accounts. It not only sorts checks in
numerical order but also reports on the dollar
amount and date of all checks paid.
Better your bottom line with our End Point
Analysis. Find out how guickly your checks
are clearing. And be assured that we're continually
working on our availability schedule.
These are only four of First Bank Saint Paul's
Cash Management services. Any one—or all—
can help you to operate more efficiently. And, just as
important, they can benefit your commercial
customers, too. Because when you utilize our
services, you can offer them in turn to the
businesses you serve.
To find out more about how we can help you,
call (612) 291-6108 today.

4Ì||) First Bank Saint Paul
^ B r®

Member First Bank System
Cash Management
332 Minnesota Street
Saint Paul, Minnesota 55101


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

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

N ational
Bank of Minneapolis has an­
N
nounced plans to relocate the bank’s

consumer loans; J. William Moorse,
commercial loan officer, and Cindy
Christianson, auditor.
administrative offices and several
Mr. Kostka has been senior vice
other units including the downtown president since 1980, responsible for
branch’s consumer banking services the loan portfolio and assistance in
to 8th Street and Marquette Avenue the administration of the bank. He
early this spring. The bank will has been with the bank since 1968.
become a major tenant of what is
Mr. Haverkamp has been vice
referred to as the Baker Block, in­ president and comptroller since join­
cluding the Baker Building, Roa­ ing the bank staff in September,
noke Building, the 733 Marquette 1980.
Building (formerly the Multifoods
Mr. Biljan has been an instalment
Building) and the Peavey Building.
loan officer having been with the
The move of retail banking ser­ bank since 1972. Mr. Moorse came
vices to the new location was to Drovers in 1982, having pre­
necessitated by the Thanksgiving viously been a senior credit analyst
Day fire which severely damaged and examiner with the Bremer Ser­
the entire Northwestern Bank vice Company. Ms. Christianson
Building.
joined in 1981, previously with the
Customers will be able to use the state of Minnesota Department of
new banking facility about April 4. Commerce as a financial institutions
Teller services will be located on the examiner.
skyway level. Personal banking and
* * *
consumer lending officers will oc­
cupy the first floor of the Marquette
Elisabeth Reznicek, auditor since
Building along 8th Street along with 1981, has been
bond and trust staff who serve retail a d d i t i o n a l l y
customers. Private banking will be nam ed o p era­
on the second floor.
tions officer at
The move of other departments of American State
Northwestern, including the domes­ Bank of Bloom­
tic banking group, the trust and in­ ington.
vestment group and the executive
Mrs. Reznicek
offices, to the Baker Block should be joined the bank
complete by midsummer.
in 1976 as a
Plans to relocate the Elliot Park
ookkeeping
E. REZNICEK
branch to a new facility, which will bclerk,
an d w as
also provide new combined drive-in named bookkeeping supervisor in
service for all of Northwestern’s 1980.
downtown branches, were also an­
* * *
nounced.
* * *
Marquette National Bank has an­
Kenneth P. Nelson, president of nounced the following officer ap­
the Drovers First American Bank of pointments.
South St. Paul, has announced the
Douglas J. Winter, formerly assis­
officer promotions of: John P. Kos- tant vice president, was elected vice
tka, executive vice president, lend­ president. Mr. Winter joined the
ing; Michael D. Haverkamp, senior bank in 1965 as a teller, was elected
vice president, operations; Matthew accounting officer in 1978 and assis­
P. Biljan, assistant vice president, tant vice president in 1980.
o rth w estern

DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Jan E. Adamzak and Thomas D.
Frederick, formerly personal bank­
ing officers, were elected as assis­
tant vice presidents.
Charles S. Wall, formerly loan of­
ficer, was elected an assistant vice
president.
* * *
Gerald H. Thole has been ap­
pointed group credit officer-metro
affiliates for First Bank System
Inc. He has been associated with
FBS since 1973 when he joined First
Bank Merchants, St. Paul.
* * *
At Northwestern National Bank
of South St. Paul, Muriel R. Rose
has been promoted to vice president
and Clarice M. Sawatzke to assis­
tant vice president. Jeffrey R. Wentzel has been reassigned to the com­
mercial loan area as a commercial
banking officer. Roxanne E. Olson
has joined the bank staff as a credit
analyst.
Ms. Rose joined the bank in 1956
in the commercial loan area. Ms. Sa­
watzke, who had been a credit of­
ficer, will manage the Robert Street
Office. Mr. Wentzel joined the bank
in 1978. Ms. Olson, prior to joining
the bank, was a credit trainee at
Northwestern National Bank of
Hastings.
* * *
Fern Badzin
has been elected
to the board of
d ire c to rs
at
F ir s t
B ank
B lo o m in g to n
Lake. She is
p re s id e n t
of
E llio tt A u to
S u p p ly Com ­
pany Inc.
* * *

F. BADZIN

éSkí

»
i

r*
^ •*i
Y7 \.

V “N O BANKER CAN
5
FLY BY T H E
SEA T O F H IS PA N T S
A N Y M O R E .”
Pipestone, Minnesota, is a town of five thousand
where the natives wave &■ smile & say howdy to
perfect & imperfect strangers. The first time it
happens you check to see who’s behind you. In an
age when friendliness has become a diminishing
national resource, Pipestone stands out as a mini- JR
motherlode of amicability. An amiable attitude toward
others certainly animates the First National Bank of
Pipestone, founded in 1889. Its president is Bob Morgan,
44, who laughs easily & well and who looks much
younger than his years. He and his brother Steve own
the bank, which has assets o f $52 million and a
customer base o f4000. Morgan thinks a doubling of his
bank’s assets in 10 years is not an unreasonable
expectation. But this is possible, he says, only if the bank
keeps tabs on assets and liabilities. Early this year
Morgan called Northwestern National Bank of
Minneapolis to ask if it had a service to facilitate
v_ ... A this. The answer was yes. The service was called
' ^ C B M —Community Bank Model. Recently
;
Morgan spoke of his town, his bank and CBM.
Ours is a community bank. It’s
IÍNL:successful. As is the town. It has a work
force of 5700 and an unemployment
r. ' JgÉ&.l
rate of 4.7%.
We want to keep both bank &
i
town humming.
:
?
This is where this service from
Northwestern of Minneapolis comes
in. The Community Bank Model gives
‘^ u s an exact fix every month on our assets & liabilities.
It tells us how our loans are doing. Tells us
how our portfolio is doing. Tells us where we
are in relation to the month’s goals.
':r_It tells us how good our margin is in relation
to other community banks. It allows us to
project. It allows us to look back.
And because it’s a computerized service,

it allows us to ask questions. What if
m
we did this? How would it affect our ’V
ü
margin for the year, for five years?
CBM figures in all variables. It’s a tool.
We avoid trouble. We seize opportunities.
Even the incidental effects are good. We’ve been
successful because we’re efficient. We have a staff of
only 21. This service from Northwestern National
allows us to be even more efficient. Every officer knows
every month precisely where we are.
Between us, too many community banks don’t know
for sure where they stand until their tax men |
tell them. This is wrong. No banker can fly by A
the seat of his pants anymore. Interest rates ÉSË
are too volatile.
41
Could I duplicate the Community
Bank Model on my own? Sure. Only
it would cost me five times what it’s
costing now.
We went to Northwestern
National of Minneapolis once w
decided we needed something
like CBM because it’s been a 1
correspondent bank of ours
for 60 years. We know them.
We like them. We trust them.,
Heck, they’ve helped keep
us independent.
CALL SCOTT ULBRICH (612) 372-5967
CORRESPONDENT BANKING DEPARTMENT

Northwestern
National Bank

Of Minneapolis

SHOULDN’T WE TALK SOMETIME?


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

■A

mC-

38
Minnesota News
The following elections have been
announced at First Bank Security,
St. Paul: Craig
E. Vollhaber, to
the board; K.J.
Kay Berthiaume, assistant
vice president;
Sara M. Bran­
don, a ssista n t
retail manager
and m arketing
officer; Anne C.E. VOLLHABER
Price Lutz and

S.M. BRANDON

A.P. LUTZ

R.A. HOBAN

T.M. MITCH

Richard A. Hoban, commercial loan
officers, and Therese M. Mitch, as­
sistant operations officer.
Mr. Vollhaber is president of
Schwab-Vollhaber, Inc. Ms. Berthiaume, who joined in 1960, will
manage real estate and personnel.
Ms. Brandon began in 1979 as a
management associate. Ms. Lutz
also joined as a management associ­
ate in 1980. Mr. Hoban started his
career with the bank in 1981 as a
credit analyst. Ms. Mitch began her
career in 1978 as a regional auditor
for First System Services, having
just joined the bank in January of
1983.
* * *
Daniel J. Lessard, president of
First American Bank and Trust,
Grafton, N.D., has been elected to
the board of Bremer Service Com­
pany, Inc. He will complete the
unexpired term of director-at-large
Marvin Campbell, retiring chairman
of Citizens State Bank, Brainerd.
* * *

Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Virgil M. Dissmeyer, executive
vice president and head of opera­
tions at Northwestern National
Bank of Minneapolis, has been named
to the new position of executive vice
president and corporate operations
officer of Northwest Computer Ser­
vices, Inc., the data processing af­
filiate of Northwest Bancorporation.
He joined Northwestern Bank in
1957 and has headed the bank’s
operations group for 14 years.
Northwestern National also an­
nounced the appointments of two
vice presidents, 17 assistant vice
presidents and 12 officers.
In the funds management group,
Charles D. White was elected vice
president of the treasury depart­
ment administration.
In the trust and investment
group, Harold J. Stark was elected
vice president of trust capital
management services I. He joined in
1980.
Named assistant vice presidents
were: Robert J. Brownlee, Richard I.
Carlson and Timothy R. Skildum,
bond department; Gary Gilbert;
Donald D. Ogren; Barbara M. Kiedrowski and Bryn Bjella Parchman,
retail, wholesale and transportation
division; John McShane and
Thomas L. Flack, national accounts;
Patricia A. Constans, trust tax;
Gerald B. Hamlin, bond accounting;
Daniel D. Magnuson, bond safekeep­
ing; Pamela R. Mohr, bond clear­
ance; Colleen P. Mooney and Randon S. Pintens, consumer banking;
Robert C. Klas, Jr., residential mort­
gage, and Kent H. Bergemann, do­
mestic banking.
New officers include: Patrick T.
Stanchfield, Donald J. Fredell, Rus­
sell E. Jacobs and Michael S. Post,
investment; Lennie M. Kaufman,
commercial lending; John D. Hus­
ton, correspondent banking; Bar­
bara A. Dorland, operations; Bar­
bara F. Christoferson, Mary Lou
LaChance and Gloria I. Wesely, tax;
Robert J. Phillipich, trust, and Mar­
tin O’Link, commercial banking.
* * *
Northwestern National Bank of
Minneapolis recently announced
plans to open a commercial banking
subsidiary in Hong Kong, pending
final approval by the Federal
Reserve board of governors and the
commissioner of banking in Hong
Kong. The planned facility will
engage in commercial and wholesale
banking activities for all of Asia.

Upon approval, Northwestern will
become the first regional bank in the
Upper Midwest to have an operating
presence in Asia. The facility is ex­
pected to open about July 1.
Named managing director of the
planned subsid­
iary is Gary B.
Hawk, currently
vice president of
the Asia, Middle
East and Afri­
can division at
N o rth w estern .
Michael J. Sadak, a ssista n t
vice president in
G. HAWK
charge of the
Asian geographic region, will serve
as associate director of the facility.
* * *
At First Bank Southdale, Edina,
Linda L. Borchardt, Cynthia R. Fitz­
Gerald and Barbara J. Paulson have
been promoted to operations officers
and Mary E. Wold, security officer/teller manager.

B.J. PAULSON

M.E. WOLD

Ms. Borchardt, who previously
was accounting supervisor, started
with the bank in 1969. Ms. Fitz­
Gerald began her career in 1971 as a
part-time teller. In the retail divi­
sion, Ms. Paulson previously held
the position of personal banking
operations supervisor. Ms. Wold
will also serve as teller manager. She
has been with the bank since 1973.
* * *
Northwest Bancorporation has
announced the election of Walter R.
Miller, Jr., as executive vice presi-

39

Look for us in
Sain Diego

Dave Hyduke

Bob Sipple

Bill Langford

Tom Resch

Bob Jacobson

Bill Lind

We look forward to seeing our banker friends at the Independent Bankers
Association of America convention in San Diego.
We hope to see you there and to talk with you about how our full line of
correspondent services can benefit your bank.

AMERI CAN
N A T I O N A L

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

B A N K *

S A I N T

P A U L
Northwestern Banker, March, 1983

40
Minnesota News
dent of the consumer banking
group, and Kenneth R. Murray to
the new position of executive vice
president and manager of its com­
mercial banking group. Also an­
nounced was the appointment of
Daniel Vandermark to the new posi­
tion of vice president-tax.

v m

B

”

K.R. MURRAY

J

I H K K ’ Í.

D. VANDERMARK

Mr. Miller joined the corporation
in 1981 as senior vice president of
the same area. Prior to that, he served
as senior vice president of market­
ing and planning with First Na­
tional Bank of Atlanta.
Since July, 1981, Mr. Murray has
been executive vice president and
head of corporate banking at BancOhio, Columbus. The commercial
banking group is one of four created
as part of a corporate-wide reorgan­
ization announced last August.
Mr. Vandermark, who will be
manager of the tax department, has
been with Dart & Kraft, Inc., Chi­
cago, since 1975.
* * *
National City Bank of Min­
neapolis recently announced four
promotions and one addition to the
bank’s official staff: Promoted to
new positions
were: GeorgieAnn B. Bright,
investm ent of­
ficer; Kathryn L.
House, assistant
vice president in
the bank’s Edina
office; Cynthia
J. Strand, ex­
ecutive line of­
ficer, commer-

K.L. HOUSE

C.J. STRAND


Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FBS Business Finance Corpora­
tion is the new name of the consol­
idated leasing and asset-based lend­
ing subsidiaries of First Bank Sys­
tem. The two subsidiaries were for­
merly known as FBS Leasing Cor­
poration and FBS Business Credit Inc.
John E. Mc­
Cauley, formerly
p re s id e n t
of
C.G. WEINMAN
H.H. TRACY
FBS Business
dal banking department, and Con­ Credit, has been
nie G. Weinman, assistant vice pres­ named president
ident, trust department. Harmon H. of FBS Business
Tracy joined the bank as assistant F in a n c e C o r­
vice president in the loan accounting poration. James
division. Mr. Tracy previously was R. Renner has
associated with the Northwestern been named ex­ J.E. MC CAULEY
e c u tiv e
vice
National Bank of Minneapolis.
Ms. Bright joined the bank in president and manager of the FBS
1977. Ms. House has worked at Na­ leasing and equipment finance divi­
tional City since 1975. Ms. Strand sion, and Donald L. Matthes has
began in the Edina branch in 1978. been named senior vice president
Ms. Weinman has worked in the and manager of FBS business credit
division of the corporation.
trust department since 1979.
* * *
* * *
David G. Handy has joined First
Bank Minneapolis as senior vice
p resid en t and
head of its na­
tional banking
group. Mr. Han­
dy had been with
Continental Il­
linois National
Bank and Trust
Company of Chi­
cago since 1968,
most recently as
vice president
and manager of its Minneapolis
regional office, with additional
responsibility for the Minneapolis
branch of its Edge Act subsidiary.
* * *

Ambassador Meisch (left) and W. James
Armstrong.

W. James Armstrong, president
and chief executive officer of North­
western National Bank of Minneap­
olis, has been appointed honorary
vice consul of Luxemborg for Min­
nesota and Wisconsin, announced
Adrien Meisch, Ambassador of Lux­
embourg to the United States.
As vice consul, Mr. Armstrong
will serve both Luxembourg citizens
living in the area and U.S. citizens
planning to travel to Luxembourg
as well as those making business
contacts.

Clifford J. Steinhäuser has been
elected to the
board of direc­
to rs of F irst
Bank Robbinsdale, according
to Kenneth C.
Sheehan, presi­
dent. Mr. Stein­
häuser is pres­
ident of Noble
Drug Corpora­ C.J. STEINHÄUSER
tion and oper­
ates Merwin Drug Stores in Robbinsdale and Maple Grove.

Minnesota News

Nancy L. Nemitz has been elected
® vice president and manager of the
card center of First System Ser­
vices, Inc., the service subsidiary of
First Bank System, Inc.
_
Ms. Nemitz has been with FBS
® since 1971.
* * *

41

Elected in Hastings

1978 and joined the bank in H ast­
Michael Schumacher was elected ings in 1980 as commercial loan of­
vice president of the commercial ficer. Having joined in 1968, Ms.
banking and agricultural banking Fuchs has served as a teller, mort­
department; Marilyn Fuchs was gage loan processor and mortgage
elected mortgage banking officer loan assistant as well as handling
and compliance officer, and Susie the responsibilities of compliance
Martino was elected marketing of­ administration. Ms. Martino has
ficer of Northwestern National been with the bank since 1978, serv­
Dougherty, Dawkins, Strand & Bank of Hastings.
ing as marketing administrator
^ Yost, Inc., the Minneapolis-based inMr. Schumacher joined Banco in since last August.
w vestment banking firm, announced
that Susan Gale and Stephen M.
Prescott have been promoted to vice
presidents for municipal bond sales.
^
* * *
EPOSITS and loan figures for Minnesota banks reporting deposits of

Largest Banks in Minnesota

D

Timothy D. Marrinan, assistant
vice president and legal counsel at
First Bank System, Inc., has been
• named to the Federal Reserve
Board’s Consumer Advisory Coun­
cil.
* * *
Gerald K. Carlson, executive vice
president-finance of the Bureau of
Engraving, Inc., and Richard A.
Walter, president and chief ex-

G.K. CARLSON

R.A. WALTER

ecutive officer of Scientific Com­
puters, Inc., have been elected direc­
tors of Midland National Bank of
® Minneapolis.

Zapp Natl. Promotes Seven
#

Zapp National Bank, St. Cloud,
recently announced the promotions
of William Anderson and Joyce
Fuchs to assistant vice president;
Roger Poganski to head of the in# stalment loan department; Marchia
Puls, marketing officer; Mark Chris­
tianson, assistant trust officer; Char
Torborg, instalment loan officer,
and Geri Moshier, assistant cashier.
#

Roseville Bank Name Changed
The stockholders of the Roseville
State Bank have voted to change
^ the name of the bank to The Rose­
ville Bank.

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

$70 million or more at year-end are shown in the chart below. Com­
parative figures from a year ago are featured.
(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.

December 31, 1981
December 31, 1982
First Natl., Mpls..................................... $3,575,182 $2,626,243 $3,173,563 $2,267,800
3,195,184 2,936,571 3,279,847 2,661,698
Northwestern Natl., Mpls......................
First Natl., St. Paul................................ 2,096,691 1,648,385 2,012,186 1,435,351
132,834
882,730
218,130
1,035,409
F&M Marquette Natl., M p ls .*...............
241,097
252,682
289,597
Northwestern Natl., St. Paul.................
313,145
207,654
237,945
279,912
291,513
Natl. City Bank, Mpls.............................
281,763
227,968
267,159
244,169
American Natl. B&T, St. P a u l...............
146,668
226,674
165,074
222,733
Midland Natl., Mpls................................
140,657
153,869
197,589
201,623
N.W. Natl. S.W., Bloomington .............
148,604
200,319
136,566
195,876
First Natl., Duluth ................................
151,882
151,491
131,395
179,523
Northwestern Nati., Rochester ...........
106,577
170,991
105,716
176,037
Midway Natl., St. P a ul..........................
111,874
118,448
159,551
Northern City Natl., D uluth...................
173,408
108,915
152,487
124,094
144,863
First Edina Natl......................................
131,696
87,693
143,663
111,711
First Natl., R ochester..........................
110,241
126,584
141,671
96,222
Central Northwestern Natl., Mpls..........
134,663
103,935
105,459
135,101
First Southdale Natl., Edina.................
122,622
89,387
99,060
132,035
First Natl., H opkins..............................
75,853
124,781
128,905
95,811
First Minnehaha Natl., Mpls..................
83,169
119,247
92,376
114,180
N.W. Natl. BankWest, Hopkins.............
114,265
79,026
118,719
86,641
Merchants Natl., W in o n a .....................
72,729
116,441
80,546
105,040
Commercial St., St. P a ul.......................
97,271
69,076
83,687
113,389
Northwestern Natl., Mankato...............
68,737
102,348
112,229
70,118
Richfield B&T, R ichfie ld .......................
60,533
80,915
98,180
First Natl., Austin..................................
107,899
95,254
65,500
103,614
73,823
First Bank Robbinsdale........................
56,962
87,500
50,860
103,544
Community State Bk., Bloomington . . .
66,114
66,077
98,116
102,977
Fidelity B&T, Mpls..................................
61,987
95,996
102,872
80,873
First State Bank, St. P a u l.....................
61,814
102,537
63,296
102,003
First Natl., Moorhead ..........................
81,577
88,029
100,108
102,250
First American Natl., St. Cloud.............
65,186
69,541
91,972
99,057
First Natl., Anoka..................................
68,430
74,679
85,476
98,995
Fifth Northwestern Natl., Mpls..............
62,953
72,692
93,896
96,195
First Bloomington Lake Natl., Mpls. . . .
54,582
82,430
93,677
56,511
First Northwestern Natl., W in o n a ........
52,857
78,989
92,641
55,810
First N.W. Natl., M arshall.....................
56,998
68,989
76,126
90,852
Wayzata B & T ........................................
85,022
50,681
64,239
89,870
First Natl. Bk., Mankato .......................
65,509
80,620
89,494
72,585
First Grand Ave. St. Bk., St. P a u l.........
57,537
77,457
62,873
87,126
N.W. Natl., So. St. P a u l.........................
First N.W. Natl., Fairbault.....................
53,556
79,449
84,217
51,938
59,664
Camden N.W. State Bk., Mpls................
75,282
58,611
80,983
49,637
55,148
74,229
80,937
Zapp Natl. B ank....................................
78,918
45,791
80,724
46,918
First Natl. Bk., V irg in ia .........................
41,646
65,643
45,519
80,378
Eastern Heights. St. Bank, St. Paul
69,336
40,629
45,111
76,915
First Natl. Bk., Bemidji .........................
45,453
49,315
66,208
76,672
Northwestern State Bank N.W..............
41,252
68,609
75,502
38,701
Northwestern Bank, Fergus F a lls ........
75,977
43,642
40,681
74,426
Marquette B&T, Rochester...................
65,264
32,756
74,384
35,830
Citizens B&T, Hutchinson.....................
50,513
58,908
75,836
72,990
Northwestern Natl., Owatonna ...........
47,084
53,771
70,145
71,425
Northwestern State Bank, Virginia . . . .
72,641
45,656
71,161
52,901
First Natl. Bank, Worthington .............
‘ merger of Farmers & Merchants and Marquette Natl.

Northwestern Banker, March, 1983

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

What is the measure of an
experienced correspondent banker?
Measure your correspondent banker by his willingness and ability to
help you. By his knowledge of community banking and his own bank.
And by the expertise of the specialists that back him.
At F&M Marquette, we believe there is no substitute for experience.
Our correspondent bankers have had previous experience in
community banking, retail banking, credit, and operational areas. All
have been with F&M Marquette for more than 10 years. They’ve proven
their value time and time again to respondent banks across the Upper
Midwest by applying their depth of experience and knowledge to the
needs of independent bankers.
The teamwork approach in serving your bank’s correspondent and
investment needs is unique to F&M Marquette. Here, both
departments are part of the same division so you have a coordinated
effort by people who know you and your bank’s operation — and care
about its performance.
And now, with the recent merger, our correspondent department
has an added dimension — the combined resources of the new F&M
Marquette National Bank. With this team working for you, your vital
banking needs are always in the hands of professionals.
At F&M Marquette you get the answers you need, when you need
them. Our fast response builds your credibility with your client, and your
trust in us. And that’s the measure of a good business relationship.

A F&M Maranette National Bank

Together,we’re better.

lA j

M e m b e r F D IC


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

44

Minnesota News

LEADERS of the MBA Senior Bank Management Conference in St. Paul last month were, from left: Newton Fuller, chmn. of comm, on
education, and pres., First Bank Burnsville; John Ingebrand, pres, of MBA and pres., Kanabec State, Mora, and George Sugden, chmn.
MBA Bank Mgmt. Comm, and pres., Northwestern Natl., Mankato. RIGHT—Mark W. Olson, chmn., ABA Govt. Relations Council and pres.,
Security State, Fergus Falls, and Jack N. Reif, bkg./tax specialist, Deloitte, Haskins & Sells, St. Paul, who teamed on a TEFRA presentation.

