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m m y y H J i l M M W iT ![ ; «T3«¡ i 1^ ■ # W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ‘ THIS MAN MEANS BUSINESS. He's Stan Farmer, your MNB Correspondent banker. MNB's Stan Farmer means business — more business for you and your bank. He can help you say "yes" to your valuable bank customers when their financial need exceeds your ability to fulfill it. Stan has the knowledge and experience to work with you and your customer on agricultural loans, or commercial and real estate loans. He w ill also consult with you on your personal plans for bank ownership. He means business when it comes to assisting with your day-to-day cash management needs, as well. In addition to providing standard services — such as federal fund transactions, short-term investments and check clearing — Stan and our MNB https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Correspondent banking staff can help you deal with critical cash transfer deadlines, complicated collection requirements, international transactions and difficult check clearing problems. Additionally, Stan w ill work with you to provide operational innovations that prepare your bank for any service need. At MNB, we're dedicated to bringing together the resources, experience and services you want in a correspondent bank. That's MNB's commitment to productivity, so talk to Stan, soon. When he says he can help your bank's business grow, he means business. Call Stan at 319/398-4320 or 1-800-332-5991, toll free, today. Merchants National Bank is i Cedar Rapids, Iowa 52401 Member F.D.I.C. A BANKS OF IOWA BANK 3 When Guaranty Bank of Dallas moved to Travelers Express for their Money Order ® and Official Check programs, they left the time and cost of the backroom paperwork behind them. For over eight years, Travelers Express has done the reconciling, storing, tracing, and stop ^paym ents, while Guaranty retained control and earned more cash income. The right move for Guaranty can be the right move for your institution, too. Travelers Express Money Orders are supplied to you at no cost, so you have a profit-making system with no invest ment. Travelers Express receives a minimal fee for each money order issued, while you determine your customer charge. Travelers Express Official Checks are an unlimited-amount item that substitutes for your present authorized checks. You earn income with increased balances and cash income from the program. Just as important, you reduce the operating expenses of backroom paperwork. And, Travelers Express does not com pete for your customers’ attention. We’re Travelers Expressly Working for You-with over 100 representatives nationwide. Make the right move with your remit tance programs. Call Donald Dix, Vice President of Sales, 1/800-328-5678. Travelers Expressly Working For You® U Travelers Express A GREY H O U N D COMPANY * 5075 Wayzata Boulevard, Minneapolis MN 55416 Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 Q NOBMWESTERN iJ w H MARCH 1985 • K A ^ i t c h , while the gnomes make paper disappear. îV 92nd Year • No. 1458 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES FEATURES 17 Improving investment earnings An exclusive Northwestern Banker Survey 21 Asset-based lenders Allen Olson describes his company’s services 22 Efficient processing Brandt equipment satisfies commercial customers 24 Community banker’s analysis Iowan Wm. Ronan assesses economy for 1985 DEPARTMENTS 6 10 12 28 29 31 32 39 42 44 46 49 50 53 54 61 72 78 Bank Promotions Convention Calendar Corporate News Wisconsin South Dakota Minnesota Twin Cities North Dakota Wyoming Montana Colorado Illinois Chicago Nebraska Omaha Iowa Des Moines Index of Advertisers Their secret is the magic of Freddie M ac’s MIDANET® II. This system lets your computer automatically send monthly accounting reports to Freddie Mac. The results? Your staff is virtually free from paper work. In fact, it can mean as much as 75% less labor. In addition to ,~nj the savings in time, MIDANET II will also mean far fewer errors. Getting Freddie M ac’s MIDANET II working for you is fast and easy, too. All it takes is a call to someone who knows— a Freddie Mac gnome. © 1985, FHLMC THE GNOMES KNOWsm NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Phone (515) 244-8163 Publisher & Editor Associate Publisher Associate Editor Consultant Ben Haller, Jr. Robert Cronin Becky McBurney Malcolm K. Freeland No. 1458 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POSTM ASTER: Send all address changes to Northwestern Banker, 306 Fifteenth Street, Des Moines, Iowa 50309. Digitized Northwestern for FRASER Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O Freddie M ac Federal Home Loan Mortgage Corporation Owned by America’s Savings Institutions J y y/fets C» 7S '/ - 7 ■ How to wrap up big deals without using papfer. THE GNOM ES Recently the gnomes of Freddie Mac completed a 54 million dollar mortgage transaction in just nine minutes by eliminating practically all paper work. How’d they do it? By using an exclusive Freddie Mac computerized system called MIDANET® (Mortgage Information Direct Access Network). ■ This free customer service cuts down errors, saves time and trouble and reduces paper work. ■ Paper’s fine for wrapping up birthday gifts, but for mortgage transactions, nothing’s finer than MIDANET. Freddie M ac ■ Marketing Communications ■ 1776 G Street, N.W. ■ P.O. Box 37248 ■ Washington, D .C. 20013-7248 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis © 1985, FH L M C . Freddie M ac Federal Home Loan Mortgage Corporation Owned by America’s Savings Institutions 6 Bank Promotions ROMOTIONS and other an nouncements have been made by the following banks and holding companies: American National Bank, St. Joseph, Mo.: A .J. “Ja ck ” Canaday has been elected chairm an and chief executive officer. He suc ceeds Gerald R. Sprong as CEO, since Mr. Sprong will devote his time now to du ties as president and C EO of A.J. CANADY Ameribanc hold ing company. As chairman, Mr. Canaday succeeds Charles K. Rich mond, who has assumed the position as chairman of the bank’s executive committee, a post also relinquished by Mr. Sprong. Mr. Canaday formerly was execu tive vice president and director at First National Bank of Omaha, P J where he had served since joining the bank in 1967. A native of Springfield, Mo., Mr. Canaday joined the FDIC in 1952, then became presi dent in 1958 of the Bank of Indepen dence, serving there until moving to Omaha. Boatmen’s Bancshares, Inc., St. Louis: The merger of CharterCorp of Kansas City into Boatmen’s holding company was completed January 25, according to Donald N. Brandin, chairman and CEO. CharterCorp’s flagship bank, First National Bank of Kansas City, now operates as Boatmen’s First National Bank of Kansas City. Gordon E. Wells, who had been chairman and CEO of CharterCorp and First National, has been elected vice chairman of Boat men’s Bancshares. Centerre Bank, St. Louis: James J . Kerley, Jr., has been elected se nior executive vice president in charge of corporate banking. The in ternational, national, metropolitan and special industry lending func tions of the bank will report to him. Additionally, new executive vice presidents are: Raymond B. John son, in charge of the Central Grou which includes metropolitan an correspondent banking function; LeGrande Rives, director of the op erations division, and John W. Rowe, head of investment bankiu division. Keith R. Krieg was electe senior vice president and is director of the product development division. Charles F. Teschner, 64, who re tired in 1970 after a 35-year caree^ with the bank, died last month fol lowing a long illness. Commerce Bank of Kansas City: Jonathan M. Kemper, executive vice president for the commercial bank# ing groups, has been elected a direc tor of the bank. He joined the bank in 1982. He had previously been a commercial banking officer with Citicorp in Chicago, an a ssistan # bank examiner with the Federal Reserve Bank of New York and earlier was with a New York securities firm. He has a BA from Harvard, and an MBA from H ar# vard Graduate School of Business Administration. New officers include Bruce E. Lacoss, vice president for credit department and loan review func® tions, and John L. Klein, assistant vice president and assistant man ager of installment loan administra tion. Continental Bank, Chicago: Five new directors have been elected to the bank’s board of directors at re cent meetings: Richard B. Ogilvie, 61, former Governor of Illinois and Chicago attorney; Francis E. Fergu son, 63, chairman of Northwestern Mutual Life Ins. Co., Milwaukee; Archie E. Boe, 63, former chairman of Allstate Insurance Companies# and former president of Sears, Roebuck and Co.; John H. Johnson, 67, president and publisher of Johnson Publishing Company, Inc., and Leonard H. Lavin, 65, ch air# man, CEO and president of AlbertoCulver Company. The five also were elected to the board of directors of the holding company, Continental Illinois C or# poration. Drovers Bank of Chicago: James J . Carmody, president, last month announced the appointment o ^ Howard H. Elliott as vice president and controller, David Green to vice Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 'president and general counsel, and Carol A. Gloor as associate general counsel. Mr. Elliott, who was previously vice president and controller at the 'Glenview State Bank, another affili ate of the Cole-Taylor Financial Group, Inc., will be responsible for accounting operations at Drovers Bank, and for internal and external 'reporting and profit planning. He is a graduate of Northern Illinois Uni versity where he received his MBA. He is also a Certified Public Accoun ta n t. Mr. Green will head the legal de partment at Drovers and coordinate legal efforts at all Cole-Taylor banks. He was previously associate ^general counsel. He is a graduate of John Marshall Law School and has a Bachelor of Music Education and Master of Music from Northwestern University. I Ms. Gloor, who received her JD degree from Northwestern Universi ty Law School, previously was in private practice. First Interstate Bancorp, Los ^Angeles: Five officer promotions have been announced: Peter J . Ber ner, vice president-asset based fi nancing; Ilze C. Grace, vice presi dent-consumer marketing; Kathleen >Hext, audit manager-corporate audit; Ann M. Coons and Julius Loeser, senior counsel. First National Bank, St. Joseph, «Mo.: W. Dale Maudlin, president, whas annnounced the promotion of Richard J . Garvey to assistant vice president and Renee Fiddler-Hurd to correspondent bank officer. Mr. ^Garvey joined the bank last year and is primarily responsible for busi ness loans and customer relation ships. Renee Fiddler-Hurd will work ^w ith First National correspondents in Missouri, Iowa, Nebraska, Kan sas and Illinois. She has been with First Bank for 10 years, serving five years at the affiliated First Stock ^Yards Bank as a teller and commer cial loan clerk before transferring to First National’s correspondent bank department as secretary. Harris Bank, Chicago: Mary-Jane ^Fletcher Rankin has joined the bank as vice president and marketing di rector of the personal trust group. Mrs. Rankin previously was vice nresident at Northern Trust Com p a n y , and formerly with Bank Mar keting Association. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 Three new senior vice presidents addition, Jenifer J . Edelman was are: Robert J . Genetski, chief econo elected a residential loan officer. mist; Richard J . Moreland, head of In the United Missouri Bank of the treasury group of the invest Kansas City, these trust depart ment department, and Richard J. ment changes were noted: Michael Brown, head of the financial institu L. McAuley to senior vice president tions and international divisions in and manager of the trust real estate the banking department. division; Dawn M. Powell to assis United Missouri Bancshares, Inc., tant trust officer in the employee Kansas City: William Terry Fuld- benefits division; Ruth Bowers to ner, president of EFCO Corporation assistant trust officer in the trust in Monett, Mo., and Thom R. Cooper, real estate division; Russell W. chairman and owner of Jack Cooper Bloemker to assistant vice president Transport Co., Inc., Kansas City, of the corporate trust division; Don have been elected to the holding ald J . Green to pension services offi cer in the employee benefits divi company’s board of directors. Charlotte K. Shelton has joined sion, and Stephanie L. Taylor to as United Missouri holding company sistant vice president in the stock as vice president and director of transfer department. training. She was formerly associ ated with another area bank. School of Banking of South At the affiliated United Missouri Mortgage Company, William J . Bolt Offers a Graduate Course was promoted to chairman and The School of Banking of the CEO. He continues as vice chairman South, Baton Rouge, La., will offer a of United Missouri Bank of Kansas special one-week program, Develop City and as treasurer of the holding ment and Management of Financial company. He has been with United Products, for its graduates on May Missouri since 1956. 26-31, 1985 according to Karl Shel Also at United Missouri Mort ton, president of the School and ex gage, the following were promoted: ecutive vice president of Southeast Harold E. Hatch to executive vice Bank in Miami, Fla. The program president and chief operating offi will feature an internationally cer; Jam es A. Hall to vice president known faculty to address some of to and responsible for construction and day’s key issues facing the commer commercial loans; Robert J . Harr to cial banking industry. vice president and responsible for The School of Banking of the developing real estate loans; Regi South is sponsored by bankers asso nald J. Smith to vice preisdent and ciations from 15 southern states and responsible for industrial revenue has graduated over 8,000 bankers in bond and residential financing. In its 37 year history. —Our 65th Year— TH E CROP H A IL PRO TECTIO N F A R M E R S PREFER STATEMENT OF CONDITION At Close of Business December 31, 1984 ADMITTED ASSETS U.S. Government B o n d s ...................... Accrued Interest, etc............................... Cash in Bank and Home O ffic e ............ $8,543,123.84 287,374.19 445,350.66 Total Admitted A s s e ts .................... $9,275,848.69 LIABILITIES Reserve for Federal and State T a x e s................................ Other L ia b ilitie s .................................................................. $ 46,522.09 836,100.00 Total Liabilities ............................................................ Funds for Policyholder P ro te ctio n .................................... $ 882,622.09 8,393,226.60 $9,275,848.69 Securities carried at $400,056.00 in above statement are deposited with public authorities as required by law. SQUARE DEAL INSURANCE COMPANY DES MOINES, IOWA 50308 (515) 282-0497 n^Jutual Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 m onths of m ark et re s e a rc h stand squarely behind o u r new business catalo g . That m eans you can , too . 18 full months of market tests and end-user interviews have pin pointed the business checks your customers most want and need. Including checks they believe they have to look outside your institution to find. That’s why our new business catalog puts computer checks and one-write pegboard systems up front, side by side with traditional checks. Your customers can see all their options at a glance. So you capture their orders right then and there. Gain control over the quality of checks entering your processing system. And bring all your new customers within reach of your check revenue strategy. The difference betw een a p rin ter and Best of all, you add that extra income without adding extra hassle for your personnel. Because, as revolutionary as this catalog is, it still makes good use of the many lessons we’ve learned in 70 years of business. Your people will find the Deluxe catalog the most efficient catalog available today. And that translates into valuable time saved opening new commercial accounts. Time better spent selling your services. Take a look at the business catalog market research wrote. Compare it to any other catalog in the industry. You’ll find it’s a gold mine. For you. Your personnel. And your customers. i l l DELUXE Check Printers, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 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. 18-20— RMA Effective Selling Skills Seminar, Denver, Colo. Mar. 26-29— BAI Check Processing Confer ence, Dearborn, Mich. Apr. 14-18— BAI Bank Audit Conference, Sheraton, Washington, D.C. Apr. 28-May 1— BMA Advertising Confer ence, The Wistin Hotel, Chicago, III. Apr. 30-May 3— BAI Accounting & Finance Conference, Hyatt Regency, San Fran cisco. May 5-8— RMA Commercial Loan Documen tation Workshop, Hyatt Regency, Kansas City, MO. May 8-10— RMA Problem Loan Workouts Workshops, Chicago Sheraton Plaza, Chicago. May 13-17— BAI Bank Tax Conference, Hyatt Regency, Washington, D.C. May 26-31 — BMA Essentials of Bank Mar keting School, University of Colorado, Boulder. May 26-31 — BMA School of Trust and Per sonal Financial Services Sales & Mar keting, University of Colorado, Boulder. May 26-June 7— BMA School of Bank Mar keting, University of Colorado, Boulder. State Conventions & Schools Colorado: Apr. 11—CBA/BAI Annual Spring Confer ence, Denver. Apr. 21-23—CBA Ag Banking Conference, Colorado Springs. June 6-8—CBA Annual Convention, Broad moor Hotel, Colorado Springs. June 13-15— NABW State Conference, Shera ton Hotel, Steamboat Springs. Sept. 14-17— IBC Annual Convention, Key stone. Illinois: Mar. 27, 28—IBA Asset/LiabiIity Manage ment Conference, Holiday Inn, Decatur, and Sheraton Hotel, Naperville. May 4-6—NABW State Conference, Clocktower, Rockford Area. May 6-7—IBA Trust Conference, Arlington Heights Hilton, Arlington Park. May 20-31— Illinois Bankers School, South ern Illinois University, Carbondale. June 5-7—IBA Annual Convention, Marriott Chicago Hotel. Sept. 11-12—IBA Retail Banking Confer ence, Clarion Hotel, St. Louis. Sept. 25-26—IBA Agricultural Credit Con ference, Holiday Inn, Decatur. Oct. 9-10—IBA Marketing Conference, Ramada Renaissance Hotel, Springfield. Nov. 20-21 — IBA Bank Management Confer ence, Holiday Inn, Decatur. Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa: Mar. 18-20— IBA Ag Credit Conference, Scheman Center, Iowa State University, Ames. Apr. 12—IIB Spring Seminar, Cedar Rapids. Apr. 13-17— IBA Washington D.C. Trip. Apr. 16—IIB Spring Seminar, Denison. Apr. 18— IIB Spring Seminar, Des Moines. Apr. 29-30— IBA CEO Conference, Hotel Fort Des Moines. May 8-10— NABW State Conference, The Savery, Des Moines. May 20-21 — Iowa Young Bankers Con ference, Des Moines. June 10-21— IBA Ag Credit School, Ames. June 23-28— Iowa School of Banking, Iowa City. July 18-20— IIB Annual Convention, The New Inn, Lake Okoboji. Sept. 22-24—IBA 99th Annual Convention, Des Moines. Nov. 13-14— IBA Consumer Lending/Retail Banking Conference. Minnesota: Apr. 17-18—MBA Operations Conference. May 2-4—NABW State Conference, Duluth Radisson, Duluth. May 7-10— MBA Washington Legislative Conference, Washington, D.C. June 10-12— MBA Annual Convention, Amfac Hotel, Minneapolis. June 23-28— Minnesota School of Banking, St. Olaf College, Northfield. July 21-26—Midwest Banking Institute, Uni versity of Minnesota, Morris. Aug. 11-16— MBA Commercial Lending School, St. Olaf College, Northfield. Aug. 22-25— Independent Bankers of Min nesota Annual Convention, Breezy Point Resort, Brainerd. Montana: Apr. 4-5— MBA Marketing Conference, Holi day Inn, Great Falls. May 1-3— MBA Retail Bankers Conference, Sheraton Hotel, Missoula. May 8-10— NABW State Conference, Heri tage Inn, Great Falls. May 16-17— MBA Trust Conference, Helena. May 23-24— MBA Commercial Bankers Con ference, Great Falls. June 13-14— MBA Real Estate Conference, Outlaw Inn, Kalispell. June 25-28— MBA 82nd Annual Convention, Sun Valley, Idaho. Nebraska: Mar. 20-21 — NBA Ag Outlook Conference, Kearney Holiday Inn. Mar. 24-29—Schools of Banking Intermedi ate School (1st session), Regency West, Omaha. Apr. 11-14— NABW State Conference, Cornhusker Hotel, Lincoln. Apr. 14-19—Schools of Banking Commer cial Lending, Regency West, Omaha. May 8-10— NBA 88th Annual Convention, Lincoln Cornhusker. July 7-12—Schools of Banking Trust School, Regency West, Omaha. Sept. 8-13—Schools of Banking Basic School (2nd session), Rodeway Inn, O v ^ land Park, Kan. Sept. 22-27—Schools of Banking Intermedi ate School, Rodeway Inn, Overland Park, Kan. Oct. 6-10—Schools of Banking A dvanc^j School, Regency West, Omaha. ^ North Dakota: Apr. 11-12— NDBA Agricultural Credit Con ference, Seven Seas, Mandan. Apr. 15-17— NDBA Washington L e g is la tif Visit, J.W. Marriott Hotel. Apr. 24-26— NABW State Conference, River side Sheraton, Minto. Apr. 21-23— NDBA/SDBA Trust Conference, Sheraton Inn, Aberdeen, S.D. May 1-3— ICBND and Minnesota In d e p e f dent Bankers Joint Washington Visit. May 9-10— NDBA Marketing Conference, Holiday Inn, Bismarck. May 19-24— NDBA North Dakota School of Banking, University of North Dakota, Grand Forks. f June 10-11 — NDBA Annual Convention, Holiday Inn, Bismarck. July 10-12— Upper midwest Agricultural Credit Conference, Seven Sea Motor Inn, Mandan. Sept. 16— NDBA Northeast Group m e e tir f Devils Lake. Sept. 17— NDBA Northwest Group meeting, Williston. Sept. 18— NDBA Southwest Group meeting, Mandan. Sept. 19— NDBA Southeast Group m e e tir f Wahpeton. Sept. 25-27— ICBND Annual Convention, Bismarck. South Dakota: Apr. 3-4—SDBA Ag Credit Confèrent®, Kings Inn, Pierre. Apr. 8-11—SDBA/NDBA Annual Washing ton D.C. Legislative Trip. Apr. 18-20— NABW State Conference, Hil ton Hotel, Rapid City. Apr. 21-23—SDBA/NDBA Trust Confèrent® Sheraton Inn, Aberdeen. May 12-14 — SDBA Annual Convention, Rushmore Plaza Civic Center, Rapid City. Sept. 16—SDBA Group 5 Meeting, Rapid City. Sept. 17—SDBA Group 4 Meeting, Mil bridge. Sept. 18—SDBA Group 3 Meeting, Mitchell. Sept. 19—SDBA Group 1 Meeting, Sioux Falls. Sept. 20—SDBA Group 2 Meeting, Watertown. ® Wisconsin: Apr. 10-11—WBA Agricultural Bankers Con ference, The Concourse Hotel, Madison. May 5-8—WBA Legislative/Regulatory Con ference, Washington, D.C. f May 13-16—NABW State Conference, Mid way Motor Lodge, Green Bay. May 21-22—WBA Bank Marketing Confer ence, Holiday Inn & Holidome, Stevens Point. June 16-19—WBA Annual Convention, M f Plaza Hotel and Hyatt Regency, Milwaukee. Wyoming: Apr. 27—WBA Career Challenge, Casper. May 3-5— NABW State Conference, Lander. May 4—WBA Career Challenge, C h e y e n n f June 16-18—WBA Annual Convention, Jackson Lake Lodge, Moran. 11 •Donald Ogilvie Elected ABA Executive Vice President Donald G. Ogilvie has been se lected as executive vice president of • th e A m erican Bankers Associ ation to succeed Willis W. Alex ander. Mr. Alex a n d e r advised ABA elected of ficials at the an nual convention in New York City ^ la s t O c to b e r D.G. OGILVIE that he wished to retire from his post, hopefully by late January, 1985. He will continue living in the Washington area, he •said. Mr. Ogilvie, 41, most recently has been a vice president of Celanese Corporation, where he was respon sible for the firm’s government rela t i o n s , communications and health, safety and environmental affairs. In announcing the appointment, ABA President J.G . Cairns, Jr., who A s president of People’s National ®Bank of Seattle, Wash., said, “We are honored and delighted to have Don Ogilvie, an executive with credentials and reputation of the ^highest caliber, to lead our organiza t i o n along the challenging path that lies ahead for this country’s banking industry.” Mr. Ogilvie joined Celanese in 01980 from the Yale University School of Organization and Manage ment, where he served for three years as associate dean and lecturer. Prior to 1977, he served the U.S. governm ent in important posts in the Department of Defense, from 1967 to 1969, and in the Executive Office of the President, from 1973 to 1977, as associate director, National ^Security and International Affairs in the Office of Management and Budget. Mr. Ogilvie, who holds a 1967 Master of Business Administration ^degree from Stanford University and a 1965 Bachelor of Arts degree from Yale University, was also a founder, president and a director of ICF, Inc., a Washington-based man ag e m en t consulting firm. He is a director of Colonial Ban corp and the New York City Ballet; a trustee of the Citizens Budget Commission and a member of the •Visiting Committee of Duke Univer sity’s Institute of Public Policy Studies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L e t’s ta lk . . . . . . if your personnel c o s ts are greater than they should be, we believe we can help . . . so, le t’s ta lk! __________ M /A SWORDS ASSOCIATES. INC. PROFESSIONAL BANKING CONSULTANTS 4900 OAK SUITE 301 KANSAS CITY, MISSOURI 64112 (816)753-7440 The Central Commercial Finance Division of Heller International is pleased to announce the appointment of James A. Coffey Manager, New Business Development in our new Milwaukee Regional Sales Office Midway Office Centre Suite 408 1025 South Moorland Road Brookfield, Wl 53005 414/782-8323 Heller International Chicago • Cincinnati • Cleveland Detroit • Kansas City • Milwaukee • St. Louis Northwestern Banker, March, 1985 12 Corporate ROMOTIONS and other an nouncements have been made P by the following firms: financial centers in 41 states. J Daktronics, Inc., Brookings, S.D.: Dr. Aelred Kurtenbach, President of Bank Building Corporation, St. Daktronics, Inc., has announced the Louis, Mo.: John Peters MacCarthy, Company’s plan to renovate their president of Centerre, was recently original building in Daktronics Park elected to a three-year term on the adjacent to Interstate 29. The space board of directors of Bank Building became available when Daktronics Corporation. occupied its new manufacturing fa Re-elected to three-year terms cility. A contract was signed with Waltz were William E. Winter, retired chairman of the Seven-Up Company, Construction, Inc., of Brookings for and Herbert F. Eggerding, Jr., ex renovating the space for office use. ecutive vice president-finance and The project is currently in progress administration and chief financial with completion planned for late officer of Petroli te Corporation, a St. Spring. The present construction pro Louis-based manufacturer of spe gram calls for remodeling an area 90 cialty chemicals and equipment. Commercial Credit Company, Bal ft. wide by 200 ft. long. Approxi timore, Md.: William B. Turley has mately one-third of the area will be been promoted to senior vice presi used for marketing and sales activi dent, consumer and banking ser ties, another one-third for customer service, and the final one-third will vices. In his new position, Mr. Turley, be used for sales training, equip who has spent his entire career with ment demonstrations and employee Commercial Credit, has overall re meeting rooms. A second level area of approxi sponsibility for the company’s 500 mately 3,750 sq. ft. is also being added to be used for future growth and expansion. FACED WITH When the remodeling is com DISPOSING OF pleted later this spring, Daktronics FORECLOSED will have a total of 68,000 sq. ft. of floor space. The company presently BUSINESS COLLATERAL? employs 97 people. Bankers Liquidation Report will connect you with buying prospects for all types of business equipment, inventories, even complete businesses. A low cost listing in The Report will be seen by thousands of businessmen and entreprenuers each month. Effective recovery means the best possible price for the collateral with the least time and effort by bank personnel. Bankers Liquidation Report will help you meet this end. Our optional reader inquiry service will provide names and phone numbers of prospective buyers, while shielding your bank from inconvenience and unnecessary publicity. For further information about our service, or to order a listing, contact: BANKERS LIQUIDATION REPORT 6440 Flying Cloud Drive Eden Prairie, Minnesota 55344 (612) 829-0213 DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dearborn Business Group, Ltd., Chicago: Janet L. Myers, who estab lished the Chicago office in 1982 for San Francisco-based Omega Perfor mance Corporation, has founded Dearborn Business Group Ltd. at 1 North LaSalle, Suite 4500, Chicago. The new firm addresses manage ment issues essential as banks become market-driven organiza tions. Heller International Corporation, Chicago: James A. Richards has joined the Chicago office of the com pany’s central commercial finance division as vice president. He pre viously was vice president at the Detroit, Michigan, office. Mr. Richards has been with the company for six years and will be re sponsible for new business devel opment in metropolitan Chicago and Indiana. James E. Coffey has been named® assistant vice president of the cen tral commercial finance division branch office in Brookfield, Wis. Mr. Coffey will be responsible f o ^ new business development in the states of Wisconsin, Northern Il linois, Minnesota, North Dakota and South Dakota. Mosler, Hamilton, Ohio: John N # Pearce, director, marketing commu n ic a tio n s at Mosler, has an nounced the ap p o in tm e n t of Lisa B. Weber to manager, mar keting communi cations. She is responsible for marketing com munications for L.B. WEBER the company’s physical security operations, government products, Mosler Interna^ tional and the Service Division in cluding sales promotion, advertising and trade shows. She also super vises the Graphic Services Depart^ ment. Prior to joining Mosler, Mrs. Weber was administrator, business promotions at Hilton-Davis Chemi cal Co. in Cincinnati. Piper, Jaffray & Hopwood, Min^ neapolis: The Minneapolis-based in vestment firm of Piper, Jaffray & Hopwood Incorporated completed its move into the newly constructed 42-story Piper Jaffray Tower ii^ downtown Minneapolis January 28. The move to the Piper Jaffray Tower kicks off Piper Jaffray’s 90th anniversary. The $90 million struc ture is the third tallest in Minnea^ polis. Travelers Express Company, Inc., Minneapolis: C.A. E. Anderson, Jr., p resid en t and CEO of Travel ers E xp ress C om pany, re c e n tly an nounced, as of January 1, the election of Den nis C. Feit as vice presidentcontroller. Mr. D.C. FEIT Feit has held the position of controller for the past four years after a variety of posi tions in the banking and accounting departments beginning in 1967when he was hired as a staff ac countant. 13 *!$20 Million in Projects Go to Bank Building Corp. St. Louis-based Bank Building Corporation has received design^build contracts totaling nearly $20 million for 15 projects in 12 states. The largest project is the $5 mil lion total restoration of the Rosen baum Building, a turn-of-the-cen^ u r y landmark in downtown Cum berland, Md., which will become the headquarters for First Federal Sav ings Bank. The restoration project is ^ major part of a revitalization pro g r a m for downtown Cumberland. Other new BBC projects include five credit unions in the east and south and one in California for a Total of $7,690,000; three savings tind loans in Texas, Indiana and Virginia for $2,624,000, and five commercial banks for $4,300,000. Two of the banks are located in ^Tennessee, one is in Pennsylvania, * n e is in Texas, and the fifth is the Bank of Luxemburg in Luxemburg, Wis., a remodeling with a value of $740,000. ^Tennessee Firm Will Market FSI Software Technical Marketing Systems of Nashville, Tenn., has announced an Agreement with Financial Systems Inc. to distribute several of F S I ’s banking software programs, accord ing to James L. Corby, president of TMS. ® Financial Systems Inc., based in Kearney, Nebr., is the premier devel oper and publisher of microcompu ter software programs specifically for the banking industry. With over ®70% of the U.S. banks using micro computers, there is a growing need for banking software. F S I has 17 products, marketed as Bank D isk™ , of which TMS will in i t i a l l y repackage and distribute four: loan document processor, safe deposit box accounting, commercial credit analysis and IRA proposal/disclosure. ® As an IBM Value Added Dealer, TMS has a license with IBM to sell the IBM PC as part of a software package within a vertical market. A3urrently, TMS has IBM approval i o r several vertical markets includ ing financial, legal, church, educa tional, construction, retailing and pharmacy, with additional markets p re se n tly under consideration. In addition to re-marketing IBM products, TM S also distributes https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis other hardware and peripherals, such as NEC, Diablo, Epson, Okidata, Tallgrass, AST, Quadram and many others. Three Promoted at CSBS Dr. Lawrence E. Kreider, execu tive vice president and economist of the Conference of State Bank Super visors, Washington, D.C., announced recently the following executive staff promotions. Keith H. Ellis, Esq., legislative counsel and director of federal legis lation, has been given professional and official standing comparable to staff vice presidents. Robert A. Richard has been named vice president for supervisory proce dures and state banking department services. Dr. Carl T. Richards has been des ignated vice president for education and training and executive secretary of the Education Foundation of State Bank Supervisors. Dr. Kreider also announced that the three would join Joseph E. Jones, vice president, director of public affairs and executive secre tary of the CSBS advisory council, on a senior management team to counsel him on conference manage ment and policy matters. How to get maximum investment portfolio performance with minimum management expense. Sure, you’d like to make your investment portfolio work harder, but you just don’t have the time. And creating more overhead is out of the question. Here’s how a growing list of banks like yours are getting maximum performance with minimum time and expense: Financial Institutions Investment Services. Financial Services is a registered investment advisory firm specializing in total investment services for community banks. Our strong team of professionals combined with our unique state-of-the-art communica tions system can satisfy all of your invest ment needs. So, you continue to make all the decisions, we do all the work, and your investment portfolio becomes as efficient as those of the larger institutions in your market. Without their overhead. For more information, write or call for our brochure. FINANCIAL INSTITUTIONS INVESTMENT SERVICES 6750 Antioch Road, Suite 200, Merriam, Kansas 66204 National: 1-800-243-4555 Kansas: 1-800-232-0207 Northwestern Banker, March, 1985 14 FBS Offers Ag Computer Software F A RM ERS and ranchers in the Upper Midwest will be able to purchase a computerized financial management package called AgTRAK from selected First Banks, according to an announcement by Darrell G. Knudson, vice chairman of First Bank System’s regional di vision, Minneapolis. The AgTRAK software, devel oped for the First Banks by Control Data Corporation, is designed to help farmers become better man agers by tracking and organizing the financial information affecting their operations. “The First Banks recognize that farming and ranching today is a so phisticated business and with Ag TRAK we will be able to help farm ers acquire the management skills needed to improve their ability to compete in today’s market,” Mr. Knudson said. The AgTRAK package offered by the First Banks will include finan cial software, a microcomputer, training and support delivered to farmers. The general ledger program generates accounting reports such Training will be conducted b ^ First Bank System AgTRAK spe cialist. All First Bank ag lenders will also be trained to assist customers. as balance sheet, income statement, cash flow and Schedule F tax re ports. From the same financial data, a separate program on crop manage HBE to Construct Two New ment generates cost and position re Credit Union Buildings ports on production and marketing. H BE Bank Facilities, headquarA livestock management program terd in St. Louis, Mo., has been will also be available in early 1985. awarded contracts exceeding $5 m iP Control Data has been designing Hon to construct new buildings for and developing computer software Black Hills Federal Credit Union in and services for farmers since 1979. Rapid City, S.D., and Griffiss-OneiIts line of ag computer products are da Federal Credit Union in Rome^ being used by hundreds of farmers N.Y. • in the United States and Canada. In announcing the two contracts, “The integrated software pro H BE President Fred S. Kummer grams, are easy to work with,” said said the Black Hills structure will be Mr. Knudson. “Farmers simply a one-story building with basements enter checks and deposits from their designed to accommodate a 50% ex checkbooks and the computer auto pansion of the main floor and the ad matically updates all accounting dition of a second floor in the future. and management reports.” The contact is for $1,385,000. The The cost for the AgTRAK soft structure has facilities for six lo b b ^ ware, IBM PC microcomputer and tellers, safe deposit vault, member training is $5,295; the AgTRAK service and administrative offices, software and training may be pur all located on the main level. A large chased separately for $1,995. The employee lounge and boardroom on software is compatible with the the lower level are separated by ^ IBM PC and PC compatible compu folding partition, allowing for com ters with two disk drives and 256K bined use. It will also have six driveof memory. up lanes and parking. Completion date is February, 1986. The Rome, N.Y., contract is fo ^ This announcement appears as a matter o f record only $2,640,000 for a three-story brick building with eight lobby tellers, headon drive-up facility with three lanes, and a rough-in for one addi tional lane. Completion date i ^ Nodaway Valley Bancshares, Inc. April, 1986. Maryville, Missouri IBAA Opens Calif. Office has acquired The Nodaway Valley Bank Maryville, Missouri The undersigned acted as financial advisor to Nodaway Valley Bancshares, Inc. Slieshunoff Sheshunoff & Company, Inc. Austin, Texas DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Craig Hudson will head up the newly created California office of thP Independent Bankers Association of America. The regional banking of fice, located at Huntington Beach, Cal., is the first to be established bw the Washington-based trade groupP IBAA is the national association for community banks, representing 7800 small and medium-sized com mercial banks across the country. ^ Hudson will serve as the liaison t P IBAA member banks throughout the Twelfth Federal Reserve Dis trict, representing them before state legislatures, banking regulators ancL other state agencies on a selectea basis. Immediately prior to joining IBAA, he was executive assistant and staff director in the office of th ^ assistant secretary of labor for legislative affairs. 