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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 https://fraser.stlouisfed.org 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 Senior Vice President Vice President Assistant Vice President Assistant Vice President Assistant Vice President (319) 398-4313 (319) 398-4320 (319) 398-4306 (319)' 398-4314 (319) 398-4217 OUR PEOPLE MAKE IT WORK Merchants National Bank Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOW A’ BANK 3 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 yf Association, 1120 Connecticut Ave., N.W., Washington, D.C. à 20036, (202)467-4187. S B /- AM ERICAS FULL SERVICE BANKERS 11980 American Bankers Association https://fraser.stlouisfed.org 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 *<L 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 BANK Continental Illinois National Bank and Trust Company of Chicago 231 South LaSalle Street, Chicago, Illinois 60693 Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis , », 4 5 « « i< MAY 1980 • 87th Year • No. 1400 fcT c OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ©5 </> .E Ö a = ON TH E COVER 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 |S %« Q . © 1 _~C (U *0 c ffl OTHER FEATURES Í5; sO 18 A look at the hog m arket X O c • re r~ 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 V) ©2 36 Cost of co m p lian ce z o United Bank of Denver sets its price tag at $12 m illion O o 5 Z ;> CO N V E N TIO N SECTIO NS DEPARTM ENTS 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 ° -< ^5 J o 23 go o o Q O NORTHWESTERN BANKER 30615th Street, Des M oines, Io w a 50309 > Phone (515) 244-8163 Publisher Editor Business Manager Associate Editor Malcolm K. Freeland Ben Haller, Jr. Mike Freeland Deborah Peck Auditor 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jorthwestern Banker, May, 1980 6 \ r 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~ ~ SINGLE INTEREST INSURANCE For Installm ent Loans r BLANKET SINGLE INTEREST 'n INDIVIDUAL SINGLE INTEREST PROGRAMS • Autom ated • Manual v .... ; I___ J PROTECT YOUR LOANS AGAINST THO SE PHYSICAL DAMAGE LOSSES. CONTACT US ABOUT A PROGRAM FOR YOUR BANK. call or write: T K 7 G.D. VAN WAGENEN CO. 1678 Northwestern Bank Bldg. Minneapolis, MN 55402 (612) 333-2261 V______ _______ J https://fraser.stlouisfed.org 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 , Boulder. 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 , Boulder. 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, Chicago. 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 , Muncie. 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 , Charleston. Nov. 19-20— IBA 35th Annual Bank Man agement Conference, Holiday Inn, De catur. Iowa: 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 Okoboji. S ept. 21-23 — 94th A n n u a l C o n v e n tio n , Civic Center, Des Moines. Minnesota: 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. Montana: 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, Lewistown. May 9— MBA Gp. 1, Marias Valley Golf Club, Shelby. May 10— MBA Gps. 3A and 3B, Outlaw Inn, Kalispell. 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 , Colo. Nebraska: 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. Colorado: June 25-27— NDBA Upper Midwest A gricul June 5-7— Colorado Bankers Association tural Credit Conference, Medora. 79th Annual Convention, Broadmoor Ho Sept. 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 Illinois: 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. Wyoming: 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. Normal. 7 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 ° ° INSURANCE \o o O °o We welcome Dennis and Norm to our staff. -__ 1 L 20 SOUTH EIGHT STREET BOX 1820 FARGO, ND 58107 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 8 r DAKIRONICS L ~\ 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 munications. P IMPACT Official Supplier of Electronic Scoreboards to the 1980 Olympic Winter Games m o u n t a in GROVE NATIONAL BANK TIME AND TEMPERATURE DISPLAYS 100% s o lid state. C ustom d e s ig n e d . A ttach e d to yo ur b u ild in g o r free sta n d in g . Daktronics has taken the service expense out of message displays with 100% solid state electronics. Our engineers will custom design a display to enhance the architecture of your building and will provide a color drawing and quote at no cost. Call or write for details today. I> DAKTRONICS, INC. Box 299 Brookings, SD 57006 Phone 605-692-6145 https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis DAKTRONICS INC. 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 month. Mr. Howard is a member of the L- D- HOWARD correspondent division with calling responsibilities in M issouri. He J 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 January. V 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. A 9 SERIES i960 CITICORP © W IL L PAY TO m i L M S M O F ... WMENC0UNTER5JCNE SUBJECT TO TM£ T< IS m THE UPPER UEFT CORME» fen ty Dollars Currency OATC I i:aooooGipaoi: ho?h? CWAIftMAR. CtTtCOftrfsOUr O8UÔ0R) MEW YORK, N.Y., U. S.A. The new Citicorp Travelers Check. « 3 V 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRAVELERS CHECKS Northwestern Banker, May, 1980 10 Douglas-Guardian tailors better inventory loan and floor plan packages fo r... lending institutions distributors 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 tions division, 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. à ) 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, president. processors manufacturers 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 TOTAL INVENTORY CONTROL NATIONWIDE Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. H. YOUNGBERG L.E. SIMMS 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 bank. 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. * i y A 1 r * ^ 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 regulators. 3. Failure of banks to disclose or explain terms of an account when it is opened. 4. Failure to disclose delayed availability of funds deposited by check. 5. Changing rules on savings and checking accounts without notifying customers. Commercial Lenders Name New ABA Division Heads v * « i / , 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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The decorative, clear a crylic magazine cover provides added security! Various coin chutes, delivery cups, trap door and envelope attachments are also available. And there are teller machine interfacing opportunities! The Model 580 does a lot more than dispense coins. And it’s all done the Brandt, Inc. way! The better way — and that’s our side of the coin. Brandt, Inc. Watertown, Wl 53094 Brandt® Cashier® Countess® / i I ; I I Tails: High speed performance from a high volume sorter/counter 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 coin sorter provides both — plus ease of operation. Simply place coin into the machine and switch the unit on. The 952 immediately responds! It sorts, counts, totals and deposits coins into bags or coin drawers. All done with rapid precision. And full sixcoin capability too! For added convenience, the elec tronic totalizer displays accumulations in large, easy-to-read digits. And autom atic sensor elim inates coin back-up. The 952’s coordinated styling satis fies both function and appearance! The attractive Desert Tan finish https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis w com plem ents a va rie ty of work settings. When you add it all up, the 952 is the total sorter/counter! Whether you call heads or tails (or both), with Brandt, Inc. you always come up a winner! Brandt, Inc. has a better way! Brandt B ra n d t, Inc. W a te rto w n , W l 53094 Brandt® C ashier® C ountess® Pete C astner Elm Grove, W isconsin 414-782-4890 I’m your Brandt, Inc. authorized District Manager for Southeastern Wisconsin, Northern Wisconsin and Upper Michigan. Quality products and an extensive service network are just two reasons to rely on Brandt, Inc. for your money handling needs. Call me for the whole story on our new product lines for the 80’s. 13 ABA President Visits Rural America By BEN HALLER, JR. Editor 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. W 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 listening. 