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MARCH
1986

T

One-stop investment shopping

^

r

nized investment income

Selecting alternatives to municipals


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

M eet Dick Retz,
M NB Correspondent Banker.

M eet Dick Retz,
farmer.

As an MNB Correspondent Banker, Dick brings over 13 years' experience
in agricultural finance counseling, ag lending and farm management to
his work.
As a farmer he understands, first hand, what your agricultural
customers are up against and the kind of financing they need to achieve
their goals.
MNB and its respondent banks are located in some of the country's
most productive farmland. And because agriculture plays such a vital role
in the economy, we've developed a special commitment toward
agricultural financing.
So when you have farm customers who need to restructure short
term debt into long term, need cash-flow financing, machinery loans or
cash to purchase additional land, talk to someone who knows about
banking and finance. Call Dick Retz at MNB. Dial 319/398-4320 or tollfree, 1-800-332-5991.


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Federal Reserve Bank of St. Louis

Merchants National Bank 1:1

Cedar Rapids, Iowa 52401

Member F.D.I.C

A BANKS OF IOWA BANK

3

H995 will put
the banking industry
onyour desktop.
Your contacts with the banking industry can be
more convenient and efficient than ever with your
very own copy of The Desktop Bank Directory ™
close at hand.

Save money. At $49.95 per set (two volumes),
it’s the biggest bargain in bank information.
Inexpensive enough to have copies for the whole
department, board or sales force—and there are
quantity discounts for multiple purchases.

Save time. No more searching for bank
information. No more borrowing a co-worker’s
directory. No more hassles with telephone
operators or long-distance information. Just keep
this book on your desktop.

Save effort. You don’t have to wade through extra
data you don’t need, or compare two or three
sources to make sure you’ve got what you do need.
It’s all here—more than 15,000 head offices,
45,000 branches, addresses, phone numbers,
routing numbers, contact names, financials,
correspondents and more. In two 5Vi x 8" volumes
that are lightweight and easy to handle.
Stay up-to-date. We’ll do the footwork to keep
track of the thousands of changes in banking every
year. All you have to do is
come to us for updated
copies.

Order today. To be sure
you can obtain copies from
our 1986 printing, use the
convenient form to order, or
give us a call. The banking
industry can be on your
desktop in no time.
Actual page size 5'/t" x 8",
two vinyl-bound volumes
in a handsome slipcase.


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Federal Reserve Bank of St. Louis

■H
NEW!
THE DESKTOP
BANK DIRECTORY™your compact, affordable
guide to U.S. banking.
The Desktop Bank Directory ™
Rand McNally & Co.
RO. Box 7600 Chicago, IL 60680
(312)673-9100
Please send me:
________ Copies of the 1986 edition on a standing order basis
at $49.95 each plus tax, shipping and handling.
I understand that by signing for this service I will
automatically receive updated editions each year
at the then-current price.
________ Copies on a single issue basis at $49.95 each plus tax,
shipping and handling. I understand that I will only
receive the 1986 edition.
__________ Please call me about quantity discounts for more than fifteen copies.
No need to send money now! We ’11bill you after we ship your books. Invoices
include applicable tax, shipping and handling charges.
Company

The following will activate your service:
Signature
Date .

. Phone L

Northwestern Banker, March, 1986

4

Continental Bank Chicago
Names Two New Officers

NOKfflWESTERN
J^ a H K tV
MARCH 1986

•

93rd Year

•

No. 1470

to

MEMBER OF AUDIT BUREAU OF CIRCULATION
MEMBER BANK MARKETING ASSOCIATION

OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

FEATURES-

15

One-stop investment shopping

Chase Bank’s Susan Schoon describes money center service

16

How we maximized investment income

Community banker Darrel Posegate shares successful procedures

19

Selecting alternatives to municipals

Veteran Richard Swanberg lists the options

20

Self-examination re-visited

Nebraska’s bank exam process grows, gains national attention

DEPARTMENTS
24
26
29
33
40
42
45
46

Alberto Luzarraga and Jerry A.
Lemmons, both 48, have been elected
senior vice presidents of Continental
Illinois National Bank, Chicago.
Mr. Luzarraga joined the bank
January 6 as head of the Latin
America group in the international
banking department. Previously, he
was an executive vice president with
American Express International
Bank Corporation in New York. He
also worked for First Interamericas
Corporation and was a vice presi­
dent at Chase Manhattan Bank,
New York.
Mr. Lemmons joined the bank
February 3 in the FDIC asset ad­
ministration department. Previous­
ly, he was senior vice president and
manager of corporate consulting at
Mellon Bank Corporation.

Illinois
Wisconsin
Minnesota
Twin Cities
South Dakota
North Dakota
Montana
Wyoming

47
49
50
54
57
70
74

Colorado
Nebraska
Omaha
Lincoln
Iowa
Des Moines
Index of Advertisers

NORTHWESTERN BANKER
1535 Linden Street, Suite 201, Des Moines, Iowa 50309

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Melinda Sauers

Diane Nelson

No. 1470 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Northwestern
Banker, March, 1986

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Federal Reserve Bank of St. Louis

R .I.P .
D ep o sito ry In stitu tio n s
D eregu lation A c t

1980 - 1986
Statutory authority for the Depo­
sit Institutions Deregulation Com­
mittee expires March 31 when the
DID Act creating the committee
meets its sunset.
On January 1 of this year, the
$1,000 minimum required for Money
Market Deposit Accounts, SuperNOW accounts, and 7 to 31 day ceil­
ing-free time deposits were elimi­
nated by the DIDC.
The interest rate ceiling on pass­
book savings and automatic trans­
fer from savings account will be eli­
minated March 31 with DIDC’s de­
mise.
A major item left unanswered late
last month was whether the Fed will
continue to recognize MMDAs as it
does now or whether this $500 bil­
lion in MMDAs would be subjected
to the reserve requirement of up to
12% the Fed requires on savings.
The Fed has indicated it plans to
continue MMDAs as before, but is
being pressured by non-banking
sources to impose the reserve re­
quirement. Those nondepository in­
stitutions do not hold reserves with
the Fed for their instruments that
compete with bank MMDAs, so
commercial banks are pushing for
the Fed to retain the MMDAs as at
present.

5

BOND
SERVICE
BANK
SERVICE
Chances are, your bank has
been exposed more than once to
“bond service.”
It’s transaction-oriented
service from people who know
bonds, not banks. So the advice
you get too often goes no
further than offerings and oc­
casional bids.
Bond service is not what
L. F. Rothschild, Unterberg,
Towbin provides. Our specialty
is BANK SERVICE.® Over 25
years of service that combines
intimate knowledge of bonds
with in-depth understanding of
banks.
BANK SERVICE views
your portfolio in the same light
as you do: As a crucial com­
ponent of your bank’s overall
position. Not as an independent
entity.

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

That’s why before we make
a recommendation we conduct a
thorough study of your bank.
Then our BANK SERVICE
committee meets to discuss the
Bank Report we’ve prepared
specifically for you.
The recommendations
from the committee are tailored
to your bank’s present position
and future objectives in a chang­
ing marketplace.
Our PMS system can help
you monitor and manage
your portfolio. We’ll introduce
you to our Fixed Income Com­

puter Service, our investment
banking group, our fixed income
research, send you our news­
letter and invite you to appro­
priate seminars that we host in
your area.
All these services are de­
signed for one goal: To help you
achieve your bank’s overall
aims in a way no mere bond
service can.
So, while you may be get­
ting bond service, what you real­
ly need is BANK SERVICE. Call
Stephen H. Kovacs, Managing
Director, at (212) 412-2600.

I»_______________
L. F. ROTHSCHILD, UNTERBERG, TOWBIN

BANK SERVICE®
Northwestern Banker, March, 1986

i
I
\
I

BetaWest Properties, Inc. is part of U S WEST.
That means a lot of stability and breadth of experience that enables us to meet you/corporate
real estate needs We are owned/ny one of the
largest corporations in America. Its assets are
| approximately $17 billion. VM4 revenues were
I $7.2 billion, earnings were $887 million. I t’s
owned by 1.2 million shareholders and has over
70,000 employees.
/
BetaWest is both a real estate owner and devel­
oper. Our capabilities and experience gives us the
ability to meet a wide variety of^roperty develop­
ment needs ibr a broad spectrum of client users.
BetaWest operates on a national scale. For
BetaWest developments, oiir capabilities include:
site evaluation, negotiation s for the purchase o r
sale of buildings and/or raw land, construction


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Federal Reserve Bank of St. Louis

s Because O f W hat’s Behind Us.


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Federal Reserve Bank of St. Louis

8

IBAA Bancard Makes Debut
An impressive addition to the In­
dependent Bankers Association of
America’s menu of services to its
member banks is the IBAA Bancard, Inc., a VISA and MasterCard
credit card program for the nation’s
community banks.
IBAA Bancard, Inc., allows com­
munity banks to become credit card
issuers, instead of selling a compet­
ing in stitu tio n ’s card product.
Through the new program, commu­
nity banks have control over their
credit card programs — and secure
customer relationships.

BANCANALYSIS,
INC.
INSTITUTIONAL
ANALYSIS
EDP & MANAGEMENT
CONSULTING
AND EDP & FINANCIAL
AUDITING

W hy B a n c A n a ly s is ?

Our Institutional Analysis pro­
gram features Peer, Change, and
Trend analysis utilizing current
data which is collected monthly.
Most other companies use data that
is at least three months old. Also,
we provide our customers with a
toll-free 800 telephone number.

Continental Donates Money Exhibit

John E. Swearingen (second from right), Continental Illinois Corporation chmn. and CEO,
recently presented The Money Center exhibit at the Chicago Museum of Science and In­
dustry to the Illinois Council on Economic Education. Accepting the exhibit on behalf of
the ICEE were William L. Weiss (second from left), chmn. of Ameritech and chmn. of the
ICEE governing board; John L. Lewis (left), ICEE exec, dir., and George M. Morvis (right),
pres, of Financial Shares Corporation and pres, of the ICEE board of trustees.
The Money Center is a multi-dimensional arcade of economics at work, using computers,
pinball machines, puppets and a variety of games. It has had more thn 15 million visitors
since Continental Illinois opened it in 1979. It was donated to the ICEE with the hope that it
would continue to promote economic understanding to students and the general public in
the years to come.

$2.43 per share, up 18.7% from last
year’s $87,816,009 or $2.01 per
Based on company statements for share.
Sales for the fourth quarter were
the year 1985, which are as yet un­
audited, Deluxe Check Printers, Inc. $202,346,878, up 13.8% from $177,
will report record sales of $764, 838,681 last year, while net earnings
420,743, an increase of 12.0% over were $28,607,302 or 67 cents per
share, up 18.2% compared to $24,
last year’s $682,823,206.
Net income for the same period 195,236, or 56 cents per share a year
was a new high of $104,215,336, or ago.

Deluxe Announces Gains

—Our 66th Year—
THE CROP H A IL PROTECTION
FARM ERS PREFER
STATEMENT OF CONDITION At Close of Business December 31, 1985
ADMITTED ASSETS
U.S. Government Bonds........................
Accrued Interest, etc...............................
Cash in Bank and Home O ffice ............

$9,420,202.79
155,698.180
476,851.80

Total Admitted A ssets.................. '.

$10,052,753.08

LIABILITIES
Reserve for Federal and State Taxes................................ $ 51,739.86
Other Liabilities...................................................................
997,100.00

P.O. BOX 83643
LINCOLN, NE 68501
402-467-1144

Total Liabilities............................................................. $1,048,839.86
Funds for Policyholder Protection....................................
9,003,913.22
$10,052,753.08
Securities carried at $400,084.00 in above statement are
deposited with public authorities as required by law.

SQUAREDEALINSURANCECOMPANY
DES MOINES, IOWA 5 0 3 0 8
(515) 282-0497

Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

l^yjutuai

After switching to
American Express
Travelers Cheques,
sales are looking up
at Standard
Federal Bank.
John C. Pechur, Vice President ofStandard Federal Bank, afederal savings
bank in Troy, Michigan, tells how switching to American Express increased
travelers cheque sales 36 % in thefirst ten months.
Question: What happened to sales since you’ve started selling only
American Express® Travelers Cheques?
Pechur: Since we became an American Express seller, sales have
increased significantly—36% in the first 10 months.
Question: To what do you attribute the increase?
Pechur: We definitely feel that the name American Express is
responsible. Our tremendous sales increase certainly is the best
indication that our customers feel American Express Travelers
Cheques are a great product. We never realized that American
Express had such a strong brand preference with our customers.
Question: Do you think that selling American Express Travelers
Cheques enhances the image of your institution?
Pechur: I believe that the association of these two well-respected
names, Standard Federal Bank and American Express, is
mutually beneficial. Both organizations have a long-standing
reputation for quality and service.
Tofin d out how to increaseyour travelers cheque
sales, call 1-800-221-7282 and askfor
Lou Eiler.
© 1986 Ajmcrican Express Travel Related Services Company, Inc.


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Federal Reserve Bank of St. Louis

jggH gj T r a v e l e r s

■feUi Cheques

10

United Missouri Bank of
Kansas City Makes Changes
Dan Cunningham has been pro­
moted to senior vice president at
United Missouri Bank of Kansas
City, N.A. in the Bankcard Center,
where he is primarily responsible for
the retail credit, collections and
Bankcard Credit Divisions. He
joined United Missouri Bank in
1981 after serving with the House­
hold Finance Corporation.
Rahn Tieman recently joined the
bank as vice president of the corres­
pondent bank division, where he will

serve correspondent banks in west­
ern Kansas. He is a University of
Missouri graduate and was affili­
ated with several Missouri banks
earlier.
Carolyn A. Knickerbocker was ad­
vanced to vice president at the UMB
State Line facility, where she man­
ages the operations department. She
joined the bank in 1976.
A number of promotions were an­
nounced in the United Missouri
Bank trust department. Mark P.
Herman was promoted to vice presi­
dent in the employee benefits divi-

Mostlease programs lack
acertain flexibility.

sion and heads the legal technical
section there.
<
New assistant vice presidents are
Paul M. Van Dyne in the employee
benefits division, and Mark S. Alli­
son in the trust investment division.
William E. Kohler has been pro-1
moted to trust investment officer,
with primary responsibility for equi­
ty securities analysis.

G.D. vanWagenen Appoints
Alex Riebe on East Coast
Alex Riebe, Jr. has joined the
G.D. vanWagenen Company of Min­
neapolis as marketing representa­
tive for the East Coast, according to
an announcement by Kent R. Daley,
president, it also was announced
that the G.D. vanWagenen Com­
pany recently opened a service office
in Reading, Pa., as well as Mr.
Riebes’ sales office in Fairfax, Va.
The G.D. vanWagenen Company
specializes in insurance products (
and services for financial institu­
tions.
Mr. Riebe previously was associ­
ated with the American Bankers As­
sociation in Washington, D.C. as as-,
sistant director of the Security and
Risk Management Division. He was
responsible for education, research
and communications in the special­
ized areas of bank insurance, risk (
management and income producing
insurance.
Mr. Riebe also has served two
terms as president of the Potomac
Chapter, Risk and Insurance Man
agement Society and has been desig­
nated an associate in Risk Manage­
ment (ARM).
Mr. Riebe received his bachelor of
Arts degree cum laude-Economics i
from Bethany College, Bethany,
Va., in 1974.
- 1

Phil Goddard Retires

Any leasing company can keep you from tying up your capital.
Bankers/Plus can keep you from being tied down to unwanted
equipment.
In fact, we’re probably the most flexible leasing
company in the country.
Unlike other lease programs, ours
allows you to upgrade whenever you need
to. Because ours are designed with a
genuine understanding of your needs.
WHERE LEASE IS MORE.
Call us today. (612) 331-1164.
©1985 Bankers/Plus, Inc.

BsAersÎp/iis


Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

<

Tension Envelope Corporation
has announced that Phillip A. God­
dard, vice president and general
manager of Tension’s Des Moines,
la., manufacturing plant, retired De­
cember 31, 1985. Mr. Goddard was
graduated from Iowa State Univer­
sity with a degree in mechanical
engineering and joined Tension in
1951 as a sales representative, was
promoted to sales manager in 1960
and in 1969 was named vice presi­
dent and general manager of Tension-Des Moines.
(
Tension envelope has announced

11

the appointment of Gary A. Surbaugh as general manager in Des
Moines to succeed Mr. Goddard.

MASI Names New President
Steve Stahly has been selected
president and CEO of MASI, the
the agricultural
finance su b si­
diary of Mid
America Bantl­
in g S e rv ic e s
Company
(MABSCO).
Formerly
p re sid en t and
CEO of the Web­
ster City Pro­
S. STAHLY
duction Credit
Association of Webster City, la.,
Mr. Stahly organized, was an origi­
nal incorporator, and served on the
board of the PCA’s of Iowa.
Mr. Stahly was raised on a 1500
acre livestock farm in Horn, S.D. He
graduated from South Dakota State
University in 1971 with a BS degree
in Agricultural Economics.
After graduation, he joined the
Farmers Union Cooperative Eleva­
tor at Kennebec, S.D., and worked in
sales and public relations. In 1972,
he moved to Pierre, S.D., and for
three years was employed as the as­
sistant manager and loan officer of
the Pierre Production C redit
Association of Pierre.
Mr. Stahly joined the Federal In­
termediate Credit Bank in 1975 as
an examiner of PCAs in Nebraska
and South Dakota. In 1977 he was
promoted to assistant vice presi­
dent, credit operations and super­
vised the credit operations of 10
PCAs in Nebraska. Credit standards
for those associations were de­
veloped and documented under his
supervision. Also he developed, or­
ganized and implemented control
system that included loan commit­
tees, deregulation of authority, and
standards of performance for the 10
PCAs in Nebraska.
In 1979 he was named president
and CEO of the Webster City Pro­
duction Credit Association. In that
position, he formulated and estab­
lished corporate short and long term
objectives, policies and strategies.
For the last 15 years, Mr. Stahly
has been involved in continuing edu­
cation in subject matters related to
ag finance. He assumed his new
duties at MASI headquarters in Des
Moines on February 24.

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Federal Reserve Bank of St. Louis

STATE-OF-THE-ART
HARDWARE
DESERVES
STATE-OF-THE-ART
SOFTWARE
• PLATFORM MANAGEMENT
SYSTEM
• TELLER MANAGEMENT
SYSTEM
• COMPARATIVE RATING
SYSTEM
• COMMUNITY BANKING
SYSTEM

9910 N. 48th St., Suite 201
Omaha, Nebraska 68152
(402) 451-8440
Toll Free—1-800-255-2255 ext. 8440

Northwestern Banker, March, 1986

12

Rand McNally Fights Credit Card
Fraud with New Sales Slip Security
HE SOPHISTICATED technol­
T
ogy designed by Rand McNally
& Company, Chicago, to combat air­
line passenger ticket fraud now has
been adapted to create the com­
pany’s first credit card sales slip se­
curity products.
Pointing out that some estimates
of annual credit card fraud losses
run as high as six to 15 times the air­
line industry’s several hundred mil­
lion dollars in ticket fraud losses, a
company spokesman said the “car­
bonless, alter-proof, smudge resis­
tant, no-disposable-ply’’ characteris­
tics of its new ImageGard* and
SafetyChip* credit card slips” are
ideal for their protection and conve­
nience features for both issuers and
users while being cost-competitive
with less effective security slips.”
Rand McNally’s Ticket Division
has been the world’s larget devel­
oper and producer of airline passen­
ger tickets since the beginning of air
travel. The company is also the offi­
cial numbering agent of the Ameri­
can Bankers Association, publisher

BBC Wins Contracts for
$28 Million in 14 States
Bank Building Corporation, a St.
Louis-based design/build firm spe­
cializing in financial facilities, won
contracts for 23 separate projects in
14 states during the last four
months of 1985. The projects call for
designing and building or remodel­
ing banks, credit unions, and sav­
ings and loan institutions. Their
total value is slightly over $28 mil­
lion.
The work includes 15 bank pro­
jects, seven projects involving
credit unions, and one involving a
savings and loan.
The most ambitious of the 23 pro­
jects calls for the construction of a
$3.6 million main office facility for
the Oak Ridge National Laboratory
Credit Union in Oak Ridge, Tenn., a
suburb of Knoxville. The new facili­
ty will permit the reorganization
and consolidation of operations.

of the International Bankers Direc­
tory and savings and loan director­
ies as well as supplier of financial in­
stitution consulting and marketing
programs through its Financial Pub­
lishing and Financial Systems Divi­
sions.
ImageGard* security is based on
a special combination of paper and
inks, proprietary to Rand McNally,
which eliminates the need for inter­
leaved carbons, a prime source of
credit card fraud.
A second new Rand McNally pro­
duct, the SafetyChip* credit card
slip, os offered for applications
where interleaved carbons are pre­
ferred. SafetyChip* carbons are de­
signed so that the section where the
customer’s account number is im­
printed adheres to the back of the
copy that is returned to the custo­
mer by the merchant.
SafetyChip* also incorporates
ImageGard* features to protect Chicago Fed Promotes 2
The Federal Reserve Bank of Chi­
against fraudulent alteration of
cago has announced that Senior Vice
sales slips.
President Charles W. Furbee has as-

Morepowe

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Federal Reserve Bank of St. Louis

NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES

BUSINESS REPLY MAIL
FIRST CLASS

PERMIT NO. 30949

CHICAGO, IL

POSTAGE WILL BE PAID BY ADDRESSEE

Drovers Bank of Chicago
ATTN: CORRESPONDENT BANK DIVISION
47TH STREET AND ASHLAND AVENUE
CHICAGO, IL 60609


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Federal Reserve Bank of St. Louis

want to know more about Drovers’ services.
I I’d like information on:
□ Overline Participations

□ Trust Services

□ Liquidity Loan Participations

□ Pension and Profit Sharing Plans

□ Bank Stock Loans to Individuals

□ Purchase & Sale of Federal Funds

□ Direct Loans to
Bank Holding Companies

□ Bond Portfolio Analysis

□ Investment/Safekeeping Services

□ Assistance in Raising C apital...
Meeting Capital Adequacy Standards

□ Leasing Services

□ Cash Letters

Urne.

Title.
(Please Print or Type)

Phone.

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

State.

Zip.

13

sumed responsibility for the bank’s
check services and operations de­
partment which encompasses the re­
gional check processing offices in
Des Moines, Indianapolis, and Mil­
waukee, as well as customer ser­
vices, check operations, cash ser­
vices, and the bank’s activities as
fiscal agent to the U.S. Treasury at
the Chicago office.
Richard P. Anstee has been pro­
moted to senior vice president of the
support services department in Chi­
cago.

Michael Moebs Publishes
‘Pricing Financial Services’
Suddenly bankers have to price
products and control costs. Until re­
cently, prices were set and costs
were controlled for them. Pricing is
virgin territory for most bankers,
and it is often approached with great
confusion. Pricing Financial Ser­
vices (March 10,1986; $35.00), by G.
Michael Moebs with Eva Moebs,
provides a source of theory, practice
and specific tools needed to properly
price financial services.
Pricing Financial Services offers
practical strategies for increasing

profitability in all types of financial
services organizations. The book
discusses:
• the four major pricing strate­
gies—value, competition, rela­
tionship and cost-plus
• how to integrate these strate­
gies into a competitive pricing
approach
• the supporting discipline needed
to apply the strategies including
microeconomics, cost, the mani­
pulation of fees and balances,
present value, the basics of
ALM an account analysis
G. Michael Moebs is president of
G.M. Moebs & Associates, a profes­
sional consulting firm devoted to
the profit performance of financial
institutions. His innovative and
practical approaches to marketing
and finance for financial institutions
has won him numerous awards. Mr.
Moebs is the publisher of Pricing
Strategy, a monthly newsletter that
surveys current prices and discusses
how to implement profitable pricing.
Eva U. Moebs is partner with G.M.
Moebs & Associates.
The publisher is Dow Jones-Irwin, 1818 Ridge Road, Homewood,
111. 60430 (312) 798-6000.

Deluxe Check Names CEO
Deluxe Check Printers, Inc., St.
Paul, Minn., has announced that
Harold V. Haverty, president
and chief operat­
ing officer, will
succeed Eugene
R. Olson as chief
executive officer
in May of this
year. Mr. Olson,
who will retire
follow ing th e
H.V. HAVERTY
company’s an­
nual meeting in May, announced his
plans last month.
Mr. Olson has been with Deluxe
for 41 years and has been chief exec­
utive officer since 1977. He will con­
tinue as a director of the company
and chairman of the board.
Mr. Haverty, 55, has been with
Deluxe 32 years. He has served on
Deluxe’s board since 1970. Mr. Hav­
erty was named chief operating offi­
cer in 1976 and became president in
1983. He will retain both of these
posts when taking over as chief ex­
ecutive officer in May.

Bankers w ith ambition. Those are bankers
Drovers values as correspondents. If you
want to acquire one or more banks but lack
the funds to do it, Drovers can help. We’re
specialists in financing bank acquisitions.
As a member of the Cole-Taylor
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wealth of practical advice about
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bank stock carry loans. Hungry for more? Call
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of Chicago
47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000
MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C.

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

A Cole-Taylor Bank

Balancing
good banking
with strong
profits.

Keeping competitive and staying profitable is a tough balancing act these
days. You’re looking for good service, availability and pricing that can keep
your day-to-day operations in the black.
At United Missouri, a personal representative works with you on a
continuing basis to maintain this balance. Through that representative
you have access to our new availability schedule that decreases float costs.
And to investments, brokerage services, asset/liability management, data
processing services, bankcards and loans.
Our services are competitively priced to help your bank improve
the bottom line, and all are backed by the expertise and careful market
forecasting that have built United Missouri into a major banking force.
To learn more about our services, call Phil Straight in Kansas City.

UNITED MISSOURI BANK
“ “
of Kansas City, n a.
P.O. Box 226, Kansas City, Missouri 64141, (816) 556-7900

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

15

Community banks
tie-in with
money center bank

1

I
1

1

for ...

One-stop
investment
shopping

Written especially for
T he N orthwestern B anker

By SUSAN W. SCHOON
Vice President
National Correspondent Banking
The Chase Manhattan Bank, N.A.
New York, N.Y.
ROOKLYN, la., where I grew up, is like many
small towns in America. In Brooklyn the major in­
B
dustry is farming. Merchants project their income by
studying the price of soybeans, corn and hogs.
In other small towns the economy depends on the
demand for carpets, ball bearings or kitchen cabinets.
Local Bank Serves Community
Whatever a community’s major industry, its finan­
cial needs have been served historically by a local
bank.
Also historically, these banks have relied on money
center institutions for services they did not elect to
provide locally. Just as deregulation and increased
competition have altered local banks’ relationships
with their customers, so have they with their larger
correspondent partners.
■ ABOUT THE AUTHOR—Susan W. Schoon is vice president in
charge of national correspondent banking for The Chase Manhat­
tan Bank, New York. Prior to assuming this position in the sum­
mer of 1985, Ms. Schoon was executive for the community bank­
ing division, serving 2,100 community banks and thrifts through­
out the United States. It was in this capacity that she developed
and implemented the investment strategy and products she dis­
cusses here.
Ms. Schoon joined Chase in 1982 in the international banking
division. She had previously been with Citibank in the North Amer­
ican banking group and the real estate industries division. Before
entering banking Ms. Schoon served in the New York City govern­
ment.
A native of Brooklyn, la., Ms. Schoon currently resides with her
husband, Craig, in Brooklyn, N.Y. She received a B.A. degree from
the University of Iowa and an M.B.A. from New York University.

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

The principal service provided by money center
banks used to be to check clearance. Over time the
needs, and the emphasis, have changed. Today, in my
opinion, the major service that a money center bank
can offer its community counterpart is one-stop shop­
ping for investment products.
Bottom Line Depends on Investments
The bottom line of a community bank depends in­
creasingly on effective investment policy.
Assets in the form of loans are becoming harder and
harder to come by. At the same time that lending op­
portunities in agriculture have decreased, the middlemarket business customer is being wooed aggressively
by new competition: regional banks, foreign banks and
money center banks themselves. Finance companies,
too, Eire attempting to broaden their customer base by
pursuing this source of revenue.
Coincidentally, deregulation has created attractive
interest rates that have swelled the deposits of com­
munity banks. In this environment, successful invest­
ment strategy has become the cornerstone of sound
asset/liability management.
Industry estimates indicate that community banks
— the more than 14,000 institutions with assets under
$1 billion — have some 30% of their assets in the form
of investments. That’s almost four times the percent
for money center banks.
Money Center Bank Can Help
The most productive contribution a money center
bank can make to its community counterpart is to
make it easy and profitable to manage these invest­
ments.
Historically, community banks have turned to their
money center correspondents for Government SecuriONE-STOP SHOPPING. . .
(Turn to page 23, please)
Northwestern Banker, March, 1986

How we maximized
investment income
. . .with sophisticated portfolio management
Investment Objectives
Written especially for
T he N orthw estern B ank er

By DARREL L. POSEGATE
Cashier
Citizens National Bank
Charles City, la.

UR community bank, with assets of $56 million,
O
is located in Charles City, a northeast Iowa coun­
ty seat town with a population of 8,500. The $25
million loan portfolio is comprised of 36 percent agri­
culture, 28 percent real estate, 21 percent commercial,
and 15 percent consumer loans. The investment port­
folio has traditionally been managed using short to in­
termediate term governments and agencies and AAA
rated municipals. Until recently, loan demand was
strong and increasing year after year, allowing the use
of a conservative investment portfolio strategy.
Early in 1985, our Asset/Liability Committee
(ALCO) consisting of the chairman, president and
cashier set out to develop a more sophisticated and
comprehensive approach to managing the investment
portfolio. Loan demand was weak and the loan port­
folio was shrinking significantly. The lower loan-todeposit ratio has decreased, for example, from 58.08
percent in January, 1985 to 52.94 percent in December,
1985. The reduction of interest income on loans has
severely impacted management’s ability to meet the
profit objective of 1.50 return on assets.
It was imperative to maximize investment portfolio
income to maintain the bank’s profit objectives. The
ALCO desired to obtain additional expertise in order
to properly manage the investment portfolio. The com­
mittee determined it would not be cost justifiable to
hire a full-time, professional investment officer. How­
ever, the concept of hiring an investment consultant on
a fee basis seemed to have merit. As part of the search
process for a consultant, the following investment ob­
jectives and expectations were determined:

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1. Increase investment income.
2. Avoid excessive interest rate risk and market risk.
3. Develop a comprehensive asset liability plan. Use
investments that would complement a comprehen­
sive asset liability plan.

Consultant Expectations
1. Help us develop a comprehensive investment stra­
tegy.
2. Help us time our purchases and sales to maximize
earnings.
3. Help us develop an easily monitored and evaluated
asset liability management system.
4. Be affordable.
5. Present investment options for the committee to
decide upon.
6. Educate us in investment strategies and asset lia­
bility strategies.