MBA Looks at Legislation, Economy
By BEN HALLER, JR.
Editor and Publisher

L

EGISLATIVE and Bank Man­
agement Issues formed the
centerpiece of discussions at the
Minnesota Bankers Association’s
22nd Senior Bank Management
Conference last month at the Radisson Hotel in St. Paul.
After discussing legislative issues
and hearing viewpoints of three
economists the first afternoon, the
more than 200 registered bankers
hosted most of the Senators and
Representatives from the Minnesota
legislature at a reception and dinner.
Several of the leaders in the majori­
ty and minority parties spoke brief­
ly. The evening was concluded with
livewire entertainment provided by
“Life”—the Musical Ambassadors
of Goodwill.
Newton Fuller, chairman of the
MBA Bank Management Commit­
tee on Management Education, and
president of First Bank Burnsville,
presided at the opening session. He
introduced Leslie W. Peterson,
chairman of MBA’s legislative com­
mittee and president of Farmers
State Bank, Trimont, and John S.
Jackson, MBA general counsel.
Mr. Peterson reviewed the work
of the MBA committee and then
asked Mr. Jackson to review current
state legislation being considered or
debated. The mortgage moratorium,
which missed being passed last year
by one vote, was up again, along
with campanion bills, all of which
would endanger the legality of any

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

loan a bank might make by remov­
ing its right and authority granted
by the loan contract. Mr. Jackson
said Minnesota mortgages entering
the national secondary market
would require expensive additional
interest to overcome the effect of the
moratorium legislation.
He said HF45 and SF78, bad
check bills, would require banks to
ask certain questions of each poten­
tial checking account customer, and
if they fail to do so, then the banks
would become the holders of any bad
checks those customers write. The
MBA also is concerned about the
bill that would reorganize the com­
merce department, with special con­
cern that such a move might reduce
the effectiveness of state bank
authority or examining procedures.
Three economists offered dif­
ferent viewpoints on: Economic Op­
tions - ’83.” They were Dr. Sung
Won Sohn, senior vice president and
chief economist for Northwestern
National Bank, Minneapolis; Rep.
John Brandi, economist, Hubert
Humphrey Institute, University of
Minnesota, and Wilbur Maki, pro­
fessor of agricultural and applied
economics, University of Minnesota.
Dr. Sohn reviewed the interde­
pendence of world nations today,
especially on the United States, and
how our economy affects the entire
world. He estimated that if true
unemployment could be counted—
discounting those who are working
only one day a week so are not of­
ficially listed as unemployed, but
counting those discouraged workers

who have dropped out and are no
longer counted—th a t the true
unemployment in the nation would
be closer to 30%.
Dr. Sohn listed four key elements
of the nation’s econony as: 1.
Federal budget demands—especial­
ly the defense budget. 2 . Interna­
tional (of $400 billion loaned to
world nations, $275 billion is from
the U.S.). 3. Credit demand. 4.
Monetary policy. He asked bankers
in the audience to vote on two op­
tions: 1. Interest rates will go up to
14% and recession will hit again. 2.
We’ll have lowered rates for awhile,
then business will pick up. The first
option won the voting. Dr. Sohn con­
cluded by saying, “ 1983 will be a
tough economic year for banking,
especially in the ag area. However,
we’ve gone through these before,”
he said, “and banking always comes
out stronger. You will do so again.”
Rep. Brandi reviewed the tough
decisions the legislature has already
had to make in an effort to resolve
the state’s financial crisis, and add­
ed “the legislature has learned three
things.” He listed them as: 1. The
problem is not a short-term one. 2 .
We need to attack unemployment. 3.
We’re still short by $500 million, or
$ 1.2 billion, depending on which
scenario prevails. After making
some broad policy suggestions from
which the legislature might choose,
he said he personally believes that
cutting further is no longer viable,
and that leaves a restructuring of
the budget dollars, which won’t be
popular in many circles—such as
raising tuition at the universities to
make students pay for a greater
share of the operating expenses.

Minnesota News

45

Speakers also included, from left: Dr. Sung Won Sohn, sr. v.p., and chief econ., Northwestern Natl., Minneapolis; Les Peterson, chmn.,
MBA legislative comm, and pres., Farmers State, Trimont; Roy W. Terwilliger, chmn., MBA communications comm, and pres., Suburban
Natl., Eden Prairie, and Calvin Wilson, a.v.p., Northwestern Natl., Minneapolis.

Pro. Maki had made a survey
among bankers prior to the meeting
and reported that among three alter­
natives he proposed—a slow, steady
growth, aborted recovery, or ac­
celerated expansion—the majority
of respondents had voted for option
one—slow, steady growth. He said
that while Minnesota agriculture
has been declining in overall impor­
tance to the state in the last decade
or so, agriculture also is now ex­
panding and growing in interdepen­
dence with metropolitan regions. He
feels this will have a great effect on
growth in the state in the balance of
this decade. He also cited statistics
pointing to continued growth in
tourism and its by-product busines­
ses in the state.
The second general session the se­
cond day started with a report from
MBA Executive Vice President Tru­
man Jeffers on “The Strategic role
of MBA.” He reviewed the changing
scene of state and national affairs as
they affect Minnesota banks, and
other changes in the future that
might be anticipated. As to the
MBA role in this continuing change,
Mr. Jeffers said “One role will be
that the MBA will do more and bet­
ter things for MBA members than in
the past. Second, we will assist
banks to serve their customers bet­
ter than in the past and help them to
be profitable. Third, we can’t do our
association work as we did five or 10
years ago, and neither can banks, so
the MBA role is to be responsive as
possible to member needs. Our mem­
ber educational programs are part of
that response.” Mr. Jeffers used the
opportunity to display a series of
folders from the MBA display table
in the lobby that list a series of staff
and management training programs

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

that are scheduled throughout the
state in coming months.
One special MBA program he
mentioned was the MBA Strategic
Plan, which came about as the result
of a Task Force appointed by former
President Bob Welle. Chairman of
that committee was James Gowan,
another MBA past president, who is
president of the First National Bank
in Chaska. A booklet outlining 11
strategies for MBA guidance was
provided CEOs of member banks.
Mark Olson, chairman of the na­
tionwide ABA Government Rela­
tions Council and president of Se­
curity State Bank in Fergus Falls,
teamed up with Jack N. Reif, a
banking/tax specialist of Deloitte,
Haskins & Sells, St. Paul, to discuss
“TEFRA and Banking.” Their prin­
cipal thrust was to review details of
the law mandating banks and other
financial institutions to withhold
10% of interest and dividends paid
through their institutions.
Calvin Wilson, assistant vice
president in security at North­
western National Bank, Minneap­
olis, talked about “Emergency Plan­
ning,” displaying a booklet MBA
has prepared since that bank’s ma­
jor fire last Thanksgiving Day.
Roy W. Terwilliger, chairman of
the MBA Communications Commit­
tee and president of Suburban Na­
tional Bank, Eden Prairie, introduced
Robert Jones, president of Paragon
Companies ad agency in Blooming­
ton, who showed slides from
BAAP’s latest television commer­
cial messages.
The final speaker, following the
noon luncheon, was Jack Whittle,
chairman of Whittle, Raddon, Mot­
ley and Hanks, Chicago, whose topic
was “Surviving and Prospering in a

Deregulated Environment.” Mr.
Whittle, whose accompaniment with
humorous slides emphasizes his
main marketing points, stressed the
need for knowing all product costs,
proper pricing and analyzing mar­
kets before aiming at market share
with well-organized m arketing
strategy.
□

AIB— Minnesota Chapter
Offers Upcoming Seminars
The American Institute of Bank­
ing, Minnesota Chapter, is sponsor­
ing several seminars coming up in
March and April. All seminars are
scheduled to run from 8:30 to 4:30
and will be held in the American In­
stitute of Banking headquarters,
located in the WCCO Radio Build­
ing, 625 Second Ave. South, Suite
512, Minneapolis. For additional in­
formation contact: Judy Clark, sem­
inar coordinator, at (612) 338-8485.
•M arch 30—“ Stress Manage­
ment and Reduction.”
•April 13/14—“Asset Liability
Management.”
•April 20—“Time Management.”
•April 26—“Overview of Interna­
tional Banking.”
•April 27—“Retail Banking Pro­
ducts... Their Status, the Competi­
tion, and the Regulatory Environ­
ment.”
•April 28—“Communication Man­
agement for Secretaries.”

Elected in Mankato
Valerie Holzhueter has been
elected as commercial loan officer of
First Bank Mankato, announced
Starr J. Kirklin, president.
Ms. Holzhueter, who joined the
bank in 1978, has held positions of
teller, adjustor and credit review of­
ficer.
Northwestern Banker, March, 1983

46

Minnesota News

Mike Pint Honored by Bankers

Two Named in Maple Grove
Richard L. Traut and Sue E.
Muecke have been named vice presi­
dent and assistant vice president,
respectively, at Northwestern State
Bank Northwest, Maple Grove.
Before joining the bank in 1979,
Mr. Traut was employed by Farm­
ers State Bank of Hamel, Minn. Ms.
Muecke serves as manager of the
Maple Grove Mall office.

Joins Hastings Bank
of Minnesota bankers took time out during the MBA Senior Management Con­
ference in St. Paul early last month to give special tribute to Michael J. Pint, who had served
as Minnesota’s commissioner of banks and chairman of the State Commerce Commission
since 1979. The story about Mr. Pint rejoining the Federal Reserve Bank of Minneapolis as
a senior vice president was published in a recent issue. Organized by Twin City area
bankers, the reception barraged Mr. Pint with a great deal of humorous comment, but was
concluded with a brief talk by MBA President John Ingebrand, who expressed for all Min­
nesota bankers their appreciation for the leadership and dedicated work Mr. Pint exhibited
in his four years in office. On behalf of those present, Mr. Pint then was presented an
engraved watch as a memento of the occasion. Pictured above with Mr. Pint (second from
right) are, from left: James T. Gowan, pres., First Natl., Chaska, and C. Paul Lindholm,
pres., State Bank of Maple Plain, both past presidents of MBA, and John Lundsten, pres.,
Buffalo Natl., Buffalo (far right).

Montevideo Promotion Told
Kathleen Michaelson has been
promoted to vice president of First
National Bank
in Montevideo,
a c c o rd in g to
O.B. Rekow,
president. Ms.
M ichaelson is
responsible for
computer oper­
ations, audit and
compliance.
She joined the
bank in 1979
after serving as vice president and
managing officer of the State Bank
of Boyd.

Grant Provides For High
School Training Sessions

Brian Hagen has joined the staff
of Northwestern National Bank of
Hastings as a new agricultural of­
ficer.
Mr. Hagen was graduated from
North Dakota State University with
a degree in agricultural economics.
Since that time he has been a consumer/ag loan officer at First Bank
Rolla, North Dakota.

One-Bank Holding Companies
Explored by Competitech

Everything community bankers
On behalf of the Otto Bremer wanted to know about one-bank
Foundation, Citizens State Bank, holding companies but were afraid
Brainerd, recently presented a to ask is available in “One-Bank
$4,500.00 grant check to Marcus Holding Companies: Their Uses, Ad­
Anderson, coordinator of the Educa­ vantages, and the Application Pro­
tional Cooperative Service Unit-5 cess,’’ according to Larry A. Johns,
Chemical Abuse Prevention Project chairman of the American Bankers
and Tom Morton, Brainerd High Association Community Bankers
School counselor.
Council.
The grant was awarded to con­
Describing the most recent issue
duct two Partners in Prevention of Competitech, ABA’s subscription
F estivals-training sessions for series on implementable banking
sophomores and juniors in the techniques and technology, Mr.
Brainerd School District. Through Johns stated, “This publication is
these sessions, these students are intended to inform community
trained as peer facilitators to help bankers about the advantages of a
other students in chemical abuse one-bank holding company, the di­
Four Appointed in Duluth
prevention.
versity of its uses in the nonbank
Four appointments have been
subsidiary area, factors to be con­
made by the board of First Bank—
sidered in analyzing the prospects
Duluth. Helena Jackson has been
for success of an application to form
promoted to assistant vice president
one and the information that must
and trust officer. She joined the Pipesone President Named
First Bank Pipestone has elected be available to prepare and process
bank in 1980.
James Royal has been promoted Steven A. Grell, president and chief the application.’’
The publication was written by
from auditor to assistant vice executive officer and Donald E.
Mary E. Curtin, Robert B. Whitlock
president-operations. He joined in Jensen, chairman.
Mr. Grell began his career with and Roderick T. Mackenzie, attor­
1972 as a management trainee.
Bradley Klein, who joined the First Bank System in 1973 when he neys for Larkin, Hoffman, Daly &
bank in 1981, was elected trust joined First Bank Rolla, N.D. He Lindgren, Ltd., Minneapolis.
Single copies may be obtained
has been with the Pipestone bank
officer-legal.
Lawrence Stovern has been named since 1980 as vice president and se­ from Order Processing, American
Bankers Association, 1120 Connec­
commercial loan officer. He has cond officer.
Mr. Jensen has been president of ticut Avenue, N.W., Washington,
previous experience in the bank’s
real estate department and most First Bank Pipestone since 1972 and D.C. 20036. The cost is $20 for ABA
recently was a marketing officer.
members and $30 for nonmembers.
with the System since 1954.

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

47
announced that Barbara M. Celia
has joined the bank as vice presi­
dent, responsible for teller opera­
tions and the personal banking
center.
Ms. Celia brings 11 years of ex­
perience to the bank, having started
with Continental Illinois and later
joining Central National Bank. She
most recently was vice president
and director of personal banking.

Illinois
D.R. L o v e tt, ch m n . & pres., D ixon
W . J . H octer, exec. v . p . , C hicago

Downstate Holding Company Formed
nual meeting, presented an engraved Calumet City Bank Lowers
plaque to Morey Wadleigh, who was
named chairman emeritus upon his Interest Rates on Car Loans
Robert C. Collins, president of the
of Midwest Financial Group, Inc., retirement after serving 43 years as
First State Bank of Calumet City,
downstate’s largest bank holding a director.
Stockholders also voted to en­ has announced that through April
company.
The $1.1 billion holding com­ large the board by two members. 15, 1983, First State Bank will offer
pany—now the sixth largest in Il­ Newly elected members are Merlin 11.5% loans for 1983 models; new
82s at 12.5% and as an added incen­
linois—also reported combined bank Elmhorst and Norman Riordan.
tive, used car loans as low as 14.5%.
net earnings of $7.1 million for 1982,
Previous loan rates were 14% for
a 37% increase over 1981 when the
new cars and 16% for used cars.
banks’ performances totaled $5.2 Joins Elmhurst Bank
Frank C. Rathje, president of Loans are not limited to domestic
million.
The transaction unites: Commer­ Elmhurst National Bank, recently models or existing bank customers.
cial National Bank, Prospect Na­
tional Bank, and University Na­
tional Bank, all in Peoria; Illinois
National Bank of Springfield; First
Trust and Savings Bank of Kanka­
EPOSITS and loan figures for Illinois banks reporting deposits of $200
kee, and First National Bank in
m illion or more at year-end are shown in the chart below. Com­
Champaign.
parative figures from a year ago are featured.
“This is the moment toward
(Last three figures omitted)
which we have been working for
December 31, 1981
December 31, 1982
many years. I am extremely enthu­
Loans
Loans Deposits
Deposits
siastic about our future, ’’ said David
1. Continental Bank, Chicago........... ___$28,615,422$32,580,977$29,594,005$31,463,328
E. Connor, Midwest Financial
2. First Natl., C hicago....................... . . . . 27,418,645 22,191,826 25,554,923 20,567,846
Group President.
3. Harris Bank, Chicago ................... . . . . 4,896,521 4,019,863 4,574,480 3,997,980
4. Northern Trust, Chicago............... . . . . 4,100,789 3,400,000 4,314,383 3,341,305
Each bank will continue to retain
5. American Natl. B&T, Chicago....... ___ 2,281,719 1,453,241 2,083,569 1,316,112
its own name and identity in the
661,626
984,149
684,345
861,691
6. LaSalle Natl., Chicago................... ___
community it serves.
305,524
469,867
634,002
843,718
7. Central Natl., Chicago...................
The MFG executive committee
306,274
469,867
645,895
843,718
8. Exchange Natl., Chicago .............
284,002
389,192
562,904
172,009
will consist of: Mr. Connor, A.D.
9. Bank for S&Ls, C h ica g o ...............
214,851
241,954
408,660
488,692
Van Meter, Jr., president, Illinois 10. Northwest Natl., C hicago.............
163,050
429,962
181,014
468,525
Lake View T&R Savings Bank.......
National Bank of Springfield; 11.
333,418
451,208
442,402
337,922
12. Springfield Marine B ank...............
Walter J. Charlton, chairman, First 13. Lake Shore Natl., Chicago ...........
255,098
358,720
381,257
271,843
Trust and Savings Bank of Kanka­ 14. First Natl., Evergreen P a rk ...........
132,264
313,482
371,906
137,631
235,619
345,088
241,774
356,713
kee, and William C. Fox, chairman, 15. Citizens B&T, Park Ridge .............
224,173
250,932
329,428
351,048
First National Bank in Champaign. 16. Natl. Blvd. Bank, Chicago.............
267,993
358,181
346,941
267,162
17. Sears B&T, Chicago.......................
Donald R. Houk will serve as 18. First Natl. B&T, Evanston.............
291,407
182,158
332,679
190,290
senior vice president and Sandra M. 19. Glenview State Bank, Glenview . . .
243,705
330,408
201,542
298,617
363,673
280,426
281,000
294,000
Traicoff will serve as corporation 20. Chicago-Tokyo Bk., Chicago .......
224,429
321,036
211,147
287,969
secretary. Selected as controller was 21. Commercial Natl., P eoria.............
252,682
130,299
139,483
281,711
State
Natl.
Bk.,
Evanston
.............
22.
Barbara J. Duryea, who joined the 23. Mount Prospect State Bk...............
158,091
164,482
249,365
275,662
holding company in November, 1982. 24. First Natl., Springfield...................
181,044
276,943
172,208
268,201
143,824
Mr. Houk and Ms. Traicoff are 25. American Natl. B&T, Rockford . . . .
267,634
144,333
267,663
131,385
239,947
137,078
266,869
former officers of Commercial Na­ 26. Oak Park T&S, Oak P a rk ...............
165,962
236,253
162,164
262,271
First
Natl.,
Skokie
.........................
27.
tional Bank. Mr. Connor will con­
120,655
231,079
160,399
257,700
First Natl., Des Plaines.................
tinue to serve as president and chair­ 28.
176,856
266,970
250,824
156,051
29. Pioneer B&T, Chicago...................
man of the board for CNB.
131,564
142,541
224,058
235,848
30. First Natl. Bank, Highland Park . . .
IX BANKS in four Illinois cities
S
have signed final m erger
documents required for the creation

Largest Banks in Illinois

D

Herscher Directors Named
State Bank of Herscher, at its an­

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

31. First Natl. B&T, R ockford.............
32. First Natl., B e lle ville .....................
33. Illinois Natl. B&T, Rockford .........

234,839
229,640
211,292

133,569
148,597
76,784

220,814
205,186
205,942

123,384
149,092
74,956

Northwestern Banker, March, 1983

If your primary correspondent
doesn’t look com m itted
to your business, take a look at
First Bank M inneapolis*


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

Com m itm ent.
The kind that says we’ll be
responsive to your needs, no matter
what the changing environm ent
brings.
T hat’s what we’re all about at
First Bank Minneapolis, and maybe
that’s why m ore banks in the U pper
Midwest use us as their prim ary
correspondent than any other bank.
As other banks edge slowly
out of the correspondent banking
business, we move ahead with:

♦ the largest staff of professional
calling officers in the region so that
our prim ary respondents will see
their calling officer as often as
they’d like.
♦ a 30% increase in our data proc­
essing staff so that we can handle
your needs m ore rapidly and
effectively.
♦ the kind of lending philosophy
that has allowed us to double our
correspondent bank loan portfolio
in the last four years.

So if you’re getting the idea
that we are the most committed
correspondent bank around, you’re
getting the right idea.

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

Wearewhatyouwantacorrespondentbanktobe.

Çpspm

/

■

¡1 §
,

»

à ,, /

sSSP®
à
¡¡¡1

T'


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

; •

50

Illinois News

Promoted in Rockford

Joins Heartland Bank Group

loan officer. She has been with the
Recently announced at the City
Woodford County Bank, El Paso, bank two years, most recently as
National Bank & Trust Co. of Rock­ recently became a member of Heart­ mortgage loan officer.
Cordell McGary has been ap­
ford, was the promotion of James C. land Bancorp, Inc., a multi-bank
pointed
assistant cashier/loan of­
Cox to senior vice president. Mr. holding company informally known
ficer.
He
joined two years ago as a
Cox has been with City Bank for 20 as the Heartland Bank Group. Other
years having headed the consumer members are First Bank of Eureka, management trainee, following eight
credit department for 15 years prior Bank of Carlock and State Bank of years with the First National Bank
of Chicago.
to being placed in charge of all lend­ Cornland.
* * *
ing a year ago.
The banks, which had been asso­
The following new officers were ciated with George E. Drake and
C. Andrew Lawrence,president of
also named: Richard D. Varble, some close associates, have total
the
Bank of Northfield, a suburb of
senior commerical loan officer; Sher- assets of $91,000,000.
Chicago,
recently announced three
ryelle L. Maggio, community bank­
promotions.
ing; Robert L. Viering, commercial
Darnelle C.
loans, and Stewart C. Craig, finan­
Marlin,
who
cial services.
started in 1979
as a staff aud­
SATM Midwest
itor, has been
Notes Record Sales
promoted to as­
SATM Midwest, Inc., subsidiary
sistant vice pres­
of ATM Network Management Corp.,
ident.
reported highest sales for the fourth
Jayne A. Hemquarter of 1982:
ric h was proD.C. MARLIN
•80 ATMS contracted;
moted to loan
•19 financial institutions con­
tracted, and
•4 data centers contracted
These 19 financial institutions in­
clude 14 banks, 4 savings and loans,
and 1 credit union, all located in Il­
linois.
SATM Midwest is the Illinois/
northern Indiana distributor of
SATM Services. All of the above
Robert F. Sherman has been
ATMS and other links will be oper­ elected p resid en t of the All
J.A. HEMRICH
K. HOLWAY
ated by the SATM Switching Center American Bank.
operations officer. Mrs. Hemrich
in Downers Grove. The addition of M r. S h erm an
has worked in the loan department
these new contracts brings the total had been senior
of the bank for the past four years.
number of financial institutions ser­ vice president at
Karen Holway was elected assis­
viced by SATM Midwest to 134 A m erican N a­
tant
cashier. Having started with
with 301 ATMs under contract.
tional Bank and
the bank in 1979, Mrs. Holway be­
Trust Company
came supervisor of bookkeeping op­
Named Chairman in Rockford of
C hicago,
erations in 1981.
In action taken at its annual where he has
* * *
shareholders’ meeting, David W. w orked since
Knapp was elected chairman of the 1967.
American National Bank and Trust
He has also
H eritage/Pullm an Bank and
Co., Rockford. He was also reelected been named executive vice president Trust Company recently announced
president and chief executive officer. of First Colonial Bankshares, the the appointment of Annette Ryan to
In other action, Thomas Olson was bank group which acquired All assistant cashier, operations.
elected assistant vice president, American Bank in 1981.
* * *
Lillie Rude was elected trust officer
* * *
and Cynthia Capitani was named
Sears Bank and Trust Company
the bank’s auditor.
Seaway National Bank of Chicago has announced the following promo­
As chairman, Mr. Knapp will be recently announced the advance­ tions: Alan M. Skolnik, vice presi­
replacing David A. Carlson, who is ment of three employes. William dent, travel division; Joseph W.
currently chairman of Carlson Roof­ “Bill” Bates, Jr., has been named Wemhoff, vice president, commer­
ing Company.
vice president/comptroller. Prior to cial division; James L. King, second
Mr. Olson joined the bank in 1972 joining Seaway National, he served vice president, credit administration
and previously was assistant cash­ as a senior auditor for the accoun­ department; Lee Adams, assistant
ier. Ms. Rude joined in 1969. Ms. ting firm of Arthur Andersen and vice president, trust division, and
Capitani received her CPA certifi­ Company.
Lynne Brongel, assistant vice presi­
Loretta Yamini has been advanced dent, accounting department.
cate in 1980 and joined the bank in
to assistant vice president/mortgage
May, 1982.
* * *

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

51

•
•

®

®

If a bank answ ers, hang up.
As a correspondent of The Boulevard Bank, you don’t deal with a bank, you
deal with a person — a professional correspondent banker. Each one is a
senior Boulevard officer and each one is capable of making some seventy
Boulevard banking services available to you and your customers.
This unique Boulevard combination of “big bank’’ service and personal
attention involves four basic areas - Loan participations, Assets-Liability
Management Services, Operational and Clearing Services and Management
and Marketing Services.
It also involves our day-to-day dedication to applying people and
state-of-the-art technology in helping our correspondent customers meet
the challenges and benefit from the opportunities of today’s and
tomorrow’s economy.
If you’d like to find out more about the Boulevard approach to correspondent
banking, call (312) 836-6868. And talk to a person, not a bank.

Earning your business every day.

N ational Boulevard Bank of Chicago

Boulevard
Bank

•
410 N. M IC H IGAN AVE., C H IC A G O , IL 60611


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

ONE ILLINOIS CENTER [111 E. W acker), C HICAG O , IL 60601

(312) 836-6500

• MEMBER FDIC

Northwestern Banker, March, 1983

Sioux Falls V.P. Named

Ag Credit Conference April 6-7
HE South Dakota Bankers As­
T
sociation 1983 A gricultural
Credit Conference is scheduled to be

Boehlje, professor of econom­
ics, Iowa State University,
Ames, la.
• “Computer Application As
It Relates to Record Keeping
and Production in Agricul­
ture’’—Neal Stadlman, assis­
tant vice president & ag rep,
Sac City State Bank, Sac Ci­
ty, la.
5:00 Reception.
6:00 Banquet.

