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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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s Because O f W hat’s Behind Us. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 Financial Group, we can offer a wealth of practical advice about holding companies. And our large lending limit allows us to offer substantial bank stock carry loans. Hungry for more? Call Drovers toll-free at 1-800-621-8991. In Illinois, phone 1-800-572-2498. Or simply complete the attached card. toyou I i > / Drovers Bank 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 Valuation, Strategic Planning, One-Bank Hold ing Company Formations and Branch Feasibility 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. □ https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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] https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m GETA NEW READING ON THE VITAL STATISTICS. Stay on the pulse of today’s m arket.. .with the help of First Wisconsin’s investment specialists. We put people and resources to work for you all day, every day: monitoring the ups and downs, interpreting trends, evaluating today’s complex financial environment, and distilling critical, upto-the-minute market information. And we’ll help you actively manage your portfolio to achieve your investment stratej responding quickly when you need advice recommendations, and accurate order execution. Get to the heart of the m arket—and start building a stronger, healthier portfolio today. Call your First Wisconsin correspon dent banking officer at (414) 765-4459. WHEN PERFORMANCE COUNTS™ in FIRST W IS C O N S I ©FWC 1986 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 LONG DISTANCE SERVICE Correspondent Banking ________Division The Correspondent Banking Division of First National Lincoln can offer unmatched service in helping you meet the needs of your valued customers. Draw on the First Team to provide a full range of innovative products; fast, accurate turnaround; and the strength, experience and expertise of Lincoln’s largest bank. For correspondent services you can rely on, think of us first. First National Lincoln. Call us today. ^F irsTier Banks First National Lincoln Member FD IC 13th & M Streets • P.O. Box 81008 Lincoln, Nebraska 68501 Phone 800-742-7376 Northwestern Banker, March, lent https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 Bank of Omaha at their disposal — one first national center, omaha, nebraska 68102 for you. member FDIC • 341 -0500 © 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 Export-Import Experts There's an Iowa team to help you Bankers Trust provides a full do business overseas. range of international banking serThe Iowa Export-Import Trading vices to facilitate the financial and Company assists Iowa companies documentary needs of you and in marketing, shipping or procur your customers. Now we're working together, We ing their products outside the have the experience and resources U.S. We help you break into new that can help you expand your markets, prepare the needed sales and profits. documents, arrange Contact Bankers transport — and cut R O M iXSI w Trust's International Divithrough the red tape I D O I sion soon. Together, — to make the prowe'll help you take on cess go smoothly for 11 I l O l Member FDIC the world... worJ and win! the your company M e- r fdic Bankers Trust (515) 245-5288 IOWA EXPORT-IMPORT TRADING COMPANY (515) 245-2464 Northwestern Banker, March, 1986 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Northwestern Banker, March, 1986 Federal Reserve Bank of St. Louis 59 FLEX-0 -PAY, important new profit center for your bank https://fraser.stlouisfed.org 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,” Northwestern Banker, March, 1986 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Banker, March, 1986 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Banker, March, 1986 https://fraser.stlouisfed.org 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» ■/ - /,• *' , •*<?% 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 Theproblemwithmost bankinsuranceis thatitwasn’t conceived bybankers. There are farmers’ insurance companies and firemen’s insurance companies. Even companies founded by travelers. But IBIS insurance was designed by Iowa Bankers only for Iowa banks. In fact, IBIS is owned by all Iowa banks. A nd dollar for dollar, you can’t do better. W hether it’s property and casualty insurance or creditor protection. Employee group health, life, or disability. IBIS professionals tailor each plan to meet your bank’s needs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A t rates you don’t have to be a banker to appreciate. Dividends? Last year we paid over $515,000 to Iowa banks. For more information, call 1-800-5324423 toll-free. A nd find out how much better insurance from bankers can be. IowaBankersInsurance &Services,Inc. 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. 1 800 362-1615 - Member FDIC https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. □ C ft BRANDT % Brandt Has The Products That WiU Wrap Up Your Money Handling Needs. Count On It. % ^ • Chances are when you think of Brandt, you think of your money handling equipment. Actually, Brandt is a total supp lier of banking related items. Paper products are a good example. We handle flat, tubular coin wrap pers. Crimped end wrappers. Paper rolls for automatic packaging. All color coded by denomination. All produced to Brandt’s high quality standards. And, for money coming into your operation, we can supply high quality bank bags. Bags de signed to provide the security you and your custom ers need. Bags built to hold up for extended use. Paper products. Bank bags. Just a part of the complete line of Brandt money handling products. B randt. M aking yo u r m oney count. Brandt, Inc. P.O. Box 200, Watertown, WI 53094 (414) 261-1780. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ¿f ■ ■ ' w Relationship banking. Because you \ \ " f ■■ |F want a banking ™ partner who never H H p ll' stops earning p O T your business. ' J Even a fte r we have it. T h a t’s v ^ wbaf re la tio n s h ip b a n k in g > ) § m e a n s to us. B u ild in g the k in d ‘ ^ d \ 5 of c lo se n e ss th a t ea rn s y o u r A 1 m trust. T h a t’s w h y we p la c e d o u r \ "C & ; C lie n t E xe cutives clo s e to you. i 7o k e e p o u r ears tu n e d to y o u r J needs, a n d g ive y o u w h a t yo u 3A |B V as/c for. Even a n tic ip a te it % Jj b e fo re y o u n e e d it. jm It m a y m e a n w o rk in g a am I ? few late nights. It d e fin ite ly % m e a n s n o t ta k in g y o u r b u s i ness fo r g ra n te d . A n d , it m e a n s u s in g a ll the re so u rce s Jj o f N o rw e st fo r y o u r ben efit. m T h a t’s w h a t we m e a n b y J ||jI I re la tio n sh ip b a n k in g . If yo u ÊÊÈÊÈ I use o u r fin a n c ia l in stitu tio n s m ' services, yo u a lre a d y k n o w J§' ‘ ,v j w h at w e’re talking about. If you mk d o n ’t yet, yo u w ill d e fin ite ly m ' w a n t to try us. W elcom e a c a ll m y '\ ^ from yo u r C lient Executive M (4 very soon. m \ \S jS Financial Institutions Group NORWEST CORPORATION Members FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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