The Selection
Our search led us to James Baker & Company out of
Oklahoma City. James V. Baker is chairman and presi­
dent of James Baker & Company, a nationwide brokerdealer, investment advisory, and computer software
firm, based in Oklahoma City, Okla. Prior to establish­
ing his own firm, Mr. Baker was executive vice presi­
dent of a large midwestern bank and its holding corpo­
ration. His duties included responsibility for its invest­
ment division, marketing division, and economic an­
alysis. Additionally, he was president of the bank’s ad­
visory services and chairman of the asset/liability man­
agement committee. Before joining the bank, Mr.
Baker was an assistant professor of finance and Okla­
homa Bankers Association Research Professor at the
University of Oklahoma. He has authored a book for
The American Bankers Association, entitled Asset/
Liability Management, the single best selling book
ever published by the ABA. We felt these were impres­
sive credentials.
The Baker firm helped us develop investment strate­
gies we could live with. They presented new invest­
ment options to us. Here is a synopsis of some invest­
ments and ideas presented to us.

17

GRAPH I

GRAPH II

Citizens National, Charles City

Citizens National, Charles City

Rate Sensitive Assets & Rate Sensitive Liabilities

Rate Sensitive Assets & Rate Sensitive Liabilities

3025$21.27
20$16.57
15-

$12.59

$12.97 $13.85

10<
tn
DC

C0
DC

530
$ 0.12

60

90

180

365

$8.94

$8.4

$3.09

5-

$5.56
1015-1

$12.71
$16.06

20

$19.41

25
$25.51
30

$29.67
71.36%

64.95%

71.69%

THE vertical bar at left is in $5 million increments, with Rate Sen­
sitive Assets above the center axis line and Rate Sensitive Liabili­
ties below the line. The vertical lines within the chart indicate
elapsed number of days. All balances for each time period are in
millions. These figures and the percentages exhibit the initial Cu­
mulative Rate Sensitivity report generated by the software pro­
gram.

GRAPH II is identical in nature to Graph I, but illustrates how the
cumulative gap improved greatly after only three months.

GRAPH III
Citizens National, Charles City
Change in Net Interest Margin

The Investment Choices
• FNMA ARMs - A Federal Agency Security that has
an adjustable interest rate which floats monthly at
1.25% over a FHLB cost of funds index. It is an ex­
cellent way to manage GAPs and spreads, plus earn
about 50 basis points more than 10 year Treasury
Notes.
• GNMA ARMs - A mortgage backed security with
the full faith and credit of the federal government. It
has an adjustable interest rate that floats yearly at
1.5% over the one year treasury rate. Great for man­
aging spreads and a yield similar to 7 year Treasury
Notes.
• Corporate FRNs - Corporate Bonds with floating in­
terest rates which adjust at 1% over the bond equiva­
lent yield on the six month T-Bill. An alternative to
the purchase of lesser credit CDs.
• CMOs - AAA Corporate Bonds which are fully colla­
teralized by GNMA, and pay principal and interest
semiannually. The yields are 75 to 100 basis points
over T-Notes with similar maturities.
• Call Options - Yield enhancement through the use of
Call Options on T-Notes. The improvement in yield is
about 1.5 to 2% for selling a 30 day option. Timing,
and the willingness to sell the bond are essential.
• High Coupon GNMA - Because of the monthly prin­
cipal pay down on mortgage backed securities, the
average life and duration of the instrument is rela­
tively short. The yield to average life is extremely at-


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

Note: All balances in thousands
“AS of December 31,1985, our net interest margin sloped upward
and the net interest difference at the 180 day mark was very close
together. This demonstrates that no matter what direction rates
head, we can increase our net interest margin.”
Vertical line at left in thousands of dollars.
............... = Increasing Rate.
_______ = Constant Rate.
----- ------- = Decreasing Rate.
Northwestern Banker, March, 1986

18

“We will be evaluating
new options, strengthening
our strategies and
implementing our objectives
to reach our goals.”

combined with existing yields and market rates to
evaluate what changes in interest rates could do to our
net interest margin. The goal is to have our net margin
increase whether interest rates increase, decrease or re­
main constant. Our investment decisions should help
us achieve this goal. As of December 31, 1985, our net
interest margin change sloped upward and the net in­
terest difference at the 180 day mark was very close
together (See Graph III). This demonstrates that no
matter what direction rates head, we can increase our
net interest margin. Our investment committee feels
we should evaluate any future investment decisions in
terms of our gap position and change in net interest
margin. With this model we can easily do this.

Summary
tractive to treasuries and the credit is just as good.
• Yield Curve Analysis - The concepts of duration and
convexity, as well as daily analysis of spread rela­
tionships provide a scientific method of buying and
selling Treasury Notes as opposed to hit or miss
trading.
• Market Timing - A combination of technical and fun­
damental analysis provides for prudent timing of
purchases and sales.
• Municipal Bond/Tax Strategies - Thorough analysis
of the effects of changes in TEFRA and corporate
tax rates, as well as spread relationships to taxable
bonds. Marketability and quality are stressed in
view of uncertainty over tax positions and pending
tax legislation. High grade GOs, pre-refunded and
escrowed bonds are recommended as well as bonds
with “put” features.
• Asset/Liability Management - The management of
interest rate risk and net interest margin analysis as
a consideration in all investment management deci­
sions.

The Control Charts
Mr. Baker allows us to use his rate sensitivity and
net interest margin software as part of the consulting
fee. Previously, we had developed a spread sheet model
for analyzing our gap position. However, the model did
not take into account any interest rate considerations.
As we found out, monitoring the directions interest
rates could go was very important to our investment
strategies. Mr. Baker instructed us on the use of the
model and now helps to analyze the results on a month­
ly basis. We feel this education and feedback is essen­
tial for us to increase our investment income. To de­
monstrate his effectiveness, our initial Cumulative
Rate Sensitivity report generated by the software dis­
played the following gap:
Rate Sensitve Assets/Rate Sensitive Liabilities
(See Graph I)
90 Days
180 Days
365 Days
71.36%
64.95%
71.69%
Our cumulative gap improved greatly after only three
months using James Baker & Company as shown
below:
Rate Sensitive Assets/Rate Sensitive Liabilities
(See Graph II)
90 Days
180 Days
365 Days
112.38%
86.38%
101.23%
We also learned that volume gap analysis has to be


https://fraser.stlouisfed.org
Northwestern Banker, March, 1986
Federal Reserve Bank of St. Louis

Our bank was and is experiencing a declining loan to
deposit ratio. We realized that we had to develop more
sophistication in our investment and asset liability
management to meet our profit objectives. We deter­
mined that professionals were needed to monitor the
market to achieve our desired goals. We searched for a
consultant who could help us achieve our objectives
without risking our customer’s deposits. James Baker
& Company has proven to us that a community bank
of $56 million in footings can have a solid investment
strategy with an exceptional asset liability plan.
Although we have made great strides to increase our
investment income, we are not satisfied. We will be
evaluating new options, strengthening our strategies
and implementing our objectives to reach our profit
goals.
□

CONSULTANTS
NATIONWIDE
TOCOMMUNITY
BANKERS
Douglas Austin & Associates specializes in
assisting Community Bankers with special
problems and opportunities. We've done it over
and over again for banks large and small. And[
our specialists can do it lor you. The intricacies
of Mergers, Acquisitions, Bank Sales, Stock
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Studies are no m ystery to us. Call us.

( 312 ) 577-4570

4

m/ \

4

/ \

DOUGLAS
AUSTIN AND
a s s o c ia t e s , in c .

5105 Tollview Drive • Rolling Meadows, IL 60008

Lansing • Toledo

Selecting
alternatives
to municipals

By RICHARD C. SWANBERG
Senior Vice President
First Banks Minneapolis/St. Paul
St. Paul, Minn.

IVEN the near certainty of a tax law change,
G
banks are beginning to pose the question: “ Is
there life after municipal bonds?”
The answer, according to First Bank investment of­
ficers, is a qualified “yes.”
The tax bill is still not in its final form, but a key pro­
vision will probably be the elimination of the deduction
of interest expense to carry municipal bonds.
The bill, HR 3838, has been passed by the House
and presently is under discussion in a Senate commit­
tee, which is conferring with the House. The present ef­
fective date of the bill is January 1, 1986. It is hoped
that the final action will clarify the types of bonds that
can be issued and specify the bill’s effective date.
Without that deduction, there is no advantage for
banks to buy municipal bonds at tax-exempt rates.
Without municipal bonds, the bank’s portfolio of the
future will have a different look.
Bank portfolio managers can expect smaller interest
spreads on their investments because there is no way
to match the taxable equivalent yields of municipal
bonds unless the investor is prepared to take a greater
amount of risk.
Consider the Risks
The portfolio manager should consider investments
in terms of potential credit risk, interest rate risk and
market liquidity risk.
• Credit risk — This element of risk involves an
evaluation of not only the return on the investment but
the return of the principal at maturity. Analyze the in­
vestment’s credit rating as well as its financial state­
ments. Is it a reasonable risk consistent with the
bank’s own credit requirements and policies?
• Interest rate risk — The longer the maturity date
of an investment the greater the risk of price fluctua­
tion as interest rates change. Interest rate risk can be
controlled by the use of shorter maturities with less
rate risk to complement longer term, higher yielding
investments.
• Market liquidity risk — Every investment has dif­


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

19
ferent degrees of marketability and liquidity. Market­
ability is the ability to sell an investment. Liquidity is
measured by the spread given up to sell an investment
compared to its original cost. Government securities
generally have the highest degree of marketability and
liquidity, while private placement investments probab­
ly have the least.

Consider the Options
Bankers can consider a number of options to fill the
municipal bond void.
Government securities are very safe and liquid but
do not provide the generous yields the banker has
come to expect from municipals.
Federal agency securities are also very safe with
good marketability. However, the yield spread over
governments should be enough to compensate for the
fact they Eire not direct obligations to the U.S. govern­
ment.
Mortgage backed securities may be backed by the
government through programs like Government Na­
tional Mortgage Association. Others are backed by
agencies or stand on their own. Yields can range up to
about 100 basis points over U.S. Treasury securities.
Negotiable Certificates of Deposits from banks and
other financial institutions must be analyzed carefully
as to credit risk. Depending on the issuer, CDs might
not have a high degree of marketability or liquidity.
Loan participations from upstream correspondents
or neighboring banks must be carefully analyzed to
assure that they meet the purchasing bank’s credit re­
quirements.
Corporate bonds also must be analyzed carefully
from a credit standpoint, just like a loan. The yield
spread over agency or government securities also
should be enough to take on the additional risk.
Consider Bank Policy
After considering these options, and before making
any commitments, the banker should be sure that the
options fit the investment policy of the bank. The
amount of acceptable risk should be defined and in­
cluded in the investment policy and approved by the
bank.
Community banks also are faced with a decline in
loan demand. There is simply not an adequate amount
of quality loans to be made, especially in some agricul­
tural areas. This has caused banks to consider these
other alternative investment options.
One danger is that bank portfolio managers might
abandon their approved asset and liability manage­
ment policies. For example, longer term investments
might be a way to increase earnings, but they can also
play havoc with the rate sensitivity position of a bank.
The rate sensitivity risk of longer term investments
should be assessed so that management and board are
aware of the potential affect on future earnings.
Consult with Correspondent
Generally, there are no free lunches. The return is
usually in direct relationship to the degree of risk.
Because portfolio management may not be a top
priority for a bank’s management, it should consider
consulting with the investment department of its cor­
respondent bank. Investment consultants can provide
more information on the alternatives to municipals
and can assist in planning a portfolio policy to meet
the needs of each bank.
□
Northwestern Banker, March, 1986

20

Nebraska Program Maintains Momentum;

Self-examination re-visited
By BEN HALLER, JR.
Publisher
INCE publication in the May N
S
Banker last year of the article “Nebraska Banking
Department Initiates Self-Examination,” the number
orthwestern

of Nebraska state-chartered banks participating in
this voluntary self-examination program ballooned
from 105 banks at the end of April to 240 banks at
1985 year-end, or approximately 73% of the state-char­
tered banks in Nebraska.
As stated in that earlier article, the program was ini­
tiated by a Kitchen Cabinet of bankers assembled by
Roger M. Beverage, then director of banking. That
group came up with the self-examination process to aid
community bank CEOs and banking department per­
sonnel alike. Its success is attested to by the number of
bankers and examiner staff who have critiqued the pro­
gram and given it high marks after utilizing it for some
months.
Update on Program
Tom Shambo, programmer analyst with the depart­
ment of banking, has been a key figure in development
of the self-examination process from its conception
through its implementation. Responding to several
questions, he gave this update recently on the pro­
gram:
“To date, the program is still voluntary; however,
the numbers are really growing. Immediately follow­
ing publication of the article last spring, our depart­
ment conducted six seminars in May that we had
already scheduled. There were 105 banks involved in
April and at the end of May we had 134 banks; in June
the number increased to 208, then to 222 in July and
232, or 70.5%, in August. By the end of the year we
had about 240, or about 73%.
“We have up-dated the self-examination forms and
added a definitions section. We promised the bankers
last year that to the best of our ability we would not
change the forms; as a result, only minute changes
have been needed.”
When asked if the Nebraska self-examination re­
ports duplicate information that is obtained from fed­
eral regulatory sources Mr. Shambo commented,
“There is no comparison. The federal UBPR (Uniform
Bank Performance Report) peer spread is a lot wider to
compare with one’s own immediate peers and has a
broader universe. When banks do a ratio analysis with
the UBPR the report is six months old, whereas the
self-exam report is just one month old.”


https://fraser.stlouisfed.org
Northwestern Banker, March, 1986
Federal Reserve Bank of St. Louis

Banker Suggestion
That was a point of constructive critique of the self­
exam report offered by Alice M. Dittman, the highly
respected president of Cornhusker Bank in Lincoln.
Commenting on the “Individual to Peer Group” cate­
gory, Mrs. Dittman said: “My concern with this divi­
sion is that the number of banks is relatively small
and, therefore, perhaps not as valid a comparison as
might be wished. I have just been reviewing the end of
the second quarter ‘June, 1985 Uniform Bank Perfor­
mance Report’ sent out by the FDIC. This report is
voluminous by comparison to the state report. It has,
in my opinion, entirely too much information, but it
does have the benefit of larger numbers and a more
specific peer group nationwide.
“ I would like to see a chart supplied by the FDIC as
to the trend lines for our bank. I would assume that
this would be possible in this age of computers r*~ easi­
ly as printing the numbers. In my opinion, the direc­
tion that a bank is trending toward over time is almost
more significant than a monthly comparison with a
peer group. It would also be possible for the chart to
have shaded areas for a ‘normal’ range.” Mrs. Dittman
then commended the Nebraska department for “pro­
viding these reports to the individual banks on a
monthly basis. The FDIC information seems to be
always well over 90 days old before it is received and,
therefore, is lacking in immediacy. It would be even
more important as a tool for individual banks to have a
monthly report, a month by month trend line chart,
and only about five and not more than 10 ratios com­
puted.”
Comparisons Aid Banks
Mr. Shambo said BancAnalysis, the new organiza­
tion described at the end of this article, can respond to
Mrs. Dittman’s suggestions by comparing within
states and regions, as well as nationally from bankers
expected to take part in the self-exam program from
outside Nebraska. He stated, “We feel that one of the
strong values of this tool is that the reports come
directly from bankers themselves and on a timely,
monthly basis. This brings up another beneficial factor
to this entire process. By doing these reports, bankers
are involved in an educational process and many of
them have told us they now understand a lot better
how their institutions are doing internally.
“Additionally, the self-exam seems to have opened
up more communication between banks and exami­
ners. Both sides know the parameters of this exam pro­
cess and know they are working toward the same
goals.”

21

T E R R IT O R Y

*

IN S T IT U T IO N
IN S T IT U T IO N

R A T IO S
1.
2.
3.
4.
5.
6.
7.
B.
9.
10.
11.
12.
13.
14.
15.
2.
2A.
2B.

1 »
NAME
NUM DER

PEER

GROUP

(A S S E T

ID I V I D U A L

PEER

S IZ E )

$12, H B

C JT Y / S T A T E

C O M PU T ED

E Q U IT Y C A P I T A L / T O T A L A S S E T S
TOTAL LO A N S / TO TAL D E P O S IT S
R E S E R V E S / TO TAL LO A N S
NO N -ACCRUAL LO A N S/T O T A L LO A N S
N O N -AC C RU A L L O A N S /T O T A L E Q U IT Y CAP
90 D AYS P A S T DUE / TO TAL LO A N S
T E M P A S S E T S / V O L A T I L E L .IA B .
N E T I N T E R E S T IN C O M E / N E T A S S E T S
N ET IN T E R E S T S P R E A D
N E T I N T E R E S T M A R G IN
G A P R A T IO
LO A N S SO L D /T O T A L LO A N S
LO ANS PU RC H A SED / TOTAL LO ANS
A C C R U E D IN T .
R E C . /L O A N IN T .
IN C .
N O N - IN T E R E S T IN C O M E / N O N - IN T .
EXP.
FRO M P A G E TWO " Q U E S T IO N S
P R O V I S I O N S FO R LO A N L O S S E S
C H A R G E - O F F S FO R T H E MONTH
R E C O V E R I E S FO R T H E MONTH

9.
56.
0.
2.
15.
0.
0.
4.
4.
4.
12.
2 0.
0.
19.
16.

$
$
$

10.
64.
1.
2.
13.
1.
4B3.
4.
4.
4.
9.
9.
7.
36.
16.

270'/.
550'/.
7B07.
7707.
1707.
0007.
0007.
B 107.
5607.
B807.
7507.
6207.
6507.
6507.
2507.

E N T IR E

GRO UP
94 17.
0097.
7 G 6 7.
53B7.
6227.
9547.
4BB7.
7467.
4B67.
9017.
4057.
9B27.
2337.
2857.
0 0 4 7.

G RO U P

10.
6 3.
1.
2.
1 5.
2.
462.
4.
4.
5.
7.
1 1.
6.
32.
IB .

7177.
0047.
6357.
6347.
6 3 57.
0137.
01B7.
7B67.
4987.
1047.
9207.
0807.
9787.
2567.
3367.

0
0
0

of the numerous monthly printouts sent to individual banks by the Nebraska Banking Department is this origiO NE
peer evaluation sheet. This sample was based on an August 31,1985 printout; the peer group is for banks from $10
million to $16,999,000 in size, and gives key ratios for the 15 categories shown at left. The three printed columns of
figures are for the individual bank in column 1, its peer group in middle column, and the entire group in column at right.
Another form will give the banker and his board a 12-month trend report for his bank, while yet another will give a status
report showing any changes over the past 12 months. A printed exception report is used in-house by examiners.

Nebraska Bankers Offer Comment
This view is supported by two Nebraska bankers.
For example, Patrick W. Kenner, chief operating offi­
cer at Thayer County Bank in Hebron, wrote Mr.
Shambo last fall: “First and foremost, the program at
the outset required us to view numbers and ratios
which we were previously looking at quarterly or an­
nually. Since we began to look at the ratios regularly,
several things happened: 1. We took interest in the
trends we were projecting. 2. We became much more
familiar with the components of the ratios which made
the calculations much less time-consuming to gener­
ate, as well as making us more aware of the underlying
relationships of our financial base.
“Second, the self-exam has laid the data for us to set
our goals. Previously, when the numbers were looked
at irregularly, it was difficult to see where we had been
and where we were going.
“Third, the self-exam has given us a footing for
reporting on a monthly basis to the board of direc­
tors...The self-exam, in my opinion, stimulated our
management’s interest in providing timely monthly re­
ports.’’
John M. Green, president of Wauneta Falls Bank,
Wauneta Falls, stated: “As a manager of a small rural
bank, I think it is an outstanding management tool. It
gives the banker who is in somewhat of a remote en­
vironment a much better handle on specific ratios and
other critical management items that he might not
otherwise look at as closely. “I ’m sure for some man­


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Federal Reserve Bank of St. Louis

agers it’s brought about a better understanding of the
over-all management process in his banking institu­
tion. Now that we’re getting the peer comparisons it’s
even more valuable as a board reporting tool.”
Other States Are Interested
Recognition of the value of this unique new tool has
spread far beyond the borders of Iowa. Mr. Shambo re­
ports that following publication of the article last
spring, and personal contacts with regulators and
bankers in other states, a number of people around the
nation have expressed an interest.
One of them is Marlin D. Jackson, state bank com­
missioner in Arkansas, and a banker well-known to ag
bankers nationwide. Mr. Jackson became very inter­
ested in the self-examination reporting during a visit
to Lincoln last year when he was addressing a Neb­
raska Bankers Association conference. He assigned
Ronny Clay, assistant bank commissioner, to take
charge of the investigation and Mr. Clay made the fol­
lowing report to the N orthwestern B anker last
month.
“Mr. Jackson is quite interested, of course,” Mr.
Clay stated, “and he is considering making it manda­
tory. I visited the Nebraska banking department in
December, 1985 with a dual purpose in mind. We’re in
the process of acquiring computer equipment to auto­
mate our department completely and tie-in our field ex­
aminers with portable units, as Nebraska already does.
Northwestern Banker, March, 1986

22
“Our ‘Self-Examination Program” is patterned
after the Nebraska program. We are utilizing many of
the same ratios they use. We have, however, attempted
to simplify the program and believe it to be self-explan­
atory.
“The program is basically in three parts. The self-ex­
amination form, the general questionnaire and the ad­
ministrative questionnaire. Th self-examination form
and the general questionnaire are to be completed on a
monthly basis. The administrative questionnaire is
planned as a quarterly report. The information regard­
ing the ratios of the self-examination form can largely
be extracted from the bank’s Report of Condition and
Income. These reports are only required quarterly so it
will be up to the individual banks to develop their own
methods of extracting and compiling information for
the other eight months.
“On January 15, 1986, we mailed 13 copies of the
program to various bankers throughout the state.
Their banks are representative of what we perceive to
be the peer groups that will be established. They range
in size from $4 million in total assets to over $100 mil­
lion in total assets.
“The letter that we mailed on the 15th of January
explains what we expect the program to do for us as
the regulatory agency and for the banker. We hope to
have the program implemented by the end of February
or, at the latest, by the end of March. There is a strong
indication that the program will be mandatory.”
The Conference of State Bank Supervisors likewise
has taken a close interest in the Nebraska program.
Mr. Shambo presented the program before a CSBS de­
puty directors’ conference in San Antonio, Tex., last
year and much interest was evidenced by participants.

Will Reports Be Accurate?
One question addressed to Mr. Shambo was, “Will
banks that have real problems take part voluntarily?
How can you determine if a bank at any given time is
not sending accurate, but padded, information?”
Mr. Shambo replied: “These banks have been parti­
cipating in Nebraska. Bankers are definitely concerned
and they’ll do anything to keep from failing. In Neb­
raska we’ve had some banks at the low end of the rat­
ing scale and after using this form they saw how they
could manage their money better and have improved
themselves. That is one of the key purposes of this
reporting—to help the CEO perceive where his bank
actually is, where it is trending, and help him see how
beneficial course corrections may be made.”
Mr. Shambo added that “one bank translates all the
charts to color graphics in a booklet of Trend Analyses
for use at each board meeting.”
In regard to the possibility of padded information,
Mr. Shambo notes, “Doing the composite ratios we
use, we’ve been able to verify 97 % plus accuracy. The
other 3% usually results, we’ve found, because of mis­
understanding. As one banker told us, ‘Why would I
give you any information if I was going to lie? I want
you to tell me how I ’m doing!”
Additional Banker Analysis
Comments from two additional Nebraska bankers
complete the picture. Jerry E. Roe, president of the

Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

Bank of Bennington and a former president of the
Nebraska Bankers Association, says of the self-exami­
nation process, “ It has made some of us use manage­
ment techniques we might not otherwise be utilizing.
It serves to help identify adverse trends before they
become something major. These are very difficult
times and I am grateful for any assistance I can obtain
to be a better manager.”
Similarly, Raymond G. Tiedje, president of the
Bank of Norfolk, and a key player on the Kitchen Cabi­
net team that devised the self-examination states,
“From a banker’s perspective, it has made senior man­
agement aware of the importance of certain key ratios,
and certainly more aware of the asset/liability respon­
sibilities in the day-to-day management of a commer­
cial bank. Our environment is so subject to the volatile
changes in interest rates that it is important for us to
continually review all of these ratios. In addition, this
monthly exercise makes us continually aware of the
safety and soundness of our respective institutions. I
believe that the self-evaluation program is a major
step forward in the banking industry. ’’
□
******

New Corporation Formed
INCE the accompanying up-date story on Nebras­
S
ka’s self-examination program was prepared, it
was learned that a separate corporation, Banc Analy­
sis, has been formed in Lincoln, Nebr., to offer this uni­
que service to banks and regulators in other states.
Organizers include Roger M. Beverage, former Neb­
raska director of banking, as president, and Tom
Shambo, the author of the accompanying article, and
two other department personnel. The latter three con­
tinue on the department staff, devoting their off-time
and vacations at this time to helping form BancAnalysis. The self-exam report was developed in Nebraska
when Mr. Beverage was state director.
Mr. Beverage, who also has a law practice in both
Omaha and Lincoln, said Banc Analysis measures 14
key ratios of banks and provides a monthly report
showing the bank’s current condition as it compares to
the norm, and how it measures up to its peers. He said
BancAnalysis monthly reports may be utilized to:
1.
Compare an individual bank to its peers by asset
size.
2.
Trend a bank’s performance over the past 12month period.
3.
Show the CEO and his directors what changes
have taken place from month to month in an under­
standable format.
4.
Give management a grade on asset quality and
tell the bank’s likely CAMEL rating.
As noted earlier, BancAnalysis provides subscribers
monthly forms which are completed by the bank and
returned to the Lincoln office. Forms received by the
10th will be processed by the 21st and reports returned
to the bank by month end. An 800 number is furnished
so subscribers may confer directly.
□

23

ONE-STOP SHOPPING. ..
(Continued from page 15)
ties and Fed Funds. To diversify
their portfolios many have invested
in mutual funds, generally through a
securities firm.
Attractive Investment Products
At Chase we’ve done several
things to make our investment pro­
ducts more attractive.
• First, we fix the rate on daily
Fed Funds, guaranteeing the open­
ing rate through 2 PM.
• Second, we offer Term Fed
Funds, with a fixed rate for a speci­
fied period of time, between 30 and
180 days.
Both these products are designed
to permit the community bank to
plan and operate in an atmosphere
of greater stability.
• Third, we have added the ele­
ment of diversity, by making avail­
able five money market mutual
funds, specially developed to meet
the needs of the community bank.
Community banks, we have
found, welcome dealing with another
bank, rather than a securities firm,
when investing in these funds.
One-Stop Investment Shopping
Most important, they appreciate
being able to access all these invest­
ment products through one-stop
shopping. With a single phone call
the community bank can reach its
Chase relationship manager and ex­
ecute any or all of these investment
transactions. Our experience also in­
dicates that the Chase relationship
manager can effectively service his
client base in rural areas using tele­
marketing — reinforced, of course,
by a continuing direct mail effort
and by personal contact at industry
meetings and conferences.
We have been able to recruit offi­
cers oriented toward marketing and
client service, with appropriate
credit risk support provided by spe­
cialized staff.
A Response to Change
Community banks remain the
bedrock of our nation’s dual banking
system. Ju st as small businesses
and farmers need community banks,
so do community banks need larger
correspondent partners. We believe
Chase has responded to the chang­
ing nature of community bank’s asset/deposit mix — and to their grow­
ing need for a rounded investment
service. I t ’s a recognition from
which both parties have profited. □


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Federal Reserve Bank of St. Louis

Unbeatable
Support.
LaSalle National Bank supports you. With
more than half a century of ex p erien c e ...
innovative products... responsive service...
and deep commitment to the market.
Our goal is to help you enhance your over­
all performance. LaSalle takes a consulting
approach to correspondent banking, working
closely with you to develop strategies that
improve profits, growth and efficiency. We offer
individualized service an d comprehensive
capabilities, including:
• multiple investment consulting
• credit and financial services
• global trade finance
• merger and acquisition consulting
• trust, treasury and m any other services
In addition, LaSalle ensures dependable,
cost-effective check processing, collections,
loan overlines and the other standards of cor­
respondent banking.
As your Midwestern neighbor, we share
your perspective and regional loyalties. As a
Chicago bank with international resources,
LaSalle c a n share m oney-center b an k in g
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m a n y a d v a n ta g e s w ell w o rth
investigating.
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del a n d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le su p p o rt—with b etter service,
better products and better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

ABN O L A S A L L E “
Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Northwestern Banker, March, 1986

24

the commercial lending department.
His previous experience includes
several years at Drovers Bank of
Chicago and First National Bank of
Chicago.

Appointed in Arlington Hgts.

Purchasing Plans in Peoria

Dennis Kaluso has been ap­
pointed as assistant vice president/
commercial lending officer and Pam
Stevens has been appointed as man­
Appointed in Wheeling
ager of the commercial credit de­
Nels R. Johnson has been ap­ partment at The Bank and Trust
pointed to executive vice president Company of Arlington Heights.
at Main Bank in Wheeling.
Mr. Kaluso joined The Bank and
Mr. Johnson formerly held the Trust in 1983 as manager of the
position of senior vice president in commercial credit department and

A group of prominent Oregon
area residents has announced plans
to purchase the $32 million-asset
United Bank of Ogle County from
Midwest Financial Group, Inc.,
Peoria.
James A. Allen, president of
United Bank of Ogle County and
spokesman for the investor group,
EPOSITS and loan figures for Illinois banks reporting deposits of $200
said a letter of intent was signed
million or more at year-end are shown in the chart below. Com­
January 17 with Midwest Financial parative figures from a year ago are featured.1
Group for the transaction. Mr. Allen
(Last three figures omitted)
said he expects the transaction will
December 31, 1985
December 31, 1984
be completed by June 30.
Deposits
Loans Deposits
Loans
Mr. Allen and four other current
1. The First Natl. Bank of Chicago............ $24,334,226$20,735,885$25,904,344$22,960,597
directors of the bank are investors in 2.
Continental Bank, Chicago.................... 17,759,000 20,054,000 15,056,000 23,970,000
the soon to be formed Blackhawk 3. Harris Bank, Chicago ............................ 5,535,744 4,519,562 5,465,559 4,085,900
Bancorporation, Inc. The bank is ex­ 4. Northern Trust, Chicago........................ 4,407,239 3,330,168 4,399,824 3,166,401
pected to be renamed and Mr. Allen 5. American Natl. B&T, Chicago................ 2,827,747 2,236,052 2,626,030 1,998,096
840,586 1,055,219
763,341
6. Exchange Natl., Chicago ......................
1,120,200
said he will continue as president.
7. LaSalle Natl. Bk., Chicago ....................
822,000
995,000
743,000
1,055,000
The four other director-investors 8. Bank for S&Ls, Chicago ........................
602,506
147,361
660,159
205,500
include: Roger L. Etnyre, secretary, 9. Amcore Bk., N.A., Rockford2..................
349,924
585,463
345,483
222,106
335,982
550,487
319,987
571,248
E.D. Etnyre and Co., Oregon; 10. Northwest Natl., Chicago......................
551,672
277,617
519,023
259,833
Thomas G. Klein, secretary, Oregon 11. Lakeview T&S, Chicago..........................
12. Natl. Boulevard Bk., Chicago................
541,973
474,132
440,824
367,813
Stone Quarries, Inc.; Fred Smith, 13.
Lake Shore Natl., Chicago ....................
499,547
456,757
360,363
372,509
president, Cook M anufacturing 14. Marine Bank of Springfield....................
367,879
498,788
479,880
369,013
Company, Oregon, and Walter E. 15. First Natl. Bk. of Evergreen....................
448,077
144,567
496,463
139,350
469,784
277,684
334,270
430,078
LeFevre, a Mt. Morris farmer and .16. First Illinois Bk. of Evanston, N.A..........
17. Citizens B&T, Park Ridge ......................
463,567
282,752
327,906
420,508
cattleman.