Carl O. Myers, president of North­
west Agricultural Credit Company
of Sioux Falls, announced the elec­
tion of Terry L. Jensen as vice presi­
dent. Mr. Jensen previously was as­
sistant vice president of the North­
western National Bank of Norfolk,
Nebraska, at the Norfolk Banco af­
filiate. He spent five years in lending
heading up the agricultural loan
department. Northwest Agricul­
tural Credit Company is a wholly
owned subsidiary of the Northwest
Bancorporation.

Announcements Made

held April 6 & 7 at the Kings Inn
The South Dakota State Banking
Convention Center, Pierre. “Work­
Commission
recently approved the
ing Out of the
election
of
William
R. Billars, Jr.,
80’s’’ will be the
Farmers State Bank, Kaylor, and
theme for this
Bruce L. Odson, Farmers and Mer­
y e a r’s confer­
chants
Bank, Huron, as directors.
ence, featuring
The
Commission also approved
keynote speaker
the application of the Chancellor
Michael K. Ev­
State Bank, Chancellor, to purchase
ans, president of
the
assets of and assumption of
Evans Econom­
liabilities of the Branch Banks of
Thursday, April 7
ics, Inc., Wash­
United National Bank, Sioux Falls,
ington, D.C., an
A.M.
M.K. EVANS
at
Brandon, Gregory and Valley
economic fore­
8:00 Breakfast.
Springs.
casting and consulting firm he
9:00 MABSCO MASI Update:
founded in 1979. The program sche­
-Milt Schwartz, executive
dule follows:
vice president, SDBA, Pierre. Promoted in Big Stone City
FHA Update: Dexter Gun­
Jill Bowers has been promoted to
Wednesday, April 6
derson, FHA director, Huron. assistant cashier at Big Stone State
A.M.
“Mock Bankruptcy Hearing.’’ Bank, Big Stone City. She has been
9:00 Registration.
12:00 Adjournment.
on the staff of the bank since 1973.
10:00 Call to order.
Gene Holsing, SDBA ag com­
mittee chairman and vice
president, First State Bank,
Warner.
EPOSITS and loan figures for South Dakota banks reporting
•Keynote: “The Economic
deposits of $50 m illion or more at year-end are shown in the chart
Outlook’’—Michael K. Evans, below. Comparative figures from a year ago are featured.
president, Evans Economics,
(Last three figures omitted)
Inc., Washington, D.C.
December 31, 1982
December 31, 1981
11:30 Luncheon.
1. First Bk. of South Dakota, N.A.*...........
$584,344 $436,632 $550,094 $377,667
•Address: “Marketing South 2.
N.W. Natl., Sioux Falls .........................
498,496
319,716
455,200
316,228
Dakota Agricultural Pro­ 3. First Natl. Black Hills, Rapid C ity.........
323,823
198,668
307,093
188,938
ducts’’—James Myers, direc­ 4. First Natl., Aberdeen............................
297,283
208,141
281,490
195,992
5. First Sioux Falls B a nk**.......................
166,886
100,084
159,782
93,697
tor of railroads, Department
United Natl., Sioux F a lls .......................
150,448
92,093
140,448
80,357
of Transportation, State of 6.
7. First Bank-Aberdeen............................
132,874
113,810
131,899
104,975
South Dakota, Pierre.
8. Commercial Bank, Mitchell .................
95,502
56,584
83,942
53,637
P.M.
9. Western State Bk., Sioux F alls.............
94,758
67,020
92,560
57,257
91,662
59,708
1:00 »“Foreign Trade and Its Ef­ 10. First Natl. Bk., Watertown.....................
79,615
57,581
86,808
62,767
83,940
59,297
fe c ts
on
C om m odity 11. First Natl., Brookings ..........................
12. BankWest, N.A., P ie rre .........................
85,779
54,599
69,946
47,743
Pricing’’—Robert Bergland, 13. First Mitchell Natl., M itchell.................
85,055
51,751
86,231
52,450
president, Farmland-Eaton 14. American St., Yankton..........................
77,378
41,448
76,563
43,251
World Trade Company, Arl­ 15. Farmers & Mer. B&T, Watertown
76,939
43,530
82,917
44,419
16. Farmers & Mer., Huron .........................
73,588
36,258
71,080
33,543
ington, Va.
17. Farmers State Bank, Winner.................
63,326
34,449
55,493
33,946
2:00 AGRICULTURAL FINANCE 18.
Bank of Belle Fourche..........................
63,101
28,460
56,956
28,833
CHALLENGES OF THE ‘80s 19. Valley Natl., Sioux F a lls .......................
62,994
29,264
56,589
29,295
• “Understanding What Your
‘ formerly Natl. Bk. of South Dakota
Financial Statement Tells
“ formerly First Natl., Sioux Falls
You” —Professor M ichael

Largest Banks in South Dakota

D


Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

South Dakota News

S.D. First Banks to Form New Bank
HE SEVEN First Bank System
T
affiliates in South Dakota have
filed with the U.S. Comptroller of
Currency, a plan to form a new bank
according to an announcement by
Nels E. Turnquist, chairman of First
Bank of South Dakota.
Upon approval of the Comptrol­
ler’s Office, the First Banks in Aber­
deen, Clark, Gettysburg, Highmore,
Lemmon, and Miller will become
known as community banking cen­
ters and their names will be changed
to First Bank of South Dakota. The
new bank will have 25 locations and
three divisions — Eastern, North­
ern, and Western — with the main
office located in Sioux Falls.
David S. Birkeland, president and
chief executive officer of First Bank
of South Dakota, will continue in
that capacity for the new bank and
as managing director for the state.
The d iv isio n
heads will be
Jack M. Thomp­
son, deputy chief
executive officer
of First Bank of
South D akota
and presidentNorthern Divison; Verlynne L.
Albers, execu­ D.S. BIRKELAND
tive vice presi-

step of a plan initiated in the fall of
1982 when branch managers in
South Dakota were promoted to
president of their respective units,
reflecting their expanded authority
to address the financial needs of
their customers and individual com­
munities.
“This plan will provide significant
benefits to the communities we
serve, the state and the new bank,’’
said Mr. Turnquist. “It will increase
the lending limits of each of these
entities as a result of combining
their assets, providing more re­
sources to the individual commun­
ities they serve; and, as a result of
the increased operating efficiencies,
will allow us to continue to provide
quality banking services at com­
petitive prices as we enter an ex­
citing and challenging time in the
banking industry.”
There will be no change in the
management, staff or composition
of the boards of directors of the com­
munity banking centers. Checks,
certificates and other forms will con­
tinue to be valid until such time as
replacement items are printed with
the new bank name.
The combined assets of the new
bank will be over $ 1.1 billion.

N.E. TURNQUIST

dent-Eastern Division, and Reynold
E. Klay, president-Western Divi­
sion. Nels E. Turnquist will continue
as chairman of the new bank.
The consolidation is the second

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

Watertown Bank Promotes
Three, Director Retires
First National Bank of Watertown recently announced the promo­
tions of three officers, following the
103rd annual meeting of the share­
holders and board of directors.
Jerry A. Miller, vice president in
charge of loan administration, was
promoted to senior vice president.
Mr. Miller joined the bank in 1961
as a management trainee. He was
named vice president and manager
of the trust department in 1969 and
in 1977 was named vice president
and manager of the Watertown Divi­
sion.
Mel Breitag, vice president and
cashier since 1982, was promoted to
senior vice president. Mr. Breitag
joined the Watertown bank in 1980
as a cashier. Prior to that he was
with banks in Aberdeen and Helena,
Montana.
Rachel Stearns was promoted to
administrative services officer. She
started with the bank in 1977, hav­
ing previously been with Valley Na­
tional, Sioux Falls.
Also announced was the retire­
ment of Robert H. Walrath from the
board of directors. He had been
associated with the bank for 47
years, having served as chief ex­
ecutive officer from 1957-1979 and a
director since.

New Director, Officer Named
John R. Howard is the newest
member of the board of directors of
First National Bank of the Black
Hills, according to President
Charles T. Undlin. Mr. Howard is
president and general manager of
Black Hills Packing Company,
Rapid City.
In addition, Doug Peterson has
been named real estate loan officer
at the bank’s main office. Mr. Peter­
son has been associated with First
National Bank of Watertown, S.D.,
First Services Mortgage Corpora­
tion in Rapid City and the Clinical
Laboratory of the Black Hills as the
business administrator.

R.E. KLAY

53

Spearfish Conference Site

The 1983 conference of the Upper
Midwest Agricultural Credit Coun­
cil is scheduled for July 6-8 at the
Holiday Inn, Spearfish, S.D. “Farm
C red it P e rs p e c tiv e s for th e
Eighties” is the theme for this
year’s UMACC conference. Fea­
tured sessions will include “LongTerm Prospects for the Agricultural
Sector,” “Computer Technology in
Ag Lending,” “Deregulation, Ag
Lending and Profitability” and “Im­
proving Your Management Skills.”
Agri-business-related tours are
also scheduled as part of the con­
Acquisitions Approved
ference, and scenic attractions of the
The Federal Reserve Bank of Min­ northern Black Hills will be avail­
neapolis has announced its approval able to participants, their spouses
for Ranchers Investment Corpora­ and families.
tion, Winner, to acquire the Ranch­
Persons interested in further
ers National Bank of Winner, and details may contact Jeff Moore at
for Hopkins Financial Corporation, First Bank-East Grand Forks,
Mitchell, to acquire Leola State 218/733-1166, or Jim Hammill at the
Bank, Leola.
Minneapolis Fed, 612/340-2137.
Northwestern Banker, March, 1983

54

South Dakota News

Sioux Falls Elections Told
Curtis W. Kuehn, senior vice pres­
ident of the First National Bank in
Sioux Falls, has been elected presi­
dent and chief operating officer. Mr.
Kuehn succeeds W.S. Baker, who
was elected chairman and continues
as chief executive officer of the
bank.
Mr. Kuehn joined the bank in
1952 and served in a variety of
senior positions including lending,
trust and corporate development.
In addition, the bank also an­
nounced the promotions of: Todd J.
Bernhard to assistant vice president
and trust officer at the main office;
Gary Stoner to assistant vice presi­
dent and managing officer at the
Empire Branch, and James C. Pollmann to assistant vice president and
assistant branch manager at the
Baltic Branch.

Two Promotions Told
Valerie Kuhl has been promoted
to controller and Kay Anderson to
compliance officer at United Na­
tional Bank, Sioux Falls.
Ms. Kuhl joined the bank in 1974
and has served as accounting officer
and manager of the accounting de­
partment since 1979. Ms. Anderson
has been with United since 1976 and
previously served as executive
secretary and compliance assistant.

Northwestern to Build
In Downtown Huron
A1 Severson, president, North­
western National Bank of Sioux
Falls, announced a decision by the
board of directors to build a major
new banking facility at the corner of
4th and Dakota in downtown Hur­
on. “This decision reflects North­
western’s continuing commitment
to be a partner with the people of
Huron in rebuilding the downtown
business area.’’ Mr. Severson said.
“ It represents our confidence in the
community of Huron and the eco­
nomic vitality of its future.”
Lee Larsen, vice president and
branch manager of the Huron Branch
stated: “The new facility would en­
compass 14,000 square feet and in­
clude drive-up banking, customer
parking and easy access.” Mr.
Larsen said, “the new building
should be ready for occupancy in the
spring of 1984.”
Mr. Larsen also stated, “the new

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

location will permit construction to
take place without any inconveni­
ence to our customers. Major em­
phasis will continue to be on per­
sonal service, professionally deliv­
ered to all customers with a focus on
agricultural, real estate, commercial
and consumer lending. Northwest­
ern will continue at full service from
its current downtown location at
280 Dakota Avenue South until the
new facility is completed.”

presently has responsibility for the %
customer service department. Ms.
Wilson was employed by the bank as
a teller in 1972 and has held the posi­
tion of head teller since 1980. Ms.
Munce joined in 1966 as a teller and #
was employed in various depart­
ments until 1977 when she joined
the trust department.

Salem Acquisition Approved

*

The Federal Reserve Bank has ap­

Mitchell Bank Promotes Five proved the application by McCook
Ron Jenkins, president of Com­
mercial Bank, Mitchell, has an­
nounced the following promotions:
David Brooks
and Gary Slade
to vice president;
Mary Nutter to
assistant cashiercustomer service;
Sandy Wilson to
assistant cashierteller operations,
and
L illian
Munce to trust
D. BROOKS
administrator.

Bancshares, Inc., Salem, to acquire
The McCook County National Bank
of Salem.

RMA Expands Membership
Policy to Include S&Ls
Savings and loan associations
that choose to become commercial
lenders are now eligible for member­
ship in Robert Morris Associates,
the national association of bank loan
and credit officers. A recommenda­
tion to broaden RMA’s membership
eligibility to include S&Ls was
unanimously approved by the association’s board of directors.

Manufacturers Hanover
Opens San Francisco Unit
Manufacturers Hanover Interna­
tional Banking Corporation, a sub­
sidiary of New York-based Manufac­
turers
Hanover Trust Company, has
G. SLADE
M. NUTTER
officially opened its sixth “Edge
Act” office in San Francisco.
The office, located in Suite 1620,
333 Market Street, will be headed by
Richard C. Ashley, Jr., vice president and manager.
The San Francisco branch will
conduct international business in
Washington, Oregon, Alaska, Idaho
and Northern California (Fresno to
Monterey and points north), com­
S. WILSON
L. MUNCE
plementing the activities of MHIBC
offices in Los Angeles, Atlanta,
Mr. Brooks, a former Federal Chicago, Houston and Miami.
Reserve Bank Examiner, joined the
Other Manufacturers Hanover
bank in 1980 and has been involved units operating in San Francisco
in the commercial and agricultural (and in Los Angeles) include Man­
loan department. Mr. Slade began ufacturers Hanover Leasing Corpor­
his banking career at Commercial in ation, the U.S.’s largest bank-af­
1974 in the ag and commercial loan filiated leasing and equipment finandepartment. He was promoted to as­ cing organization, Manufacturers
sistant vice president status in Hanover Commercial Corporation, a
1978.
leader in factoring and commercial
Ms. Nutter joined the bank in finance, MH/Edie Investment Coun­
1973 and has been employed in var­ sel and Manufacturers Hanover
ious departments of the bank. She Consumer Services, Inc.

^

^

®

®

•

^
®

£
w

£

£

Q

0

bank in 1965, has been named assis­
tant vice president and executive
secretary.

(

North Dakota

Grafton Advancement Told

J.M . M cG inley, près., W illis to n
H. J . A rg u e , exec. d i r . , B ism a rck

Mandan Bank Names President
James E. Noonan has been
elected chairman of the board and
chief executive officer of First
Northwestern Bank of Mandan and
has been succeeded as president of
the bank by Gary A. Flaa. Mr.
Noonan has been with the bank
since 1960 and its president since
1972. Mr. Flaa, who was senior vice
president in charge of commercial
lending, joined the bank in 1976.

J.E. NOONAN

G.A. FLAA

bank since 1979. Ms. Warren also
began her career with the bank in
1979. Ms. Kelsch most recently
served as account technician II.
Kim Kaul has been appointed as a
new loan officer. A former federal
bank examiner, Mr. Kaul will be
working in the commercial banking
section and with Small Business Ad­
ministration loans.

Russell Erickson has been pro­
moted to assistant vice president of
the First American Bank & Trust of
Grafton, according to Dan Lessard,
president. Mr. Russell joined the
bank in 1981 after four years as a
correspondent loan officer with the
Bank of North Dakota.

Named V.P. and Cashier

Jim Hilgers has been named vice
president and cashier of First Bank
Bismarck, accor­
d in g to Bob
Westbee, bank
president. Mr.
H ilgers began
Two Promotions Told
his
b a n k in g
Kenneth D. Reno, president of career in 1969 at
United Bank of Bismarck (formerly First Bank Min­
State Bank of Burleigh County nehaha, Minn.,
Trust Company), has announced the and spent three
promotion of Tim Hennessy and y e a rs as an
j. HILGERS
a u d ito r w ith
Sandee Schmidt.
Mr. Hennessy, who joined the First Bank Systems, Minneapolis,
bank in 1977, has been named assis­ until he was transfereed to the main
tant vice president and manager of office of the National Bank of South
the installment loan department. Dakota. In 1981 he was transferred
Ms. Schmidt, who started with the to First Bank Bismarck.

Mr. Flaa’s promotion to president
establishes a line of succession in
preparation for Mr. Noonan’s retire­
EPOSIT and loan figures for North Dakota banks reporting $50
ment.
m illion or more deposits are shown in the chart below as reported at
Before joining the Mandan bank,
year-end.
Comparative figures for a year earlier also are reported.
Mr. Noonan was a county agent in
(Last three figures omitted)
Bottineau, Bowman and Mandan.
Mr. Flaa joined the Northwest
December 31, 1982
December 31, 1981
$386,033
1. Bank of North Dakota, Bism arck.........
Bancorporation organization at
$530,279 $329,523 $592,391
117,172
149,441
169,691
110,306
First National Bank in Grafton in 2. First Bk. of N. Dakota, F a rg o ...............
95,000
145,000
77,400
First Bank, Bismarck............................
164,900
1961. Before moving to Mandan, he 3.
140,761
82,007
122,720
83,539
4. First Natl. B&T, Fargo..........................
was vice president of Northwestern
76,392
5. First Natl. Bk., M in o t............................
138,759
87,923
121,259
State Bank in Northfield, Minn.,
93,844
96,067
122,531
6. Dakota Northwestern, Bism arck.........
135,910
119,002
66,904
105,384
62,005
and previously was cashier of First
7. First Natl., Grand Forks .......................
59,432
103,500
62,965
93,215
Northwestern State Bank in Silver 8. American St. B&T, W illis to n .................
68,154
103,242
68,802
99,959
9.
Fargo
Natl.
B
&
T
....................................
Bay, Minn.
72,155
88,327
59,083
10. Dakota Bk. & Tr., Fargo.........................
95,873

Largest North Dakota Banks

D

Bank of N.D. Names Five
Four Bank of North Dakota, Bis­
marck, employees have recently
been named to new positions, and
one appointment has been announced.
Julie Kubisiak, Kathy Lâcher,
Claudette Warren and Marilyn
Kelsch have all been named assis­
tant cashiers. Ms. Kubisiak was
originally employed as a clerk in the
student loan department of the
bank. Ms. Lâcher has been with the

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

11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

American B&T, Minot ..........................
First N.W. Natl., Mandan.......................
First Bk. of N.D., Grand Forks...............
First Natl., Jam estow n.........................
First Bk. of N.D., M in o t.........................
First Bk. of N.D., Jamestown ...............
Liberty Natl. B&T, Dickinson ...............
First American B&T, Grafton*...............
First Natl. B&T, Dickinson ...................
State Bk. of Burleigh Cnty., Bismarck ..
First Natl. B&T, Bottineau.....................
First Western State, M in o t...................
First Natl. Bank, Wahpeton .................
First Natl. Bank, Grafton.......................
Valley B&T, Grand Forks.......................
‘ formerly Walsh Co. B&T, Grafton

87,506
85,030
82,274
73,339
71,015
67,234
63,845
62,856
59,126
58,169
55,728
55,066
52,780
51,110
50,679

52,141
60,015
56,561
46,637
50,312
43,993
34,919
37,075
34,110
36,629
21,203
36,098
31,702
32,236
28,230

83,473
76,772
75,242
72,412 »
65,835
60,518
56,331
51,947
61,223
52,406
46,909
46,482
48,291
48,836
49,091

47,448
58,348
40,462
44,511
41,394
41,896
29,871
33,380
33,113
33,741
18,799
31,066
32,452
29,174
26,086

Northwestern Banker, March, 1983

56

North Dakota News

LEFT—Midwinter Break panel members were: Jim Walth, pres., Union Bk., Halliday; Arnold Paulson, pres., North Dakota Credit Union
League, Bismarck; Gary Dietz, sr. v.p., Metropolitan Fed’l. Sav. & Loan, Fargo, and Donald Green, exec, v.p., First Bk., Bismarck.
RIGHT—Conference speakers included Don Moriarty, 1st v.p., St. Louis Fed’l. Res. Bk.; John Shonsey, chmn., American Nat’l. Bk., Omaha,
and Herb Thorndal, pres., Bank of North Dakota.

Bank of North Dakota Hosts
Annual Midwinter Break
By STEVE BURCH
Associate Publisher
HE Bank of North Dakota host­
T
ed its eighth annual Midwinter
Break last month, however the 50
degree temperatures, sunshine and
green grass that greeted the bankers
may give merit to labeling future
conferences—Spring Break. Gover­
nor Allen Olson welcomed the bank­
ers to the conference and reminded
them that “Much of North Dakota’s
destiny lies in the success and
wisdom of our North Dakota Bank­
ers. It is that past success, diligence,
and wisdom that has carved our
dominant role in the national pro­
duction of food and fibre, but the
rapid changes taking place in the
financial community demand new
lessons be taught and learned as we
challenge the 80s. This conference is
an effort to help you help all North
Dakotans to a secure financial
future.
Mr. Donald Moriarty, first vice
president of the St. Louis Federal
Reserve Bank, offered an insight in­
to the state of the economy and
presented a fundamental outline of
the nation’s economic development
since World War II. He feels that
the budget deficit is the major factor
effecting our economy today and
predicts that long term interest
rates are not likely to lower. He also
feels the economic condition of the
country is in a dilemma which has
resulted in the business community

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

developing a lack of faith and con­
fidence in the central bank.
Mr. John Shonsey, chairman,
American National Bank of Omaha,
gave an optimistic livestock outlook
for 1983. He advised the bankers to
encourage grain producers to con­
sider using livestock production as a
means of balancing their portfolios.
He feels that the current drop in con­
sumer demand for red meat will im­
prove as the economic recovery con­
tinues. The Payment in Kind pro­
gram is another factor that provides
for increased profitability in 1983 by

providing the producer the oppor­
tunity to market inexpensive grain
through livestock, he suggested.
Mr. Hank Keohn, vice president
and director of futures Research at
Security Pacific Bank, Los Angeles,
commented on technological devel­
opments and life style changes that
effect bank marketing and position­
ing. He stated that there are at least
13 distinct household structures
with varying values and social at­
titudes in the country today. With
this degree of market segmentation,
he claims that the concept of “full
service banking” is a myth. Much to
the amazement of the audience, he
went on to challenge that the leader­
ship of the American Bankers Asso­
ciation during the 1970s lacked a

LEFT—Keith Magnusson, assoc, dir., NDBA, presents recognition award to NDBA
BankPac Chmn. Roger Berglund, exec, v.p., Dakota Western Bk., Bowman, for contribution
achievement to ABA BankPac. RIGHT—Prof. Paul Nadler, Rutgers University, “ calmly” ex­
plains Nadler’s Law #2.

conception of reality and was “bor­
ing.” To survive in the 1980s, senior
bank management will have to
adapt to change internally and spe­
cialize in offering market desired,
profitable products. He closed by
stating that inter-state banking is
inevitable. He feels that the mega­
banks will not need to purchase
smaller community banks to pene­
trate desired markets, but will do so
via technological systems.
Dr. Paul Nadler, professor of
finance, Rutgers University, praised
the role of the community banker in

his talk on present day banking. He
suggested that the independent
banker is in the best position for sur­
vival because he knows who his cus­
tomer is and what his customer
needs. He went on to caution, how­
ever, that it will be extremely impor­
tant for the smaller bank to control
operating costs and to be aware of
the cost of deposits. The tradition of
paying low rates to the saver to sup­
port low interest rates to the bor­
rower are over. He emphasized this
point in one of his infamous Nadler
laws by stating that “You can no

time in the training program and the
auditing department upon gradua­
Marilyn Kelsch has been pro- tion from college, and in 1975
m oted to a s ­
became the credit analyst in the
sistan t cashier
commercial loan department. Mr.
a t the stateBridgeford was named assistant
owned Bank of
vice president in 1980.
North Dakota,
Mr. Regstad began with the bank
Bismarck.
in 1960, serving most recently as a
Ms.
K elsch
personal banking officer. Mr. Lovas
joined the bank
joined the bank in 1979, becoming a
in 1978 as a
commercial loan officer in 1982. Mr.
clerk in the stu­
Anderson joined First Bank Fargo
dent loan divi­
M. KELSCH
in May, 1982 as credit review of­
sion.
ficer.
Mr. Wixo started his career in
1966, joining the bank in 1979. Mr.
Seven Promoted at
Morehead began with First Bank
Fargo in 1981 in the management
First Bank Fargo
trainee
program.
Seven promotions have been an­
nounced by Oliver H. Hagen, presi­
Cashier Named
dent of First Bank Fargo.
Edwin W. Chalus has been pro­
Joanne Lenning has been named
moted to vice president and man­ cashier at the First National Bank
ager of the Southwest Branch and of Oakes, accor­
John A. Bridgeford, Jr., was pro­ ding to bank
moted to vice president in the com­ President John
mercial loan department. Promoted Breitbach. Ms.
to assistant vice presidents were: Lenning joined
Gerald L. Regstad, personal bank­ the bank in 1973
ing; Steven G. Lovas, commercial and became as­
loans, and Mark A. Anderson, credit sistant cashier
review. Elected to officer status in 1975. She has
were Ronald Wixo, operations, and 19 years of bank­
Daniel Morehead, commercial loans. ing experience,
Mr. Chalus started with the First in c lu d in g e x ­
Bank System in 1967 as a manage­ perience with the First James River
ment trainee at the National Bank National Bank of Jamestown and
of South Dakota in Sioux Falls. He the First National Bank of Valley
transferred to First Bank in Min­ City, N.D.
neapolis in 1969 and from 1972 to
1975 was at First Southdale Na­
tional Bank in Edina, Minn. He Bank President Retires
Harold L. Johnson, president of
moved to the Fargo bank in 1977 as
assistant vice president in the com­ the First National Bank, Milnor,
recently retired. Mr. Johnson began
mercial loan department.
Mr. Bridgeford graduated from his career with the bank in 1952 and
North Dakota State University with served as chief operating officer
a business degree in 1974. He spent since 1961.

