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ABA President Visits Rural America

E xclusive in te rvie w w ith A B A
execu tives on O m n ib u s B an kin g Bill
Federal Reserve Bank of St. Louis

Bankers Look at Ag Trends

M eet the trust departm ent
people who can m ake M NB
work for you.

Frank Ceynar
Our trust department will help you and your customers
deal with today’s increasingly complex tax and estate
structures. Among the many trust services we offer:
Administration and execution of estates; trustee for liv­
ing trust, trustee for trust under will, trustee for life insur­
ance trust, agency and custodian services, estate plan­

ning, trustee of employment benefit accounts, corporate
accounts and trustee for investment management.
For knowledgeable, dependable planning, call on
one of MNB’s trust experts... Dick, Ed, Frank or Flugo
will make MNB work for you. The number to call is
319-398-4224 or toll free 1-800-332-5991.

Make sure you get the best by calling one of MNB’s Correspondent Banking Professionals.

John E. Mangold

Terry Martin

Jerry N. Trudo

Dale C. Froehlich

Stan R. Farmer

Vice President


Vice President

Vice President

Vice President

(319) 398-4313

(319) 398-4320

(319) 398-4306

(319)' 398-4314

(319) 398-4217


Merchants National Bank

Cedar Rapids, Iowa 52401
Federal Reserve Bank of St. Louis



How can this sym bol
help your bank?
Ask the bankers who’ve put up
4 0 ,0 0 0 already.
This new sym bol was in tro d u c e d just last
summer. Since that time, 40,000 decals have
been requested by bankers in every state.
Their customers know these banks are some­
thing special. Do yours?
Displaying this symbol will distinguish your
bank from S&L’s, savings banks, credit unions
and any other institutions that offer bank-like
services. These competitors can’t say they are
A FULL SERVICE BANK because this brand
name is the re g iste re d tra dem ark o f the
American Bankers Association
member banks.
jap y »
By using this symbol on your
doors, drive-in windows and

in your advertising, you’ll immediately benefit
from the ABA’s $5 m illio n “ W e’ve G ot The
Answers” national advertising campaign.
Ask the bankers in your state who now display
the A FULL SERVICE BANK identification. They
see it for what it really is, a valuable com peti­
tive advantage th a t reinforces cu sto m e r
desires for convenience, professional service
and security.
For free decals, call or write Gwen Strickland,
M e d ia C o o r d i n a t o r , A m e r i c a n B ankers
Association, 1120 Connecticut
Ave., N.W., Washington, D.C.
à 20036, (202)467-4187.
S B /-

11980 American Bankers Association
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980

W ould the real
Portfolio A dvisor
please stand up?


Is that portfolio advisor selling advice? Or
bonds for your portfolio? Some banks send out
people who keep you guessing.
At Continental we don’t believe in guessing
games. We offer our correspondents a portfolio
advisor who really is an advisor.
This consultant has no axe to grind. Because
he’s not paid on the basis of bond commissions.
He’s paid, by you, for totally objective advice. And
he’s got the freedom to give it.
What does this portfolio professional do? Well,
he or she will take a long hard look at your unique


situation. Your assets. Your liabilities. Your tax
management. And then he’ll help you develop
strategies that maximize your bottom line.
It’s like hiring a part-time employee with full­
time money center experience. Of course, he’ll
analyze opportunities with you. And make recom­
mendations. But you make the final decisions.
If you want free portfolio advice, wait for the
salesmen to call on you. If you’re interested in
sound advice, call John Tingleff at (312) 828-2191.
He’ll put you in touch with a portfolio advisor
who lives up to the name.

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

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

, »,



« «

MAY 1980 • 87th Year • No. 1400
fcT c

.E Ö
a =

ABA President C. C. Hope, Jr., got a first-hand look at rural Am erica— two of its
country banks and a large farm — in m id-A pril. This unusual trip was covered by
our staff and appears on page 13.
When the South Dakota Bankers A ssociation scheduled its annual Ag Confer­
ence, com m ittee members scheduled some outstanding national ag figures,
pictured on the front cover. A special report by one of the speakers appears on
page 18 and a special staff report with pictures of the SDBA conference ison page

Q . ©

c ffl


Í5; sO

18 A look at the hog m arket





Commodities expert Harold Heinold examines the options

27 O m nibus bill analysis
What the new bill means to the nation’s bankers

28 M ag n itu d e of change unm atched

e g</)

Exclusive interview with W illis Alexander and Jerry Lowrie

2 <


32 Financial superm arkets of 1980s

eO gCD

The evolving nature of major banks is reviewed


36 Cost of co m p lian ce



United Bank of Denver sets its price tag at $12 m illion
O o
5 Z




43 Illinois Program
44 You W ill See Them at
the Illinois Convention
63 South Dakota Program
65 You W ill See Them at the
South Dakota Convention
69 South Dakota Economic Review
76 North Dakota Program
80 North Dakota A ctivity Report
81 You W ill See Them at the
North Dakota Convention
82 Colorado Program
84 You W ill See Them at
the Colorado Convention

6 Calendar
8 Bank Promotions
18 W hat’s New
46 Chicago
51 Minnesota
52 Twin Cities
73 Montana
74 W yoming
89 Nebraska
90 Omaha
97 Iowa
104 Des Moines
110 Advertisers Index

° -<



o o

30615th Street, Des M oines, Io w a 50309


Phone (515) 244-8163



Business Manager

Associate Editor

Malcolm K. Freeland

Ben Haller, Jr.

Mike Freeland

Deborah Peck


Field Representative

Debbie Hlbbert

Glen Hicks

Field Representative
Paul Masters

No. 1400 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office.
Address all mail (subscriptions, change of address Form 3579, manuscripts, mail items) to above address.
Federal Reserve Bank of St. Louis

Jorthwestern Banker, May, 1980




Convention Calendar

V_____________ I_____________J
ABA — American Bankers Association
A IB— American Institute of Banking
BAI — Bank A dm inistration Institute
BMA — Bank Marketing Association
IBAA— Independent Bankers Association
of America
NABW — National Association of Bank
Women, Inc.
RMA — Robert Morris Associates

National Conventions & Schools
May 7-10— NABW W estern/R ocky Moun­
tain Regional Conference, Doubletree
Inn, Tuscon, Ariz.
May 11-14— ABA Northern Regional Bank
Card Conference, The Fairmont Hotel,
New Orleans.
May 11-16—ABA Com m unity Bank CEO
Program, Houstonian Inn, Houston, Tex.
May 15-18— IBA, 12th Sem inar/W orkshop
on Bank Ownership, Hilton Inn, Clear­
water Beach, Fla.
May 15-18— NABW Northwestern Regional
C o n fe re n ce , Red Lion M o to r Inn,
Portland, Ore.
May 18-21— ABA National Operations &
Autom ation Conference, New York H il­
ton and Sheraton Centre, New York City.
May 24-29— AIB Annual Convention, Hyatt
Regency, New Orleans.
May 25-30— BMA School of Trust Sales and
r~ ~

For Installm ent Loans



• Autom ated
• Manual

v .... ; I___ J
call or write:

T K 7 G.D. VAN
1678 Northwestern Bank Bldg.
Minneapolis, MN 55402
(612) 333-2261

V______ _______ J
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

M a rk e tin g , U n iv e rs ity o f C o lo ra d o ,
May 25-June 6 — BMA S ch o o l of Bank
M a rk e tin g , U n iv e rs ity of C o lo ra d o ,
May 31-June 6— ABA National and Gradu­
ate Schools of Bank Investment, Univer­
sity of Illinois, Urbana, III.
Ju n e 5-7— Assn, of Bank Holding Compan­
ies 22nd Annual Meeting, W illiam sburg
Inn, W illiam sburg, Va.
June 16-18— NABW Tri-Regional Confer­
ence, (North Central, Lake and Midwest
re g io n s ) P fis te r H o te l and Tow er,
Milwaukee, Wis.
July 20-25— Midwest Banking Institute Pro­
gram for Agricultural Bankers, University
of Minnesota, Morris, Minn.
A ug. 20-22— C o n fe re n ce of S tate Bank
Supervisors D istrict IV Meeting, Bad­
lands Motel, Medora, N.D.
Aug. 31-Sept. 3— IBAA13th Seminar-Work­
shop on Bank Ownership, The Drake
Hotel, Chicago, III.
Sept. 22— ABA IRA Workshop, Hyatt Re­
gency O’Hare, Chicago, III.
S ept. 14-26 — ABA N a tio n a l In s ta lm e n t
Credit School, University of Oklahoma,
Norman, Okla.
Sept. 14-17— BMA 65th Annual Conven­
tio n , San F ra n c is c o H ilto n , San
Francisco, Calif.
O ct. 5 -8 — NABW A n n u a l C o n v e n tio n ,
W ashington, D.C.
Oct. 11-15— AB A 106th Annual Convention,
Oct. 19-23— IBAA Bank Executive Develop­
m ent S e m in a r, B all S tate U n iv e rs ity ,
Nov. 5-7— ABA Central Regional W ork­
shop, 1980 O perations/A utom ation Divi­
sion, Hyatt Regency Indianapolis, India­
napolis, Ind.
Nov. 9-12— RMA 66th Annual Fall Confer­
ence, S touffer’s Riverfront Towers, St.
Louis, Mo.
Nov. 9-12 — ABA N a tio n a l A g ric u ltu ra l
B ankers C o n fe re n ce , Loew s A n a to le ,
Dallas, Tex.
Nov. 16-18— ABA National Correspondent
B a n kin g C o n fe re n ce , H ya tt R egency,
Atlanta, Ga.

A ug. 1 7-23— IBA C o n su m e r L e n d in g
S c h o o l, E astern Illin o is U n iv e rs ity ,
Nov. 19-20— IBA 35th Annual Bank Man­
agement Conference, Holiday Inn, De­
May 5— Gp. 8, Davenport.
May 6— Gp. 4, Dubuque.
May 7— Gp. 7, Marshalltown.
May 8— Gp. 3, Clear Lake.
May 19— Gp. 5, Council B luffs.
May 20— Gp. 6, Des Moines.
May 21— Gp. 2, Fort Dodge.
May 22— Gp. 12, Okoboji.
June 9-20— Ag Credit School, Iowa State
University, Ames.
June 15-20— Iowa School of Banking, Uni­
versity of Iowa, Iowa City.
July 17-19— Iowa Independent Bankers 9th
Annual Convention, The New Inn, Lake
S ept. 21-23 — 94th A n n u a l C o n v e n tio n ,
Civic Center, Des Moines.
May 5-8—W ashington Legislative Trip.
June 16-17—90th Annual Convention, Du­
luth Arena A uditorium , Duluth.
June 22-27— Minnesota School of Banking,
St. Olaf College, N orthfield.
May 2— MBA Gp. 6, War Bonnet Inn, Butte.
May 3— MBA Gp. 7A, Riverside Country
Club, Bozeman.
May 5— Gps. 2 and 7B, Crossroads Inn,
Miles City.
May 6— MBA Gp. 4, Golden Wheel Night
Club, Plentywood.
May 8— MBA Gps. 5A and 5B, Yogo Inn,
May 9— MBA Gp. 1, Marias Valley Golf
Club, Shelby.
May 10— MBA Gps. 3A and 3B, Outlaw Inn,
May 22-23— MBA Trust Conference, Shera­
ton, Great Falls.
June 25-27 — 77th A n n u a l C o n v e n tio n ,
B ro a d m o o r H o te l, C o lo ra d o S p rin g s ,
May 4-6—83rd Annual Convention, Hilton
Hotel, Omaha.
June 7-11—W ashington Legislative V isit.
North Dakota:

May 19-20—95th Annual Convention, KirkWood Motor Inn, Bismarck.
State Conventions & Schools
June 8-13— School of Banking, University
of North Dakota, Grand Forks.
June 25-27— NDBA Upper Midwest A gricul­
June 5-7— Colorado Bankers Association
tural Credit Conference, Medora.
79th Annual Convention, Broadmoor Ho­
17-19— Ind. Bankers Annual Con­
tel, Colorado Springs.
vention, Ramada Inn, Minot.
Aug. 3-15— CBA School of Banking, Uni­
South Dakota:
versity of Colorado, Boulder.
May 11-13—88th Annual Convention, How­
ard Johnson’s, Rapid City.
June 5-7 — Illinois Bankers Association Oct. 22-23— SDBA Economics Seminar,
89th Annual Convention, S touffer’s Ri­
Holiday Inn, M itchell.
verfront Towers, St. Louis, Mo.
Oct. 9-10— SDBA Instalm ent Credit Con­
June 8 -1 4 — IBA A g ric u ltu ra l L e n d in g
ference, Sheraton Hotel, Aberdeen.
School, Illin o is State University, Normal.
June 11-14— IBA Advanced Agricultural
Lending C linic, Illinois State University, June 11-13 — 72nd A n n u a l C o n v e n tio n ,
Jackson Lake Lodge, Moran.


At Dawson Hail Insurance it is not unusual for our
people to give that little extra bit of time or effort in
order to do a job right. It’s nice to know that in this
day of automation some things are still given that
good ole “ Personal Touch.’’ After all . . . that’s
exactly how we at Dawsons have been doing
business for 63 years.
Whether it’s issuing a policy, adjusting a
loss or paying a claim . . .

Our people make the difference!
1 , .
HAIL ° °
\o o
O °o

We welcome Dennis and Norm to our staff.

-__ 1 L

BOX 1820 FARGO, ND 58107
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980




Bank Promotions

ROMOTION S and other changes
have been announced by the
following banks:
Continental Bank, Chicago: John
M. Richman, 52, chairman and chief
executive officer of Kraft, Inc., was
nominated for election as a director of
the boards of Continental Illinois
Corp. and its principal subsidiary,
Continental Bank, Chairman Roger
E. Anderson announced last month.
The election was held April 28.
D irectors R obert W . Reneker,
former chairman and chief executive
officer of Esmark, Inc., and Arthur
M. Wood, former chairman and chief
executive officer of Sears, Roebuck &
Co., did not stand for re-election.
P rom otions for several officers
calling on banks and business firms in
m idwest states were announced.
They include:
Ernest V. H odge, M arshall V.
Laitsch and Patricia A . T est to
second vice president; Constance A.
Etter, Scott G. Fossel and Cathy L.
Freeman to banking officer.
Mr. Hodge, Ms. Test and Mr.
Fossel serve customers in Nebraska,
Kansas and Missouri. Ms. Freeman
calls on customers in Minnesota. Mr.
Laitsch calls on insurance companies
in Illinois, Indiana, Iowa, Michigan
and W isconsin and on finance
companies around the country. Mr.
Etter serves correspondent banks
and thrift institutions in Michigan
and Ohio.
Vice Presidents: Barry L. Clark,
bond and money market services;
Katherine M. Lorenz and James R.
Stojak, operations and management
services, and J. Lennard Barker and
Gerald E. Buldak, corporate com­


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Box 299 Brookings, SD 57006
Phone 605-692-6145
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

First National Bank of Kansas
City: The promotions of L. Dean
How ard to vice
president, Larry
D. Thompson to
a s s is t a n t v ic e
p r e s id e n t and
Glenn R. Hamil­
ton to assistant
trust officer, were
announced last
Mr. Howard is
a member of the
correspondent division with calling
responsibilities in M issouri. He


joined the bank as a correspondent
representative in 1973 and was pro­
moted to assistant vice president in
1976. Mr. Howard attended Pennsyl­
vania State University and Rockhurst College in Kansas City.
A member of the staff since 1976,
Mr. Thompson has responsibilities in
the installment loan department. Mr.
Thompson attended Central Missouri
State University at Warrensburg.
Mr. Hamilton joined First Nation­
al as a trainee in the real estate trust
area. His primary responsibilities are
in farm m anagem ent. He is a
graduate of Missouri Western State
College in St. Joseph.
Michael G. Fitt, president of ERC
Corporation, has been elected a
director of the First National Bank
of Kansas City. He has been serving
as a member of the bank’s board of
directors advisory council since

First National Bank in St. Louis:
Directors have promoted William K.
Carson and Michael D. Flier to vice
presidents in the bank’s correspon­
dent banking department. The bank
also promoted Timothy P. Markel to
assistant vice president, First
Financial Computing, and Len E.
Meyer to assistant vice president,
national accounts.
Mr. Carson joined First National in
1975. He was elected com m ercial
banking officer in 1976, followed by
an election to assistant vice president
in 1977. He is a graduate of
W ashington U niversity where he
received a m aster of business
administration degree.
Mr. Flier joined the bank in 1957.
He was elected commercial banking
officer in 1971 and assistant vice
president in 1974.

Harris Bank, Chicago: M ary
Ullrich has joined the bank as vice
president and head of public relations
division. Previously, she was assis­
tant vice president, public relations,
at First National Bank of Chicago.
A native of Mount Clemens, M ich.,
Ms. Ullrich also was a reporter and
copy editor with the Chicago Tribune
following graduation in 1967 from
Michigan State University.




m i L M S M O F ...


fen ty Dollars

I i:aooooGipaoi: ho?h?


The new Citicorp Travelers Check.




And if you’re one of the thousands of institutions who are selling our travelers checks,
here’s why you ’re going places, too.
Money makes money. And now more than ever, our money is helping you make
money. Why? Because of our flexible earnings programs. That means Citicorp Travelers
Checks can offer you the best profit potential of any travelers check today.
Traveling First Class. Your customers can travel in confidence and security around
the world. Because Citicorp Travelers Checks are honored worldwide in literally millions of
restaurants, hotels, and stores.
We’ve got THE*PAK! Citicorp is making it easier for you to make it easier for your
customers with THE*PAK— the pre-packaged Citicorp Travelers Checks designed for
speed, safety, and simplicity.
Lost but not forgotten. When it com es to lost or stolen Citicorp Travelers Checks,
it’s hard to find a better refund system than ours. That’s because it’s easy to find us (with
thousands and thousands of convenient locations throughout the world).
24 Hour-A-Day, 7 Day-A-Week, 365 Day-A-Year Service. It’s all part of our
’Round-the-Clock Refund ServiceSMto make sure that a lost Citicorp Travelers Check won’t
inconvenience your customers for one second. In an emergency, a toll-free call to 800-2212566, or a collect call in New York State to 212-559-6308 will refer your customers to the
nearest open Western Union Office or agent in the Continental U.S.
Our advertising says it best. Thanks to a multimillion-dollar ad campaign (including
full-page ads in newspapers and magazines, and commercials on top TV shows) literally mil­
lions of people are hearing about Citicorp Travelers Checks like never before. And that
means increased sales and profits for you.
So, throughout our 76 years, w e’ve learned that for you to give your customers the best
service possible, we first have to give you the best service possible.
Which is why w e’ve been so successful for 76 years.
And w e’re not going to stop. Our travelers check is going places. So hop on, and travel
the world with us.
(Citicorp Travelers Checks were previously First National City Travelers Checks, which
are honored indefinitely.)

© 1980, CITICORP
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


inventory loan
floor plan
fo r...
lending institutions

LaSalle National Bank, Chicago:
William F. Love has joined the bank
as a vice presi­
dent in charge of
the correspon d­
ent banking and
financial institu­
currently includ­
ing $113 million
in loans and $55
million in d e­
mand deposits.
He succeeds Hill
w - F- L0VE
Hammock, senior vice president, who
has assumed additional management
responsibilities with the bank.
Mr. Love, a graduate of the Uni­
versity of Chicago with an MBA
degree, was an assistant vice presi­
dent at the First National Bank of
Chicago in its commercial lending,
loan review and correspondent bank­
ing section.



The National Boulevard Bank of
Chicago: D irectors have elected
Christine H. Youngberg, personnel
officer, and Linda E. Simms,
compliance officer, at their March
meeting, according to an announce­
ment by Henry K. Gardner,

Let us sew one
up for you.
Call John Cressend
Exec. Vice President

504/ 523-5353

D o u g la s -G u a rd ia n
W a re h o u s e
C o rp o ra tio n
offices in 15 principal cities
with Executive Offices
in New Orleans, LA
P.O. Box 52978, 70130


Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis



A graduate of Drake University,
Des Moines, with a B.S. degree, Mrs.
Youngberg joined the bank in June,
1978, as a personnel assistant with
responsibilities for interviewing and
employe counseling. Prior to joining
the bank, she was employed as a
coordinator of cooperative education
at Illinois Institute of Technology.
M s. Simms joined the ban k ’ s
commercial department in November
of 1976. She was transferred later to
the audit departm ent and since
December, 1978, has been involved
with National Boulevard’s consumer
compliance manual. She is currently
pursuing her degree in finance and
management at DePaul University.
Northern Trust Corporation, Chi­
cago: At the recent annual meeting of
stockholders, Douglas R. Fuller and

Harold Byron Smith did not stand for
re-election. Mr. Smith became an
honorary director of the holding
company, whose principal subsidiary
is Northern Trust Company bank.
Mr. Fuller, retired vice chairman of
the corporation and long-time chief
executive of the bank, joined the
directors advisory council of the
Stockholders elected Harold Byron
Smith, J r., to serve on the
corporation’s board.. He is also a
director of Northern Trust Bank. Mr.
Smith is president of Illinois Tool
Works, Inc. All other directors of the
holding company were re-elected and
the number on the board was reduced
from 18 to 17.




Fed Lists 5 Unfair
Banking Practices
In its 1979 report to Congress
required by the Federal Trade
Commission Act, the Federal Re­
serve Board listed five banking
practices that should be investigated
as allegedly unfair or deceptive. They
were listed as:
1. False advertising of free or
interest free checking accounts.
2. Failure to pursue consumer
complaints without being prodded by
3. Failure of banks to disclose or
explain terms of an account when it is
4. Failure to disclose delayed
availability of funds deposited by
5. Changing rules on savings and
checking accounts without notifying

Commercial Lenders Name
New ABA Division Heads





M. Brock W eir, chairman of
AmeritrustCompany, Cleveland, O., ^
was elected chairman of the American
Bankers Association’s commercial
lending division.
Daniel J. Callahan, III, president *
and chief administrative officer of
The R iggs N ational Bank of
Washington, D. C., was elected vice chairman. The elections were held
during the A B A ’ s 32nd National
Credit Conference at the A tlanta t
Hyatt Regency Hotel, March 16-18.
Mr. Weir and Mr. Callahan will
assume their new posts at the time of
the ABA annual convention to be
held in Chicago, October 11-15.








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performance from
a high volume
The BRANDT® Model 952
When you process a high volume of
coin, there are two key ingredients.
Speed and accuracy.
The BRANDT® Model 952 high speed
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autom atic sensor elim inates coin
The 952’s coordinated styling satis­
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The attractive Desert Tan finish
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me for the whole story on our new
product lines for the 80’s.


ABA President
Visits Rural America

C.C. gets a good briefing on rural bank operations from Gary
Northrup (left), exec, v.p., and Jim Rhodes (right), pres., of
Melbourne Savings Bank.

HEN A B A President C. C. Hope Jr. said, “ Why
yes, I ’d be delighted to address your annual
awards banquet,’ ’ the officers of the Iowa Valley
Chapter of the American Institute of Banking couldn’t
believe it. But they became believers on April 16 when
the energetic, personable Mr. Hope came to central Iowa
for a whirlwind day that included a luncheon with
bankers in Des Moines, visits to two rural banks and a
nearby farm, then social hour and dinner with 185
excited AIBers from the mid-Iowa area. With his out­
going personality and sincere interest, it wasn’t long
until he was “ C.C.’ ’ to nearly everybody.


Farm Economy a Prime Concern
The severe problems of the midwest farm economy
have been of concern to the ABA, national farm leaders
and government officials, and C.C. seized this opportun­
ity to learn about the midwest rural bank and farm situ­
ation first-hand. Everywhere he went, he asked ques­
tions and listened. As executive vice president of First
Union Corporation in Charlotte, N.C., and vice chair­
man of its principal subsidiary, First Union National
Bank in Charlotte, he knew the value of questioning and
Upon arrival in Des Moines in late morning he visited
with several local bankers, then attended a small lunch­
eon for several area bankers hosted by Herman Kilpper,
president, and Ben Eilders, senior vice president, of
Bankers Trust Company. After the luncheon he set out
on his busy mid-Iowa schedule with trip hosts Keith
Lazar, president, and John Jorgensen, president-elect,
of the Iowa Valley Chapter of AIB. Mr. Lazar is cashier
of Tama State Bank and Mr. Jorgensen is executive vice
president of Commercial State Bank, Marshalltown.
They traveled in a van piloted by William J. Beohm,
chairman and president of Tama State Bank.
Visit at a Rural Bank
First stop was Melbourne Savings Bank at Melbourne
(pop. 700), where C.C. introduced himself to each person
in the $17 million deposit bank. He spent 45 minutes in
the office of President James L. Rhodes, along with
Gary Northrup, executive vice president, asking ques­
tions and listening attentively. The dialogue between
C.C. and Jim Rhodes went like this:
Federal Reserve Bank of St. Louis

C .C .: What are you doing about the credit restraint pro­
gram? How is it affecting you?
Jim: We knew last October our liquidity was poor and we
were loaned high and that if a credit crunch came we’d be
in a poor position, so we started telling our
out-of-territory customers they would have to cut back
and look elsewhere for their financing. We have cut our
loans by $2.5 million and they’re down from 104 %, con­
sidering use of Fed Funds borrowed to tide us over, to
81% now. Basically, we operate in a 15-18 mile radius.
C.C.: What are Money Market Mutual Funds doing to
your deposits?
Jim: We have a different problem here than you have.
We have assessed penalties on early withdrawals for
those who requested their time CDs be cashed in, but we
have cashed them in. W e’ve also gotten some money in
here from other people and we’re holding our AVa %
spread. But now, we’re seeing us catching up to our high
cost of funds that started four months ago. Our economy
out here is in trouble and has been for some time. With
$2.10 com a farmer can’t pay taxes and work the land for
what the cost of land is now.
C.C.: What is your breakdown of deposits?

C.C. listens to farmer Donald S. Buck explain some of the busi­
ness details of operating 1,200 acres of Iowa farmland. At Mr.
Buck’s right is one of his three sons who farm with him.
Northwestern Banker, May, 1980


Jim: $2.5 million demand, $4 to $6 million savings, and
$10 million time.
C.C.: Are you ready for NOW accounts? Will you have
them here?
Jim: Actually, we’ve had them all along, if you want to
know the truth. Customers call in here and tell us they
need $500, or whatever amount, transferred from
savings into checking and it’s done. I think the answer is
simple—the big banks will take the lead and we’ll all
have to follow whether we want to or not. W e’re ready
anyway. Our computer man told us the other day we’re
all prepared to start with them at anytime. If they come,
we’ll offer them just like we have everything else.
C.C.: Are farms selling and for what kind of financing
out here?
Jim: Our federal land banks are maybe going to 30 years.
The insurance companies are going to 25 years with a
guaranteed rate for 15 years, but they’re not making
any. Banks don’t have the funds to get into this kind of
C.C.: Will the six-year phase-out of Reg Q bother you?
Jim: Not a bit. Money will seek it’s own level. Let’s quit
kidding ourselves; we know what the competition is and
we’ll meet it.
C.C.: W hat’s the general feeling among your customers
for any possible improvement in the economy?
Jim: They are not optimistic at all.
C.C.: What should A B A be doing to help you in Iowa?
Jim: I ’ll tell you what we do need—a political change—
whoever it is and whatever party—we need a change.
Someone needs to recognize that when the farmer is
brought to a stop for whatever reason that it has reper­
cussions reaching to both coasts. They want our farmers
to feed the United States and the world but they turn
their backs when trouble hits. They want our grain at low
prices, then jack up the prices elsewhere and the farmer
gets little or none of it because his uncontrolled costs im­
posed by the rest of the economy leave him nothing. If
the farmer doesn’t get enough, then he goes down and
it’s felt in Detroit and all over. Our farm exports are the
only positive factor in our economy today; they’re help­
ing our nation but none of the benefit is coming down to
farmers. On the other hand, though, if the price of corn
was jacked up to $4 or $5 this could be bad because land

C.C. visits with bankers in Des Moines. From left: Dick Buxton,
pres., PeoplesT&S, Indianola; Paul Dunlap, pres., Hawkeye Bancorporation, Des Moines; C.C.; Herman Kilpper, pres., and Ben
Eilders, sr. v.p., Bankers Trust, Des Moines.
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

“O perator, the W h ite H o u s e !”
N EXCITED staff of Central State Bank in
State Center, la., greeted ABA President C.C.
Hope at the front door. Bank President Bill Haesemeyer immediately said, “ Mr. Hope, Washington
has been calling for you. You’re to call the White
House at once!” Mr. Hope went to a telephone and
as he started to use his credit card for the phone call
he was stopped by President Haesemeyer who
exclaimed, “ Don’t do that, Mr. Hope! I want this
call to appear on our phone bill so I can frame it.
Nobody’s ever called the White House from State
Center before!”
(It was learned later that Mr. Hope’s call related
to setting an appointment with White House offi­
cials for A B A ’s Inflation Task Force. However, the
top White House staffers on the phone, upon learn­
ing where Mr. Hope was calling from, asked him
about farm conditions in the midwest. Mr. Hope
told them “ I have just visited with a very capable
farmer with a big farm operation down the road a
few miles and a capable bank staff at a rural bank. I
can tell you that things out here are desperate and
many people are going to be hurt along with our
farmers if something isn’t done immediately to
assist them. It is a critical matter.” That input,
along with others, must have found its way to the
decision makers. The following evening, the White
House and Treasury announced $3 billion would be
made available for loans to farmers and small busi­
nesses through opening the Fed discount window
to non-member banks as well as member banks—at


prices would skyrocket—but we do need prices increased
adequately. Farming should stand on its own. I don’t
think corporate farming will work but the family farm
will. Secretary Butz told the truth and got kicked for it.
C.C.: What do you think about the proposal for with­
holding of taxes and dividends by banks and other cor­
Jim: I hope it won’t go through and I don’t think it will.
Next Stop—An Iowa Farm
Jim Rhodes and Gary Northrup then led the caravan
to the farm of Don Buck, a customer of Jim’s bank and a
long-time prominent farmer in the area. (It was another
reunion for Don and this editor, who were crewmates in a
B-24 heavy bomber group in Italy during World War II
—a long time ago!) Don farms 1,200 acres, owns about
half of that acreage and now has three sons coming into
the family farming business. His farm operation turns
out about 1,500 market hogs a year and he also handles
about 100 head of stock cows in a cow-calf operation in
which he can sell off calves or feed them out, depending
on farm and economic conditions.
Don is assessed by neighbors and area bankers as an
astute businessman who works hard at the business of
farming, and this includes keeping on top of what’s
(Turn to page 87, please)


Bart French. Senior Vice-President, First National Bank.
Head of the Correspondent Banking and Real Estate
Divisions. Born: St. Louis, Mo., 1932. Education: St. Louis
University, 1955. Member, President’s Council of St. Louis University.
Recently reorganized the Correspondent Division to better meet
operational and credit needs of customers. “In today’s environment
it’s difficult for a bank to offer unique products or services for long.
What sets us apart is an in-depth knowledge of our customer’s
needs and a keen awareness of the importance of timely response.”
At Firstbank. First National Bank in St. Louis. Where Firstperson
performance means dedication to excellence in information
and results.