Largest Banks in Illinois

D

Pres. Elected in Coal City
Keith Roseland has been elected
president of the First National Bank
of Coal City.
Mr. Roseland joined First Na­
tional Bank 18 years ago as a teller.
In 1978, he was promoted to assis­
tant vice president, cashier. In 1981,
he was promoted to vice president,
cashier; and in 1984, executive vice
president.

Promoted in Morton Grove
Morton Grove Bank has an­
nounced the promotion of David
Wattenberg to senior vice president.
Mr. Wattenberg had served as
vice president for the Morton Grove
Bank since 1984. Previously, he was
vice president at the First National
Bank of Highland Park.


Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

Gary Wheaton Bk., Wheaton ................
403,493
234,876
336,355
388,064
218,527
Unibanc Trust, Chicago ........................
402,925
State Natl. Bk., Evanston ......................
212,612
379,495
363,310
Commercial Natl. Bk., Peoria................
350,392
248,142
329,103
Mount Prospect State Bk........................
345,878
221,141
326,983
First Natl., Des Plaines..........................
339,712
242,983
304,143
305,824
First Natl. Bank, Highland P a rk ............
339,163
209,856
First Natl. B&T, Barrington....................
323,068
175,545
309,718
First Natl. Bk., Belleville........................
321,487
248,322
271,086
Oak Park T&S, Oak P a rk ........................
320,683
173,127
288,506
317,754
160,283
281,138
First Natl. Bk., Lake Forest....................
Elmhurst Natl. Bk.....................................
315,398
161,258
294,438
309,549
200,226
258,758
First Natl. B&T, Rockford......................
304,334
288,723
First Natl., Skokie ..................................
150,991
304,132
226,128
302,618
Bank of Ravenswood, Chicago ............
First Natl. Bk., Springfield ....................
295,408
183,729
280,163
280,117
293,431
149,226
Glenview State B ank..............................
Marquette Natl. Bk., Chicago................
285,845
123,440
243,356
120,876
261,475
283,635
Mid-City Natl. Bk., Chicago....................
264,814
111,402
230,025
South Holland T&S Bank........................
264,551
179,898
233,289
Commercial Natl. Bk., C h ic a g o ............
253,534
262,714
156,705
Colonial B&T, C hicago ..........................
237,237
260,058
105,959
First Natl. Bk. Quad Cities, Rock Island
168,768
225,361
244,713
Illinois Natl. Bk., Springfield..................
176,599
231,539
241,620
Pioneer B&T, Chicago............................
217,388
147,916
203,639
Millikin Natl. Bk. of D ecatu r..................
233,414
217,539
122,851
First Natl. Bk. of Joliet............................
1 Chicago-Tokyo Bank, Chicago figures were not available.
2 American National Bank & Trust, Rockford and Illinois National Bank
Rockford have merged into Amcore Bank N.A., Rockford.

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.

186,485
270,674
195,969
241,825
205,682
178,322
182,935
151,546
209,748
153,498
136,841
138,667
184,896
169,610
227,969
174,767
139,784
90,579
104,005
115,687
141,605
146,705
103,097
165,538
162,437
139,327
121,969

& Trust,

25
Agricultural Credit of the Illinois
Bankers Association.
Ms. Hardy’s background includes
15 years in correspondent banking,
the past seven with Drovers Bank.
One of the chief functions of the
committee is to plan the associa­
tion’s annual Agricultural Credit
Conference, which will be held at the
Holiday Inn Conference Resort in
Decatur on September 17 and 18.
In planning the conference the
committee will identify issues of key
importance to ag bankers and sug­
gest workshop themes and speakers
for the one and a half day program.
During 1986, the 14-member com­
mittee will also serve the association
in a consulting capacity, providing
input for the association’s policy de­
cisions on state and federal agricul­
tural banking issues.
Illinois News

has more than 15 years accounting
'and credit experience.
Ms. Stevens joined The Bank and
Trust in 1985 as credit analyst in the
commercial credit department. Prior
to her employment at the bank, she
rwas an associate financial engineer­
ing planner for Northrop Corpora­
tion.

►kokie Bk. Offers New Acct.
A new type of checking account
has been introduced at Skokie Trust
and Savings Bank. The Tiered Inter­
est NOW Account is designed to of­
fer the convenience of a checking ac­
count and interest rates comparable
to a money market.
Balances between $1,000 and
^4,999 will earn 5 Vi percent interest
and balances exceeding $5,000 will
earn Vi percent under Skokie Trust’s
existing money market rate. Inter­
est is compounded on a daily basis.
_ When a minimum balance of
$1,000 is maintained, there is no ser­
vice charge and customers can write
an unlimited number of checks. A
free Money Network card is also
ivailable with the account.

BpilliS «i ill i l i c i

in speedier processing and a reduc­
tion of operational expenses.
The addition of the FHLB mem­
bers brings the total number of insti­
tutions serviced by NICH to 187,
with an expected doubling of pro­
cessing volume in 1986. Presently,
NICH is th fifth largest clearing­
house in the country as measured by
the number of clearing institutions
and settlements of items.
* * *
Richard K. Pearson has been
named president and CEO of North­
brook Trust and Savings Bank, and
Michael Polanski has been named
president and CEO of Pioneer Bank
and Trust Company, both units of
the Lane Bank group.
Mr. Pearson, former president of
Pioneer Bank, replaces Larry G.
Gillie, who resigned to pursue perso­
nal business interests, but will re­
main a consultant to the Lane Bank
organization.
Mr. Pearson began his career in
1962 as a bank examiner with the
Federal Reserve Bank and in 1969
joined Pullman Bank in its credit
department. Later he was promoted
to vice president of the lending divi­
sion. In 1976, he was named presi­
dent of Seaway National Bank
before being appointed as president
of Pioneer Bank in 1982.
Mr. Polanski began his career in
1972 with Central National Bank as
a commercial lender. In 1982, he
joined Pioneer Bank as senior vice
president of lending and became
head of loan administration at the
Lane Banks in 1985.
* * *

* * *

Bette B. Daniels was recently
elected as treasurer of the Chicago
Finance Exchange for 1986.
The Exchange is a Chicago metro­
politan area organization composed
of approximately 200 senior-level
corporate women executives and
women business owners who are ac­
tive in finance. The group focuses on
increasing members’ expertise in
various areas of finance and on pro­
motion of business contacts among
members.
Ms. Daniels has been in banking
for 18 years and is currently senior
vice president/community banking
at The Bank and Trust Company of
Arlington Heights.
* * *

Dennis F. Voss has resigned his ti­
tle as chairman of the board of First
State Bank of Chicago, but not his
affiliation. He will now take over the
duties and title of chairman of the
executive committee. Succeeding
Mr. Voss is Joseph D. Zizzo. Mr. Zizzo will remain as vice chairman of
the board of Parkway Bank and
Trust Company, as well as becoming
chairman of the executive commit­
tee.

Bricklayers and Stone Masons
Local #21 of Illinois has committed
$6 million of pension funds to offer
je«??y
conventional and FHA/VA mor­
tgage loans to new-home buyers in
the Chicagoland area.
The Federal Home Loan Bank of
The construction trade union has
licago (FHLB) and the Northern
invested the money to Amalga­
inois Clearinghouse (NICH) have
mated Bank of Chicago’s “Union
(mnounced that 124 members of the
Built and Financed Housing Pro­
federal Home Loan Bank system
gram.’’
ive agreed to exchange checks and
According to Walter Laughlin,
* * *
ictronically settle balances with
president of Local #21, the program
le 64 members of NICH.
captures the true essence of how
According to FHLB vice presi­
unions can help prospective home
dent Everett Lockenvitz, this is
Kathleen T. Hardy, vice presi­ buyers in the area while securing
lought to be the first “clearing- dent, correspondent banking of Dro­ jobs for their tradesmen.
juse-to-clearinghouse” venture in vers Bank of Chicago, has been ap­
The program is expected to fund
le country. He expects it will result pointed to the 1986 committee on over 100 homes.

Chicago]


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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 1986

26
pres., First Wisconsin, Eau Claire,
and Past-President—Arne Stovring,
exec, vice pres., Shell Lake State.
WBA President Dean Treptow,
president, Brown Deer Bank, spoke
at the morning business session. Mr.
Treptow updated bankers on asso­
ciation activities, including a blan­
ket bond insurance program which
will be provided through WBA.
Touching on the agricultural situa­
tion, Mr. Treptow informed bankers
that the WBA has commissioned
the University of Wisconsin to do a
farm study on how to deal with agri­
cultural problems, “especially with
spring planting time upon us,” Mr.
Highlighting the business session Treptow said.
HE Group One bankers of the
Wisconsin Bankers Association was the election of officers for the
WBA Executive Director Bryan
met in Minneapolis last month for 1986-87 year. Elected were: Presi­ Koontz followed with an update on
their 82nd Annual Meeting. The at­ dent—John Midthun, exec, vice banking legislation concerns, includ­
tractive surroundings of the Hyatt pres., Northern State, Ashland; Vice ing interstate banking; the possible
Regency provided a pleasant atmo­ President—Robert Peterson, pres., merging of the FDIC and FSLIC;
sphere for the annual Valentine- Pioneer National Ladysmith; Secre- the condition of state agriculture,
tary/Treasurer—Richard Hansen, and the survival of rural America.
weekend meeting.
Mr. Koontz said, “Small town survi­
val depends on whether banks have
the tools to rejuvenate the local com­
munities — the backbone of Wisconsin.
An informative conclusion to the
morning business session included
presentations by Richard Galecki,
commissioner of banking, Wiscon­
sin; Walter Thompson, regional di­
rector, FDIC, Minneapolis, and
John Knight, general counsel,
WBA.
First Wisconsin Bank of Milwau­
kee and Eau Claire sponsored their
annual breakfast this year. Other
highlights included a special lun­
cheon speaker, Mike Podolinsky
from Minneapolis, and a Saturday
VISITING during the morning business session were, left: Bob Peterson, pres., Pioneer
evening banquet with entertainment
Natl., Ladysmith and v.p., Group One; Arne Stovring, exec, v.p., Shell Lake St. and pastfrom Colleen Raye and Steve
pres., Group One; Dean Treptow, pres., Brown Deer and pres., Wisconsin Bankers Associa­
tion, and John Midthun, exec, v.p., Northern St., Ashland and pres., Group One.
Grimm, a Las Vegas-type show.

Group 1 Meets in Minneapolis

T

99

LEFT— Enjoying themselves during the annual First Wisconsin Breakfast were, seated left to right: Phyllis Kramp, Lucille Ruttinger, who
will be retiring at the end of March after thirty-plus years with First Wisconsin, and Bev Keller. Standing, Don Kramp, 1st v.p., and Harvey
Keller, v.p., both with First Wisconsin, Milwaukee. RIGHT—Chuck Forster, v.p., First Wisconsin, Eau Claire, with Bob Peterson, pres.,
Pioneer Natl., Ladysmith and v.p., Group One, and Dick Hansen, pres., First Wisconsin, Eau Claire, and secy./treas., Group One.

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

27
Mr. Shepardson joined the bank
in 1983 and has served as teller and
internal auditor before being pro­
moted to loan officer. He also
handles the marketing and compli­
ance responsibilities at the bank.
Wisconsin News

Milwaukee Bank Acquired

Promoted in Pulaski

Pulaski State Bank has an­
In a joint announcement, David
C. Beck, president and CEO of First nounced the following promotions:
Interstate Corporation of Wiscon­ Norbert J. Peplinski was named
sin, Sheboygan, and Zachary Take- chairman; C. Michael Allen was pro­
rian, president and CEO of Mid-Con­ moted to president, and David H.
tinental Bancorporation, Inc. of Mil­ Shepardson was promoted to assis­ Promotion in Manitowoc
waukee, said they have reached an tant vice president.
Associated Manitowoc Bank,
Mr. Peplinski served as president
agreement in principal calling for
Manitowoc,
has announced the pro­
the acquisition of Mid-Continental of the Pulaski State Bank since 1958
succeeding his father John A. Pep­ motion of Gordon J. Weber to execu­
by First Interstate.
Under the agreement, Continental linski, who was the original founder tive vice president.
Mr. Weber has been with the bank
Banks will change their names to of the bank in 1910.
since
1970.
Mr.
Allen,
who
joined
the
bank
in
First Interstate Bank of Wisconsin
1981,
has
over
15
years
of
experi­
and participate in the Sheboyganbased bank holding company’s fran­ ence in agriculture, commercial and WISCONSIN NEWS. . .
(Turn to page 44, please)
chise program with First Interstate real estate lending.
Bancorp of Los Angeles, Calif.
The acquisition process, which is
subject to regulatory and adminis­
trative approvals, is expected to
take at least six months.
Upon completion of this affilia­
tion, First Interstate Corporation of
EPOSITS and loan figures for Wisconsin banks reporting deposits of
Wisconsin, together with pending
$100 million or more at year-end are shown in the chart below. Com­
acquisitions in Appleton and Green parative figures from a year ago are featured.
Valley, total assets will approximate
(Last three figures omitted)
$1.5 billion with 39 offices through­
out Wisconsin.
December 31, 1985
December 31, 1984

Largest Banks in Wisconsin

D

Four Promoted in Sheboygan
Timothy Beaton has been pro­
moted to executive vice president of
First Interstate
Trust Company,
Sheboygan. He
joined First In­
terstate in 1984
as vice president
in the personal
trusts area and
was promoted to
senior vice presi­
dent last year.
T. BEATON
From 1980 to
1984, he served as vice president at
First Wisconsin National Bank in
Fond Du Lac, where he managed the
trust office and the trust and invest­
ment management division. Prior to
that he served as an officer of First
Wisconsin Trust Company, Milwau­
kee.
Jeffrey Morgan has been pro­
moted to regional vice president of
the southern office at First Inter­
state. He is also responsible for mar­
keting and administration of em­
ployee benefit accounts.
David Fleming has been pro­
moted to regional assistant vice
president of the southern office and
Wayne Stretsbery has been pro­
moted to regional assistant vice
president of the northern office.

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

Deposits
Loans Deposits
Loans
First Wisconsin Bk., Milwaukee............ $2,887,542 $2,598,439 $2,738,699 $2,560,289
M&l Marshall & llsley Bk., Milwaukee1..
1,528,000 1,136,000 1,129,000
888,000
Marine Bank, N.A., Milwaukee..............
1,114,981
969,955 1,130,184
983,475
748,274
First Bank Milwaukee, N.A......................
629,962
465,739
594,251
Marine Bk. West, Waukesha2 ................
507,650
316,395
265,167
167,659
First Wisconsin Natl. Bk of Madison . . .
265,067
450,900
402,090
257,717
First Interstate Bk. Wis.-Sheboygan . ..
425,612
278,186
398,203
263,593
262,067
Associated Kellogg Bank, Green Bay ..
339,888
324,922
227,968
289,955
179,736
159,791
Heritage B&T, R a c in e ............................
253,025
M&l Northern Bank, Brookfield ............
236,657
160,452
227,655
144,335
231,487
104,990
41,591
Marine Bk. South, N.A. Kenosha3..........
148,329
M&l Bk. of Hilldale, Madison ................
175,044
221,460
201,749
150,732
211,162
First Natl. Bk. of Kenosha......................
86,776
190,576
96,489
Peoples Marine Bk., Green B a y ............
210,759
134,537
206,035
137,785
Valley Bank, Appleton............................
203,947
145,876
188,107
141,244
195,900
137,640
First American Natl. Bk. of Wausau . . .
192,808
122,636
Valley Bank, M adison............................
178,487
193,440
138,093
147,613
Security First Natl. Bk., Sheboygan
161,607
148,402
192,956
180,508
First Wisconsin Natl. Bk., Eau C laire...
183,082
122,528
168,183
106,963
F&M Bk., Menomonee F a lls ..................
106,804
177,433
126,879
149,590
Valley Bank, Green Bay..........................
176,990
131,592
175,244
131,731
Marine Bk. Dane County, Madison........
128,697
79,287
166,006
95,499
M&l Wauwatosa State Bank..................
160,760
55,950
147,949
48,407
M&l Bank of Madison ............................
157,442
99,298
162,568
105,186
First Wisconsin Natl. Bk., Oshkosh
156,804
106,119
150,832
97,353
Associated Manitowoc B a n k ................
156,638
89,745
146,481
77,061
Natl. Exchange Bk., Fond du L ac..........
149,056
96,218
140,277
86,755
First Wisconsin Natl. Bk., Fond du Lac .
146,625
80,566
143,996
80,929
Waukesha State Bank............................
144,654
127,084
117,086
88,162
First Interstate Bk. of Wisconsin, N.A.4.
125,664
134,001
89,646
96,351
Norwest Bk. La Crosse, N.A....................
133,774
99,008
133,518
100,463
Associated First Neenah Bk...................
130,913
90,949
122,011
82,910
88,714
129,081
Bank of Sturgeon B a y ............................
121,869
82,450
Marine First Natl. Bk., Janesville..........
126,742
86,760
125,373
85,260
First Natl. Bk., Stevens P o in t................
61,682
113,690
74,795
106,400
M&l Bank of Beloit5 ................................
111,960
59,742
107,583
58,100
Park State Bk., Milwaukee ....................
104,803
53,279
100,633
55,765
1 Heritage Bank, Milwaukee and Milwaukee Co. Bank-West Allis have merged into M&l
Marshall & Isley Bk., Milwaukee.
2 Formerly Independence Bank, Waukesha.
3 Independence Bank, Kenosha, N.A. and Marine First National, Racine merged into
Marine Bank South, N.A., Kenosha, Sept. 14, 1985.
4 Formerly American National Bank & Trust Eau Claire.
5 Formerly Heritage Bank Beloit.

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.

Northwestern Banker, March, 1986

Some things have to change
At Marquette Bank Minneapolis, we feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it shows. . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our willingness to roll up our
sleeves, to work with you, to deliver all the

resources of a billion dollar bank to help
you meet the challenges of today, and
tomorrow.
Technologies and services change, but our
attitude hasn’t. Because Marquette Bank
Minneapolis will never put aside our oldest
promise to our customers: professional
service with a personal difference.

Marquette Bank
Minneapolis

Member FDIC

Correspondent Services Division

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

Norwest Announces Sale of Eight Banks
ORWEST Corporation has an­
N
nounced it has agreed to sell
eight of its banks
in southern Min­
nesota and seven
branch offices in
South Dakota.
In Minnesota,
Norwest Banks
in Dawson, Luverne, M onte­
video and Ortonville will be sold
M.D. McVAY
to M innw est,
Inc., a newly-formed bank holding
company founded by M.D. McVay,
retired president of Cargill, Inc., and
a former director of Norwest Bank
Minneapolis.
Norwest Banks in Redwood Falls,
Slayton and Tracy will be sold to
Minnesota Valley Bankshares, Inc.
a newly-formed bank holding com­
pany of which John A. McHugh, a
Minneapolis attorney, is chairman
and CEO.

J.A. McHUGH

L. AMUNDSON

The Norwest Bank in Dodge Cen­
ter is being sold to State Bank of
Byron, owned by Lloyd Amundson.
Mr. Amundson owns seven other
banks in Minnesota and Michigan.
In South Dakota, Norwest is sell­
ing branch offices in Britton, Bris­
tol, Hecla, Lake Preston, Newell,
Parker and Springfield to First Na­
tional Bank of Beresford, which is
owned by Frank Farrar. Mr. Farrar
owns 18 banks in Indiana, Illinois,
K ansas, M innesota, M ontana,

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Federal Reserve Bank of St. Louis

North Dakota, South Dakota and
Wyoming.
Lloyd P. Johnson, Norwest’s
chairman said that Norwest will
continue to support the new owners
in the respective communities after
the sales through loan participa­
tions and other correspondent ar­
rangements. Mr. Johnson said the
banks are being sold because “...we
simply have more banks than we
need in these areas.”

F. FARRAR

L.P. JOHNSON

According to Mr. Johnson, all
four buyers have indicated their in­
tentions in keeping the existing
staffs and management personnel
intact. The 15 locations have 193
employees collectively.
In response to the bank sale, Mr.
McHugh, who will be owner of three
of the banks, said in a prepared
statement, “We realize we are enter­
ing the rural banking business at a
time of turmoil. Rapid change is tak­
ing place in farming and in banking
as well.
“While we believe there may be
several more years of financial hard­
ship for farmers, we do expect that
conditions will eventually improve.
World demand for food will continue
to grow, and the U.S. will surely
regain some part of its export mar­
kets.
“We have faith in these towns and
these banks. We intend to be a vital
part of the economic recovery ahead.
We believe the banks, as indepen­
dent institutions rather than as

29
members of a large regional system,
can stay even closer to their custo­
mers, and can even better serve the
financial needs of their communi­
ties, because our economic futures
are intertwined.”
The combined assets of all 15 loca­
tions totaled $326 million as of yearend 1985, less than 1.6 percent of
the company’s total assets.
Negotiations for sale of the insti­
tutions began in 1984 under the di­
rection of John Sampson, then vice
president for corporate development
who was named last month as senior
vice president and manager of the fi­
nancial institutions group at Nor­
west Bank Minneapolis. Mr. Samp­
son stated, “Early on in the project,
Lloyd Johnson told me he wanted to
be able to announce all sales on the
same day. He wanted to minimize
disruption and uncertainty on the
part of our customers, communities
and employees.” That was accom­
plished, he said, by confidential
negotiations.
Mr. Sampson said Norwest de­
cided it was appropriate from a stra­
tegic standpoint in 1984 to reduce
the number of Norwest banks in the
defined areas.
The sales are expected to be final
within six to nine months, pending
regulatory approval. Terms of the
transaction were not disclosed.
When the sales are completed,
Norwest will have 69 banks.

Third Generation Pres.
Named in Grand Rapids
Steven M. Wilcox has become a
third generation president at Grand
Rapids State Bank. He succeeds
Claude Wilcox, who was elected in
1943, and Clair Wilcox, elected in
1959. Clair C. Wilcox continues as
chairman.

Promoted in Wheaton
Marques J. Doppler has been pro­
moted to vice president of First
Bank Wheaton, N.A.
Mr. Doppler began his banking
career in 1980 with First National
Bank and Trust Company of Bis­
marck, N.D. as a management
traineee. He transferred to First
Bank Wheaton in 1982 as an install­
ment loan officer and has been servNorthwestern Banker, March, 1986

Minnesota News
30
ing as assistant vice president since
1984.

Largest Banks in Minnesota

Elected in Fergus Falls
Charles L. Kretchman, president
of Norwest Bank of Fergus Falls, re­
cently announced
the election of
Donna Piekarski
as
p e rso n a l
banking officer.
Ms. Piekarski
joined the staff
at Norwest Bank
in 1963 and has
served in various
c a p a c itie s inp. p ie k a r s k i
eluding custo­
mer service officer. Ms. Piekarski
has also held positions at Fargo Na­
tional Bank, Fargo, N.D. and Graf­
ton National Bank, Grafton, N.D.

Promoted in Sargeant
First American State Bank of
Sargeant has announced the promo­
tion of Joseph W. Collins to execu­
tive vice president and director.
Mr. Collins joined the bank in
1985 as vice president and senior
lending officer. His banking career
began in 1959 in Austin.

Wayzata Bank Promotes Two
Brad Krohn has been promoted to
executive vice president and senior
loan officer and Sarah Arett has
been promoted to vice president and
senior financial officer at Wayzata
Bank and Trust.

B. KROHN

S. ARETT

Mr. Krohn began with the bank in
1981. He had 11 years banking ex­
perience prior to joining Wayzata
Bank.
Ms. Arett joined the bank in 1983
and was formerly with Touche Ross.

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EPOSITS and loan figures for Minnesota banks reporting deposits of
D
$70 million or more at year-end are shown in the chart below. Com­
parative figures from a year ago are featured.1
(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.

December 31, 1985
December 31, 1984
Deposits
Loans Deposits
Loans
$5,415,656 $5,211,453 $4,683,775 $4,492,856
4,291,095 3,765,092 4,549,454 3,898,284
3,162,067 2,717,902 3,003,658 2,629,972
982,887
873,505
891,442
1,027,646
389,022
381,982
454,934
409,036
334,449
349,938
399,505
411,116
255,400
255,207
348,105
350,401
187,148
182,941
289,111
302,157
213,757
264,858
215,590
286,280
253,086
186,629
197,373
264,966
172,550
235,652
243,094
165,030
172,606
206,172
213,988
235,870
220,062
177,233
220,194
229,064
164,718
222,928
208,464
152,540
163,921
228,009
168,066
206,878
141,746
148,735
186,910
194,965
180,875
210,999
154,642
193,308
166,424
182,589
181,911
186,319
222,097
118,269
117,830
182,301
146,925
169,732
130,290
169,671
93,732
149,812
97,788
168,923
149,637
91,915
110,481
163,255
119,840
157,273
122,322
162,583
136,262
101,499
102,944
153,432
104,298
133,902
111,118
153,325
98,998
136,248
103,255
152,800
94,428
141,226
88,540
150,830
98,889
138,000
148,537
104,631
114,529
133,101
128,118
145,829
100,298
106,704
130,731
142,753
75,077
107,188
90,156
140,212
113,912
128,772
131,424
114,406
97,191
131,335
86,523
131,010
79,600
129,715
54,164
121,245
86,656
95,676
113,601
119,653
76,971
103,830
78,832
113,636
76,661
110,261
76,149
112,515
100,760
53,620
63,182
111,827
85,125
79,895
103,206
103,654
59,237
101,030
58,263
102,983
71,898
98,863
66,185
101,539
62,952
97,413
48,283
100,346
86,062
51,946
59,670
98,180
72,755
99,114
72,222
96,895
58,212
89,791
94,054
57,809
93,257
62,600
63,943
93,643
53,408
89,240
51,065
93,568
66,577
56,442
91,546
93,402
67,138
90,567
65,436
92,889
62,138
102,298
64,035
91,895
85,094
51,713
62,443
89,945
97,762
55,439
38,032
81,895
76,571
40,370
43,652
81,197
63,765
76,265
67,085
80,888
59,273
67,124
77,319
80,713
39,028
78,837
41,316
79,900
62,077
76,083
56,698
78,915
49,351
71,286
54,500
75,672
51,693
69,900
49,158
75,043
39,590
69,627
41,803
72,954

First Bank Mpls........................................
Norwest Bk. Minneapolis, N.A................
First Natl., St. Paul..................................
F&M Marquette Natl., Mpls.....................
Norwest Bank St. Paul, N.A....................
American Natl. B&T, St. P a u l................
Natl. City Bk., Mpls..................................
First Bk. Duluth, N.A.2 ............................
Norwest Bk. Midland, N.A., Mpls............
First Bank Lake, N.A.,Mpls.....................
Norwest Bk. Bloomington, N.A...............
First Natl., Hopkins................................
First Southdale Natl., E dina..................
First Natl., Rochester............................
Norwest Bank Duluth, N.A......................
First Edina Natl. Bk..................................
Norwest Bk. Rochester, N.A...................
First Bank East, St. P a u l........................
Midway Natl., St. P a u l............................
Norwest Metro West, N.A., Hopkins . . .
Community State Bk., Bloomington . . .
Richfield B&T, R ichfield........................
Norwest Bk. Central, N.A., Mpls.............
Commercial State, St. Paul....................
Fidelity Bk. N.E., Mpls..............................
First Natl., Anoka....................................
Merchants Natl. Bk., W in o n a................
First Bank Robbinsdale..........................
First American Natl., St. Cloud..............
Wayzata B&T Co.......................................
Eastern Heights State Bk., St. Paul . . . .
Norwest Bank Mankato, N.A..................
Norwest Bk. Calhoun-lsles, N.A., Mpls..
First Natl. Bk., Austin ............................
First Grand Ave. St. Bk., St. Paul ..........
Zapp Natl. Bank, St. C lo u d ....................
Norwest Bk., Mesabi, N.A.3 ....................
First Natl. Bk., Bemidji ..........................
First Natl. Bk., Mankato ........................
Norwest Bk. Maple G rove......................
Norwest Bank Moorhead, N.A................
Norwest Bk. Camden, N.A.......................
Liberty State Bank, St. P a u l..................
Norwest Bank, Winona, N.A...................
First Natl. Bk., Stillwater........................
Norwest Bank Fairbault, N.A..................
Citizens B&T, Hutchinson......................
Norwest Bank Marshall, N.A..................
Norwest Bk. South St. Paul, N.A.............
Norwest Bank Owatonna, N.A................
Marquette B&T, Rochester....................
First Natl. Bank, Worthington ..............
Winona Natl. Savings Bk.........................
Norwest Bank, St. Cloud........................
Norwest Bank East St. P a u l..................
First State Bk., New Brighton................
Norwest Bk. Grand Rapids, N.A.............
Citizens State Bk., St. Louis Park..........
Norwest Bk. Fergus Falls, N.A...............
First Natl. Bk., Montevideo....................
1 First Bank Minnesota, N.A., Virginia information not available.
2 Formerly Northern City National Bank, Duluth.
3 Formerly Norwest Bank Virginia.

Minnesota News

31

LEFT— MBA Pres. Clinton D. Kurtz (center), pres., Citizens State, Norwood, is pictured with Minnesota legislature leaders—The Hon.
David M. Jennings (left), Speaker of the House, and the Hon. Roger D. Moe (right), Senate Majority Leader. RIGHT— Participants in the
“Banking Legislative Issues” panel were, from left: Truman Jeffers, MBA exec. v.p. and panel moderator; John M. Lundsten, chmn. MBA
legis. comm. & pres., Buffalo Natl.; Patrick W. Colbert (standing), chmn. MBA Bank Mgmt. Comm. & pres., American State, Bloomington;
Leslie W. Peterson, chmn. MBA Ag Task Force & pres., Farmers State, Trimont, and John S. Jackson, MBA genl. counsel.