Promotion Announced


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

North Dakota News
57
longer treat the customer like a king
and pay him top dollar too!”
The conference was brought to a
close with a panel discussion featur­
ing members from the savings and
loan, credit union league and com­
mercial banking industries. A
thumbnail sketch of the question
and answer session shows the credit
unions and savings and loans want­
ing more commercial banking privile­
ges with the bankers charging “if you
want to be a bank, then you should
pay the price a bank pays and apply
for a state or national charter. ’’
□

Jamestown Promotions Told
Following the annual meeting of
First National Bank of Jamestown,
the promotions
of Shirley J.
Herring to vice
president & in­
surance m ana­
ger, and Michael
B. Unhjem and
Daniel R. Voll­
mer to assistant
vice presidents
were announced.
S.J. HERRING
Ms. Herring

'

1I > Ä

M.B. UNHJEM

D.R. VOLLMER

joined First National in 1959 and
has held various positions, most re­
cently as assistant vice president
and manager of James River Insur­
ance Agency.
Prior to joining the bank, Mr.
Unhjem was in private law practice
in Jamestown. Mr. Vollmer joined
the bank in July, 1980 and has a
degree from North Dakota State
University in agriculture.

Upcoming NDBA Dates
The North Dakota Bankers Asso­
ciation will be holding its Agricul­
tural Credit Conference March 16-17
in Fargo.
April 26-28 will be the NDBA
Washington Legislative and Admin­
istrative Conference, Hyatt Regency
on Capitol Hill.
Northwestern Banker, March, 1983

58
(

Wyoming
H.A. H itch, pres., Casper
M. C. M u n d e ll, exec. d i r . , Laram ie

V
Two Elected in Evanston

Casper Appointments Told

Lee S. Barker has been elected ex­
ecutive vice president and Karen
Byrd, assistant vice president, at
First Wyoming Bank—Evanston.
Mr. Barker has been with the
bank five years with primary re­
sponsibilities as senior lending of­
ficer.
Ms. Byrd, who has also been with
the bank five years, supervises the
real estate lending department.

Robert W. Miracle, chief ex­
ecutive director of the Wyoming Na­
tional Bank of Casper, recently an­
nounced the following:
Kip McNinch and John E. Hildt
have been promoted to vice presi­
dent. Mr. McNinch becomes assis­
tant manager of the real estate
department, and Mr. Hildt takes on
the responsibilities of investment of­
ficer of the trust department.
Louise M. Johnson and Ray
Koehler have become assistant vice
presidents. Ms. Johnson, a bank
employee since 1977, becomes hu­
man resources director. Mr. Koehler,

Acquisition ApprovedNew Service Offered

dealer department manager in the ^
installment loan department, most ^
recently served in credit and collec­
tion supervision for a large motor
company.
Phyllis Hedrick and Elaine York ^
have been elected assistant invest­
ment officers, and Montie R. Ryan,
Richard M. Schell, Nola Galloway,
and Dory Graf have been elected of­
ficers in trust operations, commer- 0
cial loans, residential loans and in
the trust department, respectively.

Certification Told
Robert Ward, chief auditor of the #
Affiliated Bank Corporation of
Wyoming, a Casper-based holding
company, has been certified as a
chartered bank auditor by the Bank
Administration Institute. He is one •
of 143 internal bank auditors to
qualify in 1982 for the BAI certifica­
tion. Successful candidates com­
pleted four comprehensive examina­
tions to establish expertise in the ®
areas of internal auditing, accoun­
ting, business law, economics and
management and organization.

First Wyoming Bancorporation, a
multi-bank holding company, has re­
ceived Federal Reserve Board ap­
proval to acquire the State Bank of
Big Piney. An application to acquire
EPOSIT and loan figures for Wyoming banks reporting deposits of
the Bank of Laramie is currently
$40 m illion or more at year-end are shown in the chart below. Com­
pending approval. Additionally, the
parative
figures from a year ago are featured.
Federal Reserve Board has approved
(Last three figures omitted)
the application whereby the com­
pany will sell its First Wyoming
December 31, 1982
December 31, 1981
1. First Interstate, Casper*.......................
Bank, N.A.-Laramie affiliate,
$263,878 $183,441
$245,761
$180,869
2. Wyoming Natl., Casper........................
245,756
163,398
245,723
filiate.
161,645
Stockmen’s B&T, G ille tte .....................
153,239
109,777
149,504
100,904
The company also recently con­ 3.
4. Rock Springs N a tl................................
102,693
34,915
99,291
35,586
tracted to become an authorized 5.
First Natl. B&T, Cheyenne ...................
98,636
63,742
98,556
55,735
payment agency for Mountain Bell. 6. American Natl., Cheyenne...................
94,861
61,547
82,441
54,567
Beginning in February, customers 7. First Interstate, Laram ie*.....................
92,147
42,787
80,213
41,452
82,002
28,996
40,671
19,117
were able to pay their telephone bills 8. Hilltop Natl. Bank, Casper ...................
9. First Natl. Bank, G ille tte .......................
81,055
31,753
61,179
28,666
in person at 22 First Wyoming 10.
First Interstate Bank, Riverton*...........
80,816
57,695
80,826
59,560
Banks throughout the state.
11. Bank of Commerce, Sheridan...............
79,574
47,849
75,194
48,163

Largest Banks in Wyoming

D

Laramie Officer Elected
Mike Bohl has been elected
customer service officer at Bank of
Laramie. The announcement was
made in January of this year.

Two Promotions Told
Bernard A. Spielman has been
promoted to vice president and
Caren V. Smith to money manager
at First Wyoming Bank, N.A., Sher­
idan.
Mr. Spielman joined the bank in
1977 as an instalment loan officer,
and was named assistant vice presi­
dent in 1981. Ms Smith joined in
1977 as instalment loan secretary.

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

First Natl. Bank, Powell........................
First Wyoming Bank-Cody...................
Converse Cty. Bank, Douglas...............
First Natl., Sheridan ............................
Shoshone First Natl. Bank, Cody.........
Jackson State Bank..............................
First Wyoming Bk., NA, Cheyenne.......
Stockgrowers State Bank, Worland . . . .
First Natl. Bank, Evanston...................
First Wyoming Bk., N.A., Kemmerer . . .
Rawlins Natl. Bank ..............................
First Wyoming-Evanston .....................
First Wyoming Bank, Lander*.............
Citizens Natl., B&T, Torrington.............
First Security Bank, Rock Springs.......
American Natl., Riverton.......................
North Side State, Rock S prings...........
Bank of Laramie....................................
First Natl., W orland..............................
‘ formerly First Natl., Casper
‘ formerly First Natl, Laramie
‘ formerly First Natl., Riverton
‘ formerly First Natl. Lander

67,236
62,914
62,187
61,222
58,631
58,328
56,739
55,570
54,363
53,711
51,180
50,063
48,644
47,200
45,065
44,702
44,225
42,503
40,592

32,917
33,283
26,325
41,667
20,516
44,348
40,155
30,012
21,226
39,005
29,862
29,082
25,160
36,894
28,988
32,595
15,623
23,253
25,427

60,156
47,694
58,051
56,465
51,669
53,903
53,244
47,369
50,599
62,409
53,030
48,378
48,581
45,484
36,953
42,947
42,601
40,603
37,577

29,713
31,123
26,224
35,900
19,043
41,728
43,229
28,226
19,246
44,079
29,364
25,993
26,218
35,057
24,839
29,133
14,731
22,647
23,558

59

others to officer positions.
Promoted was George T. Trayer
to vice president and Richard H.
McElroy, Marcus Mitchell, Daniel
A. Rich and William Schurr to assis­
tant vice president positions. The
bank’s new officers are Kenneth B.
Buckius, Mark Hughes, Kathy Jakelski, Douglas Pogge, Kay L.
Rains, Robert L. Von Hess and Gary
Williamson.

Colorado
A.R. Koeneke, ch m n . & près., Rifle
D. A . C h ildears, exec. m g r., Denver

Senior V.P. Named
Bruce W. Hulbert, president and
chief executive officer of First In­
terstate Bank of Denver, N.A., has
announced the promotion of G.
Michael Phillips to senior vice presi­
dent.
Mr. Phillips, manager of the trust
division, was vice president prior to
his promotion. He came to the bank
from First Interstate Bank of Ari­
zona, where he was senior trust ad­
ministrator.

Denver Bank Moves
Cherry Creek National Bank,
Denver, has announced the move of
the bank into the new Cherry Creek
National Bank Building, an eight
story, 125,000 square foot facility at
East First Avenue and St. Paul. The
building was designed and construc­
ted by Bill L. Walters and The
Walters Companies.

New Chairman Appointed
Dr. Richard Grant has been ap­
pointed chairman of the board of
South Denver Bankshares, Ltd., ac­
cording to C.E. Snow, president and
chief executive officer.
Mr. Grant, who has been on the
board since 1979, is executive direc­
tor of both the Medical Group Man­
agement Association and the Center
for Research in Ambulatory Health
Care Administration.

Joins IntraWest
Delores Tyner, a securities
specialist with Boettcher and Com­
pany for the past 15 years, has joined
the investment department of IntraWest Bank of Denver as an account
executive. She will specialize in the
marketing of municipal and govern­
ment securities.

Boulder Bank Elects One
Edward Woodward, Jr., has been
elected vice president of Arapahoe
National Bank in Boulder. He joined

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

the bank in 1975 as a loan officer,
following three years in commercial
banking as a branch manager for
Bankers Trust in New York.

Denver Appointments Told
The board of directors of Central
Bank of Denver recently promoted
five staff members and elected seven

New Director Elected
David McGoldrick has been
elected to the board of directors of
Colorado National Bank - North­
east, Denver. Mr. McGoldrick is
president, domestic group, Sam­
sonite Corporation.

Largest Banks in Colorado
EPOSIT and loan figures for Colorado banks reporting deposits of
D
$70 m illion or more at year-end are shown in the chart below. Com­
parative figures from a year ago are featured.
(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.

First Natl., Denver................................
United Bank, Denver............................
Colorado Natl., Denver.........................
Central Bank of Denver.........................
Denver Natl. B a n k................................
First Interstate Bank, Denver*.............
First Natl., Colorado S p rin gs...............
First Interstate, Fort Collins, N.A.* . . . .
Metro Natl., Denver..............................
University Natl., Denver........................
Jefferson B&T, Lakewood.....................
Exchange National, Colorado Springs .
First Natl., B o u ld e r..............................
Colorado Springs Natl. Bk.....................
First Natl. Bank, Englewood.................
Guaranty B&T, Denver..........................
United Bk. of Ft. Collins .......................
First Natl., Greeley................................
U.S. Bk. of Grand J u n c tio n ...................
Greeley Natl. Bank................................
First Bank of Westland, N.A..................
First Natl., G olden................................
First Natl., Grand Junction...................
Cherry Creek Natl. Bk, D enver.............
Colorado State Bank, Denver...............
First Interstate Bank, Englewood .......
Colorado Natl. Bank-Pueblo*...............
Mountain St. Bk., Denver......................
Central Bank, Colorado Springs...........
United Bank, Greeley............................
First Natl., Glenwood Springs .............
Pueblo B&T, Pueblo..............................
Lakeside Natl. Bank, Denver.................
United Bank, L ittle to n ..........................
Natl. City Bank, Denver........................
First Natl. Bank, Longmont ...............
Security State, Sterling.......................
First Natl. Bank, Loveland .................
Mesa United Bank, Grand Junction .. .
‘ formerly American Natl., Denver
‘ formerly First Natl., Fort Collins
‘ formerly First Natl., Pueblo

December 31, 1981
December 31, 1982
Loans
Loans Deposits
Deposits
$1,671,914 $1,148,421 $1,283,816 $1,132,182
1,660,198 1,395,594 1,595,979 1,203,695
646,740
882,992
758,984
947,723
561,711
754,980
588,478
823,050
134,244
281,106
158,305
291,519
206,487
161,331
258,482
183,645
218,092
147,040
160,546
227,399
155,817
159,112
171,019
196,702
120,600
177,600
180,900
137,700
115,466
157,046
130,029
172,861
128,751
127,903
157,201
171,794
105,702
168,632
110,703
167,705
108,796
108,971
148,426
151,643
87,508
96,794
128,662
147,066
92,821
108,908
135,961
146,886
87,104
97,092
114,326
133,463
96,482
108,772
122,001
130,615
86,930
118,554
130,106
91,769
89,910
118,287
88,205
124,495
84,895
127,930
100,823
119,826
67,887
86,462
80,895
112,276
94,907
69,148
68,059
104,676
78,296
79,369
100,486
102,885
63,358
84,275
76,621
102,508
97,467
43,653
45,064
101,742
72,071
100,413
73,690
99,735
58,685
94,937
65,425
98,169
49,985
86,748
94,048
53,783
64,280
80,623
65,186
92,093
78,262
56,751
66,384
91,703
63,625
80,270
64,628
89,456
43,102
72,744
47,167
88,949
75,545
90,340
88,347
60,632
48,657
68,739
69,577
87,716
51,006
56,634
70,561
84,248
38,598
69,283
79,647
39,751
70,534
48,183
78,086
46,999
45,005
69,020
55,530
77,399
52,028
72,137
70,254
55,481

Northwestern Banker, March, 1983

60

Colorado News

started in 1982 as a marketing of­
ficer.
South Denver National Bank has
Also appointed to officer status
announced the appointment of Den­
were:
Carolyn L. Hamil, investment;
nis D. Dobson to the board. Mr.
Pat
Van
Hooser, commercial bank­
Dobson is vice president and chief
ing;
Colleen
A. Schwarz, personal
financial officer of South Denver banking; Richard
W. Jacobs, trust
Bankshares, Ltd., and manages the minerals, and Lili A. Vasilefffinancial matters of three single Kressen, commercial banking.
bank holding companies controlling
South Denver National Bank, Cher­
ry Creek National Bank and the Two Elected in Montrose
Bank of Westminster.
United Bank of Montrose has
elected Delmer P. Keating as senior
vice president and Marcus W. Catlin
Elected in Glenwood
Kenneth I. Molcsan has been as ag loan officer.
elected vice president in charge of
loan administration at Colorado Na­
tional Bank - Glenwood. He joined
the bank in 1981 as a loan officer
and previously was at Firstbank of
Vail where he was in loans for four
years.

Appointed in Denver

Two Join Fort Collins Bank
Colorado National Bank - Fort
Collins has announced the addition
of Bob G. Morgan as vice president
of commercial loans and John M.
Croissant as loan officer. Together
they add 18 years of banking ex­
perience.
Mr. Morgan has held key manage­
ment positions at banks in Greeley,
Fort Collins and Roswell, New Mex­
ico.

Dividend Declared
United Banks of Colorado, Inc., a
multi bank holding company, has
declared a first quarter dividend on
its adjustable rate cumulative pre­
ferred stock, Series A, at the rate of
93/4 percent (46 cents per share),
payable March 1 to shareholders of
record February 11. This preferred
stock was recently issued on Jan­
uary 27, 1983.

Appointed in Denver
United Bank of Denver has an­
nounced the appointments of Dennis
P. Wolf to vice president and James
B. Bills, John R. Schinn and Diane
D. Simpson to assistant vice presi­
dent.
Mr. Wolf joined UBD in 1981 and
was named assistant vice president
later that year. Mr. Bills has been a
member of the bank’s staff since
1979. Mr. Schinn joined in May,
1982, after three years with United
Banks of Colorado. Ms. Simpson

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

IntraWest Promotes Three
Theodore D. Brown, chairman of
the board and chief executive officer
of IntraWest Financial Corporation,
has announced the promotions of
Kathleen J. Wichern, Gordon R.
Nishimoto and Bradley J. Walcher.
Ms. Wichern, formerly vice presi­
dent in the financial industries
department of IntraWest Bank of
Denver, has been named vice president of the corporation’s treasury
department. Mr. Nishimoto, who
joined the corporation two years
ago, has been named corporation
assistant vice president in the
auditing department. Mr. Walcher
has been named staff auditor in the
internal auditing department. He is
a former staff accountant with the
Jefferson County treasurer’s office.

•

•

®

®

Elected to Cache Board
J. Barney Flood, chairman of the f
board, recently announced the ap­
Mr. Keating joined the bank in pointment of Joel C. Rothman to the
1977 as vice president in charge of board of directors of Cache National
agribusiness loans. His responsibil­ Bank of Greeley.
ities will also include involvement in
Employed at Shupe Bros. Truck- £
overall bank credit management.
ing since June of 1968, Mr. Roth­
Mr. Catlin joined the bank in Jan­ man became an officer and director
uary 1, 1983, after an active and suc­ of the corporation in 1971.
cessful career in local real estate.
D.P. KEATING

* M.W. CATLIN

Appointments Announced

Six Advanced At
R.K. Hudson, president of the Na­ IntraWest Denver

tional City Bank, Denver, has an­
nounced the appointment of Holly
G. Clifford as controller, and Bar­
bara Hyde and Shirley Mueller as
assistant vice presidents. Named to
officer status were: Ruth Roberts,
marketing director; Katherine Loewen, personal trust, and Barbara
McGovern, operations.

New President Named
William F. Lloyd has been elected
president of Colorado National
Bank-South. Mr. Lloyd replaces
Dennis Peterson, who resigned re­
cently, according to Ivan R. Sweetman, chairman of the bank’s board
of directors. Previously vice presi­
dent and loan department manager
of Colorado National Bank-North­
east, Mr. Lloyd was also formerly
president of the Greenwood, Arapa­
hoe and Governors Ranch Industrial
Banks, members of the associated
Industrial Banks of Colorado.

The board of directors of In­
traWest Bank of Denver has elected ®
six new vice presidents, according to
Robert E. Lee, president and chief
executive officer.
Ralph Arnold, formerly assistant
vice president in corporate banking, •
joined IntraW est Bank of Denver in
1981. He has been vice president of
special loans.
Oliver J. Barr and John R. Cormey, senior trust officers, have been "
named vice presidents and trust of­
ficers of trust fixed income manage­
ment.
Andrew C. Kazan, formerly assis- ^
tant vice president, has been named m
vice president of individual financial
services. He is also an instructor for
the Denver chapter of the American
Institute of Banking.
^
Gregory A. McCann and Owen L.
Smart, former assistant vice pres­
idents, have been named vice pres­
idents. Mr. McCann is assigned to
real estate banking and Mr. Smart £
to individual financial services.

61

Depend on IntraWest Computer
Services for the financial systems
you need to compete in the new
environment of fast-paced change
and deregulation.
Your bank’s needs are special,
which is why we offer some very
specialized services in our Financial
Data Processing package.
And as we change to bring you
new technological advances, our
commitment to bring you the best
personal attention will remain strong
and o n -lin e .
IntraWest Computer Services,
providing financial systems for the
way you do business today— and
tomorrow. Call Joe Phernetton
today for more information.

EntraWestf/iS
Banks
IntraWest Bank of Denver
Computer Services
633 Seventeenth Street
Denver, Colorado 80270
303 293-5491
Member FDIC
Member IntraWest Financial Corporation


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

Northwestern Banker, March, 1983

62

Billings Bankers Advanced
First Bank Billings has elected
Matt Vertin assistant vice president
and manager of
the indirect loan
department, Sue
Moses commer­
cial loan officer
and Patt Leikam
installment loan
officer. Mr. Ver­
tin joined the
the Union Bank of California as a bank in 1961 as
Join Bozeman Bank
trainee
prior to joining First North­ a field credit
Darrell L. Berger and Randy
western
in 1979. Mr. Walter was an a d ju s te r, Ms.
M' VERTIN
Smith have joined the staff of First
assistant
manager
of
the
instalment
National Bank of Bozeman, accor­
ding to Harry W. Newlon, president. loan department and head of the real
Mr. Berger, a commercial loan of­ estate department at First National
ficer, was most recently with Com- Bank of Lewistown, before joining
the bank in Billings in 1978.

Elected in Great Falls

D.L. BERGER

R. SMITH

Cheryl Dunshee has been named
real estate loan officer at Village
Bank, Great Falls. She has been a
bank employee since 1977. Dick
S. MOSES
P. LEIKAM
Ecklund, president of Ecklund Inc.
and Ecklund’s Appliance and TV, Moses in 1980 as a management
has been elected to the bank’s board. trainee, and Ms. Leikam in 1969 as
an account reference clerk.

Promoted in Cut Bank

Clarence S. “Snuff” Frisbee and
Alan Berkram have been promoted
to vice presidents of the First Na­
tional Bank, Cut Bank, according to
Art Wiedeman, Jr., executive vice
president.
Mr. Frisbee, who has been with
the bank since 1980, is in charge of
Havre Bank Names Two
the real estate department. He
Robert A. Wanago has been named previously worked for the Havre
senior vice president and second of­ Federal Savings & Loan and was
ficer and Victor D. Harwood has branch manager of the Cut Bank
been elected vice president and branch of the First Federal Savings
cashier, administrative department, and Loan of Kalispell.
at The First National Bank in
Mr. Berkram, in charge of the
Havre.
agricultural department, previously
worked at the Toole County State
Malta Director Elected
Bank in Shelby before joining First
Art Lundstrom, owner of A rt’s National in 1976.
Furniture in Malta, has been elected
to the board of directors of First
Security Bank, Malta.

merce Savings Scottsbluff Inc.,
Scottsbluff, Neb. Mr. Smith, who
joined First Bank System in 1978 as
an ag lender with First Bank Havre,
is vice president and assistant
manager of commercial loans.

Five Promoted in Billings
F irst N orthw estern National
Bank of Billings’ board of directors
has promoted five staff members.
Two officers, Linda Jahnke and
Larry Walter, were named assistant
vice presidents. Newly elected of­
ficers are Laura Hamma, operations;
Joy Nelson, credit, and Wade Pehl,
agricultural loans.
Ms. Jahnke previously was with

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

New Officer Named
Joseph A. Zahn, Jr., has recently
been named in­
stalment loan of­
ficer of Pioneer
Bank, Billings.
A graduate of
E .M .C .,
M r.
Zahn
jo in e d
Pioneer bank in
1981. He has
been active in
the Billings real
e sta te m arket
JA- ZAHN
since 1974 and is in real estate and
consumer lending at the bank.

1983 Montana Group Meetings

Group
1
6
7A & 7B
4
3A & 3B
2

Date
May 5
May 6
May
May
May
May

7
10
14
17

Location
Golf Country Club, Havre
Deer Lodge Community Center
& Elks Club, Deer Lodge
Yellowstone Inn, Livingston
Froid
Elks Club, Missoula
Forsyth Country Club

Montana News

•

New Quarters For Miles City Bank

63

New President Announced
Charles D. Shonkwiler, former
vice president of the Ravalli County
Bank, Hamilton, has been elected
bank president. He succeeds L.N.
Shonkwiler, who was elected chair­
man of the board and chief executive
officer. Charles Shonkwiler was em­
ployed by Seattle First National
Bank, Spokane and Eastern divi­
sion, before returning to Hamilton
in 1981.

Four Named in Missoula

#

THE First Citizens Bank of Miles City recently moved into its new quarters at the corner of
Montana and Main. The new building, which provides 5,000 sq. ft. of main floor banking, in­
cludes expanded drive-in facilities, a main floor customer vault, drive-in night depository,
sit-down teller stations and automatic 24-hour Mini-bank. The New Old-Fashioned Bank
was designed by Drake-Gustafson and Assoc, of Billings, while the interior of oak and
brass was completed by Claus Heppner and Assoc, of Denver, Colo.

0

Two Named in Lewistown

4)

Don Poush was promoted to
assistant vice president-marketing
and commercial loans, and Karin
Longshore was named accounting
officer at Northwestern Bank in
Lewistown.

Mr. Poush has worked for the
Northwestern Bank since 1979 as
commercial loan officer and has his
masters degree from the University
of Northern Colorado. Mrs. Long­
shore began working at the bank in
1973.

Largest Banks in Montana
EPOSIT and loan figures for Montana banks reporting $50 m illion or
D
more deposits are shown in the chart below as reported at year-end.
Comparative figures for a year earlier also are reported.
(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.