First National Bank
in St. Louis
A First Union Bank

510 Locust Street • St. Louis, Missouri 63101 • (314) 342-6967 • Member FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980

and the balance continue from June
through next September.
The briefings cover these topics:
Repricing bank services; Consequen­
ces of higher funds cost; Planning for
the ’80s; Sources of new deposits;
Outwitting the thrifts; EFT and the
small bank; Living without Reg Q.
B riefing leaders are: Jack W .
Whittle, chairman of the firm and one
of the banking industry’s foremost
authorities on bank marketing and
strategy, and Lawrence “ B iff”
Motley, executive vice president of
the firm, and one of the country’s
leading experts on financial pricing.
Eleven briefings were scheduled on
a one-day basis. The first was in
Houston last month. The rest will be
held in each of the following cities:
Dallas, June 13; New York, June 16;
Atlanta, June 27; Kansas City, July
11; Boston, July 14; Las Vegas, July
SHOWING OFF their striped nameplates are, from left: Virginia Luzier, a one-step silver 21; New Orleans, July 28; Chicago,
level teller; Marilyn Needham, a one-step gold teller; Bill Sanders, a bronze teller, and
August 11; Minneapolis, August 25;
Janet Ringe, a one-step gold teller.
Nashville, September 25.
Five briefings will be held for two
days each at the following resorts:
“ Best in the W e s t” Tellers
W ood stock , V erm ont, M ay 9-10;
W illiam sburg, V a ., June 21-22; K
Colorado Springs, Colo., July 25-26;
ELLERS at First National Bank such as gift certificates, and certain Pebble Beach, Cal., November 24-25.
of Arizona know they are more guaranteed rates of salary increases
than just ordinary bankers. They also are included with each ranking.
have certified proof that they are All eligible tellers who join the volun­
“ Best in the W est.”
tary program receive a personalized
Hundreds of paying and receiving cube of note paper featuring the House Begins Hearings on
Interest Withholding
tellers at First National, a Western bank’s brightly colored logo.
Before tellers can take the profi­
The House W ays and Means ▼
Bancorporation affiliate, are receiv­
ing special certification and other ciency review , they first must Committee was scheduled to begin
recogn ition for outstanding work weather a month-long evaluation by hearings A pril 30 on President
Carter’s proposal for withholding of „
through the bank’s “ Best Tellers in customers and supervisors.
Customers fill out evaluation forms 15% of interest and dividends at the
the W est” program.
The three-level teller certification and drop them in an evaluation box at source. The proposal initially was
program rewards expertise and ex­ the branch office, and supervisors fill assailed by bankers as burdensome
cellence in teller procedures, human out a questionnaire. Tellers also must and, even though the Administration
relations, product know ledge and meet certain standards for overs and later backed off from its initial plan
for immediate posting as interest was
understanding of branch policies at shorts during that time.
Tellers who meet all requirements credited and offered the option of
First National, said Jim Willsey, vice
president, retail banking division- during the evaluation month then are withholding on an annual basis or at
Phoenix. The program, which began eligible to take the proficiency review the time of posting, opposition by the
in November, emphasizes customer the next month. Participants for the financial industry still was strong.
President Carter claim ed this
bronze certificate are tested on teller
First National awards certificates procedure and human relations. m ethod o f im proved com pliance
at the bronze, silver or gold teller Competitors on the silver level are would add $1 billion in revenue to the
level, depending upon length of em­ tested on product know ledge and Treasury because the governm ent
ployment with the bank, performance branch policy. Tellers competing on claims so many individuals do not
evaluations by supervisors, customer the gold level are tested on all areas. report their interest and dividends.
Nothing was said about reimbursing
evaluations and written proficiency
banks, other financial institutions
reviews. The bank also has special
Bank Directors’ Briefings
and corporations for becoming even
written reviews that allow tellers to
more sophisticated tax collectors.
apply directly for what is called one- Planned for 15 Cities
W hittle, R addon, M otley &
The withholding would not apply
step silver or gold certification.
Upon certification at each level, a H anks, In c., a C hicago financial to dividend or interest payments to
corresponding bronze, silver or gold consulting firm, is holding 15 Bank corporations, but the requirements /
stripe is added to the teller’s name­ Directors’ Briefings in cities across would apply to dividends paid by
plate, Additional monetary rewards, the nation. The first was held April 11 those corporations to stockholders.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Northwestern Bankers,
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Y o u ’ll like d o i n g b u sin e ss w ith T h e A ss o cia te s .
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Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


A Look At the Hog Market

Chief Executive Officer
Heinold Commodities, Inc.
Kouts, Ind.

T IS possible that your farm cus­
tomers will receive $80 cwt for hogs
in the 1980s — but I hope we do not
have to hit $20 cwt before we reach
$80 cwt!
During the past 10 years, we have
had unbelievable price fluctuations.
In December, 1970, hogs rallied from
$15 to $56.30. In June, 1974, we had
a price of $23.50 and 14 months later,
after a 27% liquidation, we hit an
average of $56.10. Now, let’s take a
formula: take our $28 hogs today and

go up the same percentage and we
are now at $98. All we have to do is
liquidate 27% and in 14 months we
will be at the new peak. There is a
good chance of it.
How do we get your farm custom­
ers to liquidate? Let’s think about the
last time. We hit a dry spell and corn
went from $1.10 to $3.20. Today if we
take that same percentage at $2.30,
we are talking $6.78 corn. If that
happens I guarantee you we’ll li­
quidate. Maybe that’s what we need.


batch or continuous counting, the
operator simply enters the desired
function into the keypad/command
center, and denomination, batch and
count are all presented in an
easy-to-read LED display.
Ideal for use in banks, vending
firms and large retail operations, the
Brandt Model 873 eliminates adding
machine verification of deposits, by
its paper tape printout that serves as
a permanent, detailed analysis of all
items deposited. Fast, accurate, dayend balancing is accom plished
through elim ination of m ultiple
adding machine tapes and the
transcription from tapes to spread
The 873 is finished in a soft desert
tan color to blend in a variety of
environments. It measurees 18 inches
high, 141/2 inches wide and 13%
inches deep, and weighs ju st 32


W hat’ s New
RANDT, Inc., of Watertown,
W is., has announced a unique
currency p rocessin g system , in a
single, compact unit, that counts
both quantity and total value of
currency and documents fed into the
The new system permits coin and
check totals to be keyed in, for unified
processin g of receipts. W hether

HE Mosler Safe Company is in­
troducing the American Century
Class III vault door. Mosler’s new
door has passed the rigorous Under­
writers’ Laboratories test for two
hours net working time to effect entry
and has, therefore been given a Class
III standing.
The door proper of the American
Century Class III is 9” thick and is


MODEL 873, the new currency processing
system from Brandt, Inc., counts both
quantity and total value of currency and
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Supply and demand is still a factor.
When you stop and think that we
increased hog production 26% from
1978 to 1979. From our low year in
1975 we increased production by
51%, causing our own trouble.
Change T actics
We can blame econom ic condi­
tions, but the facts are that farmers
are just not liquidating hogs and I
think we have to change our tactics.
If we do not we will have low prices
for a long time down the road. Added
to the current situation is the fact
that most farmers do not honestly
know their costs anymore. Even if
they put a pencil to their operations,
the hidden costs that creep in a
month or two later can make the dif­
ference between profit and loss.
Here’s what I’d like each one of you
to do when you talk to your farm cus­
tomer. Tell him that it is time now to
take care of himself. Forget about his
neighbor. (Too many farmers are
waiting on their neighbors to get out
(Turn to page 68, please)
constructed of 8/2 ” of SUPERLOY,
with one-half inch steel backplate.

MOSLER’s new American-Century Class III
U.L. listed vault door.

SUPERLOY, Mosler’s improved se­
curity material, has been laboratory
tested and proved more resistant
than steel or reinforced concrete.
The Class III exceeds all require­
ments of the 1968 Bank Protection
Act (Rev. 11-1-73) and the 1968 In­
surance S ervices O ffice S p e cifica ­
tions (Rev.10-30-74), and provides 9R
(18” wall) or 10R (27” wall) vault
M osler recently introduced the
American Century Class II (one hour
U .L . rated) vault door. This door is
5 V2 ” thick and provides 5R (12” wall)
or 6R (18” wall) vault classifications.


T h e M osler
A d v a n ta g e:
Secu rity people w ho
teach secu rity people.
For more than 20 years, Mosler’s AntiCrime Bureau people have provided security and
law enforcement officers, tellers, security
system installers, as well as insurance
investigators with the latest, most com prehensive, anti-crime programs in the world.
In short, there’s never been anything
exactly like our anti-crime seminars, security
officer training schools and teller security
training programs.
Mosler and guest experts not only
reveal new ways to combat criminal tactics, but also present new ideas in law enforcement
and security systems. We also teach security people how to teach security people.
You see, at Mosler, we know any security system is only as good as the
people who use it.

Secu rity products that
offer better security.

Mosler’s bullet-resistive equipment is not only designed to decrease armed
holdups and attacks, hut it’s also designed to increase employee
morale and public confidence. A ll our bullet-resistive
equipment is fabricated from UL-listed materials and constructed
to meet or exceed UL and A N SI standards.
Mosler offers customized protected work stations as well
as windows and vision panels, doors and package receivers,
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Mosler also offers you all the professional and technical
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Put The Mosler Advantage to work for you.
Write Mosler, Dept. BR-80, 1561 Grand Blvd., Hamilton,
O hio 45012, and ask for free copies o f our
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Bullet-Resistive Equipment Brochure.

Q u ality People. Q u ality Products.

M osler



H am ilton, O hio 45012
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


INTRODUCING speakers at Harris Bank’s 1980 Financial Management Conference was the assignment of James W. Hill (left), v.p.,
pictured with his correspondent department associate Richard O. Ristine Jr. (center), comm. bkg. rep., and Exec. V.P. John L. Stephens,
final speaker on the program. RIGHT— Two of the other speakers were N. Daniel Engstrom (left), v.p.-secy., and Michael L. McCowin,

At Harris Bank Conference

Inflation W ill Drop to 10% in 6 M onths

SIGNIFICANT downturn in the
economy is underway, according
to Herbert E. Neil Jr., vice presidenteconomist at Harris Bank, Chicago,
who addressed 150 bankers attending has stood for re-election in a recession
his bank’s 1980 Financial Manage­ year.
Mr. Neil sees the possibility of in­
ment Conference in Des Moines last
month. This is one of a series held in flation dropping off to a 10% rate by
the m idw est by Harris in recent year-end.
years. Mr. Neil based his comment on
In his forecast he said he is “ an un­
the arrival of the heralded recession abashed bull in the bond market.’ ’ He
said in municipal bonds the outlook is
with these reports:
• Pay roll employment dropped in “ grim m er but anyone looking at
March for the first time in five years, yields will find anything in munici­
with the biggest drops in manufac­ pals at 7 V2 % or better can top any
corporate and at four years or more
turing and construction.
• Car sales are down sharply and will out-perform governments.’ ’
even foreign car sales have turned
• Retail sales are dropping again.
• Major appliance sales have col­
lapsed, with growth at zero.
• Steel orders have collapsed.
Mr. Neil also said the real income of
workers in the past year has been
eroded 7 % by inflation and taxes, the
sharpest drop since the depression of
the ’30s. This brings the drop to 11 %,
the same drop noted in the 1973-75
recession. The m ost notable drop
(20%) is in farming, with no relief in
He anticipates the magnitude of
the recession and length to be about
the same as the 1973-75 slide, but
lower than some anticipate. He noted
this is the first time since Herbert EXTENDING the official welcome for Harris
that an incumbent president Bank was Jerry H. Pearson, v.p.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

The stock market slide will have to
end and rebound but analysts will
have to study the market closely for
valiadity to determ ine the tu rn ­
around point.
Vice President Jerry Pearson wel­
comed the crowd of bankers and Vice
President Jim Hill introduced a series
of eight speakers from Harris Bank
who covered current information in
their respective areas of expertise.
The final speaker was John L.
Stephens, executive vice president,
who gave a close look at the several
year suit against Harris Bank by the
Department of Labor in a case of
alleged discrimination against women
and minorities. Harris records, he
said, showed the government’s case
to be so weak that Treasury Depart­
ment representatives, who were originally assigned to investigate the
case, officially reported that Harris
lawyers “ would laugh the govern­
ment out o f c o u r t.” A fter that,
Treasury was replaced by Depart­
ment of Labor, and a hearing officer
was assigned who has a perfect record
of 25 straight reports —all in favor of
Labor Department.
Mr. Stephens cited repeated in­
stances of where Harris has answered
the alleged charges, yet the hearing
examiner has ignored Harris testi­
mony and, in some cases refused to
let Harris attorneys see some of the
government evidence. The case has
not yet had a determination from the
hearing examiner, who will report to
the Department of Labor. If the judg­
ment is adverse to the bank, Harris
will have the right to appeal to civil





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Northwestern Banker, May, 1980


G innie M ae Losses C lose O hio S&L
PECULATION in Ginnie Mae
securities from 1975 to 1979 by
officials of Washington Federal Sav­
ings & Loan Association in Cleve­
land, Ohio, ended abruptly in March
when the Federal Savings & Loan In­
surance Corp. took over the Wash­
ington Federal to protect $176.5
million in depositors’ money.
FSLIC reported that the firm had
made com m itm ents to buy great
amounts of Ginnie Maes, figuring
that when the time for putting up
cash rolled around that long-term
interest rates would have fallen and
the market value of the certificates
would have improved. The opposite
happened because interest rates con­
tinued their climb.
FSLIC reported it has now paid for
$53 million in Ginnie Maes ordered by
Washington Federal and an addition­
al $25 million in commitments that
were to come due shortly after the
FSLIC takeover. In addition, there
were stated to be outstanding com­
m itm ents to buy $500 m illion in
Ginnie Maes by mid-1981, equal to
nearly three times the institution’s
total deposits.
It was reported that only 53 % of
Washington Federal’s portfolio was
in mortgage loans and 40% was in
Ginnie Maes, a wide divergence from
the average of 95 % in mortgage loans
by other Ohio s&ls.
The problem at the lending firm
apparently was known to federal
authorities in early 1978. Nothing
was done until May, 1979, when the
Federal Hom e Loan Bank Board
issued regulations limiting the per­
centage of assets an s&l could commit
to forward contracts in Ginnie Maes.
F SLIC closed the W ashington
Federal March 15, took bids from
other Ohio s&ls for outstanding de­
posits, then accepted the bid from
Broadview Savings & Loan Associ­
ation. FSLIC has kept the problem
assets and liabilities, it was stated.
Washington Federal officials were
reported to have termed F SLIC
action “ precipitous and unwarrant­
ed’ ’ and promised legal action.
Subsequent to the W ashington
Federal demise, Sen. Harrison A.
W illiam s Jr. (D -N .J .) introduced
legislation on April 1 that would
amend the 1934 Securities Exchange
Act to provide regulation of the gov­
ernment securities market. It is de­
signed to govern trading in such
as those guaranteed by the
Northwestern Banker, May, 1980
Reserve Bank of St. Louis

G overnm ent N ational M ortgage
Association. Mr. Williams is former
chairman of the Senate Banking Se­
curities Subcommittee.
Sen. Williams bill would require
registration of brokers and dealers in
certain guaranteed securities with the
SEC; establish a seven-member Gov­
ernment Securities rulemaking board
to prescribe trading principles and
ethical business practices, and en­
courage creation of central clearing
facilities to clear and settle transact­
ions and reduce the risks of trading in
the government securities market,
particularly where delayed or option­
al delivery of securities is involved.

1st of Chicago Initiates
Shared ATM Terminal
Starting last month, Illinois joined
several other states allow ing offprem ise, shared autom atic teller
machines (ATMs). Chicago’s North
Western Station is the location of the
first Cash Station site, part of a
planned, shared network.
The First N ational Bank of
Chicago developed the Cash Station
system after G overnor James
Thom pson signed two bills in
September, 1979, changing the laws
to allow the system . The Cash
Station system allows banks to begin
using the new technology immed­
iately. By participating in the shared
system, financial institutions will be
able to provide their custom ers
24-hour convenience in making
deposits, withdrawals, cash advan­
ces, loan payments, funds transfers
and checking current balances. First
Chicago and M t. P rospect State
Bank are the initial members of the
Cash Station network.
Trial demonstrations of the new
Cash Station were conducted during
m orning and evening rush hour
periods during the week of April 7.
Consumers had the chance to enter a
Cash Station Sweepstakes. Winners
will use the Cash Station (ATM) for
periods of up to 10 minutes, keeping
all the cash that comes out of the
machine, up to $1,000.

Two New Officers Are
Named at the Chicago Fed
Two new officers have been named
at the Chicago Federal Reserve Bank
by that bank’s board of directors.
William V. Ott has been named a
vice president with the FRCS-80 pro-

ject team, the special group being
organized at the Chicago Fed to
oversee the development and install­
ation of a new nationwide communi­
cations network for the entire Federal
Reserve System.
Form erly director of com puter
operations at the Federal Reserve
Bank of San Francisco, Mr. Ott has
worked recently as an independent >
consultant and brings extensive
experience in communications sys­
tem design to the FRCS-80 project.
Named operations officer in the
Chicago Fed check department was
Theodore E. D ow ning, Jr. He is
assuming supervisory responsibility
for the check adjustment and return
item units which handle a variety of
problems; for example, NSF checks,
which arise in providin g a check
clearing and collection service. Prior
to his promotion to the check depart­
ment position, Mr. Downing was a
senior auditor in the bank’s auditing

AICPA Issues Guidelines
On Bankers’ Bonding Plan
Guidelines issued by the banking
committee of the American Institute
of Certified Public Accountants will
enable CPA firms to participate in a
plan to aid smaller banks obtain
adequate bonding against fraud and
The American Bankers Associa­
tion’s Preferred Group Bonding Plan
has been developed by the A B A
primarily for banks with less than
$300 m illion in assets. Insurance
com panies had been w ithholdin g
such coverage, claiming their loss
experience was too high.
Under the plan, a bank adheres to
internal controls which are examined
by independent auditors or other
approved examiners on a periodic
basis. An insurance company uses
the report to determine the degree of
“ The A IC P A guidelines were
developed to suggest the services
CPAs might provide to meet the
objectives of the plan and maintain
the standards of the accou n tin g
p ro fe ssio n ,’ ’ explained M artin F.
M ertz, com m ittee chairman and
partner in Peat, Marwick, Mitchell &
Co., New York.
The guidelines include a descrip­
tion of the plan, the steps necessary
to qualify as a plan examination firm,
and guidance for establishing the
scope of an exam ination and
reporting the results.


Sometimes it's better than being there.
Do business over the phone and take a big wait off your mind.

Northwestern Bell
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


Central N a tl., C hicago, G ets $12 M illio n
Capital Infusion from C itico rp , N .Y .
National Chicago Cor­
poration, holding company for
Central National
Bank in Chicago,
has reported en­
tering into an
operational serv­
ices contract with
the Financial In­
formation Serv­
ices Group of
Citibank, N .A .
under which the
latter will per­
form, over a period of time, a major
portion of the bank’s operations sup­
port functions. Jackson W. Smart
Jr., chairman, president and chief
executive officer of the Central Na­
tional Corporation and the bank,
com m ented, “ This operations ar­
rangement includes access to Citi­
bank’s sophisticated cash manage­
ment services which will allow Cen­
tral National Bank to compete on an
equal basis with any bank in the
United States and, additionally,
should result in measurable operating
savings in the next few years.”
Mr. Smart also said that in a separ­
ate transaction Citicorp, parent of
Citibank, has invested $12 million in
Central National Chicago Corporat­
ion in the form of non-voting cumu­
lative preferred stock, Series B, with
an initial dividend rate of 12% per
annum. Central N ational Chicago
Corporation also has granted a nontransferable warrant to purchase $12
million of the corporation’s common
stock at the book value at the time the
warrant is exercised. The warrant is
effective for 15 years and is exercis­
able only in the event of a change in
the current federal or Illinois laws,
which at the present in Illinois pre­
clude inter-state multi-bank holding
companies and branch banking.
The proceeds have been used by
Central National Chicago Corporat­
ion to in ject approxim ately $11
million into Central National Bank,
of which $10 million is a contribution
to capital. The balance of the invest­
ment will be utilized in the corporat­
ion. As a part of the corporation’s
capital program, principal payments
on the holding company’s and bank’s
long-term debt have been deferred
pending the overall restructuring of
the debt.
Mr. Smart also stated that this ar­
rangement represents the bank’s suc­
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

cessful conclusion to its search for a
qualified investor. The transactions
have been discussed with the Chicago
regional office of the Comptroller of
the Currency and the Feder al Reserve
Bank of Chicago.
On a separate matter, Mr. Smart
said that the office of the Comptroller
of the Currency has advised the bank
that it intends to formally require the
bank to follow certain specified pro­
cedures and policies principally relat­
ing to transactions between itself and
the holding corporation. He indicated
that he does not expect this require­
ment to adversely affect the bank’s
Finally, Mr. Smart noted that the
corporation and Midland Bancorp,
Inc., holding company of Sears Bank
and Trust Company, had announced
last August an agreement to study a
possible merger of the two institu­
tions. As a result of the sale of the
preferred stock to Citibank, Midland
and the corporation have mutually
agreed to term inate the merger
study, he said.

Prices and Earnings
Study Reported
Purchasing power of the American
worker is stronger than his counter­
parts anywhere in the world accord­
ing to a 45 city study by the Union
Bank of Switzerland. The study com­
pared wages and earnings of 12
occupations and professions with
consumer prices.
C hicago, San F rancisco, Los
Angeles and New York, the four
American cities studied, rank first,
second, third and sixth for purchas­
ing power among the 45. The study
states: “ High wages and salaries, but
prices in the middle range, help con­
sumers in the North American cities
to continue to com m and the
strongest purchasing power.
Amsterdam and Zurich hold fourth
and fifth spots while M ontreal,
Toronto, Sydney and Luxembourg
round out the top 10.
The five most expensive cities, in
terms of the cost of the market basket
are: Jeddah ($1,361); A bu Dhabi
($1,205); Bahrain ($1,190); Tokyo
($1,022), and Oslo ($1,006).
The five least expensive are:
Bogota ($534); Mexico City ($517);
Istanbul ($502); Lisbon ($456), and
Manila ($444).

The four American cities ranged in
the middle two-thirds of the price
scale. New York ($812) was 16th;
Chicago ($762), 22nd; San Francisco r
($742), 27th, and Los Angeles ($718),

B of A Commits $300 Million
For Commonwealth Edison
Bank of America last month signed
a credit agreement committing up to
$300 million for the financing of nuc­
lear fuel for Commonwealth Edison
The credit facility, committed for a
period of five years, will support the ~
issuance of com m ercial paper by
Commonwealth Fuel Company and
provide credit to Com m onw ealth Fuel Trust in the event of a direct
borrowing. It will finance a portion of
Commonwealth Edison Company’s _
nuclear fuel requirem ents for its
existing nuclear plants in Illinois as
well as several additional nuclear
plants now under construction.
Commonwealth Fuel Company will
issue commercial paper and will ad­
vance proceeds to Com m onwealth *
Fuel Trust to finance and own nuclear
fuel that the latter will lease to Com­
monwealth Edison Company.
The nuclear fuel financing is be­
lieved to be the largest ever arranged
in the United States for an investorowned utility company.
Eight other banks are participât- ing in the financing. They are
Bankers Trust Company, Chemical
Bank, Security P acific N ational
Bank, Deutsche Bank AG, Dresdner
Bank A G , N ational W estm inster
Bank L td ., The Sum itom o Bank
Limited and Swiss Bank Corpora­

Harris Bank Institutes
$20 Credit Card Fee
The Harris Bank, Chicago, has r
begun charging its Visa and Master
Charge credit-card customers a $20
annual fee.
The bank began notifying custom­
ers in April with the fee to take effect
during May or June. A single $20
charge will apply to those customers
holding both cards.
“ Inflation and increasing operat­
ing expenses, as well as the record
high costs of the bank’s lendable
funds, make this move necessary,”
Ben T. Nelson, senior vice president A
and head of the metropolitan banking
group, said.


W e enter the eighties with a renewed
promise of dedicated people, innovative services
and all the strength and reliability
you’ve come to trust.”
Donald R. LacKamp
Senior Vice President in charge of Correspondent Division
Federal Reserve Bank of St. Louis

J jlp P
x r


Northwestern Banker, May, 1980


Commercial Corporation
regional office
in Chicago serving
Richard N. Lovett Jr.
VP. and Regional Manager
100 South Wacker Drive
Chicago, Illinois 60606
Tel. (312) 346-5405


It’s a capital source.
Atlanta • Charlotte • Dallas • Los Angeles • New York

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Means to
ETAILS o f the new banking law signed by
P residen t C arter on M arch 31 have been
analyzed by the Am erican Bankers Association
and were sent April 8 to the ch ief executive officer
of every A B A member bank. Officially titled the
1980 Depository Institutions Deregulation and
Monetary Control Act, and known during its Con­
gressional tour as HR 4986, or the 1980 Bank
Deregulation Law or just as the Omnibus Banking
Bill, it is now Public Law 96-221. The Special
Supplement to each ch ief executive from ABA
should be retained and used since it not only gives
a brief of key points in the law, but it also offers on
page 4 the effective dates for the different provi­
sions o f the law. In addition, names and telephone
numbers o f A B A staff members who may be con­
tacted for further inform ation on their assigned
portions o f the new law are given.
Here is a brief summary o f points offered by


R egulation Q
Interest rate controls are to be phased out by
March 31, 1986. This will be accomplished by a
deregulation committee composed of the Treasury,
Fed, FDIC, FHLBB and NCUA. The law suggests,
but does not mandate, stepped removal o f rate
controls; however, it calls for at least a one-quarter
percent increase in the ceiling by September 30,
1981, and one-half per cent increases annually
after that. A t the end o f six years the deregulation
com m ittee ceases to exist along w ith Reg Q.
Thrifts retain their one-quarter percent favorable
differential through the phase-out.
Federal Reserve Bank of St. Louis

Federal R eserve
Fed authority is increased to require reserves
from all depository institutions for their transac­
tion accounts and all nonpersonal time deposits,
and by establishing a supplemental reserve re­
quirem ent for transaction accounts. In effect,
banks that left the Fed after June 30, 1979, are
considered member banks. Reserves against NOW
accounts will be required immediately when they
are offered after January 1, 1980. Immediate ac­
cess to Fed discount window is available for all
institutions carrying reserves. Fed members will
be phased in to the new requirements by 1984. The
nonmember institutions will be phased in over
eight years or by March 31, 1988. Reserves will be
held directly with the Fed but may be sent in­
directly by the correspondent bank netw ork.
There will be a 3% reserve requirement, with a
range of 0% to 9%, on all nonpersonal time de­
A 3% reserve will be imposed on the first $25
million of transaction balances. That $25 m illion
figure will be indexed annually on December 31
and rise or fall at 80% of inflation rate.
For larger transaction balances, a 12% reserve
would be in force, with a range o f 8% to 14%.
The Fed could impose a supplemental reserve up
to 4% if five Board members concur.
Fed pricing principles are to be published by
September 1, 1980.

State Usury Law s
These are set aside, effective April 1, 1980, on

(Turn to page 42, please)

Northwestern Banker, May, 7980


Banking Leader S a y s:

‘ *Magnitude of

unmatched since
A N orth w estern B an k e r interview with

Executive Vice President
American Bankers Association

S THE 1980 Depository Institutions Deregulations
and Monetary Control Act really an important one?
Just how important is this Public Law 96-221 that was
signed March 31 by President Carter three days after
approval by the Senate o f the House-adopted conference
committee report on HR 4986? Ever since enactment of
the new law, bankers have been trying to assess the
actual impact o f the Omnibus Bill, as it is commonly
known, and find out if they have lost ground or perhaps
have some competitive opportunities.
To give our readers an assessment of the bill by two of
the many Am erican Bankers Association officials who
have been involved with the legislation since it evolved
over a period of years, we interviewed W illis W. A lexan­
der, executive vice president, and Gerald Lowrie, direc­
tor of government relations, from AB A headquarters
staff in Washington. Mr. Alexander has been a banker
during his entire business career, serving for many
years as president and now chairman of the family
bank, Trenton Trust Co. in Trenton, Mo. He was presi­
dent of the AB A in 1968-69 and then in 1969 agreed to
take on the duties he now holds as chief executive of the
ABA staff at its headquarters in W ashington, D.C. Mr.
Lowrie is a veteran of IIV 2 years with AB A and is
known to bankers and legislators nationwide for his
outstanding work in the area o f federal government
Mr. Alexander comments, "The magnitude of the
change potential involved in this bill has not been
matched by any legislation affecting the financial com­
munity since the mid 1930s.” Mr. Lowrie adds, "B ank­
ing has changed dram atically as a result of this bill.
Management will have to adjust to an entirely different
way of operations.”
Following are comments of Mr. Alexander and Mr.
Lowrie to some of the questions raised by this new

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Director of Government Relations
American Bankers Association

what initial comment would you like to
Q ■Willis,
make about the Omnibus Bill?
Price controls in the financial arena, whether
■we’re talking about Reg Q, which is a federallymandated price control, or usury, which has up to now
been a state-mandated price control, have been recog­
nized for just what they are.
From the standpoint o f this b ill, the federallymandated price controls — or what financial institu­
tions can pay in a marketplace that is not completely
controlled — are going to be eased and ultimately eliminated.
There is a rather commendable recognition that in
the business of being a financial intermediary, as a
bank is, that if you’re going to play with the controls on
the paying side you must also do something about the
controls on the selling side; i.e. the usury ceiling.
Now this didn’t go far enough as far as usury ceilings
are concerned, but there has been for the first time a
recognition that these two are related and that there is a
willingness on the part of the Congress and, apparently,
a willingness on the part of the states to permit some
kind of preemption subject to action in each instance to
reserve the state’s ultimate responsibility if it wants to
reverse the act.