Minnesota Bankers Host Legislators
By BEN HALLER, JR.
Publisher
ENIOR officers of banks attend­
S
ing the Minnesota Bankers As­
sociation’s Senior Bank Manage­
ment Conference and Salute to Leg­
islators at the Radisson St. Paul
Hotel February 11-12 had an oppor­
tunity to visit with 146 of their state
legislators.
Chairman of the MBA Bank Man­
agement Committee and presiding
at the conference was Patrick W.
Colbert, president of American
State Bank, Bloomington. Commit­
tee Vice Chairman is Joseph Nordlund, president of First State Bank,
Apple Valley.
The opening program Tuesday af­
ternoon featured banker and legisla­
tor panels on “Legislative Issues —
’86.” It was followed by the “Salute
to Legislators” reception and din­
ner.
The Wednesday program pro­
vided a breakfast meeting outlining
details of MBA insurance offerings,
and a general session featuring four
speakers. The conference concluded
with a luncheon at which ABA Pres­
ident-Elect Mark W. Olson, presi­
dent, Security State Bank, Fergus
Falls, was the speaker.
State Legislative Issues
MBA E.V.P. Truman Jeffers mo­
derated the panel of bankers who re­
viewed state and federal legislative
issues. He said “some of the solu­

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Federal Reserve Bank of St. Louis

tions offered to resolve the ag crisis
merely dilute the lender’s interest.”
He noted also that the issues of “de­
tached facilities and interstate bank­
ing are still alive.”
Les Peterson, chairman of the
MBA Task Force and president,
Farmers State Bank, Trimont, said,
“The debt overhanging this area
cannot be serviced with the income
from the farms in the area... 10% to
15% of the farm operators out there
are hopelessly broke—they’re look­
ing for a way out, for solutions.
Caught in the middle are lenders
who are forced to pay for the debt
burden of those who are going
broke, and pass along the cost to re­
maining customers. This leaves us
with the need to educate our state
legislators to know how all these
pieces fit, and how we are supposed
to finance the local community.”
Mr. Peterson discussed several
bills, pointing out the detrimental
effect of moratorium and drawn-out
mediation on lenders holding live­
stock chattels. Other bills, he said,
would by-pass lenders’ traditional
secured position.
MBA General Counsel John Jackson went into greater detail on a
number of bills listed in a multi-page
legislative handout provided each
registrant. He was joined in that
presentation by John M. Lundsten,

chairman of the MBA legislative
committee and president of Buffalo
National Bank.
The Hon. Roger D. Moe, Senate
majority leader, and the Hon. David
M. Jennings, Speaker of the House,
gave bankers a quick review of the
1986 Legislative Session. The medi­
ation bill, budget shortfall, the ag
crisis and the liability insurance
crisis occupy a great deal of legisla­
tive time, they stated. They are try­
ing to find ways to address a $384
million budget shortfall without
raising taxes. An extended question
and answer period followed their
brief presentations.
Evening Banquet
At the evening banquet, MBA
President Clinton D. Kurtz, presi­
dent of Citizens State Bank, Nor­
wood, told the legislators in his brief
remarks, “We’re in favor of volun­
tary communication and mediation
service. The University of Minneso­
ta already has an excellent media­
tion service and has trained many
mediators. The MBA has spent sup­
port money on this cause in the past
and I am happy to announce tonight
that the MBA will commit itself to
at least $100,000 support of this pro­
gram. This money comes from 250
banks to date and we’ll add to that
figure as contributions are received
Northwestern Banker, March, 1986

32

Minnesota News

from more Minnesota banks.” He
gave special thanks to First Bank
System and Norwest Corporation
“for substantial contributions on be­
half of their statewide institutions.”
The young singing and musical
group “Life” provided entertain­
ment after the dinner.
At a Wednesday morning conti­
nental breakfast session Galen T.
Pate, chief executive officer of
MBSI and president of Signal Bank
in West St. Paul, moderated a spe­
cial insurance session. George Celusta, manager of MBSI, joined him in
giving a review of the various pro­
duct lines offered by the associa­
tion’s insurance group. Broader and
new coverages, along with dividend
payments were announced for early
months this year.
First speaker at the general ses­
sion was Michael Mescon of Atlan­
ta, Ga., who heads the Mescon
Group. His talk on “The Manage­
ment of a Bank in a Deregulated En­
vironment” was accompanied by a
special handout to all registrants.
He warned CEOs present, “ If you
don’t like what you see at the bot­
tom of your organization, you’d bet­
ter look at the top.” He followed by
adding that “changing from the bot­
tom up is called revolution!”
“I ’d go back to my bank,” he
stated, “and eliminate all job titles
except one—‘Sales Person.’ I t ’s not
ludicrous, but professional.” The ex­
ample he offered was Delta Airlines.
Its founder, Dr. Mescon stated, said
“our success will be based entirely
on people.” Dr. Mescon noted that
Delta “is still the only non-union air­
line going, and is the most profit­
able!”
He advised his banker audience to
“listen with three ears. Ear 1—listen
to what the other person says. Ear
2—listen to what the other person is
not saying. Ear 3—listen to what the
other person wants to say but
doesn’t know how to say it. Develop
yourself, your bank into one that
will encourage that other person to
talk to you, even if they don’t know.
As a listener, you develop a keener
sense of understanding and empa­
thy, and you respond with care and
better answers.”
Dr. Mescon concluded by saying,
“Now the last and toughest part—
develop an understanding of who
and what you are. If you’re to com­
pete successfully, really understand
yourself, then take an inventory so

Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

you’ll know how you can best func­
tion as a banker and as a human
being. Listen attentively to those
who converse with you. Let them
know you care.”
Concluding the afternoon pro­
gram were James Miller, deputy
commissioner for financial institu­
tions, Minnesota Department of
Commerce, and Dr. Jim Hager-

baumer, president of Hagerbaumer
Economics, Waukegan, 111.
Following Mr. Olson’s noon lun­
cheon address on current ABA af­
fairs, a special interest session was
held for interested bankers on the
new Banclnsure program. It was
conducted by Mr. Pate, Mr. Jeffers
and Robert Stassen, representative
in Minnesota for Banclnsure.
□

1986, to serve banks in Minnesota
and four other states.
Truman and Leila Jeffers have
Truman L. Jeffers, executive vice three daughters.
president of the Minnesota Bankers
Association, will
c e le b ra te his
Promoted in Mankato
25th year with
the MBA on
A.C. Norland, chairman of Securi­
A p ril 1. He
ty State Bank of Mankato, has an­
joined the asso­
nounced th a t
ciation staff on
John T. Cashin
that date in 1961
has been pro­
to work with
moted to presi­
K e n n e th
A.
dent of the bank.
T.L. JEFFERS
Wales, then ex­
M r. C ashin
ecutive vice pres­
had been execu­
ident of MBA and now senior vice tive vice presi­
president with First Bank System. dent of Security
When Mr. Wales resigned in 1970 to State Bank of
head the correspondent bank divi­ Mankato since
J.T. CASHIN
sion at First National Bank, Min­ 1984. Prior to
neapolis, Mr. Jeffers succeeded him that position, he served as senior
as the MBA executive vice presi­ vice president of First Bank, Fair­
dent, the position he continues to mont for 17 years.
hold.
Mr. Cashin is replacing Mr. Nor­
Mr. Jeffers was graduated from land, who will continue as the bank’s
Macalester College in St. Paul in chairman. Mr. Norland plans to
1955. He joined the sales staff of spend more of his time in the real
Burroughs Corporation in Minnea­ estate business.
polis and later was in the grain-buy­
ing business for General Mills in
Minneapolis until he joined the
Two Appointed in St. Cloud
MBA staff in 1961.
The board of First Bank St. Cloud
During his 25 years with MBA,
Mr. Jeffers has gained the respect has elected David A. Orlady to pres­
and support of Minnesota bankers, ident and CEO. Mr. Orlady had
legislators, regulators and civic offi­ served as managing director for the
cials. He was 1983-84 president of First Banks in the central Minneso­
the Minnesota Society of Associa­ ta region since 1982. He will con­
tinue to serve as a division director
tion Executives.
Within the banking industry he for a consolidated central and north­
has held several important posts. He ern Minnesota region. James H.
is a past president of the Central Claypool, who has served as manag­
States Conference of Bankers Asso­ ing director for the company’s
ciations, 1984-85 chairman of the northern Minnesota banks since
ABA state association division, 1982, will serve in that capacity for
chairman of the board of trustees for the consolidated central and north­
the Graduate School of Banking at ern Minnesota region.
Mr. Orlady joined First Bank Sys­
Madison, and is director of the Min­
nesota School of Banking. He is a tem in 1954. Prior to his election as
founding director of Banclnsure, managing director of the central re­
Inc., the five-state insurance com­ gion, he served as president of First
pany that became active January 1, Bank Southdale, Edina.

Truman Jeffers Marks
25th Year with MBA

Twin Cities*^,
ORWEST Bank Minneapolis
N
has named John P. Sampson se­
nior vice presi­

sota and South Dakota (Feb. 3
Weekly Newsletter).
Mr. Sampson has been with Nor­
dent and man­
west since 1975 when he was named
ager of its finan­
assistant vice president in strategic
cial institutions
planning. He later served as vice
group. He was
president in the corporation’s bank­
vice president/
ing business group, responsible for
corporate devel­
12 banks in central and southern
opment for NorMinnesota.
w est C orpora­
Born in Ipswich, S.D., he grew up
tion.
in Aberdeen, where he received a
In his new
bachelor of science degree in mathe­
p o sitio n , Mr.
matics from Northern State College
Sampson has responsibility for man­ in 1963. He is a 1980 graduate of the
aging Norwest’s relationships with Stonier Graduate School of Banking
correspondent banks, as well as re­ at Rutgers University.
gional savings and loan associa­
* * *
tions, brokerage houses, insurance
companies, leasing firms, credit
Norwest Corporation has an­
unions and other financial institu­ nounced that Brian R. Phillips has
tions.
joined the com­
James R. Campbell, president of pany as execu­
Norwest Bank Minneapolis, said tive vice presiSampson assumes his new responsi­ d e n t/te c h n ic a l
bilities “at a time when these vari­ services. He will
ous types of financial customers, in report to Lloyd
order to meet increasing competi­ P.
Johnson,
tion, more and more must turn for chairm an and
help to institutions that have made CEO.
a commitment to specialize in ser­
Mr. Phillips,
vicing their diverse needs."
who was pre­
Products and services provided to viously senior
these customers include cash man­ vice president data services, with
agement, investment services, data Allied Bank of Texas, will direct
processing, bank stock loans, check Norwest’s Banking Group opera­
clearing, automatic teller machine tions and data processing activities.
transactions, merger and acquisi­ He will have John Geiken and Nor­
tion services, credit card servicing, west Information Services reporting
student loans, working capital and directly to him.
term loans, letters of credit and
With more than 25 years of exper­
trust services.
ience in bank operations and data
During Mr. Sampson’s tenure as processing, Mr. Phillips began his
head of corporate development for career in 1961 when he joined Affili­
Norwest, the corporation acquired ated Banks of Colorado, Inc. From
banks in Omaha and Grand Island, 1975 to 1977, he served as assistant
Nebr.; sold Norwest American vice president and head of opera­
Bank, a Luxembourg-based interna­ tions for First Chicago Data Ser­
tional bank, and reached agreements vices, Inc.
with four buyers for the sale of 15
In 1977, Mr. Phillips joined the
banks and bank branches in Minne­ Banks of Iowa Computer Services,

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

Inc. He became president of the sub­
sidiary in 1981. He joined Allied
Bank of Texas in 1983.
***
Maureen W. Massopust, Carleton
L. Olmanson, Gary P. Veverka,
Stewart M. Shacter, Deborah J. Van
Valkenburgh, Angela M. Vikesland,
Kenneth M. Duncan, and David P.
Grandstrand have all been promoted
to vice presidents at First Bank
Minneapolis.

M.W. MASSOPUST

C.L. OLMANSON

Ms. Massopust, who joined the
bank in 1972 as a job analyst in per­
sonnel, had been assistant vice
president in the interim construc­
tion loans division.
Mr. Olmanson joined the bank in
1983 as assistant vice president in
the manufacturers division.
Mr. Veverka joined First Bank
Saint Paul in 1983 as an officer in
the regional and national accounts
division. He had been assistant vice
president in the multi bank holding
companies/multi bank owners divi­
sion.

G.P. VEVERKA

A.M. VIKESLAND

Northwestern Banker, March, 1986

34
Minnesota News
Mr. Shacter, who joined the bank
in 1975 as a systems analyst, had
been assistant vice president in the
metro marketing research division.
Ms. Van Valkenburgh joined the
bank in 1983 as assistant vice presi­
dent of communications for the
metro consumer marketing division.

K.M. DUNCAN

D.P. GRANDSTRAND

Ms. Vikesland, who joined the
bank in 1981 as a financial analyst,
had been assistant vice president of
the finance and planning group.
Mr. Duncan joined the bank in
1980 and had been assistant vice
president in the corporate division.
He is now in the public and struc­
tured finance division.
Mr. Grandstrand joined the bank
in 1980 as a money market officer
and now heads the funds manage­
ment division.
*

*

over 22 years banking experience
and has been with the bank for four
years. Mr. Kes has been with the
bank since 1981. Mr. Johnson has
been with the bank for two years.
Mr. Russell has been in the banking
industry for 13 years and has been
with the bank for three. Mr. Higgins
has been with the bank for three
years and in the industry for seven.
Named to assistant vice president
status were: Susan R. Hinrichs,
manager of the Southdale office;
D. BROWN
M.C. PAIDOSH
William J. Klein, executive and pro­
trust department; Mary C. Paidosh, fessional division-E; Kathleen A.
manager of commercial division-D; Fix, manager of international bank­
M. Don Bolke, manager of national/ ing division-1; Harry G. McNeely,
correspondent division-N; John S. III, commercial division-A; William
Kes, manager of credit and loan ac­ T. Lewis, data processing, and Col­
counting division; Mark E. Johnson, ette B. Ingle, commercial division-D.
assistant manager of mortgage and
real estate division-M; Ronald R.
Russell, commercial division-B, and
Mark D. Higgins, manager of loan
review division.

Seven have been named to vice
president status: Donald H. Brown,

K.A. FIX

Ms. Hinrichs joined the bank in
1980. Mr. Lewis joined the bank in
1977 and Ms. Ingle in 1979. Mr.
Klein has seven years of banking ex­
perience and Ms. Fix has been with
the bank for four years. Mr. McNee­
ly, III has been with the bank since
1981.

*

Several staff changes have been
announced at National City Bank.
T hree have
been named to
senior vice presi­
d e n t s ta tu s :
Robert
M.
A dam s, m a n ­
ager of data pro­
cessing division;
Harriet B. Halvorson, manager
of personnel, and
Peter H. Archi­
bald, manager of commercial division-B.
Mr. Adams has been with the
bank for over 18 years, Ms. Halvorson, 22 years, and Mr. Archibald, 26
years.

W.T. LEWIS

M.D. BOLKE

H. HALVORSON

P. ARCHIBALD


Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

H.G. McNEELY III

J.S. KES

Mr. Brown was previously presi­
dent and director of C.H. Brown
Company in Minneapolis as well as
owner of Holloway Galleries in Eden
Prairie. He recently joined the bank.
Ms. Paidosh has over five years of
banking experience. Mr. Bolke has

C.B. INGLE

Also named were Laura J. Carl­
son to a securities operations officer
of securities and operations division.
She has been with the bank since
1978. Steve A. Lehman was named
to a personal banking and credit offi­
cer of the Southdale office. He has
been with the bank since 1979.
* * *
Three have been elected to new
positions at Norwest Bank, Cam­
den, N.A.
Thomas A. Welch has been
elected president and director of the

Minnesota News

bank. Mr. Welch has been managing
Norwest Bank Camden since 1983.
He began his banking career in 1964
with First Bank System. He joined
Norwest in 1981 as senior vice presi­
dent, having previously been a vice
president with Norwest Bank St.
Cloud.
Elected as vice president/retail
banking was Gary Boylan. Mr. Boylan began his banking career in 1972
at Wadena State Bank. He was later
promoted to an assistant vice presi­
dent and manager of its insurance
agency. He has also been a lending
officer at Crosstown State Bank of
Ham Lake. In 1982, he joined Nor­
west Bank Metrowest as a consumer
sales manager.

G. BOYLAN

F. FLICEK

Frank A. Flicek has been elected
as a real estate loan officer. Mr.
Flicek joined Norwest Bank Roches­
ter as a collector in 1977. He was
promoted to general development
trainee and later a commercial lend­
ing officer. He joined Norwest as an
auditor and in 1983, became a per­
sonal loan officer with Norwest
Bank Owatonna.
*

*

*

The board of directors of Bremer
Financial Services, Inc. has an­
nounced several
promotions.
Promoted to
vice president
s ta t u s
w ere
Richard Bruce,
in v e s tm e n ts ;
Thomas Doyle,
controller, and
Allan Puffer,
system s p lan ­
ning.
S. HANSEN
Mr. Bruce joined Bremer in 1984
as an assistant vice president/investment portfolio officer.
Mr. Doyle came to Bremer in 1984
as a controller. He began his bank­
ing career as a CPA.
Mr. Puffer joined Bremer in 1982

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Federal Reserve Bank of St. Louis

as an assistant vice president/EDP
planning. He served as a manager of
systems and support operations for
Norwest Bank of St. Paul and a sys­
tems officer with Norwest Bank of
Minneapolis.
Jamie Grupe has been promoted
to assistant vice president/financial
analyst. He came to Bremer in 1982
from Norwest’s regional audit team
based in Des Moines.
John Eckoff has joined Bremer as
a credit review officer. He had been
with First Bank System since 1978.
Stephanie M. Hansen has joined
the organization as an investment
officer. She had been with First
Bank St. Paul as a bond advisory as­
sistant and investment officer.
Timothy Nebb has been elected to
Bremer as a tax officer. He joined
the organization in 1984 as a man­
ager of corporate taxation.
Heather Hanson has been elected
as a marketing officer. She came to
Bremer in 1983 as an assistant audi­
tor and was promoted to staff audi­
tor a year later.
* * *

35

since 1984.
Mr. Schoenke has been associated
with First Bank System since 1979,
when he joined First Bank Minnea­
polis as a vice president in the na­
tional banking area. He was pro­
moted to executive vice president in
1980 and was elected president of
First Bank Minneapolis in 1982.
In 1985, he became president and
manager of First Bank System’s
metropolitan division and was also
named vice chairman of First Bank
Minneapolis and First Bank St.
Paul. In January, he was elected as a
vice chairman and a director of First
Bank Sytem, Inc.

R.W. SCHOENKE

G.B. FISCHER

Gerald B. Fisher has been elected
to executive vice president and chief
financial officer of First Bank Sys­
Donald R. Johnson has been tem, and Garrett R. Hegel has been
elected president and director of elected to senior vice president and
controller.
Norwest Bank
Mr. Fischer has most recently
Old St. Anthony.
served as senior vice president of fi­
M r. Jo h n so n
nance, and Mr. Hegel has served as
began his career
vice
president and controller since
with Norwest in
1985.
1963 as a credit
* * *
investigator. He
later held posi­
tions as a credit
Paul Eckblad and Richard Flesvig
officer, manager
have
been promoted to vice presiand a commer­
dents/correspondent
banking at
D.
JOHNSON
cial loan officer.
He was then promoted to assistant American National Bank of Saint
vice president in the correspondent Paul.
banking department. In 1972, he
was elected vice president and trea­
surer of Norwest Lease, Inc. and in
1974, was named to senior vice pres­
ident of Norwest Bank Old St. An­
thony.
*

*

*

The boards of First Bank Minnea­
polis and of First Bank Saint Paul
have announced the election of Rich­
ard W. Schoenke as chairman.
Mr. Schoenke replaces Dennis E.
Evans, who had been chairman of
First Bank Minneapolis since 1982
and chairman of First Bank St. Paul

P. ECKBLAD

R. FLESVIG

Mr. Eckblad joined the bank in
1982 as assistant vice president in
correspondent banking. Mr. Flesvig
joined the bank in 1985 as assistant
vice president in correspondent
banking.
Northwestern Banker, March, 1986

36

Minnesota News

Promoted to assistant vice presi­
dent status were: Keith Grundfeldt,
data processing; Mary Ruch, com­
mercial real estate, and Elizabeth
Stirriup, operations.
John Seidel has been promoted to
correspondent banking officer and
Debbie Tayerle has been promoted
to operations officer.
* * *

First Bank Robbinsdale, a position
held since 1983. She began her
career with First Bank System in
1978.
Ms. Païen Geske comes to First
Bank Lake from First Bank Minnea­
polis where she had served as a com­
mercial banking officer since 1981.
She began her career at First Bank
Minneapolis in 1980.
* * *

The Esq. Series, an ongoing pro­
gram of interviews featuring suc­
cessful young businesspeople, was
launched Feb. 13 at the 105 Skyway
office of Marquette Bank Minneapo­
lis.
The events, which will be sche­
duled bimonthly throughout 1986,
will center on an interview between
a young businessperson and WCCOTV journalist Gary Gilson.
*

St. Anthony National Bank, St.
Anthony Village has announced that
Wendell Lotthammer
has
joined the bank
as executive vice
p re sid en t and
COO. Mr. Lotthammer was prev io u sly w ith
F ir s t
B ank
Southdale where
he was senior
vice president W. LOTTHAMMER
and manager of the retail and opera­
tions division. He began his banking
career in 1962 at First Bank Rob­
binsdale.
* * *

*

Lester I. Davis has resigned as a
director of Western Bank. Prior to
his retirement from the bank in Four Promoted in Duluth
1982, he served as senior vice presi­
First Bank Duluth has had sev­
dent. He had been employed with
eral
promotions recently.
the bank since 1946.
Helena
Jackson has been pro­
Terry Saario has been appointed
moted
to
vice
president, trust-legal.
to the bank’s board. She is president
of the Northwest Area Foundation.
* * *

Norwest Corporation has an­
nounced a new organization for serv­
ing “middle market” banking custo­
mers in the Twin Cities area. The
middle market comprises companies
with annual sales between $5 million
and $250 million.
First Bank Lake, Minneapolis,
The new unit, called the Norwest
has announced the following promo­ Middle Market Group, will be
tions.
headed by Larry D. Buegler, chair­
K.J. (Kay) Berman of Norwest Bank St. Paul. As­
thiaum e has
sisting him will be Ernest C. Pier­
been elected as a
son, chairman of Norwest Bank Mid­
manager of the
land; William H. Queenan, chairman
B lo o m in g to n
of Norwest Bank Bloomington; Ray­
Lake office of
mond M. Johns, senior vice presi­
First Bank Lake
dent of Norwest Bank St. Paul, and
with responsibil­
Joseph E. Foss, senior vice presi­
ity to oversee
dent of Norwest Bank Minneapolis.
¿I
fg f
j
the entire facili­
* * *
K. BERTHIAUME
ty. Ms. Berthiaume has over 25 years banking ex­
perience.
The board of directors of Mar­
Jeanne A. Burroughs and Kath­ quette Bank Columbia Heights has
leen Palen Gaske have been elected announced the
as senior credit review officers.
appointment of
Mary Raile to
assistant man­
ager of the Frid­
ley Detached Fa­
cility. Her re­
sponsibilities in­
clude manage­
ment of facility
operations, staff
supervision and
consumer loans. Ms. Raile joined the
J. BURROUGHS
K. PALEN GESKE
bank in 1985. Previous to that time
Ms. Burroughs had most recently she had been with various financial
served as a commercial banker at institutions in North Dakota.


Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

*

H. JACKSON

D. WALLIN

Ms. Jackson joined the bank in 1980
and was promoted to trust officer
and later named to assistant vice
president and trust officer.
Dan Wallin has been promoted to
vice president/commercial loan man­
ager. He joined the bank in 1970. In
1978 he was named assistant cashier
and in 1979 became assistant vice
president and commercial loan offi­
cer.

T. OLSETH

E. ERICKSON

Tom Olseth has been named to an
installment loan officer. Mr. Olseth
joined the bank in 1985 as an install­
ment lender. His lending experience
includes four years with First Na­
tional Superior and two years with
First Bank Duluth in the early
1970s.

Minnesota News

Elsa Erickson, who joined the
bank in 1984 as a corporate trust
consultant, has been promoted to
trust officer.

Promoted in Buffalo

Joann Beilke has been promoted
to vice president and cashier at The
Oakley National Bank of Buffalo.
Ms. Beilke is celebrating her 30th
year
with the bank. She is respon­
Two Promoted in Elk River
sible
for the operations of the bank
Jim Simpson, president of the
and
also
Bank of Elk River, has announced rector. serves as the personnel di­
the promotion of two top bank offi­
cials.
Pat Dwyer, who has worked at
the bank since 1966, moves to senior Elected in Redwood Falls
vice president, a new position. He
The board of Norwest Bank Red­
was vice president and cashier. He is
wood
Falls, N.A. has announced the
also a director of the bank.
election
of Norma Moeller to assis­
Also promoted was Stewart Wil­
tant
vice
president/consumer loans.
son, an employee of the bank since
Ms. Moeller has been with the
1975. He has been named to vice
president and cashier. He was assis­ bank since 1965, serving as an insur­
ance agent for Norwest Agency
tant vice president.
from 1966 to 1983.

Two Appointed in Edina
First Bank Edina President J.
Scott Hutton has announced the ap­
pointment of Doug Barclay to com­
mercial loan officer and Shelley Jaax
to personal banking officer.

D. BARCLAY

S. JAAX

Mr. Barclay was a commercial
banking officer at Norwest CalhounIsle and, prior to that position, was
a regional credit trainee at Norwest
Bloomington.
Ms. Jaax was previously a per­
sonal banking officer at First Bank
Minneapolis. She began her banking
career 17 years ago at First Bank
Minneapolis. Since that time, she
has held several positions in the re­
tail division.

Three Promoted in Richfield

37

Promoted in Worthington
Jeanine Spomer has been pro­
moted to commercial/agricultural
loan officer at Norwest Bank Worth­
ington.
Mrs. Spomer began her banking
career in 1972. Since then she had
held the positions of teller, customer
service representative, loan secre­
tary and commercial credit officer.

New Service in St. Cloud
Zapp National Bank, St. Cloud,
has announced the formation of its
brokerage service departm ent,
which will offer to the public a vari­
ety of investment products includ­
ing mutual funds, stocks, bonds and
government securities.
Jean Trunk has been named man­
ager of brokerage services. She has
been associated with Zapp National
Bank since 1963.

C. Peter Spekman was promoted
to assistant vice president/manager
of real estate loans at Richfield
Bank and Trust Company, while
Debra Rusch was promoted to trust Changes Made in St. Cloud
retirement plan officer and Linda
Michael R. DeWenter has been
Spekman to the officer position of
promoted
to loan officer at First
manager/customer service.
American National Bank of St.
Cloud.
Mr. DeWenter joined the bank in
1983.
Promoted in St. Cloud
In addition, John W. Erickson
Arlene Pederson has been pro­ joined the bank’s staff in January as
moted to trust operations officer at an assistant vice president in com­
Zapp National Bank, St. Cloud. Ms. mercial loans.
Pederson has been with the bank
since 1978.

Named in Lindstrom

Two Groups Receive Grants

First Bank System Foundation
has given grants to the Salvation
Army in Willmar and Lutheran
School Service of Minnesota, south­
west region.
Lutheran Social Service of Minne­
sota will receive $3,000, and the Sal­
vation Army will receive $10,000.
The grants were made by First Bank
System on behalf of First Bank WillTwo Promoted in Rosemont
mar and all First Banks of Minneso­
Rosemont National Bank has an­ Advanced in St. Cloud
ta.
nounced two promotions. Steven J.
Jean C. Osendorf has been pro­
The Willmar Salvation Army will
Burow was elected to assistant vice moted to assistant vice president of use the grant to help acquire a multi­
president and Rhonda J. Anderson the First American National Bank service for a senior citizens, day care
was elected to assistant cashier.
of St. Cloud. Ms. Osendorf has also and other programs. Lutheran So­
Mr. Burow joined the bank in been named as manager of the cial Service of Minnesota plans to
1983 and Ms. Anderson joined in bank’s West Branch. She joined the fund a domestic abuser recovery
1984.
bank in 1973.
project with the grant.

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Federal Reserve Bank of St. Louis

Jerrold M. Moses has been named
to assistant vice president of Securi­
ty State Bank of Lindstrom.
Mr. Moses started at the bank in
1983 as a loan officer. Previously, he
was employed by Peoples State
Bank of Cambridge from 1981 to
1983.

Northwestern Banker, March, 1986

>av. '
1


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Federal Reserve Bank of St. Louis

m

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Federal Reserve Bank of St. Louis

40

Replacing Mr. Karels as vice
president and cashier is Tom Gronseth. Mr. Gronseth joined the bank
in 1985.
Mr. Karels has been employed at
the bank for 10 years working in
various positions. He was also
elected to the board of the bank.

Tripp Bank Purchased

Vienna Bank Closes

The sale of Dakota State Bank,
Tripp to the First State Bank of Ar­
mour has been announced.
Lauren Lewis of Sioux Falls and
his two sons, the Rev. Allen Lewis of
Yankton and Paul Lewis of Palm
Desert, Calif., own First State Bank
of Armour.
The sale transaction is conditional
upon final approval by the State
Banking Commission and the Fed­
eral Deposit Insurance Corporation.
These approvals are expected late
this summer.
Kenneth G. Klatt, chairman of
Dakota State Bank, said the pri­
mary considerations in selling the
bank was the retirement age of the
major shareholders and directors
and the assurance from the Lewis
family to have the present staff con­
tinue to serve the community as it
has in the past.
Mr. Lewis said he and his sons are
enthusiastic about the purchase and
look forward to becoming a part of
the Tripp business investment.
The Dakota State Bank will
become a branch of the Armour
Bank with K. Jon Klatt as manag­
ing officer of the Tripp branch.

The State Banking Commission
has granted the Citizens State Bank
in Clark permission to close its
branch bank at Vienna.

Hurley Bank Acquired
The State Banking Commission
has approved the application of All­
state Enterprises, Inc. to acquire
the Hurley State Bank.

1st Fidelity Banks to Merge

K.D. KARELS

M.W. WISE

Mr. Wise, president of the bank
since 1975, had been employed with
the Dakota State Bank since 1939
and will remain as chairman of the
board.

Bank of Belle Fourche
Changes Name

The application of the First Fidel­
ity State Bank, Burke, to merge the
First Fidelity Bank of Colome and
First Fidelity Bank, Murdo, and to
establish branch banks in Colome
and Murdo has been approved by
the State Banking Commission.

The name of the Bank of Belle
Fourche has changed to Pioneer
Bank and Trust. There were no
changes in ownership or manage­
ment.

New Pres, in Milbank

Bk. & Finance Dir. Resigns

Ken Karels has been elected presi­
Glen F. Ritterbusch, director of
dent and CEO of Dakota State Bank Banking and Finance, has resigned.
of Milbank. Mr. Karels succeeds He has been director since 1979. A
M.W. Wise who is retiring.
successor has not yet been named.