First Bank N.A., Billings* ...................
Security Bk., NA, B illin g s ...................
First Natl., Great Falls.........................
First Northwestern Natl., Billings . . . .
Northwestern Natl., Great F a lls.........
First Bank—B u tte * ............................
First Bk.-Western Montana, N.A..........
First Natl., Bozeman..........................
First Interstate Bk. of Kalispell .........
First Natl., Anaconda .........................
First Natl. Montana Bk., Missoula . . . .
First Bank, Helena..............................
First Security, Bozeman.....................
First Interstate Bank, Great Falls* . . .
Northwestern Bk., Helena...................
First Northwestern, Kalispell.............
First Natl., Miles C ity..........................
First Security B&T, Miles C ity.............
First Bank Havre* ..............................
First Natl., Lewistown.........................
Northwestern Bank, Lewistown.........
Shelby First State Bank .....................
Richland Natl. Bank, Sidney...............
First Natl., Glendive............................
‘ formerly Midland Natl., Billings
‘ formerly First Metals Bk., Butte
‘ formerly Montana Bank, Great Falls
‘ formerly First Natl., Havre


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

December 31, 1982
$231,986 $224,698
154,640
230,586
118,817
158,766
156,493
130,903
88,805
120,895
111,574
61,398
109,562
68,706
100,984
72,844
68,277
98,928
95,984
44,312
94,882
64,297
90,235
69,123
88,997
61,319
87,056
59,949
52,265
86,508
75,631
51,029
74,081
51,098
40,876
73,629
57,852
67,813
54,142
64,213
54,642
39,260
52,671
33,074
51,650
30,839
50,146
36,165

December 31, 1981
$225,472 $168,878
219,972
143,951
75,934
150,418
161,830
121,766
79,728
108,511
102,604
37,327
62,503
100,815
96,041
65,602
85,284
63,047
47,737
85,635
65,185
95,556
46,341
84,320
81,731
55,458
63,506
73,170
75,650
47,540
70,264
48,909
72,674
46,875
36,235
69,691
53,344
43,831
47,647
64,530
52,647
40,086
45,423
27,730
53,842
24,743
34,844
46,763

At First Bank Southside, Mis­
soula, James R. “Rick” Scanlan was
promoted to vice president/compliance officer; Thomas W. Wagner
was promoted to vice president/
manager of the instalment loan
department; Constance M. Centoni
was promoted to vice president/
cashier in charge of operations and
personnel, and David F. Bourgeois
was elected instalment loan officer
and assistant manager of the instal­
ment loan department.
Mr. Scanlan started with First
Bank Southside in 1976. Mr. Wag­
ner transferred to the bank in 1980
from First Bank Aberdeen. Ms. Cen­
toni began her career with the bank
in 1970. Mr. Bourgeois just started
in October, 1982.

ABA Awards Fellowships
To University Professors
Five u n iv e rs ity p ro fe sso rs
recognized for their educational con­
tribution in finance will receive
Ayres Fellowships for the 1983 ses­
sion of the American Bankers Asso­
ciation’s Stonier Graduate School of
Banking.
Tuition, accommodations and a
stipend to cover personal expenses
are included in the fellowship.
Academicians who will receive the
fellowships are: Arlyn R. Rubash,
Bradley University, Peoria, 111.;
Robert Schweitzer, University of
Delaware, Newark; James W. Kolari, Texas A&M University, College
Station; William C. Hunter, Emory
University, Atlanta, and Ronald W.
Spahr, University of Wyoming,
Laramie.
Ayres Fellows will attend SGSB’s
two-week resident session to be held
June 5-17 on the campus of Rutgers,
the State University, in New Bruns­
wick, N.J.
Northwestern Banker, March, 1983

64

“I t ’s n o t u n co m m o n
f o r us to h a n d le over
$300 m illio n in
in v e stm e n t
tra n sa c tio n s
each day. ”
B ob B illm e y e r
U.S. N a tio n a l/
In v e stm e n t D iv is io n

Good investm ent ad v ice —
from one banker to another.
Another reason to depend on us.

Main Bank
20th & Farnam
536-2000
Regency Office
10010 Regency Circle
536-2400
Central Park Plaza Office
One Central Park Plaza
536-2600

The Investm ent Division of the U.S. National
Bank speaks the same language as the c o rre ­
spondent banker. And since w e’re in the same
business, w e understand the pressures and
challenges bankers are facing day after day.
The U.S. National has been by the side of
correspondent banks for years, helping maximize
excess funds w ith aggressive investm ent
services. And this com m itm ent will continue for
many years to come.
By team ing up w ith the full-service capabilities
of the U.S. National, and the enorm ous resources
of our BANCO affiliates, co rresp o n d en t banks
can reach deeply into investm ent opportunities
not available by w orking alone. Aggressive
and productive investm ent advice. A good
reason for corresp o n d en t banks to depend on us.
For more information, call Bob Billmeyer.
Toll free. Nebraska —1-800-642-8270
Bordering S ta te s -1-800-228-9225

US National Bank
of Omaha

Member FDIC
Affiliate of Northwest
Bancorporation
DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Governor Signs Multi-Bank H.C. Bill
FTER a battle that lasted more
A
than a decade, the Nebraska
legislature last month passed a bill
that permits the formation of multi­
bank holding companies in the state.
It was a long struggle, bitterly op­
posed by the several hundred com­
munity banks who are members of
the Nebraska Independent Bankers
Association. NIBA President Den­
nis Brewster, president of Butte
State Bank, said following the 30-17
vote that the independent bankers
are “studying the options” as to fur­
ther possible action that might be
taken.
As signed by Governor Robert
Kerrey, LB 58 authorizes the forma­
tion of multi-bank holding com­
panies in Nebraska, thus amending
Section 8-903 of the Nebraska
Statutes, 1943, which prohibited
such holding companies. The bill as
amended authorizes any mulit-bank
holding company in the state to con­
trol up to nine banks in Nebraska
and each holding company to hold
no more than 9% of the total depos­
its of state and national banks in
Nebraska and savings and loans,
based on the most recent calendar
year-end report of deposits.
Although the final figures for
total deposits in the state have not
yet been recorded, it is believed the
9% figure will equal approximately
$1.5 billion deposits.
In addition, the bill grandfathers
any out-of-state holding company in
Nebraska that exists on the effec­
tive date of the act. This applies on­
ly to Northwest Bancorporation of
Minneapolis, which owns United
States National Bank, Northwest­
ern National Bank and Center Bank,
all in Omaha; First National Bank of
Hastings, and Nortwestern Nation­
al Bank of Norfolk, which jointly
have an estimated $790 million
deposits.
One section of the bill authorizes

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

any bank to have up to five fullservice detached offices, an increase
of three over existing authority. It
permits a bank to have three in
1983, four in 1984 and five by 1985
and thereafter. All must be within
the corporate limits of the city
where the main bank is located, and
one must be within three miles of the
main bank (present law).
A holding company may not pur­
chase a state or national chartered
bank that has been in existence for
less than five years. However, the
new act does permit a bank to ac­
quire a coop credit association with­
in the county of the bank’s main of­
fice or contiguous county with the
approval of the Nebraska director of
banking and approval of the majori­
ty of the coop’s board.
A late amendment bid by Sen. R.
Wiley Remmers lost 19-23. It would
have allowed bordering states to be
involved in multibank operations in
Nebraska if those same states recip­
rocated the privilege to Nebraska
banks. No bordering states have
such laws. Senators stated the
amendment had been made on be­
half of Hawkeye Bancorporation of
Des Moines, la., whose president,
Paul Dunlap, is a native Nebraskan
and former banker in his home state.
Other bills in the legislative hop­
per in Lincoln at press time included
two of special significance to banks.
LB454 was out of committee and
had the support of the Nebraska
Bankers Association. That bill
would eliminate the interest-rate
ceiling on credit cards, and reported­
ly was part of the trade-off from the
legislature for enactment of LB 58.
Considerable debate is expected
over LB 117, the so-called “double
jeopardy” bill, which would by-pass
existing UCC statutes and give clear
title to buyers of farm products or
equipment, even though the seller
might have a lien against the pro­

65
duct. In North Dakota, a compro­
mise was struck on this same bill by
the North Dakota Bankers Associa­
tion by requiring elevator operators
to require grain sellers to sign a cer­
tificate of ownership. The seller
must show on the certificate the
name of any lienholder. The elevator
then would have to issue the check
to the seller and the lienholder joint­
ly. If no lienholder is listed, it is then
the elevator’s responsibility to
check with the Secretary of State’s
central filing office to determine if
there is a lien. If, in fact, one ap­
pears, then the same check pro­
cedure must be followed.
LB 136, introduced in a variety of
state legislatures this year by real
estate and insurance interests try­
ing to keep bankers from being in
either business, was killed. LB 434,
which would make it mandatory for
the NBA to let S&Ls use the ATMs
of NETS, is opposed by NBA, since
the association objects to the man­
datory feature. The bill was in com­
mittee at press time.
□

Joins Hay Springs Bank
Tim Lane has recently joined the
Northwestern State Bank of Hay
Springs as assistant vice president
and ag lending officer.

Appointed in O’Neill
J.B. Grady, president of the
O’Neill National Bank, O’Neill, has
announced the appointment of Cin­
dy Syfie Carlson as assistant cash­
ier. Mrs. Carlson, who has been with
the bank since 1977, will be in
charge of the bookkeeping depart­
ment.

Elected in Holdrege
Roger Rikli has been elected assis­
tant cashier in charge of compliance
at The First National Bank of
Holdredge. He will also be a loan of­
ficer and have responsibilities in the
bank’s operations.

Elected in Brule
Robert A. Sestak has been elected
assistant cashier by the board of
directors of Bank of Brule, announc­
ed Melvin Adams, chairman of the
Adams Banks.
Mr. Sestak is a 1981 graduate of
Kearney State College.
Northwestern Banker, March, 1983

66

CORPORATE reorganization
A
and promotions for several ex­
ecutive officers were announced last

the executive committee, marketing ^
division, of the American BankersW
Association.
Mr. O’Neal, 42, is a graduate of
the University of Dayton and received
his MBA from Miami University of £
Ohio. Mr. O’Neal began his banking
career in 1963 and was with a Chi­
cago bank for 14 years. He then was
affiliated with an insurance holding
company. He joined the First Na- 0
tional Bank in September, 1981 as a
director and vice president.
Mr. Doody, 51, graduated from
Kearney State College and joined
First National Bank in June, 1957. £
He has served on the executive com­
mittee of the Bankcard Division of
the American Bankers Association.
Mr. Eliopoulous, 38, graduated
from Creighton University and re- #
ceived his Masters from the Uni­
versity of Nebraska in Lincoln. He
joined the bank in March, 1969.
Mr. Fries, 38, graduated from the
University of Wisconsin and joined #
the First National Bank in June,
1975, after having spent eight years
with a Wisconsin bank.
Mr. Johnson, 54, received his law
degree from the University of Ne- •
braska in 1958, and after practicing
law for seven years, joined First Na­
tional Bank in July, 1962.
Mr. Summerlin, 48, is a graduate
of Wake Forest University. After •
spending ten years in banking in
Virginia, he joined the First Na­
tional Bank in June, 1975.
* * *

tions - headed by Elias J. Eliopoulos,
senior vice president and director.
5. Trust, Pension and Profit Shar­
month by F. Phillips Giltner, presi­ ing - headed by Robert E. Johnson,
dent of First National Bank of Jr., senior vice president and direc­
Omaha. Promoted to executive vice tor.
presidents were: Bruce Lauritzen, J.
Mr. Lauritzen, 39, is a graduate of
William Henry, and Dennis A. Princeton University and received
O’Neal. Promoted to senior vice his MBA from the University of Vir­
presidents were: James L. Doody, ginia. He joined First National Bank
Elias J. Eliopoulos, and Robert E. in 1967. He also serves as treasurer
Johnson, Jr. Elected to the board of of the bank’s holding company. He
directors was Charles H. Fries, Jr.
is a past member of the executive
The bank is now organized into council of the Nebraska Bankers
five divisions as follows:
Association and currently serves as
1.
Bankcard - headed by James L.president of more than a dozen other
Doody, senior vice president and banking and insurance corporations
director.
in Iowa and Nebraska.
2.
Corporate and Financial In­ Mr. Henry, 40, is a graduate of
stitutions - headed by Charles H. the University of Nebraska, Lincoln,
Fries, Jr., vice president and direc­ and did graduate work at the Uni­
tor.
versity of Nebraska at Omaha. Mr.
3.
Retail Banking - headed by Vol-Henry joined the Bank in Septem­
lis E. Summerlin, vice president and ber, 1964. He presently serves on
director.
the executive council of the
The board of directors of Douglas
4. Data Processing and Opera- Nebraska Bankers Association and
County Bank & Trust Company re­
cently met and made the following
promotions:
Vergene L.
Juergens was
promoted to as­
sistant vice pres­
ident. She began
her banking car­
eer in 1971 and
is
currently in
B.R. LAURITZEN
J.W. HENRY
the m arketing
division.
V.L. JUERGENS
Louise Cooper
has been named assistant trust of­
ficer. Prior to joining the bank in
January, 1982, she was a Certified
Legal Assistant for Keith Miller,
P.C., attorney.
Sue Gammel was promoted to as­
sistant operations officer. Miss
Gammel, who joined the bank in
E.J. ELIOPOULOS
R.E. JOHNSON, JR.
C.H. FRIES, JR.
V.E. SUMMERLIN
1980, is responsible for all teller
DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

67

Don Ostra nd

Ralph Peterson

THE
ANSW ER
MEN
Fred Kuehl

Mark Sorensen

CORRESPONDENT banking can b e confusing, frustrating,
time-consuming. Not so at First National Bank of Omaha.
Just call to g e t the answers from one of our five experienced
correspondent bankers. Five men with the very latest
financial technology at their fingertips dispensing profession­
al, d e p e n d a b le , confidential service.
So call us for the answers to your correspondent
banking questions — on electronic d a ta
processing, cash letter processing, overlines,
fed-fund transactions and more.
In Nebraska, call 1-800-642-9907. Outside
Nebraska, call 1-800-228-9533. You'll g e t the
answers from us, the answer men.

Iliwl lIvJI K*)l KJI U U l llx


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

of omaha
M ember FDIC

Northwestern Banker, March, 1983

68

Nebraska News

Largest Banks in Nebraska
EPOSITS and loan figures for the top banks in Nebraska with $50
m illion deposits or more are shown in the accompanying chart as
D
they were reported at year-end. Comparative figures for a year ago also
are featured.
(Last three figures omitted)

1. Omaha Natl. Bk......................................
2. First Natl. Bank, Lincoln.......................
3. U.S. Natl., Omaha..................................
4. First Natl., Omaha................................
5. Natl. Bk. of Comm., L in c o ln .................
6. Northwestern Natl., O m aha.................
7. First Natl., H a stin g s............................
8. First Natl. B&T, C olum bus...................
9. First Natl., Grand Is la n d .......................
10. DeLay First Natl. B&T, N orfolk.............
11. Center Bank, Omaha............................
12. First Natl., H oldrege............................
13. Scottsbluff Natl.....................................
14. Packers Natl., Om aha..........................
15. City Natl. B&T, Hastings.......................
16. First Natl. B&T, North Platte.................
17. Commercial Natl. B&T, Grand Island .. .
18. First Natl. B&T, Fremont.......................
19. First Natl. B&T, Kearney.......................
20. Platte Valley St. B&T, Kearney.............
21. First Natl., Y o rk ....................................
22. First Westside Bank, O m aha...............
23. Southwest B&T, O m aha.......................
24. First Natl., M cCook..............................
25. Douglas County B&T, Omaha...............
26. Guardian State B&T, Alliance...............
27. Gering Natl. B&T, Gering.......................
28. Fremont Natl. B&T, Fremont ...............
29. American Natl., Omaha........................
30. Overland Natl. Grand Island.................
31. Gateway B&T, Lincoln..........................
32. McCook Natl. B a n k ..............................
33. Beatrice Natl. B&T, Beatrice.................
34. First Natl., Fairbury..............................
35. Union B&T, L in c o ln ..............................
36. Washington County Bank, B lair...........
37. Northwestern Natl., N orfolk.................
38. North Side Bank, Omaha.......................
39. Jones Natl. B&T, Seward .....................

functions and operations for the
bank’s three facilities.
* * *

December 31, 1982
$714,596
$419,808
534,194
316,286
452,991
263,737
421,570
260,102
274,607
202,018
145,953
107,148
142,788
90,589
127,868
68,370
111,195
73,289
106,562
60,126
100,167
53,030
93,292
61,747
87,518
55,889
87,314
54,021
86,106
55,158
84,970
59,928
84,318
59,685
81,474
41,338
81,170
58,194
77,658
61,872
76,057
57,621
73,795
43,744
72,430
38,313
72,331
48,246
70,867
45,836
70,464
48,327
68,618
50,105
67,962
42,843
67,498
39,851
65,708
40,927
63,708
49,411
62,100
40,328
60,632
44,050
59,821
27,820
55,769
37,275
55,708
40,863
55,091
33,073
52,517
27,992
50,638
28,173

December 31, 1981
$703,193
$363,154
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
64,501
110,657
74,336
102,266
58,463
86,397
56,732
84,443
61,439
81,200
54,000
74,285
44,189
84,246
44,350
74,575
54,948
81,383
57,965
77,238
40,420
77,634
52,233
71,707
52,949
74,622
53,582
65,905
44,553
65,433
39,293
65,737
43,569
61,445
39,213
56,555
37,825
59,271
42,266
64,715
40,139
62,270
40,556
64,692
39,672
65,030
50,947
55,698
36,633
52,620
38,300
53,051
23,730
49,274
34,932
48,883
33,279
45,826
31,222
53,183
21,385
44,635
26,081

Mr. Kingston joined the trust
company in 1978 as a portfolio man­
ager, following two years brokerage
experience with Dean Witter Rey­
nolds, Inc. Mr. Kellog also joined
the bank as a portfolio manager.
* * *

G.J. TOMKA

S.A. ERIKSON

Erikson, from teller operation officer
to personal banking officer.
* * *
Dennis R. Wood, president of
Packers National Bank, has an­
nounced the promotion of Thomas
K. Grove and Marvin C. Kelley to
sen io r
vice
presidents and
James R. Riha
to senior vice
p re sid en t and
comptroller. In
addition, Terry
Reiff and Jim
Harding have
been named as
officers.
T. GROVE
M r. G rove

The election of Michael R. King­
ston to the position of vice president
and the promotion of Michael W.
Kellogg to investment officer, have
been announced by H. David Neely,
Edward A. Kohout, president of
president and chief executive officer the Northwestern National Bank.
of First Northwestern Trust Com­ has announced
T. REIFF
J. HARDING
pany of Nebraska.
the election of
Mike McQuillan
joined Packers in 1978 in the cor­
to credit depart­
respondent bank department. He
m ent o fficer.
has had extensive experience at
Changes in titles
other banks and bond houses and
were also an­
was challenged to develop a full ser­
nounced for Ger­
vice bond department at Packers.
ald J. Tomka,
Mr. Grove now supervises 11 sales
from
c re d it
and service representatives and sup­
department of­ M. MC QUILLAN
port staff in this area.
ficer to a g ri­
Mr. Kelley has over 25 years ex­
M. KINGSTON
M. KELLOGG
cultural officer, and for Scott perience in local banks and joined
Banker, March, 1983
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,

“I need a correspondent banker
who’ll work as hard for my bank
as he does for his own.”
T h at’s ju s t w h a t a w o rk in g re la tio n s h ip w ith NBC o ffe rs .
If you jud g e them by their ads, correspondent banks look
quite a bit alike. But the banks w e serve are looking for
m ore than a friendly smile and a passing know ledge o f
their special problem s. They’re looking for a professional
partnership they can co u nt on.
O ur w orkin g relationship involves all the traditional
correspondent services plus program s that are uniquely
ours: from custom ized bank cash m anagem ent services, to
a clearinghouse for banking forms, to financial planning
software packages fo r banks and their custom ers. Vital
contact includes our “ News
Views’’ executive letter
citing industry trends and changing regulations.
In to d a y’s co m p etitive financial market, you need that kind
o f su p p o rt from yo u r correspondent. Call us to hear m ore
about w hat our clients mean w hen they say, “ NBC w orks
for m e.”

BC
[J J c fik A

{ fo

'lW

The Correspondent Banking; Division of National Bank of Commerce


NBC Center, 13th & O St., Lincoln, Nebraska 68508, Telephone (402) 472-4321 / M em ber FDIC
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J

70
Nebraska News
Packers in 1977. He is in charge of
the marketing department.
Mr. Riha, who joined the bank in
1969 as a teller, will oversee the ac­
tivity of the operations function of
the bank.
Mr. Reiff, a graduate of the Uni­
versity of Nebraska in Lincoln, has
been named a bond investment of­
ficer. Mr. Harding, a new loan of­
ficer, attended Iowa State Universi­
ty, Ames, and has several years
lending experience.
* * *
The promotions of five officers
have been announced by James R.
Campbell, vice chairman and chief
executive officer of the United
States National Bank.
Lee J. Bachand has been
nam ed senior
vice president
and David F.
Malone has been
elected vice pres­
ident. Named to
the position of
second vice pres­
ident were San­
dra S. Ware and
LJ- BACHAND
Curtis L. Koehlmoos. Jill A. Pryor
has been elected executive banking
officer.

pondent banking division in 1980.
Mr. Malone, 35, came to the bank
in 1982, bringing with him 12 years
of experience in the lending and
agricultural industry.
Ms. Ware joined the bank in 1977
as a credit grantor in the bank card
division. Mr. Koehlmoos, who start­
ed in 1978, was named teller oper­
ations department manager in 1980.
Ms. Pryor joined in 1977 following
seven years with the Iowa-Des
Moines National Bank.
* * *
Chiles, Heider & Co., Inc., has an­
nounced the appointments of three
officers. John H.
Conley and W.
Gordon Huseth,
Jr., have been
named vice pres­
idents and Dar­
win Reider, as­
sistant vice pres­
ident.
M r. Conley
joined the firm
in Septem ber,
1982, as director of research. Prior
to that he was with a Lincoln-based
investment firm.

Promoted to assistant vice presi­
dent status were Curt Bjornsen,
commercial loan department; Tom
Maertens, agricultural loan depart­
ment, and Ronald Winguest. Mr.
Winguest will also serve as manager
of EFT department.
Named to officer status were
Kevin Henderson, operations; Ray
McKenna, consumer loans, and Cas­
sandra Wallace, real estate. Mr.
Henderson started with the bank in
1981. Mr. McKenna joined in 1980.
Ms. Wallace began with the bank in
1981 and has 15 years banking ex­
perience in Virginia and North
Carolina.
Also announced was the election
of Dale L. Adams, vice president
and cashier, as a director of the
bank. Mr. Adams has been with the
bank since 1977.

Scottsbluff Names Five
At First State Bank, Scottsbluff,
M. LeRoy Worden has been named
vice president in agricultural loans,
and Sheron Dinnel has been named
vice president, instalment loans.
Evelyn Weinmeister has been pro­
moted to assistant vice president,
operations; Kay Gabel to assistant
cashier and customer service coor­
dinator, and R.C. (Chip) Findley to
assistant cashier and marketing of­
ficer.

CBCT Branch Approved

m

jBMik wêêêKt

W.G. HUSETH, JR.

jhs
D. REIDER

Mr. Huseth, who is a CPA, joined
in July, 1972, as an accountant. In
1976 he was promoted to his current
post of controller.
Mr. Reider joined Chiles, Heider
public finance department in 1979.
He formerly was superintendent of
schools at Harrisburg, S.D.
* * *

C.L. KOEHLMOOS

J.A. PRYOR

Mr. Bachand, 39, joined the bank
as a management trainee and held
various data processing positions
before being named correspondent
data processing officer in 1975. In
1979 he was elected second vice
president and manager of the corres­
Banker, March, 1983
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Roger A. Kupka recently was
elected to the board of directors of
First Westside Bank. He is presi­
dent of Nebraska Builders Products
Company.

York Bank Names Officers
The following promotions and
staff changes were announced fol­
lowing the annual directors’ meeting
at The First National Bank of York:

The First National Bank of
Unadilla has received approval to
establish a CBCT branch at 370 5th
Street, Syracuse.

Kearney Election Told
Dean F. Moors has been elected
assistant vice president, credit
analyst and loan review officer at
First National Bank and Trust Com­
pany, Kearney. Mr. Moors was most
recently with The National Bank of
Commerce, Lincoln, as a loan
analyst.
John W. Payne, president of
Payne Larson Furniture and former
president of the Nebraska Televi­
sion Network, has been elected to
the bank’s board of directors.

Trenton Bank Promotes One
The board of directors of the State
Bank of Trenton recently promoted
Mark L. Forgue to assistant cashier.
Mr. Forgue joined the bank in 1981
as an officer trainee.