One point that has created confusion is that under
■the section dealing with usury, state laws are
preempted until April 1, 1983, for all business and ag
loans of more than $25,000. A majority of banks and
their loans under $25,000 seem to be affected more so
than those in excess of $25,000. Can you shed some light
on this?


(Alexander) I sense that we have an uncompleted
■mission in terms of usury. This was a figure some-






change is
m id- 1 9 3 0 s ”
one (in Congress) picked out and decided it should be in
there. Jerry may have some comment on that.
(Lowrie) We have learned through Senator Proxmire
(chairman o f Senate Banking Committee) that the in­
tent of the bill is that if a loan o f under $25,000 is part of
a series of loans aggregating $25,000 or more, or an
advance under a line o f credit exceeding $25,000, then
such a loan is treated as over $25,000.
We have been w orking with a coalition o f people from
retail credit and credit card interests in seeking a res­
olution o f this $25,000 limit. Title 1A o f the proposal
under consideration would be a complete override of
state usury laws. Title IB would involve only business
and ag loans but either delete the minimum or set the
minimum lower.
l f you go for total exemption o f usury laws would
■that exclude the consum er and revolving rate
loans as well or do you think that still would be directed
to business and ag loans?


(Lowrie) W e’re going for the complete preemption
■of all state consumer usury laws. There are two
parts to that title so you can’t get everything but you
can start getting parts o f it. The second part deals with
business and agricultural, exemption, where we want to
get rid of the m inim um denominations. So, in Title Two
in case you don’t get either part o f Title One, you want to
get where you can price the card as a value exchange
device, independent o f its use as a credit device.



A s we understand it, this law, effective January 1,

■ 1981, will open the Fed discount window to all
financial institutions required to carry reserves with
the Fed against their transaction accounts. What will
be the impact o f this on the banking business? Will the
Fed be as tough on everybody as they have been tradi­
(Lowrie) A Federal Reserve press release dated
■March 31 comments on that: "Processing o f lim ita­
tions on the discount window, which affects many
o f additional depository institutions, spawns

Federal Reserve Bank of St. Louis


development of necessary procedures and regulations
within the Federal Reserve System, coordination with
other agencies that have supervisory (and other) re­
sponsibilities for the institutions and dissemination of
information about the terms and conditions on which
various types of discount window credit may be avail­
able to depository institutions concerned. Effective
arrangements needed to regularize access to the dis­
count window will be fully implemented by July 1.” I
guess the only thing one can do is speculate.
(Alexander) It’s fair to say there is going to be an
effort made to even-handedly administer the discount
window, but other players are going to have access to it
just as they have access to transactional accounts. I
should mention that there will be no access to the win­
dow unless the institution is required to hold reserves
against transactional balances effective next January
1. What they are trying to do is make the Fed a court of
last resort for credit purposes for all parts of the finan­
cial community. It’s always been that in understanding
and they just put that in the law.
(Lowrie) Reg A, the rule on access, which is what
they’re trying to work out with the other agencies, says
that access is a privilege, not a right.
(Alexander) I would guess that a savings and loan or a
credit union or a bank going to the same district bank
would probably be playing under the same rules.
One of the concerns we’ve heard from various
■bankers relates to the whole concept of the dis­
count window and, recognizing the variations between
Fed banks, the possibility of the discount window be­
coming a source of long-term funds similar to what the
Home Loan Bank Board makes available to s&ls so far
as long term commitments are concerned. Any com­


(Alexander) I think that would require a psycho­
lo g i c a l change in the Fed staff that would take
(Lowrie) It certainly was what Fed Chairman Paul
V olcker had to talk to the National Association of
Mutual Savings Banks about, and even W illiam Miller


Northwestern Banker, May, 1980


(then Fed chairman and now Treasury Secretary) when
he was trying to lure them into supporting earlier bills.
But that’s all it is so far, is talk. You may have read that

“There are some positive,
constructive steps already
underway to assist all
banks in understanding
the new law .”

sessions are going on now about emergency measures
that can help institutions at times that need everything
from interstate acquisitions to whatever. I’m sure a lot
of those things are being re-thought. You read where
the s&ls make the analogy back in the 1930s that you
never knew whether any of them failed or not because
they were funded in such a quiet way that you didn’t
know their positions. Whether there’s going to be any
kind of change in process or procedure for them or for
banks to be more like them, nobody knows.
(Alexander) To be more specific about where this
leaves the banking business, I think even as transaction
accounts are being shared with other types of financial
institutions, so is access to the discount window. I don’t
think the rules will be preferential in terms of non­
member banks.
Since banks have had access to the Fed discount
Q ■window
for many years, will this give them some
lead time to exploit this opportunity?
Clearly, banks have whatever lead time is in­
v o lv e d from now to the first of January when
transaction accounts are made available to thrifts, and
for the first time they have legitimized access. What the
Fed is saying is that they’re using this prospective au­
thority to re-state their availability for emergency re­
quirements in the interim period.
(Lowrie) The whole issue of the paper and assets eligi­
ble for discount will have to be redefined and you’ve got
to coordinate what these others are doing. I think the
bank enjoys the continuing advantage for quite a long
period of time, unless you have a failing s&l situation
that the Fed decides to help in coordination with the
Home Loan Bank Board.
there some constructive things about this bill
Q Are
■that community bankers can look at?
(Alexander) There sure are and let me mention a
■few of them. It really goes back to 1977 when four
workshops were held and 1,100 bankers participated
across the country, interest-bearing transaction
accounts — how to operate and how to price. It was
played off the experience in New England, where, in the
initial go-off in Massachusetts and New Hampshire, we
gave away the farm and then had to beat back and get
some legitimate pricing. Then, along came the other
states — Connecticut, Vermont and others — and they
took advantage of that and priced them very positively
and very profitably. Following this, there was a whole
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

handbook and course put together by ABA and just last
November there were nearly 1,000 bankers in four
workshops on NOW accounts in Atlanta, Dallas and
San Francisco. This year, in recognition of the likelihood that this bill was going to pass, there are 25 states
that have already agreed to conduct these seminars
with this material that has been market-tested over the
last three years. Also, there are 50 seminars on this new
bill scheduled between April and September and an
estimated 7,000 bankers are going to participate. So,
there are some positive, constructive steps already
underway to assist all banks in understanding this new
bankers will ask, as various situations de­
Q Many
v e lo p , what ABA is doing about this or that situa­
tion. Their present concern is, "How does ABA perceive
the impact of the Omnibus Bill on us?”
(Lowrie) Banking has changed dramatically as a
■result of this bill. Management will have to adjust
to an entirely different way of operations.
(Alexander) There isn’t anyone yet who has the wis- dom to identify the full impact of the significant change
in course that has occurred by virtue of this act. We’ve
eliminated price control — call it Q, if you like — under v
which bankers of your generation and mine have lived
ever since they’ve known anything about banking, and
that’s traumatic. But, if we hadn’t moved in this direc­
tion, and the regulators hadn’t besn emboldened to
move in the last two years in anticipation of this, I think
most of our banks would absolutely be out of business
today if we were stuck with the Q ceilings that existed
two years ago.


“W e’re playing in a
whole new ballgame and
I know banks can
compete if they want to .”

A small banker states, "It appears that ABA and
■many banks are pursuing the elimination of Reg
Q to get rid of the rate differential favoring thrifts. If

Reg Q is eliminated, how can community banks com­
pete with money center banks who offer higher rates to
drain off our money and lend it elsewhere?”
(Alexander) Let me say, initially, that when this
■gentleman says ABA we want to point out that the
posture of ABA is one that was hammered out by a
group of bankers (more than 400 of them at the Lead­
ership Conference), over half of whom are community
bankers. To me, the questioner seems to suggest that
you can somehow insulate a part of the financial mar­
ket, either by law or by custom, so that money won’t
flow where it gets the highest return. Now, I’ve asked
bankers, "How close do you need to get to a market rate
in order to hold your customers? Do you need to match
it?” They say, "No, it varies all the way from lV2-2%. If
we can get that close, our customers will stay with us.”
So, the fact of the matter is the financial market is a




nationwide market and I don’t think any o f us can be in
the business unless we recognize that and are prepared
to compete with it. Now, the next side o f the question is
"W ell, my customers can’t pay those kinds o f rates.” In a
world where w e’re saying we don’t have enough sav­
ings, where w e’re seeking to give additional incentives
to savers, how can that exist? I understand that every­
one believes that his hometown and marketplace is
somehow insulated and isolated. But what has hap-

“Banking has changed
dramatically as a result
of this bill. Management
will have to adjust to an
entirely different w ay.”

pened over the last six months is irrefutable evidence
that that is no longer valid, if indeed it ever was. W e’re
playing in a whole new ballgam e and I know banks can
compete if they want to.
For the past decade or so, more and more people are
becoming rate conscious. As the interest rates go up in
tandem with the inflation rate, the penalty o f leaving
money in a passbook account at 5V4% just becomes un­
bearable. O bviously, some custom ers have specific
reasons for keeping some money in ready savings. For
better or worse, here we are and I think it is for the
better. This bill over its phase-in period gives to banks
and bankers who desire it, the opportunity to compete in
the big market.
Some people in smaller communities have the
■feeling that the money being drained out o f their
communities is tunneling into big banks on the east
coast and then into foreign loans or for other use to the
advantage o f just a few large banks. Will you comment
on that?


(Lowrie) W e’ve challenged that question to the
■Reserve C ity crow d on several occasions and
they’ve been terribly supportive o f us trying to find
some way that we can live with this competition and not
continue to lose all the funds to it because they see the
inefficiency in it and also they argue that they’re losing
what they would call stable core deposits of their own.
(Alexander) Based on inform ation we have, about
half the money market mutual funds went into bankrelated CDs, repos or whatever. It has gone m ainly to
larger banks. In talking about this issue with the strike
force, I was never aware of any single money center
bank saying, "L et’s keep this thing going because w e’re
gaining.” Their attitude has been that this is a net loss
to banking. Even if the entire 100% went into bankrelated obligations, this is a redistribution which is
unacceptable to everybody and it is not being played by
the money center banks as something they would like to
see continued. I’m very sensitive to this and I have yet to
find anyone o f them who says, "W ell, that’s their prob­
lem, not m ine.”


Getting back to the Omnibus Bill itself, Willis,
Q ■how
do you compare it to any previous banking

Federal Reserve Bank of St. Louis

(Alexander) The magnitude o f the change poten­
t i a l involved in this bill has not been matched by
any legislation affecting the financial community since
the mid 1930s. The key difference between the mid 30s
evolution and what has occurred with respect to this bill
is that this time bankers got their act together and
helped manage the change rather than be steamrol­
lered by a change that was driven by severe economic
distress and structured by politicians. Now whether
we’ve done a wise job in what we have acquired here
really remains to be seen, but the thrust and direction is
all there and it was the express desire all the way
through the evolution of these positions and this legisla­
tion to try to put banks in position so that in this new
environment they would be able to be a competitive
force over the rem aining two decades of this century.
Nobody’s really going to know because much is going to
depend on how these things are administered. The fact
that bankers put their act together and helped manage
it is tremendously constructive and encouraging as we
look at the future.


Looking at the perspective of where we started in
■ 1978 with the first Fed membership bill proposed
by Secretary M iller, Senator Proxmire and Representa­
tive Reuss, where do you feel we’ve wound up with this
Omnibus Bill?


(Alexander) Let me finish up what I started at the
■beginning of this discussion. W e’ve talked about
price control and central bank. The other thing that has
been important to bankers all along is to get a level
playing field. We have made significant progress in this
direction through reserves and the elimination of the
differential by the process of ratcheting up instead of


“The fact that bankers put
their act together and helped
manage it is tremendously
constructive and encouraging
as we look at the future.”

just outright elimination. A banker who asks, "W hy
didn’t we get everything,” just doesn’t understand that
there are other players in this game and they’re very
articulate, competent players. The political process nev­
er gives anybody everything. It gives everybody some­
thing. I think the other point I’d like to make — and
usury is the best example — is this. W hen you’re baking
as complex a cake as this one was, you don’t always try
to make the icing as part of baking the cake. The icing
comes later. That’s why we still say there are things yet
undone. The usury situation has to be dealt with in
some fashion and the non-regulated competitive forces,
such as the money market mutual funds, we still have to
accommodate and reconcile to that situation. Those
things are all before us. This whole business is a process
and not an event. This is an important event, but one
has to put it in a perspective of where banking could
have been and where it now permits banking to g o.O
Northwestern Banker, May, 1980


Financial superm arkets
of the 8 0 s

W ritten Especially for
T he N orthwestern B an ker

V ice P resident and M anager
C orpora te F inance Division
Continental Illinois National Bank
and Trust C om pany o f C hicago

Editor’s Note: Mr. Dancewicz was invited to prepare this
overview o f the evolving nature o f a major commercial
hank as it strives to compete in a constantly changing
and highly regulated national market, and in a highly
competitive world market. Because more and more re­
gional and community banks find themselves serving
local firms that do business worldwide, the authors de­
scription o f current money center capabilities shows the
extent o f newer services that are available through cor­
respondent relationships to regional and community
banks that do not find it practical to develop these serv­
ices on their own.

ONSUMER shopping has changed radically from
the days before massive supermarkets and sprawl­
ing department stores. Today at some places you can
have your taxes prepared on the way in, buy some wine
and a steak for dinner, pick out new wallpaper for the
kitchen, and sit for your passport picture just in case the
tax refund is big enough for that overseas trip you’ve
been planning.
Similarly, today’s corporate financial executive de­
mands increasing depth and breadth o f comprehensive,
diversified corporate finance services from his com m er­
cial banks. The "financial department store” concept
has indeed arrived in the commercial banking industry.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

In addition to requiring the usual array of credit and
cash management services, today’s typical corporate
banking client looks to his commercial bank for help on
negotiating acquisitions, issuing Eurobonds, leasing
airplanes or other capital equipment, privately placing
15-year taxable notes or 30-year, tax-exempt obliga­
tions with institutional investors, or deciding whether
to issue debt publicly or privately.

T ransform ation at M oney Center Banks
Lines of distinction between commercial banks, in­
vestm ent banks, specialized financial services sup­
pliers, and brokers are increasingly blurred by con- in­
stantly shifting regulation and strong synergies among
financial products. Economic forces are at work to erase
m any o f the rem aining legal distinctions betw een
financial functions to the extent that legislated bound­
aries and administrative discretion will permit.
The trend among large money center banks is clear;
emphasis is on consolidation and concentration of broad
financial services within a single institutional fram e­
work in which traditional commercial banking services
is only one among many important financial activities.
The preoccupation of U.S. banks with asset accum ula­
tion will dwindle. Interest m argins will continue to
diminish in relative importance to the overall profit picture, although interest income will remain the dom i­
nant earnings source.


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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


“In 1970, seven U .S . banks w ere
lis te d a m o n g th e w o r ld ’s te n
largest. N ow , only tw o Am erican
banks grace the top ten lis t.”
But if banks are to maintain a competitive posture
and satisfy the full range of corporate customer de­
mand, they must exercise expertise in transactions ori­
gination, arranging, and consultation, as well as tailor­
ing highly-specialized financial services.

Four Reasons for Transformation
Four reasons exist for rapid transformation by money
center banks into vast reservoirs o f financial resources,
including financial advice.
First, the relative importance to overall bank profita­
bility o f interest spreads has declined as banks have
paid interest on demand. Also, time deposit and time
deposit interest rate ceiling guidelines under Regula­
tion Q have been eased. Analysts calculate that the
additional interest cost to the banking industry of
paying today’s market rates on time and demand de­
posits would exceed $100 billion annually. Yet, 1978 net
income for all insured commercial banks was only $10.7
billion. These rapidly shifting cost factors necessitate a
new strategic emphasis on generating substantially
more fee income to m aintain desired returns on equity
and assets.
Second, fierce foreign bank competition in the U.S.
credit markets is eroding interest spreads significantly
on commercial and industrial loans while reducing U.S.
banks’ domestic market share. Increased volume can­
not compensate for losses resulting from aggressive
underpricing and, thus, banks are faced with a competi­
tive double-jeopardy in their core product area.
The impact o f foreign bank competition is illustrated
by data which show that foreign banks held loans over
$28 billion in 1978, a whopping 17% o f the 1978 U.S.
commercial and industrial loan market. The data are
even more startling for the greater New York commer­
cial banking market. In that region the foreign bank
market share has been estimated at 37%.
Third, the relative ranking by asset size of U.S.
banks among the w orld’s largest banks has declined
markedly due to the sustained depreciation of the dollar
relative to the world’s major currencies. In 1970, seven
U.S. banks were listed among the w orld’s ten largest.
Now, only two Am erican banks grace the top-ten list.
This change suggests that U.S. banks need to be smart­
er if they can’t be bigger. Competing effectively against
■ THE AUTHOR received his B.A. degree in Economics in 1971 from
Yale University and an M.B.A. degree in finance and Marketing in 1973
from the Harvard G raduate School of Business Adm inistration at Harvard
University. In 1972-73 he worked at National Shawmut Bank of Boston in
the areas of strategic and m arket planning \projects for the bank and
holding company banks. He joined Continental Bank of Chicago in 1973
in commercial banking. In 1976 he was given assignm ents with responsi­
bility to senior m anagem ent for developm ent and im plementation of the
three year National Corporate Banking strategy, including the develop­
ment of a regional office system. In 1977 he moved into corporate finance;
became m anager of private placem ents in 1978, and in 1979 was ad­
vanced to vice president, corporate finance, m anager of private place­
ments and m anager of corporate finance.
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

the giants on a world-class scale requires an ability to
offer unique and high-quality corporate financial serv­
ices, with worldwide delivery capability, in order to
avoid the global "regionalization” of the U.S. banking
Fourth, non-banking institutions, exempt from com­
mercial banking regulatory restrictions, have launched
effective competition against commercial banks in such
areas as credit cards, real estate financing, portfolio
management, etc. U.S. banks no longer are as prom i­
nent in credit and money markets. Traditional short
and intermediate-term credit products of commercial
banks are now only a limited subset of a much broader
financial products and services industry. In response,
banks are creating special financial products to sustain
profits and protect customer bases.
Awareness o f increasing pressures on traditional
commercial banking earnings sources is now strongly
evident in the rela tiv ely successful launching by
numerous major commercial banks of fee-based finan­
cial services which have historically been considered
the exclusive domain of the investment banking com ­
munity or the management consulting fraternity. Some
new corporate financial services include mergers and
acquisitions, private placements, financial consulting,
international merchant banking, and leasing.

“In the private placem ents area
. . . com m ercial banks stand to
benefit in such a greatly expand­
ed m arketp lace.”

Alm ost daily, Continental Bank and other major
money center banks compete with investment and mer­
chant banks overseas and in the U.S. Continental also
advises corporations on the development and execution
of acquisition and divestiture programs for corporate
clients, in addition to exercising a key role in effecting a

Growth in Private Placements
In the private placements area, the passage of ERISA
and KEOGH legislation in 1973 vastly increased the
flow of funds to private placement sources through con­
centrated early pension plan funding. As a result, 43%
of new long-term industrial corporate debt capital
raised in the U.S. in 1978 came from the private place­
ment market. 1978 was the third $20-billion-plus year
in a row, which contrasts sharply to the $7 billion per
year averages of the mid-1960’s.
From 1975 to 1978, roughly 75% of all long-term
financing by non-Fortune 500 companies and almost
37% of the Fortune 500’s long-term debt was raised
privately. Such transactions typically involve negotiat­
ing structures, terms, rates, and covenants tailored
closely to corporate needs. Commercial banks, with a
competitive advantage in understanding credit issues,
negotiating covenants, m aking early identification of

(Turn to page 42, please)


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doesn’t go home at
five o’clock.
We’re there
w hen your custom ers
need us.
Whether it’s 3 am in Arizona
or 11 pm in Nova Scotia, your
customers can find help if
their travelers cheques are lost
or stolen.
Because by simply calling
us toll-free, they can arrange
for an Emergency Refund® at
participating Holiday Inns
throughout the U .S. and
Canada. A refund o f up to $100 to
tide them over until
normal business hours resume
—when they can get the
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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


United Bank of Denver reports:

Cost of
compliance .
Vice President
Corporate Services
United Bank of Denver
Denver, Colo.

NE OF the corporate objectives of United Bank of
Denver during 1979 was to evaluate the cost of gov­
ernment regulation on the bank’s operations. Such a
study was conducted during the latter part of 1979 by
Jerome C. Darnell, professor of finance at the University
of Colorado, under the direction of corporate services.
The major findings are represented in this executive


All components (divisions/groups/services) within
the bank were asked to supply information on the cost of
com pliance with regulatory requirem ents in their
respective areas. The data were collected for direct labor
costs, both officers and non-officeis, and other types of
direct expenditures. The direct labor costs were further
classified into the time devoted to policy and procedure
formulation necessary to interpret and implement regu­
lations, and the time required to prepare and submit
routine, periodic forms to various government agencies.
All other non-salary, non-interest expenses were
specified for each major component of the bank. Indirect
expenses of support areas were allocated on the basis of
48% of total direct labor and other costs.
Total Cost of Compliance
During 1979 the bank incurred a total cost of $12.3
million in satisfying government regulations. Distri­
bution of the cost is as follows:
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Direct Labor Cost
Policy and procedure form ulation necessary
to interpret and implement government
O fficer/ Manager labor cost
Non-Officer labor cost
Preparation of periodic reports
Project Development, Data Processing Services
Other Direct Cost (Examination fees,
assessments, audits, printing, materials,
com m unications, etc.)
Indirect Cost (48% of Total Direct Cost)
Earnings on Reserves ($55 m illion at 11%)

$ 1,860,000
$ 2,054,000


$ 4,192,000
$ 6,204,000

Direct Labor Cost
The total direct labor cost amounted to $2.1 million.
The labor cost for employes has been adjusted upward
by a factor of 20 % to account for fringe benefits provided
by the bank. Time devoted to policy and procedure form­
ulation necessary to interpret and implement regulat­
ions represents over 90% of the total labor cost.
Preparation and submission of periodic forms and
reports contributed less than $200,000 to the labor cost.
Thus, it is not the time required for report generation
that is so costly; it is the time required to study, plan and
react to new and existing regulations that is most
The total direct labor cost represents about 10 % of the
total wages, salaries and benefits paid by the bank in
1979. A cost of this magnitude means that the typical
bank employe is devoting an average of about 48
minutes out of every eight-hour day to satisfying gov­
ernment requirements. Put another way, roughly one
out of ten employes is devoting full-time to government
Officer/manager time accounted for about a third of
the labor cost. It appears that officer/managers may be


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travelers cheques are lost or stolen.
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Emergency Refund® at participating
Holiday Inns throughout the U.S.
and Canada. A refund o f up to $100
to tide them over until normal
business hours resume—when they
can get the balance o f their refund.
American Express® Travelers
Because our refund system
doesn’t take naps on Saturdays or
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Federal Reserve Bank of St. Louis


spending a disproportionate amount of their time on
regulatory compliance activities since officer salaries
comprise about 30% of the bank’s total payroll.
Unfortunately, management time is a very valuable
resource and is not readily replaced or duplicated. If the
chief executive officer or other senior management must
be involved in resolving regulatory issues, their time will
not be available to spend on the primary management
functions of the bank.
Other Direct and Indirect Costs
Other direct costs include project development for
data processing of $92,000 which was incurred specific­
ally to satisfy regulatory requirements. Other data pro­
cessing expenses are included in indirect expenses.
Other direct costs cover a variety of expenditures such
as printing of forms, subscriptions, outside contractors
and consultants, requests for information, telephone,
postage, attendance at meetings, examinations, assess­
ments and audit fees.
Various types of expenses are incurred by the bank
even though they are not directly related to government
compliance activity. Indirect expenses are essential,
however, to the direct operation of the bank. Data pro­
cessing would be an example. Full allocation of indirect
expenses is normally assigned to all projects undertaken
by the bank in order to evaluate benefits and costs in a
proper manner.
Therefore, it is appropriate that government compli­
ance should be assigned a proportionate share of the
indirect expenses. Based on an analysis of the indirect
expenses generated by various areas of the bank, indi­
rect cost was allocated to government compliance activ­
ities on the basis of 48% of the total direct cost.
Earnings on Reserves
The opportunity cost of foregone earnings on reserves
held with the Federal Reserve System was placed at
$6.05 million. This figure was derived from an average
daily balance held with'the Fed during 1979 of approxi­
mately $55 million, and it was assumed that during 1979
an average yield of 11 % could have been earned on the
idle balance if invested in Treasury Bills or Federal
The earnings represent a gross figure before taking
into account the cost of services provided by the Fed. If
the bank had to pay for the ‘‘free” Fed services, the value
of the foregone earnings would have been reduced, but

no attempt was made in this study to place a value on
Fed services.
Compare With Income-Expense
To place the significance of the cost of government
compliance in better perspective, several comparisons
with income and expense items of the bank have been
• Total direct and indirect costs of government com­
pliance are equivalent to 33.2 % of the before-tax income
and 47.5% of after-tax net income.
• Total direct and indirect costs are equivalent to
110.4% of the bank’s applicable income taxes in 1979.
• Total direct and indirect costs were the fourth
largest expenditure of the bank, ranking behind interest
expense, salaries and benefits and data processing costs.
• Total direct and indirect costs represent 5.2% of
total operating expenses.
• Total direct and indirect costs are equal to 5.8% of
total interest and fees collected on all loans.
• Compliance with consumer-oriented regulations
amounted to $2,646 million. Based on the average
volume of consumer loans outstanding, the cost of con­
sumer compliance is equivalent to 1.32 percentage
points of the interest rate charged on consumer loans.
• Total direct and indirect costs represent 77 basis
points of the overall yield on all the bank’s loans.
United Bank of Denver prepares about 170 periodic reports and forms for submission to government agencies.
Of these reports, 13% are optional and all others are
mandatory. It is the opinion of department managers
that only 20% of the mandatory reports are essential for
effective bank management, 20% are considered to be
desirable, but not essential for management, while the
remaining 60% are deemed to be non-essential for man­
agement purposes. Thus, a substantial portion of the reporting seems to have limited usefulness for the overall
conduct of the bank’s business.
Regulation Z, dealing with truth-in-lending, was
singled out by department managers as the regulation
which requires the greatest expenditure of bank re­
sources to satisfy. It is also the one that customers find
most inconvenient.
□ THIS STUDY was conducted for United Bank of Denver
by Jerome C. Darnell, professor of finance at the University
of Colorado.






ly below those of other funds and pro­
vide a convenient vehicle for
investors that otherwise would invest
The Federal Reseve Board has an­ over w ithout incurring the 15% directly in such tax exempt obligat­
nounced a series of changes in its special deposit requirement as long as ions. The rem aining nonexem pt
credit restraint program concerning the units are sold only to the unit- assets of such funds would be subject
money market funds and other simi­ holders of record on the date the trust to the special deposit requirement to
matures, the sales charge is not sub­ the extent they exceed the fund’s
lar entities.
stantially increased, and a unitholder base.
The changes will:
Provide a minimum base for
1. Extend the exemption for bank- cannot subscribe to more units than
funds that were engaged in a continu­
opeated collective investment funds he held in the maturing trust.
Exempt the tax exempt assets ous public offering on March 14.
to bona fide personal trusts, pension,
In addition, the board changed the
market funds whose invest­
retirem ent and other tax-exem pt
accounts invested in money market ment objective is to invest at least reporting and maintenance periods
80 % of their assets in short-term tax for money market funds to a weekly
2. A llow the unit investm ent exem pt ob liga tion s. These funds basis. Special deposits were required
trusts of a particular sponsor to roll­ typically provide a yield substantial- to be maintained begining April 14.

Fed Changes C redit G uidelines
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Am erican Express
is there when
• your custom ers
need us.
Federal Reserve Bank of St. Louis


(Continued from page 27)
home mortgage loans, including mobile home
loans. No federal ceiling is mandated. This over­
ride will be permanent unless a state legislature
reimposes usury ceilings by April 1, 1983.
State usury laws are preempted until April 1,
1983, for all business and ag loans of more than
$25,000. These loans may be made at a rate of up to
5% over the discount rate plus surcharge of the
Fed bank in lender’s district.
Disclosure requirements are streamlined for
closed-end credit, effective March 31, 1982.
However, effective March 31, 1980, regulators
may order repayments to customers where finance
charge or APR is inaccurately disclosed and ex­
ceeds exact figure by one-quarter of one per cent.
Repayments for errors between January 1, 1977,
and March 31, 1980 may be ordered if they exceed
the tolerance level or due to willful violation or
gross negligence. Details of simplification should
be reviewed carefully.
Thrifts and Credit Unions
Expanded powers grant authority to s&ls to

operate remote service units, offer NOW accounts
at year-end, offer lines of credit, consumer loans
and credit cards, offer mortgage loans of unlimited
amounts, and lend to customers without geo­
graphic restriction. S&Ls may invest up to 20% of
assets in consumer loans, commercial paper and
corporate debt securities.
Credit unions get share drafts and can boost
their interest limit on loans to 15% from the old
12% limit.
Other Provisions
There are a number of these. A selected few
show that:
• A moratorium is in effect on new interstate
trust operations until October 1, 1981. Present
ones unaffected.
• Foreign banks may not buy U.S. banks of
more than $100 million until after July 1, 1980,
except w here in solv en cy or b an k ru p tcy is
• National banks can invest in the stock of
FDIC-insured banks owned exclusively by other
• The Fed cannot reject applications for a onebank holding company solely because the transac­
tion involves a bank stock loan to be repaid over
not more than 25 years.

(Continued from page 34)

executives, and which bank corporate finance units
have sought to fill.

and responding to customer needs, stand to benefit in
such a greatly expanded marketplace.
Only three U.S. banks had active placement depart­
ments in 1974. However, in 1978, at least 15 active bank
advisors closed more than $1.1 billion in private place­
ment financing.

Trend to "World Class" Banks
Some money-center banks have gone a step further in
the development of major offshore investment banking
activities in the form of merchant banks, which also
offer a complete array of financial services. U.S. banks
are prevented by regulation from direct equity parti­
cipation in the ownership and management of real com­
mercial assets, which results in further limits on
growth rates and asset diversification levels that U.S.
banks can expect to achieve when compared with their
offshore rivals. The ability of certain offshore banks to
own corporate equities, as well as ownership of banks by
some large trading companies are cases in point. Con­
tinental’s London-based merchant bank, Continental
Illinois Limited, is involved in loan syndications, pri­
mary and secondary international bond markets, inter­
national real estate lending, foreign exchange trading,
money markets, trade finance, currency exchange
agreements, investments management, and corporate
financial consulting.
The trend toward "world class” financial services cor­
porations means that creation, marketing, and delivery
of the diverse corporate finance and international mer­
chant banking capabilities described above have be­
come a minimum requirement to ensure competitive
survival on a world scale.
For those who are prepared, the benefits to be gained
by aggressively facing the competitive challenges of
the future will be enormous; for those who remain un­
aware or backward-looking, the loss of position will be

“ For those w ho are prepared, the
benefits to be gained by aggres­
s iv e ly fa c in g th e c o m p e t itiv e
challenges of the future w ill be
eno rm o u s.”