15 ^Deluxe Reports New Highs Based on company statements for the year 1984, which are as yet unau d ited , D eluxe #Check Printers, In c o r p o r a te d , St. Paul, Minn., is reporting re cord sales of #$682,823,206 an increase of 10.2% over last year’s $ 6 1 9 ,6 9 4 ,8 0 8 , a c c o rd in g to E.R. OLSON •Eugene R. Olson, chairman and chief executive officer. Net income for the same period was a new high of $87,816,009, up 14.6% over the year 1983 when earn•ings were $76,604,559. Net income per share was $4.01 compared to $3.37 last year. Sales for the fourth quarter were $ 1 7 7 ,8 3 8 ,6 8 1 , up 13.4% from •$156,766,766 last year, while net earnings were $24,195,236 or $1.12 per share compared to $20,909,649 and 93 cents per share a year ago. Dividends of $1.56 per share were •paid to shareholders during 1984, amounting to $34,130,047 as com pared to $1.24 per share and $28,233,380 in 1983. The Company had an average of •21,891,346 shares outstanding for the year 1984. Also, directors voted a two-forone stock split by declaring a 100% stock dividend to shareholders of re c o r d February 20. They also in creased the regular dividend from 44 cents per share to 46 cents per share, payable March 5, 1985 (23 cents per ^share on a post-stock dividend •basis). system further into Canada. It is an ticipated that over the next two years, Hudson’s will have more than 500 ATM and POS locations in Can ada. Through Nationet, customers can currently use their electronic bank ing cards to withdraw funds or pur chase merchandise from their check ing and savings accounts at over 1,400 ATM and POS machines in 450 cities located in nine states, plus British Columbia. With the ex pected expansion of all Nationet members, plus the expansion into Canada through Hudson’s Bay Co., Nationet will provide customers with the access to more than 6,000 ATM and POS machines in 28 states, British Columbia and por tions of Ontario and Manitoba. In other news from Nationet, Mr. Kramme stated that ITS, Inc. of Des Moines, la., is now serving as the on-line service provider for all of Nationet’s participating networks. IT S will provide members with a standard interface to the system for all servicing, including telecommu nications, transaction switching, daily settlement and fee billing func tions. FBS Turns to Euro Dollars For $150 Million Capital D.H. (Pete) Ankeny Jr., president of First Bank System, Inc., Minnea polis, announced recently that it has launched a new $150 million floating rate primary capital note issue in the Euro dollar market. This is the first European security offering in the company’s history, he said. “This new financing provides ad ditional capital for the continued growth of First Bank System. In ad dition, having Europe emerge as a source of funds for First Bank Sys tem broadens the financial base of the enterprise and enhances future opportunities,’’ Mr. Ankeny said. After the offering is complete, the primary capital ratio of First Bank System will increase to 6.4 percent, from 5.7 percent reported at year end 1984, Mr. Ankeny pointed out, adding it is well above current and proposed regulatory agency guide lines. Total primary capital now stands at $1,435 billion for the $22,438 bil lion bank holding company. The issue was lead managed by Credit Suisse First Boston in Lon don. This announcement appears as a matter o f record only C .S .B . Company Cozad, Nebraska has acquired Nationet Goes to Canada Nationet, Inc. has announced a •m ajor expansion into Canada. Ac cording to Paul R. Kramme, Na tionet president, the expansion oc curs through MetroTeller Systems Incorporated of Buffalo, N.Y., one of •ten regional networks which com prise the Nationet system. MetroTeller recently completed an agreement with Hudson’s Bay Co., Canada’s largest retailer, to ^share automated teller machines and point of sale terminals with cus tomers of Hudson’s MoneyMark system. The result will provide cus to m e r s of Hudson’s with access to ^th eir money throughout the United States, and expands the Nationet https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St. Paul National Bank St. Paul, Nebraska The undersigned acted as financial advisor to St. Paul National Bank Sheshunoff Sheshunoff & Company, Inc. Austin, Texas Northwestern Banker, March, 1985 16 Discover the knowledge Cash M anagem ent can bring your bank. n just 30 days, our Cash Management Service and EndPoint Analysis can tell you things you never knew. About your bank and your customers. I Find out exactly how long it takes to collect your funds. W hat availability you should give that high volum e account. And a great deal more. The people in our Cash Management Services are experts at fast balance reporting. And more importantly, your availability of funds is accurate, not just an average of past funds. Day after day, our Cash Management Service continues to dig up the kind of facts that lead to increased profitability. Call your United Missouri Correspondent Banker at (816) 556-7900. And discover how much 30 days of free Cash Management Service and an End-Point Analysis can do for your bank. ku UNITED MISSOURI BANK —“ of Kansas City, n.a. United we grow.Together. 10th and Grand o P.O. Box 226 o Kansas City, Missouri 64141 o (816) 556-7900 Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • 17 • How bankers improve .investment portfolio earnings # A N orthw estern > /V STUTE, safe management of the bank’s investr \ ment portfolio is one of the continuing challenges to senior officer responsible for the portfolio. In this survey by T h e N o r t h w e s t e r n B a n k e r , several port folio managers were asked these questions: ^ ^ “How do you try to improve your bank’s earnings by actively trading your invest ment portfolio throughout the year? What are the procedures you follow; what services (correspondent bank or other) do you rely on? Are you using an A/L Management Model when you analyse your portfolio, and how does this fit into the total scheme of management of your bank?” ) Following are the comments provided by these bankers to share with our readers: Jack Campion, vice president, investment division, F&M Marquette National Bank, Minneapolis: F&M Marquette’s Investment Division relies on an extreme l y experienced and knowledgeable staff of salespeople and traders to gauge market moves. Most of our peo ple have been in the business for more than 15 years. We also coordinate our reactions with those of Mar quette Capital Management Corporation, the invest m ent advisory subsidiary of F&M Marquette. In our correspondent relationships, we encourage the bank president or investment officer to carefully ascertain the bank’s cash flow needs, especially if the bank is heavily involved with seasonal needs like farm in g or the resort business. We also encourage the presi dent and/or investment officer to sit down with the bank’s tax experts early in the year, to make earnings projections for the year. We also think it is important to follow up on those projections, especially if they *seem out of line with reality. Gap management, building in a spread between the bank’s cost of funds and its return on assets, is becom ing more of a problem as more interest rates become variable. To counter this difficulty, we at F&M Mar quette are looking for more variable rate investments such as Small Business Association loans (SBAs) and municipal bonds. In addition, we are constantly looking for new pro ducts to help our bankers maximize their investment returns. One of those new products is the zero coupon bond. A stripped-off Treasury bond, this bond is pur https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B anker Survey chased at a discount, and is an especially attractive in vestment for the short term (one or two years). The Treasury Department began stripping its own coupons February 15, which adds to credibility. We also have added mortgage-backed securities to our list of pro ducts, which provide new methods of maximizing re turns especially on GNMAs. We also offer a full line of leasing investment alternatives, including tax exempt, taxable and taxable with the Investment Tax Credit. Marquette Lease Services, Inc., our full-service leasing affiliate, is one of the fastest-growing full service lessors in the country. For those banks who find themselves with more tax exempt income than they need in January and Febru ary, F&M Marquette National Bank often engages in bond swaps. The earlier we make the swap the better, because it gives the bank a longer time period to recover its losses in higher yielding taxable invest ments. We think that it is an experienced staff, coupled with innovative products and services, that has given our investment division its solid reputation for service, as well as good investment returns in the past several years. Andy Rogers, executive vice president, The First National Bank of Galena, 111.: Today’s deregulated en vironment has created many investment portfolio chal lenges to maximize profits and provide liquidity as well as matches for various liability accounts. The challenges have brought into play strategies to reach new goals by employing asset/liability management and the use of a new array of investment tools. The fol lowing are some of the ways our bank is meeting the new challenges. Annual Plan Management of the investment portfolio for profit improvement necessarily involves a well conceived an nual plan. Forecasting balance sheet trends in loans, deposits, investments, capital and earnings points up areas where it might be advantageous to conduct some portfolio tradings to enhance the year’s income. Tax planning is equally important as it assists in deciding the type of issue to be purchased. Our annual plan is reviewed quarterly to determine if the forecasts made are on target. Monthly and even weekly reviews are conducted when the bank encounNorthwestern Banker, March, 1985 18 “On any large sale, purchase or swaps we find it important to* refer to our professional investment advisor and tax expert.” ters seasonal increases or decreases in loans or deposits. Portfolio Trading: Buying The determination of the terms of a purchase is in part, a function of balance sheet needs. One goal of our asset management is to increase the volume of high yielding, high quality, short term investments to cover negative mismatches. It has been difficult to purchase the required investments and receive an adequate in terest margin. We consider a wide range of possible in vestments including B A ’s, Euro Time Deposits, Jum bo CD’s, Futures, Forward Trading and Commercial Paper when an investment opportunity occurs. Each bank must select the investment that best suits its own needs in terms of maturity, quality and rate. The use of Tax Exempt Investment Funds is an alternative to Fed Funds after the desired taxable level has been reached. These funds can be employed to provide daily interest without the necessity of purchasing longer term municipal bonds. Selling Selling investments before maturity is always a pos sibility when it fits well into the bank’s income and tax plan. These sales can result in a reinvestment situation that has income improvement through its tax advan tage and to shorten up maturities to assist in gap management. It is important to consult with your tax expert before engaging in a large sale of the portfolio. Swapping In some cases, it can be to the bank’s advantage to consider swapping securities to improve their profit picture. Through a municipal “put” transaction a bank might be able to swap tax exempt issues for taxable and then “buy” back the tax exempt bonds when they better fit into the portfolio. Other arrangements that may be considered are interest rate swaps. A/L Management Most community banks are now involved in asset/ liability management or are considering it. We are us ing Nortridge software which is designed specially for community banks. The model we use assists us in ana lyzing our portfolio and in making decisions regarding buying and selling for the portfolio. Gap management is most important and must continuously be con sidered for the consequences of any buy, sell, or swaps in the portfolio. Net interest margin and cost of funds reports should be reviewed monthly with appropriate action taken for improvements when necessary. Professional and Technical Assistance In all phases of planning and in anticipation of any large sale, purchase or swaps we find it important to refer to our professional investment advisor and tax expert. They maintain a current level of expertise in their fields and their advice is critical for any major change in the investment portfolio. Recently, we purchased an InnerLine scanset and the Financial Information Network which provides DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis current rates, CD Exchange, and various informa tional exchanges. Mel Adams, chairman, Adams Bank Group, Ogallala, Nebr.: With the volatile nature of interest r a t e # and yields in the securities market in the past five years, it is extremely risky, in my opinion, to attempt to do much speculative trading within the bank’s in vestment portfolio. We strive to effect an orderly spaced maturity program within the liquidity# guidelines set forth by management for the various portfolios— presently five years. In this manner then, for the size of portfolio of this bank, we have securities maturing in an orderly manner, i.e. 20% per year, and being reinvested back into the market so as tc# minimize drastic changes in the rate structure and maintain our spaced maturity program. This pro cedure will not maximize the best yields, but is a reasonably safe “middle of the road” approach when it comes to the overall yield of the portfolio. In my e x # perience, it is considerably more succesful than the “throw the dart” methods to try to guess the highest yield places in the market place with no regard to orderly maturities. We rely heavily on the bond department services o # our correspondent banks. Our feeling is that these peo ple are going to draw a paycheck regularly whether I buy securities from them or not, so consequently they have no reason to exert undo pressure to convince us to purchase a particular security at any given time. W * also feel that the lack of this type of pressure lends itself to a more honest appraisal by these officers to our needs rather than theirs. The rapport that we have today with the investment officers of our correspon^ dents was not achieved in a short period of time. Eacm banker must build his or her relationship where only they can know when they are comfortable with the in formation and expertise they receive. Management of the security portfolios of banks h a ^ probably been an area of asset management that h a * been somewhat neglected in the past. We feel our securities management has become very important in today’s environment. The individual responsible for the portfolio management should have the confidence of management, receive periodic guidelines from management, and report to management of his or her activity as to security purchases, sales, and maturities. Lastly, but equally as important is the mix of the securities. This has to be coordinated to the asse^ management policy of the bank so as to maximize earn ings. The uneven mix of Muni’s to Governments as dic tated by the asset/liability management policy of the bank could become counter productive resulting in a lower return on assets. In these challenging economi^ times, as banks strive to survive, the tendency is to im prove liquidity and as liquidity is increased, it will be imperative to maximize yields in their securities port folio. Kenneth D. Reno, president, United Bank of B i ^ marck, Bismarck, N.D.: The United Bank of Bismarck 19 ® utilizes an asset/liability software package along with a Bank Tax software package which takes into consid eration state and federal income taxes to maximize earnings. The asset/liability package works on a “tar^ geted profit” basis. That is, a targeted net profit is esw tablished for the year, and by inputting the tax infor mation from the tax package and playing the “what if” scenario incorporated within the asset/liability man agement software, loan rates as well as deposit rates ^ can be established to arrive at the budgeted net profit w which has been targeted for the year. To be effective, a detailed accrual accounting system must be imple mented as well as an internal base lending rate. In ex cess of 65% of the United Bank’s loans are tied to the ^ b a s e lending rate, which is subject to change monthly. Market conditions must, however, be taken into con sideration. The Bank Tax software package is also capable of “what if” scenarios. The package is run monthly in ^conjunction with the asset/liability package using an nualized figures. Other than computing the taxes for input into the asset/liability package, the most impor tant information received on the tax package, from the “what if” scenarios, is whether to invest in a taxable or 0 tax-exempt security, and the effect of the same on the targeted net profit. Also, the “what if” scenario can be played to determine the effect on the targeted net pro fit due to trading a block of taxable investments for a block of tax-exempt investments, or a trade in the op0 posite direction. Both applications have been devel oped on Lotus 1-2-3. L. Bruce Hendrickson, vice president-investments, First Wyoming Bancorporation, Cheyenne, Wyo.: • First Wyoming Bancorporation is a multibank holding company with 24 banks located throughout the state of Wyoming. The banks range in size from $5 million to $75 million. All investment activities are funneled through my office, in Cheyenne, which allows us to de• liver investment services to our affiliate banks in a cost effective manner and to pass on the economies of size that a $250,000,000 portfolio would generate. The bond portfolio can be used as a tool to signifi cantly reduce an institution’s interest rate risk. One of ® the strategies that can be used to implement that goal is to stay alert to trading opportunités. Keeping the portfolio reasonably current reduces your interest rate risk. Tax laws are designed to help you do this by shar ing in your losses. ® The following are some trading strategies that help improve portfolio performance: 1. Sell bonds in the first quarter at losses that can be recovered before maturity or year end, whichever is earlier. “ 2. Sell bonds in the last quarter to adjust income, maximize tax benefits, re-align portfolio mix and correct your mistakes. 3. Buy the issue that offers the best yield in the _ maturity you need. This requires some searching, ^ but the rewards can be worth the time and phone calls. Avoid high premium, deep discount and story bonds as their marketing potential will be dimin ished relative to others if you want to sell later. ^ 4. Sell bonds 30 to 45 days before maturity, especial ly if maturity is on a weekend. Many times the give up yield (bid side yield) will be lower than the alter https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “The bond portfolio can be used as a tool to significantly reduce an institution’s rate risk.” native short term investment rate such as Fed Funds. In a falling rate enviornment you can rein vest early or you can wait until you feel the time is right. This works particularly well with Treasury Bills. 5. For those who are not faint of heart, a portion of the portfolio can be designated as trading items. We use a pool of funds at the holding company level so that all our banks can benefit. The primary goal of this pool is to produce the maximum income within prudent guidelines. These items ar analyzed daily for trading possibilities. To have a reason able chance of success, this type of operation re quires a Telerate, many hours per day on the phone, constant monitoring of all economic and Fed data, monitoring the relationships of other markets, and a host of other data. A few points of caution: 1. When trading your portfolio, do your homework to make sure you are receiving enough economic benefit to justify the trade. Your friendly bond sales person may have more to gain than you. Shop all prices to make sure you are getting the best. 2. If you sell tax free bonds, be sure to consider the extra value of pre TEFR A purchases; those may be more valuable than you realize. 3. If you are taking gains, make sure that the profit is more than the lower re-investment income, unless you are making a strategic restructuring or are compressing income into a specific earnings per iod. 4. Remember: There is no such thing as a free lunch. We selected the Plansmith Pofit Planning and Asset Liability Model to perform the required number crunching so that bond portfolio strategy can be developed. A system such as this is a necessity. The “what if” capabilities help measure the effectiveness of our planned strategies. The gap itself is only one piece of the equation: a good model ties all other fac tors together. Your bond portfolio is a major part of the assets of your bank. Use it to improve your overall performance and reduce interest rate risk. Steven G. Cherrier, investment officer, First Inter state Bank of Billings, Mont.: We take advantage of interest rate swings by shortening or lengthening our portfolio’s average maturity given our interest rate outlook. We have been very successful in trading in and out of Treasury Bills over a 2-3 day time frame, taking advantage of current market trends and condi tions. Because we have installed government quote services in our bank, we do not need to rely upon another bond department to monitor our positions for Northwestern Banker, March, 1985 20 “We actively manage both sides of our balance sheet and control short-term gaps to maintain or improve net interest margins.’’ us. We are able to track the positions by the minute and respond as quickly as possible. Our asset/liability management incorporates an inhouse developed program that provides us with de tailed ratio analysis, break-even yields, asset and liabil ity maturity structures and yields on controllable and non-controllable assets. With this information avail able on a timely basis, we are able to coordinate our asset and liability management in a manner that will reduce our inherent interest rate risk while maximizing our return on equity. Edmond J. Arseneault, president, Soy Capital Bank and Trust Company, Decatur, 111.: In response to your request for information about our investment portfolio activity, I can report that early in 1983, a three-year strategy was developed to recover previously paid in come taxes. We recognized that in 1973 and 1974 we had paid an inordinate amount of taxes, so we restruc tured our balance sheet by selling Government securi ties and buying high quality, short maturity, tax-ex empt securities. The lack of loan demand enhanced our ability to make the plan feasible. As a consequence, we were able to recover all of 1973, 1974 and 1975 taxes. The significance of this plan is that a bank can only recover taxes on a carryback of 10 years so that, had we not done this, our ability to recover 1973 taxes under current tax laws would have been lost. The end result was that the negative applicable income tax figures that appear in our statement of income rep resent the amount of taxes that will be refunded. The results gave credence to the prudency of this plan and we, therefore, continued this same strategy in 1985. William P. Langford, senior vice president, bond and investment department, American State Bank, St. Paul, Minn.: Our approach to investing at the American has changed in recent years with broader considerations involved. We still use treasuries, pri marily for pledging to public deposits, and a variety of tax-exempt instruments when a need for tax exempt income is appropriate. This need is monitored by our Tax Exempt Committee which is part of our AssetLiability Committee. Trading in our portfolio is done only on a selective basis. We have chosen to actively manage both sides of our balance sheet and control short term gaps to maintain or improve net interest margins. We do this by extend ing or shortening repricing opportunities of assets and/ or liabilities. A variety of instruments are used, includ ing: 1. Money market securities which are easily con verted to cash such as Bankers Acceptances, C.D.s, Eurodollar C.D.s, and commercial paper. 2. Futures instruments. Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3. Interest Rate Swaps ^ 4. Large C.D.s and term fed funds. We also actively manage books of fixed rate term loans and term deposits. The Asset-Liability Committee, which meets at^ least once a week, provides the general guidelines ancr constraints to the treasury manager. We use the Flori da Software Alco Management System, primarily be cause it interfaces with our bank systems and can tell us where we are at any point in time and also p la ^ “what if” games. As an active dealer in governmental and municipal securities, we use our own personnel and don’t rely on any specific correspondent services. Michael W. Dunn, president, Farmers and M er# chants Savings Bank, Manchester, la.: Since our in vestment portfolio makes up over half of our assets we maintain very close watch on the bond market. Our first objective is to determine the market trend and react accordingly. If prices are rising we will lengtheiP our maturities and take profits on a scaled basis. When selling this type of market, we attempt to sell the high coupons to avoid future market resistance and re purchase discounts which will, over time, rise to par. If the market starts to trend downward, we attempt t(P shorten our maturities even if losses must be incurred. Our investment strategy is based on a trend basis. We do not try to pick highs and lows, but base our port folio decisions on the general trend of the market to op timize the bank’s profit potential. ™ We monitor the market on a daily basis by receiving approximately 22 government and agency price quotes along with the Fed Fund rate from one brokerage house. We basically use two brokerage firms along^ with the Federal Reserve Bank of Chicago for all pur^ chasing and selling. In the past we have found that all three sources are very competitive and provide excel lent service. Our portfolio analysis is provided to us for a minimal fee on a monthly basis by a city bank. It is ^ very in-depth report and provides us with more thair adequate information for our planning. We analyize our assets and liabilities each Monday morning on an interest rate spread basis. On a monthly basis we analyize the spread along with the weight o ^ maturities. This analysis is in conjunction with our basic theory of operating off of the trend. If prices are rising we will allow the maturities of our assets to ex tend beyond the maturities of our liabilities. A result ing gap is additional profit but at the same time i ^ must be recognized as additional risk. Should the prices turn, we must have the discipline to adjust your portfolio accordingly. Charles H. Burke, president, Bankwest, N .A .^ Pierre, S.D.: Bankwest is unsophisticated when i P comes to the management of the investment portfolio. We buy investments to put surplus funds into an earn ing mode with no anticipation of sales before maturity to generate trading profits. We do sell securities th a ^ are below book value to increase earnings by u s in ^ taxes to offset some of the losses. We do not have an A/L Management Model for securities and we use a correspondent or a bond house broker for advice. IMPROVING INVESTMENTS . . . (Turn to page 48, please) 21 Asset-based lenders V ital r e s o u r c e for b an k s and th eir c u s t o m e r s By ALLEN J. OLSON Vice President BarclaysAmerican/Business Credit, Inc. Minneapolis, Minn. B ANKERS are frequently placed in a position where the needs of the client must be carefully balanced with the best interests of the bank. It sometimes becomes necessary to refer a loan to another organiza t i o n to best serve both the client and the bank. Asset-based lenders can serve as a vital resource in such situations. By closely monitoring assets, extend ing terms and lending against a pool of assets, a loan can be structured to increase a company’s working ta p ita l. Asset-based lenders are often able to develop a comfortable level of working capital thru close loan monitoring which can provide the client with the time needed to assess its alternatives and reorganize. Besides benefiting the client, asset-based lending helps ^ h e bank keep its options open. The bank may choose to participate in the loan or be paid out entirely. In either case, a positive relationship can be maintained with the customer, while protecting the bank. ^ Food Warehousing Case Recently, an Iowa banker was faced with a similar situation. The banker had an outstanding $2 million loan to a local food warehousing organization. Founded in the early 1900’s to pool the resources of many ^pmaller independent grocers for more advantageous ouying, the borrower had a solid history of profits and growth. In the early 1970’s the company incorporated to serve grocers throughout Iowa as well as stores in Illinois and Missouri. ^ The company’s products included produce, dairy products, meat, grocery items, cigarettes, and candy □ ABOUT THE AUTHOR — Mr. Olson attended the University of Minnesota in Minneapolis where he majored in business adminis t r a t io n . He joined BarclaysAmerican/Business Credit in 1976 as manager of business development for the Minneapolis region. Mr. Olson was named regional vice president in 1979. He is respon sible for managing business development activities throughout BarclaysAmerican/Business Credit’s Minneapolis region, which includes Iowa, Minnesota, Nebraska, North and South Dakota, ta n d parts of Illinois and Wisconsin. Prior to joining Barclays American/Business Credit, he had been associated with James Talcott, Inc. for 11 years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis as well as private and national label goods. Throughout the early 1970’s the company expanded rapidly, adding more clients and services, ultimately outgrowing its old warehouse and expanding into a new 200,000 square foot warehouse/office location in central Iowa. Following the national trend of providing increasing services to their customers, as well as to at tract new ones, the company began offering assistance in all aspects of retail management — advertising, re tail development, store planning, accounting, engineer ing and insurance. Expansion Proves Troublesome In the early 1980’s, however, this rapid expansion proved troublesome. Heavy losses were experienced due to non-payment by stores which had used thier planning services for equipment and remodeling. The number of clients declined due to increased competi tion. A new president and controller were hired; changes were made, but the company’s profit and loss statement continued to reflect losses. The company’s banker recognized it was trapped be tween its original philosophy and the economics of competition. The firm was established originally to sell products at cost, depending on vendor cash discounts and service fees to pay operating costs. It appeared that it could no longer operate on this basis and would be forced to raise prices. Unfortunately, as the com pany had less advantageous purchasing power than its larger competitors, increased prices would erode client support even further. At that time the bank maintained a deposit relation ship and, in addition to the $2 million loan, had ex tended letters of credit to support the firm’s purchas ing activity. The bank wanted to maintain this rela tionship, but needed to better protect its own inter ests. Having successfully worked with BarclaysAmeri can/Business Credit before, the banker was familiar with our services and contacted our Minneapolis Of fice. BarclaysAmerican/Business Credit structured a loan which increased working capital and paid out the bank’s loan, while maintaining its deposit relationship. If the company improved to fiscal stability, the bank was ready to resume its fuller relationship. Because asset-based lenders look at the entire asset pool — ac counts receivable, inventory, machinery and equip ment, they are often able to advance a greater amount ASSET-BASED LENDERS . . . (Turn to page 23, please) Northwestern Banker, March, 1985 22 EEK IN G an increase in commercial loans, t h * theme — “Sheridan Bank is the Businessman’s S Bank’’ — is portrayed by officials at Sheridan Bank, E fficie n t p r o c e s s in g is a k ey to s a tis fie d c o m m e rc ia l c u sto m e rs LOCATED in the vault at Sheridan Bank, Peoria, III., is the Brandt Model 855 Cash Settlement System. Here, currency totals pro cessed on the Model 872 Currency Counter are transmitted to the Model 855 Central Control Unit. SHERIDAN Bank has positioned the Brandt Model 957 Coin Sorter behind the teller line. This unit sorts and counts up to 600 coins per minute. The Model 957 provides batch totals as well as day-end denomination! totals and has programmable bag stops. DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Peoria, 111., as the basis on which their new bank build ing was designed and on which their television com ^ mercials are produced. Sheridan Bank, a $73 million asset bank, indeed has become a businessman’s bank. Expansion of business accounts has come about through successful promo tion and through efficient processing of the busines^ accounts. Gregory Milam, assistant vice president in opera tions at the Sheridan Bank, points out the proficient processing of these accounts can be attributed in large part to the acquisition of money processing system ^ manufactured by Brandt, Inc., Watertown, Wis. Sheridan Bank, which moved into its new facility in 1982, has maintained a branch at its previous location. To be able to accommodate the large volume of busi ness accounts, the bank has set aside two teller win^ dows specifically for commercial account deposits at both its branch and at the main bank. In addition, a drive-up window at the main bank is dedicated only to business accounts. Cash Settlement System w At each of these five windows, as well as in the vault, the bank has stationed a Brandt deposit system, the newest of which is the Brandt Model 855 Cash Set tlement System. This system is comprised of the Model 872 Currency Counter which will count, batclP and endorse currency, checks and food stamps at a rate of up to 1,500 documents per minute, interfaced to the Model 855 Central Control Unit. Currency and/or food stamp information is automatically transferred to the Central Contol Unit. The teller need enter only t h * date, teller number, account number and declared balance while the direct currency access key allows the teller to process currency and food stamp totals of each denomination. Different media, including check amounts and c o i * totals, can be entered into the system via the Brandt Model 855 Central Control Unit. This unit will gener ate a printout detailing all information processed and provide the teller with a complete, detailed deposiU analysis of all media totals, declared balance, actuar amount processed and their differences. Day totals are available also for end-of-day teller balancing. To handle the processing of accounts with a substan tial amount of loose coin, Sheridan Bank has posi^ tioned a Brandt Model 957 Coin Sorter behind t h * teller line at each bank. All tellers have access to the Coin Sorter, which will count and sort up to 600 coins per minute. The coin totals, if associated with a com mercial account, can be either automatically transfer^ red to the Model 855 Central Control Unit or if usea with one or more systems, manually keyed into the system. New Equipment Answers Problems q Prior to purchasing this equipment, all processing was done manually at the windows, which resulted in long lines and unhappy customers and tellers. End-ofday balancing was a lengthy, time-consuming proce dure to the point of incurring overtime hours fo ^ tellers. After analyzing these problems and realizing that if these problems continued, the bank would begin #“We have also experienced a noticeable reduction in errors •since obtaining this equip ment.” to lose customers, justification was made for purchas i n g the Brandt Cash Settlement System. According to Mr. Milam, “On a Saturday morning, which is a very busy time for us, lines would get quite long and although we closed at noon, it would be 1:30 to 2:00 p.m. before the day’s business was balanced. Now, 0 since purchasing the Brandt equipment, we have had customers compliment us on how nice it is to get their banking completed so quickly as well as the deposits being accurately processed.” Mr. Milam goes on to explain, ‘‘We process many 0 1 arge business accounts, including department store chains, a large laundry service with substantial coin deposits and grocery stores with a large volume of food stamps. We could not process as many accounts at our current labor level without the Brandt Cash Settle#m e n t System s.” Judith Jurkowski, marketing officer for Sheridan Bank, agrees with Mr. Milam, stating, ‘‘Since we have such a large commercial customer base, it is impera tive we have equipment that can handle the volume.” Reliability and Error-Free ‘‘Working at a commercial window has higher de- Asset-based lenders . . . 