Nebraska News

71

Ag Outlook for ’83 Set For March 30-31

Hastings Bank Board
Names New President

Harlan, executive vice presi­
dent, Scoular Bishop Grain
Co., Omaha.
Bankers Association’s most popular
education programs, will be held Noon Lunch Program
“ A griculture in the Far
this year on March 30-31 at the
E ast”—Kathy Votaw, corre­
Kearney Holiday Inn.
spondent banking officer,
Committee Chairman for Agricul­
First National Bank of Lin­
tural Outlook ’83 is Jim Krantz,
coln.
president and chairman, First Na­
tional Bank, Bayard. Other commit­ P.M.
1:30 Legislative U pdate” —Bill
tee members include: Bob Brandt,
B randt, general counsel,
cashier, First National Bank, UnaNBA.
dilla; Tom Dunham, executive vice
2:00 “ Hog O u tlo o k ’’—C arson
president, First National Bank,
Rogers, Ord.
Wahoo; Rusty Eisenhart, president,
2:45 “Looking Up In A Down
The Culbertson Bank; Steve Erwin,
World”
vice president, Northwestern Na­
3:45 “ F e e d lo t T o u r’’—Lew is
tional Bank, Omaha; John Martin,
Feedlot, Inc., Kearney.
vice president, Omaha National
6:00 Reception and steak fry.
Bank; Duane Phillipi, vice president,
Lexington State Bank; Keith Redinbaugh, executive vice president, The
Thursday, March 31
Tilden Bank, and Kathy M. Votaw,
A.M.
correspondent banking officer, First
8:00 Continental Breakfast.
National Bank, Lincoln.
8:30 “Nebraska Water Resources”
Advance registration fee is $95, at
Panelists: Don Steen, Morrill;
the door-$105. The program sche­
Mike Jess, state director,
dule follows:
Dept, of Water Resources;
Wednesday, March 30
Vernon Souders, UN-L geol­
ogist, and Dave Aiken, editor,
A.M.
“Nebraska Water Law Up­
9:30 “ N ebraska’s A gricultural
date.”
Economy - The Broad Pic­
ture”—Rob Ruan, director, 10:15 “ C a ttle O u tlo o k ’’—B ill
Hellming, president, Live­
N ebraska D epartm ent of
stock Business Advisory Ser­
Agriculture.
vices, Kansas City, Kan.; Jim
10:00 “L.E.A.D.”—Dr. Jim Horner,
Roberts, president, Com­
professor, U niversity of
merce Cattle Co., Lincoln.
Nebraska - Lincoln.
□
11:00 “ G ra in O u tlo o k ’’—N eil Noon Adjournment.

At the annual meeting of the
board of directors, the City National
Bank and Trust Company, H ast­
ings, took action to name O.J.
McDougal, Jr., as chairman and
Douglas E. Oakeson as president.

ANNUAL Ag Outlook Con­
T HE
ference, one of N ebraska

Ogallala Staff Changes Told
At Keith County Bank and Trust,
Ogallala, James T. Prange has been
named vice president of marketing;
Frank J. Odstrcil has been promoted
to assistant vice president and com­
puter manager, and Steven D.
Krause, Patrick J. Becker and Steve
Barry have been elected as assistant
cashiers.
Mr. Prange formerly was assis­
tant vice president of business
development at City National Bank
and Trust in Hastings.
Mr. Odstrcil has been with Keith
County Bank since 1973, most re­
cently as assistant cashier and com­
puter manager.
Mr. Krause joined the bank with
ten years of consumer credit ex
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

O.J. MC DOUGAL, JR.

D.E. OAKESON

Mr. McDougal joined the manage­
ment of City National in 1957. Mr.
Oakeson has served as executive
vice president since 1981. Prior to
joining the bank, Mr. Oakeson was
associated with the National Bank
of Commerce in Lincoln for eight
years.
Gaylin Prior was named agricul­
tural loan officer. He had been
associated with the Production
Credit Association of Aurora.
Donna Ruhter was named person­
nel officer. She has her bachelors
degree from Kearney State College.

Named at Gordon
The board of directors of the Gor­
don State Bank has named John L.
Way assistant cashier.

Bassett CEO Retires

M.B. Huffman, chief executive of­
ficer and chairman of the board of
perience with Security Pacific based the Commecial Bank, Bassett, re­
out of the Lincoln offices. Mr. tired recently after 34 years in bank­
Becker has been assisting and train­ ing. Mr. Huffman will remain on the
ing in the operations area the past board and on a consulting basis for
year and a half. Mr. Barry has also the bank.
been promoted to night shift
In addition, the bank has an­
manager for the computer area.
nounced the election of the following
new bank and board officers: Mary
B. Huffman, chairman of the board;
Mary M. McMullen, president; Har­
Promoted in Fremont
Linda Chapman has been pro­ old W. Whipple, executive vice pres­
moted to assistant cashier at the ident, and Paul J. Gurney, vice
First State Bank, Fremont, accor­ president and cashier.
ding to James H. Moore, Jr., presi­
Elected a Director
dent.
William J. Morrow, senior vice
Ms. Chapman, who joined the
bank in 1977 and was most recently president of Commercial National
manager of the Mall Facility, is Bank, Ainsworth, was elected to the
president of Fremont Business and bank’s board of directors. He has
been with the bank eight years.
Professional Women.
Northwestern Banker, March, 1983

The board of directors of National
Bank of Commerce Computer Ser­
vices Corporation has elected Paul
Watson systems officer at their
January board meeting.
Mr. Watson joined NBC/CSC in
January, 1981, and specializes in
data communications in the systems
design area of the computer services
corporation. Prior to joining NBC,
Mr. Watson was a systems represen­
tative for Honeywell Corporation.

Retirement, Promotion Told

William C. Smith, president of
First National Bank, has announced
the promotions of Dave Luckey and
Duane Vorderstrasse to farm man­
agement officers.
A native of Columbus, Mr. Luck­
ey joined First National in 1981 as a
farm manager in the trust division.
He graduated from the University
of Nebraska in 1978 with a B.S.
degree in agriculture. He spent three

Dwight Gangwish, executive vice
president of First State Bank, q
Shelton, has announced the retire­
ment of Melvin K. Edghill, cashier.
Mr. Edghill had been with the bank
37 years.
Brad Gangwish, who joined the 0
bank in 1982, has been promoted to
assistant cashier.

years as a soil conservationist with
the Soil Conservation Service.
Mr. Vorderstrasse is a Hebron
resident and manages farms for
First National’s trust division in
that area. Prior to joining the bank Promoted in Hastings
in 1980, he was a loan officer at First
A t H a s tin g s S ta te B ank, •
National Bank of Fairbury. He also
Hastings,
Kathy Anderson has been
graduated from the University of
Nebraska with a BS in agriculture. promoted to senior operations of­
ficer. Newly elected directors in­
clude: Ardyce Bohlke, Doug Heim
and David Werner.
#

Promoted in Imperial

\

FIRST MID AMERICA INC.
First in Service to the Midwest.
.
•
.
.
•

M unicipal Bonds
Corporate Bonds
Government Agency Bonds
Listed and Unlisted Securities
Fiscal Agents

New Bank Appoints President

F o r c o m p le te in ve stm e n t se rv ic e y o u c an rely on...

The Midwest’s Investment Professionals

FIRST MID AM

MCA INC.
SfPC

Member New York Stock Exchange, Chicago Mercantile Exchange
and other Principal Stock and Commodity Exchanges.

Municipal Bond Department, 100 Continental Building
Omaha, Nebraska 68102 / (402) 444-1900
STOCKS, CORPORATE, MUNICIPAL AND GOVERNMENT BONDS,
OPTIONS, TAX SHELTERS AND COMMODITIES.
Lincoln, Omaha, Grand Island, Hastings, Columbus, Shelby, Plainview, Nebraska.
Des Moines, Atlantic, Cedar Rapids, Fort Dodge, Marshalltown, Iowa.
Kansas City, Missouri • Wichita, Kansas • Chicago, Illinois • Houston, Texas.

DigitizedNorthwestern
for FRASER Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Chase County Bank & Trust Com­
pany, Imperial, has announced the
promotion of Donald R. Banks from
vice president to senior vice presi­
dent, and Douglas Ohlson to assis­
tant cashier.
Mr. Banks has been with the bank
since 1974; Mr. Ohlson, since 1981.

The American National Bank of
Fremont (in organization) announced
the election of Gary L. Bernhardt as
president and chief executive officer.
Mr. Bernhardt has been with the
First National Bank & Trust Com­
pany of Fremont for the past 18
years, most recently as senior vice
president and cashier. He resigned
his position with First National in
January of this year to assist in the
initial operational activities before
his official appointment as president
of the new bank.
Mr. Bernhardt is a graduate of
the Colorado School of Banking at
the University of Colorado, and has
held the positions of president of the
Bank A dm inistrative Institute,
Omaha/Council Bluffs Chapter, and
treasurer of the local Nebraska
Bankers Association Group.

73

Specialists in
fulfilling your every
correspondent need...

STEVEN L. ANDERSON

GARY L. BIECK
Vice President & Manager
Correspondent Bank Division

MARK HAHN
Correspondent Bank Officer

Vice President

KATHY M. VOTAW
Correspondent Bank Officer

MARVIN HEFTI
Correspondent Bank Officer

IH illllllll FIRST NATIONAL LINCOLN
13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
M e m b e r, f .d . i .c .

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

Northwestern Banker, March, 1983

Bankers Trust...
w here Iow a’s future
grows!

Whether you have
funds to invest or simply
n eed short-term liquidity
Bankers Trust can provide
your bank with the in­
vestment vehicle that
m eets your needs.
Our professional in­
vestment bankers are
experienced in all phases
of investment strategy.
Constantly in touch with
capital markets through­
out the nation (and
through correspondent
institutions, with foreign
markets as well), w e can
execute any purchase
quickly and efficiently.


Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Talk over your invest­
ment needs with us and
let us help you m ake prof­
itable decisions. We're
Bankers Trust, where
Iowa's future grows!

B a n k e rs
Com e C row
W ith Us
Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Iow a’s la rg e st locally ow ned,
In d ep en d en t b a n k
U se o u r t o ll-fr e e WATS lin e : 800-3 6 2 -1 6 8 8

75

Farm Representative Named
Steve Greiner, a former employee
of Farmers Co-op Elevator Com­
pany, Iowa Falls, has been hired as a
farm representative at the Ackley
State Bank. Mr. Greiner is a grad­
uate of Iowa State University, with
a major in agricultural business and
farm management.

Griswold Banker Advanced

ITS Bids to Place Food Stamps on POS
ALE Dooley, president of ITS,
D
Inc., Des Moines, announced
last month that ITS is bidding on a
U.S. Department of Agriculture pro­
posal for a pilot program for electro­
nic delivery of food stamps. The bid
is being submitted in cooperation
with the Iowa Department of Social
Services and NCR Corporation.
The pilot, which would be located
in Cedar Rapids, would call for the
Department of Social Services to re­
place food stamp coupons with plas­
tic cards, similar to the ones finan­
cial institutions issue for use in their
ATMs. If ITS is awarded the con­
tract, participating food stores in
Cedar Rapids would be provided the
necessary equipment to allow food
stamp clients to purchase their
groceries with the plastic cards.
The USD A hopes that by apply­
ing this technology it will cut down
on the huge handling and production
costs associated with food stamp
coupons, and also will eliminate a
great deal of waste and fraud.
USD A officials have indicated that
only two contracts at the most will
be awarded nationwide for this
study. When it held a meeting in
Washington, D.C., for interested
bidders on January 24, more than
100 bidders nationwide were pre­
sent.
Two principal criteria were estab­
lished by USD A: 1. The selected city
must have 2,500 to 4,000 partici­
pating food stamp households. 2 .
The selected city must be a contained
shopping area. For ITS, these criter­
ia eliminated cities such as Des
Moines, which has 11,000 food
stamp households, and Ames, which
has fewer than 2,500 such homes. In
addition, the second requirement
eliminated all of Iowa’s river cities
because of the trade area across
state lines. Cedar Rapids, in addi­
tion to being a major, self-contained
shopping area meeting the criteria,

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

is a very active ITS bank card-ATM
center.
Mr. Dooley said “I feel we have as
good a chance as anyone else to be
awarded this contract.” ITS is the
only bank central switch operator in
the nation presently using point-ofsale card terminal technology in
food stores in the nation.
A pilot project initiated by ITS in
September, 1981, placed POS ter­
minals at check-out cash registers in
one Hy-Vee and one Dahl’s super­
markets. The equipment was built
to ITS specification by NCR and
works in conjunction with the NCR
electronic cash registers now in use
at most stores. The card swipe de­
vice in which the customer inserts
the plastic bank card transmits the
cash register and customer card
data through the store’s computer
to the ITS switch. The typical tran­
saction time is seven seconds, far
less than a cash or check transac­
tion.
Using this same technology, food
stamp customers would be able to
make their purchases like any other
customer without the onus of dis­
playing “charity” stamps to other
customers. This also would make
the system more efficient, USD A
believes.
The deadline for bidding was set
at March 8 . USDA is expected to an­
nounce its selection within 120 days.

Sara Thornton Bates has been
p ro m o te d
to
assistant cashier
at the Griswold
State Bank. She
joined the bank
in 1978, received
a B.S. at Buena
Vista College in
1980 and was
promoted to in­
ternal auditor in
S. BATES
1981.

Two Advanced in Spencer
William H. Griggs, president of
Hawkeye Bank and Trust, Spencer,
has announced the election of two of­
ficers.
Allen H. Johnson has been named
sales manager and will be in charge
of the Investor Center, staff training
and product sales.

A.H. JOHNSON

J. CREW

Jeff Crew has been named accoun­
ting officer and will monitor the
bank’s accounting procedures, as
well as assist the cashier with other
areas of bank operations.

1983 Iowa Group Meetings
Group
8
4
7
6
5
12
2
3

Date
May 9
May 10
May 11
May 12
May 23
May 24
May 25
May 26

City
Davenport
Cedar Rapids
Waterloo
Des Moines
Council Bluffs
Okoboji
Fort Dodge
Clear Lake
Northwestern Banker, March, 1983

76

Iowa News

Card Issuance panel members were, from left: Jim Koenig, a.v.p., Merchants Natl., Cedar
Rapids; Bill Kelly, Cardpro Services, Inc.; Art Jones (at mike), ITS cust. serv. rep.; Robert G.
Mann, v.p., and Diane Benoit, exec, asst., both with Brenton Natl. Bank of Des Moines.

ITS Hosts EFT Conference
By BEN HALLER, JR.
Publisher
and
BECKY McBURNEY
Associate Editor
LTHOUGH the weather made
A
driving conditions miserable on
roads leading to Des Moines, the
nearly 200 registrants who attended
the two-day ITS, Inc., EFT Con­
ference the first week in February
were well rewarded with special
reports and updated information on
EFT in Iowa. The audience included
Iowa bankers, as well as two dozen
savings & loan and credit union of­
ficials.
Robert G. Millen, chairman of the
conference, president and chief ex­
ecutive officer of United Central
Bank of Des Moines, said it best
when he stated that the reason for
ITS success and continued expan­
sion, especially in the POS pilot, “is
that all the banks, savings and loans
and credit unions and retailers con­
tributed to the project and worked
together and not against each other.
I t ’s unlimited what you can do when
you all work together for one com­
mon goal.
The POS pilot he referred to was
initiated by ITS in September, 1981,
(NWB, Oct. ’81) at one of Dahl’s
supermarket stores in Des Moines
and was followed a month later with
one at Hy-Vee’s supermarket in
West Des Moines. Reports from
both firms were made at the con­
ference.
Marion Coons, senior vice presi­
Northwestern
Banker, March, 1983

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

dent of Hy-Vee Food Stores, Inc.,
said that in 1982, the first full year
of operation, the West Des Moines
store had 26,183 transactions for a
dollar amount of just over $ 1.1 mil­
lion. That averaged more than 2,200
per month for a transaction average
of $43. Dahl’s in 1982 reported
19,508 transactions for more than
$500,000, at a lower traffic store.
(Details of Mr. Coons report will ap­
pear in the April magazine).
Dale Dooley, president of ITS,
Inc., and Art Jones, ITS customer
service representative, also addressed
the meeting.
Mr. Jones gave a report on pro­
gress of ITS since its 1977 start-up.
From five data processing centers,
with 36 participating banks and 50
ATMs, the system generated 100,000
transactions the first year. Today,
that total is 20 times higher for tran­
sactions. There are now 17 data pro­
cessing centers with 156 partici­
pating banks, 13 credit unions and
10 savings and loans, who share
nearly 400 terminals—-some across
adjoining statelines. They generated
in excess of 2 million transactions in
1982, with 511,000 of them coming
in December alone. The original
staff of two has grown to 18 people.
Mr. Dooley said two added ITS
services are helping the banks. The
first, pre-set authorization, allows
processing of customer transactions
at the switch in the event a DPC or
its customer bank has computer pro­
blems. The second, strip-file author­
ization, allows a participating bank
which does not have computer tie-up

to the switch to provide ITS with a
list of its cardholders so the switch
can automatically approve their
transactions within whatever limits
are selected.
Most of the talks were geared to
improving the marketing of ATM
and POS services.
Jim Koenig, assistant vice pres­
ident at Merchants National Bank,
Cedar Rapids, said his bank’s study
shows a cost of $5.43 over a twoyear period to furnish a customer’s
card—$ 1.00 to BICS for the card,
83 <Pto the card vendor, and 15<t per
month to BICS for maintenance
($3.60). He said MNB has between
6,000 and 8,000 transactions month­
ly at its teller windows, with cus­
tomers using PIN pads, “Some peo­
ple haven’t used a deposit slip for
the past four or five years,’’ he
stated.
Joining him on the Card Issuance
panel were Bill Kelly of Cardpro Ser­
vices, Inc., and two Brenton Banks,
Inc., staffers—Diane Benoit, ex­
ecutive assistant, and Robert G.
Mann, vice president. The latter two
reviewed the procedures used by
Brenton banks in issuing cards,
selecting ATM sites and marketing
this specialized service to increase
volume.
The keynote address was deliv­
ered by O.J. Tomson, president of
Citizens National Bank in Charles
City and a member of the Seventh
Federal Reserve board of directors
in Chicago. Following him was Rob­
ert Fitzgerald, senior vice president
of the Chicago Fed. A more in-depth
review of both their talks, aug­
mented with personal interviews,
will be presented in the next issue of
the N orth western B a n k e r .
The actual marketing experience
of four Iowa institutions with ATM
service was related in a four-man
panel that got down to the nittygritty of bottom line return.
Peter McAndrews of Davenport
Bank and Trust advanced the case
for direct marketing of ATM cap­
ability to increase the volum ethrough selected advertising media
and times and through increased
employee training that will enhance
the customer’s desire to use ATMs.
Steve Brinton of Bankers Trust
Company, Des Moines, zeroed in on
market share by increasing ATM
use through upgrading the pricing
of check services so that the benefit
of lower cost ATM usage will be ap-

77

DO HIGH INTEREST RATES
HAVE YOUR CUSTOMERS DOWN?

If the answer is yes, then NOW’S THE
TIME to look at the competitive advantage
for your bank...your own leasing company,
which can offer your customers a low cost
alternative for financing the equipment they
need but have delayed purchasing.
Today’s high interest rate environment
has put a real strain on your customer’s
cash flow, and has probably reduced their
ability to qualify for loans. By offering your
customers the ability to lease, they will
improve their cash position and will be able
to increase their borrowings from your
bank. By operating your own leasing com­
pany, you will enhance your relationship
with your customer and broaden the range
of services you offer.
UCB Leasing Corporation is familiar
with and experienced in meeting the needs
of banks and their customers. We have the
expertise to assure that your venture into

leasing gets started right. And, we will direct
your full documentation in the critical areas
of accounting, marketing and tax sheltering.
If you are concerned about your cus­
tomers, your bank’s shrinking loan portfolio
and loss of market share, you need to
investigate the leasing alternatives. NOW’S
THE TIME to call (without obligation) Bill
Ranes or Tim Mercer at (515) 245-7222 to
find out how UCB Leasing can help you and
your customers.

Bill Ranes

Tim Mercer

UCBLEASINGCORPORATION
AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC.
LOCUST AT SIXTH, DES MOINES, IOWA 50309


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

Northwestern Banker, March, 1983

78

Iowa News

O. Jay Tomson, pres., Citizens Natl.,
Charles City, gave the keynote address.

parent to customers. Dick Holthaus
of American Federal Savings &
Loan, Des Moines (and formerly
marketing director of Merchants
National, Cedar Rapids), stressed
the cooperation needed from retail
stores—particularly for ATM and
POS installations on their premises.
George H ickerson, p ro je c t
manager for E.J. Feeney Associates
said financial institutions “need to
increase productivity through cap­
italizing on our work system. We
need to deal with and work through
the human level, for it is here that
the system most easily breaks
down.” He reminded bankers of
three concepts that need to be
stressed more; 1. Specify perfor­
mance outputs and standards. 2 .
Provide timely and accurate feed­
back. 3. Provide positive reinforce­
ment.
Pro. Douglas Hillman of Drake
University, in his talk on Microcom­
puters, reminded his audience of the
changing and improving capabilities
of each new generation of personal
computers. “When you are talking
about (micro) computers,” he said,
“you are talking about software—

programs to help you get your job
done, and operating systems—pro­
grams that instruct the computer
how to operate.
A member of the original found­
ing team of ITS, John Sikkink, ex­
ecutive vice president of the IowaDes Moines National Bank, reviewed
the various card developments that
have occurred in his 21 years of
banking—MasterCard, Visa, indi­
vidual bank cards and into the
sophisticated realm of debit cards
used by ITS. The inroads of non­
banking entities into all banking
fields, including ATM networks and
financial cards, makes it mandatory
for banks to stay abreast of every
development to protect banks’
“turf” and, hopefully, to remain
ahead of the competitors for the
customer volume.
Mr. Sikkink, looking at the next
few years, sees: Fewer debit and
credit cards per person due to ATM
standardization; increased use of
ACHs to further eliminate paper­
work; EFT expansion through im­
provement of card knowledge and
protection for customers; broader
use of EFT and ATMs and POS by
retailers and the public as price
reductions are noted in hardware;
home banking by 25% of households
by 1990. To accomplish all this and
maximize bank earnings, Mr. Sik­
kink urged his audience to assess
their internal systems and make
sure they are capable of handling the
projected needs, with special atten­
tion to EDP over check processing.
In a direct, forceful, but low-key
way, IBA Executive Vice President
Neil Milner painted a broad picture
of the future success that could
belong to banks if they continue pur­
suing the present course of mutual
cooperation they have expressed to
date through achieving some not­
able IBA successes. He said it was

Burlington Bank Names Seven Leonard A. White, new assistant

Douglas S. Grinde, president of
Hawkeye Bank and Trust, Burling­
ton, recently announced the election
of two new officers and five promo­
tions.
Leonard R. Wischmeier was pro­
moted to assistant vice president
and manager of the Roosevelt Of­
fice. He has been with the bank since
1961. Barry A. Corson was promot­
ed to trust officer and has been with
the trust department since 1980.

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

manager of the Roosevelt Office, has
been with the bank since 1967. Pro­
moted to real estate officer, Thomas
A. Murphy has been in the commer­
cial loan department since 1973.
Stephen E. Larson, who started
with the bank in 1979 and was the
office manager of the Salem branch,
was promoted to assistant cashier
and credit officer.
Newly elected were Russell E.
Larson to Salem Office manager and

George Hickerson, project mgr., E.J. Feeney
Associates, discussed Productivity Im­
provement.

through the dedicated, joint efforts
of many members that new services
have been created for the benefit of
IBA membership as a whole. He
referred to Iowa Insurance & Ser­
vices, Iowa Bankers Mortgage Com­
pany and MABSCO as three ex­
amples, as well as ITS itself—spon­
sor of the conference. Each unit
serves the interests of varying
numbers of IBA members, he said,
and all were created because in­
dividual members saw a need for the
services, proposed them and ulti­
mately achieved IBA executive com­
mittee action to get the services act­
ivated. The transfer of this same
kind of cooperative effort to current
and future banking needs and public
needs, he said, will lead to making
sure that Iowa banks will “continue
to serve the local market they have
in their local area.”
He cautioned it would not be easy;
rather, those who plan to survive
will have to make choices about the
kinds of services they wish to offer,
the kind of customer base they wish
to serve, and ultimately the kind of
bank they want theirs to be in the
next one or two decades.
□
Michael A. Reichart to life insurance
officer.

New President Elected
Richard L. Aadland has been
elected president of the Pioneer
Valley Savings Bank in Sergeant
Bluff, according to James W. Miller,
chairman of the board. Mr. Aadland
joined the bank in 1966 and most
recently was executive vice presi­
dent.

Managing by the seat o f your pants
could mean losing your shirt.
In the past, banking was sim ple — buy low
and sell high. You could m anage on instinct, by
the seat of your pants. Unfortunately, deregula­
tion has sent that philosophy the way of the
teller’s cage. With change constant and com ­
petition fierce, bank-m anagem ent decisions are
m ore com plicated and crucial than ever before.
A BICS m anagem ent decision support sys­
tem can help you m eet this challenge. With
BICS, you can make decisions quickly — full
autom ation of operations lets you instantly
gather into one source all inform ation on bank
activity; at any m om ent you can determ ine the
current condition of your bank.
You can anticipate and prepare for the

future by testing your ideas and exploring pos­
sibilities with on-line financial modeling. You can
maximize m arketing efforts with our central
information system that stores every piece of
custom er information.
A BICS system m eans you, and all your p e o ­
ple, can make m ore profitable decisions. Which
m eans you get to keep your shirt and o rd er a
dozen more.
Find out how you can profit;
call BICS marketing at (319)
395-6600.
'
' l l
I

L

.... s p —
Banks o f Iowa Com puter Services, Inc.


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

A "B a n k s o f Io w a " su b s id ia ry .

A"'A,
:: ; ; V

80

Iowa News

LEFT—VISITING during the recent IBA Marketing Conference were: Randy Steig, exec, dir., and Sharyn Glass, ed. dir., IBA; Steve Barger, O
v.p., Hawkeye Bancorp., Des Moines, and John Dalton, pres, and Monroe Abels, sales rep., W.M. Dalton & Assoc. RIGHT—Steve Baes, terr.
mgr., Banks of la. Comp. Serv., Cedar Rapids; Linda Majerus, mktg. off., Maquoketa St. Bk.; Dave Holub, v.p., Security Nat’l Bk., Sioux City,
and Ellen Freese, mktg. dir., First Tr. & Sav. Bk., Wheatland.