Largest Banks in South Dakota
EPOSITS and loan figures for South Dakota banks reporting
D
deposits of $50 million or more at year-end are shown in the chart
below. Comparative figures from a year ago are featured.
(Last three figures omitted)

Norwest Corporation has an­
nounced it has agreed to sell
seven branch offices in South
Dakota, in addition to selling
eight of its banks in southern
Minnesota.
Norwest is selling branch of­
fices in Britton, Bristol, Hecla,
Lake Preston, Newell, Parker
and Springfield to First Na­
tional Bank of Beresford.
The details of the purchase
in full are in the story, “Nor­
west Announces Sale of Eight
Banks,” in the Minnesota state
news section.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Citibank, N.A., Sioux F a lls ..........
Norwest Bank South Dakota, N.A.
First Bk. of South Dakota, N.A.. . .
First Natl. Bk. in Sioux F a lls........
Western State Bank, Sioux Falls .
BankWest, N.A., P ierre................
First Natl., Brookings..................
Commercial T&S, Mitchell ..........
F&M Bank & Trust, Watertown . . .
Farmers & Merchants, Huron
United National Bk., Sioux Falls .
Valley National Bk., Sioux Falls ..
Pioneer B&T, Belle Fourche1........
Farmers State Bank, Winner........
American State Bk., Yankton
Farmers & Mer. B&T, Aberdeen ..
Farmers State Bank, Parkston . . .
’ Formerly Bank of Belle Fourche.


Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

December 31, 1985
December 31, 1984
Deposits
Loans Deposits
Loans
$2,054,864 $7,915,851 $2,757,946 $6,348,555
1,331,892
863,155 1,355,572
936,354
980,996
872,015 1,015,247
885,574
213,405
129,792
187,306
126,111
178,886
121,918
173,943
118,681
130,689
86,548
127,983
86,475
103,414
65,083
94,999
63,492
101,092
57,907
99,938
66,918
95,271
47,982
46,848
89,155
92,655
53,303
85,153
47,406
88,500
28,421
52,558
48,620
78,107
83,167
35,523
35,071
77,709
31,099
73,167
29,933
35,612
71,060
39,816
74,321
38,311
70,763
39,935
70,559
60,194
42,449
59,321
41,433
19,930
55,451
18,670
50,730

41
Robert Glanzer, agricultural
banking officer, has been promoted
to assistant vice president and will
continue to specialize in the agricul­
tural loan area.
Three new personal banking offi­
cers were elected: Phyllis Ross, Ila
Anderson and Marilyn Hanson.
Joyce Glanzer was elected stu­
dent loan officer and remains the
convenience center manager. Bettina Sinclair was elected marketing of­
ficer and also serves as manager of F
& M’s word processing center, and
Patricia Tschetter is the newly
elected real estate loan officer.
South Dakota News

Named In Mitchell
The following additions and pro­
motions have been announced by
C o m m e rc ia l
Trust and Sav­
ings Bank of
Mitchell.
Ja m e s
D.
H opkins, fo r­
merly president
of the Central
B an k , G re a t
F a lls , M o n t.,
was elected as
senior vice presi­
dent and senior loan administrator.
Mr. Hopkins had been CEO of Cen­
tral Bank since 1982.

T. EVERIST

J.P. KIRBY

Tom Everist, senior vice presi­
dent of L.G. Everist Inc., and Joe P.
Kirby, president and CEO of West­
ern Surety Company, have been
named to the board of First Bank of
South Dakota, N.A.

Sioux Falls Bank Observes
100th Anniversary
The First National Bank in Sioux
Falls celebrated its 100th anniver­
sary September 9, 1985.
The bank sponsored several
events to celebrate the anniversary,
beginning last March with a South
****** ~ ^
mm
Dakota Symphony concert featur­
L. KOTH
M. BEYER
ing Ella Fitzgerald.
Customer Appreciation Week and
Lance Koth, who had been associ­
ated with the Commercial Trust and the Sioux Falls Marathon were held
Savings Bank for seven years in the in September.
lending function, was promoted to
As a lasting 100th year memento,
vice president. Michael Beyer, who First National Bank commissioned
joined the bank in 1985 in the ag “Sioux Falls-A Pictorial History,’’
lending department, was promoted for release just before Christmas.
to assistant vice president.
Historians compiled rare photo­
graphs from many private collec­
tions into a hard cover book.
First Bank of South Dakota

Announces Changes
Two officers have been elected at
First Bank of South Dakota, N.A.
James R. Morcum has been
elected as assistant vice president at
First Bank Rapid City, and Sidney
D. Fitch has been named a credit of­
ficer at First Bank of South Dakota,
Sioux Falls Main Office.
Mr. Morcum joins First Bank
from Missoula Bank of Montana
where he served as vice president in
charge of credit administration. He
has also served as the head of Norwest Bank’s commercial loan de­
partment in Lead and Deadwood.
Mr. Fitch began with First Bank
in 1980 as an administrative assis­
tant at First Bank Luverne. He ad­
vanced to a cashier and operations
manager before transferring to First
Bank of South Dakota in Sioux Falls
in 1985, where he assumed the posi­
tion of a credit analyst and cash
management representative.

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Federal Reserve Bank of St. Louis

Promoted in Lead;
Transferred to Hot Springs
VaLinda Heinbaugh has been pro­
moted to personal banking officer of
Norwest Bank South Dakota, N.A.
at Lead.
Ms. Heinbaugh joined Norwest in
January as a personal banking rep­
resentative. Prior to that, she was
with the Miners and Merchants
Bank in Lead.
Colgan J. Huber has been trans­
ferred to Hot Springs as a personal
banking officer. Mr. Huber had been
an agricultural banking officer in
Newell prior to joining the Hot
Springs staff. He joined Norwest in
Newell in 1977.

Staff Changes Made in Huron
Seven new officers have been
elected and promoted at the Farm­
ers and Merchants Bank in Huron.

SDBA Sponsors IRA Seminar
The South Dakota Bankers Asso­
ciation will sponsor an Individual
Retirement Account seminar at the
Ramada Inn in Rapid City on March
25, and at the Ramada Inn in Sioux
Falls on March 27.
Entitled “The Competitive Edge
to IRA Retirement Planning,’’ the
seminar is designed to take the con­
fusion out of IRA rules and regula­
tions.
Randy Heidmann, who has been
in the pension business since 1977,
will speak at the seminar.
Registration begins at 8 a.m.,
with the seminar starting at 9 a.m.
Lunch will be held from noon to 1
p.m. with the seminar beginning
again at 1 p.m. and lasting until 4:30
p.m. Contact the SDBA for more in­
formation.

Stock Dividend in Aberdeen
Rodney Fouberg, chairman of
Dacotah Bank Holding Company,
Aberdeen has announced that the
board has declared a 2% stock divi­
dend in lieu of its semi-annual cash
dividend.
The stock dividend will be paid on
March 24, 1986 to shareholders of
record on March 4, 1986. Fractional
shares will be paid in cash based
upon $11.50 per full share.

New Headquarters For
The SDBA & SDBIS
The South Dakota Bankers Asso­
ciation and South Dakota Bankers
Insurance Services have relocated
their offices to 121 West Missouri
St., Pierre. The telephone numbers
and post office box of 1081 will re­
main the same. The phone number
for the SDBA is (605) 224-1653 and
the SDBIS phone number is (605)
224-7003.
Northwestern Banker, March, 1986

42

N DBA Marketing Coni. - March 20-21
fi«TO G ETH ER ...W e’re Building
I A Better Tomorrow” is the
theme of this year’s North Dakota
Bankers Association Marketing
Conference to be held March 20-21,
at the Doublewood Inn, Fargo.
The theme ties in with NDBA’s
present television advertising cam­
paign and will also be the theme of
this year’s annual NDBA conven­
tion.
The conference, which is the se­
cond annual such meeting, is recom­
mended for bank employees in mar­
keting, public relations and adver­
tising.
Martin Allen, a faculty member of
the School of Bank Marketing at the
University of Colorado, the Gradu­
ate School of Banking at the Univer­
sity of Wisconsin, and the ABA
Stonier Graduate School of Bank­
ing, will be the primary speaker,
presenting progressive steps in de­
veloping a profitable marketing
plan. Harley Danielson of Walthall
& Associates, Fargo will talk on ef­
fective research one can do. The pro­
gram schedule is as follows:
Thursday, March 20
A.M.
8:30 Registration. Continental
Breakfast.
9:00 “Developing Strategic Mar­
keting Plans for Profitable
G row th” —M artin Allen,
s.v.p. and dir. of mkt., Old
Kent Bank & Trust, Grand
Rapids, Mich.
11:00 Group Discussion/Preparation.
P.M.
12:00 Lunch
1:00 Presentation of Case Study.
2:00 Break
2:15 “Identifying and Maximiz­
ing Your Market Share
-How Research Can Help”—
Harley Danielson, e.v.p.,
Walthall & Associates.
3:30 NDBA Advertising Pro
Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4:00
4:30

5:30

gram Presentation - mem­
bers of NDBA Advertising
Committee
Idea Exchange.
Bank Marketing Associa­
tion presentation—Robert
K. Miller, v.p. and dir., Mar­
keting and Membership Di­
vision, BMA, Chicago, 111.
Reception.
Friday, March 21

A.M.
8:30

Continental Breakfast.
Best of BMA ads presenta­
tion.
9:00
Concurrent Sessions.
“Managing and Implement­
ing Sales Training”—Kevin
D. Remillard, dir. of Corpo­
rate T raining Services,
Hawkeye Bancorporation,
Des Moines, IA.
“Direct Marketing - Ans­
w erable A d v e rtisin g ” —
Mike Kuzma, s.v.p., Clark/
Ladd Direct, Chicago, IL.
“Media Buying for Cost Ef­
ficiency”—Robert Gramer,
pres., Multiple Media Con­
sultants, Inc., Fargo.
10:30 Break
10:45 Concurrent Sessions.
Sales Training — Remillard
Direct Marketing — Kuzma
Media Buying — Gramer
P.M.
12:15 L u n c h e o n /P re s e n ta tio n
“Managing for Tomorrow
T o d a y ” —Ken M aloney,
pres., Maldan Management,
Fargo.

Elected in Fargo

the North Dakota region since 1984.
Mr. Mengedoth will have supervi­
sory responsibility for the banks and
offices that are in the process of
being purchased by employee and
community groups in southern
North Dakota, South Dakota and
central Minnesota.
Succeeding Mr. Woods, the board
of First Bank Fargo has elected N.
Thomas Wiedebush to president.
Mr. Wiedebush had been president
of First Bank St. Cloud, Minnesota
since 1984.

Three Appointed in Bismarck
The North Dakota Industrial
Commission has approved the ap­
pointm ents of
three senior vice
presidents at the
Bank of North
Dakota, in Bis­
marck. The three
positions are a
segment of the
management re­
organization the
bank is under­
R. SAILER
going.
Ruben Sailer joined the bank in
1948. He has worked in all areas of
retail banking operations, and in his
new position will oversee all retail
bank operations.
Before joining the bank, Robert J.
Gruman held the position of credit
specialist with the title of senior vice
president at First Bank of South Da­
kota. He has served as assistant vice
president at First Bank Minneapo­
lis, Minn. He will be responsible for
all lending activities.

R.T. GRUMAN

R. FARMER

Ronald J. Farmer will assume the
Jerome B. Woods, Jr. has been responsibilities of administration
elected to CEO of First Bank Fargo and finance. Prior to joining the
and managing director for the First bank, he held a position with Dun
and Bradstreet as chief administra­
Banks in the state.
Mr. Woods has been president of tive and operations officer at First
First Bank Fargo since 1983. He Bank of Oak Park, 111., and was pres­
succeeds Donald R. Mengedoth, ident and CEO and COO at Acorn
who served as managing director of Anodizing Company, Chicago, 111.

North Dakota News

Joins Fargo Bank
Dennis Renner has joined Norwest Corporation-Region VII, Far­
go, as vice president, credit adminis­
tration. He will be headquartered in
Mandan and travel regionwide
working with 12 Norwest banks in
North Dakota and western Minne­
sota.
Mr. Renner has been associated
with Norwest Bank Mandan, N.A.
as vice president, agri-business
loans since 1984 and prior to that
was with Norwest Bank Jamestown,
N.A. since 1975.
Before Norwest, Mr. Renner was
associated with FmHA, MandanDevils Lake-Fort Yates.

Staff Changes in Bismarck
Bank of North Dakota, Bismarck,
has announced the retirement of
Martin E. Stenehjem, senior vice
president.
A 20-year state employee, Mr.
Stenehjem joined the bank in 1965
as a fieldman. He was then named
assistant manager in the mineral
leasing division, where he trans­
ferred into the student loan area.
At the time of his retirement, Mr.
Stenehjem held the position of direc­
tor of the North Dakota Guaranteed
Student Loan Program.
The North Dakota Bank has also
announced the promotion of three
officers.

several positions in the student loan
area.
James McLeod was appointed
electronic data processing auditor.
He joined the bank’s audit depart­
ment in 1983 after working three
years with the Office of the State
Auditor.
Frank Boutilier joined the bank
in 1985 as a loan officer and was
recently promoted to loan service of­
ficer. He worked 12 years at the De­
partment of Banking and Financial
Institutions as a bank examiner.

Promoted in Jamestown
The following promotions at Nor­
west Bank Jamestown, N.A., have
been announced.
Paul Olson has been promoted to
senior vice president/loan adminis­
tration, and Thomas Cotton has
been promoted to vice president/
manager and Mark Finstad to assis­
tant vice president of the agricul­
tural loan department.
Mr. Olson joined Norwest Corpo­
ration in 1982, serving as an agricul­
tural loan officer at Norwest Bank
Moorhead, N.A. He joined Norwest
Bank Jamestown in 1983 and for­

43

merly held the position of vice president/manager of the agricultural
loan department.
Mr. Cotton joined the staff in
1984 as an agricultural loan officer.
Prior to that, he had been associated
with the Production Credit Associa­
tion for over two years.
Mr. Finstad has been with Nor­
west since 1982. He has been a
credit analyst, credit compliance of­
ficer and most recently was an agri­
cultural loan officer.

President Named in Beach
J.T. Hudson and D.F. Baertsch
have retired as chairman and presi­
dent, respectively, of Farmers and
Merchants Bank, in Beach.
Larry Swanson is now the bank’s
president.

Dakota Services Names Two
Roy Ryttie has been named presi­
dent of Dakota First Services, Inc.,
a new subsidiary of Dakota Bankshares, Inc. The new company is of­
fering management consulting ser­
vices to nonaffiliated banks and per-

Largest North Dakota Banks
EPOSIT and loan figures for North Dakota banks reporting $50
D
million 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)

M.E. STENEHJEM

D. JAMES

J. McLEOD

F. BAUTILIER

Delores James was appointed
director of the North Dakota Gua­
ranteed Student Loan Program. She
joined the bank in 1972 and has held

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

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, Bismarck..........
First Bk. of N. Dakota, Fargo ................
First Natl. Bk, Grand Forks....................
Norwest Bk. Minot, N.A...........................
Norwest Bk. Fargo, N.A...........................
First Bank of Bismarck..........................
American State Bk., Williston................
Dakota B&T, Fargo ................................
First Natl. B&T, Williston ......................
Fargo Natl. B & T ......................................
First American B&T, M in o t....................
Norwest Bk. Mandan, N.A.......................
First Bk. of N.D., M in o t..........................
First Bk. of N.D., Grand Forks................
First Bk. of North Dakota, Jamestown .
First American B&T, G ra fto n ................
Valley Bank & Trust, Grand F o rk s ........
Liberty Natl. B&T, Dickinson ................
First Western St. Bk., M in o t..................
State Bk. of Burleigh Cnty., Bismarck ..
Norwest Bk. Jamestown, N.A.................
Norwest Bank Grafton, N.A....................
First Int. Bk. of Watford C ity..................
First Bk. of N.D., Wahpeton ..................
First Natl. B&T, Dickinson ....................
Norwest Bk. Wahpeton, N.A...................
First Natl. Bank of Bowman..................
Ramsey Natl. B&T, Devils L a k e ............

December 31, 1985
Deposits
Loans
$631,152
$236,804
234,038
176,845
181,942
105,403
153,634
99,837
152,915
117,581
140,782
123,429
125,602
69,122
121,237
93,901
120,087
53,473
119,328
86,251
107,083
68,704
97,750
61,049
93,778
52,831
87,362
65,549
79,708
42,177
75,400
46,910
70,670
32,663
68,585
35,900
66,188
45,881
65,079
40,816
64,259
40,332
59,581
30,638
59,273
21,278
58,393
45,597
54,853
23,053
54,332
38,187
52,566
20,104
50,731
30,376

December 31, 1984
Deposits
Loans
$601,285
$270,339
203,100
153,795
162,801
89,908
140,802
104,100
153,128
118,866
160,274
133,447
119,333
67,299
122,749
93,389
108,894
54,746
119,831
95,606
103,451
63,290
93,408
59,340
95,716
61,183
92,833
55,154
74,601
42,067
68,861
45,642
66,909
33,565
69,250
36,145
62,663
40,623
63,423
41,004
65,265
43,832
56,984
30,188
57,275
21,991
49,826
42,162
56,308
27,794
52,275
37,203
51,621
19,444
48,978
25,021

Northwestern Banker, March, 1986

North Dakota News
44
forming audit and credit review ser­
vices for subsidiaries.
William D. Kramer was named
assistant vice president and secre­
tary.
Mr. Ryttie is a chartered bank
auditor and has 14 years of experi­
ence as a bank examiner in Minne­
sota. Before joining Dakota Bankshares in 1985, he operated his own
consulting firm, Northland Bank
Services.
Mr. Kramer joined Dakota Bankshares in 1985 as a staff auditor and
before that was a senior accountant
at Gate City Savings and Loan in
Fargo.

Mandan Bank Promotes Two
Steven C. Felchle has been pro­
moted to vice president/agri-business loans, and Jean Stark has been
promoted to credit/compliance offi­
cer of Norwest Bank Mandan, N.A.
Mr. Felchle has been with the
bank since 1984 and prior to that
with Norwest Bank Thief River
Falls, N.A. working in the agri-busi­
ness department.
Mrs. Stark has been with the
bank since 1969 working in the loan
discount area and most recently
with the credit and compliance
areas.

Promoted in Grand Forks
Community National Bank of
Grand Forks has recently announced
the promotion of several of its offi­
cers. Promoted to vice president
were Janet Elshaug and Don Ander­
son. Ms. Elshaug, formerly an assis­
tant vice president, started with
Community National in 1972, and
Mr. Anderson, a former assistant
cashier, started in 1981.
John Ouradnik, formerly assis­
tant vice president/cashier, was pro­
moted to vice president/cashier. He
has been with the bank since 1977.
Two employees in the installment
loan department were also pro­
moted. Audrey Thompson was
named loan officer and Larry Morken was named assistant cashier.

Two Elected in Carrington
The board of First American
Bank and Trust of Carrington has
elected Randy Kruger to vice presi­
dent of operations and Lori Solberg
to assistant vice president of person­
nel and marketing.

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dickinson Banker Retires
The First National Bank and
Trust Company of Dickinson has an­
nounced that Harry A. Lenz will re­
tire March 31 after 40 years of ser­
vice.
Mr. Lenz joined the First Na­
tional in 1946 and has held several
management positions, most recent­
ly as vice president and auditor. He
will continue to serve on the board.

Susan Tobias has been named as­
sistant cashier/loans. She has been a
loan secretary for the past eight
years.

Added in Brown Deer

Brown Deer Bank has added three
new officers to its retail banking de­
partment.
David B. Povolny has been
named assistant
vice president/
retail banking.
WISCONSIN N EW S.. .
He fo rm erly
(Continued from page 27)
serv ed as a
Promoted in Menomonee Fails branch manager
M&I Bank of Menomonee Falls with a Milwau­
has announced the following promo­ kee bank.
D. POVOLNY
Linda M etz­
tions: Mary J. Christensen to vice
president/cashier; Shirley A. Shoe­ ger has joined the bank as a retail
maker to vice president; Patrick J. banking officer. She previously held
Noll to loan officer; Geraldine Lei- management positions at two local
bundgut to operations officer, and banks.
Michael Richardson was elected as a
director.
Ms. Christensen joined the bank
in 1983 as an assistant vice presi­
dent in charge of operations. Prior to
this, she spent 17 years with the
M&I Bank of Westfield as an assis­
tant vice president/cashier. She has
been active in banking for 29 years.
Ms. Shoemaker started at Meno­
monee Falls Bank in 1971. She
L. METZGER
M. FENSKE
served as assistant vice president
Mark R. Fenske has joined the
and branch manager of the Heritage
bank as a retail banking officer
Bank, Menomonee Falls.
Mr. Noll has been employed with Previously he was a retail banker
the bank since 1982, working as a and loan officer at another Wiscon­
sin bank.
personal banking representative.
Ms. Leibundgut started at the
Menomonee Falls Bank in 1968 as Brown Deer Director Named
head teller. She was appointed as
Bruno Mauer, president of Rickassistant cashier in 1971, and was
ert Industries and one of Wisconsin’s
later named operations officer.
Mr. Richardson is president of lead in g sm all
Michael Richardson and Associates, business advo­
Inc., a firm specializing in tax and cates, has been
named a director
insurance planning.
of Capital One
C o rp o ra tio n ,
Three Promoted in West Allis Brown Deer.
C apital One
Three officers have been pro­
moted at Central Bank in West Corp. is the hold­
ing company for
Allis.
D eer
Marilyn Wilson has been named B row n
B. MAUER
assistant vice president. She has Bank and also
been with Central Bank for 22 years provides financial services for close­
and assistant cashier of the bank ly held companies.
Mr. Mauer is a director and trus­
since 1971.
Arlene Stockinger has been tee for the National Federation of
named assistant cashier/accounting. Independent Business, chairman of
She has been with the bank for 10 the Wisconsin Council for Economic
years and bookkeeping supervisor Education and a founder and direc­
tor of Competitive Wisconsin.
since 1977.

45

Anaconda/Butte and
Dillon Banks Consolidate
Norwest Bank Anaconda/Butte
and Norwest Bank Dillon will con­
solidate top management of the two
banks.
Dan Shively, president of Nor­
west Bank Dillon, has been elected
president and chief executive of Nor­
west Bank Anaconda/Butte, suc­
ceeding William R. Tait. Mr. Shively
will continue as president of Nor­
west Bank Dillon, maintaining of­
fices at both banks.

Asking, “Is there any hope for
agriculture?" Mr. Penson said he
sees an encouraging future because
of the federal government’s current
attempts to lower the deficit. He
said the best economic future would
include a low deficit and a moderate
growth in the money supply.
Also speaking at the conference
were William Lamdin and Allan
Karell, two Billings attorneys, who
cited four options to avoiding fore­
economy were the center of focus for closures:
136 bankers who attended the 1986
1. The existing debt can be ex­
Ag Bankers Conference conducted tended.
early last month in Billings by the
2. The lender can take a more ac­
Montana Bankers Association.
tive role in managing the operation
Keynote speaker John Penson, through a work-out agreement.
professor of ag economics at Texas
3. The bank can accept a deed in
A & M University said agriculture is
lieu
of foreclosure.
more dependent on the total econo­
4. The farmer can agree to a con­
my than any other industry. This de­
pendence makes it difficult to sensual or structured liquidation.
formulate effective plans when the
Mr. Lamdin stressed that the
other sectors of the economy fluctu­ most important point for bankers to
ate as they have during the last few remember is to maintain constant
years.
communication with the debtor.

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

W.R. TAIT

Mr. Tait has been elected chair­
man of the Anaconda/Butte bank
and will continue as chairman of the
Dillon bank. He served as president
of the Dillon bank from 1957 to 1969
and was president of Norwest Bank
Mandan in N.D. from 1969 until he
joined the Anaconda/Butte Bank in
1972 as president and chief execu­
tive.
Mr. Shively joined the Norwest
organization at Norwest Bank Bill­
ings in 1977 as head of its agricul­
tural department and was vice presi­
dent and business division manager
when he moved to Dillon in 1983 as
senior vice president and senior loan
officer. He was elected president of
the Dillon bank in 1984.

Ag Problems Discussed
At MBA Conference
Agricultural problems and their
interaction with other sectors of the

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

(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.

First Bank N.A., B illings........................
First Interstate Bank of Billings, N.A. ..
First Natl. Bank of Great F a lls ..............
Norwest Bank Billings, N.A.....................
First Bk.-Western Mont. N.A., Missoula
Norwest Bk. Great Falls, N.A..................
First Bank Bozeman ..............................
First Security, Bozeman........................
First Bank H e le n a ..................................
First Natl., A naconda............................
First Natl. Montana Bk., Missoula........
First Interstate Bk. of Kalispell ............
First Bank-Butte......................................
First Interstate Bank, Great Falls ........
Norwest Bank H elen a............................
Norwest Bank Kalispell, N.A...................
First Security B&T, Miles City................
First Citizens Bank, Billings..................
First Natl., Miles City..............................
First Bank Lewistown............................
First Bank H a v re ....................................
Farmers State Bank, C o n ra d ................
Norwest Bank, Lewistown ....................
Shelby First State Bank ........................
First State Bank, Forsyth......................
Citizens State, Hamilton........................
Security State, Plentywood ..................
Richland Natl. B&T, Sidney....................
First Natl. Bank, Glendive......................
First Bank-West Billings........................
First National Bank of Glasgow............

December 31, 1985
Deposits
Loans
$259,200
$202,186
257,441
201,802
192,004
175,959
180,544
148,077
166,655
87,818
130,821
86,092
119,924
111,699
115,989
83,980
109,007
54,033
108,913
60,289
108,016
81,923
107,324
74,360
104,922
67,680
99,747
68,949
99,173
70,220
97,566
55,050
85,815
47,924
75,385
58,324
74,830
39,178
69,780
42,701
67,838
32,346
58,957
21,694
58,726
38,902
57,547
34,907
57,180
22,654
56,827
36,690
56,662
25,985
56,228
34,891
55,538
36,911
55,339
38,613
53,171
26,820

December 31, 1984
Deposits
Loans
$285,641
$221,053
254,447
207,220
182,766
134,417
190,861
169,557
161,372
83,202
145,870
105,867
113,958
103,841
105,088
80,022
107,373
53,380
107,173
59,120
105,554
80,861
108,250
68,640
99,130
41,815
103,578
72,148
95,767
74,519
96,668
61,044
83,200
47,039
69,004
54,343
78,783
48,222
72,209
45,369
75,389
39,018
54,965
23,656
60,533
42,127
63,949
45,588
56,126
28,456
51,577
34,042
51,847
25,260
56,862
32,202
55,036
34,215
53,581
38,612
52,212
28,448

Northwestern Banker, March, 1986

46

Tom Ahern was promoted from
loan officer to assistant vice presi­
dent in commercial loans. Marlys
Reddon, former bookkeeping super­
visor, was promoted to operations
officer, head of customer service.
Kirk Lee, formerly special credit rep­
resentative, was advanced to special
credit officer, head of special credit.

Three Advanced in Jackson
Additions in Gillette

Six Advanced in Riverton

Stockmen’s Bank and Trust Com­
pany, Gillette has announced the fol­
lowing additions to their staff: John
C. Cromwell, senior vice president/
operations; John C. Muller, vice
president/loan review; John L. Piesik, vice president/commercial loans,
and Douglas R. Newland, assistant
vice president/finance.
Mr. Cromwell brings 15 years of
banking experience with him. He
was most recently with Farmers and
Merchants Bank in Huron, South
Dakota.
Mr. Muller has 10 years experi­
ence in commercial and agricultural
lending and most recently served in
Lewistown, Montana and Douglas.
Active in lending for 12 years, Mr.
Piesik was most recently with the
First National Bank in Sheridan.
Mr. Newland has seven years ex­
perience in business accounting. He
was with Norwest Bank, Billings,
Montana as a financial analyst for
six years.

First Interstate Bank of Riverton
recently made several promotions.
Myrna Sammons, formerly vice
president and cashier, was promoted
to senior vice president, head of ad­
ministration. Darla Paskett was pro­
moted from assistant vice president
to vice president. Former controller
Mark Prine was advanced to assis­
tant vice president.

Jackson Pres. Elected to
Federal Reserve Board
W. Richard Scarlett, president of
the Jackson State Bank in Jackson,
was recently ap­
p o in te d to a
three-year term
on the Federal
Reserve Board,
Denver branch.
The Denver of­
fice is a branch
of the Kansas
City Federal Re­
serv e sy ste m
w.R. SCARLETT
and consists of
seven board members. Mr. Scarlett
is also the chair of United Bancorporation of Wyoming, which is the
parent corporation of two banks in
northwest Wyoming.


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Northwestern Banker, March, 1986
Federal Reserve Bank of St. Louis

Grant Larson has been elected
chairman of the Jackson State
Bank. Mr. Larson has served as a
board member since 1978.
Two Jackson state bank employ­
ees have received promotions. Marc
VanDerVelde has been named assis­
tant vice president in consumer
loans and Christi Walter has been
promoted to assistant vice president
in operations.

Largest Banks in Wyoming
EPOSIT and loan figures for Wyoming banks reporting deposits of
D
$40 million or more at year-end are shown in the chart below. Com­
parative figures from a year ago are featured.1
(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.

First Interstate, Casper..........................
Norwest Bank Casper, N.A.2 ..................
Stockmen’s B&T, G ille tte ......................
Rock Springs N a t l..................................
Norwest Bank Cheyenne, N.A.3 ............
First Interstate Bkof Laramie, N.A........
American Natl., Bk. of Cheyenne..........
First Interstate of Sheridan ..................
First Natl. Bank, G illette........................
First Natl. Bank, Powell..........................
Shoshone First Natl. Bank, Cody..........
Jackson State Bank................................
First Interstate Bk. of Riverton, N.A. . . .
Rawlins Natl. B a n k ................................
First Natl., Sheridan ..............................
Hilltop Natl. Bk., C asper........................
First Wyoming Bk. N.A., Cheyenne . . . .
First Wyoming Bank, C ody....................
Stockgrowers State Bk., W o rla n d ........
First Wyoming Bk. N.A., Lander............
North Side State, Rock Springs............
Citizens Natl. B&T, Torrington..............
First Natl. Bank, Evanston....................
First Natl., W orland................................
First Security Bk., Rock Springs............
First Wyoming Bk., N.A. Kemmerer
Bank of Laramie......................................
First Wyoming-Evanston ......................
First Natl., Buffalo..................................
First Wyoming-Casper ..........................
Star Valley State Bk., Afton ..................
First State Bk. of Newcastle..................