Private placements may be taxable or tax-exempt in
nature and typically carry 15- to 30-year maturities.
Sophisticated leverage lease situations or off-balancesheet joint venture financing, as well as the more typi­
cal 15- to 20-year long-term senior note issue, often are
involved. Subordinated debt, preferred stock, warrants,
conversion features, and other instruments also are
readily negotiable in the private institutional funds
Corporate financial consulting has emerged as a
major service commodity sought by corporate financial

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


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Northwestern Banker, May, 1980

H is b an ker has to recogn ize the
big p o ten tial in a sm all busin ess.
Every successful bank has a few of them—
the very big, very loyal customers who
started small and stayed with the same
banker. Stayed because they got muchneeded help when they were big only in
It takes extraordinary vision and a
serious commitment to the community to
be the banker who gets in on the ground
floor. And its easier when your correspondent
bankers have the same kind of vision.
At American National, we started long­
term relationships with some of our best

33 N o r t h

and biggest customers by looking hard to
find the bright side. Were as hard-nosed as
the next guy about getting a sound deal,
with all the necessary information. But we
won’t back away from good companies just
because they’re small companies.
We spend almost all our time on
business banking. And we’ve got the
experience it takes to help you help a
small venture grow. Shake hands with
American National. The bank for business.

L a S a lle /L a S a lle a t W a ck er

6 o 6 g o / Ph on e

(312) 661-5000

W e’re th e b a n k tor bu sin ess.
Federal Reserve Bank of St. Louis


First Vice Pres.

Second Vice Pres.


89th Annual

Illinois Bankers
Association Convention
June 5-7
Stouffer’s Riverfront Towers
St. Louis, Mo.
Exec. Vice. Pres.

EGISTRANTS will be treated to an atmosphere of street fairs, festivals, riverboats and jazz bands at the 89th annual convention of the Illinois Bankers Associ­
ation to be held June 5-7 at Stouffer’s Riverfront Towers in St. Louis, Mo. In 1980 this
Carnival and 1904 World’s Fair city will be the IB A ’s starting point for the decade of
the 80s, following the convention theme—W orld’s Fair Style.
A distinquished group of experts in the areas of foreign and domestic policies, the
economy and agriculture will address Illinois bankers during the business sessions.
Among the keynoters and scheduled speaking times are:


Friday, June 6
9 a.m. — Frederick H. Schultz, vice chairman of the Federal Reserve Board.
10 a.m. — Walter W. Heller, Regent’s professor of economics at the University of
11 a.m. — Lee Gunderson, president-elect of the American Bankers Association and
president, Bank of Osceola, Wis.
Saturday, June 7
9 a.m. —Daniel G. Sisler, professor of agricultural economics at Cornell University.
10 a.m. —David Brinkley, co-anchorman of NBC television’s “ Nightly News.’ ’
11 a.m. —Henry A. Kissinger, former U.S. Secretary of State and currently a diplo-



Federal Reserve Bank of St. Louis


Northwestern Banker, May, 1980


Illinois News

Robert J. Mathias, assistant vice
president, and Jonathan K. Bitting,
bank representative.
Bank Equipment and Other Firms
Bank Building Corporation, St.
Louis: John Setear, Dick Engstrom,
Rick Alt and Phil St. Aubin, consult­
ant service managers.
Daktronics, Brookings, S.D.: Ed
W eninger, regional manager, and
Jack Bauer, district sales manager.


mat, negotiator, consultant and writer.
12 a.m. — Paul S. Nadler, professor of economics, Rutgers University.
Also a part of the regular convention program will be the IB A annual busi­
ness meeting and election of officers for 1980-81. President of the IBA, Gavin
W eir, chairman and president,
Chicago City Bank & Trust Co., is
scheduled to turn over his gavel to the
current first vice president, Jack D.
Lem m erm an, president, N ational
Bank of Monmouth. Also nominated
were: for first vice president, James
A. Fitch, president, South Chicago
Savings Bank; for second vice presi­
dent, Donald A. Lovett, chairman
and president, Dixon National Bank,
and for treasurer, Thomas M. Rochford, president, Bank of Illinois in

Y o u r W ill S e e T h e m a t th e 8 9 th A n n u a l
Illin o is B a n k e rs C o n v e n tio n J u n e 5 -7
HE following metropolitan bank­
ers and service and equipment
dealers have indicated that they will
be attending the Illinois Bankers
Association’s 89th annual convention
in St. Louis, June 5-7.


American National Bank: Michael
Tobin, chairman of the board; Keene
A d d in g ton , president; Ron Grayheck, senior executive vice president;
Howard Lovely, executive vice presi­
dent; Robert Sherman and Norman
Bobins, senior vice presidents; A1
Lauth, vice president; Richard Akin,
Benson Culver, Michael Jump and
George Stump, second vice presi­
dents; Michael Clawson, Robert Regnerus, Dennis Reher and Robert Rydin, correspondent banking officers.
B ancN orthw est: Frederick C.
Uhde, senior vice president.
Drovers National Bank: Sidney J.
T aylor, chairm an; Frank Bauder,
president; James J. Carmody, senior

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

W.M . Dalton and Associates, Inc.,
Newtown, Pa.: Monroe Abels.
Diebold, Inc., Canton, Ohio:
Robert Wroble, area manager.
Guardsman Life Insurance Com­
pany, West Des Moines: Mark Dillavou, director.
Illinois Bank Building Corporat­
ion, Olympia Fields, 111.: John K.
VanScheltema, president; Kelly Crofoot, executive vice president;
Richard Van Scheltem a and Ted
Kirby, vice presidents.
Mosler Safe Company, Hamilton,
Ohio: Barney Cross, sales represent­
Omaha Financial Life Insurance
Company, Bloomington, Minn.: lone
William, regional manager, and Bill
Wright, assistant sales manager..
Saint Louis Terminal Warehouse
Company, St. Louis: Robert Dolan,
vice president.

executive vice president; Robert F.
Scarborough and Company, Chi­
Corey, executive vice president and cago: Bob Marshman, Dick Benja­
cashier; John J. Crotty Jr., senior min and George Ballantine.
vice president; Max Roy, vice presi­
dent; Andy J. Ruments, assistant
vice president; Kathy Hardy, corre­ Senior Executive Changes
spondent banking officer.
At First Bank Evanston
National Boulevard Bank: Pete
DeRosier and George L. Dearborn,
vice presidents; Richard Schroeder,
executive vice president; Lou Avery,
assistant vice president, and Kay E.
Schlueter, correspondent banking

First N ational Bank and T rust
Company of Evanston has promoted
its two senior executives. Harland L.
Edwards was promoted to chairman
and chief executive officer. Howard
B. Silverman was promoted to presi­
dent and chief operating officer.
The two were also promoted to the
St. Louis
same positions in the bank’s parent
First National Bank: Clarence C. company, First Illinois Corporation.
Barksdale, chairm an; Richard F. They previously held positions of
Ford, president; T. Barton French president and executive vice presi­
and John Rowe, senior vice presi­ dent, respectively, in both the bank
dents; Mike Flier, vice president, and and the company.
Edward L. Campbell, assistant vice

Mercantile Trust Co.: Neal Farrell,
president; D aniel W . Jasper and
Jerald L. Fleschner, vice presidents;

Plans New Facility
The Bank of Pecatonica has an­
nounced that a new facility will be


we have more

By joining hands we can do a lot better for our
customers and ourselves.
National Boulevard can help augment
your banking operations, expanding the scope
of existing services and implementing new
ones for your respondent customers,
Our “One-On-One” correspondent bank­
ing professional works closely with his coun­

terpart at your bank. His job: to coordinate
financial resources, facilities and capabilities
for maximum benefit.
At National Boulevard there’s only one
way— the One-On-One way—for us to work
together. And when we do, we make a combi­
nation that’s practically irresistible— and
highly profitable.


The bank for the New Downtown
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


Illinois News

built in downtown Pecatonica this
year, according to L. E. McKee, pres­
ident. Groundbreaking ceremonies
were held in late March and complet­
ion is planned for mid-winter 1980.

Promoted at Batavia Bank
Robert J. Madjak, president of the
First National Bank of Batavia, has
announced that Marion L. Betz, a
staff member for the last nine years,
was promoted to assistant auditor at
the bank’s recent annual meeting. All
other officers were re-appointed at
the annual meeting.

Rockford Bank Announces
Promotions, New Director
Richard T. Coyne, president of
Colonial Bank of Rockford, has an-



nounced two prom otions and the
election of a new director.
Mary C. Ywanauskas, formerly an

assistant cashier, has been promoted
to assistant vice president with con­
sumer lending responsibilities. She
has been with the bank since 1970.
Phyllis J. Huber has been elected
auditor. She has been with the bank
since 1964 and was formerly assistant
cashier responsible for various oper­
ations functions.
Joseph C astrogiovanni Jr. has
been elected to the board of directors.
He is treasurer of Hilander Foods,
Inc., a local grocery chain operating
three stores in Rockford.

Joseph J. Schuessler, chairman
and chief executive officer of the First
National Bank of Cicero, has an­
nounced the election of five new
directors to the board.
Elected were John J. G leason,
president, Gleason & A ssocia tes,
River Forest; Walter Daniels of Park
R idge, president, W alter Daniels
Construction Co., Inc.; River Forest
residents William T. Gatziolis, presi­
dent of ThosJ. Gatziolis & Co., Inc.;
John T. Flynn, a securities broker on
the Chicago Board of Trade, and
James A. Maddock, president, Maddock Mechanical Industries, Inc.
Mr. Schuessler also announced the
appointment of E. Rachel Brooks as

* * *

HE chairman of Exchange Na­
tional Bank of Chicago, Ira J.
Kaufman, has announced a change in
title for Homer J. Holland, deputy
Mr. Holland now will have the title
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Palatine National Awards
Car in Bank Drawing

First National of Cicero
Names Directors, Officers

of president of the bank, and will con­
tinue as chief operating officer report­
ing directly to Mr. Kaufman. The
title of deputy chairman no longer
will be used.
The change in title followed the
resignation of Philip M. Lewin who,
as president of Exchange, was also its
chief lending officer, reporting direct­
ly to Mr. Holland.


personnel officer and Emil G. Larsen
Jr. as assistant cashier, teller

George B. Vogt has been elected
assistant vice president at The MidCity Bank of Chicago, according to
Kenneth A. Skopec, president.
Mr. Vogt, who heads the data pro­
cessing department, has been with
the bank since 1971. He was promot­
ed to data processing officer and
manager of the data processing de­
partment in 1978.
* * *
Charles S. Kim has been named
auditor at Capitol Bank of Chicago,

A PALATINE couple, Mr. and Mrs. Jerome
T. Sladek, are winners of a 1980 Buick Skyhaw k a u to m o b ile . T h e ir re g is tra tio n
coupon was drawn from over 38,000 entries
m ade in c o n n e c tio n w ith the P a la tin e
National Bank’s recent grand opening of a
new fa cility at Plum Grove Road and Euclid
Avenue. Accepting keys to his new car is
Mr. Sladek, left, from Willis A. Giassgow,
pres., and Patricia Parsons, fa cility mgr.

according to Gil Mazzolin, chairman.
Mr. Kim is a native of Korea and
graduated from Yonsei University in
Seoul with a BS degree in chemistry
and advanced mathematics.
He has lived in the United States
since 1972. Prior to joining Capitol
Bank he held various positions in
lending and personal banking at
Chicago area financial institutions.
* * *
At a recent shareholders meeting
at Merchandise National Bank of
Chicago, all present directors were re­
elected. Two new directors were also
elected, Eugene R. Mecklenburg and
W. Thomas Poyer.
Mr. Mecklenburg has been with
Avon Products for more than 25
years and is the general manager—
branch of its Morton Grove/Glenview facilities.
Mr. Poyer, vice president and gen­
eral manager of Marshall Field’s con­
tract division, joined Field’s in 1948.





Thanks, Correspondents,
for helping us grow into a
billion dollar bank.
A billion dollars in resources at the end
of 1979 is a milestone in a history marked
by continuous growth. We are grateful to
our correspondent banks who helped make
it possible.
Our recent affiliation with Algemene
Bank Nederland N.V., one of the largest
banks in the free world, will allow us to
provide you with expanded capability,
particularly in the area of international
Our pledge for the
future is to continu­
ally improve and
update the corre­
spondent products
that we offer, while
at no time sacri­
ficing personal
service of the
highest quality
to your bank.


LaSalle National Bank
135 South LaSalle Street • Chicago, Illinois 60690
Federal Reserve Bank of St. Louis

Correspondent Bank Division
Hal Sauer (312)443-2754
Dick Brown (312)443-2752
Northwestern Banker, May, 1980


Illinois News

LEFT— Guy Weir, pres, of IBA and pres., Chicago City B&T; Don Whitler, new pres, of Gp. 6 and exec, v.p., Citizens Nat’l., Toluca, and
Jim Fitch, 2nd v.p. of IBA and pres., South Chicago Savings. RIGHT— Gp. 6 Officers (from left) elected at Peoria: Pres. — Donald L.
Whitler, exec, v.p., Citizens Nat’l., Toluca; Vice Pres. — Donald R. Thomas, pres., Farmers State, Lewistown, and Secy.-Treas.—Wm. F.
Heinhorst, pres., Peoples State, Manito.

Structure Survey Reviewed by 10 Groups
N IN-DEPTH review of the re­
cent survey conducted by the
Illinois Bankers A ssocia tion was
given at each of the meetings held by
the 10 groups of the IBA in March. It
was pointed out in the report given by
IBA President Guy Weir and 1st Vice
President Jack Lemmerman that
728, or 71.5%, of the IBA member­
ship responded to the survey asking
opinions about Illinois bank struc­
A m on g the respondents, 547
opposed a change that would permit
branch banking, while 177 favored
some form of branching, for a vote of
75.5% yes and 24.5% no.
Another majority vote was cast
against any legislation authorizing
m ulti-bank holding com panies in


Illinois. The vote was 498 against
(68.4%) and 225 in favor (30.9%) of
some kind of legislation. The re­
spondents to the survey further re­
jected full-service banking at the
currently two authorized detached
facilities by 476-222.
Good weather accounted for an ex­
cellent turnout at each of the groups,
with an average of 50 banks at each
business m eeting and a total of
250-300 persons at each evening ban­
During their business sessions,
members approved a slate for nomi­
nation at the annual IBA convention
June 5-7 in St. Louis. Nominees are;
President—Jack D. Lemmerman,
president, National Bank of Mon­
First Vice President—James A.
F itch, president, South Chicago
Savings Bank.

Second Vice President—Donald R.
L ovett, chairman and president,
Dixon National Bank, Dixon.
Treasurer—Thomas M. Rochford,
president, Bank of Illinois in Cham­
Mr. Lemmerman would succeed
Guy Weir, chairman and president,
Chicago City Bank and Trust C o., as
IBA president.
G ro u p 1 : president— C. Paul Johnson, Colo­

nial Bank & Trust Co., Chicago; senior vice
pres.— Joseph J. Olivieri, East Side Bank &
Trust Co., Chicago; vice pres.— Robert C.
Gallagher, Commercial N ational Bank,
Chicago; treas. — Kenneth J. Ozinga, Clearing
Bank, Chicago, and secy.— Bette B. Daniels,
Am erican National Bank & Trust C o .,
G r o u p 2 : president — Fred W . T ib betts,
Peotone Bank & Trust C o .; vice p r e s .—
Charles Waterman, South Holland Trust &
Savings Bank, and secy.-treas.— Neil Bach,
Bank of Pontiac.
G ro u p 3 : president— Loren D. Storey, Zion
State Bank & Trust Co.; vice pres.— LeRoy

LEFT— Phil Simmons, inv. off., and Bob Sherman, sr. v.p., both with American Nat’l., Chicago; Mary Rinzel, exec, v.p., Sheridan Bank,
Peoria, and Jon Timmons, a.v.p., First Nat’l., Tremont. RIGHT— Bob Peele, v.p., Financial Insurance Services, Morris; Pete DeRosier,
v.p., Nat’l. Boulevard Bank, Chicago, and Jack W. Impey, sr. v.p., Fin. Ins. Serv., Schaumburg.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Illinois News


LEFT—Joe Gummerson, sr. v.p., 1st Nat’l., Peoria; Howard Walker, pres., First Nat’l., Metamora, and Mike Flier, v.p., First Nat’l., St.
Louis, Mo. RIGHT— John Crotty, sr. v.p., and Andy Ruments, a.v.p., both with Drovers Bank of Chicago, and Gordon Brown, pres., State
Bank of Havana.
M a tt is o n , K a n e C o u n ty B a n k & T r u s t C o .,
E lb u m , and s e c y .-t r e a s .— Joh n J . R iord an ,
C o u n try sid e B a n k , M t . P ro spect.
Group 4: p re sid e n t— R ichard P ette n ge r,
C ity N a tio n a l B a n k & T r u s t C o ., D ix o n ; vice
p r e s .— J a y V a n P a e m e l, C o lo n a A v e . S ta te
B a n k , E a s t M o lin e , and s e c y .-t r e a s .— J . Peter
J e ffrey , Illin ois N a tio n a l B a n k & T r u s t C o .,
R o c k fo rd .

Group 5: p re sid e n t— L arry J . H e rron , S ta te
B a n k o f V ird e n ; vice pres. — E u g e n e S e y b o ld ,
N o rth A d a m s S ta te B a n k , U r sa , and s e c y .trea s. — R ob ert C . C h ip m a n , F arm ers S ta te

B a n k & T ru s t C o ., J a ck son v ille.
Group 6: p re s id e n t— D o n ald L . W h itle r ,
C itizen s N a tio n a l B a n k , T o lu ca ; vice p r e s .—

G a rry G . G a rlish , B a n k o f C h en oa , and s e c y .trea s. — R an d a ll A . K illeb rew , F irs t N a tio n a l
B a n k , P etersb u rg.

D o n a ld R . T h o m a s , F arm ers S ta te B a n k ,
L e w is to w n , an d s e c y .- t r e a s .— W illia m F .
H e in h o rst, P eoples S ta te B a n k , M a n ito .
Group 7: p re s id e n t— T . R . M c D o w e ll, Sidell
S ta te B a n k ; vice p r e s .— D a v id L . M u s g r a v e ,
F irst N a tio n a l B a n k , R o b in so n , and s e c y .t r e a s .— O t to T h o m a s , F irst N a tio n a l B a n k ,
D a n v ille.

Group 9: p re s id e n t— D a ri B o llm a n , F irst
N a tio n al B a n k , S te ele ville; vice p r e s .— J im
S w e n e y , S ta te B a n k o f C ollin sville, and s e c y .-

Group 8: p r e s i d e n t — D a v i d W . C o m b s ,
F irst N a tio n a l B a n k , T a y lo rv ille ; vice p r e s .—

t r e a s .— D a v id V o g t , F irst N a tio n a l B a n k ,
C o lu m b ia.
Group 10: p r e s i d e n t — G i l b e r t C o le m a n ,
S ecu rity B a n k & T ru s t C o ., M t . V ern on ; vice
p res. — G erald K . F eezor, P eoples B a n k of
M a rio n , and s e c y .- t r e a s .— M ich a e l T ra ve lste a d , D u Q uoin S ta te B a n k .

Marge Hinners was promoted to
assistant manager, systems and pro­
gramming. She joined the bank as a
teller in 1963 and has worked in var­
ious areas, including programmer at
since 1977, starting in Central Infor­ the computer center.
mation Services, the computer divi­
Joanne Gore was named assistant
sion of the bank, and later worked as manager, proof control. She joined
a teller.
the bank in 1971 as a teller and later
Mary Gray was named secretary to worked in the proof department as
the vice president and cashier. She proof supervisor.
joined the bank in 1977 as a teller and
Tom White was promoted to as­
most recently worked in the customer sistant manager of computer operat­
service area.
ions. He joined the bank in 1974 in the
Promotions were also announced computer division as a programmer
by Joseph P. Ternavan, vice presi­ and has worked in various areas of
dent, computer services division.
computer services.

Roselle S tate Bank & Trust Co.
Tells Prom otion of S taff M em bers
R oselle State Bank and Trust
Com pany recently announced the
promotion of six employes.
Ana Osadzinski was named assist­
ant manager of the Roselle banking
facility. She joined the bank as a
teller in 1978 and prior to her latest
promotion was secretary to the vice
president and cashier.
Pauline Hill was prom oted to
assistant supervisor, teller operat­
ions. She has been with the bank

PROMOTED recently at the Roselle State Bank & Trust Co. were, from left: Pauline Hill, Ana Osadzinski, Mary Gray, Joanne Gore, Tom
White and Marge Hinners.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Loons on the lake.
W alleyes on a stringer.
Iron from the earth, and crops. Big crops.
And at the heart, business thrives.
M innesota bankers keep it strong and steady.
W e salute you.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


F irs t B ank
M inneapolis
We’ll be there.
First National Bank of Minneapolis,
120 South Sixth Street,
Minneapolis, Minn. 55480
Phone: 612 /370-4167
Member FDIC



J . T. G ow an, p re s ., S t. Paul
T. L. J e ffe rs , exec, v .p ., M inneapolis

Joins Worthington Bank
Ron Barnett, formerly instalment
loan officer at First Bank Willmar,
has accepted a
prom otion and
transfer to First
Bank Worthing­
ton where he will
serve as manager
of the tim epay
Mr. B a r n e tt
joined First Bank
Willmar in 1977
as a management
associate and was named an officer in
1978. He has a BA degree from the
University of Minnesota.

Bill Lifts Usury on
Contracts For Deed


Commissioner of Banks Michael J.
Pint recently announced that G ov­
ernor Quie has signed a bill which
would lift the 8 % usury limitation on
contracts for deed. The bill is effect­
ive May 1, 1980.
Under the new law the maximum
legal interest rate on contracts for
deed, if less than $100,000, will be the
same as that set monthly for convent­
ional mortgage loans.
The C om m issioner noted other
changes were made which are design­
ed to protect the buyer’s rights and
equity. These changes included more
liberal redemption rights and clear,
understandable notice in the event of
termination proceedings.
Also, courts can order a suspension
of the termination proceedings to
permit an acceptable defense by the
buyer. In the event a contract is
found to be “ usurious” a court may
award up to five times any interest
overcharge plus attorneys’ fees.

Changes Told at Chaska Bank
First National Bank of Chaska has
announced two changes in the official
Federal Reserve Bank of St. Louis

Ronald E. Jackelen has been ap­
pointed operations officer. He comes
to Chaska from the First Bank of
Minneapolis. Previously he was em­
ployed by First Computer Corporat­
ion, the data processing subsidiary of
First Bank System, Inc. He has a
bachelors degree in business admin­
istration from the U niversity of
Joann E. Olson has been promoted
to assistant cashier, and continues as
head of the bookkeeping department.
She began her banking career at the
Federal Reserve Bank of Minneapolis
and worked at the Wayzata Bank and
Trust Co. before coming to Chaska in
1975. She was appointed supervisor
of the bookkeeping department in

Sponsored by the MBA Agricul­
tural Rural Development Committee,
each session addressed the Minnesota
credit environment, commodity out­
look, liquidity and loan administra­
tion challenges of the 1980s. Speakers
also discussed compliance examin­
ations and pricing farm loans.
W orkshop sp e a k e rs included
W ayne B e r th ia u m e , M innesota
Bankers Association; Ronald John­
son, First National Bank, Jackson;
Richard H aw kins, U niversity of
Minnesota, St. Paul; Clinton Kurtz,
Citizens State Bank, Norwood; Leslie
Peterson, Farmers State Bank, Trimont, and Robert Worchester, Fed­
eral Reserve Bank, Minneapolis.
A ddition al speakers from the
Farmers Home Administration, Fed­
eral Deposit Insurance Corporation,
Family Farm Security Program and
the Agricultural Stabilization and
Conservation Service join ed the
workshops at various locations.

Officer Elected at Edina

H. J. Wogsland, president of First
Bank Edina, has announced the electtion of Cathy Berdahl to assistant
operations officer.
Ms. Berdahl joined the bank in
1967 as a teller and has served as
MBA Hosts Ag Workshops
supervisor of the bookkeeping and
Over 400 bankers attended three proof department. She was named
Minnesota Bankers Association A g ­ supervisor of internal con trols in
ricultural Workshops in March.

Dodge Center Bank To Have N ew Q uarters

THE NEW FACILITY for the Northwestern State Bank of Dodge Center is expected to be
completed in September.

is well under­
way on a new 13,000 square foot
facility for the Northwestern State
Bank of Dodge Center at the corner of
Second Street and First Avenue S. W.
in Dodge Center, according to Lowell
Grasdalen, president.
The main floor will feature five
office areas, a conference room, two
waiting areas, record vault, cash and
safe deposit vault, six teller windows


o n s t r u c t io n

and a private office area for the
Northwestern Insurance Agency.
The basement will include a con­
ference room, board room, lounge and
bookkeeping area.
There will be a three-lane auto bank
on the north side of the building. In
the east entry will be a night deposit­
ory and walk-up teller. Wood and
brick will make up the exterior of the
colonial style building. Completion is
scheduled for this September.
Northwestern Banker, May, 1980


&M Savings Bank of Minneapo­
lis has announced the formation
of F&M Mortgage Corporation, a
residential and incom e m ortgage
banking service corporation subsid­
Miles C. Babcock, senior vice
president of F&M, has been elected
president of F&M Mortgage Corpor­
ation by the subsidiary’s board of
directors. According to Mr. Babcock,
the mortgage banking subsidiary’s
main functions will encompass the
origination, sale and servicing of
loans for residential and commercial
In detailing the formation of the
subsidiary, Mr. Babcock also an­
nounced the election of three vice
presidents. Carl E. Carlson has join-




ed the mortgage corporation to head
incom e m ortgage production and
sales. He previously was with Metro­
politan Life Insurance C o., ID S
Mortgage Corp. and, most recently,
FBS Financial, Inc.
Roger C. Eckmann will head resi­
dential production and branches and
Frederick P. Phillips will head home
mortgage banking and administra-


Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

tion. Both had been officers of F&M
Savings Bank.
The board of trustees of F&M
Savings Bank has named Katherine
A. Rolland vice
president, Robert
N. Berg m ort­
gage officer, and
Barbara L. Gra­
ham banking of­
M s. R o lla n d
joined the bank
in 1965, was
named an invest­
ment officer in
K' A' R0*-LAND
1976, elected an assistant vice presi­
dent and named manager of securities
investment in 1979.
Mr. Berg has been with F&M’s



mortgage operation since 1955. He
had been a supervisor of residential
appraisal since 1978 and is being
named manager of mortgage servic­
ing and collections.
Ms. Graham joined F&M in 1974.
She had been a corporate sales repre­
sentative since 1978.
* * *
T. H. Bartholomay, president, has
announced the election of an operat­
ions officer and new board member at
the First Minnehaha National Bank,
Bruce C. Winslow has been elected
operations officer. He began his
banking career in 1974 at the First
Bank Robbinsdale where he gained
experience in personal banking, com­
mercial lending and operations.

James R. Hartzell has been elected
to the board of directors at First Bank
Minnehaha. He is president of the
Hartzell Corporation.
* * *

William B. Faulkner has been
elected to the board of directors of the
Eastern Heights State Bank of St.
Paul. He is a vice president and
assistant to the president o f the
American Hoist and Derrick Com­



* * *

Reginald F. Kroskin, vice presi­
dent-commercial lending division C
of M idland N a­
tional Bank of
M inneapolis, a
graduate of the
American Bank­
ers A ssocia tion
N ational C o m ­
mercial Lending
Graduate School,
was awarded his
Certified C o m ­
mercial Lender
certificate at a special ceremony at
the A B A ’s National Credit Confer­ r
ence in Atlanta.
National City Bank of Minneapolis
has announced the appointment of
James D. Wannigman, accord­
ing to C. Bernard
Jacobs, chair­
man and chief
executive officer.
Mr. Wannigman
has been named
an assistant vice
president in the
commercial loan
d e p a r t m e n t ’ s J- D-W ANNIGM AN
group E which is responsible for exec­
utive and professional relationships.
He has been in banking since 1968


Asset Power.

G et m ore m ileage out of each dollar.

Your clients’ assets can secure a tailor-made
revolving credit line. Accounts receivable,
inventories, machinery, equipment, land and build­
ings can be turned into Asset Money™ It’s the
smoothest route for companies short on working
capital, those looking toward expansion or growing
firms eager to increase sales. Or money for
buy-outs, mergers and acquisitions.
Bank participations.
Banco Financial Corporation can help get your
clients off to a great future with Asset Money.
Contact Clarence Adams, Lee Mork, Robert Olson,
or Paul Weingart, (612) 372-7988, 830 Northwest­
ern Bank Building, Minneapolis, Minnesota 55402.

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



Affiliated with Northwest Bancorporation


An Affiliate of Northwest Bancorporation
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980

I don’t recall
the face
but th e suit
is familiar.
This m ay be the way you see
your C orrespondent Banker. But
at M arquette, we are more interested
in filling your needs, than filling
the pin-stripe, button down
banker im age. That’s why our
ads have featured our people as
they really a r e ... working bankers, in working situations,
working for you.
We don’t want to blend in
with all the other big city
bankers. We just want to stand
out by giving you the best
service possible.