Strategic Marketing is A
Management Decision for the 80s
By STEVE BURCH
Associate Publisher
ITH an emphasis placed on
W
market and product position­
ing, the 1983 Iowa Bankers Associ­
ation Marketing Conference was
themed “Strategic Marketing—A
Management Decision for the ’80s.”
Quoting Charles Darwin, Marketing
Committee Chairman David Pike,
vice president of Hawkeye-Capital
Bank and Trust, Des Moines, wel­
comed some 200 bankers to the con­
ference with the challenge that sur­
vival in the financial services in­
dustry of the ’80s will be dependent
on the banks ability to adapt to
change.
Jack Pester, chairman, Pester Cor­
poration, Des Moines, offered a com­
parison between the deregulation of
the oil industry and the current

deregulation process within the com­
mercial banking industry. With no
control over the cost of money and
with aggressive competitors control­
ling loan rates, he advises that it is
essential to control operating costs
as a means of improving profitabili­
ty. He went on to suggest that the
marketers should evaluate all institu­
tional advertising expenditues “from
pens and pencils to time and
temperature signs to bidding on the
4-H beef at the county fair.” These
funds would be better spent on “per­
sonal touch” community seminars
which would offer customers and pro­
spective customers valuable financial
information. He closed by stating
that when deregulation is complete
the only remaining exclusive fran­
chise in the industry will be the use of
“bank” in their company name.
Allan Paro, national advertising

manager, American Bankers Association, focused on the bank customer
explaining that the industry is ex­
periencing a transformation from a
sellers market to a buyers market
which features a totally liberated
consumer. Knowing how the customer thinks versus traditional demo­
graphic use should be the basis of the
strategic marketing plan for the ’80s.
Mr. Paro included in his presentation
a review of the recently completed
ABA survey—Financial Services
Usage and Attitude Study. The
study identifies and describes finan­
cial consumer groups and examines:
the consumers level of awareness,
usage and satisafaction with specific
firms and services; their attitude
towards financial matters; the impor­
tance of specific bank attributes;
their perceptions of respondent
banks, and lifestyle information and
demographics.
Donald O’Toole, vice president,
Doremus & Company, Chicago, exampled the marketing strategies used

^
^

^
W

^

^

^

^

LEFT—Dave and Dale Gisvold, (1st & 3rd from left) Heinrich Envelope, Boone, with Val Lawrie, asst, cash., and Helen Hoon, a v p Plaza
St. Bk., Des Moines, and Mike Thies, v.p., Union Bk. & Tr., Ottumwa. RIGHT—Wes Ehrecke, gov’t, rel./mktg. dir., IBA; Conf.’ chmn Dave
Pike, v.p., Hawkeye Capital Bk. & Tr., Des Moines; Karen Winner, sales train., Brenton Banks, Inc., Des Moines; William Young, AID Finan- •
cial Planning, Des Moines, and Jim Edwards, chmn. & pres., DAD Financial, Nashville, TN.
’
w
Banker, March, 1983
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

81

Mostinsuranceagencies
seemtopreferthat
youwerekeptinthedark.

Notus.
The less you know about
insurance, the more profitable
you are to most insurance
agencies.
N ot IBIS.
We’re owned by Iowa
banks, only for Iowa banks.
And we’re designed to be used.
So the smarter you are
about insurance, the more (and
more efficiently) we get used.
T h at’s why we held some

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

thirty seminars and schools for
Iowa bankers last year.
Helping them become better,
more effective insurance
administrators.
It’s also why we’re as
proud of the $5,900,904 we
paid last year in health claims
alone as we are of the over
$475,000 we paid in dividends.
A nd that, to our way of
thinking, is pretty enlightening.

For more information, call
1-800-532-1423 toll-free today.

Iowa Bankers Insurance
& Services, Inc.
400 Financial Services Building/508 Tenth Street
Des Moines, Iowa 50308
Northwestern Banker, March, 1983

82

Iowa News

Appointments Announced

Dan O’Toole, v.p., Doremus & Co., Chicago, sings his way into the hearts of the au­
dience during his presentation. RIGHT— Dave Wark, exec, v.p., Nat’l. Bk. of Commerce,
Memphis, Tenn., offered some pointers on asset/liability management models.

by the airline industry during its re­
cent deregulation as he outlined a
six-step process for marketing in a
deregulated environment. As in the
airline industry, the large national
companies will go after increased
market shares at the expense of the
second largest group and he predicts
that in the banking industry the
regional banks stand to be the big­
gest losers. He also sees the smaller
banks doing very well, however they
must choose their objectives careful­
ly and focus their resources on spe­
cific opportunities. Mr. O’Toole sup­
plemented his formal presentation
with folk songs which he has written
and whereas his delightful songs
may never appear on the top-40
charts, they were well received by
his captive audience.
Jim Edwards, president, D.A.D.
Financial, Inc., Nashville, Tenn.,
discussed the advantages of selling
to a bank’s existing customer base.
In preparation of presenting a
seven-step guideline designed for
marketing to existing customers, he
asserts that an industry-wide mis­
interpretation of the ‘80/20 Rule”
exists. Specifically, he suggests that
if a banker feels that 80% of the
banks total deposits are generated
from 20 % of the bank customers,
then he may also believe that the re­
maining 80% of his customers are
not well-off financially and thus not
worth cultivating. Numerous re­
search studies conducted by Mr. Ed­
wards disprove this premise and
paves the way to designing a mar­
keting plan aimed at significantly
increasing deposits from people
already doing business with the
bank.

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Neal Conover, executive vice
president, Hayesville Savings Bank,
offered some insights into market­
ing strategies from the viewpoint of
a bank located in a town of 90 peo­
ple. He began with the tongue-incheek observation that “there are
some of us who don’t believe that
location is cracked-up to what it is
supposed to be.” He went on to say
that many of his bank’s customers
drive past at least one other finan­
cial institution to do business with
his bank. He challenged that from a
marketing position it is important
to understand why this occurs and if
EFT and home banking are going to
have the effect that is predicted,
then banks who rely heavily on loca­
tion convenience as a means of at­
tracting customers should develop
alternate marketing tools. Mr. Con­
over echoed earlier speakers sugges­
tions by emphasizing the impor­
tance of “belly to belly” personal
calls. Before making personal calls
in a rural, agri-based community
however, he cautioned that you need
to be prepared to talk the cus­
tomer’s language. “It may not be ne­
cessary to have a medical back­
ground in making a personal call on
a doctor, but if you don’t know hog
farming, any conversation you have
with a hog farmer will be a short
one. ’’ He closed by saying that it is
the number one marketing objective
of his bank to make the bank cus­
tomer feel like he is part of the bank.
Prior to adjournment, Chairman
Pike told the audience that sugges­
tions submitted relating to schedul­
ing and location would be incor­
porated in future plans of the IB A
Marketing Committee.
□

Harold G. Haver, president and
chief executive officer of United
Central Bank and Trust Company of
Mason City, has announced the
following:
M ilfo rd
S.
Grotnes, presi­
dent of St. Jo­
seph Mercy Hos­
pital, Mason Ci­
ty , has been
elected to the
b an k
b o ard .
James W. Hackbart, a former
M.S. GROTNES
Kalona attorney
who joined the
bank in 1982, has been promoted to
assistant vice president and assis­
tant trust officer. Robin Nodvedt,
who joined the bank as head teller,
has been promoted to assistant
operations officer.

J.W. HACKBART

R. NODTVEDT

In addition, Hughes J. Bryant
has retired from the board of direc­
tors after 30 years of service and
was elected an advisory director.

V.P. Appointed in Waterloo
Dale T. Zimmerly has been ap­
pointed vice president in charge of
the leasing divi­
sion at The Na­
tional Bank of
Waterloo, accor­
ding to R. Scott
F etn er, p re si­
dent.
Mr. Zimmerly
has been with
In te rn a tio n a l
Harvester CorD.T. ZIMMERLY
p oration from
1963 to 1982, most recently as fleet
center manager in St. Louis, Mo.

New Manager Named
Donna D. Trenshaw has been pro­
moted to assistant cashier and man­
ager of First National, Ottumwa,
Burgason office. Ms. Trenshaw, who
joined the bank in 1976, replaced ^
Hugh Stufflebeam, who retired.

D o you know
who your
correspondent
banker is today?

The names and faces in your downtown multi-billion dollar correspondent business bank
keep changing because your correspondent business isn’t as important to them as it was
ten or twenty years ago. The young fellow you talked to last month has been transferred
to the International Department, Trusts, Investments, or whatever. Who'll answer your
phone call today? Will the new man know or care about your bank? Will he have influence
with his bank's top echelon people?
At Drovers Bank of Chicago, you always know whom you’re dealing with. Top level
banking professionals you've come to know and respect over the years. We re one of the ten
largest correspondents in Illinois, and it isn't just a sideline. It s one of the most important
aspects of our business. That's why you have direct, daily access to our Board Chairman,
our President, and our staff of correspondent banking career professionals. Tell us your
needs. We’ll see to it that you get fast action and quick decisions.
We offer a full range of services that include overline loan participations, Federal Fund
Transactions, safekeeping of securities, cash letters, bond and money markets these and
more correspondent services. Call me, John Crotty, toll-free at 800-621-8991 (in Illinois,
800-572-2498). I'll fill you in on all the ways we can help.

The Responsive Correspondent

D rovers Bank of ChiCQQO
47th & A shland Avenue, Chicago, Illinois 60609, 312-927-7000

Member, Cole-Taylor Financial Group—Independent Banks Working Together
J


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

M em ber Federal Reserve System and F.D.I.C.
Northwestern Banker, March, 1983

84

Iowa News

GROUP 1 retiring Chmn. Harold H. Harms, sr. v.p., Le Mars Sav. (left), with new Gp. 1 Chmn. Bruce Kolbe, pres., United Central B&T Sioux
d ty , and G p. 1 Secy. Bill Hess, v.p., Iowa Sav., Coon Rapids. RIGHT-(Gp. 11 Chmn. John F. O’Neill, chmn. & pres., First Natl., Burlington
and Secy. William R. Bernau, chmn. & pres., Peoples Savings, Crawfordsville

Groups 1 and 11 Elect New Officers
ORE than 1,200 bankers and
M
spouses attended the meetings
last month of Group 1 in Sioux City
(700) and Group 11 in Burlington
(500). In keeping with the schedule
of odd-numbered groups electing of­
ficers in odd-numbered years, the
following were elected:
Officers Elected
Group 1: Chairman—Bruce M.
Kolbe, president, United Central
Bank & Trust Company of Sioux Ci­
ty. Secretary—Bill Hess, vice presi­
dent, Iowa Savings Bank, Coon
Rapids. Mr. Hess also is a member
of the Iowa banking board.
Group 11: Chairman—John F.
O’Neill, president, First National
Bank, Burlington. Secretary—Wil­
liam R. Bernau, chairman and presi­
dent, Peoples Savings Bank, Craw­
fordsville.
It was announced at Sioux City
and Burlington that William Logan,
president of The State Central Sav­
ings Bank, Keokuk, and retiring
Group 11 chairman, is a candidate
for the post of president-elect of the
Iowa Bankers Association at the an­
nual convention next September.

customer service to develop this con­
cept. We pay taxes and reserves and
His candidacy was endorsed by they don’t, and I resent that! I re­
Group 11. Also announced was the sent them calling themselves banks.
candidacy for the offfice of IBA
“This will be a tough year to hold
treasurer of Holmes Foster, presi­ the liability side of the ledger with
dent of Banks of Iowa, Inc., Des that kind of competition in 1983.”
Moines-based multi-bank holding
On the moratorium issue being
company.
discussed by the state legislature,
Harold H. Harms, senior vice Mr. Pike stated, “Those who have
president of Le Mars Savings Bank been giving teary-eyed reports of
and Group 1 chairman the past two bankruptcies can cause a bill to be
years, presided at Sioux City. More passed that would reinstate usury
than a dozen bank equipment and and hurt banks legally.”
service firms displayed the latest in
equipment and programs. Also at
Emphasis on R & D
the Sioux City meeting, about 60
Neil Milner, IBA executive vice
members and guests of the North­ president, in referring to the nation­
west Iowa Group of NABW met the wide effort to repeal the 10% with­
morning of the group meeting (see holding on interest and dividends,
separate story).
said “97% of the people affected
already pay their taxes. One Kansas
“A New Ballgame”
bank estimates it will cost $11.90
L.C. “Bud” Pike, president of the per customer for a three-year period
IBA and of the Farmers Savings to comply with the withholding
Bank in Grundy Center, told his au­ law.” After a quick review of state
diences, “Today it’s a different legislation, Mr. Milner said the IBA
ballgame with savings and loans is “looking at more ways of deliver­
and credit unions breathing down ing educational materials, including
our necks now as banks. But there’s video teleconferencing and video
a difference—we’re profit-oriented. tapes. There will be more emphasis
We believe in profit. We believe in by the IBA on R & D to help banks

LEFT— Dick Taylor, pres., Ist Natl., Sioux City; John Goodenow, pres., Wall Lake Sav., and AI Maser, pres., Ist Natl., Le Mars. RIGHT— E.R.
Bob Manuel, pres., George State; Dave Vaselaar, exec. v.p., Slbley State; Gary Stevenson, v.p., Ist Natl., Sioux City, and Dave Platt a v p

Ist Natl., Paullina.


Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

O

Iowa News

85

HHH

LEFT—Bob Millen, pres., United Central Bank, Des Moines; Dick Ackley, exec, v.p., Union B&T, Ottumwa, and Bill Hummel, v.p, 1st Natl.,
Burlington. RIGHT— Rick Hickman, sr. inv. off., and Cy Kirk, v.p., both with United Central Bank of Des Moines, with Delores and Al Maser,

chmn. & pres., 1st Natl., Le Mars, and pres.-elect of IBA.

3. Loans Sold. “A year ago I cau­
stay on the leading edge of change
tioned about selling classified loans
to stay ahead of competition.
“ It will take a lot of help, time to a neighbor bank. We don’t like
and training to accomplish this so that. I t’s simple—don’t do it!”
4. Classified Loans. “We have not
that bankers will be the ones who
prevail to provide financial service backed off on our classifications, nor
have we sent out word to be tougher.
to customers.”
We want your loans to be good. We
Superintendent Speaks
are almost 33% of loans to capital
Tom Huston, Iowa superinten­ and reserves being classified. Two
dent of banking, spoke briefly to years ago, that figure was 20% I t ’s
alarming! We’ll put back equity in
four points:
1. Real Estate. “Our department your lines of credit by charging off
allows real estate to go on the state­ parts of those loans, so you will be
ment at the loan value, plus cost of supplying the equity. We don’t call
acquiring title. Then, we think bank­ loans—you and your board do. We
ers should be honest with them­ have some people calling the depart­
selves and write it down to true mar­ ment saying bankers say we're do­
ket value—at the present market, ing this. You’re smart people, pro­
not some hoped for future market. perly paid. Now you must stand on
We’ll keep it on the books and keep your own decisions and take your
marking it down (after one year) un­ own heat. We don’t intend to be
til it hits a price where it will again mean or difficult, but we do intend
market itself back into the hands of to improve loans by charging off, if
the public. We will have to keep necessary.”
Mr. Pike, Mr. Milner and Mr.
moving it down in value.”
2. Capital. “The Iowa department Huston addressed both group meet­
remains where it always has been— ings.
we want 8 %. We will work with you
Luncheon Speakers
in the 7s, and the lower in the 7s you
The luncheon speaker in Sioux Ci­
get the more we will work with you.
By staying on top of this we hope to ty was W.T. Maloan, senior vice
keep our banks from working their president and director of education
and training for Thunderbird Finan­
way into a corner.”

cial Corp. of Shawnee, Okla. He re­
viewed some of the situations that
got Penn Square into trouble, and
points to be concerned about: Too
rapid growth, lack of director in­
volvement; documentation review
problems; lack of review and infor­
mation by upstream correspon­
dents.
As a result, he sees in the future:
More secured lending; better review
of documentation; more upstream
review; participations (instead of a
bank holding 100% of a note); writ­
ten loan guidelines; more director
awareness and training; more bank
examiner review and legislation re­
garding participations, disclosure,
letters of credit, officer loans, par­
ticipations per bank, and correct
language on participation forms.
In Burlington, where Bill Logan
presided as Group 11 chairman, he
introduced as luncheon speaker one
of his former University of Iowa
b a sk e tb a ll team m ates —Sharm
Scheurman, now the “Voice of
Iowa” TV sportscaster for Hawkeye
basketball games.
More pictures from the
Group 1 and Group 11
meetings will appear in
the next issue of the

I

N orth western B a n k e r .

I

LEFT— Bob Buenneke, v.p., lowa-Des Moines Natl., and Maxine; Bill Logan, pres., State Central Bank, Keokuk, and Joan, and Gary Frandson, v.p., lowa-Des Moines, Natl. RIGHT—Voldy Vanags, sr. v.p.-inv., lowa-Des Moines Natl.; Andy Westendorf, sr.v.p., Peoples Natl., AI b Ia,
Doris and Dan Keeley, pres., Danville State Savings, and Bernard Kersey, v.p., lowa-Des Moines Natl.

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

Northwestern Banker, March, 1983

86

Iowa News

Northwest NABW Discusses Lobbying
BOUT 60 members and guests of
A
the Northwest Iowa Group of
NABW met during the Group 1
meeting of the Iowa Bankers Asso­
ciation in Sioux City last month.
The focus of the meeting was on lob­
bying and those techniques most
likely to be truly helpful in making
one’s viewpoint known to a legis­
lator.
Kay Stoterau, customer service
officer at Northwestern National
Bank in Sioux City, presided at the
breakfast meeting as chairman of
the Northwest Iowa Group. She re­
viewed the educational thrust of the
national NABW and urged members
to enter qualified persons for the
many scholarships available for
various kinds of educational pro­
grams in banking. Wilma Weeks,
correspondent bank operations of­
ficer with Security National Bank,
Sioux City, is in charge of this pro­
gram for Iowa.
Chairman Stoterau then introduced
Marie Wilson, director of education/human resources for the Iowa
Bankers Association, who was mod-

erator for the panel on “Lobbying
Techniques.’’ She introduced three
panelists: Roger McKellips, presi­
dent, State Bank of Alcester, S.D.,
who is also a State Senator in the
South Dakota legislature; James
O’Kane, a House member of the
Iowa legislature, and Suzanne
O’Dea-Schenken, lobbyist, Des
Moines, who has written a booklet
on the topic.
Mr. McKellips gave these tips to
effectively lobby your represen­
tative: Be early; be well-informed;
pick an opportune time; go to the
right people; concentrate on the im­
portant issues; believe in it yourself
(don’t say “my boss sent me’’);
sincerity. To those tips, Suzanne ad­
ded: Calmness; politeness; be firm
about your position. Mr. O’Kane ad­
ded, “Thank him or her, and perhaps
do some nice things—like the carna­
tion I received from a service group
during the nuclear debate.”
Mr. McKellips also advised that
people should know how to write let­
ters to their legislators—especially
brevity, and include the needed fac-

Committed to
making your
bookstand
apart from the

tual information. All the panelists
stressed that what impresses an
elected person most is how the pro­
posed legislation affects that per­
son, his family or his business direc­
tly, and preferably with an accurate
example. Knowing how the legisla­
tive process works should also be
high on the list of those who wish to
lobby.
□

Promoted in Council Bluffs
The board of directors at First
National Bank of Council Bluffs has
announced the promotion of one vice
president and the election of four of­
ficers.
Marilyn Hughes has been pro­
moted to vice
p re sid en t and
cashier. She has
served as cashier
since 1981, hav­
ing also served
as adm inistra­
tive assistant of
accounting and
accounting of­
ficer.
HUGHES
Promoted to
officer status were: Ilene Jensen, ac­
counting; Erna Munsinger, personal
banking, and Tim Grieder and Su­
san K. White, loan service. Ms. Jen­
sen has been serving as manager of
the accounting department. Ms.
Munsinger has been with the bank
for 18 years as time certificate ad­
ministrator. Mr. Grieder has been on
the personal banking team since
joining the bank three and a half
years ago. Ms. White has served in a
supervisory capacity at the bank for
two years.

Gowrie Farm Rep Hired
The First State Bank of Gowrie
recently announced the hiring of
Doug Follmann as its farm represen­
tative. Mr. Follmann is a graduate
of Iowa State University with a BS
degree in agricultural business,
specializing in finance.

Joins Earling Bank
Todd M. Langenfeld has joined
the staff of Farmers Trust and Sav­
ings Bank, Earling, according to
Mark A. Langenfeld, bank presi­
dent. Todd M. Langenfeld gradu­
ated in December from the Universi­
ty of Iowa with a degree in in­
dustrial relations and finance.

Northwestern
Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Iowa News

0 Colfax

President Elected

Dean A. Schantz has been elected
president and chief executive officer
of the First National Bank in Colfax.
He succeeds James W. Eiler, who has
• joined United Central Bank in Des
Moines as vice president in charge of
loan administration. Mr. Schantz
has been with the Colfax bank one
year as executive vice president.
• Prior to that he was executive vice
president with Tri State Bank of
East Dubuque, 111.
Also announced was the promo­
tion of Iden W. Shissler to executive
• vice president and Ila Mae Sprouse
to cashier. Mr. Shissler previously
was vice president and farm repre­
sentative. Ms. Sprouse was assis­
tant cashier.

Maquoketa Changes Told
m
^

_

0

0

Craig B entrott, president of
Hawkeye Bank and Trust, Maquoketa, recently announced the pro­
motion of Don Henningsen to ex­
ecutive vice president; Loren Lubben to vice president and head of the
farm loan department, and Loras
Herrig to assistant vice president in
the commercial and real estate
department. Richard Molony, a Ber­
nard farmer for over 30 years, was
elected to the board.
Mr. Henningsen has been with the
bank for 17 years and has been head
of the farm loan department for the
last 10. Mr. Lubben has been with
the bank two years. Mr. Herrig joined
the bank four years ago.

Keokuk Banker Dies
•

Funeral services were recently
held for Francis E. “Fritz” Breitenstein, 62, who died February 13 at
the Iowa Methodist Medical Center,
Des Moines. Mr. Breitenstein was a
• lifelong Keokuk resident and at the
time of his death was vice presidentcommercial loans of The State Cen­
tral Bank, Keokuk, where he had
worked fo 45 years. He was the
® banks representative to the Iowa
Bankers Association, city treasurer,
and a member of the Keokuk Cham­
ber of Commerce.

CBCT Branch Approved
f

87

The First National Bank of West
Union recently received approval to
establish a CBCT branch at High­
ways 18 & 150, West Union.


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

WE'VE ADDED
A NEW DIMENSION
TO CORRESPONDENT
BANKING

What’s new
in correspondent banking?
At Valley National Bank it’s our new
vice president and head of our Cor­
respondent Banking Department...
Mark Christen.
Whenever your bank has a need
for any correspondent banking service,
Valley Bank’s Mark Christen responds.
He’s always ready to serve your needs
in-person or over-the-phone, providing
you with Valley Bank’s M l range of
correspondent services, from overline
assistance to transit services.
You can rely on Mark Christen to
respond...professionally and quickly7. He’s
the new dimension we’ve added to cor­
respondent banking at Valley’ National
Bank, and his eagerness to respond to
your needs is the dimension that sets
us apart.

THERE'S N O T H IN G LIKE
M O N E Y IN THE B A N K
THE VALLEY B A N K

Valley National Bank 5
DES MOINES, IOWA 50304

MEMBER FDIC

A ‘BANKS OF IOWA’ BANK

Call Collect (515) 245-6149
Northwestern Banker, March, 1983

88

Iowa News

Fort Dodge Promotions Told®
At United Central Bank & Trust
Company of Fort Dodge, Gary D.
Peterson has been promoted to exEPOSITS and loan figures for Iowa banks reporting deposits of $55 e c u tiv e
vice
m illion or more at year-end are shown in the chart below. Com­ president, and
parative figures from a year ago are featured.
David G. Mc­
(Last three figures omitted)
D e r m o t t and
December 31, 1982
December 31, 1981 Frank J. Kenne
1. lowa-Des Moines Natl............................
$800,002 $579,137 $745,295 $588,334 have been pro­
2. Bankers Tr., Des M oines.......................
528,158
321,109
487,340
294,888 moted to vice
3. Davenport Bank & T ru s t.......................
452,921
171,411
184,934 president status.
411,305
4. Merchants Natl., Cedar R ap ids...........
406,130
187,750
373,457
188,085
Mr. Peterson
5. United Central Bank, Des Moines ........
276,258
136,308
282,250
152,124
has
been with
6. Security Natl., Sioux C it y .....................
258,278
119,097
115,491
237,095
7. Natl. Bank, W aterloo............................
186,597
89,112
183,149
84,816 UCB since 1972
8. First Natl., Iowa C ity ............................
172,215
97,612
144,016
85,744 in the commer-

Largest Banks in Iowa

D

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.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.