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: https://fraser.stlouisfed.org 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 14 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 financing. 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. https://fraser.stlouisfed.org 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 13%.) A 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 porations? 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 RURAL AM ERICA . . . (Turn to page 87, please) 15 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. Firstperson* Firstbank. First National Bank in St. Louis A First Union Bank 510 Locust Street • St. Louis, Missouri 63101 • (314) 342-6967 • Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 16 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 service. 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. T https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis 17 Northwestern Bankers, M eet T h e Associates Money-For-Business Team. People M brth Knowing. 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 . F o r o v e r sixty y e a rs, o u r fin a n c in g p r o f e s sion als h a v e b e e n h e lp in g b u sin e ss p e o p le — m a n u fa c tu r e r s , p r o c e s s o r s , w h o le s a le r s — a cq u ir e th e w o r k in g ca p ita l th e y n e e d f o r s o u n d g r o w th a n d e x p a n s io n . T h r o u g h T h e A s s o c ia t e s ’ p a r t ic ip a t io n p r o g r a m s , w e h a v e h e lp e d b a n k e r s m a in ta in a n d e n h a n c e th e ir r e la t io n s h ip w ith th e ir c u sto m e r s. L o a n s a re fr e q u e n t ly m a d e to b a n k c u s to m e r s that w o u ld n o t o r d in a r ily b e p o s sib le w h e n th e b a n k is o p e r a t in g in d e p e n d e n t ly . W ith T h e A s s o c ia te s M o n e y F o r-B u sin e ss T e a m , b a n k e r s a re a ss u re d th e clo se st b u s in e s s m a n -to -b u s in e s s m a n c o o p e r a t io n , c o m b i n e d w ith d e cisiv e n e ss a n d p r o fe s s io n a lis m . F o r in fo r m a tio n a b o u t o u r b a n k e r s ’ p a r tic ip a tio n p r o g r a m s , call T h e A ss o cia te s , B u sin ess L o a n D iv ision . P e o p le w orth k n o w in g . Associates Business Loans 55 E. Monroe Street- -Suite 3600 Chicago, IL 60603 ® (312) 781-5800 Business Loan Offices in Boston, Charlotte, Cherry Hill, NJ, Chicago, Dallas, Los Angeles, Miami, Mobile, New York, Tulsa Associates Commercial Corporation is a subsidiary of Associates Corporation of North America, a Gulf + Western Company https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis 18 A Look At the Hog Market By HAROLD HEINOLD 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. f 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 sheets. 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 pounds. I W hat’ s New RANDT, Inc., of Watertown, B 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 machine. 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 T MODEL 873, the new currency processing system from Brandt, Inc., counts both quantity and total value of currency and cuements. https://fraser.stlouisfed.org 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 HOG MARKET . . . (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 classifications. 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. 19 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, wall and ceiling panels, gun ports and other protective devices. Mosler also offers you all the professional and technical assistance you need in selecting and installing your bulletresistive equipment almost anywhere in the world. 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 1980 Anti-Crime Bureau schedule o f programs and our Bullet-Resistive Equipment Brochure. Q u ality People. Q u ality Products. M osler An American-Standard Company H am ilton, O hio 45012 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 20 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, v.p.-inv. At Harris Bank Conference Inflation W ill Drop to 10% in 6 M onths SIGNIFICANT downturn in the By BEN HALLER, JR. economy is underway, according Editor 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 down. • 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 sight. 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 Hoover that an incumbent president Bank was Jerry H. Pearson, v.p. A https://fraser.stlouisfed.org 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 courts. □ r. i 21 FINANCIAL FUEL FROM HELLER The difference between what your customer wants to borrow... and you want to lend. When a customer wants to borrow more than you’re willing to lend, a bank/Heller participation loan can serve you both. Very simply, your bank funds a portion of the loan; Heller provides the balance up to your customer’s full borrowing capacity on a secured basis. Heller does all administrative work. Your bank profits by continuing to render all other bank services to the customer. Through participations, banks of all sizes are benefiting from Heller’s more than 60 years of experience. When you want the comfort of a secured loan without the administrative burden of handling it, tap Financial Fuel from Heller. It’s the resourceful banker’s resource. HELLER Financial Services ______________________________________________________________________ _____________________________________________________________ "Financial Fuel from Heller" is a service mark of W alter E. Heller & Company. W alter E. Heller & Com pany 105 W. Adams St., Chicago, III. 60603 • New York • Boston • Philadelphia • Baltimore • Syracuse • Minneapolis • Detroit Kansas City • Denver • Atlanta • Charlotte • Miami • Birmingham • Columbia, S.C. • New Orleans • Houston • Dallas • San Antonio • Phoenix • Tucson Albuquerque • El Paso • Salt Lake City • Los Angeles • San Francisco • Irvine, CA • Portland • Seattle • Spokane • San Juan, P.R. Heller services also available in Canada and twenty one other countries around the world. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 22 G innie M ae Losses C lose O hio S&L PECULATION in Ginnie Mae S 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 securities as those guaranteed by the https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal 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 department. 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 embezzlement. 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 risk. “ 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. 23 Long-distance. Sometimes it's better than being there. Do business over the phone and take a big wait off your mind. Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 24 Central N a tl., C hicago, G ets $12 M illio n Capital Infusion from C itico rp , N .Y . National Chicago Cor C ENTRAL 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 J. W. SMART 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 https://fraser.stlouisfed.org 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 business. 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 Company. 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 tion. 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. 25 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J jlp P x r A&h Northwestern Banker, May, 1980 26 ManufacturersHanover Commercial Corporation announcesanew regional office in Chicago serving correspondents throughoutthe Midwest. Contact: Richard N. Lovett Jr. VP. and Regional Manager 100 South Wacker Drive Chicago, Illinois 60606 Tel. (312) 346-5405 MANUFACTURERS HANOVER COM M ERCIAL CORPORATION It’s a capital source. Atlanta • Charlotte • Dallas • Los Angeles • New York Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 What Omnibus Bill Means to Bankers 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 ABA: D 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. https://fraser.stlouisfed.org 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 posits. 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 OMNIBUS BILL . . . (Turn to page 42, please) Northwestern Banker, May, 7980 28 Banking Leader S a y s: ‘ *Magnitude of WILLIS W. ALEXANDER unmatched since A N orth w estern B an k e r interview with WILLIS W. ALEXANDER 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 relations. 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 legislation: I https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis GERALD M. LOWRIE and 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. A 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? A (Alexander) I sense that we have an uncompleted ■mission in terms of usury. This was a figure some- ~ ^ \ r 29 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? Q (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 Q 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 tionally? (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 thousands o f additional depository institutions, spawns A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GERALD M. LOWRIE 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 ment? Q (Alexander) I think that would require a psycho lo g i c a l change in the Fed staff that would take generations. (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 A Northwestern Banker, May, 1980 30 (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 A 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 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 https://fraser.stlouisfed.org 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 law. 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. A “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 Q ■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?” y (Alexander) Let me say, initially, that when this A ■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 „ 1 J 31 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? Q (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.” A Getting back to the Omnibus Bill itself, Willis, Q ■how do you compare it to any previous banking legislation? https://fraser.stlouisfed.org 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. A 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? Q (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 A “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 32 Financial superm arkets of the 8 0 s W ritten Especially for T he N orthwestern B an ker By JOH N E. DANCEW ICZ 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. C https://fraser.stlouisfed.org 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. 33 American Express doesn’t take holidays. We’re there w hen your custom ers need us. Whether it’s Easter in Miami Beach or Dominion Day in Montreal, your customers can find help if their travelers cheques are lost or stolen. Because by simply calling us tolbfree, 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 balance o f their refund. American Express® Travelers Cheques. Because our refund system never takes a day off, your customers can get refunds any day o f the year. American Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 34 “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. https://fraser.stlouisfed.org 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 industry. 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 transaction. 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 FINANCIAL SUPERMARKETS . . . (Turn to page 42, please) » American Express 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 balance o f their refund. American Express® Travelers Cheques. Because our refund system doesn’t go home at 5 o ’clock, your customers can get refunds around the clock. American Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 36 United Bank of Denver reports: Cost of compliance . By HAROLD R. SMETHILLS 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 summary. O Methodology 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: https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis Direct Labor Cost Policy and procedure form ulation necessary to interpret and implement government regulations O fficer/ Manager labor cost Non-Officer labor cost Preparation of periodic reports TOTAL DIRECT LABOR COST Project Development, Data Processing Services Other Direct Cost (Examination fees, assessments, audits, printing, materials, com m unications, etc.) TOTAL DIRECT COST Indirect Cost (48% of Total Direct Cost) TOTAL DIRECT AND INDIRECT COST Earnings on Reserves ($55 m illion at 11%) TOTAL COST OF COMPLIANCE WITH GOVERNMENT REGULATIONS 585,000 1,275,000 $ 1,860,000 194,000 $ 2,054,000 92,000 $ 2,046,000 $ 4,192,000 2,012,000 $ 6,204,000 6,050,000 $12,254,000 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 burdensome. 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 compliance. Officer/manager time accounted for about a third of the labor cost. It appears that officer/managers may be 37 Am erican Express doesn’t take weekends off. We’re there w hen your custom ers need us. Whether it’s Sunday in California or Dimanche in Quebec, 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 balance o f their refund. American Express® Travelers Cheques. Because our refund system doesn’t take naps on Saturdays or Sundays, your customers can get refunds v ffR any day o f the week. ■ exesess American Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38 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 Funds. 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 made. • 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. v ^ * J f 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: 4. 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. 3. Exempt the tax exempt assets ous public offering on March 14. to bona fide personal trusts, pension, In addition, the board changed the of money 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 funds. 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 https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis Am erican Express is there when • your custom ers I need us. Because... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 OMNIBUS BILL . . . (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. Truth-in-Lending 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 threatened. • National banks can invest in the stock of FDIC-insured banks owned exclusively by other banks. • 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. FINANCIAL SUPERMARKETS . . . (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 dramatic. □ “ 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 market. Corporate financial consulting has emerged as a major service commodity sought by corporate financial Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 SLT can help you down the middle road. In periods of tight money, lending policies become more selective. Yet middle-sized company borrowing needs become greater than ever. SLT has a solution. We can set up a collateral control program for your bank that enables you to make safe, high yield working capital loans that will satisfy your customer's needs, Call or write SLT SLT WAREHOUSE COMPANY today. Well ride along with you. P.O. Box 2 4 2 , St. Louis, Mo. 631B6 • 3 1 4 /2 4 1 -9 7 5 0 • Offices in M ajor Cities N A T IO N W ID E C O L L A T E R A L C O N T R O L S E R V IC E S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 potential. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G. WEIR President J. D. LEMMERMAN First Vice Pres. J. A. FITCH Second Vice Pres. C. N. FINSON Treasurer 89th Annual Illinois Bankers Association Convention June 5-7 Stouffer’s Riverfront Towers St. Louis, Mo. W. J. HOCTER 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: R 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 Minnesota. 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- (pupi F. H. SCHULTZ L. E. GUNDERSON https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. G. SISLER D. BRINKLEY Northwestern Banker, May, 1980 44 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. H. A. KISSINGER P. S. NADLER 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 T. M. ROCHFORD D. R. LOVETT Champaign. □ 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. T Chicago 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 https://fraser.stlouisfed.org 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 ative. 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 officer. 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 president. 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 45 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. m NATIONAL BOULEVARD BANK OF CHICAGO The bank for the New Downtown 400-410 N, MICHIGAN AVENUE, CHICAGO, ILLINOIS 60611 • ONE ILLINOIS CENTER, CHICAGO, ILLINOIS 60601 • (312) 836-6500 MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 46 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- M. C. YWANAUSKAS P. J. HUBER 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 chairman. Mr. Holland now will have the title https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis t 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. T personnel officer and Emil G. Larsen Jr. as assistant cashier, teller operations. 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. ' * * ~ 47 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 services. 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 LaSalle National Bank 135 South LaSalle Street • Chicago, Illinois 60690 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Correspondent Bank Division Hal Sauer (312)443-2754 Dick Brown (312)443-2752 Northwestern Banker, May, 1980 48 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 By BEN HALLER, JR. Editor 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 ture. 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 A 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 quet. 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 mouth. 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 paign. Mr. Lemmerman would succeed Guy Weir, chairman and president, Chicago City Bank and Trust C o., as IBA president. □ I B A G R O U P O F F IC E R S 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 ., Chicago. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Illinois News 49 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50 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 https://fraser.stlouisfed.org 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 51 Minnesota 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 department. Mr. B a r n e tt joined First Bank Willmar in 1977 R. BARNETT 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 * u 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 staff. https://fraser.stlouisfed.org 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 Minnesota. 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 1976. 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 1979. 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 C 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 52 &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 iary. 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 property. In detailing the formation of the subsidiary, Mr. Babcock also an nounced the election of three vice presidents. Carl E. Carlson has join- F M. C. BABCOCK C. E. CARLSON 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- R. C. ECKMANN F. P. PHILLIPS Northwestern Banker, May, 1980 https://fraser.stlouisfed.org 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 ficer. 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 R. N. BERG B. L. GRAHAM 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, Minneapolis. 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 pany. f <*• <. * * * Reginald F. Kroskin, vice presi dent-commercial lending division C of M idland N a tional Bank of M inneapolis, a ir 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 R> F' KR0SK|N 4 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 53 ONE W AY OR ANOTHER, W E CAN LEAD YOUR CLIENTS TO W ORKING CAPITAL 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 BÄiCO FINANCIAL CORPORATION LEASE NOOTHWESTJNC. Affiliated with Northwest Bancorporation BAnco An Affiliate of Northwest Bancorporation https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis M e m ber FDIC Miltr 55 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56 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 tive. in the Minneapo A graduate of the University of lis office. His job Iowa, Mr. Webb has a bachelor’s de responsibilities gree in business administration. include in stitu * * * tional sales. Most recently Mr. Herman was American National Bank & Trust execu tive vice J. HERMAN Company, 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 S. HASTAD 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 https://fraser.stlouisfed.org 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 4 officer. 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 1978. 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. * * * A 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 S. FRIEDRICHS R. PRIEBE W. BEHRENBRINKER T. M. MITCH 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 G. KUGLIN 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. Interested? 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AgCo / The Omaha National Banl^ Subsidiary of Omaha National Corporation 17th and Farnam — Omaha, Nebraska 68102 Member FDIC 60 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 R. J. VERKENNES R. DE NARDO M. KRECH 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 D. BUTTERWICK 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, president. Mr. Merz is a graduate of St. Johns University receiving a BS degree in 1972. He had been as sociated with the G- T- MERZ 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 branch. 