See your Marquette banker’s familiar face at the conventions.
North Dakota — Bill Klein
South Dakota— Dick Holmes

A Marquette National Bank
777 M arquette Avenue M inneapolis, MN 55480

Your Complete Correspondent
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

M e m ber FDIC

Federal Reserve Bank of St. Louis


Minnesota News

and recently joined National City
Bank. He has a BA degree in eco­
nomics from St. Cloud State Univer­
sity and a certificate from North­
western University's National Grad­
uate Trust School.
* * *

and formerly was a trust operations
officer with Northwestern National
Bank of St. Paul.
* * *

Phillip G. Webb has been appoint­
ed a marketing officer and advertis­
Jerry Herman has joined Miller & ing manager-checking products for
Schroeder Municipals, Inc., as a reg­ First Bank System, Inc. He comes
from Fultz, LaCasse and Associates,
istered represen­
a Des Moines advertising agency,
tative for the
where he served as an account execu­
banking division
in the Minneapo­
A graduate of the University of
lis office. His job
Iowa, Mr. Webb has a bachelor’s de­
gree in business administration.
include in stitu ­
* * *
tional sales.
Most recently
Mr. Herman was
American National Bank & Trust
execu tive vice
St. Paul, has announced
president of the
Prairie State Bank in Eden Prairie the appointm ent o f Michael D.
and has held executive positions with Anderson as training director, a new
banks in Winona and Owatonna. He position at the bank.
Mr. Anderson was formerly execu­
graduated from Mankato State Uni­
versity and the Graduate School of tive development representative at
Target Stores. He has BS degrees in
Banking, University of Wisconsin.
secondary education and zoolog y
* * *
from the University of Minnesota.
Charles Ostrowski was appointed
Northwestern National Bank of
Minneapolis has announced the ap­ director of internal audit. He is a
pointment of Robert I. Ryti Jr. to graduate of the University of Minne­
sota with a bachelors degree in busi­
trust operations officer.
He joined the Banco trust systems ness administration. Prior to joining
division of Northwestern in March Am erican he was associated with

First Bank Hopkins
Tells Management Changes
The board of First Bank Hopkins
has announced the following manage­
ment changes.
Sarah Hastad
has been named
assistant m an­
ager and person­
al banking officer
at the M inne­
tonka office. She
has been with
First Bank Sys­
tem since 1966
and was most re­
cently assistant auditor. Susan
Friedrichs has been named personal
banking officer at the Minnetonka .
office. She began as a management
trainee in 1978 and most recently was
credit department manager.
William C. Behrenbrinker has been
named commercial lending officer in
the com m ercial departm ent. He
began as a collector with First Bank
Hopkins and most recently was a
commercial banking representative.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Rodney Priebe has been named
consum er com plaint officer in
addition to his responsibilities as
financial planning officer. He joined

First Bank System as an auditing
Ernest Jensen, formerly director of
internal audit, was appointed credit i
review officer assigned to the operat­
ions group. He joined the bank in A
John McClurg was appointed tax
manager in the trust division. He is a **•'
graduate of the University of Minne­
sota with a BA degree in political sci­
ence and an LLB degree from the v
University of Minnesota Law School.
He was formerly employed by the
State of Minnesota in the inheritance
gift tax division.
* * *
Randolph L. Kohn has joined First ^
Bank Minneapolis as a vice president
in the asset man­
agement market­
ing division.
Mr. Kohn was
previously with
Kemper Insur­
ance and Finan­
cial Companies,
C hicago, where
he was director of
marketing in the
investm ent a d ­
visory division. A graduate of the
University of Missouri, he also has a
JD degree from the University of
Iowa College of Law.
the bank in 1978 as unit manager of
the sales finance department.
Terry M. Mitch has been named
auditor. She joined the bank in March
and was formerly a regional auditor
for First System Services, Inc.

New Associate at Dawson





Charles L. Kretchman, president
of the Northwestern State Bank of
Dawson, has an­
nounced the elec­
tion of Greg Kuglin as loan officer.
M r. K u g l i n
was form erly a
personal loan of­
ficer at the First
N orthwestern
Bank of Marsh­
all, dealing with
personal h o m e
mortgage and student loans, and also
has experience as a credit analyst. He
graduated from the University of
Minnesota, Morris, and replaces Ron
Prehn at the bank.

J. Thomas P. Wiklund, Correspondent Bank Officer (612) 291-5582

“I have two jobs ... yours and mine.
“ First Bank Saint Paul pays my salary, but I
work for you. M y jo b is to take problems o f f
your desk and return with solutions.
“ But there are no pat solutions to today’ s
com plex banking questions . . . they call for indepth analysis and fast response if you are to
remain competitive.
“ That’s where I can help. By drawing
upon the strength and experience o f First Bank
Saint Paul, I can help you get the answers you
need — fast.
“ But before I can begin my jo b , I have to
understand yours, and the problems y ou ’re
facing. I would like our Correspondents to feel as
though I work for their bank. Then, when we
make a recommendation, they’ ll know we have
Federal Reserve Bank of St. Louis

their best interests in mind.
“ The next time you have a banking problem
to solve, let’ s put our heads together, and com e
up with a solution.”

First Bank
Saint Paul
Correspondent Bank Division

We do our job.
You get the credit.
The First National Bank of Saint Paul • Member FDIC

A g fin a n c in g
at its in n o v a tiv e b est.

AgCo specializes in large short-term
agricultural loans — $250,000 to
$4,000,000 — which you can provide to
your best customers on a corre­
spondent basis.
Attractive Interest Rates and Readily
Available Funds.

AgCo’s customers benefit from inter­
est rates that are generally lower
than those of competitive lenders.
That's because AgCo funds its lending
activity through the sale of insured
Federal Reserve Bank of St. Louis

commercial paper. Its paper is rated
A-l, so AgCo’s cost of funds generally
is lower than sources of funds used
by other lenders. And AgCo passes
these cost savings on to its customers.


Ask your Omaha National represen­
tative for full details. Or call AgCo at
(402) 348-6546.

Expert A g Financing Guidance.

The same innovative, financial ex­
pertise that developed AgCo’s unique
approach to ag lending is available to
help AgCo customers determine the
combination of financing tools best
suited to their needs.
Federal Reserve Bank of St. Louis

AgCo / The Omaha National Banl^
Subsidiary of Omaha National Corporation

17th and Farnam — Omaha, Nebraska 68102
Member FDIC


Minnesota News

Promoted at West St. Paul

He was formerly with the Western
State Bank of Sioux Falls, S.D. His
responsibilities will be commercial
lending and the bank’s SBA bank
certification program.

West St. Paul State Bank Presi­
dent J. Robert Stassen has announc­
ed the promotion of two bank em­
ployes. Richard De Nardo has been
named an assistant vice president,
moving from his spot as assistant
cashier. Mel Krech has been promot-

Named VP at Long Lake



ed from instalment loan officer to the
assistant cashier position.
Mr. De Nardo joined West St. Paul
State in 1976 coming from a loan con­
sultant position with the New Brigh­
ton State Bank.
Mr. Krech came to West St. Paul
State in 1978 bringing seven years of
banking and loan-related experience
from First State Bank of Spring Lake
Park, Signal Hills Bank, West St.
Paul, and the St. Paul Postal Em­
ployes Credit Union.

Two Named at South St. Paul
R obert S. Branham, president,
N orthw estern N ational Bank of
South St. Paul, has announced the


Gregory T. Merz has been named
vice president and compliance officer
of the State Bank
of L on g Lake,
a c c o r d i n g to
R odger Bense,
Mr. Merz is a
graduate of St.
Johns University
receiving a BS
degree in 1972.
He had been as­
sociated with the
Federal Deposit Insurance Corporat­
ion as a bank examiner since 1973.

appointment of Robert J. Verkennes
to assistant vice president and the
addition of D avid Butterw ick as
manager of the Robert Street office.
Mr. Verkennes, formerly manager
of the Robert Street office, returns to
South St. Paul as assistant vice pres­
ident of commercial loans. He joined
the bank in 1973 as a management
trainee and is a graduate of the Uni­
versity of Minnesota.
Mr. Butterwick, a University of
South Dakota graduate, joined the
N orthw estern N ational Bank of
Sioux F alls as a management trainee
in 1977 and most recently was a per­ Joins NW Albert Lea Bank
sonal loan officer at the Colonial
Kenneth L. Kranz has been ap­
pointed assistant vice president in
the operations
and p e r s o n n e l
Joins St. Cloud Bank
area of the First
Michael R. Cleland has joined the N o r t h w e s t e r n
First American National Bank, St. National Bank of
Cloud, as a commercial loan officer, A lbert Lea, a c ­
according to A . D. Didier, president. cording to CarMr. Cleland graduated from Man­ roll C. Bergerson,
kato State College in 1974.
Mr. Kranz was
formerly an oper­
ations analyst for
Northwest Bancorporation and prev­
iously served in the mortgage depart­
ment of the Farmers & Mechanics
Bank of Minneapolis. He has a BS
degree in business adm inistration
from Northern State College, Aber­
deen, S.D.

Named AVP at Mora Bank

Call the hotline number for the
latest Money Market News and
offerings of municipals,
governments, agencies,
secondary market loans,
negotiable certificates
of deposit and other
short term investments.


These fixed income securities are
available with maturities from one
day to 30 years.

Saint Paul

A Full Service Bank

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

6 1 2 -2 9 1 -5 6 59
Investm ent Services Group
First National Bank
of Saint Paul
St. Paul, M innesota
Mem ber FDIC

At a recent board meeting of the
K anabec State
Bank, Mora, A l­
ma Hemness was
promoted to as­
sistant vice pres­
ident. Mrs. Hem­
ness join ed the
bank in 1974 as a
teller. In 1976
she was promot­
ed to loan assist­
ant and in 1978
became a loan officer.

Midland Correspondent team. Not only can you
call them anytime you need some fast answers,
you can call them toll free. THE NUMBER IS
1-800-752-4200 IN MINNESOTA* The names
are Stan Peterson, Marge Lamosse, Mike
Bodeen and Jackie Dunn. They represent the
strength and service of a substantial financial
institution. But, more importantly they represent
the team spirit it takes to give your bank the
best our bank has to offer
*In North Dakota and South Dakota, call 1-800-328-8678.

L to R: Stan Peterson, Mike Bodeen, Jackie Dunn Marge Lamosse,

Midland national
401 Second Ave. S ./S treet Level, Gov’t Center/MemberED.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


The Ring-Necked Pheasant, state bird of South Dakota. This year the state bankers’
convention will be held in Rapid City from May 11-13. Peter Gillette, Larry Buegler,
Don Pederson, Dick Storlie, John Thomson, Steve
^ M n n T U iA ic o T c n iu
Thompson, and Ted Taney hope to see you there.
We’re on yoursjde,
This o rig in a l p a in tin g is b y n a tio n a lly-kn o w n w ild life a rtis t Lo u is R aym er.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Of Minneapolis

Member FDIC


88th Annual

South Dakota Bankers
Association Convention

May 11-13
Rushmore Plaza Civic Center
Rapid City
66 I I NITY: The Key to the 80s” will be the theme carried out at the 88th
w annual convention of the South Dakota Bankers Association May 1113 at the Rushmore Civic Center in Rapid City.
Featured events will include the Fellowship Breakfast, recognition of the
Graduate School of Banking-Madison graduates, golf, tennis and bowling
events, exhibits, the 14th annual reception hosted by associate members and a
Rapid Area tour including the South Dakota School of Mines and Technology,
Black Hills Gold Creations, Dahl Fine Arts Center and Alex Johnson Hotel.
This year’s “ Show Time” Tuesday evening will feature “ The Spurrlows”
show, a delightful youth group. Business sessions will include the annual
SDBA meeting and several noted speakers. The program follows:




Sunday, May 11


Federal Reserve Bank of St. Louis

4:00 Registration desk opens, Howard Johnson’s Motor Lodge.
Golf, tennis, bowling and tour information available.
10:00 Registration desk closes.
Monday, May 12
AM .
7:00 Men’s golf, shotgun start, Arrowhead Coutry Club.
8:00 Registration desk opens, Howard Johnson’s Motor Lodge.
9:00 Ladies’ golf, Elks Club.
Tennis tournaments, Howard Johnson’s Motor Lodge.
Rapid Area Tour.
Noon Registration desk closes, Howard Johnson’s Motor Lodge.
1:00 Registration desk opens, Rushmore Plaza Civic Center.
2:00 Bowling tournament, Meadowood Lanes.
3:00 Exhibit Hall opens, Rushmore Plaza Civic Center.
6:00 Joint Social Hour, Rushmore Plaza Civic Center.
8:00 Exhibit Hall and registration desk close.
Northwestern Banker, May, 1980


South Dakota News

Tuesday, May 13




7:30 Fellowship Breakfast, Howard Johnson’s Motor Lodge. Speaker: Dr.
Harry E. Olson, Executive Program Center, Excelsior, Minn. —“ Do
Something For a Change.’ ’
8:00 Registration desk and Exhibit Hall open, Rushmore Plaza Civic Center.
9:00 General Session opens.
Keynote speaker Admiral Elmo Zumwalt, former Chief of Naval
Operations—“ Strategic Arms Limitations.”
Dr. William Freund, senior vice president and chief economist, New
York Stock Exchange—“ What Lies Ahead for American Business.”
Lee Gunderson, president-elect of the American Bankers Association
and president, Bank of Osceola, Wis.
11:30 Ladies Luncheon, Howard Johnson’s Motor Lodge.
Noon Men’s Luncheon, Rushmore Plaza Civic Center. Speaker: Art Holst,
former National Football League official—“ Football and Free Enter­

You W ill See Them at the 88th Annual
S .D . Bankers A ssociation C onvention
HE following metropolitan bank­
ers and service equipm ent
dealers have indicated that they will
be attending the South D akota
Bankers Association’s 88th annual
convention in Rapid City, May 11-13.
First National Bank: Jerome R.
Wagner, loan officer.
First National Bank: Mark Za
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis




2:00 General Session continues.
Dr. Joyce Brothers, columnist, psychologist and author—“ Unlocking
Your Mental Powers.”
Dr. Leonard Berry, professor of commerce, University of Virginia—
“ Are You Ready for the New Consumer?”
4:00 ABA Member meeting, Associate Member meeting.
6:00 President’s Reception, Rushmore Plaza Civic Center.
7:00 Registration desk closes.
Annual Banquet.
8:00 Show Time—“ The Spurrlows.”
9:30 All Convention Dance, Convention Center.




back, correspondent officer.

H olm es, Bill A d d in gton and Jim
Midland National Bank: Stanley J.
Peterson, vice president-correspond­
entbanking, and Michael E. Bodeen,
assistant vice president-correspond­
ent banking.

Northwestern National Bank: E.
Peter Gillette Jr., president; Larry
First Bank-Minneapolis: Robert J. D. Buegler and Donald G. Pederson,
Anderson, executive vice president; senior vice presidents; Richard C.
Lee C. Hamilton and Kenneth A. Storlie, vice president; John L.
Wales, vice presidents; Roger Raina Thomson, assistant vice president;
and Dan G. Simkins, assistant vice Steve Thompson, correspondent
presidents; Edward L. Whelan, bond banking officer; Ted Taney, bond
investm ent officer, and B everly sales representative.
Kieffer, correspondent banking rep­

Marquette National Bank: Dick

First National Bank: J. W m .

Independent banks

face someveryreal threats
Buttheydon’t haveto facethemalone.
As an independent banker,
you are facing some enormous
challenges and changes.
An important part of our
role as your correspondent part­
ner is to give you the support you
need to meet those challenges. So
you can compete and survive in
a world of giant banking groups.
For over 30 years, we've
been helping independent

community bankers by providing
a full range of correspondent ser­
vices. We will continue to provide
and improve those services in
the future.
That's important. But even
more important, is the respect
and support we can give to you,
the independent banker. So you
will not only survive the 80's —
you will prosper.

Am erican
National Bank
and Trust
Com pany
Correspondent Division
5th & Minnesota Streets
St. Paul, Minnesota 55101

The Independent Bank’s C orrespondent Partner.

•LL,nit '“ 1

Federal Reserve Bank of St. Louis


Ì muK L

JdJi' unülJ
j i m i w w n a t io n

lf © r RSOVtATWr«


South Dakota News

Serving the Black Hills

Henry, vice president-marketing.


The Omaha National Bank: Richard J. Yeshnowski, vice president,
Tish Selk and Linda Heuer.


U nited States N ational Bank: >
Larry H. Hansen, vice president, and
Myron H. Peterson, correspondent
banking officer.
St. Paul

Area Since 1878

American National Bank: Robert
W. Jacobson, vice president, and
William J. Carlson, bond investment


First National Bank: James T.
Gowan, vice president; Donald R.
Lindeman and Bruce Hebei, assistand vice presidents.
Sioux City
First National Bank: Richard C.
Taylor, president; Charles H. Wal- v
cott, executive vice president; Gary
W. Stevenson, vice president, and
Doug Schmidt, correspondent bank- *
ing officer.
N orthw estern N ational Bank:
Gerald Just, vice president; Tom ~
Pohlm an, correspondent banking

Welcome to the Black Hills
for the
88th Annual Convention
of the

S ecurity N ational Bank: Gene
Hagen, president; Jim Hongslo, vice
president; Wayne Johnson, senior
correspondent banking officer; Ken
Roeder, correspondent banking offi­
Toy National Bank: Rich Breyfogle and Stan Fredericks, vice presi­
Bank B uilding C orporation, St.
Louis: John Ladner and Steve Kraaz,
consultant services manager.


B randt, In c., Omaha: Herb
Duysen and Dave Grimes, sales rep- v

South Dakota Bankers Assn.

Chiles, H eider & Com pany,
Omaha: Jeffrey R. Moran.


Daktronics, Inc., Brookings: E . H . ^
“ Bud” Weisser, district sales man­

First national bank
of the Black H ills
Rapid City Mam Office - Mountain View/ Branch - North Branch - Robbinsdale Branch
Belle Fourche - Deadwood - Hot Springs - Lead - Newell - Spearfish - Sturgis - Villa Ranchaero

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

An A ffiliate of N orthw est Bancorporation




D aw son Hail Insurance C o.,
Fargo: James Dawson, Lyle Askerooth and Dennis Christofferson.


ITT Life Insurance Corporation,
Minneapolis: Elmer Diedtrick.


Mosler Safe Company, Hamilton,
Ohio: Larry Odegard, sales repre­


I | | | ^ | a|
llly » U

United States Check Book Com­
pany, Omaha: Ed Batchelder, sales
manager, and Wayne Kincaid.

South Dakota News


PRESIDING were Robert Hawley of B ristol, officer of First N .B., Aberdeen, and Russell Stone, chmn., ag comm, and v.p., First Bk.,
Gettysburg. CENTER—Clint Roberts, secy, of ag for S. Dak. RIGHT— U.S. Sen. Geo. McGovern.

SD B A V iew s Ag O utlook
i i T HE decade of the ’80s will
■ offer the greatest challenges
and opportu nities agriculture has
ever seen. Unfortunately, this year
will not be one of those years.”
This is the com m ent made by
Topper Thorpe, general manager of
Cattle Fax, Denver, at the Annual
Agricultural Credit Conference held
by the South Dakota Bankers A sso­
ciation in Pierre last month.
Mr. Thorpe said that two primary
areas are affecting cattle prices this
year. One is the general economic
picture and the other is the large
supply and price of com petitive
meats. Currently, we are at a low
level in terms of cattle, but consump­
tion is down to 101 pounds per person
this year, compared to 130 pounds in
1976, accordin g to Mr. Thorpe.

People are becoming more prudent in
their buying practices and eating
cheaper cuts, Mr. Thorpe said. As a
result, cattle feeders have been losing
money since August, 1979.
Looking ahead, Mr. Thorpe said
prices for fed cattle will be in the high
sixties in May and June and drift
lower by fall. He indicated that cattle
feeders will be tough to do business
with in the fall because they can’t
continue to lose money and they will
feel that they have to buy feeders at a
more favorable price. He concluded
by saying that ‘ ‘ the big ball game
hasn’t changed —but the rules have
changed, m aking it necessary for
feeders to become more efficient.
The outlook for hogs was presented
by Harold Heinold, chief executive
officer of Heinold Commodities, and

his com m ents are published in a
separate article in this issue.
Clint Roberts, secretary of agri­
culture in South Dakota, warned that
Congress is spending too much time
talking about financing agriculture
when it should be developing markets
for farm products. He suggested that
bankers in South Dakota join in an
attempt to finish more farm products
within the state. He gave as an ex­
ample the large number of feeder
cattle being exported with grain
following along. He indicated that
“ we are exportin g a m ulti-billion
dollar industry.”
Tom Smith, former ABA treasurer
and president, Fidelity Brenton Bank
& Trust, Marshalltown, stressed that
bankers should get back to basics. He
said bankers should understand
costs, identify profitability ratios,
use aggressive pricing, increase pro­
ductivity, and monitor loan port-

SPEAKER Tom Smith, pres., Fidelity Brenton Bk. & Tr., Marshalltown, and Dave Moore, v. chm n., ag. com m ., and pres., BankWest N.A.,
Vivian. RIGHT— Harold Heinold of Heinold Com m odities and Topper Thorpe of Cattle Fax, both key speakers.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


South Dakota News

folios. He added that bankers should
be the best financial advisors they
know how to be and to help farm
customers in every way possible with
their marketing plans.
U.S. Senator George McGovern
criticized the federal government’s
tight money policy, farm support
program and the Soviet grain em­

bargo in a luncheon speech.
“ I can’t recall any previous time
when I found problems that seemed
to be as insoluble and as deeply en­
trenched” facing farmers, the South
D akota D em ocrat told about 170
bankers in attendance.
‘‘The farmers and ranchers today
are more concerned with their eco­

nomic situation than they have been *
in a great many y e a rs ,” Senator
McGovern said.
Other speakers, as well as bankers >
chatting among themselves, echoed
that theme. They said the combin- *
ation of record high interest rates and
low farm prices are to blame for the
crisis that has hit farmers.
□ *

(Continued from page 18)

would have at 100% because he is
more efficient. If the market goes
down, or stays at $28, he is going to
live. So, think about my suggestion
as an alternative.

were on March 1 — farmers should be
prepared to hedge 50% of their hogs.
If your customer says he can’t make
much money at $44, remind him
again that we are in a survival period
and not a money-making period.
Looking ahead to August and
September, prices will be in the $36
to $39 range — and there may be a
short streak up to $41 or $42 — because some producers will be getting
tired of taking losses. Again hedging
one-half the crop would be advisable.
D uring O ctob er and N ovem ber
prices should be in the $37 to $39
range and some liquidation will be
taking place. If prices run up to $42 it
is again important to hedge one-half
of the crop. As liquidation continues
prices will change rapidly because
Americans are used to eating lots of

of the hog business so things will im­
prove.) Tell him to cut his production
by 15% and if his neighbor doesn’t
want to do likewise, let him go broke.
I’m not telling you to ask a man to get
out of the hog business. We all know
what happens when he gets out. The
price goes up and he is left holding
the bag. You don’t make anything
and he doesn’t get back on his feet.
Ask him to cut back 15%. Now he can
personally watch those sows; now, he
can reduce death loss in his pig crop,
and get a little more feed conversion.
Let’s think about it this way. We
are not in a year to make money. We
are in a survival period. If the hog
market goes up your customer will
make almost as much with 85% as he

Price Outlook
Let’s stick our neck out at prices
ahead. Right now there are too many
hogs with from 11% to 14% more
than last year through May. I’m not
going to say we are going to stay at
$28 because I think we overreacted.
The month of May will see prices in
the $32 to $36 area. In June and July
we should see prices in the $37 to $42
range. If prices during the summer
reach $39 to $42, we will be lucky.
Even so many farmers wTill still be
losing money due to hidden costs.
If by chance prices in the June and
July period get back to $44 — as they

ü tí








Banking on Seeing You in the Future

South Dakota Bankers C onvention
May 12-13


Rapid City

Rich Breyfogle


Stan Fredricks





Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

South Dakota News


concern for all our citizens. One must
recognize that the government is the
greatest offender and largest contri­
butor to inflation with a free spending
policy that permits the money supply
to grow at a rate four times that of
and extemely pessimistic with recent productivity as it did in the 70s.
There has been little reaction to
passage of the Depository In­
Agriculture is our #1 industry and
the picture is anything but rosy. stitutions Control A ct o f 1980
Hogs currently at a six-year low; corn (HR4986) to this time. No doubt this
at 1947 levels; cattle depressed and is because the bill is massive in scope
falling, while production costs have with far-reaching effects, all of which
rocketed annually. Fertilizer, fuel, are not predictable.
Legislatively 1979 was a landmark
repair and interest costs are up onethird to double last y ea r’ s cost. year in South Dakota because of two
Couple that with the effects of embar- rather unusual pieces of legislation.
gos on markets and poor transport­ The first being a bill eliminating fi­
ation and this depression is well- nancial institutions from usury laws.
The interest limit in South Dakota
The farmer feels he shouldn’t be had been 10%. In 1978 the SDBA in­
planting with costs so inflated. But troduced a bill to increase this limit to
being a realist he knows he can’t 1 2% . It was passed and becam e
afford to leave his acres fallow either. effective on July 1, 1979.
By early fall that limitation was
He will cut corners to reduce expenses
and make no capital improvements. already obsolete for all practical pur­
It is already evident that an poses and the association again
alternative—voluntary liquidation sought relief, this time suggesting
sales—are becoming very common removal of all barriers and letting the
again. This is reminiscent of the ’30s. market determine the rate. The leg­
Inflation, that regressive tax, is islators saw fit to agree with banker
still the big problem and cause for support and passed the measure with

S .D . Econom ic Picture N ot Rosy,
But Bankers Strive to A ttain G oals
S.D. Bankers Association
The First National Bank
HAT better words could de­
scribe the present situation
„ than these from
Charles Dickens:
“ It was the best
of times, it was
't h e w o r s t o f
4times; it was the
age of wisdom, it
* was the age of
foolishness . . . ”
A short time
* ago the promise
of some economic
"s ta b ilit y seemed bright. There
seemed little or no reason to expect
the dramatic change in the emotional
state of our people which has come
about so rapidly. Today our citizens
* are doubtful, depressed, frustrated


orthwestern’s World of Service

Tom Pohlm an

Of Sioux City
An A ffilia te of Nor th w est B o n c o rp o ra tio n

Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


South Dakota News

W re committed
to data services.
A t Security National, we’re
committed to giving you the
finest possible correspondent
f i p B ’ data processing services. That’s
because we’re more than just
another city hank.
We’re a country hank, too.
O ur Security Bankers understand
the special data processing needs
of ag-oriented hanks like yours.
' ;
Just one more way you get more
when you bank with Security.
Talk with our Security Bankers about data processing,
ag overlines, and complete investment services. You’ll find
they speak your language.
Whenever you think of corre^
spondent banking, think Security
National. We’re committed to

a total of only nine dissenting votes in
both bodies.
The second bill has attracted
interest nationally and received its
impetus from the office of the gover­
nor. Because of then current costs of
money, he had been contacted by
representatives of Citibank of New
York who wished to remove their
credit card operations from New York
to an environment more conducive to
a profitable operation. Several states
were in con ten tion , with South
Dakota rates being most favorable.
Meetings with the governor and his
representatives, Citibank men, Sioux
Falls bankers (whose city was the
logical site) and the association were
held. Subsequently a bill was introduced on the last day of the legislative session and was passed with
only three dissenting votes.
Citibank has made its application
to federal agencies for approval and is
looking at sites in Sioux Falls to
accommodate its credit card operat­
ions and possible 2,500 employes at
this time.
Solidarity in purpose and cooperat­
ion marked banking association
activities in South Dakota this past
year. This was demonstrated repeatedly by good attendance and active
participation in meetings, schools
and forums and concerted efforts to
accomplish determined goals.






SIO U X CITY, IO W A 51101

712/277-6670 MEMBER E D .I.C .

Officers Advanced, Elected at
First Nat’l. of Black Hills

Y our S e c u rity B a n k e rs
Steve Hatz, Wayne Johnson,
Wilma Weeks and Jim Hongslo,

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Eight bank officers were promoted
and one elected at the First National
B ank o f the
Black Hills, Rap­
id City, accord­
ing to Charles T.
U n d lin , p resi­
Promotions in­
cluded Kirk Dean
to vice president
and branch a d ­
m in is tr a to r at
the main office,
Myles Kennedy to vice president at
the main office, and Pete Cappa to
assistant vice president and manager
at the North branch in Rapid City.
Other promotions included Mike
Palmer to loan officer and assistant
manager at the Robbinsdale branch
in Rapid City, Eric Beals to agricultural loan officer at the Belle Fourche
branch, Rich Schlim gen to loan
officer and assistant manager at the
North branch, Taffy Bryan to loan





South Dakota News

' -A'

officer and assistant manager at the
- Deadwood branch, and Rick Brady to
loan officer and assistant manager at
r the Hot Springs branch.
The new bank officer elected is
„M a rk Joneson, agricultural loan
officer at the Hot Springs branch.
Mr. Dean, a St. Olaf College grad“* uate with a degree in history and eco­
nomics, joined the bank as a trainee
and later worked in the trust department. He was elected trust officer in
1975, commercial banking officer in
* 1976 and loan officer and assistant
manager at Robbinsdale in 1977. He
was manager of the North branch
when it opened in 1978.


NW National, Sioux Falls
Announces Appointments
P. “ Buck” Moore, president of
Northwestern National Bank, Sioux
Falls, has announced the following
promotions and staff reassignments.
In a reorganization of the bank’s
marketing function, Don F. Waniata
was named vice president and direct­
or of marketing. Ross S. Fenn, vice
president, will assume the marketing responsibilities for the bank.
responsibilities for the bank’s trust
Douglas F. Miller, assistant vice
affiliate, First Northwestern Trust president and assistant manager of
Com pany o f South D akota, in the Colonial branch, was named
addition to his business development assistant vice president and assistant


M r. K ennedy, a graduate of
Dakota Wesleyan University, joined
- the bank in 1969 and was elected an
officer the following year. He became





assistant vice president in commer­
cial loans in 1976 and transferred to
Midland National Bank in Minne­
apolis in 1977. He returned to Rapid
City in 1978 as assistant vice presi­
d e n t in the marketing department.
Mr. Cappa, who has a BS degree in
- business from Black H ills State
k College, joined the bank’s instalment
loan department in 1974. Most re- cently he was loan officer and assist­
ant m anager at the R obbinsdale
Mr. Palmer joined the bank in 1977
and was most recently a credit officer
at the main office. Mr. Beals, who
moved to the agriculture department
last December, joined the bank in
» 1978. Mr. Schlimgen joined the bank
in 1977 and formerly was a personal
* loan officer at the North branch.
Ms. Bryan, who has been with the
bank fulltime since 1972, was most
31 recently an instalment loan officer.
», Mr. Brady joined the bank in 1976
and formerly was loan officer and
-a s s is t a n t m anager at the Newell
office. Mr. Joneson joined the bank in
1978 and most recently served in the
, instalment loan department at Belle
Federal Reserve Bank of St. Louis


Sioux Falls— Six Convenient Locations
Brookings, Dell Rapids. Lake Preston, Madison,
Huron, Gregory, Chamberlain, Parker, Springfield

Northwestern Banker, May, 1980


South Dakota News



manager at the Brookings branch.
Patricia R. Waring, mortgage loan
officer at the main office, was named
assistant manager of the Colonial

W ell
see you
at the





Promoted to VP at Philip
People Banking on People
100 S o uth P h illip s Avenue
S ioux Falls. SD 57102
The First National Bank in Sioux Falls
Member F D I C

Marion A. Matt has been promoted
to vice president of the First National
Bank in Philip. He joined the bank in
1978 as an assistant vice president.
Mr. Matt graduated from Black
H ills State College in 1969 and
started his banking career at the First
National Bank of the Black Hills’
main office in Rapid City as an instal­
ment loan trainee. He later served at
that bank’s Belle Fourche and Newell
branch offices.