Valley Natl., Des M oines.......................
166,834
Dubuque B&T, Co...................................
162,261
First Natl., Dubuque ............................
153,531
American T&S, Dubuque.......................
153,111
First Natl., Sioux City ..........................
151,203
Peoples B&T, W aterloo........................
148,376
Peoples B&T, Cedar R apids.................
144,702
Council Bluffs Sav. Bk...........................
135,586
First Natl., Mason City ........................
133,991
Toy National Bank, Sioux C ity .............
131,356
Northwest B&T, Davenport...................
131,146
Waterloo Savings Bk.............................
129,638
Brenton Natl., Des Moines* .................
125,884
Iowa State B&T, Iowa C ity.....................
125,177
State Bk., Ft. Dodge..............................
119,239
First Natl., M uscatine..........................
114,945
Northwestern Natl., Sioux C ity.............
112,118
Security Sv. Bk., Marshalltown.............
111,006
United Central B&T, Mason City .........
110,482
Union B&T, Ottumwa . . . .......................
110,412
First Natl., Fort Dodge..........................
106,171
Central State, M uscatine.....................
105,316
Hills B&T Co...........................................
101,131
West Des Moines St. B a n k ...................
100,970
Monticello State Bank..........................
99,880
United Central B&T, Fort Dodge*.........
99,149
First Natl., Burlington..........................
98,519
Citizens First Natl., Storm Lake...........
98,382
First Natl., Council B lu ffs .....................
95,401
Peoples T&S, Indianola.........................
94,631
Jasper County Sav. Bk. Newton...........
94,040
Farmers St. Bk., Marion.........................
89,503
Hawkeye B&T, Burlington.....................
88,611
First Natl., Ames ..................................
86,742
Clinton Natl. Bk., Clinton .....................
84,516
Bettendorf B&T Co.................................
83,425
83,269
Hawkeye Capital B&T, Des Moines* . . .
Plaza State, Des M oines.......................
81,729
Atlantic S ta te ........................................
73,979
Fidelity Brenton B&T, Marshalltown . . .
72,764
State B&T, Council B lu ffs.....................
72,683
Maquoketa State Bk..............................
72,233
First Natl., M arion ................................
70,468
Decorah State Bk...................................
69,321
Mahaska St. Bk., Oskaloosa.................
69,256
First T&S, Davenport............................
68,319
First Security B&T, Charles C ity...........
67,055
First Natl., C linton................................
66,724
Jackson St. B&T, Maquoketa...............
64,726
State Central Sav. Bk, Keokuk.............
64,353
Farmers & Mer. B&T, Burlington .........
63,554
Brenton First Natl., Davenport.............
61,127
59,908
First Natl., O ttum w a............................
58,646
Pella Natl., Pella....................................
Houghton State, Red O ak.........
55,728
55,152
Henry Co. Sav. Bk., Mt. Pleasant
‘ merged with Northwest Brenton Natl., Des Moines
‘ formerly Union Tr. & Sav., Ft. Dodge
‘ formerly Capital City St. Bk., Des Moines

Digitized Northwestern
for FRASER Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

82,004
127,337
99,963
82,037
79,863
74,992
59,007
71,721
88,327
77,085
82,930
67,143
70,795
77,018
69,609
88,943
76,520
56,722
65,979
58,451
67,894
42,500
57,412
63,958
55,168
62,436
54,598
48,759
54,096
50,472
49,955
42,867
49,498
44,032
41,226
42,216
48,928
56,297
26,213
47,590
48,792
43,684
36,927
41,910
41,484
48,996
38,250
36,162
37,667
25,502
22,194
39,375
35,186
32,671
38,077
21,996

150,806
158,538
134,073
141,704
139,302
118,369
122,343
120,792
122,273
147,830
121,688
118,015
112,157
115,718
103,975
103,187
108,932
102,085
96,257
107,743
95,953
99,331
82,425
95,902
94,278
94,593
94,687
90,959
92,532
86,544
88,653
81,351
82,477
77,313
77,065
70,413
80,349
71,580
64,352
66,589
69,997
67,734
61,535
59,827
62,411
66,044
54,460
61,804
62,541
59,781
58,707
55,166
55,729
54,188
54,731
46,471

89,912
96,124
90,833
86,092
79,288
68,473
62,141
73,838
86,453
79,075
76,101
66,917
72,658
73,838
66,141
83,424
77,594
56,696
61,334
58,890
70,544
41,435
46,207
58,571
49,118
59,117
53,701
48,524
58,308
45,639
48,542
41,901
51,454
37,910
44,835
43,682
43,014
52,627
23,102
42,169
41,596
44,372
31,878
35,551
40,123
53,641
36,833
36,608
41,080
27,414
20,624
36,730
37,335
32,274
34,446
22,104

'v.

a»«.

D.G. MC DERMOTT

mmmm. ? mm
F.J. KENNE

cial loan department. Mr. McDer­
mott formerly was employed by the
First National Bank of Ames, the
Harlan National Bank and First Na­
tional bank of Missouri Valley. Mr.
Kenne has been with UCB 12 years,
working in operations, data process­
ing and internal control.

Dubuque Promotion Told
John Koppes has been elected ®
assistant vice president of Key City
Bank and Trust Company in Du­
buque, according to Jack Roach,
president. Mr. Koppes, a University
of Dubuque graduate, began his ®
banking career in 1970 and has been
employed by Key City Bank and
Trust Company since 1980.

Elected at Mason City

•

Michael J. O’Hara, 36, has been
elected to the board of directors of
the First National Bank of Mason
City. Mr. O’Hara is president and ®
general manager of the Iowa Kemp­
er Insurance Company, Mason City.

New Directors Named
Farmers & Merchants Savings
Bank of Manchester has elected
Merlyn Havertape, an area farmer;
Gordon Goettsch, a Manchester
dentist, and Jerry Burke, bank vice ®
president, as new directors.

Iowa News

89

Cresco Bank President Named
J.H. “Jack” Thomson, chairman
and chief executive officer of Cresco
Union Savings Bank, has announced
the appointment of John F. O’Byrne
to the post of president of the bank.
Mr. Thomson will continue as the
bank’s chief investment and plan­
ning officer, and trust officer, as well
as serve in a public relations capaci­
ty. Mr. O’Byrne’s duties, in addition
to being the primary contact with
the public in bank transactions, will
be leading the bank’s staff in the
day to day affairs of the bank, as he
is presently doing.

J.H. THOMSON

Count
on
Ron
Kiel.

J.F. O’BYRNE

David T. Larson and Gordon
Koehler were also honored with pro­
motions. Mr. Larson has been named
vice president and cashier and Mr.
Koehler has been named vice pres­
ident. Mr. Larson’s primary area of
responsibility will be as operations
officer and computer coordinator.
Mr. Koehler will head the agricul­
ture and commercial loan depart­
ments.
Mr. Thomson was elected presi­
dent of the bank in 1969, following
the death of then president J.A.
Thomson, in 1968.
Mr. O’Byrne started his banking
career with the Farmers Home Ad­
ministration in Decorah in 1963. He
was graduated from Iowa State Uni­
versity with a BS degree in agricul­
tural business in 1964. He then served
Metropolitan Life Insurance Com­
pany in its farm loan division until
1967 when he joined the Cresco bank
as its farm representative. In 1969
he was named an assistant vice pres­
ident and farm representative. The
post of executive vice president came
to his career in 1978 and January 19,
1983, he was named president.

Joins Wilton Bank
Craig W. Symons has accepted
the position of branch manager and
ag loan officer at the Wilton Savings
Bank, Wilton.
Mr. Symons formerly was ag loan
officer at the First National Bank of
Iowa, Marion.

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

Ron Kiel’s agricultural ex­
perience and recognized expertise
in the area of cash management
has given him a unique under­
standing of community banking
needs.
It’s also given him a personal
commitment to his correspondent
bank customers. They know they
can count on Ron to provide not
only the best in ag overline, data
processing and cash management
services, but the information,
advice and guidance necessary for
a better, more profitable operation.
If that’s the kind of service
you’d like to be able to count on
from a correspondent banker, call
Ron Kiel at Security National today

712/277-6554.

People with
an interest
in you.

SECURITY NATIONAL BANK
S ioux City, Iow a 51101 M em ber F.D.I.C.

Northwestern Banker, March, 1983

90

Des Moines
ANKERS TRUST Company
has promoted Bruce W. Brown
to the position of senior vice presi­
dent and director of personnel.
Mr. Brown
joined Bankers
Trust in 1981 as
director of train­
ing and most re­
cently has held
the position of
vice president
and director of
personnel. Prior
work experience
Bw b r o w n
in human resour­
ces has been with Iowa Beef Pro­
cessors, Midwest Resource Center
and the State of Iowa.
Mr. Brown graduated from Iowa
State University in 1972 and received
his MPA from Drake University in
1979.
B

Herman C. Kilpper, president and
chief executive officer, also announced
the promotions and appointments of
16 other employes. Appointed as
vice presidents were:
Kenneth H. Petersen, who also is
manager of the operations division.
He joins the bank with 13 years of
banking experience, most recently
as vice president and operations
manager with the United States
Bank in Omaha, Neb.
Eric F. Kwiecinski, in trust in­
vestments. He joins from the North­
western Bank in Minneapolis,
Minn., where he was an assistant
vice president in its trust in­
vestments department.
Jack A. Rogers, corporate trust.
He previously served six years with

Northwestern Banker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

in 1982 as an assistant vice presi- <||)
dent.
Gregory R. Tucker, investments
and dealer bank operations. He joined
in 1982 as assistant vice president of
investments.
#
Promoted to assistant vice presi­
dent were: Mark A. Esbeck, com­
mercial lending; Christine Rice, she
was also named assistant auditor,
and James K. Badger, commercial #
banking.
New officers include: Penny R.
Beier, commercial loans; Roger
Perry, loan operations; Kathryn D.
Backman, corporate banking, and •
Margaret A. Hoogerheide and
Christine Meyer were named assis­
tant trust officers.
Craig S. Brenneise was appointed
bank counsel and corporate secre- ®
tary. Prior to joining Bankers Trust
the Genesee Merchants Bank & in 1982 he served three years as an
Trust Co., Flint, Mich.
assistant attorney general in the
Joseph J. Bustin, loan administra­ State Department of Justice. Gary
tion. Mr. Bustin joined Bankers Ortale was promoted to assistant ®
Trust in 1981 as credit manager and controller.
most recently served as assistant
* * *
vice president.
Following the regular quarterly
board of directors meeting of United
Central Bancshares, Inc., Kenneth
C. Myers, president, announced the
election of Oliver
H. Hagen as ex­
e cu ti ve
vice
president and a
member of the
senior manage­
ment group of
K.H. PETERSEN
E.F. KWIECINSKI
the corporation.
Mr. Hagen will
serve as the
chief credit of­
O.H. HAGEN
ficer of the bank
holding company with responsibili­
ty for the quality of the loan, lease
and mortgage portfolios of the
twelve Iowa UCB banks as well as
for two of its non-banking subsid­
iaries, UCB Leasing Company and
First Mortgage Investment Com­
pany.
Mr. Hagen, age 50, has been presi­
dent and chief executive officer of
First Bank of North Dakota, N.A.,
Fargo since 1980, and from 1975 to
1980 was president and chief exec­
utive officer of the First National
Bank of Willmar, Minnesota. He be­
gan his banking career with the
First National Bank of Austin, Min­
nesota, starting as an ag trainee and
L.H. MAC KAY
J.K. BADGER
rising to become head of that bank’s
Linda Howarth MacKay, com- commercial lending department.
mercial banking division. She joined
He graduated from the Universi-

91

Ivan L. Johnson, Senior Vice President and Michael
Austin, Vice President

William B. Greaves, Vice President and Cyrus D.
Kirk, Vice President

n today’s rapidly changing bank­
ing environment, you can always
count on one thing...United
Central Bank’s commitment to
provide Iowa bankers with quality
financial services. In the face of
deregulation and technological de­
velopments, our Correspondent
Bankers are prepared to help you
meet the challenges of the 80’s,
while not losing sight of your needs
of today.

I

Judy F. Willis, Secretary and Margo E. Foxhoven,
Operations Assistant

ur Correspondent Banking
staff has the experience to
understand your needs and
know how to meet them. If you’re
not getting the service you deserve
from your correspondent bank,
call us at 1-800-362-1615. NOW’S
THE TIME, and UCB’s the place to
satisfy your correspondent bank­
ing needs.

O

lu c b l

UNITEDCENTRAL BANK
OF DES MOINES, N.A. AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC.
Member FDIC, Locust at Sixth, Des Moines, Iowa 50309


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

Northwestern Banker, March, 1983

92
Iowa News
ty of Minnesota, College of Agri­
culture, with a BS degree, He also
has graduated from a number of
banking schools including: School of
Bank Marketing and the National
Trust School, Northwestern Univer­
sity; Minnesota School of Banking,
St. Olaf College; Graduate School of
Banking, and Post-Graduate School
of Banking, Madison, Wisconsin.
* * *
George F. Milligan, president and
chief operating officer of the IowaDes Moines National Bank, recently
announced the following informa­
tion following the bank’s annual
shareholders meeting:
Merlin J. Foreman has joined the
bank as senior vice president. He
will be responsible for metropolitan
commercial banking, small business
banking and construction and mort­
gage banking. Mr. Foreman previ­
ously was with Iowa-Des Moines as
vice president, commercial banking,
and most recently served as vice
president and controller for the
Pester Corporation.

was named assistant vice president,
as was Carol Dingeman at the main
bank.
Richard E. Miller was promoted
to assistant vice president and ap­
pointed office manager at the bank’s
Southeast 14th and Indianola Road
location. Margaret Barnes, manager
of the Pleasant Hill office, was pro­
moted to assistant cashier.
* * *
Roy W. Messerschmidt, president
of First National Bank of West Des
Moines, has announced recent boardapproved promotions and reinstate­
ments.
Rick Messerschmidt has been pro­
moted to vice president of First Na­
tional. A graduate of the University
of South Dakota, Mr. Messer­
schmidt has been with the bank for
214 years. He previously served as a
bank examiner for the State of Iowa.

sell, in a cash transaction, all of the
outstanding shares of stock of First
Mortgage Investment Company, Kan­
sas City, Missouri, its mortgage
banking subsidiary, to John Trantham, president of First Mortgage
Investment Company. The transac­
tion is subject to certain conditions,
including approval by investors and
agencies for which the mortgage
company services loans.

Charles Walcott Retires At
1st National, Sioux City

^

Charles H. Walcott, executive
vice president of First National
Bank, Sioux City, was honored at a
special public retirement reception
late last month hosted by First National Bank. Mr. Walcott retired
from First National at the end of
February, after more than 47 years
in banking.
Mr. Walcott joined First National •
Bank in Sioux City in mid-1965 as
vice president, and was elected to
the bank’s board of directors in
1966. He was appointed senior vice
president in 1970 and was named ex- #
ecutive vice president of First Na­
tional in 1974. He began his career
mm
\
m
m
\
in banking in 1935 as a messenger
R. MESSERSCHMIDT
L.A. TIBBETTS
for Security National Bank. He served
Larry A. Tibbetts has been pro­ in all departments of the bank and 9
moted from the position of loan of­ was promoted through the ranks to
ficer to assistant vice president. He president in 1959. During the years,
was
previously associated with Pos­ Mr. Walcott worked in smaller
M.J. FOREMAN
W.W. PIRNOT
tal
Finance
in Oklahoma City and banks in Smithland and Rock
Walter W. Pirnot, senior vice
•
worked
for
Cash
Credit Corporation Valley, la., and in Burke, S.D.
president, has assumed additional
He left Sioux City in mid 1963 to
responsibilities involving the areas in Des Moines for 15 years.
join First National Bank in Chicago
* * *
of international banking and agri­
as vice president in charge of the
cultural and corporate services in
bank’s
agricultural credit division.
Woodward
G.
Brenton
has
been
addition to his previous responsibili­
Mr.
Walcott
returned to Sioux City ®
ty for the national and regional appointed vice president of Brenton
in
late
1964
as the executive vice
banking and financial institution National Bank
president
of
Pioneer
Valley Savings
departments. Mr. Pirnot joined the of Des Moines,
Bank
in
Sergeant
Bluff,
then joined
a
c
c
o
rd
in
g
to
bank in 1965.
First
National
the
following
year.
Harry C. Benson, Northwest Ban- Robert D. Mc­
Mr.
Walcott
was
active
in all ®
corporation regional president, has Kee, president.
phases
of
the
banking
industry
dur­
Mr.
Brenton
is
been elected to the Iowa-Des Moines’
ing his 47 years. He was vice presi­
board of directors. Mr. Benson, who responsible for
dent and treasurer of the Iowa
became region IV president in 1982, commercial lend­
Bankers Association in 1957-58 and
formerly was president and chief ex­ ing activities in
was
president of the Association in ®
Des
Moines
and
ecutive officer of Midland National
1961-62.
Mr. Walcott attended the
central Iowa.
Bank of Minneapolis.
W.G. BRENTON
Central
States
School of Banking at
D u r i n g the
* * *
last five years in New York he was the University of Wisconsin in 1947,
Marie Vranich has been promoted affiliated with Marine Midland 1948, and 1949. He served on the ^
to vice president and cashier of East Bank and Manufacturers Hanover staff of the Central States School of ®
Des Moines National Bank, accor­ Trust.
Banking for three years in the late
ding to John J. McLaughlin, chair­
1950’s. He is a graduate of the
* * *
man of the bank.
Senior Bank Officers School spon­
Marilyn Cronin, who manages the
United Central Bancshares, Inc. sored by the Independent Bankers ^
East University and Hubbell office, has entered into an agreement to Association at Harvard University.
DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Iowa News

93

Shenandoah Bank
* Names New President
George H. Perry has been named
president of City National Bank,
Shenandoah. Mr. Perry, who previ• ously was vice president, succeeds
Robert S. Ross. Mr. Ross has served
as the bank’s president and chief ex­
ecutive officer since 1973, and will
remain at the bank, replacing Sam
# K. Knittle as chairman. Mr. Ross
also serves as president of CNB
Corp., the bank’s parent company.
Mr. Knittle, who has been chair­
man since 1976 and has been asso# ciated with the bank for the past 59
years, will continue his duties as
vice president of the bank.

Perry Bank Promotes Three
Perry State Bank, Perry, recently
promoted Dwayne Hochhalter to ex^ ecutive vice president; Dr. Robert K.
Gubser to vice president and trust
officer, and Vicki S. Stanley to of­
fice manager and assistant trust of­
ficer.
^
Mr. Hochhalter joined the bank in
1981 as vice president. Mr. Gubser
has been with the bank 13 years,
most recently serving as manager of
the Bagley and Jamaica offices. Ms.
^ Stanley has eight years of exper­
ience with the bank.

•

NOW EVEN
SMALL
BANKSCAN
OFFER
BIG BANK
ESTATE
PLANNING.

Eldridge Elections Told

James R. Tank, president of Cen­
tral Trust and Savings Bank, Eld­
ridge, has announced the election of
Jack Darland to the bank’s board of
® directors. Mr. Darland is an at­
torney with the law firm of Wells,
Brubaker, deSilva, Gallagher, Flynn
& Darland P.C. of Davenport.

J. DARLAND

You don't have to be a big bank to give your cus­
tomers big bank services—like estate planning. Now,
First National Bank can bring it to you.
That's right. At First National, our trust department
is full of estate planning experts. Our correspondent
bank officers—Bill Manring, Stan Hulett, Bob Holt or
John Karn—will be glad to set up a group seminar or an
individual consultation with you.
So give us a call. With the help of First National, you
can offer big bank estate planning, too. No matter what
size you are.

W.G. JANSEN

Wanda C. Jansen was elected to
the office position of assistant
cashier. She has been with the bank
since 1975.

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

First N ational B a n k

St. Joseph, MO 64502 • Call: (816) 279-2721
Affiliate of First Midwest Bancorp., Inc.

Northwestern Banker, March, 1983

94

Iowa News

Dysart Bank Holds Open House

Grinneil Banker Recognized ^
Lucille M. Potts was recently
recognized for her 54 years of ser­
vice to the Poweshiek County Na­
tional Bank of Grinneil and to the
Iowa banking industry.
•
A vice president at the bank, Ms.
Potts started her banking career
January 1, 1929, with the Citizens
National Bank, which later became
the Poweshiek County National •
Bank.

AN open house was held in honor of the opening of First National Bank of Tama County’s

new banking facility located at 402 Main in Dysart. The bank, which also has offices in
Clutier and Vining, offers night depository, safety deposit boxes, drive-through banking
and Saturday morning banking. It also offers a variety of accounts. Personnel at the new
bank are Kevin Eikamp, office manager and executive vice president; Bill Heaford, assis­
tant vice president, and Debi Miller, June Ruedy and Elaine Schirm, tellers. Time and
temperature is a nice convenience provided by the new bank sign made by Daktronics, Inc.

Sioux City Promotes Three

as a staff accountant. Mr. Sandvig
most
recently was associated with
Following the annual stockholders’
meeting of the First National Bank Central National Bank in Chicago,
in Sioux City, Richard C. Taylor, 111., as vice president-trust counsel
president, announced the promo­ and manager of personal trust ser­
vices.
tions of George
D. Weaver to
Advanced in Clinton
vice president
J.L. Menges, president and chief
and controller
executive officer of First National
and Ronald A.
Bank, Clinton, recently announced
Jorgensen to ac­
the promotion of James F. Andresen
counting officer.
and Douglas P. Johnson as senior
He also reported
vice presidents, and William E.
that Ralph A.
Zickau as senior vice president and
S a n d v i g has
cashier.
joined the bank
Other promotions include: Bruce
as vice president
M. Dunlap, vice president and trust
and trust officer.
officer; Sharon Aim, trust opera­
tions officer, and Linda C. Wolford,
customer service officer.
Announcement was also made by
Mr. Menges of the bank’s plans to
substantially remodel its downtown
lobby facilities to include an in­
vestor center and drive-up ATM,
and the remodeling of its downtown
drive-up auto bank facility. Comple­
tion of the project is scheduled for
R.A. JORGENSEN
R.B. SANDVIG
April,
1983.
Prior to joining First National in
1980 as controller, Mr. Weaver was
associated with a Council Bluffs Retired Milford Banker Dies
bank for nearly seven years. Mr.
S.I. Russell, 82, longtime banker
Jorgensen joined the bank in 1979
in Milford, died recently. He began
his banking career in 1917 at the
State Bank of Dubois, where he was
employed until 1934. In 1935 he
became cashier of the Dickinson
County Savings Bank in Milford
and served as president from 1937
until 1973.
DigitizedNorthwestern
for FRASERBanker, March, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I.C.F. President Dies
Raymond Wayne Liljegren, presi­
dent of the Iowa College Founda­
tion, died last month of a heart at­
tack. With his death, Iowa loses a
tireless worker for independent high­
er education, a consummate sales­
man and a man of integrity and com­
passion.
When he first began work with
the ICF, Mr. Liljegren established a
bankers advisory board to assist
him in telling the needs of the Iowa
private colleges to the banks in
Iowa, and actively soliciting their
financial support. In the ensuing
years, Mr. Liljegren established a
great rapport with the banks and
counted hundreds of bankers in
Iowa as personal friends. He was a
familiar figure at each of the 10
group meetings in February and
May, as well as at the state conven­
tion. Special recognition for Mr. Lil­
jegren and for the outstanding work
he accomplished on behalf of Iowa’s
private colleges was given at the
meetings of Group 1 and Group 11
in Sioux City and Burlington by
L.C. Pike, president of the Iowa
Bankers Association.
Mr. Liljegren was graduated from
De Paul University, and has an hon­
orary doctorate from Morningside
College. He first worked at Prentice
Hall in 1949 and joined Morningside
College in 1952, serving as director
of administration, director of devel­
opment and assistant to the pres­
ident.
In 1958 he became executive di­
rector of Associated Colleges of Col­
orado, Denver, and in 1960, vice
president of Jamestown College,
North Dakota, and also executive
director of North Dakota Indepen­
dent College Funds. He joined the
Iowa College Foundation in 1963
and is the only person ever to serve
at three foundations such as ICF.

THE WAY WE PUT IT TOGETHER 15 WMAT 5E T5 U5 APART.
First national Bank • West Union, Iowa

4015 Alexandra Drive • Box 2097
Waterloo, Iowa 50704
Phone 319-234-6641


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

The future looks
almost n good
to bo trim.

The MasterCard I™ debit card is an
innovation that responds to the changing
attitudes of your customers.
Designed around the latest technology,
MasterCard I will give your customers:
• Worldwide access to transaction
accounts at over three million
MasterCard ®merchants
• ATM access
• Cash advance capabilities at over
72,000 banking offices
• Descriptive transaction reporting
And, while MasterCard I works like a
check, it eliminates the problems often
associated with check writing and the need
to carry large amounts of cash.
As beneficial as MasterCard I is for the
consumer, it will prove to be even more so
for your financial institution. The MasterCard
brand is recognized worldwide and it makes
you part of a controlled delivery system

that is already in place. MasterCard II
enhances your present ATM program and
can be your link to ATM networks of
the future.
In addition, MasterCard H will be
profitable for your institution — an
excellent source of fee income and an
indispensable feature of your transaction
account package.
MasterCard I is a program that you
manage. Banco Card Services removes
the complexity of execution through
marketing, operational and systems
support. For more information, contact
the Banco Card Services office in your area.
Des Moines
Minneapolis
Omaha

We believe the debit card holds the
same growth potential that credit cards
held in the 1970’s...growth that you can
tap today.

BANCO CARD SERVICES

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

515-245-3248
612-372-9622
402-536-2478

A Division of the lowa-Des Moines National Bank
Seventh & Walnut • Des Moines, Iowa 50304