1 (Continued from page 21) than other lenders. In this case, the increased working capital loan and extended terms gave the company the breathing space necessary to assess its position and options. w Total Business Audit Initiated Preparation of the business audit includes a review of past and current financial condition and liquidity, extensive analysis and appraisal of inventory, a review ^ a n d verification of accounts receivable, with attention w to concentrations and turnovers, and a look at sales and trends, payables and tax status. The audit also ex amines the prospect’s plan and profitability and ana lyzes its industry and industry trends. The lender also ^considers the applicant’s management capacity, earn ings potential, volume of business and operating state ments. In this case our loan officers were very impressed with the expertise of the new management team and ^ th e cost cutting measures alredy implemented. The company’s vehicle fleet was decreased by 60% and both office and warehouse staffs were reduced. All non union management had taken a substantial cut in pay. Furthermore, an outside data processing company was ^ hired to replace the existing system at reduced cost. The firm was also aggressively pursuing new mem bers. As retail grocers either pay in advance or net 7 days, BarclaysAmerican/Business Credit proposed to ad0 vance against inventory while securing the accounts and notes receivable as additional collateral. Barclays American/Business Credit’s in-house appraisers deter https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 mands for tellers,” states Ms. Jurkowski, “and this takes not only a special type of person, but equipment that we can depend on. We have found that Brandt equipment is the best and most reliable equipment to fill our needs. The Brandt Cash Settlement Systems have saved us a tremendous amount of time at the teller windows as well as at the drive-up window and in the vault,” according to Ms. Jurkowski. “We have also experienced a noticeable reduction in errors since obtaining this equipment. We have found that given a combination of good equipment and effi cient tellers, virtually no errors will occur and we have had no errors in our business accounts,” says Ms. Ju r kowski. Equipment Pays for Itself Mr. Milam estimates the payback period on each of the systems to be approximately 13 months. “This does not take into consideration, however, that we would have had to increase our teller staff to accom modate our commercial accounts or the amount of business that has been generated because of the capa bilities now available to us through the systems. If we consider these factors, payback would be much less.” “The equipment has enabled Sheridan to go out and market for new commercial accounts, knowing that we can do an excellent job of processing any size deposit,” adds Ms. Jurkowski. After all, customer service is what you have to sell nowadays and if you cut down on the amount of errors to the customer, especially com mercial accounts, as well as increasing the productivi ty among teller staff, the customers are happy. That’s what they want and what they look for in a bank.” □ mined that a 75% advance on the inventory was appro priate. Subsequently, a $4 million credit line was ex tended with $500,000 held back to guarantee the bank’s letters of credit. The loan was used to repay the bank note while increasing working capital, allowing the company to take advantage of special cash dis counts, thus improving its profit margin. Stability Leads to Purchase At the end of its first year, the company had made considerable progress. Management changes and streamlined operations allowed the company to in crease profitability. Despite its improving financial condition, however, management determined the firm would never be large enough to command the volume discounts needed to be truly competitive. Less than a year and a half after BarclaysAmerican/Business Credit extended the loan, an advantageous purchase offer was extended and the company was sold to a regional food wholesaler. The sale proceeds paid back the loan entirely and returned profit to the owners. In this case, an asset-based lender helped the com pany make needed changes to increase profitability and reorganize for a successful sale. Without this often-needed assistance, the company may have been forced to choose between bankruptcy and selling at a loss, jeopardizing its investment as well as its bank’s. To meet the challenges of industry-wide changes, al ternative financing is often needed to provide smaller companies with the breathing space necessary to reassess and reorganize. Because of their ability to maximize collateral values and provide additional working capital, asset-based lenders can assist both businesses and their banks. □ Northwestern Banker, March, 1985 24 C o m m u n ity b a n k e r’s a n a ly s is of th e n atio n al e c o n o m y for 1 9 8 5 : Moderate climb in economy • Agriculture taking time to catch up • Real GNP up 3.3% • Inflation to climb to 5% • Average prime rate up to 14% • 10% decline in value of dollar • Deficits to decline slightly Written especially for T he Northwestern B anker By WILLIAM P. RONAN President, Decorah State Bank Decorah, la. HE PREPONDERANCE of economic indicators currently show that the recovery in this country, T which I believe began in December of 1982, is still ongoing, although it recently displayed some signs of slowing down. My view is that over the past 20 months the economy has neither been out of control, nor as strong as many analysists would have feared earlier in 1984. However, from a micro economic standpoint, the agricultural picture certainly has not shown any of this type of recovery. In fact, from a macro economic stand point, this is true in rural banking as well. Also, interest rates, which in my opinion act as a symptom of declining liquidity in our financial system, remain relatively high in spite of an apparent prosperi ty in some sectors of our U.S. economy. With a long term trend of a persistent federal deficit and no real ex pense of the credit base from improved raw material, prices, and income, the future doesn’t seem to promise much relief. In fact, the deregulation of the commercial banks and other financial entities where 80% or more of all deposits now draw interest up to and exceeding 10% per annum, it is unlikely that we will ever see what we would consider the old fashioned, reasonable interest rates again. Interest rates will never decline until increased income and profits expand bank depos its and simultaneously reduce the need for borrowed money. Interest Rates Will Stay High It is sad, but I think it’s still true, that those who are still relying on a reduction in the interest rates to pro vide a solution to their economic problems in the foreseeable future, are going to be assured of bitter dis appointment. In the absence of reduced interest rates, profits must increase enough to accommodate the higher interest cost: there is no solution to rising costs other than increased prices and increased profits. That DigitizedNorthwestern for FRASER Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • ^ solution, to most people, means ongoing inflation. However, history teaches us that when economic equi librium is achieved in the economy, inflation stops a n # prices and profits will remain stable from year to year. Economic expansion is then limited to the number of people born who subsequently enter the labor force an nually, minus those who have died within the last given year. This expansion will be at a rate of 1 Vi to 2# of the population annually, or equal to the annual births 18 to 20 years earlier, and this increase is neces sary to provide the goods and services needed by this increase in our adult population. Unfortunately, it is too often mistakenly equated with inflation, when iP reality it is good, solid, sustainable, expansion which will multiply from year to year. Briefly recall the history of the United States econo my from 1940 to 1943 when the economy expanded 110% and every sector participated in this full expaiP sion, including the farm economy. I recall myself the history of the subsequent period of 1943 to 1952 when the farm economy enjoyed an average of 100% of pari ty prices. As a result of this, we had beautiful liquidity in the financial system and very low rates in in te re s t But, of course, I suppose the average person would say that occurred during World War II. My response to that would be that I don’t think it was due entirely to the war. A large part of this p e ^ formance was due to the Steagall Amendment whicn maintained farm prices at an average of 100% of parity during the 1943 to 1952 period. However, right after that we had the Vietnam war which lasted from 1962 to 1972, and that war was the most costly in every re^ spect in dollars, lives lost, and so forth. We did not have the kind of economic performance that we had from 1943 to 1952. If you will go back to your economic history you will find that the nation had earned the income and profit^ to buy the bonds to pay for the immediate course of World War II, but during the Vietnam war our nation had created a new debt to the total of 1.2 trillion, which amounted to 120 billion per year for the ten years from 1962 to 1972. On account of that, you must remembq^ that we abandoned the gold standard in 1971; we were told that that was done to inflate the money supply — 25 # “An improved farm economy would be the quickest, surest path to sustained economic liquidity and assured overall • economic recovery.” we have had a growing economic instability ever since that time. # Agriculture’s Share Declined It is a sad state, if you pursue economic history further, in that you will find that agriculture’s share of ^ the national income has declined from an average of w 6.63% out of each dollar of national income from 1942 to 1952 to .79% at the end of 1983. This would be a decline of 88.08% in the longest period of uninter rupted prosperity in the history of the United States. ^ The decline in agricultural shares of national income was only 32% from 1929 to 1932 - the worst depression in the history of our country. I presume the FDIC must undoubtedly, and without any question, understand that improved farm prices 0 and increased farm profits would solve most of the problems in the rural banks in the United States. As you know, it is my honest conviction that improved farm prices and improved farm profits flowing into country banks all over this nation would be the # quickest solution to tight money supplies in the na tions regional and mega banks. Federal Funds from ex panding deposits in rural banks have always been the cheapest and most readily reliable souce of overnight money in our entire financial system. Consequently, an • improved farm economy would be the quickest and surest path to sustained economic liquidity and as sured overall economic recovery. ^ ^ w ^ ^ ^ £ Farming a Small Part of Economy Due to the fact that our farm population is such a small part of our total population (only 2.33%) and our net farm income is such a small part of total national income (only $13.8 billion in 1983 out of a total of 2.446+ billion, or .52%), the agricultural economy has little or no effect on the economy any more, or at least a minimal effect. The masses of the population, I be lieve, feel that way. Most farmers still don’t understand what the nation had when the government supported farm prices at 90% of parity on storable farm commodities. It con strained production and, in other ways, effectively pro vided 100% of parity farm prices from 1942 to 1952. This was not done by the farmers or by their organizations. It was done by the house banking and currency committee of our congress to stabilize the value of the currency of the United States in the absence of a gold standard during World War II by the Steagall Amend ment to the Farm Act of 1942, and to maintain equilibrium in the entire national economy. However, the ad ministration at that time did not like it and was ad vised by certain farm organizations to abandon it because they felt the farmer would lose his organized market, and the administration thought the free market would augur well for the farmers, which it didn’t at that particular time. Despite the best efforts of people who disagree with https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the decline of our farm economy, it still continues unaided today. Historically, a very low level of parity of farm prices in this country still exists and this in volves the agricultural economy of the whole world because of the dominance of the agricultural economy of the world by our United States. This economic philosophy has permeated conven tional economic wisdom ever since David Ricardo suc cessfully broke the English Corn Laws with his law of supply and demand early in the 19th century. In other words, agriculture seems to have been on the world’s endangered species list ever since having replaced the consumer of that day. We must consider our estimated current excess re source capacity as a residual from the high prices in the mid 70s representing fewer adjustment problems than did the resources in the 1960s. Labor was then in excess by 40%, and today we have capital resources, which we have attempted to use to substitute for labor, which is a highly costly process. Two or three years of farm prices at 55-60% of parity range may be required. We did find 55.5% in 1983, but much of the excess resources may be in the mid-size farm classes. Farms that account for half of farm input/output now cover resource costs with prices from 54% to 62% of parity. In my opinion, the principal economic problem of the farming industry in the next two decades will be instability. Any federal budget out of control, such as we have, will extend the duration of high real interest rates, retard economic recovery, and perpetuate excess capacity in agriculture. Rest of Economy Recovers Outside of agriculture, our recovery has been typical of expansions in any post war period, although actual and real interest rates have been very high by histori cal standards. In my opinion, the relatively high 10.2 and 7.6 economic growth rates in the first three quar ters of 1984 were due more to reduce inflation rates than to boost an economy. The real growth numbers, partially because of inven tory replenishment, have created for some analysists the illusion of an over-heated economy. However, remember that the recent economic data may seem bet ter than they really are because the observed growth has stemmed from a very low base in early 1983. Outside of agriculture, even though the economic performance in 1984 was very attractive to the admin istration, with a high G.N.P., lower unemployment rate, and so forth, the big success story seems to be in flation. Although spot commodity prices have stabi lized the consumer price index and the producers price index, inflation rates are still at ten year lows. Even now, with the Commodity Research Bureau index at 254.8, on the average, prices are still 10% below a year ago at the raw material level. However, prices were in flated last year at this time because of the drought in the grain producing areas. The economy, then, is still behaving in a disinflaNorthwestern Banker, March, 1985 26 tionary mode as oil prices have become stable, our dol lar has remained strong, unit labor increases have been moderate, and productivity has increased steadily in response to the lower inflation rates not only in this country, but also throughout the world. The United States economy also benefitted in low inflation terms from the continued debt problems among many of the third world countries, from the Continental Illinois Bank and Farm Credit Association problems here. sharply since last March as a result of these rates. This, then, created a spillover into the mortgage mar kets. At the moment, it appears that prices will be rela tively stable in 1985, and I think that retail sales h a v ^ softened during the recent months, particularly in t h ^ corn belt, and th at’s not unusual at the tail end of a recession during the beginning of a recovery period. 1985 Growth Depends on Congress £ In my opinion, economic growth during 1985 will be predicated primarily on the outcome of legislation in this new Congress and on the level of real interest rates. The danger to this administration now is that the economy will sputter if interest rates rise, or infla^ tion increases sharply if interest rates are monetized and held lower through an accommodative monetary policy. The most likely economic scenario I see is an econo my that is moving forward, but at a moderate pace^ and with agriculture taking a considerable time to catch up to this. Right at the moment the prices of hogs and cattle seem to be increasing, but the prices of grains are not. In the meantime, the flattening out of the economic recovery could begin to produce an ap# parent downleg in the economic leading indicators. The disinflation eventually should be reflected with lower term interest rates, higher stock prices, lower commod ity prices, and a strong dollar — but for only a short period. We will then resume an upward path that wil# be buttressed by higher grain and food costs which then will spill over into the higher livestock prices as the public begins to perceive the higher inflation yardsticks which have been forecast by most of th ® forecasters that I read, such as Chase, Wharton, Freedman’s, and so forth. Remember, unless we are heading: into a major recession, most cord® Our unique Pipeline Protection Plan about creating guaranteed fee income modity prices are bargain basement virtually eliminates your risk. while you eliminate your marketlevels which always occur before an Creative’s purchase program ing risks. /■■■-* upturn. I ’m looking for the real offers you highly competitive Creative Financing, Inc. is the G.N.P. for the year 1985 to be u]i rates, 48-hour underwriting innovative mortgage banker 3.3% versus 7.6% in 1984. I ’m look® and a huge array of alter that specializes in midwestern ing for inflation, which in 1984 had a native financing options markets, both urban and rural. 4% increase, to be up to 5% in 1985. ^ \ that may not be available Jack King can tell you in your market now. The average prime rate in 1984 was how your institution f ^ '4 ^ 13%, and my estimate is that it wilL When you talk to can gain a source of / . "f|p k be 14% for 1985. The value of th ® Jack, you’ll recog immediate funds nize the personal dollar showed an annual rate of by selling your touch in our change of 20% in 1984, and I ’m look mortgages to reliable service, ing for a 10% decline in 1985. Our Creative on a immediate trade deficit will decline, I believe, i ^ servicingfunding and released 1985 from $120 billion to $110 biJ® solid com basis. lion, and I could only guess that the mittment. deficit, which I think in 1984 was Call about $195 billion, should decline (4 0 2 ) 3 9 7 -6 4 6 4 this year to $174 billion. ^ In summary, I would say that the THE even, steady rise in short term in INNOVATORS Creative IN MORTGAGE terest rates is still maturing. The Financing, Inc. BANKING” key for 1985 could depend, to some extent, on the outcome of the doing^ 440 Regency Parkway Drive Omaha, NE 68114 (402) 397-6464 of the new congress that convened in January. □ Shift in Credit Demand A noticeable shift in our economic data in 1984 has been in the area of credit demand. Along with the money supply earlier in the year, this factor increased rapidly, but has recently contracted sharply. While strong monetary growth usually is followed by rising inflation, the impact has not yet been observed due to the rise in the trade weighted value of our dollar by 55% over the last 45 months, and also due to the “foot on the brake” situation of a very fine Federal Reserve Chairman, Mr. Volcker. The result of the fed’s tight monetary policy and a continued deficit problem is nominal interest rates re maining high by historical standards as do real inter est rates, which are also signifying investor concern about both larger government deficits and potential higher inflation downstream. Underlying the current, mixed, macro economic indi cators is the unrelenting rise in short term interest rates that began in May of 1983, even though long term rates have somewhat softened. In the interestsensitive housing market, housing starts have fallen Jack King would like to talk to you... DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 for the current crop year, and FmHA was asking for prior rights many cases, the inability of some to the 1985 crop as security. The customers to obtain new sources of plan is aimed at giving those loan funds in their immediate areas. deemed viable borrowers an oppor As reported in the March 4 Week tunity for time to work out a restruc ly Newsletter, FmHA moved teams turing of their debt. In Nebraska, the Farm Crisis of loan specialists into Fulda, Minn., and in Cherokee, Woodbine and In Hotline group, an independent orga wood, la., where banks had failed, to nization, and the extension service work with farmers on loan applica of the University of Nebraska’s In tions that would guarantee up to stitute of Agriculture and Natural 90% to a lender for the farmer’s op Resources, are working with the erating expenses. The borrowers had SUPPORT FmHA . . . to prove ability to cash flow the loan (Turn to page 71, please) • State Associations Support FmHA TATE banker associations re sponded quickly last month to S assist the Farmers Home Adminis® tration and their member banks with meetings that explained the new FmHA programs and regula tions designed to expedite FmHA loans to farm customers. ® The Nebraska Bankers Associa tion had a series of five meetings in three days in the cities of Scottsbluff, North Platte, Kearney, Lin_ coin and Norfolk, that drew more ^ th a n 550 bankers. Stan Matzke, ex ecutive vice president of the NBA, said that in addition to NBA offi cials, three representatives of the ^ F m H A ’s Nebraska office addressed ^ t h e groups. They were: Roland Vautour, acting state director; Keith Smalley, acting farm program chief, and Bill Waldo, administrative of fic e r . The Iowa Bankers Association adopted a teleconference format so all parts of the state could be reached with the same message ^ through one meeting. More than 1,000 Iowa bankers gathered in 12 cities to hear FmHA State Director Bob Pirn and his staff explain the new program and seek the help of ^ bankers in expediting the loan appli cations. State association support for the FmHA effort was typified by the let ter to members written by Neil Mil^ n e r, IBA executive vice president, who said: “Due to the large number of applications received by the FmHA for direct loans, a heavy backlog of loan applications has #b e e n created. With the planting season rapidly approaching the urgency of this situation is increas ing. It is essential that loans be pro cessed as quickly as possible for ^th o se farmers relying on these loans in order to get their crops in the field.” (The FmHA Program Summary provided by Mr. Milner to IBA •members appears at the end of this story.) In addition to working with state banker associations to disseminate information to farm customers on • th e programs, FmHA moved last month to lend assistance to farm customers of several upper midwest banks that had been closed by regulators. One of the serious pro b l e m s resulting from the bank clos ings was the prolonged delay or, in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Without Dawson's M ulti-Peril Crop Insurance. . . You’ll N eed It. Agriculture is a risky business at best. Year after year, farmers plant their crops and cross their fingers. . .hoping for good fortune. If the unexpected disaster does happen, can you be sure your customers receive a quick, accurate settlement? When it’s Dawson’s Multi-Peril Crop Insurance, you CAN be sure. The Dawson Company has been insuring crops since 1917 and is one of the most respected insurance companies in the nation. Their Multi-Peril Crop Insurance offers protection against any natural disaster with one easy-to-understand policy. Think of it as “cash flow” insurance which assures enough cash to plant again next year. . .even if this year’s crop is destroyed. Multi-Peril Crop Insurance from Daw son.. .because farming in the 20th century shouldn’t be a game of chance. Call Toll-Free: 1-800-437-4680 In N orth Dakota: 1-800-342-4848 P. O. Box 1820, Fargo, ND 58107 Northwestern Banker, March, 1985 28 Mary Ellen DeHaven has joined th e # human resources department as an officer. Acquisition Approved # The Federal Reserve Bank of Min neapolis has approved the applica tion of Bosshard Banco, Ltd., of Bangor, to acquire Intercity State Bank of Schofield. The acquisition# was effective as of February 18. Sheboygan President Named Four Others Advanced Robert F. Quasius has been elected president of First Interstate Bank of Wiscon sin, Sheboygan, a c c o rd in g to R ic h a rd D. Pauls, chairman. Also announced were the promo tions of Edwin J . Nonhof to senior vice president; F re d e ric k M. R.F. QUASIUS Hollander and state Banks in Green Bay, Waupun and Oconto County. Prior to joining First Interstate, Mr. Quasius was executive vice president at Manitowoc County Bank. He also spent 16 years with the Marine Corporation and the Marine National Exchange Bank. Mr. Nonhof will manage the Sheboygan banking office, with overall responsibility for business and personal banking functions. He managed the banks’ Sheboygan North office before joining the busi ness staff in 1981. Prior to joining First Interstate in 1978, Mr. Nonhof spent 13 years with Wisconsin Marine Bank in Milwaukee. Mr. Hollander has been with the bank since 1976. In his new position, Mr. Laveck joins the commercial services staff in Sheboygan. Mr. Pamperin has been with First Inter state since 1977. First Bank Milwaukee Announces Promotions E.J. NONHOF F.M. HOLLANDER Carl T. Laveck to vice president, and Steven J . Pamperin, assistant vice president, has joined the bank’s cor respondent banking department. As president, Mr. Quasius as sumes direct responsibility for the bank and its 12 offices in Manitowoc and Sheboygan counties. He also joins its board of directors, assum ing the seat previously held by David C. Beck, president of the bank’s parent company, First Inter state Corporation of Wisconsin, in order that Mr. Beck may concen trate on management of the holding company. Mr. Quasius joined First Inter state in 1982 as vice president of long range planning. He was pro moted to senior vice president in charge of retail banking in 1983 and named executive vice president of the holding company in 1984. He re tains corporate responsibility in the marketing area and for first Inter Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First Bank Milwaukee recently announced the promotion of a num ber of officers. In the corporate lending division, Thomas A. Bartkus, Bernard R. Shaw and Gerald F. Wachuta were promoted to vice president. In the investment division, Wil liam J. Detienne was advanced to vice president and K. Wesley Lacey was promoted to assistant vice president. In cash management/marketing, Julie A. Raskind was named an as sistant vice president. In the asset management and trust division, Martha F. Apalsch was named trust officer and David H. Bantz was promoted to corporate trust operations officer. In the accounting department, Judy Kern was named accounting officer and in the retail banking divi sion, Margaret M. Schuld was pro moted to retail banking officer. The bank also announced that Menomonee Falls Appoints Advisory Council Member # Richard P. Klug, President and Chief Executive Officer of F&M Bank Menomonee Falls has an nounced that Scott D. Brown has been appointed to the F&M Bank’s* Oconomowoc Advisory Council. Mr. Brown, an Oconomowoc resi dent, is Assistant General Manager of C.W. Brown Printing Co., Ocono mowoc. New President Named At Milwaukee Bank First Interstate Corporation or Wisconsin, headquartered in She boygan, has con solid ated five Milwaukee-area banks to form one financial in stitution with J . Frederic “Fritz” Ruf as its presi dent. The new bank is made up of First Inter state offices lo cated in Shore wood, West Allis New Berlin, Racine and Caledonia. Mr. Ruf, who will administer the five-office bank, was, until recently, with R BP Chemical Corporation of Milwaukee where he had been presi0 dent since 1982. He has been a direc tor of First Interstate Corporation, the former Citizens Bancorporation, since July, 1983, and will continue on the holding company board an c# serve on its executie committee. Mr. Ruf will be located at the Shorewood office. First Interstate acquired four of the Milwaukee-area banks in July —# the former West Allis State Bank, Southwest Bank in New Berlin, and North Side Banks in Racine and Cal edonia. The Shorewood office, for merly Citizens North Shore B a n k # joined the holding company in 1978. 29 banking career in 1972 as a teller. Ms. Liljegren joined the staff in 1982 and has worked in several areas. Western Bank, Sioux Falls Forms Subsidiary Estelline President Elected The Farmers State Bank of Estel• line has announced the election of David W. John son as president of the bank and M erlain e E i s e n a c h to assis tant vice presi dent and cashier. Mr. Johnson joined the bank’s • staff in 1975 as executive vice D.W. JOHNSON p resid en t and has been managing officer of the bank since 1976. ® Ms. Eisnach takes over the cash ier responsibilities from Laurence Gratz, bank vice president. Promoted in Belle Fourche ® Kevin G. Whitelock has been named vice president, accounting and finance at Bank of Belle Fourche. Mr. Whitelock joined the staff in 0 February, 1981, as auditor. Prior to w that time he had been employed by the Federal Reserve Bank of Minne apolis and an area accounting firm. He is a 1977 graduate of the Univer^ s ity of South Dakota. John Heimbaugh was also pro moted to vice president and man ager at the Spearfish Office. Mr. Heimbaugh has been with the bank ^sin ce 1971 and has worked in vari ous positions since that time. He has served as vice president, commercial loans, since January, 1980. ^Three Elected in Salem At McCook County National Bank, Salem, Gary E. Williams was elected vice president; Casey L. Derflinger was elected assistant vice •president, and Darwin J . Miller, vice president and cashier, was elected to the additional post of secretary to the board. Mr. Williams joined the bank in • l982 and has been involved with agricultural loans since then. Mr. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Derflinger has been an agricultural loan representative since he joined the bank in October, 1983. Mr. Mil ler joined the bank in May, 1973. Promoted in Arlington Several staff promotions have been announced at the Citizens State Bank in Arlington, following the bank’s annual meeting: Wayne Fischer, president, was elected to the board of directors. Promoted were: Frank Felix to vice president in charge of consumer loans; Eudale Ringgaard, vice presi dent in charge of commercial loans; Jim Nielsen, assistant vice presi dent in charge of ag loans; Margaret Gast to cashier, and Rita Liljegren, assistant cashier. Mr. Felix has been with the bank since 1961. Mr. Ringgaard joined the bank in 1971 as head teller. Mr. Nielsen, with the bank since 1983, has three years prior banking experience. Ms. Gast started her Donald R. Oliver, senior vice pres ident of Western Bank, Sioux Falls, has been elected to the bank’s board. Western Bank also announced the formation of Miktomm Mortgage Corporation, a wholly-owned subsi diary, with corporate offices in Sioux Falls. T .J. Reardon has been elected chairman of the board, and D.R. Oliver will serve as president of the corporation. Miktomm will be man- D.R. OLIVER T.J. REARDON aged by mortgage professionals who previously were associated with Western Bank, having combined mortgage-related experience of over 40 years. Miktomm Mortgage Corporation is dedicated to promoting homeownership nationally. Largest Banks in South Dakota EPOSITS and loan figures for South Dakota banks reporting deposits of $50 million or more at year-end are shown in the chart D below. Comparative figures from a year ago are featured. (Last three figures omitted) December 31, 1984 December 31, 1983 Deposits Loans Deposits Loans 1. Citibank, N.A., Sioux Falls .................... $2,757,946 $6,348,555 $2,191,285 $3,727,837 2. First Bk. of South Dakota, N.A................ 1,015,247 885,574 966,456 783,618 3. Norwest Bank South Dakota, N.A.1 . . . . 1,355,835 937,824 1,380,628 860,891 4. First Natl. Bk. in Sioux F a lls .................. 187,306 126,111 177,735 115,998 5. Western State Bank, Sioux F a lls .......... 173,943 118,681 155,830 100,988 6. BankWest, N.A., Pierre2.......................... 127,984 86,475 101,379 71,680 7. Commercial Bank, Mitchell .................. 99,938 63,718 97,234 56,799 8. First Natl., Brookings ............................ 94,999 63,492 94,294 62,022 9. F&M Bank & Trust, W atertow n.............. 89,155 47,982 76,939 43,530 10. Farmers & Merchants, H u ro n ................ 85,153 47,406 81,958 38,230 11. Valley National Bk., Sioux F a lls ............ 78,234 35,386 74,048 31,454 12. Bank of Belle Fourche............................ 73,165 29,933 69,916 25,857 13. Farmers State Bank, W inner.................. 