December 31, 1985
Loans
Deposits
$255,824
$175,961
145,885
216,111
92,564
158,104
28,527
153,409
84,344
122,477
59,434
109,918
62,655
105,989
72,477
101,982
96,693
31,659
50,112
86,055
77,274
27,430
51,090
76,043
47,050
74,159
49,813
72,163
45,274
70,001
47,982
67,357
33,116
59,678
36,682
57,183
31,807
56,587
26,199
56,440
16,376
54,492
29,708
52,937
23,892
50,628
27,546
49,730
26,551
49,691
20,991
49,443
27,053
47,835
24,655
46,671
22,496
46,498
24,454
46,440
29,916
44,413
16,658
43,226

December 31, 1984
Loans
Deposits
$190,961
$280,666
137,587
217,010
100,989
174,861
127,483
30,483
76,946
108,295
56,775
101,640
67,671
106,595
69,379
99,128
34,334
84,833
48,799
81,183
26,916
76,488
48,318
72,620
68,321
95,391
45,414
62,029
53,366
72,540
63,452
22,727
41,432
56,145
42,785
62,339
60,241
31,445
26,873
45,911
16,349
47,975
36,482
53,269
25,879
56,686
27,584
49,405
26,049
47,216
26,049
47,216
28,211
46,330
27,576
51,769
23,184
43,357
25,768
48,279
27,232
41,571
18,980
40,371

1 American Natl., Riverton - Now First Wyoming, Riverton information withheld.
2 Formerly Wyoming National Bank of Casper.
3 Formerly First National B&T, Cheyenne

47

United Bank of Denver
Promotes Twenty Five

Denver Bank Elects Pres.;
Promotes Three
A ffiliated Lakeside National
Bank, Denver, has recently elected
Richard A. Walter as president.
Mr. Walter has been with the
bank in various capacities for 13
years.
Walter M. Orr, Jr. will remain as
chairman and CEO of the bank. Mr.
Orr has more than 22 years experi­
ence with various affiliated banks.
Additional promotions include:
Gregory R. Vartanyan, executive
vice president; D. Jay Grubbs, vice
president of operations and adminis­
tration, and Clayton Collier, vice
president of commercial loans.

Pres. Elected in Aurora
Linda M. Bedinger has been
elected president of United Bank of
Aurora-South. Ms. Bedinger was
previously executive vice president.
Ms. Bedinger joined the organiza­
tion in 1967 and has held various
positions. She also played a key role
in opening United Bank of AuroraSouth in 1984.

Univ. Hills Bk. Elects Pres.
Blair J. Lindberg has been elected
president of United Bank of Univer­
sity Hills. Ms. Lindberg was pre­
viously vice president, cashier and
the senior lender of the bank.
She joined the United Bank orga­
nization in 1982 and participated in
the planning and organization of
United Bank of University Hills,
which opened in 1985. She has over
14 years of banking experience.

Monaco Bank Elects Pres.
United Banks of Colorado, Inc.
has announced that Patricia M.
Cavaliere has been elected president
of United Bank of Monaco. Ms.
Cavaliere formerly held the position
of senior vice president and manager
of lending at the bank.

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

Numerous officers have been pro­
moted at United Bank of Denver re­
cently. Donald
R. Sail has been
nam ed sen io r
vice president,
and Daryl D.
Moellenberg and
Sarah (Sally) W.
W oods
have
She joined United Banks in 1967 been named vice
and has held various positions in president.
Mr. Sail joined
D.R. SALL
commercial lending, operations, loan
the
bank
in
1973.
analysis and asset liability manage­
Mr. Moellenberg, who joined the
ment.
bank in 1983, is a commercial
banker in correspondent banking.
Two Elected in Denver
Ms. Woods, manager of asset man­
United Banks of Colorado has agement services corporate trust di­
elected Dennis D. Erickson and vision, has been with the bank since
Thomas W. Swanson to executive 1982.
Promoted to assistant vice presi­
vice presidents.
dent were K. Denise Albrecht, An­
drew Downs, Priscilla C. Englert,
Alan M. Lee, James F. Livermore,
Leroy Montoya and Janis L. Soldan.
In addition, Stacey Busse, Gretchen
Cooper, Stan Solodky and Ronald
Thompson were named to officer po­
sitions.
Kathleen M. Robbins and Cheri
A. Whalen were promoted to asset
management officers. Peter F.C.
D.D. ERICKSON
T.W. SWANSON
Armstrong, Jr., Patrick D. Fleming,
Mr. Erickson, as executive vice Ted Hamstra, Lisa N. Johnson, Bon­
president-finance and treasurer, con­ nie J. Shuster and Carrie L. Tolstedt
tinues as the chief financial officer of were named as commercial banking
the company. He has been with officers.
United Banks for 16 years.
Also, Kevin C. Brubeck and
Mr. Swanson, as executive vice Daniel E. Cook were promoted to
president continues to have adminis­ commercial loan officers, and Martrative responsibility for the 13 dell Maring was named operations
United Banks in the Denver Metro­ officer.
politan region. He has been with
United Banks for 21 years.

Appointed in Littleton
David P. Miller has been appointed senior vice president of
United Bank of
Littleton. In this
p o sitio n , Mr.
Miller is respon­
sible for admin­
istration of the
bank’s loan port­
folio. A 13-year
banking veteran,
he was most re­
cently employed
D.P. MILLER
as vice president
and manager of commercial lending
at Affiliated Greeley National Bank.

Two Added in Englewood
The addition of Craig Miller as
vice president and manager of com­
mercial banking
of First Inter­
state Bank of
Englewood has
been announced.
Mr. Miller was
previously with
Denver National
Bank and First
Interstate Bank
of Denver.
C. MILLER
James A. Wor­
ley has also been added at the bank
as assistant vice president and com­
mercial loan officer.
Northwestern Banker, March, 1986

48

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DISTANCE
SERVICE
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Banking
________Division
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Division of First National
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service in helping you
meet the needs of your
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For correspondent services
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^F irsTier Banks
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Member FD IC

13th & M Streets • P.O. Box 81008
Lincoln, Nebraska 68501
Phone 800-742-7376


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

49
one of the youngest C.E.O.'s in the
state for a bank of its size.
Several staff changes have also
been made at the bank.
Lloyd Schepler has been ap­
pointed as senior vice president and
Marge Lichty has been appointed to
cashier.
S.F. Redman has been hired as a
collection/operations officer to re­
cover large loan losses. Stephen L.
Wilke has been hired as a farm an­
senior vice president, Merrill Hale to alyst and loan officer.
State Bank of Elk Creek
Andy Zeek, senior vice president
Buys Failed Tecumseh Bank vice president, and Colleen M. Lar­
son to personal banker at Dakota
The Johnson County Bank, County State Bank, South Sioux and Garnet Koch, assistant cashier,
have retired, and C.A. Noble has re­
founded in 1902 in Tecumseh, was City.
signed as cashier.
closed February 27 by James C. Bar­
Mr. Krueger has been with the
bee, Nebraska director of banking, bank since 1983 and was previously
but re-opened as a branch office of vice president. Prior to Dakota
State Bank of Elk Creek February County State Bank, he was a cashier Changes Made in Gothenburg
Terry O. Jensen was recently
10. Both towns are located in John­ at Nebraska State Bank at Ord.
hired as senior vice president of
son County.
Mr. Hale was with State National
Approval was received later in the Bank, Wayne since 1983, as assis­ First State Bank, Gothenburg.
Other changes were the promotions
month from the state banking de­ tant vice president.
of
Marion Tatum to executive vice
partment to change the name to
Colleen M. Larson has been with
Johnson County Bank, Elk Creek, the bank since 1979, and was pre­ president and Loyal Reinhard to
vice president.
with an office in Tecumseh.
viously administrative assistant.
State Bank paid FDIC $476,500
for the Johnson County Bank, which
Promoted in Silver Creek
had assets of $19 million, deposits of Pres. Named in Bellevue
G.A. Ferris has been promoted
$18.2 million, loans of about $10.5
Michael J. Walts has been named
from
executive vice president to
million and 4,900 deposit accounts. president of Affiliated Midwest
president at Farmers State Bank in
The new Johnson County Bank is Banc, Inc. The
Silver Creek. L. Clark Caley will re­
one of a group owned and managed Bellevue-based
main
as board chairman.
by the Financial Group Banking organization is
Companies, reporting assets of $58 the management
Promoted, Added
million, with locations in Humboldt, company for six
Tecumseh, Elk Creek, Dawson and banks in four
in North Platte
Louisville. The lead bank is Home Midwest states:
The North Platte National Bank
State Bank & Trust Company, Bank of Belle­
has announced the promotion of
Humboldt, which had 1985 year-end vue and TriWilliam Giesler to vice president
assets of $26,034,000. It maintains a C ounty B ank
and senior loan officer and the addi­
Louisville office under the name of and Trust Com­
tion of Roger Wark as a new ag offi­
M.J. WALTS
Louisville Bank—A Branch of Home pany, in Belle­
cer.
State Bank & Trust Company, vue; Otoe County National Bank
Mr. Giesler joined the staff in
Humboldt. The Dawson Bank in and Trust in Nebraska City; Boone 1982. He was previously vice presi­
Dawson had 1985 year-end assets of State Bank and Trust in Boone, dent and commercial loan officer.
$7,397,000.
Iowa; Standard State Bank in Inde­
Mr. Wark was previously an agri­
Otto Kotouc, Jr., is chairman, and pendence, Mo., and First National cultural loan officer at First Na­
his son, John F. Kotouc, is president Bank of Bowman and Scranton in tional Bank and Trust Company of
and CEO of the three banks. John Bowman, N.D.
Great Bend, Kan., and later served
Kotouc also is president and CEO of
Mr. Walts joined Affiliated in in that capacity at the First Na­
American National Bank in Omaha. 1981 as a vice president and trust of­ tional Bank and Trust Company of
John Kotouc is president and ficer. He was named senior vice Kearney.
CEO of Financial Group Banking president and chief financial officer
Companies and announced last in 1983.
month the election of Allan G. Loz­
Prior to joining Affiliated, he Promoted in Sioux City
ier, chairman of Lozier Corporation served as a senior vice president at
Merle Long has been promoted to
in Omaha, to the FGBC board of di­ University State Bank in Lawrence, vice president of Nebraska State
rectors and to the board of the John­ Kan.
Bank, South Sioux City.
son County Bank. Mr. Lozier also is
Mr. Long joined the bank in 1984
chairman of American National
in the commercial loan department.
Changes Made in Hebron
Bank in Omaha.
Prior to Nebraska State Bank, he
Patrick W. Kenner has been was employed with the Iowa Depart­
Three Promoted in Sioux City named CEO of Thayer County ment of Banking as an examiner and
Bruce Krueger was promoted to Bank, Hebron. At 25, he becomes headquartered in LeMars, Iowa.

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Federal Reserve Bank of St. Louis

Northwestern Banker, March, 19Qfi

dents of Northern Bank.
Mr. Fleer, a banker for 21 years,
was formerly assistant vice presi­
dent of commercial loans.

G.H. FLEER

illiam C. Smith has been named
W
president and chief executive
officer of Omaha National Bank, ac­
cording to John D. Woods, board
chairman and chief executive officer
of FirsTier, Inc.
Mr. Smith also serves as presi­
dent and chief operating officer of
FirsTier, Inc., Omaha National’s
holding company, and as president
and chief executive officer of First
National Bank & Trust Co. of Lin­
coln, another FirsTier company.

W.C. SMITH

G.K. THRASHER

Mr. Woods also announced that
Gary K. Thrasher has been pro­
moted to senior executive vice presi­
dent of Omaha National.
“We believe that having Bill at
the helm of both FirsTier banks will
allow us to better capitalize on the
potential synergies that can result
from the banks working closely
together,” said Mr. Woods.
“While Omaha National and First
National Lincoln remain separate
organizations, our intent since our
merger has been to take advantage
of every opportunity to work jointly
to achieve both operating efficien­
cies and improved customer service.
This ability will be enhanced with
Bill as president of both banks.”
Mr. Woods also said Mr. Smith
will play an integral role in combin­

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ing the two banks’ data processing
operations in a new FirsTier subsi­
diary, FirsTier Data Services, Inc.
A native of Plainview, Nebr., Mr.
Smith joined the Continental Na­
tional Bank & Trust Co. of Lincoln
as a trainee in 1955 following gradu­
ation from the University of Nebraska-Lincoln.
Later he joined the trust depart­
ment and was named vice president
of trust investments of First Na­
tional Lincoln in 1961 following the
merger of First National and Conti­
nental National.
Mr. Smith was named vice presi­
dent of the trust department in
1964, executive vice president in
1968, president in 1969 and chief ex­
ecutive officer in 1976. He became
president and chief operating officer
of FirsTier, Inc., when the holding
company was formed following the
1984 merger of Omaha National
Corporation and First National Lin­
coln Corp.
Mr. Thrasher joined the bank in
1970 as an administrative analyst in
the controllers department. He be­
came a commercial loan officer in
1972, was named a vice president in
1974 and head of the commercial
banking department in 1976. Mr.
Thrasher was named head of the re­
source management and credit re­
view department in 1979 and was
promoted to senior vice president in
1980. He has served as executive
vice president since 1984.
*

*

*

Gordon H. Fleer and Robert C.
Stringer have been named vice presi-

R.C. STRINGER

Mr. Stringer, also a banker for 21
years, was promoted from assistant
vice president of installment loans.
* * *
Several officer appointments were
announced last month by John E.
Woods, chairman of the board of
Omaha National Bank.
Named vice presidents were Gre­
gory K. Blow, Stephen J. Hatz, Ron­
ald E. Mohr, M. Scott Newberry,
Carl F. Nielson, Gail A. Shook and
Jack L. Smith.
Mr. Blow joined Wyoming Trust
and Management Co., another subsi­
diary of FirsTier, Inc., Omaha Na­
tional’s holding company, in 1979 as
trust officer. He is currently trust
administrator responsible for trust
activity for Omaha National from
its offices in Grand Island and Kea r­
ney.

G.K. BLOW

S.J. HATZ

Mr. Hatz joined Omaha National
in 1984 as second vice president and
senior loan officer. He was named
manager of the agricultural lending
group last year.
Mr. Mohr joined the bank in 1967
as an accountant. He recently as­
sumed the position of controller for
Omaha National.
Mr. Newberry, who began his
career with Omaha National in 1972,
has served as manager of two oper-

51

The
Anchormen
A

Change comes fast in today’s
banking — so fast you need
an anchor of stability and
dependability.
Meet the anchormen — the
experienced, professional corre­
spondent bankers of First National
Bank of Omaha.
The more things change, the
stronger is their commitment to

dependably and consistently
Call them toll-free — in
meeting all your correspondent
Nebraska 1-800-642-9907; outside
banking needs.
Nebraska, 1-800-228-9533.
And the faster things change, the
faster the anchormen respond —
with the latest financial technology
at their fingertips and the historic
financial strength of First National
of om aha
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firs! national bank

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.


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

Northwestern Banker, March, 1986

52
Nebraska News
ating departments and as a corres­ Association of the Midlands (PCA).
pondent banking officer. He is pre­ Mr. Cameron has over 24 years of
sently a senior commercial banking experience in PCAs and the Federal
Intermediate Bank. He will continue
officer.
in his current position as vice president/supervisory services, in addi­
tion to his new responsibilities.
Carla Timm, FCBO assistant vice
president/administration, supervi­
sory services, will also be associa­
tion corporate secretary. She has
over 12 years of farm credit experi­
ence.
Carroll Vaughn will serve as vice
president/association financial oper­
M.S. NEWBERRY
R.E. MOHR
ations and treasurer. Mr. Vaughn
first joined Farm Credit Banks of
Mr. Nielson joined the bank as an Omaha in 1975. He will also assume
attorney in 1977 and currently is an responsibility as FCBO vice presi­
attorney in credit services.
dent and treasurer in addition to his
Ms. Shook joined ONB in 1979 as PCA duties.
a senior investment representative.
Charles Caldwell will hold the po­
Presently she is group manager in sition of vice president and associa­
the investments division.
tion general counsel. Mr. Caldwell
joined the FCBO in 1976. He will
also continue to serve in his current
positions at FCBO assistant general
counsel.
The PCA of the Midlands makes
short and intermediate term loans to
farmers and ranchers in Iowa, Neb­
raska, South Dakota and Wyoming.
The employees will coordinate many
of the day-to-day activities involved
in the Farm Credit Banks of
C.F. NIELSON
G.A. SHOOK
Omaha’s agreement to provide man­
agement and administrative ser­
vices for the PCA, according to
Larry Shepherd, CEO of the PCA.
*

J.L. SMITH

J.R. TURNER

Mr. Smith joined the bank in 1983
as a second vice president and agri­
cultural loan officer in the agricul­
tural lending office in Fort Collins,
Colo., where he is now manager.
Named a second vice president
was James R. Turner, who started
with Omaha National as a work an­
alyst in 1979. He is head of the fixed
income section in the trust invest­
ment department.
* * *
Gale Cameron will serve as vice
president/association operations of
the newly-formed Production Credit

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

*

status: William J. Hoelting, private
banking; Jerald Lundgren, agricul­
tural banking, and Curtis W.
Mickey, special loan administration
at the Grand Island Bank location.
Mr. Hoelting was previously an
executive banking officer and began
working at Norwest Bank in 1980.
Mr. Lundgren began working for
Norwest in Owatonna, Minn., in

M.E. HANSON

W.J. HOELTING

1972 and transferred to Omaha in
1985. He was previously an agricul­
tural loan officer. Mr. Mickey, who
began working as a loan officer for
the Federal Land Banks in 1970,
moved to Grand Island in 1980 and
in 1982 was promoted to vice presi­
dent and branch manager for the
Federal Land Banks in Grand
Island. He joined Norwest in
January.

*

Norwest Bank Nebraska, N.A.
has announced several promotions.
D avid
C.
Koenigsman has
been promoted
to senior vice
president/ man­
ager of the busi­
ness banking de­
p a rtm e n t. He
was previously
vice president in
the special loan
ad m in istratio n
area. He began working at the bank
in 1962.
Michael E. Hanson has been pro­
moted to vice president/manager of
operations. He was previously assis­
tant vice president. He began work­
ing for Norwest Information Sys­
tems in Des Moines, Iowa in 1974.
The following have been pro­
moted to assistant vice president

J. LUNDGREN

C.W. MICKEY

The following have also been pro­
moted: Steven R. Bechen to agricul­
tural loan officer; Mary Ann Hession to human resources officer;
Dennis Cunningham to operations
officer/manager technical services,
and Robert J. McCormick to opera­
tions officer and operational ana­
lyst.
* * *
Six division heads have been
named for FirsTier Data Services,
Inc., a recently formed subsidiary of
FirsTier, Inc., Omaha.
FirsTier Data Services will pro­
vide data processing services to 150
correspondent banks and more than
400 other companies in a 13-state
area, as well as being responsible for
data processing services for all Firs­
Tier subsidiaries.

Nebraska News

Miles L. Havekost has been
named to vice president/operations
division. He formerly managed cor­
porate and financial operations for
Omaha National Bank.

Thomas B. Ferrell has been
named to vice president of the devel­
opment center. He was formerly
manager of data processing at the
Peoples Bank and Trust Company, a
North Carolina-based bank.

manager of corporate and financial
services for Omaha National.
Michael T. McGregor will serve as
client services manager for the mar­
keting and sales support division,
and Paul Wendell will be sales man­
ager of that division.
*

M.L. HAVEKOST

J.W. BLACKETER
E.L. PHILLIPS

R.D. NELSON

John M. Carmichael will be vice
president in charge of the end-user
computing division. He formerly
managed the information center at
Omaha National.
E. Loraine Phillips has been
named to vice president/administrative division. She was formerly vice
T.B. FERRELL
J.M. CARMICHAEL
president and manager/account ser­
John W. Blacketer will serve as vices for Peoples Bank and Trust
vice president of the production cen­ Co., North Carolina.
ter. He was formerly manager of in­
Richard D. Nelson will serve as
formation systems for Omaha Na­ vice president/marketing and sales
tional.
support division. He was formerly

53

*

*

David S. Mclntire has been pro­
moted to trust officer of American
National Bank of Omaha. Mr. Mcln­
tire joined the bank in 1982, and in
1983 became a member of the bank’s
trust department. His primary duty
is in the administration of employee
benefit accounts.
* * *
Omaha National Bank has filed
an application with the Office of the
Comptroller of the Currency to es­
tablish a branch office at 12815 Ar­
bor St., Omaha. The application was
filed on January 15.
*

*

*

Douglas County Bank and Trust
Company, Omaha has filed an appli­
cation to establish a detached auxili­
ary office to be located at 9290 W.
Dodge Rd., Omaha. The application
was filed January 7 with the Neb­
raska Department of Banking.
rate banking division.
Promoted to assistant vice presi­
dent were Gothard “Ole” Friesen,
Randy Gustafson, Jeff Krejci and J.
Mark Klasek.

Lincoln
The board of National Bank of
Commerce, Lincoln, has approved a
number of new officer promotions
and elections.
John Sable has been elected as se­
nior vice president and Roy Otte,
Brad Korell and Mike Jacobson
have been promoted to senior vice
president.
Mr. Sable is senior vice president
of finance, secretary and treasurer of
First Commerce Bancshares, Inc.
Mr. Otte is head of the bank in­
vestment division. Prior to coming
to NBC in 1973, he worked with sev­

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

J. SABLE

eral large investment companies.
Mr. Korell is head of corporate
banking division. He joined NBC in
1974.
Mr. Jacobson is head of corres­
pondent banking division. Before
coming to NBC in 1984, he was exec­
utive vice president at City National
Bank in Hastings.
Stuart Bartruff and Jo Kinsey
B. KORELL
M. JACOBSON
were promoted to vice presidents.
Mr. Bartruff is heading the loan ser­
Jacquelyn J. Hawkins was elected
vices administration department, personal banking officer.
and Ms. Kinsey will be in charge of
Catherine Morrissey and Leland
business development for the corpo­ Poppe were elected as correspondent
Northwestern Banker, March, 1986

Nebraska News
54
banking officers. Mark Wible was ing State bank became official Janu­
elected as a corporate banking offi­ ary 31.
cer.
Suzanne Klein was elected em­
ployee benefit trust officer and Ag Outlook Conference Set
Timothy Tighe was elected farm and For March 19-20
ranch officer.
The Nebraska Bankers Associa­
Rod Morten has been promoted to
customer services officer and Bob tion will be holding its annual Ag
Lynch has been promoted to sys­ Outlook Conference on March 19-20
at the Kearney Holiday Inn.
tems officer.
Along with the annual grain, cat­
tle and hog outlook, this year’s con­
Lyons and Uehling Bks. Merge ference will feature keynote speaker
A merger between the First Na­ Dr. Neil Harl, Charles F. Curtiss
tional Bank of Lyons and the Uehl- Distinguished Professor in Agricul­
ture and professor of economics at
Iowa State University, Ames, Iowa.
Dr. Harl will be presenting the total
Talk To The Municipal
picture in agriculture. That evening
will feature a reception and the area
Bond Professionals
bankers dinner w ith “ B axter
Black,” a cowboy whom the Denver
Post describes as being like “Will
Roger’s weird grandson.”
The conference will adjourn at
noon on the 20th.
The Ag Outlook Conference is
William March
Robert E. Roh
sponsored by the NBA lending com­
President
Exec. Vice President
mittee and developed to address the
major topics affecting the farm in­
dustry today and in the future. Serv­
ing as chairman of this year’s com­
mittee is Greg D. Stine of Nebraska
State Bank, Ord.
Patrick H. Rensch

C.W. (Chuck) Poore, Jr.

Sr. Vice President

Sr Vice President

Nebraska Bankers Plan
NABW Conference

Bill Abts, Jr.

Wayne A. Rasmuss

Vice President

Secretary-Treasurer

Micky Krupinsky

John Trecek

Representative

Counsel

For municipal bond OFFERINGS,
BIDS and APPRAISALS, call on
the professionals who specialize
in tax-free bonds.

Municipal Bond
Underwriters, Inc.
Investment Bankers • Underwriters
208 South 19th Street, Omaha, Nebraska 68102
(402) 341-1144

In Nebraska Call Toll Free (800) 642-4413


Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Focusing on “Banking: Manage­
ment for Profit,” the Nebraska
State Conference of the National
Association of Bank Women, Inc.,
will be held April 10-12 at the Holi­
day Inn, North Platte. The confer­
ence is being planned by the Platte
Valley and southwestern groups of
Nebraska.
A one day workshop dealing with
personal productivity will be held
April 10 and precede the conference.
Also on April 10, an all-day state
council training session will be held.
Kicking of the conference pro­
gram at 9:15 a.m. on April 11 will be
a welcome from James Kirkman,
North Platte mayor and Mel
Adams, NBA president. Jean Arensdorf, conference chairman will pre­
side at the opening ceremonies. Vir­
ginia Higenbotham, vice president
of Parkview Management Corpora­
tion, Pueblo, Colo., will deliver the
keynote address, “Competing on a
Shifting Playing Field.”
Other general sessions and work­

shops will present information on
decision making, interviewing, mak­
ing life and work more enjoyable,
bankruptcy laws and state finances
and Nebraska’s economy.
For more information, contact
Georgia Supanchick at Adams Bank
& Trust-Brule.

Spencer Banker Dies
V. LeRoy Nyquist, vice president
and cashier at Spencer State Bank
has died.
Mr. Nyquist was a native of Spen­
cer and had been with the bank since
1965. He also served as a director of
the bank.

North Platte Banker Dies
J.Y. Castle, retired North Platte
banker, has died at the age of 89.
Mr. Castle had been in the bank­
ing business 63 years, starting at
the Grant County State Bank in
Ashby in 1919. In 1928, he became a
bank examiner for the State of Neb­
raska. He became associated with
the McDonald State Bank in North
Platte in 1936 as a cashier. He was
president from 1948 until 1967, at
which time he became chairman, the
position he held until his retirement
in 1981.

Elected in Schuyler
Jerry Karnatz has been elected to
the board of First National Bank,
Schuyler. Mr. Karnatz presently
holds the position of senior vice
president and cashier with First Na­
tional. He has been with the bank
since 1980.

Elected in Gordon
Carol K. Lindsey has been elected
as assistant cashier at Gordon State
Bank. She has been with the bank
since 1980. Ms. Lindsey will be in
charge of the bookkeeping or ac­
counting area.

Joe Selby Plans to Retire
Comptroller of the Currency
Robert L. Clarke announced recent­
ly that Senior Deputy Comptroller
for Bank Supervision H. Joe Selby
plans to retire at the end of March.

55
customers service officer and trust
administration officer.
Nebraska News

Promoted in Benkelman;
Retired Banker Dies
Douglas G. Hoschouer has been
promoted from cashier to vice presi­
dent and cashier and Sharon L.
Rhoades was elected loan account­
ing officer at State Bank, Benkel­
man.
J. Milo Spaulding, recently re­
tired vice president, has passed
away. He had been employed by
State Bank for 25 years.

Promoted in Scribner

Mrs. Morrison joined the bank in
1966. She was named assistant cash­
ier in 1981, and in 1982, was also
named as assistant trust officer. She
also serves as personnel officer and
supervises loan accounting and the
bank’s escrow department.
Mrs. Evans has been with the
bank since 1970. She was named
assistant cashier in 1980. As cash­
ier, she becomes the chief operations
officer of the bank.

Appointed in Minden
Deborah Olson and Ethel Smith
have been appointed as assistant
cashiers at First National Bank of
Minden.
Mrs. Olson is in charge of the loan
accounting department and Mrs.
Smith is responsible for cash man­
agement and certificates of deposit.

Promoted in Falls City

Kathy S. Rieschick was promoted Elected in Jansen
Three employees at Scribner to assistant vice president and trust
Pamela Siebolt has been elected
Bank have been promoted to vice administration officer at First Na­ assistant cashier at State Bank of
president status: Joan G. Moeller; tional Bank and Trust Company, Jansen. She has been with the bank
Martin F. Koopman, ag representa­ Falls City. Previously, she was a on a full-time basis since 1984.
tive, and Myron H. Groppe, cashier.
Ms. Moeller was promoted from
assistant vice president. She has
been with the bank since 1971.
EPOSITS and loan figures for the top banks in Nebraska with $50
Mr. Koopman has been with the
million deposits or more are shown in the accompanying chart as
bank since 1978 and has been a cash­
they were reported at year-end. Comparative figures for a year ago also
ier and assistant vice president.
Mr. Groppe has been with the are featured.
bank since 1962.
(Last three figures omitted)

Largest Banks in Nebraska

D

Changes Made in Alliance
Several staff changes have oc­
curred recently at The Guardian
State Bank and Trust Company,
Alliance.
Michael K. Darveau has been
hired as vice president. He was for­
merly with the Production Credit
Association.
Daryle E. Krejci has been hired as
assistant vice president. He was for­
merly with the Farmers Home Ad­
ministration.
Brian W. Lundy was promoted to
vice president and Idonna M. Minnick to assistant cashier.
At the Cody Branch, Delbert D.
Fullerton was promoted to assistant
cashier and Janice M. Lallman was
promoted to assistant vice presi­
dent.

Advanced in Valparaiso
Robert J. Schmucker has been ad­
vanced from cashier to vice presi­
dent and cashier at Oak Creek
Valley Bank, Valparaiso. Sharon
Benes and Jo Ann Sercl have both
been elected as assistant cashier.

Promoted in North Platte
Linda Morrison has been pro­
moted to assistant vice president
and Nickette Evans to cashier at
McDonald S tate Bank, N orth
Platte.

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

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.

Norwest Bank Nebraska, N.A.1.
Omaha Natl. B a n k ....................
First Natl. Bank, Lincoln..........
First Natl., O m aha....................
Natl. Bk. of Comm., Lincoln . . .
First Natl. B&T, Columbus . . . .
DeLay First Natl. B&T, Norfolk .
Scottsbluff Natl. B & T ..............
Union B&T, Lincoln..................
Douglas County B&T, Omaha..
First Natl., H oldrege................
First Westside Bank, Omaha ..
First Natl., Y o r k ........................
Southwest B&T, O m a h a ..........
Packers Natl., O m aha..............
City Natl. B&T, Hastings..........
Fremont Natl. B&T....................
First Natl. B&T, Kearney..........
First Natl. B&T, Fremont..........
Guardian State B&T, Alliance..
First Natl., McCook..................
McCook Natl. B a n k ..................
Gerlng Natl. B&T, Gering..........
First Natl. B&T, North P la tte ...
Platte Valley St. B&T, Kearney .
First Natl., Fairbury..................
Jones Natl. B&T, Seward ........
Gateway B&T, Lincoln..............
Washington County Bk., Blair .
Beatrice Natl. B&T, Beatrice. . .
American Natl., Omaha............
Overland Natl., Grand Island ..
First Natl. B&T, Beatrice..........
Minden Exchange B&T, Minden
North Side Bank, Omaha..........
York State B&T, York................
Geneva State Bank, Geneva . . .
First Natl., David City ..............
State Natl. B&T, Wayne............
American Natl. Bk. of Sidney ..