Hosts Theater Reception
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis




Elmer A. Montgomery, agricul­
tural loan officer at the G regory
branch, was promoted to assistant
vice president and assistant manager
of Gregory. Michael J. Evanson, ag­
ricultural loan officer at the Stockyards branch, was elected agricul­
tural loan manager at the Huron
Rita E. Schulte, auto bank man­
ager at Huron, was named personal
loan officer at the Huron main office.
Melvin R. Syring, agricultural loan
officer at Huron, was named auto
bank manager and loan officer at the
Huron auto bank.
Janice M. Klein was promoted to
operations officer at the Dell Rapids
branch, and Paula C. Bickett was
promoted to assistant manager of the
Northwestern Travel Agency.

M ay 12 -1 3

F irs tS io u xF a lls


The final highlight of the 1980
March Art Festival in Sioux Falls

David B . Butterwick has accepted
a position as facilities manager of the "
bank’s South St. Paul affiliate. Eric
C. Hohman was named agricultural
loan representative at the Stockyards *
branch, Orland A. Grove was named
agricultural loan representative at w
Madison, and Vicki P. Ripley was
named mortgage loan representative
at the main office.

was a gala post-theater reception at
Northwestern National Bank.
The Guthrie Theater players fol­
lowing their last performance in “ The
G lass M enagerie” were join ed by
several Guthrie Theater directors
from the Twin Cities at the bank’s „
evening reception.

Aberdeen Promotions
C. Fred Mateer is now vice presi­
dent of human resources for First
N ational Bank and its branches, —
headquartering in Aberdeen.
Viola Fosheim is now assistant
branch manager for the B ristol


sity of Richmond, Va., with a BS
degree in business administration­
Mr. Switzer joined the bank’s agri­
business department in 1978. He is
a graduate of Montana State Univer­
sity with a degree in agribusiness.

Elected at Bilings Bank

S chedule C om m ercial Loan Convention
HE commercial lending commit­
tee of the Montana Bankers A s­
sociation will host the Commercial
Lending Convention May 15-16 at
the Village Red Lion Motor Inn in
M issoula. D iscu ssion topics will
range from bankruptcy to the UCC.
The program follows:


Thursday, May 15
Noon Registration
3:00 Small Business Workshop —
John Cronholm.
6:30 Reception
Friday, May 16
AM .
7:30 Robert Morris Associates
8:30 Welcome—Robert Burke,
MBA president and president,
First National Montana Bank,
9:00 Bankers and CPAs: A Working
Relationship—Robert Bragg,

Minnesota Investor Purchases
Bank of Mont. System Shares
Bank of Montana System, Great
Falls, has announced that Stephen
A dam s o f W ayzata, M inn., and
entities affiliated with or controlled
by him, have agreed to purchase or
have acquired options to purchase
from certain BM S stock holders,
181,880 shares of BM S com m on
stock, (about 26% of the outstanding
shares) and $388,000 principal
amount of BM S’s subordinated de­
bentures con vertible into 23,163
shares of common stock.
The transactions are subject to
certain conditions, including approv­
al from regulatory agencies.
The prospective selling stockhold­
ers and debentureholder include
Charles W . Rubie, chairman and
chief execu tive officer o f B M S;
William B. Ellis and Glenn H. Lar­
son, directors of BMS; Charles H.
B rocksm ith , a form er director of
Federal Reserve Bank of St. Louis

Bragg Ingold & Co., Missoula
(sponsored by RMA).
10:00 Bankruptcy Review—Judge
Orville Gray, Great Falls.
11:00 UCC: 15 Years Later—W. D.
Murray Jr., Butte.
Noon Luncheon. Banking in the 80s
— Robert Burke.
2:00 Panel Discussion—How to
Manage a Commercial Loan
Department. Moderator:
David Calahan, Montana
Bank, Billings. Panelists: Ted
Witzel, First Security Bank,
Bozeman; Jerry Woods, Secur­
ity Bank, Billings, and Bill
Thorndal, Central Bank, Great
4:00 Convention Wrap-up —Ken
Erickson, commercial lending
committee chairman.
6:30 Reception
7:30 Banquet
BMS, and Eldon E. Kuhns of Bill­
Mr. Adams said that he and his
associates may make further pur­
chases of BMS securities, but that
they do no anticipate any changes in
BM S’s board of directors or manage­
ment, not do they presently expect to
take an active role in the direct man­
agement and operations of BMS.

Northwestern Announces
Recent Staff Appointments
Fred Sodom ka has joined the
N orthw estern N ational Bank of
Great Falls as human resources offi­
cer, and Charley Switzer was recently
appointed agricultural loan officer,
according to Dale W . A nderson,
Mr. Sodomka joins the bank with
more than 20 years experience in per­
sonnel m anagem ent with the Air
Force. He is a graduate of the Univer­

The board of First Bank Billings
recently elected Bruce Posey real
estate loan offi­
cer. Mr. Posey
joined the bank’s
executive train­
ing program in
January, 1979,
and was promot­
ed to his most re­
cent position as
real estate loan
representative in
August, 1979. He
is a 1977 graduate of the University of
Montana and received an MS degree
from Colorado State University in

Named at First NW, Billings
Kenneth D. Carson has been elect­
ed assistant vice president-agricul­
tural loans at the
First Northwest­
ern N a t i o n a l
Bank, B illings,
according to A1
W in e g a r d n e r ,
M r. C a rson
joined the Four
Rivers PCA in
Macomb, 111., in
1971 as branch
manager and transferred to the East­
ern Idaho PCA in American Falls. He
had served as branch manager there
since 1976 prior to joining the bank.
He attended Gem City College in
Quincy, 111., andBurnside-Ott Aviat­
ion Academy in Miami, Fla.

Named Heart Chairman
Dan Barz, president of the Rimrock Bank of Billings, has been elect­
ed chairman of the Northwest Rocky
Mountain region and vice president
of the American Heart Association.
The region covers Montana, W yo­
ming, Colorado, Utah, Idaho, Ore­
gon, Washington and Alaska.
Mr. Barz has served on the regional
heart board for eight years and has
been Yellowstone County treasurer
for the past 13 years.
Northwestern Banker, May, 1980


sity o f W yom in g. She has held +-■
various teaching posts and in 1978
started the Hotline Energy Reports,
an oil and gas reporting service cover- >
ing the Rocky Mountain region.

Promoted at 1st Nat’l., Casper

rich joined the bank in 1968.
Wil C. Durham was named vice
Robert E. Bryans, who has elected
of operations and funds
to take early retirement from the
Mr. Durham, who was
Walker Bank &
previously an assistant vice president
Trust C o., Salt
in the operations section, joined the
Lake C ity, has
in 1973.
been elected to
Hanway, a graduate of
the board of di­
Colorado State University, was elect­
rectors of First
ed assistant vice president with
Wyoming Bankresponsibility for the bank’s internal
Casper, a cco rd ­
data processing. He joined the bank
ing to James E.
in 1969.
C u n n in g h a m ,
Janet Julian was named assistant
president in the instalment loan
M r. B ry a n s
She joined the bank in
resided in Casper from 1945-75 and
was associated with the First Nation­
Charles Peyton was elected assist­
al Bank of Casper. He was president
ant vice president and controller with
of First National when he transferred
to Salt Lake City in 1975 as chairman responsibilities in the operational
section. Mr. Peyton, who has been
and president of the Walker Bank.
the bank for four years, previ­
During his banking career he has
served as auditor.
served as president of the Wyoming
J. Baker, who has been
Bankers Association and has been
since 1973, was elected
active in American Bankers Associ­
with responsibil­
ation activities.
ities in the data processing section.
Bette J. Meyers was named oper­
ations officer with responsibility for
the bookk eeping service. She has
Hilltop National, Casper
been with the bank for five years.
Announces Appointments
Stephanie Galbraith was elected
N. P. Van Maren Jr., president of customer relations officer with re­
H illtop N ational Bank, Casper, spon sibility for adm inistering the
recently announced the follow ing new accounts section. She joined the
changes in the officer staff.
bank in 1978.
Roger Curtis was elected senior
vice president and cashier. Mr.
Curtis, who joined the bank in 1969,
is a graduate of the Colorado School Casper Bank Names Director
of Banking. He was previously vice
The appointment of Re’Jane M.
president and cashier.
Burton to the board of directors of
Gary Trapkus was named vice F irst W yom ing Bank-Casper has
president and commercial loan man­ been announced by James E.
ager. Mr. Trapkus, who joined the Cunningham, chairman, and Jay F.
bank in 1978, has done graduate Bordewick, president. She succeeds
business work at the University of Earl T. Carrico, who has retired from
Iowa and was previously assistant the board after 10 years of service and
vice president in the commercial loan who will remain as an advisory
M rs. Burton has a degree in
Audrey Oellrich was named assist­
ant vice president with responsibil­ English literature from the Sorbonne
ities in the liability management and University, Paris, and an M A degree
commercial loan sections. Ms. Oell­ in French literature from the Univer­

Bryans Returns to Casper

Banker, May, 1980
Federal Reserve Bank of St. Louis

First National Bank of Casper re­
cently promoted Leonard R. deMoor '
to vice president,
a c c o r d i n g to
Henry A. Hitch,
M r. d e M o o r
joined the bank
in 1977 as assist­
ant vice p resi­
dent in the instal­
ment loan d e­
p a rtm e n t. He
previously was
an assistant vice president at the •*
First National Bank in Hastings,
Neb., and attended the University of

Heads Cheyenne Bank
John R. Conry Jr., who has been
with the H untington N ational, 4
Springfield, Ohio, has been elected
president and chief executive officer
of the First Wyoming Bank, N .A., Cheyenne.
The bank also announced the pro­
motion to vice president and trust
officer of Daryl G . Gaines. He joined
the bank in July, 1979. Previously, he *
had been a trust officer in Colorado.

Joins Cheyenne Holding Co. 4
Larry L. Hassler has recently join­
ed Wyoming Bancorporation, Chey- w
enne, as corporate auditor. From
Grand Island, Neb., Mr. Hassler has ”
been a commissioned national bank
examiner in charge of a region with
banks ranging in size from $3 million ^
to $120 million.
He graduated from Central Mis­
souri State University with a BS in ,
accounting and has continued his
education in banking and auditing ’
through specialized courses.

Saratoga Directors
Saratoga State Bank has elected as *
directors Mrs. Robert L. (Deborah) _
Chastain, owner of Cedar Creek
Ranches; Michael Glode, local busi­
nessm an, and W illiam Saulcy of
Saulcy A g Enterprises.

The best
combinatimi of
services inthe
Ask us about:

■ Investments & Safekeeping

■ Transit & Clearings

■ Foreign Banking Services

■ Collections & Transfers

■ Credit Information

■ Loan Participation

...a n d much more.

BAN K ifea'i
M em ber Federal Deposit Insurance C orporation

An Equal Opportunity Employer

Y o u r re g io n a l re s e rv e c ity b a n k
Federal Reserve Bank of St. Louis


95th Annual

North Dakota Bankers
Association Convention


Vice Pres.


Exec. Director

Convention Chmn.

May 19-20
Kirkwood Motor Inn— Bismarck
F OLLOWING the same successful two-day format
adopted last year, the North Dakota Bankers A sso­
ciation’s 95th annual convention will be held May 19-20
at the Kirkwood Motor Inn in Bismarck.
The first day will be devoted to golf and bowling tour­
naments, with the President’s Reception and Dinner
following the evening of Monday, May 19.
The second day will start with a 7:30 Prayer Break­
fast, with the general sessions scheduled to take up at
9:15 a.m. NDBA President Morris T. Nelson, president
of the Scandia American Bank in Stanley, will preside at
the meetings. He has been assisted during the year by
First Vice President C. N. Davis, president, First State
Bank, Cando; Second Vice president T. A. Roney, presi­
dent, Foster County Bank & Trust Co., Carrington, and
Treasurer James E. Noonan, president, First North­
western National Bank, Mandan. Harry J. Argue, Bis­
marck, is executive director of NDBA.
The second day will conclude with the annual banquet
and entertainment. The program follows:
Sunday, May 18
Exhibit Hall Open (afternoon) — Kirkwood Courtyard
Monday, May 19

Men’s Golf Tournament—Apple Creek Country
Women’s Golf Tournament—Apple Creek
Country Club.
Convention Registration Desk Opens—Kirk­
wood Courtyard.
Exhibit Hall Open—Kirkwood Courtyard.


Men’s & Women’s Bowling Tournament—Mid­
way Lanes.
President’s Reception—Kirkwood Rhinehall.
Dinner—Kirkwood Rhinehall.
Dancing—Kirkwood Rhinehall—The Glowmen.
Tuesday, May 20


Prayer Breakfast & Necrology Service—Kirk­
wood Rhinehall.
Guest Speaker: C. John Miller, president, Inde­
pendent Petroleum Association of America,

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis




The Western Meadow Lark, state bird of North Dakota. This year the state bankers’
convention will be held in Bismarck on May 19 and 20. Peter Gillette, Larry Buegler,
Don Pederson, Dick Storlie, John Thomson, Dennis
McFadden, and Jim Holker hope to see you there.
We’re on your side.
This o rig in a l p a in tin g is b y n a tio n a lly -k n o w n w ild life a rtis t Lo u is R aym er.
Federal Reserve Bank of St. Louis

National Bank

Of Minneapolis

Member FDIC

Northwestern Banker, May, 1980


North Dakota News







Washington, D.C.
General Session—Kirkwood Rhinehall.
C. C. Hope, president, American Bankers A sso­
ciation, Charlotte, N.C.
“ What You Are Isn’t Necessarily What You Will
Be” —Dr. Morris Massey, Morris Massey A sso­
ciates, Boulder, Colo.
NDBA Business Meeting.
Ladies’ Social and Luncheon—Municipal Coun­
try Club.
Guest Speaker—Jeanne Swanner Robertson,
Burlington, N.C.
Delegates’ Luncheon—Kirkwood Rhinehall.
Guest Speaker—Ron Erhardt, head coach, New
England Patriots.
General Session—Kirkwood Rhinehall.




“ An Insight and General Overview of the Can- .
adian Banking System” —Ed Ranft, vice presi­
dent & general manager, The Bank of Nova
Scotia, Winnipeg, Manitoba, Canada.
“ Agricultural Economic Forecast” —Orion
Samuelson, vice president, WGN Continental r
Broadcasting Company, Chicago, 111.
“ Anatomy of a Regulation” —Edwin B. Burr,
assistant to the director, Federal Deposit Insur­
ance Corporation, Washington, D.C.
“ Ace Reid’s Country Humor” —Ace Reid,
Dragon S Ranch, Kerrville, Tex.
Social Hour—Kirkwood Courtyard.
Dinner—Kirkwood Rhinehall.
Entertainment—Kirkwood Rhinehall—The
Serendipity Singers.

Entertainers for ND Bankers Convention
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Welcome to Bismarck
for the

95th Annual Convention
of the

North Dakota Bankers Association
M ay 1 9 ,2 0 ,1 9 8 0

“ We are proud to help serve as your hosts”
B is m a r c k B a n k e rs A s s o c ia t io n

State ITJank o f
llju urleigh
rle ig h Ci




of cKirkwood cPlaza





Of Bismarck
An Affiliate of Northwest Bancorporation

Federal Reserve Bank of St. Louis

First Bank
M em ber First Bank System

Northwestern Banker, May, 1980


North Dakota News

NDBA Executives Report on A ctivity
North Dakota Bankers Assn.
President, Scandia American Bank

I T IS my pleasure to welcome all
members and guests to the 95th
annual con v en ­
tion of the North
Dakota Bankers
A ssocia tion in
B i s m a r c k on
May 19 and 20.
This past year
has been one of
change in bank­
ing, in regulatory
adm inistration,
and in major fed­
eral legislation. These changes have
for the most part been attempts to
adjust with what has seemed an un­
manageable escalation in the growth
of inflation.
Western North Dakota, particu­
larly, has had economic conditions to
contend with that have been less than
favorable. The truckers strike, the
Duluth grain handlers strike, a rail­
road box car shortage during most of
1979, almost impossible conditions to
market sunflow ers, and spot fuel
shortages have added to the credit
management difficulties of area farm­
ers and their bankers. North Dakota
was very fortunate in having a good
supply of sub-soil moisture in 1979,
as our rainfall was the lowest in years.
The present seeding season is near
and with little sub-soil moisture now,
there is great concern among the
farmers for rainfall and alarm of
possible grasshopper infestation in
some communities.
With the present money crises at
the national level, with credit extens­
ions at lending institutions at a
higher than normal rate in North
Dakota, and with lower price levels
for agriculture products, farmers and
business have much to cope with in
planning operations for the coming
Livestock conditions are perhaps
the one bright spot that has held up
fairly well throughout the year; how­
ever, costs of rental land and other
operating overhead have presented
caution in the feeder cattle area. Cow-

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

calf operations should have another
favorable year if grass conditions are
Municipalities, cities, counties and
school districts all experience the
silent stealing of inflation; and these
problems will only intensify as the
months ahead are faced.
The year 1980-81 will surely pre­
sent many new challenges to banking
in North Dakota. Opportunities are
at hand to alter the negative attitudes
about private businesses that devel­
oped during the 1970s. We may see
further regulatory changes emanat­
ing from Washington, none of which
will have as much beneficial impact in
North Dakota as adequate rainfall.
No one in the world has the optim­
ism of the North Dakota farmer, and
we must share this hope and look for­
ward to the conditions and elements
that may provide a year of productive
growth and a better way of life in
North Dakota.
Executive Director
North Dakota Bankers Assn.

T HE YEAR now concluding for
the North Dakota Bankers A sso­
ciation has been
one with several
surprise happen­
ings. This often
required fast and
adequate respon­
ses. Thanks to
the dedicated ef­
forts of num er­
ous bankers, the
N D B A proved
flexible enough
to handle the tasks at hand.
Many of these efforts were joint
ones with the Am erican Bankers
Association and included:
• The fight to void an Internal
Revenue ruling obligating banks to
report cu stom ers’ short-term CD
accrued income prior to maturity for
tax purposes.
• Support for an A BA filed lawsuit
against the bank regulators in regard
to procedures requiring restitution
under R egulation Z, causing su s­
pension of the program.
• The successful blocking of a reg-

ulatory attem pt to reinstate the
differential on money market CDs
above 9 % in favor of savings and loan
• Continual reworking of omnibus
federal legislation that, while not perfeet, does take definitive steps toward eventual equity and a level
playing field among competing financial institutions.
With so much happening in Wash­
ington that im pacts every N orth
Dakota bank on a daily basis, the
NDBA this year chartered its own
federal political action committee. In
1979 North Dakota led the nation in
contributions to A B A ’ s BankPac,
based on percentage of goal achieved.
North Dakota BankPac will continue
to support ABA BankPac and make
direct contributions to candidates.
Hearing pleas from its membership for help to stay current with the
ever increasing number of consumer
lending regulations, the NDBA conducted a special two-day conference
in January on this subject. It attracted the highest attendance of any
NDBA conference during the year
and almost unanimous requests from
the attendees that it be repeated at
least annually.
In an attem pt to meet the
challenges of a new decade, the
NDBA Executive Council formed a
Long Range Planning Task Force to
develop a five-year affirmative plan
of action for the Association and
banking in North Dakota.








Besides the matters already dis­
cussed and recurring NDBA activ- (ities, the Association has done the
following in recent months to be of
greatest efficiency and service to its <
• Restructured all nine standing
committees to provide rotation of
terms and better chances for more
bankers to serve.
• Studied the process by which
officers and Executive Councilmen
are nominated. Some changes have
already been implemented and the
membership will soon consider addi­
tional ones.
• Redrawn the boundaries of the
N D BA’s four regional groups to pro­
vide equalized representation on the
Executive Council and committees.
• R evam ped and revitalized the
North Dakota School of Banking.
• Commissioned outside research
on the effectiveness of the NDBA A d ­
vertising Program. Results showed
the program to be on the right track.







(M ultiply this by 2 4 billion.)

That’ll tell you something
about our assets. But not everything.
For one thing, we’ve already
gone over $24 billion—heading
for $25.
For another thing, money is
not our only asset.
90 of the nation’s top 100
corporations do business with us.
We think that’s an asset.
With over 580 offices and

20,000 employees, we’re one of the
top two banks in California. We’re
one of the top ten banks in the
We’ve got offices or affiliates
in the major financial centers of the
Flow did Security Pacific
Bank get to be so big? By making
the most of our assets for 109 years.
The way we look at it, everybody we

do business with is one of our assets.
We do well by them, they do well
by us. And it seems to be working.
Because our assets keep multiplying.

Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980

79th Annual

Colorado Bankers
Association Convention
June 5-7
Broadmoor Hotel
Colorado Springs
VARIETY of activities—sports tournaments, not­
ed speakers, top entertainment and annual business
meetings—will highlight the 79th annual convention of
the Colorado Bankers Association June 5-7 at the Broad­
moor Hotel in Colorado Springs. Among the features:


Thursday, June 5
• Tournaments—golf, tennis, running, skeet & trap
shooting and bridge.
• Evening steak fry at Rotten Log Hollow at the
Broadmoor. Entertainment—Imperial Jazz Band, M ex­
ican Brass Band and the Koshare Indians.
Friday, June 6
• 9 a.m. —Call to order: Donald L. Farmer, president,
Colorado Bankers Association and president, Rocky
Ford National Bank, Rocky Ford. Convention theme:
“ Reaching New Horizons Together.”
• “ Banking and Competition in the 80s” —C. C. Hope
Jr., president of the American Bankers Association and
vice chairman, First Union National Bank & Trust Co.,
Charlotte, N.C.
• President’s Annual Address—D. L. Farmer.
• 50-Year Club presentations.
• Luncheon speaker: Art Holst, former National
Football League official.
• “ The American Economy” —Dr. William Freund,
senior vice president and chief economist, New York
Stock Exchange.
• Report on CBA financial status—J. Robert Young,
chairman, Colorado Bankers Association and chairman,
Valley Bank & Trust Co., Glenwood Springs.
• “ What’s Right With America?” —Douglas Ed­
wards, CBS television correspondent, New York City.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

• Evening dinner and show—The Arbors and George
Saturday, June 7
• 9 a.m. —Call to order: James J. O’Dell, vice presi­
dent, Colorado Bankers Association and president,
Platte Valley Bank, Brighton.
>• “ Federal Legislation and Banking” —William H.
Kennedy Jr., chairman, government relations council, ^
ABA, and chairman, National Bank of Commerce, Pine
Bluff, Ark.
• A B A presentation: “ Competitive Connection for '
the 80s” —AlParo, ABA, and Ronald Smillie, vice pres­
ident, Leo Burnett U .S.A.
• A B A Meeting—Leo Hill, executive vice president, ^
Affiliated Bankshares of Colorado, Inc., Boulder.
• CBA Annual Meeting—nominating committee report, election and installation of officers, adoption of
resolutions and board of directors election results.
• Noon—adjournment.


Each of these
United Missouri
Duncan Kincheloe

Dave Bear

George E. Crews, Jr

Each has the know-how
and experience to help your
bank keep up-to-date on
regulations and grow more
Meet the pros.
Duncan Kincheloe joined us in 1973 after 20 years as an agricultural chemical marketing
man for a major oil company. He is experienced in both petroleum and agriculture. And this has made
him valuable in his dual capacity as a national accounts and correspondent officer for us in the Southwest.


Dave Bear is p ro o f o f th e saying th a t n o b o d y u n d e rsta n d s th e p ro b le m s o f rural banks
like a rural banker. Dave sp e n t six years as a bank e x a m in e r in rural M isso u ri and tw o years w o rk in g
in a rural bank. T h e re he le arned th e lessons a b o u t th e v a lu e o f be in g a cce ssib le and re sp o n sive th a t
he brin g s to his p o s itio n w ith us.


George E. Crews, Jr. was a vice president and cashier of a metropolitan area Kansas
City bank before joining United Missouri. His 25 years of banking experience adds up to valuable help
and counsel on your bank's problems. George is a pro you can count on in the operations, loans, and
new business areas.



United we grow. Together.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


Colorado News

You W ill See Them at the 79th Annual
Colorado Bankers Convention June 5-7


HE following metropolitan bank­
ers and service and equipment
dealers have indicated they will be
attending the 79th annual convention
of the Colorado Bankers Association
in Colorado Springs, June 5-7.
Continental Bank: Mary Cloonan,
second vice president.
First National Bank: Colin C.
Johnston, vice president, and Cath­
erine D. Saccany, loan officer.
Harris Trust: Peter Morris, vice
president, and Chris Baines, commer­
cial banking representative.
Central Bank & Trust Company:
Max Brooks, chairman; Donald D.
Hoffman, president; R. J. Nelson,
George G. Patterson and Joseph R.
Lincoln, executive vice presidents;
Donald H. Echtermeyer, senior vice
president; William C. Tumelty, vice
president; James A. Simon, assistant
vice president.
Colorado National Bank: W. W.
Grant, president; Robert L. Kropf,
senior vice president; L. Lance John­
son and W illaim M acM illan, vice
presidents; Gerre Leyden and
M ichael Stanford, correspondent
bank officers; Tobie Safer, adminis­
trative assistant; and Caralee
Zimmer, correspondent service repre­
Denver National Bank: John A.
Edmiston, senior vice president, and
Steve Sheridan, assistant vice presi­
First National Bank: G eorge
Acker, vice president; Terrance J.
Tangen and Harry Devereaux, assist­
ant vice presidents, and Charles Hall
Jr., correspondent bank officer.
United Bank of Denver: Bob Dressel and Don Sail, vice president; Jim
Lampman, commercial banking rep­
resentative; Bill Powers and Jan
Campbell, commercial banking offi­
Kansas City
Commerce Bank: Fred Coulson,
vice president, and D avid S cott,
assistant vice president.
United Missouri Bank: Richard C.
King, president and chief adminis-
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

trative officer; E. L. Burch, senior
vice president, and Richard H. Muir,
vice president.
First National Bank: Gary L.
Biech, vice president and managercorrespondent bank division, and
Steve Anderson, assistant vice presi­

shares of Buckingham Square Na­
tional Bank in Aurora, according to
Theodore D. Brown, B an corp or­
ation’s chairman and chief executive
The acquisition would bring to 13
the number of banks in Bancorpor­
ation. The holding company current­
ly owns 12 banks, including four in
metropolitan Denver.

1st National Bank, Greeley
Names New Executive VP

Sam L. Leeper has been named
executive vice president of the First
The Omaha National Bank: Rich­ National Bank of Greeley, according
ard Yeshnowski and James L. Allen, to Royce B. Clark, chairman and
vice presidents.
Mr. Leeper, who also was elected a
director of First of Greeley, formerly
Seattle-First National Bank: Sam­ served as executive vice president of
uel R. Noel, vice president and man­ the Champaign N ational Bank in
ager; Arthur L. Manegre, vice presi­ Champaign, 111.
He has a BS degree from the Uni­
dent and area manager, and George
versity of Illinois, an MBA from
E. Lovell, assistant vice president.
Indiana University and a degree from
the ABA Commercial Lending School
Bank Equipment and Other Firms
and Stonier Graduate S chool of
Bank Building Corporation, St. Banking.
Louis: Hank H anson, consultant
services manager, and Bob Owens,
vice president of sales.

Frascona to Retire as Head

Deluxe Check Printers, St. Paul:
Roger Bowen, R oger Bell, Bruce Of Colorado Banking School
Joe Frascona is retiring as director
Christensen, Ralph Stolp and Karen
of the Colorado School of Banking
after 21 years of leadership, accord­
Diebold, Inc., Canton, Ohio: Bill
ing to John Edmiston, chairman of
Kelley, Herb Seres and Bob Zitnik,
the board of trustees. An appreci­
sales representatives.
ation dinner for Mr. Frascona is
Financial Institution Services, planned for August 16 in Denver.
Inc., Nashville: Bill Graves, area
Kirchner Moore & Company,
Denver: J. Michael Fleming, senior
vice president; John Schabacker, Bill
Potocnik, W. R. Opp, Mark Griffin
and Louis J. Switek, vice presidents,
and Don L. Shaw.

Blvd. Colo. Names Chairman

Jerry D. Sheely, president of Boul­
evard Colorado National Bank, Den­
ver, recently announced that the
board of directors has elected Ted R.
Johnson chairman.
A director since 1963, Mr. Johnson
Lincoln Benefit Life Company,
been active in banking for 50
Lincoln: Steve Sutton, vice presi­
working for the Salt Lake City
branch of the Federal Reserve Bank
Scarborough and Company, Chi­ and the Bank of Vernal, Utah, as well
cago: Jim Lloyd.
as serving on several banking and
financial boards of directors. He is
active in civic affairs.

First Nat’l. Bancorporation
To Acquire Aurora Bank

New VP-Cashier at Golden

The Federal Reserve System has
approved an application by First
National Bancorporation, Denver, to
acquire 100% of the outstanding

Richard Kreutzer, president of the
G olden State Bank, recently an­
nounced that the board of directors
has named Joe L. Williams vice presi-


to service is
your Source of
strength in

First of D enver is the source you can
depend on
for p ro m p t decisive answ ers and
action on y o u r loan p articip ation requests,
for the n e w e s t m ost com preh en sive
cash m anagem ent system s,
for an a v a ila b ility sched ule w hich sets
the standard in the Rocky M ou ntain
for h ig hly skilled bankers w h o m ake it
their b usiness to anticipate changes in the
agri-bu sin ess and m etro m arkets that can
affect y o u r bank and custom er needs.
A n d w e respect and protect the
integrity of y o u r custom er
S o con sid e r the Source.
■W] i -sar \
think First. First of Denver

Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980

Colorado News

dent and cashier in charge of all bank
Mr. Williams moved to Golden
State from W eld Colorado Bank,
Greeley, where he had worked for five
years and was vice president and
cashier. He has 14 years of banking
experience in various capacities and
is a graduate of the Colorado School
of Banking.