71,060 39,816 67,595 41,038 14. American State Bk., Y a n k to n ................ 70,374 38,655 80,336 37,222 15. Farmers & Mer. B&T, A b e rd e e n ............ 59,321 43,861 51,724 38,233 16. Farmers State Bank, P a rksto n.............. 50,730 19,930 46,225 18,873 1As of October 1, 1984, Norwest affiliates in Sioux Falls, Rapid City, Aberdeen and Watertown were consolidated into one bank, Norwest Bank South Dakota, N.A. 1983 figures represent a combined total of the 4 banks. 2On December 5, 1984, BankWest, N.A. purchased 1st Natl. Bk. of Selby. Northwestern Banker, March, 1985 FIRST.THEGOODNEWS W henyou a sk fo r credit, you deserve m ore than m oney. To improve your bank’s profit ability you have to increase the level and quality of your earning assets. You have to be innovative. And you have to make your bank’s credit ser vices more attractive than ever. We have to do the same. So when you ask your First Bank Corre spondent Banker to participate in a loan, you get a lot more than money We want to help you make good loans. And w e’ll work hard to help you create loan packages that look as good to your customers as they do on your balance sheet. What’s more, since First Bank Correspondent Banking is based in the Twin Cities, you can easily tap into the resources that have made us the leading bank in our region. And you’ll reap the benefits of expert advice from some of the Midwest’s most respected special ists in areas ranging from leasing to high technology, from real estate to inter national and m er chant banking. Call your First Bank Correspondent Banker today Because, after all, when you ask for credit you deserve more than money ( j||| First Bank C orrespondent *A service of First Bank Minneapolis and First Bank Saint Paul. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First Bank Minneapolis First Bank Place Minneapolis, MN 55480 (612)370-5474 First Bank Saint Paul 332 Minnesota Street St. Paul, MN 55101 (612) 291-5585 Members FDIC 31 Pipestone President Named The board of directors of First Bank Luverne, Pipestone Office, has elected Mark L. Mosbrucker, presi dent and chief operations officer. He succeeds Steven A. Grell, who has accepted a position as president of First Bank Cando, N.D. The board has also elected Vicki M. Quist, assistant vice president, and Mar lene M. Trageser, assistant cashier. Mr. Mosbrucker began his career with First Bank System in 1978 when he joined the affiliate in Wahpeton, N.D. He was appointed agri cultural loan officer at First Bank Pipestone in 1979, and most recent ly was serving as executive vice president and manager. Ms. Quist has been with the bank since 1973, most recently as man ager of the bank’s timepay depart ment and as marketing director. Ms. Trageser joined the bank in 1977 and most recently served as a regional auditor for First Bank South Dakota. New Officers and Directors Elected in Fergus Falls B.K. Soby, chairman of the board ^ of Security State Bank, Fergus Falls, recently announced the elec tion of two new directors and the promotion of two bank officers. Newly elected board members are • Edward Mehl, administrator, Lake Region Hospital and Nursing Home, and Gary Spies, owner of Service Food. Newly promoted officers are Mar^ lene Wilde, assistant vice president and Ethel Brown, assistant man ager-insurance. Mr. Mehl and Mr. Spies were ^ elected to fill the vacancies created ^ by Larry Dorn and Thomas Troupe who did not seek re-election. Ms. Wilde was promoted from op erations officer. She has been an em0 ployee of the bank for 22 years, beginning as a teller. Ms. Brown has been an insurance https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis agent with Enstad Mann since 1980. She joined the bank when the agen cy was purchased by the bank in 1983. tion of several staff members, ac cording to A.D. Didier, bank presi dent. Promotions include: James Ar nold, real estate loan officer; Beverly Bownik, trust officer; Mark Deminsky, instalment loan officer, and Brian Myres, West Branch man ager, promoted to West Branch manager and loan officer. In addition, Donald Muller has been hired as assistant vice presi dent for agricultural loans. Mr. Muller formerly was branch man ager of the Little Falls office of the PCA. Three Promoted in Klossner Promoted at Klossner State Bank, Klossner, were Elaine A. Beranek and Michael H. Collins, assis tant vice presidents, and Elizabeth A. Jenninges, assistant cashier. The announcement was made following the annual stockholder’s meeting. Four Appointed in Mankato National Bank of Commerce in Mankato recently announced the ap pointment of Gerald A. Brian, vice president; Pam Baird and Rhonda Larsen, assistant vice president, and Susan Elsass, assistant cashier. Mr. Brian joins the bank from Farm Credit Services in St. Paul. He Elected in Rochester is a 1971 graduate of Michigan State At Norwest Bank Rochester, Ran University in East Lansing. dy G. Smith has been elected vice p resid ent and manager of the credit adminis tration depart ment; Jamie Bastron was elected consu mer lending offi cer, and Marilyn L a t c h a m has been promoted G.A. BRIAN P. BAIRD to personal bank ing officer at the Northside Office. In his new position, Mr. Smith will have responsibility for Norwest Banks in Rochester, Owatonna, Dodge Center and Red Wing. He previously was with First Bank Bozeman, Mont. Mr. Bastron joined Norwest Bank in 1981 after graduation from Gustavus Adolphus College. Ms. Latcham has been with Nor R. LARSEN S. ELSASS west Bank since 1952 and since that Ms. Baird joined the bank in 1974 time has worked in several customer as executive secretary. Her main re service departments. The bank also announced the re sponsibilities include personnel, tirement of Philip W. Kern after 32 marketing, operations and most re years as a director of the bank. He cently lending. Ms. Larsen started her career also recently retired as area man ager of Benson Optical in Rochester. with Citizens State Bank, Waterville, and joined National Bank of Commerce in 1972. Promoted in St. Cloud Ms. Elsass joined the bank in First American National Bank, 1978 as a teller and was named teller St. Cloud, has announced the promo- supervisor in 1982. Northwestern Banker, March, 1985 Twin C Norwest Bank St. Paul, N.A. re cently announced several promo tions and elections. Promoted to senior vice president were Jon R. Campbell and Raymond A. Johns. Mr. Campbell, who will also serve as manager of the metro banking division, trans ferred to Nor west Bank St. Paul from Nor west Omaha in 1977. Mr. Johns, elected in the J.R. CAMPBELL R.A. JOHNS J.R. BARTHE M.S. VAUGHAN M.M. SPRINGMAN commercial banking group, joins Norwest Bank St. Paul from Nor west Bank Minneapolis, where he was manager of international trade services. John R. Barthe was promoted to vice president. He joined the bank in 1974 and presently is managing the sales and finance/collections depart ment. Two new assistant vice presidents Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis were elected: Michael S. Vaughan and Matthew M. Springman. Mr. Vaughan joined the bank in 1983 and had been serving as private banking officer. Mr. Springman, a commercial banking officer, joined Norwest St. Paul in 1982. The bank also recently announced the election of Harris Ravine, Gun ther Schaaf and Leonard Schaeffer to the board of directors. Mr. Ravine is senior vice presi dent of finance and administration at BMC Industries, Inc. Mr. Schaaf is president and chairman of Micro Component Technology, Inc. Mr. Schaeffer is president of Group Health, Inc. * * * Foster, Shepard and Donnelly as an attorney for five years. Promoted to vice president were: Jack L. Hauser in the financial in stitu tions division; Steven L ® Nichols in the manufacturers divi sion; Anthony J . Crea in the Min nesota correspondent banking divi sion; Jerome R. Larson in the na tional real estate division; Beth A m # Dinndorf in the special loans - com mercial division; David H. Bluhm in the corporate trusts, escrow and stock transfer division; Linda L. Mohr in the corporate banking s e r # vices division, and Richard J. Rinkoff and Lawrence C. Smith in the equity research division. * * * First Bank Minneapolis has an nounced the promotion of Robert C. Peterson to vice president and man ager of the National East Division; the addition of three to the bank’s officer staff, and the promotion of nine from assistant vice president to vice president status. Mr. Peterson, who joined the bank in 1979, had been vice presi dent in the National West Division since 1983. Charles J. Burns has joined as an executive vice president in the mer chant banking group. He had been with B.M.C. Industries, St. Paul, as senior vice president and chief finan cial officer since June, 1984. Prior to that he had been a managing part ner with Arthur Young, Minneapo lis, for 14 years. Rodney T. Thein has joined as vice president and senior probate of ficer in the personal trust and pro bate division. Mr. Thien had been with First Trust Company of St. Paul for 18 years. Pierce A. McNally has joined as vice president in the F B S merchant banking group. He had been with the law firm of Oppenheimer, Wolff, First Bank Lake, Minneapolis, has announced the election of Bar bara L. Pacholl as senior credit re view officer and manager of credit^ review for the Central Cluster oi First Bank System, and Claudia J. Oltvedt has been elected compliance officer. B. PACHOLL C. OLTVEDT ® Ms. Pacholl most recently served as a loan review analyst at First Bank Minneapolis. Ms. Oltvedt has been with First® Banks since 1978 and most recently as compliance administrator. * * * Jerome S. Yugend has joined® American National Bank of Saint Paul as vice president and senior 33 vice president, investment services group; James N. Schimelpfenig, as sistant vice president, retail services group; Christopher R. Glascoe, microcomputer systems manager; Charlyne K. Hovi and Rosanne Iskierka, personal banking officers; Michele I. LeCuyer, trust officer; Dawn M. Coughlin and Bobbi J. Davis, investment officers; Joseph M. Floeder, accounting officer, and Pamela S. Aakhus, assistant trust operations officer. Before joining F&M, Mr. Colianni served as vice president of United Consulting Corporation, a Minnea polis-based bank service corpora tion. Ms. Slinger joined the bank in 1979 and previously served in the commercial loan department. Mr. Hoven previously assistant vice president and municipal bond trader, joined in 1984. He had been serving as vice president, public fi nance, for Piper, Jaffray & Hopwood. * * * Minnesota News trust marketing officer. Mr. Yugend has over 28 years banking and trust experience and most recently was employed by First Bank Minnea • lis. Donald R. Lindeman has joined the bank as assistant vice president in the correspon dent banking di vision and Bruce C. Bennett and Ross A. Clem ents have been promoted to as sistant vice pres idents. Mr. Lindeman h as over 32 D.R. LINDEMAN years of banking experience and in his new position will cover banks in Montana and portions of South Dakota. Mr. Bennett was promoted in the investment department. He joined American in 1978. Mr. Clements joined American in 1977 and was promoted in the cash management services area. Six officers were also promoted: Julie B. Boljanovich, data process ing; Edward H. Boyum, federal funds; A. Joseph Reiser, data pro cessing; Jennifer Kelly, human re sources; Margaret Sarazin, commer cial banking; and Virgil C. Thiele, data processing. * * * F&M Marquette National Bank recently appointed Patrick L. Stotesbery to head its new ly-cre ated trust ser vices group. He will continue to serve as senior vice president in charge of the bank’s strategic planning divi sion. F& M M ar- P-L. STOTESBERY quette also has announced the pro motion and election of 14 others: Al bert J. Colianni, Jr., vice president B.G. ROCHE R. ISKIERKA M.l. LE CUYER D.M. COUGHLIN B.J. DAVIS J.R. HINNENTHAL https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mark W. Sheffert has been elected an executive vice president of First Bank System, Inc. and Gerald B. Fischer has joined as se nior vice president of finance. Mr. Sheffert has served as senior vice president and will continue to head the financial services division which was formed in 1984. In his new position, Mr. Fischer will assume responsibility for the corporate treasury, risk manage ment and asset and liability man agement areas of the corporation. He most recently served as assis tant treasurer of Ford Motor Credit Co., in Detroit. * J.M. FLOEDER J.R. SLINGER J.N. SCHIMELPFENIG P.S. AAKHUS and group head of the bank’s newly created financial group; Jerilyn R. Slinger, vice president and credit manager, business services group; David A. Hoven, vice president, in vestment services group; JoAnn R. Hinnenthal, assistant vice presi dent, investment services group; Barbara Graham Roche, assistant * * First Bank Security, St. Paul, has promoted Joseph M. Welle to com mercial loan officer. Mr. Welle joined First Bank Sys tem in 1977 as an assistant exam iner. He served as a supervising ex aminer before tranferring to First Bank Edina in 1982 as a commercial loan officer. * * * Norwest Bank Minneapolis has announced the appointment of nine vice presidents. R. Jeffrey Maas was appointed in the corporate finance area. He joinedthe bank in 1980. James G. Lethert joined the fund Northwestern Banker, March, 1985 We extend more than cre d it.. We extend ourselves. As F&M Marquette’s Correspondent Banking system continues to create new services to meet new demands, we’re determined to keep our most valuable resource exactly as it’s always been: quality services, delivered with personal commitment and care. Our correspondent bankers still believe in meeting you in your own back yard. Walking Main Street in your town. Talking with you, and listening to what you have to say. Then coming through to give you and your community exactly what you need. A F6M Mamuetie National Bank " Correspondent Banking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC That’s how we’ve built our correspondent reputation for personal service, tmst, and confidence: extending ourselves for you. Anywhere. Anytime. All the time. Leam more about professional services with a personal difference. Call us at 612/341-6561. • • management, trust individual ser vices area of the bank in October, 1984. Lynne H. Hansen and C. Roger Lundbeck were named in trust ad ministration and investment ser vices. Both joined the bank in Dec ember, 1984, from Norwest Bank Midland. William J. Wallman joined the Minneapolis bank as manager of trust individual services, Midland Service Office, in December, 1984. Craig Dahl and Cheryl Newell were named in regional corporate banking. Mr. Dahl joined the bank in 1977 and Ms. Newell in 1976. William W. Whipple was named in the agribusiness division of the corporate banking group, where he has worked since joining the bank in November, 1984. James J. Urbanek, named in the special loan division, has been in this area since joining the bank in December, 1984. * * * agricultural business manager. He will be based at Norwest Bank Mason City in Mason City, Iowa. Mr. Donovan had been vice presi dent and manager of upscale bank ing in Norwest’s retail banking busi ness group. He has been with Nor west since 1981. Mr. Hermann previously was vice president at Norwest Business Cred it in Des Moines, Iowa. He has been with Norwest since 1966. * * * The board of directors of First Bank Burnsville has elected P. Gre gory Peterka president and a direc tor. He succeeds the late Gordon F. Clarke. Resource Bank & Trust opened its first detached facility in February on the skyway P.G. PETERKA J.H. PETTINGILL level of the In ternational Cen Mr. Peterka most recently was tre in downtown serving as senior vice president of Minneapolis. Re commercial lending. He has been source Bank & with First Bank System since 1971 Trust is a full and has served at First Banks in s e rv ic e s ta te Mankato and Edina. He joined First banking institu Bank Burnsville in 1983. tion that was The bank also announced that c h a rte re d in John H. Pettingill has been named L. BRUST 1982. commercial loan officer at the bank. Larry Brust has been named se He previously held the position of nior vice president and manager of loan officer of the National Con the new branch office. He has over sumer Co-Operative Bank in Wash ten years banking experience, most ington, D.C. recently with Norwest Bank Min Donald W. Moffat, senior vice neapolis in its private banking cen president and general manager of tre. the Aerospace Division at Rose* * * mount, Inc., has been elected to the Norwest Corporation has ap bank’s board of directors. * * * pointed regional business managers for its agricul tural and retail John Morrison, chairman of Met businesses in its ropolitan Bank Group, has an Region III. Both nounced the appointment of Michael are new posi J. Pint as president and chief execu tions. Patrick J. tive officer. Mr. Pint’s appointment Donovan was will allow Mr. Morrison to devote named regional full time to his nonbanking inter vice president ests. and manager of Prior to joining Metropolitan Bank Group, Mr. Pint spent 17 retail business, p J poNOVAN based in Bloom years with the Federal Reserve ington, and Gary Hermann was Bank of Minneapolis. He joined the named regional vice president and Fed’s examination department in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minnesota News 35 1967 and is a graduate of the State College of Iowa and the Stonier Graduate School of Banking, Rut gers University. In 1979 Mr. Pint was appointed to a four year term as chairman of the Minnesota State Commerce C om mi ss ion and Commissioner of Banks by Gover nor A1 Quie. In 1983 he returned to the Fed as senior vice president and chief financial officer. * * * Norwest Bank Maple Grove has announced the election of Margaret M. Weber as consumer lending offi cer and Ernest C. Pierson to the board of directors. M.M. WEBER E.C. PIERSON Ms. Weber joined the bank in 1976 and was promoted to consumer lending representative in 1981. Mr. Pierson is chairman and CEO of Norwest Bank Midland, Minnea polis. * * * Clair E. Strommen, president and CEO of Lutheran Brotherhood, and president of Lutheran Brotherhood Variable Life Insurance Products Company, has been elected to the board of Norwest Bank Midland, N.A. ♦ * * The New York Times in its annual ranking of the nation’s fifteen larg est bank holding companies promi nently featured First Bank System, Inc., Minneapolis. For the fourth quarter of 1984, The Times ranked First Bank Sys tem as fifth in return on assets, sixth in return on equity, and fifth in earnings growth. All three measures are commonly used to determine bank performance. 1984 was the first time a banking company in the upper midwest or the northwest had grown to be in cluded in the largest fifteen bank holding companies in the country. With assets of $22.4 billion at year end 1984, F B S advanced to 14 from 17th position. Northwestern Banker, March, 1985 36 Minnesota News F B S Mortgage Corporation, Resi dential M ortgage Banking an nounces the addition of Keith A. Fenhaus as vice president - finance. Mr. Fenhaus previously was with Norwest Mortgage Corporation. * * * National City Bank of Minneapo lis recently announced the following changes in the bank’s official staff: John F. Crinklaw was named ex ecutive vice president - credit and deposit management. Mr. Cinklaw has been with National City since 1971. Named vice presidents are: John L. (Jack) Noble, international bank ing; Charles H. Robbins, corporate services division, and Connie G. J.F. CRINKLAW J.L. NOBLE C.H. ROBBINS C.G. WEINMAN D.S. LAMB S.L. HIX A.C. FLOYD S.K. ANDERSON Larry Klement has been elected vice president at American State Bank of Bloom ington. He suc ceeds Robert J. Facente, Jr., T.M. VAN LITH J.C. SCHAFER who is now exec Weinman, trust department. utive vice presi Two assistant vice presidents dent. were named: David S. Lamb, corres Mr. Klement pondent banking, and Susan L. Hix, joined the bank personnel department. in 1974 as a loan Officers elected include: Kathleen adjuster and has A. Fix, international banking; Anne served as assis• P. Loomis, investment; Amy C. tant vice president there since 1978. Floyd, financial planning; Susan K. Two new directors were also Anderson, trust operations; Janet C. elected to the board of American Schafer, corporate trust, and There State Bank: Burton F. Dahlberg, sa M. Van Lith, operations. president and CEO of Kraus-Ander- • * * * son Inc. and Kraus-Anderson Realty Co. of Minneapolis; and Robert J. Bremer Financial Services recent Facente, Jr., executive vice presi ly announced the promotion of Don dent of the bank. O ald Espersen to vice president/director of corporate auditing; the elec Surprise Guest Attends tion of Jamie Grupe as auditor, and First Banks Conference the addition of Kathleen M. Tucci as purchasing coordinator. Mr. Espersen managed regional audit staffs for Norwest in Duluth and Des Moines prior to joining Bremer in January, 1982. Mr. Grupe joined Bremer in 1982 from Norwest’s regional audit team based in Des Moines. Ms. Tucci spent over eight years as purchasing agent for First Bank St. Paul. * * * Mary E. Kyle has been elected commercial loan officer of First Bank Grand, St. Paul. Ms. Kyle joined the bank in 1981 and most recently was a commercial loan representative. * * * K.A. FIX A.P. LOOMIS Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis credit for First Bank System ’s affiliates in southeastern Minnesota. Mr. Mulder succeeds Thomas B. John son who was re cently elected pr e s id e n t of First Bank Fair J.C. MULDER mont. Mr. Mulder most recently served as president of First Interstate Bank in Racine, Wis. John C. Mulder has been ap pointed vice president of regional FORMER President Gerald Ford was in Min neapolis recently as the surprise guest at an annual conference held for presidents # and executives of the First Banks. Former President Ford’s visit was kept secret from the 400 attendees including George H. Dix on, First Bank System’s chairman and CEO, who was honored as “ One Great Winner.” Mr. Dixon served as President Ford’s Depu- # ty Secretary of the Treasury in 1976 and 1977. The two have remained close friends. Minnesota News 37 Patrick A. O’Brien to assistant vice accounting officer. He started with • Willmar Election Announced David G. Landgrebe was recently president, and Donald A. Carlson as the bank in 1981 as accounting man ager. elected vice president of First Bank manager of capital management. Mr. Rolle joined Norwest in 1977 Willmar. He will and has worked in consumer loans, Ag Conference Cancelled 0 be responsible human resources and as controller for the commer The Ag Conference originally for Norwest Bank Duluth, N.A. He cial loan and ag scheduled by the Minnesota Bank will continue in his role as chief ricultural loan ers Association to be held March financial officer for Region I. departments. Ms. Anderson joined Norwest in 27-28, has been cancelled. 0 Mr. Landgrebe 1980, became a commercial loan offi began his career cer in 1982, and most recently an Promoted in Rochester in 1974 at First assistant vice president. Randolph S. Koppa, president of Bank Brainerd Mr. O’Brien started at Norwest in First Bank Rochester, has announced and has served 1982. Prior to joining the bank, he the promotion of 0 at various First D.G. LANDGREBE was a manager for Benefitial Loan Paul E . ClavaBank affiliates. He joined the Will and Thrift Company. He will be detscher to se mar staff in 1983 as assistant vice managing the newly formed regional nior vice presi president in commercial loans, and collection department located at dent of consu has since served in that capacity. Norwest Bank Duluth, N.A. mer banking, Mr. Carlson continues as vice James C. NeuRoseville Director Elected president along with his new duties roth to senior Robert H. Carlson has been elected as manager of the capital manage a director of The Roseville Bank, ment division of Norwest Bank vice president according to Robert O. Ashbach, Duluth, N.A. He came to Norwest’s a g r i c u l t u r a l lending, and • chairman. Mr. Carlson is a vice pres trust department in 1960. Dia nn e L. P E. CLAVADETSCHER ident of and owns a substantial part Two new officers were also ap of a utilities holding company called pointed. Richard C. Loraas was The Gas Supply Inc. elected an assistant vice president and Donald J . Siegel, Jr. was elected • New Grand Meadow Cashier a personal banking officer. Jean Jech has been named cashier Prior to joining the bank as a com of th e F i r s t mercial lender, Mr. Loraas was em American State ployed by Seaway Port Authority of 0 Bank of Grand Duluth where he has served as de Meadow, accord velopment director for the past in g to R ay eight months. J.C. NEUROTH D.L. HOOVER Gomer, execu Mr. Siegel joined Norwest in 1983 tive vice presiin the consumer and retail banking Hoover to assistant vice president 0 dent. area. He previously served in a posi real estate. Mrs. Jech tion with Merchants National Bank Mr. Clavadetscher began his started with the in Cedar Rapids, Iowa. banking career at First Bank Miles Grand Meadow City as a personal banker and assis bank in 1955 as J. JECH Mankato President Elected tant manager of the personal bank • bookkeeper and has advanced John C. Roise has been elected ing center. He was then a credit through a variety of positions since president, chief operating officer training officer-human resources that time. and to the board of Norwest Bank division with First Bank System, Mankato, N.A. He succeeds George Inc. He joined First Bank Rochester W. Sugden, former president and in March, 1983, as vice president of ^ Norwest Bank Duluth chairman, who has been named consumer banking. Elects New Officers chairman and chief executive officer. Mr. Neuroth, formerly with PC A The board of directors of Norwest Mr. Roise joined Norwest in 1968 of Janesville, Wis., and later with Bank Duluth, N.A. has elected a and came to the Mankato affiliate in Production Credit of St. Charles, new director, promoted four officers 1978. Since that time, he has held joined First Bank Albert Lea in • and elected two new officers, as an the positions of senior vice president 1977 as assistant vice president nounced by Charles A. Russell, re and executive vice president - credit. agricultural lending. He was made gional president of Norwest’s Re Mr. Sugden joined Norwest in senior vice president-second officer gion I, following the bank’s annual 1948 and started in Mankato in in 1981. In May of 1984, he joined board meeting. 1951. He was elected president in First Bank System ’s Southeast ® Joining the board of directors is 1965. Minnesota Region Office as a re Robert M. Fischer, president and Also promoted was Patrick Bur gional loan specialist. chief operating officer of Norwest nell to vice president and cashier. Ms. Hoover began her banking Duluth. Mr. Burnell joined the bank in 1978 career in 1969 at First Bank Fair Additionally, the bank promoted and since that time has served as ac mont. She joined First Bank Ro ^ Philip D. Rolle to senior vice presi counting officer and controller. chester in 1983 as a real estate loan dent; Claudia Russ Anderson and Paul Pfeifer has been promoted to officer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1985 38 Minnesota News Fulda Bank Closed, New Charter Issued Appleton Executives Elected Citizens State Bank of Fulda was closed February 15 by Michael A. Hatch, Minnesota Commissioner of Finance, and the FDIC was named receiver. Because no acceptable bids were received by the FDIC for the bank’s purchase, The FDIC board approved an insured deposit transfer of Citi zens State’s deposits to Fulda State Bank, a newly-charterd subsidiary of Fulda Bancorporation, Inc. The failed bank’s sole office reopened Tuesday, February 19. FARMERS & Merchants State Bank, Appleton, recently elected the following new officers, At the time the bank closed, its from left to right: James Massee, vice president; Leonard Massee, president; Ralph C. deposits amounted to $35 million in Schmidt, chairman and executive vice president, and Wade Schmidt, vice president and 5,200 accounts. All but about cashier. $331,000 of the bank’s deposits in erations supervisor, and Karen A. 15 accounts were within the federal effecting their operations. As the Ag TRAK specialist for all Honermann to administrative assis insurance limit of $100,000 or other wise secured. Owners of such unin Southeast Minnesota First Banks, tant. Mr. Wohnoutka joined the bank ^ sured deposits will share propor Mr. McMillin will conduct Ag tionately with the FDIC in the pro TRAK training and assist farm cus as a loan trainee in January, 1984. ceeds realized from liquidation of tomers on an on-going basis for all Ms. Miller joined the bank in 1979, the Southeastern Minnesota First most recently serving as head teller. the failed bank’s assets. With the bank since 1982, Ms. Administration of the transferred Banks. Honermann previously was with ^ insured deposits will be funded by Norwest Bank Worthington. an equivalent cash payment from Five Appointed in Mankato the FDIC. The acquiring bank is First Bank Mankato has ap paying the FDIC a premium of pointed five to new positions; Terry Fosston Executives Elected At the annual stockholders $301,000 for the right to receive the L. Kakeldey, vice president and transferred deposits, and will pur cashier; Valerie Holzhueter and meeting of Farmers State Bank, chase certain assets of the failed Gerald A. Brossart, assistant vice Fosston, Lynn H. Siverson was elected chairman and chief executive bank totalling $9.6 million. president; Constance A. Bertrand, officer; D.L. Lundquist, president; assistant vice president and market Ag TRAK Specialist Named Darrell G. Dvorak, vice president; ing officer, and Steven G. ChristoLorraine Hahn, cashier, and Darrell 0 For Southeastern Region pherson, agriculture loan officer. G. Dvorak, a new board member. Dennis G. McMillin has been Ms. Kakeldey joined the bank in named Ag TRAK Specialist for the 1979 as personnel officer, previously New Name For Dundas Bank Southeastern serving at First Bank St. Paul. Dundas State Bank, Dundas, has Ms. Holzhueter joined First Bank Minnesota Re adopted a new name effective Febru- • South Dakota after graduation and gional First ary 1, 1985, according to Craig Banks in charge transferred to Mankato in 1978. Elton Redalen. The new name, Can Mr. Brossart graduated from of a computer non Valley Bank, was approved at North Dakota State University in ized financial the annual shareholders meeting 1982 and joined First Bank Man m anagem ent held January 23. # kato later that year. package called Mr. Redalen further announced Ms. Bertrand has been with the Ag TRAK. that Cannon Valley Bancshares Inc. bank since 1974, most recently serv Mr. McMillin, has acquired 98% of the outstanding ing as marketing officer and per who previously D.G. MC MILLIN stock in Cannon Valley Bank pur sonal banking officer. was a vice presi suant to approval by the Federal R e -# Mr. Christopher son joined the dent and agricultural loan officer at serve Bank of Minneapolis. First Bank Spring Valley is an Iowa bank in May, 1984, previously serv native. He holds a B S degree in ing as a zone credit representative Elected in Red Wing agriculture from Iowa State Univer for International Harvester Credit Paul Eisenbeis has been elected ^ sity and a MBA degree in Business Corp. assistant cashier at Norwest Ban kw Administration from the University Red Wing, N.A. of Iowa. A native of North Dakota, Mr. Ag TRAK, developed by the First Adrian Promotions Told Adrian State Bank, Adrian, has Eisenbeis joined the staff of Nor Bank System and Control Data, is announced the promotion of Brian west Bank Dodge Center in 1982 ^ designed to help farmers become better managers by tracking and A. Wohnoutka to agricultural repre and in August, 1983, moved to Red organizing the financial information sentative; Darlene Miller to op Wing as operations assistant. Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 Bradley Keller, vice presidents; Susan Ramsdell, cashier; Linda Whetter, assistant vice president, and Rose Brown and Gladys Lakefield, assistant cashiers. Two Retire in Minot New Chairman Named Plans Set for NDBA Ag Credit Conference £ • • • • ^ The North Dakota Agriculture Committee, under the leadership of Roger Monson from the Citizens State Bank, Finley, has completed plans for its 1985 Agricultural Cred it Conference to be held ThursdayFriday, April 11-12, at the Seven Seas Motor Inn, Mandan. Michael Boehlje, professor of eco nomics at Iowa State University, Ames, will be the keynote speaker. He will spend all of the first day discussing the management of prob lem agricultural loans. “The Garrison Diversion Project — Past, Present and Future,” is the topic for Thursday’s luncheon speakers William Guy, resources consultant with Basin Electric, Bis marck, and Mike Dwyer, a Bismarck attorney representing the North Dakota Water Users Association. The second day will include a full agenda of timely subjects: legisla tive update, hedging with agricul ture options, the NDSU farm credit advisor project, and protecting the farm loan before, during and after bankruptcy. Grafton Officer Named ^ David Gaylor has joined First American Bank and Trust of Graf ton as loan officer. He previously was with First National Bank of 0 Bowman, which he joined in 1980 following graduation from Wartburg College in Waverly, Iowa. Three Appointed in Fargo • Mark V. Heier has been named vice president and financial officer of Dakota Bankshares, Inc., Fargo, holding company for Dakota Bank and Trust Co. In other staff appoint• ments, Roy H. Ryttie was named audit manager and William D. Kramer was named staff auditor. Mr. Heier, a CPA, joined Dakota Bankshares, Inc. in 1983 and prior • to that time was controller at Twin City Construction Co. of Fargo. Mr. Ryttie is a chartered bank auditor and has 13 years experience as a bank examiner for the state of Minnesota. Mr. Kramer, also a CPA, pre viously was a senior accountant at Gate City Savings and Loan, Fargo. Mohall Bank Transfers Ownership, Officers Elected The ownership of Citizens State Bank, Mohall, was transferred effec tive December 31, 1984, from Banker Insurance Agency to CSB Bankshares Inc. New officers elected were: James Mathiason, president and chairman; Melba Gilseth, Wesley Well and T.A. Solheim, chairman, and Cyrel “Cy” J . Butz have retired from the board of First American Bank & Trust of Minot. Roger J.P . Hansen has been elected to replace Mr. Solheim as chairman. Mr. Solheim joined the bank in 1939 and served as president from 1951 to 1981 when he was named chairman. Mr. Butz, who served on the Minot bank board since 1964, is chairman of the board of Magic City Beverage. Mr. Hansen, who is president of Minot Woodworks, Inc., was elected to the board in 1967. “The Challenge of Change” Theme of NABW Conference The North Dakota National Asso ciation of Bank Women State Con ference will be held April 24-26 at the Sheraton Riverside Inn, Minot. Largest North Dakota Banks EPOSIT and loan figures for North Dakota banks reporting $50 D m illion or 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. 25. 26. 27. 28. Bank of North Dakota, B is m a rc k.......... First Bk. of N. Dakota, Fargo ................ First Natl. Bk, Grand F o rk s .................... First Bank of B is m a rc k .......................... Norwest Bk. Fargo, N.A........................... Norwest Bk. Minot, N.A........................... Dakota B&T, Fargo ................................ Fargo Natl. B & T ...................................... American State Bk., W illis to n ................ First Natl. B&T, W illiston ...................... First American B&T, M in o t.................... Norwest Bk. Mandan, N.A....................... First Bk. of N.D., Minot .......................... First Bk. of N.D., Grand F orks................ First Bk. of North Dakota, Jamestown . Liberty Natl. B&T, Dickinson ................ First American B&T, Grafton ................ Valley Bank & Trust, Grand F o r k s ........ Norwest Bk. Jamestown, N.A................. State Bk. of Burleigh Cnty., Bismarck . . First Western St. Bk., M in o t.................. Norwest Bank Grafton, N.A.................... First Natl. B&T, Dickinson .................... Foster County B&T, C a rrin g to n ............ Norwest Bk. Wahpeton, N.A................... First Natl. Bank of B o w m a n .................. Norwest Bk. Valley City, N.A................... First Inti. Bk. of Watford C it y ................ December 31, 1984 Deposits Loans $601,285 $270,339 203,100 153,795 163,061 88,276 160,274 133,385 150,301 111,245 140,818 104,100 122,749 93,389 119,831 95,606 119,333 74,190 108,510 54,746 103,451 63,291 97,413 72,210 95,716 61,183 92,833 55,154 74,601 42,067 69,250 36,145 68,861 45,642 67,120 33,566 65,265 41,832 63,947 41,342 62,663 40,623 59,746 34,635 56,308 27,894 52,306 33,615 52,275 37,203 51,620 19,444 50,311 35,558 50,066 22,183 December 31, 1983 Deposits Loans $477,239 $283,826 191,884 155,804 160,000 73,268 171,235 128,105 137,247 98,077 148,948 96,846 123,995 99,541 116,152 80,230 110,895 72,972 90,992 49,254 99,961 58,527 94,159 70,225 82,221 63,403 91,733 53,942 74,744 45,437 68,063 38,710 66,207 39,477 64,575 28,552 77,624 44,678 62,204 39,740 57,753 37,983 54,930 29,498 57,206 30,052 51,585 30,197 56,602 32,123 50,783 20,241 55,984 31,618 45,438 19,696 Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis These days in the financial services industry, the competi tion ju st keeps getting tougher. F ro m the smaller independent institution to the large hold ing company, higher produc tivity and profitability are crucial to your success. E n te r TransAction System s, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TSI offers the m ost sophis ticated information system s on the m arket today, tailored spe cifically to fit your institution’s individual needs. TSI provides the system s. You provide the control. W ith complete custom er relationship data on-line, you make the m ost of your custom er base. W ith distributive item proc- . essing, you make the m ost of | your money by maximizing floi opportunities. And with plat-1 form automation, you make^ the m ost of your people by dramatically increasing their | productivity. You can also count on TSI’ unique commitment to complt employee training: in-house for mal instruction as well as on-going training and user workshops. And, through TSFs affilia tion with the F irs t In terstate System , you give your custom ers access to the nation’s larg est autom ated teller network, Iwith over 5,000 CIRRUS® Ia TM’s nationwide. Quite simply, TSI can be your brand new key to success. Tb find out how, call (303) 293-5500. TSI. Consider the Profitabilities. O TransAction Systems, Inc. A Subsidiary of First Interstate Services Co. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 Theme for the conference is “The Challenge of Change.” Registration will begin on April 24 with a poolside social and enter tainment by the Mouse River Play ers presenting their Music Review “Language of Love.” Keynote speaker for the confer ence is Barbie Fairbanks Eide, of Austin, Tex., who will present a seminar on April 25 entitled, “The Ultimate Professional.” Ms. Eide specializes in seminars, speeches, sales meetings, communications and time and stress management. She is a well-known author of numerous magazine articles and is featured in several books. Following the semi nar will be a special presentation by the Mouse River Players, and the dinner theater — “Gin Game.” On April 26, Virginia Higin- botham, vice president of the United Bank of Pueblo, Colo., will present “Becoming a Hybrid Manager,” a program developed by NABW Na tional Association. A special pack age program entitled “Are You Us ing Nonpaid Work to Your Advan tage” will also be presented. For further information contact, Carol Shirley, Norwest Bank, (701) 857-1753, or Gloria Hultberg, First Bank, (701) 857-0336, state confer ence chairpersons. Washington Legislative Trip Set for April The dates of Monday-Wednesday, April 15-17, have been selected for this year’s North Dakota Bankers Association Washington Legislative and Administrative Conference. Headquarters for NDBA will be the new JW Marriott Hotel at National Place, located in Pennsylvania Ave nue, ju st two blocks from the White House. The delegation of North Dakota bankers will meet with senior offi cials of the American Bankers Asso ciation, Comptroller of the Curren cy, Federal Deposit Insurance Cor poration and Federal Reserve Board. Additional meetings with re gulatory bodies are now being ar ranged. On Tuesday evening, NDBA will host its traditional re ception for members of the North Dakota Congressional delegation and their staffs. Registration should be made through the NDBA office by March ^ £ • # credit adjustment officer and assis tant manager of the special credits department. • Bradley Morre was appointed ad vertising officer. He has been with the bank as advertising repre sentative for five years. Promoted in Dubois Cheyenne Promotions Told Auburn W. Dowdy, president and chief executive officer of First Na tional Bank and Trust Company of Cheyenne, has announced the pro motion of five employees. Rolfe Burgess has been named as sistant vice president in operations. He has been with the bank seven years, most recently as customer service officer. Grace Brown has been given re sponsibility for the bank’s real es tate loan department as vice presi dent and manager. She was vice president in the operations area. Donald E. Hole has been named vice president in marketing. He had been director of market research and development since joining the bank early in 1984. Sherry Sterling has been pro moted from credit manager to assis tant loan officer and will have charge of loan review and student loans. Craig Kerrigan, vice president and manager of the bank’s real es tate loan department, has been moved to the commercial lending Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis area. He will make and service larger business loans and lines of credit. Six Appointed At First Interstate, Casper First Interstate Bank of Casper recently announced the appoint ment of six employees to new posi tions. Mark Vincent, vice president and chief financial officer, has assumed the additional position of head of the finance division. Linda Wilson was appointed as sistant vice president and manager of the investment department. She joined the bank in 1977 and most recently served as financial services officer. Denise Peacock, former market ing representative for the bank, has been appointed assistant vice presi dent and manager of the new ac counts department. Patrick Sullivan was named assis tant vice president of the finance division. He has been with the bank four years. Karen A. Crosby was named Dubois National Bank has pro moted Linda W. Burton to vice pres ident. She formerly was assistant ^ vice president and cashier. Those duties will be taken over by Bonnie S. Rice, who has been promoted from operations officer to assistant vice president and cashier. f Thermopolis Bank Adds One Stephanie Brown has joined First National Bank at Thermopolis as as sistant vice president. • She previously was a loan officer with American Bank of Wheatland, where she has been serving the past four years. First Wyoming Approves Stock Purchase Plan First Wyoming Bancorporation, Cheyenne, late in January announced ^ its board’s approval to purchase up to $2,500,000, or approximately five percent, of its four million common shares outstanding. David R. Johnson, chairman, president and CEO stated, “The purchase of the stock was autho rized because the company believes the stock has recently been under valued in the market.” The stock 4) Wyoming News • has been trading near its lowest point - $11 a share after trading as high as $13-7/8 in the past year. Mr. Johnson commented that the stock will be bought from time to ® time on the open market or through private transactions. The shares, which will be purchased with cash on hand, will be held as treasury stock and used for general corporate ® purposes. 0 • • • ® • ^ 0 ^ R.M. SCHELL D.L. STRAIGHT First Wyoming Bancorp. Promotions Announced First Wyoming Bancorporation, Cheyenne, recently announced the promotion of Judith T. Walz to vice president and manager of marketing, planning, public relations and research, and Marvin A. Schutte to assistant vice president and man ager of data processing. Mrs. Walz joined the organization in 1981 as research analyst. Since that time she has served as market ing officer and most recently as as sistant vice president of planning and research. Mr. Schutte joined First Wyom ing Bancorporation in July, 1984, and has managed the organization’s data processing center since that time. He has had over 20 years experience in data processing. Wyoming National, Casper Promotes Seven Officers The board of directors of Wyom ing National Bank of Casper recent ly announced the promotion of sev en bank officers. Promoted were: Roger Trupp, vice president in commercial loans; T e r ry Ham, vice presi dent and man ager of the consumer lending K.L. HIX M.E. HINTON 43 department; David C. Rogers and Richard M. Schell, assistant vice presidents, commercial loans; Don na L. Straight, operations officer; Kari L. Hix, trust officer, and Mary E. Hinton, assistant investment of ficer. Mr. Trupp started his employ ment with the bank in 1983 in com mercial loans. Mr. Ham most recent ly was with Citizens National Bank and Trust, Oklahoma City, as vice president and director of consumer/ small business lending. Mr. Rogers, a graduate of the Uni versity of Wyoming, has been with Wyoming National since 1981. Mr. Schell, also a graduate of the Uni versity of Wyoming, started with the bank in 1979. Mrs. Straight joined the bank in 1975 and has also served as head bookkeeper and bookkeeping man ager. Ms. Hinton joined the bank’s bookkeeping department in 1974. Largest Banks in Wyoming EPOSIT and loan figures for Wyoming banks reporting deposits of $40 m illion or more at year-end are shown in the chart below. Com D 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. First Interstate, C asper.......................... Wyoming Natl., C a sp e r.......................... Stockmen’s B&T, G ille tte ...................... Rock Springs N a t l.................................. American Natl., C h e ye nn e .................... First Natl. B&T, Cheyenne .................... First Interstate Bk of Laramie, N.A........ First Interstate of Sheridan1 .................. First Interstate Bank, R iverton.............. First Natl. Bank, G ille tte ........................ First Natl. Bank, Powell.......................... Shoshone First Natl. Bank, C o d y.......... Jackson State B ank................................ First Natl., Sheridan .............................. Hilltop Natl. Bk., C a s p e r........................ First Wyoming Bank, C o d y .................... Rawlins Natl. Bank ................................ Stockgrowers State Bank, Worland . . . . First Natl. Bank, E v a n s to n .................... First Wyoming Bk. N.A., Cheyenne . . . . Citizens Natl. B&T, T o rrin g to n .............. First Wyoming-Evanston ...................... First Natl., W o rla n d ................................ First Wyoming Bank, C a s p e r................ North Side State, Rock S p rin g s ............ First Security Bk., Rock Springs............ Bank of Laram ie...................................... First Wyoming Bk. N.A., La n d e r............ First Wyoming Bk. N.A. Kemmerer . . . . American Natl., R iverton........................ First Natl., B u ffa lo .................................. Star Valley State Bk., Afton .................. First State Bank of N e w ca stle .............. December 31, 1984 Deposits Loans $280,666 $190,961 217,010 137,587 174,861 100,989 127,483 30,482 110,739 74,475 108,295 76,946 101,640 57,833 99,128 69,379 95,391 67,021 34,334 84,833 81,183 48,798 76,488 26,638 72,620 48,318 72,540 52,948 63,452 22,727 62,339 42,785 62,029 45,414 60,241 31,445 56,686 25,879 56,145 41,432 53,280 36,500 51,769 27,196 27,244 49,405 48,279 25,768 47,975 16,349 47,216 26,049 46,783 27,397 45,911 27,288 44,152 24,563 43,697 27,175 43,357 23,184 41,571 27,232 40,371 18,980 December 31, 1983 Deposits Loans $273,204 $188,364 222,544 144,031 166,158 115,746 113,048 30,991 102,244 64,467 104,588 69,028 95,179 49,317 94,520 55,999 89,079 66,551 88,435 31,171 75,941 40,198 63,601 23,688 65,537 72,620 71,311 48,085 55,734 43,177 69,069 39,340 57,990 31,472 59,051 32,697 58,097 23,296 63,724 46,422 47,694 38,370 52,200 29,519 44,896 25,645 43,563 25,629 45,489 15,946 42,740 25,927 46,311 28,765 51,523 25,628 47,257 28,688 47,419 32,094 38,475 23,240 38,827 25,776 39,583 18,365 1 Formerly Bank of Commerce, Sheridan T. HAM D.C. ROGERS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1985 44 replaces Robert J . Gersack, who h as# been named president of First Bank Livingston. Mr. Lamb most recently served as vice president and manager of the agriculture/commercial loan depart-# ments of First Bank Lewistown, a position he has held since 1983. Cut Bank President Elected Art Wiedeman, Jr. has been elected president of First National Bank of Cut Bank. He replaces Richard A. Kullberg who was named chairman. First National Bank also an nounced a 50% stock dividend. First Bank Lewistown Elects Alex Zier President Alex R. (Dick) Zier has been elected president and a director of First Bank Lewistown, Mr. Zier suc ceeds D.A. (Al) McRae who has elected to take early retirement ef fective March 31. Mr. Zier joined First Bank Sys tem in 1973 as an adjuster at First Bank Bozeman. He joined First Bank Miles City in 1974 and was elected personal banking officer in 1976, assis tant vice presi dent of commer cial lending in 1978 and vice A.R. ZIER president and manager of commercial lending in 1980. In 1981, he joined First Bank Wahpeton, N.D., as vice president and second officer and has held his current position as senior vice presi dent of that bank since 1984. Mr. McRae joined First Bank System in 1959 and has served as president of First Bank Lewistown since 1983. Great Falls to Host MBA Marketing Conference The Holiday Inn, Great Falls, is the location for the 1985 Montana Bankers Association Marketing Conference to be held April 4-5. Dr. James H. Donnelly, Jr. will be the featured keynote speaker. He will present one full day of topics ranging from “The Changing Man Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis agerial Focus in Banking” to “Key First Bank Livingston Elects New President Ideas for Marketing Planning.” The conference will also include a The board of directors of Firsts number of concurrent workshops Bank Livingston, has elected Robert and an evening cocktail reception. J. Gersack, pres For registration, contact the MBA ident and direc office in Helena. Hotel reservations to r e f f e c t i v e can be made directly with the Holi March 1. Mr. day Inn in Great Falls. Be sure to G e r s a c k s u c identify yourself with the MBA. ceeds Malcolm E. Adams who has been pro New President Elected moted to presi dent of F irs t At First Bank Miles City Bank Miles City. The board of directors of First R.J. GERSACK Mr. Gersack Bank Miles City has elected Mal most recently served as senior vice colm E. Adams president and second officer of First* president and di Bank Miles City where he has been r e c to r . Mr. since 1964 when he was hired by Adams succeeds First Bank System. He has held nu Gordon L. Bickmerous positions with First Bank le, who has Miles City including real estate loan* elected to take manager, manager personal banking early retirement, center, and senior loan officer, a po effective March sition he most recently held. 31. M r. Adams most recently was president of First Bank Livings ton, where he has been since 1974. Fort Benton VP Named He began his career with First Bank William J. Poppler has been named Great Falls in 1963. From 1965 vice president and loan officer for® through 1970 he held several posi First Bank Fort Benton. tions in Great Falls, prior to becom Mr. Poppler previously served as ing vice president and manager of a loan analyst for the PCA in Glen the ag department in 1970, a posi dive; as assistant manager of Bank tion he held prior to his promotion to of California’s branch office in® Livingston. Stockton, Calif., and as vice presi Mr. Bickle originally started with dent of Security State Bank, PlentyFirst Bank Miles City in 1953. In wood. 1964 he was transferred to Bis marck, N.D., as manager of the real estate and farm loan departments. In 1970 he moved to LaCrosse, Wis., as second officer in charge of lending Bozeman Director Elected Carl Lehrkind III has been elected there and in 1973 was named presi dent and CEO of First Bank in to the board of directors of First • Albert Lea, Minn. On January 1, Bank Bozeman. Mr. Lehrkind is a native Bozeman 1983, he returned to Miles City as businessman and is president of president and CEO. Also announced at the bank was Lehrkind’s Inc., a soft drink and the promotion of Edward C. Lamb beer distributorship serving south- # to vice president, second officer. He west Montana. 45 David R. Cornell, R.F. Jorgensen, ficer, a position he has held until pre Jr., John Kennedy, Jam es L. sent. McDonald, William Neuman, R.S. Mr. Wollitz joined the bank in O’Day, John H. Sheffels, J . Robert 1975 and in 1980 was elected to his Sletten, John D. Stephenson, Jr., most recent position of controller and Bill N. Walden. John Reichel and compliance officer. and Robert L. Reiquam will also con Mr. Evans joined First Bank Sys tinue as board members. Joseph G. tem in 1968. At the time of his ap Mudd and Jack R. Palmer have pointment, he was serving as man retired. Jack D. Satterwhite has re ager of the Helena and Great Falls signed from the board due to a move regional centers. out of the area. Ms. Kemp first joined the bank in 1975. In January, 1984, she was as signed to the commercial depart ment as a credit analyst with addi Five Promoted in Helena tional audit responsibilities. Ms. M ayotte transferred to Earl Johnson, president of First Bank Helena, has announced the fol- Helena from Burnsville, Minn., in 1982. Her most recent position was lowing promo that of supervisor of proof and ac tions: Richard count information departments. Fossum, senior vice president and second offi cer; Lowell WolBillings Agency Acquired litz, assi stant By First Bank System vice president and controller; First Bank System, Inc. has re Bob Evans, as ceived approval from the Federal sistant vice pres Reserve Bank of Minneapolis to ac ident and operaquire the Marshall-Salsbury, Inc. in surance agency in Billings, accord ing to Jam es D. Hoiness, president of the Agencies Division of F B S In surance, the company’s insurance brokerage subsidiary. The Marshall-Salsbury agency, which has served the Billings com munity for over 90 years, will be con solidated with the company’s exist ing agency in Billings, F B S Insur ance Montana-Hoiness LaBar. The L. WOLLITZ B. EVANS Hoiness LaBar agency has served the Billings area since 1921. Douglas G. Irion, a former owner of Marshall-Salsbury, and David K. Purcell, a Marshall-Salsbury em ployee, will join F B S Insurance Montana-Hoiness LaBar as account executives. James W. Salsbury III, the agency’s other former owner, will remain full-time with his sepa rately-owned real estate operation, G. KEMP N. MAYOTTE but will serve part time as a consul tant to the agency’s new owners. tions officer; Georgene Kemp, credit F B S Insurance Montana-Hoiness reveiw analyst, and Nancy Mayotte, LaBar is managed locally be Melvin operations officer. P. (“Pete”) Hoiness, regional vice Mr. Fossum started his banking president for Montana. career with Commerce Bank and Trust Company of Helena in 1961. He joined First Bank Western in Bank CEOs Meet in Missoula in 1965 and transferred to Minneapolis in 1974 as vice presi Helena for Conference dent of F B S Financial, Inc. He About 100 bank CEOs and senior transferred to First Bank Helena in officers met in Helena Jan. 31 and 1976 as vice president and second of- Feb. 1 for the MBA Senior Bank Montana News Billings Elections Told Norwest Bank Billings has an nounced the election of Connie Bergsven as vice president for commer• cial middle market lending, and lone Young as instalment loan officer. In addition, Jackson L. Schutte, regional president for Norwest’s Montana region, has been elected to • the bank’s board. Ms. Bergsven has been with Nor west since 1973 and for the past year has been manager of the pri vate banking division of Norwest ® Bank Bloomington, Minn. Ms. Young has been with Nor west since 1981. Great Falls First Banks Elects Officers, Directors Robert L. Reiquam, chief execu tive officer and president of First Banks Great Falls, has announced the following advancements and of ficer elections at First Banks follow ing the January annual stockholders and directors meeting. Personnel elected as officers at both First Bank Great Falls and First Bank Wet Great Falls were Gerald E. Girres, vice president in personnel; Duane I. Voeller, vice president in business development and market ing; Fern P. Erickson, comptroller; William J . Pledge, assistant vice president in property management and security; Betty R. Rowton, as sistant vice president in business development and marketing; Agnes Kuglin, customer service officer -tellers, and Dora C. Phillips, credit review and compliance officer. At First Bank Great Falls alone, six promotions were announced. Promoted to assistant vice presi dent were: Lucien R. Bourcier, Marylin J . Kraenzel and Karen M. Motil. Other promotions were Julie K. Gossack to commercial loan offi cer, and Gerald E. Lewis and Wil liam J . Rockwell to retail banking officer. On January 19, a common board of directors for First Bank Great Falls and First Bank West Great Falls was elected. This completed the organizational changes planned. Last year the two banks were placed under common management to in crease their organizational effective ness and to strengthen their compe titive ability. Board members include: Nancy A. Davidson, Robert A. Kudrana, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1985 46 Management and Counsel Confer ence. Senators Tom Towe and Ted Neu man joined a Thursday afternoon panel for a legislative update. The senators spoke about various tax bills and ag loan guaranty programs that they are involved with. Jerry Foster and John LaFaver, Depart ment of Revenue, debated with the Montana Bankers Association over a bill that proposes to stabilize the amount of taxes collected statewide but disbursed to the counties; MBA proposed the bill. The conference attracted Robert Whitlock, an attorney from Minnea polis, who spoke on bank regulators; Robert MacDonald, president of ITT Life Insurance Co. of Minneapo lis, who spoke on a joint venture be tween insurance companies and banks; Dr. Jam es Austin, professor from Harvard University, who out lined the global agricultural system; Anthony Scalzi, Federal Deposit In surance Corporation, who detailed the stability of banks; Randy Killebrew who spoke on behalf of commu nity banks nationwide, and Gus Simpson, Farm Credit System of Spokane, who spoke on the closure of Production Credit Associations in the Spokane District. Hamilton VPs Promoted The board of directors of Ravalli County Bank, Hamilton, has pro moted three officers to vice presidents: Geraldine M. Solander, Mildred L. Higgins and David L. Hardy. Mrs. Solander joined the bank in 1961 and most recently served a s # data processing and general opera tions supervisor. Ms. Higgins, also with the bank since 1961, has served in bookkeep ing, general operations and data pro- # cessing. Since 1981 she has been in charge of the bank’s escrow depart ment. Mr. Hardy joined the staff in 1978 and has spent the last three years as # a commercial loan officer. Two Promoted in Butte # Following the annual sharehold ers meeting, Norwest Bank Anacon da-Butte, N.A. announced the pro motion of Fred Stradinger to vice president and cashier and Gary Win-® ship to vice president. ficer and a director, and Robert E. O’Connell, chairman. Mr. G irardi^ joined the bank in 1952. Mr. O’Con-® nell joined in 1954. Arvada President Elect Arvada President Assumes New Post Will F. Nicholson, Jr., president of Colorado National Bankshares, Inc., Denver, has announced that the board has elected Frederick F. Wangaard, Jr. senior vice president, loan administration for the com pany. In his position he will serve as coordinator of credit support for all of the holding company’s subsidiary banks. From 1981 to present, Mr. Wan gaard was president of Colorado Na tional Bank - Arvada. He began his banking career at the Colorado Na tional Bank of Denver in 1969. Appointed in Boulder First National Bank in Boulder has announced the appointment of Lois J . Remcho as trust officer. Ms. Remcho served for three years in the trust department at Connecticut Bank and Trust Com pany in Hartford, Conn. Most re cently, she has worked for an attor ney in Boulder and for the Univer Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sity of Colorado Health Sciences Center. Promoted in Greeley Shirley Hanson has been promo ted to senior vice president and cashier of the Cache National Bank of Greeley. She is responsible for all bank operations. Mrs. Hanson has worked at Cache National Bank for 20 years having gained experience in virtually all departments of the bank. Prior to joining Cache, Mrs. Hanson served two years at the 1st National Bank of Minot, North Dakota. Rex Stephenson has been elected 0 president of Colorado National Bank - Arvada. He replaces Frede rick F. Wangaard, Jr., who will be assuming new duties within the parent holding company. Prior to this most recent promo tion, Mr. Stephenson served as vice president and senior loan officer for the bank. He previously held key po sitions with the Department o f # State; U.S. Embassy Lisbon, Portu gal; Chase Manhatten Bank, New York, and McPherson Concrete, McPherson, Kan. Colorado National Bank - Arvada® also announced the promotion of Alan K. Parker to vice president, se nior loan officer. Mr. Parker joined the bank in 1972 and has held several positions® in instalment and commercial loans. First National, Englewood Advances Seven IntraWest Bank of Sterling re Promoted in Sterling cently announced the promotion of Robert A. Hessler to senior vice president and senior loan officer, and Jam es L. Bowey to assistant vice president, loans and marketing. Mr. Hessler joined the bank in 1969, Mr. Bowey has been with IntraWest of Sterling since 1980. Recently retirements from the bank’s staff include: Louis Girardi, senior vice president, senior loan of- ^ First National Bank of Engle wood recently announced the follow ing advancements: John K. Weckbaugh, vice president and senior trust officer, and manager of t h e # trust department; Carolyn Bound, assistant vice president in real estate department; Steve Driscoll, assistant vice president in commer cial loan department; M aureen# Beekman, cashier; Claire Jones, op- Colorado News erations officer in bookkeeping de partment; Nancy Hyman, loan ad ministration officer, and Michelle Sullivan, trust officer. Mr. Weckbaugh started his bank ing career in Englewood in 1969. He has served in the trust department and investments since 1974. Mrs. Bound has been with the bank four years and in banking 14. Mr. Driscoll joined the bank in 1982 as a credit analyst. Mrs. Beekman is a graduate of the University of Colorado at Den ver and has been in banking since 1981. Named in Fort Collins Colorado National Bank - Fort Collins has announced that Thomas E. Denny has joined the bank as an assistant vice president, commercial loans. Mr. Denny has ten years of bank ing experience in addition to three and-one-half years as the owner and manager of a collection agency in Fort Morgan. Promoted at United Bank of Garden of the Gods The United Bank of Garden of the Gods, Colorado Springs, has an nounced the pro motion of Jo M. Drury to the po sition of opera ti o n s offi cer , bookkeeping manager. M s. Drur y joined the bank in March, 1984, after a move J.M. DRURY from St. George, Utah. She has 20 years of bank oper ations experience, and has attended Parkland College of Champaign, 111., and the American Institute of Bank ing. Colorado Springs Natl. Approves Tender Offer United Banks of Colorado, Inc. and The Colorado Springs National Bank announced last month that United Banks will make a tender of fer for all outstanding shares of com mon stock of CSNB at $100 per share. The board of directors of CSNB has approved the offer and each director intends to tender to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UBC all his or her shares other than directors’s qualifying shares and to sell those shares to UBC upon com pletion of the offer at $100 per share. CSNB, organized in 1907, is the third largest bank in Colorado Springs, with assets of $219 million at December 31, 1984. It is anticipated that CSNB and United Bank of Colorado Springs will be merged resulting in a bank with assets in excess of $300 million. Garland L. Anneler, president and 47 chairman of United Bank of Colora do Springs, will be chairman follow ing the merger. Robert G. Baker, president and chief executive officer of CSNB, will be president. Valley Bancorp Franchises With First Interstate An agreement was announced re cently by John C. Dean, president and CEO of First Interstate System, Largest Banks in Colorado EPOSIT and loan figures for Colorado banks reporting deposits of $70 m illion or more at year-end are shown in the chart below. Com D 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. United Bank, D e n v e r.............................. First Interstate Bk. of D enver................ Colorado Natl., D e n v e r.......................... Central Bank of D enver.......................... First Natl. Colorado S prings.................. Denver Natl. B a n k .................................. First Colorado B&T, D e n v e r.................. First Interstate, Fort Collins, N.A........... Exchange Natl., Colorado Springs........ First Natl., Boulder ................................ Colorado Springs Natl. Bk...................... United Bank of Fort Collins .................. First Natl. Bank of E nglew ood.............. Metro Natl., D e n v e r................................ Jefferson B&T, Lakewood...................... Guaranty B&T, Denver............................ Cherry Creek Natl. Bk., Denver.............. First Natl., G o ld e n .................................. First Bank of Westland, N.A., Lakewood First Interstate Bank, Englewood ........ IntraWest Bank of Greeley1.................... IntraWest Bank of B o u ld e r.................... Greeley Natl. B ank.................................. Mountain St. Bk., Denver........................ United Bank of L ittle to n ........................ First Natl. Bk. of Grand J u n c tio n .......... Colorado Natl. Bk., P u e b lo .................... United Bank of G re e le y.......................... Colorado St. Bk. of D e n v e r.................... Central Bank, Colorado S prings............ Pueblo B&T, P ueblo................................ IntraWest Bank of Grand Junction2. . . . Lakeside Natl. Bank, Denver.................. First Natl. Bank, Longmont .................. Natl. City Bank, D enver.......................... First Natl. Bk., Glenwood S p rin g s ........ United Bank of Lakew ood...................... Minnequa Bank of Pueblo...................... First Natl. Bank, Loveland .................... First National Bk., W estm inster............ IntraWest Bk. Bear Valley, N.A., Denver Security State of S te rlin g ...................... United Bank of B o u ld e r.......................... Mesa United Bank, Grand Junction . . . . Farmers State Bk., Fort M organ............ IntraWest Bank, M o n tro s e .................... IntraWest Bank, Steamboat Springs . . . 'Formerly First National, Greeley. 2Formerly U.S. Bank of Grand Junction. December 31, 1984 December 31, 1983 Deposits Loans Deposits Loans $1,854,141 $1,481,877 $1,815,280 $1,347,903 1,655,475 1,206,665 1,853,788 1,328,923 1,050,479 912,179 963,954 806,405 977,122 673,752 831,859 624,625 312,052 219,876 258,225 184,169 288,281 196,309 260,093 170,400 281,784 211,444 215,010 163,386 228,084 184,750 203,904 170,118 213,256 154,326 207,568 137,995 199,479 134,199 167,752 117,268 197,249 124,049 185,217 111,432 191,232 149,607 170,391 124,033 182,596 144,975 167,328 125,538 165,853 122,081 176,298 115,616 164,003 112,728 144,226 105,259 158,635 117,225 106,162 156,689 154,706 131,599 150,910 133,740 146,458 130,167 100,475 84,919 139,050 120,044 129,208 101,775 136,705 87,318 125,546 73,009 130,515 94,651 131,896 94,617 121,136 79,767 111,453 71,943 117,521 93,467 130,058 107,406 61,134 114,253 109,440 54,725 109,495 87,091 98,898 75,958 109,245 82,387 108,208 88,007 108,915 119,931 109,960 133,264 76,054 104,770 107,855 78,316 106,027 49,105 105,141 45,401 105,876 74,827 88,111 66,201 101,561 66,143 99,629 54,544 100,361 66,589 111,096 79,583 95,247 34,492 88,608 34,195 95,007 45,763 85,123 42,308 93,839 67,995 94,592 66,430 92,603 64,397 83,607 59,081 90,694 71,428 78,922 59,794 88,008 45,336 84,386 43,281 86,206 57,528 81,106 56,891 84,314 72,322 75,076 60,775 83,505 49,703 77,597 40,815 82,136 55,021 78,614 49,930 81,092 59,776 78,646 54,393 75,927 53,686 70,628 52,323 71,727 37,847 69,649 34,946 71,426 52,623 68,238 49,983 71,031 53,156 63,467 49,318 Northwestern Banker, March, 1985 48 Colorado News Inc.; James J . O’Dell, chairman and president of Valley Bancorp, and Robert J . Malone, president and CEO of First Interstate Bank of Denver, whereby Valley Bancorp, Inc., of Colorado will franchise the Platte Valley Bank of Brighton, Val ley Bank of Frederick and Valley Bank of Lyons under the First Inter state Bank name. First Interstate System also an nounced that First Interstate Bank of Denver will be responsible for franchise development and coordina tion on this and all subsequent fran chise relationships in Colorado. Six Promoted At United Bank of Denver United Bank of Denver’s Chair man and CEO Richard A. Kirk has announced that John R. Schinn was named vice president; Dudley W. Medenhall and Karen C. Parrin were named assistant vice president, and Rosanne L.P. Sterne, Valerie M. Wilcox and Elaine M. Reich were promoted to office positions. Manager of bankcard administra tion, consumer banking, Mr. Schinn joined the bank in May, 1982. He has held positions in research and in formation services and the market ing division. Mr. Medenhall, a lender in the energy and minerals group, joined the bank in November, 1981. He holds a BA in economics from Colo rado College. A manager in the funds manage ment division, Ms. Parrin came to the United Bank of Denver in Dec ember, 1982. She has a B S in mar keting from Miami University, Ox ford, Ohio. Denver Banker Joins The Lucey Group, Inc. W. Robert Alexander, who recent ly announced his retirement as vice c ha ir m a n of First Interstate Bank of Denver, has become a principal and chairman of The Lucey Group, Inc., a Denver based market ing, research and communications W .R. ALEXANDER consulting firm. Mr. Alexander, 57, began his banking career in 1953 with Den ver’s International Trust Company, which later merged with First Na tional Bank of Denver. United Bank of Academy Place President Named Greg A. Winegardner is the new president of United Bank of Acade my Place in Colorado Springs. He fills the position created by Craig Ockers who recently became presi dent of United Bank of Pueblo. Mr. Winegardner joined United Bank of Colorado Springs in 1982 as assistant vice president, commercial loan department. In January, 1984, he was promoted to senior vice presi dent. Governor Signs Bill Prohibiting Nonbank Banks On January 30, Gov. Richard Lamm signed into law S.B. 47 which prohibits the operation of nonbank banks in Colorado. The bill was the Improving investments . . . (Continued from page 20) O. Jay Tomson, chairman and chief executive offi cer, Citizens National Bank, Charles City, la. — In managing our investment portfolio, we attempt to achieve five major goals: 1 to match liability maturities, thereby reducing the interest margin risk factor; 2 to increase the profits of the bank; 3 to provide for adequate liquidity; 4 to provide for public funds pledging requirements and; 5 to meet local municipal credit needs to the extent possible. In matching assets and liabilities we use a custom designed program on our IBM PC to effectively ana lyze our bank’s rate sensitivity, with the result of mat ching our liabilities with investments that provides a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis result of a joint effort by the Inde pendent Bankers of Colorado and the Colorado Bankers Association, and was passed into law in near record time by the Colorado General# Assembly. The prime sponsors of the bill were Sen. Dave Wattenberg (R-Walden) and Rep. Jim Scherer (R-Idaho Springs), both of whom did an excel # lent job piloting the bill through the legislative process without a single hitch or snag. Although the Office of the Comp troller of the Currency has approved# several charters for nonbank banks in Colorado, none had opened for business at the time the new legisla tion went into effect. In fact, none will be allowed to open anywhere un-# til at least February 15, 1985, due to the efforts of a federal judge in Jack sonville, Fla. IBA A and the Commu nity Bankers of Florida had sued the Comptroller challenging his s ta tu # tory authority to grant nonbank bank charters. Oral arguments were heard January 30. The judge asked the OCC not to approve any charters until February 15. 