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. president. Mr. Kranz was formerly an oper K. L. KRANZ 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. First # These fixed income securities are available with maturities from one day to 30 years. Bank Saint Paul A Full Service Bank Northwestern Banker, May, 1980 https://fraser.stlouisfed.org 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 A- HEMNESS became a loan officer. A LOT OF SMART BANKERS ARE AFTER THIS TEAM S NUMBER The 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 W E RE BIG ENOUGH TO KNOW HOW AND SMALL ENOUGH TO KNOW YOU. *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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 62 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. NORTHWESTERN We’re on yoursjde, HI NATIONAL BANK 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Of Minneapolis Member FDIC 63 88th Annual South Dakota Bankers Association Convention H. E. OLSON 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: A X A Sunday, May 11 V E. ZUMWALT W. FREUND https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.M. 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. P.M. 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 64 South Dakota News Tuesday, May 13 A.M. L. E. GUNDERSON A. HOLST y 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 prise.” 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. Chicago First National Bank: Jerome R. Wagner, loan officer. Lincoln First National Bank: Mark Za Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * y * + ^ * P.M. 2:00 General Session continues. Dr. Joyce Brothers, columnist, psychologist and author—“ Unlocking Your Mental Powers.” v 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. □ J. BROTHERS T 1 back, correspondent officer. H olm es, Bill A d d in gton and Jim Kammerer. 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 resentative. Omaha Minneapolis Marquette National Bank: Dick First National Bank: J. W m . Independent banks face someveryreal threats totheirsurvivalinthe80's. 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 (612)298-6000 The Independent Bank’s C orrespondent Partner. •LL,nit '“ 1 mow -32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis k' _ Ì muK L JdJi' unülJ j i m i w w n a t io n lf © r RSOVtATWr« 66 South Dakota News Serving the Black Hills Henry, vice president-marketing. *1 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 representative. < First National Bank: James T. Gowan, vice president; Donald R. Lindeman and Bruce Hebei, assistand vice presidents. v 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 officer. ; 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 cer. Toy National Bank: Rich Breyfogle and Stan Fredericks, vice presi dents. 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 resentatives. South Dakota Bankers Assn. Chiles, H eider & Com pany, Omaha: Jeffrey R. Moran. ^ Daktronics, Inc., Brookings: E . H . ^ “ Bud” Weisser, district sales man ager. ^ 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis An A ffiliate of N orthw est Bancorporation f= M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N O M U W D aw son Hail Insurance C o., Fargo: James Dawson, Lyle Askerooth and Dennis Christofferson. \ ITT Life Insurance Corporation, Minneapolis: Elmer Diedtrick. j! Mosler Safe Company, Hamilton, Ohio: Larry Odegard, sales repre sentative. ~ -- I | | | ^ | a| llly » U United States Check Book Com pany, Omaha: Ed Batchelder, sales manager, and Wayne Kincaid. South Dakota News 67 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 By MALCOLM FREELAND Publisher 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. Markets 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.” Basics 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 68 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. □ * HOG MARKET . . . (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 pork. 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 m - „ ♦- , - ^ mf Banking on Seeing You in the Future AT THE South Dakota Bankers C onvention May 12-13 — Rapid City V Rich Breyfogle m m Stan Fredricks m m m m m m TOY NATIONAL BANK □ SIOUX CITY, IOWA 51102 Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis South Dakota News 69 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 developments. recent 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 founded. 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 By GLENN H. WALTNER President S.D. Bankers Association President The First National Bank Freeman 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 G. H. WALTNER 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 W 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 Banco https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 70 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. r 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 k. 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. ^ * 14 „ * ^ * v * L * ■> * «- SECURITY N A TIO N A L RANK 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 https://fraser.stlouisfed.org 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 dent. Promotions in cluded Kirk Dean to vice president and branch a d m in is tr a to r at the main office, K. DEAN 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. 71 NW National, Sioux Falls Announces Appointments C. 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 D. F. WANIATA R. S. FENN 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 4 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 É È M. KENNEDY » ta P. CAPPA 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 branch. 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 Fourche. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern K IK S MEMBER F D Sioux Falls— Six Convenient Locations Brookings, Dell Rapids. Lake Preston, Madison, Huron, Gregory, Chamberlain, Parker, Springfield Northwestern Banker, May, 1980 72 South Dakota News D. F. MILLER P. R. WARING manager at the Brookings branch. Patricia R. Waring, mortgage loan officer at the main office, was named assistant manager of the Colonial branch. W ell see you at the convention. E. A. MONTGOMERY M. J. EVANSON D. B. BUTTERWICK E. C. HOHMAN 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 https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis M. R. SYRING O. A. GROVE V. P. RIPLEY 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 branch. 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 R. E. SCHULTE 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 branch. 73 sity of Richmond, Va., with a BS degree in business administration marketing. 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: T Thursday, May 15 Noon Registration 3:00 Small Business Workshop — John Cronholm. 6:30 Reception Friday, May 16 AM . 7:30 Robert Morris Associates Breakfast 8:30 Welcome—Robert Burke, MBA president and president, First National Montana Bank, Missoula. 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 https://fraser.stlouisfed.org 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. P.M. 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 Falls. 4:00 Convention Wrap-up —Ken Erickson, commercial lending committee chairman. 6:30 Reception 7:30 Banquet □ BMS, and Eldon E. Kuhns of Bill ings. 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, president. 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 1978. 