United Bank of Denver
Announces Staff Changes
Roger E . Johnson has been named
com ptroller o f United Bank of
D enver, according to Richard A .
Kirk, president and chairman. Mr.
Johnson will also serve as head of the
bank’s financial management activ­
He com es to United Bank of
Denver from United Banks Service
Com pany, an affiliate of United
Banks of Colorado, Inc., most recent­
ly serving as vice president. He is a
graduate of Princeton University and
U niversity of C h ica go’ s Graduate
School of Business with an MBA in
Thomas W. Honig, Thomas M.

Peterson, Marvin Shamon and Mari­
Mr. Warman joined Colorado Na­
lyn T. Webb were named to the posi­ tional Bankshares in 1972 and was
tion of assistant vice president.
elected vice president of Aspen In­
Mr. Honig joined UBD in 1976 and dustrial Bank the next year. He
holds a BS degree in business admin­ opened Northglenn Industrial Bank
istration from the U niversity of in 1976 and will continue to serve as
W yom in g. A graduate of A lbion president of that facility.
College with a BA degree in eco­
Patricia Jean Howell is assistant
nomics, Mr. Peterson joined UBD in manager of the new facility and is
responsible for office administration,
Mr. Shamon has been associated business development and lending
with UBD since 1967. He holds a BS activity. She was formerly supervisor
degree from the U niversity of of the credit department and assist­
Colorado. Ms. Webb joined UBD in ant systems coordinator of Rocky
1974. She has a degree in personnel Mountain BankCard System.
management from Wayne State Uni­
Diane Lam brecht is operations
specialist in charge of teller operat­
UBD also announced the appoint­ ions.
ments of Valorie D. I sham to the po­
sition of operations officer; Denton R.
Johnson, systems officer, and Clare CNB Offers Student Loans
R. T rout, com m ercial banking
Colorado National Bank, Denver,
has announced that it is offering
special, low interest loans to college
students from Colorado.
CNB Industrial Bank Opens
The 7 % , simple interest loans are
East Industrial Bank, the second made possible through the Colorado
CNB industrial bank in the Denver- Guaranteed Student Loan Program
metro area, is now open at the corner created last year by the Colorado
of First Avenue and Madison Street Legislature. CG SLP acts as the
in Cherry Creek. President of the new guarantor of the loans, eliminating
the need for collateral by the student.
facility is H. E. Warman.

In my job as a correspondent banker,
every day is different.
Yesterday I helped a bank work out
some bugs in their EEO plan through
our Human Resources Division.

Last week I set up a
bank stock loan to help finance
a new bank in northern Colorado.

Federal Reserve Bank of St. Louis




- Rural America . . .
t (Continued from page 14)
s happening in the ag markets and economy, both here
^and abroad. This was evident as soon as C.C. asked
questions. Don got down to business immediately with
x the question, “ Would you like to see our computer print­
outs?” So, the executive of the three billion dollar big
k city bank went over principal points of the monthly com-i puter chart of expenses, income, cash flow, capital
position—and again asked incisive questions. They discussed production costs, marketing problems, govern­
ment and importance of ag exports.
During the picture-taking session at the farm Don
accommodatingly turned the huge $30,000 tractor
around for a “ better angle,” but not before C.C. had
whipped off his coat and vest and climbed into the cab
^ for a short ride in “ an honest-to-goodness midwest
tractor.” He posed in short sleeves for the pictures.
On to AIB Banquet
After another stop with the staff at Central State
Bank in State Center, with a question and answer ex" change with President Bill Haesemeyer and his staff,
C.C. was whisked down Highway 30 a few miles to the
^ east for a press conference at Regency Inn at the edge of
- Marshalltown, site of the AIB banquet. He moved
through the crowd of AIBers introducing himself, ask' ing questions and listening to what these mid-west
bankers had to say.
Later, while addressing them after the dinner, C.C.

gave a brief synopsis of HR 4986 (reviewed elsewhere in
this issue) and quoted Treasury Secretary William
Miller, who said, “ This is the most important financial
legislation to come out of Washington in 67 years (since
the Federal Reserve System was created in 1913).” C.C.
noted that where 5,000 banks previously had been carry­
ing the burden of reserves for monetary control by the
Fed, now there will be 42,000 institutions carrying re­
serves with the Fed and sharing the burden to some de­
gree. A B A President Hope—C.C. to the new friends he
had met—was given a standing ovation at the con­
clusion of his address.

If you're not working with us now,
give me— Bill Tumelty—a call.
Find out about the ways we
can serve you. I think
you'll discover we have a
genuine interest in you and in being
The Better Bankers.


some teller
for a trai

C.C. poses w ith hosts at AIB banquet. W ith him, from left, are:
John Jorgensen, new pres, of Iowa Valley Chapter and exec, v.p.,
Commercial State, Marshalltown; Tom Smith, pres, of Fidelity
Brenton B&T, Marshalltown, and immediate past treasurer of the
ABA; Keith Lazar, immed. past pres, of the AIB chapter and
cash., Tama State Bank, and Bill Beohm, pres., Tama State.

of Denver

The Better Bankers.
1515 Arapahoe Street
P.O.Box 5548 T.A.
Denver, Colorado 80292
(303) 893-3456
Federal Reserve Bank of St. Louis

The Better Bankers is a service mark
of Central Bank of Denver.
M e m b e r F D IC

W e c a n m a k e it e a s y f o r y o u t o b e c o m e a
p a r t o f t o d a y 's g r o w i n g E l e c t r o n i c
F u n d s T r a n s fe r (EFT) e n v i r o n m e n t . . .
w it h o u t a lo t o f w a itin g .
O u r r e a d y -t o - g o In sta n t C a s h p a c k a g e
in c lu d e s th e ca rd , th e e q u ip m e n t , th e
p r o c e s s in g s y s t e m , te c h n ic a l s u p p o r t ,

your bank,
Instant Cash can
be instant

a n d a p r o v e n -e ffe c t iv e m a r k e tin g a n d
a d v e r t i s i n g p r o g r a m . B e s t o f a ll, w e 'r e
r e a d y t o p u t a ll ( o r p a r t )
o f it t o w o r k f o r y o u n o w .

L e a rn h o w y o u ca n m a k e th e m o s t o f
o u r In sta n t C a s h S e r v ic e s . . . to m a k e


y o u r a c c o u n t r e la tio n s h ip s m o r e v a lu ­
a b l e , t o m a i n t a i n y o u r b a n k 's id e n t it y ,
a n d t o c o m p e t e m o r e e f f e c t i v e l y in

y o u r m a r k e t p l a c e . C a ll a U . S . N a t i o n a l
C o r r e s p o n d e n t B a n k e r a t 4 0 2 / 5 3 6 -2 0 7 2
to d a y .

Bob Harris

Howard Nielsen

Larry Hansen

Lee Bachand

John Lewis

Myron Peterson

) U .S . National Bank, 1980
Federal Reserve Bank of St. Louis

Member FDIC


Of Omaha


as agricultural representative for the
past five years.


J . W. M cB ride , pres., A u ro ra
R. M. Beverage, exec, v .p ., L in co ln

W illiam N. Mitten Dies
Funeral services for William N.
“ Bill” Mitten, 78, were held last
month in Fremont. A well-known
banker and community leader, he was
chairman of the First National Bank
& Trust C o., and served on the board
of directors of First State Bank, Fre­
mont State Co. and Commerce Group
National Fremont, Inc. at the time of
his death.
He advanced through various posi­
tions o f Frem ont State Bank,
Stephens National Bank and First
National Bank, starting as a book­
keeper in 1920. He was named presi­
dent in 1938, serving until 1955 when
he became chairman. He was presi­
dent and chairman of the First State
Bank from 1956 to 1968.
Mr. Mitten was awarded an honor­
ary degree in business administration
from Midland College in 1963. He is
survived by his wife and two sons.

Officers Named at Kearney
Two officers have been elected at
the First National Bank & Trust C o.,
Kearney, Kenna Johnson as person­
nel officer, and Jody Stenehjem as
loan administration officer.
Ms. Johnson joined the bank in
1977 as secretary to the personnel de­
partment and was named personnel
Kevin Slocum was elected cashier. administrator in 1978.
Ms. Stenehjem had six years exHe has a BA degree in business ad­
m inistration from Kearney State
Perry Slocum was re-elected chair­
man. Mr. Slocum joined the bank in
1930 and in January celebrated 50
years of service. He continues to be
active in the m anagem ent o f the
bank. Bill Slocum was re-elected

Joins First State, Shelton
Gene Poppe has joined the First
State Bank of Shelton to assume the
duties of assistant vice president. He
was formerly with the First National
Bank of Bancroft where he had served


perience in office management and
collection work before joining the
bank in 1977. She started in the loan
and discount area of the instalment
loan department and later moved to
loan operations.

Frem ont Bank O ffice C elebrates Anniversary

The Nebraska Bankers Associ­
ation’s 83rd annual convention
got underway May 4 in Omaha
as this issue was being deliver­
ed. A complete report with pic­
tures will be published in the
next issue.


Staff News Told at
Franklin State Bank

The board of the Franklin State
•• Bank has announced the promotion
of Janice K. Schenk to vice president.
She has served as an officer since 1971
^ and is a recent graduate of the Colo­
rado School of Banking.
Dwight Davisson retired January 1
ending 40 years with the Franklin
State Bank. He began his career as a
teller/bookkeeper and in 1948 was
elected cashier, a position he held
" until his retirement.
Federal Reserve Bank of St. Louis

PICTURED at the presentation ceremony at Fremont Nat’l. Bank are, from left: David
Simmons, sr. v.p.; George Misfeldt, Fremont; Dalton Benson, v.p., and Mrs. Francis P.
Donner, Fremont.

WO Frem ont residents, M rs.
Francis B. Donner and George
Misfeldt, were awarded interest on $1
million for a day at the Fremont Na­
tional Bank North. It was part of the
ban k ’ s one-year anniversary cele­
bration for its North facility.
The main event of the three-day
celebration was a dual drawing giving
away $1 million to each winner for one
day. Each winner received in actual
prize m oney the interest that $1


million would generate in a 24-hour
period, according to Dave Simmons,
senior vice president and marketing
M rs. D onner and Mr. M isfeldt
each walked home with $321.92. A ct­
ually, “ walked home” was a figure of
speech. After the drawing, the win­
ners were chauffeured in a black
limousine to one of the area’s finer
restaurants for a luncheon celebrat­
Northwestern Banker, May, 1980


He was fiscal agent for the City of h
Bellevue, a former Bellevue city
councilman and an elder and former
board chairman o f the Bellevue
Christian Church.
Mr. Lawrence was president of the
Peninsular Gas Co. o f Calum et,7 >
Mich., and of the Municipal Bond
Underwriters. He also was vice presi>dent of Community and Municipal
Services of Laure, Inc., and of Hadco
Commodities Storage Co. of HastY
ings, Neb. Mr. Lawrence also served
on the boards of Midlands Hospital ►
and Bank of Bellevue.

T HE downtown office of U.S. Na­

cial loan officer, and Scott A. Erik­
son, teller operations officer.
Mr. Lenczowski joined the North­
west Bancorporation regional credit
training program in 1978 and started

tional Bank, currently located at
207 S. 16th St., will be temporarily
relocated in a facility along 14th
Street between Douglas and Dodge
Streets, James R. Campbell, presi­
dent, has announced.
The present bank facility occupies
street level in the old Brown Building
on the block owned by InterNorth Co.
where the recently announced down­
town twin towers are being planned
by a Los Angeles developer.
There are presently six people em­
ployed at the downtown detached
facility. Marion A. Szalewski is the
office manager.
with the bank in February. He is a
* * *
1978 graduate of Creighton Univer­
sity with a BS degree in business
Richard D. Mullin has joined the administration.
Douglas County Bank & Trust Com­
Mr. Erikson attended the Univer­
pany as vice
sity of Nebraska-Omaha and joined
p r e s id e n t and
the bank in 1974. He has worked in
trust officer.
various departments.
M r. M u llin
AnnL. Spence, president and chief
g r a d u a t e d in
executive officer of Spence Title Serv­
1968 from the
ices, Inc., has been elected to the
U niversity
board of directors. She has a BA de­
Kansas with a
gree from the University of Nebras­
BA in p s y ch o l­
ka-Lincoln and a masters degree from
ogy. In 1973 he
Cornell University.
received a JD de­
* * *
gree from the
University of Kansas School of Law.
He previously was an associate
Funeral services were held last
trial attorney with a Wichita law firm
and most recently was employed for month for Leonard L. Lawrence, 62,
four years by the Union National retired president of Robert E . SchweBank of Wichita, Kan., as a corporate ser Investment Banking Company.
trust officer, being named vice presi­ Death was attributed to cancer.
A charter member of the Bellevue
dent in January.
board of directors, he played
* * *
a key role in the formation of Bellevue
College. Mr. Lawrence also served on
Edward A. Kohout, president of the Bellevue school board for a num­
the Northwestern National Bank, has ber of years and was a former presi­
announced the election of two offi­ dent of the Nebraska School Board
cers, Gerald J. Lenczowski, commer- Association.
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Securities Industry Assn.
Announces New Officers
The incom ing president o f the r
Nebraska Securities Industry A sso­
ciation for 1980-81 is Lauren G. Faist,
vice president, Kirkpatrick, Pettis,
Smith, Polian, Inc., Omaha. He suc­
ceeds James P. Kineen, president of
Chiles, Heider & Co., Omaha.
Other new officers include: first
vice president—William J. Gourley,
vice president, Dain, Bosworth, Inc.,
Omaha; second vice president—C.W.
Poore Jr., secretary - treasurer, Rob­
ert E. Schweser Co., Omaha; secre­
tary—Charles Burmeister, president,
First Mid America, Inc., Lincoln;
treasurer—James Pittenger, execu­
tive vice president, Dean W itter
Reynolds, Inc., Lincoln, and board
member—Bill B. Beavers, executive
vice president, Chiles, Heider & Co.,
The association represents 25 ±
member firms and is involved in
activities to better the securities in­

Holdrege Promotions
Glen J. Anderson has been ad­
vanced to senior vice president of the
First National Bank, Holdrege.
Other promotions announced in­
clude: Kenneth J. Slominski to vice
president; A Lucille Erickson (audit­
or), Patricia M. Peterson (head
teller), and Bernice M. L indgren
(benefits), all to assistant cashiers.


Geneva Promotions
Timothy A. Rowan, vice president
of the Fillm ore County Bank,
Geneva, has been elected to the board
of directors. He joined the bank in
April, 1976, and he has 12 years ex­
perience in the financial industry.


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Bob Brown, Don Ostrand, Ralph Peterson, George McFadden, Jim Flodlne, Merv Aegerter,

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Nebraska News

Nebraska Ag Bankers Told:

“G et O ff the Fence . . .
ET OFF the fence and get in
the arena,” will be the chal­
lenge of the ’80s for bankers, Marlin
Jackson told 180 Nebraska bankers
attending the annual NBA Agricul­
tural Outlook Conference.
Mr. Jackson, chairman and presi­
dent of Security Bank in Paragould,
Ark., and chairman of the ABA A g
Bankers Division, was the keynote
speaker for the recent conference in
A lth ou gh pessim ism pervades
many discussions of American agri­
culture and economy these days, Mr.
Jackson predicted the ’80s would be
exciting. “ You have to realize the
difference between problem s and
opportunities,” he said.
Challenges for bankers will come
not only from tight funds, but also
from increasing com petition from
other financial institutions loaning
money to farmers.
Farm Credit Amendments
He discussed A B A ’s concern over
proposed amendments to the Farm
Credit A ct, which will allow, in
A B A ’ s view , a n ti-com petitive e x ­
pansion of the C ooperative Farm
Credit System. The amendments will
significantly broaden the system’s
powers to lend money outside the
farm sector, plus exempt the system
from some of the lending require­
ments by which banks must abide.
He urged Nebraska bankers to write
their Congressmen to express con­
cern over the amendments. (This bill
is scheduled for Senate markup May
7. It has not yet been taken up by the
In a talk laced with country humor,
Mr. Jackson called transportation
and energy two key areas for ag
“ Y ou’re going to see energy impact
America like nothing has ever im­
pacted it before, ” he said. “ The entire
farming operation is affected by the
petrochemical industry, and the im­
pact of $2.50 to $3.00 a gallon gaso­
line will have far more serious conse­
quences than 18% to 20% inflation.”
Mr. Jackson also told bankers they
would have to be involved in trans­
portation. “ You can’t leave it to your
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Be C o m p e titiv e !”

customers and the government to run
the railroads,” he said. He predicted
there would be some proprietary rail­
roads in the ’80s.
R. R. “ Featherbedding”
He cited an example of a recent
railroad strike during which 300 man­
agement and supervisory people were
able to keep the railroad running and
move 80% of its freight capacity. At
that rate, only 425 people would have
been needed to transport a full 100%
of the freight. However, when the
strike was settled, it took 18,000
workers going back to their jobs in
order to move 100% of the freight
traffic. It’s that kind of waste and
inefficien cy that is crippling the
transportation industry, he said.
“ The basic difference between this
country and any other is that our
forefathers brought us a work ethic
that taught us we should get off the
fence and get in the arena,” he said.
“ Bankers can’t sit on the fence. It’s
the man in the arena who counts,” he
“ Be Competitive”
Mr. J a ck son ’ s sentim ents were
echoed by Donald Stingel, director of
the Export-Import Bank of the U .S .,
who told bankers that “ America has
to get off its duff and be
Mr. Stingel explained Eximbank’s
role in the international marketing of
U.S. products, noting that his organ­
ization was one o f the few
government entities to make a profit.


Those profits are used to help
Eximbank lend money cheaper than
its costs of funds. Eximbank current­
ly charges 8.75% interest on its
loans,7 he said.
That is a subsidy of sorts to U.S.
exporters, Mr. Stingel acknowledged, but those rates are needed in order
for Eximbank to help U.S. producers
compete with similar organizations in
other countries.
Eximbank, which is run by five
directors appointed by the President
and confirmed by Congress, has a
current outstanding loan portfolio of
$31 billion and a $40 billion authority.
Half of the bank’s direct loans in
fiscal year 1979 went to finance the
sale of U.S. aircraft, Mr. Stingel said.
Another third of the direct loans went
to finance power plants, pipelines and
other energy-related production.
“ Eximbank did business for 4,000
companies and individuals last year,
and the number of people we serve is
in crea sin g ,” he said. ‘ ‘ W e have
specific mandates to be as competitive as we can.”
State Marketing Plan
Mr. S tin gel’ s presentation was
followed by a report on Nebraska
Gov. Charles Thone’s new compre­
hensive plan for expanding the inter­
national m arketing of the sta te ’ s
agricultural products and manufac­
tured goods. The governor’s plan was
discussed by Dominic Costello, chief
of marketing for the Nebraska Department of Agriculture.
Other presentations at the conference included a legislative update by
NBA Executive Vice President Roger
Beverage and a grain outlook panel,
featuring Glenn Kreuscher, executive
director of the state A gricu ltu ral
Stabilization and Conservation Serv­
ice; Vince Morabito, general manager
of Tilden Fertilizer & Supply Co. in
Tilden; Ron G uelzow , director of
transportation for Peavey Co. in
Minneapolis, and Neal Harlan, vice
president of Scoular-Bishop Co. of
The closin g presentation was a
panel on the outlook for the state’s
livestock industry. Panelists includ­
ed John Connelly, broker for Heinold
Commodities in Chicago, who discussed the hog outlook; Hugh A.
Mactier, president of Western Iowa
Farms Co. of Omaha, who discussed
the cattle outlook, and Ted Doane,
professor of animal science at the
University of Nebraska-Lincoln, who
discussed the sheep outlook.











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Vice President

Vice President



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Assistant Vice President




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Correspondent Bank Officer

Correspondent Bank Officer

llllllliillllllll FIRST N A T IO N A L LI N C O L N
13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
M em ber, F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980

Nebraska News

Moves to Homer Bank
Milton L. Davis has joined Ameri­
can State Bank in Homer as execu­
tive vice president and cashier. Mr.
Davis formerly was vice president,
cashier and a director of the First
Bank and Trust of Spirit Lake, Iowa.
He started his banking career at
the Emmet County State Bank in
Estherville, Iowa, in 1946. He left
that bank as assistant cashier in 1963
to join the bank in Spirit Lake.

Named at Harrison Bank
Wayne Hoskinson, executive vice
president and chief executive officer
of the Sioux National Bank in Harri­
son, has announced the promotion of
Tom Bass to assistant vice president.
Larry Martinson has joined the bank
as agricultural representative.

Joins 1st Nat’l., Fremont
Darrell A . L egband has been
appointed assistant vice president
and commercial loan officer at the
First National Bank & Trust Co.,
Fremont, according to H. W. Hendriksen, president.
A Fremont native, Mr. Legband
was most recently vice president and
commercial loan officer at Citizens
Bank of Oregon, Eugene. He is a
graduate of Wayne State College and
formerly held posts at First National
and First State Bank in Fremont
prior to moving to Eugene in 1977.

Named Cashier at Campbell
W. C. Peterson, president of the
Campbell State Bank, has announced
the promotion of Sharron Worman to
cashier. Ms. Worman joined the bank
in 1974 as a teller and served most
recently as assistant cashier.

New VP & Ag Rep at Wauisa

St. Joseph, Missouri 64502

Telephone (816) 279-2721

Call Ed Boos, Bill Manring, Stan H ulett.
A ffilia te of F irs t M id w e s t B a n c o rp , Inc.
Federal Reserve Bank of St. Louis

M e m b e r F .D .I.C .

Douglas Johnson has joined the
Commercial State Bank, Wausa, as
vice president and agricultural repre­
sentative. Mr. Johnson was formerly
employed at the First State Bank,
Shelton, for the past four years, most
recently as assistant vice president.
Mr. Johnson is a graduate of the
banking program at Pipestone
(Minn.) Area Vocational Technical
Institute. In his new position he
succeeds Neil Kirby who has joined
the Inter-Mountain State Bank in
Cascade, Idaho.


Yvu learn a lot about
Correspondent B anking
in 136 years...
Experience is one o f the most important assets o f our Correspondent
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Call us and find out what 136 years o f experience can do for your bank.
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i r r p r i National Bank of Commerce
Xll J i V The Bank with the Plus Member FDIC
NBC Center, 13th & O St., Lincoln, Nebraska 68508
Telephone (402) 472-4321, WATS 800-742-7317
Federal Reserve Bank of St. Louis

Northwestern Banker, May. 1980


Grow with a
Bankers’ Banker
Ben Elllders, Senior Vice President

Correspondent Banking Department

Ben Eilders and our Bankers Trust
correspondent bankers are ready to help you
with your growing responsibilities.
The Bankers’ Bankers welcome the opportunity
to provide the correspondent services you
need — overlines and loan participations, wire
transfers, data processing and trust services.
And we can give you immediate, authori­
tative answers to your questions.
You’ll be pleased with
the service you receive
from our expanded
correspondent bank­
ing department.
We’re growing!
Come grow with us.

Bankers I
Come Crow I n I O T I
With u s i I U w l l
Correspondent Bank Department
Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Use our toll-free WATS line:
Des Moines’ largest locally
owned, independent bank
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


to fill the vacancies were Mary Ellen
Olson, daughter of Mrs. Olson, and
Stuart Harris, son of Mr. Harris.
Connie Blake and Olive Boetger
were appointed to the position of
assistant cashier.
Mr. Jacobs also announced the
completion of the bank’s entire inter­
ior remodeling. The project began
last October.


L. H. O lson, pres., S ioux C ity
IN. M iln e r, exec, v .p ., Des Moines

Boost Maximum Interest Rates
Iowa’s usury laws, which set new
limits on the amount of interest that
lenders can charge borrowers, was
passed by the House and Senate last
The new law will remove interest
rate ceilings on homes, businesses,
farms, and personal loans exceeding
$35,000. Lenders may also charge a
2% fee on all loans.
The new legislation allows lenders
to charge up to 21 % on new car loans.
Maximum interest rate on used cars
less than two years old will be 24 %.
The maximum rate of loans for cars
more than two years old will remain
at 27% .
The bill will increase the maximum
allowable rate on closed-end credit
accounts from 15% to 21%.
Interest rates on revolving credit
such as department store or bank
credit cards will remain the same at
18% on the first $500 and 15% on
balances over $500.







market in Iowa. The day following
enactment of the new law, an issue of
bonds in Algona was placed through
Carleton D. Beh Co., Des Moines, at
8 .5 % . The previous lim it, under
which Algona could get no bidders,
had been 7 % .
Another bill already approved by
the Iowa Senate and awaiting House
Ways and Means action at mid-April
would remove the ceilings complete­
ly. As proposed originally, the rates
would be set on a monthly basis by a
rate-setting committee, probably the
same one which presently sets public
funds rates. That com m ittee is
chaired by State Treasurer Maurice
Baringer. However, a Senate amend­
ment that was approved before going
to the House would allow local munic­
ipalities to negotiate the best rate.
The effect of that amendment on the
monthly rate-setting committee was
not clear. It was expected the bill
would be advanced to the House floor
within a few days time by the House
Ways and Means Committee.

* * *

Retires at Avoca
Maximum rates that may be charg­
Edwin E. Doll, vice president, has
ed for municipal bonds in Iowa were retired after 46 years of service with
- increased last month when the Iowa the Avoca State Bank. He will con­
legislature approved SF 500 and Gov- tinue to hold a seat on the board of
" eraor Robert D. Ray signed the bill, directors. An appreciation open
which took effect immediately. The house was held for Mr. Doll in late
bill provides these new rates, all of March.
- which are three points above old ceil­
General Obligation Warrants . . . .
General Obligation B o n d s ............
10 . 0 0 %
> Special Assessment Bonds ..........
^ Revenue B o n d s ..............................
11. 00 %
Revenue Pledge Orders ................
11. 00 %
The restrictive old ceilings had
greatly dam pened the m unicipal

Federal Reserve Bank of St. Louis

New Exec. VP at Emerson
Keith H. Warrelmann was recently
elected executive vice president of the
Em erson State Bank succeeding
Boyd L. Nuckolls.
Mr. Warrelmann formerly served
as an assistant vice president at the
Sibley State Bank for three years,
and was previously associated with
the National Bank of Commerce in
Lincoln, Neb., for four years. He has
a degree in business administration
from Wayne (Neb.) State College.

New Director Elected
A. M. Saylor, chairman and chief
executive officer of the Peoples Sav­
ings Bank, Elma, has announced the
election of Wallace Fair to the board
of directors. Mr. Fair, a well-known
Howard County farmer, farms 400
acres and raises beef cattle. He re­
places the late Otto Bodermann on
the board.

Wellsburg Bank Taps Officer
Leland D. Luwe, president of the
Peoples Savings Bank, Wellsburg,
has announced the election of Gary
W. James as assistant cashier. Mr.
James was formerly with the Evansdale State Bank for eight years, most
recently as cashier.

Alta Vista Bank Reports

Paul H entges, president of the
Vista State Bank, has announc­
Directors, Promotions at
ed several recent changes in the
First National, Akron
bank’s staff.
Lyle F. Jacobs, president of the
Inez M. Daly, vice president, died
First National Bank, Akron, has an­ in February. She had resigned in Jan­
nounced changes in the board of uary due to ill health after 51 years of
directors and two appointments.
service with the bank. Marie Gebel
Lawrence Maynard of Akron has retired last month as a bookkeeper.
been elected as a director bringing
Donna Tieskotter has been pro­
board mem bership to eight. Two moted to head of the bookkeeping de­
directors, Yetta Olson of Sioux City partment, and Leigh Boyle and Lu
and Orin Harris of Akron, resigned at Ann Heying have been hired as book­
the March board meeting. Appointed keepers.
Northwestern Banker, May, 1980

Federal Reserve Bank of St. Louis

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or even at the bank. And it means 24
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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


Io w a N e w s

Group 8 to Convene at Davenport
UE to the expected size of Group
8 and meeting facilities in Davenp o r t , b a n k e rs
and their guests
have once again
been asked to
pre-register for
the annual meet­
ing at the Hotel
B la ck h a w k on
Tuesday, May 5,
a c c o r d in g to
Robert C. Wede,
group chairman
and president of the Goose Lake Sav­
ings Bank.
Golf is to be available at the Davenort Country Club from 8:00 a.m. until
11:00 a.m. with Larry Makoben, vice
president, Northwest Bank, Daven­
port, in charge of reservations.
Registration will start at 4:00 p.m.
and the business meeting will follow
immediately. Comments will be made
by Les Olson, IBA president; Tom
Huston, superintendent of banking,
and Neil Milner, IBA executive vice


The social hour will start at 5:30
p.m. and dinner will be at 6:30 p.m.
Ken Paulsen and his band will play
for dancing beginning at 8:00 p.m.

Iowa Student Loans
Surpass $40 Million
The Iowa Guaranteed Student
Loan Program , located in Des
M oines, has surpassed the $40
million mark in student loan guaran­
tees. This program, placed into oper­
ation last May to replace the Fed­
erally Insured Student Loan program
in Iowa, works closely with Iowa
bankers to bring about faster and
more responsive services to lender
At present, about 620 Iowa lending
establishm ents participate in the
program, of which the majority, 567,
are commercial banks.
The student loans now take half the
processing time (one to two weeks
versus a month) of the previous FISL
loans, and claim payments to date

have taken no longer than three
weeks, which is in favorable contrast
to past experience when claims were
processed and paid in Washington,
Total portfolio yield on student
loans is expected to pass last quarters
16% APR.
Iowa program staff members will
be on the road giving instructional
seminars on the program throughout
the state in May and early June.
Thirteen program briefings at 12 sites
have been scheduled, and lenders will
have the opportunity to send new
personnel to these m eetings, or
attend this second annual Spring
Seminar Series for a refresher.
Lenders now participating in the
program will receive information by
mail; however, lenders who have not
joined the program can obtain more
information by calling John D. Wild,
director, in Des M oines at (515)

New Officers Announced
At Davenport Bank & Trust
Davenport Bank and Trust Com­
pany has announced the election of
Richard R. Horst
as a correspond­
ent officer. He is
a 1972 graduate
of Iowa State
University and a
1979 graduate of
School of Bank­
ing, M a d is o n ,
Wis. He was with
Farmers Savings
Bank, Princeton, since 1972, most
recently as executive vice president.






Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Patricia A. Bear was promoted to
assistant credit card officer. She
joined the bank in 1957 and worked in
many phases of bank operations be­
forejoining the credit card division in
R obert J. M cG ee was named
assistant instalment loan officer. He
joined the bank in 1970 as a teller and
transferred to the instalment loan de­
partment in 1976. He is a graduate of
Northeast Missouri University.


“The Drovers Difference”
starts here.