9 Two Promoted At First Colorado Bank James Gollhofer has been ap-^ pointed senior vice president, retail banking division, and Shari Worth ington has been appointed senior vice president, operations, at First Colorado Bank & Trust, Denver. || Mr. Gollhofer has been with First Colorado’s retail division four and one-half years. Ms. Worthington’s promotion fol lows nearly five years of service w ith# First Colorado. profitable interest margin. We tend to keep our investment portfolio short (two years or less) and have taken profits from time to tim e# as it seemed prudent to augment operating earnings. We have also shifted in the past 1-2 years away from municipal obligations and more into governments. The increased usage of leases and Industrial Revenue Bonds has decreased our need for tax exempt securi-# ties. The strain on earnings from a weak farm economy also has reduced our need for tax exempts. The cyclical trend in interest rates is difficult to predict accurately. We recognize that the ability to call the trends in interest rates, combined with some de # gree of mismatching, permits significant opportunities for trading profits. This type of investing obviously re quires more courage than an unsophisticated two-year roll-over strategy. Nevertheless, we do take advantage of the market by taking profits, and shortening and # lengthening maturities, in an attempt to keep in step with the business cycles and improve yields. Import Bank in Washington, D.C. from 1973 to 1975. In December of 1975, President Ford appointed Kobelinski adminis trator of the United States Small Business Administration, a post he held until March of 1977, during which time he also served as a member of the President’s Econo mic Policy Board. ployee benefit department of the trust and investment division, with responsibility for account adminis The Illinois Bankers Association tration as well as new business de board of directors recently ap velopment. He was in private prac pointed three vice presidents. They tice with the Edward J . Vertovec are James W. Civic, vice president Law Firm for five years prior to join and director of state government af ing the bank. fairs; Fred E. Straub, vice president Mr. Adams joined the bank in and director of education, and Terry 1983 as a trust officer. He began his A. Griffin, vice president and direc career in 1971 with Continental tor of member programs. Bank of Chicago. In his new position, Mr. Civic Ms. Arenson joined Elmhurst Na directs the association’s state legis tional in 1980 as an administrative lative program. A staff member assistant. She started her career in since 1979, Mr. Civic previously 1972 with Wells Fargo Bank in San served as assistant director of edu Francisco. cation, director of education and Ms. Peltzer has been with the director of communications. bank since 1976. In her new posi Mr. Straub, in his new post, man tion, she will be responsible for man ages the efforts of three assistant agement of the purchasing depart directors and three secretaries in ment and the administrative ser sponsoring close to 100 seminars, vices function. conferences and schools each year. Ms. Sucherman joined the bank’s He joined the staff in 1979 and was consumer loan division in 1977. director of communications and as Prior to joining the bank she was sistant director of education before employed by Mercantile Financial assuming his current position. Corp. Ms. Griffin, in her new role, serves as director of member pro grams, serves as director of BANKPAC and director of membership. In addition, she is responsible for pro Harwood Heights Banker viding support to the association’s Receives Honorary Degree nine chapters and 55 federations. At its recent mid-year commence She has been with the association ment exercises, Loyola University since 1977. conferred an Honorary Doctor of Laws degree on Mitchell P. Kobelinski, and a Juris Doctor on his son, Elmhurst AVPs Named Mark Kobelinski. Mitchell KobelinFrank C. Rathje, president of ski, who currently serves as vice Elmhurst National Bank, recently chairman of Parkway Bank & Trust announced that Edward J . Verto- Company, Harwood Heights, re vec, Jr. has joined the bank as assis ceived the honorary degree “in tant vice president and trust officer. recognition of his distinguished Also announced was the promotion career in finance and government of the following four employees to service and his dedication to the assistant vice presidents: Donald G. community in which he lives and Adams, trust and investment divi works.’’ Mr. Kobelinski also serves as vice sion; Debra A. Arenson and Donna M. Peltzer, operations, and Mary A. chairman of First State Bank of Chi Sucherman, consumer lending divi cago, which he co-founded in 1970. By appointment of President Nixon, sion. Mr. Vertovec will head the em he served as director of the Export- IBA Board Appoints Three Vice Presidents https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Appointed in Rock Falls Roger Aschbrenner, president of Rock Falls National Bank, has an nounced the appointment of Vincent J . Dietzel to the position of senior commercial loan officer. Mr. Dietzel’s previous banking experience includes serving as vice president of Southpark National Bank of the Quad Cities and the American Bank of Rock Island. He also held the position of regional manager for The Associates Finan cial Services. Asset/Liability Management Seminars Set for March The 1985 Asset/Liability Manage ment Seminars, sponsored by the Il linois Bankers Association, will be held Wednesday, March 27, at the Holiday Inn, Decatur, and Thurs day, March 28 at the Sheraton Naperville. “Maximize Earnings While You Minimize Risks!—A Practical Ap proach to Asset/Liability Manage ment and Increasing Profits” is the title of this year’s seminars, which will be taught at both a basic and ad vanced level so bank managers are able to fully benefit from the pro gram in direct relations to their indi vidual banking experience and knowledge. Registration will begin at 8:00 with the program running from 9:00 - 3:45. The keynote address will be presented at 9:00 a.m. by Dr. Arnold A. Dill, senior vice president and chief economist at Citizens & South ern National Bank, Atlanta, Ga. Beginning at 10:00, both basic and advanced level sessions will be offered concurrently throughout the rest of the day. Session topics, presented by various speakers, will be presented in one-hour blocks with breaks in between. For more infor mation contact the Illinois Bankers Association office in Chicago. Northwestern Banker, March, 1985 50 The appointment of two new offi cers at the Northbrook Trust and Savings Bank was announced re cently by Larry G. Gillie, president and CEO. Robert M. Buchta, senior vice president and senior lending officer, will head the bank’s commercial loan department. He joins the bank after four years with Northwest National Bank of Chicago, where he was a vice president and manager of its commercial loan department. Prior to that he was with Harris Bank for seven years. R.M. BUCHTA D.C. STROM David C. Strom, vice president, finance and operations, will also be the bank’s cashier. He has been with Lane Data Service, Inc. for eight years, most recently as manager of customer support and administra tion. Mr. Strom joined the Lane or ganization in 1974 with Lake View Bank, Chicago. * * * Robert M. Wrobel has been elected senior vice president at Amalgamated Trust & Savings Bank, Chicago. In addition, four other bank officers were promoted: Sally Doubet King, John Popow and Robin Seaborg were elected assis Banker, March, 1985 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tant vice presidents, and Joseph Gomez was named assistant to the bank chairman. Edward F. Brabec, president of The Chicago Federation of Labor, Industrial Union Council, was elected to the board of directors. Mr. Wrobel joined Amalgamated Bank in 1972. He is a graduate of Northwestern University, Evans ton. Ms. King joined the bank in 1983 and will serve in her new position in the trust division. Mr. Popow was with Dai-Ichi Kangyo Bank in Chicago, prior to joining Amalgamated in 1982. Ms. Seaborg previously was vice president in operations for a Chicago loop bank. Most recently she served as manager in personal banking for Amalgamated. Mr. Gomez is a graduate of South ern Illinois University. His responsi bilities will include marketing and business development. * * * had been in charge of the install ment loan department since 1963. * * * Citicorp (USA) announced recent^ ly that Kenneth J. Lewis has been named vice pres ident and chief operating officer for C it ic o r p ’s corporate bank ing operations in the Midwest. Mr. Lewis suc ceeds Alan J. Weiss, who now heads the cor porate banking KJ ' LEWIS operations of Citicorp’s Central Southern Division. Mr. Lewis will be® headquartered in Chicago. Mr. Lewis joined Citicorp in 1982 as division administrative officer for Citibank’s Foreign Exchange Ser vices. • * * * Cole-Taylor Financial Group, based in Northbrook, has announced Ralph L. Egeland, president of Aurora National Bank, has an that Robert I. nounced the repositioning of three Logan has been key bank personnel to strengthen named executive vice president the bank’s lending function. John R. Schmitz, assistant vice and named to president, will transfer to the install the board. Also ment loan department; Marlene D. appointed was Stiefbold, assistant vice president, Rene Y. Thomas will move to the trust department, as marketing co and Jeffrey A. Beallis, assistant ordinator, and cashier, will transfer to commercial Yevette Newton Y.N. JACKSON Jackson has lending. Mr. Schmitz joined Aurora Na joined Cole-Taylor as corporate de tional in 1969 as a teller. In his new velopment representative. C.J. Gau position, he will handle consumer thier, chairman, president and CEO of NICOR, Inc., has been elected to* and business installment loans. Ms. Stiefbold will now be a trust Cole- Taylor’s board. Mr. Logan has served as secre administrator for the bank. She had been manager for the Aurora Na tary and general counsel of Coletional New Indian Trail Bank since Taylor for the past year. Prior to that he served as senior vice presi it first opened its door in 1979. dent, executive trust officer and gen Mr. Beallis began at Aurora Na tional Bank 12 years ago as a teller/ eral counsel at Drovers Bank, a ColeTaylor bank. He formerly was chair personnel banker. Aurora National Bank has also man of Interstate United Corpora-, announced that consumer credit ser tion, Chicago, and served as presi vices are now available at Aurora dent and a director of the former National New Indian Trail Bank in Central National Bank, Chicago. Ms. Thomas previously was assis Aurora. Cornelius “ Nello” Avram, senior tant marketing coordinator, and^ vice president, has been named the prior to that was marketing repre manager of the New Indian Trail sentative for Drovers Bank. Ms. Jackson previously was a Bank. In his new position, Mr. Avram will handle all of the con commercial finance and business de velopment officer at the Continental^ sumer credit services. Mr. Avram brings over 30 years Bank. * * * of banking experience with him. He 51 CASH LETTER PROCESSING... We’ve improved our service and lowered our price. Our cash letter availability is at an all time high. We now estimate that up to 90% of your daily cash letter will be available to you the next morning. And this new level of service doesn’t cost you any more. In fact, it costs you less. We’ve made substantial price reductions for checks deposited, wire transfers, bond coupon envelopes, return items, food stamps, safekeeping and transportation. WÊMKÊmm And our comparison analysis will show you how much you can save. .* 3 -j ; Complete the questionnaire below and return it to us for a no-obligation comparison analysis. Or, give us a call at 309/655-5489 (TOLL F R E E 1-800-322-2212) Complete and mail to: Attn: James Fassino Commercial Banking Division Commercial National Bank of Peoria 301 S.W. Adams, Peoria, IL 61631 The following is an estimate of the items we process per month: Local checks deposited __________ Foreign checks deposited __________ Wire transfers ___________ Return items ___________ Statements ___________ Coupons ___________ Average Cash Letter |_____________ Signed. N am e, (please print) Bank Address. City Phone J _ . State. Zip. NB-3 mil$hontyouhow Q B Commercial National Bank of Peoria M em ber M id w e s t Financial G roup, Inc. Member FDIC COMMERCIAL BANKING DIVISION 301 S.W. Adams • Peoria, Illinois 61631 Phone: (309) 655-5489 WATS LINE 1-800-322-2212 Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INCREASED PROFITABILITY Good question. And at Bandease, we just happen to have six good answers: Equipment leases are generally more profitable to make than conven tional loans due to the tax benefits you can receive. r% BR O A D E R C USTO M ER SERVICE You get an edge on your competi tion by offering equipment leasing as a complement to your existing bank ing services. Lk 2 YO UR CUSTO M ERS SAVE J M ONEY banc_____ lease,no. p.o. box 3128 o m a h a , nebraska 68103 an affiliate of first national bank of o m a h a Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lease rates are normally lower than conventional loan rates, which allows your commercial and agricultural borrowers to conserve working capital. A NO FEES O R COSTS ± Through Banclease, you escape the legal, accounting, staffing, mar keting and operational expenses associated with creating your own leasing department. W E U N D E R ST A N D YO UR NEEDS We are not consultants or brokers. We’re bankers. And as one of the oldest and largest bank-affiliated leasing companies in the Midwest, we under stand equipment financing. 6 Y O U’RE IN CONTROL Banclease handles the paperwork - documentation, billing, accounting, etc. - but your customer deals only with you. Leasing works. And Banclease can make it work for your bank. Call Scott Morris toll-free, or write today: In Nebraska, 1-800-642-9907 In all other states, 1-800-228-4411 53 freshments and food. Home State Bank opened for bus iness February 1, 1915. Today the bank has assets that exceed $23 million and a branch in Louisville. Two Promoted in Hemingford tle and hog outlook, this year’s con ference will feature keynote speaker Dr. Neil Harl, Charles F. Curtiss The Nebraska Bankers Associa Distinguished Professor, and profes tion announced last month the elec sor of agriculture and economics at tion of Mel Iowa State University, Ames, Iowa. Adams of Ogal Dr. Harl will be presenting a total lala to be presipicture of the farm policy outlook. dent of the 459That evening will feature a reception member organi and the area bankers dinner - steakzation next year. fry. Mr. Adams, a Continental breakfast will be third-generation served at 8:30 both mornings and banker, is chair the conference will adjourn at noon m an of th e on the 21st. Adams Banks, a The Ag Outlook Conference is group of banks sponsored by the NBA agricultural located in Ogallala, Brule, Imperial, committee, with Tom Henning, Sutherland and Madrid. He will take president and CEO of Overland Na over the top elected post of the NBA tional Bank, Grand Island, serving in May during the association’s an as chairman. nual convention and will succeed A.C. Hove Jr., of Minden as presi- Economic Forums Offered dent. A series of six Economic Forum Long active in the Nebraska meetings has been announced by the Bankers Association, Mr. Adams Omaha branch of the Federal Bank has served on the N BA ’s governing of Kansas City. council since 1982. He has chaired The program for the Forums will the NBA government relations com consist of two presentations from mittee and has served on the com 5:00 to 6:15 p.m. and the dinner and mittee on installment credit. In ad dition, he is involved in the Amer final presentation from 6:45 to 8:30 ican Bankers Association’s activi- p.m. The schedule is as follows: April 9 —Holiday Inn (1-80), ties, and also taught for ten years in Grand Island. the Schools of Banking, Inc., which April 10—Holiday Inn, North provides banking instruction for Platte. bank employees in Nebraska and April 11—Scottsbluff Inn, ScottsKansas. A graduate of the University of bluff. April 16—Ramada Inn Airport, Nebraska, Mr. Adams is chairman Lincoln. of the following banks: Keith Coun April 17—Villa Inn, Norfolk. ty Bank & Trust Co., Ogallala; Bank April 18—Ramada Inn Central, of Brule; Security State Bank, MadOmaha. rid; First Security Bank, Suther land, and Chase County Bank & Trust Co., Imperial. Home State, Humboldt Ogallala Banker Chosen NBA President-Elect 0 0 0 • • • • ® ® 0 Ag Outlook Conference Set For March 20-21 The Nebraska Bankers Associa tion will be holding its Annual Ag Outlook Conference on March 20-21 • at the Kearney Holiday Inn. Along with the annual grain, cat https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank of Hemingford recently an nounced the promotion of Kenneth D. Sestak, formerly assistant vice president, to cashier, and Joyce E. Klemke to assistant cashier. Fremont Addition Told Kenneth J . Vampola has joined American National Bank of Fre mont as assistant vice president, ac cording to Gary L. Bernhardt, presi dent, Mr. Vampola formerly was as sistant vice president and market ing officer for First National Bank & Trust Co. of Fremont. In his new position, Mr. Vam pola’s duties will include installment lending, deposit functions, indivi dual retirement accounts and mar keting. He has a bachelors degree in journalism and advertising from the University of Nebraska in Lincoln. Immediately after graduation, Mr. Vampola joined Ayres & Associates Advertising Agency as an account executive. In 1979, he assumed the marketing function for First Na tional Bank of Fremont and was pro moted to assistant vice president in 1983. Bellevue President Named Bank of Bellevue Chairman John H. Becker has announced that John P. “Ja ck ” Ayres has been named bank president. Prior to his ap pointment, Mr. Ayres served as president of TriCounty Bank & Trust Co. in Bel levue. M r. A y r e s ’ J.P. AYRES banking career includes 11 years at First National Bank of Manhattan, Kan., where his responsibilities included lending, marketing, operations and training. Celebrates 70th Year A native of Lincoln, he holds a Home State Bank and Trust Com bachelors degree in marketing from pany, Humboldt, celebrated its 70th Kansas State University. He is a Anniversary February 4 with an 1980 graduate of the Graduate open house. Despite inclement School of Banking at the University weather that day, 225 attended the of Wisconsin, and is a former day-long affair which featured car president-elect of the Young Bank nations for the ladies and free re Officers of Kansas. Northwestern Banker, March, 1985 54 Omaha The executive committee of First National Bank of Omaha has an nounced the following promotions and appointments: Charles H. Fries, Jr., senior vice president; Kenneth R. Nimmo, vice president, divi sion head; H. Frederick Kuehl, vice president; Mary H. Brown, Jody D. Grewe and George A. Rushing, second vice presidents; Geraldine Huth, Daniel Vaugniaux, Jennifer Warne, John W. Irwin and Jack Layten, operations officers; Todd L. Engle and Gary H. Matters, leasing officers; Ali Gonlubol, investment officer; Tom Jensen and Gerald J. Tomka, correspondent bank officers; Robert Linn, instalment loan officer; Phil Marshall, credit officer, and Gloria Chadwell, assistant opera tions officer. A graduate of the University of Wisconsin, Mr. Fries joined the bank in June of 1975. He continues to be in charge of the corporate and financial institutions division. Mr. Nimmo, vice president, was promoted to the position of division G.A. RUSHING G. HUTH Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis head of the data automation divi sion. A native of Newton, Iowa, Mr. Nimmo received a master of science degree in computer science from Texas A & M University. Prior to joining the bank in 1982, he served in the U.S. Air Force, retiring as a Colonel. Mr. Kuehl was promoted to vice president and manager of the corres pondent banking department in the corporate and financial institutions division. Mr. Kuehl received his bachelor’s degree from the Univer sity of Nebraska at Lincoln. Mrs. Brown was promoted to sec ond vice president in the bankcard division. Having joined the bank in 1953 as credit manager in the credit card department, Mrs. Brown is now in charge of customer service and is the compliance officer for the bankcard division. D. VUAGNIAUX J. WARNE Mrs. Grewe has been promoted to second vice president in the corpor ate and financial institutions divi sion. A graduate of the University of Nebraska at Lincoln, Mrs. Grewe has been with the bank since 1976. Mr. Rushing has been promoted to second vice president in the retail banking division. He began his banking career as an installment loan trainee in 1977, and earned de grees in management and account ing from the University of Maryland and the University of Nebraska at Omaha, respectively. He also holds a CPA certificate. Mrs. Huth attended the Univer sity of South Dakota and has been in the banking business for the past 20 years. She currently is manager of the bankcard’s collection depart ment at Valley State Bank in Yank ton, South Dakota, an affiliate of First National Bank of Omaha. Mr. Vuagniaux, promoted in the trust pension and profit sharing di vision, joined the bank in 1972. A graduate of C E School of Com merce, Mr. Vuagniaux has attended the University of Nebraska at Omaha and Creighton University. Promoted in the operations divi sion, Ms. Warne joined the bank in 1973. Currently, Ms. Warne is the head of the cash management de partment in the operations division. Mr. Irwin was promoted in the data automation division. Prior to joining the bank in 1983, he served in the U.S. Air Force, retirng Lt. Colonel. Mr. Layten, promoted in the data automation division, is manager of J.W. IRWIN J. LAYTEN 55 Fred Kuehl Ralph Peterson Gerry Tomka Tom Jensen THE ANSW ER MEN CORRESPONDENT banking can be confusing, frustrating, time-consuming. Not so at First National Bank of Omaha. Just call to get the answers from one of our four experienced correspondent bankers. Four men with the very latest financial technology at their fingertips dispensing profession al, dependable, confidential service. So call us for the answers to your correspondent banking questions—on electronic data 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 get the answers from us, the answer men. U m n lr IfSl 1101101101 DORK of omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC Northwestern Banker, March, 1985 56 Nebraska News T.L. ENGLE A. GONLUBOL T. JENSEN G.J. TOMKA systems development. He is a grad uate of the University of Nebraska at Omaha. A graduate of the University of Iowa, Mr. Engle is currently en rolled in the MBA program at the University of Nebraska at Omaha. He joined the bank in 1981 as a management trainee. Mr. Matters holds a bachelor of science degree from Iowa State Uni versity. He currently heads the direct marketing program for farm implement dealers in Iowa, Southern Minnesota and Northern Missouri. He also handles commercial and in dustrial vendor leasing programs in the Omaha metro area. Mr. Gonlubol has been promoted in the trust division. A graduate of Creighton University’s MBA pro gram, he joined the bank in 1980. A native of Omaha, Mr. Jensen received his degree in business ad ministration from the University of Nebraska at Omaha. He is also a graduate of Iowa State University’s Agriculture Credit School. Mr. Tomka graduated from Creighton University with a degree in business administration. Prior to joining the bank in 1983, Mr. Tomka has had several years of experience as an agricultural loan officer. A graduate of Kearney State Col lege, Mr. Linn’s current responsibili ties include installment loan lend ing; operations, collections, and credit reviews. He joined the bank in March of 1983. Mr. Marshall, promoted in the corporate and financial institutions division, is the manager of the commercial credit department. He earned his master of business administration from the University of Nebraska at Lincoln. Ms. Chadwell was promoted in the retail banking division. She began her banking career in 1978 as a part-time teller at the Bakers Square office and currently is branch manager of the 132nd and West Center Office. Packers National Bank recently announced the promotion of James R. Riha to executive vice president and Terence J. Tvrdik to vice presi dent. Mr. Riha has been with Packers National since 1969. He has a BSB A from Creighton University and has graduated from the Colorado School of Banking, National Investment School, and Stonier Graduate School of Banking. Mr. Tvrdik joined Packers in 1970 as a teller. He became assistant cashier in 1972 and assistant vice president in 1976. Mr. Tvrdik earned a B SB A from Creighton Uni versity and has graduated from the Colorado School of Banking as well as B A I’s School for Bank Adminis tration. * * * J.R. RIHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T.J. TVRDIK Norwest Leasing, Inc. of Minne apolis has announced the promotion of Matt S. Moyer to manager of Nor west Leasing for Region V. Mr. Moyer earned his B S in busi ness administration from the Uni versity of Neb raska at Lincoln in 1982. In June, 1982 he joined Norwest Bank Omaha, N.A. as a regional credit trainee and was promoted to fi nancial institu tion group offi M.S. MOYER cer last March. R. LINN G. CHADWELL As Region V Norwest Leasing manager Mr. Moyer’s territory will include all of Nebraska and western Iowa. He will office at One Central Park Plaza, Suite 202, Omaha. * * * In a joint statement released la s # month by Marvin Schmid, repre senting the selling stockholders, and Charles Garney, representing the purchasers, it was announced that the sale of Southwest Ban Corporai tion had been completed. Southwest Ban Corporation is the bank holding company for South west Bank and Trust Company lo cated at 8800 West Center Road irP Omaha. At year end, Southwest Bank and Trust Company reported $100 million in assets and was the seventh largest bank in the greater Omaha area. “ The new owners of the bank are Charles Garney, chairman of Garney Construction Company in Kansas City, Mo., Mark Simpson, a banlr consultant in Kansas City, and Ger ald Karlin, previously executive vice president and senior credit officer with Centerre Bank of Kansas City. In addition to Mr. Schmid ani^ Mr. Francis, William A. Fraser, Jr., J.D. Clemmer, J. Michael Fuchs, H.A. Mayor, Jr., Larry Miller and Vernon Nebergall will continue as members of the board. £ In connection with the change or ownership, the board of directors named Charles Garney as the chair man; Marvin Schmid, former chair man of the board, was named chair^ man emeritus, and Perry Francis, former president of the bank, was named vice chairman. Mr. Francis will remain active in the bank. Gerald E. Karlin was named presi^ dent and chief executive officer. Mr. Karlin is a native of Columbus, and a graduate of University of Nebras ka at Omaha. He had been a senior vice president with another O m ah# bank for 15 years prior to joining Centerre of Kansas City in 1973. Nebraska News ■k «V, s ib g m D.K. LUTTON £ 0 • • • • • 9 _ jr h h b M.J. MC QUILLAN The following officers were pro moted recently at Norwest Bank Omaha, N.A.: Jack D. Hobbie, vice president/regional manager of resi dential real estate; Richard W. Pat terson, vice president/manager pri vate banking, and Daniel L. Finken, vice president. New second vice presidents in clude: Jill A. Pryor, Robert L. Gerlach, Anne P. Hall, Debra Kraft Lutton, Michael J. McQuillan and Scott A. Schmidt. Officers promoted were: Robert F. Durr, personal banking; William J. Hoelting, private banking, and Diane Robinson, teller services. Mr. Hobbie is a graduate of Wayne State College where he re ceived a bachelor of science degree in business administration in 1973. He served ten years for a savings and loan association and joined Norwest Bank Omaha in 1983. Mr. Patterson earned his BA de gree from Hastings College in 1974 and his JD from the University of Nebraska College of Law in 1978. He joined Norwest Capital Manage ment and Trust Company in 1981 and in March, 1984, was promoted to second vice president and manager of the private banking depart ment at Norwest Bank Omaha, N.A. Mr. Finken, retail services depart ment manager, graduated from the University of Northern Iowa in 1972. He worked for a finance com pany in Omaha and then as manager for the same company in Hastings before joining Norwest Bank Hastings in 1976. He most recently held the position of retail banking man ager/vice president there. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ' S.A. SCHMIDT t R.F. DURR Ms. Pryor started working at Norwest Bank in Des Moines Iowa, before joining Norwest Bank Omaha in 1977. She most recently was regional marketing coordinator and executive banking officer. She will office at the Regency location. Mr. Gerlach, promoted in busi ness banking, joined the bank in 1980. He previously was president of First Westroads Bank and presi dent of Development Services (A.J. Inc.) Currently in the client executive department, Ms. Hall joined the staff in 1983. She previously was with Norwest Banks in St. Paul and Hopkins. Ms. Lutton serves in the business banking department and joined the bank’s staff in 1974. Most recently she was an officer. Mr. McQuillan started his bank ing career in 1979 with Norwest Bank Omaha South. He most re cently was a business banking offi cer which he was named to in 1984. A graduate of the University of Nebraska at Lincoln in 1982, Mr. Schmidt joined the bank in 1983 and serves in the business banking de partment. Eight newly-elected board direc tors have also been announced. They are: Ben Butler, president, Hunt Transportation Co.; Edward C. Mil ler, Jr., chairman, Ed Miller & Sons, Inc.; Herman E. Meyers, Jr., presi dent, Continental General Insurance Company; James L. Smith, presi dent, Omaha Livestock Market, Inc.; Ann L. Spence, president and CEO, Spence Title Services, Inc.; 57 ^* W.J. HOELTING D. ROBINSON Robert Stubblefield, president and CEO, Cornhusker Motor Club; Charles T. Undlin, president and CEO, Norwest Bank Omaha, N.A., and Ernest Vrana, president, Charles Vrana & Sons Construction Company. Charles T. Undlin, new Norwest Bank president and CEO, recently moved to Omaha from South Dako ta. He assumed the presidency on February 1, 1985. The other directors were previous ly directors at Norwest Bank Omaha South, N.A. which merged with Norwest Bank Omaha, N.A. on January 1, 1985. * * * Norwest Bank Omaha West has announced the election of a new offi cer, Brian D. Lierman, as senior vice president/manager of private and business banking sectors, and the promotion of Patrick J. McPherson from vice president and cashier to senior vice president and cashier. Mr. Lierman is a graduate of Hastings College and began his ca reer at Norwest Bank Hastings. In 1981 he joined Norwest Corporation in Minneapolis and in 1982 moved to Norwest Bank Omaha as a commer- B.D. LIERMAN P.J. MC PHERSON Northwestern Banker, March, 1985 58 Nebraska News cial banking officer. In 1983 he was promoted to second vice president in the business banking division and a year later became a client executive. Mr. McPherson earned his BA from Creighton University in 1968. He began working at Center Bank in 1967 and has worked in nearly every department, most recently as vice president/retail sector manager. He is responsible for all the retail per sonal bankers, lenders and facilities, in addition to being cashier. DeLay First National Advances Two Executives Directors of The DeLay First Na tional Bank & Trust Company, Nor folk, at their annual meeting elected Bernard M. DeLay as chairman and continuing as chief executive officer. They elected Elmer E. Mohl to suc ceed Mr. DeLay as president and Mr. Mohl will continue as chief ad ministrative officer. Mr. DeLay joined the bank 50 years ago and was elected assistant Largest Banks in Nebraska EPOSITS and loan figures for the top banks in Nebraska with $50 D m illion deposits or more are shown in the accompanying chart as they were reported at year-end. Comparative figures for a year ago also 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. Omaha Natl. Bk.1 .................................... First Natl. Bank, L in c o ln ........................ First Natl., O m aha.................................. Norwest Bank Omaha, N.A.2.................. Natl. Bk. of Comm., Lincoln .................. Norwest Bk. Hastings, N.A..................... First Natl. B&T, C o lu m b u s .................... Norwest Bk. Omaha South, N.A.2 .......... DeLay First Natl. B&T, N o rfo lk .............. Norwest Bk. Grand Island, N.A.3............ Norwest Bk. Omaha W e s t...................... S cottsbluff Natl. B & T ............................ First Natl., H o ld re g e .............................. Douglas County B&T, O m aha................ Packers Natl., O m a h a ............................ First Westside Bank, O m a h a ................ First Natl. B&T, North P la tte .................. First Natl. B&T, F rem ont........................ City Natl. B&T, H a s tin g s........................ Southwest B&T, O m a h a ........................ Gering Natl. B&T, Gering........................ Guardian State B&T, A llia n ce................ First Natl., Y o r k ...................................... Union B&T, L in c o ln ................................ First Natl., M cC o o k................................ Platte Valley St. B&T, K earney.............. Fremont Natl. B&T, Fremont ................ Norwest Bank Norfolk, N.A..................... McCook Natl. B a n k ................................ First Natl., F a irb u ry................................ American Natl., O m aha.......................... Washington County Bank, B la ir............ Beatrice Natl. B&T, B eatrice.................. Gateway B&T, L in co ln ............................ Jones Natl. B&T, Seward ...................... Overland Natl., Grand Island ................ State Natl. B&T, W ayne.......................... York State B&T, Y o rk .............................. North Side Bank, Omaha........................ Bank of Millard, Omaha.......................... First Natl. B&T, B ea trice ........................ Minden Exchange B&T, M in d e n ............ First Natl., David City ............................ Geneva State Bank, G eneva.................. American Natl. Bk. of S id n e y ................ December 31, 1984 Deposits Loans $875,387 $671,862 598,655 405,283 526,763 381,190 520,545 406,545 340,902 212,319 169,185 123,006 94,694 164,361 132,599 164,246 71,142 132,978 127,502 90,098 126,768 84,675 106,042 67,070 104,125 76,770 79,411 101,562 60,457 99,353 62,067 96,743 49,871 92,893 92,403 49,176 90,489 65,670 45,293 85,753 84,500 67,966 59,796 84,420 61,507 84,280 51,417 83,09554,540 82,509 81,712 60,781 81,207 42,801 59,615 79,868 47,589 76,261 69,163 30,631 65,244 34,721 40,804 64,235 41,237 63,974 63,622 48,779 29,454 62,649 32,274 60,223 36,758 59,619 38,280 57,705 37,514 56,386 33,426 55,655 28,485 53,976 30,827 51,914 22,293 51,199 37,627 50,208 24,054 50,251 December 31, 1983 Deposits Loans $642,077 $584,112 577,732 365,981 490,477 306,925 452,575 324,546 299,774 212,580 105,444 160,625 151,990 80,759 133,428 163,175 124,805 66,623 116,764 79,629 121,085 62,653 98,828 60,895 97,777 68,028 90,404 62,598 94,184 59,299 91,338 51,125 89,676 57,705 90,213 47,945 60,994 91,980 39,222 80,915 72,336 56,773 71,975 50,088 56,098 81,386 71,265 54,303 76,016 50,551 82,084 67,670 78,894 48,298 78,151 41,188 66,253 44,395 63,607 31,098 67,259 32,685 64,197 46,146 45,612 62,975 65,387 49,055 56,567 28,375 62,623 35,959 35,082 54,833 53,076 33,108 58,140 33,626 31,741 52,571 49,307 26,176 48,407 27,666 47,672 19,000 31,947 47,444 49,894 22,661 1ln 1984 Omaha Natl, acquired Commercial Natl. B&T, Grand Island. 