December 31, 1985
December 31, 1984
Deposits
Loans Deposits
Loans
$1,145,307
$809,887 $1,156,353
$896,538
938,110
875,387
685,530
693,704
742,782
468,603
699,398
457,219
639,413
465,830
526,763
414,414
372,061
199,489
340,902
215,978
176,514
92,081
164,361
94,694
148,896
70,934
133,993
71,142
129,030
65,588
121,758
67,038
116,728
59,579
83,095
51,417
116,081
90,182
101,562
79,411
111,582
70,187
104,125
76,770
105,879
67,760
96,743
62,379
105,141
64,842
84,280
61,507
96,011
47,870
85,753
45,293
92,144
44,406
99,359
59,902
90,120
49,522
90,687
65,470
89,514
44,919
81,207
42,801
87,486
54,289
90,661
63,266
87,109
51,280
92,403
49,176
86,959
65,232
84,420
59,796
83,923
48,181
82,509
55,088
82,156
45,031
76,261
47,589
81,353
61,577
84,500
67,966
80,433
40,577
92,893
49,871
79,275
48,862
81,712
60,781
73,906
29,313
69,163
30,631
67,503
27,593
62,649
29,454
66,779
49,562
63,622
47,927
63,271
29,810
64,235
40,804
62,125
36,094
63,974
40,772
59,833
25,399
65,244
32,689
59,044
28,588
60,223
32,274
58,293
30,065
53,976
28,621
57,920
29,782
51,914
22,293
57,647
37,500
56,386
37,514
57,176
36,150
57,705
38280
54,537
32,874
51,200
36,923
53,650
19,678
51,199
22,293
53,562
27,240
59,619
36,758
53,039
19,570
50,251
24,054

’Norwest Bank Omaha, N.A.; Norwest Bank Hastings, N.A.; Norwest Bank Omaha
South, N.A.; Norwest Bank Grand Island, N.A.; Norwest Bank Omaha West; Norwest Bank
Norfolk, N.A., and Bank of Millard, Omaha have all merged into Norwest Bank Nebraska,
N.A.
Northwestern Banker, March, 1986

56

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Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

8:45

9:15
J. Bruce M eriw ether, pres., Dubuque
N. Milner, exec, v.p., Des Moines

I BA Ag Conf. Addresses Farm Problems
URRENT agricultural condi­
tions have created obstacles for
C
many of Iowa’s ag lenders and their
farm customers, but with obstacles
come opportunities for those who
are ready to accept the challenge.
The 1986 Ag Credit Conference,
sponsored by the Iowa Bankers As­
sociation, offers a forum in which
participants can discover new oppor­
tunities.
The conference, scheduled for
March 17-19 at the Scheman Center
located at Iowa State University in
Ames, will also feature expert speak­
ers and numerous exhibitors dis­
playing the latest agricultural pro­
ducts and services available to
banks. Contact the IB A for more in­
formation. The program is as fol­
lows:
Monday, March 17
P.M.
12:00 Registration
1:00
“Turning Obstacles Into
Opportunities’’—Dr. Char­
les Bell, psychologist and
business consultant, Des
Moines.
Break
3:00
Workshop Resumes
3:30
5:00
Exhibit Hall Reception
Dinner on Your Own
6:30
Tuesday, March 18
A.M.
7:30
Continental Breakfast
Welcome/Introduction of Ag
8:15
Committee
“Eye on W ashington” —
8:30
Orion Samuelson, farm ser­
vice dir., WGN radio and
television.
9:30
“W hat’s Ahead for the State
Banking Department’’—Bill
Bernau, Iowa superintedent
of banking.
10:00 Break
10:30 “ Credit A nalysis Farm
Management and Loan Doc­
umentation’’—Dr. David M.


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Kohl, assoc, prof, of agricul­
ture finance, Virginia Poly­
technic Institute & State
University, Blacksburg, Va.
P.M.

9:45
10:15

10:30

57
“In Search of Opportuni­
ties”—J. Bruce Meriwether,
IBA pres, and pres, of The
First National Bank, Dubu­
que.
“ B ein g a C oncerned
B an k e r’’—Tim Jackson,
Iowa State University Ex­
tension project attorney/Rural Concern, Des Moines and
Phil Smith, dir. of human re­
sources, Office of Planning
and Program m ing, Des
Moines.
Break
“Legislative Update”—Neal
Conover, chmn., The First
National Bank of Creston,
Creston.
“Alternatives, Exemptions
and Procedures’’—Larry
Eide, attorney, Pappajohn,
Shriver, Eide and Nicholas,
Mason City.
“Successful Case Studies
From an Iowa Banker”—
Chuck Souder, v.p. and agri.
rep., First Security Bank &
Trust Company, Charles
City.
Questions and Answers

Lunch/Senior Ag Finance
Students
1:30
Concurrent Workshops:
“Quick & Dirty Methods for
Analyzing a Financial State­
ment’’—Dr. David Kohl.
“A Procedures Workout of
New Ag Programs’’—Bob
Pirn, state dir., FmHA; Con­
rad Lawlor, dist. dir., SBA; 11:30
Bill Greiner, exec, dir., Iowa P.M.
Family Farm Development 12:00 Lunch
Authority.
12:30 “Fixin’ the Problem, Not
“Using Mediation as a Form
the Blame”—Rolland “Pig”
of N e g o tia tio n s’’—Mike
Paul, owner/manager, Pork
Thompson, exec, dir., Iowa
Plantation, Willow Springs,
Farmer/Creditor Mediation
Mo.
Service, Des Moines.
Break
3:00
Workshops Repeated
3:30
A d jo u rn m en t/D in n er on Sanborn Pres. Elected
5:00
Your Own
James P. Cravens has been
Wednesday, March 19
elected president of the Sanborn
A.M.
Savings Bank.
Continental Breakfast.
7:30
Mr. Cravens has been employed
8:00
“Changes & Challenges Fac­ by the bank for the past twelve
ing the Farm Credit Sys­ years. He replaces James W. Cra­
tem’’—Marv Duncan, sr. de­ vens as president. The former presi­
puty gov., Farm Credit Ad­ dent will remain as chairman of the
ministration.
board.
12:00

1986 Iowa Group Meetings
Group
4
7
8
6
5
2
12
3

Date
May 5
May 6
May 7
May 8
May 19
May 20
May 21
May 22

Location
Dubuque
Waterloo
Iowa City
Des Moines
Council Bluffs
Fort Dodge
Okoboji
Clear Lake

Northwestern Banker, March, 1986

58

Iowa News

LEFT—At Group 1 in Sioux City, from left to right: J. Bruce Meriwether, pres, of IBA and of 1st Natl., Dubuque; Bill Hess, chmn. Gp. 1 and
pres., Iowa Savings, Coon Rapids; Jim Miller, secy. Gp. 1 and chmn., Pioneer Valley Springs, Sergeant Blulf, and Neil Milner, exec. v.p. IBA.
RIGHT—At Gp. 11 in Burlington, from left: Dan Doyle, new secy. Gp. 11 and pres., Wellman Savings; Bill Bernau, la. supt. of bkg. and pres.,
Peoples Savings, Crawfordsvllle; Mr. Meriwether, and Ed Johnstone, chmn. Gp. 11 and pres., Keokuk Savings B&T.

Group Meetings Hampered By Weather
By BEN HALLER, JR., Publisher
and
BOB CRONIN, Associate Publisher
ROUPS l and l l of the Iowa
G
Bankers Association hosted
their annual meetings last month in
South Sioux City and Burlington.
Attendance was 466 at Group 1,
about 100 less than 1985, while re­
gistration at Group 11 was 350 in
advance, also down from last year.
The full number could not show up
at Burlington because of a severe ice
storm and fog which made travel
hazardous in the southeastern part
of the state and inhibited the usual
door registrations. Bad weather also
hampered Group 1 attendance.
Since Group 11 Chairman William
R. Bernau, president of Peoples Sav­
ings Bank in Crawfordsville, was ap­
pointed Iowa superintendent of
banking January 10 by Gov. Terry
Branstad, Mr. Bernau had to vacate
his Group 1 post and resign as a
member of the IBA board of direc­

tors. Edward K. Johnstone, II, pres­
ident of Keokuk Savings Bank &
Trust Co., was advanced from secre­
tary to chairman. The newly-elected
Group 11 secretary is Daniel H.
Doyle, president of Wellman Sav­
ings Bank. Since odd-numbered
groups Eire elected in odd-numbered
years, those two will hold office until
the February, 1989 election.
IBA President J. Bruce Meri­
wether, president, First National
Bank of Dubuque, addressed both
group meetings, as well as the
Northwest Iowa NABW annual
breakfast meeting during the Group
1 session. He stressed a new optim­
ism, noting that “future generations
will be beneficiaries of the greatest
overall developments in the history
of the state. Our deep problems have
generated this response by Iowans
who are not content to remain

mired.”
Mr. Meriwether also stressed that
self-help is becoming more evident
in Iowa communities, frequently
with banker leadership and support.
He cautioned bankers to “make sure
you know what the meirket place is
asking of your bank.” He also
pointed out that despite the failure
of 58 banks in a five-state area last
year, a more positive approach
shows that “2800 to 2900 banks are
serving the public, still providing
the lifeline of their communities,
still providing for our schools, chur­
ches and cities...The resilience of the
banking community can sustain and
is sustaining banks in this crisis.
They are well capitalized to with­
stand the shocks hitting them and
are well positioned to move forweird
to help their communities grow and
be prosperous.”
Mr. Meriwether also told his audi­
ences of the diligent efforts being
put forth by IBA staff and elected
officers to work in concert with
other state associations, ABA and
IBAA “to seek positive solutions.”

LEFT—Three special guests addressed Gp. 1 bankers. From left: Silas Keehn, pres., Federal Reserve Bank of Chicago; Mr. Meriwether;
Iowa Gov. Terry Branstad; Mr. Milner, and So. Dak. Gov. Wm. Janklow. RIGHT— Pictured at Northwest Iowa NABW annual Gp. 1 breakfast
are: Beverly Jensen, v.p. & cash., and Debbie Smith, a.c., both with 1st Natl., Sioux City; Mr. Meriwether, program speaker, and Phyllis
Davis, cash., Citizens Savings, Sac City.

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Federal Reserve Bank of St. Louis

59

FLEX-0 -PAY,
important
new profit
center
for
your bank


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Federal Reserve Bank of St. Louis

The unique Flex-O-Pay» computerized billing system
was developed to solve one of the current problems
faced by many bankers. How do you generate additional
income from your present staff and equipment? This
simple, flexible plan is easy to operate, yet it can
become one of your most important profit centers.
This is a computerized local billing/credit service that
provides a consistent source of cash flow for your local
business customers. You generate income for your bank
through the discount on receivables. And you profit by
the finance charges on accounts with balances that have
been billed over 30 days.
For complete information, call Toll FREE anywhere
in Iowa . . . 1 8 0 0 772-2411 and ask for LeRoy Bell
or write The National Bank of Waterloo, 315 East 5th
Street, Waterloo, Iowa 50703.
-

-

Northwestern Banker, March, 1986

60

Iowa News

LEFT— Posing beneath the famous “Charlie’s Tap” sign, hospitality room for Farmers & Merchants B&T of Burlington, are: Jim Kacena,
dir., and Charles Walsh, v.p., F&M Bank, Burlington, with Jim Jensen, v.p., and Al Tinder, pres., of IBIS, Des Moines. RIGHT—Joan and Bill
Logan, pres., State Central Bank, Keokuk, and immed. past pres, of IBA, visit with Shirley Meriwether, whose husband is current IBA pres.

LEFT—Arvid Anderson, dir., Peoples Savings, Crawfordsville; John Rigler, v.p., Norwest Bank, Des Moines; Ardis Glace, whose husband is
with Norwest Bank, and Don Klenske, v.p., 1st Natl., Burlington. RIGHT—Glen Altflllisch, sales repr., U.S. Check Book Co., Ankeny, and his
wife, Dorothy, with Dan Doyle, pres., and his wife, Ann, v.p., of Wellman Savings.

He described efforts of the joint
ABA—IB A A Ag Task Force and
their recommendations. Results of
the Task Force February 13-14
meeting, as reported by Mr. Meri­
wether at Burlington, are outlined in
the February 24 Weekly Newsletter.
He concluded by saying, “I ’m ex­
cited about the re-tooling going on
in Iowa at all levels, the pulling
together, the community develop­
ment, with Iowa bankers leading the
way in each community!”
Group 1 featured three prominent
guest speakers. Silas Keehn, presi­
dent of the Federal Reserve Bank of
Chicago, addressed a private meet­
ing of about 100 bankers for the se­
cond straight year.
Mr. Keehn took the first fifteen
minutes to discuss current issues,
and then allowed bankers the oppor­
tunity to ask him questions. He
noted that Illinois farm land values
had stabalized in the 4th quarter of
1985, “and th a t’s a good sign for
agricultural land values as a whole,”


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Federal Reserve Bank of St. Louis

Mr. Keehn said. It was noted by one
banker and applauded by many that
the selling price for Iowa land is
much higher than what is being pub­
lished to the public - sometimes as
much as $200-300 per acre. Mr.
Keehn said he feels we are heading
into a “zone stability period of
time,” and things look better now
than they did one year ago at this
time. According to Mr. Keehn, many
banks are reporting significant loan
reduction, more deposits, and a fair­
ly high capital position. In conclu­
sion, Mr. Keehn asked those in at­
tendance if they felt “the situation
would get worse before it gets betW .” Nearly 75% raised their hands.
At the Burlington meeting, Mr.
Meriwether related his experience of
appearing briefly on the Phil Dona­
hue TV show in Cedar Rapids in
mid-February. He said “the most
meaningful part of the program was
afterwards. No less than 50 farm
couples came up to speak to me and

said they recognized the stress
bankers were undergoing in this cri­
sis and wanted me to know they did
not consider bankers were respon­
sible for these problems. They ex­
pressed their reliance on bankers to
bring them through this crisis. They
said if there was a public perception
that farmers and bankers are in an
adversarial position then that was
wrong. I didn’t detect any negative
feelings during and after the pro­
gram for bankers. That was very im­
portant to me. The most common
specific criticism was of the govern­
ment and its inability to be sensitive
to the farm problem and to the defi­
cit. They said the Farm Credit Sys­
tem would continue to be bureaucra­
tic and unsympathetic with the
problems of farmers.
Iowa Governor Terry Branstad
and South Dakota Governor Wil­
liam Janklow both addressed the
Group 1 meeting. Gov. Branstad
said the sagging Iowa farm economy
has caused “a $40 billion loss in the

Iowa News

61

Dean Edwards, pres., Rubio Savings, Brighton, and his wife, Jeanette; with Jerry Trudo and John Martin, v.p.’s, Merchants Natl., Cedar
Rapids; Tom Schulte, pres., Mediapolis Savings; Dan Kelley, pres., Danville State Savings, and John Rumley, v.p., Mediapolis Savings.

LEFT—All seated, left to right, Lois Broderick, Karen DenHerder, and Carol Stevenson; standing, Mike Broderick, pres., First American,
Canton, S.D.; Dale DenHerder, pres., American State, Sioux Center, and Gary Stevenson, v.p., First Natl., Sioux City. RIGHT— Bruce Kolbe,
pres., First Interstate, Sioux City, with Dick Muir, v.p., United Missouri Bank of Kansas City.

worst farm depression in 50 years.
I ’m proud to say I think Iowa bank­
ers have acted with reasonableness
and forbearance with farmers. We
must give our people faith and hope,
and I want you to know that as Gov­
ernor I appreciate the fairness and
forbearance with which you have
acted; the sensitivity with which
you have acted in dealing with peo­
ple who have been hurt. Through
your patience and with your aggres­
sive help in the guaranty loan pro­
gram last spring we did get a crop in
the field. In fact, 25% of those
(FmHA) funds nationwide flowed
into Iowa loans, thanks to your help.
“Governor Janklow and I have
agreed we need a holding tank for ag
loans and that we need the rules
quickly on the interest buy-down
proposal. We can’t sit back and
watch Gramm-Rudman declare war
on agriculture. My research shows
agriculture gets only 1.6% of the
federal budget but is asked to take a
10% cut in the ag budget. A 2% plus
2% buy-down in interest could give
our farmers $400 million lower inter­
est. I have suggested that state
funds go into those banks taking

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part in the buy-down.’’
Gov. Branstad sounded a call for
a positive approach, asking all par­
ties to “pull together and face reali­
ties with courage and hope.’’ He
pointed to the field of bio-technology
as “a solid area of development for
our future.” He came out strong
against any increase in taxes.
Gov. Janklow’s presentation was
almost entirely geared to a fastpaced display of graphs which
showed the debilitating impact of
market actions on land, crop and
livestock valuations, with decreased
income levels out to the 1990s. He
laid blame for the midwest states’
problems directly on the “fiscal
mess in Washington.” He added
later, “We Governors have all said
we will accept any reduction if its
fair—and these cuts are not fair! If I
were a Russian a year ago and knew
I couldn’t win in a nuclear war but
wanted to destroy America, I
couldn’t have written a better scena­
rio—we’ve destroyed steel and other
industries. We’ve shot ourselves in
the foot!
“When small town schools, chur­
ches, newspapers and banks leave,

they don’t come back. And it won’t
be a very exciting place to live when
we have to drive 75 miles for the
things these present towns pro­
vide...The faster we realize the same
bullet can kill us all, then the faster
we’ll get things turned around.”
The two group meetings also pro­
vided an opportunity to show the
IBA’s new, three-projector slide film
titled “ Iowa banks on Iowa banks.”
It shows how daily life in Iowa con­
tinues on throughout the state des­
pite the failure of one bank in a
single community. The film is pro­
fessionally done and fast-paced.
Mr. Bernau, the new superinten­
dent of banking, made a brief plat­
form appearance at the Group 11
meeting. He said that although
140-to 150 banks are sustaining ab­
normal loans, this is not fatal for
“being classified doesn’t mean a
loss. We have a ways to work out of
these, but I see hope and brighter
days ahead.”
Neil Milner, executive vice presi­
dent of the IBA, reported on legis­
lative and internal association af­
fairs. He reported to the groups that
Executive Director Randy Steig has
Northwestern Banker, March, 1986

Iowa News

LEFT—Jim Sheehan, pres., Farmers Svgs., Pierson; Gene Hagen, pres., Security Natl., Sioux City; Gordon Mennen, pres., LeMars Svgs.,
and Dennis Nahnsen, v.p., Security Natl. RIGHT—Jim Tymeson, pres., Commercial Bank, Storm Lake, with Millie Uding, v.p., IBIS, and Al
Tinder, pres., IBIS, Des Moines.

LEFT— Ben Eilders, sr. v.p., Bankers Trust Co., Des Moines, and chmn., state membership, ABA; Christy Armstrong, dir.. American Tr. &
Svgs., Dubuque, and state member relations consultant, ABA; Karen & Bill Hess, pres., Iowa Svgs., Coon Rapids, and chmn., group II.
RIGHT—Jack Wllhelmy, pres., Community St., Whiting, with Howard Nielsen, v.p., Norwest Bank, Omaha.

LEFT— Randy Johnson, pres., First Natl., LeMars; Jim Eller, sr. v.p., First Interstate, Des Moines; Bill Mullins, v.p., First Int., Des Moines,
and Wayne Bismark, v.p., LaSalle Natl., Chicago. RIGHT—John Van Dyke, pres., Toy Natl., Sioux City, and Max Larson, pres., First Natl.,
Sioux City.

LEFT—Fred Kuehl, v.p., First Natl., Omaha, with Keith Warrelmann, exec. v.p. & c.e.o., Valley State, Yankton, S.D. RIGHT—Cliff Carlson,
exec, v.p., Farmers St., Merrill; Del Olson, v.p., Omaha Natl., and C.W. Wetzeler, pres., The State Bank, Spirit Lake.

Northwestern
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Federal Reserve Bank of St. Louis

resigned, effective March 1, to take
a position as vice president with
First In terstate Bank of Des
Moines. He also announced that A1
Tinder, president of Iowa Bankers
Insurance & Services, Inc., has
elected to take retirement. IBA was
conducting interviews last month to
fill both positions.
Mr. Tinder said IBIS in fiscal ’85
had its highest premium volume
ever and in the first five months of
its current year was 37% ahead of
that record year. He related details
of record dividends paid out and
some to come for various parts of
IBIS participations.
Mr. Milner related details of
IBA’s leadership in assembling in­
terested farm groups, such as Prai­
rie Fire and the Unity Coalition, for
two conferences to date in an effort
for all interested groups to act
together in a public way to address
the stress situations that face farm­
ers and lenders alike. He also re­
viewed IBA efforts to work with the
G overnor’s office and federal
authorities on various ag measures.

□

NABW Pres. Selected
The Southeast Iowa Chapter of
N ational Association of Bank
W om en
has
selected Loretta
J . B u c h h e it,
LeClaire State
Bank, as presi­
dent. Other offi­
cers elected were
Jo an n e H ora,
Hills Bank and
T r u s t, C oralville, vice presiLJ b u c h e it
dent; Helen M.
Dailey, First National Bank, Iowa
City, secretary, and Nancy Turner,
Farmers Trust and Savings Bank at
Williamsburg, treasurer.
The Southeast Iowa Chapter of
NABW will host the annual confer­
ence May 14, 15, and 16 at Iowa
City.

Added in St. Ansgar
Norman Homeyer has joined
Cedar National of St. Ansgar as
president and CEO. He was senior
vice president of Hawkeye Bank and
Trust in Eldora.

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Iowa News
63
Three
other
senior
vice
presidents
Peoples National, Albia
have been appointed to manage new­
Is Closed by Comptroller
ly created divisions of the bank.
The Peoples National Bank and Gary Ernst is responsible for the fi­
Trust Company, Albia, was closed nancial services division. Larry
February 6 by the Comptroller of McGrath serves as head of the fi­
the Currency due to insolvency nance and bank development divi­
created by continuing heavy ag sion and Jim West is in charge of the
loans losses. The bank had total as­ retail banking and operations divi­
sets of $50 million and deposits of sion.
about $46.2 million in 11,700 ac­
The following bank promotions
counts. The FDIC estimated that all were also announced: James L. West
but about $496,000 of the deposits, from vice president to senior vice
in 23 accounts, were within the fed­ president; Gary Ernst from senior
eral insurance limit of $100,000 or vice president and trust officer to se­
otherwise secured.
nior vice president and senior trust
Since FDIC received no bids for officer; Peter B. Welch from trust of­
assets of the bank, it proceeded with ficer to vice president and senior
liquidation within a few days. All de­ trust officer; LaVerne A. Wilkinson,
positors were paid by check up to Gary L. Ellis and James P. Bell from
the $100,000 limit. Those with an assistant cashier to assistant vice
excess above $100,000 received 55% president and Jon K. Augustine
of that excess and will receive more from assistant trust officer to trust
later if FDIC recovers an amount investment officer.
above that payout.
The Peoples National became
Iowa’s first bank failure of 1986, Le Mars Pres. Named
and the second national bank to fail
Randy Johnson has been named
in the past 18 months. It was the
first failing institution in Iowa that president at First National Bank in
was not re-opened with a new char­ Le Mars. Mr.
ter or as a branch of an existing Johnson became
the bank’s vice
bank.
in
The other bank in Albia, First p re s id e n t
1979.
Prior
to
Iowa State Bank, continues in busi­
his
employment
ness and has approximately $40 mil­
with First Na­
lion in assets.
Peoples National was founded in tional, he worked
1907 and was owned by the J.E. for the United
King family, Mr. King had been as­ Central Bank of
sociated with the bank for 50 years, E sterville and
R. JOHNSON
starting as president in 1936 and First Trust and
continuing in that position until re­ Savings Bank of Aurelia.
Former president A1 Maser will
tiring in January, 1973, when he
remain
as chairman of the board.
became chairman. He was succeeded
Newly
elected officers of the bank
at that time by his son, James E.
include
Bill
Rosacker, vice presi­
King, as president, who held that
dent; Bruce Sorenson, vice presi­
position until recent months.
dent, and Bonnie Palmer, assistant
cashier.

Staff Changes Made
in Cedar Rapids

Clarinda Pres. Named

Several changes have been an­
nounced in the management struc­
ture of Peoples Bank and Trust
Company, Cedar Rapids.
President John M. Sagers has
been appointed CEO. Mr. Sagers
has been with the bank for 35 years.
Don Ellis, executive vice presi­
dent since 1977, has been designated
COO. Mr. Ellis, a bank employee for
24 years, continues as chief lending
officer heading up the commercial
banking division.

Stan Honken has been named to
succeed Hugh Louden as president
of the Citizens State Bank in Clarin­
da.
Mr. Honken was formerly execu­
tive vice president and CEO of Citi­
zens State Bank, Clarinda.
Mr. Louden began his 29 year
career with the bank in 1957 and
was elected president in 1977. He
was elected board chairman in 1985.
He will continue to serve as chair­
man, as well as president and board
Northwestern Banker, March, 1986

64
Iowa News
member of the Farmers Savings
Bank in Fremont and board member
of the Oakland State Bank in Oak­
land.

Two Promoted in Sac City
Frank C. Strain and Randy Bentsen were promoted recently at Sac
City State Bank.
Mr. Strain was promoted from
vice president to vice president and
cashier and Mr. Bentsen was pro­
moted from assistant cashier to as­
sistant vice president. Dale H. Ninneman, who retired at the end of
1985, was formerly vice president
and cashier.

Harlan and Portsmouth
Banks Plan Merger
The Shelby County State Bank in
Harlan and the State Bank of Ports­
mouth have each proposed to merge
the banks under the name of The
Shelby County State Bank.
The proposed merger must have
regulatory approval before it be­
comes effective. The target date for
the merger is June 1986.
The proposal calls for no signifi­
cant changes to be made. If ap­
proved, the new bank will have its
main office in Harlan, with addi­
tional offices in Portsmouth, Pana­
ma and Elk Horn.

EFT Conference Scheduled
For April 8-9
The ITS, Inc. 1986 EFT Confer­
ence will be held April 8-9 at the
Marriott Hotel in Des Moines.
ITS President Dale Dooley said
“The conference is a showcase to
bring you the most recent and relevent information and vendor exhi­
bits within the industry.”
John F. Fisher is the keynote
speaker for the general session on
April 9. Mr. Fisher will speak on
EFT growth based on his experience
with credit and systems, ATMs and
home banking.
Other topics to be covered include
NACHA activity, POS, ACH mar­
keting, the state of the financial in­
dustry, site selection and marketing
to retailers.
In addition to the general session,
peer group sessions and vendor exhi­
bitors will be available.

Northwestern
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Federal Reserve Bank of St. Louis

Largest Banks in Iowa
EPOSITS and loan figures for Iowa banks reporting deposits of $65
D
million or more at year-end are shown in the chart below. Com­
parative figures from a year ago are featured.
(Last three figures omitted)
December 31, 1985
December 31, 1984
Deposits
Loans Deposits
Loans
1. Norwest Bank Des Moines, N.A............. $1,031,529
$678,878 $1,025,230
$692,046
2. Davenport Bank & Trust ........................
716,904
231,958
583,255
215,787
3. Merchants Natl., Cedar R a p id s ............
531,110
363,133
439,413
311,142
4. Bankers Trust, Des Moines....................
394,045
286,434
458,931
336,424
5. First Interstate Bk. Des Moines, N.A. ..
303,779
173,144
298,034
154,560
6. Security Natl., Sioux C it y ......................
271,572
147,750
261,357
138,792
7. Natl. Bank of W aterlo o ..........................
243,255
124,396
248,134
127,790
8. First Natl., Iowa C ity ..............................
221,180
143,569
198,228
129,782
9. Valley Natl., Des Moines........................
218,895
139,462
201,929
124,450
10. Hills Bank & T ru s t..................................
193,335
114,707
173,472
112,629
11. Peoples B&T, W aterloo..........................
190,866
131,622
185,907
110,547
12. Dubuque Bank & Trust ..........................
187,452
92,496
171,704
91,502
13. Peoples B&T, Cedar R apids..................
187,035
72,949
173,304
75,244
14. American T&S, Dubuque........................
182,930
93,518
176,982
92,565
15. Iowa State B&T, Iowa City......................
177,829
119,813
164,602
124,068
16. Council Bluffs Sav. Bk.............................
175,608
91,154
154,220
82,078
17. First Natl., Dubuque ..............................
173,029
100,373
170,248
95,593
18. Brenton Natl. Bk. of Des M o in e s ..........
172,795
92,400
172,292
103,900
19. West Des Moines St. Bank .....................
164,794
97,453
140,686
88,825
20. Waterloo Savings Bank..........................
156,040
85,215
156,767
80,795
21. Norwest Bk. Mason City, N.A..................
155,029
101,661
149,631
111,440
22. Northwest B&T, Davenport....................
153,400
100,420
155,576
113,233
23. First Natl., Sioux City ............................
151,377
78,779
154,049
85,944
24. Monticello State Bank............................
147,163
64,800
125,048
64,877
25. Union B&T, Ottumwa..............................
142,820
66,942
135,739
65,472
26. Central State, M uscatine......................
142,031
42,970
128,553
46,109
27. Toy Natl., Sioux C it y ..............................
141,583
72,341
119,658
77,848
28. Security Sv. Bk., Marshalltown..............
140,185
60,485
131,667
56,116
29. First Natl., Muscatine............................
139,887
112,593
137,996
119,405
30. First Natl., A m e s ....................................
136,028
59,399
116,240
62,047
31. Norwest Bk. Fort Dodge1........................
127,287
77,996
121,510
85,287
32. Citizens First Natl., Storm Lake............
123,602
51,810
107,819
57,382
33. Farmers St. Bk., Marion..........................
120,311
58,481
112,292
58,492
34. First Natl., Burlington............................
119,418
63,509
111,203
74,824
35. Norwest Bk. Sioux City, N.A....................
114,557
87,806
118,214
85,863
36. First Interstate Bk., Mason C ity ............
114,314
73,967
115,642
77,126
37. First Interstate Bk. of Fort D o d g e ........
113,529
58,732
112,678
60,279
38. First T&S Bk., Davenport........................
109,404
81,207
94,459
68,200
39. Peoples T&S, Indianola..........................
105,837
52,784
101,576
59,279
40. Jasper County Sv. Bk., Newton ............
103,514
54,107
99,089
54,070
41. First Natl., Council B luffs......................
101,275
54,766
97,572
63,077
42. First Interstate Bank of Urbandale2 ___
100,969
70,238
101,959
69,567
43. Hawkeye Capital B&T, Des Moines . . . .
95,572
61,946
93,216
62,644
44. Clinton Natl. Bk., Clinton ......................
95,516
51,643
107,112
49,151
45. First American St., Fort Dodge..............
88,422
44,719
101,242
50,897
46. Hawkeye B&T, Burlington......................
86,128
47,787
93,247
53,993
47. Norwest State Bk. A tlantic....................
85,136
31,817
82,049
36,474
48. Decorah State Bk.....................................
84,900
44,340
80,801
39,391
49. Farmers Natl. Bk. of Webster C ity ........
83,378
53,392
73,185
50,210
50. Maquoketa State Bk................................
83,113
44,211
73,709
46,797
51. Bettendorf B&T Co..................................
82,727
73,463
94,052
84,738
52. Fidelity Brenton B&T, Marshalltown . . .
81,515
55,312
82,541
52,968
53. Norwest Bk. Marion, N.A.........................
81,440
57,630
79,175
52,266
54. Mahaska St. Bk., Oskaloosa..................
79,641
42,977
80,713
43,977
55. First Security B&T, Charles City............
77,378
46,091
76,220
43,617
56. South Ottumwa Sav. Bk...........................
75,495
29,019
71,864
28,139
57. Farmers & Merchants B&T, Burlington .
74,704
25,125
66,028
24,774
58. Hardin County Sav., Eldora....................
74,204
38,268
69,457
37,171
59. State Central Bk., Keokuk......................
74,000
32,000
69,689
30,971
60. State B&T, Council Bluffs......................
72,727
37,808
77,511
50,981
61. First Natl., Clinton..................................
71,504
30,452
72,167
44,001
62. Poweshiek Cnty. Natl. Bk., Grlnnell . . . .
71,502
40,096
70,823
41,730
63. Brenton First Natl., Davenport..............
69,526
41,793
72,920
44,127
64. Henry County Sav. Bk., Mt. Pleasant . . .
68,594
36,818
66,303
32,856
65. Emmet County St. Bk., Estherville........
68,320
31,422
70,818
35,284
66. First Natl. Bk. of Waverly ......................
68,109
42,189
67,263
48,507
’ Formerly First Natl., Fort Dodge
form erly Plaza State, Des Moines.