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W h en you correspond with
Drovers you have a direct
line to the full senior m an­
agem ent team. Starting with
President Frank Bauder,
Sr. Executive Vice Presi­
dent Jim C arm ody, and
Executive Vice President
Bob C orey.
T hey’re backed up by
som e of the best corres­
pondent bankers in the
business. People like
John Crotty, M ax Roy,
Andy Ruments and
Kathy Hardy.

Drovers people are “ The Drovers
Difference.” T hey’re the reason
the bank’s correspondent
accounts have just about doubled
in under two years.

M il

S o if you’re looking for more
service with your services . . .
Put us to the test! Just pick
up the phone and call Frank,
Jim, Bob, John, M ax, Andy
or Kathy.
Y ou deserve “The
Drovers Difference.”

Member Federal Reserve System

Drovers Bank of Chico9o
Federal Reserve Bank of St. Louis

47th Street & Ashland Avenue, Chicago, IL 60609

(312) 927-7000

Northwestern Banker, May, 1980


Io w a N e w s

Riverboat Tour for Group 4
ROUP 4 will board the “ Spirit of
D u bu qu e” riverboat at 11:00
a.m. on Tuesday,
May 6 and launch
to activities for
its annual meet­
ing. B o a r d in g
will be at the Ice
Ha r b o r , and
luncheon will be
served on board.
Dubuque County
Bankers Associ­
ation will host
the meeting. Formal business activ­
ities will start at 2:00 p.m. at the Five
Flags Theatre, according to Churchill
T. Williams, Group 4 chairman and
chairman, Oelwein State Bank.
Allen G. Wolkey, vice president of
the Federal Reserve Bank of Chicago,
will be the keynote speaker. Other
speakers will include: Tom Huston,
superintendent of banking; Neil Mil­
ner, executive vice president, Iowa
Bankers Association; J. Bruce Meri­
wether, IB A legislative chairman and
executive vice president and cashier,
First National Bank, Dubuque, and
updates on IBA activities from staff
The social hour will start at 5:00
p.m. at the Five Flags Civic Center.
Dinner will follow at 6:00 p.m. Les
Olson, IBA president and president,
Toy National Bank, Sioux City, will
Entertainment by the Key City
Komedy Company, beginning at 9:30


p.m., will conclude the meeting.
Early arrivals on Tuesday may
arrange for golf at Dubuque’s Bunker
Hill Golf Course by calling the golf
pro at 583-1666.

Tipton Ownership Change
Donald G. Young, president, First
N ational Bank of T ipton , has
announced the form ation of First
Tipton Bancorporation, a one-bank
holding company, has been approved
by the Federal Reserve Bank of
Approval was made in conjunction
with the purchase of con trollin g
interest in the First National Bank of
Tipton by Mr. Young and other local
investors from the Wayne F. Miller
family. Assistance in the acquisition
and formation of the bank holding
company was provided by Holder and
Associates, Ames, Iowa, headed by
Donald E. Holder.

Remodels Bank Office
Keokuk Savings Bank & Trust
Company has announced the recent
remodeling of the 16th & Main Street
A new traffic flow pattern and in­
creased parking facilities are now
available for customer convenience.
A new lane for drive-in traffic has
been constructed in order to avoid
congestion in the parking areas.
In addition new signs displaying

the bank’s Indian head logo in bank
colors of blue and white have also im­
proved the looks of the branch.

Lewis Joins Osceola Bank
D. R. W ubbena, president and
chief executive officer of the Osceola
State Bank & Trust C o., has announ­
ced the election of Forest T. Lewis as
executive vice president.
Mr. Lewis had served as president
of Plaza State Bank in Des Moines
until his recent retirement.


Elmer J. Draker
Elmer J. Draker, 51, died last
month following a sudden illness. He
was executive vice president and a
director of the Hills Bank & Trust Co.

Two Named at Forest City
Two prom otions have been an­
nounced by the Manufacturers Bank
& Trust Co., Forest City, Glen S.
Wilson Jr. to senior vice president,
and Linda K. Morrison to cashier.
Mr. Wilson, formerly vice presi­
dent and cashier, works primarily in
agricultural and commercial lending.
A member of the board, he joined
Manufacturers in 1975 from a bank in
Mrs. Morrison joined the bank’s
bookkeeping department in 1969 and
was named an assistant trust officer
in 1975, her most recent position.


Staff News from Eagle Grove



T h e Bankers of D u b u q u e County have designed
the entire G r o u p I V meeting with y o u in m i n d . . .
River Boat L u n c h e o n . . . P r i m e R i b Dinner . . .
great speakers . . . a n d a sparkling
music a n d c o m e d y

P o d i K jueG bt
Northwestern Banker, May, 1980
Reserve Bank of St. Louis

William T. Krahling has joined the
Security Savings Bank, Eagle Grove,
as a loan officer. He received a BS de­
gree in agricultural business from
Iowa State University in 1971 and
has worked for the FmHA in Musca­
tine and Tipton and most recently
was employed in Jefferson.
Roy Allbaugh, 90, a member of the
bank’s board since 1947, died in late
March. He had announced his retire­
ment as vice president of Security at
the bank’s annual Christmas party
last December. At that time he was
given the title of vice president
emeritus by C. W. Dunn, president.





We've got
Correspondent Banking Services
in the bag.
Whether you need over-line loan
participation, help with collec­
tions, or assistance on compiling investment port­
folios, you can depend on getting it from American
Trust, your full-service correspondent bank.
You can also count on Bernie Miller, our cor­
respondent banker, for a full range of Federal
Reserve System services: inexpensive
and easy procurement of currency
and silver, direct deposits of Federal
checks through an Automatic

Clearing House, and domestic and
foreign wire transfer of funds.
In addition, our Trust Department backs up
Bernie with trust services to enable you to establish
your own bank pension plan, profit-sharing plan
and a wealth of other inflation-fighting programs.
You may even wish to offer these same services to
your own customers. To find out how easily you
provide more services, call Bernie today at

American %TrustO Savings Danl^
The Danl^qf O p p o rtu n ity
T o w n C lo c k Plaza D ub u q u e , Io w a 52001
Phone- 819/582-1841
Federal Reserve Bank of St. Louis

"More banks are
offering their customers
more services
thanks to the help
they're getting from
American Trust. "

Certified Commeirical Lender at a
special ceremony held in conjunction _
with the American Bankers Associ­
ation’s National Credit Conference. ►
* * *


Martin R. An­
derson has joined
the staff at Val­
le y N a t i o n a l
Bank as a trust
officer in the
trust division.
He is a graduate
of Western Mich­
igan University,
Kalamazoo, and M R ANDERSON
the S chool of
Law at Drake University here.
ERVICES for Milford N. [Bud]
Baird, 67, retired senior vice
president at Bankers Trust Com­
pany, who died of a heart attack, were
held last month.
Mr. Baird was born in Billings,
Montana. He lived in Des Moines
more than 50 years and retired from
the bank in 1978. He was a past presi­
dent of the Iowa Mortgage Bankers
Association and was a member of the
Des Moines Mortgage Bankers A sso­
ciation , the B uilding Owners and
M anagers A ssocia tion , the Des
Moines Taxpayers Association, the
Greater Des M oines Chamber of
Commerce and the Rotary Club.
Survivors include his wife, Mary
Lou, two sons and two daughters.
* * *


Herman C. Kilpper, president and
chief executive officer of Bankers
Trust Company,
recently announ­
ced the promot­
ion of Roger F.
Grefe to trust in­
vestment officer.
Prior to jo in ­
ing the bank last
June, Mr. Grefe
was with Merrill,
Lynch, Pierce,
F e n n e r and
Smith for two and a half years, and
with Valley National Bank for two
* * *

Larry Wenzl, president of the First
Federal State Bank, has announced
the promotion of Margaret Bradley to
assistant cashier and head teller, and
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

Roger Snyder to assistant cashier
and assistant office manager.
* * *
Herman C. Kilpper, president, and
Ben Eilders, senior vice president,
Bankers Trust Company, hosted a
luncheon for C. C. Hope, president,
American Bankers Association, in
Des Moines last month.
* * *
Thomas H. Farris, vice presidentcom m ercial loan of the Iow a-D es
Moines National Bank, was named


* * *

Switch transactions for ITS were *
as follows: January, 104,324; Feb­
ruary, 113,266, and March, 127,280,
according to Dale Dooley, ITS director.
* * *

The next credit life licensing school
will be held at the Grimes Building in ’
Des Moines on June 23 and June 24.
Licensing tests will be given on June
25. Details may be obtained by call- ~
ing Cindy Visand at the Iowa Bank­
ers Association.

NABW Groups to Meet May 22-23
HE Iowa groups of the National
Association of Bank Women will
hold their annual state convention
May 22-23 at the Holiday Inn at the
1-80 Amana Interchange. The pro­
gram follows:


Wednesday, May 21
2:00 Early bird registration
3:00 Hospitality suite
Thursday, May 22
8:00 Late registration—coffee
9:15 Annual business session
Salute to the flag
Speaker: Betty Wagner,
NABW regional vice president.
10:00 Communication seminar:
Connie McBurney and Almo
Hawkins, KCCI-TV, channel
8, Des Moines.
Noon Buffet luncheon

1:00 Communication seminar con- v
3:00 Adjourn
6:30 Social hour
7:30 Banquet
Speaker: PaulNadler, Rutgers ^
Entertainment: The Sweet
Friday, May 23
8:00 Prayer breakfast
Speaker: Louis Valbracht
10:00 Morning session
Speaker: Neil Milner, executive vice president, Iowa
Bankers Association.


12:30 Luncheon
Speaker: Mariam McKeever— r
“ Well What Do We Do Now
That W e’re Up Here Flying?’’
Presentation by Amana Corp. +
— Butterflies are Free.

W hen if com es to investing,
ten heads are better than one.
Central National Bank has ten qualified
professionals and their staff to furnish you
with the last word in sophisticated market
information. To discuss when to buy.
What to buy. W hen to sell.
Added to that CNB has a direct line to
world market information with Munifacts,
Telerate, and Bunker Ramo. W e feature
a computerized Fed Fund System to
facilitate efficient Fed Funds transactions.
A nd fast.

Our sophisticated Bond Portfolio
Analysis System is another part of our
total investment service.
W e are also qualified underwriters and
dealers in Iowa Municipal Bonds,
government and money market investments.
Buying or selling, or just getting
information is what our investment
department is all about. If you want ten
pros working for you, call James C. King at
the Central National Bank at (515) 245-7070.

determ ined to do the best fo r you.
‘ X


Central National Bank & Trust Company
Federal Reserve Bank of St. Louis

WDM: 35TH & 1-235/501 E. ARMY POST RD.


Io w a N e w s

Marshalltown Hosts Group 7
HARLES Willey, who has re­
cently been voted as one of the 40
best speakers in
A m e r ic a , w ill
be featured by
Group 7 on W ed­
nesday, May 7,
at the Elmwood
Country Club in
M a rsh a llto w n ,
according to Ron
E. Fenton, presi­
dent of the SecurR. E. FENTON
ity S a v i n g s
bank, Marshalltown, and chairman
of the group.
Golf at the Legion Golf Course will
be available from 9:00 a.m. until 4:00
p.m. Players should pre-register with
Ed Blum, Commercial State Bank
(515) 752-4591.
The formal business meeting will
start at 4:15 p.m. Brief reports will be
made by IBA staff member includ-


Plan Banking School

ing, A1 Tinder of IBIS; Dale Dooley
of ITS; Sam Callahan of IBMC; Neil
Milner, IBA executive vice president,
and Les Olson, IBA president and
president, Toy National Bank, Sioux
A social hour will start at 5:15 p .m .
at poolside at Elm hurst Country
Club. Dinner will follow at 6:30 p.m.
The-evening program will be high­
lighted by Mr. Willey’s talk.

The Iowa School of Banking will be
held at the University of Iowa, Iowa
City, June 15-20., It will again be
sponsored by the Iow a Bankers
Association in conjunction with the
Department of Business Administration.
The school is held over a period of
two years, and the registration fee is
$275, including study material, room
and board. Further information may
be obtained from IBA.



New Quarters Planned for Conrad Bank

Glidden Promotions
Robert H. Van Horn, president,
First National Bank, Glidden, has
announced that J. Douglas Conrad
has been elected executive vice presi­
dent and Doyle R. Walker has been
named vice president.
Doyle Douglas, local realtor and
insurance agent for the First National
Agency, was elected to the bank’s

THE NEW building for the First State Bank, Conrad, w ill be completed by next winter.
o n s t r u c t io n

is underway on

a new 8,252 square foot bank
building for the First State Bank in
Conrad, according to James Molloy,
executive vice president.
The two-level colonial style build­
ing will offer services previously not
available in Conrad. On-premise


C harley W ille y



Voted as one of the 40 best
Speakers in America

Annual M eeting • G roup 7
Elmwood Country Club
Marshalltown, Iowa

W ed n esd ay, M ay 7
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

drive-up and walk-up banking with
ample parking space is planned.
The main banking level will have
five private loan offices, a board
room, large safety deposit vault with
private coupon b ooth s, custom er
service area, seven teller windows,
bookkeeping department and handi­
cap facilities.
The lower level has been designed
for future expansion and includes an
employe lounge and storage area .The
Kirk Gross Co. of Waterloo, who is in
charge of the project, estimates completion in late November or early

New CEO at Van Horne
John R. Hensley has been appoint­
ed as chief executive officer of the Van
Horne Savings Bank. He was prev­
iously with the W illiam s Savings
Bank,where he served in a similar



"A ccepted S a le ! Registers b y Bank
Clerks E v eryw h ere''
I ' o r i n l o r r n n t i o n write

Oakland, Iowa





Let our Vice President of
Investments, Dwaine Stinger,
or Investment Officer Rom a
Kroll show you how their
experience can help you get
fast action in handling Federal
funds transactions, money
transfers, security purchases
and sales.

Gary Stevenson
Vice President


Doug Schmidt
Correspondent Officer

C h oose one o f our services or as many as you need:


You get an accurate, efficient system for
obtaining the best availability of your funds to
help increase the profitability of your bank.

You get an entire department of Trust professionals
to assist you in meeting your client’s needs.


You get the speed and efficiency of the Banks
of Iowa computers, plus the most successful
EFTS/Instant Access processor in the territory.

Y ou get a full range of loan services including
overline and liquidity loans, assistance with your
ag loans, commercial loans and others.

You get a total program for both Master
Charge and Visa that includes card issuing,
processing, corporate cards, account servicing
and assistance with merchant calls. And you get
the geographic advantages of being closer to
your Bank Card Center.


You get our guarantee that whether you need a
specific service, or just an idea or two, First
National is always ready to help.


First National Bank in

MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1980


Io w a N ew s

HE Sunshine Express, a multi­
talented group, will be the big
e n te rta in m e n t
a t t r a c t i o n at
Group 3 in Clear
Lake on Thurs­
day, May 8, ac­
cording to O. Jay
T om son, group
ch a irm a n and
president, C iti­
N ational
Ba n k , C h a rles
Added to the evening entertain­
ment this year will be Johnny Matson
and Mona McCall, a husband and
wife team known for their song and
Registration will be held in the
lobby of the Surf Ballroom starting at
11:30 a.m. A business luncheon will
follow at 12:30 p.m.
Chairman Tomson will open the
formal business session at 1:00 p.m.,
and William B. Hummer from the
Wayne Hummer & Co. investment
firm, Chicago, will be the keynote
speaker. Comments from IB A Presi­
dent Les Olson, IB A Executive Vice
President Neil Milner, and Superin­


Sunshine Express for Group 3

tendent of Banking Tom Huston will
The social hour will start at 5:00
p.m. and the banquet will be at 6:00
p.m. Entertainment will follow, and

A1 Godredsen & his Orchestra will A
play for dancing.
Spouse’s activities will include a *
12:30 p.m. luncheon and style show
at the Holiday Motor Lodge.

Herbert E. S wed burg

tional Bank, Sioux City, according to
Leslie H. Olson, president. Mr. Persinger is vice president of marketing
for Wilson Trailer Company.
Mr. Olson announced the following
prom otions w ithing the bank:
Thom as W . Van D yke to vice
president; Robert S. Grothaus to vice
president and trust officer; Michael
S. Hunter to assistant vice president;
M ary L. Kurth to assistant vice
Helen Teig to assistant
managing officer of the Northside
personnel officer, and Linda Robeson
Mr. Roeper joined the bank as to marketing director.
During the annual meeting, stockcomptroller in September, 1974, after
voted to increase capital in
a long association as a partner with
the accounting firm of P eterson, the bank by $1 million. Mr. Olson
Roeper and King. He was elected reported that in 1979 deposits in­
senior vice president of the bank in creased by 11.7% and total assets
1976, and elected to the Security were up by 3.6% . Annual return on
National Corporation’s board in Jan­ stockholdings over the past 10 years
uary, 1980. He is a graduate of Morn- has been 18.84%.
ingside College.
Mr. Larsen joined the bank in Joins Sioux Center Bank
June, 1979. Previously, he has been
Richard L. DeBoer has joined the
employed by a finance company.
staff of the First National Bank of
Sioux City Promotions
Sioux Center as an instalment loan
representative. Most recently Mr.
Keith A. Roeper has been named
DeBoer was a branch representative
executive vice president of the Secur­ Toy National Promotions
Wilson B. (Bill) Persinger has been at Postal Thrift Loans, Inc. in Sioux
ity National Bank, Sioux City, and
Jeffrey A. Larsen has been named elected to the board of the Toy Na­ City.

Funeral services were held last
month for Herbert E. Swedburg, 69,
who died suddenly at his home. He
was chairman of the First National
Bank, Woodbine.
Following his graduation from the
University of Nebraska, Mr. Swed­
burg served as a municipal bond
salesm an in Omaha. In A u gu st,
1943, he organized the Commercial
State Bank, Clay Center, Neb. In
1950, he joined the National Bank of
Commerce in Lincoln where he served
in the bond and correspondent bank
departments. From January, 1956
until 1959, he served as vice president
of the American National Bank in
Denver. In addition to being chair­
man of the bank in Woodbine, he
served as a director of the First Westroads Bank in Omaha and a director
of Oakland Banshares, holding com­
pany for the Oakland Savings Bank,
Oakland, Iowa.

Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis











Rate Sensitive Asset
And Liability Management

Can you im prove your bank’s earnings
in today’s com petitive environment?
V a lle y ’ s C o r r e s p o n d e n t D iv is io n
would like to share our ideas on rate
sensitive asset and liability m anage­
ment with your bank.
Contact L arry A. Bergem ann, your
C orrespondent Banker at Valley N a­
tional Bank.

Welcome to the Iowa
B ankers Group 6 m eeting
in Des M oines May 20.

Larry A. Bergemann
V ic e P r e s id e n t

(515) 245-6145

Valley National Bank ft
Main O ffice-Sixth and Walnut
Federal Reserve Bank of St. Louis

M em ber FDIC
Northwestern Banker, May, 1980


Io w a N ew s

Washington Promotions

proud o f the
com pany
we keep.

L. T. Heilman, president of the
Washington State Bank, reports that ^
E. D. Morrison Jr. has been named
chairman of the board, and John H. *
Miller as chairman of the executive
Juanita Hering has been named as .
vice president and trust officer.

75th Anniversary
The Miles Savings Bank observed
its 75th anniversary last month by *
inviting 600 area residents to a pork
barbeque, according to Alvin Frahm, !

May, 1980
Acorn P rinting C o ...............................................................106
Am erican Bankers A s s n ........................................................ 3
Am erican Express C o.................................... 3 3 ,3 5 ,3 7 ,3 9
Am erican N at’l. Bk. & Tr. C o., Chicago ........................42
Am erican N at’ l. Bk. & Tr. C o., St. Paul ....................... 65
Am erican Trust & Savings, Dubuque .......................... 103
A ssociates Com m ercial ................................................... 17




Banco Financial ................................................................ 53
BankersTr. C o., Des M oines ........................................... 96
Banks of Iowa C om puter Service .............................. 98-99
B ism arck Banks .......................................................... . 79
Brandt, In c ........................................................................11-12

M any o f the top livestock operators in the cou n try are
d o in g business in St. Joseph, M issouri. A t the St. Joe
stockyards. A n d at the First Stock Yards Bank.
T h e y like the St. Joe yards because it ’s a p u b lic
m arket w here the com m ission agents are exp erien ced
T h e y com e to the First Stock Yards Bank for the same
reason. It’s a bank that makes m illion s o f dollars w orth
o f agricultural and livestock loans each year. I t ’s a
bank w hose em ployees k n ow agriculture and livestock
business inside out. It’s a corresp on d en t bank w hose
exp erien ce and in volvem en t in ag fin a n cin g is evi­
d en ced by its very location . . . the first flo o r o f the
L ivestock E xchange B u ild in g in the heart o f the
D iscover what the top operators have fo u n d —the First
Stock Yards Bank is a g o o d place to d o g o o d business.

Central Bank of Denver ............................................... 86-87
Central N at’l. B k .& T r. C o., Des M oines ................. 105
C itico rp Travelers Cheques ............................................... 9
C ontinental Bank, C hicago ............................................... 4
C ontrol-O -Fax ...................................................................100


Daktronics ............................................................................. 8 y
Dawson Hail Ins. C o ...............................................................7
Douglas Guardian W arehouse C o .....................................10
Drovers Bank of Chicago ............................................... 101 *
First Banks of St. Joseph .........................................94,110
First N at’ l. Bk. of the Black H ills .................................. 66
First N at’ l. Bk., D e n v e r......................................................85
First N at’ l. B k ., Kansas C ity ........................................... 25
First N at’ l. Bk., L in co ln ....................................................93 y
First Nat’ l. Bk., M inneapolis ........................................... 50
First N at’ l. Bk., Omaha ....................................................91
First N at’ l. Bk., St. Paul ....................................................57
First N at’ l. Bk., St. Paul ( B o n d s ) .....................................60
First N at’ l. Bk., S ioux C ity ............................................. 107 C i
First N at’ l. Bk., S ioux Falls ............................................. 72
G ro ssC o., Kirk, W aterloo ............................................. 111
Group Four, IBA .............................................................. 102
Group Seven, IBA ............................................................ 106
H eller, W alter E.......................................................................21


Iowa Bkrs. Ins. & Services ...........................................113
lowa-Des M oines N at’l., B k........................................... 114
Kooker, Earl, Spencer


LaSalle N at’ l. B k., Chicago

............................................. 47

M anufacturers Hanover B k .................................................26
M arquette N at’ l. B k., M inneapolis ..........................54-55
M erchants N at’l. B k., Cedar Rapids ................................ 2
M idland N at’ l. B k., M inneapolis .....................................61
M o s le rS a fe C o ......................................................................19
Nat’l. Bk. of Com m erce, Lin co ln .....................................95
N at’l. Blvd. Bk., Chicago ..................................................45
N orthw estern Bell .............................................................. 23
N orthw estern N at’l. B k., M inneapolis ................. 62,77
N orthw estern N at’l. B k., S ioux C ity .............................. 69
N orthw estern N at’l. B k., S ioux Falls ............................ 71

Where helping you comes first.




Omaha N at’l. B k .............................................................. 58-59

St. Joseph, M issouri 64504 • 816-238-0651
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis


Toy N at’l. Bk., S io u x C ity ................................................. 68
United M issouri Bk. of Kansas C ity ............................83
U.S. N at’l. B k., O m a h a ....................................................... 88 y

Call Bob Azelton.
A ffilia te of F irst M id w e s t B a ncorp, Inc.

SLTW arehouse C o., St. Louis .......................................41
Security N at’l. B k., S ioux C i t y ......................................... 70

M em b er F.D .I.C .

Valley N at’ l. B k., Des M oines .......................................109
V a n W a ge n en & C o ., G .D ......................................................6
Zion F irs t N at’l. B k., Salt Lake C ity ..............................75


> ^ ^ ^ \ 0 ° \ 0^ V < e^ V v°° >

in stitu tio n s have used
K irk Gross Co. services!
Do they know som ething
you don’t?
Kirk Gross Co. has a solid reputation in Iowa
for designing new financial institutions and
remodeling present ones. If you are thinking
about a new facility, put the responsibility and
worrying in the hands of the TURN KEY
professionals. We keep up on the latest ideas
on planning, designing, construction and
furnishings. That’s why we have completed
more than 150 projects since 1971. The best
part of this unequaled record is that so many
are repeat, satisfied customers. Let Kirk Gross
Co. explain how our complete TURN KEY
program will save you time and money.
Federal Reserve Bank of St. Louis

If you’d like to know what other bankers know
about Kirk Gross Co., call at your earliest op­
portunity. (How about right Now! Phone

110 East 7th Street
Waterloo, Iowa 50705


Io w a N e w s

WINNER of Hawkeye Bancorporation’s “ Best Bank Possible” award for 1979 performance was George E. Maher (right), pres. & chmn. of
Houghton State Bank in Red Oak, shown receiving award from Hawkeye Pres. Paul Dunlap. RIGHT— Myron Weil, chm n., 1st. Nat’l.,
C linton; Steve Jones, v.p., Hawkeye headquarters, Des Moines; Dr. Douglas Austin, University of Toledo, and Bob Murray, Hawkeye sr.
v.p. & controller.

At Hawkeye Annual Meeting

Lower Rates Forecast by Year-end
£( I NFLATION is being treated by
I this administration with bandaids,” according to Dr. Douglas Aus­
tin, who addressed the annual meet­
ing o f Haw keye B ancorporation
stockholders in Des M oines last
month. He is chairman and professor
in the departm ent of Finance,
College of Business Administration,
U niversity o f T oledo (O hio). He
stated that the theory used the past
30 years in tinkering with the econ­
omy has been no good.
“ This inflation is imported,” he
reminded, “ via inflated oil shipment
costs. It took seven years to get an
energy policy and it may take 10
years to whip inflation.”
Dr. Austin said the recession look­
ed for in late ’79 or early ’80 is now
underway and will result eventually
in reduction of interest rates with
prime at 10-11, inflation at 10-12 and
m ortgage rates at 10-12 in six
months. Oil prices will be up another
10-15% by year-end. The grain em­
bargo on Russia is really costing the
Am erican farm ers, who will have
better production by year-end, but
lower prices again. Unemployment is
now being noticed in ag areas.
He cautioned that wage and price
controls work only under a long-term
plan and they change the philosophy
and direction of doing business—and
are no good!
In regard to the recently enacted
Omnibus Banking Bill, which among
other things gives expanded powers
to thrifts, Dr. Austin warned, ‘‘ In
this period (ahead) you and your
thrift competitors will be developing
programs to compete. Thrifts will
start stealing your personnel so you’ll
Northwestern Banker, May, 1980
Federal Reserve Bank of St. Louis

have to take steps to keep and train
In response to a question from the
floor about the future for the 14,000
com m ercial banks in the United
States, Dr. Austin said, ‘ ‘We don’t
need more than 200 banking organi­
zations. I see banks down to about
10,000 by 2000 A.D . Estate taxes and
the environment will drive more out
than competition. In 20 years, 90% of
bank deposits will be in the hands of
10% of the banks.”
Hawkeye Bancorporation Presi­
dent Paul D. Dunlap, Des Moines,

gave a brief report on corporation
performance for the year. He said the
holding company has ‘ ‘$600 million in
loans to customers, all individuals
and business within the trade terri­
tory of our local banks, and 99% of
them are seen every day by our staffs.
One of our loan officers knows each
customer personally. Our loan losses
are about half of the rate for the
national average. Capital accounts of
Iowa banks are about 14% greater
than the national average and capital
of our banks is better than the Iowa
Mr. Dunlap reported that the 22
Hawkeye banks at year-end had
assets of $929 million and deposits of
$788 million.

Complete Hawkeye Bancorp Training School

SEVERAL Iowa bankers recently completed the Hawkeye Bancorporation Training School
held in Des Moines. They are— Seated from left: Randy Carlson, Clay County Nat’l. Bank,
Spencer; Dan Dunlap, American State Bank, Mason City; Mike Ralph, Credit Card Center,
Des Moines; Tom Bacan, Mount Pleasant Bank & Trust; Dennis Weiss, Second National,
Eldora; Bob DeWaay, (asst, leader) First Federal State Bank, Des Moines, and John
Hendren, National Bank of W ashington. Standing from left: Annette Shaw, Hawkeye
Investment Management, Des Moines; Mike Newland, Lake City State Bank; Dale Torpey,
(leader) National Bank of W ashington; John Metz, First Federal State Bank, Des Moines;
Steve Shepherd, Camanche State Bank; Cindy Vanderpol, First State Bank, Sheriton; Fran
Christianson, Farmers & Merchants, Lake M ills; Marjorie Strike, Waukon State; Brent
Taylor, State Bank & Trust, Council B luffs; Lynn Ellis, Houghton State Bank, and Doug
Schellinger, Morningside State Bank, Sioux City.

Iowa Bankers Benefit Plan.
A complete package
of Health coverages
designed by bankers
for bankers.

The Iowa Bankers
Benefit Plan was developed
by Iowa Bankers Insur­
ance and Services for the
sole purpose of insuring
your employees.
Coverages that may be
included are Health, Dental,
and Prescription Drugs. Ev­
erything you need wrapped
up in one complete package.
IBIS also has attractive
Group Life and Disability
programs. Designed by
bankers for bankers.

Call Ron Dougherty and
find out more about how the
Iowa Bankers Benefit Plan
can be tailor-made for your
bank, your employees. With
Ron’s knowledge and experi­
ence in the banking profes­
sion, IBIS can offer the most
personalized insurance
coverages available. The kind
you need. Available only to
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Iowa Bankers Insurance Services, Inc.,
430 Liberty Building, Des Moines, Iowa 50308 (515)286-4300
Call our toll FREE WATS number 1-800-532-1432

The right combination.
Federal Reserve Bank of St. Louis

The only bank
weworkharder for
thanours is


banking connections. Sophisticated
bankcard services. And sheer
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For any correspondent need you
might have — large or small — you
can count on results and a lot of
help for your money from the hardest
working correspondent bank in Iowa.

Promises don’t deliver results. Hard
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That’ s why more than 4 0 0 banks
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But hard work is just part of it.
W e back that up with comprehensive
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n a t io n a l


b a n k

You can get a lot o f help for your money.
Member FDIC An Affiliate of Northwest Bancorporation (B A N C O )
7th & Walnut, Des Moines, Iowa 5 0 3 0 4 (5 1 5 ) 2 45 -3 13 1

George Milligan

Bob Buenneke
Federal Reserve Bank of St. Louis

Bernie Kersey

Dorothea Wolfe

Voldy Vanags

Lance Davenport

John Rigler

© 1980 lowa-Des Moines National Bank

Garry Frandson