2On Jan. 1, 1985, Norwest Bk. Omaha and Norwest Bk. Omaha South were merged under the title Norwest Bank Omaha, N.A. fo rm e rly First Natl., Grand Island. Merged in 1984 with First Natl. B&T, Kearney. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E.E. MOHL cashier in 1938. Later, he served as cashier, then was elected president in 1962 to succeed his father J . J ~ DeLay, when the latter was namecr chairman of the board. J . J . DeLay founded the Norfolk bank in 1930. He died in 1970. Mr. Mohl had been executive v ic ^ president of the bank since 1967. The DeLay First National Bank is in the process of constructing a new building, which is expected to be completed in the late summer o ^ 1985. Eight Promoted At Norwest Bank, Hastings The board of directors of Norwest# Bank of Hastings has announced the promotions of eight employees. Robert Zaback, formerly senior vice president, has been named exec utive vice president. Dave Higbea,# formerly assistant vice president, was named vice president in agricul tural banking. R. ZABACH D. HIGBEA ^ Named assistant vice presidents were: Deb Helleberg, formerly hu man resources officer; Cheryl Karr, formerly operations officer; Jim Kimminau, formerly customer s e r# vice officer; Bob Schardt, formerly agricultural officer, and Judy Soukup, formerly consumer loan officer. Deb Stuehrenberg, formerly con sumer loan representative, w a # named consumer loan officer. Mr. Zaback joined Norwest in 1964 as assistant cashier and he has worked as cashier, vice president^ NEBRASKA NEWS . . . (Turn to page 77, please) 59 COMPUTER BANK Automated Customer Service Division First National Lincoln’s Automated Customer Service Division can meet your needs for management information services. Count on the First Team to provide accurate, timely reporting; innovative systems; and the strength, experience and expertise of Lincoln’s largest bank. For the most advanced technology in automated information services, think of us first. First National Lincoln. The F irs t Team. FIRST NATIONAL LINCOLN A FirsTier Bank Member, F.D.I.C. 13th & M Streets • P.O. Box 81008 Lincoln, Nebraska 68501 Phone 402-471-1023 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 City, retaining the Crystal Lake location as a branch office. This year will also mark the bank’s 15th year in Forest City, as well as the bank’s 40th year in business. Waverly Addition Announced W. Logan, pres., Keokuk V N. M iln e r, exec, v .p ., Des M oines Marla K. Budde has joined the staff of First National Bank of Waverly as trust officer. Ms. Budde is a graduate of the University of Northern Iowa with a BA in business management and is a 1984 graduate of The University of Iowa, College of Law and holds a succeeded his father as president in Doctor of Laws degree. 1969 and then was named chairman Two Named In Waterloo also at the time of his father’s death The National Bank of Waterloo in 1978. recently advanced Marcia Colwell to He is a 1962 graduate of the Grad uate School of Banking at the Uni trust officer and LeRoy Bell to assis versity of Wisconsin and has com tant vice president in the data ser pleted several management schools vices division. of AMA. Mr. Howard has been extremely active in the Iowa Bankers Associa tion, which served as treasurer in 1973-74, and two terms as chairman of the IBA legislative committee. Mr. Howard took part in the initial development of electronic funds transfer in Iowa as a member for two years of the Iowa-Nebraska M. COLWELL L. BELL Joint E F T Study team. When Iowa Transfer System was formally orga Ms. Colwell joined the bank in nized, he served as its first president 1968 and had been serving as assis from 1975-77, continuing on the IT S tant trust officer. Mr. Bell joined in board until 1982. 1974 as a systems programmer. He served also with the American National Bank of Waterloo also Bankers Association’s Fund for announced that it is sponsoring an Economic Education from 1981-83 essay contest for high school juniors and was chairman of the Fund in and seniors on banks’ role in commu 1983. nity development. Contest judges will select three Manufacturers Bank essays which describe the ways Celebrates Anniversaries banks contribute to the economic de Manufacturers Bank & Trust velopment of their communities in Company, established in Crystal the areas of business, cultural and Lake in 1945, will celebrate its 40th social life. First prize is $500; sec anniversary this year. ond, $250, and third, $100. Mor in In 1970, the bank moved its main formation is available from Lorenzo office to a new location in Forest Creighton at the bank. Russ Howard Announces Candidacy As President-Elect of the I BA 9T HE CANDIDACY of Russell S. I Howard for the office of president-elect of the Iowa Bankers Association for ^the 1985-86 as sociation year was announced last month. Mr. Howard is chairkinan and presi dent of the Ma haska State Bank in Oskaloosa, the third R.S. HOWARD, JR. ^generation of his family to hold that position. If elected for the president-elect posi tion at the IBA convention in Sep tember, Mr. Howard would succeed >to the IBA presidency at the Sep tember, 1986 convention, which will mark the IB A ’s 100th year of ser vice to Iowa and the banking indus try. He would then serve as presi d e n t in the first year of the associa tion’s second century. Mr. Howard was born March 5, 1931, into a distinguished Mahaska County family that has served the ^banking interests of Oskaloosa and surrounding area for 102 years. His grandfather, Harry S. Howard, founded Mahaska County State Bank in 1883, serving as its manag in g officer from opening day until his retirement in 1934 as president. He died in 1940 at the age of 86. Russell S. Howard, Sr., who joined the Mahaska County State Bank in >1920, became managing officer in 1934 when his father retired. He was elected chairman and president in July, 1945. He retired as president in 1969, continuing as chairman un• til his death in 1978 at the age of 86. Russell S. Howard, Jr., was grad uated from Dartmouth College in 1953. After completing graduate work at the University of Iowa, he *joined the family bank and was elected a vice president in 1963. He https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1985 Iowa Group Meetings Group 8 7 4 6 5 2 12 3 Date May 6 May 7 May 8 May 9 May 20 May 21 May 22 May 23 Location Davenport Grinnell Cedar Rapids Des Moines Council Bluffs Fort Dodge Okoboji Clear Lake Northwestern Banker, March, 1985 62 Iowa News GROUP 1 officers and Iowa Bankers Association officers are pictured at the Sioux City meeting. From left to right are: Bill Logan, pres. IBA and pres., State Central Bank, Keokuk; Neil Milner, exec. v.p. IBA; Bill Hess, pres., Iowa Savings Bank, Coon Rapids and new Group 1 chmn.; Jim Miller (foreground), chmn., Pioneer Valley Savings and new Group 1 secy.; J. Bruce Meriwether, pres.-elect IBA and pres., First National, Dubuque, and Bruce M. Kolbe, pres., United Central B&T, Sioux City, retiring Group 1 chmn. RIGHT— Pictured at the NABW breakfast during the Group 1 meeting are, from left: Al Maser, pres., 1st Natl., Le Mars, who was the speaker, and Delores Maser; Phyllis Davis, v.p. Northwest Iowa NABW and cash., Citizens Savings, Sac City, and Donna Hull, secy. Northwest Iowa NABW and a.c., C om m er# cial State, Pocahontas. Groups 1 and 11 Elect New Officers By BEN HALLER, JR . Publisher EW O FFIC ER S were elected by Groups 1 and 11 of the Iowa N Bankers Association at the meet ings they traditionally hold in Feb ruary. Officers were elected to twoyear terms to become effective at the conclusion of the 1985 IB A con vention in September. Group chair men automatically become members of the IBA board of directors when they take office. Elected were: Group 1 Chairman—Bill Hess, president, Iowa Savings Bank, Coon Rapids. Secretary—Jam es W. Miller, chmn., Pioneer Valley Savings Bank, Sergeant Bluff. Continuing as Group Chairman until the IBA convention is Bruce M. Kolbe, president, United Central Bank, Sioux City. Group 11 Chairman—William R. Bernau, president, Peoples Savings Bank, Crawfordsville. Secretary—Edward K. Jo h n stone, II, president, Keokuk Sav ings Bank & Trust Co. Continuing as Group Chairman until the IB A convention is John F. O’Neill, president, First National Bank, Burlington. Bankers and spouses attending the Group 1 meeting in Sioux City were guests again on Friday evening of the Sioux City Bankers Associa tion at a reception at Marina Inn, South Sioux City. As customary for the past several years, the Northwest Iowa NABW group hosted a Saturday morning breakfast that was attended by® more than 50 NABW members and guests. The speaker was Al Maser, president of First National Bank in Le Mars, who is immediate past president of the IBA. His remarks® appear on a separate page in the Iowa News section. Silas Keehn, president of the Fed eral Reserve Bank of Chicago,showed his extreme concern about® Iowa’s ag problems by attending the Group 1 and 11 meetings. IB A offi cials arranged a closed door, onehour session ahead of the sch ed u le^ group programs to give Iowa bank ers an opportunity to discuss with Mr. Keehn the current problems and concerns of farm customers and bankers alike. Mr. Keehn said he^ was grateful for the opportunity to obtain first-hand this grass roots NEW OFFICERS of Group 11 are: Chmn.—William R. Bernau (left), pres., Peoples Savings, Crawfordsville, and Secy.—Edward K. John stone, II, pres., Keokuk Savings Bank & Trust Co. RIGHT—Group 11 bankers had an opportunity for a closed door meeting with Silas^ Keehn (seated center), pres, of the Federal Reserve Bank of Chicago. He is pictured later with some of them. Seated: J. Bruce Meriwether^ pres.-elect IBA and pres., 1st Natl., Dubuque; Mr. Keehn, and William Logan, pres. IBA and pres., The State Central Bank, Keokuk. Stand ing: Russell S. Howard, Jr., pres., Mahaska State and candidate for IBA pres.-elect, and Neil Milner, exec. v.p. IBA. DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 63 • Whenacustomerdies, .hisbiggestlegacyshouldn't bea loanbalance. • .. ■ ■ It happens all the time. A customer dies and his family inherits everything. Including a big loan balance. A -/2" But you can prevent that i from happening to your customers. W ith IBIS creditor protection insurance. We have a full line of plans I to choose from. One that offers a complete excess program, • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and credit life licensing schools. as well as uncomplicated Want to know more? coverage for the complex agriFor complete IBIS creditor pro business world. tection insurance details, call It’s also insurance that, like our company, is designed 1-800-532-1423 toll-free.Today. by Iowa bankers to help Iowa bankers. So it comes with benefits for you, too. Like a fully com puterized claim system, sales and product seminars plus life IowaBankers Insuiance& Serviceable. Northwestern Banker, March, 1985 64 Iowa News LEFT—Rick Nichols, a.c., and Neil Kirby, pres., 1st State, Mapleton; Gene Hagen, pres., Security Natl., Sioux City; Scott Otis, v.p., 1si^ Natl., Akron; Owen Riddle, farm mgr., Security NatlL, Sioux City, and Dan Bogaard, v.p. & t.o., Northwestern State, Orange City. RIGHT— Max Larson, pres., 1st Natl., Sioux City; Randy Johnson, exec, v.p., 1st Natl., Le Mars; Gary Stevenson, v.p., 1st Natl., Sioux City; Jerry Woodin, v.p., Commercial State, Pocahontas, and Ray Harman, sr. v.p., 1st Natl., Le Mars. LEFT—Kent Gaudian, a.v.p., West Burlington Bank, and Bob Hartman, v.p., computer services & mktg., Davenport B&T. RIGHT—A high light of the Gp. 11 meeting for IBA Pres. Bill Logan (right) was his presentation to Tom Huston (left), supt. of bkg. of this 24” x 36” photo poster. Looking on is Gp. 11 Chmn. John O’Neill. The 6’ 8” IBA pres, had left his coat during a bank meeting several months ago in the room of Mr. Huston, who is 5’ 6” . When Mr. Huston donned the coat it fell to his knees and his arms disappeared! He donned his famous supt. of bkg. “ S.O.B.” cap and the Northwestern Banker took his picture. Mr. Logan made up the poster and added the gag line at the top, “ Who Needs a Shrink?” and presented it at the luncheon to Mr. Huston. ( thinking that would assist him in making his reports directly to the Federal Reserve Open Market Com mittee, of which he is a member. Three speakers addressed the gen eral sessions of both groups: IBA President William Logan, president, The State Central Bank, Keokuk; Neil Milner, executive vice president of IBA, and Thomas H. Huston, su perintendent, Iowa department of banking. Mr. Logan, in discussing the de pressed farm economy in the state, said the remarks made recently by Federal Budget Director David Stockman “makes it tough to talk to those people“ in Washington when discussing potential solutions. He sees Iowa and midwest agriculture going through a structural change. He stresses again his year-long theme of “Teaming Up” by review ing steps taken to meet and interact with the Iowa Independent Bankers. Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis He asked for support at the Septem ber IB A convention for the proposal to add another at-large representa tive on the IB A board that would provide furt her for I IB participation with IBA . Mr. Logan referred again to the pressing need for a reduction in federal deficits and a curb on spending. He suggested that the agency already in place that could be utilized further with some of the mid west problems is the SB A ., He called on IBA members to write Fed Chairman Paul Volcker and “tell him we support what he’s done and is now doing.” Mr. Milner gave special thanks to A1 Tubbs, president, First Central State Bank of DeWitt, and Neal Conover, chairman, First National Bank of Crestón and formerly at Hayesville, for their dedicated work with Congress, various federal agen cies and with state government. He also paid tribute to Tom Huston for having “one of the best staffed, best managed regulatory bodies in the United States.” He added, “With these bad ag times, we’d be in worse* shape if people the caliber of Tom and his staff weren’t overseeing things.” Mr. Milner made a special plea for every Iowa banker to w ritt^ President Reagan, one Senator and* one Congressman to reduce spend1 ing by $50 billion by 1986 and re duce the deficit by $100 billion by 1986, and if they do then we’ll sup-w port them at home with our consti tuents.” Mr. Milner reported at the Group 11 meeting that “outstand ing results have already been seen on this since the Group 1 meeting” week earlier. He related that many Iowa bankers expanded this sugges tion by contacting local business groups and service clubs to request that their members do the same. £ Mr. Milner said representatives at the ABA Leadership Conference Io w a N e w s 65 LEFT—Terry Lowenberg, pres., Iowa State Bank, Fairfield, and his son, Greg Lowenberg, Hills B&T, Coralville, with Larry Frowick, sr. v.p., Bankers Trust, Des Moines. RIGHT—C.E. Bud Cross, v.p., First Natl., Chicago; Tom Huston, Iowa supt. of bkg. and pres., Columbus Junc tion State; John O’Neill, chmn. of Gp. 11 until state convention in September and pres., First Natl., Burlington, and Pete DeRosier, v.p., Val ley Natl., Des Moines. LEFT—John Rigler, v.p., Norwest Bank Des Moines; Arvid Anderson, dir., Peoples Savings, Crawfordsville; Tom Quinlin, 2nd v.p., Norwest Bank Des Moines; Andy Westendorf, sr. v.p., Peoples Natl. B&T, Albia, and James Monhart, bkg. off., Northern Trust, Chicago. RIGHT— Jim McCarthy, sr. v.p., Hawkeye B&T, Burlington, with Charles Walsh, pres., Farmers & Merchants B&T, Burlington, under the well-known Gp. 11 sign designating Mr. W alsh’s onion-sandwich hospitality room. were told by House and Senate lead ers that the votes “ju st are not there” to enforce a July 1, 1983, grandfather date on non-bank banks and that they’ll have to settle for a July 1, 1985 date on any legislation to curb them. Mr. Milner reviewed several other matters of interest to banks. Mr. Huston said it used to be that the banking department would have 18 to 22 banks with more than nor mal problems but that number is now up to 140 state banks. “In 1975 Iowa had two banks on FD IC ’s problem list,” he said, “and in the late ’70s there were none. In 1980 it was again two banks; now it ’s 48.” He said there are 800 such banks on FD IC ’s nationwide list, so Iowa has 5% of that total. “ I t ’s alarming,” he stated, “but if you don’t get these problems out on the table, you don’t have a prayer of getting them re solved.” Mr. Huston said Bob Pirn, Iowa state director of FmHA wants the cooperation of all Approved Lenders https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and will work with those Iowa banks closely. FmHA will use the ISU land values, and banks can use the same tables. Mr. Huston’s department is asking the state legislature for authority to charter a bank in an unincorporated village in the event that any bank failure might be eased by being able to charter a new bank in such a location. Mr. Huston also urged banks to identify their own “classified” loans earlier. “When you do, you should start figuring a way to correct, im prove or restructure them,” he said. He said at Burlington that he had “good news. Last week the staff brought me a list of banks with capital/asset ratio below 7%. That list had 20 banks on it when I started this job in 1975. We had it down to four or five in nine months. We ju st wanted a higher capital/as set ratio with the thought that we m ight have trouble at some time— but not foreseeing the tough prob lems we have now. This latest report shows that despite all the problems we’ve had, only 14 banks in Iowa have a capital/asset ratio under 7%! This cushion is good. If we have to spend some of it for write-offs, we’ve got that cushion. Iowa is one of the highest capitalized states in the na tion.” He added that the ag depres sion “is not a one, two or three year problem. It may take 10 years to get land out of our banks.” Group l ’s guest luncheon speaker was John Fitzpatrick, PhD, Menninger Foundation Center for Applied Behavioral Sciences, Topeka, Kans. He talked about “ Stress—You, Your Family and Community.” The noon luncheon speaker for Group 11 was Dr. Taggart F. Frost, PhD, associ ate professor in the School of Busi ness at the University of Northern Iowa, Cedar Falls. His topic was “The Self-Defeating Consequences of Organizational Traps.” Group 1 had an attendance of 520 for the noon luncheon. Group 11 had 439 for the Sunday evening buffetdance and 150 for the Saturday lun cheon. □ Northwestern Banker, March, 1985 66 Io w a N e w s Indianola Advancements Told R. Dean Phillips, senior vice presi dent and financial officer, has been elected to the board of directors of Peoples Trust and Savings Bank, PT&SBancorp, and Peoples Com pany of Indianola. Mr. Phillips joined the staff of Peoples Bank in 1981 as controller and was elected vice president in 1983. In addition to his responsibilities in the bank, he is vice president and treasurer of PT&SBancorp. The board of directors of Peoples Bank, Indianola, at its January 21 meeting, elected several employees to new positions with the bank. T .J. Nicholls and Pam Merritt were elected senior vice presidents of the bank. Verlyn Noring and Bruce Sor ensen were elected vice presidents; Irolene Ashmore was elected assis tant vice president; Nancy Onstot was elected assistant vice president and commercial loan officer, and Marguerite Rucinski was elected loan officer. Mr. Nicholls, cashier of Peoples Bank, secretary of Peoples Bank and PT&SBancorp, and secretarytreasurer of Peoples Company of In dianola, has worked for the bank since 1949. He also serves as bank auditor of the board of directors. Ms. Merritt continues to serve as marketing director for the bank. Employed by Peoples since 1976, she worked with consumer loans and compliance before becoming market ing director in 1978. Mr. Noring, an agricultural loan officer, first joined the staff of Peoples Bank in 1980. Mr. Sorensen has been with the bank since March, 1984, when he was hired to work with agricultural and other business loans. He was formerly employed by the American State Bank of Sioux Center and the Federal Land Bank Association in Mason City. Ms. Onstot, who has been em ployed by Peoples since 1980, has worked in several areas within the bank, most recently in the loan de partment as real estate loan officer and assistant commercial loan offi cer. Ms. Ashmore has served as assis tant to the senior loan officer for the past five and a half years, having previously worked in the Peoples Motor Bank. Ms. Rucinski is new with Peoples Bank, having been hired to work pri marily with real estate loans. Ms. Rucinski was formerly employed by Suburban National Bank in Eden Prairie, Minn, in the loan depart ment. CEO and Two Others Named At Missouri Valley Bank Peoples State Bank in Missouri Valley recently announced the pro motion of Gary Woods to vice chair man and CEO. Mr. Woods has been with the bank since March, 1984, and has 22 years of banking experi ence, including 14 years with two Omaha banks. He most recently was president and CEO of Manilla State Bank. Dick Goos, who served as CEO of Peoples State Bank during the tran- sition of new bank ownership, re signed December 31. He intends to remain active as an independent real estate broker and financial consul tant. ^ Two new additions to the banks staff effective February 1 are Charles Schumacher, vice president and se nior loan officer, and Dale Ward, ad q ministrative assistant. Mr. Schumacher formerly was a loan officer with the First National Bank of Woodbine. Mr. Ward, who has been a director of the bank since 1983, is a 17-year veteran with t h ^ Iowa Highway Patrol. In 1980 he was appointed security aid to Gover nor Robert Ray, in 1980 he was placed in charge of security details for the Governor, and in 1982® became District Two Commander of the Iowa Highway Patrol in Os ceola, in charge of patrolmen in eight counties. Peoples State Bank also an® nounced the appointment of Terry Carley to serve as a director of the bank. He is a pharmacist with stores in Shelby Avoca and Oakland. • Le Mars V.P. Retires H .J. Ahlers recently retired from his position on the board and as vice president of Le Mars Savings Bank® Mr. Ahlers has served the bank for 59 years and is a life-long area farmer. He first joined the board of direc tors in 1926, succeeding his father® In 1953 he joined the bank as vice president, a position he has held since that time. Three Promoted at Home State Bank in Jefferson B. SORENSEN I. ASHMORE Northwestern Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P. MERRITT V. NORING N. ONSTOT M. RUCINSKI • Doug McDermott, president of Home State Bank in Jefferson, re cently announced three promotions ^ Sid Jones, a vice president with the bank since 1983, was promoted to executive vice president and will supervise the loaning function and be active in operations management® Kevin Brooks also joined the bank in 1983 as an agricultural loan officer. He has been promoted to as sistant vice president and trust offi cer, and will continue working with® ag loans, taking on responsibilities in farm management and farm trust activities. Nancy Gardner has been named executive secretary, is a new bank® officer, and will supervise the secre tarial staff. I HE WAY WE PUT IT TOGETHER 15 WHAT 5ET5 U5 APART 4015 Alexandra Drive • Box 2097 Waterloo, Iowa 50704 Phone 519-234-6641 KIRK GROSS CQ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68 Io w a N e w s treasury and other regulatory offi-^ cials. Briefings on current issues will be given by the IBA staff and by the FDIC and the insuring organization WO state-chartered Iowa banks government relations team at the were closed in recent weeks. The retained assets of the failed bank American Bankers Association. q 111-year old Steele State Bank was with a book value of $10.9 million. Rooms have been reserved at the President of Steele State Bank closed January 25 by Iowa Superin Vista International Hotel in Wash tendent of Banking Thomas H. Hus was Thomas Steele, the fourth gen ington. Space is limited, so make ton when it was determined that eration of his family to own and your plans now and contact the IBA capital had been depleted after the operate the bank founded in 1874. office in Des Moines. A more de-^ FDIC received a premium of bank experienced continuing loan losses, most of them related to agri $327,500 from Security Savings tailed agenda of briefings and visits culture. The Inwood State Bank, Bank of Larchwood for the failed In will be available at a later date. founded in 1945, was declared insol wood State Bank’s $6.9 million Registration Open For vent and closed by Mr. Huston on deposits in 1,600 accounts. Security » February 19 after it, too, was unable Savings, located about 10 miles Iowa School of Banking Plans have already been put in to replace capital depleted by bad north of Inwood, also purchased the failed bank’s installment and real es motion for the Iowa School of Bank loans. FDIC was appointed receiver of tate loans. FDIC advanced cash ing to be held June 23-28 at the Uni amounting to $3.2 million and re versity of Iowa Campus, Iowa City. both banks. Tuition for the school is $650,^ Of three bids submitted to pur tained assets of the failed bank with which includes room, meals, case chase and assume deposits of Steele a book value of about $3.7 million. Principal owners of the holding book and study materials. Registra State Bank, the winning bid was made by Tad Hammond and Her company that owned Inwood State tion and more information can be ob man Denklage, both Nebraskans. Bank were Charles C. Riter and tained by contacting the Iowa Bank Mr. Hammond also is chairman of Eugene Eisma, president and vice ers Association office, Des Moines. " State Savings Bank in Bedford, president-cashier respectively of In Iowa., and Mr. Denklage is from wood State. Principal owner of the George President Named Wisner, Nebr. They paid FDIC a one-bank holding company that James L. Cuttell has been named $206,000 premium and assumed de owned Security Savings Bank of president of the posits of $17,700,000 in 5,300 ac Larchwood is Harold Bonander. G eorge S ta te The First National Bank of Wood Bank. counts, plus installment and real estate loans, securities, cash and bine, la., was closed by federal au He succeeds due, and the building. The new bank thorities Feburary 7 (see separate E .R . M anuel, received cash of $9.3 million from story). who will remain active as chair mercial lending, and Dick Anderson, man of the board. New Executives Named At ag loans and services. M r. C u ttell First National, Creston Other additions to the staff are as has served as C.B. “Neal” Conover and Dwight follows: Russell Booth and Madison vice president Conover have signed an agreement Ausman, assistant vice presidents; since 1970. Mr. to purchase nearly all of the stock of Danny Purdum, auditor, and Steven Manuel has been with the bank since First National Bank, Creston, pend Crittenden, agricultural representa 1946. ing approval of the Federal Reserve tive. Board. An application to form a oneNeal Conover brings 15 years of Lamoni National Announces» bank holding company also has been bank experience to his present posi Interior Remodeling Program filed with the Fed. tion. Most recently he served as James Schipper, president of the CEO of the Hayesville Savings Lamoni National Bank in Lamoni, Bank. Dwight Conover brings ten has announced a major interior r e ^ years of experience in lending and modeling program. management. He most recently was The complete interior will be re with Iowa National Bank at Lytton. decorated with the existing marble Mr. Schantz formerly was presi teller counter rebuilt and relocated dent of the First National Bank in to provide space for customer ser^ Colfax. Mr. Anderson had been serv vice and loan activity. Four private ing as vice president at Sac City offices will be redone to provide a State Bank. more functional environment to con Two State-Chartered Banks Are Closed T N. CONOVER D. CONOVER Neal Conover has been elected chairman. Dwight Conover has been elected president to succeed H.C. Houghton. Dale Burich continues as vice president and cashier and Bar bara Lightner as vice president. Having joined the staff as vice presidents are: Dean Schantz, comDigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IBA Annual Washington Trip Set for April The Iowa Bankers Association 16th Annual Washington, D.C. trip will get underway April 13-17. This is an opportunity for you to meet with your federal legislators and top officials at the FDIC, OCC and the duct business. A comfortable custo mer waiting area, complete with ^ televised reporting unit listing the commodity markets of interest, will be included. The Kirk Gross Company of Waterloo is in charge of the projec^ and estimates the project will be completed in 60 to 90 days. Io w a N e w s 69 •N e w Officers Named at Council Bluffs Savings Bank Ed Spetman, CEO and chairman of Council Bluffs Savings Bank, re c e n tly announced the following new officers: Joseph L. Trumm, farm manager, has been with the bank since 1979. He has a B S degree from Iowa State •University. Thelma Herrington, director of human resources, joined the bank in April of last year. She formerly was with J.C . Penney Co., and has 15 % ears experience in the personnel field. Arnold Kromminga, assistant vice president, formerly was with First National of Omaha. • B o b b i M oreland, a s s is ta n t cashier, has been with Council Bluffs Savings Bank seven years. She previously was collection manager. • Mary Brockelsby, assistant cash ier, formerly was head teller and branch manager. She has been with the bank 16 years. ^Hawkeye B&T, Grundy Center Officer Changes Announced Following its annual meeting, Hawkeye Bank & Trust, Grundy Center, announced the following •changes in officer personnel: Dwight B. Stewart, executive vice president, was promoted to presi dent and chief executive officer. He succeeds L.C. “Bud” Pike, who has meen named chairman of the board. T .J. Heronimus was named vice chairman; Tom Batty, farm loan rep resentative, was elected vice presi d e n t, and Duane Dirks has been mired as a vice president. Prior to joining Hawkeye Bank & Trust in Grundy Center, Mr. Stew art was with Houghton State Bank, ^ te d Oak. Mr. Pike, former president of the Iowa Bankers Association, will re main active in the bank, but with a reduced work load. He and his wife ^ilvelyn expect to do some traveling in the near future. Mr. Heronimus is a local attorney and is an outside director. He will continue to serve as bank counsel. ^ Mr. Batty, elected vice president, will continue as agricu ltu ral representative in addition to assum ing more bank responsibilities. Mr. Dirks has been with the PCA §n Newton the past nine years. He will be involved in ag and commer cial lending in his new position. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN TWO YEARS, W E’VE DOUBLED THE NUMBER OF OUR CORRESPONDENT BANKING CUSTOMERS. Why? Because of our professional service and attention to your needs. Call Mark Christen or Peter De Rosier toll free...and find out how correspondent banking s h o u l d work. Mark Christen H. Peter De Rosier Vice President Vice President There’s Nothing Like Money in the Bank... The Valley Bank Valley National Bank i§i DES MOINES IO W A 5 0 3 0 4 M em berFDIC A B A N K S O F IOWA B A N K Call TOLL FREE (8 0 0 ) 622-7262 In Iowa. Northwestern Banker, March, 1985 70 Io w a N e w s Farley President Elected, Officers Promoted Joseph D. Daly has been elected president and chief executive officer of Farley State Bank. Mr. Daly, who has been with the bank for 15 y e a rs most recently as chief executive officer and exec utive vice presi dent, succeeds J . F . K leem an who recently re- J.F. KLEEMAN R.M. BERTSCH resigned as president and chairman. Mr. Kleeman has served the bank for the past 35 years in various posi tions and will remain on the board as an honorary director. Robert M. Bertsch, attorney at law, associated with the law firm of O’Connor and Thomas in Dubuque, was elected chairman. Raymond J. Scherrman was elected vice chair man and Nancy A. Dunkel, vice president and senior loan officer, was elected secretary. Jam es K. Burdick has been named executive vice president. Most recently Mr. Burdick was in insurance sales and prior to that was senior vice president of the Delhi Savings Bank in Delhi. Steven J . Ament, who has been with Farley State Bank one year, has been promoted to ag loan officer from officer trainee. dent and trust officer, will be in charge of consumer lending func tions. Vicki Stanley, assistant vice pres ident and assistant trust officer, wil^ serve as office manager of the Bagley and Jamaica offices. Connie Culbertson, now assistant cashier, will head the bookkeeping department. a As loan officer, Jerry Hagan will be responsible for all types of loans at Perry State Bank’s Bagley and Jamaica offices. Four Advanced in Dubuque * Bill McGeehan, president of American Trust and Savings Bank, Dubuque, recently announced the Perry Personnel Receive appointment of Bill Schrup and Je % Titles, Responsibilities frey P. Mozena to vice president, A number of bank personnel re commercial loan officer; Lynn A. cently received new titles and re Sanders to second vice president, sponsibilities at Perry State Bank. and Arlys C. Runde to personal # James R. Haas, senior vice presi banking officer. dent and senior trust officer, will be devoting all of his time to trust ser vices. Bill Campidilli has been promoted to vice president and trust officer and will assume overall supervision of ag loans. Darrell Fink, assistant vice presi Committed to making your bank stand apart from the B. SCHRUP J.P. MOZEMA L.A. SANDERS A.C. RUNDE Mr. Schrup spent four years with the liquidation division of the F D I * before joining American Trust in 1982. Mr. Mozena is a 1975 graduate of Loras College in Dubuque and ha^ been with American Trust since 1975. Mr. Sanders joined the bank in 1975 and is a 1974 graduate of Wheaton College. Mrs. Runde h ^ been with the bank since 1966 and was named manager of the down town drive-up banking service cen ter in 1973, where she will continue to offer an expanded line of coi^p sumer and commercial banking ser vices. DigitizedNorthwestern for FRASER Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lowa News * Advanced in Waterloo Several advancements were re cently announced at Peoples Bank and Trust Company, Waterloo, and ♦ Peoples Bankshares, Ltd., also based in Waterloo. Elected to vice president posi tions at the bank were: Josef M. Vich and Alan C. Schmeidel, opera• tions, and Thomas W. Quinlan, loans. Beverly J . Voss was elected assistant cashier in the operations division. 