*>r ' a
%,'i» ■/ - /,•

*' ,

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tessi-

¡ss*" .r »

THE

WAYWE

PUTIT TOGETHER 15 WHAT 5E T5
Tama 5tate Bank • Tama, Iowa

4015 Alexandra Drive • Box 2097
Waterloo, Iowa 50 7 04
Phone 519-254-6641


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

66

Iowa News

Appointed in Oskaloosa

Kevin M. Black has been ap­
pointed
assistant cashier and ag 2:15
Mahaska State Bank, Oskaloosa,
loan
officer.
Mr. Black joined the
has announced the appointment of
Michael L. Mattson as senior vice bank in 1983 and has also been ap­
pointed to serve as a director.
president and cashier.
Mr. Mattson was formerly with
First State Bank of Fremont, Neb., V.P. Elected in Sioux City
Charles R. Parsons has been
where he was vice president and
elected a vice president of First In­
marketing director.
terstate Bank of
Sioux City, ac­
Appointed in Somers
cording to Bruce
Upon the retirement of Charles M. Kolbe, bank
Petersen as president of Somers president.
Savings Bank, several appoint­
Mr. Parsons
ments have been announced.
joined First In­
C.J. McCommell has been elected terstate in 1979.
president and chairman. He joined He has been in­
3:20
the bank in 1985 as chairman.
volved with the
3:40
Thomas L. Little has been ap­ len d in g fu n c ­
C .R . P A R S O N S
pointed executive vice president, tions ever since
cashier and CEO. Mr. Little joined he joined the bank, and is now re­
the bank in 1959 and has been serv­ sponsible for all loan and credit re­
ing as vice president and cashier.
lated activities of the bank.
4:45

IBA Marketing Conference - March 23-25 6:15
HE theme of this year’s annual
T
Iowa Bankers A ssociation’s
marketing conference is “Blueprint
for Success.’’
Scheduled for March 23-25 at the
Hotel Savery in Des Moines, the
conference features an excellent line­
up of talented marketing experts
who will talk on gaining a competi­
tive edge in today’s marketplace.
The general sessions will address op­
portunities rather than difficulties.
The program schedule is as fol­
lows:
Sunday, March 23
P.M.
2:00
Registration Desk Opens
3:00
General Session
“ New Business Develop­
ment: Sound Tips for Bank
Marketers”—Pat Thompson
and Chris Petersen, senior
partners, Evaluation and
Training Consultants, Lin­
coln, Neb.
4:00 Exhibit Area Open
6:15 Reception—Hoyt Sherman
Place
Sponsored by Federated In­
vestors, Inc.
7:30 “What You Are is Where
You See”—Kim Woods, v.p.
and consultant, Morris Mas­
sey Associates, Boulder Co.
Monday, March 24
A.M.
7:30 Registration Desk Opens/

Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Exhibit Area Opens
“ D e lu x e ” C o n tin e n ta l
Breakfast
Sponsored by Deluxe Check
Printers Inc.
8:00 General Session
Welcome and Opening Re­
marks—Don Richard, mar­
keting committee chmn.,
and v.p., Waterloo Savings
Bank.
8:15 “Advertising: Everything
You Always Wanted to
Know, But Didn’t Know
Who to Ask”—Don Uker,
professional media consul­
tant, Denison.
9:15 N onverbal C om m unica­
tion”—Dr. Hale Starr, pres.,
Starr & Associates, Inc.,
West Des Moines.
10:15 Break
10:45 “God, Doctor or Banker:
What are You?”—Dr. Char­
les Cleveland, chmn., Ques­
ter Corporation, West Des
Moines.
P.M.
12:00

1:30

and Petersen.
Concurrent Worksh ops
“33 or So, Absolutely Gua­
ran teed , D arn T o o tin ’,
Money-in-the-Bank, FailSafe Rules and Axioms for
Certain Advertising Suc­
cess”—Bill Love, pres., and
creative dir.; Love, Scott &
A sso c ia te s, W est Des
Moines.
“Marketing Showcase,” —
Presenters to be announced.
“Research: The Key to an
Effective Marketing Pro­
gram”—Jeff Davis, exec,
dir., Jefferson Davis Associ­
ates, Cedar Rapids.
Break
“Marketing Magic”—Robert
Miller, v.p., and dir., M ar­
keting and Membership Di­
vision, Bank Marketing As­
sociation, Chicago.
Reception in Exhibit Area,
Hosted by P articipating
Vendors.
Dinner on Your Own
Tuesday, March 2!b

A.M.
7:30

Continental Breakfast.
O pening R em ark s —Don
Richards, Marketing Com­
mittee chairman
8:15
“Creating a Desirable Im­
age in Good a nd Bad Times”
—Mary Riche, pres., Riche
A s s o c ia te s , In c ., D es
Moines.
9:00
“The Role of Marketing and
the Bank Marketer Through
1990”—Cal Coquillette, pub­
lisher, ‘Plan For Actioni, ’
Cedar Ftapids.
9:45
C oncurrent W orkshops —
Bill Love will repeat his
Monday Workshop.
“ M arketing Showcase” —
Presenters to be announced .
“Beyond the Research: Op­
portunities for Bank M ar­
keters”—Cynthia Hill, pros.,
Cynthia Hill Associates,
West Des Moines.
10:15 Break
Lunch and “Best of Iowa” 10:30 “ Iowa Banks...The Day
Awards Presentation
After”—Richard Hotthaus,
marketing dir., IBA.
Masters of Ceremony, Bruce
Meriwether, IBA pres., and 11:00 “Product Planning tn a De­
Marilyn Pohorsky, p ast
regulated Environm ent”—
Gary Raddon, pres., Raddon
marketing committee chair­
person.
Financial Group, Chicago.
“Murphy’s Laws of Bank P.M.
M a rk e tin g ” —Thom pson 12:00 Adjournment.
□
8:00

67

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Even companies
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Bankers only for
Iowa banks. In fact,
IBIS is owned by all Iowa
banks.
A nd dollar for dollar,
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Employee group health,
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Northwestern Banker, March, 1986

68

Iowa News

president. He was formerly a loan of­
ficer.
Head note teller Jeannine Fellom
has been promoted to assistant
cashier.

Named in West Des Moines
Three employees of First National
Bank of West Des Moines have been
appointed to vice president status:
Roger Petersen; Janice Cross, cash­
ier, and Rick Messerschmidt, v.p. to
the bank’s board of directors.

Three Named in Mason City

J. R O S E N B A U M

J . W H IT E

Also promoted were Larry Tib­
betts to assistant vice president,
Jeanette White from office manager
to assistant cashier and office man­
ager, and Joy Rosenbaum was
named assistant cashier.

Four Promoted in Perry

R . M E S S E R S C H M ID T

L. T IB B E T S

The promotions of four bank offi­
cers of Perry State Bank have been
announced.
Richard Hanson has been pro­
moted to vice president and trust of­
ficer. He was formerly vice president
and assistant trust officer.
Vicki Stanley, formerly assistant
vice president and assistant trust of­
ficer is now assistant vice president
and trust officer.
Jerry Hagen is now assistant vice

Robert E. Westbee, president and
CEO of First Interstate Bank of
Mason City, re­
cently announced
th e follow ing
actions of the
board.
Ja m e s
W.
H a ck b a rt has
been promoted
to vice president
and trust officer
and head of the
J. H A C K B A R T
bank’s trust de­
partment. Prior to coming to Mason
City, he practiced law in Kalona.

T . Q U IL A N

Committed to
making your
bank stand
apart from the

D. S A L Z

Tom Quinlan has joined the bank
as vice president in the commercial
loan department. He comes from
Peoples Bank and Trust Company in
Waterloo where he was vice presi­
dent in the commercial loan depart­
ment.
David Salz has teen appointed
operations officer and manager of
the accounting department. He has
been with the bank for four years.

Named in Council Bluffs
Jerry G. Moritz has joined State
Bank and Trust, Council Bluffs, as
vice president in
charge of the ag
loan
d e p a r t­
ment.
M r. M o ritz
came to State
Bank and Trust
from United Na­
tional Bank in
Watertown,
S.D., where he
J . M O R IT Z
served as presi­
dent and CEO. He started in bank­
ing in 1970 as a loan and discount
teller at First Bank of Fargo in N.D.


Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Iowa News

Davenport Bank Names Six
First Bank, Davenport has under­
gone several staff changes and addi­
tions.
Kenneth R. Koupal has been pro­
moted to senior vice president and
cashier in charge of the operations
division of the bank. He was pre­
viously vice president and cashier in
charge of operations. Mr. Koupal
joined the bank in 1972.

portfolio of high net worth indivi­
duals.
Scott K. Kelly has been named a
loan officer. He joined the bank in
1982.
Marcia L. Johnson has been
named assistant cashier and opera­
tions manager of the Middle Road
office. She joined the bank in 1977 in
the trust department. She has been
in the new accounts area since 1981
as a customer service officer.

69

A Lot of Bull!

Joins Bettendorf Bank

K.R. KOUPAL

M.T. MIDDLEBROOK

Mark T. Middlebrook has joined
First Bank as vice president and
senior trust officer. He was most re­
cently with First National Bank of
Dubuque as a trust officer. He was
also associated with Moss & Heins
Law Offices, Dyersville, for four
years.
Thomas L. Andresen has been
promoted to vice president retail/
real estate loans. He spent 13 years
associated with a finance company
before joining the bank in 1983.

John R. Stuekerjuergen has joined
Bettendorf Bank, N.A. as a vice
president/commercial banking divi­
sion.
Mr. Stuekerjuergen was formerly
with The Rock Island Bank as vice
president and vice president of fi­
nancial services corporation. He is a
certified public accountant and
worked as an auditor for McGladrey, Hendricksen & Pullen.

Assumes Duties
in Council Bluffs
Senior vice president and CEO of
First National Bank of Council
Bluffs, Lee H. Wicht will now also
assume the duties of cashier. Prior
to joining the bank, Mr. Wicht was
vice president of planning for
Omaha National Bank, where he
also worked in cash management
and check processing.

THE RESERVE

B la c k B u ll C a l f C h a m p io n a t
t h e 1 9 8 6 C h ia n in a S h o w h e ld r e c e n t ly in F t.
W o r t h , T e x ., w a s e x h ib it e d b y John E. Man­
gold ( le f t b e h in d b u ll), C e d a r R a p id s , la .,
a n d Richard Donovan (r ig h t) o f D o n o v a n
B ro s ., B e r n a r d , la ., a n d Jerry Volk (n o t
s h o w n ), v .p . o f C a s c a d e S t a t e B a n k , C a s ­
c a d e , la . T h e c a lf — E .D . W r a n g l e r — w a s
b o rn J a n u a r y 6 , 1 9 8 5 fr o m H H S . M o n a L iz a
a n d G r e a t R e n a is s a n c e . It w a s s e le c t e d
d u r in g t h e 9 0 th A n n u a l S o u t h w e s t e r n E x p o ­
s it io n a n d L iv e s t o c k S h o w t h a t w a s h e ld in
F t. W o r t h a s p a r t o f t h e S t a t e o f T e x a s ’ S e s q u ic e n t e n n ia l c e le b r a t io n . M r. M a n g o ld r e ­
tir e d a t 1 9 8 5 y e a r - e n d a s s e n io r v ic e p r e s i­
d e n t o f T h e M e rc h a n ts N a tio n a l B a n k o f
C e d a r R a p id s , w h e r e h e h e a d e d t h e c o r r e s ­
p o n d e n t b a n k d iv is io n f o r m a n y y e a r s . H is
in t e r e s t in t h e C h ia n in a b r e e d , h e s a id ,
s t e m s f r o m t h e f a c t “ it is b e in g p r o v e n t o b e
a lo w - f a t , lo w c a lo r ie b e e f p r o d u c t ” t h a t a d ­
v a n c e s t o a U .S . Y ie ld G r a d e 1 c a r c a s s in
1 2 -1 4 m o n t h s . B e e f fr o m C h i a n i n a ’s m u s t
b e a m in im u m o f 3 /8 C h ia n in a t o b e c e r t i f ie d
fo r m a r k e t in g b y C h ia n in a L ite B e e f , In c .,
w h ic h s e lls t h e b e e f p r o d u c t s u n d e r t h e
t r a d e n a m e “ C e r t if i e d K e y L ite B e e f .”

KING MANAGEMENT
COMPANY
Farm Management Division
King Management Company offers professional,
client-oriented, farm management and counseling
service free from any fundamental conflict of interest.
Specialists in professional farm management, farm
acquisition for investment, farm appraisals and
consultation.

S.K. KELLY

M.L. JOHNSON

Laura D. Pratt has been ap­
pointed financial services officer.
She was formerly associated with
The Northern Trust Company of
Chicago as a personal banking coun­
selor in the special financial services
division responsible for an account


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

James C. King
Raymond A. Schneider • Michael W. Murrane
816 Equitable Bldg. • Des Moines, IA 50309
515-282-3100
Members of American Society of Farm Managers and
Rural Appraisers and Farm & Land Institute

Northwestern Banker, March, 1986

70
The announcement comes after
one of the most successful years in
the history of Hawkeye Bank in Des
Moines. In 1985, the two institu­
tions combined to produce record
performance in average deposits and
assets.
The proposed merger of the two
banks is scheduled for completion
this summer.
* * *
Stephan L. Jones has joined
Bankers Life Company, Des Moines,
a member of The
Principal Finan­
cial GroupSM,
as vice president
— financial insti­
tutions.
M r.
Jo n e s
Steve Stahly has been elected Mclntire to trust operations officer.
earned
his
BA
Marvin Szneler was named inves­
president and CEO of MASI, the
degree
in
1957
agricultural finance subsidiary of tor center officer at Hawkeye Bank
from G rinnell
Mid America Banking Services and Trust of Des Moines.
College and has
* * *
Company (MABSCO).
S.L. JONES
done graduate
Mr. Stahly assumed his new
J. Michael Earley, president of work at Drake University and the
duties at MASI headquarters in Des
Hawkeye-Capital and Hawkeye Graduate School of Banking in
Moines on February 24.
Mr. Stahly had been president Bank and Trust of Des Moines has Madison, Wisconsin. He has 29
and CEO of the Webster City Pro­ announced the beginning of a major years experience in the financial ser­
duction Credit Association of Web­ year-long advertising commitment vices industry, most recently as se­
“to dedicate ourselves to better nior vice president of corporate de­
ster City since 1979.
times
and a better future for every­ velopment at Hawkeye BancorporaPrior to that, he joined the Fed­
eral Intermediate Credit Bank as an one who calls Iowa home.’’ The tion, where he had been employed
examiner of PC A’s in Nebraska and theme of the campaign is “Yes We since 1973. Mr. Jones’ responsibili­
South Dakota. In 1977 he was pro­ Do Choose to Live in Iowa.” It will ties at Bankers Life Company will
moted to assistant vice president/ be supported by billboard, radio, involve broadening product market­
credit operations, supervising the newspaper and direct mail advertis­ ing outlets.
* * *
credit operations of 10 PC As in Neb­ ing.
raska.

Bank Raises Money for Handicapped
J.C. “Buz” Brenton has announced
that Brenton National Bank of Des
Moines will close its office at Tenth
Street and Grand Avenue on Friday,
March 14.
According to the bank, the 10th
and Grand location is now bypassed
by 90 percent of downtown commu­
ters due to changing traffic patterns
in the area. Personnel and opera­
tions at the bank will be relocated.
*

*

*

The Hawkeye Banks in Des
Moines recently announced several
promotions.
Promoted at Hawkeye-Capital
Bank and Trust were: Mark Rathbun to managing officer, Hickman
Road office; Elsie Pratt to assistant
vice president, marketing; Patricia
George to trust officer; Jan Cook to
financial services officer, and Lorelei


Northwestern Banker, March, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

David Steiner, (right), of the Iowa Chapter of “Kids With a Wish,” accepts a check for $1,750
from John T. Carter, exec. v.p. of Brenton Nat’l. Bank of Des Moines. Brenton employees
raised the money to buy swings to accomodate children confined to wheelchairs. The
swings will be placed in public parks.

ŸÇetccmc

valuable resource in meeting your bank’s corre­
spondent needs. Randy leads a team of experienced,
professional bankers that welcome you to preview
the many products and services available through
First Interstate Bank.

President and Manager of the Iowa Correspondent
Corporate Services Division. His recent experience
with the Iowa Bankers Association as Vice President
and Executive Director, as well as his twelve years
with the Iowa Department of Banking, including the

Q

First Interstate
We’re setting the pace.

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-

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Federal Reserve Bank of St. Louis

-

Equal Opportunity Lender

72

Iowa News

Mr. Robert G. Millen, president
and CEO, First Interstate Bank of
Des M oines,
N.A., has an­
nounced the ap­
p o in tm e n t of
Randy Steig to
the position of
vice president
and manager of
the Iowa correspondent/corporate services di­
vision.
Mr. Steig recently was vice presi­
dent and executive director of the
Iowa Bankers Association. Prior to
joining the IBA, Mr. Steig was em­
ployed by the Iowa Department of
Banking, during which time he held
various positions, including the as­
sistant superintendent of banking.
# * *

Michael T. Corbett has been
elected controller at First Interstate
Bank of Des
Moines, N.A.
Mr. C orbett
joined the bank
as accounting
systems officer
in 1981 after
serving as senior
a u d ito r w ith
First Interstate
of Iowa, Inc. for
over two years.
Previous to that he was a staff
auditor with the Meriwether, Wilson
and Sitrick C.P.A. firm.
*

*

*

Promoted in Sac City
David C. Jones has been pro­
moted from assistant vice president
to vice president of the Citizens Sav­
ings Bank of Sac City. Mr. Jones
has been employed by the bank since
1985. Prior to that, he was with the
Production Credit Association in
Sac City and Storm Lake for almost
10 years.

IBA Washington Trip
Set For April
The Iowa Bankers Association
annual trip to Washington, D.C. is
set for April 12-16. This event pro­
vides participants the opportunity
to meet with the nation’s regulators
and leaders.
Highlights of the trip include vis­
its with senior staff members of the
Federal Reserve, FDIC, the Comp­
troller of the Currency and the
USD A. Briefings will be held at the
White House and the American
Bankers Association.
Rooms have been reserved at the
J.W. Marriott Hotel in Washington,
D.C. Space is limited. Contact the
IBA office in Des Moines for more
information.

Charles R. Gossett

of 91.
Mr. Gossett was born May 31,
1894, in Illinois, worked in banks in
Kelly, la., and Mapleton, la., as well
as the state department of banking,
before joining Security National
Bank of Sioux City in 1931. He was
elected chairman and president in
1936, and served until his retire­
ment in 1966.
He was active in banking circles
nationally, and served the American
Bankers Association at several In­
ternational Credit Conferences. He
was president of the Iowa Bankers
Association in 1939.
Survivors include his wife, Ruth
Hall Ramsey, whom he married on
November 11, 1954.

Elected in Vinton
Brian J. Brown has been elected
assistant vice president/branch
manager at the Garrison office of
the State Bank of Vinton. Mr.
Brown joined the bank in 1984 as a
commercial and agricultural officer.
He was an agricultural loan officer
at Northwestern State Bank in
Orange City before moving to Vin­
ton.

Retired in Dubuque,

Long-time banking leader and for­
mer chairman and president of Se­ Three Advanced
After more than 19 years service
curity National Bank of Sioux City,
Charles R. Gossett, passed away with Key City Bank and Trust Com­
February 18 at his home, at the age pany, Dubuque, Elaine Mozena, as-

Sioux City Bank Relocates Office
c

The board of First Interstate of
Iowa, Inc. has increased the number
of directors from 16 to 18 and
elected James B. Fogt and Robert G.
Millen as directors to fill the vacan­
cies.
Mr. Fogt is executive vice presi­
dent and treasurer of the holding
company and is also chairman of
First Interstate Insurance Services
of Iowa, Inc. and president of First
Interstate Information Systems of
Iowa. He joined the holding com­
pany in 1977 as vice president and
controller.
Mr. Millen is president and CEO
of First Interstate Bank of Des
Moines, N.A. He joined the Des
Moines bank in 1981 as executive
vice president.


Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

?

FIRST Interstate Bank of Sioux City has relocated its main office. The new office features a
24-hour day and night teller machine, an expanded customer service area, enclosed night
depository, enlarged safety deposit box area and a multi-purpose conference room. It is
the first business to open in the enclosed portion of Sioux City’s newest mall, the Market­
place.

Iowa News

sistant vice president/personnel, has
retired. She began her career with
Key City Bank in Epworth in 1966.
Three employees of Key City
Bank and Trust Company have been
promoted.
Jane McQuade and Jerome I. Ritt
were advanced to assistant vice
president. Ms. McQuade has been
with the bank since 1974, and is re­
sponsible for internal operations and
personnel.
Mr. Ritt joined the bank in 1985
after several years of banking exper­
ience, and is currently manager of
Key City Bank’s Epworth office.
Sandra Zirkelbach, employed
with the bank since 1979, has been
promoted to bookkeeping super­
visor.

Named in Cedar Rapids
Jodie Blood has been named an
assistant cashier and assistant man­
ager of City Na­
tio n al B a n k ’s
Lindale Office in
Cedar Rapids,
a c c o rd in g to
Gary Peterson,
bank president.
Ms. Blood joined
C ity N atio n al
Bank in 1984 as
a loan secretary.
, m nnn
She began her
J' BL° ° D
banking career in 1979 at United
States Bank.

Facility Revamped in Storm Lake

SECURITY Trust & Savings Bank in Storm Lake has remodeled and expanded its facility. A
grand opening was held recently and some 3,000 people toured the facility.

the bank.
J.F. Kleeman was appointed as
honorary director.
Robert J. Wilwert was promoted
to assistant vice president and man­
ager of the Holy Cross Office and
Daniel L. Balik was promoted to as­
sistant ag loan officer.

Elected in Sioux City

John Van Dyke, president of Toy
National Bank, Sioux City, has an­
nounced th a t
Dennis Larive
has been elected
a member of the
board. Mr. La­
Changes Made in Muscatine rive, senior vice
Robert L. Roach has resigned as a president, joined
director of Central State Bank, Mus­ the bank in 1984
catine, due to poor health. Mr. and is in charge
Roach is being replaced by Dr. J.P. of the asset man­
Stein. Dr. Stein is a fifth generation agement division
D. LARIVE
member of the Stein family, which and bank develhas been identified with banking in opment.
Mr. Larive has over 20 years ex­
Muscatine for over 100 years.
Christine McCormick has been perience in bank management.
elected manager of the downtown
drive-in bank. She has been with the
bank for 24 years. James R. House­ Joins Winterset Bank
man has been elected an assistant
Kenneth R. Michels has joined
cashier and security officer. He Farmers and Merchants State Bank,
started with the bank in 1977.
Winterset, as an agricultural loan of­
ficer. Mr. Michels was formerly with
the Farmers Home Administration
Elected in Farley
in Decorah.
James K. Burdick, executive vice
president and cashier, and Nancy A.
Dunkel, vice president and senior Council Bluffs V.P. Retires
loan officer of Farley State Bank
R.B. “Dick” Graeme, vice presihave been elected as new directors of dent/cashier has retired from the

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Federal Reserve Bank of St. Louis

73

Council Bluffs Savings Bank after
33 years of service.
Mr. Graeme started with the bank
as a teller and in 1977, became vice
president and cashier, heading up
the total operations for the bank.

Added in Waverly
The First National Bank of
Waverly has added Theresa E. Hoff­
man to its staff as a trust officer.
Ms. Hoffman received her BA
from Loras College, Dubuque and
her law degree from the University
of Iowa Law School, Iowa City.

v

Index of
A dvertisers
MARCH, 1986

Advanced Resource Technologies, Inc.............................. 11
American Express Travelers Cheques.............................. 9
Douglas Austin & Associates, Inc....................................... 18
BancAnalysis, Inc................................................................. 8
Bankers Plus, Inc...................................................................10
Bankers Trust Company, Des M oines............................... 56
BetaWest Properties, Inc.....................................................6-7
Brandt, Inc.............................................................................. 75
Drovers Bank of C hicago................................................12-13
First Interstate Bank, Des M oines..................................... 71
First National Bank, Lincoln............................................... 48
First National Bank, O m aha............................................... 51
First Wisconsin Bank, Milwaukee................................. 38-39
Gross, Kirk Company, W aterloo......................................... 65
Iowa Bankers Insurance & Services................................... 67
King Management Co., Des Moines................................... 69
LaSalle National Bank, Chicago ....................................... 23
Municipal Bond Underwriters............................................. 54
Marquette Bank, Minneapolis ........................................... 28
Merchants National Bank, Cedar R ap ids........................ 2
National Bank of W aterloo................................................. 59
Norwest Corporation, Minneapolis................................... 76
Office Concepts, Ltd., Waterloo......................................... 68
Rand/McNally & Company, C hicago................................ 3
Rothschild, Unterberg, Towbin, L.F.................................... 5
Square Deal Hail Insurance Company..............................

8

United Missouri B a n k .......................................................... 14

Northwestern Banker, March, 1986

74

Iowa News

Survey By 18 Independent Banks Urges
Caution on Interstate Banking Law
N INDEPENDENT study com­
missioned recently by 18 Iowa
A
banks recommends the state legisla­
ture pursue a “slow, evolutionary
policy” rather than approve a bill al­
lowing nonresident corporate owner­
ship of Iowa banks, according to
Ronald E. Fenton, president of Se­
curity Savings Bank, Marshalltown.
The study, conducted by Data Re­
sources, Inc., of Lexington, Mass.,
shows the proposed change would
likely result in these adverse factors:
• a net outflow of capital from
Iowa to other states;
• curtailed credit availability for
Iowa businesses, farms, and
homeowners;
• higher lending rates;
• a decline in the number of bank
holding companies headquar­
tered in Iowa;
• loss of employment in the bank­
ing industry.
The single benefit revealed, the
study reports, is the possibility of
somewhat higher rates on deposits
for Iowa consumers. According to
the report, Iowa consumers current­
ly receive rates on their deposits
similar to other states, but out-ofstate banks might bid up the price of
consumer deposits in order to re­
place higher-cost funds purchased in
the wholesale market.
Analysis of information collected
by Data Resources shows Iowa
banks devote a larger proportion of
their resources to smaller borrowers,
in the consumer, real estate, and
agricultural sectors. About 95% of
Iowa banks’ lead relationships are
with Iowa businesses. Unlike the na­
tional trend, virtually none of Iowa’s
capital goes into international lend­
ing.
However, Iowa banks are well
capitalized, which means the banks
have the financial resources to ex­
tend considerably more loans than
they currently do. This enhances the
attractiveness of Iowa banks to outof-state purchasers who wish to ac­
quire capital to support non-Iowa
lending and investing, according to
the study.
In addition, the study found Iowa
banks’ loan loss rates to be much
higher than the national average,
due to the “heavier emphasis on

Northwestern Banker, March, 1986
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Federal Reserve Bank of St. Louis

agricultural lending and the general
weak state of the Iowa economy.”
Iowa banks have experienced a loss
rate of $14,300 per million versus a
loss of $7,200 per million for U.S.
banks as a whole.
Mr. Fenton sent a copy of the
complete DRI report to Iowa Gov.
Terry Branstad, to all members of
the Iowa legislature and to all media
in Iowa. His cover letter stated:
The situation of the Iowa banking
industry is unique when compared
to Illinois, Minnesota, Missouri and
Wisconsin. Iowa’s state-wide bank
holding companies and larger banks
are small by comparison to those
headquartered in these neighboring
states. Any change in Iowa banking
law which permits interstate bank
ownership will likely result in all
state-wide bank holding companies
and a number of banks being ac­
quired by nonresident owners, leav­
ing no major holding company head­
quartered in Iowa.
According to published reports,
the main impetus for enacting inter­
state banking bills now pending
before the Minnesota and Missouri
legislatures is to enhance the pros­
pects of those states for continuing
to be significant financial centers in
the United States. They would then
be able to increase in-state employ­
ment and economic activity through
centralization of supervisory and
back office personnel and functions
at the holding companies headquar­
tered there. The loss of employment
and lessened economic activity in
Iowa would be commensurate with
the gains achieved by these states.
Mr. Fenton said further that “the
most likely reason for out-of-state
banks to acquire Iowa banks will be
for the purpose of gathering depos­
its and that they will be less likely to
find Iowa to be an attractive market
in which to lend money.” Mr. Fen­
ton noted that various studies also
show most of Iowa’s growth has oc­
curred in small business firms.
He added, “This is no time for leg­
islative experimentation which en­
tails a high risk of making difficult
times worse.” Mr. Fenton said he
feels the report “will generate a
broad public discussion of this issue
(nonresident ownership of Iowa
banks) and greater understanding of

its potential for harm to the state’s
economy because of the uniqueness
of Iowa’s situation. Once interstate
bank ownership is allowed, it is irre­
versible.”
The study recommends a waitand-see attitude because it says the
future course and evolution of inter­
state banking is unclear. It suggests
that Iowa wait and learn from the re­
sults of regional interstate banking
experiments in New England and
the Southeast.
The study was commissioned by
the following group of 18 indepen­
dently-owned Iowa banks to evalu­
ate the services now being provided
by Iowa banks and to project poten­
tial impacts of interstate banking on
Iowa and its economy:
Bankers Trust Company, Des
Moines.
Citizens National Bank and First
Security Bank & Trust Company,
Charles City.
Clinton National Bank, Clinton.
Commercial Savings Bank, Carroll.
Decorah State Bank and Security
Bank & Trust Co., Decorah.
Farmers Savings Bank, West
Union.
First National Bank, New Hamp­
ton.
Grundy National Bank, Grundy
Center.
Hardin County Savings Bank,
Eldora.
Home State Bank, Jefferson.
Iowa State Savings Bank, Knox­
ville.
Liberty Trust & Savings Bank,
Durant.
Security Savings Bank, Marshall­
town.
St. Ansgar State Bank, St. Ansgar.
Story County Bank & Trust Com­
pany, Story City.
West Des Moines State Bank,
West Des Moines.
Wilton Savings Bank, Wilton.
Data Resources, Inc. is a subsi­
diary of McGraw-Hill, Inc., and is
the largest information service firm
in the world. DRI used its data
bases on Federal Deposit Insurance
Corporate data and Standard &
Poor’s Register call report to com­
pile information for the study.
□

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Federal Reserve Bank of St. Louis

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