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 , president. M r. C a rson joined the Four Rivers PCA in Macomb, 111., in 1971 as branch K- D- CARSON 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 74 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 president of operations and funds to take early retirement from the management. 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 bank in 1973. been elected to Murray 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 chairman. vice president in the instalment loan M r. B ry a n s department. She joined the bank in resided in Casper from 1945-75 and 1972. 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. with the bank for four years, previ During his banking career he has ously served as auditor. served as president of the Wyoming Beverly J. Baker, who has been Bankers Association and has been with the bank since 1973, was elected active in American Bankers Associ operations officer 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 director. department. 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 Northwestern Banker, May, 1980 https://fraser.stlouisfed.org 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, president. 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 Nebraska. v 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 correspondent services inthe Intermountain Wèst Ask us about: ■ Investments & Safekeeping ■ Transit & Clearings ■ Foreign Banking Services ■ Collections & Transfers ■ Credit Information ■ Loan Participation ...a n d much more. & * ZIONS FIR ST NATIONAL 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 76 95th Annual North Dakota Bankers Association Convention M .T. NELSON President C. N. DAVIS Pres.-Elect T. F. RONEY Vice Pres. J. E. NOONAN Treasurer H. J. ARGUE Exec. Director G. P. WILLER 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 A.M. 8:00 12:00 P.M. 1:00 Men’s Golf Tournament—Apple Creek Country Club. Women’s Golf Tournament—Apple Creek Country Club. Convention Registration Desk Opens—Kirk wood Courtyard. Exhibit Hall Open—Kirkwood Courtyard. 1:00 -3:00 6:00 7:30 8:30 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 A.M. 7:30 Prayer Breakfast & Necrology Service—Kirk wood Rhinehall. Guest Speaker: C. John Miller, president, Inde pendent Petroleum Association of America, Northwestern Banker, May, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. J. MILLER C. C. HOPE -< 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. orthwestern 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N National Bank Of Minneapolis Member FDIC Northwestern Banker, May, 1980 78 North Dakota News M. MASSEY 9:15 11:30 12:00 P.M. 1:30 E. RANFT 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. O. SAMUELSON 6:30 7:30 8:30 E. B. BURR “ 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. Adjournment. □ Entertainers for ND Bankers Convention https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis 79 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 County T R U S T COMPANY SJJ 5 BISMARCK. F NORTH D AK O TA cBa/jic of cKirkwood cPlaza SEVEN TH STREET S AR BO R AVE * B IS M A R C K , NO RTH DAKO TA BISMARCK “ STATE BANK Dakota Northwestern Bank Of Bismarck An Affiliate of Northwest Bancorporation Banco https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First Bank Bismarck M em ber First Bank System Northwestern Banker, May, 1980 80 North Dakota News NDBA Executives Report on A ctivity By MORRIS T. NELSON President North Dakota Bankers Assn. President, Scandia American Bank Stanley 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, T. NELSON 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 season. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis calf operations should have another favorable year if grass conditions are adequate. 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. By HARRY J. ARGUE Executive Director North Dakota Bankers Assn. Bismarck 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 H. J. ARGUE 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 associations. • 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. A ) v v v v * v V A >- , * ^ 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 < membership: • 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. - v v v >- ► 81 $1 (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 country. We’ve got offices or affiliates in the major financial centers of the world. 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. S E C U R IT Y PA C IFIC B A N K © 1 9 8 0 SPNB MEM BER FDIC https://fraser.stlouisfed.org 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: A 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Evening dinner and show—The Arbors and George Gobel. 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. □ 83 Each of these United Missouri correspondent bankers isapro. 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 profitably! 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. 4 A W UNITED MISSOURI BANK OF KANSAS CITY, N.A. United we grow. Together. MemberFDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 84 Colorado News You W ill See Them at the 79th Annual Colorado Bankers Convention June 5-7 T 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. Chicago 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. Denver 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 sentative. Denver National Bank: John A. Edmiston, senior vice president, and Steve Sheridan, assistant vice presi dent. 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 cers. 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- https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis trative officer; E. L. Burch, senior vice president, and Richard H. Muir, vice president. Lincoln First National Bank: Gary L. Biech, vice president and managercorrespondent bank division, and Steve Anderson, assistant vice presi dent. shares of Buckingham Square Na tional Bank in Aurora, according to Theodore D. Brown, B an corp or ation’s chairman and chief executive officer. 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. president. Mr. Leeper, who also was elected a Seattle 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. Omaha 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 Johnson. 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 director. 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, has been active in banking for 50 Lincoln: Steve Sutton, vice presi years, working for the Salt Lake City dent. 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- 85 Our commitment to service is your Source of strength in Correspondent banking. 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 region, 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 \ relationships. \ S o con sid e r the Source. ■W] i -sar \ think First. First of Denver ma https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 Colorado News dent and cashier in charge of all bank operations. 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 ity. 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 finance. 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 1976. 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 versity. 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, officer. 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. wm k https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .A , ' - 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. WfS Tom some teller for a trai togethei 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 https://fraser.stlouisfed.org 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 EFT. 