1978. Mr. Marlette previously was a cost accountant for a Sioux City bank. Palmer State Bank Purchased Effective January 8, Richard 0 . W ikert, Frem ont, Neb., W.A. Krause, Hampton, and Steven P. Drennan, Manson, have purchased controlling interest in the Palmer State Bank, Palmer, from Wesley J . Pulley. Mr. Pulley will be retiring from active management of the bank. In addition to being elected as directors, Mr. Wikert was elected chairman, Mr. Krause was elected president and Mr. Drennan was elected executive vice president. Holder and Associates, Ames, provided acquisition assistance in connection with the sale of the bank. SUPPORT FmHA . . . (Continued from page 27) FmHA to explain the availability of FmHA programs to farm borrowers in Nebraska communities where banks have been closed. FmHA Program Summary T.W. QUINLAN B.J. VOSS Elected to the bank’s board were Wesley Weissman, president of Weissman Industries in Waterloo, *and Jam es W. Lewis, publisher and general manager of the Waterloo/ Cedar Falls Courier. Mr. Vich, CPA, joined the bank in December, 1983. He has had 12 9years of experience in management. Mr. Schmeidel joined the bank in 1979 as an assistant cashier and operations officer. He has a degree .in business administration and eco nom ics from the University of Northern Iowa. Mr. Quinlan was an examiner for the Iowa Department of Banking ^before joining Peoples Bank in 1982. Ms. Voss started with the bank in 1955 and had been serving as super visor of the bookkeeping area. A t B an k sh ares, L td ., R .L . ^Mahoney and Bruce S. Anderson have been elected vice presidents and Steven G. Marlette was pro moted to comptroller. Mr. Mahoney joined Peoples >Bank as an instalment loan officer in 1972. Mr. Anderson joined in 1975 as a teller and was made an officer in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fm H A has farm loans available for three separate program areas in F Y 85: operating loans (OL) to pay for items needed for farming operations; farm ownership (FO) to buy, improve, and re finance farms; and disaster emergency (EM) where a designation has been made. Guaranteed loans, whether regu lar or classified substandard, are avail able only for farm ownership (FO) or operating loans (OL). For several years the Fm H A has of fered guaranteed loan programs as an al ternative to direct loans. Although the Fm H A guarantees up to 90% of the loan made and serviced by the lender under guaranteed loan programs these pro grams are not being as fully utilized this year. The regulations for making guar anteed loans have been amended by the Fm H A to add a debt adjustment pro gram (DAP) for guaranteed operating loans (OL) and farm ownership loans (FO). DAP provides lenders with a tool to enable them to continue to provide cred it to operators of not larger than family farms who do not have adequate securi ty and/or ability to repay their loans. DAP guarantees are for loans which are under-secured or classified as substan dard or worse. The guaranteed program can provide assistance to both lenders and their farm borrowers in a time of financial dif ficulty. Guaranteed loan applications take less Fm H A time since the applica- 71 tions are completed by the local lending institution and then submitted to FmHA. The Fm H A believes it can pro cess applications for the Guaranteed Loan Program within two weeks after receiving a complete application from the lending institution. It is essential that this application be based on a realis tic cash flow and appraisal estimate. Private lenders now hold a substan tial number of chattel and real estate loans for operators of family size farms which are under secured or classified as substandard or worse. The terms, condi tions and amount of these loans will often have to be adjusted in order to pro vide for a positive cash flow projection. Under the Debt Adjustment Program (DAP) the lender must permanently write off a minimum of 10 percent of the total principal and interest outstanding on each loan or must provide for a reduc tion in the interest rate. The present value of this reduction over the term of the loan must be equal to the value of an upfront write down of existing indebted ness of at least 10%. In addition, lenders may need to reduce the interst rate or write off sufficient additional principal and interest to provide a positive cash flow position to cover the borrower’s total necessary debt repayment. For this purpose a positive cash flow is one which shows that anticipated cash inflows pay all operating and family living expenses, including debt service and tax liability. Guarantees will be issued on new notes reflecting the adjusted balance or new interest rate. The entire loan amount must be secured. The Fm H A may guarantee up to 90% of the remaining adjusted indebtedness whenever the lender writes off the amount necessary to provide a positive cash flow. Whenever an interest rate re duction is used in lieu of a write off, the percent of guarantee will be adjusted at the time of liquidation to assure that the dollar amount of the Government’s loss will not be more than the amount it would have been had a principal write off and a regular guarantee been used. A guarantee will not be issued unless the farming operation shows a projected positive cash flow and the borrower is determined to be eligible for a guaran teed OL or FO loan. Lenders who wish to participate in this debt adjustment pro gram are encouraged to apply for Ap proved Lender Program (ALP) status; however, guarantees are not limited to lenders with A L P status. In completing the application for a guaranteed loan, lenders should use the market value of assets that indicate todays realistic machinery values and current real estate values based on the recent county averages published by Iowa State University. When this infor mation is provided, Fm H A will respond responsibly. Fm H A ’s policy is to go the extra mile with borrowers who have a good, reasonable chance to succeed. Northwestern Banker, March, 1985 72 banking field in the Des Moines arefP for over 42 years. Connie Wimer has served as presi dent and owner of Iowa Title Com pany, Des Moines and Indianola, for the past eight years. She also put^ lishes the Business Record and Des Moines Skywalker newspapers. * * * Des Moines John Chrystal, president of Bank ers Trust Company, Des Moines, has announced the appointment of Dennis R. Wood as executive vice president. Mr. Wood has been president of the $120 mil lion Packers Na tio n a l B a n k , Omaha, Nebras D.R. WOOD ka, for the past seven years. Prior to joining the Omaha bank, Mr. Wood served for three years as president and director of Hawkeye Bank and Trust, Eldora. Before that he was second vice president of Omaha National Bank. A native of Traer, Mr. Wood re ceived a B S degree in animal science and an MS in economics from Iowa State University. He also attended the Stonier Graduate School of Banking. Mr. Wood has also served as pres ident of the Omaha Bankers Associ ation and director of the Nebraska Bankers Association. * * * Hawkeye Bank & Trust of Des Moines recently announced the pro motion of four staff members. Jeffrey Ehrmann has been elected assistant vice president. He joined Hawkeye Bank & Trust in 1982 as manager of the bank’s River Hills Office and was promoted to commer cial loan officer in 1984. Barbara Perry has been named student loan officer. Ms. Perry, who has been with the bank since 1981, also serves as the coordinator of DigitizedNorthwestern for FRASER Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. Locke Macomber, chairman d? Valley National Bank, has announced that H. Peter D eR osier has been elected vice president in the co rresp o n d en t b an kin g d iv i sion. Mr. DeRosier had been vice Hawkeye Bank & Trust of Des p resid ent and Moines’ Very Important Citizen head of corres pondent banking P' DE R0S,ER Club. F. Jeffrey Hauenstein has been with National Boulevard Bank i ^ promoted to consumer lending offi Chicago, 111. cer. He is assistant branch manager of the bank’s Clive office and most Promoted in Oskaloosa recently was employed by Thorp Larry Lewis, second vice presi Credit Inc. as branch manager of dent at Mahaska State Bank, OskJ^ their Fort Dodge facility. loosa, has been promoted to assis Marilyn Cameron has been named tant vice president. Jim Miller has training officer and new accounts been promoted to assistant vice manager. She began her banking ca president and commercial loan offi reer in 1972 as a loan clerk. cer. ® * * * Mr. Lewis was with Grundy Na West Des Moines State Bank re tional Bank for 10 years prior to cently elected Donald D. Halsey vice joining Mahaska State Bank in president and Glen G. Reynolds, 1981. cashier. Joyce A. Chapman, former Mr. Miller, who will be respom ly vice president and cashier, was sible for all aspects of commercial appointed vice president of advertis- and real estate planning, is a gradu ing/marketing. Connie Wimer has ate of the University of Iowa College been elected to the board. of Business and College of Law. _ Mr. Halsey formerly was with Also announced was the p ro m * Bankers Trust Company in Des tion of Joan McBurney to assistant Moines for 17 years as a senior vice cashier and Candy Simons to per president in commercial loans. He sonal banker. also was associated with Plaza State Bank and Associates Investment Jefferson VP Appointed To * for seven years in management posi Iowa Young Bankers Board tions. Mary Geisler, vice president and Mr. Reynolds formerly was asso ciated with East Des Moines Na cashier at Home State Bank in JeL tional Bank, and has worked in the ferson, has been appointed to a t/v^ year term on the Iowa Young Bank ers’ board of directors. The board’s goal is to promote consumer educa tion and increase awareness abo\^ the banking industry throughout the state of Iowa. Ms. Geisler is a graduate of the University of Iowa. Before joining Home State Bank in 1980, sta worked for two years as a certifie* M k i V M k ' public accountant. D.D. HALSEY G.G. REYNOLDS HowCloseIs Crisis? I n a small or closely held bank, the loss of a key individual to death, disability or even a better opportunity elsewhere can create a crisis. At UCB, we have a program available to help your bank avoid these crisis while planning for a more secure future. This program provides a smooth transition for continuation of the bank in the event of the loss of a majority stockholder, especially in the early stages of a bank stock loan. This plan can also assist your bank in retaining key executives. UCB’s Correspondent Division has a vested interest in your bank’s stability. Call us today for more details about this protective program. 1-800-362-1615 ext. 7019 UNITED CENTRAL BANK OF DES MOINES. N A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC. MEMBER FDIC Northwestern Banker, March, 1985 74 Io w a N e w s Appointed in Pocahontas Rod Amlie, president of Commer cial State Bank, Pocahontas, has an nounced the ap pointment of Ar lene Swendsen to cashier. Ms. Swendsen has been with th e bank 15 years and has held the position of adm inistra tive officer most of that time. She Æ SWEN°SEN is also chairman of the education and training committee for the Norwest Iowa Group of NABW. Eximbank, SBA Guarantees Assist Iowa Firm The Export-Import Bank of the United States and the Small Busi ness Administration will jointly guarantee a $403,000 working capi tal loan to Hettinga Equipment, Inc., of Des Moines, Iowa. This is the first working capital loan jointly guaranteed under an agreement recently signed by Exim bank and SBA. The two agencies agreed to combine their guarantees for working capital loans of $200,000 to $1 million extended by private lenders to small exporters. Hettinga Equipment, which em ploys 39 people, will use the loan to purchase components and pay labor costs to build a mold-making machine and related equipment for sale to Jiangsu Provincial Import Corporation of Nanjing, China. The Machine, a Hettinga Model 80-6 TCM with work stations and pro grammable controller, produces molds that are used to make a broad spectrum of injection molding plas tic components. Bankers Trust Company of Des Moines will extend the working capi tal loan and will retain 10% of the repayment risk. Eximbank and SBA will each guarantee half of the re maining financing. The co-guarantee agreement effectively doubles the fi nancial support that was previously available from the Small Business Administration for production, in ventory, marketing and other criti cal working capital export-related needs. It enables Eximbank to make its working capital authority avail able to small businesses through the existing network of 117 SBA field offices. The Iowa SBA office in Des DigitizedNorthwestern for FRASER Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Moines handled details for this transaction. Advanced in Emmetsburg At Iowa Trust and Savings Bank in Emmetsburg, Dennis Peterson was promoted to assistant vice president and Kris Ausborn has joined as assistant vice president. Mr. Peterson, formerly assistant cashier, joined the bank in 1981. He previously was employed as an ex aminer by the Iowa Department of Banking. Mr. Ausborn was pre viously employed for five years as an examiner for the Iowa Depart ment of Banking. His responsibili ties will include commercial and ag loan administration. Six Appointed In Council Bluffs Tony Payne, president of the First National Bank of Council Bluffs, recently announced the ajP pointment of a new ag representa tive and the promotions of five em ployees. Tom Robel, new ag representative has a degree in agricultural busine® and animal science from Iowa State University. Prior to joining the FNB staff, Mr. Robel was with the Fed eral Land Bank. Two Promoted at Peoples Bank, Cedar Rapids Two promotions were recently an nounced at Peoples Bank and Trust Company, Cedar Rapids. Donna J . Sorensen was promoted from assistant trust officer to trust officer. She serves as an administra tor of employee benefit plans in the bank’s trust department. David E. Wilson was promoted from auditor to assistant vice presi dent and auditor. He was also elected controller for PB Bancorp of Cedar Rapids, Inc. Dubuque Chairman Elected Jack Roach, president of Key City Bank and Trust Company, Dubu que, has been elected chairman. He began his career with Key City Bank in 1968 and was appointed president in 1977. Tipton Director Elected Darrel Penningroth has been elected to the board of Tipton State Bank, replacing Harold Schnack, who has retired after 32 years of ser vice. Mr. Penningroth is associated with his brother in the operations of Penningroth Farms, Inc. Named at Lansing Bank Darrell Peters recently was named assistant cashier at the an nual meeting of Kerndt Brothers Savings Bank, Lansing. He will also manage the Harpers Ferry office of Kerndt Brothers Savings Bank. T. ROBEL P. OTTO Phyllis Otto was promoted to vice president. She received her degree in management from Mundelein Cq^ lege and is currently marketing di rector for the bank. Janet Bohnet was promoted to as sistant vice president. She is cur rently serving as administrative a £ sistant to the president and is loss prevention manager. Chris Wendlandt was promoted to assistant vice president. She is currently manager of consum e banking. Ann McClelland was promoted to personal banking officer. She has been with the bank for nine years and in her current position as pe# sonal banker for two years. Pauline Tompkins was promoted to operations officer. She has been with the bank for five years and is currently data processing manage:# Swisher President Elected At the annual meeting of the Swisher Trust and Savings Bank, K Eugene Robison was elected presp dent. He succeeds G. Milton Chadima, who was elected chairman. Daryl J . Hynek was elected execu tive vice president and Philip ^ Reed was elected cashier. Two vacancies were filled on the board with the election of George W. Chadima and Daryl J . Hynek. Elmer J . Ulch was elected honorary dire^ tor. He has been associated with the bank for 50 years. Io w a N e w s •w o Ames Banks Merge Larry Wenzl, chairman and presi dent of Union Story Trust & Sav ings Bank and — -... rmer chairman f t U n iv e rs ity Bank & Trust, both in Ames, has announced ^ ia t the boards of directors of U nion S to r y Trust & Savings Bank and Unie r s ity B a n k L. WENZL ave agreed to a merger of the two banks. Mr. Wenzl reported that the legal proceedings are for University Bank to acquire the assets and asime the liabilities of Union Story rust & Savings Bank, however, University Bank & Trust will move it ’s charter to the existing location of Union Story Trust & Savings ^ a n k at 405 Main. According to Mr. Wenzl, the ac quisition is really a merger with a new name whcih has not yet been an nounced. The merger is subject to # o th the State of Iowa Department of Banking and the FDIC for which applications have been filed, with approvals expected in May, 1985. Greater efficiencies, better custo dier services and increased services are cited as reasons for the merger, plus a need for University Bank and Trust to have larger facilities due to it’s recent growth. • The Union Story Trust & Savings Bank branch office at 3615 Lincoln way would close, however, the exist ing location of University Bank & Trust at 2546 Lincolnway would be branch office with complete ser vices and be staffed by senior man agement. No reduction in staff is ex pected and customers will not be re quired to make any changes. f f 75 served ten years as a vice president with Norwest Bank Mason City. Manson Promotions Told M.P. THUL G. HERMANN Barton was with First National Bank of Peoria, 111., where he began his career in 1974. Mrs. Thul, a CPA, started her career in 1981 with a CPA firm in Bloomington, Minn. In 1983 she joined Norwest Business Credit, Inc., Minneapolis, as an auditor and analyst. Mr. Pedelty is a North Iowa farm er and ag consultant. Mr. Chandler is a district manager of Interstate Power, Mason City. Also announced, Gary Hermann has accepted the position of agricul tural business manager for Norwest Corporation, Region III. He will be officed at Norwest Bank Mason Ci ty. Mr. Hermann previously was a vice p resid en t w ith N orw est Business Credit in Des Moines and Following the annual meeting of the Manson State Bank, the follow ing promotions were announced: James A. Boelman was elected vice president and cashier; Janet Pohl was named executive secretary, and Danette Nimke was named head bookkeeper. In addition, W. John Carstens was elected to the board. Mr. Carstens has been with the Manson State Bank for the last 30 years and will continue to serve as vice president. Coming Director Named, Officer Promoted John F. Outhier, vice president of the Okey Vernon First National Bank, Corning, and a third genera tion Adams County banker, was re cently elected to the board of direc tors. Mr. Outhier has been in bank ing for 25 years and has been with the Okey Vernon Bank since 1977. Scott L. Nolan was promoted to assistant vice president in ag loans. Mr. Nolan joined the bank in 1983 after graduating from Iowa State University. A ID S E C U R ITIE S C O R P O R A T IO N IS P L E A S E D TO A N N O U N C E T H A T ROBERT J. KIRKENDALL H A S J O IN E D TH E M A S IN S T IT U T IO N A L A C C O U N T E X E C U TIV E Elected in Mason City Norwest Bank Mason City, N.A. recently elected Grant M. Barton ^ ic e president and Maureen P. Thul assistant vice president. Elected to the #o ard w ere Holmes Pedelty and Steve Chan dler. Prior to join in g N orw est G.M. BARTON Mason City, Mr. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S e c u r itie s AID Securities Corporation 380 Capital Square 400 Locust Street Des Moines, Iowa 50309 Northwestern Banker, March, 1985 76 Io w a N e w s Four Advanced At Clear Lake Bank & Trust Larry Svoboda, a vice president and officer at Clear Lake Bank & Trust since 1969, was recently elected executive vice president of the bank. Also elected were Vicki Schmidt as assistant cashier/data processing officer, and Kathryn Kadolph and Debbie Mclntire as assis tant cashiers. K. KADOLPH D. MC INTIRE Mr. Svoboda is a graduate of the Graduate School of Banking, Uni versity of Wisconsin; the National Commercial Lending School, Uni versity of Oklahoma, and several courses through A IB. He also serves as a member of the education com mittee for the Iowa Bankers Asso ciation. Ms. Schmidt previously gained experience with First Bank, Spring Valley, Minn., and United Central Bank in Mason City. Ms. Kadolph, also executive sec retary to the president, previously was with Thorp Credit in Mason City. Ms. Mclntire currently oversees bank tellers and performs other operational duties. 1st. N.B. Woodbine Closes; New State Bank Opens The First National Bank of Wood bine, founded in 1884, was declared insolvent February 6 by the Comp troller of the Currency and turned over to the FDIC as receiver. A new, state-chartered bank, Iowa Savings Bank, was opened the following day in the First National’s Digitized Northwestern for FRASER Banker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis building in Woodbine, providing customers continued service with out interruption. Iowa Savings Bank assumed all deposits of the failed bank and at the end of the first day of business they totaled $25,144,173, and total assets were $27,894,633. The new owners paid a premium of $367,700 to the FDIC and also assumed $647,000 of in stallment loans and $440,000 in real estate loans. The new bank has the option of purchasing other commer cial and ag loans from the FDIC in the future. All of those loans were re tained by the FDIC and are current ly under evaluation. The FDIC in jected $16 million into the new Iowa Savings Bank. The new owners are four promi nent Iowa and Nebraska business men. Richard Wikert is president of Taylor & Martin Auctioneering Co. of Fremont, Nebr., the nation’s larg est firm handling auctions of truck ing equipment. R. Wilson Pur singer is president of Wilson Trailer Corp. in Sioux City, which manufactures over-the-road trailers for the truck ing industry. A.C. Benton of Hamp ton is a former John Deere dealer who owns extensive farm operations in Iowa. Wm. A. Krause, also of Hampton, is president of Krause Gentle Oil Corp., which owns and operates 61 Kum-N-Go convenience stores and service stations. Mr. Krause and Mr. Wilkert also own Palmer State Bank, which they purchased recently. Mr. Benton and Mr. Krause own Iowa Bank & Trust of Bloomfield. Named president of the new bank is William Tufford. He became presi dent of Renwick Savings Bank in June, 1983. When Mr. Krause and Mr. Benton sold that bank in Nov ember, 1984 to Hawkeye Bank & Trust Co. of Humboldt, it was merged with the Humboldt office and Mr. Tufford continued as vice president and manger of the Ren wick office. A 1966 graduate of Wartburg College in Waverly, his first job was with First National Bank of Cedar Falls. Four years later he joined First National Bank in Hampton and continued with that bank until resigning as vice presi dent to join the Renwick Savings Bank. He is a graduate of the Iowa Bankers Association Installment Lending School, the IB A School of Banking at Iowa City and the IBA Ag Credit School at Ames. Kenner S. Swedburg, who joined First National of Woodbine in 197(1; served as the bank’s president from 1972 until its closing. His father, the late Herb Swedburg, purchased the bank in 1959, serving as p re sid e ^ from that year until 1972, and as chairman until his death in 1980. Leo P. Kenkel was the long-time vice president and cashier of the bank. Mr. Tufford will handle the dutiq^ of cashier as well as president. Other officers of the old First National Bank were retained. They include Alan B. Eich, vice president; Betty June Waite, assistant cashier, K ei^ neth Waite, vice president, and Michael Earley wine, consumer loan and installment loan officer, who has been with the bank one and one-half years. • Appointed in Cedar Rapids Richard J . Benhart has been ap pointed vice president and cashier at C ity N ational ® Bank of Cedar Rapids. Mr. Ben hart has held several positions with the bank since joining 11 years ago. Most re c e n tly he served as cash- D.E. POWICKI G. MAIDEN nounced at the bank was the prom ^ tion of Daniel E. Powicki to assiP tant vice president and branch manager of the City National Lindale Mall branch, and Gary Maiden to assistant vice president in oper^ tions. Mr. Powicki has been manager of the Lindale branch since 1980 and assistant cashier since 1982. Mr. Maiden, formerly assistant cashie^ joined City National in 1978. Office Promotion Told Doug Struve has been promoted to loan officer of La Porte City Stalj^ Bank, according to T.P. McDer mott, president. Io w a N e w s Advanced in Burlington First National Bank, Burlington, recently announced the promotion of Roger Callaway to loan officer ^ n d the appointment of Chris Batley as marketing officer. In addition, Dr. Roderick Kellogg and Gene A. Krenz were elected directors. Mr. Krenz was also pro m oted to executive vice president at the bank. Promoted in Glenwood Betty Bales has been promoted to Cashier of Mills County State Bank, Glenwood, according to Terry Gei ger, president. She has been em ployed by the bank in various capa cities since 1971. N EBRA SKA NEWS . . . (Continued from page 58) ^nortgage loans and senior vice president of administration and planning. Mr. Higbea joined the bank’s agricultural department in 1980 and ^vas promoted to assistant vice pres ident in 1982. He received his mas ters degree in animal science from Ohio State University. Ms. Helleberg joined Norwest’s personnel department in 1979 and was named an officer in 1980. Ms. Karr began in the bookkeep ing department in 1971, after work ing in various operations areas. She b ecam e bookkeeping supervisor in 1978 and was named operations offi cer in 1981. Mr. Kimminau joined the book keeping department in 1959 and #vorked in various operations areas. He was named assistant cashier in 1965 and auditor in 1971. Mr. Schardt began as a consumer loan representative in 1981. He be c a m e a mortgage loan officer in 1984 before joining the agricultural de partment. Ms. Soukup has been with the bank nine years, starting in the new •hccounts area in 1976. She worked as a commercial loan secretary and joined the consumer loan depart ment in 1978. She was named an of ficer in 1980. & Ms. Stuehrenberg joined Norwest’ bookkeeping department in 1977. Joins FirsTier Services Gary L. Parker, former president of the Bank of Bellevue, has been https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 Largest Banks in Iowa EPOSITS and loan figures for Iowa banks reporting deposits of $65 m illion or more at year-end are shown in the chart below. Com D 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. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. Norwest Bank Des Moines, N.A............. Bankers Trust, Des M oines.................... Davenport Bank & Trust ........................ Merchants Natl., Cedar R a p id s ............ United Central Bk. Des Moines, N.A. . . . Security Natl., Sioux C i t y ...................... Natl. Bank of W a te rlo o .......................... First Natl., Dubuque .............................. Valley Natl., Des M o in e s........................ First Natl., Iowa C it y .............................. Peoples B&T, W a te rlo o .......................... American T&S, Dubuque........................ Brenton Natl. Bk. of Des Moines .......... Hills B&T, H ills ........................................ Peoples B&T, Cedar R a p id s .................. Dubuque B&T, D u b u q u e ........................ Iowa State B&T, Iowa C ity ...................... Waterloo Savings B a n k.......................... Northwest B&T, Davenport.................... Council Bluffs Sav. Bk............................. First Natl., Sioux City ............................ Norwest Bk. Mason City, N.A................. West Des Moines St. B a n k .................... First Natl., M u s c a tin e ............................ Union B&T, O ttu m w a .............................. Security Sv. Bk., M arshalltow n.............. Central State, M u s c a tin e ...................... Monticello State B ank............................ First Natl., Fort Dodge............................ Toy Natl., Sioux C it y .............................. Norwest Bk. Sioux City, N.A................... First Natl., Ames .................................... United Central B&T, Mason City .......... United Central B&T, Fort Dodge............ First Natl., B u rlin g to n ............................ Farmers St. Bk., M arion.......................... Citizens First Natl., Storm L a k e ............ Plaza State, Des M o in e s ........................ Peoples T&S, In d ia n o la.......................... First American St., Fort Dodge.............. Jasper County Sv. Bk., Newton ............ First Natl., Council B lu ffs ...................... Clinton Natl. Bk., Clinton ...................... First T&S Bk., Davenport........................ Hawkeye B&T, B u rlin g ton...................... Hawkeye Capital B&T, Des Moines Bettendorf B&T C o .................................. Fidelity Brenton B&T, Marshalltown . . . Norwest State Bk. A tla n tic .................... Decorah State Bk..................................... Mahaska St. Bk., O skaloosa.................. Norwest Bk. Marion, N.A......................... State B&T, Council B lu ffs ...................... First Security B&T, Charles C ity ............ Maquoketa State Bk................................ Farmers Natl. Bk. of Webster C it y ........ Brenton First Natl., D avenport.............. First Natl., C lin to n .................................. South Ottumwa Sav. Bk........................... Poweshiek Cnty. Natl. Bk., Grinnell Emmet County St. Bk., E sth e rville........ Citizens Natl., Boone.............................. State Central Sav. Bk., Keokuk.............. Hardin County Sav., Eldora.................... First Natl. Bk. of Waverly ...................... Pella Natl. Bk., Pella .............................. Farmers & Merchants B&T, Burlington . Jackson St. B&T, M a quoketa................ Henry County Sav. Bk., Mt. Pleasant . . . December 31, 1984 December 31, 1983 Loans Deposits Loans Deposits $643,018 $714,687 $1,075,362 $1,120,071 336,424 317,990 618,193 612,551 538,218 209,702 215,787 583,255 405,424 223,402 311,142 439,413 135,472 263,000 298,034 154,560 144,476 261,357 140,971 262,048 108,352 248,134 127,790 214,691 95,084 204,053 96,598 206,146 167,207 87,270 201,830 124,889 129,037 190,493 116,909 198,228 169,979 84,816 185,907 111,246 83,558 92,640 175,809 177,719 177,344 102,227 177,682 102,790 76,446 123,565 173,472 112,629 75,244 59,369 173,304 160,459 171,704 176,371 85,948 90,656 152,827 108,439 164,602 124,365 74,537 147,456 156,767 80,795 151,943 97,048 155,576 113,233 149,918 72,576 154,220 82,078 152,744 85,944 83,530 154,049 144,934 99,466 111,440 149,631 74,286 88,826 116,723 140,863 107,550 137,996 118,397 128,205 59,770 68,560 121,008 135,739 131,667 56,116 122,840 55,078 46,109 112,593 43,805 128,553 64,877 115,407 58,418 125,050 78,536 90,711 126,410 121,510 122,105 74,053 119,658 77,451 76,397 85,828 120,425 118,239 50,481 116,240 62,047 104,726 77,964 113,829 71,545 115,642 111,467 63,540 112,678 60,279 105,202 63,659 111,203 75,048 106,486 46,655 109,501 55,121 57,382 107,940 53,505 107,819 60,523 101,959 69,567 95,910 59,279 101,640 58,311 101,576 58,814 101,244 118,224 50,898 99,492 51,908 99,449 62,643 97,572 63,077 98,437 46,985 96,517 93,043 44,054 51,643 60,013 44,647 94,459 67,240 93,247 91,507 53,022 53,993 83,141 60,726 93,216 63,433 44,345 83,800 51,585 83,795 47,030 82,436 55,421 78,930 36,474 25,267 82,049 81,200 76,754 39,211 80,801 39,391 80,713 43,542 74,328 40,781 34,204 52,266 72,886 79,175 77,159 47,932 77,511 50,981 43,617 73,702 40,561 76,220 74,909 45,832 73,709 46,970 65,808 41,692 73,185 50,210 44,127 44,404 72,920 66,613 72,644 72,167 44,001 42,639 71,864 65,702’ 27,379 28,139 66,814 70,822 38,739 37,775 35,284 70,818 71,669 30,981 70,164 41,320 69,931 35,973 69,689 30,971 71,493 27,238 69,500 37,200 63,400 31,700 67,263 48,506 63,229 42,231 67,097 36,393 64,072 34,601 25,604 66,028 66,039 22,970 65,711 42,223 66,450 40,160 60,274 65,189 26,265 22,181 Northwestern Banker, March, 1985 78 N e b ra s k a N e w s named a vice president of FirsTier Services, Inc., a subsidi ary of FirsTier, In c ., h o ld in g company. Firs T ie r S e rv ic e s was formed to offer financial services to busiq L PARKER ness, consumer, banks and other groups. Mr. Parker will be working on special bank pro jects. Mr. Parker was graduated from the University of Iowa and served in the U.S. Air Force prior to joining the Bank of Bellevue in 1968. He was named president of the bank in 1980. Promotions Announced At Platte Valley State Bank Platte Valley State Bank & Trust Company recently promoted Keith Stafford to vice president and Steve Pomajzl to assistant vice president. Also at the bank, Robert P. Sahling, president of Sahling Kenworth, Inc., has been elected to the board. has announced the appointment of Janice M. Swindell as assistant vice president and cashier. Mrs. Swindell, formerly cashier, has been with the First Security Bank for 19 years. FirsTier Mortgage Opens Grand Island Office Sharon L. Baker has been named mortgage loan officer in a new branch office opened in Grand Island by FirsTier M ort gage, Inc., ac cording to John D. Woods, board c h a ir m an of FirsTier M ort gage. An Omahabased mortgage S.L. BAKER banking firm, FirsTier Mortgage will offer FHA, VA and conventional mortgage fi nancing for residential property. The firm’s Grand Island office is in the FirsTier Center at 2121 North Webb Road. The office will originate mortgage loans in Grand Island, Kearney and Hastings. bachelor of science degree in busi® ness administration. In May, 1984 he received his MBA degree from Kansas University. George Klotzbach has beem elected cashier. He is a graduate o r the University of Northern Iowa with a BA in accounting. He joined the bank in March, 1984, and pre viously was an examiner with t h ^ Iowa Department of Banking. Promoted in Lincoln Havelock Bank has announced the election of Terry King, p re s^ dent, to the additional post of chair man. In addition, Joann Mayhugh has been promoted to assistant vice president of customer relations and marketing. ^ T. KING J. MAYHUGH Mr. King will continue to serve as president, a position he has held South Sioux City since May, 1984. Prior to joining Havelock Bank, Mr. King was presi^ Staff Changes Announced Tri-County Bank, Bellevue dent and CEO of the Northgate Na Nebraska State Bank, South Elects New President tional Bank in Hutchinson, Kan. Lance K. Wise has been named Sioux City, has announced the addi Ms. Mayhugh has been associated tion of two to its staff and the pro president of Tri-County Bank & with the bank since 1970. motion of four others. T ru st C o., Ron Bowden has joined the bank B ellev u e. Mr. Index of Advertisers as vice president of information sys Wise, who joined tems. He joins the bank from Touche Tri-County Bank MARCH, 1985 Ross and Co., Minneapolis, where he & Trust as a vice . . .75 AID Securities.................................................. was a senior consultant. president in Dec Banclease, Inc., Omaha ................................ Merle Long has joined as assis Bankers Liquidation R e p o rt.......................... ember, 1982 , . . .60 Trust Company, Des M o in e s .......... tant vice president in the commer Bankers succeeds Ja c k .6 Barclays American/Business C r e d it............ cial loan department. Prior to join . . .51 Commercial National Bank, P e o ria .............. Ayres, who has . . .26 ing the bank, Mr. Long served as an Creative Financial, Inc..................................... ac c ep te d the . . .27 examiner for the Iowa Department Dawson Hail Insu ra nce .................................. post of presi Deluxe Check P rin te rs .................................. of Banking for over six years. dent, Bank of L K- WISE . .4-5 Federal Home Loan Mortgage Corp.............. Jeffrey C. Dible has been elected F&M Marquette National Bank, Minneapolis . . .34 Bellevue. . . .13 Financial Institution Investment Services . . 40-41 Prior to joining the staff of Tri- executive vice president. Following First Interstate B ancorp................................ . . .59 graduation from the University of First National Bank, L in c o ln .......................... County, Mr. Wise served as vice . . .30 First National Bank, Minneapolis ............ 5* president in charge of installment Iowa, he was employed as a national First National Bank, O m a h a .......................... . . .67 lending at the First National Bank bank examiner with the U.S. Trea Gross, Kirk Company, W a te rloo .................... .11 of Hays, Kan. He is a graduate of sury Department. He joined Nebras Heller, Walter E. C o m p a n y ............................ . . .63 Fort Hays College, and holds a bach ka State Bank in 1979, most recent Iowa Bankers Insurance & Services, Inc....... . . . .2 Merchants National Bank, Cedar Rapids . . . elors degree in business. He is also a ly serving as vice president. North Central Companies, St. Paul .............. Jeffrey L. Gebauer, elected vice graduate of the University of Okla Norwest Corporation, M in n e a p o lis .............. . . .70 homa’s National Commercial Lend president, previously was with Bur Office Concepts, Ltd., W aterloo.................... roughs Corporation. He joined the The Sheshunoff C om p a n y............................ .14,15 ing School. ___7 bank in 1982, most recently serving Square Deal Insurance .................................. .11 Swords and A ssociates.................................. in operations. . . . .3 Travelers Express C om pany.......................... Holdrege Appointment Told Owen Buckley, elected assistant United Central Bank Des Moines, N.A........... . . .16 William E. Richards, president of vice president, graduated from the United Missouri Bank, Kansas C it y .............. . . .69 First Security Bank of Holdrege, University of Kansas in 1982 with a Valley National Bank, Des M o in e s................ . . . <. . . . . DigitizedNorthwestern for FRASERBanker, March, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Compare For Yourself. How Does Your Current Credit Insurance Company Measure Up Tb North Central Life? 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