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 US NATIONAL ) U .S . National Bank, 1980 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC BANK Of Omaha Banco as agricultural representative for the past five years. Nebraska 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 College. 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 president. K. JOHNSON 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 J. STENEHJEM 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 CONVENTION REPORT 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. x 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. https://fraser.stlouisfed.org 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 T million would generate in a 24-hour period, according to Dave Simmons, senior vice president and marketing director. 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 ion. Northwestern Banker, May, 1980 90 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 G. L. LENCZOWSKI S. A. ERIKSON 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 of 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 R- D. MULLIN 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. College 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. https://fraser.stlouisfed.org 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. r 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., Omaha. The association represents 25 ± member firms and is involved in activities to better the securities in dustry. 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. r < 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. * K- g ■ lïiSiïSil ■IlliPPIIIS ", ^ S/Sii-i..¡'- . %■" :— m » m « S ft *g|“m 6*4» ' 'I 4 ilia : *s^3 .,, S f l ™ 11 v -“ i \0* »a n « i . (*ÏHfî , ..' •■-. ” WÊÊ0Î9l^&Ê^9 1 „« - '- | ' ' ;• .", ,f.A. * • ■' 'i * * ^ " f •~h%>*-? I ~*ya' **- ifc- ?&\ v¿A ."* * ^i>‘: Sb ? --■*» ™ ft * * Bob Brown, Don Ostrand, Ralph Peterson, George McFadden, Jim Flodlne, Merv Aegerter, Ttust your correspondent banking to our efficiency experts, These superb profes sionals are dedicated to meeting all your individual corres pondent needs. Call us for details on elec tronic data processing, cash letter processing, overlines, fed fund transactions; or any other correspondent service. We’ll show you how friendly effi ciency can be. <> 3 first n a t io n a l b a n k of omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In Nebraska call us toll free at 800-642-9907, Outside Nebraska call us toll free at 800-228-9533, Member FDIC. i 92 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 Kearney. 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 House.) In a talk laced with country humor, Mr. Jackson called transportation and energy two key areas for ag bankers. “ 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 https://fraser.stlouisfed.org 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 said. “ 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 competitive.” 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. MARLIN JACKSON 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 Omaha. 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. □ 'f > * * r ^ v r y y v h < V 93 Specialists in fulfilling your every correspondent need... GARY L. BIECK Vice President WILLIAM E. EDGECOMB Vice President CRAIG E. WANAMAKER STEVEN L. ANDERSON Vice President Assistant Vice President mm MARVIN HEFTI KATHY M. VOTAW Correspondent Bank Officer Correspondent Bank Officer MARK A. ZABACK 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. https://fraser.stlouisfed.org 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 FIRST NATIONAL BANK 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. https://fraser.stlouisfed.org 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. 95 Yvu learn a lot about Correspondent B anking in 136 years... Experience is one o f the most important assets o f our Correspondent Banking Division. The nine officers o f this division have a total o f 136 years o f specialized experience in dealing with the unique problems and goals o f correspondent banking. And our people give you the kind o f service you need and expect to build for the future. Call us and find out what 136 years o f experience can do for your bank. W ilbur Baack S enior V ice P resident D uane N elson V ice P resid en t T om S tu ck e y V ice P resid en t B ob D eah n V ice P resid en t Brad K orell V ice P resid en t Steve K ness A ssistan t V ice P resid en t M ax Callen A ssistant V ice P resid en t Iren e R ezac C o rre sp o n d e n t B ank O fficer D o n n a Bieck C o rre sp o n d e n t B ank O fficer The Correspondent Banking Division of NBC : Building on a firm foundation á S ii-S iililiá g i 141flm mii ■ l i ï 11111* ¡H irni mi j 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May. 1980 96 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: 800-362-1688 Des Moines’ largest locally owned, independent bank https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis * 97 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. Iowa L. H. O lson, pres., S ioux C ity IN. M iln e r, exec, v .p ., Des Moines Boost Maximum Interest Rates COMPREHENSIVE rewrite of 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 month. 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. A p, ^ ^ '*■ ’ _ ^ -4 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 ings: General Obligation Warrants . . . . 9.00% General Obligation B o n d s ............ 10 . 0 0 % > Special Assessment Bonds .......... 10.50% ^ Revenue B o n d s .............................. 11. 00 % Revenue Pledge Orders ................ > 11. 00 % The restrictive old ceilings had greatly dam pened the m unicipal ♦ https://fraser.stlouisfed.org 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 Alta 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 98 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A good 99 O O â l for your customer. 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Everyone wants in on the latest de velopment of more effi cient banking. When y o u r b ank of f er s INSTANT-ACCESS, you’ll attract new cus- tomers and solidify old ones. Make banking easy for your custom ers. Reduce your total operating costs. Be a banking innovator in your mar ket. INSTANT-ACCESS lets you do all these things. A good deal for your customer. A better one for you. For more information, call Joe Phernetton or ask for BICS marketing at Banks of Iowa Computer Services A BAN KS OF IOW A' SU B SID IA R Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 100 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, R. 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 president. D 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 needs. 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, D.C. 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) 281-4890. 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 the Graduate 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. f; \ & m - R. J. McGEE ■* https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis P. A. BEAR 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 1974. 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. 101 “The Drovers Difference” starts here. ii H£S ôN W Tôp FLOCR - you can't e e r thêrf ppom I l/UANJl TÖ T%5|DHNT*. HFf?F/ <,\ 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47th Street & Ashland Avenue, Chicago, IL 60609 (312) 927-7000 Northwestern Banker, May, 1980 102 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 C. T. WILLIAMS 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 members. 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 speak. Entertainment by the Key City Komedy Company, beginning at 9:30 G 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 Chicago. 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 office. 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. r 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 Vinton. Mrs. Morrison joined the bank’s bookkeeping department in 1969 and was named an assistant trust officer in 1975, her most recent position. A Staff News from Eagle Grove G R O U P IV IN MAY 6 DUBUQUE 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 review. ÌBffiM KS P o d i K jueG bt https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal 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. H ft K * 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 319/582-1841. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "More banks are offering their customers more services thanks to the help they're getting from American Trust. " 104 Certified Commeirical Lender at a special ceremony held in conjunction _ with the American Bankers Associ ation’s National Credit Conference. ► * * * y V 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. * * * S 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 R. F. GREFE Smith for two and a half years, and with Valley National Bank for two years. * * * Larry Wenzl, president of the First Federal State Bank, has announced the promotion of Margaret Bradley to assistant cashier and head teller, and https://fraser.stlouisfed.org 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: T Wednesday, May 21 P.M. 2:00 Early bird registration 3:00 Hospitality suite Thursday, May 22 A.M. 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 P.M. 1:00 Communication seminar con- v tinues 3:00 Adjourn 6:30 Social hour 7:30 Banquet Speaker: PaulNadler, Rutgers ^ University. Entertainment: The Sweet L Adelines Friday, May 23 A.M. 8:00 Prayer breakfast Speaker: Louis Valbracht 10:00 Morning session Speaker: Neil Milner, executive vice president, Iowa Bankers Association. „ * P.M. 12:30 Luncheon Speaker: Mariam McKeever— r “ Well What Do We Do Now f That W e’re Up Here Flying?’’ Presentation by Amana Corp. + — Butterflies are Free. Adjourn. □ 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 T Central National Bank & Trust Company DES MOINES (515) 245-7111 MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LOCUST AT 6TH/5TH & GRAND/35TH & INGERSOLL WDM: 35TH & 1-235/501 E. ARMY POST RD. ^A FFILIA TE D WITH CENTRAL NATIONAL BANCS HARES, INC, 106 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- C 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 City. 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 board. 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 C 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 COME AND HEAR C harley W ille y HUMORIST SPEAKER MOTIVATOR 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 https://fraser.stlouisfed.org 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 December. 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 position. ACORN Sale Registers "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 THE ACORN PRINTING CO. Oakland, Iowa v-v u v *. 107 INVESTMENTS: JUST ONEOFOUR CORRESPONDENTSERVICES. 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 712/277-0618 - Doug Schmidt Correspondent Officer 712/277-0614 C h oose one o f our services or as many as you need: ITEM CLEARANCE TRUST ACCOUNTS 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. LOANS 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. CREDIT CARD SERVICES 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. DATA PROCESSING GENERAL CONSULTING You get our guarantee that whether you need a specific service, or just an idea or two, First National is always ready to help. SEE YOU AT THE IOWA GROUP MEETINGS. First National Bank in MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA’ BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1980 108 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 zens N ational Ba n k , C h a rles City. O. J. TOMSON 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 jest. 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 T Sunshine Express for Group 3 tendent of Banking Tom Huston will follow. 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; K. A. ROEPER J. A. LARSEN M ary L. Kurth to assistant vice president; Helen Teig to assistant managing officer of the Northside personnel officer, and Linda Robeson branch. Mr. Roeper joined the bank as to marketing director. During the annual meeting, stockcomptroller in September, 1974, after holders 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - L y r( ***■ - . ’ ^ r v > 109 / y ,y 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 DES MOINES, IOWA 50304 Main O ffice-Sixth and Walnut https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA’ BANK M em ber FDIC Northwestern Banker, May, 1980 110 Io w a N ew s Washington Promotions YVfe’re 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 committee. Juanita Hering has been named as . vice president and trust officer. Y~- 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, ! president. r INDEX OF ADVERTISERS 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 V *■ L 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 professionals. 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 stockyards. 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 r Iowa Bkrs. Ins. & Services ...........................................113 lowa-Des M oines N at’l., B k........................................... 114 Kooker, Earl, Spencer ....................................................102 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. * * y Omaha N at’l. B k .............................................................. 58-59 FIRST STOCK YARDS BANK St. Joseph, M issouri 64504 • 816-238-0651 https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis r 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 <ö > ^ ^ ^ \ 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. https://fraser.stlouisfed.org 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 319-234-6641) GROSS CO. 110 East 7th Street Waterloo, Iowa 50705 112 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 https://fraser.stlouisfed.org Northwestern Banker, May, 1980 Federal Reserve Bank of St. Louis have to take steps to keep and train them.” 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 average.” 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 Iowa banks. Iowa Bankers Insur ance and Services . . . the right combination. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The only bank weworkharder for thanours is YOURS. banking connections. Sophisticated bankcard services. And sheer financial strength. 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 work does. That’ s why more than 4 0 0 banks count on our skilled professionals for total correspondent services. But hard work is just part of it. W e back that up with comprehensive computer capabilities. International IOWA . nes/vtoines MêJ A A n a t io n a l Bancoo’ 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bernie Kersey Dorothea Wolfe Voldy Vanags Lance Davenport John Rigler © 1980 lowa-Des Moines National Bank Garry Frandson
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